Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35449 | ||
Entity Registrant Name | Mr. Cooper Group Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-1653725 | ||
Entity Address, Address Line One | 8950 Cypress Waters Blvd | ||
Entity Address, City or Town | Coppell | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75019 | ||
City Area Code | 469 | ||
Local Phone Number | 549-2000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value per share | ||
Trading Symbol | COOP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 64,602,234 | ||
Entity Public Float | $ 3,275,695,445 | ||
Documents Incorporated by Reference | Portions of our definitive Proxy Statement, to be filed with the Securities and Exchange Commission pursuant to Regulation 14A within 120 days of the Company’s fiscal year-end, are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000933136 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Dallas, Texas |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 571 | $ 527 |
Restricted cash | 169 | 175 |
Mortgage servicing rights at fair value | 9,090 | 6,654 |
Advances and other receivables, net of reserves of $170 and $137, respectively | 996 | 1,019 |
Mortgage loans held for sale at fair value | 927 | 893 |
Property and equipment, net of accumulated depreciation of $141 and $122, respectively | 53 | 65 |
Deferred tax assets, net | 472 | 703 |
Other assets | 1,918 | 2,740 |
Total assets | 14,196 | 12,776 |
Liabilities and Stockholders’ Equity | ||
Unsecured senior notes, net | 3,151 | 2,673 |
Advance, warehouse and MSR facilities, net | 4,302 | 2,885 |
Payables and other liabilities | 1,995 | 2,633 |
MSR related liabilities - nonrecourse at fair value | 466 | 528 |
Total liabilities | 9,914 | 8,719 |
Commitments and contingencies (Note 20) | ||
Common stock at $0.01 par value - 300 million shares authorized, 93.2 million shares issued | 1 | 1 |
Additional paid-in-capital | 1,087 | 1,104 |
Retained earnings | 4,302 | 3,802 |
Treasury shares at cost - 28.6 million and 24.0 million shares, respectively | (1,108) | (850) |
Total stockholders’ equity | 4,282 | 4,057 |
Total liabilities and stockholders’ equity | $ 14,196 | $ 12,776 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Advances and other receivables, reserves | $ 170 | $ 137 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 141 | $ 122 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (shares) | 93,200,000 | 93,200,000 |
Treasury stock (in shares) | 28,600,000 | 24,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Service related, net | $ 1,440 | $ 1,865 | $ 1,067 |
Net gain on mortgage loans held for sale | 354 | 599 | 2,251 |
Total revenues | 1,794 | 2,464 | 3,318 |
Expenses: | |||
Salaries, wages and benefits | 634 | 789 | 1,036 |
General and administrative | 538 | 485 | 626 |
Total expenses | 1,172 | 1,274 | 1,662 |
Interest income | 528 | 261 | 231 |
Interest expense | (537) | (424) | (478) |
Other income (expense), net | 41 | 187 | 528 |
Total other income (expenses), net | 32 | 24 | 281 |
Income from continuing operations before income tax expense | 654 | 1,214 | 1,937 |
Less: Income tax expense | 154 | 291 | 471 |
Net income from continuing operations | 500 | 923 | 1,466 |
Net loss from discontinued operations | 0 | 0 | (12) |
Net income | 500 | 923 | 1,454 |
Less: Undistributed earnings attributable to participating stockholders | 0 | 0 | 8 |
Less: Premium on retirement of preferred stock | 0 | 0 | 28 |
Net income attributable to common stockholders | $ 500 | $ 923 | $ 1,418 |
Earnings Per Share [Abstract] | |||
Income (Loss) from Continuing Operations, Per Basic Share | $ 7.46 | $ 12.84 | $ 17.39 |
Income (Loss) from Continuing Operations, Per Diluted Share | 7.30 | 12.50 | 16.67 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | 0 | (0.14) |
Earnings Per Share, Basic | 7.46 | 12.84 | 17.24 |
Earnings Per Share, Diluted | $ 7.30 | $ 12.50 | $ 16.53 |
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 | Total Mr. Cooper Stockholders’ Equity | Non-controlling Interests | Treasury Shares Amount |
Beginning balance (in shares) at Dec. 31, 2020 | 1,000 | 89,457 | ||||||
Beginning balance at Dec. 31, 2020 | $ 2,504 | $ 0 | $ 1 | $ 1,126 | $ 1,434 | $ 2,503 | $ 1 | $ (58) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 1,244 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (20) | (20) | (20) | |||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 29 | 29 | 29 | |||||
Repurchase of common stock (in shares) | 16,924 | |||||||
Repurchase of common stock, including excise tax | (572) | (572) | (572) | |||||
Stock Repurchased and Retired During Period, Shares | (1,000) | |||||||
Stock Repurchased and Retired During Period, Value | (28) | (19) | (9) | (28) | ||||
Net income | 1,454 | 1,454 | 1,454 | 0 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 73,777 | ||||||
Ending balance at Dec. 31, 2021 | 3,367 | $ 0 | $ 1 | 1,116 | 2,879 | 3,366 | 1 | (630) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 906 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (22) | (41) | (22) | 19 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 29 | 29 | 29 | |||||
Repurchase of common stock (in shares) | 5,417 | |||||||
Repurchase of common stock, including excise tax | (239) | (239) | (239) | |||||
Net income | 923 | 923 | 923 | 0 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | 69,266 | ||||||
Ending balance at Dec. 31, 2022 | 4,057 | $ 0 | $ 1 | 1,104 | 3,802 | 4,057 | 0 | (850) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Dividends paid to noncontrolling interests | (1) | (1) | ||||||
Shares issued / (surrendered) under incentive compensation plan (in shares) | 910 | |||||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (25) | (45) | (25) | 20 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 28 | 28 | 28 | |||||
Repurchase of common stock (in shares) | 5,577 | |||||||
Repurchase of common stock, including excise tax | (278) | (278) | (278) | |||||
Net income | 500 | 500 | 500 | 0 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | 64,599 | ||||||
Ending balance at Dec. 31, 2023 | $ 4,282 | $ 0 | $ 1 | $ 1,087 | $ 4,302 | $ 4,282 | $ 0 | $ (1,108) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Operating Activities | ||||||
Net income | $ 500 | $ 923 | $ 1,454 | |||
Net loss from discontinued operations | 0 | 0 | (12) | |||
Net income from continuing operations | 500 | 923 | 1,466 | |||
Adjustments to reconcile net income to net cash attributable to operating activities: | ||||||
Deferred tax expense | 135 | 289 | 351 | |||
Net gain on mortgage loans held for sale | (354) | (599) | (2,251) | |||
Provision for servicing and non-servicing reserves | 40 | 30 | 34 | |||
Fair value changes in mortgage servicing rights | 483 | (549) | 506 | |||
Fair value changes in MSR related liabilities | 18 | 142 | (33) | |||
Depreciation and amortization for property and equipment and intangible assets | 38 | 37 | 57 | |||
Bargain purchase gain | (96) | 0 | 0 | |||
Loss on MSR hedging activities | 68 | 332 | 86 | |||
(Gain) loss on MSR sales | (23) | 3 | (7) | |||
Gain on disposition of assets | 0 | 223 | 0 | |||
Gain on sale of business | 0 | 0 | (528) | |||
Other operating activities | 105 | 96 | 58 | |||
Repurchases of loan assets out of Ginnie Mae securitizations | (1,234) | (3,067) | (10,156) | |||
Mortgage loans originated and purchased for sale, net of fees | (12,805) | (28,309) | (84,684) | |||
Sales proceeds and loan payment proceeds for mortgage loans held for sale | 14,130 | 34,461 | 97,461 | |||
Changes in assets and liabilities: | ||||||
Advances and other receivables | 28 | 153 | (380) | |||
Other assets | (6) | 278 | 286 | |||
Payables and other liabilities | (131) | (230) | (259) | |||
Net cash attributable to operating activities - continuing operations | 896 | 3,767 | 2,007 | |||
Net cash attributable to operating activities - discontinued operations | 0 | 0 | 625 | |||
Net cash attributable to operating activities | 896 | 3,767 | 2,632 | |||
Investing Activities | ||||||
Acquisitions of business, net of cash acquired | (522) | 0 | 0 | |||
Acquisition of assets | (34) | 0 | 0 | |||
Purchase of mortgage servicing rights | (1,850) | (1,595) | (922) | |||
Proceeds on sale of mortgage servicing rights and excess yield | 603 | 290 | 61 | |||
Property and equipment additions, net of disposals | (18) | (17) | (41) | |||
Sale of business, net of cash divested | 0 | 0 | 465 | |||
Other investing activities | (15) | 0 | 2 | |||
Net cash attributable to investing activities - continuing operations | (1,836) | (1,322) | (435) | |||
Net cash attributable to investing activities - discontinued operations | 0 | 0 | 1,627 | |||
Net cash attributable to investing activities | (1,836) | (1,322) | 1,192 | |||
Financing Activities | ||||||
Increase (decrease) in advance, warehouse and MSR facilities | 1,375 | (2,113) | (1,272) | |||
Settlements and repayment of excess spread financing | (80) | (392) | (156) | |||
Repurchase of common stock | (276) | (239) | (572) | |||
Issuance of unsecured senior debt | 0 | 0 | 600 | |||
Retirement of preferred stock | 0 | 0 | (28) | |||
Other financing activities | (41) | (40) | (42) | |||
Net cash attributable to financing activities - continuing operations | 978 | (2,784) | (1,470) | |||
Net cash attributable to financing activities - discontinued operations | 0 | 0 | (2,226) | |||
Net cash attributable to financing activities | 978 | (2,784) | (3,696) | |||
Net increase (decrease) in cash, cash equivalents and restricted cash | 38 | (339) | 128 | |||
Cash, cash equivalents and restricted cash - beginning of year | 702 | [1] | 1,041 | [1] | 913 | |
Cash, cash equivalents and restricted cash - end of period | [1] | 740 | 702 | 1,041 | ||
Supplemental Disclosures of Cash Activities | ||||||
Cash paid for interest expense from unsecured senior notes, excess spread financing, and advance, warehouse and MSR facilities | 441 | 303 | 347 | |||
Net cash paid for income taxes | 26 | 17 | 159 | |||
Supplemental Disclosures of Non-cash Investing and Financing Activities | ||||||
Equity consideration received from disposition of assets | 0 | 250 | 0 | |||
Equity consideration received from sale of business | 0 | 0 | 58 | |||
Sale of mortgage servicing rights holdback | 16 | 15 | 2 | |||
Excise tax from repurchase of common stock | 2 | 0 | 0 | |||
Purchase of mortgage servicing rights holdback | $ 149 | $ 11 | $ 6 | |||
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets. December 31, December 31, December 31, Cash and cash equivalents $ 571 $ 527 $ 895 Restricted cash 169 175 146 Total cash, cash equivalents and restricted cash $ 740 $ 702 $ 1,041 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Statement of Cash Flows [Abstract] | |||||||
Cash and cash equivalents | $ 571 | $ 527 | $ 895 | ||||
Restricted cash | 169 | 175 | 146 | ||||
Total cash, cash equivalents and restricted cash | $ 740 | [1] | $ 702 | [1] | $ 1,041 | [1] | $ 913 |
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the consolidated balance sheets. December 31, December 31, December 31, Cash and cash equivalents $ 571 $ 527 $ 895 Restricted cash 169 175 146 Total cash, cash equivalents and restricted cash $ 740 $ 702 $ 1,041 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2023 | |
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 and originators in the country focused on delivering a variety of servicing and lending products, services and technologies. The Company has provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations , of this Form 10-K. Basis of Presentation The consolidated financial statements of the Company 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 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 recorded at fair value, or at cost upon election of measurement alternative, at the end of each reporting period. 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, and such differences could be material, due to factors such as adverse changes in the economy, changes 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. Reclassifications Certain reclassifications have been made in the 2022 and 2021 consolidated statements of cash flows to conform to 2023 presentation. Such reclassifications were not material and did not affect total revenues, net income or cash attributable to operating activities. Recent Accounting Guidance Adopted Accounting Standards Update (“ASU”) 2020-04, 2021-01 and 2022-06, collectively implemented as Accounting Standards Codification Topic 848 (“ASC 848”), Reference Rate Reform provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications, hedge accounting and other transactions affected by the transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and the London Inter-Bank Offered Rate (“LIBOR”). This guidance became effective on March 12, 2020, and can be adopted no later than December 31, 2024, with early adoption permitted. All of the Company’s facilities have transitioned away from LIBOR to alternative reference rates in 2023. In addition, the Company’s derivative financial instruments are not tied to LIBOR rates. The Company adopted ASU 2020-04, as amended by ASU 2021-01 and ASU 2022-06, in the fourth quarter of 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash on hand and other interest-bearing investments with original maturity dates of 90 days or less. Restricted Cash Restricted cash includes collected funds pledged to certain advance and warehouse facilities, collected fees payable to third parties, and certain contractual escrow funds. Mortgage Servicing Rights (“MSR”) 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. The Company has elected to subsequently measure MSRs 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 using a discounted cash flow model which incorporates prepayment speeds, option adjusted spread, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions that management believes are consistent with the assumptions that other similar market participants use in valuing the MSRs. Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread instead of a static discount rate. The key assumptions to determine fair value include prepayment speeds, option adjusted spread and cost to service. The credit quality and stated interest rates of the loans underlying the MSRs affect 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. Fair value adjustments are recorded within “revenues - service related, net” in the consolidated statements of operations. 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., loan principal and 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 MSRs through asset acquisitions or business combinations. These advances are recorded at their relative fair value amounts upon acquisition, which may result in a purchase discount or premium. 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 Servicing Activity. 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 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 origination fees when earned, net of direct loan originations costs associated with these loans. Loan origination fees and underwriting fees are recorded in “revenues - service related, net” in the consolidated statements of operations. Gains or losses recognized upon sale of loans and fair value adjustments are recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. Repurchased Loans From time to time the Company is required to repurchase loans from various investors related to originations or servicing defects. Such defects include, but are not limited to, breaches in seller representations and warranties made upon sale or demands for servicing repurchase due certain situations (such as modification). Such loans are repurchased by the Company as required with the intent of resale in the secondary market. If the defect is something that can be cured, the Company may seek to cure the issue and re-sell the loan to the investor and retain servicing. However, the nature of the defect may preclude the Company from curing in which case the Company may elect to sell such loans, servicing released, through a whole loan (or “scratch and dent sale"). Due to the Company’s intent to sell these loans, these repurchases are appropriately classified as mortgage loans held for sale, with any gains or losses recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. Loans Subject to Repurchase from Ginnie Mae For certain loans originated and sold into GNMA mortgage-backed securities, the Company, as servicer/transferor, 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 payment not being received from the borrower for greater than 90 days (“delinquent status”). For loans in delinquent status, the Company must recognize in its consolidated balance sheets the right to repurchase the loan and a corresponding repurchase liability, regardless of whether the Company intends to repurchase the loan. The Company records these rights to repurchase in “other assets” at the unpaid principal balance and a corresponding liability in “payables and other liabilities” in its consolidated balance sheets. From time to time, the Company exercises this right to repurchase individual delinquent loans in GNMA securitization pools to minimize interest spread losses, re-pool into new GNMA securitizations or otherwise sell to third-party investors. The majority of GNMA repurchased loans are repurchased in connection with loan modifications and loan resolution activity with the intent to re-pool into new GNMA securitizations upon re-performance of the loan or otherwise sell to third-party investors. Therefore, the Company classifies such loans as loans held for sale and has elected to measure these repurchased loans at fair value. 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 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 excess cash flow payments to third parties are considered counterparty payments, which are recorded as an adjustment to “revenues - service related, net” in the consolidated statements of operations. 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 a secured borrowing under Accounting Standards Codification (“ASC”) 860, 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 to “revenues - service related, 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. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds and option adjusted spread. Changes to excess spread financing other than payments and fair value measurements include accretion, which results from changes in the portfolio. Changes related to accretion are recorded to “revenues - service related, net” with an offset to excess spread financing liability on the consolidated balance sheet. Mortgage Servicing Rights Financing The Company has historically entered into 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 were sales or secured borrowings. When a transaction qualifies for sale treatment, the Company derecognizes the transferred assets in its consolidated balance sheets. If the Company determines that the related MSRs sales are contingent on the receipt of consents from various third parties, for accounting purposes, legal ownership of the MSRs continues to reside with the Company. The Company continues to account for the MSRs in its consolidated balance sheets. In addition, the Company records an MSR financing liability associated with this financing transaction. The Company continues to account for the sold specified base fee cash flows within MSRs in its consolidated balance sheets. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company’s “revenues - service related, net” in the consolidated statements of operations. The Company has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded to “revenues - service related, 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. 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 advance recovery rates. Property and Equipment, Net Property and equipment is comprised of 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 “expenses - general and administrative” in the consolidated statements of operations. Depreciation, which includes depreciation and amortization on finance 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 “expenses - general and administrative.” Costs to internally developed computer software are capitalized during the development stage and include internal and external costs incurred to develop software. Long-lived assets shall be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. The Company performs a quarterly evaluation to determine whether such events have occurred. If events and circumstances indicate the carrying values exceed the fair value of the fixed assets, the Company will proceed with impairment testing. Impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. The impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Leases If the Company determines an arrangement contains a lease or lease components, then the lease will be accounted for under ASC 842 and classified as either a finance or operating lease. At the lease commencement date, the Company recognizes a leased right-of-use (“ROU”) asset and corresponding lease liability based on the present value of the lease payments over the lease term. Leased ROU assets are tested for impairment in accordance with ASC 360, Property, Plant, and Equipment . The Company did not have material finance leases for the periods presented. ASC 842 provides for two policy elections. The first refers to leases with a term of 12 months or less and the second relates to separating lease components from non-lease components. The Company elected not to recognize lease assets and lease liabilities for leases with a term of 12 months or less and not to separate lease components from non-lease components. Leases primarily consist of various corporate and other office facilities. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, which are included in “other assets” and “payables and other liabilities,” respectively, on the consolidated balance sheets. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date, as most of the Company’s leases do not provide an implicit rate. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term and is recorded in “expenses - general and administrative” in the consolidated statements of operations. Operating lease activity is included in operating activities within the consolidated statements of cash flows. 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 rate risks related to Pipeline (including mortgage loans held for sale and interest rate lock commitments (“IRLCs”)) and the MSR portfolio. The Company recognizes all derivatives at fair value on a recurring basis in “other assets” and “payables and other liabilities” on its consolidated balance sheets. 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 IRLCs, loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”), Treasury futures, interest rate swap agreements and interest rate caps. IRLCs and LPCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, respectively, whereby the interest rate and loan amount is set prior to funding. The Company has the ability and intent to fund the loan for purpose of selling in the secondary market, accordingly, upon funding these IRLCs or LPCs will be mortgage loans held for sale for which the Company has selected the fair value option. Similar to the fair values of mortgage loans held for sale; held in inventory awaiting sale into the secondary market. IRLCs and LPCs are subject to changes in mortgage interest rates from the date of the commitment through the date of funding and ultimately through 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 inclusive of the inherent value of servicing. Loan commitments generally range between 30 days 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, inherent value of servicing of the loan (future MSR value), and adjustments for the estimated pull-through rate. Any changes in fair value are recorded in earnings as a component of “revenues - net gain on mortgage loans held for sale” on the consolidated statements of operations and consolidated statements of cash flows. The Company uses other derivative financial instruments (mentioned above), primarily forward MBS purchase and sales commitments (also referred to as TBA securities), to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale (both in Originations and Servicing) and MSRs. These commitments are recorded at fair value based on pricing of similar instruments in the secondary market based upon the investor/Agency, coupon, and estimated sale or delivery month. The forward MBS commitments fix the forward 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 IRLCs that will ultimately close is a key factor in determining the notional amount of derivatives used in economically hedging the position. The changes in value of all derivative instruments related to the Pipeline are recorded as “revenues - net gain on mortgage loans held for sale.” The changes in the value of forward MBS for the MSR portfolio are recorded in “revenues - service related, net.” The Company may elect to purchase other derivative instruments, such as interest rate swaps and Treasury futures to mitigate exposure to interest rate risk related to cash flows on securitized mortgage borrowings. Business Combinations and Asset Acquisitions The Company evaluates whether a transaction meets the definition of a business. The Company first applies a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test is met, the transaction is accounted for as an asset acquisition. If the screen test is not met, the Company further considers whether the set of assets or acquired entities have at a minimum, inputs and processes that have the ability to create outputs in the form of revenue. If the assets or acquired entities meet this criteria, the transaction is accounted for as a business combination. Acquisitions that qualify as a business combination are accounted for using the acquisition method of accounting. The fair value of consideration transferred for an acquisition is allocated to the assets acquired and liabilities assumed based on their fair value as of the acquisition date. The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Conversely, in the event the fair value of assets acquired and liabilities assumed is greater than the consideration transferred, a bargain purchase gain is recognized. Determining the fair value of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions. The Company estimates the fair value of the intangible assets acquired generally by using a discounted cash flow analysis (the income approach). For the income approach, the Company uses inputs and assumptions to develop these estimates on a market participant perspective which include estimates of projected revenues, discount rates, economic lives and income tax rates, among others, all of which require significant management judgment. The Company engages third-party valuation firms when appropriate to assist in the fair value determination of assets acquired and liabilities assumed. