Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Mr. Cooper Group Inc. | ||
Entity Central Index Key | 0000933136 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Common Stock, Shares Outstanding (shares) | 90,832,802 | ||
Entity Public Float | $ 282,435,564 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 242 | |
Restricted cash | 319 | |
Mortgage servicing rights, $3,665 and $2,937 at fair value, respectively | 3,676 | |
Advances and other receivables, net of reserves of $47 and $284, respectively | 1,194 | |
Reverse mortgage interests, net of reserves of $13 and $115, respectively | 7,934 | |
Mortgage loans held for sale at fair value | 1,631 | |
Mortgage loans held for investment | 119 | |
Property and equipment, net of accumulated depreciation of $16 and $169, respectively | 96 | |
Deferred tax asset, net | 967 | |
Other assets | 795 | |
Total assets | 16,973 | |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 2,459 | |
Advance facilities, net | 595 | |
Warehouse facilities, net | 2,349 | |
Payables and accrued liabilities | 1,543 | |
MSR related liabilities - nonrecourse at fair value | 1,216 | |
Mortgage servicing liabilities | 71 | |
Other nonrecourse debt, net | 6,795 | |
Total liabilities | 15,028 | |
Commitments and contingencies (Note 20) | ||
Preferred stock at $0.00001 and $0.01 par value - 10 million and 300 million shares authorized, 1 million and zero shares issued and outstanding for Successor and Predecessor, respectively; aggregate liquidation preference of ten and zero dollars for Successor and Predecessor, respectively | 0 | |
Common stock at $0.01 and $0.01 par value - 300 million and 1 billion shares authorized, 90.8 million and 109.9 million shares issued for Successor and Predecessor, respectively | 1 | |
Additional paid-in-capital | 1,093 | |
Retained earnings | 848 | |
Treasury shares at cost, zero and 12.2 million shares for Successor and Predecessor, respectively | 0 | |
Total Mr. Cooper stockholders’ equity and Nationstar stockholders’ equity, respectively | 1,942 | |
Non-controlling interests | 3 | |
Total stockholders’ equity | 1,945 | |
Total liabilities and stockholders’ equity | $ 16,973 | |
Predecessor | ||
Assets | ||
Cash and cash equivalents | $ 215 | |
Restricted cash | 360 | |
Mortgage servicing rights, $3,665 and $2,937 at fair value, respectively | 2,941 | |
Advances and other receivables, net of reserves of $47 and $284, respectively | 1,706 | |
Reverse mortgage interests, net of reserves of $13 and $115, respectively | 9,984 | |
Mortgage loans held for sale at fair value | 1,891 | |
Mortgage loans held for investment | 139 | |
Property and equipment, net of accumulated depreciation of $16 and $169, respectively | 121 | |
Deferred tax asset, net | 0 | |
Other assets | 679 | |
Total assets | 18,036 | |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 1,874 | |
Advance facilities, net | 855 | |
Warehouse facilities, net | 3,285 | |
Payables and accrued liabilities | 1,239 | |
MSR related liabilities - nonrecourse at fair value | 1,006 | |
Mortgage servicing liabilities | 41 | |
Other nonrecourse debt, net | 8,014 | |
Total liabilities | 16,314 | |
Commitments and contingencies (Note 20) | ||
Preferred stock at $0.00001 and $0.01 par value - 10 million and 300 million shares authorized, 1 million and zero shares issued and outstanding for Successor and Predecessor, respectively; aggregate liquidation preference of ten and zero dollars for Successor and Predecessor, respectively | 0 | |
Common stock at $0.01 and $0.01 par value - 300 million and 1 billion shares authorized, 90.8 million and 109.9 million shares issued for Successor and Predecessor, respectively | 1 | |
Additional paid-in-capital | 1,131 | |
Retained earnings | 731 | |
Treasury shares at cost, zero and 12.2 million shares for Successor and Predecessor, respectively | (148) | |
Total Mr. Cooper stockholders’ equity and Nationstar stockholders’ equity, respectively | 1,715 | |
Non-controlling interests | 7 | |
Total stockholders’ equity | 1,722 | |
Total liabilities and stockholders’ equity | $ 18,036 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage servicing rights at fair value | $ 3,665 | |
Advances and other receivables, Reserves | 47 | |
Reverse mortgage interests, Reserves | 13 | |
Accumulated depreciation | $ 16 | |
Preferred stock, par value (in dollars per share) | $ 0.00001 | |
Preferred stock, shares authorized (shares) | 10,000,000 | |
Preferred stock, shares issued (shares) | 1,000,000 | |
Preferred stock, shares outstanding (shares) | 1,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (shares) | 300,000,000 | |
Common stock, shares issued (shares) | 90,800,000 | |
Treasury stock, shares (shares) | 0 | |
Predecessor | ||
Mortgage servicing rights at fair value | $ 2,937 | |
Advances and other receivables, Reserves | 284 | |
Reverse mortgage interests, Reserves | 115 | |
Accumulated depreciation | $ 169 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Preferred stock, shares authorized (shares) | 300,000,000 | |
Preferred stock, shares issued (shares) | 0 | |
Preferred stock, shares outstanding (shares) | 0 | |
Common stock, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (shares) | 1,000,000,000 | |
Common stock, shares issued (shares) | 109,900,000 | |
Treasury stock, shares (shares) | 12,200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues: | |||||||||||||
Service related, net | $ 259 | $ 159 | $ 418 | ||||||||||
Net gain on mortgage loans held for sale | 83 | 93 | 176 | ||||||||||
Total revenues | 342 | 252 | 594 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages and benefits | 337 | ||||||||||||
General and administrative | 370 | ||||||||||||
Total expenses | 275 | 432 | 707 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 256 | ||||||||||||
Interest expense | (293) | ||||||||||||
Other income (expenses) | 13 | ||||||||||||
Total other income (expenses), net | (26) | 2 | (24) | ||||||||||
(Loss) income before income tax (benefit) expense | 41 | (178) | (137) | ||||||||||
Less: Income tax (benefit) expense | (979) | (42) | (1,021) | ||||||||||
Net income (loss) | 1,020 | (136) | 884 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | 1,020 | (136) | 884 | ||||||||||
Less: Undistributed earnings attributable to participating stockholders | 9 | 0 | 8 | ||||||||||
Net income attributable to common stockholders | $ 1,011 | $ (136) | $ 876 | ||||||||||
Net income per common share attributable to Successor/Predecessor: | |||||||||||||
Basic (in dollars per share) | $ 11.13 | $ (1.50) | $ 9.65 | ||||||||||
Diluted (in dollars per share) | $ 10.99 | $ (1.50) | $ 9.54 | ||||||||||
Predecessor | |||||||||||||
Revenues: | |||||||||||||
Service related, net | $ 120 | $ 317 | $ 464 | $ 295 | $ 252 | $ 213 | $ 283 | $ 901 | $ 1,043 | $ 1,122 | |||
Net gain on mortgage loans held for sale | 44 | 127 | 124 | 142 | 154 | 167 | 144 | 295 | 607 | 793 | |||
Total revenues | 164 | 444 | 588 | 437 | 406 | 380 | 427 | 1,196 | 1,650 | 1,915 | |||
Expenses: | |||||||||||||
Salaries, wages and benefits | 426 | 742 | 813 | ||||||||||
General and administrative | 519 | 733 | 831 | ||||||||||
Total expenses | 242 | 339 | 364 | 366 | 368 | 369 | 372 | 945 | 1,475 | 1,644 | |||
Other income (expenses): | |||||||||||||
Interest income | 333 | 597 | 425 | ||||||||||
Interest expense | (388) | (731) | (665) | ||||||||||
Other income (expenses) | 6 | 3 | (2) | ||||||||||
Total other income (expenses), net | (5) | (26) | (18) | (13) | (26) | (40) | (52) | (49) | (131) | (242) | |||
(Loss) income before income tax (benefit) expense | (83) | 79 | 206 | 58 | 12 | (29) | 3 | 202 | 44 | 29 | |||
Less: Income tax (benefit) expense | (19) | 21 | 46 | 17 | 5 | (10) | 1 | 48 | 13 | 13 | |||
Net income (loss) | (64) | 58 | 160 | 41 | 7 | (19) | 2 | 154 | 31 | 16 | |||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | (3) | |||
Net income attributable to Successor/Predecessor | (64) | 58 | 160 | $ 41 | $ 7 | $ (20) | $ 2 | 154 | 30 | 19 | |||
Less: Undistributed earnings attributable to participating stockholders | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to common stockholders | $ (64) | $ 58 | $ 160 | $ 154 | $ 30 | $ 19 | |||||||
Net income per common share attributable to Successor/Predecessor: | |||||||||||||
Basic (in dollars per share) | $ (0.65) | $ 0.59 | $ 1.63 | $ 0.42 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.57 | $ 0.31 | $ 0.19 | |||
Diluted (in dollars per share) | $ (0.65) | $ 0.59 | $ 1.61 | $ 0.41 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.55 | $ 0.30 | $ 0.19 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Millions | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Shares Amount | Total Nationstar Stockholders’ Equity and Mr. Cooper Stockholders’ Equity, respectively | Non-controlling Interests |
Balance, shares (shares) (Predecessor) at Dec. 31, 2015 | 108,000 | |||||||
Balance (Predecessor) at Dec. 31, 2015 | $ 1,767 | $ 1 | $ 1,105 | $ 682 | $ (30) | $ 1,758 | $ 9 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | Predecessor | 86 | |||||||
Shares issued / (surrendered) under incentive compensation plan | Predecessor | (3) | 0 | (3) | (3) | ||||
Share-based compensation | Predecessor | 21 | 21 | 21 | |||||
Excess tax deficiency from share-based compensation | Predecessor | (4) | (4) | (4) | |||||
Repurchase of common stock (in shares) | Predecessor | (10,589) | |||||||
Repurchase of common stock | Predecessor | (114) | (114) | (114) | |||||
Net income | Predecessor | 16 | 19 | 19 | (3) | ||||
Balance (Predecessor) at Dec. 31, 2016 | 1,683 | $ 1 | 1,122 | 701 | (147) | 1,677 | 6 | |
Balance, shares (shares) (Predecessor) at Dec. 31, 2016 | 97,497 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | Predecessor | 231 | |||||||
Shares issued / (surrendered) under incentive compensation plan | Predecessor | (4) | (3) | (1) | (4) | ||||
Share-based compensation | Predecessor | 17 | 17 | 17 | |||||
Dividends to non-controlling interests | Predecessor | (5) | (5) | (5) | |||||
Net income | Predecessor | 31 | 30 | 30 | 1 | ||||
Balance (Predecessor) at Dec. 31, 2017 | 1,722 | $ 1 | 1,131 | 731 | (148) | 1,715 | 7 | |
Balance, shares (shares) (Predecessor) at Dec. 31, 2017 | 97,728 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | Predecessor | 450 | |||||||
Shares issued / (surrendered) under incentive compensation plan | Predecessor | (9) | (6) | (3) | (9) | ||||
Share-based compensation | Predecessor | 17 | 17 | 17 | |||||
Dividends to non-controlling interests | Predecessor | (1) | 5 | 5 | (6) | ||||
Net income | Predecessor | 154 | 154 | 154 | |||||
Balance (Predecessor) at Jul. 31, 2018 | 1,883 | $ 1 | 1,147 | 885 | (151) | 1,882 | 1 | |
Balance at Jul. 31, 2018 | 1,056 | $ 0 | $ 1 | 1,091 | (36) | 0 | 1,056 | 0 |
Balance, shares (shares) (Predecessor) at Jul. 31, 2018 | 98,178 | |||||||
Balance, shares (shares) at Jul. 31, 2018 | 1,000 | 90,806 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interests acquired | 3 | 3 | ||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 15 | |||||||
Share-based compensation | 2 | 2 | 2 | |||||
Net income | 884 | 884 | 884 | |||||
Balance at Dec. 31, 2018 | $ 1,945 | $ 0 | $ 1 | $ 1,093 | $ 848 | $ 0 | $ 1,942 | $ 3 |
Balance, shares (shares) at Dec. 31, 2018 | 1,000 | 90,821 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | ||||
Net income attributable to Successor/Predecessor | $ 884 | |||
Adjustments to reconcile net income to net cash attributable to operating activities: | ||||
Provision for deferred income taxes | (1,021) | |||
Net income (loss) attributable to non-controlling interests | 0 | |||
Net gain on mortgage loans held for sale | (176) | |||
Interest income on reverse mortgage interests | (206) | |||
(Gain) loss on sale of assets | 0 | |||
Loss on impairment of assets | 0 | |||
MSL related increased obligation | 0 | |||
Provision for servicing reserves | 38 | |||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 225 | |||
Fair value changes in excess spread financing | 5 | |||
Fair value changes in mortgage servicing rights financing liability | 6 | |||
Fair value changes in mortgage loans held for investment | (2) | |||
Amortization of premiums, net of discount accretion | 9 | |||
Depreciation and amortization for property and equipment and intangible assets | 39 | |||
Share-based compensation | 2 | |||
Other loss | 0 | |||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (527) | |||
Mortgage loans originated and purchased for sale, net of fees | (8,888) | |||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 9,405 | |||
Excess tax (deficiency) benefit from share based compensation | 0 | |||
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 43 | |||
Reverse mortgage interests, net | 1,544 | |||
Other assets | (61) | |||
Payables and accrued liabilities | (68) | |||
Net cash attributable to operating activities | 1,251 | |||
Investing Activities | ||||
Acquisition, net of cash acquired | (33) | |||
Property and equipment additions, net of disposals | (15) | |||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (307) | |||
Net payment related to acquisition of HECM related receivables | 0 | |||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | |||
Proceeds on sale of forward and reverse mortgage servicing rights | 105 | |||
Proceeds on sale of assets | 0 | |||
Purchase of cost-method investments | 0 | |||
Net cash attributable to investing activities | (250) | |||
Financing Activities | ||||
Increase (decrease) in warehouse facilities | (351) | |||
Increase (decrease) in advance facilities | 45 | |||
Proceeds from issuance of HECM securitizations | 343 | |||
Repayment of HECM securitizations | (374) | |||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 112 | |||
Repayment of participating interest financing in reverse mortgage interests | (943) | |||
Proceeds from issuance of excess spread financing | 255 | |||
Repayment of excess spread financing | (38) | |||
Settlement of excess spread financing | (77) | |||
Repayment of nonrecourse debt - legacy assets | (6) | |||
Repurchase of unsecured senior notes | 0 | |||
Redemption and repayment of unsecured senior notes | (1,030) | |||
Repurchase of common stock | 0 | |||
Proceeds from non-controlling interests | 3 | |||
Excess tax deficiency from share based compensation | 0 | |||
Surrender of shares relating to stock vesting | 0 | |||
Debt financing costs | (2) | |||
Dividends to non-controlling interests | 0 | |||
Net cash attributable to financing activities | (2,063) | |||
Net (decrease) increase in cash and cash equivalents | (1,062) | |||
Cash and cash equivalents - beginning of year | 1,623 | |||
Cash and cash equivalents - end of year | 561 | $ 1,623 | ||
Supplemental Disclosures of Cash Activities | ||||
Cash paid for interest expense | 283 | |||
Net cash (refunded) paid for income taxes | (37) | |||
Predecessor | ||||
Operating Activities | ||||
Net income attributable to Successor/Predecessor | 154 | $ 30 | $ 19 | |
Adjustments to reconcile net income to net cash attributable to operating activities: | ||||
Provision for deferred income taxes | 63 | (46) | (5) | |
Net income (loss) attributable to non-controlling interests | 0 | 1 | (3) | |
Net gain on mortgage loans held for sale | (295) | (607) | (793) | |
Interest income on reverse mortgage interests | (274) | (490) | (344) | |
(Gain) loss on sale of assets | (9) | (8) | 2 | |
Loss on impairment of assets | 0 | 0 | 25 | |
MSL related increased obligation | 59 | 0 | 0 | |
Provision for servicing reserves | 70 | 148 | 108 | |
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | (177) | 430 | 484 | |
Fair value changes in excess spread financing | 81 | 12 | 25 | |
Fair value changes in mortgage servicing rights financing liability | 16 | (17) | (42) | |
Fair value changes in mortgage loans held for investment | 0 | 0 | 0 | |
Amortization of premiums, net of discount accretion | 8 | 82 | 64 | |
Depreciation and amortization for property and equipment and intangible assets | 33 | 59 | 63 | |
Share-based compensation | 17 | 17 | 21 | |
Other loss | 3 | 6 | 0 | |
Repurchases of forward loan assets out of Ginnie Mae securitizations | (544) | (1,249) | (1,432) | |
Mortgage loans originated and purchased for sale, net of fees | (12,328) | (19,159) | (20,410) | |
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 13,392 | 20,776 | 22,031 | |
Excess tax (deficiency) benefit from share based compensation | 0 | (1) | 4 | |
Changes in assets and liabilities: | ||||
Advances and other receivables, net | 377 | (30) | 582 | |
Reverse mortgage interests, net | 1,601 | 1,672 | 572 | |
Other assets | (41) | (75) | (25) | |
Payables and accrued liabilities | 88 | (192) | 26 | |
Net cash attributable to operating activities | 2,294 | 1,359 | 972 | |
Investing Activities | ||||
Acquisition, net of cash acquired | 0 | 0 | 0 | |
Property and equipment additions, net of disposals | (40) | (42) | (62) | |
Purchase of forward mortgage servicing rights, net of liabilities incurred | (134) | (63) | (144) | |
Net payment related to acquisition of HECM related receivables | (1) | 0 | 0 | |
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 16 | (3,600) | |
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 71 | 68 | |
Proceeds on sale of assets | 13 | 16 | 0 | |
Purchase of cost-method investments | 0 | (4) | 0 | |
Net cash attributable to investing activities | (162) | (6) | (3,738) | |
Financing Activities | ||||
Increase (decrease) in warehouse facilities | (585) | 863 | 529 | |
Increase (decrease) in advance facilities | (305) | (241) | (550) | |
Proceeds from issuance of HECM securitizations | 759 | 707 | 728 | |
Repayment of HECM securitizations | (448) | (572) | (713) | |
Proceeds from issuance of participating interest financing in reverse mortgage interests | 208 | 575 | 4,124 | |
Repayment of participating interest financing in reverse mortgage interests | (1,599) | (2,597) | (1,185) | |
Proceeds from issuance of excess spread financing | 70 | 0 | 155 | |
Repayment of excess spread financing | (3) | (23) | (198) | |
Settlement of excess spread financing | (105) | (207) | 0 | |
Repayment of nonrecourse debt - legacy assets | (7) | (15) | (18) | |
Repurchase of unsecured senior notes | (62) | (123) | (40) | |
Redemption and repayment of unsecured senior notes | 0 | 0 | 0 | |
Repurchase of common stock | 0 | 0 | (114) | |
Proceeds from non-controlling interests | 0 | 0 | 0 | |
Excess tax deficiency from share based compensation | 0 | 0 | (4) | |
Surrender of shares relating to stock vesting | (9) | (4) | (3) | |
Debt financing costs | (24) | (13) | (13) | |
Dividends to non-controlling interests | (1) | (5) | 0 | |
Net cash attributable to financing activities | (2,111) | (1,655) | 2,698 | |
Net (decrease) increase in cash and cash equivalents | 21 | (302) | (68) | |
Cash and cash equivalents - beginning of year | $ 596 | 575 | 877 | 945 |
Cash and cash equivalents - end of year | 596 | 575 | 877 | |
Supplemental Disclosures of Cash Activities | ||||
Cash paid for interest expense | 417 | 765 | 694 | |
Net cash (refunded) paid for income taxes | $ 36 | $ 102 | $ 17 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows - Supplemental Information - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 242 | |||
Restricted cash | 319 | |||
Total cash, cash equivalents and restricted cash | $ 561 | $ 1,623 | ||
Predecessor | ||||
Cash and cash equivalents | 166 | $ 215 | $ 489 | |
Restricted cash | 430 | 360 | 388 | |
Total cash, cash equivalents and restricted cash | $ 596 | $ 575 | $ 877 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Nature of Business Mr. Cooper Group Inc. collectively with its consolidated subsidiaries, “Mr. Cooper”, the “Company”, “we”, “us” or “our”) provides servicing, origination and transaction-based services related to single family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies. The Company’s corporate website is located at www.mrcoopergroup.com . Mr. Cooper, which was previously known as WMIH Corp. (“WMIH”), is a corporation duly organized and existing under the laws of the State of Delaware since May 11, 2015. On July 31, 2018, Wand Merger Corporation, a wholly-owned subsidiary of WMIH merged with and into Nationstar Mortgage Holdings Inc. (“Nationstar”), with Nationstar continuing as a wholly-owned subsidiary of WMIH (the “Merger”). Prior to the Merger, WMIH had limited operations other than its reinsurance business that operated in runoff mode and focused on identifying and consummating an accretive acquisition transaction across a broad array of industries, with a primary focus on the financial institutions sector. As a result of the Merger, shares of Nationstar common stock were delisted from the New York Stock Exchange. Following the Merger closing, the combined company traded on NASDAQ under the ticker symbol “WMIH” until October 10, 2018, when WMIH changed its name to “Mr. Cooper Group Inc.” and its ticker symbol to “COOP”. Reverse Stock Split On October 10, 2018, the Company completed its 1-for-12 reverse stock split. The reverse stock split reduced the number of WMIH common shares outstanding from 1,089,738,735 shares as of October 9, 2018 to 90,811,562 shares outstanding after giving effect to the reverse stock split. In addition, the reverse stock split reduced the total authorized shares of the Company’s common stock from 3,500,000,000 to 300,000,000 and increased the par value of each share from $0.00001 per share to $0.01 per share. All issued and outstanding share and per share amounts for Mr. Cooper included in the accompanying consolidated financial statements have been adjusted to reflect this reverse stock split for the successor period presented. Basis of Presentation For the purpose of financial statement presentation, Mr. Cooper was determined to be the accounting acquirer in the Merger, and Nationstar’s assets and liabilities were recorded at estimated fair value as of the acquisition date. Mr. Cooper’s interim consolidated financial statements for periods following the Merger closing are labeled “Successor” and reflect the acquired assets and assumed liabilities from Nationstar. Under Securities and Exchange Commission (“SEC”) rules, when a registrant succeeds to substantially all of the business of another entity and the registrant’s own operations before the succession appear insignificant relative to the operations assumed or acquired, the registrant is required to present financial information for the acquired entity (the “Predecessor”) for all comparable periods being presented before the acquisition. Due to the acquisition, the Predecessor and Successor financial statements have been prepared on different basis of accounting and are therefore not comparable. Pursuant to the Merger, Nationstar is considered the predecessor company. Therefore, the Company is providing additional information in the accompanying consolidated financial statements regarding Nationstar’s business for periods prior to July 31, 2018. The predecessor’s company financial information in this report is labeled “Predecessor” in these consolidated financial statements. The consolidated financial statements of the Company and Predecessor have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The significant accounting policies described below, together with the other notes that follow, are an integral part of the consolidated financial statements. Basis of Consolidation The basis of consolidation described below was adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The Successor’s financial statements reflect the adoption of such standards. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest, and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. Investmen ts in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. Intercompany balances and transactions on consolidated entities have been eliminated. Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. Reclassifications Certain reclassifications have been made in the Predecessor’s consolidated statement of cash flow to conform to the Successor’s 2018 presentation. Such reclassifications did not affect total revenues or net income. Recent Accounting Guidance Adopted The accounting standards described below were adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The adoption of such standards is also considered in the Successor’s financial statements. Accounting Standards Update No. 2014-09, 2016-08, 2016-10, 2016-12 and 2016-20, collectively implemented as Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), Revenue from Contracts with Customers, provides guidance for revenue recognition. This ASC’s core principle requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The standard also clarifies the principal versus agent considerations, providing that the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The Company’s revenue is generated from loan servicing, loan originations and services provided by Xome. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with the Company’s servicing activities as well as fees earned under subservicing arrangements. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held and gain on sale on loans upon disposition of the loan. Xome’s revenue is comprised of income earned from real estate exchange, real estate services and real estate software as a service. The Company has performed a review of the new guidance as compared to its current accounting policies and evaluated all services rendered to its customers as well as underlying contracts to determine the impact of this standard to its revenue recognition process. The majority of services rendered by the Company in connection with originations and servicing are not within the scope of ASC 606. However, all revenues from Xome fall within the scope of ASC 606. Xome’s operations are comprised of Exchange, Services and Data/Technology, as discussed below. • Exchange is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer. • Services connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers. • Data/Technology includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606. Nationstar adopted ASC 606 on January 1, 2018, and there was no material impact recorded to the 2018 consolidated statements of operations of either the Successor or Predecessor. In connection with the adoption of ASC 606, Nationstar identified and implemented changes to its accounting policies and practices, business processes, and controls to support the new revenue recognition standard. Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), relates to the Statement of Cash Flows (Topic 230) and is intended to provide specific guidance to reduce diversity in practice. ASU 2016-15 addresses the following eight cash flow classification issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of life insurance claims, (5) proceeds from the settlement of corporate owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Nationstar adopted ASU 2016-15 in the first quarter of 2018 and determined that the implementation of this standard had no impact on its consolidated statement of cash flows of the Predecessor and Successor. Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash (“ASU 2016-18”), requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Nationstar adopted ASU 2016-18 in the first quarter of 2018 and retrospectively applied the guidance to all periods presented. As a result, the consolidated financial statements of the Predecessor and Successor includes restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the consolidated statements of cash flows, and changes in restricted cash are no longer presented as a component of financing activities. Accounting Standards Update No. 2016-01 , Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”), addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Furthermore, equity investments without readily determinable fair values are to be assessed for impairment using a quantitative approach. ASU 2016-01 is effective for interim periods beginning after December 15, 2017, and requires a modified retrospective approach to adoption. Nationstar adopted ASU 2016-01 in the first quarter of 2018, and the implementation of this standard did not have a significant impact on the consolidated financial statements of the Predecessor and Successor. Accounting Standards Update No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business (“ASU 2017-01”), clarifies the definition of a business to assist companies in the evaluation of whether business combination transactions should be accounted for as an acquisition of a business or as a group of assets. ASU 2017-01 is effective for interim periods beginning after December 15, 2017. The Company adopted this standard during the third quarter of 2018, in connection with the accounting for the acquisitions completed in the third quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. Accounting Standards Update No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC Topic 350, Intangibles - Goodwill and Other . ASU 2017-04 is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In the fourth quarter of 2018, the Company early adopted ASU 2017-04. The standard did not have an impact to the Company’s qualitative assessment for goodwill impairment that it performed in the fourth quarter of 2018. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), No.2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), primarily impact lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. ASU 2016-02 requires the recognition of a lease liability that is equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements with terms 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2018-10 and ASU 2018-11 affect narrow aspects of the guidance issued in the amendments in ASU 2016-02. ASU 2018-11 specifically relieves companies of the requirement to present prior comparative years’ results when they adopt ASU 2016-02 and gives companies the option to recognize the cumulative effect of applying ASU 2016-02 to lease assets and liabilities as an adjustment to the opening balance of retained earnings. ASU 2016-02, ASU 2018-10, and ASU 2018-11 are effective for the Company for its interim periods beginning after December 15, 2018, with early adoption permitted. The Company currently plans to adopt this standard in the first quarter of 2019 using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in that period. The new standard also provides a number of optional practical expedients in transition. The Company expects to elect the package of practical expedients, which, among other items, permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also expects to elect the short-term lease recognition exemption for all leases that qualify. Under this practical expedient, for those leases that qualify, we will not recognize right-of-use (“ROU”) assets or lease liabilities, which includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of our leases. The Company does not expect to elect the use-of-hindsight practical expedient. Based on the current lease portfolio as of December 31, 2018, the Company anticipates recognizing a lease liability and related right-of-use asset ranging from $120 to $135 on the consolidated balance sheets with no material impact on the consolidated statements of operations. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), requires expected credit losses for financial instruments held at the reporting date to be measured based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and instead reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract " (“ASU 2018-15”) aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-15 on its consolidated financial statements. Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement , (“ASU 2018-13”) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-13 on its consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The significant accounting policies described below were implemented by Nationstar and applied to the Predecessor’s financial statements, unless otherwise noted. Upon the consummation of the Merger, the Company adopted these significant accounting policies, which are applicable to the Successor’s financial statements. Restricted Cash With respect to the Servicing segment, restricted cash includes recoveries received from borrowers or investors on advances pledged to advance facilities and to advance facilities structured as special purposes entities that require certain level of restricted cash. With respect to the Originations segment, restricted cash includes (i) principal received from borrowers on originated loans pledged to a warehouse facility and (ii) guarantee fees collected on behalf and payable to either Fannie Mae or Freddie Mac on a monthly basis. Advances and Other Receivables, Net The Company advances funds to or on behalf of the investors when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance) in accordance with terms of its servicing agreements. Other receivables consist of advances funded to maintain and market underlying loan collateral through foreclosure and ultimate liquidation on behalf of the investors. Advances are recovered from borrowers for performing loans and from the investors and loan proceeds for non-performing loans. The Company may also acquire servicer advances in connection with the acquisition of mortgage servicing rights (“MSR”). These advances are recorded at their relative fair value amounts upon acquisition. The Company records receivables upon determining that collection of amounts due from loan proceeds, investors, mortgage insurers, or prior servicers is probable. Reserves related to recoverability of advances and other receivables are discussed below in Reserves for Forward Servicing Activity. As a result of the Merger, the Advances and Other Receivables assets were recorded at their estimated fair value as of the acquisition date. Recording the estimated fair value resulted in a discount within Advances and Other Receivables. Subsequently, this discount will be adjusted as the advance balances associated with the discount are utilized through recoveries or write-offs. Mortgage Loans Held for Sale The Company originates prime residential mortgage loans with the intention of selling such loans on a servicing-retained basis in the secondary market. As these loans are originated with intent to sell, the loans are classified as held for sale and the Company has elected to measure these loans held for sale at fair value. The Company estimates fair value of mortgage loans held for sale by using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. In connection with the Company’s election to measure originated mortgage loans held for sale at fair value, the Company records the loan originations fees when earned, net of direct loan originations costs associated with these loans. Loan origination fees, gains or losses recognized upon sale of loans, and fair value adjustments are recorded in net gain on sale of mortgage loans held for sale in the consolidated statements of operations. The Company may repurchase loans that were previously transferred to Ginnie Mae (“GNMA”) if those loans meet certain criteria, including being delinquent greater than 90 days. It is the Company’s intention to sell such loans; therefore, the Company classifies such loans as loans held for sale and has elected to measure these repurchased loans at fair value. Mortgage Loans Held for Investment Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value. In connection with the Merger, the Company elected the fair value option for mortgage loans held for investment effective August 1, 2018. The Company determines the fair value of loans held for investment, on a recurring basis, based on various underlying attributes such as market participants’ views, loan delinquency, recent observable loan pricing and sales for similar loans, individual loan characteristics and internal market evaluation. These internal market evaluations require the use of judgment by the Company and can have a significant impact on the determination of the loan’s fair value. The Predecessor recorded mortgage loans held for investment at amortized cost. Reverse Mortgage Interests, Net Reverse mortgage interests are comprised of the Company’s interest in reverse mortgage loans that consists of participating interests in Home Equity Conversion Mortgages (“HECMs”) mortgage-backed securities (“HMBS”), other interests securitized and unsecuritized interests, as well as related claims receivables and real estate owned (“REO”) related receivables. The Company primarily acquires and services interests in reverse mortgage loans insured by the Federal Housing Administration (“FHA”) known as HECMs. HECMs provide seniors aged 62 and older with a loan secured by their home which can be taken as a lump sum, line of credit, or scheduled payments. HECM loan balances grow over the loan term through borrower draws of scheduled payments or line of credit draws, funded by the Company, as well as through the accrual of interest, servicing fees and FHA mortgage insurance premiums. Growth in the loan balances are capitalized and recorded as reverse mortgage interests within the Company’s consolidated balance sheet. Additionally, loan balances including borrower draws, mortgage insurance premiums and servicing fees are eligible for securitization through Ginnie Mae’s HMBS program. In accordance with FHA guidelines, HECMs are designed to repay through foreclosure and subsequent liquidation of loan collateral after the loan becomes due and payable. Shortfalls experienced by the servicer of the HECM through the foreclosure and liquidation process can be claimed to FHA in accordance with applicable guidelines. Other interests securitized consist of reverse mortgage interests that no longer meet HMBS program eligibility criteria and have been repurchased out of HMBS. These reverse mortgage interests have subsequently been transferred to private securitization trusts and are accounted for as a secured borrowing. Unsecuritized interests include repurchased HECM loans for which the Company is required to repurchase from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount (“MCA”) established at origination in accordance with HMBS program guidelines. As the HECM loan moves through the foreclosure and claims process, the Company classifies reverse mortgage interests as REO related receivables and HECM related receivables, respectively. Interest income is accrued monthly within the consolidated statements of operations based upon the borrower interest rates. The Company includes the cash outflow from funding these amounts as operating activities in the consolidated statements of cash flow as a component of reverse mortgage interests. The Company is an authorized GNMA HMBS program issuer and servicer. In accordance with GNMA HMBS program guidelines, borrower draws of scheduled payments or line of credit draws, servicing fee and interest accruals and mortgage insurance premium accruals are eligible for HMBS participation securitizations as each of these items increases underlying HECM loan balances. The Company pools and securitizes such eligible items into GNMA HMBS as issuer and servicer. In accordance with the HMBS program, issuers are responsible for purchasing HECM loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal or greater than 98% of the maximum claim amount at which point the HECM loans are no longer eligible to remain in the HMBS pool. Upon purchase from the HMBS pool, the Company will assign active HECM loans to FHA or a prior servicer (as applicable and permitted by acquisition agreements) or service inactive HECM loans through foreclosure and liquidation. Based upon the structure of the GNMA HMBS program, the Company has determined that the securitizations of the HECM loans into HMBS pools do not meet all requirements for sale accounting. Accordingly, these transactions are accounted for as secured borrowings. If the Company has repurchased an inactive HECM loan that cannot be assigned to FHA, the Company may pool and securitize these loans into a private HECM securitization. These securitizations are also recorded as secured borrowings in the consolidated balance sheets. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations. Both the acquisition and assumption of HECM loans and related GNMA HMBS debt are presented as investing and financing activities, respectively, in the consolidated statements of cash flows. Subsequent proceeds received from securitizations, and subsequent repayments on the securitized debt are presented as financing activities in the consolidated statements of cash flows. Reserves related to recoverability of reverse mortgage interests are discussed below in Reserves for Reverse Mortgage Interests. As a result of the Merger, the reverse mortgage interest assets were recorded at their estimated fair value as of the acquisition date. Recording the estimated fair value resulted in a premium on the participating interests in HMBS loans and a discount on the unsecuritized interests and other interests securitized within reverse mortgage interests. Subsequently, the premium and the discount will be amortized and accreted, respectively, to other income, based on the effective yield method whereby the Company will update its prepayment assumptions for actual prepayments on a quarterly basis. In addition, the discount will be adjusted as the reverse mortgage interest balances associated with the discount are utilized through recoveries or write-offs. Mortgage Servicing Rights The Company recognizes the rights to service mortgage loans for others, or MSRs, whether acquired or as a result of the sale of loans the Company originates with servicing retained, as assets. The Company initially records all MSRs at fair value. MSRs related to reverse mortgages are subsequently recorded at amortized cost. The Company has elected to subsequently measure forward MSRs at fair value. For MSRs initially recorded and subsequently measured at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing the underlying loans. The Company determines the fair value of the MSRs by the use of a discounted cash flow model which incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues, float earnings and other assumptions (including costs to service) that management believes are consistent with the assumptions that other similar market participants use in valuing the MSRs. The credit quality and stated interest rates of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. The Company obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. The Company receives a base servicing fee annually on the outstanding principal balances of the loans, which is collected from investors. Additionally, the Company owns servicing rights for certain reverse mortgage loans. For this separate class of servicing rights, the Company initially records a MSR or mortgage servicing liability (“MSL”) on the acquisition date based on the fair value of the future cash flows associated with the pool and whether adequate compensation is to be received for servicing. The Company applies the amortized cost method for subsequent measurement of the loan pools with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and the MSL accreted ratably over the expected life of the portfolio. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying mortgages. The Company adjusts MSR amortization and MSL accretion prospectively in response to changes in estimated projections of future cash flows. Reverse MSRs and MSLs are stratified and evaluated each reporting period for impairment or increased obligation, as applicable, based on predominant risk characteristics of the underlying serviced loans. These stratification characteristics include investor, loan type (fixed or adjustable rate), term and interest rate. Impairment of the MSR or additional obligation associated with the MSL are recorded through a valuation allowance, unless considered other-than-temporary, and are recognized as a charge to general and administrative expense. Amounts amortized or accreted are recognized as an adjustment to service related revenue, net, along with monthly servicing fees received, generally stated at a fixed rate per loan. MSR Related Liabilities - Nonrecourse Excess Spread Financing In conjunction with the acquisition of certain MSRs on various pools of residential mortgage loans (the “Portfolios”), the Company has entered into sale and assignment agreements related to its right to servicing fees, under which the Company sells to third parties the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. The agreements consist of two components - current excess spread, or remittance of a percentage of excess spread on currently serviced loans, and future excess spread, or the obligation to transfer currently serviced loans that have been refinanced into current excess spread or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above. The sale of these rights is accounted for as secured borrowings, with the total proceeds received being recorded as a component of MSR related liabilities - nonrecourse at fair value in the consolidated balance sheets. The Company determines the effective interest rate on these liabilities and allocates total repayments between interest expense and the outstanding liability. The Company has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net in the consolidated statements of operations. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value. Mortgage Servicing Rights Financing The Company has entered into certain transactions with third parties to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms. The Company evaluates these transactions to determine if they are sales or secured borrowings. When these transfers qualify for sale treatment, the Company derecognizes the transferred assets in its consolidated balance sheets. The Company has determined that for a portion of these transactions, the related MSRs sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, for accounting purposes, legal ownership of the MSR’s continues to reside with the Company. The Company continues to account for the MSRs in its consolidated balance sheets. In addition, the Company records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company’s service related revenues. The Company has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net, in the consolidated statements of operations. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. Revenues ASC 606, Revenue from Contracts with Customers , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as Company’s loans and derivatives, as well as revenue related to Company’s mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within Company’s disclosures. All revenues from Xome fall within the scope of ASC 606. Xome’s operations are comprised of Exchange, Services and Data/Technology, as follows: • Exchange is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer. • Services connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers. • Data/Technology includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606. Revenues from Forward Servicing Activities Service related revenues primarily include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as earned, which is generally upon collection of the payments from the borrower. Corresponding loan servicing costs are charged to expense as incurred. The Company recognizes ancillary revenues and earnings on float as they are earned, which is generally upon collection of the payments from the borrower. In addition, the Company receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific government-sponsored entities (“GSE”) portfolios. Fees recorded on modifications of mortgage loans serviced by the Company for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized based upon completion of all necessary steps by the Company and the minimum loan performance time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. The Company also acts as a subservicer for certain parties that own the underlying servicing rights and receives subservicing fees, which are typically a stated monthly fee per loan that varies based on types of loans. Fees related to the subserviced portfolio are accrued in the period the services are performed. Revenues from Origination Activities Loan origination and other loan fees generally represent flat, per-loan fee amounts and are recognized as revenue, net of loan origination costs, at the time the loans are funded. Revenues from Reverse Mortgage Servicing and Reverse Mortgage Interests The Company performs servicing of reverse mortgage loans, similar to its forward servicing business, and receives servicing fees from investors, which is recorded in service related revenues. For reverse mortgage interests, where the Company records entire participating interest in HECM loans, the Company accrues interest in accordance with FHA guidelines and records interest income on the consolidated statements of operations. Net Gain on Mortgage Loans Held for Sale Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been legally isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. Reserves for Origination Activity The Company provides for reserves, included within payables and accrued liabilities, in connection with loan origination activities. Reserves on loan origination activities primarily include reserves for the repurchase of loans from GSEs, GNMA, and third-party investors primarily due to delinquency or foreclosure and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The provision for reserves associated with loan origination activities is a component of net gain on mortgage loans held for sale. The Company utilizes internal models to estimate reserves for loan origination activities based upon its expectation of future defaults and the historical defect rate for government insured loans and is based upon judgments and assumptions which can be influenced by many factors and may change over the life of the underlying loans, including: (i) historical loss rate, (ii) secondary market pricing of loans; (iii) home prices and the levels of home equity; (iv) the quality of Company’s underwriting procedures; (v) borrower delinquency and default patterns; and (vi) other Company-specific and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third-party data, where applicable. Reserves for Forward Servicing Activity In connection with forward loan servicing activities, the Company records reserves primarily for the recoverability of advances, interest claims, and mortgage insurance claims. Reserves for advances and other receivables associated with loans in the MSR portfolio are considered within the MSR valuation, and the provision expense for such advances is recorded in the mark-to-market adjustment in service related revenue. Such valuation gives consideration to the expected cash outflows and inflows for advances and other receivables in accordance with the fair value framework. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables, net. As loans serviced transfer out of the MSR portfolio, any negative MSR value associated with the loans transferred is reclassified from the MSR to the reserve within advances and other receivables, net, to the extent such reserves continue to be required for balances remaining on the consolidated balance sheets. Management evaluates reserves for sufficiency each reporting period and any additional reserve requirements are recorded as a provision in general and administrative expense, as needed. The Company records reserves for advances and other receivables and evaluates the sufficiency of such reserves through internal models considering both historical and expected recovery rates on claims filed with government agencies, government sponsored enterprises, vendors, prior servicer and other counterparties. Key assumptions used in the model include but are not limited to expected recovery rates by loan types and aging of the receivable. Recovery of advances and other receivables is subject to significant judgment and estimates based on the Company’s assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts from prior servicers and to effectively negotiate settlements, as needed. Management reviews recorded advances and other receivables and upon determination that no further recourse for recovery is available from all means known to management, the recorded balances associated with these receivables are written-off against the reserve. Reserves for Reverse Mortgage Interests The Company records a reserve for reverse mortgage interests based on unrecoverable costs and estimates of probable loss exposures. The Company estimates reserve requirements upon the realization of a triggering event indicating a probable loss exposure. Internal models are utilized to estimate loss exposures at the loan level associated with the Company’s ability to meet servicing guidelines set forth by regulatory agencies and GSEs. Key assumptions within the models include but are not limited to expected recovery rates by loan and borrower characteristics, foreclosure timelines, value of underlying collateral, future carrying and foreclosure costs, and other macro-economic factors. If the calculated reserve requirements exceed the recorded allowance for reserves and discounts, a provision is recorded to general and administrative expense, as needed. Releases to reserves are also recorded against provision in general and administrative expenses. Reserve requirements are subject to significant judgment and estimates based on the Company’s assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts from prior servicers and to effectively negotiate settlements, as needed. Each period, management reviews recorded reverse mortgage interests and upon determination that no further recourse for recovery is available from all means known to management, the recorded balances associated with these receivables are written-off against the reserve at the loan level. Amounts Due from Prior Servicers The Company services its loan portfolios under guidelines set forth by regulatory agencies and investor guidelines. Losses can be incurred if the underlying loans are not serviced in accordance with established guidelines, resulting in the assessment of fines and the inability to recover interest and costs incurred. Prior servicers associated with the underlying loans may have contributed to the losses if their prior servicing practices did not allow for timely compliance with servicing guidelines set forth. To mitigate the risk of loss to the Company, indemnification provisions are incorporated into the executed acquisition and servicing agreements that allow for the recovery of realized losses which can be attributed to prior servicers. As part of its servicing operations, the Company estimates and records an asset in advances and other receivables on the consolidated balance sheet for probable recoveries from prior servicers for their respective portion of these losses. Estimated recoveries from prior servicers are based on management’s best estimate of allocated losses among servicing parties, terms of the indemnification provisions, prior recovery experience, current negotiations and the servicer’s ability to pay requested amounts. The Company updates its estimate of recovery each reporting period based on the facts and circumstances known at the time. Recovery of amounts due from prior servicers is subject to significant judgment based on the Company’s assessment of the prior servicer’s responsibility for losses incurred, its ability to provide related support for such amounts and its ability to effectively negotiate settlement of amounts due from prior servicers if needed. Property and Equipment, Net Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred which is included in general and administrative expenses in the consolidated statements of operations. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and services as well as employee costs related to time spent on the project. The Company periodically reviews its property and equipment when events or changes in circumstances indicate that the carrying amount of its property and equipment might not be recoverable under the recoverability test, whereby the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded to general and administrative expense, as needed. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flow. The Company evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company’s normal depreciation policy over the lease term and are included in property and equipment, net, on the consolidated balance sheets. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities on the consolidat |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Nationstar Mortgage Holdings Inc. Upon the Merger with Nationstar on July 31, 2018, each share of Nationstar’s common stock issued and outstanding immediately prior to the Effective Time was converted into the right to receive, at the election of the holder of such share, (i) $18.00 per share in cash, without interest, or (ii) 12.7793 shares (prior to the 1-for-12 reverse stock split) of validly issued, fully paid and nonassessable shares of WMIH common stock (the “Merger Consideration”). The Merger Consideration was subject to automatic proration and adjustment pursuant to the Merger Agreement to ensure that the total amount of cash paid (excluding cash paid in lieu of fractional shares) equaled approximately $1,226 . Pursuant to the Merger Agreement, immediately prior to the Effective Time, subject to certain exceptions, (i) each then-outstanding share of Nationstar restricted stock automatically vested in full and was converted into the right to receive the Merger Consideration, as elected by the holder, and (ii) each then-outstanding Nationstar restricted stock unit, whether vested or unvested, was automatically vested in full, assumed by WMIH and converted into a WMIH restricted stock unit entitling the holder thereof to receive upon settlement the Merger Consideration, as elected by the holder. Upon closing the Merger, all outstanding WMIH Series B Preferred Stock and all outstanding warrants to purchase shares of WMIH common stock were converted into WMIH common stock. Total purchase price was approximately $1,777 , consisting of cash paid of $1,226 and transferred stock valued at $551 . The purchase price was funded from available cash on hand and borrowings under senior unsecured notes (see discussion below). Prior to the acquisition, Nationstar was a publicly-held company that earned fees through the delivery of servicing, origination and transaction-based services related primarily to single-family residences throughout the United States. This acquisition marks the Company’s initial entry into the mortgage servicing industry that Nationstar operates in and is consistent with the Company’s business strategy. On July 13, 2018, Merger Sub closed the offering of $950 aggregate principal amount of 8.125% Notes due 2023 (the “2023 Notes”) and $750 aggregate principal amount of 9.125% Notes due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “New Notes”). The proceeds from the New Notes were used, together with the proceeds from the issuance of the Company’s common stock and the Company’s cash and restricted cash on hand, to consummate the Company’s acquisition of Nationstar and the refinancing of certain of Nationstar’s existing debt and to pay related fees and expenses. At the consummation of the acquisition, Merger Sub merged with and into Nationstar, with Nationstar continuing as a wholly-owned subsidiary of the Company. After the Merger, Nationstar assumed all of Merger Sub’s obligations under the New Notes. The acquisition has been accounted for in accordance with ASC 805, Business Combinations , using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The Company recorded preliminary goodwill of $10 , which represents the excess of the purchase price over the estimated fair value of tangible and intangible assets acquired, net of the liabilities assumed. The goodwill is primarily attributable to the assembled workforce and synergies from the future growth and strategic advantages in the mortgage industry. The entire preliminary goodwill is assigned to the Servicing segment and will not be deductible for tax purposes. The table below presents the calculation of aggregate purchase price. Purchase Price Converted WMIH common shares in millions (prior to the 1-for-12 reverse stock split) 394 Price per share, based on price of $1.398 for WMIH stock on July 31, 2018 (prior to the 1-for-12 reverse stock split) $ 1.398 Purchase price from common stock issued 551 Purchase price from cash payment 1,226 Total purchase price $ 1,777 The allocation of the fair value of the acquired business was based on preliminary valuations of the estimated fair value of the assets acquired and liabilities assumed. The determination of fair value estimates requires management to make certain estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and may require adjustments. The Company’s estimates are subject to change as the Company obtains additional information and finalizes its review of estimates during the measurement period (up to one year from the acquisition date). The primary areas of the preliminary allocation of fair value of consideration transferred that are not yet finalized relate to the fair value of reverse mortgage interests and related other nonrecourse debt, advances and other receivables and payables and accrued liabilities. Based on the preliminary allocation of fair value, goodwill of $10 has been recorded. The Company will record any adjustments to the preliminary fair value estimates in the reporting period in which the adjustments are determined. Fair value adjustments based on updated estimates could materially affect the goodwill recorded on the acquisition. The preliminary allocation of the purchase price to the acquired assets and liabilities is as follows: Preliminary Estimated Fair Value of Net Assets Acquired Cash and cash equivalents $ 166 Restricted cash 430 Mortgage servicing rights 3,428 Advances and other receivables 1,262 Reverse mortgage interests 9,213 Mortgage loans held for sale 1,514 Mortgage loans held for investment 125 Property and equipment 96 Derivative financial instruments 64 Other assets 546 Fair value of assets acquired 16,844 Unsecured senior notes 1,830 Advance facilities 551 Warehouse facilities 2,701 Payables and accrued liabilities 1,361 MSR related liabilities—nonrecourse 1,065 Mortgage servicing liabilities 86 Derivative financial instruments 3 Other nonrecourse debt 7,583 Fair value of liabilities assumed 15,180 Total fair value of net tangible assets acquired 1,664 Intangible assets (1) 103 Preliminary goodwill 10 $ 1,777 (1) The following intangible assets were acquired in the Nationstar acquisition: Useful Life (Years) Fair Value Customer relationships (i) 6 $ 61 Tradename (ii) 5 8 Technology (ii) 3-5 11 Internally developed software (iii) 2 23 Total $ 103 (i) The estimated fair values for customer relationships were measured using the excess earnings method. (ii) The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets. (iii) The estimated fair values for internally developed software were measured using the replacement cost method. The preliminary allocation of fair value in the third quarter of 2018 resulted in a $2 bargain purchase gain. The Company did not record the bargain purchase gain in the third quarter of 2018 because it has not completed its assessment of the re-consideration criteria as specified in ASC 805, Business Combinations, which is required to be performed prior to recording a bargain purchase gain. During the fourth quarter of 2018, the Company performed a lookback analysis of certain valuation inputs and related valuation results as part of its assessment of the re-consideration criteria. Based on the revised valuation and lookback analysis performed, the Company updated the estimated fair value of reverse mortgage interests, which resulted in a reduction of $12 in reverse mortgage interests with a corresponding adjustment to goodwill. In addition, the Company updated other assets and payables and accrued liabilities for the tax impact related to the reverse mortgage interests fair value adjustment and return to provision true up adjustments recorded in purchase accounting. As a result of these adjustments, the Company recorded goodwill of $10 as of December 31, 2018 after taking into the consideration of previously unrecognized bargain purchase gain. The purchase price has not been finalized as of December 31, 2018 as the Company continues to analyze the valuations assigned to the acquired assets and assumed liabilities. Due to the complexity in valuing reverse mortgage interests and the significant amount of data inputs required, the valuation is not yet final. As a result of revising the reverse mortgage interests valuation, the purchase accounting accretion and amortization amounts are also subject to change. WMIH incurred total acquisition costs of $92 prior to the consummation of the Merger. No significant additional acquisition costs were recorded during the remainder of fiscal 2018. The acquisition costs were primarily related to legal, accounting and consulting services and were expensed as incurred through July 31, 2018. Included in the total acquisition costs was a transaction fee of $25 to KKR Capital Markets LLC (“KCM”), an affiliate of KKR Wand Investors Corporation, which is WMIH’s largest stockholder, for acting as a non-exclusive financial advisor to WMIH with respect to the Merger and an arrangement fee of $7 to KCM for acting as a placement agent with respect to a bridge financing facility in connection with the Merger that was not executed. In addition, WMIH incurred $38 of costs related to borrowings under the Notes, which were capitalized in debt costs. WMIH also paid KCM a deferred fee of $8 , which initially reduced the carrying value of the Series B Preferred Stock. This fee was payable in connection with the conversion of Series B Preferred Stock to WMIH’s common stock upon consummation of the Merger. Included in the Predecessor’s consolidated statements of operations were $27 of acquisition costs incurred by Nationstar for the seven months ended July 31, 2018. The acquisition costs were primarily related to legal, accounting and consulting services. Included in the Successor’s consolidated statements of operations were $10 of acquisition costs related to the compensation arrangements incurred by the Company related to the merger for the five months ended December 31, 2018 . The following unaudited pro forma financial information presents the combined results of operations for the year ended December 31, 2018 as if the transaction had occurred on January 1, 2018. Year ended December 31, 2018 (unaudited) Pro forma total revenues $ 1,790 Pro forma net income $ 16 The unaudited pro forma financial information above does not include the pro forma effects of the Company’s acquisition of Assurant Mortgage Solutions as presented below. The above unaudited pro forma financial information is presented for illustrative purposes only and is not indicative of the results of operations that would have actually occurred had the Merger occurred on January 1, 2018. In addition, the unaudited pro forma financial information is not indicative of, nor does it purport to project, the future operating results of the Company. Further, the unaudited financial information excludes acquisition and integration costs and does not give effect to any estimated and potential cost savings or other operating efficiencies, if any, that might result from the acquisition. Acquisition of Assurant Mortgage Solutions On August 1, 2018, Xome Holdings LLC, a wholly-owned subsidiary of the Company, acquired Assurant Mortgage Solutions for $38 in cash with additional consideration dependent on the achievement of certain future performance targets, which was estimated at $15 as of December 31, 2018 . Total purchase price is estimated at $53 . The acquisition expands Xome’s footprint and grows its third-party client portfolio across its valuation, title and field services businesses. The Company initially recorded $23 of intangible assets and $3 of goodwill based on preliminary purchase price allocation in the third quarter of 2018. During the fourth quarter of 2018, the Company finalized its purchase price allocation and adjusted the fair value of net assets acquired based on the valuation performed by a third party valuation specialist. Such adjustments resulted in $1 increase in intangible assets and $10 increase in goodwill. Therefore, the Company recorded intangible assets of $24 and goodwill of $13 as of December 31, 2018 and expects entire goodwill will be deductible for tax purposes. |
