x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
91-1653725
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(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
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8950 Cypress Waters Blvd, Coppell, TX
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75019
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(Address of principal executive offices)
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(Zip Code)
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(469) 549-2000
|
||
Registrant’s telephone number, including area code
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Large Accelerated Filer
|
¨
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Accelerated Filer
|
x
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Non-Accelerated Filer
|
¨
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Smaller reporting company
|
¨
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Emerging growth company
|
¨
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Page
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PART I
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Item 1.
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Consolidated Statements of Operations (unaudited) for the
Successor’s Two Months Ended September 30, 2018 and the Predecessor’s One and Seven Months Ended July 31, 2018 and Nine Months Ended September 30, 2017
|
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Consolidated Statements of Stockholders’ Equity (unaudited) for
the Successor’s Two Months Ended September 30, 2018 and the Predecessor’s Seven Months Ended July 31, 2018 and Nine Months Ended September 30, 2017
|
|
|
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Consolidated Statements of Cash Flows (unaudited) for
the Successor’s Two Months Ended September 30, 2018 and the Predecessor’s Seven Months Ended July 31, 2018 and Nine Months Ended September 30, 2017
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Item 2.
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Item 3.
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Item 4.
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PART II
|
|
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|
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Item 1.
|
||
|
|
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Item 1A.
|
||
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Item 2.
|
||
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Item 3.
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||
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Item 4.
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||
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Item 5.
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Item 6.
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||
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|
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Successor
|
|
|
Predecessor
|
||||
|
September 30,
2018 |
|
|
December 31,
2017 |
||||
|
(unaudited)
|
|
|
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
198
|
|
|
|
$
|
215
|
|
Restricted cash
|
332
|
|
|
|
360
|
|
||
Mortgage servicing rights, $3,485 and $2,937 at fair value, respectively
|
3,500
|
|
|
|
2,941
|
|
||
Advances and other receivables, net of reserves of $20 and $284, respectively
|
1,174
|
|
|
|
1,706
|
|
||
Reverse mortgage interests, net of reserves of $1 and $115, respectively
|
8,886
|
|
|
|
9,984
|
|
||
Mortgage loans held for sale at fair value
|
1,681
|
|
|
|
1,891
|
|
||
Mortgage loans held for investment, $122 and $0 at fair value, respectively
|
122
|
|
|
|
139
|
|
||
Property and equipment, net of accumulated depreciation of $9 and $169, respectively
|
102
|
|
|
|
121
|
|
||
Deferred tax asset
|
934
|
|
|
|
—
|
|
||
Other assets
|
799
|
|
|
|
679
|
|
||
Total assets
|
$
|
17,728
|
|
|
|
$
|
18,036
|
|
|
|
|
|
|
||||
Liabilities and Stockholders' Equity
|
|
|
|
|
||||
Unsecured senior notes, net
|
$
|
2,457
|
|
|
|
$
|
1,874
|
|
Advance facilities, net
|
596
|
|
|
|
855
|
|
||
Warehouse facilities, net
|
2,888
|
|
|
|
3,285
|
|
||
Payables and accrued liabilities
|
1,342
|
|
|
|
1,239
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,123
|
|
|
|
1,006
|
|
||
Mortgage servicing liabilities
|
79
|
|
|
|
41
|
|
||
Other nonrecourse debt, net
|
7,165
|
|
|
|
8,014
|
|
||
Total liabilities
|
15,650
|
|
|
|
16,314
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
|
|
|
||
Preferred stock at $0.00001 and $0.01 par value - 10 million and 300 million shares authorized, 1 million and zero shares issued and outstanding for Successor and Predecessor, respectively; aggregate liquidation preference of ten and zero dollars for Successor and Predecessor, respectively
|
—
|
|
|
|
—
|
|
||
Common stock at $0.01 and $0.01 par value - 300 million and 1 billion shares authorized, 90.8 million and 109.9 million shares issued for Successor and Predecessor, respectively
|
1
|
|
|
|
1
|
|
||
Additional paid-in-capital
|
1,093
|
|
|
|
1,131
|
|
||
Retained earnings
|
984
|
|
|
|
731
|
|
||
Treasury shares at cost, zero and 12,187 thousand shares for Successor and Predecessor, respectively
|
—
|
|
|
|
(148
|
)
|
||
Total Mr. Cooper stockholders' equity and Nationstar stockholders' equity, respectively
|
2,078
|
|
|
|
1,715
|
|
||
Non-controlling interests
|
—
|
|
|
|
7
|
|
||
Total stockholders' equity
|
2,078
|
|
|
|
1,722
|
|
||
Total liabilities and stockholders' equity
|
$
|
17,728
|
|
|
|
$
|
18,036
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service related, net
|
$
|
259
|
|
|
|
$
|
120
|
|
|
$
|
252
|
|
|
$
|
901
|
|
|
$
|
748
|
|
Net gain on mortgage loans held for sale
|
83
|
|
|
|
44
|
|
|
154
|
|
|
295
|
|
|
465
|
|
|||||
Total revenues
|
342
|
|
|
|
164
|
|
|
406
|
|
|
1,196
|
|
|
1,213
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries, wages and benefits
|
139
|
|
|
|
69
|
|
|
183
|
|
|
426
|
|
|
557
|
|
|||||
General and administrative
|
136
|
|
|
|
173
|
|
|
185
|
|
|
519
|
|
|
547
|
|
|||||
Total expenses
|
275
|
|
|
|
242
|
|
|
368
|
|
|
945
|
|
|
1,104
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
90
|
|
|
|
48
|
|
|
159
|
|
|
333
|
|
|
437
|
|
|||||
Interest expense
|
(122
|
)
|
|
|
(53
|
)
|
|
(183
|
)
|
|
(388
|
)
|
|
(564
|
)
|
|||||
Other income (expenses)
|
6
|
|
|
|
—
|
|
|
(2
|
)
|
|
6
|
|
|
4
|
|
|||||
Total other income (expenses), net
|
(26
|
)
|
|
|
(5
|
)
|
|
(26
|
)
|
|
(49
|
)
|
|
(123
|
)
|
|||||
Income before income tax expense (benefit)
|
41
|
|
|
|
(83
|
)
|
|
12
|
|
|
202
|
|
|
(14
|
)
|
|||||
Less: Income tax expense (benefit)
|
(979
|
)
|
|
|
(19
|
)
|
|
5
|
|
|
48
|
|
|
(4
|
)
|
|||||
Net income (loss)
|
1,020
|
|
|
|
(64
|
)
|
|
7
|
|
|
154
|
|
|
(10
|
)
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|||||
Net income (loss) attributable to Successor/Predecessor
|
1,020
|
|
|
|
(64
|
)
|
|
7
|
|
|
154
|
|
|
(11
|
)
|
|||||
Less: Undistributed earnings attributable to participating stockholders
|
9
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
1,011
|
|
|
|
$
|
(64
|
)
|
|
$
|
7
|
|
|
$
|
154
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
11.13
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.07
|
|
|
$
|
1.57
|
|
|
$
|
(0.11
|
)
|
Diluted
|
$
|
10.99
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.07
|
|
|
$
|
1.55
|
|
|
$
|
(0.11
|
)
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Shares
(in thousands) |
|
Amount
|
|
Shares
(in thousands)
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Share Amount
|
|
Total Nationstar Stockholders'
Equity and
Mr. Cooper Stockholders' Equity, respectively
|
|
Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||||
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2017
|
—
|
|
|
$
|
—
|
|
|
97,497
|
|
|
$
|
1
|
|
|
$
|
1,122
|
|
|
$
|
701
|
|
|
$
|
(147
|
)
|
|
$
|
1,677
|
|
|
$
|
6
|
|
|
$
|
1,683
|
|
Shares issued / (surrendered) under incentive compensation plan
|
—
|
|
|
—
|
|
|
226
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(11
|
)
|
|
1
|
|
|
(10
|
)
|
||||||||
Balance at September 30, 2017
|
—
|
|
|
$
|
—
|
|
|
97,723
|
|
|
$
|
1
|
|
|
$
|
1,127
|
|
|
$
|
690
|
|
|
$
|
(148
|
)
|
|
$
|
1,670
|
|
|
$
|
7
|
|
|
$
|
1,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2018
|
—
|
|
|
$
|
—
|
|
|
97,728
|
|
|
$
|
1
|
|
|
$
|
1,131
|
|
|
$
|
731
|
|
|
$
|
(148
|
)
|
|
$
|
1,715
|
|
|
$
|
7
|
|
|
$
|
1,722
|
|
Shares issued / (surrendered) under incentive compensation plan
|
—
|
|
|
—
|
|
|
450
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(3
|
)
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(6
|
)
|
|
(1
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
||||||||
Balance at July 31, 2018
|
—
|
|
|
$
|
—
|
|
|
98,178
|
|
|
$
|
1
|
|
|
$
|
1,147
|
|
|
$
|
885
|
|
|
$
|
(151
|
)
|
|
$
|
1,882
|
|
|
$
|
1
|
|
|
$
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at August 1, 2018
|
1,000
|
|
|
$
|
—
|
|
|
90,806
|
|
|
$
|
1
|
|
|
$
|
1,091
|
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
1,056
|
|
|
$
|
—
|
|
|
$
|
1,056
|
|
Shares issued under incentive compensation plan
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
||||||||
Balance at September 30, 2018
|
1,000
|
|
|
$
|
—
|
|
|
90,811
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
984
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||
Operating Activities
|
|
|
|
|
|
|
||||||
Net income (loss) attributable to Successor/Predecessor
|
$
|
1,020
|
|
|
|
$
|
154
|
|
|
$
|
(11
|
)
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
||||||
Deferred tax benefit
|
(931
|
)
|
|
|
—
|
|
|
—
|
|
|||
Net income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
1
|
|
|||
Net gain on mortgage loans held for sale
|
(83
|
)
|
|
|
(295
|
)
|
|
(465
|
)
|
|||
Reverse mortgage loan interest income
|
(72
|
)
|
|
|
(274
|
)
|
|
(370
|
)
|
|||
Gain on sale of assets
|
—
|
|
|
|
(9
|
)
|
|
(8
|
)
|
|||
MSL related increased obligation
|
—
|
|
|
|
59
|
|
|
—
|
|
|||
Provision for servicing reserves
|
14
|
|
|
|
70
|
|
|
97
|
|
|||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
(27
|
)
|
|
|
(177
|
)
|
|
362
|
|
|||
Fair value changes in excess spread financing
|
26
|
|
|
|
81
|
|
|
—
|
|
|||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
|
16
|
|
|
(7
|
)
|
|||
Amortization of premiums, net of discount accretion
|
3
|
|
|
|
8
|
|
|
63
|
|
|||
Depreciation and amortization for property and equipment and intangible assets
|
15
|
|
|
|
33
|
|
|
44
|
|
|||
Share-based compensation
|
2
|
|
|
|
17
|
|
|
13
|
|
|||
Other loss
|
—
|
|
|
|
3
|
|
|
5
|
|
|||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(223
|
)
|
|
|
(544
|
)
|
|
(943
|
)
|
|||
Mortgage loans originated and purchased for sale, net of fees
|
(3,458
|
)
|
|
|
(12,328
|
)
|
|
(14,002
|
)
|
|||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
3,546
|
|
|
|
13,392
|
|
|
15,472
|
|
|||
Excess tax deficiency from share-based compensation
|
—
|
|
|
|
—
|
|
|
(1
|
)
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
Advances and other receivables
|
76
|
|
|
|
377
|
|
|
71
|
|
|||
Reverse mortgage interests
|
442
|
|
|
|
1,601
|
|
|
1,226
|
|
|||
Other assets
|
(15
|
)
|
|
|
(41
|
)
|
|
(17
|
)
|
|||
Payables and accrued liabilities
|
(159
|
)
|
|
|
151
|
|
|
(284
|
)
|
|||
Net cash attributable to operating activities
|
176
|
|
|
|
2,294
|
|
|
1,246
|
|
|||
|
|
|
|
|
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
||||||
Acquisition, net of cash acquired
|
(33
|
)
|
|
|
—
|
|
|
—
|
|
|||
Property and equipment additions, net of disposals
|
(14
|
)
|
|
|
(40
|
)
|
|
(34
|
)
|
|||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(63
|
)
|
|
|
(134
|
)
|
|
(28
|
)
|
|||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
|
(1
|
)
|
|
—
|
|
|||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
|
—
|
|
|
16
|
|
|||
Proceeds on sale of forward and reverse mortgage servicing rights
|
60
|
|
|
|
—
|
|
|
25
|
|
|||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
|
16
|
|
|||
Net cash attributable to investing activities
|
(50
|
)
|
|
|
(162
|
)
|
|
(5
|
)
|
•
|
Exchange
is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned ("REO") and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer.