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. The Company may adjust the amounts recognized in an acquisition during a measurement period not to exceed one year from the date of acquisition, as a result of subsequently obtaining additional information that existed at the acquisition date. Goodwill Goodwill is not amortized but is instead subject to impairment testing. The Company evaluates its goodwill for impairment annually as of October 1 of each year or more frequently if impairment indicators arise in accordance with ASC 350, Intangibles - Goodwill and Other . When testing goodwill for impairment, the Company may elect to perform either a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, the Company considers the impact of any changes to the following factors: macroeconomic, industry and market factors, cost factors, and changes in overall financial performance, as well as any other relevant events and uncertainties impacting a reporting unit. If the qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, the Company performs a quantitative analysis. In a quantitative test, the carrying value of the reporting unit is compared to its estimated fair value. In a quantitative test, the fair value of a reporting unit is determined based on a discounted cash flow analysis and further analyzed using other methods of valuation. A discounted cash flow analysis requires the Company to make various assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s long-term projections by reporting unit. In addition, an assumed terminal value is used to project future cash flows beyond base years. Assumptions used in the Company’s impairment testing are consistent with its internal forecasts and operating plans. The discount rate is based on the Company’s debt and equity balances, adjusted for current market conditions and investor expectations of return on the Company’s equity. If the fair value of a reporting unit exceeds its carrying amount, there is no impairment. If not, the Company compares the fair value of the reporting unit with its carrying amount. To the extent the carrying amount of the reporting unit exceeds its fair value, a write-down of the reporting unit’s goodwill would be necessary. Intangible Assets Intangible assets primarily consist of customer relationships and technology acquired through business combinations. 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 are recorded at their estimated fair value at the date of acquisition. Intangible assets with finite useful lives are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for intangible assets, the carrying value of the asset is reduced to the estimated fair value. Investment in Unconsolidated Entities The Company accounts for investments in unconsolidated entities using the equity method when the Company holds a significant, but less than controlling, ownership interest and has the ability to exercise significant influence over operating and financial decisions of the investee. These investments include our investment in Sagent M&C, LLC (“Sagent”). Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. The Company evaluates the equity method investments for impairment when events or changes in circumstances indicate that an other-than-temporary decline in value may have occurred. See Note 4, Dispositions , for more information on our investment in Sagent. Revenue Recognition 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 as performance obligations are satisfied in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. The majority of the Company’s revenue-generating transactions in the Servicing and Originations segments, including revenue generated from financial instruments, such as the Company’s loans and derivatives, as well as revenue related to the Company’s mortgage servicing activities, are not within the scope of ASC 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. Generally, revenues from Xome fall within the scope of ASC 606. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers as performance obligations are satisfied in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. Revenues from Servicing Activities • “ Revenues, service related, net 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, co-issue transaction fees charged to sellers from boarding MSRs, deboarding fees for transferring MSRs off the servicing platform, 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 “revenues - service related, net.” 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 “revenues - service related, net.” Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of “revenues - service related, net.” Fair value adjustments related to MSRs, excess spread financing and MSRs financing are recorded as component of “revenues - service related, net.” 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 - net gain on mortgage loans held for sale” within the Servicing segment is comprised of the realized and unrealized gains and losses on sales of mortgage loans held for sale, including loans that are repurchased out of GNMA securities and subsequently modified and re-securitized, and any other repurchased loans. • Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates on owned MSRs within the servicing segment. The Company recognizes all derivatives on its consolidated balance sheets at fair value on a recurring basis. The Company treats all derivative instruments as economic hedges, therefore none of its derivative instruments are designated as accounting hedges. The changes in value of derivative instruments are recorded within “revenues - service related, net.” See accounting policy “Derivative Financial Instruments” for more details. Revenues from Origination Activities • “Revenues - servicing related, net” within the Originations segment is comprised of loan origination and other loan fees which generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. • “Revenues - net gain on mortgage loans held for sale” includes the realized and unrealized gains and losses on sales of newly originated mortgage loans, as well as the changes in fair value of all pipeline-related derivatives, including IRLCs. 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. • 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 derivative instruments as economic hedges, therefore none of its derivative instruments are designated as accounting hedges. The changes in value on originations derivative instruments are recorded within revenue in the as “revenues - net gain on mortgage loans held for sale.” See accounting policy “Derivative Financial Instruments” for more details. Revenue from Xome Activities • Xome revenues primarily consists of real estate exchange, which is a proprietary digital exchange for selling foreclosed, REO, and seller-owned property. Xome also has revenues from the sale of data and data-related services. Revenue is recognized upon transfer of control of promised goods or services to customers in an amount that reflects the consideration expected to be received in exchange for those products. Xome’s business is included in Corporate/Other. Repurchase Reserves for Origination Activity The Company accrues reserves for the repurchase of loans from GSEs, GNMA, and third-party investors primarily due to origination defect and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The repurchase reserves are included within “payabl |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 3. Acquisitions Acquisition of Assets During the second quarter of 2023, the Company acquired certain assets and liabilities of Rushmore Loan Management Services, LLC (“Rushmore”) for a total purchase price of $34 (the “Rushmore Transaction”). Assets acquired were recorded in the Servicing segment and primarily included subservicing contracts and related servicing advances and receivables. The Company accounted for the transaction as an asset acquisition in accordance with Accounting Standard Codification Topic 805, Business Combinations (“ASC 805”) , whereby the purchase price represents relative fair value of assets and liabilities acquired. Acquisition of Roosevelt Management Company and Affiliated Companies In July 2023, the Company acquired all the equity interests of Roosevelt Management Company, LLC (“Roosevelt”), an investment management firm, and its affiliated subsidiaries including Rushmore Loan Management Services, LLC and other entities, for a total purchase price of $28 (“Roosevelt Transaction”). The Company accounted for the transaction as a business combination in accordance with ASC 805 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, with the excess of the purchase price over those fair values allocated to goodwill. The Company recorded $4 of intangible assets and $21 of goodwill based on the purchase price allocation. $5 and $16 of the goodwill is assigned to Servicing segment and Corporate/Other segment, respectively. The goodwill will be deductible for tax purposes. During the year ended December 31, 2023, the Company incurred $13 of acquisition costs related to the Roosevelt Transaction. The financial results of Rushmore and Roosevelt were included in Servicing segment and Corporate/Other segment, respectively. The Company finalized its allocation of fair value of consideration transferred during the three months ended December 31, 2023. Acquisition of Home Point Capital Inc. In May 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) and a mortgage servicing rights purchase and sale agreement (“Purchase Agreement”) with Home Point Capital Inc.(“Home Point”), a Delaware corporation. Per the Merger Agreement, the Company agreed to commence a tender offer to acquire all of the outstanding shares of common stock of Home Point, other than certain excluded shares. The Home Point transactions closed in the third quarter of 2023 for total consideration of approximately $658. The Purchase Agreement was a bulk purchase of a portion of Home Point’s mortgage servicing rights (“MSR”) portfolio for $335. The Merger Agreement was the tender offer to acquire outstanding shares of common stock of Home Point, which included the benefit of the cash paid in the bulk purchase of Home Point’s MSR portfolio. The net consideration paid for the two transactions was $323, or $2.33 per share. “other income (expense), net” |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | 4. Dispositions Sale of Mortgage Servicing Platform On March 31, 2022, the Company completed the sale of certain assets and liabilities of its servicing and subservicing technology platform for performing and non-performing mortgage loans (the “Mortgage Servicing Platform”) to Sagent, in exchange for Class A-1 Common Units equal to 19.9% ownership of Sagent, and the sale of certain tangible personal property of the Company used in the conduct of the Mortgage Servicing Platform in exchange for $9.9 in cash, for total consideration of $260 (the “Sagent Transaction”). In connection with the Sagent Transaction, the Company recorded a gain of $223, which was included in “other income, net” The Company accounts for the equity interest under the equity method of accounting, as the Company has the ability to exercise significant influence over Sagent’s operating and financial decisions but does not own a majority equity interest or otherwise control the respective entity. Under the equity method of accounting, the investment is initially stated at cost and subsequently adjusted for additional investments, distributions, and the Company’s proportionate share of Sagent’s earnings or losses. The initial cost of the equity interest recorded was $250, which represented the fair value as of March 31, 2022. During the fourth quarter of 2023, the Company acquired additional Class A-1 Common Units for $12. The Company recorded a $17 and $13 loss related to the Company's proportionate share of net loss of Sagent during the years ended December 31, 2023 and 2022, respectively. The Company’s investment in Sagent was $232 as of December 31, 2023. |
Mortgage Servicing Rights and R
Mortgage Servicing Rights and Related Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights and Related Liabilities | 5. Mortgage Servicing Rights and Related Liabilities The following table sets forth the carrying value of the Company’s MSRs and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions. MSRs and Related Liabilities December 31, 2023 December 31, 2022 MSRs at fair value $ 9,090 $ 6,654 Excess spread financing at fair value $ 437 $ 509 Mortgage servicing rights financing at fair value 29 19 MSR related liabilities - nonrecourse at fair value $ 466 $ 528 Mortgage Servicing Rights The Company owns and records at fair value the rights to service traditional residential mortgage 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 MSRs: Year Ended December 31, MSRs at Fair Value 2023 2022 Fair value - beginning of year $ 6,654 $ 4,223 Additions: Servicing retained from mortgage loans sold 273 554 Purchases and acquisitions of servicing rights 3,189 1,595 Dispositions: Sales of servicing assets and excess yield (573) (294) Changes in fair value: Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) 121 1,328 Changes in valuation due to amortization (604) (779) Other changes (1) 30 27 Fair value - end of year $ 9,090 $ 6,654 (1) Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments. 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 years ended December 31, 2023 and 2022, the Company sold $25,239 and $20,902 in unpaid principal balance of MSRs, of which $23,218 and $19,817 was retained by the Company as subservicer, respectively. During the year ended December 31, 2023, certain agencies entered into agreements with the Company to purchase excess servicing cash flows (“excess yield”) on certain agency loans with a total UPB of $41,958 for total proceeds of $294. The Company recorded a gain of $33 through the mark-to-market adjustments within “revenues - service related, net” in the consolidated statements of operations. MSRs are segregated between investor type into agency and non-agency pools (referred to herein as “investor pools”) based upon contractual servicing agreements with investors at the respective balance sheet date to evaluate the MSR portfolio and fair value of the portfolio. Agency investors consist of Government National Mortgage Association (“Ginnie Mae” or “GNMA”) and the GSEs, Federal National Mortgage Association (“Fannie Mae” or “FNMA”) and Federal Home Loan Mortgage Corp (“Freddie Mac” or “FHLMC”). Non-agency investors consist of investors in private-label securitizations. The following table provides a breakdown of UPB and fair value for the Company’s MSRs: December 31, 2023 December 31, 2022 MSRs - UPB and Fair Value Breakdown by Investor Pools UPB Fair Value UPB Fair Value Agency $ 561,656 $ 8,774 $ 380,502 $ 6,322 Non-agency 26,286 316 30,880 332 Total $ 587,942 $ 9,090 $ 411,382 $ 6,654 Refer to Note 18, Fair Value Measurements , for further discussion on key weighted-average inputs and assumptions used in estimating the fair value of MSRs. The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated: Option Adjusted Spread (1) Total Prepayment Speeds Cost to Service per Loan MSRs - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2023 Mortgage servicing rights $ (368) $ (706) $ (219) $ (425) $ (89) $ (178) Discount Rate Total Prepayment Speeds Cost to Service per Loan 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2022 Mortgage servicing rights $ (266) $ (511) $ (136) $ (264) $ (61) $ (122) (1) Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (“OAS”) instead of a static discount rate. Refer to Note 14, Fair Value Measurements , for further discussion. These hypothetical sensitivities should be evaluated with care. The effect on fair value of an 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. Excess Spread Financing In order to finance the acquisition of certain MSRs on various portfolios, the Company previously entered into sale and assignment agreements with third parties and sold to these entities the right to receive a specified percentage of the excess cash flow generated from the portfolios in excess of a fixed base servicing fee per loan. The Company retains all the base servicing fees, ancillary income and interest float earnings on principal along with interest payments and escrow, and also incurs costs to service the specified pool. The Company is the legal owner and the servicer of the portfolios and provides all servicing and advancing functions. In connection with the above transactions, the Company entered into refinanced loan obligations with third parties that require the Company to transfer the new loan or a replacement loan of similar economic characteristics into the respective portfolio if the Company refinances any loan in the portfolio. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above. The Company had excess spread financing liability of $437 and $509, with UPB of $74,219 and $83,706 as of December 31, 2023 and 2022, respectively. Refer to Note 18, Fair Value Measurements , for further discussion on key weighted-average inputs and assumptions used in the valuation of excess spread financing liability. The following table shows the hypothetical effect on the Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated: Option Adjusted Spread (1) Prepayment Speeds Excess Spread Financing - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2023 Excess spread financing $ 16 $ 32 $ 10 $ 20 Discount Rate Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2022 Excess spread financing $ 19 $ 40 $ 11 $ 22 (1) Beginning in the second quarter of 2023, the Company valued excess spread financing using a stochastic OAS instead of a static discount rate. Refer to Note 14, Fair Value Measurements , for further discussion. These hypothetical sensitivities should be evaluated with care. The effect on fair value of an 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. 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. Excess spread financing’s cash flow assumptions that are utilized in determining fair value are based on the related cash flow assumptions used in the financed MSRs. Any fair value change recognized in the financed MSRs attributable to related cash flows assumptions would inherently have an inverse impact on the carrying amount of the related excess spread financing. Mortgage Servicing Rights Financing The Company had MSR financing liability of $29 and $19 as of December 31, 2023 and 2022, respectively. Refer to Note 2, Significant Accounting Policies , for further discussion on MSR financing, and Note 18, Fair Value Measurements , for further discussion on key weighted-average inputs and assumptions used in the valuation of the MSR financing liability. Revenues - Service Related, net The following table sets forth the items comprising total “revenues - service related, net”: Year Ended December 31, Revenues - Service Related, net 2023 2022 2021 Contractually specified servicing fees (1) $ 1,700 $ 1,458 $ 1,122 Other service-related income (1) 72 105 72 Incentive and modification income (1) 43 29 51 Servicing late fees (1) 89 76 71 Mark-to-market adjustments - Servicing MSR MTM 121 1,328 502 Loss on MSR hedging activities (68) (332) (86) Gain (loss) on MSR sales 23 (3) 7 Reclassifications (2) (33) (30) (35) Excess spread / MSR financing MTM (18) (142) 33 Total mark-to-market adjustments - Servicing 25 821 421 Amortization, net of accretion MSR amortization (604) (779) (1,008) Excess spread accretion 41 86 255 Total amortization, net of accretion (563) (693) (753) Originations service fees (3) 61 98 176 Corporate/Xome related service fees 84 76 186 Other (4) (71) (105) (279) Total revenues - Service Related, net $ 1,440 $ 1,865 $ 1,067 (1) The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $708, $661 and $495 for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Reclassifications include 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. (3) Amounts include fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and includes loan application, underwriting, and other similar fees. (4) Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements. |
Advances and Other Receivables
Advances and Other Receivables | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Advances and Other Receivables | 6. Advances and Other Receivables Advances and other receivables, net consists of the following: Advances and Other Receivables, Net December 31, 2023 December 31, 2022 Servicing advances, net of $13 and $12 purchase discount, respectively $ 1,065 $ 1,053 Receivables from agencies, investors and prior servicers, net o f $6 and $7 purchase discount 101 103 Reserves (170) (137) Total advances and other receivables, net $ 996 $ 1,019 The following table sets forth the activities of the servicing reserves for advances and other receivables: Year Ended December 31, Reserves for Advances and Other Receivables 2023 2022 Balance - beginning of year $ 137 $ 167 Provision 40 30 Reclassifications (1) 27 36 Write-offs (34) (96) Balance - end of year $ 170 $ 137 (1) Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate. Purchase Discount for Advances and Other Receivables The following table sets forth the activities of the purchase discount for advances and other receivables: Year Ended December 31, 2023 Year Ended December 31, 2022 Purchase Discount for Advances and Other Receivables Servicing Advances Receivables from Agencies, Investors and Prior Servicers Servicing Advances Receivables from Agencies, Investors and Prior Servicers Balance - beginning of year $ 12 $ 7 $ 19 $ 12 Addition from acquisition (1) 5 — — — Utilization of purchase discounts (4) (1) (7) (5) Balance - end of year $ 13 $ 6 $ 12 $ 7 (1) In connection with the acquisition of Home Point in 2023, the Company recorded the acquired advances and other receivables at estimate fair value as of the acquisition date, which resulted in a purchase discount of $5. Refer to Note 3, Acquisitions , for discussion of the Home Point acquisition. Credit Loss for Advances and Other Receivables The following table sets forth the activities of the CECL allowance for advances and other receivables: Year Ended December 31, CECL Allowance for Advances and Other Receivables 2023 2022 Balance - beginning of year $ 36 $ 31 Provision 1 10 Write-offs (2) (5) Balance - end of year (1) $ 35 $ 36 (1) As of December 31, 2023, $29 and $6 were included in reserves and purchase discount, respectively. As of December 31, 2022, $29 and $7 were included in reserves and purchase discount , respectively. The Company determined that the credit-related risk associated with applicable financial instruments typically increases with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time o f 39 months. An y projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required. |
Mortgage Loans Held for Sale
Mortgage Loans Held for Sale | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Loans Held for Sale [Abstract] | |
Mortgage Loans Held for Sale | 7. Mortgage Loans Held for Sale 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 purchases originated loans through its correspondent channel and assists customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases through its direct-to-consumer channel. 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: Year Ended December 31, Mortgage Loans Held for Sale 2023 2022 Mortgage loans held for sale - UPB $ 924 $ 921 Mark-to-market adjustment (1) 3 (28) Total mortgage loans held for sale $ 927 $ 893 (1) The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. The following table sets forth the activities of mortgage loans held for sale: Year Ended December 31, Mortgage Loans Held for Sale 2023 2022 Balance - beginning of year $ 893 $ 4,381 Loans sold and loan payments received (14,097) (34,731) Mortgage loans originated and purchased, net of fees 12,856 28,309 Repurchase of loans out of Ginnie Mae securitizations (1) 1,234 3,067 Net change in unrealized gain (loss) on retained loans held for sale 44 (132) Net transfers of mortgage loans held for sale (2) (3) (1) Balance - end of year $ 927 $ 893 (1) The Company has the optional 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 in connection with loan modifications and loan resolution activity, 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. (2) Amount reflects transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing. For the years ended December 31, 2023 and 2022, the Company recorded a total realized gain of $33 and a loss of $267 from total sales proceeds of $13,877 and $34,464 , respectively, on the sale of mortgage loans held for sale. 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: December 31, 2023 December 31, 2022 Mortgage Loans Held for Sale UPB Fair Value UPB Fair Value Non-accrual (1) $ 42 $ 36 $ 102 $ 87 (1) Non-accrual UPB includes $35 and $90 of UPB related to Ginnie Mae repurchased loans as of December 31, 2023 and 2022, respectively. The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings w as $30 a nd $65 as of December 31, 2023 and 2022, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 8. Property and Equipment The composition of property and equipment, net, and the corresponding ranges of estimated useful lives were as follows: Property and Equipment, Net December 31, 2023 December 31, 2022 Estimated Useful Life Furniture, fixtures, and equipment $ 57 $ 55 5 years Capitalized software costs 94 87 3 - 5 years Software in development and other 8 12 Leasehold improvements 30 27 Lesser of 10 years or remaining lease term Long-term finance leases - computer equipment 5 6 3 - 5 years Property and equipment 194 187 Less: Accumulated depreciation (141) (122) Property and equipment, net $ 53 $ 65 The Company recorded depreciation expense on property and equipment of $31 for the years ended December 31, 2023 and 2022, respectively. The Company has entered into various lease agreements for computer equipment, which are classified as finance leases. See Note 9, Leases , for more information. The Company recorded no impairment charges during the years ended December 31, 2023 and 2022. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 9. Leases The Company’s leases primarily relate to office space and equipment, with remaining lease terms of generally less than 1 year to 7 years. Certain lease arrangements contain extension options, which typically range from 1 to 7 years, at the then fair market rental rates. As of December 31, 2023 and 2022, operating lease ROU assets were $72 and $96, respectively, and corresponding lease liabilities were $91 and $111, respectively, which were included in “ other assets,” payables and other liabilities,” The table below summarizes the Company’s net lease cost: Year Ended December 31, Net Lease Cost 2023 2022 Operating lease cost $ 21 $ 26 Sublease income (3) (3) Total net lease cost $ 18 $ 23 The table below summarizes other information related to the Company’s operating leases: Year Ended December 31, Operating Leases - Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19 $ 23 Leased assets obtained in exchange for new operating lease liabilities $ 8 $ 15 Weighted average remaining lease term - operating leases, in years 5.0 6.0 Weighted average discount rate - operating leases 4.6 % 3.8 % Maturities of operating lease liabilities as of December 31, 2023 are as follows: Year Ending December 31, Operating Leases 2024 $ 23 2025 20 2026 18 2027 16 2028 13 Thereafter 12 Total future minimum lease payments 102 Less: imputed interest 11 Total operating lease liabilities $ 91 |