Advances and Other Receivables,
Advances and Other Receivables, Net | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Advances and Other Receivables, Net | 5. Advances and Other Receivables, Net Advances and other receivables, net consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Servicing advances, net of $205 and $0 discount, respectively $ 952 $ 1,599 Receivables from agencies, investors and prior servicers, net of $48 and $0 discount, respectively 289 391 Reserves (47 ) (284 ) Total advances and other receivables, net $ 1,194 $ 1,706 The Company and Predecessor, as loan servicer, are contractually responsible to advance funds on behalf of the borrower and investor primarily for loan principal and interest, property taxes and hazard insurance, and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral, or mortgage insurance claims. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables. The Company and Predecessor estimate and record an asset for estimated recoveries to be collected from prior servicers for their respective portion of the losses associated with the underlying loans that were not serviced in accordance with established guidelines. Receivables from prior servicers totaled $94 and $134 for the Company and Predecessor’s forward loan portfolio at December 31, 2018 and 2017 , respectively. The following table sets forth the activities of the reserves for advances and other receivables. Successor Predecessor Reserves for Advances and Other Receivables For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ — $ 284 $ 184 Provision and other additions (1) 47 69 142 Write-offs — (56 ) (42 ) Balance - end of period $ 47 $ 297 $ 284 (1) The Company recorded a provision of $25 through the MTM adjustments in service related revenues for the five months ended December 31, 2018 for inactive and liquidated loans that are no longer part of the MSR portfolio. The Predecessor recorded a provision through the MTM adjustments in service related revenues of $38 and $72 for the seven months ended July 31, 2018 and year ended December 31, 2017 , respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate. Purchase Discount for Advances and Other Receivables In connection with the Merger, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a preliminary purchase discount of $302 . The following table sets forth the activities of the purchase discount for advances and other receivables. Successor For the Period August 1 - December 31, 2018 Purchase Discounts Servicing Advances Receivables from Agencies, Investors and Prior Servicers Balance - beginning of period $ 246 $ 56 Utilization of purchase discounts (41 ) (8 ) Balance - end of period $ 205 $ 48 |
Mortgage Servicing Rights and R
Mortgage Servicing Rights and Related Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights and Related Liabilities | 4. Mortgage Servicing Rights and Related Liabilities The following table sets forth the carrying value of the Company’s MSRs and the related liabilities. Successor Predecessor MSRs and Related Liabilities December 31, 2018 December 31, 2017 Forward MSRs - fair value $ 3,665 $ 2,937 Reverse MSRs - amortized cost 11 4 Mortgage servicing rights $ 3,676 $ 2,941 Mortgage servicing liabilities - amortized cost $ 71 $ 41 Excess spread financing - fair value $ 1,184 $ 996 Mortgage servicing rights financing - fair value 32 10 MSR related liabilities - nonrecourse at fair value $ 1,216 $ 1,006 Mortgage Servicing Rights The Company owns and records at fair value the rights to service traditional residential mortgage (“forward”) loans for others either as a result of purchase transactions or from the retained servicing associated with the sales and securitizations of loans originated. MSRs are comprised of servicing rights of both agency and non-agency loans. The following table sets forth the activities of forward MSRs. Successor Predecessor Forward MSRs - Fair Value For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Fair value - beginning of period $ 3,413 $ 2,937 $ 3,160 Additions: Servicing retained from mortgage loans sold 120 162 203 Purchases of servicing rights 479 144 66 Dispositions: Sales of servicing assets (1) (111 ) 4 (60 ) Changes in fair value: Changes in valuation inputs or assumptions used in the valuation model (123 ) 330 (101 ) Other changes in fair value (113 ) (164 ) (331 ) Fair value - end of period $ 3,665 $ 3,413 $ 2,937 (1) Amount for the seven months ended July 31, 2018 is related to the sale of MSRs collateralized by nonperforming loans, which have a negative MSR value. From time to time, the Company sells its ownership interest in certain MSRs and is retained as the subservicer for the sold assets. The Company has evaluated the sale accounting requirements related to these transactions, including the Company’s continued involvement as the subservicer, and concluded that these transactions qualify for sale accounting treatment. During the five months ended December 31, 2018 , the Company sold $10,746 in unpaid principal balance (“UPB”) of forward MSRs, of which none was retained by the Company as subservicer. During the seven months ended July 31, 2018 and the year ended December 31, 2017 , the Predecessor sold $1,203 and $2,123 in UPB of forward MSRs, respectively, of which $1 and $364 was retained by the Company as subservicer, respectively. MSRs measured at fair value are segregated between credit sensitive and interest sensitive pools. Credit sensitive pools are primarily impacted by borrower performance under specified repayment terms, which most directly impacts involuntary prepayments and delinquency rates. Interest sensitive pools are primarily impacted by changes in forecasted interest rates, which in turn impact voluntary prepayment speeds. The Company assesses whether acquired portfolios are more credit sensitive or interest sensitive in nature on the date of acquisition. Numerous factors are considered in making this assessment, including loan-to-value ratios, FICO scores, percentage of portfolio previously modified, portfolio seasoning and similar criteria. The determination between credit sensitive and interest sensitive for a pool is made at the date of acquisition, and no subsequent changes are made. Credit sensitive portfolios generally consist of higher delinquency, single-family non-conforming residential forward mortgage loans serviced for agency and non-agency investors. Interest sensitive portfolios generally consist of lower delinquency, single-family conforming residential forward mortgage loans for agency investors. The following table provides a breakdown of credit sensitive and interest sensitive UPB for the Company’s forward MSRs. Successor Predecessor December 31, 2018 December 31, 2017 MSRs - Sensitivity Pools UPB Fair Value UPB Fair Value Credit sensitive $ 135,752 $ 1,495 $ 167,605 $ 1,572 Interest sensitive 159,729 2,170 113,775 1,365 Total $ 295,481 $ 3,665 $ 281,380 $ 2,937 The Company used the following key weighted-average inputs and assumptions in estimating the fair value of forward MSRs. Successor Predecessor Credit Sensitive December 31, 2018 December 31, 2017 Discount rate 11.3 % 11.4 % Total prepayment speeds 11.8 % 15.2 % Expected weighted-average life 6.4 years 5.7 years Interest Sensitive Discount rate 9.3 % 9.2 % Total prepayment speeds 10.0 % 10.7 % Expected weighted-average life 7.0 years 6.7 years The following table shows the hypothetical effect on the fair value of the forward MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated. Discount Rate Total Prepayment Speeds Forward MSRs - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change Successor December 31, 2018 Forward mortgage servicing rights $ (137 ) $ (265 ) $ (129 ) $ (250 ) Predecessor December 31, 2017 Forward mortgage servicing rights $ (108 ) $ (208 ) $ (118 ) $ (227 ) These hypothetical sensitivities should be evaluated with care. The effect on fair value of a 10% adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Reverse Mortgage Servicing Rights and Liabilities - Amortized Cost The Company services certain HECM reverse mortgage loans with an unpaid principal balance of $28,415 as of December 31, 2018 . The Predecessor serviced and subserviced certain HECM reverse mortgage loans with an unpaid principal balance of $35,112 as of December 31, 2017 . Reverse mortgage servicing liabilities had an ending balance of $71 and $41 as of December 31, 2018 and 2017 for the Company and Predecessor, respectively. For the five months ended December 31, 2018 , the Company accreted $15 of the MSL. For the seven months ended July 31, 2018 , the Predecessor accreted $11 of the MSL and recorded impairment of $56 in general and administrative expenses. For the year ended December 31, 2017 , the Predecessor accreted $4 of the MSL and recorded an impairment of $3 . Such accretion recorded by the Predecessor relates to previous portfolio acquisitions. Reverse MSR had an ending balance of $11 and $4 as of December 31, 2018 and 2017 for the Company and Predecessor, respectively. For the five months ended December 31, 2018 , the Company recorded $4 of amortization. For the seven months ended July 31, 2018 , the Predecessor recorded an impairment of $4 . For the year ended December 31, 2017 , the Predecessor amortized $2 of the MSR. The fair value of the reverse MSR was $11 and $29 as of December 31, 2018 and 2017 for the Company and Predecessor, respectively. The fair value of the MSL was $53 and $34 as of December 31, 2018 and 2017 for the Company and Predecessor, respectively. Management evaluates reverse MSRs and MSLs each reporting period for impairment. Based on management’s assessment at December 31, 2018 and 2017 , no impairment or increased obligation was needed. Excess Spread Financing - Fair Value In order to finance the acquisition of certain MSRs on various Portfolios, the Company has entered into sale and assignment agreements with a third-party associated with funds and accounts under management of BlackRock Financial Management Inc. (“BlackRock”), a third-party associated with funds and accounts under management of V ä rde Partners, Inc. (“Varde”), and with certain affiliated entities formed and managed by New Residential Investment Corp. (“New Residential”). The Company sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. Servicing fees associated with traditional MSRs can be segregated into a contractually specified base servicing fee component and an excess servicing fee. The base servicing fee, along with ancillary income, is designed to cover costs incurred to service the specified pool plus a reasonable profit margin. The remaining servicing fee is considered excess. The Company retains all the base servicing fee and ancillary revenues associated with servicing the Portfolios and retains a portion of the excess servicing fee. The Company continues to be the servicer of the Portfolios and provides all servicing and advancing functions. Contemporaneous with the above, the Company entered into refinanced loan obligations with New Residential, BlackRock and Varde. Should the Company refinance any loan in the Portfolios, subject to certain limitations, it will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above, which is the primary driver of the recapture rate assumption. The range of key assumptions used in the Company’s valuation of excess spread financing are as follows: Excess Spread Financing Prepayment Speeds Average Life (Years) Discount Rate Recapture Rate Successor December 31, 2018 Low 6.0 % 5.0 8.5 % 8.5 % High 16.7 % 8.1 13.9 % 30.5 % Weighted-average 11.0 % 6.5 10.4 % 18.6 % Predecessor December 31, 2017 Low 6.2 % 4.4 8.5 % 7.2 % High 21.2 % 6.9 14.1 % 30.0 % Weighted-average 13.7 % 5.9 10.8 % 18.7 % The following table shows the hypothetical effect on the excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated. Discount Rate Prepayment Speeds Excess Spread Financing - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change Successor December 31, 2018 Excess spread financing $ 47 $ 99 $ 38 $ 81 Predecessor December 31, 2017 Excess spread financing $ 37 $ 78 $ 34 $ 71 As the cash flow assumptions utilized in determining the fair value amounts in the excess spread financing are based on the related cash flow assumptions utilized in the financed MSRs, any fair value changes recognized in the MSRs would inherently have an inverse impact on the carrying amount of the related excess spread financing. For example, while an increase in discount rates would negatively impact the value of the Company’s MSRs, it would reduce the carrying value of the associated excess spread financing liability. These hypothetical sensitivities should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. Mortgage Servicing Rights Financing - Fair Value From December 2013 through June 2014, the Predecessor entered into agreements to sell a contractually specified base servicing fee component of certain MSRs and servicing advances under specified terms to a joint venture capitalized by New Residential and certain unaffiliated third-party investors. The Predecessor and subsequently the Company continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with the Company. Accordingly, the Predecessor and the Company records the MSRs and a MSR financing liability associated with this transaction in its consolidated balance sheets. The following table sets forth the weighted average assumptions used in the valuation of the mortgage servicing rights financing. Successor Predecessor Mortgage Servicing Rights Financing Assumptions December 31, 2018 December 31, 2017 Advance financing rates 4.2 % 3.5 % Annual advance recovery rates 19.0 % 23.2 % The following table sets forth the items comprising revenues associated with servicing loan portfolios. Successor Predecessor Servicing Revenue For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Contractually specified servicing fees (1) $ 421 $ 574 $ 1,003 $ 1,045 Other service-related income (1) 44 66 168 245 Incentive and modification income (1) 17 37 80 113 Late fees (1) 34 53 89 82 Reverse servicing fees 16 37 58 57 Mark-to-market adjustments (2) (164 ) 196 (160 ) (177 ) Counterparty revenue share (3) (68 ) (111 ) (230 ) (298 ) Amortization, net of accretion (4) (64 ) (112 ) (242 ) (314 ) Total servicing revenue $ 236 $ 740 $ 766 $ 753 (1) Amounts include subservicing related revenues. (2) Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was $25 for the five months ended December 31, 2018 . The impact of negative modeled cash flows for the Predecessor was $38 for the seven months ended July 31, 2018 and $72 and $81 for the years ended December 31, 2017 and 2016 , respectively. (3) Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSR financing arrangements. (4) Amortization for the Successor is net of excess spread accretion of $53 and MSL accretion of $15 for the five months ended December 31, 2018 . Amortization for the Predecessor is net of excess spread accretion of $78 for the seven months ended July 31, 2018 , and $161 and $200 for the years ended December 31, 2017 and 2016 , respectively. The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion. |
Reverse Mortgage Interests, Net
Reverse Mortgage Interests, Net | 12 Months Ended |
Dec. 31, 2018 | |
Reverse Mortgage Interest [Abstract] | |
Reverse Mortgage Interests, Net | 6. Reverse Mortgage Interests, Net Reverse mortgage interests, net consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Participating interests in HECM mortgage-backed securities, net of $58 and $0 premium, respectively $ 5,664 $ 7,107 Other interests securitized, net of $100 and $0 discount, respectively 1,064 912 Unsecuritized interests, net of $122 and $89 discount, respectively 1,219 2,080 Reserves (13 ) (115 ) Total reverse mortgage interests, net $ 7,934 $ 9,984 Participating Interests in HMBS Participating interests in HMBS consist of the Company’s reverse mortgage interests in HECM loans which have been transferred to GNMA and subsequently securitized through the issuance of HMBS. During the five months ended December 31, 2018 , a total of $107 UPB was transferred to GNMA and securitized by the Company. During the seven months ended July 31, 2018 and year ended December 31, 2017 , a total of $198 and $547 in UPB were transferred to GNMA and securitized by the Predecessor, respectively. Other Interests Securitized Other interests securitized consist of reverse mortgage interests that no longer meet HMBS program eligibility criteria and have been repurchased out of HMBS. These reverse mortgage interests have subsequently been transferred to private securitization trusts and are accounted for as a secured borrowing. During the five months ended December 31, 2018 , the Company securitized a total of $364 UPB through Trust 2018-3 and a total of $188 UPB from Trust 2017-1 was called and the related debt was extinguished. During the seven months ended July 31, 2018 , the Predecessor securitized a total of $760 UPB through Trust 2018-1 and Trust 2018-2 and a total of $284 UPB from Trust 2016-2 and Trust 2016-3 were called and the related debt was extinguished. Refer to Other Nonrecourse Debt in Note 11, Indebtedness for additional information. Unsecuritized Interests Unsecuritized interests in reverse mortgages consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Repurchased HECM loans (exceed 98% MCA) $ 949 $ 1,751 HECM related receivables 300 311 Funded borrower draws not yet securitized 76 82 REO-related receivables 16 25 Purchase discount (122 ) (89 ) Total unsecuritized interests $ 1,219 $ 2,080 Unsecuritized interests include repurchased HECM loans for which the Company is required to repurchase from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount (“MCA”) established at origination in accordance with HMBS program guidelines. The Company repurchased a total of $1,429 of HECM loans out of GNMA HMBS securitizations during the five months ended December 31, 2018 , of which $328 were subsequently assigned to a third party in accordance with applicable servicing agreements. The Predecessor repurchased a total of $2,439 and $4,268 of HECM loans out of GNMA HMBS securitizations during the seven months ended July 31, 2018 and year ended December 31, 2017 , respectively, of which, $512 and $1,018 were subsequently assigned to a third party in accordance with applicable servicing agreements, respectively. To the extent a loan is not subject to applicable servicing agreements and assigned to a third party, the loan is either subject to assignment to U.S. Department of Housing and Urban Development (“HUD”), per contractual obligations with GNMA, liquidated via a payoff from the borrower or liquidated via a foreclosure according to the terms of the underlying mortgage. The Company and the Predecessor also estimate and record an asset for probable recoveries from prior servicers for their respective portion of the losses associated with the underlying loans that were not serviced in accordance with established guidelines. Receivables from prior servicers totaled $18 and $22 for the Company and Predecessor’s reverse loan portfolio at December 31, 2018 and 2017 , respectively. Purchase of Reverse Mortgage Servicing Rights and Interests On December 1, 2016 , the Predecessor executed an asset purchase agreement with a large financial institution and acquired servicing rights and reverse mortgage interests. As part of the asset purchase agreement, the Predecessor agreed to acquire remaining components of the reverse portfolio, primarily including servicing of whole HECM loans and REO advances upon receiving regulatory approval. In September 2017 , the Predecessor executed a mortgage servicing rights purchase agreement and a subservicing agreement to acquire servicing rights and subservicing contracts on the remaining reverse portfolio. In March 2018, the Predecessor executed an asset purchase agreement to acquire reverse mortgage interests on the subservicing contracts acquired in September 2017 referenced above, acquiring $467 UPB of participating interests in HECM loans and $460 UPB of related HMBS obligations. Reserves for Reverse Mortgage Interests The Company records reserves related to reverse mortgage interests based on potential unrecoverable costs and loss exposures expected to be realized. Recoverability is determined based on the Company’s ability to meet HUD servicing guidelines and is viewed as two different categories of expenses: financial and operational. Financial exposures are defined as the cost of doing business related to servicing the HECM product and include potential unrecoverable costs primarily based on HUD claim guidelines related to recoverable expenses and unfavorable changes in the appraised value of the loan collateral. Operational exposures are defined as unrecoverable debenture interest curtailments imposed for missed HUD-specified servicing timelines. Reserves for reverse mortgage interests are related to both financial and operational exposures. The activity of the reserves for reverse mortgage interests is set forth below. Successor Predecessor Reserves for reverse mortgage interests For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ — $ 115 $ 131 Provisions 13 32 76 Write-offs — (18 ) (92 ) Balance - end of period $ 13 $ 129 $ 115 Purchase Discount for Reverse Mortgage Interests In connection with the Merger, the Company recorded the acquired reverse mortgage interests at estimated fair value as of the acquisition date, which resulted in a preliminary purchase premium of $58 for participating interests in HMBS, and a preliminary purchase discount of $290 for other interest securitized and unsecuritized interests as this population of reverse mortgage interests represents a portion of the portfolio that has more risk of loss attributable to financial and operational exposures related to being serviced through foreclosure and collateral liquidation. The following table sets forth the activities of the purchase premiums and discounts for reverse mortgage interests. Successor For the Period August 1 - December 31, 2018 Purchase premiums and discounts for reverse mortgage interests Premium for Participating Interests in HMBS Discount for Other Interest Securitized Discount for Unsecuritized Interests Balance - beginning of period $ 58 $ (117 ) $ (173 ) Additions — — — Utilization of purchase discounts — — 43 Accretion/(Amortization) — 17 8 Balance - end of period $ 58 $ (100 ) $ (122 ) In connection with previous reverse mortgage portfolio acquisitions, the Predecessor recorded a purchase discount within unsecuritized interests. The following table sets forth the activities of the purchase discounts for reverse mortgage interests. Predecessor Purchase discounts for reverse mortgage interests For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ (89 ) $ (43 ) Additions (7 ) (75 ) Accretion 14 29 Balance - end of period $ (82 ) $ (89 ) Reverse Mortgage Interest Income The Company accrues interest income for its participating interest in reverse mortgages based on the stated rates underlying HECM loans and FHA guidelines. Total interest earned on the Company’s reverse mortgage interests was $206 for the five months ended December 31, 2018 . Total interest earned on the Predecessor’s reverse mortgage interests was $274 for the seven months ended July 31, 2018 , and $490 and $344 for the years ended December 31, 2017 and 2016 , respectively. |
Mortgage Loans Held for Sale an
Mortgage Loans Held for Sale and Investment | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Mortgage Loans Held for Sale and Investment | 7. Mortgage Loans Held for Sale and Investment Mortgage Loans Held for Sale The Company maintains a strategy of originating and purchasing residential mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. The Company focuses on assisting customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases. Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis. Mortgage loans held for sale are recorded at fair value as set forth below. Successor Predecessor December 31, 2018 December 31, 2017 Mortgage loans held for sale - UPB $ 1,568 $ 1,837 Mark-to-market adjustment (1) 63 54 Total mortgage loans held for sale $ 1,631 $ 1,891 (1) The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations. The Company accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. Accrued interest is recorded as interest income in the consolidated statements of operations. The total UPB of mortgage loans held for sale on non-accrual status was as follows: Successor Predecessor December 31, 2018 December 31, 2017 Mortgage Loans Held for Sale - UPB UPB Fair Value UPB Fair Value Non-accrual (1) $ 45 $ 42 $ 66 $ 64 (1) Non-accrual includes $40 and $64 of UPB related to Ginnie Mae repurchased loans as of December 31, 2018 and 2017 , respectively. From time to time, the Company exercises its right to repurchase individual delinquent loans in Ginnie Mae securitization pools to minimize interest spread losses, to re-pool into new Ginnie Mae securitizations, or to otherwise sell to third-party investors. During the five months ended December 31, 2018 , the Company repurchased $56 of delinquent Ginnie Mae loans and securitized or sold to third-party investors $95 of previously repurchased loans. During the seven months ended July 31, 2018 and the year ended December 31, 2017 , the Predecessor repurchased $118 and $316 of delinquent Ginnie Mae loans, respectively, and securitized or sold to third-party investors $151 and $341 of previously repurchased loans, respectively. As of December 31, 2018 and 2017 , $70 and $227 of the repurchased loans have re-performed and were held in accrual status, respectively, and remaining balances continue to be held under a nonaccrual status. The total UPB of mortgage loans held for sale for which the Company and the Predecessor have begun formal foreclosure proceedings was $33 and $51 as of December 31, 2018 and 2017 , respectively. The following table details a roll forward of the change in the account balance of mortgage loans held for sale. Successor Predecessor Mortgage loans held for sale For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ 1,514 $ 1,891 $ 1,788 Mortgage loans originated and purchased, net of fees 8,890 12,319 19,140 Loans sold (9,304 ) (13,255 ) (20,318 ) Repurchase of loans out of Ginnie Mae securitizations 527 544 1,249 Transfer of mortgage loans held for sale to advances/accounts receivable related to claims (1) (5 ) (7 ) (19 ) Net transfer of mortgage loans held for sale from REO in other assets (2) 5 14 23 Changes in fair value 6 (1 ) 9 Other purchase-related activities (3) (2 ) 9 19 Balance - end of period $ 1,631 $ 1,514 $ 1,891 (1) Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale. (2) Net amounts are comprised of REO in the sales process which are transferred to other assets and certain government insured mortgage REO which are transferred from other assets upon completion of the sale so that the claims process can begin. (3) Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts. For the five months ended December 31, 2018 , the Company received proceeds of $9,397 on the sale of mortgage loans held for sale, resulting in gains of $93 . For the seven months ended July 31, 2018 and years ended December 31, 2017 and 2016 , the Predecessor received proceeds of $13,382 , $20,772 and $21,942 , respectively, on the sale of mortgage loans held for sale, resulting in gains of $127 , $454 and $539 , respectively. The Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale. The amounts repurchased out of Ginnie Mae pools, as presented above, are primarily in connection with loan modifications and loan resolution activity as part of the Company’s contractual obligations as the servicer of the loans. Mortgage Loans Held for Investment The following sets forth the composition of mortgage loans held for investment, net. Successor December 31, 2018 Mortgage loans held for investment, net – UPB $ 156 Fair value adjustments (37 ) Total mortgage loans held for investment at fair value $ 119 Predecessor December 31, 2017 Mortgage loans held for investment, net - UPB $ 193 Transfer discount: Non-accretable (41 ) Accretable (12 ) Allowance for loan losses (1 ) Total mortgage loans held for investment, net $ 139 The Predecessor recorded interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, the Predecessor reclassified to accretable yield discount approximately $1 of transfer discount designated as reserves for future loss, for the seven months ended July 31, 2018 and the year ended December 31, 2017 , respectively. No provision for reserves was required for the year ended December 31, 2017 as the fair value of the underlying collateral exceeded the carrying value of the loans, net of the non-accretable discount. The total UPB of mortgage loans held for investment on non-accrual status was as follows: Successor December 31, 2018 Mortgage Loans Held for Investment - UPB UPB Fair Value Non-accrual $ 27 $ 13 The following table details a roll forward of the change in the account balance of mortgage loans held for investment. Successor Mortgage loans held for investment at fair value For the Period August 1 - December 31, 2018 Balance - beginning of period $ 125 Payments received from borrowers (5 ) Charge-offs (3 ) Changes in fair value 2 Balance - end of period $ 119 The total UPB of mortgage loans held for investment for which the Company and the Predecessor have begun formal foreclosure proceedings was $15 and $22 as of December 31, 2018 and 2017 , respectively. |
Property and Equipment, Net Pro
Property and Equipment, Net Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | 8. Property and Equipment, Net The composition of property and equipment, net, and the corresponding ranges of estimated useful lives were as follows: Successor Predecessor December 31, 2018 December 31, 2017 Estimated Useful Life Furniture, fixtures, and equipment $ 32 $ 57 3 - 5 years Capitalized software costs 24 152 3 - 5 years Software in development and other 24 12 Leasehold improvements 22 19 3 - 5 years Long-term capital leases - computer equipment 10 50 5 years Property and equipment 112 290 Less: Accumulated depreciation (16 ) (169 ) Total property and equipment, net $ 96 $ 121 The Company recorded depreciation expense on property and equipment of $16 for the five months ended December 31, 2018 . The Predecessor recorded depreciation expense on property and equipment of $31 , $54 and $56 for the seven months ended July 31, 2018 and years ended December 31, 2017 , and 2016 , respectively. The Company and Predecessor have entered into various lease agreements for computer equipment which are classified as capital leases. All of the capital leases expire over the next year. A majority of these lease agreements contain bargain purchase options. No impairment losses related to property and equipment were recorded by the Predecessor and Company during the seven months ended July 31, 2018 and the five months ended December 31, 2018 , respectively. During the year ended December 31, 2017 , the Predecessor recorded a total of $3 impairment charges for hardware and software that were no longer in use. The impairment charges were included in the general and administrative expenses in the consolidated statements of operations. During the year ended December 31, 2016 , the Predecessor recorded a total of $11 impairment charges for assets that were no longer in use, including $10 primarily related to software and hardware and $1 due to retirement of Predecessor’s old website upon launch of Predecessor’s new website. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | 9. Other Assets Other assets consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 Loans subject to repurchase right from Ginnie Mae $ 266 $ 218 Accrued revenues 145 148 Intangible assets 117 19 Goodwill 23 72 Other 244 222 Total other assets $ 795 $ 679 Loans Subject to Repurchase Right from Ginnie Mae Forward loans are sold to Ginnie Mae in conjunction with the issuance of mortgage backed securities. The Company, as the issuer of the mortgage backed securities, has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once the Company has the unilateral right to repurchase a delinquent loan, it has effectively regained control over the loan and recognizes these rights to the loan on its consolidated balance sheets and establishes a corresponding repurchase liability regardless of the Company’s intention to repurchase the loan. Accrued Revenues Accrued revenues are primarily comprised of service fees earned but not received based upon the terms of the Company’s servicing and subservicing agreements. Goodwill and Intangible Assets The following presents changes in the carrying amount of goodwill for the years indicated. Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period (1) $ 10 $ 72 $ 74 Addition from acquisitions (2) 13 — — Goodwill disposition — — (2 ) Balance - end of period $ 23 $ 72 $ 72 (1) Beginning balance for the Successor includes goodwill of $10 in connection with the acquisition of Nationstar on July 31, 2018, 2018. See further discussion in Note 3, Acquisitions . (2) As discussed in Note 3, Acquisitions , the Company recorded goodwill of $13 in connection with the acquisition of Assurant Mortgage Solutions in 2018. The Company performed a qualitative assessment of its reporting units and determined that no impairment of goodwill existed in the five months ended December 31, 2018 . The Predecessor did not recognize goodwill impairment in the seven months ended July 31, 2018 and the years ended December 31, 2017 and 2016 . The following tables present the composition of intangible assets. Successor December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 77 $ (14 ) $ 63 5.6 Technology 52 (8 ) 44 3.6 Trade name 8 (1 ) 7 4.6 Other 3 — 3 4.8 Total intangible assets $ 140 $ (23 ) $ 117 4.7 Predecessor December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 8 $ (3 ) $ 5 6.6 Customer relationships 12 (6 ) 6 4.7 Purchased software 12 (5 ) 7 4.0 Licenses 1 — 1 Indefinite Total intangible assets $ 33 $ (14 ) $ 19 4.8 The Company recognized $23 of amortization expense during the five months ended December 31, 2018 . The Predecessor recognized amortization expense of $2 during the seven months ended July 31, 2018 , and $5 , and $8 during the years ended December 31, 2017 , and 2016 , respectively. The following table presents the estimated aggregate amortization expense for existing amortizable intangible assets for the years indicated. Year Ending December 31, Amount 2019 $ 47 2020 32 2021 17 2022 13 2023 8 Thereafter — Total future amortization expense $ 117 Other Other primarily includes derivative financial instruments, prepaid expenses, deposits, REO, tax receivables and non-advance related accounts receivable due from investors. See Note 10, Derivative Financial Instruments , for further details on derivative financial instruments. REO, net includes $10 and $15 of REO-related receivables with government insurance as of December 31, 2018 and 2017 , respectively, limiting loss exposure to the Company and the Predecessor. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 10. Derivative Financial Instruments Derivative instruments utilized by the Company primarily include IRLCs, LPCs, forward MBS trades, Eurodollar and Treasury futures and interest rate swap agreements. Associated with the Company and Predecessor’s derivatives are $12 and $1 in collateral deposits on derivative instruments recorded in other assets on the Company and Predecessor’s consolidated balance sheets as of December 31, 2018 and 2017 , respectively. The Company and Predecessor do not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the consolidated balance sheets. The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses). Successor Predecessor December 31, 2018 For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Expiration Dates Outstanding Notional Fair Value Recorded Gains/(Losses) Recorded Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2019 $ 319 $ 13.5 $ 2.8 $ 10.5 Derivative financial instruments IRLCs 2019 1,301 47.6 (12.1 ) 0.4 Forward sales of MBS 2019 485 0.1 (3.1 ) 0.9 LPCs 2019 215 1.7 0.4 0.3 Treasury futures (1) 2018 — — (0.1 ) (1.8 ) Eurodollar futures (1) 2019-2021 19 — — — Liabilities Derivative financial instruments IRLCs (1) 2019 — — — — Forward sales of MBS 2019 2,639 19.3 17.4 (1.0 ) LPCs 2019 90 0.4 (0.2 ) 0.1 Treasury futures (1) 2018 — — (0.1 ) (1.3 ) Eurodollar futures (1) 2019-2021 6 — — — Predecessor December 31, 2017 Year ended December 31, 2017 Expiration Dates Outstanding Notional Fair Value Recorded Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments (1) 2018 $ 13 $ 0.1 $ — Derivative financial instruments IRLCs 2018 2,065 59.3 (32.9 ) Forward sales of MBS 2018 1,802 2.4 (36.9 ) LPCs 2018 171 0.9 (1.0 ) Treasury futures 2018 81 1.9 1.9 Eurodollar futures (1) 2018-2021 26 — — Interest rate swaps (1) 2018 — — (0.1 ) Liabilities Derivative financial instruments IRLCs (1) 2018 7 — 1.1 Forward sales of MBS 2018 1,579 2.8 7.2 LPCs 2018 213 0.6 0.9 Treasury futures 2018 128 1.4 (1.4 ) Eurodollar futures (1) 2018-2021 17 — — Interest rate swaps (1) 2018 — — 0.1 (1) Fair values or recorded gains/(losses) of derivative instruments are less than $0.1 for the specified dates. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Indebtedness | es Payable Successor Predecessor December 31, 2018 December 31, 2017 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Nationstar agency advance receivables trust LIBOR+1.5% to 2.6% December 2020 Servicing advance receivables $ 350 $ 218 $ 255 $ 416 $ 492 Nationstar mortgage advance receivable trust LIBOR+1.5% to 6.5% August 2021 Servicing advance receivables 325 209 284 230 287 MBS servicer advance facility (2014) CPRATE+2.5% December 2019 Servicing advance receivables 125 90 149 44 140 Nationstar agency advance financing facility LIBOR+1.5% July 2020 Servicing advance receivables 125 78 89 102 117 MBS advance financing facility LIBOR+2.5% March 2019 Servicing advance receivables — — — 63 64 Advance facilities principal amount 595 $ 777 855 $ 1,100 Unamortized debt issuance costs — — Advance facilities, net $ 595 $ 855 Successor Predecessor December 31, 2018 December 31, 2017 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,200 warehouse facility LIBOR+1.9% to 3.8% March 2019 Mortgage loans or MBS $ 1,200 $ 464 $ 514 $ 889 $ 960 $1,000 warehouse facility LIBOR+1.6% to 2.5% September 2019 Mortgage loans or MBS 1,000 137 140 299 308 $950 warehouse facility LIBOR+1.7% to 3.5% November 2019 Mortgage loans or MBS 950 560 622 721 785 $600 warehouse facility LIBOR+2.5% February 2020 Mortgage loans or MBS 600 151 168 333 347 $500 warehouse facility LIBOR+2.0% to 2.3% September 2020 Mortgage loans or MBS 500 290 299 — — $500 warehouse facility LIBOR+1.5% to 2.8% November 2019 Mortgage loans or MBS 500 220 248 305 337 $500 warehouse facility LIBOR+1.5% to 3.0% April 2019 Mortgage loans or MBS 500 187 200 246 272 $500 warehouse facility LIBOR+1.8% to 2.8% August 2019 Mortgage loans or MBS 500 119 122 233 239 $300 warehouse facility LIBOR+2.3% January 2020 Mortgage loans or MBS 300 103 132 116 141 $200 warehouse facility LIBOR+1.3% April 2019 Mortgage loans or MBS 200 18 19 80 81 $40 warehouse facility LIBOR+3.0% November 2019 Mortgage loans or MBS 40 1 2 4 6 2,250 2,466 3,226 3,476 MSRs $200 warehouse facility (1) LIBOR+3.8% March 2019 Mortgage loans or MBS 200 — 430 — 377 $200 warehouse facility LIBOR+4.0% June 2020 Mortgage loans or MBS 200 100 928 50 594 $175 warehouse facility LIBOR+2.3% December 2020 Mortgage loans or MBS 175 — 226 — 200 $50 warehouse facility LIBOR+4.5% August 2020 Mortgage loans or MBS 50 — 102 10 90 100 1,686 60 1,261 Warehouse facilities principal amount 2,350 $ 4,152 3,286 $ 4,737 Unamortized debt issuance costs (1 ) (1 ) Warehouse facilities, net $ 2,349 $ 3,285 Pledged Collateral: Mortgage loans held for sale and mortgage loans held for investment $ 1,528 $ 1,628 $ 1,792 $ 1,901 Reverse mortgage interests 722 838 1,434 1,575 MSRs 100 1,686 60 1,261 (1) The capacity amount of this facility is a sublimit of the $1,200 warehouse facility. Unsecured Senior Notes Unsecured senior notes consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 $950 face value, 8.125% interest rate payable semi-annually, due July 2023 (1) $ 950 $ — $750 face value, 9.125% interest rate payable semi-annually, due July 2026 (1) 750 — $600 face value, 6.500% interest rate payable semi-annually, due July 2021 (2) 592 595 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 (2) 206 206 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 (3) — 364 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 (3) — 397 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 (3) — 323 Unsecured senior notes principal amount 2,498 1,885 Unamortized debt issuance costs, net of premium, and discount (39 ) (11 ) Unsecured senior notes, net $ 2,459 $ 1,874 (1) On July 13, 2018, Merger Sub issued $950 aggregate principal amount of the 8.125% Notes due 2023 and $750 aggregate principal amount of the 9.125% Notes due 2026. The proceeds from the New Notes were used, together with the proceeds from the issuance of WMIH’s common stock and WMIH’s cash and restricted cash on hand, to consummate the Merger with Nationstar and the refinancing of certain Nationstar’s existing debt and to pay related fees and expenses. At the consummation of the acquisition, Merger Sub merged with and into Nationstar with Nationstar assuming the obligations under the New Notes. (2) In June 2018, the Predecessor entered into a supplemental indenture to, among other things, modify the definition of “Change of Control” to provide that the Merger will not constitute a change of control which would otherwise trigger redemption obligations. (3) The note of the Predecessor was paid off or redeemed in August 2018. The indentures for the unsecured senior notes contain various covenants and restrictions that limit the issuer(s) and restricted subsidiaries ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the applicable indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures for the unsecured senior notes provide that the Company may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest, to the redemption dates. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. During the five months ended December 31, 2018 , the Company redeemed $658 in principal of outstanding notes. Additionally, the Company repaid $364 in principal of outstanding notes which matured during the five months ended December 31, 2018 . The Predecessor repurchased $60 and $120 in principal amount of outstanding notes during the seven months ended July 31, 2018 and year ended December 31, 2017 , respectively, resulting in a loss of $2 and $3 , respectively. Additionally, the indentures provide that on or before certain fixed dates, the Company may redeem (x) in the case of the New Notes, up to 40% , or (y) in the case of the other series of unsecured senior notes, up to 35% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. As of December 31, 2018 , the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows: Year Ending December 31, Amount 2019 $ — 2020 — 2021 592 2022 206 2023 950 Thereafter 750 Total $ 2,498 Other Nonrecourse Debt Other nonrecourse debt consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating interest financing (1) — — — $ — $ 5,607 $ 7,111 Securitization of nonperforming HECM loans Trust 2016-2 June 2016 June 2026 A, M1, M2 — — 94 Trust 2016-3 August 2016 August 2026 A, M1, M2 — — 138 Trust 2017-1 May 2017 May 2027 A, M1, M2 — — 213 Trust 2017-2 September 2017 September 2027 A, M1, M2 284 231 365 Trust 2018-1 March 2018 March 2028 A, M1, M2, M3, M4, M5 308 284 — Trust 2018-2 August 2018 August 2028 A, M1, M2, M3, M4, M5 260 250 — Trust 2018-3 November 2018 November 2028 A, M1, M2, M3, M4, M5 350 326 — Nonrecourse debt - legacy assets November 2009 October 2039 A 105 29 42 Other nonrecourse debt principal amount 6,727 7,963 Unamortized debt issuance costs, net of premium, and issuance discount (2) 68 51 Other nonrecourse debt, net $ 6,795 $ 8,014 (1) Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios. (2) The Predecessor amount includes a premium of $62 as of December 31, 2017 . Participating Interest Financing Participating interest financing represents the obligation of HMBS pools to third-party security holders. The Company and Predecessor issue HMBS in connection with the securitization of borrower draws and accrued interest on HECM loans. Proceeds are received in exchange for securitized advances on the HECM loan amounts transferred to GNMA, and the Company retains a beneficial interest (referred to as a “participating interest”) in the securitization trust in which the HECM loans and HMBS obligations are held and assume both issuer and servicer responsibilities in accordance with GNMA HMBS program guidelines. Monthly cash flows generated from the HECM loans are used to service the HMBS obligations. The interest rate is based on the underlying HMBS rate with a range of 2.6% to 6.6% . Securitizations of Nonperforming HECM Loans From time to time, the Company securitizes its interests in non-performing reverse mortgages. The transactions provide investors with the ability to invest in a pool of both non-performing HECM loans secured by one-to-four-family residential properties and a pool of REO properties acquired through foreclosure of a deed in lieu of foreclosure in connection with HECM loans that are covered by FHA insurance. The transactions provide the Company with access to liquidity for the non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as reverse mortgage interests and the related financing included in other nonrecourse debt. Interest is accrued at a rate of 2.0% to 6.0% on the outstanding securitized notes and recorded as interest expense in consolidated statements of operations. The HECM securitizations are callable with expected weighted average lives of less than one to four years. The Company may re-securitize the previously called loans from earlier HECM securitizations to achieve a lower cost of funds. Nonrecourse Debt – Legacy Assets During November 2009, the Company completed the securitization of approximately $222 of Asset-Backed Securities (“ABS”), which was accounted for as a secured borrowing. This structure resulted in the Company carrying the securitized mortgage loans in its consolidated balance sheets and recognizing the asset-backed certificates acquired by third parties. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.5% , which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $160 and $181 at December 31, 2018 and December 31, 2017 , respectively. The UPB on the outstanding loans was $29 and $42 at December 31, 2018 and December 31, 2017 , respectively, and the carrying value of the nonrecourse debt was $29 and $37 , respectively. Financial Covenants The Company and the Predecessor’s borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. Due to the Merger-related expenses incurred by the Predecessor in July 2018, the Company was unable to meet the profitability requirement in one of its outstanding warehouse facilities as of September 30, 2018. At the Company’s request, the financial institution associated with this warehouse facility agreed to amend this profitability requirement. As a result of this amendment, the Company was in compliance with its required financial covenants as of December 31, 2018 . The Company is required to maintain a minimum tangible net worth of at least $682 as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of December 31, 2018 , the Company was in compliance with these minimum tangible net worth requirements. |
Payables and Accrued Liabilitie
Payables and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Payables and Accrued Liabilities | 12. Payables and Accrued Liabilities Payables and accrued liabilities consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 Payables to servicing and subservicing investors $ 494 $ 516 Loans subject to repurchase from Ginnie Mae 266 218 MSR purchases payable including advances 182 10 Payable to GSEs and securitized trusts 105 92 Other liabilities 496 403 Total payables and accrued liabilities $ 1,543 $ 1,239 Payables to Servicing and Subservicing Investors and Payables to GSEs and Securitized Trusts Payables to servicing and subservicing investors, GSEs and securitized trusts represent amounts due to investors, GSEs and securitized trusts in connection with loans serviced that are paid from collections of the underlying loans, insurance proceeds or proceeds from property disposal. Loans Subject to Repurchase from Ginnie Mae See Note 9, Other Assets , for a description of assets and liabilities related to loans subject to repurchase from Ginnie Mae. MSR purchases payable including advances MSR purchases payable including advances represents the amounts owed to the seller in connection with the purchase of MSRs. Other Liabilities Other liabilities primarily include accrued bonus and payroll, accrued interest, accrued legal expenses, payable to insurance carriers and insurance cancellation reserves, derivative financial instruments, repurchase reserves, accounts payable and other accrued liabilities. Payables to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third-party investors on liquidated loans. See Note 10, Derivative Financial Instruments , for further details on derivative financial instruments. The activity of the repurchase reserves is set forth below. Successor Predecessor Repurchase Reserves For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ 9 $ 9 $ 18 Provisions 3 3 7 Releases (4 ) (3 ) (14 ) Charge-offs — — (2 ) Balance - end of period $ 8 $ 9 $ 9 The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser’s losses related to forward loans. Certain sale contracts and GSE standards require the Predecessor and subsequently the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties, such as the manner of origination, the nature and extent of underwriting standards. In the event of a breach of the representations and warranties, the Predecessor and subsequently the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that the Predecessor and subsequently the Company refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. The Predecessor and the Company record a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against net gain on mortgage loans held for sale. A release of repurchase reserves is recorded when the Predecessor and Company’s assessment reveals that previously recorded reserves are no longer needed. A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, a GSE will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for Home Affordable Refinance Program (“HARP”) loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months. The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. Current loss rates have significantly declined attributable to stronger underwriting standards and due to the falloff of loans underwritten prior to mortgage loan crisis period prior to 2008. The Company believes its reserve balance as of December 31, 2018 is sufficient to cover loss exposure associated with repurchase contingencies. |