|
•
|
Services
connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers.
|
•
|
SaaS
includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service ("MLS") organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606.
|
Purchase Price:
|
|
||
Converted WMIH common shares (prior to reverse stock split) in millions
|
394
|
|
|
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018
|
$
|
1.398
|
|
Purchase price from common stock issued
|
551
|
|
|
Purchase price from cash payment
|
1,226
|
|
|
Total purchase price
|
$
|
1,777
|
|
|
Useful Life (Years)
|
|
Fair Value
|
||
Customer relationships
(i)
|
6
|
|
$
|
61
|
|
Tradename
(ii)
|
5
|
|
8
|
|
|
Technology
(ii)
|
3-5
|
|
11
|
|
|
Internally developed software
(iii)
|
2
|
|
23
|
|
|
Total
|
|
|
$
|
103
|
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
Pro forma total revenues
|
$
|
506
|
|
|
$
|
1,538
|
|
|
|
|
|
||||
Pro forma net income
|
$
|
(20
|
)
|
|
$
|
156
|
|
|
Successor
|
|
Predecessor
|
||||
MSRs and Related Liabilities
|
September 30, 2018
|
|
December 31, 2017
|
||||
Forward MSRs - fair value
|
$
|
3,485
|
|
|
$
|
2,937
|
|
Reverse MSRs - amortized cost
|
15
|
|
|
4
|
|
||
Mortgage servicing rights
|
$
|
3,500
|
|
|
$
|
2,941
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
79
|
|
|
$
|
41
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,097
|
|
|
$
|
996
|
|
Mortgage servicing rights financing - fair value
|
26
|
|
|
10
|
|
||
MSR related liabilities - nonrecourse at fair value
|
$
|
1,123
|
|
|
$
|
1,006
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||
MSRs - Fair Value
|
|
|
|
|||||||||
Fair value - beginning of period
|
$
|
3,413
|
|
|
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
|
|
|
||||||
Servicing retained from mortgage loans sold
|
43
|
|
|
|
162
|
|
|
151
|
|
|||
Purchases of servicing rights
|
72
|
|
|
|
144
|
|
|
30
|
|
|||
Dispositions:
|
|
|
|
|
|
|
||||||
Sales of servicing assets
(1)
|
(63
|
)
|
|
|
4
|
|
|
(24
|
)
|
|||
Changes in fair value:
|
|
|
|
|
|
|
||||||
Changes in valuation inputs or assumptions used in the valuation model
|
65
|
|
|
|
330
|
|
|
(113
|
)
|
|||
Other changes in fair value
|
(45
|
)
|
|
|
(164
|
)
|
|
(248
|
)
|
|||
Fair value - end of period
|
$
|
3,485
|
|
|
|
$
|
3,413
|
|
|
$
|
2,956
|
|
|
Successor
|
|
Predecessor
|
||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
MSRs - Sensitivity Pools
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
144,697
|
|
|
$
|
1,652
|
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
Interest sensitive
|
129,789
|
|
|
1,833
|
|
|
113,775
|
|
|
1,365
|
|
||||
Total
|
$
|
274,486
|
|
|
$
|
3,485
|
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
|
Successor
|
|
Predecessor
|
||
Credit Sensitive
|
September 30, 2018
|
|
December 31, 2017
|
||
Discount rate
|
11.2
|
%
|
|
11.4
|
%
|
Total prepayment speeds
|
11.2
|
%
|
|
15.2
|
%
|
Expected weighted-average life
|
6.7 years
|
|
|
5.7 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.2
|
%
|
Total prepayment speeds
|
8.9
|
%
|
|
10.7
|
%
|
Expected weighted-average life
|
7.4 years
|
|
|
6.7 years
|
|
|
Discount Rate
|
|
Total Prepayment Speeds
|
||||||||||||
MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
Successor
|
|
|
|
|
|
|
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(138
|
)
|
|
$
|
(266
|
)
|
|
$
|
(117
|
)
|
|
$
|
(227
|
)
|
Predecessor
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(108
|
)
|
|
$
|
(208
|
)
|
|
$
|
(118
|
)
|
|
$
|
(227
|
)
|
Excess Spread Financing
|
Prepayment Speeds
|
|
Average
Life (Years) |
|
Discount Rate
|
|
Recapture Rate
|
Successor
|
|
|
|
|
|
|
|
September 30, 2018
|
|
|
|
|
|
|
|
Low
|
5.9%
|
|
5.3
|
|
8.5%
|
|
7.6%
|
High
|
15.0%
|
|
8.5
|
|
14.0%
|
|
26.7%
|
Weighted-average
|
10.6%
|
|
6.7
|
|
10.6%
|
|
17.7%
|
Predecessor
|
|
|
|
|
|
|
|
December 31, 2017
|
|
|
|
|
|
|
|
Low
|
6.2%
|
|
4.4
|
|
8.5%
|
|
7.2%
|
High
|
21.2%
|
|
6.9
|
|
14.1%
|
|
30.0%
|
Weighted-average
|
13.7%
|
|
5.9
|
|
10.8%
|
|
18.7%
|
|
Discount Rate
|
|
Prepayment Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
Successor
|
|
|
|
|
|
|
|
||||||||
September 30, 2018
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
44
|
|
|
$
|
92
|
|
|
$
|
33
|
|
|
$
|
68
|
|
Predecessor
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
37
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
71
|
|
|
Successor
|
|
Predecessor
|
||
Mortgage Servicing Rights Financing Assumptions
|
September 30, 2018
|
|
December 31, 2017
|
||
Advance financing rates
|
4.9
|
%
|
|
3.5
|
%
|
Annual advance recovery rates
|
18.2
|
%
|
|
23.2
|
%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Servicing Revenue
|
|
|
|
|
|
|||||||||||||||
Contractually specified servicing fees
(1)
|
$
|
163
|
|
|
|
$
|
79
|
|
|
$
|
251
|
|
|
$
|
574
|
|
|
$
|
759
|
|
Other service-related income
(1)(2)
|
18
|
|
|
|
10
|
|
|
40
|
|
|
66
|
|
|
126
|
|
|||||
Incentive and modification income
(1)
|
8
|
|
|
|
4
|
|
|
19
|
|
|
37
|
|
|
63
|
|
|||||
Late fees
(1)
|
14
|
|
|
|
7
|
|
|
22
|
|
|
53
|
|
|
67
|
|
|||||
Reverse servicing fees
|
13
|
|
|
|
4
|
|
|
16
|
|
|
37
|
|
|
43
|
|
|||||
Mark-to-market adjustments
(2)(3)
|
24
|
|
|
|
25
|
|
|
(44
|
)
|
|
196
|
|
|
(160
|
)
|
|||||
Counterparty revenue share
(4)
|
(26
|
)
|
|
|
(16
|
)
|
|
(53
|
)
|
|
(111
|
)
|
|
(174
|
)
|
|||||
Amortization, net of accretion
(5)
|
(31
|
)
|
|
|
(16
|
)
|
|
(60
|
)
|
|
(112
|
)
|
|
(187
|
)
|
|||||
Total servicing revenue
|
$
|
183
|
|
|
|
$
|
97
|
|
|
$
|
191
|
|
|
$
|
740
|
|
|
$
|
537
|
|
|
Successor
|
|
Predecessor
|
||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
Servicing advances, net of $227 and $0 discount, respectively
|
$
|
889
|
|
|
$
|
1,599
|
|
Receivables from agencies, investors and prior servicers, net of $56 and $0 discount, respectively
|
305
|
|
|
391
|
|
||
Reserves
|
(20
|
)
|
|
(284
|
)
|
||
Total advances and other receivables, net
|
$
|
1,174
|
|
|
$
|
1,706
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Reserves for Advances and Other Receivables
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Balance - beginning of period
|
$
|
—
|
|
|
|
$
|
294
|
|
|
$
|
236
|
|
|
$
|
284
|
|
|
$
|
184
|
|
Provision and other additions
(1)
|
20
|
|
|
|
7
|
|
|
30
|
|
|
69
|
|
|
106
|
|
|||||
Write-offs
|
—
|
|
|
|
(4
|
)
|
|
(13
|
)
|
|
(56
|
)
|
|
(37
|
)
|
|||||
Balance - end of period
|
$
|
20
|
|
|
|
$
|
297
|
|
|
$
|
253
|
|
|
$
|
297
|
|
|
$
|
253
|
|
|
Successor
|
||||||
|
For the Period August 1 - September 30, 2018
|
||||||
Purchase Discounts
|
Servicing Advances
|
|
Receivables from Agencies, Investors and Prior Servicers
|
||||
Balance - beginning of period
|
$
|
246
|
|
|
$
|
56
|
|
Accretion
|
(19
|
)
|
|
—
|
|
||
Balance - end of period
|
$
|
227
|
|
|
$
|
56
|
|
|
Successor
|
|
Predecessor
|
||||
Reverse Mortgage Interests, Net
|
September 30, 2018
|
|
December 31, 2017
|
||||
Participating interests in HECM mortgage-backed securities, net of $55 and $0 premium, respectively
|
$
|
6,074
|
|
|
$
|
7,107
|
|
Other interests securitized, net of $117 and $0 discount, respectively
|
1,003
|
|
|
912
|
|
||
Unsecuritized interests, net of $151 and $89 discount, respectively
|
1,810
|
|
|
2,080
|
|
||
Reserves
|
(1
|
)
|
|
(115
|
)
|
||
Total reverse mortgage interests, net
|
$
|
8,886
|
|
|
$
|
9,984
|
|
|
Successor
|
|
Predecessor
|
||||
Unsecuritized Interests
|
September 30, 2018
|
|
December 31, 2017
|
||||
Repurchased HECM loans
|
$
|
1,512
|
|
|
$
|
1,751
|
|
HECM related receivables
|
353
|
|
|
311
|
|
||
Funded borrower draws not yet securitized
|
68
|
|
|
82
|
|
||
REO related receivables
|
28
|
|
|
25
|
|
||
Purchase discount
|
(151
|
)
|
|
(89
|
)
|
||
Total unsecuritized interests
|
$
|
1,810
|
|
|
$
|
2,080
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Reserves for reverse mortgage interests
|
|
|
|
|
|
|||||||||||||||
Balance - beginning of period
|
$
|
—
|
|
|
|
$
|
117
|
|
|
$
|
149
|
|
|
$
|
115
|
|
|
$
|
131
|
|
Provision, net
|
1
|
|
|
|
12
|
|
|
22
|
|
|
32
|
|
|
44
|
|
|||||
Write-offs
|
—
|
|
|
|
—
|
|
|
(83
|
)
|
|
(18
|
)
|
|
(87
|
)
|
|||||
Balance - end of period
|
$
|
1
|
|
|
|
$
|
129
|
|
|
$
|
88
|
|
|
$
|
129
|
|
|
$
|
88
|
|
|
Successor
|
||||||||||
|
For the Period August 1 - September 30, 2018
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Premium for Participating Interests in HMBS
|
|
Discount for Other Interest Securitized
|
|
Discount for Unsecuritized Interests
|
||||||
Balance - beginning of period
|
$
|
58
|
|
|
$
|
(117
|
)
|
|
$
|
(161
|
)