Loans Subject to Repurchase fro
Loans Subject to Repurchase from Ginnie Mae | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans Subject to Repurchase from Ginnie Mae | 10. Loans Subject to Repurchase from Ginnie Mae 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 payments not being received from borrowers for 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. The Company had loans subject to repurchase from Ginnie Mae of $966 and $1,865 as of December 31, 2023 and 2022, respectively, which are included in both “other assets” and “payables and other liabilities” in the consolidated balance sheets. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 11. Goodwill and Intangible Assets Goodwill The following table presents changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2023. There were no changes in goodwill in 2022: Year Ended December 31, 2023 Servicing Originations Corporate/Other (2) Total Balance - beginning of year $ 80 $ 28 $ 12 $ 120 Addition from acquisitions (1) 5 — 16 21 Balance - end of year $ 85 $ 28 $ 28 $ 141 (1) As discussed in Note 3, Acquisitions , the Company recorded goodwill in connection with the Roosevelt Transaction. (2) The goodwill associated with Xome and Roosevelt is included in Corporate/Other. During the years ended December 31, 2023 and 2022, the Company performed a quantitative assessment of its reporting units and determined that no impairment of goodwill existed. Goodwill is recorded in “other assets” within the consolidated balance sheets. Intangible Assets The following tables present the composition of intangible assets: December 31, 2023 Intangible Assets Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 96 $ (73) $ 23 4.7 Trade name 9 (7) 2 4.5 Other (1) 3 — 3 2.8 Total intangible assets $ 108 $ (80) $ 28 4.5 (1) Other intangible assets primarily include licenses. December 31, 2022 Intangible Assets Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 74 $ (67) $ 7 5.6 Technology 25 (25) — 0.0 Trade name 7 (6) 1 0.6 Total intangible assets $ 106 $ (98) $ 8 4.9 Intangible assets are recorded in “other assets” within the consolidated balance sheets. In 2023, the Company recorded intangible assets of $23 and $4 in connection with the Rushmore Transaction and Roosevelt Transaction, respectively. See further discussion in Note 3, Acquisitions . The Company recognized $7 and $6 of amortization expense related to intangible assets during the years ended December 31, 2023 and 2022, respectively. The Company expects to record amortization expense for existing amortizable intangible assets of $7, $7, $6, $5, and $3 for each of the years ending December 31, 2024 to 2028. No impairment on intangible assets was recorded during the years ended December 31, 2023 and December 31, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. Derivative Financial Instruments Derivative instruments are used as part of the overall strategy to manage exposure to interest rate risks related to mortgage loans held for sale and IRLCs (“the pipeline”) and the MSR portfolio. The Company economically hedges the pipeline separately from the MSR portfolio primarily using third-party derivative instruments. Such derivative instruments utilized by the Company include IRLCs, LPCs, forward MBS and Treasury futures. The changes in value on the derivative instruments associated with pipeline hedging are recorded in earnings as a component of “ revenues The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument. December 31, 2023 Year Ended December 31, 2023 Derivative Financial Instruments Expiration Outstanding Fair Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2024 $ 337 $ 11 $ 1 Derivative financial instruments Treasury futures 2024 2,634 113 113 Forward MBS trades 2024 2,365 22 155 IRLCs 2024 584 21 (1) LPCs 2024 361 3 2 Total derivative financial instruments - assets $ 5,944 $ 159 $ 269 Liabilities Derivative financial instruments Forward MBS trades 2024 1,049 9 (126) Treasury futures 2024 80 — (196) LPCs 2024 41 — 1 IRLCs 2024 1 — — Total derivative financial instruments - liabilities $ 1,171 $ 9 $ (321) December 31, 2022 Year Ended December 31, 2022 Derivative Financial Instruments Expiration Outstanding Fair Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2023 $ 354 $ 10 $ (15) Derivative financial instruments Treasury futures 2023 — — 4 Forward MBS trades 2023 1,143 8 569 IRLCs 2023 755 22 (112) LPCs 2023 145 1 (2) Total derivative financial instruments - assets $ 2,043 $ 31 $ 459 Liabilities Derivative financial instruments Forward MBS trades 2023 681 9 (56) Treasury futures 2023 892 14 (277) LPCs 2023 209 1 1 IRLCs 2023 15 — — Total derivative financial instruments - liabilities $ 1,797 $ 24 $ (332) As of December 31, 2023 the Company held $8 and $56 in collateral deposits and collateral obligations on derivative instruments, respectively. As of December 31, 2022, the Company held $49 and $1 in collateral deposits and collateral obligations on derivative instruments, respectively. Collateral deposits and collateral obligations are recorded in “other assets” and “payables and other liabilities,” respectively, on the Company’s consolidated balance sheets, and are included in “net cash attributable to operating activities” within the consolidated statements of cash flows. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the consolidated balance sheets. |
Indebtedness
Indebtedness | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Indebtedness | 13. Indebtedness Advance, Warehouse and MSR Facilities December 31, 2023 December 31, 2022 Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral Pledged Advance Facilities $350 advance facility October 2024 Servicing advance receivables $ 350 $ 132 $ 169 $ 150 $ 189 $300 advance facility (1) November 2024 Servicing advance receivables 300 273 364 308 410 $250 advance facility September 2025 Servicing advance receivables 250 250 326 171 209 $50 advance facility December 2024 Servicing advance receivables 50 27 49 40 45 Advance facilities principal amount 682 908 669 853 Warehouse Facilities $1,500 Warehouse Facility June 2024 Mortgage loans or MBS 1,500 107 104 206 272 $750 Warehouse Facility June 2024 Mortgage loans or MBS 750 137 176 135 133 $750 Warehouse Facility October 2024 Mortgage loans or MBS 750 155 166 202 209 $500 Warehouse Facility June 2024 Mortgage loans or MBS 500 72 78 76 80 $350 Warehouse Facility August 2024 Mortgage loans or MBS 350 73 75 31 32 $300 Warehouse Facility (2) February 2024 Mortgage loans or MBS 300 — — 115 117 $250 Warehouse Facility (3) September 2025 Mortgage loans or MBS 250 158 177 14 17 $200 Warehouse Facility December 2024 Mortgage loans or MBS 200 82 84 18 21 $200 Warehouse Facility January 2025 Mortgage loans or MBS 200 12 21 — — $100 Warehouse Facility April 2024 Mortgage loans or MBS 100 25 33 19 28 $100 Warehouse Facility April 2024 Mortgage loans or MBS 100 — — — — $100 Warehouse Facility December 2024 Mortgage loans or MBS 100 1 1 1 1 $1 Warehouse Facility December 2024 Mortgage loans or MBS 1 — — — — Warehouse facilities principal amount 822 915 817 910 MSR Facilities $1,500 Warehouse Facility April 2025 MSR 1,500 980 1,455 260 2,284 $1,450 Warehouse Facility (1) November 2024 MSR 1,450 300 2,164 380 927 $750 Warehouse Facility (3) September 2025 MSR 750 545 1,306 380 1,482 $500 Warehouse Facility June 2025 MSR 500 405 655 365 732 $500 Warehouse Facility April 2025 MSR 500 305 634 — — $500 Warehouse Facility June 2025 MSR 500 250 677 — — $50 Warehouse Facility November 2024 MSR 50 29 67 25 74 MSR facilities principal amount 2,814 6,958 1,410 5,499 Advance, warehouse and MSR facilities principal amount 4,318 $ 8,781 2,896 $ 7,262 Unamortized debt issuance costs (16) (11) Total advance, warehouse and MSR facilities, net $ 4,302 $ 2,885 (1) Total capacity for this facility is $1,750, of which $300 and $1,450 are internally allocated for advance financing and MSR financing, respectively; capacity is fully fungible and is not restricted by these allocations. (2) This facility was terminated in February 2024. (3) The capacity amount for this facility is $1,000, of which $750 is a sublimit for MSR financing. The weighted average interest rate for advance facilities was 7.6% and 4.1% for the years ended December 31, 2023 and 2022, respectively. The weighted average interest rate for warehouse and MSR facilities was 7.6% and 4.0% for the years ended December 31, 2023 and 2022, respectively. Unsecured Senior Notes Unsecured senior notes consist of the following: Unsecured Senior Notes December 31, 2023 December 31, 2022 $850 face value, 5.500% interest rate payable semi-annually, due August 2028 $ 850 $ 850 $650 face value, 5.125% interest rate payable semi-annually, due December 2030 650 650 $600 face value, 6.000% interest rate payable semi-annually, due January 2027 600 600 $600 face value, 5.750% interest rate payable semi-annually, due November 2031 600 600 $550 face value, 5.000% interest rate payable semi-annually, due January 2026 (1) 500 — Unsecured senior notes principal amount 3,200 2,700 Purchase discount (1) and unamortized debt issuance costs (49) (27) Unsecured senior notes, net $ 3,151 $ 2,673 (1) In connection with the Home Point Acquisition in 2023, the Company assumed an unsecured senior note with a principal balance of $500 and recorded a purchase discount of $32 on the acquisition date, of which $5 has been accreted in the year ended December 31, 2023. See Note 2, Acquisitions, for further details. 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. The incurrence-based covenants 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 provide that on or before certain fixed dates, the Company may redeem up to 40% 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. 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. No notes were repurchased or redeemed during the years ended December 31, 2023 and 2022. As of December 31, 2023, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows: Year Ending December 31, Amount 2024 through 2025 $ — 2026 500 2027 600 2028 850 Thereafter 1,250 Total unsecured senior notes principal amount $ 3,200 Financial Covenants |
Securitizations and Financings
Securitizations and Financings | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities and Securitizations [Abstract] | |
Securitizations and Financings | 14. Securitizations and Financings Variable Interest Entities 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 certain advance facilities trusts should be consolidated as the Company is the primary beneficiary of each of these entities. 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: December 31, 2023 December 31, 2022 Consolidated Transactions with VIEs Transfers Transfers Assets Restricted cash $ 111 $ 78 Advances and other receivables, net 495 398 Total assets $ 606 $ 476 Liabilities Advance facilities (1) $ 382 $ 321 Payables and other liabilities 1 1 Total liabilities $ 383 $ 322 (1) Refer to advance facilities in Note 13, Indebtedness , for additional information. 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: Unconsolidated Securitization Trusts December 31, 2023 December 31, 2022 Total collateral balances - UPB $ 881 $ 976 Total certificate balances $ 849 $ 949 The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2023, and 2022, 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 to unconsolidated securitization trusts that are 60 days or more past due are presented below: Principal Amount of Transferred Loans 60 Days or More Past Due December 31, 2023 December 31, 2022 Unconsolidated securitization trusts $ 91 $ 119 |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity and Employee Benefit Plans | 15. Stockholders' Equity and Employee Benefit Plans Share-based awards under the 2019 Omnibus Incentive Plan (the “2019 Plan”) include (i) restricted stock units (“RSUs”) granted to employees of the Company, consultants, and non-employee directors and (ii) performance stock units (“PSUs”) granted to certain executive officers. Restricted Stock Units The RSUs are valued at the fair market value of the Company’s common stock on the grant date as defined in the 2019 Plan. The stock awards for employees generally vest in equal installments on each of the first three anniversaries of the awards, provided that the participant remains continuously employed with the Company during that time. If the participant’s employment has terminated by reason of retirement, or upon death or disability, the unvested shares of an award will vest. The stock awards for non-employee directors generally vest the earlier of (a) the first anniversary of the grant date or (b) the date of the next annual stockholders meeting following the grant date. Any forfeiture of restricted stock awards before vesting has been achieved, results in a reduction in the balance of outstanding common shares. Performance Stock Units The PSUs are valued at the fair market value of the Company’s common stock on the grant date as defined in the 2019 Plan. In March 2023 and November 2023, certain executives of the Company were granted 0.1 million and 0.2 million PSUs (the “2023 PSUs”), respectively. 50% of the 2023 PSUs are eligible to vest in an amount between 0% to 200% of a target award based on achievement of relative total shareholder return and the remaining 50% are eligible to vest in an amount between 0% to 200% of a target award based on achievement of annualized tangible book value growth. The 2023 PSUs vest over a period of three In March 2020, March 2021, and March 2022, certain executives of the Company were granted 0.5 million PSUs (the “2020 PSUs”), 0.3 million PSUs (the “2021 PSUs”), and 0.1 million PSUs (the “2022 PSUs”), respectively . The 2020, 2021 and 2022 PSUs are eligible to vest and be settled into shares of common stock in an amount between 0% and 200% of a target award based on achievement of total shareholder return performance vesting criteria over a period of three years beginning March 1, 2020, 2021 and 2022, respectively, with one-third of the units also eligible to vest based on performance through March 1, 2021, 2022 and 2023, respectively. Share-Based Award Activities The following table summarizes the Company’s share-based awards: Share-based Awards Shares (or Units) Weighted-Average Grant Date Fair Value, per Share (or Unit) Share-based awards outstanding as of December 31, 2022 2,348 $ 25.91 Granted 1,319 41.08 Vested (1,426) 15.09 Forfeited (128) 40.95 Share-based awards outstanding as of December 31, 2023 2,113 41.73 The Company recorde d $28, $29 and $29 of expenses related to share-based awards during the years ended December 31, 2023, 2022 and 2021 , respectively. As of December 31, 2023, unrecognized compensation expense totaled $48 related to non-vested stock award payments that are expected to be recognized over a weighted average period of 1.0 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 benefit resulting from tax deductions in excess of the compensation cost recognized by the Company was $12 , $11 and $9 for the years ended December 31, 2023, 2022 and 2021, respectively. 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 $11 and $18 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 16. 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. I n 2021, the Company repurchased a total of 14.8 million shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P., (“KKR”) a related party of the Company. In addition, in August 2021, the Company repurchased 1.0 million shares of its Series A Preferred Stock from affiliates of KKR. After giving effect to the transaction, KKR no longer held any equity interests in the Company. The following table sets forth the computation of basic and diluted net income (loss) per common share (amounts in millions, except per share amounts): Year Ended December 31, Computation of Earnings Per Share 2023 2022 2021 Net income from continuing operations $ 500 $ 923 $ 1,466 Less: Undistributed earnings from continuing operations attributable to participating stockholders — — 8 Less: Premium on retirement of preferred stock — — 28 Net income from continuing operations attributable to Mr. Cooper common stockholders $ 500 $ 923 $ 1,430 Net loss from discontinued operations $ — $ — $ (12) Less: Undistributed earnings from discontinued operations attributable to participating stockholders — — — Net loss from discontinued operations attributable to Mr. Cooper common stockholders $ — $ — $ (12) Net income $ 500 $ 923 $ 1,454 Less: Undistributed earnings attributable to participating stockholders — — 8 Less: Premium on retirement of preferred stock — — 28 Net income attributable to common stockholders $ 500 $ 923 $ 1,418 Earnings from continuing operations per common share attributable to Mr. Cooper: Basic $ 7.46 $ 12.84 $ 17.39 Diluted $ 7.30 $ 12.50 $ 16.67 Earnings from discontinued operations per common share attributable to Mr. Cooper: Basic $ — $ — $ (0.15) Diluted $ — $ — $ (0.14) Earnings per common share attributable to Mr. Cooper: Basic $ 7.46 $ 12.84 $ 17.24 Diluted $ 7.30 $ 12.50 $ 16.53 Weighted average shares of common stock outstanding (in thousands): Basic 67,070 71,885 82,247 Dilutive effect of stock awards 1,479 1,933 3,067 Dilutive effect of participating securities — — 492 Diluted 68,549 73,818 85,806 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes The components of income tax expense for continuing operations were as follows: Year Ended December 31, Total Income Tax Expense on continuing operations 2023 2022 2021 (1) Current Income Taxes Federal $ 3 $ (6) $ 7 State 16 8 113 Total current income taxes 19 2 120 Deferred Income Taxes Federal 110 245 376 State 25 44 (25) Total deferred income taxes 135 289 351 Total income tax expense $ 154 $ 291 $ 471 (1) The provision for income taxes for 2021 does not reflect the tax effects of the sale of the Company’s reverse servicing portfolio reported as discontinued operations. The following table presents a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate: Year Ended December 31, Reconciliation of the Income Tax Provision 2023 2022 2021 Tax Expense at Federal Statutory Rate $ 137 $ 255 $ 407 Effect of: State taxes, net of federal benefit 32 39 70 Bargain purchase gain (1) (20) — — Nondeductible executive compensation 11 8 9 Share based compensation (9) (9) (8) Other, net 3 (2) (7) Total income tax expense $ 154 $ 291 $ 471 (1) Amount is related to preliminary bargain purchase gain recorded in connection with the Home Point Acquisition. Refer to Note 3, Acquisitions , for further details. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following: Deferred Tax Assets and Liabilities December 31, 2023 December 31, 2022 Deferred Tax Assets Effect of: Goodwill and intangible assets $ 585 $ 827 Loss reserves 101 84 Loss carryforwards (federal, state & capital) 85 104 Lease liability 22 28 Accruals 20 11 Depreciation and amortization, net 8 — Other, net 12 19 Total deferred tax assets 833 1,073 Deferred Tax Liabilities MSR amortization and mark-to-market, net (282) (269) Other investment assets (53) (67) Right-of-use assets (18) (24) Depreciation and amortization, net — (2) Prepaid assets (1) (1) Total deferred tax liabilities (354) (363) Valuation allowance (7) (7) Deferred tax assets, net (1) $ 472 $ 703 (1) The Company 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 impact of GILTI has been provided in the consolidated financial statements. The Company has federal NOL carryforwards (pre-tax) of $354 and $484 as of December 31, 2023 and 2022, respectively. The Company believes it is more likely than not that its deferred tax assets will be realized except for certain federal Code Section 382 limited NOLs that begin to expire with the 2026 tax year, if unused, and immaterial state NOL carryforwards that begin to expire with the 2023 tax year, if unused. Accordingly, the Company has recorded a federal valuation allowance of $7 as of December 31, 2023 and 2022 related to these NOL carryforwards. The state valuation allowance was immaterial as of December 31, 2023 and 2022. The Company does not expect any future tax loss limitations under Sections 382 and 384 that would impact its utilization of remaining federal NOL carryforwards. The Company files income tax returns in the U.S. federal jurisdiction and numerous U.S. state jurisdictions. As of December 31, 2023, the Company is currently under examination by the Internal Revenue Service for tax years 2018, 2019, and 2020. The years open to examination by federal, state and local government authorities vary by jurisdiction. Below is a reconciliation of the changes in the federal and state uncertain tax position balances, exclusive of interest and penalties, for the year ended December 31, 2023. Unrecognized Tax Benefits (exclusive of interest and penalties) December 31, 2023 Balance - beginning of year $ — Additions for tax positions taken in prior years 6 Balance - end of year $ 6 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 18. 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 and Level 3) – 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. Newly originated 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. Those loans 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 primarily derived from market observable inputs, 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 on a recurring basis. These loans are valued on a recurring basis using a market approach similar to newly originated loans as mentioned above, with adjustments for assumptions including fail rate, partial claim rate and modification status. As these prices are primarily derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. The Company may also repurchase loans that are unable to be securitized and sold, and fair value is based upon recent market trades for similar loans adjusted for delinquency rates or broker pricing. These loans are valued on a recurring basis and as the prices used are not primarily derived from market observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. From time to time, 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 fair value on a recurring basis and classifies these valuations as Level 3 in the fair value disclosures. See Note 7, Mortgage Loans Held for Sale , for more information. Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its 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. Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (OAS) instead of a static discount rate. OAS is the incremental spread added to the risk-free rate to reflect embedded (prepayment) optionality and other risk inherent in the MSRs to discount cash flows. The cash flow assumptions used in the discounted cash flow model incorporate prepayment speeds, OAS, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions, with the key assumptions being mortgage prepayment speeds, OAS, and cost to service. The cash flow 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 5, 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. See Note 6, Advances and Other Receivables , for more information. Equity Investments (Level 1 and Level 3) – The fair value of the common stock received from the previous sale of the title and field services businesses is measured quarterly based on the minimum exit value, which was established at the time of the transaction, and observable market indicators. Because of the nature of the unobservable inputs, the Company classifies these securities as Level 3 in the fair value disclosures. The fair value of the common stock received from the previous sale of the valuation business is measured using the closing price reported on an active market in which the securities are traded. As the fair value is based on market observable inputs, the Company classifies these securities as Level 1 in the fair value disclosures. Derivative Financial Instruments (Level 2 and Level 3) – 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. 