Securitizations and Financings
Securitizations and Financings | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities and Securitizations [Abstract] | |
Securitizations and Financings | 13. Securitizations and Financings Variable Interest Entities (VIE) In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with SPEs determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. The Company has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT) and (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as the Company is the primary beneficiary of each of these entities. Also, the Company consolidated four reverse mortgage SPEs as it is the primary beneficiary of each of these entities. These SPEs include the Nationstar HECM Loan Trusts. A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s consolidated financial statements is presented below. Successor Predecessor December 31, 2018 December 31, 2017 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 70 $ 63 $ 106 $ 26 Reverse mortgage interests, net — 6,770 — 7,981 Advances and other receivables, net 628 — 896 — Mortgage loans held for investment 118 — 138 — Other assets — — 2 — Total assets $ 816 $ 6,833 $ 1,142 $ 8,007 Liabilities Advance facilities (1) $ 505 $ — $ 749 $ — Payables and accrued liabilities 1 1 2 1 Participating interest financing (2) — 5,607 — 7,111 HECM Securitizations (HMBS) Trust 2016-2 — — — 94 Trust 2016-3 — — — 138 Trust 2017-1 — — — 213 Trust 2017-2 — 231 — 365 Trust 2018-1 — 284 — — Trust 2018-2 — 250 — — Trust 2018-3 — 326 — — Nonrecourse debt–legacy assets 29 — 42 — Total liabilities $ 535 $ 6,699 $ 793 $ 7,922 (1) Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in Note 11, Indebtedness for additional information. (2) Participating interest financing excludes premiums. The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company. Successor Predecessor December 31, 2018 December 31, 2017 Total collateral balances $ 1,873 $ 2,291 Total certificate balances $ 1,817 $ 2,129 The Company and Predecessor have not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2018 , and 2017 , and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred by the Company and the Predecessor to unconsolidated securitization trusts that are 60 days or more past due are presented below. Successor Predecessor Principal Amount of Loans 60 Days or More Past Due December 31, 2018 December 31, 2017 Unconsolidated securitization trusts $ 285 $ 448 |
Share-Based Compensation and Eq
Share-Based Compensation and Equity | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation and Equity | 14. Share-Based Compensation and Equity Share-Based Compensation Upon the consummation of the Merger, the Company assumed and adopted the Nationstar Mortgage Holdings Inc. Second Amended and Restated 2012 Incentive Compensation Plan (“2012 Plan”), as may be amended, that offers equity-based awards to certain key employees of the Company, consultants, and non-employee directors. The equity based awards include restricted stock awards and restricted stock units granted to employees. These awards are valued at the fair market value of the Company’s common stock on the grant date as defined in the 2012 Plan. The stock awards generally vest in installments of 33.3% , 33.3% and 33.4% respectively on each of the first three anniversaries of the awards, provided that (i) the participant remains continuously employed with the Company during that time or (ii) the participant’s employment has terminated by reason of retirement. In addition, upon death, disability or generally a change in control of the Company, the unvested shares of an award will vest. The value of the stock awards is measured based on the market value of common stock of the Company or its Predecessor on the grant date. The following table summarizes equity based awards under the 2012 Plan for the periods indicated. Shares (or Units) (in thousands) Weighted-Average Grant Date Fair Value, per Share (or Unit) Predecessor Equity awards outstanding as of December 31, 2017 2,105 $ 17.33 Granted 1,278 14.77 Forfeited (1,196 ) 16.52 Vested (1,061 ) 16.20 Equity awards outstanding as of July 31, 2018 1,126 16.27 Successor Equity awards outstanding as of August 1, 2018 1,154 $ 16.27 Granted 2,382 14.95 Forfeited (43 ) 16.16 Vested (20 ) 16.16 Equity awards outstanding as of December 31, 2018 3,473 15.53 The Company recorded $2 of expenses related to share-based awards during the five months ended December 31, 2018 . The Predecessor recorded $17 of expenses related to share-based awards during the seven months ended July 31, 2018 , including $7 expenses recognized due to a one-time accelerated vesting of equity awards in connection with the Merger. In addition, the Predecessor recorded $17 and $21 of expenses related to share-based awards during the year ended December 31, 2017 and 2016 , respectively. As of December 31, 2018 , unrecognized compensation expense totaled $48 related to non-vested stock award payments that are expected to be recognized over a weighted average period of 2.35 years. The Company is eligible to receive a tax benefit when the vesting date fair value of an award exceeds the value used to recognize compensation expense at the date of grant. The excess tax benefits recognized by the Company and the Predecessor are not material. As of December 31, 2018 , approximately 85,000 Xome stock appreciation rights (“SARs”) were outstanding and can be settled in cash or units of Xome Holdings LLC (at the election of Xome). The SARs generally vest over three years and have a ten -year term. The SARs become exercisable and are recognized to expense upon a liquidity event at Xome which includes a change in control or an initial public offering of Xome. No expense was recorded for outstanding SARs in 2018 , 2017 and 2016 as a liquidity event has not occurred. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 15. Earnings per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. On October 10, 2018, the Company completed its previously-announced 1-for-12 reverse stock split. The Successor period presented has been retrospectively revised to reflect this change. The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts). Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Net income attributable to Successor/Predecessor $ 884 $ 154 $ 30 $ 19 Less: Undistributed earnings attributable to participating stockholders 8 — — — Net income attributable to common stockholders $ 876 $ 154 $ 30 $ 19 Net income per common share attributable to Successor/Predecessor: Basic $ 9.65 $ 1.57 $ 0.31 $ 0.19 Diluted $ 9.54 $ 1.55 $ 0.30 $ 0.19 Weighted average shares of common stock outstanding (in thousands): Basic 90,813 98,046 97,696 99,765 Dilutive effect of stock awards 178 1,091 1,107 880 Dilutive effect of participating securities 839 — — — Diluted 91,830 99,137 98,803 100,645 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 17. Fair Value Measurements Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). The following describes the methods and assumptions used by the Company in estimating fair values: Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value. Mortgage Loans Held for Sale (Level 2) – The Company originates mortgage loans in the U.S. that it intends to sell into Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the “Agencies”) MBS. Additionally, the Company holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. The Company measures newly originated prime residential mortgage loans held for sale at fair value. Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. The Company classifies these valuations as Level 2 in the fair value disclosures. The Company may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The Company has elected to carry these loans at fair value. See Note 7, Mortgage Loans Held for Sale and Investment for more information. Mortgage Loans Held for Investment (Level 3) – Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value and which the Company intends to hold these loans until their maturities. The Company determines the fair value of loans held for investment, on a recurring basis, based on various underlying attributes such as market participants’ views, loan delinquency, recent observable loan pricing and sales for similar loans, individual loan characteristics and internal market evaluation. These internal market evaluations require the use of judgment by the Company and can have a significant impact on the determination of the loan’s fair value. As these fair values are derived from internally developed valuation models, using observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 7, Mortgage Loans Held for Sale and Investment for more information. Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its forward MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary revenues and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by the Company and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Mortgage Servicing Rights and Related Liabilities for more information. Advances and Other Receivables, Net (Level 3) - Advances and other receivables, net are valued at their net realizable value after taking into consideration the reserves. Advances have no stated maturity. Their net realizable value approximates fair value as the net present value based on discounted cash flow is not materially different from the net realizable value. Reverse Mortgage Interests, Net (Level 3) – The Company’s reverse mortgage interests are primarily comprised of HECM loans that are insured by FHA and guaranteed by Ginnie Mae upon securitization. Quarterly, the Company estimates fair value using discounted cash flows, obtained from a third-party, with the discount rate approximate that of similar financial instruments. Key assumptions within the model are based on market participant benchmarks and include discount rates, cost to service, weighted average life of the portfolio, and estimated servicing fee income. Discounted cash flows are applied based on collateral stratifications and include loan rate type, loan status (active vs. inactive), and securitization. Prices are also influenced from both internal models and other observable inputs. The Predecessor determined fair value for active reverse mortgage loans based on pricing of the recent securitizations with similar attributes and characteristics, such as collateral values and prepayment speeds and adjusted as necessary for differences. The related timing of these transactions allowed the pricing to consider the current interest rate risk exposures. The fair value of inactive reverse mortgage loans was established based upon a discounted par value of the loan derived from the Predecessor’s historical loss factors experience on foreclosed loans. Derivative Financial Instruments (Level 2) – The Company enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the consolidated balance sheets. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, the Company enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of underlying mortgage loans which are based on observable market data. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. The Company has entered into Eurodollar futures contracts as part of its hedging strategy. The futures contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. See Note 10, Derivative Financial Instruments for more information. Advance Facilities and Warehouse Facilities (Level 2) – As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheets approximates fair value. See Note 11, Indebtedness for more information. Unsecured Senior Notes (Level 1) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value. See Note 11, Indebtedness for more information. Nonrecourse Debt – Legacy Assets (Level 3) – The Company estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. See Note 11, Indebtedness for more information. Excess Spread Financing (Level 3) – The Company estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Mortgage Servicing Rights and Related Liabilities for more information. Mortgage Servicing Rights Financing Liability (Level 3) - The Company estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being advance financing rates and annual advance recovery rates. As these assumptions are derived from internally developed valuation models based on the value of the underlying MSRs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Mortgage Servicing Rights and Related Liabilities for more information. Participating Interest Financing (Level 3) – The Company estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. The Predecessor estimated the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. The Predecessor classified these valuations as Level 2 in the fair value disclosures. See Note 4, Mortgage Servicing Rights and Related Liabilities , and Note 11, Indebtedness for more information. HECM Securitizations (Level 3) – The Company estimates fair value using a market approach by utilizing the fair value of executed HECM securitizations. Since the executed HECM securitizations are private placements, the Company classifies these valuations as Level 3 in the fair value disclosures. The Predecessor estimated fair value of the nonrecourse debt related to HECM securitization based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, the Predecessor classified this as Level 3 in the fair value disclosures. See Note 11, Indebtedness for more information. The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis. Successor December 31, 2018 Total Fair Value Recurring Fair Value Measurements Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,630.8 $ — $ 1,630.8 $ — Mortgage loans held for investment (1) 119.1 — — 119.1 Forward mortgage servicing rights (1) 3,665.4 — — 3,665.4 Derivative financial instruments: IRLCs 47.6 — 47.6 — Forward MBS trades 0.1 — 0.1 — LPCs 1.7 — 1.7 — Eurodollar futures (2) — — — — Total assets $ 5,464.7 $ — $ 1,680.2 $ 3,784.5 Liabilities Derivative financial instruments Forward MBS trades $ 19.3 $ — $ 19.3 $ — LPCs 0.4 — 0.4 — Eurodollar futures (2) — — — — Mortgage servicing rights financing 31.7 — — 31.7 Excess spread financing 1,184.4 — — 1,184.4 Total liabilities $ 1,235.8 $ — $ 19.7 $ 1,216.1 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. Predecessor December 31, 2017 Total Fair Value Recurring Fair Value Measurements Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,890.8 $ — $ 1,890.8 $ — Forward mortgage servicing rights (1) 2,937.4 — — 2,937.4 Derivative financial instruments: IRLCs 59.3 — 59.3 — Forward MBS trades 2.4 — 2.4 — LPCs 0.9 — 0.9 — Eurodollar futures (2) — — — — Treasury futures 1.9 — 1.9 — Total assets $ 4,892.7 $ — $ 1,955.3 $ 2,937.4 Liabilities Derivative financial instruments Forward MBS trades $ 2.8 $ — $ 2.8 $ — LPCs 0.6 — 0.6 — Eurodollar futures (2) — — — — Treasury futures 1.4 — 1.4 — Mortgage servicing rights financing 9.5 — — 9.5 Excess spread financing 996.5 — — 996.5 Total liabilities $ 1,010.8 $ — $ 4.8 $ 1,006.0 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. The table below presents a reconciliation for all of the Company and Predecessor’s Level 3 assets and liabilities measured at fair value on a recurring basis. Successor Assets Liabilities For the Period August 1 - December 31, 2018 Forward mortgage servicing rights Mortgage loans held for investment Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 3,413 $ 125 $ 1,039 $ 26 Total gains or losses included in earnings (236 ) (3 ) 5 6 Payments received from borrowers — (5 ) — — Purchases, issuances, sales and settlements Purchases 479 — — — Issuances 120 — 255 — Sales (111 ) — — — Repayments — — (38 ) — Settlements — — (77 ) — Changes in fair value — 2 — — Balance - end of period $ 3,665 $ 119 $ 1,184 $ 32 Predecessor Assets Liabilities For the Period January 1 - July 31, 2018 Forward mortgage servicing rights Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 2,937 $ 996 $ 10 Total gains or losses included in earnings 166 81 16 Purchases, issuances, sales, repayments and settlements Purchases 144 — — Issuances 162 70 — Sales 4 — — Repayments — (3 ) Settlements — (105 ) — Balance - end of period $ 3,413 $ 1,039 $ 26 Predecessor Assets Liabilities Year ended December 31, 2017 Forward mortgage servicing rights Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 3,160 $ 1,214 $ 27 Total gains or losses included in earnings (432 ) 12 (17 ) Purchases, issuances, sales and settlements Purchases 66 — — Issuances 203 — — Sales (60 ) — — Repayments — (23 ) — Settlements — (207 ) — Balance - end of period $ 2,937 $ 996 $ 10 No transfers were made into or out of Level 3 fair value assets and liabilities for the five months ended December 31, 2018 , seven months ended July 31, 2018 and year ended December 31, 2017 . The tables below present a summary of the estimated carrying amount and fair value of the Company and Predecessor’s financial instruments. Successor December 31, 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 242 $ 242 $ — $ — Restricted cash 319 319 — — Advances and other receivables, net 1,194 — — 1,194 Reverse mortgage interests, net 7,934 — — 7,942 Mortgage loans held for sale 1,631 — 1,631 — Mortgage loans held for investment 119 — — 119 Derivative financial instruments 49 — 49 — Financial liabilities Unsecured senior notes 2,459 2,451 — — Advance facilities 595 — 595 — Warehouse facilities 2,349 — 2,349 — Mortgage servicing rights financing liability 32 — — 32 Excess spread financing 1,184 — — 1,184 Derivative financial instruments 20 — 20 — Participating interest financing 5,675 — — 5,672 HECM Securitization (HMBS) Trust 2017-2 231 — — 230 Trust 2018-1 284 — — 284 Trust 2018-2 250 — — 249 Trust 2018-3 326 — — 326 Nonrecourse debt - legacy assets 29 — — 28 Predecessor December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 215 $ 215 $ — $ — Restricted cash 360 360 — — Advances and other receivables, net 1,706 — — 1,706 Reverse mortgage interests, net 9,984 — — 10,164 Mortgage loans held for sale 1,891 — 1,891 — Mortgage loans held for investment, net 139 — — 139 Derivative financial instruments 65 — 65 — Financial liabilities Unsecured senior notes 1,874 1,912 — — Advance facilities 855 — 855 — Warehouse facilities 3,285 — 3,286 — Mortgage servicing rights financing liability 10 — — 10 Excess spread financing 996 — — 996 Derivative financial instruments 5 — 5 — Participating interest financing 7,167 — 7,353 — HECM Securitization (HMBS) Trust 2016-2 94 — — 112 Trust 2016-3 138 — — 155 Trust 2017-1 213 — — 225 Trust 2017-2 365 — — 371 Nonrecourse debt - legacy assets 37 — — 36 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. Income Taxes The components of income tax expense (benefit) on continuing operations were as follows: Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Current Income Taxes Federal $ — $ (14 ) $ 52 $ 14 State — (1 ) 7 4 Total current income taxes — (15 ) 59 18 Deferred Income Taxes Federal (1,015 ) 54 (43 ) (4 ) State (6 ) 9 (3 ) (1 ) Total deferred income taxes (1,021 ) 63 (46 ) (5 ) Total provision for income taxes $ (1,021 ) $ 48 $ 13 $ 13 Income tax expense differs from the amounts computed by applying the U.S. federal corporate tax rate of 21.0% as follows for the years indicated. Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Tax (Benefit) Expense at Federal Statutory Rate $ (29 ) 21.0 % $ 42 21.0 % $ 15 35.0 % $ 10 35.0 % Effect of: State taxes, net of federal benefit (6 ) 4.2 % 8 3.8 % 1 1.9 % 1 5.0 % Non-controlling interests — — % — — % — (0.3 )% 1 3.4 % Decrease of federal valuation allowance (990 ) 720.0 % — — % (1 ) (1.2 )% — — % Deferred adjustments 3 (1.8 )% (1 ) (0.5 )% — — % 1 2.3 % Federal tax reform impact — — % — — % (5 ) (12.6 )% — — % Current payable adjustments — — % (1 ) (0.5 )% — — % 1 1.9 % Adjustments related to uncertain tax positions — — % — — % 1 2.4 % — — % Other, net 1 (1.0 )% — — % 2 3.7 % (1 ) (2.4 )% Total income tax (benefit) expense $ (1,021 ) 742.4 % $ 48 23.8 % $ 13 28.9 % $ 13 45.2 % In 2018, the effective tax rate differed from the statutory tax rate primarily due to the reversal of the valuation allowance associated with the net operating loss (“NOL”) carryforwards of WMIH, permanent differences including executive compensation disallowed under Internal Revenue Code Section 162(m), penalties and nondeductible meals and entertainment expenses. In 2017, the effective tax rate differed from the statutory tax rate primarily as a result of changes made by the Tax Reform Act, including deferred adjustments related to the remeasurement of deferred tax assets and liabilities as a result of the reduction of the U.S. corporate tax rate to 21%. Deferred income tax amounts at December 31, 2018 and 2017, reflect the effect of basis differences in assets and liabilities for financial reporting and income tax purposes and tax attribute carryforwards. Prior to the Merger, WMIH had a full valuation allowance of $1.3 billion established against the deferred tax asset related to its federal net operating loss carryforwards (“NOLs”) due to cumulative losses in previous years. On the contrary, the Predecessor determined that it would be able to fully realize its federal and state net operating losses, with the exception of a portion of its NOLs that would more-likely-than-not expire unused due to limitations of Internal Revenue Code Section 382. As a result of the Merger, the Successor re-evaluated its valuation allowance. In the assessment of whether a valuation allowance was required against WMIH’s NOLs subsequent to the Merger, the Successor considered the four sources of taxable income, as follows, under ASC 740-10-30-18: 1. Taxable income in prior carryback year(s) if carryback is permitted under the tax law; 2. Future reversals of existing taxable temporary differences; 3. Tax-planning strategies; and 4. Future taxable income exclusive of reversing temporary differences and carryforwards. The Successor noted that the NOL carryback period of taxable income is no longer available to offset taxable income in prior years as modified as part of the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”). Also, the Successor did not identify any tax planning strategies available that would support realization of the WMIH NOL deferred tax asset under ASC 740. Thus, in determining the appropriate deferred tax asset valuation allowance subsequent to the Merger, the Successor relied upon reversals of existing deferred tax liabilities and future taxable income excluding reversing differences, with the latter item accounting for most of the change. In estimating future taxable income from the fourth source listed above, the Successor considered all available evidence and applied judgment in determining the effect of positive and negative evidence based on its ability to objectively verify it. In that regard, the Successor further noted that under ASC 740-10-30-21, “Forming a conclusion that a valuation allowance is not needed is difficult when there is negative evidence such as cumulative losses in recent years. Other examples of negative evidence include, but are not limited to, the following: 1. A history of operating loss or tax credit carryforwards expiring unused 2. Losses expected in early future years (by a presently profitable entity) 3. Unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years 4. A carryback, carryforward period that is so brief it would limit realization of tax benefits if a significant deductible temporary difference is expected to reverse in a single year or the entity operates in a traditionally cyclical business.” The Successor noted none of the negative items listed above from the perspective of the post-merger operations. Accordingly, it was deemed appropriate and reasonable to conclude under ASC 740 that a significant portion of the WMIH NOL deferred tax asset, previously subject to a full valuation allowance, would be realizable at a more-likely-than-not (“MLTN”) level subsequent to the Merger. While WMIH experienced a history of cumulative losses in previous years, the Predecessor, which accounts for almost all of the post-merger operations, has demonstrated a history of strong sustainable pre-tax income and taxable income in previous years. In determining the amount of the valuation allowance to release, the Successor considered (1) internal forecasts of the Successor’s future pre-tax income exclusive of reversing temporary differences and carryforwards, (2) the nature and timing of future reversals of existing deferred tax assets and liabilities, (3) future originating temporary and permanent differences, and (4) NOL carryforward expiration dates. For purposes of the analysis, the Successor concluded that it should start with an average of the Predecessor’s historical pre-tax income to project future taxable income adjusted for non-recurring expenses. The Successor also removed any existing intangible amortization expense and interest expense from the 3-year historical average and incorporated post-Merger costs expected to be incurred, including additional interest expense from new debt assumed and additional amortization expense resulting from the intangibles recorded as part of purchase price accounting. For purposes of analyzing the realization of the deferred tax assets in accordance with ASC 740, the Company assumed a steady state of operations that would generate cash flows and liquidity sufficient to maintain current operations and pay down corporate debt resulting in a reduction in interest expense in future periods. The Successor considered other factors in its determination of future taxable income that was demonstrated by historical performance. As a result of the above considerations and analysis, the Successor released $990 of the valuation allowance related to WMIH’s net operating loss carryforwards and other deferred tax assets. The Successor does not expect any tax loss limitations under Sections §382 and §384 that would impact its utilization of WMIH’s pre-Merger federal NOL carryforwards in the future. Impact of Tax Reform On December 22, 2017, the Tax Reform Act was enacted, and it significantly revised the U.S. corporate income tax regime by lowering the U.S. corporate tax rate from 35% to 21%, imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries, creating new taxes on certain foreign sourced earnings, as well as other changes. The Securities and Exchange Commission issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP related to the enactment of the Tax Reform Act. SAB 118 provides guidance in those situations where the accounting for certain income tax effects of the Tax Reform Act will be incomplete by the time financial statements are issued for the reporting period that includes the enactment date. In 2017 and the first nine months of 2018, the Predecessor had not completed the accounting for the tax effects of enactment of the Tax Reform Act. As of December 31, 2017, the Company recorded provisional amounts for the remeasurement of deferred taxes, the transition tax, and valuation allowance, among others, under the guidance within SAB 118. At December 31, 2018, the Company has completed the accounting for all income tax effects of the enactment of the Tax Reform Act. The Company recorded adjustments of $3 , including the rate differential from the remeasurement of deferred taxes resulting from return to provision true up adjustments. Such adjustments were recorded in purchase accounting and had no impact on the tax provision. In addition, the Company has elected to account for the Global Intangible Low-Taxed Income (“GILTI”) tax expense in the period in which it is incurred. As a result, no deferred tax impacts of GILTI has been provided in the consolidated financial statements. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: Successor Predecessor December 31, 2018 December 31, 2017 Deferred Tax Assets Effect of: Loss carryforwards (federal, state and capital) $ 1,334 $ 37 Excess interest expense 10 — Reverse mortgage interests 68 — Loss reserves 69 81 Reverse mortgage premiums 1 15 Rent expense 1 4 Restricted share based compensation 1 6 Accruals 14 10 Partnership interests 7 5 Reverse mortgage purchase discount 1 24 Goodwill and intangible assets 4 — Other, net 5 3 Total deferred tax assets 1,515 185 Deferred Tax Liabilities MSR amortization and mark-to-market, net (243 ) (174 ) Depreciation and amortization, net (12 ) (20 ) Prepaid assets (1 ) (2 ) Goodwill and intangible assets — (1 ) Total deferred tax liabilities (256 ) (197 ) Valuation allowance (295 ) (4 ) Net deferred tax assets (liabilities) $ 964 $ (16 ) The Company files income tax returns in the U.S. federal jurisdiction and numerous U.S. state jurisdictions. With few exceptions, as of December 31, 2018 , the Company is no longer subject to U.S. federal and state income tax examinations for tax years prior to 2014 . As of December 31, 2018 , the Company has no unrecognized tax benefits recorded related to uncertain tax positions. The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties. Successor Predecessor Unrecognized Tax Benefits For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Balance - beginning of period $ — $ 17 $ — $ — Increases in tax positions of current year — — 1 — Increases in tax positions of prior years — — 20 — Decreases in tax positions of prior years — (17 ) — — Settlements — — (4 ) — Balance - end of period $ — $ — $ 17 $ — As of December 31, 2017, the Company recorded $19 of unrecognized tax benefits related to uncertain tax positions, including $2 in interest and penalties. In the period ended March 31, 2018 the Company took certain actions to remediate the uncertain tax position that existed as of the prior period. As a result, the Company recognized all of the unrecognized tax benefits and recorded an income tax benefit of approximately $6 , exclusive of any benefits related to interest and penalties in the period ended March 31, 2018. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 18. Employee Benefit Plans The Company sponsors a defined contribution plan (401(k) plan) that covers all full-time employees. The Company matches 100% of participant contributions up to 2% of their total eligible annual base compensation and matches 50% of contributions for the next 4% of each participant’s total eligible annual base compensation. Matching contributions by the Company totaled approximately $7 for the five months ended December 31, 2018 . Matching contributions by the Predecessor totaled approximately $10 , $15 and $16 for the seven months ended July 31, 2018 and the years ended December 31, 2017 and 2016 , respectively. |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Banking [Abstract] | |
Capital Requirements | 19. Capital Requirements Certain of the Company’s secondary market investors require minimum net worth (“capital”) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, the Company’s secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of the Company’s selling and servicing agreements, which would prohibit the Company from further originating or securitizing these specific types of mortgage loans or being an approved servicer. Among the Company’s various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires the Company to maintain a minimum adjusted net worth balance of $809 . As of December 31, 2018 , the Company was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Litigation and Regulatory Matters The Company and its subsidiaries are routinely and currently involved in a significant number of legal proceedings including, but not limited to, judicial, arbitration, regulatory and governmental proceeds related to matters that arise in connection with the conduct of our business. The legal proceedings are at varying stages of adjudication, arbitration or investigation and are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, National Housing Act, Homeowners Protection Act, Service Member’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Home Mortgage Disclosure Act, Title 11 of the United States Code (aka the "Bankruptcy Code"), False Claims Act and Making Home Affordable loan modification programs. In addition, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, regarding alleged breaches of representations and warranties relating to the sale of mortgage loans, the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the pending or threatened legal proceedings include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages. The Company’s business is also subject to extensive examinations, investigations and reviews by various federal, state and local governmental, regulatory and enforcement agencies. The Company has historically had a number of open investigations with these agencies and that trend continues. The Company is currently the subject of various governmental or regulatory investigations, subpoenas, examinations and inquiries related to its residential loan servicing and origination practices, bankruptcy and collections practices, its financial reporting and other aspects of its businesses. These matters include investigations by the Bureau of Consumer Financial Protection (the "CFPB"), the Securities and Exchange Commission, the Executive Office of the United States Trustees, the Department of Justice, the Office of the Special Inspector General for the Troubled Asset Relief Program, the U.S. Department of Housing and Urban Development, the multistate coalition of mortgage banking regulators and various State Attorneys General. These specific matters and other pending or potential future investigations, subpoenas, examinations or inquiries may lead to administrative, civil or criminal proceedings or settlements, and possibly result in remedies including fines, penalties, restitution, or alterations in the Company's business practices, and in additional expenses and collateral costs. Responding to these matters requires the Company to devote substantial resources, resulting in higher costs and lower net cash flows. For example, the Company continues to progress towards resolution of certain legacy regulatory matters involving examination findings for alleged violations of certain laws related to the Company's business practices. The Company has been in discussions with the multi-state committee of mortgage banking regulators and various State Attorneys General concerning a potential resolution of their investigation. The Company is continuing to cooperate with all parties. In connection with these discussions, the Company previously recorded an accrual. These discussions may not result in a settlement of the matter; furthermore, any such settlement may exceed the amount accrued as of December 31, 2018 . Moreover, if the discussions do not result in a settlement, the regulators and State Attorneys General may seek to exercise their enforcement authority through litigation or other proceedings and seek injunctive relief, damages, restitution and civil monetary penalties, which could have a material adverse effect on our business, reputation, financial condition and results of operations. Further, on April 24, 2018, the CFPB notified Nationstar that, in accordance with the CFPB’s discretionary Notice and Opportunity to Respond and Advise ("NORA") process, the CFPB’s Office of Enforcement is considering whether to recommend that the CFPB take enforcement action against the Company, alleging violations of the Real Estate Settlement Procedures Act, the Consumer Financial Protection Act, and the Homeowners Protection Act, which stems from a 2014 examination. The purpose of a NORA letter is to provide a party being investigated an opportunity to present its position to the CFPB before an enforcement action may be recommended or commenced. The CFPB may seek to exercise its enforcement authority through settlement, administrative proceedings or litigation and seek injunctive relief, damages, restitution and civil monetary penalties, which could have a material adverse effect on the Company’s business, reputation, financial condition and results of operations. Similarly, while the Company is in discussions with regard to the status and various issues arising in the investigation by the Executive Office of the United States Trustees, it cannot predict the outcome of this investigation or whether they will exercise their enforcement authority through a settlement or other proceeding in which they seek to impose additional remedial measures or other financial sanctions, which could have a material adverse effect on the Company’s business, reputation, financial condition and results of operation. The Company believes it is premature to predict the potential outcome or to estimate any potential financial impact in connection with any potential enforcement action or settlement arising from either of the CFPB or United States Trustees matters. The Company has not recorded an accrual related to these matters as of December 31, 2018 as the Company does not believe that the possible loss or range of loss arising from any such action is estimable at this time. The Company is continuing to cooperate with the CFPB and the Executive Office of the United States Trustees. In addition, the Company is a defendant in a class action proceeding originally filed in state court in March 2012, and then removed to the United States District Court for the Eastern District of Washington under the caption Laura Zamora Jordan v. Nationstar Mortgage LLC. The suit was filed on behalf of a class of Washington borrowers and challenges property preservation measures the Company took, as loan servicer, after the borrowers defaulted and the Company's vendors determined that the borrowers had vacated or abandoned their properties. The case raises claims for (i) common law trespass, (ii) statutory trespass, and (iii) violation of Washington’s Consumer Protection Act, and seeks recovery of actual, statutory, and treble damages, as well as attorneys’ fees and litigation costs. On July 25, 2018, the Company entered into a settlement agreement to resolve this matter. The parties are currently seeking approval of the settlement from the court. The Company is pursuing reimbursement of the settlement payment from the owners of the loans it serviced, but there can be no assurance that the Company would prevail with any claims for reimbursement. The Company is a defendant in a proceeding filed on January 2, 2018 in the U.S. District Court for the Northern District of California under the caption Collateral Analytics LLC v. Nationstar Mortgage LLC et.al. The plaintiff alleges that the Company misappropriated plaintiff’s intellectual property for the purpose of replicating plaintiff’s products. The case raises federal and state law claims for misappropriation of trade secrets and breach of contract and seeks an award of actual damages, unjust enrichment, lost profits and/or a reasonable royalty, exemplary damages and injunctive relief preventing further misuse or disclosure of plaintiff’s intellectual property. The Company believes it has meritorious defenses and will vigorously defend itself in this matter. The Company is also a defendant in a proceeding filed on October 23, 2015 in the U.S. District Court for the Central District of California under the caption Alfred Zaklit and Jessy Zaklit, individually and on behalf of all others similarly situated v. Nationstar Mortgage LLC et. Al. The plaintiff alleges that the Company improperly recorded telephone calls without the knowledge or consent of borrowers in violation of the California Penal Code. On July 24, 2017, the court certified a class comprised of California borrowers who, from October 2014 to May 2016, participated in outbound telephone conversations with the Company's employees who recorded the conversations without first informing the borrowers that the conversations were being recorded. The class seeks statutory damages and attorney’s fees. On September 10, 2018, we reached an agreement in principal to settle this matter, and the parties are currently seeking approval of the settlement from the court. The Company seeks to resolve all legal proceedings and other matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. The Company has entered into agreements with a number of entities and regulatory agencies that toll applicable limitations periods with respect to their claims. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory and governmental proceedings utilizing the latest information available. Where available information indicates that it is probable, a liability has been incurred, and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued. As a legal matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company will establish an accrued liability and record a corresponding amount to legal-related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Legal-related expense, which includes legal settlements and the fees paid to external legal service providers, of $22 for the five months ended December 31, 2018 , was included in general and administrative expenses on the consolidated statement of operations. Legal-related expense for the Predecessor of $40 for the seven months ended July 31, 2018 , and $40 and $64 for the years ended December 31, 2017 and 2016 , respectively, was included in general and administrative expenses on the consolidated statements of operations. For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material legal matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $4 to $16 in excess of the accrued liability (if any) related to those matters as of December 31, 2018 . This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure and the Company cannot provide assurance that its litigations reserves will not need to be adjusted in the future. Thus, the Company’s exposure and ultimate losses may be higher, possibly significantly so, than the amounts accrued or this aggregate amount. In the Company's experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; the Company has not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; predicting possible outcomes depends on making assumptions about future decisions of courts or governmental or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for the Company to estimate losses or ranges of losses that it is reasonably possible the Company could incur. Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability within payables and accrued liabilities is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements. Other Loss Contingencies As part of the Company’s ongoing operations, it acquires servicing rights of forward and reverse mortgage loan portfolios that are subject to indemnification based on the representations and warranties of the seller. From time to time, the Company will seek recovery under these representations and warranties for incurred costs. The Company believes all balances sought from sellers recorded in advances and other receivables and reverse mortgage interests represent valid claims. However, the Company acknowledges that the claims process can be prolonged due to the required time to perfect claims at the loan level. Because of the required time to perfect or remediate these claims, management relies on the sufficiency of documentation supporting the claim, current negotiations with the counterparty and other evidence to evaluate whether a reserve is required for non-recoverable balances. In the absence of successful negotiations with the seller, all amounts claimed may not be recovered. Balances may be written-off and charged against earnings when management identifies amounts where recoverability from the seller is not likely. As of December 31, 2018 , the Company believes all recorded balances for which recovery is sought from the seller are valid claims and no evidence suggests additional reserves are warranted at this time. Lease Commitments The Company leases various corporate and other office facilities under non-cancelable lease agreements with primary terms extending through 2024 . These lease agreements generally provide for market-rate renewal options and may provide for escalations in minimum rentals over the lease term. The Company incurred rental expense of $16 during the five months ended December 31, 2018 . Rental expense incurred by the Predecessor during the seven months ended July 31, 2018 and years ended December 31, 2017 and 2016 was $19 , $31 and $26 , respectively. Minimum future payments on noncancelable operating and capital leases are as follows: Year Ending December 31, Operating Leases Capital Leases 2019 $ 32 $ 2 2020 30 — 2021 24 — 2022 16 — 2023 and thereafter 46 — Total minimum lease payments 148 2 Less: Amounts representing interest — — Present value of minimum lease payments $ 148 $ 2 Loan and Other Commitments The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. The Company also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 10, Derivative Financial Instruments for more information. The Company and the Predecessor had certain reverse MSRs and reverse mortgage loans related to approximately $28,415 and $34,635 of UPB in reverse mortgage loans as of December 31, 2018 and 2017 , respectively. As servicer for these reverse mortgage loans, among other things, the Company and the Predecessor are obligated to fund borrowers’ draws to the loan customers as required in accordance with the loan agreement. As of December 31, 2018 and 2017 , the Company and Predecessor’s maximum unfunded advance obligation to fund borrower draws related to these MSRs and loans was approximately $3,128 and $3,713 , respectively. Upon funding any portion of these draws, the Company and the Predecessor expect to securitize and sell the advances in transactions that will be accounted as secured borrowings. |
Business Segment Reporting
Business Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Reporting | 21. Business Segment Reporting Upon consummation of the Merger with Nationstar, the Company has identified four reportable segments: Servicing, Originations, Xome and Corporate and other. The Company’s segments are based upon the Company’s organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to our operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. The following tables present financial information by segment. Successor For the Period August 1 - December 31, 2018 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues Service related, net $ 236 $ 24 $ 177 $ (19 ) $ 418 $ — $ 418 Net gain on mortgage loans held for sale — 157 — 19 176 — 176 Total revenues 236 181 177 — 594 — 594 Total expenses 303 155 178 — 636 71 707 Other income (expenses): Interest income 222 27 — — 249 7 256 Interest expense (173 ) (26 ) (1 ) — (200 ) (93 ) (293 ) Other income 6 5 1 — 12 1 13 Total other income (expenses), net 55 6 — — 61 (85 ) (24 ) Income (loss) before income tax expense (benefit) $ (12 ) $ 32 $ (1 ) $ — $ 19 $ (156 ) $ (137 ) Depreciation and amortization for property and equipment and intangible assets $ 9 $ 5 $ 5 $ — $ 19 $ 20 $ 39 Total assets $ 13,485 $ 4,866 $ 493 $ (3,772 ) $ 15,072 $ 1,901 $ 16,973 Predecessor For the Period January 1 - July 31, 2018 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues Service related, net $ 740 $ 36 $ 149 $ (25 ) $ 900 $ 1 $ 901 Net gain on mortgage loans held for sale — 270 — 25 295 — 295 Total revenues 740 306 149 — 1,195 1 1,196 Total expenses 474 245 123 — 842 103 945 Other income (expenses): Interest income 288 38 — — 326 7 333 Interest expense (268 ) (37 ) — — (305 ) (83 ) (388 ) Other income (expense) (1 ) — 9 — 8 (2 ) 6 Total other income (expenses), net 19 1 9 — 29 (78 ) (49 ) Income (loss) before income tax expense (benefit) $ 285 $ 62 $ 35 $ — $ 382 $ (180 ) $ 202 Depreciation and amortization for property and equipment and intangible assets $ 15 $ 7 $ 7 $ — $ 29 $ 4 $ 33 Total assets $ 14,578 $ 4,701 $ 425 $ (3,591 ) $ 16,113 $ 913 $ 17,026 Predecessor Year Ended December 31, 2017 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 766 $ 63 $ 291 $ (79 ) $ 1,041 $ 2 $ 1,043 Net gain on mortgage loans held for sale — 528 — 79 607 — 607 Total revenues 766 591 291 — 1,648 2 1,650 Total expenses 691 439 247 — 1,377 98 1,475 Other income (expenses): Interest income 527 55 — — 582 15 597 Interest expense (523 ) (54 ) — — (577 ) (154 ) (731 ) Other income (expense) (3 ) — 9 — 6 (3 ) 3 Total other income (expenses), net 1 1 9 — 11 (142 ) (131 ) Income (loss) before income tax expense (benefit) $ 76 $ 153 $ 53 $ — $ 282 $ (238 ) $ 44 Depreciation and amortization for property and equipment and intangible assets $ 23 $ 10 $ 14 $ — $ 47 $ 12 $ 59 Total assets $ 15,006 $ 4,935 $ 393 $ (3,117 ) $ 17,217 $ 819 $ 18,036 Predecessor Year Ended December 31, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 753 $ 63 $ 423 $ (118 ) $ 1,121 $ 1 $ 1,122 Net gain on mortgage loans held for sale — 675 — 118 793 — 793 Total revenues 753 738 423 — 1,914 1 1,915 Total expenses 634 527 354 — 1,515 129 1,644 Other income (expenses): Interest income 347 63 — — 410 15 425 Interest expense (442 ) (58 ) — — (500 ) (165 ) (665 ) Other expense — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (95 ) 4 — — (91 ) (151 ) (242 ) Income (loss) before income tax expense (benefit) $ 24 $ 215 $ 69 $ — $ 308 $ (279 ) $ 29 Depreciation and amortization for property and equipment and intangible assets $ 23 $ 11 $ 21 $ — $ 55 $ 8 $ 63 Total assets $ 16,189 $ 4,563 $ 349 $ (2,448 ) $ 18,653 $ 940 $ 19,593 |
Guarantor Financial Statement I
Guarantor Financial Statement Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Guarantor Financial Statement Information | As of December 31, 2018 , Nationstar Mortgage LLC and Nationstar Capital Corporation (1) (collectively, the “Issuer”), both wholly-owned subsidiaries of the Company, have issued a 6.500% unsecured senior notes due July 2021 with an outstanding aggregate principal amount of $592 and a 6.500% unsecured senior notes due June 2022 with outstanding aggregate principal amount of $206 (collectively, the “unsecured senior notes”). The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. The Company and its three direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of the Company, Nationstar Mortgage LLC and the guarantor subsidiaries for the years indicated. In the condensed consolidating financial statements presented below, the Company allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes. (1) Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes. MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor (Subsidiaries of Issuer) Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 193 $ 1 $ 48 $ — $ 242 Restricted cash — 186 — 133 — 319 Mortgage servicing rights — 3,644 — 32 — 3,676 Advances and other receivables, net — 1,194 — — — 1,194 Reverse mortgage interests, net — 6,770 — 1,164 — 7,934 Mortgage loans held for sale at fair value — 1,631 — — — 1,631 Mortgage loans held for investment, net — 1 — 118 — 119 Property and equipment, net — 84 — 12 — 96 Deferred tax asset, net 973 — — (6 ) — 967 Other assets — 660 202 621 (688 ) 795 Investment in subsidiaries 2,820 601 — — (3,421 ) — Total assets $ 3,793 $ 14,964 $ 203 $ 2,122 $ (4,109 ) $ 16,973 Liabilities and Stockholders’ Equity Unsecured senior notes, net $ 1,660 $ 799 $ — $ — $ — $ 2,459 Advance facilities, net — 90 — 505 — 595 Warehouse facilities, net — 2,349 — — — 2,349 Payables and accrued liabilities 49 1,413 1 80 1,543 MSR related liabilities - nonrecourse at fair value — 1,197 — 19 — 1,216 Mortgage servicing liabilities — 71 — — — 71 Other nonrecourse debt, net — 5,676 — 1,119 — 6,795 Payables to affiliates 139 549 — — (688 ) — Total liabilities 1,848 12,144 1 1,723 (688 ) 15,028 Total stockholders’ equity 1,945 2,820 202 399 (3,421 ) 1,945 Total liabilities and stockholders’ equity $ 3,793 $ 14,964 $ 203 $ 2,122 $ (4,109 ) $ 16,973 (1) Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 233 $ 9 $ 176 $ — $ 418 Net gain on mortgage loans held for sale — 175 — 1 — 176 Total revenues — 408 9 177 — 594 Expenses: Salaries, wages benefits 1 258 2 76 — 337 General and administrative — 262 1 107 — 370 Total expenses 1 520 3 183 — 707 Other income (expenses): Interest income — 237 — 19 — 256 Interest expense (64 ) (211 ) — (18 ) — (293 ) Other income (expenses) 1 11 — 1 — 13 Gain (loss) from subsidiaries (44 ) 2 — — 42 — Total other income (expenses), net (107 ) 39 — 2 42 (24 ) (Loss) income before income tax expense (108 ) (73 ) 6 (4 ) 42 (137 ) Less: Income tax benefit (992 ) (29 ) — — — (1,021 ) Net income (loss) 884 (44 ) 6 (4 ) 42 884 Less: Net income attributable to non-controlling interests — — — — — — Net income (loss) attributable to Mr. Cooper $ 884 $ (44 ) $ 6 $ (4 ) $ 42 $ 884 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 732 $ 16 $ 153 $ — $ 901 Net gain on mortgage loans held for sale — 295 — — — 295 Total revenues — 1,027 16 153 — 1,196 Expenses: Salaries, wages benefits — 359 3 64 — 426 General and administrative 27 427 1 64 — 519 Total expenses 27 786 4 128 — 945 Other income (expenses): Interest income — 299 — 34 — 333 Interest expense — (364 ) — (24 ) — (388 ) Other income (expenses) — (3 ) — 9 — 6 Gain (loss) from subsidiaries 181 56 — — (237 ) — Total other income (expenses), net 181 (12 ) — 19 (237 ) (49 ) Income (loss) before income tax expense 154 229 12 44 (237 ) 202 Less: Income tax expense — 48 — — — 48 Net income (loss) 154 181 12 44 (237 ) 154 Less: Net income attributable to non-controlling interests — — — — — — Net income (loss) attributable to Nationstar $ 154 $ 181 $ 12 $ 44 $ (237 ) $ 154 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Successor $ 884 $ (44 ) $ 6 $ (4 ) $ 42 $ 884 Adjustment to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes (971 ) (49 ) — (1 ) — (1,021 ) (Gain) loss from subsidiaries 44 (2 ) — — (42 ) — Net gain on mortgage loans held for sale — (175 ) — (1 ) — (176 ) Reverse mortgage loan interest income — (206 ) — — — (206 ) Provision for servicing reserves — 38 — — — 38 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 225 — — — 225 Fair value changes in excess spread financing — 6 — (1 ) — 5 Fair value changes in mortgage servicing rights financing liability — 6 — — — 6 Fair value changes in mortgage loans held for investment — — — (2 ) — (2 ) Amortization of premiums, net of discount accretion 3 7 — (1 ) — 9 Depreciation and amortization for property and equipment and intangible assets — 33 — 6 — 39 Share-based compensation — 1 — 1 — 2 Other (gain) loss — 1 — (1 ) — — Repurchases of forward loans assets out of Ginnie Mae securitizations — (527 ) — — — (527 ) Mortgage loans originated and purchased for sale, net of fees — (8,888 ) — — — (8,888 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 9,389 — 16 — 9,405 Changes in assets and liabilities: Advances and other receivables, net — 43 — — — 43 Reverse mortgage interests, net — 1,569 — (25 ) — 1,544 Other assets 1 (18 ) (6 ) (38 ) — (61 ) Payables and accrued liabilities 28 (130 ) — 34 — (68 ) Net cash attributable to operating activities (11 ) 1,279 — (17 ) — 1,251 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 (Continued) Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Acquisition, net of cash acquired — — — (33 ) — (33 ) Property and equipment additions, net of disposals — (18 ) — 3 — (15 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (313 ) — 6 — (307 ) Proceeds on sale of forward and reverse mortgage servicing rights — 105 — — — 105 Net cash attributable to investing activities — (226 ) — (24 ) — (250 ) Financing Activities Increase in warehouse facilities — (351 ) — — — (351 ) Decrease in advance facilities — 40 — 5 — 45 Proceeds from issuance of HECM securitizations — — — 343 — 343 Repayment of HECM securitizations — — — (374 ) — (374 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 112 — — — 112 Repayment of participating interest financing in reverse mortgage interests — (943 ) — — — (943 ) Proceeds from issuance of excess spread financing — 255 — — — 255 Repayment of excess spread financing — (38 ) — — — (38 ) Settlement of excess spread financing — (77 ) — — — (77 ) Repayment of nonrecourse debt - legacy assets — — — (6 ) — (6 ) Redemption and repayment of unsecured senior notes — (1,030 ) — — — (1,030 ) Proceeds from non-controlling interests — 3 — — — 3 Debt financing costs — (3 ) — 1 — (2 ) Net cash attributable to financing activities — (2,032 ) — (31 ) — (2,063 ) Net decrease in cash and cash equivalents (11 ) (979 ) — (72 ) — (1,062 ) Cash and cash equivalents - beginning of period 11 1,358 1 253 — 1,623 Cash and cash equivalents - end of period $ — $ 379 $ 1 $ 181 $ — $ 561 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 154 $ 181 $ 12 $ 44 $ (237 ) $ 154 Adjustment to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — 63 — — — 63 (Gain) loss from subsidiaries (181 ) (56 ) — — 237 — Net gain on mortgage loans held for sale — (295 ) — — — (295 ) Reverse mortgage loan interest income — (274 ) — — — (274 ) (Gain) on sale of assets — — — (9 ) — (9 ) MSL related increased obligation — 59 — — — 59 Provision for servicing reserves — 70 — — — 70 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — (178 ) — 1 — (177 ) Fair value changes in excess spread financing — 81 — — — 81 Fair value changes in mortgage servicing rights financing liability — 16 — — — 16 Amortization of premiums, net of discount accretion — 11 — (3 ) — 8 Depreciation and amortization for property and equipment and intangible assets — 26 — 7 — 33 Share-based compensation — 16 — 1 — 17 Other loss — 3 — — — 3 Repurchases of forward loans assets out of Ginnie Mae securitizations — (544 ) — — — (544 ) Mortgage loans originated and purchased for sale, net of fees — (12,328 ) — — — (12,328 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 13,381 — 11 — 13,392 Changes in assets and liabilities: Advances and other receivables, net — 377 — — — 377 Reverse mortgage interests, net — 1,866 — (265 ) — 1,601 Other assets 9 (294 ) (12 ) 256 — (41 ) Payables and accrued liabilities 27 65 — (4 ) — 88 Net cash attributable to operating activities 9 2,246 — 39 — 2,294 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (35 ) — (5 ) — (40 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (127 ) — (7 ) — (134 ) Net payment related to acquisition of HECM related receivables — (1 ) — — — (1 ) Proceeds on sale of assets — — — 13 — 13 Net cash attributable to investing activities — (163 ) — 1 — (162 ) Financing Activities Decrease in warehouse facilities — (585 ) — — — (585 ) Decrease in advance facilities — (55 ) — (250 ) — (305 ) Proceeds from issuance of HECM securitizations — — — 759 — 759 Repayment of HECM securitizations — — — (448 ) — (448 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 208 — — — 208 Repayment of participating interest financing in reverse mortgage interests — (1,599 ) — — — (1,599 ) Proceeds from issuance of excess spread financing — 70 — — — 70 Repayment of excess spread financing — (3 ) — — — (3 ) Settlement of excess spread financing — (105 ) — — — (105 ) Repayment of nonrecourse debt - legacy assets — — — (7 ) — (7 ) Repurchase of unsecured senior notes — (62 ) — — — (62 ) Repurchase of common stock — — — — — — Surrender of shares relating to stock vesting (9 ) — — — — (9 ) Debt financing costs — (24 ) — — — (24 ) Dividends to non-controlling interests — (1 ) — — — (1 ) Net cash attributable to financing activities (9 ) (2,156 ) — 54 — (2,111 ) Net decrease in cash and cash equivalents — (73 ) — 94 — 21 Cash and cash equivalents - beginning of period — 423 1 151 — 575 Cash and cash equivalents - end of period $ — $ 350 $ 1 $ 245 $ — $ 596 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 195 $ 1 $ 19 $ — $ 215 Restricted cash — 228 — 132 — 360 Mortgage servicing rights — 2,910 — 31 — 2,941 Advances and other receivables, net — 1,706 — — — 1,706 Reverse mortgage interests, net — 9,110 — 874 — 9,984 Mortgage loans held for sale at fair value — 1,891 — — — 1,891 Mortgage loans held for investment, net — 1 — 138 — 139 Property and equipment, net — 102 — 19 — 121 Other assets — 585 182 779 (867 ) 679 Investment in subsidiaries 1,846 522 — — (2,368 ) — Total assets $ 1,846 $ 17,250 $ 183 $ 1,992 $ (3,235 ) $ 18,036 Liabilities and Stockholders’ Equity Unsecured senior notes, net $ — $ 1,874 $ — $ — $ — $ 1,874 Advance facilities, net — 106 — 749 — 855 Warehouse facilities, net — 3,285 — — — 3,285 Payables and accrued liabilities — 1,202 1 36 — 1,239 MSR related liabilities - nonrecourse at fair value — 987 — 19 — 1,006 Mortgage servicing liabilities — 41 — — — 41 Other nonrecourse debt, net — 7,167 — 847 — 8,014 Payables to affiliates 124 742 — 1 (867 ) — Total liabilities 124 15,404 1 1,652 (867 ) 16,314 Total stockholders’ equity 1,722 1,846 182 340 (2,368 ) 1,722 Total liabilities and stockholders’ equity $ 1,846 $ 17,250 $ 183 $ 1,992 $ (3,235 ) $ 18,036 (1) Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 717 $ 28 $ 298 $ — $ 1,043 Net gain on mortgage loans held for sale — 606 — 1 — 607 Total revenues — 1,323 28 299 — 1,650 Expenses: Salaries, wages and benefits — 605 5 132 — 742 General and administrative — 590 11 132 — 733 Total expenses — 1,195 16 264 — 1,475 Other income (expenses): Interest income — 544 — 53 — 597 Interest expense — (675 ) — (56 ) — (731 ) Other expenses — (6 ) — 9 — 3 Gain (loss) from subsidiaries 30 53 — — (83 ) — Total other income (expenses), net 30 (84 ) — 6 (83 ) (131 ) Income (loss) before income tax expense 30 44 12 41 (83 ) 44 Less: Income tax expense — 13 — — — 13 Net income (loss) 30 31 12 41 (83 ) 31 Less: Net loss attributable to non-controlling interests — 1 — — — 1 Net income (loss) attributable to Nationstar $ 30 $ 30 $ 12 $ 41 $ (83 ) $ 30 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 30 $ 30 $ 12 $ 41 $ (83 ) $ 30 Adjustments to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — (46 ) — — — (46 ) Net income attributable to non-controlling interests — 1 — — — 1 (Gain) loss from subsidiaries (30 ) (53 ) — — 83 — Net gain on mortgage loans held for sale — (606 ) — (1 ) — (607 ) Reverse mortgage loan interest income — (490 ) — — — (490 ) (Gain) Loss on sale of assets — 1 — (9 ) — (8 ) Provision for servicing reserves — 148 — — — 148 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 430 — — — 430 Fair value changes in excess spread financing — 15 — (3 ) — 12 Fair value changes in mortgage servicing rights financing liability — (17 ) — — — (17 ) Amortization of premiums, net of discount accretion — 73 — 9 — 82 Depreciation and amortization for property and equipment and intangible assets — 45 — 14 — 59 Share-based compensation — 12 — 5 — 17 Other loss — 6 — — — 6 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,249 ) — — — (1,249 ) Mortgage loans originated and purchased for sale, net of fees — (19,159 ) — — — (19,159 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 20,760 — 16 — 20,776 Excess tax (deficiency) from share based compensation — (1 ) — — — (1 ) Changes in assets and liabilities: Advances and other receivables, net — (30 ) — — — (30 ) Reverse mortgage interests, net — 1,829 — (157 ) — 1,672 Other assets 4 (103 ) (12 ) 36 — (75 ) Payables and accrued liabilities — (179 ) (1 ) (12 ) — (192 ) Net cash attributable to operating activities 4 1,417 (1 ) (61 ) — 1,359 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (37 ) — (5 ) — (42 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (56 ) — (7 ) — (63 ) Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables — 16 — — — 16 Proceeds on sale of forward and reverse mortgage servicing rights — 71 — — — 71 Proceeds on sale of assets — 16 — — — 16 Purchase of investment — (4 ) — — — (4 ) Net cash attributable to investing activities — 6 — (12 ) — (6 ) Financing Activities Increase in warehouse facilities — 863 — — — 863 Decrease in advance facilities — (81 ) — (160 ) — (241 ) Proceeds from issuance of HECM securitizations — — — 707 — 707 Repayment of HECM securitizations — (1 ) — (571 ) — (572 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 575 — — — 575 Repayment of participating interest financing in reverse mortgage interests — (2,597 ) — — — (2,597 ) Repayment of excess spread financing — (23 ) — — — (23 ) Settlement of excess spread financing — (207 ) — — — (207 ) Repayment of nonrecourse debt - legacy assets — — — (15 ) — (15 ) Repurchase of unsecured senior notes — (123 ) — — — (123 ) Surrender of shares relating to stock vesting (4 ) — — — — (4 ) Debt financing costs — (13 ) — — — (13 ) Dividends to non-controlling interests — (5 ) — — — (5 ) Net cash attributable to financing activities (4 ) (1,612 ) — (39 ) — (1,655 ) Net increase (decrease) in cash and cash equivalents — (189 ) (1 ) (112 ) — (302 ) Cash and cash equivalents - beginning of year — 612 2 263 — 877 Cash and cash equivalents - end of year $ — $ 423 $ 1 $ 151 $ — $ 575 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor (Subsidiaries of Issuer) Eliminations Consolidated Revenues: Service related, net $ — $ 658 $ 33 $ 431 $ — $ 1,122 Net gain on mortgage loans held for sale — 764 — 29 — 793 Total revenues — 1,422 33 460 — 1,915 Expenses: Salaries wages and benefits — 601 5 207 — 813 General and administrative — 617 8 206 — 831 Total expenses — 1,218 13 413 — 1,644 Other income (expenses): Interest income — 375 — 50 — 425 Interest expense — (592 ) — (73 ) — (665 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 19 44 — — (63 ) — Total other income (expenses), net 19 (175 ) — (23 ) (63 ) (242 ) Income (loss) before income tax expense 19 29 20 24 (63 ) 29 Less: Income tax expense — 13 — — — 13 Net income (loss) 19 16 20 24 (63 ) 16 Less: Net income (loss) attributable to non-controlling interests — (3 ) — — — (3 ) Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 Predecessor Nationstar Issuer (1) Guarantor Non- Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 Adjustments to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — (5 ) — — — (5 ) Net loss attributable to non-controlling interests — (3 ) — — — (3 ) (Gain) loss from subsidiaries (19 ) (44 ) — — 63 — Net gain on mortgage loans held for sale — (764 ) — (29 ) — (793 ) Reverse mortgage loan interest income — (344 ) — — — (344 ) Loss on sale of assets — 2 — — — 2 Loss on impairment of assets — 25 — — — 25 Provision for servicing reserves — 108 — — — 108 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 484 — — — 484 Fair value changes in excess spread financing — 3 — 22 — 25 Fair value changes in mortgage servicing rights financing liability — (42 ) — — — (42 ) Amortization of premiums, net of discount accretion — (9,907 ) — 9,971 — 64 Depreciation and amortization for property and equipment and intangible assets — 43 — 20 — 63 Share-based compensation — 15 — 6 — 21 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,432 ) — — — (1,432 ) Mortgage loans originated and purchased for sale, net of fees — (19,616 ) — (794 ) — (20,410 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 31,024 — (8,993 ) — 22,031 Excess tax benefit from share based compensation — 4 — — — 4 Changes in assets and liabilities: Advances and other receivables, net — 582 — — — 582 Reverse mortgage interests, net — 607 — (35 ) — 572 Other assets 117 (707 ) (21 ) 586 — (25 ) Payables and accrued liabilities — 46 1 (21 ) — 26 Net cash attributable to operating activities 117 98 — 757 — 972 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non- Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (55 ) 1 (8 ) — (62 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (120 ) — (24 ) — (144 ) Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables — (3,600 ) — — — (3,600 ) Proceeds on sale of forward and reverse mortgage servicing rights — 68 — — — 68 Net cash attributable to investing activities — (3,707 ) 1 (32 ) — (3,738 ) Financing Activities Increase (decrease) in warehouse facilities — 637 — (108 ) — 529 Increase (decrease) in advance facilities — (51 ) — (499 ) — (550 ) Proceeds from issuance of HECM securitizations — — — 728 — 728 Repayment of HECM securitizations — — — (713 ) — (713 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 4,124 — — — 4,124 Repayment of participating interest financing in reverse mortgage interests — (1,185 ) — — — (1,185 ) Proceeds from issuance of excess spread financing — 155 — — — 155 Repayment of excess spread financing — (198 ) — — — (198 ) Repayment of nonrecourse debt - legacy assets — — — (18 ) — (18 ) Repurchase of unsecured senior notes — (40 ) — — — (40 ) Repurchase of common stock (114 ) — — — — (114 ) Excess tax (deficiency) benefit from share based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Debt financing costs — (13 ) — — — (13 ) Net cash attributable to financing activities (117 ) 3,425 — (610 ) — 2,698 Net increase/(decrease) in cash — (184 ) 1 115 — (68 ) Cash and cash equivalents - beginning of year — 796 1 148 — 945 Cash and cash equivalents - end of year $ — $ 612 $ 2 $ 263 $ — $ 877 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