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Accretion/(Amortization)
|
(3
|
)
|
|
—
|
|
|
10
|
|
|||
Balance - end of period
|
$
|
55
|
|
|
$
|
(117
|
)
|
|
$
|
(151
|
)
|
|
Predecessor
|
||||||||||||||
Purchase discounts for reverse mortgage interests
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||
Balance - beginning of period
|
$
|
(84
|
)
|
|
$
|
(43
|
)
|
|
$
|
(89
|
)
|
|
$
|
(43
|
)
|
Additions
|
—
|
|
|
(75
|
)
|
|
(7
|
)
|
|
(75
|
)
|
||||
Accretion
|
2
|
|
|
22
|
|
|
14
|
|
|
22
|
|
||||
Balance - end of period
|
$
|
(82
|
)
|
|
$
|
(96
|
)
|
|
$
|
(82
|
)
|
|
$
|
(96
|
)
|
|
Successor
|
|
Predecessor
|
||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
Mortgage loans held for sale – UPB
|
$
|
1,639
|
|
|
$
|
1,837
|
|
Mark-to-market adjustment
(1)
|
42
|
|
|
54
|
|
||
Total mortgage loans held for sale
|
$
|
1,681
|
|
|
$
|
1,891
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
Mortgage loans held for sale
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||
Balance - beginning of period
|
$
|
1,514
|
|
|
|
$
|
1,891
|
|
|
$
|
1,788
|
|
Mortgage loans originated and purchased, net of fees
|
3,459
|
|
|
|
12,319
|
|
|
13,988
|
|
|||
Loans sold
|
(3,508
|
)
|
|
|
(13,255
|
)
|
|
(15,107
|
)
|
|||
Repurchase of loans out of Ginnie Mae securitizations
|
223
|
|
|
|
544
|
|
|
943
|
|
|||
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims
(1)
|
(2
|
)
|
|
|
(7
|
)
|
|
(16
|
)
|
|||
Net transfer of mortgage loans held for sale from REO in other assets
(2)
|
4
|
|
|
|
14
|
|
|
20
|
|
|||
Changes in fair value
|
(8
|
)
|
|
|
(1
|
)
|
|
16
|
|
|||
Other purchase-related activities
(3)
|
(1
|
)
|
|
|
9
|
|
|
14
|
|
|||
Balance - end of period
|
$
|
1,681
|
|
|
|
$
|
1,514
|
|
|
$
|
1,646
|
|
|
Successor
|
||
|
September 30, 2018
|
||
Mortgage loans held for investment, net – UPB
|
$
|
161
|
|
Fair value adjustments
|
(39
|
)
|
|
Total mortgage loans held for investment at fair value
|
$
|
122
|
|
|
Predecessor
|
||
|
December 31, 2017
|
||
Mortgage loans held for investment, net – UPB
|
$
|
193
|
|
Transfer discount:
|
|
||
Non-accretable
|
(41
|
)
|
|
Accretable
|
(12
|
)
|
|
Allowance for loan losses
|
(1
|
)
|
|
Total mortgage loans held for investment
|
$
|
139
|
|
|
Successor
|
||||||
|
September 30, 2018
|
||||||
Mortgage Loans Held for Investment - UPB
|
UPB
|
|
Fair Value
|
||||
Non-accrual
|
$
|
32
|
|
|
$
|
15
|
|
|
Successor
|
||
Mortgage loans held for investment at fair value
|
For the Period August 1 - September 30, 2018
|
||
Balance - beginning of period
|
$
|
125
|
|
Payments received from borrowers
|
(2
|
)
|
|
Losses incurred
|
(1
|
)
|
|
Changes in fair value
(1)
|
—
|
|
|
Balance - end of period
|
$
|
122
|
|
|
Successor
|
|
Predecessor
|
||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
Loans subject to repurchase right from Ginnie Mae
|
$
|
231
|
|
|
$
|
218
|
|
Accrued revenues
|
144
|
|
|
148
|
|
||
Intangible assets
|
117
|
|
|
19
|
|
||
Derivative financial instruments at fair value
|
72
|
|
|
65
|
|
||
Prepaid expenses
|
31
|
|
|
27
|
|
||
REO, net
|
19
|
|
|
23
|
|
||
Deposits
|
15
|
|
|
19
|
|
||
Goodwill
|
3
|
|
|
72
|
|
||
Receivables from affiliates, net
|
—
|
|
|
6
|
|
||
Other
|
167
|
|
|
82
|
|
||
Total other assets
|
$
|
799
|
|
|
$
|
679
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||
|
|
|
September 30, 2018
|
|
For the Period August 1 - September 30, 2018
|
|
For the Period January 1 - July 31, 2018
|
||||||||
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded (Losses)/Gains
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2018
|
|
$
|
428
|
|
|
$
|
6.9
|
|
|
(3.7
|
)
|
|
10.5
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2018
|
|
1,765
|
|
|
57.8
|
|
|
(1.8
|
)
|
|
0.4
|
|
||
Forward sales of MBS
|
2018
|
|
3,040
|
|
|
12.2
|
|
|
9.0
|
|
|
0.9
|
|
||
LPCs
|
2018
|
|
228
|
|
|
1.7
|
|
|
0.5
|
|
|
0.3
|
|
||
Treasury futures
(1)
|
2018
|
|
65
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
||
Eurodollar futures
(1)
|
2018-2021
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2018
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Forward sales of MBS
|
2018
|
|
413
|
|
|
0.5
|
|
|
(1.4
|
)
|
|
(1.0
|
)
|
||
LPCs
|
2018
|
|
320
|
|
|
1.5
|
|
|
0.9
|
|
|
0.1
|
|
||
Treasury futures
|
2018
|
|
53
|
|
|
0.1
|
|
|
0.1
|
|
|
(1.3
|
)
|
||
Eurodollar futures
(1)
|
2020-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
Predecessor
|
||||||||||
|
|
|
September 30, 2017
|
|
Nine Months Ended September 30, 2017
|
||||||||
|
Expiration
Dates |
|
Outstanding
Notional |
|
Fair
Value |
|
Recorded Gains/(Losses)
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
(1)
|
2017
|
|
$
|
1
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2017
|
|
2,531
|
|
|
68.7
|
|
|
(23.5
|
)
|
|||
Forward sales of MBS
|
2017
|
|
2,524
|
|
|
4.7
|
|
|
(34.5
|
)
|
|||
LPCs
|
2017
|
|
132
|
|
|
1.0
|
|
|
(0.9
|
)
|
|||
Treasury futures
|
2017
|
|
255
|
|
|
2.0
|
|
|
2.0
|
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
11
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2017
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2017
|
|
7
|
|
|
—
|
|
|
1.1
|
|
|||
Forward sales of MBS
|
2017
|
|
1,137
|
|
|
3.2
|
|
|
6.8
|
|
|||
LPCs
|
2017
|
|
335
|
|
|
1.2
|
|
|
0.3
|
|
|||
Treasury futures
|
2017
|
|
479
|
|
|
2.0
|
|
|
(2.0
|
)
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
45
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2017
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Nationstar agency advance receivables trust
|
|
LIBOR+1.9% to 2.6%
|
|
November 2019
|
|
Servicing advance receivables
|
|
$
|
575
|
|
|
$
|
232
|
|
|
$
|
271
|
|
|
$
|
416
|
|
|
$
|
492
|
|
Nationstar mortgage advance receivable trust
|
|
LIBOR+1.5% to 6.5%
|
|
August 2021
|
|
Servicing advance receivables
|
|
325
|
|
|
264
|
|
|
333
|
|
|
230
|
|
|
287
|
|
|||||
Nationstar agency advance financing facility
|
|
LIBOR+1.9% to 7.4%
|
|
January 2019
|
|
Servicing advance receivables
|
|
150
|
|
|
67
|
|
|
78
|
|
|
102
|
|
|
117
|
|
|||||
MBS servicer advance facility (2014)
|
|
CPRATE+3.0%
|
|
January 2019
|
|
Servicing advance receivables
|
|
125
|
|
|
33
|
|
|
145
|
|
|
44
|
|
|
140
|
|
|||||
MBS advance financing facility
|
|
LIBOR + 2.5%
|
|
March 2019
|
|
Servicing advance receivables
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
64
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
596
|
|
|
$
|
827
|
|
|
855
|
|
|
$
|
1,100
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||||
Advance facilities, net
|
|
|
|
$
|
596
|
|
|
|
|
$
|
855
|
|
|
|
||||||||||||
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,200 warehouse facility
|
|
LIBOR+1.9% to 3.8%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
$
|
1,200
|
|
|
$
|
664
|
|
|
$
|
730
|
|
|
$
|
889
|
|
|
$
|
960
|
|
$1,000 warehouse facility
|
|
LIBOR+1.6% to 2.5%
|
|
September 2019
|
|
Mortgage loans or MBS
|
|
1,000
|
|
|
220
|
|
|
225
|
|
|
299
|
|
|
308
|
|
|||||
$950 warehouse facility
|
|
LIBOR+2.0% to 3.5%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
950
|
|
|
661
|
|
|
735
|
|
|
721
|
|
|
785
|
|
|||||
$600 warehouse facility
|
|
LIBOR+2.5%
|
|
February 2019
|
|
Mortgage loans or MBS
|
|
600
|
|
|
263
|
|
|
285
|
|
|
333
|
|
|
347
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.5% to 2.8%
|
|
August 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
160
|
|
|
164
|
|
|
233
|
|
|
239
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
500
|
|
|
291
|
|
|
320
|
|
|
305
|
|
|
337
|
|
|||||
$500 warehouse facility
|
|
LIBOR+2.0% to 3.5%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
218
|
|
|
233
|
|
|
246
|
|
|
272
|
|
|||||
$300 warehouse facility
|
|
LIBOR+2.3%
|
|
January 2019
|
|
Mortgage loans or MBS
|
|
300
|
|
|
89
|
|
|
111
|
|
|
116
|
|
|
141
|
|
|||||
$250 Warehouse Facility
|
|
LIBOR+2.0% to 2.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
250
|
|
|
177
|
|
|
182
|
|
|
—
|
|
|
—
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.6%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
43
|
|
|
44
|
|
|
80
|
|
|
81
|
|
|||||
$200 warehouse facility
|
|
LIBOR+4.0%
|
|
June 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
100
|
|
|
198
|
|
|
50
|
|
|
50
|
|
|||||
$150 warehouse facility
|
|
LIBOR+4.3%
|
|
December 2018
|
|
Mortgage loans or MBS
|
|
150
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|||||
$50 warehouse facility
|
|
LIBOR+4.5%
|
|
August 2020
|
|
Mortgage loans or MBS
|
|
50
|
|
|
—
|
|
|
44
|
|
|
10
|
|
|
10
|
|
|||||
$40 warehouse facility
|
|