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. IRLCs and LPCs are carried at fair value primarily based on secondary market prices for underlying mortgage loans, which is observable data, with adjustments made to such observable data for the inherent value of servicing, which is an unobservable input. The fair value is also subject to adjustments for the estimated pull-through rate. The impact of the unobservable input to the overall valuation of IRLCs and LPCs is significant and results in a classification of Level 3 in the fair value hierarchy. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised, and the loan will be funded. The Company has entered into Treasury futures and swap 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. Derivative financial instruments are recorded in “other assets” and “payables and other liabilities” within the consolidated balance sheets. See Note 12, Derivative Financial Instruments , for more information. Loans Subject to Repurchase from Ginnie Mae (Level 2) – As the Company has the unilateral right to repurchase these loans at the unpaid principal balance, the carrying amount, which is based on the unpaid principal balance, approximates fair value. See Note 10, Loans Subject to Repurchase from Ginnie Mae , 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 13, Indebtedness , for more information. Unsecured Senior Notes (Level 2) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices in a market with limited trading activity. See Note 13, 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. Beginning in the second quarter of 2023, the Company valued excess spread financing using a stochastic OAS instead of a static discount rate. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds and OAS. Quarterly, management obtains a third-party valuation to assess the reasonableness of the fair value calculations provided by the internal cash flow model. 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. Excess spread financing is recorded in MSR related liabilities within the consolidated balance sheets. See Note 5, 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. Mortgage servicing rights financing liability is recorded in MSR related liabilities within the consolidated balance sheets. See Note 5, Mortgage Servicing Rights and Related Liabilities , 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: December 31, 2023 Total Fair Value Recurring Fair Value Measurements Fair Value - Recurring Basis Level 1 Level 2 Level 3 Assets Mortgage loans held for sale $ 927 $ — $ 846 $ 81 Mortgage servicing rights 9,090 — — 9,090 Equity investments 9 1 — 8 Derivative financial instruments: Treasury futures 113 — 113 — Forward MBS trades 22 — 22 — IRLCs 21 — — 21 LPCs 3 — — 3 Liabilities Derivative financial instruments: Forward MBS trades 9 — 9 — Mortgage servicing rights financing 29 — — 29 Excess spread financing 437 — — 437 December 31, 2022 Total Fair Value Recurring Fair Value Measurements Fair Value - Recurring Basis Level 1 Level 2 Level 3 Assets Mortgage loans held for sale $ 893 $ — $ 819 $ 74 Mortgage servicing rights 6,654 — — 6,654 Equity investments 47 2 — 45 Derivative financial instruments: Forward MBS trades 8 — 8 — IRLCs 22 — — 22 LPCs 1 — — 1 Liabilities Derivative financial instruments: Forward MBS trades 9 — 9 — LPCs 1 — — 1 Treasury futures 14 — 14 — Mortgage servicing rights financing 19 — — 19 Excess spread financing 509 — — 509 The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis: Year Ended December 31, 2023 Assets Liabilities Fair Value - Level 3 Assets and Liabilities Mortgage servicing rights Mortgage loans held for sale Equity investments IRLCs Excess spread Mortgage servicing rights financing Balance - beginning of year $ 6,654 $ 74 $ 45 $ 22 $ 509 $ 19 Changes in fair value included in earnings (483) 18 (37) (1) 8 10 Purchases/additions (1) 3,189 180 — — — — Issuances 273 — — — — — Sales/dispositions (1) (573) (189) — — — — Repayments — (6) — — (9) — Settlements — — — — (71) — Other changes 30 4 — — — — Balance - end of year $ 9,090 $ 81 $ 8 $ 21 $ 437 $ 29 Year Ended December 31, 2022 Assets Liabilities Fair Value - Level 3 Assets and Liabilities Mortgage servicing rights Mortgage loans held for sale Equity investments IRLCs Excess spread Mortgage servicing rights financing Balance - beginning of year $ 4,223 $ 76 $ 54 $ 134 $ 768 $ 10 Changes in fair value included in earnings 549 (3) (9) (112) 133 9 Purchases/additions (1) 1,595 130 — — — — Issuances 554 — — — — — Sales/dispositions (1) (294) (124) — — — — Repayments — (2) — — (293) — Settlements — — — — (99) — Other changes 27 (3) — — — — Balance - end of year $ 6,654 $ 74 $ 45 $ 22 $ 509 $ 19 (1) Additions for mortgages loans held for sale include loans that are purchased or transferred in. Dispositions for mortgage loans held for sales include loans that are sold or transferred out. The Company had immaterial LPCs assets and liabilities as of December 31, 2023 and 2022. No transfers were made in or out of Level 3 fair value assets for the Company during the years ended December 31, 2023 and 2022. The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Level 3 Inputs Min Max Min Max MSR (1) Option adjusted spread (2) 6.9 % 12.3 % 8.0 % N/A N/A N/A Discount rate N/A N/A N/A 10.4 % 13.7 % 11.4 % Prepayment speed 6.8 % 9.3 % 7.5 % 6.3 % 12.2 % 7.2 % Cost to service per loan (3) $ 56 $ 160 $ 80 $ 54 $ 155 $ 80 Average life (4) 7.9 years 8.1 years Mortgage loans held for sale Market pricing 45.0 % 103.4 % 81.1 % 37.3 % 114.7 % 77.4 % IRLCs Value of servicing (reflected as a percentage of loan commitment) 1.1 % 3.5 % 1.9 % (0.6) % 3.9 % 2.3 % Excess spread financing Option adjusted spread (2) 7.0 % 12.3 % 8.8 % N/A N/A N/A Discount rate N/A N/A N/A 10.0 % 13.8 % 11.3 % Prepayment speed 7.7 % 9.1 % 8.4 % 6.9 % 13.3 % 9.2 % Average life (4) 6.7 years 6.6 years Mortgage servicing rights financing Advance financing and counterparty fee rates 6.6 % 9.2 % 7.6 % 5.2 % 8.6 % 7.1 % Annual advance recovery rates 12.2 % 14.8 % 13.0 % 15.9 % 20.6 % 17.3 % (1) The inputs are weighted by investor. (2) OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. See discussion on methodology above. (3) Presented in whole dollar amounts. (4) Average life is included for informational purposes. The tables below present a summary of the carrying amount and estimated fair value of the Company’s financial instruments not carried at fair value: December 31, 2023 Carrying Fair Value Financial Instruments Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 571 $ 571 $ — $ — Restricted cash 169 169 — — Advances and other receivables, net 996 — 996 Loans subject to repurchase from Ginnie Mae 966 — 966 — Financial liabilities Unsecured senior notes, net 3,151 — 3,056 — Advance, warehouse and MSR facilities, net 4,302 — 4,318 — Liability for loans subject to repurchase from Ginnie Mae 966 — 966 — December 31, 2022 Carrying Fair Value Financial Instruments Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 527 $ 527 $ — $ — Restricted cash 175 175 — — Advances and other receivables, net 1,019 — — 1,019 Loans subject to repurchase from Ginnie Mae 1,865 — 1,865 — Financial liabilities Unsecured senior notes, net 2,673 — 2,209 — Advance, warehouse and MSR facilities, net 2,885 — 2,896 — Liability for loans subject to repurchase from Ginnie Mae 1,865 — 1,865 — |
Capital Requirements
Capital Requirements | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Banking [Abstract] | |
Capital Requirements | 19. Capital Requirements Fannie Mae, Freddie Mac, Ginnie Mae and certain private label mortgage investors require the Company to maintain 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. The Company’s various capital requirements related to its outstanding selling and servicing agreements are measured based on the Company’s operating subsidiary, Nationstar Mortgage LLC, as well as Rushmore Loan Management Services, LLC, which was acquired during the third quarter of 2023 in connection with the Roosevelt Transaction. As of December 31, 2023, the Company was in compliance with its selling and servicing capital requirements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies Litigation and Regulatory 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 proceedings related to matters that arise in connection with the conduct of the Company’s 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, the CARES 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. On November 3, 2023, a putative class action lawsuit was filed against the Company, captioned Cabezas v. Mr. Cooper Group, Inc., No. 23-cv-02453 (“Cabezas”), in the United States District Court for the Northern District of Texas, by plaintiff Jennifer Cabezas purportedly on behalf of a class consisting of those persons impacted by the cybersecurity incident that occurred on October 31, 2023. The class action complaint alleges claims for negligence, negligence per se, breach of express contract, breach of implied contract, invasion of privacy, unjust enrichment, breach of confidence, and breach of fiduciary duty based upon allegations that the Company did not employ reasonable and adequate security measures to protect customer personal information accessed in the cybersecurity incident. The Cabezas complaint seeks damages, declaratory and injunctive relief, and an award of costs, attorney fees and expenses, among other relief. Between November 2023 and January 9, 2024, 19 additional putative class actions have been filed against the Company asserting substantially similar claims and allegations as those asserted in the Cabezas action. On January 9, 2024, the Cabezas Court ordered that all 19 then-pending actions be consolidated with the Cabezas action. Following the issuance of the consolidation order, six additional, related putative class actions were filed in the Northern District of Texas, which we expect will also be consolidated with the Cabezas action. The Company operates within highly regulated industries on a federal, state and local level. In the normal and ordinary course of its business, the Company is routinely subject to extensive examinations, investigations, subpoenas, inquiries and reviews by various federal, state and local governmental, regulatory and enforcement agencies, including the Consumer Financial Protection Bureau, the Securities and Exchange Commission, 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, various State mortgage banking regulators and various State Attorneys General, related to the Company’s residential loan servicing and origination practices, its financial reporting and other aspects of its businesses. Any 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 additional expenses and collateral costs. The Company is cooperating fully in these matters. Responding to these matters requires the Company to devote substantial resources, resulting in higher costs and lower net cash flows. Adverse results in any of these matters could further increase the Company’s operating expenses and reduce its revenues, require it to change business practices and limit its ability to grow and otherwise materially and adversely affect its business, reputation, financial condition and results of operation. 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. The Company incurred legal-related expense, which includes legal settlements and the fees paid to external legal service providers, of $39 and $23 for the years ended December 31, 2023 and 2022, respectively, and was included in “expenses - general and administrative” on the consolidated statements of operations. For 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. Management currently believes the aggregate range of reasonably possible loss is $1 to $3 in excess of the accrued liability (if any) related to those matters as of December 31, 2023. This estimated range of possible loss i s 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 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 mortgage loans 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, net” 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, 2023, 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. As a seller of mortgage loans to Agencies and other third parties, the Company may be required to indemnify or repurchase mortgage loans that fail to meet certain customary representations and warranties made in conjunction with sales of mortgage loans. The repurchase reserve liability related to such customary representations and warranties was $79 and $22 as of December 31, 2023 and 2022, respectively, which are included in “payables and other liabilities” within the consolidated balance sheets. The repurchase reserve liability increased during the third quarter of 2023 due to the assumption of repurchase risk for any mortgages previously sold by Home Point in connection with the Home Point Acquisition. Refer to Note 3, Acquisitions , for discussion of the Home Point Acquisition. 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 12, Derivative Financial Instruments , for more information. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 21. Segment Information The Company’s segments reflect the internal reporting we use to evaluate operating performance and are based upon the Company’s organizational structure, which focuses primarily on the services offered. A brief description of our current business segments is as follows: Servicing: This segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO. In 2023, we expanded our special servicing product offering with the acquisition of Rushmore Loan Management Services. During the third quarter of 2023, the Company collapsed a securitization with a bond balance of $82, secured by mortgage loans with an approximate UPB of $207. The loans were sold to a third party. A net gain on sale of $67 was recorded on the transaction, which was included in “net gain on mortgage loans held for sale” within the consolidated statements of operations and reported under Servicing. Originations : This segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers. Corporate/Other : Functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, or headcount percentage for shared services. During the fourth quarter of 20 22, the Company began allocating shared services based on headcount instead of estimate of percentage use as it changed its segment measures provided to and used by the chief operating decision maker. As a result, all costs for shared services are allocate d to individual segments based on headcount. The Company restated segment information for the historical periods presented herein to reflect the allocation method change and to conform to the current presentation. The change affects total expenses for Servicing and Originations segments and Corporate/Other but had no effect on consolidated statements of operations. 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 the Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. Eliminations are included in Corporate/Other. The following tables present financial information by segment: Year Ended December 31, 2023 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 1,295 $ 61 $ 84 $ 1,440 Net gain (loss) on mortgage loans held for sale 84 271 (1) 354 Total revenues 1,379 332 83 1,794 Total expenses 664 232 276 1,172 Interest income 491 36 1 528 Interest expense (324) (37) (176) (537) Other income, net — — 41 41 Total other income (expenses), net 167 (1) (134) 32 Income (loss) from continuing operations before income tax expense (benefit) $ 882 $ 99 $ (327) $ 654 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 12 $ 8 $ 18 $ 38 Total assets $ 11,740 $ 782 $ 1,674 $ 14,196 Year Ended December 31, 2022 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 1,691 $ 98 $ 76 $ 1,865 Net gain on mortgage loans held for sale (33) 632 — 599 Total revenues 1,658 730 76 2,464 Total expenses 559 491 224 1,274 Interest income 208 53 — 261 Interest expense (221) (43) (160) (424) Other income, net — — 187 187 Total other (expenses) income, net (13) 10 27 24 Income (loss) from continuing operations before income tax expense (benefit) $ 1,086 $ 249 $ (121) $ 1,214 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 18 $ 16 $ 3 $ 37 Total assets $ 10,152 $ 749 $ 1,875 $ 12,776 Year Ended December 31, 2021 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 705 $ 176 $ 186 $ 1,067 Net gain on mortgage loans held for sale 568 1,683 — 2,251 Total revenues 1,273 1,859 186 3,318 Total expenses 502 849 311 1,662 Interest income 129 102 — 231 Interest expense (262) (88) (128) (478) Other income, net — — 528 528 Total other (expenses) income, net (133) 14 400 281 Income from continuing operations before income tax expense $ 638 $ 1,024 $ 275 $ 1,937 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 32 $ 24 $ 1 $ 57 Total assets $ 8,733 $ 3,143 $ 2,328 $ 14,204 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On February 1, 2024, the Company completed an offering by Nationstar Mortgage Holdings Inc., a direct wholly-owned subsidiary of the Company (“Nationstar”), of $1,000 7.125% unsecured senior notes due 2032 (the “Notes”). The Notes will bear interest at 7.125% per annum and will mature on February 1, 2032. Interest on the Notes will be payable semi-annually on February 1 and August 1 of each year, beginning on August 1, 2024. The net proceeds of the offering were used to repay a portion of the amounts outstanding under the Company’s MSR facilities. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company 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 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 recorded at fair value, or at cost upon election of measurement alternative, at the end of each reporting period. 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, and such differences could be material, due to factors such as adverse changes in the economy, changes 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. |
Reclassification, Comparability Adjustment | Reclassifications Certain reclassifications have been made in the 2022 and 2021 consolidated statements of cash flows to conform to 2023 presentation. Such reclassifications were not material and did not affect total revenues, net income or cash attributable to operating activities. |
Recent Accounting Guidance Adopted | Recent Accounting Guidance Adopted Accounting Standards Update (“ASU”) 2020-04, 2021-01 and 2022-06, collectively implemented as Accounting Standards Codification Topic 848 (“ASC 848”), Reference Rate Reform provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications, hedge accounting and other transactions affected by the transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and the London Inter-Bank Offered Rate (“LIBOR”). This guidance became effective on March 12, 2020, and can be adopted no later than December 31, 2024, with early adoption permitted. All of the Company’s facilities have transitioned away from LIBOR to alternative reference rates in 2023. In addition, the Company’s derivative financial instruments are not tied to LIBOR rates. The Company adopted ASU 2020-04, as amended by ASU 2021-01 and ASU 2022-06, in the fourth quarter of 2023. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Cash, Cash Equivalents and Restricted Cash | Cash and Cash Equivalents Cash and cash equivalents include unrestricted cash on hand and other interest-bearing investments with original maturity dates of 90 days or less. Restricted Cash |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (“MSR”) 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. The Company has elected to subsequently measure MSRs 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 using a discounted cash flow model which incorporates prepayment speeds, option adjusted spread, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions that management believes are consistent with the assumptions that other similar market participants use in valuing the MSRs. Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread instead of a static discount rate. The key assumptions to determine fair value include prepayment speeds, option adjusted spread and cost to service. The credit quality and stated interest rates of the loans underlying the MSRs affect 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. Fair value adjustments are recorded within “revenues - service related, net” in the consolidated statements of operations. |
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., loan principal and 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 MSRs through asset acquisitions or business combinations. These advances are recorded at their relative fair value amounts upon acquisition, which may result in a purchase discount or premium. 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 Servicing Activity. |
Mortgage Loans Held for Sale | 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 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 origination fees when earned, net of direct loan originations costs associated with these loans. Loan origination fees and underwriting fees are recorded in “revenues - service related, net” in the consolidated statements of operations. Gains or losses recognized upon sale of loans and fair value adjustments are recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. Repurchased Loans From time to time the Company is required to repurchase loans from various investors related to originations or servicing defects. Such defects include, but are not limited to, breaches in seller representations and warranties made upon sale or demands for servicing repurchase due certain situations (such as modification). Such loans are repurchased by the Company as required with the intent of resale in the secondary market. If the defect is something that can be cured, the Company may seek to cure the issue and re-sell the loan to the investor and retain servicing. However, the nature of the defect may preclude the Company from curing in which case the Company may elect to sell such loans, servicing released, through a whole loan (or “scratch and dent sale"). Due to the Company’s intent to sell these loans, these repurchases are appropriately classified as mortgage loans held for sale, with any gains or losses recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. |
Loans Subject to Repurchase Rights from Ginnie Mae | Loans Subject to Repurchase from Ginnie Mae For certain loans originated and sold into GNMA mortgage-backed securities, the Company, as servicer/transferor, 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 payment not being received from the borrower for greater than 90 days (“delinquent status”). For loans in delinquent status, the Company must recognize in its consolidated balance sheets the right to repurchase the loan and a corresponding repurchase liability, regardless of whether the Company intends to repurchase the loan. The Company records these rights to repurchase in “other assets” at the unpaid principal balance and a corresponding liability in “payables and other liabilities” in its consolidated balance sheets. From time to time, the Company exercises this right to repurchase individual delinquent loans in GNMA securitization pools to minimize interest spread losses, re-pool into new GNMA securitizations or otherwise sell to third-party investors. The majority of GNMA repurchased loans are repurchased in connection with loan modifications and loan resolution activity with the intent to re-pool into new GNMA securitizations upon re-performance of the loan or otherwise sell to third-party investors. Therefore, the Company classifies such loans as loans held for sale and has elected to measure these repurchased loans at fair value. |
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 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 excess cash flow payments to third parties are considered counterparty payments, which are recorded as an adjustment to “revenues - service related, net” in the consolidated statements of operations. 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 a secured borrowing under Accounting Standards Codification (“ASC”) 860, 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 to “revenues - service related, 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. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds and option adjusted spread. Changes to excess spread financing other than payments and fair value measurements include accretion, which results from changes in the portfolio. Changes related to accretion are recorded to “revenues - service related, net” with an offset to excess spread financing liability on the consolidated balance sheet. Mortgage Servicing Rights Financing The Company has historically entered into 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 were sales or secured borrowings. When a transaction qualifies for sale treatment, the Company derecognizes the transferred assets in its consolidated balance sheets. If the Company determines that the related MSRs sales are contingent on the receipt of consents from various third parties, for accounting purposes, legal ownership of the MSRs continues to reside with the Company. The Company continues to account for the MSRs in its consolidated balance sheets. In addition, the Company records an MSR financing liability associated with this financing transaction. The Company continues to account for the sold specified base fee cash flows within MSRs in its consolidated balance sheets. Counterparty payments related to this financing arrangement are recorded as an adjustment to the Company’s “revenues - service related, net” in the consolidated statements of operations. The Company has elected to measure the mortgage servicing rights financing liabilities at fair value with all changes in fair value recorded to “revenues - service related, 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. 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 advance recovery rates. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment is comprised of 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 “expenses - general and administrative” in the consolidated statements of operations. Depreciation, which includes depreciation and amortization on finance 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 “expenses - general and administrative.” Costs to internally developed computer software are capitalized during the development stage and include internal and external costs incurred to develop software. Long-lived assets shall be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount might not be recoverable. The Company performs a quarterly evaluation to determine whether such events have occurred. If events and circumstances indicate the carrying values exceed the fair value of the fixed assets, the Company will proceed with impairment testing. Impairment loss shall be recognized only if the carrying amount of a long-lived asset is not recoverable and exceeds its fair value. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of undiscounted cash flows expected to result from the use and eventual disposition of the asset. The impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Leases | Leases If the Company determines an arrangement contains a lease or lease components, then the lease will be accounted for under ASC 842 and classified as either a finance or operating lease. At the lease commencement date, the Company recognizes a leased right-of-use (“ROU”) asset and corresponding lease liability based on the present value of the lease payments over the lease term. Leased ROU assets are tested for impairment in accordance with ASC 360, Property, Plant, and Equipment . The Company did not have material finance leases for the periods presented. ASC 842 provides for two policy elections. The first refers to leases with a term of 12 months or less and the second relates to separating lease components from non-lease components. The Company elected not to recognize lease assets and lease liabilities for leases with a term of 12 months or less and not to separate lease components from non-lease components. Leases primarily consist of various corporate and other office facilities. |