Transactions with Affiliates
Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Transactions with Affiliates | 23. Transactions with Affiliates Nationstar previously entered into arrangements with Fortress Investment Group (“Fortress”), its subsidiaries managed funds, or affiliates for purposes of financing its MSR acquisitions and performing services as a subservicer. Prior to the Merger with Nationstar on July 31, 2018, an affiliate of Fortress held a majority of the outstanding common shares of the Predecessor. Subsequent to the Merger, Fortress is no longer an affiliate of the Company. Refer to Note 3, Acquisitions , for additional information. The following summarizes the Predecessor’s transactions with affiliates of Fortress prior to the Merger on July, 31 2018. New Residential Investment Corp. (“New Residential”) Excess Spread Financing The Predecessor entered into several agreements with certain entities managed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a “New Residential Entity”). The Predecessor sold to the related New Residential Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after a receipt of a fixed base servicing fee per loan. The Predecessor, as the servicer of the loans, retains all ancillary revenues and the remaining portion of the excess cash flow after payment of the fixed base servicing fee and also provides all advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. Should the Company refinance any loan in such portfolios, subject to certain limitations, the Company will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above. The fair value of the outstanding liability related to these agreements was $857 at December 31, 2017 . The fees paid to New Residential entity by the Predecessor totaled $122 , $241 , and $290 during the seven months ended July 31, 2018 and years ended December 31, 2017 and 2016 , respectively, which are recorded as a reduction to servicing fee revenue, net. Mortgage Servicing Rights Financing From December 2013 through June 2014, the Predecessor entered into agreements to sell a contractually specified base fee component of certain MSRs and servicing advances under specified terms to a joint venture capitalized by New Residential and certain unaffiliated third-parties. The Company continues to be the named servicer, and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with the Company. Accordingly, the Company accounts for the MSRs and the related MSRs financing liability on its consolidated balance sheets. The Company will continue to sell future servicing advances to New Residential. The fair value of the outstanding liability related to the sale agreement was $10 at December 31, 2017 . The Predecessor did not enter into any additional supplemental agreements with these affiliates in 2018 and 2017 . Subservicing and Servicing In January 2017 , the Predecessor entered into a subservicing agreement with a subsidiary of New Residential. The boarding of loans related to this subservicing agreement was completed during the fourth quarter of 2017, with the Predecessor boarding a total UPB of $105 billion . The Predecessor earned $43 and $31 of subservicing fees and other subservicing revenues during the seven months ended July 31, 2018 and year ended December 31, 2017 , respectively. In May 2014 , the Predecessor entered into a servicing arrangement with New Residential whereby the Predecessor services residential mortgage loans acquired by New Residential and/or its various affiliates and trust entities. For the seven months ended July 31, 2018 and the years ended December 31, 2017 and 2016 , the Predecessor recognized revenue of $3 , $6 , and $5 related to these servicing arrangements, respectively. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | 24. Quarterly Financial Data (Unaudited) The unaudited quarterly consolidated results of operations are summarized in the tables below. Predecessor Successor Quarter ended March 31, 2018 Quarter ended June 31, 2018 For the Period July 1 - July 31, 2018 For the Period August 1 - September 30, 2018 Quarter ended December 31, 2018 Service related revenue, net $ 464 $ 317 $ 120 $ 259 $ 159 Net gain on mortgage loans held for sale 124 127 44 83 93 Total revenues 588 444 164 342 252 Total expenses 364 339 242 275 432 Total other income (expense), net (18 ) (26 ) (5 ) (26 ) 2 Income (loss) before income tax expense (benefit) 206 79 (83 ) 41 (178 ) Less: Income tax expense (benefit) 46 21 (19 ) (979 ) (42 ) Net income (loss) 160 58 (64 ) 1,020 (136 ) Less: Net income attributable to non-controlling interests — — — — — Net income (loss) attributable to Predecessor/Successor 160 58 (64 ) 1,020 (136 ) Less: Undistributed earnings attributable to participating stockholders (1) — — — 9 — Net income (loss) attributable to common stockholders $ 160 $ 58 $ (64 ) $ 1,011 $ (136 ) Net income (loss) per common share attributable to Predecessor/Successor: Basic $ 1.63 $ 0.59 $ (0.65 ) $ 11.13 $ (1.50 ) Diluted $ 1.61 $ 0.59 $ (0.65 ) $ 10.99 $ (1.50 ) (1) Undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. Predecessor Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 283 $ 213 $ 252 $ 295 Net gain on mortgage loans held for sale 144 167 154 142 Total revenues 427 380 406 437 Total expenses 372 369 368 366 Total other income (expense), net (52 ) (40 ) (26 ) (13 ) Income (loss) before income tax expense (benefit) 3 (29 ) 12 58 Less: Income tax expense (benefit) 1 (10 ) 5 17 Net income (loss) 2 (19 ) 7 41 Less: Net income (loss) attributable to non-controlling interests — 1 — — Net income (loss) attributable to Nationstar $ 2 $ (20 ) $ 7 $ 41 Net income (loss) per common share attributable to Predecessor: Basic $ 0.02 $ (0.20 ) $ 0.07 $ 0.42 Diluted $ 0.02 $ (0.20 ) $ 0.07 $ 0.41 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 25. Subsequent Events On February 1, 2019, Nationstar Mortgage LLC, a wholly-owned subsidiary of the Company, completed an acquisition of all of the limited liability units of Pacific Union Financial, LLC, a California limited liability company. The aggregate purchase price for the limited liability units was approximately $128 , which is subject to adjustment. On January 3, 2019, the Company entered into a definitive agreement to acquire servicing rights underlying $24 billion in GSE mortgages, enter into a subservicing contract for an additional $24 billion in mortgages, and purchase the Seterus mortgage servicing platform and assume certain related assets from IBM. The acquisition of the Seterus mortgage servicing platform and certain related assets from IBM was completed on February 28, 2019 for a total purchase price of approximately $8 . |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation For the purpose of financial statement presentation, Mr. Cooper was determined to be the accounting acquirer in the Merger, and Nationstar’s assets and liabilities were recorded at estimated fair value as of the acquisition date. Mr. Cooper’s interim consolidated financial statements for periods following the Merger closing are labeled “Successor” and reflect the acquired assets and assumed liabilities from Nationstar. Under Securities and Exchange Commission (“SEC”) rules, when a registrant succeeds to substantially all of the business of another entity and the registrant’s own operations before the succession appear insignificant relative to the operations assumed or acquired, the registrant is required to present financial information for the acquired entity (the “Predecessor”) for all comparable periods being presented before the acquisition. Due to the acquisition, the Predecessor and Successor financial statements have been prepared on different basis of accounting and are therefore not comparable. Pursuant to the Merger, Nationstar is considered the predecessor company. Therefore, the Company is providing additional information in the accompanying consolidated financial statements regarding Nationstar’s business for periods prior to July 31, 2018. The predecessor’s company financial information in this report is labeled “Predecessor” in these consolidated financial statements. The consolidated financial statements of the Company and Predecessor have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The significant accounting policies described below, together with the other notes that follow, are an integral part of the consolidated financial statements. |
Basis of Consolidation | Basis of Consolidation The basis of consolidation described below was adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The Successor’s financial statements reflect the adoption of such standards. The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest, and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. Investmen ts in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. Intercompany balances and transactions on consolidated entities have been eliminated. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, increases in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers, and such differences could be material. |
Reclassifications | Reclassifications Certain reclassifications have been made in the Predecessor’s consolidated statement of cash flow to conform to the Successor’s 2018 presentation. Such reclassifications did not affect total revenues or net income. |
Recent Accounting Guidance Adopted and Recent Accounting Guidance Not Yet Adopted | Recent Accounting Guidance Adopted The accounting standards described below were adopted by Nationstar and applied to the Predecessor financial statements for the periods impacted by the adoption. The adoption of such standards is also considered in the Successor’s financial statements. Accounting Standards Update No. 2014-09, 2016-08, 2016-10, 2016-12 and 2016-20, collectively implemented as Financial Accounting Standard Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606 (“ASC 606”), Revenue from Contracts with Customers, provides guidance for revenue recognition. This ASC’s core principle requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The standard also clarifies the principal versus agent considerations, providing that the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The Company’s revenue is generated from loan servicing, loan originations and services provided by Xome. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with the Company’s servicing activities as well as fees earned under subservicing arrangements. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held and gain on sale on loans upon disposition of the loan. Xome’s revenue is comprised of income earned from real estate exchange, real estate services and real estate software as a service. The Company has performed a review of the new guidance as compared to its current accounting policies and evaluated all services rendered to its customers as well as underlying contracts to determine the impact of this standard to its revenue recognition process. The majority of services rendered by the Company in connection with originations and servicing are not within the scope of ASC 606. However, all revenues from Xome fall within the scope of ASC 606. Xome’s operations are comprised of Exchange, Services and Data/Technology, as discussed below. • Exchange is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer. • Services connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers. • Data/Technology includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606. Nationstar adopted ASC 606 on January 1, 2018, and there was no material impact recorded to the 2018 consolidated statements of operations of either the Successor or Predecessor. In connection with the adoption of ASC 606, Nationstar identified and implemented changes to its accounting policies and practices, business processes, and controls to support the new revenue recognition standard. Accounting Standards Update No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), relates to the Statement of Cash Flows (Topic 230) and is intended to provide specific guidance to reduce diversity in practice. ASU 2016-15 addresses the following eight cash flow classification issues: (1) debt prepayment or debt extinguishment costs, (2) settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of life insurance claims, (5) proceeds from the settlement of corporate owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investees, (7) beneficial interests in securitization transactions and (8) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Nationstar adopted ASU 2016-15 in the first quarter of 2018 and determined that the implementation of this standard had no impact on its consolidated statement of cash flows of the Predecessor and Successor. Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230) Restricted Cash (“ASU 2016-18”), requires that a statement of cash flows explain the change during the period in the total cash, cash equivalents, and amounts generally described as restricted cash and restricted cash equivalents. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with early adoption permitted. Nationstar adopted ASU 2016-18 in the first quarter of 2018 and retrospectively applied the guidance to all periods presented. As a result, the consolidated financial statements of the Predecessor and Successor includes restricted cash with cash and cash equivalents when reconciling the beginning and end of period total amounts shown on the consolidated statements of cash flows, and changes in restricted cash are no longer presented as a component of financing activities. Accounting Standards Update No. 2016-01 , Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”), addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. Among other things, ASU 2016-01 requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Furthermore, equity investments without readily determinable fair values are to be assessed for impairment using a quantitative approach. ASU 2016-01 is effective for interim periods beginning after December 15, 2017, and requires a modified retrospective approach to adoption. Nationstar adopted ASU 2016-01 in the first quarter of 2018, and the implementation of this standard did not have a significant impact on the consolidated financial statements of the Predecessor and Successor. Accounting Standards Update No. 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business (“ASU 2017-01”), clarifies the definition of a business to assist companies in the evaluation of whether business combination transactions should be accounted for as an acquisition of a business or as a group of assets. ASU 2017-01 is effective for interim periods beginning after December 15, 2017. The Company adopted this standard during the third quarter of 2018, in connection with the accounting for the acquisitions completed in the third quarter of 2018. The adoption of this standard did not have a material impact on the consolidated financial statements. Accounting Standards Update No. 2017-04, Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC Topic 350, Intangibles - Goodwill and Other . ASU 2017-04 is effective for the Company for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In the fourth quarter of 2018, the Company early adopted ASU 2017-04. The standard did not have an impact to the Company’s qualitative assessment for goodwill impairment that it performed in the fourth quarter of 2018. Recent Accounting Guidance Not Yet Adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), No.2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”), and No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), primarily impact lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. ASU 2016-02 requires the recognition of a lease liability that is equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements with terms 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2018-10 and ASU 2018-11 affect narrow aspects of the guidance issued in the amendments in ASU 2016-02. ASU 2018-11 specifically relieves companies of the requirement to present prior comparative years’ results when they adopt ASU 2016-02 and gives companies the option to recognize the cumulative effect of applying ASU 2016-02 to lease assets and liabilities as an adjustment to the opening balance of retained earnings. ASU 2016-02, ASU 2018-10, and ASU 2018-11 are effective for the Company for its interim periods beginning after December 15, 2018, with early adoption permitted. The Company currently plans to adopt this standard in the first quarter of 2019 using the modified retrospective approach and will recognize a cumulative-effect adjustment to the opening balance of retained earnings in that period. The new standard also provides a number of optional practical expedients in transition. The Company expects to elect the package of practical expedients, which, among other items, permits the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company also expects to elect the short-term lease recognition exemption for all leases that qualify. Under this practical expedient, for those leases that qualify, we will not recognize right-of-use (“ROU”) assets or lease liabilities, which includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also expects to elect the practical expedient to not separate lease and non-lease components for all of our leases. The Company does not expect to elect the use-of-hindsight practical expedient. Based on the current lease portfolio as of December 31, 2018, the Company anticipates recognizing a lease liability and related right-of-use asset ranging from $120 to $135 on the consolidated balance sheets with no material impact on the consolidated statements of operations. Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326) (“ASU 2016-13”), requires expected credit losses for financial instruments held at the reporting date to be measured based on historical experience, current conditions and reasonable and supportable forecasts. The update eliminates the probable initial recognition threshold in current GAAP and instead reflects an entity’s current estimate of all expected credit losses. Previously, when credit losses were measured under GAAP, an entity generally only considered past events and current conditions in measuring the incurred loss. ASU 2016-13 is effective for interim periods beginning after December 15, 2019. The Company is currently evaluating the potential impact of ASU 2016-13 on its consolidated financial statements. Accounting Standards Update No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract " (“ASU 2018-15”) aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-15 on its consolidated financial statements. Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement , (“ASU 2018-13”) removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2018-13 on its consolidated financial statements. |
Restricted Cash | Restricted Cash With respect to the Servicing segment, restricted cash includes recoveries received from borrowers or investors on advances pledged to advance facilities and to advance facilities structured as special purposes entities that require certain level of restricted cash. With respect to the Originations segment, restricted cash includes (i) principal received from borrowers on originated loans pledged to a warehouse facility and (ii) guarantee fees collected on behalf and payable to either Fannie Mae or Freddie Mac on a monthly basis. |
Advances and Other Receivables, Net | Advances and Other Receivables, Net The Company advances funds to or on behalf of the investors when the borrower fails to meet contractual payments (e.g., principal, interest, property taxes, insurance) in accordance with terms of its servicing agreements. Other receivables consist of advances funded to maintain and market underlying loan collateral through foreclosure and ultimate liquidation on behalf of the investors. Advances are recovered from borrowers for performing loans and from the investors and loan proceeds for non-performing loans. The Company may also acquire servicer advances in connection with the acquisition of mortgage servicing rights (“MSR”). These advances are recorded at their relative fair value amounts upon acquisition. The Company records receivables upon determining that collection of amounts due from loan proceeds, investors, mortgage insurers, or prior servicers is probable. Reserves related to recoverability of advances and other receivables are discussed below in Reserves for Forward Servicing Activity. As a result of the Merger, the Advances and Other Receivables assets were recorded at their estimated fair value as of the acquisition date. Recording the estimated fair value resulted in a discount within Advances and Other Receivables. Subsequently, this discount will be adjusted as the advance balances associated with the discount are utilized through recoveries or write-offs. |
Mortgage Loans Held for Sale/Net Gain on Mortgage Loans Held for Sale | Net Gain on Mortgage Loans Held for Sale Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been legally isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. Loan securitizations structured as sales, as well as whole loan sales and the resulting gains on such sales, net of any accrual for recourse obligations, are reported in operating results during the period in which the securitization closes or the sale occurs. Mortgage Loans Held for Sale The Company originates prime residential mortgage loans with the intention of selling such loans on a servicing-retained basis in the secondary market. As these loans are originated with intent to sell, the loans are classified as held for sale and the Company has elected to measure these loans held for sale at fair value. The Company estimates fair value of mortgage loans held for sale by using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. In connection with the Company’s election to measure originated mortgage loans held for sale at fair value, the Company records the loan originations fees when earned, net of direct loan originations costs associated with these loans. Loan origination fees, gains or losses recognized upon sale of loans, and fair value adjustments are recorded in net gain on sale of mortgage loans held for sale in the consolidated statements of operations. The Company may repurchase loans that were previously transferred to Ginnie Mae (“GNMA”) if those loans meet certain criteria, including being delinquent greater than 90 days. It is the Company’s intention to sell such loans; therefore, the Company classifies such loans as loans held for sale and has elected to measure these repurchased loans at fair value. |
Mortgage Loans Held for Investment, Net | Mortgage Loans Held for Investment Mortgage loans held for investment primarily consist of nonconforming or subprime mortgage loans that were transferred in 2009 from mortgage loans held for sale at fair value. In connection with the Merger, the Company elected the fair value option for mortgage loans held for investment effective August 1, 2018. The Company determines the fair value of loans held for investment, on a recurring basis, based on various underlying attributes such as market participants’ views, loan delinquency, recent observable loan pricing and sales for similar loans, individual loan characteristics and internal market evaluation. These internal market evaluations require the use of judgment by the Company and can have a significant impact on the determination of the loan’s fair value. The Predecessor recorded mortgage loans held for investment at amortized cost. |
Reverse Mortgage Interests, Net | Reverse Mortgage Interests, Net Reverse mortgage interests are comprised of the Company’s interest in reverse mortgage loans that consists of participating interests in Home Equity Conversion Mortgages (“HECMs”) mortgage-backed securities (“HMBS”), other interests securitized and unsecuritized interests, as well as related claims receivables and real estate owned (“REO”) related receivables. The Company primarily acquires and services interests in reverse mortgage loans insured by the Federal Housing Administration (“FHA”) known as HECMs. HECMs provide seniors aged 62 and older with a loan secured by their home which can be taken as a lump sum, line of credit, or scheduled payments. HECM loan balances grow over the loan term through borrower draws of scheduled payments or line of credit draws, funded by the Company, as well as through the accrual of interest, servicing fees and FHA mortgage insurance premiums. Growth in the loan balances are capitalized and recorded as reverse mortgage interests within the Company’s consolidated balance sheet. Additionally, loan balances including borrower draws, mortgage insurance premiums and servicing fees are eligible for securitization through Ginnie Mae’s HMBS program. In accordance with FHA guidelines, HECMs are designed to repay through foreclosure and subsequent liquidation of loan collateral after the loan becomes due and payable. Shortfalls experienced by the servicer of the HECM through the foreclosure and liquidation process can be claimed to FHA in accordance with applicable guidelines. Other interests securitized consist of reverse mortgage interests that no longer meet HMBS program eligibility criteria and have been repurchased out of HMBS. These reverse mortgage interests have subsequently been transferred to private securitization trusts and are accounted for as a secured borrowing. Unsecuritized interests include repurchased HECM loans for which the Company is required to repurchase from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount (“MCA”) established at origination in accordance with HMBS program guidelines. As the HECM loan moves through the foreclosure and claims process, the Company classifies reverse mortgage interests as REO related receivables and HECM related receivables, respectively. Interest income is accrued monthly within the consolidated statements of operations based upon the borrower interest rates. The Company includes the cash outflow from funding these amounts as operating activities in the consolidated statements of cash flow as a component of reverse mortgage interests. The Company is an authorized GNMA HMBS program issuer and servicer. In accordance with GNMA HMBS program guidelines, borrower draws of scheduled payments or line of credit draws, servicing fee and interest accruals and mortgage insurance premium accruals are eligible for HMBS participation securitizations as each of these items increases underlying HECM loan balances. The Company pools and securitizes such eligible items into GNMA HMBS as issuer and servicer. In accordance with the HMBS program, issuers are responsible for purchasing HECM loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal or greater than 98% of the maximum claim amount at which point the HECM loans are no longer eligible to remain in the HMBS pool. Upon purchase from the HMBS pool, the Company will assign active HECM loans to FHA or a prior servicer (as applicable and permitted by acquisition agreements) or service inactive HECM loans through foreclosure and liquidation. Based upon the structure of the GNMA HMBS program, the Company has determined that the securitizations of the HECM loans into HMBS pools do not meet all requirements for sale accounting. Accordingly, these transactions are accounted for as secured borrowings. If the Company has repurchased an inactive HECM loan that cannot be assigned to FHA, the Company may pool and securitize these loans into a private HECM securitization. These securitizations are also recorded as secured borrowings in the consolidated balance sheets. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statements of operations. Both the acquisition and assumption of HECM loans and related GNMA HMBS debt are presented as investing and financing activities, respectively, in the consolidated statements of cash flows. Subsequent proceeds received from securitizations, and subsequent repayments on the securitized debt are presented as financing activities in the consolidated statements of cash flows. Reserves related to recoverability of reverse mortgage interests are discussed below in Reserves for Reverse Mortgage Interests. As a result of the Merger, the reverse mortgage interest assets were recorded at their estimated fair value as of the acquisition date. Recording the estimated fair value resulted in a premium on the participating interests in HMBS loans and a discount on the unsecuritized interests and other interests securitized within reverse mortgage interests. Subsequently, the premium and the discount will be amortized and accreted, respectively, to other income, based on the effective yield method whereby the Company will update its prepayment assumptions for actual prepayments on a quarterly basis. In addition, the discount will be adjusted as the reverse mortgage interest balances associated with the discount are utilized through recoveries or write-offs. |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights The Company recognizes the rights to service mortgage loans for others, or MSRs, whether acquired or as a result of the sale of loans the Company originates with servicing retained, as assets. The Company initially records all MSRs at fair value. MSRs related to reverse mortgages are subsequently recorded at amortized cost. The Company has elected to subsequently measure forward MSRs at fair value. For MSRs initially recorded and subsequently measured at fair value, the fair value of the MSRs is based upon the present value of the expected future net cash flows related to servicing the underlying loans. The Company determines the fair value of the MSRs by the use of a discounted cash flow model which incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues, float earnings and other assumptions (including costs to service) that management believes are consistent with the assumptions that other similar market participants use in valuing the MSRs. The credit quality and stated interest rates of the forward loans underlying the MSRs affects the assumptions used in the cash flow models. The Company obtains third-party valuations quarterly to assess the reasonableness of the fair value calculated by the cash flow model. The Company receives a base servicing fee annually on the outstanding principal balances of the loans, which is collected from investors. Additionally, the Company owns servicing rights for certain reverse mortgage loans. For this separate class of servicing rights, the Company initially records a MSR or mortgage servicing liability (“MSL”) on the acquisition date based on the fair value of the future cash flows associated with the pool and whether adequate compensation is to be received for servicing. The Company applies the amortized cost method for subsequent measurement of the loan pools with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and the MSL accreted ratably over the expected life of the portfolio. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying mortgages. The Company adjusts MSR amortization and MSL accretion prospectively in response to changes in estimated projections of future cash flows. Reverse MSRs and MSLs are stratified and evaluated each reporting period for impairment or increased obligation, as applicable, based on predominant risk characteristics of the underlying serviced loans. These stratification characteristics include investor, loan type (fixed or adjustable rate), term and interest rate. Impairment of the MSR or additional obligation associated with the MSL are recorded through a valuation allowance, unless considered other-than-temporary, and are recognized as a charge to general and administrative expense. Amounts amortized or accreted are recognized as an adjustment to service related revenue, net, along with monthly servicing fees received, generally stated at a fixed rate per loan. |
MSR Related Liabilities - Nonrecourse | MSR Related Liabilities - Nonrecourse Excess Spread Financing In conjunction with the acquisition of certain MSRs on various pools of residential mortgage loans (the “Portfolios”), the Company has entered into sale and assignment agreements related to its right to servicing fees, under which the Company sells to third parties the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed base servicing fee per loan. The agreements consist of two components - current excess spread, or remittance of a percentage of excess spread on currently serviced loans, and future excess spread, or the obligation to transfer currently serviced loans that have been refinanced into current excess spread or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above. The sale of these rights is accounted for as secured borrowings, with the total proceeds received being recorded as a component of MSR related liabilities - nonrecourse at fair value in the consolidated balance sheets. The Company determines the effective interest rate on these liabilities and allocates total repayments between interest expense and the outstanding liability. The Company has elected to measure the outstanding financings related to the excess spread financing agreements at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net in the consolidated statements of operations. The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value. Mortgage Servicing Rights Financing The Company has entered into certain transactions with third parties to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms. The Company evaluates these transactions to determine if they are sales or secured borrowings. When these transfers qualify for sale treatment, the Company derecognizes the transferred assets in its consolidated balance sheets. The Company has determined that for a portion of these transactions, the related MSRs sales are contingent on the receipt of consents from various third parties. Until these required consents are obtained, for accounting purposes, legal ownership of the MSR’s continues to reside with the Company. The Company continues to account for the MSRs in its consolidated balance sheets. In addition, the Company records a mortgage servicing rights financing liability associated with this financing transaction. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company’s service related revenues. The Company has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded as a charge or credit to service related revenue, net, in the consolidated statements of operations. The fair value on mortgage servicing right financings is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. |
Revenues | Revenues ASC 606, Revenue from Contracts with Customers , establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of Company’s revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as Company’s loans and derivatives, as well as revenue related to Company’s mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within Company’s disclosures. All revenues from Xome fall within the scope of ASC 606. Xome’s operations are comprised of Exchange, Services and Data/Technology, as follows: • Exchange is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer. • Services connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers. • Data/Technology includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606. Revenues from Forward Servicing Activities Service related revenues primarily include contractually specified servicing fees, late charges, prepayment penalties and other ancillary revenues. The servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as earned, which is generally upon collection of the payments from the borrower. Corresponding loan servicing costs are charged to expense as incurred. The Company recognizes ancillary revenues and earnings on float as they are earned, which is generally upon collection of the payments from the borrower. In addition, the Company receives various fees in the course of providing servicing on its various portfolios. These fees include modification fees for modifications performed outside of government programs, modification fees for modifications pursuant to various government programs, and incentive fees for servicing performance on specific government-sponsored entities (“GSE”) portfolios. Fees recorded on modifications of mortgage loans serviced by the Company for others are recognized on collection and are recorded as a component of service related revenues. Fees recorded on modifications pursuant to various government programs are recognized based upon completion of all necessary steps by the Company and the minimum loan performance time frame to establish eligibility for the fee. Revenue earned on modifications pursuant to various government programs is included as a component of service related revenues. Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of service related revenues. The Company also acts as a subservicer for certain parties that own the underlying servicing rights and receives subservicing fees, which are typically a stated monthly fee per loan that varies based on types of loans. Fees related to the subserviced portfolio are accrued in the period the services are performed. Revenues from Origination Activities Loan origination and other loan fees generally represent flat, per-loan fee amounts and are recognized as revenue, net of loan origination costs, at the time the loans are funded. Revenues from Reverse Mortgage Servicing and Reverse Mortgage Interests The Company performs servicing of reverse mortgage loans, similar to its forward servicing business, and receives servicing fees from investors, which is recorded in service related revenues. For reverse mortgage interests, where the Company records entire participating interest in HECM loans, the Company accrues interest in accordance with FHA guidelines and records interest income on the consolidated statements of operations. |
Reserves for Loan Origination and Forward Servicing Activity and Reverse Mortgage Interests | Reserves for Origination Activity The Company provides for reserves, included within payables and accrued liabilities, in connection with loan origination activities. Reserves on loan origination activities primarily include reserves for the repurchase of loans from GSEs, GNMA, and third-party investors primarily due to delinquency or foreclosure and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The provision for reserves associated with loan origination activities is a component of net gain on mortgage loans held for sale. The Company utilizes internal models to estimate reserves for loan origination activities based upon its expectation of future defaults and the historical defect rate for government insured loans and is based upon judgments and assumptions which can be influenced by many factors and may change over the life of the underlying loans, including: (i) historical loss rate, (ii) secondary market pricing of loans; (iii) home prices and the levels of home equity; (iv) the quality of Company’s underwriting procedures; (v) borrower delinquency and default patterns; and (vi) other Company-specific and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third-party data, where applicable. Reserves for Forward Servicing Activity In connection with forward loan servicing activities, the Company records reserves primarily for the recoverability of advances, interest claims, and mortgage insurance claims. Reserves for advances and other receivables associated with loans in the MSR portfolio are considered within the MSR valuation, and the provision expense for such advances is recorded in the mark-to-market adjustment in service related revenue. Such valuation gives consideration to the expected cash outflows and inflows for advances and other receivables in accordance with the fair value framework. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables, net. As loans serviced transfer out of the MSR portfolio, any negative MSR value associated with the loans transferred is reclassified from the MSR to the reserve within advances and other receivables, net, to the extent such reserves continue to be required for balances remaining on the consolidated balance sheets. Management evaluates reserves for sufficiency each reporting period and any additional reserve requirements are recorded as a provision in general and administrative expense, as needed. The Company records reserves for advances and other receivables and evaluates the sufficiency of such reserves through internal models considering both historical and expected recovery rates on claims filed with government agencies, government sponsored enterprises, vendors, prior servicer and other counterparties. Key assumptions used in the model include but are not limited to expected recovery rates by loan types and aging of the receivable. Recovery of advances and other receivables is subject to significant judgment and estimates based on the Company’s assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts from prior servicers and to effectively negotiate settlements, as needed. Management reviews recorded advances and other receivables and upon determination that no further recourse for recovery is available from all means known to management, the recorded balances associated with these receivables are written-off against the reserve. Reserves for Reverse Mortgage Interests The Company records a reserve for reverse mortgage interests based on unrecoverable costs and estimates of probable loss exposures. The Company estimates reserve requirements upon the realization of a triggering event indicating a probable loss exposure. Internal models are utilized to estimate loss exposures at the loan level associated with the Company’s ability to meet servicing guidelines set forth by regulatory agencies and GSEs. Key assumptions within the models include but are not limited to expected recovery rates by loan and borrower characteristics, foreclosure timelines, value of underlying collateral, future carrying and foreclosure costs, and other macro-economic factors. If the calculated reserve requirements exceed the recorded allowance for reserves and discounts, a provision is recorded to general and administrative expense, as needed. Releases to reserves are also recorded against provision in general and administrative expenses. Reserve requirements are subject to significant judgment and estimates based on the Company’s assessment of its compliance with servicing guidelines, its ability to produce the necessary documentation to support claims, its ability to support amounts from prior servicers and to effectively negotiate settlements, as needed. Each period, management reviews recorded reverse mortgage interests and upon determination that no further recourse for recovery is available from all means known to management, the recorded balances associated with these receivables are written-off against the reserve at the loan level. Amounts Due from Prior Servicers The Company services its loan portfolios under guidelines set forth by regulatory agencies and investor guidelines. Losses can be incurred if the underlying loans are not serviced in accordance with established guidelines, resulting in the assessment of fines and the inability to recover interest and costs incurred. Prior servicers associated with the underlying loans may have contributed to the losses if their prior servicing practices did not allow for timely compliance with servicing guidelines set forth. To mitigate the risk of loss to the Company, indemnification provisions are incorporated into the executed acquisition and servicing agreements that allow for the recovery of realized losses which can be attributed to prior servicers. As part of its servicing operations, the Company estimates and records an asset in advances and other receivables on the consolidated balance sheet for probable recoveries from prior servicers for their respective portion of these losses. Estimated recoveries from prior servicers are based on management’s best estimate of allocated losses among servicing parties, terms of the indemnification provisions, prior recovery experience, current negotiations and the servicer’s ability to pay requested amounts. The Company updates its estimate of recovery each reporting period based on the facts and circumstances known at the time. Recovery of amounts due from prior servicers is subject to significant judgment based on the Company’s assessment of the prior servicer’s responsibility for losses incurred, its ability to provide related support for such amounts and its ability to effectively negotiate settlement of amounts due from prior servicers if needed. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net is comprised of land, building, furniture, fixtures, leasehold improvements, computer software, and computer hardware. These assets are stated at cost less accumulated depreciation. Repairs and maintenance are expensed as incurred which is included in general and administrative expenses in the consolidated statements of operations. Depreciation, which includes depreciation and amortization on capital leases, is recorded using the straight-line method over the estimated useful lives of the related assets. Cost and accumulated depreciation applicable to assets retired or sold are eliminated from the accounts, and any resulting gains or losses are recognized at such time through a charge or credit to general and administrative expenses. Costs to internally develop computer software are capitalized during the development stage and include external direct costs of materials and services as well as employee costs related to time spent on the project. The Company periodically reviews its property and equipment when events or changes in circumstances indicate that the carrying amount of its property and equipment might not be recoverable under the recoverability test, whereby the expected future undiscounted cash flows from the assets are estimated and compared with the carrying amount of the assets. If the sum of the estimated undiscounted cash flows is less than the carrying amount of the assets, an impairment loss is recorded to general and administrative expense, as needed. The impairment loss is measured by comparing the fair value of the assets with their carrying amounts. Fair value is determined based on discounted cash flow. The Company evaluates all leases at inception to determine if they meet the criteria for a capital lease. A capital lease is recorded as an acquisition of property or equipment at an amount equal to the present value of minimum lease payments at the date of inception. Assets acquired under a capital lease are depreciated on a straight-line basis in accordance with the Company’s normal depreciation policy over the lease term and are included in property and equipment, net, on the consolidated balance sheets. A corresponding liability is recorded representing an obligation to make lease payments which is included in payables and accrued liabilities on the consolidated balance sheets. Lease payments are allocated between interest expense and reduction of obligation. Leases that do not meet the capital lease criteria are accounted for as operating leases. Rental expense on operating leases is recognized on a straight-line basis over the lease term which is included in general and administrative expenses in the consolidated statements of operations. Leasehold improvements are amortized over the shorter of the lease terms of the respective leases or the estimated useful lives of the related assets. |
Variable Interest Entities | Variable Interest Entities In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”), which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, the Company typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. The Company will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. The Company evaluates its interests in each SPE for classification as a Variable Interest Entity (“VIE”). When an SPE meets the definition of a VIE and the Company determines that the Company is the primary beneficiary, the Company includes the SPE in its consolidated financial statements. The Company consolidates SPEs connected with both forward and reverse mortgage activities. See Note 13, Securitizations and Financings for more information on Company SPEs and Note 11, Indebtedness for certain debt activity connected with SPEs. Securitizations and Asset-Backed Financing Arrangements The Company and its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. The Company has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. The Company has aggregated these transactions into two groups: (1) securitizations of residential mortgage loans accounted for as sales and (2) financings of advances on loans serviced for others accounted for as secured borrowings. Securitizations Treated as Sales The Company’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. The Company’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee. The beneficial interests held consist of both subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result in consolidation of the VIE as the beneficial interests that are held in the unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2018 , the Company had no other significant assets in its consolidated financial statements related to these trusts. The Company has no obligation to provide financial support to unconsolidated securitization trusts and has provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of the Company. The general creditors of the Company have no claim on the assets of the trusts. The Company’s exposure to loss as a result of its continuing involvement with the trusts is limited to the carrying values, if any, of its investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. The Company considers the probability of loss arising from its advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 5, Advances and Other Receivables, Net and Note 4, Mortgage Servicing Rights and Related Liabilities , for additional information regarding advances and MSRs. Financings The Company transfers advances on loans serviced for others to SPEs in exchange for cash. The Company consolidates these SPEs because the Company is the primary beneficiary of the VIE. These VIEs issue debt supported by collections on the transferred advances. The Company made these transfers under the terms of its advance facility agreements. The Company classifies the transferred advances on its consolidated balance sheets as advances and classifies the related liabilities as advance facilities and other nonrecourse debt. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against the Company. Financings include the HMBS and private securitization trusts as previously discussed. |