LIBOR+3.0%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
40
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
6
|
|
|||||
Warehouse facilities principal amount
|
|
|
|
|
|
2,888
|
|
|
$
|
3,372
|
|
|
3,286
|
|
|
$
|
3,536
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
(1
|
)
|
|
|
||||||||||||
Warehouse facilities, net
|
|
|
|
$
|
2,888
|
|
|
|
|
$
|
3,285
|
|
|
|
||||||||||||
|
||||||||||||||||||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans, net
|
|
|
|
|
|
|
|
$
|
1,595
|
|
|
$
|
1,481
|
|
|
$
|
1,852
|
|
|
$
|
1,680
|
|
||||
Reverse mortgage interests, net
|
|
|
|
|
|
|
|
1,193
|
|
|
1,342
|
|
|
1,434
|
|
|
1,575
|
|
||||||||
MSR and other collateral
|
|
|
|
|
|
|
|
100
|
|
|
549
|
|
|
—
|
|
|
281
|
|
|
Successor
|
|
Predecessor
|
|||||||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
|||||||||||||||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023
(1)
|
$
|
950
|
|
|
$
|
—
|
|
|||||||||||||
$750 face value, 9.125% interest rate payable semi-annually, due July 2026
(1)
|
750
|
|
|
—
|
|
|||||||||||||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
(2)
|
592
|
|
|
595
|
|
|||||||||||||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
(2)
|
206
|
|
|
206
|
|
|||||||||||||||
$475 face value, 6.500% interest rate payable semi-annually, due August 2018
(3)
|
—
|
|
|
364
|
|
|||||||||||||||
$400 face value, 7.875% interest rate payable semi-annually, due October 2020
(4)
|
—
|
|
|
397
|
|
|||||||||||||||
$375 face value, 9.625% interest rate payable semi-annually, due May 2019
(4)
|
—
|
|
|
323
|
|
|||||||||||||||
Unsecured senior notes principal amount
|
2,498
|
|
|
1,885
|
|
|||||||||||||||
Unamortized debt issuance costs, net of premium, and discount
|
(41
|
)
|
|
(11
|
)
|
|||||||||||||||
Unsecured senior notes, net
|
$
|
2,457
|
|
|
$
|
1,874
|
|
Year Ending December 31,
|
|
Amount
|
||
2018
|
|
$
|
—
|
|
2019
|
|
—
|
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
Thereafter
|
|
1,700
|
|
|
Total
|
|
$
|
2,498
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||
|
|
|
|
|
|
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
Outstanding
|
||||||
Participating interest financing
(1)
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
6,021
|
|
|
$
|
7,111
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2016-2
|
June 2016
|
|
June 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
94
|
|
|||
Trust 2016-3
|
August 2016
|
|
August 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
138
|
|
|||
Trust 2017-1
|
May 2017
|
|
May 2027
|
|
A, M1, M2
|
|
193
|
|
|
151
|
|
|
213
|
|
|||
Trust 2017-2
|
September 2017
|
|
September 2027
|
|
A, M1, M2
|
|
308
|
|
|
258
|
|
|
365
|
|
|||
Trust 2018-1
|
March 2018
|
|
March 2028
|
|
A, M1, M2, M3, M4, M5
|
|
348
|
|
|
329
|
|
|
—
|
|
|||
Trust 2018-2
|
August 2018
|
|
August 2028
|
|
A, M1, M2, M3, M4, M5
|
|
298
|
|
|
292
|
|
|
—
|
|
|||
Nonrecourse debt - legacy assets
|
November 2009
|
|
October 2039
|
|
A
|
|
112
|
|
|
32
|
|
|
42
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
7,083
|
|
|
7,963
|
|
||||
Unamortized debt issuance costs, net of premium, and issuance discount
(2)
|
|
|
|
|
|
|
|
|
82
|
|
|
51
|
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
$
|
7,165
|
|
|
$
|
8,014
|
|
|
Successor
|
|
Predecessor
|
||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
Payables to servicing and subservicing investors
|
$
|
530
|
|
|
$
|
516
|
|
Loans subject to repurchase from Ginnie Mae
|
231
|
|
|
218
|
|
||
Accounts payable and other accrued liabilities
|
165
|
|
|
99
|
|
||
Payables to GSEs and securitized trusts
|
95
|
|
|
92
|
|
||
Accrued bonus and payroll
|
89
|
|
|
82
|
|
||
Accrued legal expenses
|
65
|
|
|
25
|
|
||
Payable to insurance carriers and insurance cancellation reserves
|
61
|
|
|
61
|
|
||
Accrued interest
|
61
|
|
|
62
|
|
||
MSR purchases payable including advances
|
21
|
|
|
10
|
|
||
Repurchase reserves
|
9
|
|
|
9
|
|
||
Taxes
|
8
|
|
|
36
|
|
||
Lease obligations
|
5
|
|
|
24
|
|
||
Derivative financial instruments at fair value
|
2
|
|
|
5
|
|
||
Total payables and accrued liabilities
|
$
|
1,342
|
|
|
$
|
1,239
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Repurchase Reserves
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Balance - beginning of period
|
$
|
9
|
|
|
|
$
|
9
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
18
|
|
Provisions
|
1
|
|
|
|
—
|
|
|
2
|
|
|
3
|
|
|
5
|
|
|||||
Releases
|
(1
|
)
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(6
|
)
|
|||||
Charge-offs
|
—
|
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|||||
Balance - end of period
|
$
|
9
|
|
|
|
$
|
9
|
|
|
$
|
15
|
|
|
$
|
9
|
|
|
$
|
15
|
|
|
Successor
|
|
Predecessor
|
||||||||||||
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
111
|
|
|
$
|
52
|
|
|
$
|
106
|
|
|
$
|
26
|
|
Reverse mortgage interests, net
|
—
|
|
|
7,140
|
|
|
—
|
|
|
7,981
|
|
||||
Advances and other receivables, net
|
682
|
|
|
—
|
|
|
896
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
121
|
|
|
—
|
|
|
138
|
|
|
—
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total assets
|
$
|
914
|
|
|
$
|
7,192
|
|
|
$
|
1,142
|
|
|
$
|
8,007
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities
(1)
|
$
|
563
|
|
|
$
|
—
|
|
|
$
|
749
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
1
|
|
|
1
|
|
|
2
|
|
|
1
|
|
||||
Participating interest financing
(2)
|
—
|
|
|
6,021
|
|
|
—
|
|
|
7,111
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
—
|
|
|
—
|
|
|
—
|
|
|
94
|
|
||||
Trust 2016-3
|
—
|
|
|
—
|
|
|
—
|
|
|
138
|
|
||||
Trust 2017-1
|
—
|
|
|
151
|
|
|
—
|
|
|
213
|
|
||||
Trust 2017-2
|
—
|
|
|
258
|
|
|
—
|
|
|
365
|
|
||||
Trust 2018-1
|
—
|
|
|
329
|
|
|
—
|
|
|
—
|
|
||||
Trust 2018-2
|
—
|
|
|
292
|
|
|
—
|
|
|
—
|
|
||||
Nonrecourse debt–legacy assets
|
32
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||
Total liabilities
|
$
|
596
|
|
|
$
|
7,052
|
|
|
$
|
793
|
|
|
$
|
7,922
|
|
|
Successor
|
|
Predecessor
|
||||
|
September 30, 2018
|
|
December 31, 2017
|
||||
Total collateral balances
|
$
|
1,940
|
|
|
$
|
2,291
|
|
Total certificate balances
|
$
|
1,884
|
|
|
$
|
2,129
|
|
|
Successor
|
|
Predecessor
|
||||
Principal Amount of Loans 60 Days or More Past Due
|
September 30, 2018
|
|
December 31, 2017
|
||||
Unconsolidated securitization trusts
|
$
|
317
|
|
|
$
|
448
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Net income (loss) attributable to Successor/Predecessor
|
$
|
1,020
|
|
|
|
$
|
(64
|
)
|
|
$
|
7
|
|
|
$
|
154
|
|
|
$
|
(11
|
)
|
Less: Undistributed earnings attributable to participating stockholders
|
9
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
1,011
|
|
|
|
$
|
(64
|
)
|
|
$
|
7
|
|
|
$
|
154
|
|
|
$
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
11.13
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.07
|
|
|
$
|
1.57
|
|
|
$
|
(0.11
|
)
|
Diluted
|
$
|
10.99
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
0.07
|
|
|
$
|
1.55
|
|
|
$
|
(0.11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
90,808
|
|
|
|
98,164
|
|
|
97,706
|
|
|
98,046
|
|
|
97,685
|
|
|||||
Dilutive effect of stock awards
|
345
|
|
|
|
—
|
|
|
988
|
|
|
1,091
|
|
|
—
|
|
|||||
Dilutive effect of participating securities
|
839
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Diluted
|
91,992
|
|
|
|
98,164
|
|
|
98,694
|
|
|
99,137
|
|
|
97,685
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
Income tax (benefit) expense
|
$
|
(979
|
)
|
|
|
$
|
(19
|
)
|
|
$
|
5
|
|
|
$
|
48
|
|
|
$
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective tax rate
|
(2,377.1
|
)%
|
|
|
23.1
|
%
|
|
37.1
|
%
|
|
23.8
|
%
|
|
29.1
|
%
|
1.
|
Taxable income in prior carryback year(s) if carryback is permitted under the tax law;
|
2.
|
Future reversals of existing taxable temporary differences;
|
3.
|
Tax-planning strategies; and
|
4.
|
Future taxable income exclusive of reversing temporary differences and carryforwards.
|
1.
|
A history of operating loss or tax credit carryforwards expiring unused
|
2.
|
Losses expected in early future years (by a presently profitable entity)
|
3.
|
Unsettled circumstances that, if unfavorably resolved, would adversely affect future operations and profit levels on a continuing basis in future years
|
4.
|
A carryback, carryforward period that is so brief it would limit realization of tax benefits if a significant deductible temporary difference is expected to reverse in a single year or the entity operates in a traditionally cyclical business.”