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 rate risks related to Pipeline (including mortgage loans held for sale and interest rate lock commitments (“IRLCs”)) and the MSR portfolio. The Company recognizes all derivatives at fair value on a recurring basis in “other assets” and “payables and other liabilities” on its consolidated balance sheets. 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 IRLCs, loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”), Treasury futures, interest rate swap agreements and interest rate caps. IRLCs and LPCs represent an agreement to extend credit to a mortgage loan applicant, or an agreement to purchase a loan from a third-party originator, respectively, whereby the interest rate and loan amount is set prior to funding. The Company has the ability and intent to fund the loan for purpose of selling in the secondary market, accordingly, upon funding these IRLCs or LPCs will be mortgage loans held for sale for which the Company has selected the fair value option. Similar to the fair values of mortgage loans held for sale; held in inventory awaiting sale into the secondary market. IRLCs and LPCs are subject to changes in mortgage interest rates from the date of the commitment through the date of funding and ultimately through 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 inclusive of the inherent value of servicing. Loan commitments generally range between 30 days 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, inherent value of servicing of the loan (future MSR value), and adjustments for the estimated pull-through rate. Any changes in fair value are recorded in earnings as a component of “revenues - net gain on mortgage loans held for sale” on the consolidated statements of operations and consolidated statements of cash flows. The Company uses other derivative financial instruments (mentioned above), primarily forward MBS purchase and sales commitments (also referred to as TBA securities), to manage exposure to interest rate risk and changes in the fair value of IRLCs and mortgage loans held for sale (both in Originations and Servicing) and MSRs. These commitments are recorded at fair value based on pricing of similar instruments in the secondary market based upon the investor/Agency, coupon, and estimated sale or delivery month. The forward MBS commitments fix the forward 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 IRLCs that will ultimately close is a key factor in determining the notional amount of derivatives used in economically hedging the position. The changes in value of all derivative instruments related to the Pipeline are recorded as “revenues - net gain on mortgage loans held for sale.” The changes in the value of forward MBS for the MSR portfolio are recorded in “revenues - service related, net.” The Company may elect to purchase other derivative instruments, such as interest rate swaps and Treasury futures to mitigate exposure to interest rate risk related to cash flows on securitized mortgage borrowings. |
Business Combinations Policy | Business Combinations and Asset Acquisitions The Company evaluates whether a transaction meets the definition of a business. The Company first applies a screen test to determine if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. If the screen test is met, the transaction is accounted for as an asset acquisition. If the screen test is not met, the Company further considers whether the set of assets or acquired entities have at a minimum, inputs and processes that have the ability to create outputs in the form of revenue. If the assets or acquired entities meet this criteria, the transaction is accounted for as a business combination. Acquisitions that qualify as a business combination are accounted for using the acquisition method of accounting. The fair value of consideration transferred for an acquisition is allocated to the assets acquired and liabilities assumed based on their fair value as of the acquisition date. The excess of the consideration transferred over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Conversely, in the event the fair value of assets acquired and liabilities assumed is greater than the consideration transferred, a bargain purchase gain is recognized. Determining the fair value of assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions. The Company estimates the fair value of the intangible assets acquired generally by using a discounted cash flow analysis (the income approach). For the income approach, the Company uses inputs and assumptions to develop these estimates on a market participant perspective which include estimates of projected revenues, discount rates, economic lives and income tax rates, among others, all of which require significant management judgment. The Company engages third-party valuation firms when appropriate to assist in the fair value determination of assets acquired and liabilities assumed. Acquisition-related expenses and transaction costs associated with business combinations are expensed as incurred. |
Intangible Assets and Goodwill | Goodwill Goodwill is not amortized but is instead subject to impairment testing. The Company evaluates its goodwill for impairment annually as of October 1 of each year or more frequently if impairment indicators arise in accordance with ASC 350, Intangibles - Goodwill and Other . When testing goodwill for impairment, the Company may elect to perform either a qualitative test or a quantitative test to determine if it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value. During a qualitative analysis, the Company considers the impact of any changes to the following factors: macroeconomic, industry and market factors, cost factors, and changes in overall financial performance, as well as any other relevant events and uncertainties impacting a reporting unit. If the qualitative assessment does not conclude that it is more likely than not that the estimated fair value of the reporting unit is greater than the carrying value, the Company performs a quantitative analysis. In a quantitative test, the carrying value of the reporting unit is compared to its estimated fair value. In a quantitative test, the fair value of a reporting unit is determined based on a discounted cash flow analysis and further analyzed using other methods of valuation. A discounted cash flow analysis requires the Company to make various assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s long-term projections by reporting unit. In addition, an assumed terminal value is used to project future cash flows beyond base years. Assumptions used in the Company’s impairment testing are consistent with its internal forecasts and operating plans. The discount rate is based on the Company’s debt and equity balances, adjusted for current market conditions and investor expectations of return on the Company’s equity. If the fair value of a reporting unit exceeds its carrying amount, there is no impairment. If not, the Company compares the fair value of the reporting unit with its carrying amount. To the extent the carrying amount of the reporting unit exceeds its fair value, a write-down of the reporting unit’s goodwill would be necessary. Intangible Assets Intangible assets primarily consist of customer relationships and technology acquired through business combinations. 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 are recorded at their estimated fair value at the date of acquisition. Intangible assets with finite useful lives are tested for impairment whenever events or circumstances indicate that their carrying amount may not be recoverable by comparing the carrying value of the assets to the estimated future undiscounted cash flows to be generated by the asset. If an impairment is determined to exist for intangible assets, the carrying value of the asset is reduced to the estimated fair value. |
Equity Method Investments | Investment in Unconsolidated Entities The Company accounts for investments in unconsolidated entities using the equity method when the Company holds a significant, but less than controlling, ownership interest and has the ability to exercise significant influence over operating and financial decisions of the investee. These investments include our investment in Sagent M&C, LLC (“Sagent”). Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. The Company evaluates the equity method investments for impairment when events or changes in circumstances indicate that an other-than-temporary decline in value may have occurred. See Note 4, Dispositions , for more information on our investment in Sagent. |
Revenue Recognition | Revenue Recognition 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 as performance obligations are satisfied in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. The majority of the Company’s revenue-generating transactions in the Servicing and Originations segments, including revenue generated from financial instruments, such as the Company’s loans and derivatives, as well as revenue related to the Company’s mortgage servicing activities, are not within the scope of ASC 606 as these activities are subject to other GAAP discussed elsewhere within the Company’s disclosures. Generally, revenues from Xome fall within the scope of ASC 606. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers as performance obligations are satisfied in an amount that reflects the consideration that the entity expects to be entitled to receive in exchange for those goods or services. Revenues from Servicing Activities • “ Revenues, service related, net 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, co-issue transaction fees charged to sellers from boarding MSRs, deboarding fees for transferring MSRs off the servicing platform, 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 “revenues - service related, net.” 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 “revenues - service related, net.” Incentive fees for servicing performance on specific GSE portfolios are recognized as various incentive standards are achieved and are recorded as a component of “revenues - service related, net.” Fair value adjustments related to MSRs, excess spread financing and MSRs financing are recorded as component of “revenues - service related, net.” 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 - net gain on mortgage loans held for sale” within the Servicing segment is comprised of the realized and unrealized gains and losses on sales of mortgage loans held for sale, including loans that are repurchased out of GNMA securities and subsequently modified and re-securitized, and any other repurchased loans. • Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates on owned MSRs within the servicing segment. The Company recognizes all derivatives on its consolidated balance sheets at fair value on a recurring basis. The Company treats all derivative instruments as economic hedges, therefore none of its derivative instruments are designated as accounting hedges. The changes in value of derivative instruments are recorded within “revenues - service related, net.” See accounting policy “Derivative Financial Instruments” for more details. Revenues from Origination Activities • “Revenues - servicing related, net” within the Originations segment is comprised of loan origination and other loan fees which generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. • “Revenues - net gain on mortgage loans held for sale” includes the realized and unrealized gains and losses on sales of newly originated mortgage loans, as well as the changes in fair value of all pipeline-related derivatives, including IRLCs. 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. • 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 derivative instruments as economic hedges, therefore none of its derivative instruments are designated as accounting hedges. The changes in value on originations derivative instruments are recorded within revenue in the as “revenues - net gain on mortgage loans held for sale.” See accounting policy “Derivative Financial Instruments” for more details. Revenue from Xome Activities • |
Reserves for Origination Activity, Forward Servicing Activity and Reverse Mortgage Interests | Repurchase Reserves for Origination Activity The Company accrues reserves for the repurchase of loans from GSEs, GNMA, and third-party investors primarily due to origination defect and are initially recorded upon sale of the loan to a third party with subsequent reserves recorded based on repurchase demands. The repurchase reserves are included within “payables and accrued liabilities” in the consolidated balance sheets and the provision for repurchase reserves is a component of “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. During each reporting period, the Company utilizes an internal model to estimate repurchase reserves for loan origination activities based upon its expectation of future defects and historical loss rates. The estimate for the repurchase reserve is based on judgments and historical inputs 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) the quality of Company’s underwriting procedures; (iv) borrower delinquency and default patterns; and (v) other Company-specific and macro-economic factors. On a quarterly basis, management corroborates these assumptions using third-party data, where applicable. Reserves for Servicing Activity In connection with 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 “revenues - service related, net” in the consolidated statements of operations. Such valuation considers 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 or any GNMA loan fallout 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 “expenses - general and administrative” as needed. The Company records reserves for advances and other receivables and evaluates the sufficiency of such reserves through internal models considering expected recovery rates on claims filed with government agencies, government sponsored enterprises, vendors, prior servicer and other counterparties. Key assumptions used in the models include but are not limited to expected recovery rates by loan types, which are derived from historical recovery rates, and aging of the receivable. Recovery of advances and other receivables is subject to 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. |
Credit Loss Reserves | Credit Loss Reserves ASC 326, Financial Instruments – Credit Losses 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, which is referred to as the current expected credit loss, or CECL, methodology. The new standard reflects management’s best estimate of all expected credit losses for the Company’s financial assets that are recognized at amortized cost. The CECL methodology considers expected lifetime loss rates calculated from historical data using a weighted average life to determine the current expected credit loss required. The Company determined that “advances and other receivables, net” and certain financial instruments included in “other assets” are within the scope of ASC 326. For “advances and other receivables, net,” the Company determined that the majority of estimated losses are due to servicing operational errors, and credit-related losses are not significant because of the contractual relationships with the government and government sponsored agencies. The Company determined that the credit-related risk associated with certain applicable financial instruments can increase with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time of 39 months. Any projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required. For “other assets,” primarily trade receivables and service fees earned but not received, the Company determined that these are short-term in nature (less than one year), and the estimated credit-related losses over the life of these receivables are similar to those resulting from the Company’s existing loss reserve process. The Company monitors the financial status of customers to determine if any specific loss considerations are required. |
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 certain SPEs connected with mortgage activities. See Note 14, Securitizations and Financings , for more information on Company SPEs, and Note 13, 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, as of December 31, 2023, 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, Mortgage Servicing Rights and Related Liabilities, and Note 6, Advances and Other Receivables , for additional information regarding MSRs and advances. Financings Accounted as Secured Borrowing 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. |
Interest Income | Interest Income Interest income primarily includes interest earned on custodial cash deposits associated with the servicing portfolio. Interest income is also recognized on mortgage 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 greater than 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 Expense, Policy | Interest Expense Interest expense primarily includes interest incurred on advance, warehouse and MSR facilities, unsecured senior notes, excess spread financing and compensating bank balances, as well as bank fees. The Company incurred interest expense related to advance, warehouse and MSR facilities, unsecured senior notes and excess spread financing of $485, $361 and $370 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Share-Based Compensation Expense | Share-Based Compensation |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and are included as part of “expenses - general and administrative” within the consolidated statements of operations. The Company incurred advertising costs of $23, $37 and $40 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Taxes | Income Taxes The Company is subject to the income tax laws of the U.S. and 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 statements 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 of a change in tax rates on deferred tax assets and liabilities 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 evidence 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, the use of tax planning strategies and the 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 the tax authority has 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. The Company recognizes interest and penalties related to uncertain tax positions as a component of provisions for income taxes in accordance with ASC 740. |
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. In 2021, the Company retired its preferred shares. As of December 31, 2023 and 2022, the Company had 10 million preferred shares authorized at $0.00001, with zero shares issued and outstanding and aggregate liquidation preference of zero dollars. 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. |
Share Repurchases, Policy | Share Repurchases The Company has a stock repurchase program which allows the Company to repurchase its common stock using open market stock purchases or privately negotiated transactions. Repurchased common stock is stated at cost and presented as a separate component of stockholders’ equity in treasury stock. The share repurchase cost will be determined based on the total dollar amount paid for share repurchases for a single day divided by the total volume of shares repurchased. The Inflation Reduction Act of 2022 imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. As a result, the Company recorded the applicable excise tax of $2 during the year ended December 31, 2023 as an incremental cost of the shares repurchased in “treasury shares at cost” within the consolidated balance sheets. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
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 and Level 3) – 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. Newly originated 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. Those loans 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 primarily derived from market observable inputs, 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 on a recurring basis. These loans are valued on a recurring basis using a market approach similar to newly originated loans as mentioned above, with adjustments for assumptions including fail rate, partial claim rate and modification status. As these prices are primarily derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. The Company may also repurchase loans that are unable to be securitized and sold, and fair value is based upon recent market trades for similar loans adjusted for delinquency rates or broker pricing. These loans are valued on a recurring basis and as the prices used are not primarily derived from market observable inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. From time to time, 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 fair value on a recurring basis and classifies these valuations as Level 3 in the fair value disclosures. See Note 7, Mortgage Loans Held for Sale , for more information. Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its 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. Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (OAS) instead of a static discount rate. OAS is the incremental spread added to the risk-free rate to reflect embedded (prepayment) optionality and other risk inherent in the MSRs to discount cash flows. The cash flow assumptions used in the discounted cash flow model incorporate prepayment speeds, OAS, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions, with the key assumptions being mortgage prepayment speeds, OAS, and cost to service. The cash flow 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 5, 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. See Note 6, Advances and Other Receivables , for more information. Equity Investments (Level 1 and Level 3) – The fair value of the common stock received from the previous sale of the title and field services businesses is measured quarterly based on the minimum exit value, which was established at the time of the transaction, and observable market indicators. Because of the nature of the unobservable inputs, the Company classifies these securities as Level 3 in the fair value disclosures. The fair value of the common stock received from the previous sale of the valuation business is measured using the closing price reported on an active market in which the securities are traded. As the fair value is based on market observable inputs, the Company classifies these securities as Level 1 in the fair value disclosures. Derivative Financial Instruments (Level 2 and Level 3) – 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. 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. IRLCs and LPCs are carried at fair value primarily based on secondary market prices for underlying mortgage loans, which is observable data, with adjustments made to such observable data for the inherent value of servicing, which is an unobservable input. The fair value is also subject to adjustments for the estimated pull-through rate. The impact of the unobservable input to the overall valuation of IRLCs and LPCs is significant and results in a classification of Level 3 in the fair value hierarchy. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised, and the loan will be funded. The Company has entered into Treasury futures and swap 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. Derivative financial instruments are recorded in “other assets” and “payables and other liabilities” within the consolidated balance sheets. See Note 12, Derivative Financial Instruments , for more information. Loans Subject to Repurchase from Ginnie Mae (Level 2) – As the Company has the unilateral right to repurchase these loans at the unpaid principal balance, the carrying amount, which is based on the unpaid principal balance, approximates fair value. See Note 10, Loans Subject to Repurchase from Ginnie Mae , 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 13, Indebtedness , for more information. Unsecured Senior Notes (Level 2) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices in a market with limited trading activity. See Note 13, 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. Beginning in the second quarter of 2023, the Company valued excess spread financing using a stochastic OAS instead of a static discount rate. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds and OAS. Quarterly, management obtains a third-party valuation to assess the reasonableness of the fair value calculations provided by the internal cash flow model. 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. Excess spread financing is recorded in MSR related liabilities within the consolidated balance sheets. See Note 5, 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. Mortgage servicing rights financing liability is recorded in MSR related liabilities within the consolidated balance sheets. See Note 5, Mortgage Servicing Rights and Related Liabilities , for more information. |