Derivative Financial Instruments | Derivative Financial Instruments Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. The Company recognizes all derivatives on its consolidated balance sheets at fair value on a recurring basis. The Company treats all of its derivative instruments as economic hedges, therefore none of its derivative instruments are designated as accounting hedges. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar futures, Treasury futures, interest rate swap agreements and interest rate caps. IRLCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, whereby the interest rate on the loan is set prior to funding. The fair values of mortgage loans held for sale, which are held in inventory awaiting sale into the secondary market, and interest rate lock commitments, are subject to changes in mortgage interest rates from the date of the commitment through the sale of the loan into the secondary market. As a result, the Company is exposed to interest rate risk during the period from the date of the lock commitment through (i) the lock commitment cancellation or expiration date; or (ii) the date of sale into the secondary mortgage market. IRLCs are considered freestanding derivatives and are recorded at fair value at inception. Loan commitments generally range between 30 and 90 days; and the Company typically sells mortgage loans within 30 days of origination. Changes in fair value subsequent to inception are based on changes in the fair value of the underlying loan, and changes in the probability that the loan will fund within the terms of the commitment. Any changes in fair value are recorded in earnings as a component of net gain on mortgage loans held for sale. The Company uses other derivative financial instruments, primarily forward sales commitments, to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale. These commitments are recorded at fair value based on the dealer’s market. The forward sales commitments fix the forward sales price that will be realized in the secondary market and thereby reduce the interest rate and price risk to the Company. The Company’s expectation of the amount of its interest rate lock commitments that will ultimately close is a key factor in determining the notional amount of derivatives used in economically hedging the position. The Company may also enter into commitments to purchase MBS as part of its overall hedging strategy. The estimated fair values of forward MBS are based on the exchange prices. The changes in value on the forward sales commitments and forward sales of MBS are recorded as a charge or credit to net gain on mortgage loans held for sale. The Company also purchases interest rate swaps, Eurodollar futures and Treasury futures to mitigate exposure to interest rate risk related to cash flows on securitized mortgage borrowings. |
Goodwill and Intangible Assets | Intangible Assets Intangible assets primarily consist of trade name, customer relationships and technology acquired through the acquisition of Nationstar and the acquisition of Assurant Mortgage Solutions (“AMS”). Those intangible assets are deemed to have finite useful lives and are amortized either on a straight-line basis over their estimated useful lives (trade name, technology and internally developed software), or on a basis more representative of the time pattern over which the benefit is derived (customer relationships). Intangible assets with finite useful lives are tested for impairment on an annual basis or whenever events or circumstances indicate that their carrying amount may not be recoverable. If the carrying value of the asset cannot be recovered from estimated future undiscounted cash flows, the fair value of the asset is calculated using the present value of net future cash flows. If the carrying amount of the asset exceeds its fair value, an impairment is recorded. Goodwill Goodwill is initially recorded as the excess of the purchase price over the fair value of net assets acquired in a business combination and is subsequently evaluated for impairment at least annually or when events or circumstances make it more likely than not that an impairment may have occurred. Goodwill impairment testing is performed at the reporting unit level, equivalent to a business segment or one level below. The Company has determined that each of its operating segments (the Servicing, Originations and Xome segments) represents a reporting unit, resulting in three total reporting units. The Company early adopted ASU 2017-04 in the fourth quarter of 2018. The Company performs its annual goodwill impairment test as of October 1 and monitors for interim triggering events on an ongoing basis. Goodwill is reviewed for impairment utilizing either a qualitative assessment or a quantitative goodwill impairment test. If the Company chooses to perform a qualitative assessment and determines the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. For reporting units where the Company performs the quantitative goodwill impairment test, the Company compares the fair value of each reporting unit, which the Company primarily determines using an income approach based on the present value of discounted cash flows, to the respective carrying value, which includes goodwill. If the fair value of the reporting unit exceeds its carrying value, the goodwill is not considered impaired. If the carrying value is higher than the fair value, the difference would be recognized as an impairment loss. |
Loans Subject to Repurchase Rights from Ginnie Mae | Loans Subject to Repurchase Rights from Ginnie Mae For certain forward loans sold to GNMA, the Company as the issuer has the unilateral right to repurchase, without GNMA’s prior authorization, any individual loan in a GNMA securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once the Company has the unilateral right to repurchase a delinquent loan, the Company has effectively regained control over the loan, and under GAAP, must recognize the right to the loan in its consolidated balance sheets and establish a corresponding repurchase liability regardless of the Company’s intention to repurchase the loan. The Company recognizes the right to purchase these mortgage loans in other assets at their unpaid principal balances and records a corresponding liability in payables and accrued liability for mortgage loans eligible for repurchase in its consolidated balance sheets. |
Interest Income | Interest Income Interest income is recognized on loans held for sale for the period from loan funding to sale, which is typically within 30 days. Loans are placed on non-accrual status when any portion of the principal or interest is 90 days past due. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible. For individual loans that have been modified, a period of six timely payments is required before the loan is returned to an accrual basis. Interest income also includes interest earned on custodial cash deposits associated with the mortgage loans serviced, and interest earned on reverse mortgage interests. Reverse mortgage interests accrue interest income in accordance with FHA guidelines. |
Share-Based Compensation Expense | Share-Based Compensation Share-based compensation is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the requisite employee service period (generally the vesting period of the grant) on a straight-line basis in salaries, wages and benefits within the consolidated statements of operations. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included as part of general and administrative expenses. |
Income Taxes | Income Taxes The Company is subject to the income tax laws of the U.S., its states and municipalities. These tax laws are complex and subject to different interpretations by the taxpayer and the relevant governmental taxing authorities. Deferred income taxes are determined using the balance sheet method. Deferred taxes are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. The Company regularly reviews the carrying amount of its deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s deferred tax assets will not be realized in future periods, a deferred tax valuation allowance is established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical financial performance, expectation of future earnings, length of statutory carryforward periods, experience with operating tax loss and tax credit carryforwards which may expire unused, tax planning strategies and timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. The Company initially recognizes tax positions in the consolidated financial statements when it is more likely than not that the position will be sustained upon examination by the tax authorities. Such tax positions are initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and all relevant facts. In establishing a provision for income tax expense, the Company makes judgments and interpretations about the application of these inherently complex tax laws within the framework of existing GAAP. The Company recognizes interest and penalties related to uncertain tax positions as a component of provision for income taxes. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. Basic net income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share is computed by dividing net income available to common stockholders by the sum of the weighted average number of common shares outstanding and any dilutive securities for the period. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions | The table below presents the calculation of aggregate purchase price. Purchase Price Converted WMIH common shares in millions (prior to the 1-for-12 reverse stock split) 394 Price per share, based on price of $1.398 for WMIH stock on July 31, 2018 (prior to the 1-for-12 reverse stock split) $ 1.398 Purchase price from common stock issued 551 Purchase price from cash payment 1,226 Total purchase price $ 1,777 |
Schedule of Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase price to the acquired assets and liabilities is as follows: Preliminary Estimated Fair Value of Net Assets Acquired Cash and cash equivalents $ 166 Restricted cash 430 Mortgage servicing rights 3,428 Advances and other receivables 1,262 Reverse mortgage interests 9,213 Mortgage loans held for sale 1,514 Mortgage loans held for investment 125 Property and equipment 96 Derivative financial instruments 64 Other assets 546 Fair value of assets acquired 16,844 Unsecured senior notes 1,830 Advance facilities 551 Warehouse facilities 2,701 Payables and accrued liabilities 1,361 MSR related liabilities—nonrecourse 1,065 Mortgage servicing liabilities 86 Derivative financial instruments 3 Other nonrecourse debt 7,583 Fair value of liabilities assumed 15,180 Total fair value of net tangible assets acquired 1,664 Intangible assets (1) 103 Preliminary goodwill 10 $ 1,777 (1) The following intangible assets were acquired in the Nationstar acquisition: Useful Life (Years) Fair Value Customer relationships (i) 6 $ 61 Tradename (ii) 5 8 Technology (ii) 3-5 11 Internally developed software (iii) 2 23 Total $ 103 (i) The estimated fair values for customer relationships were measured using the excess earnings method. (ii) The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets. (iii) The estimated fair values for internally developed software were measured using the replacement cost method. |
Pro Forma Information | The following unaudited pro forma financial information presents the combined results of operations for the year ended December 31, 2018 as if the transaction had occurred on January 1, 2018. Year ended December 31, 2018 (unaudited) Pro forma total revenues $ 1,790 Pro forma net income $ 16 |
Advances and Other Receivable_2
Advances and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Advances, Net | The following table sets forth the activities of the reserves for advances and other receivables. Successor Predecessor Reserves for Advances and Other Receivables For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ — $ 284 $ 184 Provision and other additions (1) 47 69 142 Write-offs — (56 ) (42 ) Balance - end of period $ 47 $ 297 $ 284 (1) The Company recorded a provision of $25 through the MTM adjustments in service related revenues for the five months ended December 31, 2018 for inactive and liquidated loans that are no longer part of the MSR portfolio. The Predecessor recorded a provision through the MTM adjustments in service related revenues of $38 and $72 for the seven months ended July 31, 2018 and year ended December 31, 2017 , respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate. Advances and other receivables, net consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Servicing advances, net of $205 and $0 discount, respectively $ 952 $ 1,599 Receivables from agencies, investors and prior servicers, net of $48 and $0 discount, respectively 289 391 Reserves (47 ) (284 ) Total advances and other receivables, net $ 1,194 $ 1,706 The following table sets forth the activities of the purchase discount for advances and other receivables. Successor For the Period August 1 - December 31, 2018 Purchase Discounts Servicing Advances Receivables from Agencies, Investors and Prior Servicers Balance - beginning of period $ 246 $ 56 Utilization of purchase discounts (41 ) (8 ) Balance - end of period $ 205 $ 48 |
Mortgage Servicing Rights and_2
Mortgage Servicing Rights and Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following table sets forth the activities of forward MSRs. Successor Predecessor Forward MSRs - Fair Value For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Fair value - beginning of period $ 3,413 $ 2,937 $ 3,160 Additions: Servicing retained from mortgage loans sold 120 162 203 Purchases of servicing rights 479 144 66 Dispositions: Sales of servicing assets (1) (111 ) 4 (60 ) Changes in fair value: Changes in valuation inputs or assumptions used in the valuation model (123 ) 330 (101 ) Other changes in fair value (113 ) (164 ) (331 ) Fair value - end of period $ 3,665 $ 3,413 $ 2,937 (1) Amount for the seven months ended July 31, 2018 is related to the sale of MSRs collateralized by nonperforming loans, which have a negative MSR value. The following table sets forth the carrying value of the Company’s MSRs and the related liabilities. Successor Predecessor MSRs and Related Liabilities December 31, 2018 December 31, 2017 Forward MSRs - fair value $ 3,665 $ 2,937 Reverse MSRs - amortized cost 11 4 Mortgage servicing rights $ 3,676 $ 2,941 Mortgage servicing liabilities - amortized cost $ 71 $ 41 Excess spread financing - fair value $ 1,184 $ 996 Mortgage servicing rights financing - fair value 32 10 MSR related liabilities - nonrecourse at fair value $ 1,216 $ 1,006 The following table provides a breakdown of credit sensitive and interest sensitive UPB for the Company’s forward MSRs. Successor Predecessor December 31, 2018 December 31, 2017 MSRs - Sensitivity Pools UPB Fair Value UPB Fair Value Credit sensitive $ 135,752 $ 1,495 $ 167,605 $ 1,572 Interest sensitive 159,729 2,170 113,775 1,365 Total $ 295,481 $ 3,665 $ 281,380 $ 2,937 |
Schedule of Assumptions for Fair Value of Mortgage Service Rights | The range of key assumptions used in the Company’s valuation of excess spread financing are as follows: Excess Spread Financing Prepayment Speeds Average Life (Years) Discount Rate Recapture Rate Successor December 31, 2018 Low 6.0 % 5.0 8.5 % 8.5 % High 16.7 % 8.1 13.9 % 30.5 % Weighted-average 11.0 % 6.5 10.4 % 18.6 % Predecessor December 31, 2017 Low 6.2 % 4.4 8.5 % 7.2 % High 21.2 % 6.9 14.1 % 30.0 % Weighted-average 13.7 % 5.9 10.8 % 18.7 % The following table sets forth the weighted average assumptions used in the valuation of the mortgage servicing rights financing. Successor Predecessor Mortgage Servicing Rights Financing Assumptions December 31, 2018 December 31, 2017 Advance financing rates 4.2 % 3.5 % Annual advance recovery rates 19.0 % 23.2 % The Company used the following key weighted-average inputs and assumptions in estimating the fair value of forward MSRs. Successor Predecessor Credit Sensitive December 31, 2018 December 31, 2017 Discount rate 11.3 % 11.4 % Total prepayment speeds 11.8 % 15.2 % Expected weighted-average life 6.4 years 5.7 years Interest Sensitive Discount rate 9.3 % 9.2 % Total prepayment speeds 10.0 % 10.7 % Expected weighted-average life 7.0 years 6.7 years |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | The following table shows the hypothetical effect on the fair value of the forward MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated. Discount Rate Total Prepayment Speeds Forward MSRs - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change Successor December 31, 2018 Forward mortgage servicing rights $ (137 ) $ (265 ) $ (129 ) $ (250 ) Predecessor December 31, 2017 Forward mortgage servicing rights $ (108 ) $ (208 ) $ (118 ) $ (227 ) The following table shows the hypothetical effect on the excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated. Discount Rate Prepayment Speeds Excess Spread Financing - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change Successor December 31, 2018 Excess spread financing $ 47 $ 99 $ 38 $ 81 Predecessor December 31, 2017 Excess spread financing $ 37 $ 78 $ 34 $ 71 |
Schedule of Fees Earned in Exchange for Servicing Financial Assets | The following table sets forth the items comprising revenues associated with servicing loan portfolios. Successor Predecessor Servicing Revenue For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Contractually specified servicing fees (1) $ 421 $ 574 $ 1,003 $ 1,045 Other service-related income (1) 44 66 168 245 Incentive and modification income (1) 17 37 80 113 Late fees (1) 34 53 89 82 Reverse servicing fees 16 37 58 57 Mark-to-market adjustments (2) (164 ) 196 (160 ) (177 ) Counterparty revenue share (3) (68 ) (111 ) (230 ) (298 ) Amortization, net of accretion (4) (64 ) (112 ) (242 ) (314 ) Total servicing revenue $ 236 $ 740 $ 766 $ 753 (1) Amounts include subservicing related revenues. (2) Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was $25 for the five months ended December 31, 2018 . The impact of negative modeled cash flows for the Predecessor was $38 for the seven months ended July 31, 2018 and $72 and $81 for the years ended December 31, 2017 and 2016 , respectively. (3) Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSR financing arrangements. (4) Amortization for the Successor is net of excess spread accretion of $53 and MSL accretion of $15 for the five months ended December 31, 2018 . Amortization for the Predecessor is net of excess spread accretion of $78 for the seven months ended July 31, 2018 , and $161 and $200 for the years ended December 31, 2017 and 2016 , respectively. The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion. |
Reverse Mortgage Interests, N_2
Reverse Mortgage Interests, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Reverse Mortgage Interest [Abstract] | |
Summary of Reverse Mortgage Interests | The activity of the reserves for reverse mortgage interests is set forth below. Successor Predecessor Reserves for reverse mortgage interests For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ — $ 115 $ 131 Provisions 13 32 76 Write-offs — (18 ) (92 ) Balance - end of period $ 13 $ 129 $ 115 Unsecuritized interests in reverse mortgages consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Repurchased HECM loans (exceed 98% MCA) $ 949 $ 1,751 HECM related receivables 300 311 Funded borrower draws not yet securitized 76 82 REO-related receivables 16 25 Purchase discount (122 ) (89 ) Total unsecuritized interests $ 1,219 $ 2,080 Reverse mortgage interests, net consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Participating interests in HECM mortgage-backed securities, net of $58 and $0 premium, respectively $ 5,664 $ 7,107 Other interests securitized, net of $100 and $0 discount, respectively 1,064 912 Unsecuritized interests, net of $122 and $89 discount, respectively 1,219 2,080 Reserves (13 ) (115 ) Total reverse mortgage interests, net $ 7,934 $ 9,984 The following table sets forth the activities of the purchase premiums and discounts for reverse mortgage interests. Successor For the Period August 1 - December 31, 2018 Purchase premiums and discounts for reverse mortgage interests Premium for Participating Interests in HMBS Discount for Other Interest Securitized Discount for Unsecuritized Interests Balance - beginning of period $ 58 $ (117 ) $ (173 ) Additions — — — Utilization of purchase discounts — — 43 Accretion/(Amortization) — 17 8 Balance - end of period $ 58 $ (100 ) $ (122 ) In connection with previous reverse mortgage portfolio acquisitions, the Predecessor recorded a purchase discount within unsecuritized interests. The following table sets forth the activities of the purchase discounts for reverse mortgage interests. Predecessor Purchase discounts for reverse mortgage interests For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ (89 ) $ (43 ) Additions (7 ) (75 ) Accretion 14 29 Balance - end of period $ (82 ) $ (89 ) |
Mortgage Loans Held for Sale _2
Mortgage Loans Held for Sale and Investment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Loans Held for Sale and Investment [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | Mortgage loans held for sale are recorded at fair value as set forth below. Successor Predecessor December 31, 2018 December 31, 2017 Mortgage loans held for sale - UPB $ 1,568 $ 1,837 Mark-to-market adjustment (1) 63 54 Total mortgage loans held for sale $ 1,631 $ 1,891 (1) The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations. The total UPB of mortgage loans held for sale on non-accrual status was as follows: Successor Predecessor December 31, 2018 December 31, 2017 Mortgage Loans Held for Sale - UPB UPB Fair Value UPB Fair Value Non-accrual (1) $ 45 $ 42 $ 66 $ 64 (1) Non-accrual includes $40 and $64 of UPB related to Ginnie Mae repurchased loans as of December 31, 2018 and 2017 , respectively. |
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow | The following table details a roll forward of the change in the account balance of mortgage loans held for sale. Successor Predecessor Mortgage loans held for sale For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ 1,514 $ 1,891 $ 1,788 Mortgage loans originated and purchased, net of fees 8,890 12,319 19,140 Loans sold (9,304 ) (13,255 ) (20,318 ) Repurchase of loans out of Ginnie Mae securitizations 527 544 1,249 Transfer of mortgage loans held for sale to advances/accounts receivable related to claims (1) (5 ) (7 ) (19 ) Net transfer of mortgage loans held for sale from REO in other assets (2) 5 14 23 Changes in fair value 6 (1 ) 9 Other purchase-related activities (3) (2 ) 9 19 Balance - end of period $ 1,631 $ 1,514 $ 1,891 (1) Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale. (2) Net amounts are comprised of REO in the sales process which are transferred to other assets and certain government insured mortgage REO which are transferred from other assets upon completion of the sale so that the claims process can begin. (3) Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts. |
Schedule of Loans Held for Investment | The total UPB of mortgage loans held for investment on non-accrual status was as follows: Successor December 31, 2018 Mortgage Loans Held for Investment - UPB UPB Fair Value Non-accrual $ 27 $ 13 The following table details a roll forward of the change in the account balance of mortgage loans held for investment. Successor Mortgage loans held for investment at fair value For the Period August 1 - December 31, 2018 Balance - beginning of period $ 125 Payments received from borrowers (5 ) Charge-offs (3 ) Changes in fair value 2 Balance - end of period $ 119 The following sets forth the composition of mortgage loans held for investment, net. Successor December 31, 2018 Mortgage loans held for investment, net – UPB $ 156 Fair value adjustments (37 ) Total mortgage loans held for investment at fair value $ 119 Predecessor December 31, 2017 Mortgage loans held for investment, net - UPB $ 193 Transfer discount: Non-accretable (41 ) Accretable (12 ) Allowance for loan losses (1 ) Total mortgage loans held for investment, net $ 139 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | The composition of property and equipment, net, and the corresponding ranges of estimated useful lives were as follows: Successor Predecessor December 31, 2018 December 31, 2017 Estimated Useful Life Furniture, fixtures, and equipment $ 32 $ 57 3 - 5 years Capitalized software costs 24 152 3 - 5 years Software in development and other 24 12 Leasehold improvements 22 19 3 - 5 years Long-term capital leases - computer equipment 10 50 5 years Property and equipment 112 290 Less: Accumulated depreciation (16 ) (169 ) Total property and equipment, net $ 96 $ 121 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 Loans subject to repurchase right from Ginnie Mae $ 266 $ 218 Accrued revenues 145 148 Intangible assets 117 19 Goodwill 23 72 Other 244 222 Total other assets $ 795 $ 679 |
Schedule of Goodwill | The following presents changes in the carrying amount of goodwill for the years indicated. Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period (1) $ 10 $ 72 $ 74 Addition from acquisitions (2) 13 — — Goodwill disposition — — (2 ) Balance - end of period $ 23 $ 72 $ 72 (1) Beginning balance for the Successor includes goodwill of $10 in connection with the acquisition of Nationstar on July 31, 2018, 2018. See further discussion in Note 3, Acquisitions . (2) As discussed in Note 3, Acquisitions , the Company recorded goodwill of $13 in connection with the acquisition of Assurant Mortgage Solutions in 2018. |
Schedule of Intangible Assets and Goodwill | The following tables present the composition of intangible assets. Successor December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 77 $ (14 ) $ 63 5.6 Technology 52 (8 ) 44 3.6 Trade name 8 (1 ) 7 4.6 Other 3 — 3 4.8 Total intangible assets $ 140 $ (23 ) $ 117 4.7 Predecessor December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Trade name $ 8 $ (3 ) $ 5 6.6 Customer relationships 12 (6 ) 6 4.7 Purchased software 12 (5 ) 7 4.0 Licenses 1 — 1 Indefinite Total intangible assets $ 33 $ (14 ) $ 19 4.8 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents the estimated aggregate amortization expense for existing amortizable intangible assets for the years indicated. Year Ending December 31, Amount 2019 $ 47 2020 32 2021 17 2022 13 2023 8 Thereafter — Total future amortization expense $ 117 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses). Successor Predecessor December 31, 2018 For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Expiration Dates Outstanding Notional Fair Value Recorded Gains/(Losses) Recorded Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2019 $ 319 $ 13.5 $ 2.8 $ 10.5 Derivative financial instruments IRLCs 2019 1,301 47.6 (12.1 ) 0.4 Forward sales of MBS 2019 485 0.1 (3.1 ) 0.9 LPCs 2019 215 1.7 0.4 0.3 Treasury futures (1) 2018 — — (0.1 ) (1.8 ) Eurodollar futures (1) 2019-2021 19 — — — Liabilities Derivative financial instruments IRLCs (1) 2019 — — — — Forward sales of MBS 2019 2,639 19.3 17.4 (1.0 ) LPCs 2019 90 0.4 (0.2 ) 0.1 Treasury futures (1) 2018 — — (0.1 ) (1.3 ) Eurodollar futures (1) 2019-2021 6 — — — Predecessor December 31, 2017 Year ended December 31, 2017 Expiration Dates Outstanding Notional Fair Value Recorded Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments (1) 2018 $ 13 $ 0.1 $ — Derivative financial instruments IRLCs 2018 2,065 59.3 (32.9 ) Forward sales of MBS 2018 1,802 2.4 (36.9 ) LPCs 2018 171 0.9 (1.0 ) Treasury futures 2018 81 1.9 1.9 Eurodollar futures (1) 2018-2021 26 — — Interest rate swaps (1) 2018 — — (0.1 ) Liabilities Derivative financial instruments IRLCs (1) 2018 7 — 1.1 Forward sales of MBS 2018 1,579 2.8 7.2 LPCs 2018 213 0.6 0.9 Treasury futures 2018 128 1.4 (1.4 ) Eurodollar futures (1) 2018-2021 17 — — Interest rate swaps (1) 2018 — — 0.1 (1) Fair values or recorded gains/(losses) of derivative instruments are less than $0.1 for the specified dates. |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Notes Payable Successor Predecessor December 31, 2018 December 31, 2017 Advance Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged Nationstar agency advance receivables trust LIBOR+1.5% to 2.6% December 2020 Servicing advance receivables $ 350 $ 218 $ 255 $ 416 $ 492 Nationstar mortgage advance receivable trust LIBOR+1.5% to 6.5% August 2021 Servicing advance receivables 325 209 284 230 287 MBS servicer advance facility (2014) CPRATE+2.5% December 2019 Servicing advance receivables 125 90 149 44 140 Nationstar agency advance financing facility LIBOR+1.5% July 2020 Servicing advance receivables 125 78 89 102 117 MBS advance financing facility LIBOR+2.5% March 2019 Servicing advance receivables — — — 63 64 Advance facilities principal amount 595 $ 777 855 $ 1,100 Unamortized debt issuance costs — — Advance facilities, net $ 595 $ 855 Successor Predecessor December 31, 2018 December 31, 2017 Warehouse Facilities Interest Rate Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral pledged $1,200 warehouse facility LIBOR+1.9% to 3.8% March 2019 Mortgage loans or MBS $ 1,200 $ 464 $ 514 $ 889 $ 960 $1,000 warehouse facility LIBOR+1.6% to 2.5% September 2019 Mortgage loans or MBS 1,000 137 140 299 308 $950 warehouse facility LIBOR+1.7% to 3.5% November 2019 Mortgage loans or MBS 950 560 622 721 785 $600 warehouse facility LIBOR+2.5% February 2020 Mortgage loans or MBS 600 151 168 333 347 $500 warehouse facility LIBOR+2.0% to 2.3% September 2020 Mortgage loans or MBS 500 290 299 — — $500 warehouse facility LIBOR+1.5% to 2.8% November 2019 Mortgage loans or MBS 500 220 248 305 337 $500 warehouse facility LIBOR+1.5% to 3.0% April 2019 Mortgage loans or MBS 500 187 200 246 272 $500 warehouse facility LIBOR+1.8% to 2.8% August 2019 Mortgage loans or MBS 500 119 122 233 239 $300 warehouse facility LIBOR+2.3% January 2020 Mortgage loans or MBS 300 103 132 116 141 $200 warehouse facility LIBOR+1.3% April 2019 Mortgage loans or MBS 200 18 19 80 81 $40 warehouse facility LIBOR+3.0% November 2019 Mortgage loans or MBS 40 1 2 4 6 2,250 2,466 3,226 3,476 MSRs $200 warehouse facility (1) LIBOR+3.8% March 2019 Mortgage loans or MBS 200 — 430 — 377 $200 warehouse facility LIBOR+4.0% June 2020 Mortgage loans or MBS 200 100 928 50 594 $175 warehouse facility LIBOR+2.3% December 2020 Mortgage loans or MBS 175 — 226 — 200 $50 warehouse facility LIBOR+4.5% August 2020 Mortgage loans or MBS 50 — 102 10 90 100 1,686 60 1,261 Warehouse facilities principal amount 2,350 $ 4,152 3,286 $ 4,737 Unamortized debt issuance costs (1 ) (1 ) Warehouse facilities, net $ 2,349 $ 3,285 Pledged Collateral: Mortgage loans held for sale and mortgage loans held for investment $ 1,528 $ 1,628 $ 1,792 $ 1,901 Reverse mortgage interests 722 838 1,434 1,575 MSRs 100 1,686 60 1,261 (1) The capacity amount of this facility is a sublimit of the $1,200 warehouse facility. |
Schedule of Unsecured Senior Notes | Unsecured senior notes consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 $950 face value, 8.125% interest rate payable semi-annually, due July 2023 (1) $ 950 $ — $750 face value, 9.125% interest rate payable semi-annually, due July 2026 (1) 750 — $600 face value, 6.500% interest rate payable semi-annually, due July 2021 (2) 592 595 $300 face value, 6.500% interest rate payable semi-annually, due June 2022 (2) 206 206 $475 face value, 6.500% interest rate payable semi-annually, due August 2018 (3) — 364 $400 face value, 7.875% interest rate payable semi-annually, due October 2020 (3) — 397 $375 face value, 9.625% interest rate payable semi-annually, due May 2019 (3) — 323 Unsecured senior notes principal amount 2,498 1,885 Unamortized debt issuance costs, net of premium, and discount (39 ) (11 ) Unsecured senior notes, net $ 2,459 $ 1,874 (1) On July 13, 2018, Merger Sub issued $950 aggregate principal amount of the 8.125% Notes due 2023 and $750 aggregate principal amount of the 9.125% Notes due 2026. The proceeds from the New Notes were used, together with the proceeds from the issuance of WMIH’s common stock and WMIH’s cash and restricted cash on hand, to consummate the Merger with Nationstar and the refinancing of certain Nationstar’s existing debt and to pay related fees and expenses. At the consummation of the acquisition, Merger Sub merged with and into Nationstar with Nationstar assuming the obligations under the New Notes. (2) In June 2018, the Predecessor entered into a supplemental indenture to, among other things, modify the definition of “Change of Control” to provide that the Merger will not constitute a change of control which would otherwise trigger redemption obligations. (3) The note of the Predecessor was paid off or redeemed in August 2018. |
Schedule of Maturities of Long-term Debt | As of December 31, 2018 , the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows: Year Ending December 31, Amount 2019 $ — 2020 — 2021 592 2022 206 2023 950 Thereafter 750 Total $ 2,498 |
Schedule of Other Nonrecourse Debt | Other nonrecourse debt consists of the following: Successor Predecessor December 31, 2018 December 31, 2017 Issue Date Maturity Date Class of Note Securitized Amount Outstanding Outstanding Participating interest financing (1) — — — $ — $ 5,607 $ 7,111 Securitization of nonperforming HECM loans Trust 2016-2 June 2016 June 2026 A, M1, M2 — — 94 Trust 2016-3 August 2016 August 2026 A, M1, M2 — — 138 Trust 2017-1 May 2017 May 2027 A, M1, M2 — — 213 Trust 2017-2 September 2017 September 2027 A, M1, M2 284 231 365 Trust 2018-1 March 2018 March 2028 A, M1, M2, M3, M4, M5 308 284 — Trust 2018-2 August 2018 August 2028 A, M1, M2, M3, M4, M5 260 250 — Trust 2018-3 November 2018 November 2028 A, M1, M2, M3, M4, M5 350 326 — Nonrecourse debt - legacy assets November 2009 October 2039 A 105 29 42 Other nonrecourse debt principal amount 6,727 7,963 Unamortized debt issuance costs, net of premium, and issuance discount (2) 68 51 Other nonrecourse debt, net $ 6,795 $ 8,014 (1) Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios. (2) The Predecessor amount includes a premium of $62 as of December 31, 2017 . |
Payables and Accrued Liabilit_2
Payables and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Payables and Accrued Liabilities | Payables and accrued liabilities consist of the following: Successor Predecessor December 31, 2018 December 31, 2017 Payables to servicing and subservicing investors $ 494 $ 516 Loans subject to repurchase from Ginnie Mae 266 218 MSR purchases payable including advances 182 10 Payable to GSEs and securitized trusts 105 92 Other liabilities 496 403 Total payables and accrued liabilities $ 1,543 $ 1,239 |
Schedule of Loans Subject to Repurchase Reserve | The activity of the repurchase reserves is set forth below. Successor Predecessor Repurchase Reserves For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Balance - beginning of period $ 9 $ 9 $ 18 Provisions 3 3 7 Releases (4 ) (3 ) (14 ) Charge-offs — — (2 ) Balance - end of period $ 8 $ 9 $ 9 |
Securitizations and Financings
Securitizations and Financings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entities and Securitizations [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company. Successor Predecessor December 31, 2018 December 31, 2017 Total collateral balances $ 1,873 $ 2,291 Total certificate balances $ 1,817 $ 2,129 A summary of mortgage loans transferred by the Company and the Predecessor to unconsolidated securitization trusts that are 60 days or more past due are presented below. Successor Predecessor Principal Amount of Loans 60 Days or More Past Due December 31, 2018 December 31, 2017 Unconsolidated securitization trusts $ 285 $ 448 A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s consolidated financial statements is presented below. Successor Predecessor December 31, 2018 December 31, 2017 Transfers Reverse Secured Borrowings Transfers Reverse Secured Borrowings Assets Restricted cash $ 70 $ 63 $ 106 $ 26 Reverse mortgage interests, net — 6,770 — 7,981 Advances and other receivables, net 628 — 896 — Mortgage loans held for investment 118 — 138 — Other assets — — 2 — Total assets $ 816 $ 6,833 $ 1,142 $ 8,007 Liabilities Advance facilities (1) $ 505 $ — $ 749 $ — Payables and accrued liabilities 1 1 2 1 Participating interest financing (2) — 5,607 — 7,111 HECM Securitizations (HMBS) Trust 2016-2 — — — 94 Trust 2016-3 — — — 138 Trust 2017-1 — — — 213 Trust 2017-2 — 231 — 365 Trust 2018-1 — 284 — — Trust 2018-2 — 250 — — Trust 2018-3 — 326 — — Nonrecourse debt–legacy assets 29 — 42 — Total liabilities $ 535 $ 6,699 $ 793 $ 7,922 (1) Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in Note 11, Indebtedness for additional information. (2) Participating interest financing excludes premiums. |
Share-Based Compensation and _2
Share-Based Compensation and Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Equity Based Awards Activity | The following table summarizes equity based awards under the 2012 Plan for the periods indicated. Shares (or Units) (in thousands) Weighted-Average Grant Date Fair Value, per Share (or Unit) Predecessor Equity awards outstanding as of December 31, 2017 2,105 $ 17.33 Granted 1,278 14.77 Forfeited (1,196 ) 16.52 Vested (1,061 ) 16.20 Equity awards outstanding as of July 31, 2018 1,126 16.27 Successor Equity awards outstanding as of August 1, 2018 1,154 $ 16.27 Granted 2,382 14.95 Forfeited (43 ) 16.16 Vested (20 ) 16.16 Equity awards outstanding as of December 31, 2018 3,473 15.53 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts). Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Net income attributable to Successor/Predecessor $ 884 $ 154 $ 30 $ 19 Less: Undistributed earnings attributable to participating stockholders 8 — — — Net income attributable to common stockholders $ 876 $ 154 $ 30 $ 19 Net income per common share attributable to Successor/Predecessor: Basic $ 9.65 $ 1.57 $ 0.31 $ 0.19 Diluted $ 9.54 $ 1.55 $ 0.30 $ 0.19 Weighted average shares of common stock outstanding (in thousands): Basic 90,813 98,046 97,696 99,765 Dilutive effect of stock awards 178 1,091 1,107 880 Dilutive effect of participating securities 839 — — — Diluted 91,830 99,137 98,803 100,645 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis. Successor December 31, 2018 Total Fair Value Recurring Fair Value Measurements Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,630.8 $ — $ 1,630.8 $ — Mortgage loans held for investment (1) 119.1 — — 119.1 Forward mortgage servicing rights (1) 3,665.4 — — 3,665.4 Derivative financial instruments: IRLCs 47.6 — 47.6 — Forward MBS trades 0.1 — 0.1 — LPCs 1.7 — 1.7 — Eurodollar futures (2) — — — — Total assets $ 5,464.7 $ — $ 1,680.2 $ 3,784.5 Liabilities Derivative financial instruments Forward MBS trades $ 19.3 $ — $ 19.3 $ — LPCs 0.4 — 0.4 — Eurodollar futures (2) — — — — Mortgage servicing rights financing 31.7 — — 31.7 Excess spread financing 1,184.4 — — 1,184.4 Total liabilities $ 1,235.8 $ — $ 19.7 $ 1,216.1 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. Predecessor December 31, 2017 Total Fair Value Recurring Fair Value Measurements Level 1 Level 2 Level 3 Assets Mortgage loans held for sale (1) $ 1,890.8 $ — $ 1,890.8 $ — Forward mortgage servicing rights (1) 2,937.4 — — 2,937.4 Derivative financial instruments: IRLCs 59.3 — 59.3 — Forward MBS trades 2.4 — 2.4 — LPCs 0.9 — 0.9 — Eurodollar futures (2) — — — — Treasury futures 1.9 — 1.9 — Total assets $ 4,892.7 $ — $ 1,955.3 $ 2,937.4 Liabilities Derivative financial instruments Forward MBS trades $ 2.8 $ — $ 2.8 $ — LPCs 0.6 — 0.6 — Eurodollar futures (2) — — — — Treasury futures 1.4 — 1.4 — Mortgage servicing rights financing 9.5 — — 9.5 Excess spread financing 996.5 — — 996.5 Total liabilities $ 1,010.8 $ — $ 4.8 $ 1,006.0 (1) Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account. (2) Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates. |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The table below presents a reconciliation for all of the Company and Predecessor’s Level 3 assets and liabilities measured at fair value on a recurring basis. Successor Assets Liabilities For the Period August 1 - December 31, 2018 Forward mortgage servicing rights Mortgage loans held for investment Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 3,413 $ 125 $ 1,039 $ 26 Total gains or losses included in earnings (236 ) (3 ) 5 6 Payments received from borrowers — (5 ) — — Purchases, issuances, sales and settlements Purchases 479 — — — Issuances 120 — 255 — Sales (111 ) — — — Repayments — — (38 ) — Settlements — — (77 ) — Changes in fair value — 2 — — Balance - end of period $ 3,665 $ 119 $ 1,184 $ 32 Predecessor Assets Liabilities For the Period January 1 - July 31, 2018 Forward mortgage servicing rights Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 2,937 $ 996 $ 10 Total gains or losses included in earnings 166 81 16 Purchases, issuances, sales, repayments and settlements Purchases 144 — — Issuances 162 70 — Sales 4 — — Repayments — (3 ) Settlements — (105 ) — Balance - end of period $ 3,413 $ 1,039 $ 26 Predecessor Assets Liabilities Year ended December 31, 2017 Forward mortgage servicing rights Excess spread financing Mortgage servicing rights financing Balance - beginning of period $ 3,160 $ 1,214 $ 27 Total gains or losses included in earnings (432 ) 12 (17 ) Purchases, issuances, sales and settlements Purchases 66 — — Issuances 203 — — Sales (60 ) — — Repayments — (23 ) — Settlements — (207 ) — Balance - end of period $ 2,937 $ 996 $ 10 |
Fair Value, by Balance Sheet Grouping | The tables below present a summary of the estimated carrying amount and fair value of the Company and Predecessor’s financial instruments. Successor December 31, 2018 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 242 $ 242 $ — $ — Restricted cash 319 319 — — Advances and other receivables, net 1,194 — — 1,194 Reverse mortgage interests, net 7,934 — — 7,942 Mortgage loans held for sale 1,631 — 1,631 — Mortgage loans held for investment 119 — — 119 Derivative financial instruments 49 — 49 — Financial liabilities Unsecured senior notes 2,459 2,451 — — Advance facilities 595 — 595 — Warehouse facilities 2,349 — 2,349 — Mortgage servicing rights financing liability 32 — — 32 Excess spread financing 1,184 — — 1,184 Derivative financial instruments 20 — 20 — Participating interest financing 5,675 — — 5,672 HECM Securitization (HMBS) Trust 2017-2 231 — — 230 Trust 2018-1 284 — — 284 Trust 2018-2 250 — — 249 Trust 2018-3 326 — — 326 Nonrecourse debt - legacy assets 29 — — 28 Predecessor December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 215 $ 215 $ — $ — Restricted cash 360 360 — — Advances and other receivables, net 1,706 — — 1,706 Reverse mortgage interests, net 9,984 — — 10,164 Mortgage loans held for sale 1,891 — 1,891 — Mortgage loans held for investment, net 139 — — 139 Derivative financial instruments 65 — 65 — Financial liabilities Unsecured senior notes 1,874 1,912 — — Advance facilities 855 — 855 — Warehouse facilities 3,285 — 3,286 — Mortgage servicing rights financing liability 10 — — 10 Excess spread financing 996 — — 996 Derivative financial instruments 5 — 5 — Participating interest financing 7,167 — 7,353 — HECM Securitization (HMBS) Trust 2016-2 94 — — 112 Trust 2016-3 138 — — 155 Trust 2017-1 213 — — 225 Trust 2017-2 365 — — 371 Nonrecourse debt - legacy assets 37 — — 36 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) on continuing operations were as follows: Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Current Income Taxes Federal $ — $ (14 ) $ 52 $ 14 State — (1 ) 7 4 Total current income taxes — (15 ) 59 18 Deferred Income Taxes Federal (1,015 ) 54 (43 ) (4 ) State (6 ) 9 (3 ) (1 ) Total deferred income taxes (1,021 ) 63 (46 ) (5 ) Total provision for income taxes $ (1,021 ) $ 48 $ 13 $ 13 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense differs from the amounts computed by applying the U.S. federal corporate tax rate of 21.0% as follows for the years indicated. Successor Predecessor For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Tax (Benefit) Expense at Federal Statutory Rate $ (29 ) 21.0 % $ 42 21.0 % $ 15 35.0 % $ 10 35.0 % Effect of: State taxes, net of federal benefit (6 ) 4.2 % 8 3.8 % 1 1.9 % 1 5.0 % Non-controlling interests — — % — — % — (0.3 )% 1 3.4 % Decrease of federal valuation allowance (990 ) 720.0 % — — % (1 ) (1.2 )% — — % Deferred adjustments 3 (1.8 )% (1 ) (0.5 )% — — % 1 2.3 % Federal tax reform impact — — % — — % (5 ) (12.6 )% — — % Current payable adjustments — — % (1 ) (0.5 )% — — % 1 1.9 % Adjustments related to uncertain tax positions — — % — — % 1 2.4 % — — % Other, net 1 (1.0 )% — — % 2 3.7 % (1 ) (2.4 )% Total income tax (benefit) expense $ (1,021 ) 742.4 % $ 48 23.8 % $ 13 28.9 % $ 13 45.2 % |
Schedule of Deferred Tax Assets and Liabilities | Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: Successor Predecessor December 31, 2018 December 31, 2017 Deferred Tax Assets Effect of: Loss carryforwards (federal, state and capital) $ 1,334 $ 37 Excess interest expense 10 — Reverse mortgage interests 68 — Loss reserves 69 81 Reverse mortgage premiums 1 15 Rent expense 1 4 Restricted share based compensation 1 6 Accruals 14 10 Partnership interests 7 5 Reverse mortgage purchase discount 1 24 Goodwill and intangible assets 4 — Other, net 5 3 Total deferred tax assets 1,515 185 Deferred Tax Liabilities MSR amortization and mark-to-market, net (243 ) (174 ) Depreciation and amortization, net (12 ) (20 ) Prepaid assets (1 ) (2 ) Goodwill and intangible assets — (1 ) Total deferred tax liabilities (256 ) (197 ) Valuation allowance (295 ) (4 ) Net deferred tax assets (liabilities) $ 964 $ (16 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties. Successor Predecessor Unrecognized Tax Benefits For the Period August 1 - December 31, 2018 For the Period January 1 - July 31, 2018 Year ended December 31, 2017 Year ended December 31, 2016 Balance - beginning of period $ — $ 17 $ — $ — Increases in tax positions of current year — — 1 — Increases in tax positions of prior years — — 20 — Decreases in tax positions of prior years — (17 ) — — Settlements — — (4 ) — Balance - end of period $ — $ — $ 17 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule | Minimum future payments on noncancelable operating and capital leases are as follows: Year Ending December 31, Operating Leases Capital Leases 2019 $ 32 $ 2 2020 30 — 2021 24 — 2022 16 — 2023 and thereafter 46 — Total minimum lease payments 148 2 Less: Amounts representing interest — — Present value of minimum lease payments $ 148 $ 2 |
Business Segment Reporting (Tab
Business Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present financial information by segment. Successor For the Period August 1 - December 31, 2018 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues Service related, net $ 236 $ 24 $ 177 $ (19 ) $ 418 $ — $ 418 Net gain on mortgage loans held for sale — 157 — 19 176 — 176 Total revenues 236 181 177 — 594 — 594 Total expenses 303 155 178 — 636 71 707 Other income (expenses): Interest income 222 27 — — 249 7 256 Interest expense (173 ) (26 ) (1 ) — (200 ) (93 ) (293 ) Other income 6 5 1 — 12 1 13 Total other income (expenses), net 55 6 — — 61 (85 ) (24 ) Income (loss) before income tax expense (benefit) $ (12 ) $ 32 $ (1 ) $ — $ 19 $ (156 ) $ (137 ) Depreciation and amortization for property and equipment and intangible assets $ 9 $ 5 $ 5 $ — $ 19 $ 20 $ 39 Total assets $ 13,485 $ 4,866 $ 493 $ (3,772 ) $ 15,072 $ 1,901 $ 16,973 Predecessor For the Period January 1 - July 31, 2018 Servicing Originations Xome Eliminations Total Operating Corporate and Other Consolidated Revenues Service related, net $ 740 $ 36 $ 149 $ (25 ) $ 900 $ 1 $ 901 Net gain on mortgage loans held for sale — 270 — 25 295 — 295 Total revenues 740 306 149 — 1,195 1 1,196 Total expenses 474 245 123 — 842 103 945 Other income (expenses): Interest income 288 38 — — 326 7 333 Interest expense (268 ) (37 ) — — (305 ) (83 ) (388 ) Other income (expense) (1 ) — 9 — 8 (2 ) 6 Total other income (expenses), net 19 1 9 — 29 (78 ) (49 ) Income (loss) before income tax expense (benefit) $ 285 $ 62 $ 35 $ — $ 382 $ (180 ) $ 202 Depreciation and amortization for property and equipment and intangible assets $ 15 $ 7 $ 7 $ — $ 29 $ 4 $ 33 Total assets $ 14,578 $ 4,701 $ 425 $ (3,591 ) $ 16,113 $ 913 $ 17,026 Predecessor Year Ended December 31, 2017 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 766 $ 63 $ 291 $ (79 ) $ 1,041 $ 2 $ 1,043 Net gain on mortgage loans held for sale — 528 — 79 607 — 607 Total revenues 766 591 291 — 1,648 2 1,650 Total expenses 691 439 247 — 1,377 98 1,475 Other income (expenses): Interest income 527 55 — — 582 15 597 Interest expense (523 ) (54 ) — — (577 ) (154 ) (731 ) Other income (expense) (3 ) — 9 — 6 (3 ) 3 Total other income (expenses), net 1 1 9 — 11 (142 ) (131 ) Income (loss) before income tax expense (benefit) $ 76 $ 153 $ 53 $ — $ 282 $ (238 ) $ 44 Depreciation and amortization for property and equipment and intangible assets $ 23 $ 10 $ 14 $ — $ 47 $ 12 $ 59 Total assets $ 15,006 $ 4,935 $ 393 $ (3,117 ) $ 17,217 $ 819 $ 18,036 Predecessor Year Ended December 31, 2016 Servicing Originations Xome Eliminations Total Operating Segments Corporate and Other Consolidated Revenues Service related, net $ 753 $ 63 $ 423 $ (118 ) $ 1,121 $ 1 $ 1,122 Net gain on mortgage loans held for sale — 675 — 118 793 — 793 Total revenues 753 738 423 — 1,914 1 1,915 Total expenses 634 527 354 — 1,515 129 1,644 Other income (expenses): Interest income 347 63 — — 410 15 425 Interest expense (442 ) (58 ) — — (500 ) (165 ) (665 ) Other expense — (1 ) — — (1 ) (1 ) (2 ) Total other income (expenses), net (95 ) 4 — — (91 ) (151 ) (242 ) Income (loss) before income tax expense (benefit) $ 24 $ 215 $ 69 $ — $ 308 $ (279 ) $ 29 Depreciation and amortization for property and equipment and intangible assets $ 23 $ 11 $ 21 $ — $ 55 $ 8 $ 63 Total assets $ 16,189 $ 4,563 $ 349 $ (2,448 ) $ 18,653 $ 940 $ 19,593 |
Guarantor Financial Statement_2
Guarantor Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Consolidating Balance Sheets | (1) Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes. MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor (Subsidiaries of Issuer) Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 193 $ 1 $ 48 $ — $ 242 Restricted cash — 186 — 133 — 319 Mortgage servicing rights — 3,644 — 32 — 3,676 Advances and other receivables, net — 1,194 — — — 1,194 Reverse mortgage interests, net — 6,770 — 1,164 — 7,934 Mortgage loans held for sale at fair value — 1,631 — — — 1,631 Mortgage loans held for investment, net — 1 — 118 — 119 Property and equipment, net — 84 — 12 — 96 Deferred tax asset, net 973 — — (6 ) — 967 Other assets — 660 202 621 (688 ) 795 Investment in subsidiaries 2,820 601 — — (3,421 ) — Total assets $ 3,793 $ 14,964 $ 203 $ 2,122 $ (4,109 ) $ 16,973 Liabilities and Stockholders’ Equity Unsecured senior notes, net $ 1,660 $ 799 $ — $ — $ — $ 2,459 Advance facilities, net — 90 — 505 — 595 Warehouse facilities, net — 2,349 — — — 2,349 Payables and accrued liabilities 49 1,413 1 80 1,543 MSR related liabilities - nonrecourse at fair value — 1,197 — 19 — 1,216 Mortgage servicing liabilities — 71 — — — 71 Other nonrecourse debt, net — 5,676 — 1,119 — 6,795 Payables to affiliates 139 549 — — (688 ) — Total liabilities 1,848 12,144 1 1,723 (688 ) 15,028 Total stockholders’ equity 1,945 2,820 202 399 (3,421 ) 1,945 Total liabilities and stockholders’ equity $ 3,793 $ 14,964 $ 203 $ 2,122 $ (4,109 ) $ 16,973 (1) Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Assets Cash and cash equivalents $ — $ 195 $ 1 $ 19 $ — $ 215 Restricted cash — 228 — 132 — 360 Mortgage servicing rights — 2,910 — 31 — 2,941 Advances and other receivables, net — 1,706 — — — 1,706 Reverse mortgage interests, net — 9,110 — 874 — 9,984 Mortgage loans held for sale at fair value — 1,891 — — — 1,891 Mortgage loans held for investment, net — 1 — 138 — 139 Property and equipment, net — 102 — 19 — 121 Other assets — 585 182 779 (867 ) 679 Investment in subsidiaries 1,846 522 — — (2,368 ) — Total assets $ 1,846 $ 17,250 $ 183 $ 1,992 $ (3,235 ) $ 18,036 Liabilities and Stockholders’ Equity Unsecured senior notes, net $ — $ 1,874 $ — $ — $ — $ 1,874 Advance facilities, net — 106 — 749 — 855 Warehouse facilities, net — 3,285 — — — 3,285 Payables and accrued liabilities — 1,202 1 36 — 1,239 MSR related liabilities - nonrecourse at fair value — 987 — 19 — 1,006 Mortgage servicing liabilities — 41 — — — 41 Other nonrecourse debt, net — 7,167 — 847 — 8,014 Payables to affiliates 124 742 — 1 (867 ) — Total liabilities 124 15,404 1 1,652 (867 ) 16,314 Total stockholders’ equity 1,722 1,846 182 340 (2,368 ) 1,722 Total liabilities and stockholders’ equity $ 1,846 $ 17,250 $ 183 $ 1,992 $ (3,235 ) $ 18,036 (1) Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described. |
Consolidating Statements of Operations | MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 233 $ 9 $ 176 $ — $ 418 Net gain on mortgage loans held for sale — 175 — 1 — 176 Total revenues — 408 9 177 — 594 Expenses: Salaries, wages benefits 1 258 2 76 — 337 General and administrative — 262 1 107 — 370 Total expenses 1 520 3 183 — 707 Other income (expenses): Interest income — 237 — 19 — 256 Interest expense (64 ) (211 ) — (18 ) — (293 ) Other income (expenses) 1 11 — 1 — 13 Gain (loss) from subsidiaries (44 ) 2 — — 42 — Total other income (expenses), net (107 ) 39 — 2 42 (24 ) (Loss) income before income tax expense (108 ) (73 ) 6 (4 ) 42 (137 ) Less: Income tax benefit (992 ) (29 ) — — — (1,021 ) Net income (loss) 884 (44 ) 6 (4 ) 42 884 Less: Net income attributable to non-controlling interests — — — — — — Net income (loss) attributable to Mr. Cooper $ 884 $ (44 ) $ 6 $ (4 ) $ 42 $ 884 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 732 $ 16 $ 153 $ — $ 901 Net gain on mortgage loans held for sale — 295 — — — 295 Total revenues — 1,027 16 153 — 1,196 Expenses: Salaries, wages benefits — 359 3 64 — 426 General and administrative 27 427 1 64 — 519 Total expenses 27 786 4 128 — 945 Other income (expenses): Interest income — 299 — 34 — 333 Interest expense — (364 ) — (24 ) — (388 ) Other income (expenses) — (3 ) — 9 — 6 Gain (loss) from subsidiaries 181 56 — — (237 ) — Total other income (expenses), net 181 (12 ) — 19 (237 ) (49 ) Income (loss) before income tax expense 154 229 12 44 (237 ) 202 Less: Income tax expense — 48 — — — 48 Net income (loss) 154 181 12 44 (237 ) 154 Less: Net income attributable to non-controlling interests — — — — — — Net income (loss) attributable to Nationstar $ 154 $ 181 $ 12 $ 44 $ (237 ) $ 154 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2016 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor (Subsidiaries of Issuer) Eliminations Consolidated Revenues: Service related, net $ — $ 658 $ 33 $ 431 $ — $ 1,122 Net gain on mortgage loans held for sale — 764 — 29 — 793 Total revenues — 1,422 33 460 — 1,915 Expenses: Salaries wages and benefits — 601 5 207 — 813 General and administrative — 617 8 206 — 831 Total expenses — 1,218 13 413 — 1,644 Other income (expenses): Interest income — 375 — 50 — 425 Interest expense — (592 ) — (73 ) — (665 ) Other expense — (2 ) — — — (2 ) Gain (loss) from subsidiaries 19 44 — — (63 ) — Total other income (expenses), net 19 (175 ) — (23 ) (63 ) (242 ) Income (loss) before income tax expense 19 29 20 24 (63 ) 29 Less: Income tax expense — 13 — — — 13 Net income (loss) 19 16 20 24 (63 ) 16 Less: Net income (loss) attributable to non-controlling interests — (3 ) — — — (3 ) Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Revenues: Service related, net $ — $ 717 $ 28 $ 298 $ — $ 1,043 Net gain on mortgage loans held for sale — 606 — 1 — 607 Total revenues — 1,323 28 299 — 1,650 Expenses: Salaries, wages and benefits — 605 5 132 — 742 General and administrative — 590 11 132 — 733 Total expenses — 1,195 16 264 — 1,475 Other income (expenses): Interest income — 544 — 53 — 597 Interest expense — (675 ) — (56 ) — (731 ) Other expenses — (6 ) — 9 — 3 Gain (loss) from subsidiaries 30 53 — — (83 ) — Total other income (expenses), net 30 (84 ) — 6 (83 ) (131 ) Income (loss) before income tax expense 30 44 12 41 (83 ) 44 Less: Income tax expense — 13 — — — 13 Net income (loss) 30 31 12 41 (83 ) 31 Less: Net loss attributable to non-controlling interests — 1 — — — 1 Net income (loss) attributable to Nationstar $ 30 $ 30 $ 12 $ 41 $ (83 ) $ 30 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