|
|
Successor
|
||||||||||||||
|
September 30, 2018
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,681.1
|
|
|
$
|
—
|
|
|
$
|
1,681.1
|
|
|
$
|
—
|
|
Mortgage loans held for investment
(1)
|
121.6
|
|
|
|
|
—
|
|
|
121.6
|
|
|||||
Mortgage servicing rights
(1)
|
3,485.4
|
|
|
—
|
|
|
—
|
|
|
3,485.4
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
57.8
|
|
|
—
|
|
|
57.8
|
|
|
—
|
|
||||
Forward MBS trades
|
12.2
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
||||
LPCs
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,359.8
|
|
|
$
|
—
|
|
|
$
|
1,752.8
|
|
|
$
|
3,607.0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
LPCs
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
(2)
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
26.3
|
|
|
—
|
|
|
—
|
|
|
26.3
|
|
||||
Excess spread financing
|
1,096.5
|
|
|
—
|
|
|
—
|
|
|
1,096.5
|
|
||||
Total liabilities
|
$
|
1,124.9
|
|
|
$
|
—
|
|
|
$
|
2.1
|
|
|
$
|
1,122.8
|
|
|
Predecessor
|
||||||||||||||
|
December 31, 2017
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,890.8
|
|
|
$
|
—
|
|
|
$
|
1,890.8
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
2,937.4
|
|
|
—
|
|
|
—
|
|
|
2,937.4
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
59.3
|
|
|
—
|
|
|
59.3
|
|
|
—
|
|
||||
Forward MBS trades
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
||||
LPCs
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Total assets
|
$
|
4,892.7
|
|
|
$
|
—
|
|
|
$
|
1,955.3
|
|
|
$
|
2,937.4
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
$
|
2.8
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
LPCs
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
||||
Excess spread financing
|
996.5
|
|
|
—
|
|
|
—
|
|
|
996.5
|
|
||||
Total liabilities
|
$
|
1,010.8
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
|
$
|
1,006.0
|
|
|
Successor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
For the Period August 1 to September 30, 2018
|
|
|
|
|
|
||||||
Balance - beginning of period
|
$
|
3,413
|
|
|
$
|
1,039
|
|
|
$
|
26
|
|
Total gains or losses included in earnings
|
20
|
|
|
26
|
|
|
—
|
|
|||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
||||||
Purchases
|
72
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
43
|
|
|
84
|
|
|
—
|
|
|||
Sales
|
(63
|
)
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
(21
|
)
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(31
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,485
|
|
|
$
|
1,097
|
|
|
$
|
26
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
For the Period January 1 to July 31, 2018
|
|
|
|
|
|
||||||
Balance - beginning of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
Total gains or losses included in earnings
|
166
|
|
|
81
|
|
|
16
|
|
|||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
||||||
Purchases
|
144
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
162
|
|
|
70
|
|
|
—
|
|
|||
Sales
|
4
|
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
(3
|
)
|
|
|
||||
Settlements
|
—
|
|
|
(105
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,413
|
|
|
$
|
1,039
|
|
|
$
|
26
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
Nine Months Ended September 30, 2017
|
|
|
|
|
|
||||||
Balance - beginning of period
|
$
|
3,160
|
|
|
$
|
1,214
|
|
|
$
|
27
|
|
Total gains or losses included in earnings
|
(361
|
)
|
|
—
|
|
|
(7
|
)
|
|||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
||||||
Purchases
|
30
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
151
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
(24
|
)
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
(9
|
)
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(159
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
2,956
|
|
|
$
|
1,046
|
|
|
$
|
20
|
|
|
Successor
|
||||||||||||||
|
September 30, 2018
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
198
|
|
|
$
|
198
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
332
|
|
|
332
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,174
|
|
|
—
|
|
|
—
|
|
|
1,174
|
|
||||
Reverse mortgage interests, net
|
8,886
|
|
|
—
|
|
|
—
|
|
|
8,980
|
|
||||
Mortgage loans held for sale
|
1,681
|
|
|
—
|
|
|
1,681
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
122
|
|
|
—
|
|
|
—
|
|
|
122
|
|
||||
Derivative financial instruments
|
72
|
|
|
—
|
|
|
72
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,457
|
|
|
2,583
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
596
|
|
|
—
|
|
|
596
|
|
|
—
|
|
||||
Warehouse facilities
|
2,888
|
|
|
—
|
|
|
2,888
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
26
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||
Excess spread financing
|
1,097
|
|
|
—
|
|
|
—
|
|
|
1,097
|
|
||||
Derivative financial instruments
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Participating interest financing
|
6,103
|
|
|
—
|
|
|
6,101
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-1
|
151
|
|
|
—
|
|
|
—
|
|
|
176
|
|
||||
Trust 2017-2
|
258
|
|
|
—
|
|
|
—
|
|
|
283
|
|
||||
Trust 2018-1
|
329
|
|
|
—
|
|
|
—
|
|
|
318
|
|
||||
Trust 2018-2
|
292
|
|
|
—
|
|
|
—
|
|
|
271
|
|
||||
Nonrecourse debt - legacy assets
|
32
|
|
|
—
|
|
|
—
|
|
|
31
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Predecessor
|
||||||||||||||
|
December 31, 2017
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
215
|
|
|
$
|
215
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
360
|
|
|
360
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,706
|
|
|
—
|
|
|
—
|
|
|
1,706
|
|
||||
Reverse mortgage interests, net
|
9,984
|
|
|
—
|
|
|
—
|
|
|
10,164
|
|
||||
Mortgage loans held for sale
|
1,891
|
|
|
—
|
|
|
1,891
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
139
|
|
|
—
|
|
|
—
|
|
|
139
|
|
||||
Derivative financial instruments
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
1,874
|
|
|
1,912
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
855
|
|
|
—
|
|
|
855
|
|
|
—
|
|
||||
Warehouse facilities
|
3,285
|
|
|
—
|
|
|
3,286
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Excess spread financing
|
996
|
|
|
—
|
|
|
—
|
|
|
996
|
|
||||
Derivative financial instruments
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Participating interest financing
|
7,167
|
|
|
—
|
|
|
7,353
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
94
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||
Trust 2016-3
|
138
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||
Trust 2017-1
|
213
|
|
|
—
|
|
|
—
|
|
|
225
|
|
||||
Trust 2017-2
|
365
|
|
|
—
|
|
|
—
|
|
|
371
|
|
||||
Nonrecourse debt - legacy assets
|
37
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
|
Successor
|
||||||||||||||||||||||||||
|
|
For the Period August 1 - September 30, 2018
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
183
|
|
|
$
|
10
|
|
|
$
|
73
|
|
|
$
|
(7
|
)
|
|
$
|
259
|
|
|
$
|
—
|
|
|
$
|
259
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
76
|
|
|
—
|
|
|
7
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||||
Total revenues
|
|
183
|
|
|
86
|
|
|
73
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
342
|
|
|||||||
Total Expenses
|
|
104
|
|
|
66
|
|
|
71
|
|
|
—
|
|
|
241
|
|
|
34
|
|
|
275
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
78
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
2
|
|
|
90
|
|
|||||||
Interest expense
|
|
(74
|
)
|
|
(10
|
)
|
|
(1
|
)
|
|
—
|
|
|
(85
|
)
|
|
(37
|
)
|
|
(122
|
)
|
|||||||
Other
|
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||||
Total Other Income (expenses), net
|
|
9
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
(35
|
)
|
|
(26
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
88
|
|
|
$
|
21
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
(69
|
)
|
|
$
|
41
|
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
15
|
|
Total assets
|
|
$
|
14,166
|
|
|
$
|
4,892
|
|
|
$
|
457
|
|
|
$
|
(3,532
|
)
|
|
$
|
15,983
|
|
|
$
|
1,745
|
|
|
$
|
17,728
|
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
|
For the Period July 1 - July 31, 2018
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
97
|
|
|
$
|
4
|
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
41
|
|
|
—
|
|
|
3
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||||
Total revenues
|
|
97
|
|
|
45
|
|
|
22
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||||
Total Expenses
|
|
126
|
|
|
34
|
|
|
19
|
|
|
—
|
|
|
179
|
|
|
63
|
|
|
242
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
41
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
1
|
|
|
48
|
|
|||||||
Interest expense
|
|
(35
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(12
|
)
|
|
(53
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Income (expenses), net
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(11
|
)
|
|
(5
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
(23
|
)
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
(74
|
)
|
|
$
|
(83
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Total assets
|
|
$
|
14,578
|
|
|
$
|
4,701
|
|
|
$
|
425
|
|
|
$
|
(3,591
|
)
|
|
$
|
16,113
|
|
|
$
|
913
|
|
|
$
|
17,026
|
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
191
|
|
|
$
|
16
|
|
|
$
|
65
|
|
|
$
|
(20
|
)
|
|
$
|
252
|
|
|
$
|
—
|
|
|
$
|
252
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
134
|
|
|
—
|
|
|
20
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|||||||
Total revenues
|
|
191
|
|
|
150
|
|
|
65
|
|
|
—
|
|
|
406
|
|
|
—
|
|
|
406
|
|
|||||||
Total Expenses
|
|
185
|
|
|
106
|
|
|
54
|
|
|
—
|
|
|
345
|
|
|
23
|
|
|
368
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
143
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
157
|
|
|
2
|
|
|
159
|
|
|||||||
Interest expense
|
|
(132
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(38
|
)
|
|
(183
|
)
|
|||||||
Other
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|||||||
Total Other Income (expenses), net
|
|
9
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
(36
|
)
|
|
(26
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
15
|
|
|
$
|
45
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
71
|
|
|
$
|
(59
|
)
|
|
$
|
12
|
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
15
|
|
Total assets
|
|
$
|
15,147
|
|
|
$
|
4,644
|
|
|
$
|
382
|
|
|
$
|
(2,948
|
)
|
|
$
|
17,225
|
|
|
$
|
779
|
|
|
$
|
18,004
|
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
|
For the Period January 1 - July 31, 2018
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
740
|
|
|
$
|
36
|
|
|
$
|
149
|
|
|
$
|
(25
|
)
|
|
$
|
900
|
|
|
$
|
1
|
|
|
$
|
901
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
270
|
|
|
—
|
|
|
25
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|||||||
Total revenues
|
|
740
|
|
|
306
|
|
|
149
|
|
|
—
|
|
|
1,195
|
|
|
1
|
|
|
1,196
|
|
|||||||
Total expenses
|
|
474
|
|
|
245
|
|
|
123
|
|
|
—
|
|
|
842
|
|
|
103
|
|
|
945
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
288
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
326
|
|
|
7
|
|
|
333
|
|
|||||||
Interest expense
|
|
(268
|
)
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
|
(83
|
)
|
|
(388
|
)
|
|||||||
Other
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total other income (expenses), net
|
|
19
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
29
|
|
|
(78
|
)
|
|
(49
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
285
|
|
|
$
|
62
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
(180
|
)
|
|
$
|
202
|
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
4
|
|
|
$
|
33
|
|
Total assets
|
|
$
|
14,578
|
|
|
$
|
4,701
|
|
|
$
|
425
|
|
|
$
|
(3,591
|
)
|
|
$
|
16,113
|
|
|
$
|
913
|
|
|
$
|
17,026
|
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
|
Nine Months Ended September 30, 2017
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
537
|
|
|
$
|
47
|
|
|
$
|
226
|
|
|
$
|
(63
|
)
|
|
$
|
747
|
|
|
$
|
1
|
|
|
$
|
748
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
402
|
|
|
—
|
|
|
63
|
|
|
465
|
|
|
—
|
|
|
465
|
|
|||||||
Total revenues
|
|
537
|
|
|
449
|
|
|
226
|
|
|
—
|
|
|
1,212
|
|
|
1
|
|
|
1,213
|
|
|||||||
Total expenses
|
|
513
|
|
|
326
|
|
|
193
|
|
|
—
|
|
|
1,032
|
|
|
72
|
|
|
1,104
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
386
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
425
|
|
|
12
|
|
|
437
|
|
|||||||
Interest expense
|
|
(409
|
)
|
|
(39
|
)
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
(116
|
)
|
|
(564
|
)
|
|||||||
Other
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
6
|
|
|
(2
|
)
|
|
4
|
|
|||||||
Total other income (expenses), net
|
|
(25
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(17
|
)
|
|
(106
|
)
|
|
(123
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
(1
|
)
|
|
$
|
123
|
|
|
$
|
41
|
|
|
$
|
—
|
|
|
$
|
163
|
|
|
$
|
(177
|
)
|
|
$
|
(14
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
16
|
|
|
$
|
8
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
34
|
|
|
$
|
10
|
|
|
$
|
44
|
|
Total assets
|
|
$
|
15,147
|
|
|
$
|
4,644
|
|
|
$
|
382
|
|
|
$
|
(2,948
|
)
|
|
$
|
17,225
|
|
|
$
|
779
|
|
|
$
|
18,004
|
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
5
|
|
|
$
|
164