Mortgage Servicing Rights and_2
Mortgage Servicing Rights and Related Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Transfers and Servicing [Abstract] | |
Schedule of Servicing Assets at Fair Value | The following table sets forth the carrying value of the Company’s MSRs and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions. MSRs and Related Liabilities December 31, 2023 December 31, 2022 MSRs at fair value $ 9,090 $ 6,654 Excess spread financing at fair value $ 437 $ 509 Mortgage servicing rights financing at fair value 29 19 MSR related liabilities - nonrecourse at fair value $ 466 $ 528 The following table sets forth the activities of MSRs: Year Ended December 31, MSRs at Fair Value 2023 2022 Fair value - beginning of year $ 6,654 $ 4,223 Additions: Servicing retained from mortgage loans sold 273 554 Purchases and acquisitions of servicing rights 3,189 1,595 Dispositions: Sales of servicing assets and excess yield (573) (294) Changes in fair value: Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) 121 1,328 Changes in valuation due to amortization (604) (779) Other changes (1) 30 27 Fair value - end of year $ 9,090 $ 6,654 (1) Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments. The following table provides a breakdown of UPB and fair value for the Company’s MSRs: December 31, 2023 December 31, 2022 MSRs - UPB and Fair Value Breakdown by Investor Pools UPB Fair Value UPB Fair Value Agency $ 561,656 $ 8,774 $ 380,502 $ 6,322 Non-agency 26,286 316 30,880 332 Total $ 587,942 $ 9,090 $ 411,382 $ 6,654 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated: Option Adjusted Spread (1) Total Prepayment Speeds Cost to Service per Loan MSRs - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2023 Mortgage servicing rights $ (368) $ (706) $ (219) $ (425) $ (89) $ (178) Discount Rate Total Prepayment Speeds Cost to Service per Loan 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2022 Mortgage servicing rights $ (266) $ (511) $ (136) $ (264) $ (61) $ (122) (1) Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (“OAS”) instead of a static discount rate. Refer to Note 14, Fair Value Measurements , for further discussion. The following table shows the hypothetical effect on the Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated: Option Adjusted Spread (1) Prepayment Speeds Excess Spread Financing - Hypothetical Sensitivities 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2023 Excess spread financing $ 16 $ 32 $ 10 $ 20 Discount Rate Prepayment Speeds 100 bps Adverse Change 200 bps Adverse Change 10% Adverse Change 20% Adverse Change December 31, 2022 Excess spread financing $ 19 $ 40 $ 11 $ 22 |
Schedule of Fees Earned in Exchange for Servicing Financial Assets | Revenues - Service Related, net The following table sets forth the items comprising total “revenues - service related, net”: Year Ended December 31, Revenues - Service Related, net 2023 2022 2021 Contractually specified servicing fees (1) $ 1,700 $ 1,458 $ 1,122 Other service-related income (1) 72 105 72 Incentive and modification income (1) 43 29 51 Servicing late fees (1) 89 76 71 Mark-to-market adjustments - Servicing MSR MTM 121 1,328 502 Loss on MSR hedging activities (68) (332) (86) Gain (loss) on MSR sales 23 (3) 7 Reclassifications (2) (33) (30) (35) Excess spread / MSR financing MTM (18) (142) 33 Total mark-to-market adjustments - Servicing 25 821 421 Amortization, net of accretion MSR amortization (604) (779) (1,008) Excess spread accretion 41 86 255 Total amortization, net of accretion (563) (693) (753) Originations service fees (3) 61 98 176 Corporate/Xome related service fees 84 76 186 Other (4) (71) (105) (279) Total revenues - Service Related, net $ 1,440 $ 1,865 $ 1,067 (1) The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $708, $661 and $495 for the years ended December 31, 2023, 2022 and 2021, respectively. (2) Reclassifications include 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. (3) Amounts include fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and includes loan application, underwriting, and other similar fees. (4) Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements. |
Advances and Other Receivables,
Advances and Other Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Advances, Net | Advances and other receivables, net consists of the following: Advances and Other Receivables, Net December 31, 2023 December 31, 2022 Servicing advances, net of $13 and $12 purchase discount, respectively $ 1,065 $ 1,053 Receivables from agencies, investors and prior servicers, net o f $6 and $7 purchase discount 101 103 Reserves (170) (137) Total advances and other receivables, net $ 996 $ 1,019 The following table sets forth the activities of the servicing reserves for advances and other receivables: Year Ended December 31, Reserves for Advances and Other Receivables 2023 2022 Balance - beginning of year $ 137 $ 167 Provision 40 30 Reclassifications (1) 27 36 Write-offs (34) (96) Balance - end of year $ 170 $ 137 (1) Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate. The following table sets forth the activities of the purchase discount for advances and other receivables: Year Ended December 31, 2023 Year Ended December 31, 2022 Purchase Discount for Advances and Other Receivables Servicing Advances Receivables from Agencies, Investors and Prior Servicers Servicing Advances Receivables from Agencies, Investors and Prior Servicers Balance - beginning of year $ 12 $ 7 $ 19 $ 12 Addition from acquisition (1) 5 — — — Utilization of purchase discounts (4) (1) (7) (5) Balance - end of year $ 13 $ 6 $ 12 $ 7 (1) In connection with the acquisition of Home Point in 2023, the Company recorded the acquired advances and other receivables at estimate fair value as of the acquisition date, which resulted in a purchase discount of $5. Refer to Note 3, Acquisitions , for discussion of the Home Point acquisition. The following table sets forth the activities of the CECL allowance for advances and other receivables: Year Ended December 31, CECL Allowance for Advances and Other Receivables 2023 2022 Balance - beginning of year $ 36 $ 31 Provision 1 10 Write-offs (2) (5) Balance - end of year (1) $ 35 $ 36 (1) As of December 31, 2023, $29 and $6 were included in reserves and purchase discount, respectively. As of December 31, 2022, $29 and $7 were included in reserves and purchase discount , respectively. |
Mortgage Loans Held for Sale (T
Mortgage Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Mortgage Loans Held for Sale [Abstract] | |
Schedule of Mortgage Loans Held-for-Sale | Mortgage loans held for sale are recorded at fair value as set forth below: Year Ended December 31, Mortgage Loans Held for Sale 2023 2022 Mortgage loans held for sale - UPB $ 924 $ 921 Mark-to-market adjustment (1) 3 (28) Total mortgage loans held for sale $ 927 $ 893 (1) The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in “revenues - net gain on mortgage loans held for sale” in the consolidated statements of operations. The following table sets forth the activities of mortgage loans held for sale: Year Ended December 31, Mortgage Loans Held for Sale 2023 2022 Balance - beginning of year $ 893 $ 4,381 Loans sold and loan payments received (14,097) (34,731) Mortgage loans originated and purchased, net of fees 12,856 28,309 Repurchase of loans out of Ginnie Mae securitizations (1) 1,234 3,067 Net change in unrealized gain (loss) on retained loans held for sale 44 (132) Net transfers of mortgage loans held for sale (2) (3) (1) Balance - end of year $ 927 $ 893 (1) The Company has the optional 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 in connection with loan modifications and loan resolution activity, 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. (2) Amount reflects transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing. The total UPB of mortgage loans held for sale on non-accrual status was as follows: December 31, 2023 December 31, 2022 Mortgage Loans Held for Sale UPB Fair Value UPB Fair Value Non-accrual (1) $ 42 $ 36 $ 102 $ 87 (1) Non-accrual UPB includes $35 and $90 of UPB related to Ginnie Mae repurchased loans as of December 31, 2023 and 2022, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: Property and Equipment, Net December 31, 2023 December 31, 2022 Estimated Useful Life Furniture, fixtures, and equipment $ 57 $ 55 5 years Capitalized software costs 94 87 3 - 5 years Software in development and other 8 12 Leasehold improvements 30 27 Lesser of 10 years or remaining lease term Long-term finance leases - computer equipment 5 6 3 - 5 years Property and equipment 194 187 Less: Accumulated depreciation (141) (122) Property and equipment, net $ 53 $ 65 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost | The table below summarizes the Company’s net lease cost: Year Ended December 31, Net Lease Cost 2023 2022 Operating lease cost $ 21 $ 26 Sublease income (3) (3) Total net lease cost $ 18 $ 23 |
Schedule of Operating Leases, Other Information | The table below summarizes other information related to the Company’s operating leases: Year Ended December 31, Operating Leases - Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 19 $ 23 Leased assets obtained in exchange for new operating lease liabilities $ 8 $ 15 Weighted average remaining lease term - operating leases, in years 5.0 6.0 Weighted average discount rate - operating leases 4.6 % 3.8 % |
Schedule of Operating Leases, Maturities | Maturities of operating lease liabilities as of December 31, 2023 are as follows: Year Ending December 31, Operating Leases 2024 $ 23 2025 20 2026 18 2027 16 2028 13 Thereafter 12 Total future minimum lease payments 102 Less: imputed interest 11 Total operating lease liabilities $ 91 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents changes in the carrying amount of goodwill by reportable segment for the year ended December 31, 2023. There were no changes in goodwill in 2022: Year Ended December 31, 2023 Servicing Originations Corporate/Other (2) Total Balance - beginning of year $ 80 $ 28 $ 12 $ 120 Addition from acquisitions (1) 5 — 16 21 Balance - end of year $ 85 $ 28 $ 28 $ 141 (1) As discussed in Note 3, Acquisitions , the Company recorded goodwill in connection with the Roosevelt Transaction. (2) |
Schedule of Intangible Assets | The following tables present the composition of intangible assets: December 31, 2023 Intangible Assets Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 96 $ (73) $ 23 4.7 Trade name 9 (7) 2 4.5 Other (1) 3 — 3 2.8 Total intangible assets $ 108 $ (80) $ 28 4.5 (1) Other intangible assets primarily include licenses. December 31, 2022 Intangible Assets Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Remaining Life in Years Customer relationships $ 74 $ (67) $ 7 5.6 Technology 25 (25) — 0.0 Trade name 7 (6) 1 0.6 Total intangible assets $ 106 $ (98) $ 8 4.9 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument. December 31, 2023 Year Ended December 31, 2023 Derivative Financial Instruments Expiration Outstanding Fair Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2024 $ 337 $ 11 $ 1 Derivative financial instruments Treasury futures 2024 2,634 113 113 Forward MBS trades 2024 2,365 22 155 IRLCs 2024 584 21 (1) LPCs 2024 361 3 2 Total derivative financial instruments - assets $ 5,944 $ 159 $ 269 Liabilities Derivative financial instruments Forward MBS trades 2024 1,049 9 (126) Treasury futures 2024 80 — (196) LPCs 2024 41 — 1 IRLCs 2024 1 — — Total derivative financial instruments - liabilities $ 1,171 $ 9 $ (321) December 31, 2022 Year Ended December 31, 2022 Derivative Financial Instruments Expiration Outstanding Fair Gains/(Losses) Assets Mortgage loans held for sale Loan sale commitments 2023 $ 354 $ 10 $ (15) Derivative financial instruments Treasury futures 2023 — — 4 Forward MBS trades 2023 1,143 8 569 IRLCs 2023 755 22 (112) LPCs 2023 145 1 (2) Total derivative financial instruments - assets $ 2,043 $ 31 $ 459 Liabilities Derivative financial instruments Forward MBS trades 2023 681 9 (56) Treasury futures 2023 892 14 (277) LPCs 2023 209 1 1 IRLCs 2023 15 — — Total derivative financial instruments - liabilities $ 1,797 $ 24 $ (332) |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | December 31, 2023 December 31, 2022 Maturity Date Collateral Capacity Amount Outstanding Collateral Pledged Outstanding Collateral Pledged Advance Facilities $350 advance facility October 2024 Servicing advance receivables $ 350 $ 132 $ 169 $ 150 $ 189 $300 advance facility (1) November 2024 Servicing advance receivables 300 273 364 308 410 $250 advance facility September 2025 Servicing advance receivables 250 250 326 171 209 $50 advance facility December 2024 Servicing advance receivables 50 27 49 40 45 Advance facilities principal amount 682 908 669 853 Warehouse Facilities $1,500 Warehouse Facility June 2024 Mortgage loans or MBS 1,500 107 104 206 272 $750 Warehouse Facility June 2024 Mortgage loans or MBS 750 137 176 135 133 $750 Warehouse Facility October 2024 Mortgage loans or MBS 750 155 166 202 209 $500 Warehouse Facility June 2024 Mortgage loans or MBS 500 72 78 76 80 $350 Warehouse Facility August 2024 Mortgage loans or MBS 350 73 75 31 32 $300 Warehouse Facility (2) February 2024 Mortgage loans or MBS 300 — — 115 117 $250 Warehouse Facility (3) September 2025 Mortgage loans or MBS 250 158 177 14 17 $200 Warehouse Facility December 2024 Mortgage loans or MBS 200 82 84 18 21 $200 Warehouse Facility January 2025 Mortgage loans or MBS 200 12 21 — — $100 Warehouse Facility April 2024 Mortgage loans or MBS 100 25 33 19 28 $100 Warehouse Facility April 2024 Mortgage loans or MBS 100 — — — — $100 Warehouse Facility December 2024 Mortgage loans or MBS 100 1 1 1 1 $1 Warehouse Facility December 2024 Mortgage loans or MBS 1 — — — — Warehouse facilities principal amount 822 915 817 910 MSR Facilities $1,500 Warehouse Facility April 2025 MSR 1,500 980 1,455 260 2,284 $1,450 Warehouse Facility (1) November 2024 MSR 1,450 300 2,164 380 927 $750 Warehouse Facility (3) September 2025 MSR 750 545 1,306 380 1,482 $500 Warehouse Facility June 2025 MSR 500 405 655 365 732 $500 Warehouse Facility April 2025 MSR 500 305 634 — — $500 Warehouse Facility June 2025 MSR 500 250 677 — — $50 Warehouse Facility November 2024 MSR 50 29 67 25 74 MSR facilities principal amount 2,814 6,958 1,410 5,499 Advance, warehouse and MSR facilities principal amount 4,318 $ 8,781 2,896 $ 7,262 Unamortized debt issuance costs (16) (11) Total advance, warehouse and MSR facilities, net $ 4,302 $ 2,885 (1) Total capacity for this facility is $1,750, of which $300 and $1,450 are internally allocated for advance financing and MSR financing, respectively; capacity is fully fungible and is not restricted by these allocations. (2) This facility was terminated in February 2024. (3) The capacity amount for this facility is $1,000, of which $750 is a sublimit for MSR financing. |
Schedule of Unsecured Senior Notes | Unsecured Senior Notes Unsecured senior notes consist of the following: Unsecured Senior Notes December 31, 2023 December 31, 2022 $850 face value, 5.500% interest rate payable semi-annually, due August 2028 $ 850 $ 850 $650 face value, 5.125% interest rate payable semi-annually, due December 2030 650 650 $600 face value, 6.000% interest rate payable semi-annually, due January 2027 600 600 $600 face value, 5.750% interest rate payable semi-annually, due November 2031 600 600 $550 face value, 5.000% interest rate payable semi-annually, due January 2026 (1) 500 — Unsecured senior notes principal amount 3,200 2,700 Purchase discount (1) and unamortized debt issuance costs (49) (27) Unsecured senior notes, net $ 3,151 $ 2,673 (1) In connection with the Home Point Acquisition in 2023, the Company assumed an unsecured senior note with a principal balance of $500 and recorded a purchase discount of $32 on the acquisition date, of which $5 has been accreted in the year ended December 31, 2023. See Note 2, Acquisitions, for further details. |
Schedule of Maturities of Long-term Debt | As of December 31, 2023, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows: Year Ending December 31, Amount 2024 through 2025 $ — 2026 500 2027 600 2028 850 Thereafter 1,250 Total unsecured senior notes principal amount $ 3,200 |
Securitizations and Financings
Securitizations and Financings (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Variable Interest Entities and Securitizations [Abstract] | |
Schedule of Assets and Liabilities of VIEs Included in Financial Statements | 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: December 31, 2023 December 31, 2022 Consolidated Transactions with VIEs Transfers Transfers Assets Restricted cash $ 111 $ 78 Advances and other receivables, net 495 398 Total assets $ 606 $ 476 Liabilities Advance facilities (1) $ 382 $ 321 Payables and other liabilities 1 1 Total liabilities $ 383 $ 322 (1) Refer to advance facilities in Note 13, Indebtedness , for additional information. 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: Unconsolidated Securitization Trusts December 31, 2023 December 31, 2022 Total collateral balances - UPB $ 881 $ 976 Total certificate balances $ 849 $ 949 A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below: Principal Amount of Transferred Loans 60 Days or More Past Due December 31, 2023 December 31, 2022 Unconsolidated securitization trusts $ 91 $ 119 |
Stockholders' Equity and Empl_2
Stockholders' Equity and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share-Based Award Activities | Share-Based Award Activities The following table summarizes the Company’s share-based awards: Share-based Awards Shares (or Units) Weighted-Average Grant Date Fair Value, per Share (or Unit) Share-based awards outstanding as of December 31, 2022 2,348 $ 25.91 Granted 1,319 41.08 Vested (1,426) 15.09 Forfeited (128) 40.95 Share-based awards outstanding as of December 31, 2023 2,113 41.73 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of basic and diluted net income (loss) per common share (amounts in millions, except per share amounts): Year Ended December 31, Computation of Earnings Per Share 2023 2022 2021 Net income from continuing operations $ 500 $ 923 $ 1,466 Less: Undistributed earnings from continuing operations attributable to participating stockholders — — 8 Less: Premium on retirement of preferred stock — — 28 Net income from continuing operations attributable to Mr. Cooper common stockholders $ 500 $ 923 $ 1,430 Net loss from discontinued operations $ — $ — $ (12) Less: Undistributed earnings from discontinued operations attributable to participating stockholders — — — Net loss from discontinued operations attributable to Mr. Cooper common stockholders $ — $ — $ (12) Net income $ 500 $ 923 $ 1,454 Less: Undistributed earnings attributable to participating stockholders — — 8 Less: Premium on retirement of preferred stock — — 28 Net income attributable to common stockholders $ 500 $ 923 $ 1,418 Earnings from continuing operations per common share attributable to Mr. Cooper: Basic $ 7.46 $ 12.84 $ 17.39 Diluted $ 7.30 $ 12.50 $ 16.67 Earnings from discontinued operations per common share attributable to Mr. Cooper: Basic $ — $ — $ (0.15) Diluted $ — $ — $ (0.14) Earnings per common share attributable to Mr. Cooper: Basic $ 7.46 $ 12.84 $ 17.24 Diluted $ 7.30 $ 12.50 $ 16.53 Weighted average shares of common stock outstanding (in thousands): Basic 67,070 71,885 82,247 Dilutive effect of stock awards 1,479 1,933 3,067 Dilutive effect of participating securities — — 492 Diluted 68,549 73,818 85,806 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense for continuing operations were as follows: Year Ended December 31, Total Income Tax Expense on continuing operations 2023 2022 2021 (1) Current Income Taxes Federal $ 3 $ (6) $ 7 State 16 8 113 Total current income taxes 19 2 120 Deferred Income Taxes Federal 110 245 376 State 25 44 (25) Total deferred income taxes 135 289 351 Total income tax expense $ 154 $ 291 $ 471 |
Schedule of Effective Income Tax Rate Reconciliation | The following table presents a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate: Year Ended December 31, Reconciliation of the Income Tax Provision 2023 2022 2021 Tax Expense at Federal Statutory Rate $ 137 $ 255 $ 407 Effect of: State taxes, net of federal benefit 32 39 70 Bargain purchase gain (1) (20) — — Nondeductible executive compensation 11 8 9 Share based compensation (9) (9) (8) Other, net 3 (2) (7) Total income tax expense $ 154 $ 291 $ 471 |
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: Deferred Tax Assets and Liabilities December 31, 2023 December 31, 2022 Deferred Tax Assets Effect of: Goodwill and intangible assets $ 585 $ 827 Loss reserves 101 84 Loss carryforwards (federal, state & capital) 85 104 Lease liability 22 28 Accruals 20 11 Depreciation and amortization, net 8 — Other, net 12 19 Total deferred tax assets 833 1,073 Deferred Tax Liabilities MSR amortization and mark-to-market, net (282) (269) Other investment assets (53) (67) Right-of-use assets (18) (24) Depreciation and amortization, net — (2) Prepaid assets (1) (1) Total deferred tax liabilities (354) (363) Valuation allowance (7) (7) Deferred tax assets, net (1) $ 472 $ 703 |
Schedule of Unrecognized Tax Benefits Roll Forward | Below is a reconciliation of the changes in the federal and state uncertain tax position balances, exclusive of interest and penalties, for the year ended December 31, 2023. Unrecognized Tax Benefits (exclusive of interest and penalties) December 31, 2023 Balance - beginning of year $ — Additions for tax positions taken in prior years 6 Balance - end of year $ 6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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: December 31, 2023 Total Fair Value Recurring Fair Value Measurements Fair Value - Recurring Basis Level 1 Level 2 Level 3 Assets Mortgage loans held for sale $ 927 $ — $ 846 $ 81 Mortgage servicing rights 9,090 — — 9,090 Equity investments 9 1 — 8 Derivative financial instruments: Treasury futures 113 — 113 — Forward MBS trades 22 — 22 — IRLCs 21 — — 21 LPCs 3 — — 3 Liabilities Derivative financial instruments: Forward MBS trades 9 — 9 — Mortgage servicing rights financing 29 — — 29 Excess spread financing 437 — — 437 December 31, 2022 Total Fair Value Recurring Fair Value Measurements Fair Value - Recurring Basis Level 1 Level 2 Level 3 Assets Mortgage loans held for sale $ 893 $ — $ 819 $ 74 Mortgage servicing rights 6,654 — — 6,654 Equity investments 47 2 — 45 Derivative financial instruments: Forward MBS trades 8 — 8 — IRLCs 22 — — 22 LPCs 1 — — 1 Liabilities Derivative financial instruments: Forward MBS trades 9 — 9 — LPCs 1 — — 1 Treasury futures 14 — 14 — Mortgage servicing rights financing 19 — — 19 Excess spread financing 509 — — 509 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis: Year Ended December 31, 2023 Assets Liabilities Fair Value - Level 3 Assets and Liabilities Mortgage servicing rights Mortgage loans held for sale Equity investments IRLCs Excess spread Mortgage servicing rights financing Balance - beginning of year $ 6,654 $ 74 $ 45 $ 22 $ 509 $ 19 Changes in fair value included in earnings (483) 18 (37) (1) 8 10 Purchases/additions (1) 3,189 180 — — — — Issuances 273 — — — — — Sales/dispositions (1) (573) (189) — — — — Repayments — (6) — — (9) — Settlements — — — — (71) — Other changes 30 4 — — — — Balance - end of year $ 9,090 $ 81 $ 8 $ 21 $ 437 $ 29 Year Ended December 31, 2022 Assets Liabilities Fair Value - Level 3 Assets and Liabilities Mortgage servicing rights Mortgage loans held for sale Equity investments IRLCs Excess spread Mortgage servicing rights financing Balance - beginning of year $ 4,223 $ 76 $ 54 $ 134 $ 768 $ 10 Changes in fair value included in earnings 549 (3) (9) (112) 133 9 Purchases/additions (1) 1,595 130 — — — — Issuances 554 — — — — — Sales/dispositions (1) (294) (124) — — — — Repayments — (2) — — (293) — Settlements — — — — (99) — Other changes 27 (3) — — — — Balance - end of year $ 6,654 $ 74 $ 45 $ 22 $ 509 $ 19 (1) |
Fair Value Measurement Inputs and Valuation Techniques | The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities: December 31, 2023 December 31, 2022 Range Weighted Average Range Weighted Average Level 3 Inputs Min Max Min Max MSR (1) Option adjusted spread (2) 6.9 % 12.3 % 8.0 % N/A N/A N/A Discount rate N/A N/A N/A 10.4 % 13.7 % 11.4 % Prepayment speed 6.8 % 9.3 % 7.5 % 6.3 % 12.2 % 7.2 % Cost to service per loan (3) $ 56 $ 160 $ 80 $ 54 $ 155 $ 80 Average life (4) 7.9 years 8.1 years Mortgage loans held for sale Market pricing 45.0 % 103.4 % 81.1 % 37.3 % 114.7 % 77.4 % IRLCs Value of servicing (reflected as a percentage of loan commitment) 1.1 % 3.5 % 1.9 % (0.6) % 3.9 % 2.3 % Excess spread financing Option adjusted spread (2) 7.0 % 12.3 % 8.8 % N/A N/A N/A Discount rate N/A N/A N/A 10.0 % 13.8 % 11.3 % Prepayment speed 7.7 % 9.1 % 8.4 % 6.9 % 13.3 % 9.2 % Average life (4) 6.7 years 6.6 years Mortgage servicing rights financing Advance financing and counterparty fee rates 6.6 % 9.2 % 7.6 % 5.2 % 8.6 % 7.1 % Annual advance recovery rates 12.2 % 14.8 % 13.0 % 15.9 % 20.6 % 17.3 % (1) The inputs are weighted by investor. (2) OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. See discussion on methodology above. (3) Presented in whole dollar amounts. (4) |