Consolidating Statements of Cash Flows | MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 Predecessor Nationstar Issuer (1) Guarantor Non- Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 19 $ 19 $ 20 $ 24 $ (63 ) $ 19 Adjustments to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — (5 ) — — — (5 ) Net loss attributable to non-controlling interests — (3 ) — — — (3 ) (Gain) loss from subsidiaries (19 ) (44 ) — — 63 — Net gain on mortgage loans held for sale — (764 ) — (29 ) — (793 ) Reverse mortgage loan interest income — (344 ) — — — (344 ) Loss on sale of assets — 2 — — — 2 Loss on impairment of assets — 25 — — — 25 Provision for servicing reserves — 108 — — — 108 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 484 — — — 484 Fair value changes in excess spread financing — 3 — 22 — 25 Fair value changes in mortgage servicing rights financing liability — (42 ) — — — (42 ) Amortization of premiums, net of discount accretion — (9,907 ) — 9,971 — 64 Depreciation and amortization for property and equipment and intangible assets — 43 — 20 — 63 Share-based compensation — 15 — 6 — 21 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,432 ) — — — (1,432 ) Mortgage loans originated and purchased for sale, net of fees — (19,616 ) — (794 ) — (20,410 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 31,024 — (8,993 ) — 22,031 Excess tax benefit from share based compensation — 4 — — — 4 Changes in assets and liabilities: Advances and other receivables, net — 582 — — — 582 Reverse mortgage interests, net — 607 — (35 ) — 572 Other assets 117 (707 ) (21 ) 586 — (25 ) Payables and accrued liabilities — 46 1 (21 ) — 26 Net cash attributable to operating activities 117 98 — 757 — 972 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2016 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non- Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (55 ) 1 (8 ) — (62 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (120 ) — (24 ) — (144 ) Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables — (3,600 ) — — — (3,600 ) Proceeds on sale of forward and reverse mortgage servicing rights — 68 — — — 68 Net cash attributable to investing activities — (3,707 ) 1 (32 ) — (3,738 ) Financing Activities Increase (decrease) in warehouse facilities — 637 — (108 ) — 529 Increase (decrease) in advance facilities — (51 ) — (499 ) — (550 ) Proceeds from issuance of HECM securitizations — — — 728 — 728 Repayment of HECM securitizations — — — (713 ) — (713 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 4,124 — — — 4,124 Repayment of participating interest financing in reverse mortgage interests — (1,185 ) — — — (1,185 ) Proceeds from issuance of excess spread financing — 155 — — — 155 Repayment of excess spread financing — (198 ) — — — (198 ) Repayment of nonrecourse debt - legacy assets — — — (18 ) — (18 ) Repurchase of unsecured senior notes — (40 ) — — — (40 ) Repurchase of common stock (114 ) — — — — (114 ) Excess tax (deficiency) benefit from share based compensation — (4 ) — — — (4 ) Surrender of shares relating to stock vesting (3 ) — — — — (3 ) Debt financing costs — (13 ) — — — (13 ) Net cash attributable to financing activities (117 ) 3,425 — (610 ) — 2,698 Net increase/(decrease) in cash — (184 ) 1 115 — (68 ) Cash and cash equivalents - beginning of year — 796 1 148 — 945 Cash and cash equivalents - end of year $ — $ 612 $ 2 $ 263 $ — $ 877 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income attributable to Nationstar $ 30 $ 30 $ 12 $ 41 $ (83 ) $ 30 Adjustments to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — (46 ) — — — (46 ) Net income attributable to non-controlling interests — 1 — — — 1 (Gain) loss from subsidiaries (30 ) (53 ) — — 83 — Net gain on mortgage loans held for sale — (606 ) — (1 ) — (607 ) Reverse mortgage loan interest income — (490 ) — — — (490 ) (Gain) Loss on sale of assets — 1 — (9 ) — (8 ) Provision for servicing reserves — 148 — — — 148 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 430 — — — 430 Fair value changes in excess spread financing — 15 — (3 ) — 12 Fair value changes in mortgage servicing rights financing liability — (17 ) — — — (17 ) Amortization of premiums, net of discount accretion — 73 — 9 — 82 Depreciation and amortization for property and equipment and intangible assets — 45 — 14 — 59 Share-based compensation — 12 — 5 — 17 Other loss — 6 — — — 6 Repurchases of forward loans assets out of Ginnie Mae securitizations — (1,249 ) — — — (1,249 ) Mortgage loans originated and purchased for sale, net of fees — (19,159 ) — — — (19,159 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 20,760 — 16 — 20,776 Excess tax (deficiency) from share based compensation — (1 ) — — — (1 ) Changes in assets and liabilities: Advances and other receivables, net — (30 ) — — — (30 ) Reverse mortgage interests, net — 1,829 — (157 ) — 1,672 Other assets 4 (103 ) (12 ) 36 — (75 ) Payables and accrued liabilities — (179 ) (1 ) (12 ) — (192 ) Net cash attributable to operating activities 4 1,417 (1 ) (61 ) — 1,359 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS YEAR ENDED DECEMBER 31, 2017 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (37 ) — (5 ) — (42 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (56 ) — (7 ) — (63 ) Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables — 16 — — — 16 Proceeds on sale of forward and reverse mortgage servicing rights — 71 — — — 71 Proceeds on sale of assets — 16 — — — 16 Purchase of investment — (4 ) — — — (4 ) Net cash attributable to investing activities — 6 — (12 ) — (6 ) Financing Activities Increase in warehouse facilities — 863 — — — 863 Decrease in advance facilities — (81 ) — (160 ) — (241 ) Proceeds from issuance of HECM securitizations — — — 707 — 707 Repayment of HECM securitizations — (1 ) — (571 ) — (572 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 575 — — — 575 Repayment of participating interest financing in reverse mortgage interests — (2,597 ) — — — (2,597 ) Repayment of excess spread financing — (23 ) — — — (23 ) Settlement of excess spread financing — (207 ) — — — (207 ) Repayment of nonrecourse debt - legacy assets — — — (15 ) — (15 ) Repurchase of unsecured senior notes — (123 ) — — — (123 ) Surrender of shares relating to stock vesting (4 ) — — — — (4 ) Debt financing costs — (13 ) — — — (13 ) Dividends to non-controlling interests — (5 ) — — — (5 ) Net cash attributable to financing activities (4 ) (1,612 ) — (39 ) — (1,655 ) Net increase (decrease) in cash and cash equivalents — (189 ) (1 ) (112 ) — (302 ) Cash and cash equivalents - beginning of year — 612 2 263 — 877 Cash and cash equivalents - end of year $ — $ 423 $ 1 $ 151 $ — $ 575 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Successor $ 884 $ (44 ) $ 6 $ (4 ) $ 42 $ 884 Adjustment to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes (971 ) (49 ) — (1 ) — (1,021 ) (Gain) loss from subsidiaries 44 (2 ) — — (42 ) — Net gain on mortgage loans held for sale — (175 ) — (1 ) — (176 ) Reverse mortgage loan interest income — (206 ) — — — (206 ) Provision for servicing reserves — 38 — — — 38 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — 225 — — — 225 Fair value changes in excess spread financing — 6 — (1 ) — 5 Fair value changes in mortgage servicing rights financing liability — 6 — — — 6 Fair value changes in mortgage loans held for investment — — — (2 ) — (2 ) Amortization of premiums, net of discount accretion 3 7 — (1 ) — 9 Depreciation and amortization for property and equipment and intangible assets — 33 — 6 — 39 Share-based compensation — 1 — 1 — 2 Other (gain) loss — 1 — (1 ) — — Repurchases of forward loans assets out of Ginnie Mae securitizations — (527 ) — — — (527 ) Mortgage loans originated and purchased for sale, net of fees — (8,888 ) — — — (8,888 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 9,389 — 16 — 9,405 Changes in assets and liabilities: Advances and other receivables, net — 43 — — — 43 Reverse mortgage interests, net — 1,569 — (25 ) — 1,544 Other assets 1 (18 ) (6 ) (38 ) — (61 ) Payables and accrued liabilities 28 (130 ) — 34 — (68 ) Net cash attributable to operating activities (11 ) 1,279 — (17 ) — 1,251 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018 (Continued) Successor Mr. Cooper Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Acquisition, net of cash acquired — — — (33 ) — (33 ) Property and equipment additions, net of disposals — (18 ) — 3 — (15 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (313 ) — 6 — (307 ) Proceeds on sale of forward and reverse mortgage servicing rights — 105 — — — 105 Net cash attributable to investing activities — (226 ) — (24 ) — (250 ) Financing Activities Increase in warehouse facilities — (351 ) — — — (351 ) Decrease in advance facilities — 40 — 5 — 45 Proceeds from issuance of HECM securitizations — — — 343 — 343 Repayment of HECM securitizations — — — (374 ) — (374 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 112 — — — 112 Repayment of participating interest financing in reverse mortgage interests — (943 ) — — — (943 ) Proceeds from issuance of excess spread financing — 255 — — — 255 Repayment of excess spread financing — (38 ) — — — (38 ) Settlement of excess spread financing — (77 ) — — — (77 ) Repayment of nonrecourse debt - legacy assets — — — (6 ) — (6 ) Redemption and repayment of unsecured senior notes — (1,030 ) — — — (1,030 ) Proceeds from non-controlling interests — 3 — — — 3 Debt financing costs — (3 ) — 1 — (2 ) Net cash attributable to financing activities — (2,032 ) — (31 ) — (2,063 ) Net decrease in cash and cash equivalents (11 ) (979 ) — (72 ) — (1,062 ) Cash and cash equivalents - beginning of period 11 1,358 1 253 — 1,623 Cash and cash equivalents - end of period $ — $ 379 $ 1 $ 181 $ — $ 561 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Operating Activities Net income (loss) attributable to Nationstar $ 154 $ 181 $ 12 $ 44 $ (237 ) $ 154 Adjustment to reconcile net income (loss) to net cash attributable to operating activities: Provision for deferred income taxes — 63 — — — 63 (Gain) loss from subsidiaries (181 ) (56 ) — — 237 — Net gain on mortgage loans held for sale — (295 ) — — — (295 ) Reverse mortgage loan interest income — (274 ) — — — (274 ) (Gain) on sale of assets — — — (9 ) — (9 ) MSL related increased obligation — 59 — — — 59 Provision for servicing reserves — 70 — — — 70 Fair value changes and amortization/accretion of mortgage servicing rights/liabilities — (178 ) — 1 — (177 ) Fair value changes in excess spread financing — 81 — — — 81 Fair value changes in mortgage servicing rights financing liability — 16 — — — 16 Amortization of premiums, net of discount accretion — 11 — (3 ) — 8 Depreciation and amortization for property and equipment and intangible assets — 26 — 7 — 33 Share-based compensation — 16 — 1 — 17 Other loss — 3 — — — 3 Repurchases of forward loans assets out of Ginnie Mae securitizations — (544 ) — — — (544 ) Mortgage loans originated and purchased for sale, net of fees — (12,328 ) — — — (12,328 ) Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment — 13,381 — 11 — 13,392 Changes in assets and liabilities: Advances and other receivables, net — 377 — — — 377 Reverse mortgage interests, net — 1,866 — (265 ) — 1,601 Other assets 9 (294 ) (12 ) 256 — (41 ) Payables and accrued liabilities 27 65 — (4 ) — 88 Net cash attributable to operating activities 9 2,246 — 39 — 2,294 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. MR COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD JANUARY 1 TO JULY 31, 2018 (Continued) Predecessor Nationstar Issuer (1) Guarantor Non-Guarantor Eliminations Consolidated Investing Activities Property and equipment additions, net of disposals — (35 ) — (5 ) — (40 ) Purchase of forward mortgage servicing rights, net of liabilities incurred — (127 ) — (7 ) — (134 ) Net payment related to acquisition of HECM related receivables — (1 ) — — — (1 ) Proceeds on sale of assets — — — 13 — 13 Net cash attributable to investing activities — (163 ) — 1 — (162 ) Financing Activities Decrease in warehouse facilities — (585 ) — — — (585 ) Decrease in advance facilities — (55 ) — (250 ) — (305 ) Proceeds from issuance of HECM securitizations — — — 759 — 759 Repayment of HECM securitizations — — — (448 ) — (448 ) Proceeds from issuance of participating interest financing in reverse mortgage interests — 208 — — — 208 Repayment of participating interest financing in reverse mortgage interests — (1,599 ) — — — (1,599 ) Proceeds from issuance of excess spread financing — 70 — — — 70 Repayment of excess spread financing — (3 ) — — — (3 ) Settlement of excess spread financing — (105 ) — — — (105 ) Repayment of nonrecourse debt - legacy assets — — — (7 ) — (7 ) Repurchase of unsecured senior notes — (62 ) — — — (62 ) Repurchase of common stock — — — — — — Surrender of shares relating to stock vesting (9 ) — — — — (9 ) Debt financing costs — (24 ) — — — (24 ) Dividends to non-controlling interests — (1 ) — — — (1 ) Net cash attributable to financing activities (9 ) (2,156 ) — 54 — (2,111 ) Net decrease in cash and cash equivalents — (73 ) — 94 — 21 Cash and cash equivalents - beginning of period — 423 1 151 — 575 Cash and cash equivalents - end of period $ — $ 350 $ 1 $ 245 $ — $ 596 (1) Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplementary Data | The unaudited quarterly consolidated results of operations are summarized in the tables below. Predecessor Successor Quarter ended March 31, 2018 Quarter ended June 31, 2018 For the Period July 1 - July 31, 2018 For the Period August 1 - September 30, 2018 Quarter ended December 31, 2018 Service related revenue, net $ 464 $ 317 $ 120 $ 259 $ 159 Net gain on mortgage loans held for sale 124 127 44 83 93 Total revenues 588 444 164 342 252 Total expenses 364 339 242 275 432 Total other income (expense), net (18 ) (26 ) (5 ) (26 ) 2 Income (loss) before income tax expense (benefit) 206 79 (83 ) 41 (178 ) Less: Income tax expense (benefit) 46 21 (19 ) (979 ) (42 ) Net income (loss) 160 58 (64 ) 1,020 (136 ) Less: Net income attributable to non-controlling interests — — — — — Net income (loss) attributable to Predecessor/Successor 160 58 (64 ) 1,020 (136 ) Less: Undistributed earnings attributable to participating stockholders (1) — — — 9 — Net income (loss) attributable to common stockholders $ 160 $ 58 $ (64 ) $ 1,011 $ (136 ) Net income (loss) per common share attributable to Predecessor/Successor: Basic $ 1.63 $ 0.59 $ (0.65 ) $ 11.13 $ (1.50 ) Diluted $ 1.61 $ 0.59 $ (0.65 ) $ 10.99 $ (1.50 ) (1) Undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total. Predecessor Year Ended December 31, 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Service related revenue, net $ 283 $ 213 $ 252 $ 295 Net gain on mortgage loans held for sale 144 167 154 142 Total revenues 427 380 406 437 Total expenses 372 369 368 366 Total other income (expense), net (52 ) (40 ) (26 ) (13 ) Income (loss) before income tax expense (benefit) 3 (29 ) 12 58 Less: Income tax expense (benefit) 1 (10 ) 5 17 Net income (loss) 2 (19 ) 7 41 Less: Net income (loss) attributable to non-controlling interests — 1 — — Net income (loss) attributable to Nationstar $ 2 $ (20 ) $ 7 $ 41 Net income (loss) per common share attributable to Predecessor: Basic $ 0.02 $ (0.20 ) $ 0.07 $ 0.42 Diluted $ 0.02 $ (0.20 ) $ 0.07 $ 0.41 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Details) $ / shares in Units, $ in Millions | Oct. 10, 2018$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Oct. 09, 2018$ / sharesshares |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reverse stock split ratio | 0.0833 | ||
Shares outstanding (in shares) | shares | 90,811,562 | 1,089,738,735 | |
Shares authorized (shares) | shares | 300,000,000 | 300,000,000 | 3,500,000,000 |
Par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.00001 |
Minimum | ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liabilities | $ 120 | ||
ROU asset | 120 | ||
Maximum | ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liabilities | 135 | ||
ROU asset | $ 135 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||||
Advertising costs | $ 17 | $ 33 | $ 57 | $ 58 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ / shares in Units, $ in Millions | Oct. 10, 2018 | Aug. 01, 2018USD ($) | Jul. 13, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($)$ / sharesshares | Jul. 12, 2018USD ($) |
Business Acquisition [Line Items] | |||||||||
Reverse stock split ratio | 0.0833 | ||||||||
Preliminary goodwill | $ 23 | $ 23 | $ 23 | $ 10 | |||||
Goodwill acquired | 13 | ||||||||
WMIH Corp And Wand Merger Corporation | |||||||||
Business Acquisition [Line Items] | |||||||||
Right to receive in cash (in dollars per share) | $ / shares | $ 18 | ||||||||
Right to receive in shares (shares) | shares | 12.7793 | ||||||||
Acquisition costs | $ 92 | ||||||||
Debt issuance costs | 38 | ||||||||
Nationstar Mortgage Holdings Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | $ 1,226 | ||||||||
Estimated consideration | 1,777 | ||||||||
Stock consideration | 551 | ||||||||
Preliminary goodwill | 10 | ||||||||
Bargain purchase amount | $ 2 | ||||||||
Decrease in reverse mortgage interests | 12 | ||||||||
Increase (decrease) in goodwill | (12) | ||||||||
Intangible assets | 103 | $ 0 | |||||||
Nationstar Mortgage Holdings Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition costs | 10 | 10 | 10 | $ 27 | |||||
Xome Holdings LLC | Assurant Mortgage Solutions Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash consideration | 38 | ||||||||
Contingent consideration | 15 | 15 | 15 | ||||||
Estimated consideration | 53 | ||||||||
Preliminary goodwill | 13 | 13 | 13 | ||||||
Increase (decrease) in goodwill | 10 | ||||||||
Intangible assets acquired | 23 | ||||||||
Goodwill acquired | 3 | 0 | |||||||
Increase in intangible assets | $ 1 | ||||||||
Intangible assets | $ 24 | $ 24 | $ 24 | ||||||
8.125% Due July 2023 | |||||||||
Business Acquisition [Line Items] | |||||||||
Face amount | $ 950 | ||||||||
Interest rate | 8.125% | ||||||||
9.125% Due July 2026 | |||||||||
Business Acquisition [Line Items] | |||||||||
Face amount | $ 750 | ||||||||
Interest rate | 9.125% | ||||||||
KKR Capital Markets LLC | WMIH Corp And Wand Merger Corporation | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition costs | 25 | ||||||||
KCM | WMIH Corp And Wand Merger Corporation | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition costs | $ 7 | ||||||||
Payment for conversion fee | $ 8 |
Acquisitions - Aggregate Purcha
Acquisitions - Aggregate Purchase Price (Details) - Nationstar Mortgage Holdings Inc. $ / shares in Units, shares in Millions, $ in Millions | Aug. 01, 2018USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Converted WMIH common shares (in shares) | shares | 394 |
Price per share (in dollars per share) | $ / shares | $ 1.398 |
Purchase price from common stock issued | $ 551 |
Purchase price from cash payment | 1,226 |
Total purchase price | $ 1,777 |
Acquisitions - Assets Acquired
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Aug. 01, 2018 | Dec. 31, 2018 | Jul. 31, 2018 |
Liabilities: | |||
Preliminary goodwill | $ 23 | $ 10 | |
Nationstar Mortgage Holdings Inc. | |||
Assets: | |||
Cash and cash equivalent | $ 166 | ||
Restricted cash | 430 | ||
Mortgage servicing rights | 3,428 | ||
Advances and other receivables | 1,262 | ||
Reverse mortgage interests | 9,213 | ||
Mortgage loans held for sale | 1,514 | ||
Mortgage loans held for investment | 125 | ||
Property and equipment | 96 | ||
Derivative financial instruments | 64 | ||
Other assets | 546 | ||
Fair value of assets acquired | 16,844 | ||
Liabilities: | |||
Unsecured senior notes | 1,830 | ||
Advance facilities | 551 | ||
Warehouse facilities | 2,701 | ||
Payables and accrued liabilities | 1,361 | ||
MSR related liabilities—nonrecourse | 1,065 | ||
Mortgage servicing liabilities | 86 | ||
Derivative financial instruments | 3 | ||
Other nonrecourse debt | 7,583 | ||
Fair value of liabilities assumed | 15,180 | ||
Total fair value of net tangible assets acquired | 1,664 | ||
Intangible assets | 103 | $ 0 | |
Preliminary goodwill | 10 | ||
Total | $ 1,777 | ||
Technology | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Useful Life, Assets acquired | 6 years | ||
Intangible assets acquired | $ 61 | ||
Customer relationships | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Useful Life, Assets acquired | 5 years | ||
Intangible assets acquired | $ 8 | ||
Technology | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Intangible assets acquired | $ 11 | ||
Internally developed software | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Useful Life, Assets acquired | 2 years | ||
Intangible assets acquired | $ 23 | ||
Minimum | Technology | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Useful Life, Assets acquired | 3 years | ||
Maximum | Technology | Nationstar Mortgage Holdings Inc. | |||
Liabilities: | |||
Useful Life, Assets acquired | 5 years |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Business Combinations [Abstract] | |
Pro forma total revenues | $ 1,790 |
Pro forma net income | $ 16 |
Advances and Other Receivable_3
Advances and Other Receivables, Net - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Servicing advances, net of $205 and $0 discount, respectively | $ 952 | ||
Receivables from agencies, investors and prior servicers, net of $48 and $0 discount, respectively | 289 | ||
Reserves | (47) | ||
Total advances and other receivables, net | 1,194 | ||
Servicing advances discount | 205 | $ 246 | |
Receivable discount | $ 48 | $ 56 | |
Predecessor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Servicing advances, net of $205 and $0 discount, respectively | $ 1,599 | ||
Receivables from agencies, investors and prior servicers, net of $48 and $0 discount, respectively | 391 | ||
Reserves | (284) | ||
Total advances and other receivables, net | 1,706 | ||
Servicing advances discount | 0 | ||
Receivable discount | $ 0 |
Mortgage Servicing Rights and_3
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Mortgage Servicing Rights [Line Items] | ||
Forward MSRs - fair value | $ 3,665 | |
Mortgage servicing rights | 3,676 | |
Mortgage servicing liabilities - amortized cost | 71 | |
MSR related liabilities - nonrecourse | 1,216 | |
Mortgage Servicing Rights | ||
Mortgage Servicing Rights [Line Items] | ||
Forward MSRs - fair value | 3,665 | |
Reverse MSRs - amortized cost | 11 | |
Mortgage servicing rights | 3,676 | |
Mortgage servicing liabilities - amortized cost | 71 | |
Mortgage Servicing Right Liability | ||
Mortgage Servicing Rights [Line Items] | ||
Excess spread financing - fair value | 1,184 | |
Mortgage servicing rights financing - fair value | 32 | |
MSR related liabilities - nonrecourse | $ 1,216 | |
Predecessor | ||
Mortgage Servicing Rights [Line Items] | ||
Forward MSRs - fair value | $ 2,937 | |
Mortgage servicing rights | 2,941 | |
Mortgage servicing liabilities - amortized cost | 41 | |
Mortgage servicing rights financing - fair value | 9.5 | |
MSR related liabilities - nonrecourse | 1,006 | |
Predecessor | Mortgage Servicing Rights | ||
Mortgage Servicing Rights [Line Items] | ||
Forward MSRs - fair value | 2,937 | |
Reverse MSRs - amortized cost | 4 | |
Mortgage servicing rights | 2,941 | |
Mortgage servicing liabilities - amortized cost | 41 | |
Predecessor | Mortgage Servicing Right Liability | ||
Mortgage Servicing Rights [Line Items] | ||
Excess spread financing - fair value | 996 | |
Mortgage servicing rights financing - fair value | 10 | |
MSR related liabilities - nonrecourse | $ 1,006 |
Advances and Other Receivable_4
Advances and Other Receivables, Net - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 01, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Provision for inactive and liquidated loans that are no longer part of the MSR portfolio | $ 25 | $ 38 | $ 72 | $ 81 | |
Receivable discount | 48 | $ 56 | |||
Receivables From Prior Servicers, Forward Loan Portfolio | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accounts receivable | $ 94 | $ 134 | |||
WMIH Corp And Wand Merger Corporation | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Receivable discount | $ 302 |
Mortgage Servicing Rights and_4
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value - end of period | $ 3,665 | ||
Mortgage Servicing Rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value - beginning of period | 3,413 | ||
Servicing retained from mortgage loans sold | 120 | ||
Purchases of servicing rights | 479 | ||
Sales of servicing assets | (111) | ||
Changes in valuation inputs or assumptions used in the valuation model | (123) | ||
Other changes in fair value | (113) | ||
Fair value - end of period | 3,665 | $ 3,413 | |
Predecessor | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value - beginning of period | 2,937 | ||
Fair value - end of period | $ 2,937 | ||
Predecessor | Mortgage Servicing Rights | |||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||
Fair value - beginning of period | $ 3,413 | 2,937 | 3,160 |
Servicing retained from mortgage loans sold | 162 | 203 | |
Purchases of servicing rights | 144 | 66 | |
Sales of servicing assets | 4 | (60) | |
Changes in valuation inputs or assumptions used in the valuation model | 330 | (101) | |
Other changes in fair value | (164) | (331) | |
Fair value - end of period | $ 3,413 | $ 2,937 |
Advances and Other Receivable_5
Advances and Other Receivables, Net - Advances and Other Receivable Reserves (Details) - Reserves for Advances and Other Receivables - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance - beginning of period | $ 0 | ||
Provision and other additions | 47 | ||
Write-offs | 0 | ||
Balance - end of period | 47 | $ 0 | |
Predecessor | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance - beginning of period | $ 297 | 284 | $ 184 |
Provision and other additions | 69 | 142 | |
Write-offs | (56) | (42) | |
Balance - end of period | $ 297 | $ 284 |
Mortgage Servicing Rights and_5
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing liabilities | $ 71,000,000 | $ 71,000,000 | ||
MSL accretion | 15,000,000 | |||
Mortgage servicing rights at fair value | 3,665,000,000 | 3,665,000,000 | ||
Forward MSRs Sold | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 10,746,000,000 | $ 1,203,000,000 | 10,746,000,000 | $ 2,123,000,000 |
Forward MSRs Sold, Subservicing Retained | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 1,000,000 | 364,000,000 | ||
Reverse mortgage interests, net | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 28,415,000,000 | 28,415,000,000 | 35,112,000,000 | |
Mortgage Servicing Right Liability | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Impairment | 56,000,000 | (3,000,000) | ||
MSL accretion | 15,000,000 | 11,000,000 | 4,000,000 | |
Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 295,481,000,000 | 295,481,000,000 | ||
Mortgage servicing liabilities | 71,000,000 | 71,000,000 | ||
Impairment | 0 | 0 | ||
Reverse MSRs - amortized cost | 11,000,000 | 11,000,000 | ||
Mortgage servicing rights at fair value | 3,665,000,000 | 3,665,000,000 | ||
Fair value of servicing liability, amortized cost | 53,000,000 | 53,000,000 | 34,000,000 | |
Reverse Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Impairment | $ (4,000,000) | |||
Amortization | 4,000,000 | 2,000,000 | ||
Mortgage servicing rights at fair value | $ 11,000,000 | $ 11,000,000 | 29,000,000 | |
Predecessor | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage servicing liabilities | 41,000,000 | |||
Mortgage servicing rights at fair value | 2,937,000,000 | |||
Predecessor | Mortgage Servicing Rights | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 281,380,000,000 | |||
Mortgage servicing liabilities | 41,000,000 | |||
Reverse MSRs - amortized cost | 4,000,000 | |||
Mortgage servicing rights at fair value | $ 2,937,000,000 |
Advances and Other Receivable_6
Advances and Other Receivables, Net - Purchase Discount (Details) $ in Millions | 5 Months Ended |
Dec. 31, 2018USD ($) | |
Servicing Advances | |
Balance - beginning of period | $ 246 |
Accretion | (41) |
Balance - end of period | 205 |
Receivables from Agencies, Investors and Prior Servicers | |
Balance - beginning of period | 56 |
Accretion | (8) |
Balance - end of period | $ 48 |
Mortgage Servicing Rights and_6
Mortgage Servicing Rights and Related Liabilities - UPB and Related Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing rights at fair value | $ 3,665 | |
Mortgage Servicing Rights | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 295,481 | |
Mortgage servicing rights at fair value | 3,665 | |
Mortgage Servicing Rights | Credit sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 135,752 | |
Mortgage servicing rights at fair value | 1,495 | |
Mortgage Servicing Rights | Interest sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 159,729 | |
Mortgage servicing rights at fair value | $ 2,170 | |
Predecessor | ||
Servicing Assets at Fair Value [Line Items] | ||
Mortgage servicing rights at fair value | $ 2,937 | |
Predecessor | Mortgage Servicing Rights | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 281,380 | |
Mortgage servicing rights at fair value | 2,937 | |
Predecessor | Mortgage Servicing Rights | Credit sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 167,605 | |
Mortgage servicing rights at fair value | 1,572 | |
Predecessor | Mortgage Servicing Rights | Interest sensitive | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | 113,775 | |
Mortgage servicing rights at fair value | $ 1,365 |
Mortgage Servicing Rights and_7
Mortgage Servicing Rights and Related Liabilities - Fair Value Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights | Credit sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.30% | |
Total prepayment speeds | 11.80% | |
Expected weighted-average life (in years) | 6 years 5 months | |
Mortgage Servicing Rights | Interest sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.30% | |
Total prepayment speeds | 10.00% | |
Expected weighted-average life (in years) | 7 years | |
Excess Spread Financing | Low | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 6.00% | |
Excess Spread Financing, Average Life (Years) | 5 years | |
Excess Spread Financing, Discount Rate | 8.50% | |
Excess Spread Financing, Recapture Rate | 8.50% | |
Excess Spread Financing | High | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 16.70% | |
Excess Spread Financing, Average Life (Years) | 8 years 1 month | |
Excess Spread Financing, Discount Rate | 13.90% | |
Excess Spread Financing, Recapture Rate | 30.50% | |
Excess Spread Financing | Weighted Average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 11.00% | |
Excess Spread Financing, Average Life (Years) | 6 years 6 months | |
Excess Spread Financing, Discount Rate | 10.40% | |
Excess Spread Financing, Recapture Rate | 18.60% | |
Financing rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 4.20% | |
Recovery rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 19.00% | |
Predecessor | Mortgage Servicing Rights | Credit sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 11.40% | |
Total prepayment speeds | 15.20% | |
Expected weighted-average life (in years) | 5 years 8 months | |
Predecessor | Mortgage Servicing Rights | Interest sensitive | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Discount rate | 9.20% | |
Total prepayment speeds | 10.70% | |
Expected weighted-average life (in years) | 6 years 8 months | |
Predecessor | Excess Spread Financing | Low | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 6.20% | |
Excess Spread Financing, Average Life (Years) | 4 years 4 months 24 days | |
Excess Spread Financing, Discount Rate | 8.50% | |
Excess Spread Financing, Recapture Rate | 7.20% | |
Predecessor | Excess Spread Financing | High | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 21.20% | |
Excess Spread Financing, Average Life (Years) | 6 years 10 months 24 days | |
Excess Spread Financing, Discount Rate | 14.10% | |
Excess Spread Financing, Recapture Rate | 30.00% | |
Predecessor | Excess Spread Financing | Weighted Average | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Excess Spread Financing, Prepayment Speeds | 13.70% | |
Excess Spread Financing, Average Life (Years) | 5 years 10 months 24 days | |
Excess Spread Financing, Discount Rate | 10.80% | |
Excess Spread Financing, Recapture Rate | 18.70% | |
Predecessor | Financing rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Advance financing rates | 3.50% | |
Predecessor | Recovery rates | MSR Financing Liability | ||
Assumption for Fair Value of Mortgage Servicing Rights | ||
Annual advance recovery rates | 23.20% |
Mortgage Servicing Rights and_8
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Forward mortgage servicing rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total prepayment speeds, 10% adverse change | $ (129) | |
Total prepayment speeds, 20% adverse change | (250) | |
Forward mortgage servicing rights | 100 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | (137) | |
Forward mortgage servicing rights | 200 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | (265) | |
Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total prepayment speeds, 10% adverse change | 38 | |
Total prepayment speeds, 20% adverse change | 81 | |
Excess spread financing | 100 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | 47 | |
Excess spread financing | 200 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | $ 99 | |
Predecessor | Forward mortgage servicing rights | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total prepayment speeds, 10% adverse change | $ (118) | |
Total prepayment speeds, 20% adverse change | (227) | |
Predecessor | Forward mortgage servicing rights | 100 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | (108) | |
Predecessor | Forward mortgage servicing rights | 200 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | (208) | |
Predecessor | Excess spread financing | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Total prepayment speeds, 10% adverse change | 34 | |
Total prepayment speeds, 20% adverse change | 71 | |
Predecessor | Excess spread financing | 100 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | 37 | |
Predecessor | Excess spread financing | 200 bps Adverse Change | ||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Discount rate, adverse change | $ 78 |
Mortgage Servicing Rights and_9
Mortgage Servicing Rights and Related Liabilities - Servicing Fees (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Contractually specified servicing fees | $ 421 | |||
Other service-related income | 44 | |||
Incentive and modification income | 17 | |||
Late fees | 34 | |||
Reverse servicing fees | 16 | |||
Mark-to-market adjustments | (164) | |||
Counterparty revenue share | (68) | |||
Amortization, net of accretion | (64) | |||
Total servicing revenue | 236 | |||
Losses for inactive and liquidated loans that are no longer part of the MSR portfolio | 25 | $ 38 | $ 72 | $ 81 |
Accretion expense | 53 | 78 | 161 | 200 |
MSL accretion | $ 15 | |||
Predecessor | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Contractually specified servicing fees | 574 | 1,003 | 1,045 | |
Other service-related income | 66 | 168 | 245 | |
Incentive and modification income | 37 | 80 | 113 | |
Late fees | 53 | 89 | 82 | |
Reverse servicing fees | 37 | 58 | 57 | |
Mark-to-market adjustments | 196 | (160) | (177) | |
Counterparty revenue share | (111) | (230) | (298) | |
Amortization, net of accretion | (112) | (242) | (314) | |
Total servicing revenue | $ 740 | $ 766 | $ 753 |
Reverse Mortgage Interests, N_3
Reverse Mortgage Interests, Net - Reverse Mortgage Interests, Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Reverse Mortgage Interest [Line Items] | ||||
Participating interests in HECM mortgage-backed securities, net of $58 and $0 premium, respectively | $ 5,664 | |||
Other interests securitized, net of $100 and $0 discount, respectively | 1,064 | |||
Unsecuritized interests, net of $122 and $89 discount, respectively | 1,219 | |||
Reserves | (13) | $ 0 | ||
Total reverse mortgage interests, net | 7,934 | |||
Other interests securitized, purchase discount | 100 | 117 | ||
Unsecuritized interests, purchase discount | $ 122 | 173 | ||
Predecessor | ||||
Reverse Mortgage Interest [Line Items] | ||||
Participating interests in HECM mortgage-backed securities, net of $58 and $0 premium, respectively | $ 7,107 | |||
Other interests securitized, net of $100 and $0 discount, respectively | 912 | |||
Unsecuritized interests, net of $122 and $89 discount, respectively | 2,080 | |||
Reserves | $ (129) | (115) | $ (131) | |
Total reverse mortgage interests, net | 9,984 | |||
Other interests securitized, purchase discount | 0 | |||
Unsecuritized interests, purchase discount | $ 89 |
Reverse Mortgage Interests, N_4
Reverse Mortgage Interests, Net - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 01, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unsecuritized interests, net | $ 1,219,000 | |||||
Unsecuritized HECM | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest earned on HECM loans | 206,000 | $ 274,000 | $ 490,000 | $ 344,000 | ||
Participating Interests in HMBS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
UPB securitized | 107,000 | 198,000 | 547,000 | |||
Trust 2018-3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
UPB securitized | 364,000 | |||||
Trust 2017-1 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
UPB securitized | 188,000 | |||||
Trust 2018-1 and Trust 2018-2 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
UPB securitized | 760,000 | |||||
Trust 2016-2 and Trust 2016-3 | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unsecuritized interests, net | 284,000 | |||||
Reverse Mortgage Interests, Unsecuritized | HECM | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Repurchase of HECM loans | $ 467,000 | 1,429,000 | 2,439,000 | 4,268,000 | ||
Repurchase of HECM loans funded by prior servicer | 328,000 | 512,000 | 1,018,000 | |||
HMBS Obligations | HECM | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Repurchase of HECM loans | $ 460,000 | |||||
Other Interest Securitized and Unsecuritized Interests | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
UPB, Purchase discount | $ 290,000 | |||||
Receivables From Prior Servicers, Reverse Mortgage Interests | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | 18,000 | $ 22,000 | ||||
Mortgage-backed debt | Participating Interests in HMBS | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Unamortized premium | $ 58,000 | $ 58,000 | $ 58,000 |
Reverse Mortgage Interests, N_5
Reverse Mortgage Interests, Net - Unsecurtized Interests (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 |
Reverse Mortgage Interest [Line Items] | |||
Repurchased HECM loans (exceed 98% MCA) | $ 949 | ||
HECM related receivables | 300 | ||
Funded borrower draws not yet securitized | 76 | ||
REO-related receivables | 16 | ||
Purchase discount | (122) | $ (173) | |
Total unsecuritized interests | $ 1,219 | ||
Predecessor | |||
Reverse Mortgage Interest [Line Items] | |||
Repurchased HECM loans (exceed 98% MCA) | $ 1,751 | ||
HECM related receivables | 311 | ||
Funded borrower draws not yet securitized | 82 | ||
REO-related receivables | 25 | ||
Purchase discount | (89) | ||
Total unsecuritized interests | $ 2,080 |
Reverse Mortgage Interests, N_6
Reverse Mortgage Interests, Net - Reverse Mortgage Interests Roll Forward (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Reverse Mortgage Interests Reserves [Roll Forward] | |||
Balance - beginning of period | $ 0 | ||
Provision | 13 | ||
Write-offs | 0 | ||
Balance - end of period | 13 | $ 0 | |
Predecessor | |||
Reverse Mortgage Interests Reserves [Roll Forward] | |||
Balance - beginning of period | $ 129 | 115 | $ 131 |
Provision | 32 | 76 | |
Write-offs | (18) | (92) | |
Balance - end of period | $ 129 | $ 115 |
Reverse Mortgage Interests, N_7
Reverse Mortgage Interests, Net - Purchase Discount Rollforward (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Discount for Other Interest Securitized | |||
Balance - beginning of period | $ (117) | ||
Additions | 0 | ||
Utilization of purchase discounts | 0 | ||
Accretion/(Amortization) | 17 | ||
Balance - end of period | (100) | $ (117) | |
Discount for Unsecuritized Interests | |||
Balance - beginning of period | (173) | ||
Additions | 0 | ||
Utilization of purchase discounts | 43 | ||
Accretion/(Amortization) | 8 | ||
Balance - end of period | (122) | (173) | |
Participating Interests in HMBS | Mortgage-backed debt | |||
Premium for Participating Interests in HMBS | |||
Balance - beginning of period | 58 | ||
Additions | 0 | ||
Utilization of purchase discounts | 0 | ||
Accretion/(Amortization) | 0 | ||
Balance - end of period | 58 | 58 | |
Predecessor | |||
Premium for Participating Interests in HMBS | |||
Balance - beginning of period | 62 | ||
Balance - end of period | $ 62 | ||
Discount for Other Interest Securitized | |||
Balance - beginning of period | 0 | ||
Balance - end of period | 0 | ||
Discount for Unsecuritized Interests | |||
Balance - beginning of period | (89) | ||
Balance - end of period | (89) | ||
Purchase discounts for reverse mortgage interests | |||
Balance - beginning of period | $ (82) | (89) | (43) |
Additions | (7) | (75) | |
Accretion | 14 | 29 | |
Balance - end of period | $ (82) | $ (89) |
Mortgage Loans Held for Sale _3
Mortgage Loans Held for Sale and Investment - Loans Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans held for sale - UPB | $ 1,568 | |||
Mark-to-market adjustment | 63 | |||
Total mortgage loans held for sale | 1,631 | $ 1,514 | ||
UPB | 45 | |||
Fair Value | 42 | |||
Predecessor | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage loans held for sale - UPB | $ 1,837 | |||
Mark-to-market adjustment | 54 | |||
Total mortgage loans held for sale | $ 1,514 | 1,891 | $ 1,788 | |
UPB | 66 | |||
Fair Value | 64 | |||
Ginnie Mae Repurchased Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
UPB | $ 40 | $ 64 |
Mortgage Loans Held for Sale _4
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Assets at Fair Value [Line Items] | ||||
Mortgage loans held for sale in foreclosure | $ 33,000,000 | $ 51,000,000 | ||
Sale of mortgage loans held for sale | 9,397,000,000 | $ 13,382,000,000 | 20,772,000,000 | $ 21,942,000,000 |
Gain on sale of mortgage loans held for sale | 93,000,000 | 127,000,000 | 454,000,000 | $ 539,000,000 |
Mortgage loans held for investment in foreclosure | 15,000,000 | 22,000,000 | ||
Ginnie Mae HECM | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Delinquent loans acquired | 56,000,000 | 118,000,000 | 316,000,000 | |
Delinquent loans securitized or sold | 95,000,000 | 151,000,000 | 341,000,000 | |
Purchased loans that have re-performed | $ 70,000,000 | 227,000,000 | ||
Mortgage Loans Held for Investment | ||||
Servicing Assets at Fair Value [Line Items] | ||||
Reclassifications from nonaccretable discount | $ 1,000,000 | $ 1,000,000 |
Mortgage Loans Held for Sale _5
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance - beginning of period | $ 1,514 | ||
Mortgage loans originated and purchased, net of fees | 8,890 | ||
Loans sold | (9,304) | ||
Repurchase of loans out of Ginnie Mae securitizations | 527 | ||
Transfer of mortgage loans held for sale to claims receivable in advances and other receivables | (5) | ||
Net transfer of mortgage loans held for sale (to)/from REO in other assets | 5 | ||
Changes in fair value | 6 | ||
Other purchase-related activities | (2) | ||
Balance - end of period | 1,631 | $ 1,514 | |
Predecessor | |||
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | |||
Balance - beginning of period | $ 1,514 | 1,891 | $ 1,788 |
Mortgage loans originated and purchased, net of fees | 12,319 | 19,140 | |
Loans sold | (13,255) | (20,318) | |
Repurchase of loans out of Ginnie Mae securitizations | 544 | 1,249 | |
Transfer of mortgage loans held for sale to claims receivable in advances and other receivables | (7) | (19) | |
Net transfer of mortgage loans held for sale (to)/from REO in other assets | 14 | 23 | |
Changes in fair value | (1) | 9 | |
Other purchase-related activities | 9 | 19 | |
Balance - end of period | $ 1,514 | $ 1,891 |
Mortgage Loans Held for Sale _6
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $ 119 | ||
Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, net - UPB | 156 | ||
Fair value adjustments | (37) | ||
Total mortgage loans held for investment, net | $ 119 | $ 125 | |
Predecessor | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total mortgage loans held for investment, net | $ 139 | ||
Predecessor | Mortgage Loans Held for Investment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for investment, net - UPB | 193 | ||
Transfer discount - non-accretable | (41) | ||
Transfer discount - accretable | (12) | ||
Allowance for loan losses | (1) | ||
Total mortgage loans held for investment, net | $ 139 |
Mortgage Loans Held for Sale _7
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) $ in Millions | 5 Months Ended |
Dec. 31, 2018USD ($) | |
Mortgage Loans Held For Investment [Roll Forward] | |
Changes in fair value | $ 2 |
Balance - end of period | 119 |
Mortgage Loans Held for Investment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Non-accrual, UPB | 27 |
Non-accrual, Fair Value | 13 |
Mortgage Loans Held For Investment [Roll Forward] | |
Balance - beginning of period | 125 |
Payments received from borrowers | (5) |
Charge-offs | (3) |
Changes in fair value | 2 |
Balance - end of period | $ 119 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of PPE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 112 | |
Less: Accumulated depreciation | (16) | |
Total property and equipment, net | 96 | |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 32 | |
Furniture, fixtures, and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Furniture, fixtures, and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 24 | |
Capitalized software costs | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Capitalized software costs | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Software in development and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 24 | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 22 | |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Long-term capital leases - computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 10 | |
Estimated Useful Life | 5 years | |
Predecessor | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 290 | |
Less: Accumulated depreciation | (169) | |
Total property and equipment, net | 121 | |
Predecessor | Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 57 | |
Predecessor | Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 152 | |
Predecessor | Software in development and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 12 | |
Predecessor | Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 19 | |
Predecessor | Long-term capital leases - computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 50 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization | $ 16,000,000 | $ 31,000,000 | $ 54,000,000 | $ 56,000,000 |
Impairment of assets | $ 0 | 11,000,000 | ||
Software and Hardware | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | $ 3,000,000 | 10,000,000 | ||
Old Company Website | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | $ 1,000,000 |
Other Assets - (Details)
Other Assets - (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Line Items] | ||||
Loans subject to repurchase right from Ginnie Mae | $ 266 | |||
Accrued revenues | 145 | |||
Intangible assets | 117 | |||
Goodwill | 23 | $ 10 | ||
Other | 244 | |||
Total other assets | $ 795 | |||
Predecessor | ||||
Other Assets [Line Items] | ||||
Loans subject to repurchase right from Ginnie Mae | $ 218 | |||
Accrued revenues | 148 | |||
Intangible assets | 19 | |||
Goodwill | $ 72 | 72 | $ 74 | |
Other | 222 | |||
Total other assets | $ 679 |
Other Assets - Changes in the c
Other Assets - Changes in the carrying amount of Goodwill (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||||
Balance - beginning of period(1) | $ 10 | |||
Addition from acquisitions | 13 | |||
Goodwill disposition | 0 | |||
Balance - end of period | 23 | $ 10 | $ 23 | |
Predecessor | ||||
Goodwill [Roll Forward] | ||||
Balance - beginning of period(1) | $ 72 | 72 | $ 72 | $ 74 |
Addition from acquisitions | 0 | 0 | ||
Goodwill disposition | 0 | (2) | ||
Balance - end of period | $ 72 | $ 72 |
Other Assets - Narrative (Detai
Other Assets - Narrative (Details) - USD ($) | Aug. 01, 2018 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Addition from acquisitions | $ 13,000,000 | |||||
Goodwill impairment charge | 0 | $ 0 | $ 0 | $ 0 | ||
Amortization expense | 23,000,000 | 2,000,000 | 5,000,000 | $ 8,000,000 | ||
Real estate owned loans with government or GSE guarantee | 10,000,000 | $ 10,000,000 | $ 15,000,000 | |||
Nationstar Mortgage Holdings Inc. | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | $ 103,000,000 | $ 0 | ||||
Xome Holdings LLC | Assurant Mortgage Solutions Group | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Intangible assets acquired | $ 24,000,000 | 24,000,000 | ||||
Addition from acquisitions | $ 3,000,000 | $ 0 |
Other Assets - Schedule of Inta
Other Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (23) | |
Net Carrying Amount | $ 117 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 8 months 26 days | |
Total, Gross Carrying Amount | $ 140 | |
Total, Net Carrying Amount | 117 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 77 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (14) | |
Net Carrying Amount | $ 63 | |
Finite-Lived Intangible Asset, Useful Life | 5 years 7 months 24 days | |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 52 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (8) | |
Net Carrying Amount | $ 44 | |
Finite-Lived Intangible Asset, Useful Life | 3 years 6 months 25 days | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (1) | |
Net Carrying Amount | $ 7 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 7 months 24 days | |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 3 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 0 | |
Net Carrying Amount | $ 3 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 9 months 24 days | |
Predecessor | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (14) | |
Finite-Lived Intangible Asset, Useful Life | 4 years 9 months 24 days | |
Total, Gross Carrying Amount | $ 33 | |
Total, Net Carrying Amount | 19 | |
Predecessor | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 8 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (3) | |
Net Carrying Amount | $ 5 | |
Finite-Lived Intangible Asset, Useful Life | 6 years 7 months 24 days | |
Predecessor | Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 12 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (6) | |
Net Carrying Amount | $ 6 | |
Finite-Lived Intangible Asset, Useful Life | 4 years 8 months 24 days | |
Predecessor | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 12 | |
Finite-Lived Intangible Assets, Accumulated Amortization | (5) | |
Net Carrying Amount | $ 7 | |
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Predecessor | Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | $ 1 |
Other Assets - Future Amortizat
Other Assets - Future Amortization (Details) $ in Millions | Dec. 31, 2018USD ($) |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
2019 | $ 47 |
2020 | 32 |
2021 | 17 |
2022 | 13 |
2023 | 8 |
Thereafter | 0 |
Net Carrying Amount | $ 117 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Margin deposit assets | $ 12 | $ 1 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Balances (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Derivative instrument, fair value (less than) | $ 0.1 | $ 0.1 | |
Loan sale commitments | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 319 | 13 | |
Fair Value - Asset | 13.5 | 0.1 | |
Recorded Gains / (Losses) | 2.8 | 0 | |
IRLCs | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 1,301 | 2,065 | |
Fair Value - Asset | 47.6 | 59.3 | |
Recorded Gains / (Losses) | (12.1) | (32.9) | |
IRLCs | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 0 | 7 | |
Fair Value - Liability | 0 | 0 | |
Recorded Gains / (Losses) | 0 | 1.1 | |
Forward sales of MBS | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 485 | 1,802 | |
Fair Value - Asset | 0.1 | 2.4 | |
Recorded Gains / (Losses) | (3.1) | (36.9) | |
Forward sales of MBS | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 2,639 | 1,579 | |
Fair Value - Liability | 19.3 | 2.8 | |
Recorded Gains / (Losses) | 17.4 | 7.2 | |
LPCs | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 215 | 171 | |
Fair Value - Asset | 1.7 | 0.9 | |
Recorded Gains / (Losses) | 0.4 | (1) | |
LPCs | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 90 | 213 | |
Fair Value - Liability | 0.4 | 0.6 | |
Recorded Gains / (Losses) | (0.2) | 0.9 | |
Treasury futures | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 0 | 81 | |
Fair Value - Asset | 0 | 1.9 | |
Recorded Gains / (Losses) | (0.1) | 1.9 | |
Treasury futures | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 0 | 128 | |
Fair Value - Liability | 0 | 1.4 | |
Recorded Gains / (Losses) | (0.1) | (1.4) | |
Eurodollar futures | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 19 | 26 | |
Fair Value - Asset | 0 | 0 | |
Recorded Gains / (Losses) | 0 | 0 | |
Eurodollar futures | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 6 | 17 | |
Fair Value - Liability | 0 | 0 | |
Recorded Gains / (Losses) | $ 0 | 0 | |
Interest rate swaps and caps | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Asset | 0 | ||
Fair Value - Asset | 0 | ||
Recorded Gains / (Losses) | (0.1) | ||
Interest rate swaps and caps | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Outstanding Notional - Liability | 0 | ||
Fair Value - Liability | 0 | ||
Recorded Gains / (Losses) | $ 0.1 | ||
Predecessor | Loan sale commitments | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | $ 10.5 | ||
Predecessor | IRLCs | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0.4 | ||
Predecessor | IRLCs | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0 | ||
Predecessor | Forward sales of MBS | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0.9 | ||
Predecessor | Forward sales of MBS | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | (1) | ||
Predecessor | LPCs | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0.3 | ||
Predecessor | LPCs | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0.1 | ||
Predecessor | Treasury futures | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | (1.8) | ||
Predecessor | Treasury futures | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | (1.3) | ||
Predecessor | Eurodollar futures | Derivative Financial Instruments, Assets | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | 0 | ||
Predecessor | Eurodollar futures | Derivative Financial Instruments, Liabilities | |||
Derivatives, Fair Value [Line Items] | |||
Recorded Gains / (Losses) | $ 0 |
Indebtedness - Notes Payable (D
Indebtedness - Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Outstanding debt | $ 595,000,000 | |
Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (1,000,000) | |
Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 2,349,000,000 | |
Servicing | Advance facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 0 | |
Servicing | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 595,000,000 | |
Collateral Pledged | 777,000,000 | |
Outstanding debt | 595,000,000 | |
Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000,000 | |
Outstanding, gross | 218,000,000 | |
Collateral Pledged | 255,000,000 | |
Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 325,000,000 | |
Outstanding, gross | 209,000,000 | |
Collateral Pledged | 284,000,000 | |
Servicing | MBS servicer advance facility (2014) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 125,000,000 | |
Outstanding, gross | 90,000,000 | |
Collateral Pledged | 149,000,000 | |
Servicing | Nationstar agency advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 125,000,000 | |
Outstanding, gross | 78,000,000 | |
Collateral Pledged | 89,000,000 | |
Servicing | MBS advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 0 | |
Outstanding, gross | 0 | |
Collateral Pledged | 0 | |
Originations | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 2,250,000,000 | |
Collateral Pledged | 2,466,000,000 | |
Originations | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 2,350,000,000 | |
Collateral Pledged | 4,152,000,000 | |
Originations | Mortgage Servicing Rights | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 100,000,000 | |
Collateral Pledged | 1,686,000,000 | |
Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,200,000,000 | |
Outstanding, gross | 464,000,000 | |
Collateral Pledged | 514,000,000 | |
Originations | $1,000 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,000,000,000 | |
Outstanding, gross | 137,000,000 | |
Collateral Pledged | 140,000,000 | |
Originations | $950 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 950,000,000 | |
Outstanding, gross | 560,000,000 | |
Collateral Pledged | 622,000,000 | |
Originations | $600 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 600,000,000 | |
Outstanding, gross | 151,000,000 | |
Collateral Pledged | 168,000,000 | |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 290,000,000 | |
Collateral Pledged | 299,000,000 | |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 220,000,000 | |
Collateral Pledged | 248,000,000 | |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 187,000,000 | |
Collateral Pledged | 200,000,000 | |
Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding, gross | 119,000,000 | |
Collateral Pledged | 122,000,000 | |
Originations | $300 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 300,000,000 | |
Outstanding, gross | 103,000,000 | |
Collateral Pledged | 132,000,000 | |
Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding, gross | 18,000,000 | |
Collateral Pledged | 19,000,000 | |
Originations | $40 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 40,000,000 | |
Outstanding, gross | 1,000,000 | |
Collateral Pledged | 2,000,000 | |
Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding, gross | 0 | |
Collateral Pledged | 430,000,000 | |
Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding, gross | 100,000,000 | |
Collateral Pledged | 928,000,000 | |
Originations | $175 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 175,000,000 | |
Outstanding, gross | 0 | |
Collateral Pledged | 226,000,000 | |
Originations | $50 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 50,000,000 | |
Outstanding, gross | 0 | |
Collateral Pledged | 102,000,000 | |
Mortgage loans, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,628,000,000 | |
Outstanding debt | 1,528,000,000 | |
Reverse mortgage interests, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 838,000,000 | |
Outstanding debt | 722,000,000 | |
MSR and other collateral | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,686,000,000 | |
Outstanding debt | $ 100,000,000 | |
LIBOR | Servicing | Nationstar agency advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
LIBOR | Servicing | MBS advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.50% | |
LIBOR | Originations | $600 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
LIBOR | Originations | $300 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.30% | |
LIBOR | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.30% | |
LIBOR | Originations | $40 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.00% | |
LIBOR | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.80% | |
LIBOR | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 4.00% | |
LIBOR | Originations | $175 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.30% | |
LIBOR | Originations | $50 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 4.50% | |
CPRATE | Servicing | MBS servicer advance facility (2014) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
Minimum | LIBOR | Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
Minimum | LIBOR | Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
Minimum | LIBOR | Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.90% | |
Minimum | LIBOR | Originations | $1,000 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.60% | |
Minimum | LIBOR | Originations | $950 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.70% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.00% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.50% | |
Minimum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 1.80% | |
Maximum | LIBOR | Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.60% | |
Maximum | LIBOR | Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 6.50% | |
Maximum | LIBOR | Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.80% | |
Maximum | LIBOR | Originations | $1,000 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.50% | |
Maximum | LIBOR | Originations | $950 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.50% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.30% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 3.00% | |
Maximum | LIBOR | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate percentage | 2.80% | |
Predecessor | ||
Debt Instrument [Line Items] | ||
Outstanding debt | $ 855,000,000 | |
Predecessor | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | (1,000,000) | |
Predecessor | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding debt | 3,285,000,000 | |
Predecessor | Servicing | Advance facilities | ||
Debt Instrument [Line Items] | ||
Debt issuance costs | 0 | |
Predecessor | Servicing | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 855,000,000 | |
Collateral Pledged | 1,100,000,000 | |
Outstanding debt | 855,000,000 | |
Predecessor | Servicing | Nationstar agency advance receivables trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 416,000,000 | |
Collateral Pledged | 492,000,000 | |
Predecessor | Servicing | Nationstar mortgage advance receivable trust | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 230,000,000 | |
Collateral Pledged | 287,000,000 | |
Predecessor | Servicing | MBS servicer advance facility (2014) | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 44,000,000 | |
Collateral Pledged | 140,000,000 | |
Predecessor | Servicing | Nationstar agency advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 102,000,000 | |
Collateral Pledged | 117,000,000 | |
Predecessor | Servicing | MBS advance financing facility | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 63,000,000 | |
Collateral Pledged | 64,000,000 | |
Predecessor | Originations | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 3,226,000,000 | |
Collateral Pledged | 3,476,000,000 | |
Predecessor | Originations | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 3,286,000,000 | |
Collateral Pledged | 4,737,000,000 | |
Predecessor | Originations | Mortgage Servicing Rights | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 60,000,000 | |
Collateral Pledged | 1,261,000,000 | |
Predecessor | Originations | $1,200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 889,000,000 | |
Collateral Pledged | 960,000,000 | |
Predecessor | Originations | $1,000 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 299,000,000 | |
Collateral Pledged | 308,000,000 | |
Predecessor | Originations | $950 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 721,000,000 | |
Collateral Pledged | 785,000,000 | |
Predecessor | Originations | $600 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 333,000,000 | |
Collateral Pledged | 347,000,000 | |
Predecessor | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 0 | |
Collateral Pledged | 0 | |
Predecessor | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 305,000,000 | |
Collateral Pledged | 337,000,000 | |