|
|
|
$
|
1
|
|
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
198
|
|
Restricted cash
|
—
|
|
|
168
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
332
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,462
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
3,500
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,174
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,174
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
7,764
|
|
|
—
|
|
|
1,122
|
|
|
—
|
|
|
8,886
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,681
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,681
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
122
|
|
||||||
Property and equipment, net
|
—
|
|
|
85
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
102
|
|
||||||
Deferred tax asset
|
990
|
|
|
(49
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
934
|
|
||||||
Other assets
|
1
|
|
|
671
|
|
|
197
|
|
|
616
|
|
|
(686
|
)
|
|
799
|
|
||||||
Investment in subsidiaries
|
2,916
|
|
|
586
|
|
|
—
|
|
|
—
|
|
|
(3,502
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
3,912
|
|
|
$
|
15,707
|
|
|
$
|
198
|
|
|
$
|
2,099
|
|
|
$
|
(4,188
|
)
|
|
$
|
17,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
1,658
|
|
|
$
|
799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,457
|
|
Advance facilities, net
|
—
|
|
|
33
|
|
|
—
|
|
|
563
|
|
|
—
|
|
|
596
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
2,888
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,888
|
|
||||||
Payables and accrued liabilities
|
32
|
|
|
1,244
|
|
|
2
|
|
|
64
|
|
|
—
|
|
|
1,342
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,103
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
1,123
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
79
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
79
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
6,103
|
|
|
—
|
|
|
1,062
|
|
|
—
|
|
|
7,165
|
|
||||||
Payables to affiliates
|
144
|
|
|
542
|
|
|
—
|
|
|
—
|
|
|
(686
|
)
|
|
—
|
|
||||||
Total liabilities
|
1,834
|
|
|
12,791
|
|
|
2
|
|
|
1,709
|
|
|
(686
|
)
|
|
15,650
|
|
||||||
Total stockholders' equity
|
2,078
|
|
|
2,916
|
|
|
196
|
|
|
390
|
|
|
(3,502
|
)
|
|
2,078
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
3,912
|
|
|
$
|
15,707
|
|
|
$
|
198
|
|
|
$
|
2,099
|
|
|
$
|
(4,188
|
)
|
|
$
|
17,728
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE PERIOD AUGUST 1 TO SEPTEMBER 30, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
183
|
|
|
$
|
4
|
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
259
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
||||||
Total revenues
|
—
|
|
|
266
|
|
|
4
|
|
|
72
|
|
|
—
|
|
|
342
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
107
|
|
|
1
|
|
|
31
|
|
|
—
|
|
|
139
|
|
||||||
General and administrative
|
1
|
|
|
91
|
|
|
1
|
|
|
43
|
|
|
—
|
|
|
136
|
|
||||||
Total expenses
|
1
|
|
|
198
|
|
|
2
|
|
|
74
|
|
|
—
|
|
|
275
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
80
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
90
|
|
||||||
Interest expense
|
(26
|
)
|
|
(87
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(122
|
)
|
||||||
Other income (expenses)
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
56
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
31
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(57
|
)
|
|
(26
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
30
|
|
|
67
|
|
|
2
|
|
|
(1
|
)
|
|
(57
|
)
|
|
41
|
|
||||||
Less: Income tax expense (benefit)
|
(990
|
)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(979
|
)
|
||||||
Net income (loss)
|
1,020
|
|
|
56
|
|
|
2
|
|
|
(1
|
)
|
|
(57
|
)
|
|
1,020
|
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
1,020
|
|
|
$
|
56
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(57
|
)
|
|
$
|
1,020
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE PERIOD JULY 1 TO JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
95
|
|
|
$
|
3
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Total revenues
|
—
|
|
|
139
|
|
|
3
|
|
|
22
|
|
|
—
|
|
|
164
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
59
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
69
|
|
||||||
General and administrative
|
27
|
|
|
136
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
173
|
|
||||||
Total expenses
|
27
|
|
|
195
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
242
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
41
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
48
|
|
||||||
Interest expense
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(53
|
)
|
||||||
Other income (expenses)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gain (loss) from subsidiaries
|
(37
|
)
|
|
7
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(37
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
30
|
|
|
(5
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
(64
|
)
|
|
(57
|
)
|
|
3
|
|
|
5
|
|
|
30
|
|
|
(83
|
)
|
||||||
Less: Income tax expense (benefit)
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(19
|
)
|
||||||
Net income (loss)
|
(64
|
)
|
|
(37
|
)
|
|
3
|
|
|
4
|
|
|
30
|
|
|
(64
|
)
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
(64
|
)
|
|
$
|
(37
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
30
|
|
|
$
|
(64
|
)
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
732
|
|
|
$
|
16
|
|
|
$
|
153
|
|
|
$
|
—
|
|
|
$
|
901
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
295
|
|
||||||
Total revenues
|
—
|
|
|
1,027
|
|
|
16
|
|
|
153
|
|
|
—
|
|
|
1,196
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
359
|
|
|
3
|
|
|
64
|
|
|
—
|
|
|
426
|
|
||||||
General and administrative
|
27
|
|
|
427
|
|
|
1
|
|
|
64
|
|
|
—
|
|
|
519
|
|
||||||
Total expenses
|
27
|
|
|
786
|
|
|
4
|
|
|
128
|
|
|
—
|
|
|
945
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
299
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
333
|
|
||||||
Interest expense
|
—
|
|
|
(364
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(388
|
)
|
||||||
Other income (expense)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
181
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
181
|
|
|
(12
|
)
|
|
—
|
|
|
19
|
|
|
(237
|
)
|
|
(49
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
154
|
|
|
229
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
202
|
|
||||||
Less: income tax expense (benefit)
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Net income (loss)
|
154
|
|
|
181
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
154
|
|
||||||
Less: net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
154
|
|
|
$
|
181
|
|
|
$
|
12
|
|
|
$
|
44
|
|
|
$
|
(237
|
)
|
|
$
|
154
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD AUGUST 1 TO SEPTEMBER 30, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
1,020
|
|
|
$
|
56
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(57
|
)
|
|
$
|
1,020
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred tax
|
(990
|
)
|
|
52
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(931
|
)
|
||||||
(Gain) loss from subsidiaries
|
(56
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||||
Amortization of premiums, net of discount accretion
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
13
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
15
|
|
||||||
Share-based compensation
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(3,458
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,458
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
3,537
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
3,546
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
425
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
442
|
|
||||||
Other assets
|
—
|
|
|
25
|
|
|
(3
|
)
|
|
(37
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Payables and accrued liabilities
|
19
|
|
|
(179
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
||||||
Net cash attributable to operating activities
|
(6
|
)
|
|
185
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
176
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD AUGUST 1 TO SEPTEMBER 30, 2018
(Continued)
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(14
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(50
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
—
|
|
|
186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
186
|
|
||||||
(Decrease) increase in advance facilities
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
63
|
|
|
—
|
|
|
46
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(403
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Redemption and repayment of unsecured senior notes
|
—
|
|
|
(1,030
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,030
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(1,219
|
)
|
||||||
Net decrease in cash, cash equivalents, and restricted cash
|
(6
|
)
|
|
(1,026
|
)
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(1,093
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
11
|
|
|
1,358
|
|
|
1
|
|
|
253
|
|
|
—
|
|
|
1,623
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
5
|
|
|
$
|
332
|
|
|
$
|
1
|
|
|
$
|
192
|
|
|
$
|
—
|
|
|
$
|
530
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
154
|
|
|
$
|
181
|
|
|
$
|
12
|
|
|
$
|
44
|
|
|
$
|
(237
|
)
|
|
$
|
154
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain) loss from subsidiaries
|
(181
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
237
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
||||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
MSL related increased obligation
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Provision for servicing reserves
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(177
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
11
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
8
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
26
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
33
|
|
||||||
Share-based compensation
|
—
|
|
|
16
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
17
|
|
||||||
Other (gain) loss
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(544
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(544
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(12,328
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,328
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
13,381
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13,392
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
1,866
|
|
|
—
|
|
|
(265
|
)
|
|
—
|
|
|
1,601
|
|
||||||
Other assets
|
9
|
|
|
(293
|
)
|
|
(12
|
)
|
|
255
|
|
|
—
|
|
|
(41
|
)
|
||||||
Payables and accrued liabilities
|
27
|
|
|
128
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
151
|
|
||||||
Net cash attributable to operating activities
|
9
|
|
|
2,247
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
2,294
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(40
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(127
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(134
|
)
|
||||||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(163
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(162
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Decrease in warehouse facilities
|
—
|
|
|
(585
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(585
|
)
|
||||||
Decrease in advance facilities
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(305
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
759
|
|
|
—
|
|
|
759
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
—
|
|
|
(448
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(1,599
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,599
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
(9
|
)
|
|
(2,156
|
)
|
|
—
|
|
|
54
|
|
|
—
|
|
|
(2,111
|
)
|
||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
93
|
|
|
—
|
|
|
21
|
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
—
|
|
|
423
|
|
|
1
|
|
|
151
|
|
|
—
|
|
|
575
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
—
|
|
|
$
|
351
|
|
|
$
|
1
|
|
|
$
|
244
|
|
|
$
|
—
|
|
|
$
|
596
|
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer)
|
|
Non-Guarantor
(Subsidiaries of Issuer)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
1
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
215
|
|
Restricted cash
|
—
|
|
|
228
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
360
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
2,910
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
2,941
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,706
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
9,110
|
|
|
—
|
|
|
874
|
|
|
—
|
|
|
9,984
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,891
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,891
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
139
|
|
||||||
Property and equipment, net
|
—
|
|
|
102
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
121
|
|
||||||
Other assets
|
—
|
|
|
585
|
|
|
182
|
|
|
779
|
|
|
(867
|
)
|
|
679
|
|
||||||
Investment in subsidiaries
|
1,846
|
|
|
522
|
|
|
—