Fair Value, by Balance Sheet Grouping | The tables below present a summary of the carrying amount and estimated fair value of the Company’s financial instruments not carried at fair value: December 31, 2023 Carrying Fair Value Financial Instruments Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 571 $ 571 $ — $ — Restricted cash 169 169 — — Advances and other receivables, net 996 — 996 Loans subject to repurchase from Ginnie Mae 966 — 966 — Financial liabilities Unsecured senior notes, net 3,151 — 3,056 — Advance, warehouse and MSR facilities, net 4,302 — 4,318 — Liability for loans subject to repurchase from Ginnie Mae 966 — 966 — December 31, 2022 Carrying Fair Value Financial Instruments Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 527 $ 527 $ — $ — Restricted cash 175 175 — — Advances and other receivables, net 1,019 — — 1,019 Loans subject to repurchase from Ginnie Mae 1,865 — 1,865 — Financial liabilities Unsecured senior notes, net 2,673 — 2,209 — Advance, warehouse and MSR facilities, net 2,885 — 2,896 — Liability for loans subject to repurchase from Ginnie Mae 1,865 — 1,865 — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present financial information by segment: Year Ended December 31, 2023 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 1,295 $ 61 $ 84 $ 1,440 Net gain (loss) on mortgage loans held for sale 84 271 (1) 354 Total revenues 1,379 332 83 1,794 Total expenses 664 232 276 1,172 Interest income 491 36 1 528 Interest expense (324) (37) (176) (537) Other income, net — — 41 41 Total other income (expenses), net 167 (1) (134) 32 Income (loss) from continuing operations before income tax expense (benefit) $ 882 $ 99 $ (327) $ 654 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 12 $ 8 $ 18 $ 38 Total assets $ 11,740 $ 782 $ 1,674 $ 14,196 Year Ended December 31, 2022 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 1,691 $ 98 $ 76 $ 1,865 Net gain on mortgage loans held for sale (33) 632 — 599 Total revenues 1,658 730 76 2,464 Total expenses 559 491 224 1,274 Interest income 208 53 — 261 Interest expense (221) (43) (160) (424) Other income, net — — 187 187 Total other (expenses) income, net (13) 10 27 24 Income (loss) from continuing operations before income tax expense (benefit) $ 1,086 $ 249 $ (121) $ 1,214 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 18 $ 16 $ 3 $ 37 Total assets $ 10,152 $ 749 $ 1,875 $ 12,776 Year Ended December 31, 2021 Financial Information by Segment Servicing Originations Corporate/ Other Consolidated Revenues Service related, net $ 705 $ 176 $ 186 $ 1,067 Net gain on mortgage loans held for sale 568 1,683 — 2,251 Total revenues 1,273 1,859 186 3,318 Total expenses 502 849 311 1,662 Interest income 129 102 — 231 Interest expense (262) (88) (128) (478) Other income, net — — 528 528 Total other (expenses) income, net (133) 14 400 281 Income from continuing operations before income tax expense $ 638 $ 1,024 $ 275 $ 1,937 Depreciation and amortization for property and equipment and intangible assets from continuing operations $ 32 $ 24 $ 1 $ 57 Total assets $ 8,733 $ 3,143 $ 2,328 $ 14,204 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Mortgage loan sale period | 30 days | ||
Advertising costs | $ 23 | $ 37 | $ 40 |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Preferred stock, Liquidation preference | $ 0 | $ 0 | |
Interest Expense | $ 537 | $ 424 | 478 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.00001 | $ 0.00001 | |
Late Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | ||
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | ||
Financial instruments, collection period | 39 months | ||
Debt | |||
Derivative [Line Items] | |||
Interest Expense | $ 485 | $ 361 | $ 370 |
Min | |||
Derivative [Line Items] | |||
Loan commitment period | 30 days | ||
Max | |||
Derivative [Line Items] | |||
Loan commitment period | 90 days |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2023 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 01, 2023 | |
Business Combination, Description [Abstract] | ||||||||
Asset Acquisition, Consideration Transferred | $ 34 | |||||||
Goodwill, Acquired During Period | $ 21 | |||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 96 | $ 0 | $ 0 | |||||
Business Combination, Bargain Purchase, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | |||||||
Corporate/Other(2) | ||||||||
Business Combination, Description [Abstract] | ||||||||
Goodwill, Acquired During Period | $ 16 | |||||||
Servicing | ||||||||
Business Combination, Description [Abstract] | ||||||||
Goodwill, Acquired During Period | $ 5 | |||||||
Home Point Capital Inc | ||||||||
Business Combination, Description [Abstract] | ||||||||
Business Combination, Bargain Purchase, Gain Recognized, Description | The Company believes it was able to negotiate a bargain purchase price due to seller’s operational challenges from significant market volatility, as well as the seller’s desire to exit the business in an expedited manner. | |||||||
Business Combination, Consideration Transferred | $ 658 | |||||||
Acquisition costs | $ 7 | |||||||
Business Combination, Consideration Transferred for MSRs | 335 | |||||||
Business Combination, Consideration Transferred for Tender Offer | $ 323 | |||||||
Price per share (in dollars per share) | $ 2.33 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Senior Note | $ 500 | |||||||
Mortgage servicing rights acquired | $ 1,200 | |||||||
Home Point Capital Inc | Corporate/Other(2) | ||||||||
Business Combination, Description [Abstract] | ||||||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | 96 | |||||||
Roosevelt [Member] | ||||||||
Business Combination, Description [Abstract] | ||||||||
Business Combination, Consideration Transferred | $ 28 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4 | |||||||
Goodwill, Acquired During Period | $ 21 | |||||||
Acquisition costs | 13 | |||||||
Roosevelt [Member] | Corporate/Other(2) | ||||||||
Business Combination, Description [Abstract] | ||||||||
Goodwill, Acquired During Period | 16 | |||||||
Roosevelt [Member] | Servicing | ||||||||
Business Combination, Description [Abstract] | ||||||||
Goodwill, Acquired During Period | $ 5 |
Discontinued Operations and D_2
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | |||
Sagent M&C, LLC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity Method Investments | $ 232 | $ 232 | $ 250 | |
Payments to Acquire Equity Method Investments | $ 12 | |||
Income (Loss) from Equity Method Investments | $ (17) | $ (13) | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Cash | 9.9 | |||
Disposal Group, Including Discontinued Operation, Consideration | 260 | |||
Disposal Group, Discontinued Operation, Transaction Cost | 4 | |||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | $ 31 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | Sagent M&C, LLC | Mr. Cooper Group Inc. | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | Corporate/ Other | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 223 |
Mortgage Servicing Rights and_3
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Mortgage Servicing Rights [Line Items] | ||
Excess spread financing at fair value | $ 437 | $ 509 |
Mortgage servicing rights financing at fair value | 29 | 19 |
MSR related liabilities - nonrecourse at fair value | 466 | 528 |
Mortgage Servicing Rights | ||
Mortgage Servicing Rights [Line Items] | ||
MSRs at fair value | $ 9,090 | $ 6,654 |
Mortgage Servicing Rights and_4
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - Mortgage Servicing Rights - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value - beginning of year | $ 6,654 | $ 4,223 |
Servicing retained from mortgage loans sold | 273 | 554 |
Purchases and acquisitions of servicing rights | 3,189 | 1,595 |
Sales of servicing assets and excess yield | (573) | (294) |
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 121 | 1,328 |
Changes in valuation due to amortization | (604) | (779) |
Other changes(1) | 30 | 27 |
Fair value - end of year | $ 9,090 | $ 6,654 |
Mortgage Servicing Rights and_5
Mortgage Servicing Rights and Related Liabilities - UPB and Fair Value of Forward MSR's (Details) - Mortgage servicing rights - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Owned Service Loans [Line Items] | ||
UPB | $ 587,942 | $ 411,382 |
Fair Value | 9,090 | 6,654 |
Agency | ||
Owned Service Loans [Line Items] | ||
UPB | 561,656 | 380,502 |
Fair Value | 8,774 | 6,322 |
Non-agency | ||
Owned Service Loans [Line Items] | ||
UPB | 26,286 | 30,880 |
Fair Value | $ 316 | $ 332 |
Mortgage Servicing Rights and_6
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
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 | $ 10 | $ 11 |
Total prepayment speeds, 20% adverse change | 20 | 22 |
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 | 16 | |
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 | 32 | |
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 | 19 | |
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 | 40 | |
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 | (219) | (136) |
Total prepayment speeds, 20% adverse change | (425) | (264) |
Cost to service loan, 10% adverse change | (89) | (61) |
Cost to service loan, 20% adverse change | (178) | (122) |
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 | (368) | |
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 | $ (706) | |
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 | (266) | |
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 | $ (511) |
Mortgage Servicing Rights and_7
Mortgage Servicing Rights and Related Liabilities - Revenues for Services Segment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | |||
Contractually specified servicing fees(1) | $ 1,700,000,000 | $ 1,458,000,000 | $ 1,122,000,000 |
Other service-related income(1) | 72,000,000 | 105,000,000 | 72,000,000 |
Incentive and modification income(1) | 43,000,000 | 29,000,000 | 51,000,000 |
Servicing late fees(1) | 89,000,000 | 76,000,000 | 71,000,000 |
MSR MTM | 121,000,000 | 1,328,000,000 | 502,000,000 |
Loss on MSR hedging activities | 68,000,000 | 332,000,000 | 86,000,000 |
Gain (loss) on MSR sales | 23,000,000 | (3,000,000) | 7,000,000 |
Reclassifications(2) | 33,000,000 | 30,000,000 | 35,000,000 |
Excess spread / MSR financing MTM | (18,000,000) | (142,000,000) | 33,000,000 |
Total mark-to-market adjustments - Servicing | 25,000,000 | 821,000,000 | 421,000,000 |
MSR amortization | (604,000,000) | (779,000,000) | (1,008,000,000) |
Excess spread accretion | (41,000,000) | (86,000,000) | (255,000,000) |
Total amortization, net of accretion | (563,000,000) | (693,000,000) | (753,000,000) |
Originations service fees(3) | 61,000,000 | 98,000,000 | 176,000,000 |
Corporate/Xome related service fees | 84,000,000 | 76,000,000 | 186,000,000 |
Other(4) | (71,000,000) | (105,000,000) | (279,000,000) |
Service related, net | 1,440,000,000 | 1,865,000,000 | 1,067,000,000 |
Cash Flows Between Transferor and Transferee, Servicing Fees | $ 708,000,000 | $ 661,000,000 | $ 495,000,000 |
Mortgage Servicing Rights and_8
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Assets at Fair Value [Line Items] | ||
Sale of Excess Yield, Principal Outstanding | $ 41,958 | |
Sale of Excess Yield, Total Proceeds | 294 | |
Gain on Sale of Excess Yield | 33 | |
Excess Spread Financing UPB, Fair Value Disclosure | 74,219 | $ 83,706 |
Forward MSRs Sold | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance sold | 25,239 | 20,902 |
Forward MSRs Sold, Subservicing Retained | ||
Servicing Assets at Fair Value [Line Items] | ||
Principal amount outstanding on mortgage servicing rights | $ 23,218 | $ 19,817 |
Advances and Other Receivables
Advances and Other Receivables - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | |||
Servicing advances, net of $13 and $12 purchase discount, respectively | $ 1,065 | $ 1,053 | |
Receivables from agencies, investors and prior servicers, net of $6 and $7 purchase discount | 101 | 103 | |
Reserves | (170) | (137) | |
Total advances and other receivables, net | 996 | 1,019 | |
Servicing advances discount | 13 | 12 | $ 19 |
Receivable discount | $ 6 | $ 7 | $ 12 |
Advances and Other Receivable_2
Advances and Other Receivables - Advances and Other Receivables Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Advances And Other Receivables, Reserves [Roll Forward] | ||
Balance - beginning of year | $ 137 | $ 167 |
Provision | (40) | (30) |
Reclassifications(1) | 27 | 36 |
Write-offs | (34) | (96) |
Balance - end of year | $ 170 | $ 137 |
Advances and Other Receivable_3
Advances and Other Receivables - Purchase Discount (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Servicing Advances | ||
Balance - beginning of year | $ 12 | $ 19 |
Addition from acquisition(1) | 5 | 0 |
Utilization of purchase discounts | (4) | (7) |
Balance - end of year | 13 | 12 |
Receivables from Agencies, Investors and Prior Servicers | ||
Balance - beginning of year | 7 | 12 |
Addition from acquisition(1) | 0 | 0 |
Utilization of purchase discounts | (1) | (5) |
Balance - end of year | 6 | 7 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Addition from acquisition(1) | 5 | $ 0 |
Home Point Capital Inc | ||
Servicing Advances | ||
Addition from acquisition(1) | 5 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Addition from acquisition(1) | $ 5 |
Advances and Other Receivable_4
Advances and Other Receivables - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provision | $ 1 | $ 10 | |
Allowance for credit loss | 35 | 36 | $ 31 |
Write-offs | $ (2) | (5) | |
Financial instruments, collection period | 39 months | ||
Reserves for Advances and Other Receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit loss | $ 29 | 29 | |
Purchase Discount | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit loss | $ 6 | $ 7 |
Mortgage Loans Held for Sale -
Mortgage Loans Held for Sale - Held For Sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Mortgage loans held for sale - UPB | $ 924 | $ 921 | |
Mark-to-market adjustment(1) | 3 | (28) | |
Total mortgage loans held for sale | 927 | 893 | $ 4,381 |
UPB | 42 | 102 | |
Fair Value | 36 | 87 | |
Ginnie Mae Repurchased Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
UPB | $ 35 | $ 90 |
Mortgage Loans Held for Sale _2
Mortgage Loans Held for Sale - Activities of Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance - beginning of year | $ 893 | $ 4,381 |
Loans sold and loan payments received | (14,097) | (34,731) |
Mortgage loans originated and purchased, net of fees | 12,856 | 28,309 |
Repurchase of loans out of Ginnie Mae securitizations(1) | 1,234 | 3,067 |
Net change in unrealized gain (loss) on retained loans held for sale | 44 | (132) |
Net transfers of mortgage loans held for sale(2) | (3) | (1) |
Balance - end of year | $ 927 | $ 893 |
Mortgage Loans Held for Sale _3
Mortgage Loans Held for Sale - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Mortgage Loans Held for Sale [Abstract] | ||
Sale of mortgage loans held for sale | $ 13,877 | $ 34,464 |
Gain (Loss) on Sale of Mortgage Loans | (33) | 267 |
Mortgage loans held for sale in foreclosure | $ 30 | $ 65 |
Property and Equipment - Schedu
Property and Equipment - Schedule of PPE (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 194 | $ 187 |
Less: Accumulated depreciation | (141) | (122) |
Property and equipment, net | 53 | 65 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 57 | 55 |
Furniture, fixtures, and equipment | Max | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years | |
Capitalized software costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 94 | 87 |
Capitalized software costs | Min | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Capitalized software costs | Max | ||
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, gross | $ 8 | 12 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 30 | 27 |
Leasehold improvements | Max | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 10 years | |
Long-term finance leases - computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Long-term finance leases - computer equipment | $ 5 | $ 6 |
Long-term finance leases - computer equipment | Min | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 3 years | |
Long-term finance leases - computer equipment | Max | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Life | 5 years |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 31 | $ 31 |
Impairment charges | $ 0 | $ 0 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 21 | $ 26 |
Sublease income | (3) | (3) |
Total net lease cost | $ 18 | $ 23 |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 19 | $ 23 |
Leased assets obtained in exchange for new operating lease liabilities | $ 8 | $ 15 |
Weighted average remaining lease term - operating leases, in years | 5 years | 6 years |
Weighted average discount rate - operating leases | 4.60% | 3.80% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2024 | $ 23 | |
2025 | 20 | |
2026 | 18 | |
2027 | 16 | |
2028 | 13 | |
Thereafter | 12 | |
Total future minimum lease payments | 102 | |
Less: imputed interest | 11 | |
Total operating lease liabilities | $ 91 | $ 111 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use assets | $ 72 | $ 96 |
Lease liabilities | $ 91 | $ 111 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Min | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 29 days | |
Operating lease, renewal term | 1 year | |
Max | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Remaining Lease Term | 7 years | |
Operating lease, renewal term | 7 years |
Loans Subject to Repurchase f_2
Loans Subject to Repurchase from Ginnie Mae (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Loans subject to repurchase from Ginnie Mae | $ 966 | $ 1,865 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 108 | $ 106 |
Accumulated Amortization | (80) | (98) |
Net carrying amount | $ 28 | $ 8 |
Weighted Average Remaining Life in Years | 4 years 6 months | 4 years 10 months 24 days |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 96 | $ 74 |
Accumulated Amortization | (73) | (67) |
Net carrying amount | $ 23 | $ 7 |
Weighted Average Remaining Life in Years | 4 years 8 months 12 days | 5 years 7 months 6 days |
Software in development and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 25 | |
Accumulated Amortization | (25) | |
Net carrying amount | $ 0 | |
Weighted Average Remaining Life in Years | 0 years | |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 9 | $ 7 |
Accumulated Amortization | (7) | (6) |
Net carrying amount | $ 2 | $ 1 |
Weighted Average Remaining Life in Years | 4 years 6 months | 7 months 6 days |
Other(1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3 | |
Accumulated Amortization | 0 | |
Net carrying amount | $ 3 | |
Weighted Average Remaining Life in Years | 2 years 9 months 18 days |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Future Amortization (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Asset, Expected Amortization, Year One | $ 7 |
Finite-Lived Intangible Asset, Expected Amortization, Year Two | 7 |
Finite-Lived Intangible Asset, Expected Amortization, Year Three | 6 |
Finite-Lived Intangible Asset, Expected Amortization, Year Four | 5 |
Finite-Lived Intangible Asset, Expected Amortization, Year Five | $ 3 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Line Items] | |||
Goodwill | $ 141 | $ 141 | $ 120 |
Addition from acquisitions(1) | 21 | ||
Impairment of goodwill | 0 | 0 | |
Amortization expense | 7 | 6 | |
Impairment of technology and intangible assets | 0 | 0 | |
Rushmore | |||
Goodwill [Line Items] | |||
Payments to Acquire Intangible Assets | 23 | ||
Roosevelt [Member] | |||
Goodwill [Line Items] | |||
Addition from acquisitions(1) | 21 | ||
Payments to Acquire Intangible Assets | 4 | ||
Servicing | |||
Goodwill [Line Items] | |||
Goodwill | 85 | 85 | 80 |
Addition from acquisitions(1) | 5 | ||
Servicing | Roosevelt [Member] | |||
Goodwill [Line Items] | |||
Addition from acquisitions(1) | 5 | ||
Originations | |||
Goodwill [Line Items] | |||
Goodwill | 28 | 28 | 28 |
Addition from acquisitions(1) | 0 | ||
Corporate/Other(2) | |||
Goodwill [Line Items] | |||
Goodwill | $ 28 | 28 | $ 12 |
Addition from acquisitions(1) | 16 | ||
Corporate/Other(2) | Roosevelt [Member] | |||
Goodwill [Line Items] | |||
Addition from acquisitions(1) | $ 16 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Outstanding Balances (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | $ 5,944 | $ 2,043 |
Gains/(Losses) | 269 | 459 |
Fair Value | 159 | 31 |
Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 1,171 | 1,797 |
Gains/(Losses) | (321) | (332) |
Fair Value | 9 | 24 |
Loan sale commitments | Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 337 | 354 |
Gains/(Losses) | 1 | (15) |
Fair Value | 11 | 10 |
IRLCs | Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 584 | 755 |
Gains/(Losses) | (1) | (112) |
Fair Value | 21 | 22 |
IRLCs | Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 1 | 15 |
Gains/(Losses) | 0 | 0 |
Fair Value | 0 | 0 |
LPCs | Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 361 | 145 |
Gains/(Losses) | 2 | (2) |
Fair Value | 3 | 1 |
LPCs | Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 41 | 209 |
Gains/(Losses) | 1 | 1 |
Fair Value | 0 | 1 |
Forward Contracts [Member] | Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 2,365 | 1,143 |
Gains/(Losses) | 155 | 569 |
Fair Value | 22 | 8 |
Forward Contracts [Member] | Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 1,049 | 681 |
Gains/(Losses) | (126) | (56) |
Fair Value | 9 | 9 |
Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | 14 | |
Treasury futures | Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 2,634 | 0 |
Gains/(Losses) | 113 | 4 |
Fair Value | 113 | 0 |
Treasury futures | Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 80 | 892 |
Gains/(Losses) | (196) | $ (277) |
Fair Value | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Margin deposit assets | $ (8) | $ (49) |
Margin Deposit Assets (Liabilities) | $ 56 | $ 1 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Revenues | Revenues |
Indebtedness - Advance and Ware
Indebtedness - Advance and Warehouse Facilities Summary (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total advance, warehouse and MSR facilities, net | $ 4,302,000,000 | $ 2,885,000,000 |
Advance, Warehouse and MSR Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding | 4,318,000,000 | 2,896,000,000 |
Collateral Pledged | 8,781,000,000 | 7,262,000,000 |
Unamortized debt issuance costs | (16,000,000) | (11,000,000) |
Total advance, warehouse and MSR facilities, net | $ 4,302,000,000 | $ 2,885,000,000 |
Warehouse & MSR Facilities | ||
Debt Instrument [Line Items] | ||
Short-Term Debt, Weighted Average Interest Rate, over Time | 7.60% | 4% |
Servicing | Advance Facilities | ||
Debt Instrument [Line Items] | ||
Short-Term Debt, Weighted Average Interest Rate, over Time | 7.60% | 4.10% |
Loans Payable | Servicing | $350 Advance Facility Due October 2024 [Member] | Advance Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 350,000,000 | |
Outstanding | 132,000,000 | $ 150,000,000 |
Collateral Pledged | 169,000,000 | 189,000,000 |
Loans Payable | Servicing | $300 Advance Facility Due November 2024 [Member] | Advance Financing, Internally Allocated | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 300,000,000 | |
Outstanding | 273,000,000 | 308,000,000 |
Collateral Pledged | 364,000,000 | 410,000,000 |
Loans Payable | Servicing | $250 Advance Facility Due September 2025 [Member] | Advance Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 250,000,000 | |
Outstanding | 250,000,000 | 171,000,000 |
Collateral Pledged | 326,000,000 | 209,000,000 |
Notes Payable to Banks | Servicing | Advance Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding | 682,000,000 | 669,000,000 |
Collateral Pledged | 908,000,000 | 853,000,000 |
Notes Payable to Banks | Servicing | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding | 2,814,000,000 | 1,410,000,000 |
Collateral Pledged | 6,958,000,000 | 5,499,000,000 |
Notes Payable to Banks | Servicing | $50 Advance facility due December 2024 [Member] | Advance Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 50,000,000 | |
Outstanding | 27,000,000 | 40,000,000 |
Collateral Pledged | 49,000,000 | 45,000,000 |
Notes Payable to Banks | Servicing | $1500 MSR Warehouse Facility Due April 2025 [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,500,000,000 | |
Outstanding | 980,000,000 | 260,000,000 |
Collateral Pledged | 1,455,000,000 | 2,284,000,000 |
Notes Payable to Banks | Servicing | $1450 MSR Warehouse Facility, Due November 2024 [Member] | MSR Financing, Internally Allocated | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,450,000,000 | |
Outstanding | 300,000,000 | 380,000,000 |
Collateral Pledged | 2,164,000,000 | 927,000,000 |
Notes Payable to Banks | Servicing | $750 MSR Warehouse Facility, Due September 2025 [Member] | MSR Financing, Internally Allocated | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 750,000,000 | |
Outstanding | 545,000,000 | 380,000,000 |
Collateral Pledged | 1,306,000,000 | 1,482,000,000 |
Notes Payable to Banks | Servicing | $500 MSR WH Facility due June 2025 [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding | 405,000,000 | 365,000,000 |
Collateral Pledged | 655,000,000 | 732,000,000 |
Notes Payable to Banks | Servicing | $500 MSR Warehouse Facility due April 2025 [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding | 305,000,000 | 0 |
Collateral Pledged | 634,000,000 | 0 |
Notes Payable to Banks | Servicing | $500 MSR Warehouse Facility Due June 2025 [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding | 250,000,000 | 0 |
Collateral Pledged | 677,000,000 | 0 |
Notes Payable to Banks | Servicing | $50 MSR Warehouse Facility Due November 2024 [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 50,000,000 | |
Outstanding | 29,000,000 | 25,000,000 |
Collateral Pledged | 67,000,000 | 74,000,000 |
Notes Payable to Banks | Servicing | $1750 warehouse facility [Member] | MSR Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,750,000,000 | |
Notes Payable to Banks | Originations | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Outstanding | 822,000,000 | 817,000,000 |
Collateral Pledged | 915,000,000 | 910,000,000 |
Notes Payable to Banks | Originations | $1500 Warehouse Facility Due June 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,500,000,000 | |