Predecessor | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 246,000,000 | |
Collateral Pledged | 272,000,000 | |
Predecessor | Originations | $500 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 233,000,000 | |
Collateral Pledged | 239,000,000 | |
Predecessor | Originations | $300 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 116,000,000 | |
Collateral Pledged | 141,000,000 | |
Predecessor | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 80,000,000 | |
Collateral Pledged | 81,000,000 | |
Predecessor | Originations | $40 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 4,000,000 | |
Collateral Pledged | 6,000,000 | |
Predecessor | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 0 | |
Collateral Pledged | 377,000,000 | |
Predecessor | Originations | $200 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 50,000,000 | |
Collateral Pledged | 594,000,000 | |
Predecessor | Originations | $175 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 0 | |
Collateral Pledged | 200,000,000 | |
Predecessor | Originations | $50 warehouse facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Outstanding, gross | 10,000,000 | |
Collateral Pledged | 90,000,000 | |
Predecessor | Mortgage loans, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,901,000,000 | |
Outstanding debt | 1,792,000,000 | |
Predecessor | Reverse mortgage interests, net | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,575,000,000 | |
Outstanding debt | 1,434,000,000 | |
Predecessor | MSR and other collateral | Originations | ||
Debt Instrument [Line Items] | ||
Collateral Pledged | 1,261,000,000 | |
Outstanding debt | $ 60,000,000 |
Indebtedness - Unsecured Senior
Indebtedness - Unsecured Senior Notes (Details) - USD ($) | Dec. 31, 2018 | Jul. 13, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Unsecured senior notes, net | $ 2,459,000,000 | ||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||
Debt Instrument [Line Items] | |||
Face amount | $ 950,000,000 | ||
Interest rate | 8.125% | ||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||
Debt Instrument [Line Items] | |||
Face amount | $ 750,000,000 | ||
Interest rate | 9.125% | ||
Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 2,498,000,000 | ||
Debt issuance costs | (39,000,000) | ||
Unsecured senior notes, net | 2,459,000,000 | ||
Face amount | 2,498,000,000 | ||
Unsecured Senior Notes | $950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 950,000,000 | ||
Face amount | $ 950,000,000 | $ 950 | |
Interest rate | 8.125% | 8.125% | |
Unsecured Senior Notes | $750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 750,000,000 | ||
Face amount | $ 750,000,000 | $ 750 | |
Interest rate | 9.125% | 9.125% | |
Unsecured Senior Notes | $600 face value, 6.500% interest rate payable semi-annually, due July 2021 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 592,000,000 | ||
Face amount | $ 600,000,000 | ||
Interest rate | 6.50% | ||
Unsecured Senior Notes | $300 face value, 6.500% interest rate payable semi-annually, due June 2022 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 206,000,000 | ||
Face amount | $ 300,000,000 | ||
Interest rate | 6.50% | ||
Unsecured Senior Notes | $475 face value, 6.500% interest rate payable semi-annually, due August 2018 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 0 | ||
Face amount | $ 475,000,000 | ||
Interest rate | 6.50% | ||
Unsecured Senior Notes | $400 face value, 7.875% interest rate payable semi-annually, due October 2020 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 0 | ||
Face amount | $ 400,000,000 | ||
Interest rate | 7.875% | ||
Unsecured Senior Notes | $375 face value, 9.625% interest rate payable semi-annually, due May 2019 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 0 | ||
Face amount | $ 375,000,000 | ||
Interest rate | 9.625% | ||
Predecessor | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes, net | $ 1,874,000,000 | ||
Predecessor | Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 1,885,000,000 | ||
Debt issuance costs | (11,000,000) | ||
Unsecured senior notes, net | 1,874,000,000 | ||
Predecessor | Unsecured Senior Notes | $950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 0 | ||
Predecessor | Unsecured Senior Notes | $750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 0 | ||
Predecessor | Unsecured Senior Notes | $600 face value, 6.500% interest rate payable semi-annually, due July 2021 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 595,000,000 | ||
Predecessor | Unsecured Senior Notes | $300 face value, 6.500% interest rate payable semi-annually, due June 2022 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 206,000,000 | ||
Predecessor | Unsecured Senior Notes | $475 face value, 6.500% interest rate payable semi-annually, due August 2018 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 364,000,000 | ||
Predecessor | Unsecured Senior Notes | $400 face value, 7.875% interest rate payable semi-annually, due October 2020 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 397,000,000 | ||
Predecessor | Unsecured Senior Notes | $375 face value, 9.625% interest rate payable semi-annually, due May 2019 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 323,000,000 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 13, 2018 | Nov. 30, 2009 | |
Debt Instrument [Line Items] | |||||||
Repurchase of unsecured senior notes | $ 0 | ||||||
Maximum percentage redeemable on secured debt | 35.00% | ||||||
Principal amount outstanding on securitized financing | $ 222,000,000 | ||||||
Non-recourse debt | 6,795,000,000 | $ 6,795,000,000 | |||||
Minimum tangible net worth | 682,000,000 | 682,000,000 | |||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | $ 950,000,000 | ||||||
Interest rate | 8.125% | ||||||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | $ 750,000,000 | ||||||
Interest rate | 9.125% | ||||||
Legacy Asset | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse debt | 29,000,000 | 29,000,000 | |||||
Other Nonrecourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Unpaid principal outstanding on securitized financing | 29,000,000 | 29,000,000 | $ 42,000,000 | ||||
Non-recourse debt | 29,000,000 | $ 29,000,000 | 37,000,000 | ||||
New Notes | |||||||
Debt Instrument [Line Items] | |||||||
Maximum percentage redeemable on secured debt | 40.00% | ||||||
Unsecured Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | 2,498,000,000 | $ 2,498,000,000 | |||||
Amount of principal redeemed | 658,000,000 | ||||||
Repayment of debt | 364,000,000 | ||||||
Unsecured Senior Notes | $950 face value, 8.125% interest rate payable semi-annually, due July 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | $ 950,000,000 | $ 950,000,000 | $ 950 | ||||
Interest rate | 8.125% | 8.125% | 8.125% | ||||
Unsecured Senior Notes | $750 face value, 9.125% interest rate payable semi-annually, due July 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | $ 750,000,000 | $ 750,000,000 | $ 750 | ||||
Interest rate | 9.125% | 9.125% | 9.125% | ||||
Unsecured senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase of unsecured senior notes | $ 60,000,000 | 120,000,000 | |||||
Loss on repurchase of debt | 2,000,000 | 3,000,000 | |||||
Other Nonrecourse Debt | Legacy Asset | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured senior notes principal amount | $ 105,000,000 | $ 105,000,000 | |||||
Secured Debt | Legacy Asset | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 7.50% | ||||||
Securities Pledged as Collateral | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount outstanding on securitized financing | $ 160,000,000 | $ 160,000,000 | 181,000,000 | ||||
Minimum | Other Nonrecourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.60% | 2.60% | |||||
Minimum | Secured Debt | HECM Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.00% | 2.00% | |||||
Weighted average useful life | 1 year | ||||||
Maximum | Other Nonrecourse Debt | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.60% | 6.60% | |||||
Maximum | Secured Debt | HECM Securitizations | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 6.00% | 6.00% | |||||
Weighted average useful life | 4 years | ||||||
Predecessor | |||||||
Debt Instrument [Line Items] | |||||||
Repurchase of unsecured senior notes | $ 62,000,000 | 123,000,000 | $ 40,000,000 | ||||
Unamortized premium | 62,000,000 | ||||||
Non-recourse debt | 8,014,000,000 | ||||||
Predecessor | Legacy Asset | |||||||
Debt Instrument [Line Items] | |||||||
Non-recourse debt | $ 42,000,000 |
Indebtedness - Schedule of Note
Indebtedness - Schedule of Notes Maturity (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |
Unsecured senior notes, net | $ 2,459 |
Unsecured Senior Notes | |
Debt Instrument [Line Items] | |
2019 | 0 |
2020 | 0 |
2021 | 592 |
2022 | 206 |
2023 | 950 |
Thereafter | 750 |
Total | 2,498 |
Unsecured debt issuance costs | (39) |
Unsecured senior notes, net | $ 2,459 |
Indebtedness - Non-Recourse Deb
Indebtedness - Non-Recourse Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Non-recourse debt | $ 6,795 | |
Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 5,607 | |
Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Trust 2017-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Trust 2017-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 231 | |
Trust 2018-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 284 | |
Trust 2018-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 250 | |
Trust 2018-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 326 | |
Other | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 6,727 | |
Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 29 | |
Non-recourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs, net of premium, and issuance discount | 68 | |
Non-recourse debt - legacy assets | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2017-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 0 | |
Non-recourse debt - legacy assets | Trust 2017-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 284 | |
Non-recourse debt - legacy assets | Trust 2018-1 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 308 | |
Non-recourse debt - legacy assets | Trust 2018-2 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 260 | |
Non-recourse debt - legacy assets | Trust 2018-3 | ||
Debt Instrument [Line Items] | ||
Securitized Amount | 350 | |
Non-recourse debt - legacy assets | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Securitized Amount | $ 105 | |
Predecessor | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | $ 8,014 | |
Predecessor | Participating Interest Financing | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 7,111 | |
Predecessor | Trust 2016-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 94 | |
Predecessor | Trust 2016-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 138 | |
Predecessor | Trust 2017-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 213 | |
Predecessor | Trust 2017-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 365 | |
Predecessor | Trust 2018-1 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Predecessor | Trust 2018-2 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Predecessor | Trust 2018-3 | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 0 | |
Predecessor | Other | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 7,963 | |
Predecessor | Legacy Asset | ||
Debt Instrument [Line Items] | ||
Non-recourse debt | 42 | |
Predecessor | Non-recourse debt - legacy assets | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs, net of premium, and issuance discount | $ 51 |
Payables and Accrued Liabilit_3
Payables and Accrued Liabilities - (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Payable [Line Items] | ||
Payables to servicing and subservicing investors | $ 494 | |
Loans subject to repurchase from Ginnie Mae | 266 | |
MSR purchases payable including advances | 182 | |
Payable to GSEs and securitized trusts | 105 | |
Other liabilities | 496 | |
Total payables and accrued liabilities | $ 1,543 | |
Predecessor | ||
Accounts Payable [Line Items] | ||
Payables to servicing and subservicing investors | $ 516 | |
Loans subject to repurchase from Ginnie Mae | 218 | |
MSR purchases payable including advances | 10 | |
Payable to GSEs and securitized trusts | 92 | |
Other liabilities | 403 | |
Total payables and accrued liabilities | $ 1,239 |
Payables and Accrued Liabilit_4
Payables and Accrued Liabilities - Repurchase Reserves (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Loans Subject to Repurchase Reserve [Roll Forward] | |||
Repurchase Reserve | $ 9 | ||
Provisions | 3 | ||
Releases | (4) | ||
Charge-offs | 0 | ||
Repurchase Reserve | 8 | $ 9 | |
Predecessor | |||
Loans Subject to Repurchase Reserve [Roll Forward] | |||
Repurchase Reserve | $ 9 | 9 | $ 18 |
Provisions | 3 | 7 | |
Releases | (3) | (14) | |
Charge-offs | 0 | (2) | |
Repurchase Reserve | $ 9 | $ 9 |
Securitizations and Financing_2
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) $ in Millions | Dec. 31, 2018USD ($)special_purpose_entity | Dec. 31, 2017USD ($) |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Consolidated reverse mortgage SPE's | special_purpose_entity | 4 | |
Transfers Accounted for as Secured Borrowings, Assets | $ 816 | |
Reverse Secured Borrowings, Assets | 6,833 | |
Transfers Accounted for as Secured Borrowings, Liabilities | 535 | |
Reverse Secured Borrowings, Liabilities | 6,699 | |
Residential Mortgage | Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 70 | |
Reverse Secured Borrowings, Assets | 63 | |
Residential Mortgage | Reverse mortgage interests, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 0 | |
Reverse Secured Borrowings, Assets | 6,770 | |
Residential Mortgage | Advances and other receivables, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 628 | |
Reverse Secured Borrowings, Assets | 0 | |
Residential Mortgage | Mortgage loans held for investment | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 118 | |
Reverse Secured Borrowings, Assets | 0 | |
Residential Mortgage | Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 0 | |
Reverse Secured Borrowings, Assets | 0 | |
Residential Mortgage | Advance facilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 505 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Residential Mortgage | Payables and accrued liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 1 | |
Reverse Secured Borrowings, Liabilities | 1 | |
Residential Mortgage | Participating interest financing | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 5,607 | |
Residential Mortgage | Trust 2016-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Residential Mortgage | Trust 2016-3 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Residential Mortgage | Trust 2017-1 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Residential Mortgage | Trust 2017-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 231 | |
Residential Mortgage | Trust 2018-1 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 284 | |
Residential Mortgage | Trust 2018-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 250 | |
Residential Mortgage | Trust 2018-3 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 326 | |
Residential Mortgage | Other nonrecourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 29 | |
Reverse Secured Borrowings, Liabilities | $ 0 | |
Predecessor | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | $ 1,142 | |
Reverse Secured Borrowings, Assets | 8,007 | |
Transfers Accounted for as Secured Borrowings, Liabilities | 793 | |
Reverse Secured Borrowings, Liabilities | 7,922 | |
Predecessor | Residential Mortgage | Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 106 | |
Reverse Secured Borrowings, Assets | 26 | |
Predecessor | Residential Mortgage | Reverse mortgage interests, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 0 | |
Reverse Secured Borrowings, Assets | 7,981 | |
Predecessor | Residential Mortgage | Advances and other receivables, net | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 896 | |
Reverse Secured Borrowings, Assets | 0 | |
Predecessor | Residential Mortgage | Mortgage loans held for investment | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 138 | |
Reverse Secured Borrowings, Assets | 0 | |
Predecessor | Residential Mortgage | Other assets | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Assets | 2 | |
Reverse Secured Borrowings, Assets | 0 | |
Predecessor | Residential Mortgage | Advance facilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 749 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Predecessor | Residential Mortgage | Payables and accrued liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 2 | |
Reverse Secured Borrowings, Liabilities | 1 | |
Predecessor | Residential Mortgage | Participating interest financing | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 7,111 | |
Predecessor | Residential Mortgage | Trust 2016-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 94 | |
Predecessor | Residential Mortgage | Trust 2016-3 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 138 | |
Predecessor | Residential Mortgage | Trust 2017-1 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 213 | |
Predecessor | Residential Mortgage | Trust 2017-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 365 | |
Predecessor | Residential Mortgage | Trust 2018-1 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Predecessor | Residential Mortgage | Trust 2018-2 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Predecessor | Residential Mortgage | Trust 2018-3 | HECM Securitizations (HMBS) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 0 | |
Reverse Secured Borrowings, Liabilities | 0 | |
Predecessor | Residential Mortgage | Other nonrecourse debt | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers Accounted for as Secured Borrowings, Liabilities | 42 | |
Reverse Secured Borrowings, Liabilities | $ 0 |
Securitizations and Financing_3
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Total collateral balances | $ 1,873 | |
Total certificate balances | 1,817 | |
Unconsolidated securitization trusts | $ 285 | |
Predecessor | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Total collateral balances | $ 2,291 | |
Total certificate balances | 2,129 | |
Unconsolidated securitization trusts | $ 448 |
Share-Based Compensation and _3
Share-Based Compensation and Equity - Additional Information (Details) - USD ($) shares in Thousands, $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense | $ 48 | $ 48 | |||
Unrecognized compensation expense, weighted average period | 2 years 4 months 5 days | ||||
Stock Appreciation Rights (SARs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of equity awards granted (in shares) | 85 | ||||
Vesting period | 3 years | ||||
Expiration term | 10 years | ||||
Certain Employees | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation | 2 | $ 17 | $ 17 | $ 21 | |
Accelerated compensation cost | $ 7 | ||||
Certain Employees | Tranche One | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.30% | ||||
Certain Employees | Tranche Two | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.30% | ||||
Certain Employees | Tranche Three | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.40% |
Share-Based Compensation and _4
Share-Based Compensation and Equity - Restricted Stock Rollforward (Details) - 2012 Plan - Restricted Stock - $ / shares shares in Thousands | 5 Months Ended | 7 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | |
Units | ||
Beginning of Period (shares) | 1,154 | |
Grants issued (shares) | 2,382 | |
Forfeited (shares) | (43) | |
Vested (shares) | (20) | |
Ending of Period (shares) | 3,473 | 1,154 |
Grant Date Fair Value | ||
Beginning of Period (in dollars per share) | $ 16.27 | |
Grants issued (in dollars per share) | 14.95 | |
Forfeited (in dollars per share) | 16.16 | |
Vested (in dollars per share) | 16.16 | |
Ending of Period (in dollars per share) | $ 15.53 | $ 16.27 |
Predecessor | ||
Units | ||
Beginning of Period (shares) | 1,126 | 2,105 |
Grants issued (shares) | 1,278 | |
Forfeited (shares) | (1,196) | |
Vested (shares) | (1,061) | |
Ending of Period (shares) | 1,126 | |
Grant Date Fair Value | ||
Beginning of Period (in dollars per share) | $ 16.27 | $ 17.33 |
Grants issued (in dollars per share) | 14.77 | |
Forfeited (in dollars per share) | 16.52 | |
Vested (in dollars per share) | 16.20 | |
Ending of Period (in dollars per share) | $ 16.27 |
Earnings Per Share (Details)
Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Millions | Oct. 10, 2018 | Jul. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Dec. 31, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Jul. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Reverse stock split ratio | 0.0833 | |||||||||||||
Net income attributable to Successor/Predecessor | $ | $ 1,020 | $ (136) | $ 884 | |||||||||||
Less: Undistributed earnings attributable to participating stockholders | $ | 9 | 0 | 8 | |||||||||||
Net income attributable to common stockholders | $ | $ 1,011 | $ (136) | $ 876 | |||||||||||
Net income (loss) per common share attributable to Successor/Predecessor: | ||||||||||||||
Basic (in dollars per share) | $ / shares | $ 11.13 | $ (1.50) | $ 9.65 | |||||||||||
Diluted (in dollars per share) | $ / shares | $ 10.99 | $ (1.50) | $ 9.54 | |||||||||||
Weighted average shares of common stock outstanding (in thousands): | ||||||||||||||
Basic (in shares) | 90,813 | |||||||||||||
Dilutive effect of stock awards (in shares) | 178 | |||||||||||||
Dilutive effect of participating securities (in shares) | 839 | |||||||||||||
Diluted (in shares) | 91,830 | |||||||||||||
Predecessor | ||||||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||||||
Net income attributable to Successor/Predecessor | $ | $ (64) | $ 58 | $ 160 | $ 41 | $ 7 | $ (20) | $ 2 | $ 154 | $ 30 | $ 19 | ||||
Less: Undistributed earnings attributable to participating stockholders | $ | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Net income attributable to common stockholders | $ | $ (64) | $ 58 | $ 160 | $ 154 | $ 30 | $ 19 | ||||||||
Net income (loss) per common share attributable to Successor/Predecessor: | ||||||||||||||
Basic (in dollars per share) | $ / shares | $ (0.65) | $ 0.59 | $ 1.63 | $ 0.42 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.57 | $ 0.31 | $ 0.19 | ||||
Diluted (in dollars per share) | $ / shares | $ (0.65) | $ 0.59 | $ 1.61 | $ 0.41 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.55 | $ 0.30 | $ 0.19 | ||||
Weighted average shares of common stock outstanding (in thousands): | ||||||||||||||
Basic (in shares) | 98,046 | 97,696 | 99,765 | |||||||||||
Dilutive effect of stock awards (in shares) | 1,091 | 1,107 | 880 | |||||||||||
Dilutive effect of participating securities (in shares) | 0 | 0 | 0 | |||||||||||
Diluted (in shares) | 99,137 | 98,803 | 100,645 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Mortgage loans held for sale at fair value | $ 1,631 | |
Mortgage loans held for investment | 119 | |
Mortgage servicing rights | 3,665 | |
LIABILITIES | ||
Derivative instrument, fair value (less than) | 0.1 | $ 0.1 |
Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 1,630.8 | |
Mortgage loans held for investment | 119.1 | |
Mortgage servicing rights | 3,665.4 | |
Derivative financial instruments | 49 | |
Total assets | 5,464.7 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 31.7 | |
Excess spread financing | 1,184.4 | |
Total liabilities | 1,235.8 | |
Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 0 | |
Mortgage loans held for investment | 0 | |
Mortgage servicing rights | 0 | |
Derivative financial instruments | 0 | |
Total assets | 0 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Total liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 1,630.8 | |
Mortgage loans held for investment | 0 | |
Mortgage servicing rights | 0 | |
Derivative financial instruments | 49 | |
Total assets | 1,680.2 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Total liabilities | 19.7 | |
Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 0 | |
Mortgage loans held for investment | 119.1 | |
Mortgage servicing rights | 3,665.4 | |
Derivative financial instruments | 0 | |
Total assets | 3,784.5 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 31.7 | |
Excess spread financing | 1,184.4 | |
Total liabilities | 1,216.1 | |
IRLCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 47.6 | |
IRLCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
IRLCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 47.6 | |
IRLCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
Forward MBS trades | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0.1 | |
LIABILITIES | ||
Derivative financial instruments | 19.3 | |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0.1 | |
LIABILITIES | ||
Derivative financial instruments | 19.3 | |
Forward MBS trades | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
LPCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 1.7 | |
LIABILITIES | ||
Derivative financial instruments | 0.4 | |
LPCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
LPCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 1.7 | |
LIABILITIES | ||
Derivative financial instruments | 0.4 | |
LPCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Eurodollar futures | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | $ 0 | |
Predecessor | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 1,891 | |
Mortgage loans held for investment | 139 | |
Mortgage servicing rights | 2,937 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 9.5 | |
Predecessor | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 1,890.8 | |
Mortgage loans held for investment | 139 | |
Mortgage servicing rights | 2,937.4 | |
Derivative financial instruments | 65 | |
Total assets | 4,892.7 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 9.5 | |
Excess spread financing | 996.5 | |
Total liabilities | 1,010.8 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 0 | |
Mortgage loans held for investment | 0 | |
Mortgage servicing rights | 0 | |
Derivative financial instruments | 0 | |
Total assets | 0 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Total liabilities | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 1,890.8 | |
Mortgage loans held for investment | 0 | |
Mortgage servicing rights | 0 | |
Derivative financial instruments | 65 | |
Total assets | 1,955.3 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Total liabilities | 4.8 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale at fair value | 0 | |
Mortgage loans held for investment | 139 | |
Mortgage servicing rights | 2,937.4 | |
Derivative financial instruments | 0 | |
Total assets | 2,937.4 | |
LIABILITIES | ||
Mortgage servicing rights financing liability | 10 | |
Excess spread financing | 996.5 | |
Total liabilities | 1,006 | |
Predecessor | IRLCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 59.3 | |
Predecessor | IRLCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
Predecessor | IRLCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 59.3 | |
Predecessor | IRLCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
Predecessor | Forward MBS trades | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 2.4 | |
LIABILITIES | ||
Derivative financial instruments | 2.8 | |
Predecessor | Forward MBS trades | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Forward MBS trades | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 2.4 | |
LIABILITIES | ||
Derivative financial instruments | 2.8 | |
Predecessor | Forward MBS trades | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | LPCs | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0.9 | |
LIABILITIES | ||
Derivative financial instruments | 0.6 | |
Predecessor | LPCs | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | LPCs | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0.9 | |
LIABILITIES | ||
Derivative financial instruments | 0.6 | |
Predecessor | LPCs | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Eurodollar futures | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Eurodollar futures | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Eurodollar futures | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Eurodollar futures | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Treasury futures | Fair Value, Measurements, Recurring | ||
ASSETS | ||
Derivative financial instruments | 1.9 | |
LIABILITIES | ||
Derivative financial instruments | 1.4 | |
Predecessor | Treasury futures | Fair Value, Measurements, Recurring | Level 1 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | 0 | |
Predecessor | Treasury futures | Fair Value, Measurements, Recurring | Level 2 | ||
ASSETS | ||
Derivative financial instruments | 1.9 | |
LIABILITIES | ||
Derivative financial instruments | 1.4 | |
Predecessor | Treasury futures | Fair Value, Measurements, Recurring | Level 3 | ||
ASSETS | ||
Derivative financial instruments | 0 | |
LIABILITIES | ||
Derivative financial instruments | $ 0 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current Income Taxes | |||||||||||||
Federal | $ 0 | ||||||||||||
State | 0 | ||||||||||||
Total current income taxes | 0 | ||||||||||||
Deferred Income Taxes | |||||||||||||
Federal | (1,015) | ||||||||||||
State | (6) | ||||||||||||
Total deferred income taxes | (1,021) | ||||||||||||
Total income tax (benefit) expense | $ (979) | $ (42) | $ (1,021) | ||||||||||
Predecessor | |||||||||||||
Current Income Taxes | |||||||||||||
Federal | $ (14) | $ 52 | $ 14 | ||||||||||
State | (1) | 7 | 4 | ||||||||||
Total current income taxes | (15) | 59 | 18 | ||||||||||
Deferred Income Taxes | |||||||||||||
Federal | 54 | (43) | (4) | ||||||||||
State | 9 | (3) | (1) | ||||||||||
Total deferred income taxes | 63 | (46) | (5) | ||||||||||
Total income tax (benefit) expense | $ (19) | $ 21 | $ 46 | $ 17 | $ 5 | $ (10) | $ 1 | $ 48 | $ 13 | $ 13 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | |
Excess spread financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | $ 1,039 | ||
Total gains or losses included in earnings | 5 | ||
Payments received from borrowers | 0 | ||
Purchases, issuances, sales and settlements | |||
Purchases | 0 | ||
Issuances | 255 | ||
Sales | 0 | ||
Repayments | (38) | ||
Settlements | (77) | ||
Changes in fair value | 0 | ||
Balance - end of period | 1,184 | $ 1,039 | |
Mortgage servicing rights financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | 26 | ||
Total gains or losses included in earnings | 6 | ||
Payments received from borrowers | 0 | ||
Purchases, issuances, sales and settlements | |||
Purchases | 0 | ||
Issuances | 0 | ||
Sales | 0 | ||
Repayments | 0 | ||
Settlements | 0 | ||
Changes in fair value | 0 | ||
Balance - end of period | 32 | 26 | |
Forward mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | 3,413 | ||
Total gains or losses included in earnings | (236) | ||
Payments received from borrowers | 0 | ||
Purchases, issuances, sales and settlements | |||
Purchases | 479 | ||
Issuances | 120 | ||
Sales | (111) | ||
Repayments | 0 | ||
Settlements | 0 | ||
Changes in fair value | 0 | ||
Balance - end of period | 3,665 | 3,413 | |
Mortgage loans held for investment | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | 125 | ||
Total gains or losses included in earnings | (3) | ||
Payments received from borrowers | (5) | ||
Purchases, issuances, sales and settlements | |||
Purchases | 0 | ||
Issuances | 0 | ||
Sales | 0 | ||
Repayments | 0 | ||
Settlements | 0 | ||
Changes in fair value | 2 | ||
Balance - end of period | 119 | 125 | |
Predecessor | Excess spread financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | 1,039 | 996 | $ 1,214 |
Total gains or losses included in earnings | 81 | 12 | |
Purchases, issuances, sales and settlements | |||
Purchases | 0 | 0 | |
Issuances | 70 | 0 | |
Sales | 0 | 0 | |
Repayments | (3) | (23) | |
Settlements | (105) | (207) | |
Balance - end of period | 1,039 | 996 | |
Predecessor | Mortgage servicing rights financing | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | 26 | 10 | 27 |
Total gains or losses included in earnings | 16 | (17) | |
Purchases, issuances, sales and settlements | |||
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Sales | 0 | 0 | |
Repayments | 0 | ||
Settlements | 0 | 0 | |
Balance - end of period | 26 | 10 | |
Predecessor | Forward mortgage servicing rights | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance - beginning of period | $ 3,413 | 2,937 | 3,160 |
Total gains or losses included in earnings | 166 | (432) | |
Purchases, issuances, sales and settlements | |||
Purchases | 144 | 66 | |
Issuances | 162 | 203 | |
Sales | 4 | (60) | |
Repayments | 0 | 0 | |
Settlements | 0 | 0 | |
Balance - end of period | $ 3,413 | $ 2,937 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2018 | Mar. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 295 | |||
Tax benefit remeasurement of deferred tax assets and liabilities | 3 | |||
Unrecognized tax benefits, uncertain tax positions | $ 19 | |||
Interest and penalties expense | $ 2 | |||
Unrecognized tax benefits, net effect | $ 6 | |||
WMIH Corp | ||||
Tax Credit Carryforward [Line Items] | ||||
Valuation allowance | $ 1,300 | |||
Federal Net Operating Loss Carryforwards And Other Deferred Tax Assets | ||||
Tax Credit Carryforward [Line Items] | ||||
Release of valuation allowance | $ 990 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | ||
Restricted cash | $ 319 | |
Reverse mortgage interests, net | 7,934 | |
Mortgage loans held for sale | 1,631 | |
Mortgage loans held for investment, net | 119 | |
Financial liabilities | ||
Unsecured senior notes | 2,459 | |
Advance facilities, net | 595 | |
Warehouse facilities | 2,349 | |
Other nonrecourse debt, net | 6,795 | |
Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 5,607 | |
Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 231 | |
Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 284 | |
Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 250 | |
Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 326 | |
Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 29 | |
Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents | 242 | |
Restricted cash | 319 | |
Advances and other receivables, net | 1,194 | |
Reverse mortgage interests, net | 7,934 | |
Mortgage loans held for sale | 1,630.8 | |
Mortgage loans held for investment, net | 119.1 | |
Derivative financial instruments | 49 | |
Financial liabilities | ||
Unsecured senior notes | 2,459 | |
Advance facilities, net | 595 | |
Warehouse facilities | 2,349 | |
Mortgage servicing rights financing liability | 31.7 | |
Excess spread financing | 1,184 | |
Derivative financial instruments | 20 | |
Fair Value, Measurements, Recurring | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 5,675 | |
Fair Value, Measurements, Recurring | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 231 | |
Fair Value, Measurements, Recurring | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 284 | |
Fair Value, Measurements, Recurring | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 250 | |
Fair Value, Measurements, Recurring | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 326 | |
Fair Value, Measurements, Recurring | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 29 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 242 | |
Restricted cash | 319 | |
Advances and other receivables, net | 0 | |
Reverse mortgage interests, net | 0 | |
Mortgage loans held for sale | 0 | |
Mortgage loans held for investment, net | 0 | |
Derivative financial instruments | 0 | |
Financial liabilities | ||
Unsecured senior notes | 2,451 | |
Advance facilities, net | 0 | |
Warehouse facilities | 0 | |
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Derivative financial instruments | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Advances and other receivables, net | 0 | |
Reverse mortgage interests, net | 0 | |
Mortgage loans held for sale | 1,630.8 | |
Mortgage loans held for investment, net | 0 | |
Derivative financial instruments | 49 | |
Financial liabilities | ||
Unsecured senior notes | 0 | |
Advance facilities, net | 595 | |
Warehouse facilities | 2,349 | |
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Derivative financial instruments | 20 | |
Fair Value, Measurements, Recurring | Level 2 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 2 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Advances and other receivables, net | 1,194 | |
Reverse mortgage interests, net | 7,942 | |
Mortgage loans held for sale | 0 | |
Mortgage loans held for investment, net | 119.1 | |
Derivative financial instruments | 0 | |
Financial liabilities | ||
Unsecured senior notes | 0 | |
Advance facilities, net | 0 | |
Warehouse facilities | 0 | |
Mortgage servicing rights financing liability | 31.7 | |
Excess spread financing | 1,184 | |
Derivative financial instruments | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 5,672 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 230 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 284 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 249 | |
Fair Value, Measurements, Recurring | Level 3 | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 326 | |
Fair Value, Measurements, Recurring | Level 3 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | $ 28 | |
Predecessor | ||
Financial assets | ||
Restricted cash | $ 360 | |
Reverse mortgage interests, net | 9,984 | |
Mortgage loans held for sale | 1,891 | |
Mortgage loans held for investment, net | 139 | |
Financial liabilities | ||
Unsecured senior notes | 1,874 | |
Advance facilities, net | 855 | |
Warehouse facilities | 3,285 | |
Mortgage servicing rights financing liability | 9.5 | |
Other nonrecourse debt, net | 8,014 | |
Predecessor | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 7,111 | |
Predecessor | Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 94 | |
Predecessor | Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 138 | |
Predecessor | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 213 | |
Predecessor | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 365 | |
Predecessor | Trust 2018-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Trust 2018-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Trust 2018-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 42 | |
Predecessor | Fair Value, Measurements, Recurring | ||
Financial assets | ||
Cash and cash equivalents | 215 | |
Restricted cash | 360 | |
Advances and other receivables, net | 1,706 | |
Reverse mortgage interests, net | 9,984 | |
Mortgage loans held for sale | 1,890.8 | |
Mortgage loans held for investment, net | 139 | |
Derivative financial instruments | 65 | |
Financial liabilities | ||
Unsecured senior notes | 1,874 | |
Advance facilities, net | 855 | |
Warehouse facilities | 3,285 | |
Mortgage servicing rights financing liability | 9.5 | |
Excess spread financing | 996 | |
Derivative financial instruments | 5 | |
Predecessor | Fair Value, Measurements, Recurring | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 7,167 | |
Predecessor | Fair Value, Measurements, Recurring | Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 94 | |
Predecessor | Fair Value, Measurements, Recurring | Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 138 | |
Predecessor | Fair Value, Measurements, Recurring | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 213 | |
Predecessor | Fair Value, Measurements, Recurring | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 365 | |
Predecessor | Fair Value, Measurements, Recurring | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 37 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 215 | |
Restricted cash | 360 | |
Advances and other receivables, net | 0 | |
Reverse mortgage interests, net | 0 | |
Mortgage loans held for sale | 0 | |
Mortgage loans held for investment, net | 0 | |
Derivative financial instruments | 0 | |
Financial liabilities | ||
Unsecured senior notes | 1,912 | |
Advance facilities, net | 0 | |
Warehouse facilities | 0 | |
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Derivative financial instruments | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 1 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Advances and other receivables, net | 0 | |
Reverse mortgage interests, net | 0 | |
Mortgage loans held for sale | 1,890.8 | |
Mortgage loans held for investment, net | 0 | |
Derivative financial instruments | 65 | |
Financial liabilities | ||
Unsecured senior notes | 0 | |
Advance facilities, net | 855 | |
Warehouse facilities | 3,286 | |
Mortgage servicing rights financing liability | 0 | |
Excess spread financing | 0 | |
Derivative financial instruments | 5 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 7,353 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 2 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Advances and other receivables, net | 1,706 | |
Reverse mortgage interests, net | 10,164 | |
Mortgage loans held for sale | 0 | |
Mortgage loans held for investment, net | 139 | |
Derivative financial instruments | 0 | |
Financial liabilities | ||
Unsecured senior notes | 0 | |
Advance facilities, net | 0 | |
Warehouse facilities | 0 | |
Mortgage servicing rights financing liability | 10 | |
Excess spread financing | 996 | |
Derivative financial instruments | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Participating interest financing | ||
Financial liabilities | ||
Other nonrecourse debt, net | 0 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Trust 2016-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 112 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Trust 2016-3 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 155 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Trust 2017-1 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 225 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Trust 2017-2 | ||
Financial liabilities | ||
Other nonrecourse debt, net | 371 | |
Predecessor | Fair Value, Measurements, Recurring | Level 3 | Nonrecourse debt - legacy assets | ||
Financial liabilities | ||
Other nonrecourse debt, net | $ 36 |
Income Taxes - Income Taxes at
Income Taxes - Income Taxes at federal statutory rate (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate | $ (29) | ||||||||||||
State taxes, net of federal benefit | (6) | ||||||||||||
Non-controlling interests | 0 | ||||||||||||
Decrease of federal valuation allowance | (990) | ||||||||||||
Deferred adjustments | 3 | ||||||||||||
Federal tax reform impact | 0 | ||||||||||||
Current payable adjustments | 0 | ||||||||||||
Adjustments related to uncertain tax positions | 0 | ||||||||||||
Other, net | 1 | ||||||||||||
Total income tax (benefit) expense | $ (979) | $ (42) | $ (1,021) | ||||||||||
Percent | |||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate | 21.00% | 21.00% | |||||||||||
State taxes, net of federal benefit | 4.20% | ||||||||||||
Non-controlling interests | (0.00%) | ||||||||||||
Decrease of federal valuation allowance | 720.00% | ||||||||||||
Deferred adjustments | (1.80%) | ||||||||||||
Federal tax reform impact | 0.00% | ||||||||||||
Current payable adjustments | (0.00%) | ||||||||||||
Adjustments related to uncertain tax positions | 0.00% | ||||||||||||
Other, net | (1.00%) | ||||||||||||
Total income tax (benefit) expense | 742.40% | ||||||||||||
Predecessor | |||||||||||||
Amount | |||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate | $ 42 | $ 15 | $ 10 | ||||||||||
State taxes, net of federal benefit | 8 | 1 | 1 | ||||||||||
Non-controlling interests | 0 | 0 | 1 | ||||||||||
Decrease of federal valuation allowance | 0 | (1) | 0 | ||||||||||
Deferred adjustments | (1) | 0 | 1 | ||||||||||
Federal tax reform impact | 0 | (5) | 0 | ||||||||||
Current payable adjustments | (1) | 0 | 1 | ||||||||||
Adjustments related to uncertain tax positions | 0 | 1 | 0 | ||||||||||
Other, net | 0 | 2 | (1) | ||||||||||
Total income tax (benefit) expense | $ (19) | $ 21 | $ 46 | $ 17 | $ 5 | $ (10) | $ 1 | $ 48 | $ 13 | $ 13 | |||
Percent | |||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate | 21.00% | 35.00% | 35.00% | ||||||||||
State taxes, net of federal benefit | 3.80% | 1.90% | 5.00% | ||||||||||
Non-controlling interests | (0.00%) | (0.30%) | 3.40% | ||||||||||
Decrease of federal valuation allowance | 0.00% | (1.20%) | 0.00% | ||||||||||
Deferred adjustments | (0.50%) | 0.00% | 2.30% | ||||||||||
Federal tax reform impact | 0.00% | (12.60%) | 0.00% | ||||||||||
Current payable adjustments | (0.50%) | (0.00%) | 1.90% | ||||||||||
Adjustments related to uncertain tax positions | 0.00% | 2.40% | 0.00% | ||||||||||
Other, net | 0.00% | 3.70% | (2.40%) | ||||||||||
Total income tax (benefit) expense | 23.80% | 28.90% | 45.20% |
Income Taxes - Carryforward and
Income Taxes - Carryforward and Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets | ||
Loss carryforwards (federal, state and capital) | $ 1,334 | |
Excess interest expense | 10 | |
Reverse mortgage interests | 68 | |
Loss reserves | 69 | |
Reverse mortgage premiums | 1 | |
Rent expense | 1 | |
Restricted share based compensation | 1 | |
Accruals | 14 | |
Partnership interests | 7 | |
Reverse mortgage purchase discount | 1 | |
Goodwill and intangible assets | 4 | |
Other, net | 5 | |
Total deferred tax assets | 1,515 | |
Deferred Tax Liabilities | ||
MSR amortization and mark-to-market, net | (243) | |
Depreciation and amortization, net | (12) | |
Prepaid assets | (1) | |
Goodwill and intangible assets | 0 | |
Total deferred tax liabilities | (256) | |
Valuation allowance | (295) | |
Net deferred tax assets (liabilities) | $ 964 | |
Predecessor | ||
Deferred Tax Assets | ||
Loss carryforwards (federal, state and capital) | $ 37 | |
Excess interest expense | 0 | |
Reverse mortgage interests | 0 | |
Loss reserves | 81 | |
Reverse mortgage premiums | 15 | |
Rent expense | 4 | |
Restricted share based compensation | 6 | |
Accruals | 10 | |
Partnership interests | 5 | |
Reverse mortgage purchase discount | 24 | |
Goodwill and intangible assets | 0 | |
Other, net | 3 | |
Total deferred tax assets | 185 | |
Deferred Tax Liabilities | ||
MSR amortization and mark-to-market, net | (174) | |
Depreciation and amortization, net | (20) | |
Prepaid assets | (2) | |
Goodwill and intangible assets | (1) | |
Total deferred tax liabilities | (197) | |
Valuation allowance | (4) | |
Net deferred tax assets (liabilities) | $ (16) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits Rollforward (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance - beginning of period | $ 0 | |||
Increases in tax positions of current year | 0 | |||
Increases in tax positions of prior years | 0 | |||
Decreases in tax positions of prior years | 0 | |||
Settlements | 0 | |||
Balance - end of period | 0 | $ 0 | ||
Predecessor | ||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Balance - beginning of period | $ 0 | 17 | $ 0 | $ 0 |
Increases in tax positions of current year | 0 | 1 | 0 | |
Increases in tax positions of prior years | 0 | 20 | 0 | |
Decreases in tax positions of prior years | (17) | 0 | 0 | |
Settlements | 0 | (4) | 0 | |
Balance - end of period | $ 0 | $ 17 | $ 0 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Matching contributions amount | $ 7 | $ 10 | $ 15 | $ 16 | |
Tranche One | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer percent match of contribution | 100.00% | ||||
Percent match of gross pay | 2.00% | ||||
Tranche Two | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Employer percent match of contribution | 50.00% | ||||
Percent match of gross pay | 4.00% |
Capital Requirements (Details)
Capital Requirements (Details) $ in Millions | Dec. 31, 2018USD ($) |
Mortgage Banking [Abstract] | |
Minimum net worth required for compliance | $ 809 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 5 Months Ended | 7 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Servicing Rights [Line Items] | ||||
Rental expense | $ 16 | $ 19 | $ 31 | $ 26 |
Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Legal fees | 22 | $ 40 | 40 | $ 64 |
Reverse Mortgage Servicing Rights, Excluding Subservicing | ||||
Mortgage Servicing Rights [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 28,415 | 34,635 | ||
Reverse mortgage interests, net | ||||
Mortgage Servicing Rights [Line Items] | ||||
Principal amount outstanding on mortgage servicing rights | 28,415 | 35,112 | ||
Maximum unfunded advance obligation | 3,128 | $ 3,713 | ||
Minimum | Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Reasonably possible loss | 4 | |||
Maximum | Litigation and Regulatory Matters | ||||
Mortgage Servicing Rights [Line Items] | ||||
Reasonably possible loss | $ 16 |
Commitments and Contingencies_2
Commitments and Contingencies - Lease Commitments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 32 |
2020 | 30 |
2021 | 24 |
2022 | 16 |
2023 and thereafter | 46 |
Total minimum lease payments | 148 |
Less: Amounts representing interest | 0 |
Present value of minimum lease payments | 148 |
Capital Leases | |
2019 | 2 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 and thereafter | 0 |
Total minimum lease payments | 2 |
Less: Amounts representing interest | 0 |
Present value of minimum lease payments | $ 2 |
Business Segment Reporting - Fi
Business Segment Reporting - Financial Information (Details) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||||
Number of reportable segments | segment | 4 | |||||||||||||
Revenues: | ||||||||||||||
Service related, net | $ 259 | $ 159 | $ 418 | |||||||||||
Net gain on mortgage loans held for sale | 83 | 93 | 176 | |||||||||||
Total revenues | 342 | 252 | 594 | |||||||||||
Total expenses | 275 | 432 | 707 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 256 | |||||||||||||
Interest expense | (293) | |||||||||||||
Other income (expense) | 13 | |||||||||||||
Total other income (expenses), net | (26) | 2 | (24) | |||||||||||
(Loss) income before income tax (benefit) expense | $ 41 | (178) | (137) | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 39 | |||||||||||||
Total assets | 16,973 | 16,973 | $ 16,973 | |||||||||||
Eliminations | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | (19) | |||||||||||||
Net gain on mortgage loans held for sale | 19 | |||||||||||||
Total revenues | 0 | |||||||||||||
Total expenses | 0 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 0 | |||||||||||||
Interest expense | 0 | |||||||||||||
Other income (expense) | 0 | |||||||||||||
Total other income (expenses), net | 0 | |||||||||||||
(Loss) income before income tax (benefit) expense | 0 | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | |||||||||||||
Total assets | (3,772) | (3,772) | (3,772) | |||||||||||
Total Operating Segments | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 418 | |||||||||||||
Net gain on mortgage loans held for sale | 176 | |||||||||||||
Total revenues | 594 | |||||||||||||
Total expenses | 636 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 249 | |||||||||||||
Interest expense | (200) | |||||||||||||
Other income (expense) | 12 | |||||||||||||
Total other income (expenses), net | 61 | |||||||||||||
(Loss) income before income tax (benefit) expense | 19 | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 19 | |||||||||||||
Total assets | 15,072 | 15,072 | 15,072 | |||||||||||
Total Operating Segments | Servicing | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 236 | |||||||||||||
Net gain on mortgage loans held for sale | 0 | |||||||||||||
Total revenues | 236 | |||||||||||||
Total expenses | 303 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 222 | |||||||||||||
Interest expense | (173) | |||||||||||||
Other income (expense) | 6 | |||||||||||||
Total other income (expenses), net | 55 | |||||||||||||
(Loss) income before income tax (benefit) expense | (12) | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 9 | |||||||||||||
Total assets | 13,485 | 13,485 | 13,485 | |||||||||||
Total Operating Segments | Originations | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 24 | |||||||||||||
Net gain on mortgage loans held for sale | 157 | |||||||||||||
Total revenues | 181 | |||||||||||||
Total expenses | 155 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 27 | |||||||||||||
Interest expense | (26) | |||||||||||||
Other income (expense) | 5 | |||||||||||||
Total other income (expenses), net | 6 | |||||||||||||
(Loss) income before income tax (benefit) expense | 32 | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 5 | |||||||||||||
Total assets | 4,866 | 4,866 | 4,866 | |||||||||||
Total Operating Segments | Xome | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 177 | |||||||||||||
Net gain on mortgage loans held for sale | 0 | |||||||||||||
Total revenues | 177 | |||||||||||||
Total expenses | 178 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 0 | |||||||||||||
Interest expense | (1) | |||||||||||||
Other income (expense) | 1 | |||||||||||||
Total other income (expenses), net | 0 | |||||||||||||
(Loss) income before income tax (benefit) expense | (1) | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 5 | |||||||||||||
Total assets | 493 | 493 | 493 | |||||||||||
Corporate and Other | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 0 | |||||||||||||
Net gain on mortgage loans held for sale | 0 | |||||||||||||
Total revenues | 0 | |||||||||||||
Total expenses | 71 | |||||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 7 | |||||||||||||
Interest expense | (93) | |||||||||||||
Other income (expense) | 1 | |||||||||||||
Total other income (expenses), net | (85) | |||||||||||||
(Loss) income before income tax (benefit) expense | (156) | |||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 20 | |||||||||||||
Total assets | $ 1,901 | $ 1,901 | $ 1,901 | |||||||||||
Predecessor | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | $ 120 | $ 317 | $ 464 | $ 295 | $ 252 | $ 213 | $ 283 | $ 901 | $ 1,043 | $ 1,122 | ||||
Net gain on mortgage loans held for sale | 44 | 127 | 124 | 142 | 154 | 167 | 144 | 295 | 607 | 793 | ||||
Total revenues | 164 | 444 | 588 | 437 | 406 | 380 | 427 | 1,196 | 1,650 | 1,915 | ||||
Total expenses | 242 | 339 | 364 | 366 | 368 | 369 | 372 | 945 | 1,475 | 1,644 | ||||
Other income (expenses): | ||||||||||||||
Interest income | 333 | 597 | 425 | |||||||||||
Interest expense | (388) | (731) | (665) | |||||||||||
Other income (expense) | 6 | 3 | (2) | |||||||||||
Total other income (expenses), net | (5) | (26) | (18) | (13) | (26) | (40) | (52) | (49) | (131) | (242) | ||||
(Loss) income before income tax (benefit) expense | (83) | $ 79 | $ 206 | 58 | $ 12 | $ (29) | $ 3 | 202 | 44 | 29 | ||||
Depreciation and amortization for property and equipment and intangible assets | 33 | 59 | 63 | |||||||||||
Total assets | 17,026 | 18,036 | 17,026 | 18,036 | 19,593 | |||||||||
Predecessor | Eliminations | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | (25) | (79) | (118) | |||||||||||
Net gain on mortgage loans held for sale | 25 | 79 | 118 | |||||||||||
Total revenues | 0 | 0 | 0 | |||||||||||
Total expenses | 0 | 0 | 0 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Other income (expense) | 0 | 0 | 0 | |||||||||||
Total other income (expenses), net | 0 | 0 | 0 | |||||||||||
(Loss) income before income tax (benefit) expense | 0 | 0 | 0 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | 0 | 0 | |||||||||||
Total assets | (3,591) | (3,117) | (3,591) | (3,117) | (2,448) | |||||||||
Predecessor | Total Operating Segments | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 900 | 1,041 | 1,121 | |||||||||||
Net gain on mortgage loans held for sale | 295 | 607 | 793 | |||||||||||
Total revenues | 1,195 | 1,648 | 1,914 | |||||||||||
Total expenses | 842 | 1,377 | 1,515 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 326 | 582 | 410 | |||||||||||
Interest expense | (305) | (577) | (500) | |||||||||||
Other income (expense) | 8 | 6 | (1) | |||||||||||
Total other income (expenses), net | 29 | 11 | (91) | |||||||||||
(Loss) income before income tax (benefit) expense | 382 | 282 | 308 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 29 | 47 | 55 | |||||||||||
Total assets | 16,113 | 17,217 | 16,113 | 17,217 | 18,653 | |||||||||
Predecessor | Total Operating Segments | Servicing | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 740 | 766 | 753 | |||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | |||||||||||
Total revenues | 740 | 766 | 753 | |||||||||||
Total expenses | 474 | 691 | 634 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 288 | 527 | 347 | |||||||||||
Interest expense | (268) | (523) | (442) | |||||||||||
Other income (expense) | (1) | (3) | 0 | |||||||||||
Total other income (expenses), net | 19 | 1 | (95) | |||||||||||
(Loss) income before income tax (benefit) expense | 285 | 76 | 24 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 15 | 23 | 23 | |||||||||||
Total assets | 14,578 | 15,006 | 14,578 | 15,006 | 16,189 | |||||||||
Predecessor | Total Operating Segments | Originations | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 36 | 63 | 63 | |||||||||||
Net gain on mortgage loans held for sale | 270 | 528 | 675 | |||||||||||
Total revenues | 306 | 591 | 738 | |||||||||||
Total expenses | 245 | 439 | 527 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 38 | 55 | 63 | |||||||||||
Interest expense | (37) | (54) | (58) | |||||||||||
Other income (expense) | 0 | 0 | (1) | |||||||||||
Total other income (expenses), net | 1 | 1 | 4 | |||||||||||
(Loss) income before income tax (benefit) expense | 62 | 153 | 215 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 7 | 10 | 11 | |||||||||||
Total assets | 4,701 | 4,935 | 4,701 | 4,935 | 4,563 | |||||||||
Predecessor | Total Operating Segments | Xome | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 149 | 291 | 423 | |||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | |||||||||||
Total revenues | 149 | 291 | 423 | |||||||||||
Total expenses | 123 | 247 | 354 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Other income (expense) | 9 | 9 | 0 | |||||||||||
Total other income (expenses), net | 9 | 9 | 0 | |||||||||||
(Loss) income before income tax (benefit) expense | 35 | 53 | 69 | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 7 | 14 | 21 | |||||||||||
Total assets | 425 | 393 | 425 | 393 | 349 | |||||||||
Predecessor | Corporate and Other | ||||||||||||||
Revenues: | ||||||||||||||
Service related, net | 1 | 2 | 1 | |||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | |||||||||||
Total revenues | 1 | 2 | 1 | |||||||||||
Total expenses | 103 | 98 | 129 | |||||||||||
Other income (expenses): | ||||||||||||||
Interest income | 7 | 15 | 15 | |||||||||||
Interest expense | (83) | (154) | (165) | |||||||||||
Other income (expense) | (2) | (3) | (1) | |||||||||||
Total other income (expenses), net | (78) | (142) | (151) | |||||||||||
(Loss) income before income tax (benefit) expense | (180) | (238) | (279) | |||||||||||
Depreciation and amortization for property and equipment and intangible assets | 4 | 12 | 8 | |||||||||||
Total assets | $ 913 | $ 819 | $ 913 | $ 819 | $ 940 |
Guarantor Financial Statement_3
Guarantor Financial Statement Information - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($)subsidiary |
Unsecured senior notes, net | $ 2,459 |
Ownership percentage | 100.00% |
Number of direct wholly owned subsidiaries | subsidiary | 3 |
Unsecured Senior Notes | |
Unsecured senior notes principal amount | $ 2,498 |
Unsecured senior notes, net | $ 2,459 |
$600 face value, 6.500% interest rate payable semi-annually, due July 2021 | Unsecured Senior Notes | |
Interest rate | 6.50% |
Unsecured senior notes principal amount | $ 592 |
$300 face value, 6.500% interest rate payable semi-annually, due June 2022 | Unsecured Senior Notes | |
Interest rate | 6.50% |
Unsecured senior notes principal amount | $ 206 |
Guarantor Financial Statement_4
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||||