|
|
|
—
|
|
|
(2,368
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,846
|
|
|
$
|
17,250
|
|
|
$
|
183
|
|
|
$
|
1,992
|
|
|
$
|
(3,235
|
)
|
|
$
|
18,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
—
|
|
|
$
|
1,874
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,874
|
|
Advance facilities, net
|
—
|
|
|
106
|
|
|
—
|
|
|
749
|
|
|
—
|
|
|
855
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
3,285
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,285
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,202
|
|
|
1
|
|
|
36
|
|
|
—
|
|
|
1,239
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
987
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
1,006
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
7,167
|
|
|
—
|
|
|
847
|
|
|
—
|
|
|
8,014
|
|
||||||
Payables to affiliates
|
124
|
|
|
742
|
|
|
—
|
|
|
1
|
|
|
(867
|
)
|
|
—
|
|
||||||
Total liabilities
|
124
|
|
|
15,404
|
|
|
1
|
|
|
1,652
|
|
|
(867
|
)
|
|
16,314
|
|
||||||
Total stockholders' equity
|
1,722
|
|
|
1,846
|
|
|
182
|
|
|
340
|
|
|
(2,368
|
)
|
|
1,722
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,846
|
|
|
$
|
17,250
|
|
|
$
|
183
|
|
|
$
|
1,992
|
|
|
$
|
(3,235
|
)
|
|
$
|
18,036
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
181
|
|
|
$
|
7
|
|
|
$
|
64
|
|
|
$
|
—
|
|
|
$
|
252
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
153
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
154
|
|
||||||
Total revenues
|
—
|
|
|
334
|
|
|
7
|
|
|
65
|
|
|
—
|
|
|
406
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
153
|
|
|
1
|
|
|
29
|
|
|
—
|
|
|
183
|
|
||||||
General and administrative
|
—
|
|
|
154
|
|
|
4
|
|
|
27
|
|
|
—
|
|
|
185
|
|
||||||
Total expenses
|
—
|
|
|
307
|
|
|
5
|
|
|
56
|
|
|
—
|
|
|
368
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
147
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
159
|
|
||||||
Interest expense
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(183
|
)
|
||||||
Other expenses
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
||||||
Gain (loss) from subsidiaries
|
7
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
7
|
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(26
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
7
|
|
|
12
|
|
|
2
|
|
|
9
|
|
|
(18
|
)
|
|
12
|
|
||||||
Less: Income tax benefit
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Net income (loss)
|
7
|
|
|
7
|
|
|
2
|
|
|
9
|
|
|
(18
|
)
|
|
7
|
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
2
|
|
|
$
|
9
|
|
|
$
|
(18
|
)
|
|
$
|
7
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
497
|
|
|
$
|
21
|
|
|
$
|
230
|
|
|
$
|
—
|
|
|
$
|
748
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
464
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
465
|
|
||||||
Total Revenues
|
—
|
|
|
961
|
|
|
21
|
|
|
231
|
|
|
—
|
|
|
1,213
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
451
|
|
|
3
|
|
|
103
|
|
|
—
|
|
|
557
|
|
||||||
General and administrative
|
—
|
|
|
435
|
|
|
10
|
|
|
102
|
|
|
—
|
|
|
547
|
|
||||||
Total expenses
|
—
|
|
|
886
|
|
|
13
|
|
|
205
|
|
|
—
|
|
|
1,104
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
398
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
437
|
|
||||||
Interest expense
|
—
|
|
|
(522
|
)
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
(564
|
)
|
||||||
Other expense
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
4
|
|
||||||
Gain (loss) from subsidiaries
|
(11
|
)
|
|
40
|
|
|
—
|
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
(11
|
)
|
|
(89
|
)
|
|
—
|
|
|
6
|
|
|
(29
|
)
|
|
(123
|
)
|
||||||
Income (loss) before taxes
|
(11
|
)
|
|
(14
|
)
|
|
8
|
|
|
32
|
|
|
(29
|
)
|
|
(14
|
)
|
||||||
Income tax benefit
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Net income (loss)
|
(11
|
)
|
|
(10
|
)
|
|
8
|
|
|
32
|
|
|
(29
|
)
|
|
(10
|
)
|
||||||
Less: net income attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
(11
|
)
|
|
$
|
(11
|
)
|
|
$
|
8
|
|
|
$
|
32
|
|
|
$
|
(29
|
)
|
|
$
|
(11
|
)
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2017
|
||||||||||||||||||||||||
|
|
Predecessor
|
||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
|
$
|
(11
|
)
|
|
$
|
(11
|
)
|
|
$
|
8
|
|
|
$
|
32
|
|
|
$
|
(29
|
)
|
|
$
|
(11
|
)
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to non-controlling interests
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
(Gain) loss from subsidiaries
|
|
11
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
|
—
|
|
|
(464
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(465
|
)
|
||||||
Reverse mortgage loan interest income
|
|
—
|
|
|
(370
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(370
|
)
|
||||||
(Gain) loss on sale of assets
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Provision for servicing reserves
|
|
—
|
|
|
97
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
97
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
|
—
|
|
|
362
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
362
|
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
|
—
|
|
|
55
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
63
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
|
—
|
|
|
33
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
44
|
|
||||||
Share-based compensation
|
|
—
|
|
|
9
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
13
|
|
||||||
Other loss
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
|
—
|
|
|
(943
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(943
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
|
—
|
|
|
(14,002
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,002
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
|
—
|
|
|
15,459
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
15,472
|
|
||||||
Excess tax benefit from share-based compensation
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables
|
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||||
Reverse mortgage interests
|
|
—
|
|
|
1,451
|
|
|
—
|
|
|
(225
|
)
|
|
—
|
|
|
1,226
|
|
||||||
Other assets
|
|
4
|
|
|
(99
|
)
|
|
(9
|
)
|
|
87
|
|
|
—
|
|
|
(17
|
)
|
||||||
Payables and accrued liabilities
|
|
—
|
|
|
(273
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(284
|
)
|
||||||
Net cash attributable to operating activities
|
|
4
|
|
|
1,336
|
|
|
(1
|
)
|
|
(93
|
)
|
|
—
|
|
|
1,246
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2017
(Continued)
|
||||||||||||||||||||||||
|
|
Predecessor
|
||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(34
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(28
|
)
|
||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Proceeds on sale of assets
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
|
—
|
|
|
351
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
||||||
Decrease in advance facilities
|
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
(205
|
)
|
|
—
|
|
|
(298
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
707
|
|
|
—
|
|
|
706
|
|
||||||
Repayment of HECM securitizations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(484
|
)
|
|
—
|
|
|
(484
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
|
—
|
|
|
437
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
437
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
|
—
|
|
|
(1,928
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,928
|
)
|
||||||
Repayment of excess spread financing
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Settlement of excess spread financing
|
|
—
|
|
|
(159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(12
|
)
|
||||||
Repurchase of unsecured senior notes
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(122
|
)
|
||||||
Surrender of shares relating to stock vesting
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Debt financing costs
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||||
Dividends to non-controlling interests
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Net cash attributable to financing activities
|
|
(4
|
)
|
|
(1,540
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(1,538
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
—
|
|
|
(200
|
)
|
|
(1
|
)
|
|
(96
|
)
|
|
—
|
|
|
(297
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
|
—
|
|
|
612
|
|
|
2
|
|
|
263
|
|
|
—
|
|
|
877
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
|
$
|
—
|
|
|
$
|
412
|
|
|
$
|
1
|
|
|
$
|
167
|
|
|
$
|
—
|
|
|
$
|
580
|
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to maintain or grow our originations volume;
|
•
|
our ability to recapture voluntary prepayments related to our existing servicing portfolio;
|
•
|
our shift in the mix of our servicing portfolio to subservicing, which is highly concentrated;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
our ability to obtain sufficient capital to operate our business;
|
•
|
changes in prevailing interest rates;
|
•
|
our ability to finance and recover costs of our reverse servicing operations;
|
•
|
our ability to successfully implement our strategic initiatives;
|
•
|
our ability to realize anticipated benefits of the Merger and other acquisitions, including Assurant;
|
•
|
our ability to use net operating loss carryforwards and other tax attributes;
|
•
|
changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and Ginnie Mae;
|
•
|
Xome's ability to compete in highly competitive markets;
|
•
|
our ability to pay down debt;
|
•
|
legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs;
|
•
|
our ability to prevent cyber intrusions and mitigate cyber risks; and
|
•
|
loss of our licenses.
|
•
|
Boarded
$30,182
UPB comprised of
$9,389
UPB of forward MSR and
$20,793
UPB of subservicing
|
•
|
Provided
9,546
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership
|
•
|
Improved delinquency rate, measured as loans that are 60 or more days behind in payment, to
2.5%
, the lowest in our history
|
•
|
Funded
15,459
loans totaling
$3,459
which included
$1,721
related to retaining customers in our servicing portfolio
|
•
|
Achieved recapture rate of
22.8%
|
•
|
Sold
1,730
properties and completed
$276,937
of Xome service orders
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 1. Consolidated Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(2)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues - operational
(1)
|
$
|
318
|
|
|
|
$
|
139
|
|
|
$
|
457
|
|
|
$
|
450
|
|
|
$
|
7
|
|
|
2
|
%
|
Revenues - Mark-to-market
(1)
|
24
|
|
|
|
25
|
|
|
49
|
|
|
(44
|
)
|
|
93
|
|
|
(211
|
)%
|
|||||
Total revenues
|
342
|
|
|
|
164
|
|
|
506
|
|
|
406
|
|
|
100
|
|
|
25
|
%
|
|||||
Expenses
|
275
|
|
|
|
242
|
|
|
517
|
|
|
368
|
|
|
149
|
|
|
40
|
%
|
|||||
Other income (expenses), net
|
(26
|
)
|
|
|
(5
|
)
|
|
(31
|
)
|
|
(26
|
)
|
|
(5
|
)
|
|
19
|
%
|
|||||
Income (loss) before income tax expense
|
41
|
|
|
|
(83
|
)
|
|
(42
|
)
|
|
12
|
|
|
(54
|
)
|
|
(450
|
)%
|
|||||
Less: Income tax (benefit) expense
|
(979
|
)
|
|
|
(19
|
)
|
|
(998
|
)
|
|
5
|
|
|
(1,003
|
)
|
|
(20,060
|
)%
|
|||||
Net income (loss)
|
1,020
|
|
|
|
(64
|
)
|
|
956
|
|
|
7
|
|
|
949
|
|
|
13,557
|
%
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||
Net income (loss) attributable to Mr. Cooper Group Inc.
|
$
|
1,020
|
|
|
|
$
|
(64
|
)
|
|
$
|
956
|
|
|
$
|
7
|
|
|
$
|
949
|
|
|
13,557
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effective tax rate
(3)
|
(2,377.1
|
)%
|
|
|
23.1
|
%
|
|
|
|
37.1
|
%
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income tax expense by operating and non-operating segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing
|
$
|
88
|
|
|
|
$
|
(23
|
)
|
|
$
|
65
|
|
|
$
|
15
|
|
|
$
|
50
|
|
|
333
|
%
|
Originations
|
21
|
|
|
|
11
|
|
|
32
|
|
|
45
|
|
|
(13
|
)
|
|
(29
|
)%
|
|||||
Xome
|
1
|
|
|
|
3
|
|
|
4
|
|
|
11
|
|
|
(7
|
)
|
|
(64
|
)%
|
|||||
Corporate and other
|
(69
|
)
|
|
|
(74
|
)
|
|
(143
|
)
|
|
(59
|
)
|
|
(84
|
)
|
|
142
|
%
|
|||||
Consolidated income (loss) before income tax expense
|
$
|
41
|
|
|
|
$
|
(83
|
)
|
|
$
|
(42
|
)
|
|
$
|
12
|
|
|
$
|
(54
|
)
|
|
(450
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 1.1. Consolidated Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(2)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues - operational
(1)
|
$
|
318
|
|
|
|
$
|
1,000
|
|
|
$
|
1,318
|
|
|
$
|
1,373
|
|
|
$
|
(55
|
)
|
|
(4
|
)%
|
Revenues - Mark-to-market
(1)
|
24
|
|
|
|
196
|
|
|
220
|
|
|
(160
|
)
|
|
380
|
|
|
(238
|
)%
|
|||||
Total revenues
|
342
|
|
|
|
1,196
|
|
|
1,538
|
|
|
1,213
|
|
|
325
|
|
|
27
|
%
|
|||||
Expenses
|
275
|
|
|
|
945
|
|
|
1,220
|
|
|
1,104
|
|
|
116
|
|
|
11
|
%
|
|||||
Other income (expenses), net
|
(26
|
)
|
|
|
(49
|
)
|
|
(75
|
)
|
|
(123
|
)
|
|
48
|
|
|
(39
|
)%
|
|||||
Income (loss) before income tax expense
|
41
|
|
|
|
202
|
|
|
243
|
|
|
(14
|
)
|
|
257
|
|
|
(1,836
|
)%
|
|||||
Less: Income tax (benefit) expense
|
(979
|
)
|
|
|
48
|
|
|
(931
|
)
|
|
(4
|
)
|
|
(927
|
)
|
|
23,175
|
%
|
|||||
Net income (loss)
|
1,020
|
|
|
|
154
|
|
|
1,174
|
|
|
(10
|
)
|
|
1,184
|
|
|
(11,840
|
)%
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100
|
)%
|
|||||
Net income (loss) attributable to Mr. Cooper Group Inc.