Outstanding | 107,000,000 | 206,000,000 |
Collateral Pledged | 104,000,000 | 272,000,000 |
Notes Payable to Banks | Originations | $750 Warehouse Facility Due June 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 750,000,000 | |
Outstanding | 137,000,000 | 135,000,000 |
Collateral Pledged | 176,000,000 | 133,000,000 |
Notes Payable to Banks | Originations | $750 Warehouse Facility Due October 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 750,000,000 | |
Outstanding | 155,000,000 | 202,000,000 |
Collateral Pledged | 166,000,000 | 209,000,000 |
Notes Payable to Banks | Originations | $500 Warehouse Facility Due June 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 500,000,000 | |
Outstanding | 72,000,000 | 76,000,000 |
Collateral Pledged | 78,000,000 | 80,000,000 |
Notes Payable to Banks | Originations | $350 Warehouse Facility Due August 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 350,000,000 | |
Outstanding | 73,000,000 | 31,000,000 |
Collateral Pledged | 75,000,000 | 32,000,000 |
Notes Payable to Banks | Originations | $300 WH Facility Due February 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 300,000,000 | |
Outstanding | 0 | 115,000,000 |
Collateral Pledged | 0 | 117,000,000 |
Notes Payable to Banks | Originations | $250 Million Warehouse Facility Due September 2025 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 250,000,000 | |
Outstanding | 158,000,000 | 14,000,000 |
Collateral Pledged | 177,000,000 | 17,000,000 |
Notes Payable to Banks | Originations | $200 Million Warehouse Facility Due December 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding | 82,000,000 | 18,000,000 |
Collateral Pledged | 84,000,000 | 21,000,000 |
Notes Payable to Banks | Originations | $200 Million Warehouse Facility Due January 2025 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 200,000,000 | |
Outstanding | 12,000,000 | 0 |
Collateral Pledged | 21,000,000 | 0 |
Notes Payable to Banks | Originations | $100 Million Warehouse Facility Due April 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 100,000,000 | |
Outstanding | 25,000,000 | 19,000,000 |
Collateral Pledged | 33,000,000 | 28,000,000 |
Notes Payable to Banks | Originations | $100 Million WH Facility Due April 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 100,000,000 | |
Outstanding | 0 | 0 |
Collateral Pledged | 0 | 0 |
Notes Payable to Banks | Originations | $100 Warehouse Facility due December 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 100,000,000 | |
Outstanding | 1,000,000 | 1,000,000 |
Collateral Pledged | 1,000,000 | 1,000,000 |
Notes Payable to Banks | Originations | $1 Warehouse Facility Due December 2024 [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | 1,000,000 | |
Outstanding | 0 | 0 |
Collateral Pledged | 0 | $ 0 |
Notes Payable to Banks | Originations | $1000 Warehouse Facility [Member] | Warehouse Facilities | ||
Debt Instrument [Line Items] | ||
Capacity Amount | $ 1,000,000,000 |
Indebtedness - Summary of Unsec
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Aug. 01, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Unsecured senior notes, net | $ 3,151,000,000 | $ 2,673,000,000 | |
Amortization of Debt Discount (Premium) | 5,000,000 | ||
Home Point Capital Inc | |||
Debt Instrument [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Senior Note | $ 500,000,000 | ||
Debt Instrument, Unamortized Discount | $ 32,000,000 | ||
Unsecured Senior Notes | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 3,200,000,000 | 2,700,000,000 | |
Purchase discount(1) and unamortized debt issuance costs | (49,000,000) | (27,000,000) | |
Unsecured senior notes, net | 3,151,000,000 | 2,673,000,000 | |
2026 | 500,000,000 | ||
2027 | 600,000,000 | ||
2028 | 850,000,000 | ||
Unsecured Senior Notes | $850 face value, 5.500% interest rate payable semi-annually, due August 2028 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | 850,000,000 | 850,000,000 | |
Face amount | $ 850,000,000 | ||
Interest rate | 5.50% | ||
Unsecured Senior Notes | $650 face value, 5.125% interest rate payable semi-annually, due December 2030 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 650,000,000 | 650,000,000 | |
Face amount | $ 650,000,000 | ||
Interest rate | 5.125% | ||
Unsecured Senior Notes | $600 face value, 6.000% interest rate payable semi-annually, due January 2027 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 600,000,000 | 600,000,000 | |
Face amount | $ 600,000,000 | ||
Interest rate | 6% | ||
Unsecured Senior Notes | $600 face value, 5.750% interest rate payable semi-annually, due November 2031 | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 600,000,000 | 600,000,000 | |
Face amount | $ 600,000,000 | ||
Interest rate | 5.75% | ||
Unsecured Senior Notes | $550 face value, 5.000% interest rate payable semi-annually, due January 2026(1) | |||
Debt Instrument [Line Items] | |||
Unsecured senior notes principal amount | $ 500,000,000 | $ 0 | |
Face amount | $ 550,000,000 | ||
Interest rate | 5% |
Indebtedness - Schedule of Note
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
2024 through 2025 | $ 0 | |
2026 | 500 | |
2027 | 600 | |
2028 | 850 | |
Thereafter | 1,250 | |
Total unsecured senior notes principal amount | $ 3,200 | $ 2,700 |
Indebtedness - Narrative (Detai
Indebtedness - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Maximum percentage redeemable on secured debt | 40% | |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 0 | $ 0 |
Amount of principal redeemed | $ 0 | $ 0 |
Securitizations and Financing_2
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - Residential Mortgage - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounted for as secured borrowings, assets | $ 606 | $ 476 |
Transfers accounted for as secured borrowings, liabilities | 383 | 322 |
Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounted for as secured borrowings, assets | 111 | 78 |
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 | 495 | 398 |
Advance facilities(1) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounted for as secured borrowings, liabilities | 382 | 321 |
Payables and other liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Transfers accounted for as secured borrowings, liabilities | $ 1 | $ 1 |
Securitizations and Financing_3
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entities and Securitizations [Abstract] | ||
Total collateral balances - UPB | $ 881 | $ 976 |
Total certificate balances | 849 | 949 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Unconsolidated securitization trusts | $ 91 | $ 119 |
Stockholders' Equity and Empl_3
Stockholders' Equity and Employee Benefit Plans - Share-Based Award Activities (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Units | |
Share-based awards outstanding as of December 31, 2022 | shares | 2,348 |
Granted | shares | 1,319 |
Vested | shares | (1,426) |
Forfeited | shares | (128) |
Share-based awards outstanding as of December 31, 2023 | shares | 2,113 |
Grant Date Fair Value | |
Share-based awards outstanding as of December 31, 2022 | $ / shares | $ 25.91 |
Granted | $ / shares | 41.08 |
Vested | $ / shares | 15.09 |
Forfeited | $ / shares | 40.95 |
Share-based awards outstanding as of December 31, 2023 | $ / shares | $ 41.73 |
Stockholders' Equity and Empl_4
Stockholders' Equity and Employee Benefit Plans - Narrative (Details) shares in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Nov. 30, 2023 shares | Mar. 31, 2023 shares | Mar. 31, 2022 shares | Mar. 31, 2021 shares | Mar. 31, 2020 shares | Dec. 31, 2023 USD ($) installmentAnniversary shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of installment anniversaries | installmentAnniversary | 3 | |||||||
Granted | shares | 1,319 | |||||||
Share-based compensation | $ 28 | $ 29 | $ 29 | |||||
Unrecognized compensation expense | $ 48 | |||||||
Unrecognized compensation expense, weighted average period | 1 year | |||||||
Matching contributions amount | $ 11 | 18 | ||||||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 12 | $ 11 | $ 9 | |||||
Tranche One | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employer percent match of contribution | 100% | |||||||
Percent match of gross pay | 2% | |||||||
Tranche Two | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employer percent match of contribution | 50% | |||||||
Percent match of gross pay | 4% | |||||||
Performance Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted | shares | 200 | 100 | 100 | 300 | 500 | |||
Vesting period | 3 years | |||||||
Performance Stock Units | Min | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 0% | 0% | ||||||
Vesting period | 3 years | |||||||
Performance Stock Units | Min | Relative TSR | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 0% | 0% | ||||||
Performance Stock Units | Min | Annualized TBV | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 0% | 0% | ||||||
Performance Stock Units | Max | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 200% | 200% | ||||||
Vesting period | 5 years | |||||||
Performance Stock Units | Max | Relative TSR | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 200% | 200% | ||||||
Performance Stock Units | Max | Annualized TBV | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage of target awards | 200% | 200% |
Earnings Per Share - Narratives
Earnings Per Share - Narratives (Details) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock | |||||
Stock Repurchased and Retired [Line Items] | |||||
Repurchase of common stock (in shares) | (14,800) | 5,577 | 5,417 | 16,924 | |
Preferred Stock | |||||
Stock Repurchased and Retired [Line Items] | |||||
Stock Repurchased and Retired During Period, Shares | (1,000) | (1,000) |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Net income from continuing operations | $ 500 | $ 923 | $ 1,466 |
Less: Undistributed earnings attributable to participating stockholders | 0 | 0 | 8 |
Less: Premium on retirement of preferred stock | 0 | 0 | 28 |
Net income from continuing operations attributable to Mr. Cooper common stockholders | 500 | 923 | 1,430 |
Net loss from discontinued operations | 0 | 0 | (12) |
Less: Undistributed earnings from discontinued operations attributable to participating stockholders | 0 | 0 | 0 |
Net loss from discontinued operations attributable to Mr. Cooper common stockholders | 0 | 0 | (12) |
Net income | 500 | 923 | 1,454 |
Less: Undistributed earnings attributable to participating stockholders | 0 | 0 | 8 |
Net income attributable to common stockholders | $ 500 | $ 923 | $ 1,418 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 7.46 | $ 12.84 | $ 17.39 |
Income (Loss) from Continuing Operations, Per Diluted Share | 7.30 | 12.50 | 16.67 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | 0 | (0.15) |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | 0 | (0.14) |
Basic (in dollars per share) | 7.46 | 12.84 | 17.24 |
Diluted (in dollars per share) | $ 7.30 | $ 12.50 | $ 16.53 |
Weighted average shares of common stock outstanding (in thousands): | |||
Basic (in shares) | 67,070 | 71,885 | 82,247 |
Dilutive effect of stock awards (in shares) | 1,479 | 1,933 | 3,067 |
Dilutive effect of participating securities (in shares) | 0 | 0 | 492 |
Diluted (in shares) | 68,549 | 73,818 | 85,806 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current Income Taxes | |||
Federal | $ 3 | $ (6) | $ 7 |
State | 16 | 8 | 113 |
Total current income taxes | 19 | 2 | 120 |
Deferred Income Taxes | |||
Federal | 110 | 245 | 376 |
State | 25 | 44 | (25) |
Total deferred income taxes | 135 | 289 | 351 |
Total income tax expense | $ 154 | $ 291 | $ 471 |
Income Taxes - Income Taxes at
Income Taxes - Income Taxes at Federal Statutory Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amount | |||
Tax Expense at Federal Statutory Rate | $ 137 | $ 255 | $ 407 |
State taxes, net of federal benefit | 32 | 39 | 70 |
Bargain purchase gain(1) | (20) | 0 | 0 |
Nondeductible executive compensation | 11 | 8 | 9 |
Share based compensation | (9) | (9) | (8) |
Other, net | 3 | (2) | (7) |
Total income tax expense | $ 154 | $ 291 | $ 471 |
Income Taxes - Carryforward and
Income Taxes - Carryforward and Temporary Differences (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Goodwill and intangible assets | $ 585 | $ 827 |
Loss reserves | 101 | 84 |
Loss carryforwards (federal, state & capital) | 85 | 104 |
Lease liability | 22 | 28 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals | 20 | 11 |
Depreciation and amortization, net | 8 | 0 |
Other, net | 12 | 19 |
Total deferred tax assets | 833 | 1,073 |
Deferred Tax Liabilities | ||
MSR amortization and mark-to-market, net | (282) | (269) |
Other investment assets | (53) | (67) |
Right-of-use assets | (18) | (24) |
Depreciation and amortization, net | 0 | (2) |
Prepaid assets | (1) | (1) |
Total deferred tax liabilities | (354) | (363) |
Valuation allowance | (7) | (7) |
Deferred tax assets, net(1) | $ 472 | $ 703 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | |||
Unrecognized tax benefits | $ 6 | $ 0 | $ 0 |
Additions for tax positions taken in prior years | 6 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 7 | 0 | $ 0 |
Unrecognized Tax Benefits, Including Interest and Penalties | 7 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1 | ||
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | 354 | 484 | |
Operating loss carryforwards, valuation allowance | 7 | 7 | |
State | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards, valuation allowance | $ 0 | $ 0 |
Fair Value Measurements - Measu
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Mortgage loans held for sale | $ 927 | $ 893 |
LIABILITIES | ||
Mortgage servicing rights financing | 29 | 19 |
Recurring Fair Value Measurements | ||
ASSETS | ||
Mortgage loans held for sale | 927 | 893 |
MSRs at fair value | 9,090 | 6,654 |
Equity investments | 9 | 47 |
LIABILITIES | ||
Mortgage servicing rights financing | 29 | 19 |
Excess spread financing | 437 | 509 |
Recurring Fair Value Measurements | Level 1 | ||
ASSETS | ||
Mortgage loans held for sale | 0 | 0 |
MSRs at fair value | 0 | 0 |
Equity investments | 1 | 2 |
LIABILITIES | ||
Mortgage servicing rights financing | 0 | 0 |
Excess spread financing | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | ||
ASSETS | ||
Mortgage loans held for sale | 846 | 819 |
MSRs at fair value | 0 | 0 |
Equity investments | 0 | 0 |
LIABILITIES | ||
Mortgage servicing rights financing | 0 | 0 |
Excess spread financing | 0 | 0 |
Recurring Fair Value Measurements | Level 3 | ||
ASSETS | ||
Mortgage loans held for sale | 81 | 74 |
MSRs at fair value | 9,090 | 6,654 |
Equity investments | 8 | 45 |
LIABILITIES | ||
Mortgage servicing rights financing | 29 | 19 |
Excess spread financing | 437 | 509 |
IRLCs | Recurring Fair Value Measurements | ||
ASSETS | ||
Fair Value | 21 | 22 |
IRLCs | Recurring Fair Value Measurements | Level 1 | ||
ASSETS | ||
Fair Value | 0 | 0 |
IRLCs | Recurring Fair Value Measurements | Level 2 | ||
ASSETS | ||
Fair Value | 0 | 0 |
IRLCs | Recurring Fair Value Measurements | Level 3 | ||
ASSETS | ||
Fair Value | 21 | 22 |
Forward MBS trades | Recurring Fair Value Measurements | ||
ASSETS | ||
Fair Value | 22 | 8 |
Fair Value | 9 | 9 |
Forward MBS trades | Recurring Fair Value Measurements | Level 1 | ||
ASSETS | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Forward MBS trades | Recurring Fair Value Measurements | Level 2 | ||
ASSETS | ||
Fair Value | 22 | 8 |
Fair Value | 9 | 9 |
Forward MBS trades | Recurring Fair Value Measurements | Level 3 | ||
ASSETS | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Treasury futures | ||
ASSETS | ||
Fair Value | 14 | |
Treasury futures | Recurring Fair Value Measurements | ||
ASSETS | ||
Fair Value | 113 | |
Fair Value | 14 | |
Treasury futures | Recurring Fair Value Measurements | Level 1 | ||
ASSETS | ||
Fair Value | 0 | |
Fair Value | 0 | |
Treasury futures | Recurring Fair Value Measurements | Level 2 | ||
ASSETS | ||
Fair Value | 113 | |
Fair Value | 14 | |
Treasury futures | Recurring Fair Value Measurements | Level 3 | ||
ASSETS | ||
Fair Value | 0 | |
Fair Value | 0 | |
LPCs | Recurring Fair Value Measurements | ||
ASSETS | ||
Fair Value | 3 | 1 |
Fair Value | 1 | |
LPCs | Recurring Fair Value Measurements | Level 1 | ||
ASSETS | ||
Fair Value | 0 | 0 |
Fair Value | 0 | |
LPCs | Recurring Fair Value Measurements | Level 2 | ||
ASSETS | ||
Fair Value | 0 | 0 |
Fair Value | 0 | |
LPCs | Recurring Fair Value Measurements | Level 3 | ||
ASSETS | ||
Fair Value | $ 3 | 1 |
Fair Value | $ 1 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 (Details) - Recurring Fair Value Measurements - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Excess spread financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | $ 509 | $ 768 |
Changes in fair value included in earnings | 8 | 133 |
Purchases/additions(1) | 0 | 0 |
Issuances | 0 | 0 |
Sales/dispositions(1) | 0 | 0 |
Repayments | (9) | (293) |
Settlements | (71) | (99) |
Other changes | 0 | 0 |
Balance - end of year | 437 | 509 |
Mortgage servicing rights financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | 19 | 10 |
Changes in fair value included in earnings | 10 | 9 |
Purchases/additions(1) | 0 | 0 |
Issuances | 0 | 0 |
Sales/dispositions(1) | 0 | 0 |
Repayments | 0 | 0 |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of year | 29 | 19 |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | 6,654 | 4,223 |
Changes in fair value included in earnings | (483) | 549 |
Purchases/additions(1) | 3,189 | 1,595 |
Issuances | 273 | 554 |
Sales/dispositions(1) | (573) | (294) |
Repayments | 0 | 0 |
Settlements | 0 | 0 |
Other changes | 30 | (27) |
Balance - end of year | 9,090 | 6,654 |
Mortgage loans held for sale | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | 74 | 76 |
Changes in fair value included in earnings | 18 | (3) |
Purchases/additions(1) | 180 | 130 |
Issuances | 0 | 0 |
Sales/dispositions(1) | (189) | (124) |
Repayments | (6) | (2) |
Settlements | 0 | 0 |
Other changes | 4 | (3) |
Balance - end of year | 81 | 74 |
Equity investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | 45 | 54 |
Changes in fair value included in earnings | (37) | (9) |
Purchases/additions(1) | 0 | 0 |
Issuances | 0 | 0 |
Sales/dispositions(1) | 0 | 0 |
Repayments | 0 | 0 |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of year | 8 | 45 |
IRLCs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of year | 22 | 134 |
Changes in fair value included in earnings | (1) | (112) |
Purchases/additions(1) | 0 | 0 |
Issuances | 0 | 0 |
Sales/dispositions(1) | 0 | 0 |
Repayments | 0 | 0 |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of year | $ 21 | $ 22 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Min | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 6.90% | |
Discount rate | 10.40% | |
Prepayment speed | 6.80% | 6.30% |
Cost to service per loan(3) | $ 56 | $ 54 |
Min | Mortgage loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market pricing | $ 0.450 | $ 0.373 |
Min | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | 0.011 | (0.006) |
Min | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 7% | |
Discount rate | 10% | |
Prepayment speed | 7.70% | 6.90% |
Min | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 6.60% | 5.20% |
Annual advance recovery rates | 12.20% | 15.90% |
Max | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 12.30% | |
Discount rate | 13.70% | |
Prepayment speed | 9.30% | 12.20% |
Cost to service per loan(3) | $ 160 | $ 155 |
Max | Mortgage loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market pricing | $ 1.034 | $ 1.147 |
Max | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | 0.035 | 0.039 |
Max | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 12.30% | |
Discount rate | 13.80% | |
Prepayment speed | 9.10% | 13.30% |
Max | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 9.20% | 8.60% |
Annual advance recovery rates | 14.80% | 20.60% |
Weighted Average | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 8% | |
Discount rate | 11.40% | |
Prepayment speed | 7.50% | 7.20% |
Cost to service per loan(3) | $ 80 | $ 80 |
Average life(4) | 7 years 10 months 24 days | 8 years 1 month 6 days |
Weighted Average | Mortgage loans held for sale | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Market pricing | $ 0.811 | $ 0.774 |
Weighted Average | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | 0.019 | 0.023 |
Weighted Average | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Option adjusted spread(2) | 8.80% | |
Discount rate | 11.30% | |
Prepayment speed | 8.40% | 9.20% |
Average life(4) | 6 years 8 months 12 days | 6 years 7 months 6 days |
Weighted Average | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 7.60% | 7.10% |
Annual advance recovery rates | 13% | 17.30% |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets | ||
Loans subject to repurchase from Ginnie Mae | $ 966 | $ 1,865 |
Financial liabilities | ||
Unsecured senior notes, net | 3,151 | 2,673 |
Advance, warehouse and MSR facilities, net | 4,302 | 2,885 |
Fair Value, Nonrecurring | ||
Financial assets | ||
Cash and cash equivalents | 571 | 527 |
Restricted cash | 169 | 175 |
Advances and other receivables, net | 996 | 1,019 |
Loans subject to repurchase from Ginnie Mae | 966 | 1,865 |
Financial liabilities | ||
Unsecured senior notes, net | 3,151 | 2,673 |
Advance, warehouse and MSR facilities, net | 4,302 | 2,885 |
Liability for loans subject to repurchase from Ginnie Mae | 966 | 1,865 |
Fair Value, Nonrecurring | Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 571 | 527 |
Restricted cash | 169 | 175 |
Advances and other receivables, net | 0 | 0 |
Loans subject to repurchase from Ginnie Mae | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes, net | 0 | 0 |
Advance, warehouse and MSR facilities, net | 0 | 0 |
Liability for loans subject to repurchase from Ginnie Mae | 0 | 0 |
Fair Value, Nonrecurring | Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 0 | |
Loans subject to repurchase from Ginnie Mae | 966 | 1,865 |
Financial liabilities | ||
Unsecured senior notes, net | 3,056 | 2,209 |
Advance, warehouse and MSR facilities, net | 4,318 | 2,896 |
Liability for loans subject to repurchase from Ginnie Mae | 966 | 1,865 |
Fair Value, Nonrecurring | Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Advances and other receivables, net | 996 | 1,019 |
Loans subject to repurchase from Ginnie Mae | 0 | 0 |
Financial liabilities | ||
Unsecured senior notes, net | 0 | 0 |
Advance, warehouse and MSR facilities, net | 0 | 0 |
Liability for loans subject to repurchase from Ginnie Mae | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Repurchase Reserve | $ 79 | $ 22 |
Litigation and Regulatory Matters | ||
Loss Contingencies [Line Items] | ||
Legal fees | 39 | $ 23 |
Min | Litigation and Regulatory Matters | ||
Loss Contingencies [Line Items] | ||
Reasonably possible loss | 1 | |
Max | Litigation and Regulatory Matters | ||
Loss Contingencies [Line Items] | ||
Reasonably possible loss | $ 3 |
Segment Information - Financial
Segment Information - Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2023 | |
Revenues: | ||||
Service related, net | $ 1,440 | $ 1,865 | $ 1,067 | |
Net gain on mortgage loans held for sale | 354 | 599 | 2,251 | |
Total revenues | 1,794 | 2,464 | 3,318 | |
Total expenses | 1,172 | 1,274 | 1,662 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest income | 528 | 261 | 231 | |
Interest expense | (537) | (424) | (478) | |
Other income (expenses), net | 41 | 187 | 528 | |
Total other income (expenses), net | 32 | 24 | 281 | |
Income from continuing operations before income tax expense | 654 | 1,214 | 1,937 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 38 | 37 | 57 | |
Total assets | 14,196 | 12,776 | 14,204 | |
2023 Trust Collapse | ||||
Other Nonoperating Income (Expense) [Abstract] | ||||
Payments to Acquire Retained Interest in Securitized Receivables | 82 | |||
Principal amount outstanding on mortgage servicing rights | $ 207 | |||
Proceeds from Sale, Loan, Held-for-Sale | 67 | |||
Operating Segments | Servicing | ||||
Revenues: | ||||
Service related, net | 1,295 | 1,691 | 705 | |
Net gain on mortgage loans held for sale | 84 | (33) | 568 | |
Total revenues | 1,379 | 1,658 | 1,273 | |
Total expenses | 664 | 559 | 502 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest income | 491 | 208 | 129 | |
Interest expense | (324) | (221) | (262) | |
Other income (expenses), net | 0 | 0 | 0 | |
Total other income (expenses), net | 167 | (13) | (133) | |
Income from continuing operations before income tax expense | 882 | 1,086 | 638 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 12 | 18 | 32 | |
Total assets | 11,740 | 10,152 | 8,733 | |
Operating Segments | Originations | ||||
Revenues: | ||||
Service related, net | 61 | 98 | 176 | |
Net gain on mortgage loans held for sale | 271 | 632 | 1,683 | |
Total revenues | 332 | 730 | 1,859 | |
Total expenses | 232 | 491 | 849 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest income | 36 | 53 | 102 | |
Interest expense | (37) | (43) | (88) | |
Other income (expenses), net | 0 | 0 | 0 | |
Total other income (expenses), net | (1) | 10 | 14 | |
Income from continuing operations before income tax expense | 99 | 249 | 1,024 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 8 | 16 | 24 | |
Total assets | 782 | 749 | 3,143 | |
Corporate/ Other | ||||
Revenues: | ||||
Service related, net | 84 | 76 | 186 | |
Net gain on mortgage loans held for sale | (1) | 0 | 0 | |
Total revenues | 83 | 76 | 186 | |
Total expenses | 276 | 224 | 311 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Interest income | 1 | 0 | 0 | |
Interest expense | (176) | (160) | (128) | |
Other income (expenses), net | 41 | 187 | 528 | |
Total other income (expenses), net | (134) | 27 | 400 | |
Income from continuing operations before income tax expense | (327) | (121) | 275 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 18 | 3 | 1 | |
Total assets | $ 1,674 | $ 1,875 | $ 2,328 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - Unsecured Senior Notes, 7.125% Due 2032 - Unsecured Senior Notes | Feb. 01, 2024 USD ($) |
Subsequent Event [Line Items] | |
Face amount | $ 1,000,000,000 |
Interest rate | 7.125% |