Cash and cash equivalents | $ 242 | ||||
Restricted cash | 319 | ||||
Mortgage servicing rights | 3,676 | ||||
Advances and other receivables, net | 1,194 | ||||
Reverse mortgage interests, net | 7,934 | ||||
Mortgage loans held for sale at fair value | 1,631 | ||||
Mortgage loans held for investment, net | 119 | ||||
Property and equipment, net | 96 | ||||
Deferred tax asset, net | 967 | ||||
Other assets | 795 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 16,973 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 2,459 | ||||
Advance facilities, net | 595 | ||||
Warehouse facilities, net | 2,349 | ||||
Payables and accrued liabilities | 1,543 | ||||
MSR related liabilities - nonrecourse at fair value | 1,216 | ||||
Mortgage servicing liabilities | 71 | ||||
Other nonrecourse debt, net | 6,795 | ||||
Payables to affiliates | 0 | ||||
Total liabilities | 15,028 | ||||
Total stockholders’ equity | 1,945 | $ 1,056 | |||
Total liabilities and stockholders’ equity | 16,973 | ||||
Reportable legal entities | Mr. Cooper | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Deferred tax asset, net | 973 | ||||
Other assets | 0 | ||||
Investment in subsidiaries | 2,820 | ||||
Total assets | 3,793 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 1,660 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 49 | ||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | 139 | ||||
Total liabilities | 1,848 | ||||
Total stockholders’ equity | 1,945 | ||||
Total liabilities and stockholders’ equity | 3,793 | ||||
Reportable legal entities | Issuer | |||||
Assets | |||||
Cash and cash equivalents | 193 | ||||
Restricted cash | 186 | ||||
Mortgage servicing rights | 3,644 | ||||
Advances and other receivables, net | 1,194 | ||||
Reverse mortgage interests, net | 6,770 | ||||
Mortgage loans held for sale at fair value | 1,631 | ||||
Mortgage loans held for investment, net | 1 | ||||
Property and equipment, net | 84 | ||||
Deferred tax asset, net | 0 | ||||
Other assets | 660 | ||||
Investment in subsidiaries | 601 | ||||
Total assets | 14,964 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 799 | ||||
Advance facilities, net | 90 | ||||
Warehouse facilities, net | 2,349 | ||||
Payables and accrued liabilities | 1,413 | ||||
MSR related liabilities - nonrecourse at fair value | 1,197 | ||||
Mortgage servicing liabilities | 71 | ||||
Other nonrecourse debt, net | 5,676 | ||||
Payables to affiliates | 549 | ||||
Total liabilities | 12,144 | ||||
Total stockholders’ equity | 2,820 | ||||
Total liabilities and stockholders’ equity | 14,964 | ||||
Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||
Assets | |||||
Cash and cash equivalents | 1 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Deferred tax asset, net | 0 | ||||
Other assets | 202 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 203 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 1 | ||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | 0 | ||||
Total liabilities | 1 | ||||
Total stockholders’ equity | 202 | ||||
Total liabilities and stockholders’ equity | 203 | ||||
Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||
Assets | |||||
Cash and cash equivalents | 48 | ||||
Restricted cash | 133 | ||||
Mortgage servicing rights | 32 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 1,164 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 118 | ||||
Property and equipment, net | 12 | ||||
Deferred tax asset, net | (6) | ||||
Other assets | 621 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 2,122 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 505 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 80 | ||||
MSR related liabilities - nonrecourse at fair value | 19 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 1,119 | ||||
Payables to affiliates | 0 | ||||
Total liabilities | 1,723 | ||||
Total stockholders’ equity | 399 | ||||
Total liabilities and stockholders’ equity | 2,122 | ||||
Eliminations | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Deferred tax asset, net | 0 | ||||
Other assets | (688) | ||||
Investment in subsidiaries | (3,421) | ||||
Total assets | (4,109) | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | |||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | (688) | ||||
Total liabilities | (688) | ||||
Total stockholders’ equity | (3,421) | ||||
Total liabilities and stockholders’ equity | $ (4,109) | ||||
Predecessor | |||||
Assets | |||||
Cash and cash equivalents | 166 | $ 215 | $ 489 | ||
Restricted cash | 360 | ||||
Mortgage servicing rights | 2,941 | ||||
Advances and other receivables, net | 1,706 | ||||
Reverse mortgage interests, net | 9,984 | ||||
Mortgage loans held for sale at fair value | 1,891 | ||||
Mortgage loans held for investment, net | 139 | ||||
Property and equipment, net | 121 | ||||
Deferred tax asset, net | 0 | ||||
Other assets | 679 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 17,026 | 18,036 | 19,593 | ||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 1,874 | ||||
Advance facilities, net | 855 | ||||
Warehouse facilities, net | 3,285 | ||||
Payables and accrued liabilities | 1,239 | ||||
MSR related liabilities - nonrecourse at fair value | 1,006 | ||||
Mortgage servicing liabilities | 41 | ||||
Other nonrecourse debt, net | 8,014 | ||||
Payables to affiliates | 0 | ||||
Total liabilities | 16,314 | ||||
Total stockholders’ equity | $ 1,883 | 1,722 | $ 1,683 | $ 1,767 | |
Total liabilities and stockholders’ equity | 18,036 | ||||
Predecessor | Reportable legal entities | Mr. Cooper | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Other assets | 0 | ||||
Investment in subsidiaries | 1,846 | ||||
Total assets | 1,846 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 0 | ||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | 124 | ||||
Total liabilities | 124 | ||||
Total stockholders’ equity | 1,722 | ||||
Total liabilities and stockholders’ equity | 1,846 | ||||
Predecessor | Reportable legal entities | Issuer | |||||
Assets | |||||
Cash and cash equivalents | 195 | ||||
Restricted cash | 228 | ||||
Mortgage servicing rights | 2,910 | ||||
Advances and other receivables, net | 1,706 | ||||
Reverse mortgage interests, net | 9,110 | ||||
Mortgage loans held for sale at fair value | 1,891 | ||||
Mortgage loans held for investment, net | 1 | ||||
Property and equipment, net | 102 | ||||
Other assets | 585 | ||||
Investment in subsidiaries | 522 | ||||
Total assets | 17,250 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 1,874 | ||||
Advance facilities, net | 106 | ||||
Warehouse facilities, net | 3,285 | ||||
Payables and accrued liabilities | 1,202 | ||||
MSR related liabilities - nonrecourse at fair value | 987 | ||||
Mortgage servicing liabilities | 41 | ||||
Other nonrecourse debt, net | 7,167 | ||||
Payables to affiliates | 742 | ||||
Total liabilities | 15,404 | ||||
Total stockholders’ equity | 1,846 | ||||
Total liabilities and stockholders’ equity | 17,250 | ||||
Predecessor | Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||
Assets | |||||
Cash and cash equivalents | 1 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Other assets | 182 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 183 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 1 | ||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | 0 | ||||
Total liabilities | 1 | ||||
Total stockholders’ equity | 182 | ||||
Total liabilities and stockholders’ equity | 183 | ||||
Predecessor | Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||
Assets | |||||
Cash and cash equivalents | 19 | ||||
Restricted cash | 132 | ||||
Mortgage servicing rights | 31 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 874 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 138 | ||||
Property and equipment, net | 19 | ||||
Other assets | 779 | ||||
Investment in subsidiaries | 0 | ||||
Total assets | 1,992 | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 749 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 36 | ||||
MSR related liabilities - nonrecourse at fair value | 19 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 847 | ||||
Payables to affiliates | 1 | ||||
Total liabilities | 1,652 | ||||
Total stockholders’ equity | 340 | ||||
Total liabilities and stockholders’ equity | 1,992 | ||||
Predecessor | Eliminations | |||||
Assets | |||||
Cash and cash equivalents | 0 | ||||
Restricted cash | 0 | ||||
Mortgage servicing rights | 0 | ||||
Advances and other receivables, net | 0 | ||||
Reverse mortgage interests, net | 0 | ||||
Mortgage loans held for sale at fair value | 0 | ||||
Mortgage loans held for investment, net | 0 | ||||
Property and equipment, net | 0 | ||||
Other assets | (867) | ||||
Investment in subsidiaries | (2,368) | ||||
Total assets | (3,235) | ||||
Liabilities and Stockholders’ Equity | |||||
Unsecured senior notes, net | 0 | ||||
Advance facilities, net | 0 | ||||
Warehouse facilities, net | 0 | ||||
Payables and accrued liabilities | 0 | ||||
MSR related liabilities - nonrecourse at fair value | 0 | ||||
Mortgage servicing liabilities | 0 | ||||
Other nonrecourse debt, net | 0 | ||||
Payables to affiliates | (867) | ||||
Total liabilities | (867) | ||||
Total stockholders’ equity | (2,368) | ||||
Total liabilities and stockholders’ equity | $ (3,235) |
Guarantor Financial Statement_5
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements | |||||||||||||
Service related, net | $ 259 | $ 159 | $ 418 | ||||||||||
Net gain on mortgage loans held for sale | 83 | 93 | 176 | ||||||||||
Total revenues | 342 | 252 | 594 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 337 | ||||||||||||
General and administrative | 370 | ||||||||||||
Total expenses | 275 | 432 | 707 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 256 | ||||||||||||
Interest expense | (293) | ||||||||||||
Other income (expenses) | 13 | ||||||||||||
Gain (loss) from subsidiaries | 0 | ||||||||||||
Total other income (expenses), net | (26) | 2 | (24) | ||||||||||
(Loss) income before income tax (benefit) expense | 41 | (178) | (137) | ||||||||||
Less: Income tax (benefit) expense | (979) | (42) | (1,021) | ||||||||||
Net income (loss) | 1,020 | (136) | 884 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | $ 1,020 | $ (136) | 884 | ||||||||||
Reportable legal entities | Mr. Cooper | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 0 | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Total revenues | 0 | ||||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 1 | ||||||||||||
General and administrative | 0 | ||||||||||||
Total expenses | 1 | ||||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | ||||||||||||
Interest expense | (64) | ||||||||||||
Other income (expenses) | 1 | ||||||||||||
Gain (loss) from subsidiaries | (44) | ||||||||||||
Total other income (expenses), net | (107) | ||||||||||||
(Loss) income before income tax (benefit) expense | (108) | ||||||||||||
Less: Income tax (benefit) expense | (992) | ||||||||||||
Net income (loss) | 884 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
Net income attributable to Successor/Predecessor | 884 | ||||||||||||
Reportable legal entities | Issuer | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 233 | ||||||||||||
Net gain on mortgage loans held for sale | 175 | ||||||||||||
Total revenues | 408 | ||||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 258 | ||||||||||||
General and administrative | 262 | ||||||||||||
Total expenses | 520 | ||||||||||||
Other income (expenses): | |||||||||||||
Interest income | 237 | ||||||||||||
Interest expense | (211) | ||||||||||||
Other income (expenses) | 11 | ||||||||||||
Gain (loss) from subsidiaries | 2 | ||||||||||||
Total other income (expenses), net | 39 | ||||||||||||
(Loss) income before income tax (benefit) expense | (73) | ||||||||||||
Less: Income tax (benefit) expense | (29) | ||||||||||||
Net income (loss) | (44) | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
Net income attributable to Successor/Predecessor | (44) | ||||||||||||
Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 9 | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Total revenues | 9 | ||||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 2 | ||||||||||||
General and administrative | 1 | ||||||||||||
Total expenses | 3 | ||||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | ||||||||||||
Interest expense | 0 | ||||||||||||
Other income (expenses) | 0 | ||||||||||||
Gain (loss) from subsidiaries | 0 | ||||||||||||
Total other income (expenses), net | 0 | ||||||||||||
(Loss) income before income tax (benefit) expense | 6 | ||||||||||||
Less: Income tax (benefit) expense | 0 | ||||||||||||
Net income (loss) | 6 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
Net income attributable to Successor/Predecessor | 6 | ||||||||||||
Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 176 | ||||||||||||
Net gain on mortgage loans held for sale | 1 | ||||||||||||
Total revenues | 177 | ||||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 76 | ||||||||||||
General and administrative | 107 | ||||||||||||
Total expenses | 183 | ||||||||||||
Other income (expenses): | |||||||||||||
Interest income | 19 | ||||||||||||
Interest expense | (18) | ||||||||||||
Other income (expenses) | 1 | ||||||||||||
Gain (loss) from subsidiaries | 0 | ||||||||||||
Total other income (expenses), net | 2 | ||||||||||||
(Loss) income before income tax (benefit) expense | (4) | ||||||||||||
Less: Income tax (benefit) expense | 0 | ||||||||||||
Net income (loss) | (4) | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
Net income attributable to Successor/Predecessor | (4) | ||||||||||||
Eliminations | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 0 | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Total revenues | 0 | ||||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 0 | ||||||||||||
General and administrative | 0 | ||||||||||||
Total expenses | 0 | ||||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | ||||||||||||
Interest expense | 0 | ||||||||||||
Other income (expenses) | 0 | ||||||||||||
Gain (loss) from subsidiaries | 42 | ||||||||||||
Total other income (expenses), net | 42 | ||||||||||||
(Loss) income before income tax (benefit) expense | 42 | ||||||||||||
Less: Income tax (benefit) expense | 0 | ||||||||||||
Net income (loss) | 42 | ||||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
Net income attributable to Successor/Predecessor | $ 42 | ||||||||||||
Predecessor | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | $ 120 | $ 317 | $ 464 | $ 295 | $ 252 | $ 213 | $ 283 | $ 901 | $ 1,043 | $ 1,122 | |||
Net gain on mortgage loans held for sale | 44 | 127 | 124 | 142 | 154 | 167 | 144 | 295 | 607 | 793 | |||
Total revenues | 164 | 444 | 588 | 437 | 406 | 380 | 427 | 1,196 | 1,650 | 1,915 | |||
Expenses: | |||||||||||||
Salaries, wages benefits | 426 | 742 | 813 | ||||||||||
General and administrative | 519 | 733 | 831 | ||||||||||
Total expenses | 242 | 339 | 364 | 366 | 368 | 369 | 372 | 945 | 1,475 | 1,644 | |||
Other income (expenses): | |||||||||||||
Interest income | 333 | 597 | 425 | ||||||||||
Interest expense | (388) | (731) | (665) | ||||||||||
Other income (expenses) | 6 | 3 | (2) | ||||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||||
Total other income (expenses), net | (5) | (26) | (18) | (13) | (26) | (40) | (52) | (49) | (131) | (242) | |||
(Loss) income before income tax (benefit) expense | (83) | 79 | 206 | 58 | 12 | (29) | 3 | 202 | 44 | 29 | |||
Less: Income tax (benefit) expense | (19) | 21 | 46 | 17 | 5 | (10) | 1 | 48 | 13 | 13 | |||
Net income (loss) | (64) | 58 | 160 | 41 | 7 | (19) | 2 | 154 | 31 | 16 | |||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | (3) | |||
Net income attributable to Successor/Predecessor | $ (64) | $ 58 | $ 160 | $ 41 | $ 7 | $ (20) | $ 2 | 154 | 30 | 19 | |||
Predecessor | Reportable legal entities | Mr. Cooper | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 0 | 0 | 0 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 0 | 0 | 0 | ||||||||||
General and administrative | 27 | 0 | 0 | ||||||||||
Total expenses | 27 | 0 | 0 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||
Other income (expenses) | 0 | 0 | 0 | ||||||||||
Gain (loss) from subsidiaries | 181 | 30 | 19 | ||||||||||
Total other income (expenses), net | 181 | 30 | 19 | ||||||||||
(Loss) income before income tax (benefit) expense | 154 | 30 | 19 | ||||||||||
Less: Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||
Net income (loss) | 154 | 30 | 19 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | 154 | 30 | 19 | ||||||||||
Predecessor | Reportable legal entities | Issuer | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 732 | 717 | 658 | ||||||||||
Net gain on mortgage loans held for sale | 295 | 606 | 764 | ||||||||||
Total revenues | 1,027 | 1,323 | 1,422 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 359 | 605 | 601 | ||||||||||
General and administrative | 427 | 590 | 617 | ||||||||||
Total expenses | 786 | 1,195 | 1,218 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 299 | 544 | 375 | ||||||||||
Interest expense | (364) | (675) | (592) | ||||||||||
Other income (expenses) | (3) | (6) | (2) | ||||||||||
Gain (loss) from subsidiaries | 56 | 53 | 44 | ||||||||||
Total other income (expenses), net | (12) | (84) | (175) | ||||||||||
(Loss) income before income tax (benefit) expense | 229 | 44 | 29 | ||||||||||
Less: Income tax (benefit) expense | 48 | 13 | 13 | ||||||||||
Net income (loss) | 181 | 31 | 16 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 1 | (3) | ||||||||||
Net income attributable to Successor/Predecessor | 181 | 30 | 19 | ||||||||||
Predecessor | Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 16 | 28 | 33 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Total revenues | 16 | 28 | 33 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 3 | 5 | 5 | ||||||||||
General and administrative | 1 | 11 | 8 | ||||||||||
Total expenses | 4 | 16 | 13 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||
Other income (expenses) | 0 | 0 | 0 | ||||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||||
Total other income (expenses), net | 0 | 0 | 0 | ||||||||||
(Loss) income before income tax (benefit) expense | 12 | 12 | 20 | ||||||||||
Less: Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||
Net income (loss) | 12 | 12 | 20 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | 12 | 12 | 20 | ||||||||||
Predecessor | Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 153 | 298 | 431 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 1 | 29 | ||||||||||
Total revenues | 153 | 299 | 460 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 64 | 132 | 207 | ||||||||||
General and administrative | 64 | 132 | 206 | ||||||||||
Total expenses | 128 | 264 | 413 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 34 | 53 | 50 | ||||||||||
Interest expense | (24) | (56) | (73) | ||||||||||
Other income (expenses) | 9 | 9 | 0 | ||||||||||
Gain (loss) from subsidiaries | 0 | 0 | 0 | ||||||||||
Total other income (expenses), net | 19 | 6 | (23) | ||||||||||
(Loss) income before income tax (benefit) expense | 44 | 41 | 24 | ||||||||||
Less: Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||
Net income (loss) | 44 | 41 | 24 | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | 44 | 41 | 24 | ||||||||||
Predecessor | Eliminations | |||||||||||||
Condensed Financial Statements | |||||||||||||
Service related, net | 0 | 0 | 0 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Total revenues | 0 | 0 | 0 | ||||||||||
Expenses: | |||||||||||||
Salaries, wages benefits | 0 | 0 | 0 | ||||||||||
General and administrative | 0 | 0 | 0 | ||||||||||
Total expenses | 0 | 0 | 0 | ||||||||||
Other income (expenses): | |||||||||||||
Interest income | 0 | 0 | 0 | ||||||||||
Interest expense | 0 | 0 | 0 | ||||||||||
Other income (expenses) | 0 | 0 | 0 | ||||||||||
Gain (loss) from subsidiaries | (237) | (83) | (63) | ||||||||||
Total other income (expenses), net | (237) | (83) | (63) | ||||||||||
(Loss) income before income tax (benefit) expense | (237) | (83) | (63) | ||||||||||
Less: Income tax (benefit) expense | 0 | 0 | 0 | ||||||||||
Net income (loss) | (237) | (83) | (63) | ||||||||||
Less: Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | $ (237) | $ (83) | $ (63) |
Guarantor Financial Statement_6
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | $ 1,020 | $ (136) | $ 884 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | (1,021) | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
(Gain) loss from subsidiaries | 0 | ||||||||||||
Net gain on mortgage loans held for sale | (83) | (93) | (176) | ||||||||||
Interest income on reverse mortgage interests | (206) | ||||||||||||
(Gain) loss on sale of assets | 0 | ||||||||||||
MSL related increased obligation | 0 | ||||||||||||
Loss on impairment of assets | 0 | ||||||||||||
Provision for servicing reserves | 38 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 225 | ||||||||||||
Fair value changes in excess spread financing | 5 | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 6 | ||||||||||||
Fair value changes in mortgage loans held for investment | (2) | ||||||||||||
Amortization of premiums, net of discount accretion | 9 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 39 | ||||||||||||
Share-based compensation | 2 | ||||||||||||
Other loss | 0 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (527) | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | (8,888) | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | (8,888) | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 9,405 | ||||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 43 | ||||||||||||
Reverse mortgage interests, net | 1,544 | ||||||||||||
Other assets | (61) | ||||||||||||
Payables and accrued liabilities | (68) | ||||||||||||
Net cash attributable to operating activities | 1,251 | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | (33) | ||||||||||||
Property and equipment additions, net of disposals | (15) | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (307) | ||||||||||||
Net payment related to acquisition of HECM related receivables | 0 | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 105 | ||||||||||||
Proceeds on sale of assets | 0 | ||||||||||||
Purchase of cost-method investments | 0 | ||||||||||||
Net cash attributable to investing activities | (250) | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | (351) | ||||||||||||
Increase (decrease) in advance facilities | 45 | ||||||||||||
Proceeds from issuance of HECM securitizations | 343 | ||||||||||||
Repayment of HECM securitizations | (374) | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 112 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | (943) | ||||||||||||
Proceeds from issuance of excess spread financing | 255 | ||||||||||||
Repayment of excess spread financing | (38) | ||||||||||||
Settlement of excess spread financing | (77) | ||||||||||||
Repayment of nonrecourse debt - legacy assets | (6) | ||||||||||||
Redemption and repayment of unsecured senior notes | (1,030) | ||||||||||||
Repurchase of unsecured senior notes | 0 | ||||||||||||
Repurchase of common stock | 0 | ||||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Surrender of shares relating to stock vesting | 0 | ||||||||||||
Proceeds from non-controlling interests | 3 | ||||||||||||
Debt financing costs | (2) | ||||||||||||
Dividends to non-controlling interests | 0 | ||||||||||||
Net cash attributable to financing activities | (2,063) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (1,062) | ||||||||||||
Cash and cash equivalents - beginning of year | 1,623 | 1,623 | |||||||||||
Cash and cash equivalents - end of year | $ 1,623 | 561 | 561 | $ 1,623 | |||||||||
Reportable legal entities | Mr. Cooper | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 884 | ||||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | (971) | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
(Gain) loss from subsidiaries | 44 | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Interest income on reverse mortgage interests | 0 | ||||||||||||
Provision for servicing reserves | 0 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||||||||||
Fair value changes in excess spread financing | 0 | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||||||||||
Fair value changes in mortgage loans held for investment | 0 | ||||||||||||
Amortization of premiums, net of discount accretion | 3 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||||||||||
Share-based compensation | 0 | ||||||||||||
Other loss | 0 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | ||||||||||||
Reverse mortgage interests, net | 0 | ||||||||||||
Other assets | 1 | ||||||||||||
Payables and accrued liabilities | 28 | ||||||||||||
Net cash attributable to operating activities | (11) | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | 0 | ||||||||||||
Property and equipment additions, net of disposals | 0 | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | ||||||||||||
Increase (decrease) in advance facilities | 0 | ||||||||||||
Proceeds from issuance of HECM securitizations | 0 | ||||||||||||
Repayment of HECM securitizations | 0 | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Proceeds from issuance of excess spread financing | 0 | ||||||||||||
Repayment of excess spread financing | 0 | ||||||||||||
Settlement of excess spread financing | 0 | ||||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | ||||||||||||
Redemption and repayment of unsecured senior notes | 0 | ||||||||||||
Proceeds from non-controlling interests | 0 | ||||||||||||
Debt financing costs | 0 | ||||||||||||
Net cash attributable to financing activities | 0 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (11) | ||||||||||||
Cash and cash equivalents - beginning of year | 11 | 11 | |||||||||||
Cash and cash equivalents - end of year | 11 | 0 | 0 | 11 | |||||||||
Reportable legal entities | Issuer | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | (44) | ||||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | (49) | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
(Gain) loss from subsidiaries | (2) | ||||||||||||
Net gain on mortgage loans held for sale | (175) | ||||||||||||
Interest income on reverse mortgage interests | (206) | ||||||||||||
Provision for servicing reserves | 38 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 225 | ||||||||||||
Fair value changes in excess spread financing | 6 | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 6 | ||||||||||||
Fair value changes in mortgage loans held for investment | 0 | ||||||||||||
Amortization of premiums, net of discount accretion | 7 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 33 | ||||||||||||
Share-based compensation | 1 | ||||||||||||
Other loss | 1 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (527) | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | (8,888) | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 9,389 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 43 | ||||||||||||
Reverse mortgage interests, net | 1,569 | ||||||||||||
Other assets | (18) | ||||||||||||
Payables and accrued liabilities | (130) | ||||||||||||
Net cash attributable to operating activities | 1,279 | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | 0 | ||||||||||||
Property and equipment additions, net of disposals | (18) | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (313) | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 105 | ||||||||||||
Net cash attributable to investing activities | (226) | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | (351) | ||||||||||||
Increase (decrease) in advance facilities | 40 | ||||||||||||
Proceeds from issuance of HECM securitizations | 0 | ||||||||||||
Repayment of HECM securitizations | 0 | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 112 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | (943) | ||||||||||||
Proceeds from issuance of excess spread financing | 255 | ||||||||||||
Repayment of excess spread financing | (38) | ||||||||||||
Settlement of excess spread financing | (77) | ||||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | ||||||||||||
Redemption and repayment of unsecured senior notes | (1,030) | ||||||||||||
Proceeds from non-controlling interests | 3 | ||||||||||||
Debt financing costs | (3) | ||||||||||||
Net cash attributable to financing activities | (2,032) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (979) | ||||||||||||
Cash and cash equivalents - beginning of year | 1,358 | 1,358 | |||||||||||
Cash and cash equivalents - end of year | 1,358 | 379 | 379 | 1,358 | |||||||||
Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 6 | ||||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
(Gain) loss from subsidiaries | 0 | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Interest income on reverse mortgage interests | 0 | ||||||||||||
Provision for servicing reserves | 0 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||||||||||
Fair value changes in excess spread financing | 0 | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||||||||||
Fair value changes in mortgage loans held for investment | 0 | ||||||||||||
Amortization of premiums, net of discount accretion | 0 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||||||||||
Share-based compensation | 0 | ||||||||||||
Other loss | 0 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | ||||||||||||
Reverse mortgage interests, net | 0 | ||||||||||||
Other assets | (6) | ||||||||||||
Payables and accrued liabilities | 0 | ||||||||||||
Net cash attributable to operating activities | 0 | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | 0 | ||||||||||||
Property and equipment additions, net of disposals | 0 | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | ||||||||||||
Increase (decrease) in advance facilities | 0 | ||||||||||||
Proceeds from issuance of HECM securitizations | 0 | ||||||||||||
Repayment of HECM securitizations | 0 | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Proceeds from issuance of excess spread financing | 0 | ||||||||||||
Repayment of excess spread financing | 0 | ||||||||||||
Settlement of excess spread financing | 0 | ||||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | ||||||||||||
Redemption and repayment of unsecured senior notes | 0 | ||||||||||||
Proceeds from non-controlling interests | 0 | ||||||||||||
Debt financing costs | 0 | ||||||||||||
Net cash attributable to financing activities | 0 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | ||||||||||||
Cash and cash equivalents - beginning of year | 1 | 1 | |||||||||||
Cash and cash equivalents - end of year | 1 | 1 | 1 | 1 | |||||||||
Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | (4) | ||||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | (1) | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
(Gain) loss from subsidiaries | 0 | ||||||||||||
Net gain on mortgage loans held for sale | (1) | ||||||||||||
Interest income on reverse mortgage interests | 0 | ||||||||||||
Provision for servicing reserves | 0 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||||||||||
Fair value changes in excess spread financing | (1) | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||||||||||
Fair value changes in mortgage loans held for investment | (2) | ||||||||||||
Amortization of premiums, net of discount accretion | (1) | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 6 | ||||||||||||
Share-based compensation | 1 | ||||||||||||
Other loss | (1) | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 16 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | ||||||||||||
Reverse mortgage interests, net | (25) | ||||||||||||
Other assets | (38) | ||||||||||||
Payables and accrued liabilities | 34 | ||||||||||||
Net cash attributable to operating activities | (17) | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | (33) | ||||||||||||
Property and equipment additions, net of disposals | 3 | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 6 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||||||||||
Net cash attributable to investing activities | (24) | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | ||||||||||||
Increase (decrease) in advance facilities | 5 | ||||||||||||
Proceeds from issuance of HECM securitizations | 343 | ||||||||||||
Repayment of HECM securitizations | (374) | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Proceeds from issuance of excess spread financing | 0 | ||||||||||||
Repayment of excess spread financing | 0 | ||||||||||||
Settlement of excess spread financing | 0 | ||||||||||||
Repayment of nonrecourse debt - legacy assets | (6) | ||||||||||||
Redemption and repayment of unsecured senior notes | 0 | ||||||||||||
Proceeds from non-controlling interests | 0 | ||||||||||||
Debt financing costs | 1 | ||||||||||||
Net cash attributable to financing activities | (31) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (72) | ||||||||||||
Cash and cash equivalents - beginning of year | 253 | 253 | |||||||||||
Cash and cash equivalents - end of year | 253 | 181 | 181 | 253 | |||||||||
Eliminations | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 42 | ||||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | ||||||||||||
Net income (loss) attributable to non-controlling interests | 0 | ||||||||||||
(Gain) loss from subsidiaries | (42) | ||||||||||||
Net gain on mortgage loans held for sale | 0 | ||||||||||||
Interest income on reverse mortgage interests | 0 | ||||||||||||
Provision for servicing reserves | 0 | ||||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | ||||||||||||
Fair value changes in excess spread financing | 0 | ||||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | ||||||||||||
Fair value changes in mortgage loans held for investment | 0 | ||||||||||||
Amortization of premiums, net of discount accretion | 0 | ||||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | ||||||||||||
Share-based compensation | 0 | ||||||||||||
Other loss | 0 | ||||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | ||||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | ||||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | ||||||||||||
Reverse mortgage interests, net | 0 | ||||||||||||
Other assets | 0 | ||||||||||||
Payables and accrued liabilities | 0 | ||||||||||||
Net cash attributable to operating activities | 0 | ||||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | 0 | ||||||||||||
Property and equipment additions, net of disposals | 0 | ||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | ||||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | ||||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | ||||||||||||
Increase (decrease) in advance facilities | 0 | ||||||||||||
Proceeds from issuance of HECM securitizations | 0 | ||||||||||||
Repayment of HECM securitizations | 0 | ||||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | ||||||||||||
Proceeds from issuance of excess spread financing | 0 | ||||||||||||
Repayment of excess spread financing | 0 | ||||||||||||
Settlement of excess spread financing | 0 | ||||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | ||||||||||||
Redemption and repayment of unsecured senior notes | 0 | ||||||||||||
Proceeds from non-controlling interests | 0 | ||||||||||||
Debt financing costs | 0 | ||||||||||||
Net cash attributable to financing activities | 0 | ||||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | ||||||||||||
Cash and cash equivalents - beginning of year | 0 | 0 | |||||||||||
Cash and cash equivalents - end of year | 0 | $ 0 | 0 | 0 | |||||||||
Predecessor | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | (64) | $ 58 | $ 160 | $ 41 | $ 7 | $ (20) | $ 2 | 154 | $ 30 | $ 19 | |||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 63 | (46) | (5) | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | (3) | |||
(Gain) loss from subsidiaries | 0 | 0 | 0 | ||||||||||
Net gain on mortgage loans held for sale | (44) | $ (127) | (124) | (142) | $ (154) | $ (167) | (144) | (295) | (607) | (793) | |||
Interest income on reverse mortgage interests | (274) | (490) | (344) | ||||||||||
(Gain) loss on sale of assets | (9) | (8) | 2 | ||||||||||
MSL related increased obligation | 59 | 0 | 0 | ||||||||||
Loss on impairment of assets | 0 | 0 | 25 | ||||||||||
Provision for servicing reserves | 70 | 148 | 108 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | (177) | 430 | 484 | ||||||||||
Fair value changes in excess spread financing | 81 | 12 | 25 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 16 | (17) | (42) | ||||||||||
Fair value changes in mortgage loans held for investment | 0 | 0 | 0 | ||||||||||
Amortization of premiums, net of discount accretion | 8 | 82 | 64 | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 33 | 59 | 63 | ||||||||||
Share-based compensation | 17 | 17 | 21 | ||||||||||
Other loss | 3 | 6 | 0 | ||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (544) | (1,249) | (1,432) | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | (12,328) | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | (12,328) | (19,159) | (20,410) | ||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 13,392 | 20,776 | 22,031 | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | (1) | 4 | ||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 377 | (30) | 582 | ||||||||||
Reverse mortgage interests, net | 1,601 | 1,672 | 572 | ||||||||||
Other assets | (41) | (75) | (25) | ||||||||||
Payables and accrued liabilities | 88 | (192) | 26 | ||||||||||
Net cash attributable to operating activities | 2,294 | 1,359 | 972 | ||||||||||
Investing Activities | |||||||||||||
Acquisition, net of cash acquired | 0 | 0 | 0 | ||||||||||
Property and equipment additions, net of disposals | (40) | (42) | (62) | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (134) | (63) | (144) | ||||||||||
Net payment related to acquisition of HECM related receivables | (1) | 0 | 0 | ||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 16 | (3,600) | ||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 71 | 68 | ||||||||||
Proceeds on sale of assets | 13 | 16 | 0 | ||||||||||
Purchase of cost-method investments | 0 | (4) | 0 | ||||||||||
Net cash attributable to investing activities | (162) | (6) | (3,738) | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | (585) | 863 | 529 | ||||||||||
Increase (decrease) in advance facilities | (305) | (241) | (550) | ||||||||||
Proceeds from issuance of HECM securitizations | 759 | 707 | 728 | ||||||||||
Repayment of HECM securitizations | (448) | (572) | (713) | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 208 | 575 | 4,124 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | (1,599) | (2,597) | (1,185) | ||||||||||
Proceeds from issuance of excess spread financing | 70 | 0 | 155 | ||||||||||
Repayment of excess spread financing | (3) | (23) | (198) | ||||||||||
Settlement of excess spread financing | (105) | (207) | 0 | ||||||||||
Repayment of nonrecourse debt - legacy assets | (7) | (15) | (18) | ||||||||||
Repurchase of unsecured senior notes | (62) | (123) | (40) | ||||||||||
Repurchase of common stock | 0 | 0 | (114) | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | (4) | ||||||||||
Surrender of shares relating to stock vesting | (9) | (4) | (3) | ||||||||||
Proceeds from non-controlling interests | 0 | 0 | 0 | ||||||||||
Debt financing costs | (24) | (13) | (13) | ||||||||||
Dividends to non-controlling interests | (1) | (5) | 0 | ||||||||||
Net cash attributable to financing activities | (2,111) | (1,655) | 2,698 | ||||||||||
Net (decrease) increase in cash and cash equivalents | 21 | (302) | (68) | ||||||||||
Cash and cash equivalents - beginning of year | 596 | 575 | 877 | 596 | 575 | 877 | 945 | ||||||
Cash and cash equivalents - end of year | 596 | 575 | 596 | 575 | 877 | ||||||||
Predecessor | Reportable legal entities | Mr. Cooper | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 154 | 30 | 19 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | 0 | 0 | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
(Gain) loss from subsidiaries | (181) | (30) | (19) | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Interest income on reverse mortgage interests | 0 | 0 | 0 | ||||||||||
(Gain) loss on sale of assets | 0 | 0 | 0 | ||||||||||
MSL related increased obligation | 0 | ||||||||||||
Loss on impairment of assets | 0 | ||||||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | 0 | 0 | ||||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||||
Amortization of premiums, net of discount accretion | 0 | 0 | 0 | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | 0 | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||||
Other loss | 0 | 0 | |||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | 0 | 0 | |||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||||
Other assets | 9 | 4 | 117 | ||||||||||
Payables and accrued liabilities | 27 | 0 | 0 | ||||||||||
Net cash attributable to operating activities | 9 | 4 | 117 | ||||||||||
Investing Activities | |||||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||||
Net payment related to acquisition of HECM related receivables | 0 | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 0 | |||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||||
Proceeds on sale of assets | 0 | 0 | |||||||||||
Purchase of cost-method investments | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of HECM securitizations | 0 | 0 | 0 | ||||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of excess spread financing | 0 | 0 | |||||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||||
Settlement of excess spread financing | 0 | 0 | |||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | 0 | (114) | |||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Surrender of shares relating to stock vesting | (9) | (4) | (3) | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||||
Dividends to non-controlling interests | 0 | 0 | |||||||||||
Net cash attributable to financing activities | (9) | (4) | (117) | ||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Cash and cash equivalents - beginning of year | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents - end of year | 0 | 0 | 0 | 0 | 0 | ||||||||
Predecessor | Reportable legal entities | Issuer | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 181 | 30 | 19 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 63 | (46) | (5) | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 1 | (3) | ||||||||||
(Gain) loss from subsidiaries | (56) | (53) | (44) | ||||||||||
Net gain on mortgage loans held for sale | (295) | (606) | (764) | ||||||||||
Interest income on reverse mortgage interests | (274) | (490) | (344) | ||||||||||
(Gain) loss on sale of assets | 0 | 1 | 2 | ||||||||||
MSL related increased obligation | 59 | ||||||||||||
Loss on impairment of assets | 25 | ||||||||||||
Provision for servicing reserves | 70 | 148 | 108 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | (178) | 430 | 484 | ||||||||||
Fair value changes in excess spread financing | 81 | 15 | 3 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 16 | (17) | (42) | ||||||||||
Amortization of premiums, net of discount accretion | 11 | 73 | (9,907) | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 26 | 45 | 43 | ||||||||||
Share-based compensation | 16 | 12 | 15 | ||||||||||
Other loss | 3 | 6 | |||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | (544) | (1,249) | (1,432) | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | (12,328) | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | (19,159) | (19,616) | |||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 13,381 | 20,760 | 31,024 | ||||||||||
Excess tax benefit (deficiency) from share based compensation | (1) | 4 | |||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 377 | (30) | 582 | ||||||||||
Reverse mortgage interests, net | 1,866 | 1,829 | 607 | ||||||||||
Other assets | (294) | (103) | (707) | ||||||||||
Payables and accrued liabilities | 65 | (179) | 46 | ||||||||||
Net cash attributable to operating activities | 2,246 | 1,417 | 98 | ||||||||||
Investing Activities | |||||||||||||
Property and equipment additions, net of disposals | (35) | (37) | (55) | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (127) | (56) | (120) | ||||||||||
Net payment related to acquisition of HECM related receivables | (1) | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 16 | (3,600) | |||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 71 | 68 | |||||||||||
Proceeds on sale of assets | 0 | 16 | |||||||||||
Purchase of cost-method investments | (4) | ||||||||||||
Net cash attributable to investing activities | (163) | 6 | (3,707) | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | (585) | 863 | 637 | ||||||||||
Increase (decrease) in advance facilities | (55) | (81) | (51) | ||||||||||
Proceeds from issuance of HECM securitizations | 0 | 0 | 0 | ||||||||||
Repayment of HECM securitizations | 0 | (1) | 0 | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 208 | 575 | 4,124 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | (1,599) | (2,597) | (1,185) | ||||||||||
Proceeds from issuance of excess spread financing | 70 | 155 | |||||||||||
Repayment of excess spread financing | (3) | (23) | (198) | ||||||||||
Settlement of excess spread financing | (105) | (207) | |||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||||
Repurchase of unsecured senior notes | (62) | (123) | (40) | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||||
Excess tax benefit (deficiency) from share based compensation | (4) | ||||||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||||
Debt financing costs | (24) | (13) | (13) | ||||||||||
Dividends to non-controlling interests | (1) | (5) | |||||||||||
Net cash attributable to financing activities | (2,156) | (1,612) | 3,425 | ||||||||||
Net (decrease) increase in cash and cash equivalents | (73) | (189) | (184) | ||||||||||
Cash and cash equivalents - beginning of year | 350 | 423 | 612 | 350 | 423 | 612 | 796 | ||||||
Cash and cash equivalents - end of year | 350 | 423 | 350 | 423 | 612 | ||||||||
Predecessor | Reportable legal entities | Guarantor (Subsidiaries of Issuer) | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 12 | 12 | 20 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | 0 | 0 | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
(Gain) loss from subsidiaries | 0 | 0 | 0 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Interest income on reverse mortgage interests | 0 | 0 | 0 | ||||||||||
(Gain) loss on sale of assets | 0 | 0 | 0 | ||||||||||
MSL related increased obligation | 0 | ||||||||||||
Loss on impairment of assets | 0 | ||||||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | 0 | 0 | ||||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||||
Amortization of premiums, net of discount accretion | 0 | 0 | 0 | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | 0 | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||||
Other loss | 0 | 0 | |||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | 0 | 0 | |||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||||
Other assets | (12) | (12) | (21) | ||||||||||
Payables and accrued liabilities | 0 | (1) | 1 | ||||||||||
Net cash attributable to operating activities | 0 | (1) | 0 | ||||||||||
Investing Activities | |||||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 1 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||||
Net payment related to acquisition of HECM related receivables | 0 | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 0 | |||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||||
Proceeds on sale of assets | 0 | 0 | |||||||||||
Purchase of cost-method investments | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | 0 | 1 | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of HECM securitizations | 0 | 0 | 0 | ||||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of excess spread financing | 0 | 0 | |||||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||||
Settlement of excess spread financing | 0 | 0 | |||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||||
Dividends to non-controlling interests | 0 | 0 | |||||||||||
Net cash attributable to financing activities | 0 | 0 | 0 | ||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | (1) | 1 | ||||||||||
Cash and cash equivalents - beginning of year | 1 | 1 | 2 | 1 | 1 | 2 | 1 | ||||||
Cash and cash equivalents - end of year | 1 | 1 | 1 | 1 | 2 | ||||||||
Predecessor | Reportable legal entities | Non-Guarantor (Subsidiaries of Issuer) | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | 44 | 41 | 24 | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | 0 | 0 | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
(Gain) loss from subsidiaries | 0 | 0 | 0 | ||||||||||
Net gain on mortgage loans held for sale | 0 | (1) | (29) | ||||||||||
Interest income on reverse mortgage interests | 0 | 0 | 0 | ||||||||||
(Gain) loss on sale of assets | (9) | (9) | 0 | ||||||||||
MSL related increased obligation | 0 | ||||||||||||
Loss on impairment of assets | 0 | ||||||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 1 | 0 | 0 | ||||||||||
Fair value changes in excess spread financing | 0 | (3) | 22 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||||
Amortization of premiums, net of discount accretion | (3) | 9 | 9,971 | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 7 | 14 | 20 | ||||||||||
Share-based compensation | 1 | 5 | 6 | ||||||||||
Other loss | 0 | 0 | |||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | 0 | (794) | |||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 11 | 16 | (8,993) | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||||
Reverse mortgage interests, net | (265) | (157) | (35) | ||||||||||
Other assets | 256 | 36 | 586 | ||||||||||
Payables and accrued liabilities | (4) | (12) | (21) | ||||||||||
Net cash attributable to operating activities | 39 | (61) | 757 | ||||||||||
Investing Activities | |||||||||||||
Property and equipment additions, net of disposals | (5) | (5) | (8) | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | (7) | (7) | (24) | ||||||||||
Net payment related to acquisition of HECM related receivables | 0 | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 0 | |||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||||
Proceeds on sale of assets | 13 | 0 | |||||||||||
Purchase of cost-method investments | 0 | ||||||||||||
Net cash attributable to investing activities | 1 | (12) | (32) | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | (108) | ||||||||||
Increase (decrease) in advance facilities | (250) | (160) | (499) | ||||||||||
Proceeds from issuance of HECM securitizations | 759 | 707 | 728 | ||||||||||
Repayment of HECM securitizations | (448) | (571) | (713) | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of excess spread financing | 0 | 0 | |||||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||||
Settlement of excess spread financing | 0 | 0 | |||||||||||
Repayment of nonrecourse debt - legacy assets | (7) | (15) | (18) | ||||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||||
Dividends to non-controlling interests | 0 | 0 | |||||||||||
Net cash attributable to financing activities | 54 | (39) | (610) | ||||||||||
Net (decrease) increase in cash and cash equivalents | 94 | (112) | 115 | ||||||||||
Cash and cash equivalents - beginning of year | 245 | 151 | 263 | 245 | 151 | 263 | 148 | ||||||
Cash and cash equivalents - end of year | 245 | 151 | 245 | 151 | 263 | ||||||||
Predecessor | Eliminations | |||||||||||||
Operating Activities | |||||||||||||
Net income (loss) attributable to Nationstar | (237) | (83) | (63) | ||||||||||
Adjustment to reconcile net income (loss) to net cash attributable to operating activities: | |||||||||||||
Provision for deferred income taxes | 0 | 0 | 0 | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
(Gain) loss from subsidiaries | 237 | 83 | 63 | ||||||||||
Net gain on mortgage loans held for sale | 0 | 0 | 0 | ||||||||||
Interest income on reverse mortgage interests | 0 | 0 | 0 | ||||||||||
(Gain) loss on sale of assets | 0 | 0 | 0 | ||||||||||
MSL related increased obligation | 0 | ||||||||||||
Loss on impairment of assets | 0 | ||||||||||||
Provision for servicing reserves | 0 | 0 | 0 | ||||||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities | 0 | 0 | 0 | ||||||||||
Fair value changes in excess spread financing | 0 | 0 | 0 | ||||||||||
Fair value changes in mortgage servicing rights financing liability | 0 | 0 | 0 | ||||||||||
Amortization of premiums, net of discount accretion | 0 | 0 | 0 | ||||||||||
Depreciation and amortization for property and equipment and intangible assets | 0 | 0 | 0 | ||||||||||
Share-based compensation | 0 | 0 | 0 | ||||||||||
Other loss | 0 | 0 | |||||||||||
Repurchases of forward loan assets out of Ginnie Mae securitizations | 0 | 0 | 0 | ||||||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to a third party | 0 | ||||||||||||
Mortgage loans originated and purchased, net of fees, and other purchase-related activities | 0 | 0 | |||||||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment | 0 | 0 | 0 | ||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | 0 | |||||||||||
Changes in assets and liabilities: | |||||||||||||
Advances and other receivables, net | 0 | 0 | 0 | ||||||||||
Reverse mortgage interests, net | 0 | 0 | 0 | ||||||||||
Other assets | 0 | 0 | 0 | ||||||||||
Payables and accrued liabilities | 0 | 0 | 0 | ||||||||||
Net cash attributable to operating activities | 0 | 0 | 0 | ||||||||||
Investing Activities | |||||||||||||
Property and equipment additions, net of disposals | 0 | 0 | 0 | ||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred | 0 | 0 | 0 | ||||||||||
Net payment related to acquisition of HECM related receivables | 0 | ||||||||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables | 0 | 0 | |||||||||||
Proceeds on sale of forward and reverse mortgage servicing rights | 0 | 0 | |||||||||||
Proceeds on sale of assets | 0 | 0 | |||||||||||
Purchase of cost-method investments | 0 | ||||||||||||
Net cash attributable to investing activities | 0 | 0 | 0 | ||||||||||
Financing Activities | |||||||||||||
Increase (decrease) in warehouse facilities | 0 | 0 | 0 | ||||||||||
Increase (decrease) in advance facilities | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of HECM securitizations | 0 | 0 | 0 | ||||||||||
Repayment of HECM securitizations | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Repayment of participating interest financing in reverse mortgage interests | 0 | 0 | 0 | ||||||||||
Proceeds from issuance of excess spread financing | 0 | 0 | |||||||||||
Repayment of excess spread financing | 0 | 0 | 0 | ||||||||||
Settlement of excess spread financing | 0 | 0 | |||||||||||
Repayment of nonrecourse debt - legacy assets | 0 | 0 | 0 | ||||||||||
Repurchase of unsecured senior notes | 0 | 0 | 0 | ||||||||||
Repurchase of common stock | 0 | 0 | |||||||||||
Excess tax benefit (deficiency) from share based compensation | 0 | ||||||||||||
Surrender of shares relating to stock vesting | 0 | 0 | 0 | ||||||||||
Debt financing costs | 0 | 0 | 0 | ||||||||||
Dividends to non-controlling interests | 0 | 0 | |||||||||||
Net cash attributable to financing activities | 0 | 0 | 0 | ||||||||||
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Cash and cash equivalents - beginning of year | $ 0 | $ 0 | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash and cash equivalents - end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Transactions with Affiliates -
Transactions with Affiliates - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||||||||||
Service related, net | $ 259 | $ 159 | $ 418 | ||||||||||
New Residential | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Excess spread financing | $ 857 | $ 857 | |||||||||||
Payments for servicing fees | $ 122 | 241 | $ 290 | ||||||||||
Predecessor | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Mortgage servicing rights financing - fair value | 9.5 | 9.5 | |||||||||||
Service related, net | $ 120 | $ 317 | $ 464 | 295 | $ 252 | $ 213 | $ 283 | 901 | 1,043 | 1,122 | |||
Predecessor | New Residential | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue recognized for serving arrangements | 3 | 6 | $ 5 | ||||||||||
Predecessor | Subsidiary of New Residential [Member] | Loan Subservicing Agreement | Agency MSRs | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
UPB boarded | $ 105,000 | ||||||||||||
Service related, net | $ 43 | $ 31 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Jul. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Jul. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Service related, net | $ 259 | $ 159 | $ 418 | ||||||||||
Net gain on mortgage loans held for sale | 83 | 93 | 176 | ||||||||||
Total revenues | 342 | 252 | 594 | ||||||||||
Total expenses | 275 | 432 | 707 | ||||||||||
Total other income (expenses), net | (26) | 2 | (24) | ||||||||||
Income (loss) before income tax expense (benefit) | 41 | (178) | (137) | ||||||||||
Less: Income tax expense (benefit) | (979) | (42) | (1,021) | ||||||||||
Net income (loss) | 1,020 | (136) | 884 | ||||||||||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | ||||||||||
Net income attributable to Successor/Predecessor | 1,020 | (136) | 884 | ||||||||||
Less: Undistributed earnings attributable to participating stockholders | 9 | 0 | 8 | ||||||||||
Net income attributable to common stockholders | $ 1,011 | $ (136) | $ 876 | ||||||||||
Net income (loss) per common share attributable to Predecessor/Successor: | |||||||||||||
Basic (in dollars per share) | $ 11.13 | $ (1.50) | $ 9.65 | ||||||||||
Diluted (in dollars per share) | $ 10.99 | $ (1.50) | $ 9.54 | ||||||||||
Predecessor | |||||||||||||
Service related, net | $ 120 | $ 317 | $ 464 | $ 295 | $ 252 | $ 213 | $ 283 | $ 901 | $ 1,043 | $ 1,122 | |||
Net gain on mortgage loans held for sale | 44 | 127 | 124 | 142 | 154 | 167 | 144 | 295 | 607 | 793 | |||
Total revenues | 164 | 444 | 588 | 437 | 406 | 380 | 427 | 1,196 | 1,650 | 1,915 | |||
Total expenses | 242 | 339 | 364 | 366 | 368 | 369 | 372 | 945 | 1,475 | 1,644 | |||
Total other income (expenses), net | (5) | (26) | (18) | (13) | (26) | (40) | (52) | (49) | (131) | (242) | |||
Income (loss) before income tax expense (benefit) | (83) | 79 | 206 | 58 | 12 | (29) | 3 | 202 | 44 | 29 | |||
Less: Income tax expense (benefit) | (19) | 21 | 46 | 17 | 5 | (10) | 1 | 48 | 13 | 13 | |||
Net income (loss) | (64) | 58 | 160 | 41 | 7 | (19) | 2 | 154 | 31 | 16 | |||
Net income (loss) attributable to non-controlling interests | 0 | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 1 | (3) | |||
Net income attributable to Successor/Predecessor | (64) | 58 | 160 | $ 41 | $ 7 | $ (20) | $ 2 | 154 | 30 | 19 | |||
Less: Undistributed earnings attributable to participating stockholders | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Net income attributable to common stockholders | $ (64) | $ 58 | $ 160 | $ 154 | $ 30 | $ 19 | |||||||
Net income (loss) per common share attributable to Predecessor/Successor: | |||||||||||||
Basic (in dollars per share) | $ (0.65) | $ 0.59 | $ 1.63 | $ 0.42 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.57 | $ 0.31 | $ 0.19 | |||
Diluted (in dollars per share) | $ (0.65) | $ 0.59 | $ 1.61 | $ 0.41 | $ 0.07 | $ (0.20) | $ 0.02 | $ 1.55 | $ 0.30 | $ 0.19 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Feb. 28, 2019 | Feb. 01, 2019 | Jan. 03, 2019 |
Pacific Union Financial, LLC | |||
Subsequent Event [Line Items] | |||
Purchase price from cash payment | $ 128 | ||
Seterus Mortgage Servicing Platform And Related IBM Assets | |||
Subsequent Event [Line Items] | |||
Purchase price from cash payment | $ 8 | ||
GSE Mortgages | |||
Subsequent Event [Line Items] | |||
Securities purchased under agreements | $ 24,000 | ||
Mortgages | |||
Subsequent Event [Line Items] | |||
Securities purchased under agreements | $ 24,000 |