|
$
|
1,020
|
|
|
|
$
|
154
|
|
|
$
|
1,174
|
|
|
$
|
(11
|
)
|
|
$
|
1,185
|
|
|
(10,773
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effective tax rate
(3)
|
(2,377.1
|
)%
|
|
|
23.8
|
%
|
|
|
|
29.1
|
%
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income tax expense by operating and non-operating segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing
|
$
|
88
|
|
|
|
$
|
285
|
|
|
$
|
373
|
|
|
$
|
(1
|
)
|
|
$
|
374
|
|
|
(37,400
|
)%
|
Originations
|
21
|
|
|
|
62
|
|
|
83
|
|
|
123
|
|
|
(40
|
)
|
|
(33
|
)%
|
|||||
Xome
|
1
|
|
|
|
35
|
|
|
36
|
|
|
41
|
|
|
(5
|
)
|
|
(12
|
)%
|
|||||
Corporate and other
|
(69
|
)
|
|
|
(180
|
)
|
|
(249
|
)
|
|
(177
|
)
|
|
(72
|
)
|
|
41
|
%
|
|||||
Consolidated income (loss) before income tax expense
|
$
|
41
|
|
|
|
$
|
202
|
|
|
$
|
243
|
|
|
$
|
(14
|
)
|
|
$
|
257
|
|
|
(1,836
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 2. Servicing Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(2)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational
(1)
|
$
|
190
|
|
|
|
$
|
88
|
|
|
$
|
278
|
|
|
$
|
295
|
|
|
$
|
(17
|
)
|
|
(6
|
)%
|
Amortization
|
(31
|
)
|
|
|
(16
|
)
|
|
(47
|
)
|
|
(60
|
)
|
|
(13
|
)
|
|
(22
|
)%
|
|||||
Mark-to-market
(1)
|
24
|
|
|
|
25
|
|
|
49
|
|
|
(44
|
)
|
|
93
|
|
|
211
|
%
|
|||||
Total revenues
|
183
|
|
|
|
97
|
|
|
280
|
|
|
191
|
|
|
89
|
|
|
47
|
%
|
|||||
Expenses
|
104
|
|
|
|
126
|
|
|
230
|
|
|
185
|
|
|
45
|
|
|
24
|
%
|
|||||
Total other income (expenses), net
|
9
|
|
|
|
6
|
|
|
15
|
|
|
9
|
|
|
6
|
|
|
67
|
%
|
|||||
Income before income tax expense
|
$
|
88
|
|
|
|
$
|
(23
|
)
|
|
$
|
65
|
|
|
$
|
15
|
|
|
$
|
50
|
|
|
333
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 2.1. Servicing Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(2)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational
(1)
|
$
|
190
|
|
|
|
$
|
656
|
|
|
$
|
846
|
|
|
$
|
884
|
|
|
$
|
(38
|
)
|
|
(4
|
)%
|
Amortization
|
(31
|
)
|
|
|
(112
|
)
|
|
(143
|
)
|
|
(187
|
)
|
|
(44
|
)
|
|
(24
|
)%
|
|||||
Mark-to-market
(1)
|
24
|
|
|
|
196
|
|
|
220
|
|
|
(160
|
)
|
|
380
|
|
|
238
|
%
|
|||||
Total revenues
|
183
|
|
|
|
740
|
|
|
923
|
|
|
537
|
|
|
386
|
|
|
72
|
%
|
|||||
Expenses
|
104
|
|
|
|
474
|
|
|
578
|
|
|
513
|
|
|
65
|
|
|
13
|
%
|
|||||
Total other income (expenses), net
|
9
|
|
|
|
19
|
|
|
28
|
|
|
(25
|
)
|
|
53
|
|
|
(212
|
)%
|
|||||
Income (loss) before income tax expense
|
$
|
88
|
|
|
|
$
|
285
|
|
|
$
|
373
|
|
|
$
|
(1
|
)
|
|
$
|
374
|
|
|
(37,400
|
)%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Balance - beginning of period
|
$
|
465,819
|
|
|
|
$
|
465,398
|
|
|
$
|
461,873
|
|
|
$
|
473,256
|
|
|
$
|
434,295
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Originations
|
3,448
|
|
|
|
1,694
|
|
|
5,019
|
|
|
12,327
|
|
|
14,173
|
|
|||||
Acquisitions
|
26,734
|
|
|
|
5,183
|
|
|
52,780
|
|
|
25,987
|
|
|
113,606
|
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Dispositions
|
(574
|
)
|
|
|
(84
|
)
|
|
(910
|
)
|
|
(1,877
|
)
|
|
(3,015
|
)
|
|||||
Principal reductions and other
|
(3,137
|
)
|
|
|
(1,581
|
)
|
|
(4,957
|
)
|
|
(11,240
|
)
|
|
(12,931
|
)
|
|||||
Voluntary reductions
(1)
|
(7,869
|
)
|
|
|
(4,343
|
)
|
|
(15,659
|
)
|
|
(29,172
|
)
|
|
(43,589
|
)
|
|||||
Involuntary reductions
(2)
|
(769
|
)
|
|
|
(418
|
)
|
|
(1,606
|
)
|
|
(3,241
|
)
|
|
(5,699
|
)
|
|||||
Net changes in loans serviced by others
|
(60
|
)
|
|
|
(30
|
)
|
|
(111
|
)
|
|
(221
|
)
|
|
(411
|
)
|
|||||
Balance - end of period
|
$
|
483,592
|
|
|
|
$
|
465,819
|
|
|
$
|
496,429
|
|
|
$
|
465,819
|
|
|
$
|
496,429
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Table 4. Servicing - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
Amt
|
|
bps
(2)
|
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|||||||||||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Base servicing fees
|
$
|
142
|
|
|
17
|
|
|
|
$
|
68
|
|
|
16
|
|
|
$
|
210
|
|
|
17
|
|
|
$
|
223
|
|
|
17
|
|
|
$
|
(13
|
)
|
|
—
|
|
|
(6
|
)%
|
|
—
|
%
|
Modification fees
(3)
|
5
|
|
|
1
|
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
7
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
(14
|
)%
|
|
—
|
%
|
|||||
Incentive fees
(3)
|
2
|
|
|
—
|
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
11
|
|
|
1
|
|
|
(7
|
)
|
|
(1
|
)
|
|
(64
|
)%
|
|
(100
|
)%
|
|||||
Late payment fees
(3)
|
11
|
|
|
1
|
|
|
|
6
|
|
|
2
|
|
|
17
|
|
|
1
|
|
|
19
|
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
(11
|
)%
|
|
—
|
%
|
|||||
Other ancillary revenues
(3)(4)
|
16
|
|
|
2
|
|
|
|
10
|
|
|
2
|
|
|
26
|
|
|
2
|
|
|
38
|
|
|
3
|
|
|
(12
|
)
|
|
(1
|
)
|
|
(32
|
)%
|
|
(33
|
)%
|
|||||
Total forward MSR operational revenue
|
176
|
|
|
21
|
|
|
|
87
|
|
|
21
|
|
|
263
|
|
|
21
|
|
|
298
|
|
|
23
|
|
|
(35
|
)
|
|
(2
|
)
|
|
(12
|
)%
|
|
(9
|
)%
|
|||||
Base subservicing fees and other subservicing revenue
(3)
|
27
|
|
|
4
|
|
|
|
13
|
|
|
3
|
|
|
40
|
|
|
3
|
|
|
34
|
|
|
2
|
|
|
6
|
|
|
1
|
|
|
18
|
%
|
|
50
|
%
|
|||||
Reverse servicing fees
|
13
|
|
|
2
|
|
|
|
4
|
|
|
1
|
|
|
17
|
|
|
1
|
|
|
16
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
6
|
%
|
|
—
|
%
|
|||||
Total servicing fee revenue
|
216
|
|
|
27
|
|
|
|
104
|
|
|
25
|
|
|
320
|
|
|
25
|
|
|
348
|
|
|
26
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(8
|
)%
|
|
(4
|
)%
|
|||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Forward MSR amortization
|
(53
|
)
|
|
(6
|
)
|
|
|
(27
|
)
|
|
(6
|
)
|
|
(80
|
)
|
|
(7
|
)
|
|
(100
|
)
|
|
(8
|
)
|
|
(20
|
)
|
|
(1
|
)
|
|
(20
|
)%
|
|
(13
|
)%
|
|||||
Excess spread accretion
|
22
|
|
|
2
|
|
|
|
11
|
|
|
3
|
|
|
33
|
|
|
3
|
|
|
41
|
|
|
3
|
|
|
(8
|
)
|
|
—
|
|
|
(20
|
)%
|
|
—
|
%
|
|||||
Reverse MSR amortization
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(100
|
)%
|
|
—
|
%
|
|||||
Total amortization
|
(31
|
)
|
|
(4
|
)
|
|
|
(16
|
)
|
|
(3
|
)
|
|
(47
|
)
|
|
(4
|
)
|
|
(60
|
)
|
|
(5
|
)
|
|
(13
|
)
|
|
(1
|
)
|
|
(22
|
)%
|
|
(20
|
)%
|
|||||
MSR financing liability costs
|
(8
|
)
|
|
(1
|
)
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
(17
|
)
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
(29
|
)%
|
|
—
|
%
|
|||||
Excess spread costs - principal
|
(18
|
)
|
|
(2
|
)
|
|
|
(12
|
)
|
|
(3
|
)
|
|
(30
|
)
|
|
(2
|
)
|
|
(36
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(17
|
)%
|
|
(33
|
)%
|
|||||
Total operational revenue
|
159
|
|
|
20
|
|
|
|
72
|
|
|
18
|
|
|
231
|
|
|
18
|
|
|
235
|
|
|
17
|
|
|
(4
|
)
|
|
(3
|
)
|
|
(2
|
)%
|
|
(18
|
)%
|
|||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
MSR MTM
(4)(5)
|
49
|
|
|
6
|
|
|
|
44
|
|
|
11
|
|
|
93
|
|
|
8
|
|
|
(52
|
)
|
|
(4
|
)
|
|
145
|
|
|
12
|
|
|
(279
|
)%
|
|
(300
|
)%
|
|||||
Excess spread / financing MTM
|
(25
|
)
|
|
(3
|
)
|
|
|
(19
|
)
|
|
(5
|
)
|
|
(44
|
)
|
|
(4
|
)
|
|
8
|
|
|
1
|
|
|
(52
|
)
|
|
(5
|
)
|
|
(650
|
)%
|
|
(500
|
)%
|
|||||
Total MTM adjustments
|
24
|
|
|
3
|
|
|
|
25
|
|
|
6
|
|
|
49
|
|
|
4
|
|
|
(44
|
)
|
|
(3
|
)
|
|
93
|
|
|
7
|
|
|
(211
|
)%
|
|
(233
|
)%
|
|||||
Total revenues - Servicing
|
$
|
183
|
|
|
23
|
|
|
|
$
|
97
|
|
|
24
|
|
|
$
|
280
|
|
|
22
|
|
|
$
|
191
|
|
|
14
|
|
|
$
|
89
|
|
|
4
|
|
|
47
|
%
|
|
29
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Table 4.1. Servicing - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
Amt
|
|
bps
(2)
|
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|
Amt
|
|
bps
(2)
|
|||||||||||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Base servicing fees
|
$
|
142
|
|
|
17
|
|
|
|
$
|
501
|
|
|
17
|
|
|
$
|
643
|
|
|
17
|
|
|
$
|
687
|
|
|
19
|
|
|
$
|
(44
|
)
|
|
(2
|
)
|
|
(6
|
)%
|
|
(11
|
)%
|
Modification fees
(3)
|
5
|
|
|
1
|
|
|
|
21
|
|
|
1
|
|
|
26
|
|
|
1
|
|
|
35
|
|
|
1
|
|
|
(9
|
)
|
|
—
|
|
|
(26
|
)%
|
|
—
|
%
|
|||||
Incentive fees
(3)
|
2
|
|
|
—
|
|
|
|
13
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
24
|
|
|
1
|
|
|
(9
|
)
|
|
(1
|
)
|
|
(38
|
)%
|
|
(100
|
)%
|
|||||
Late payment fees
(3)
|
11
|
|
|
1
|
|
|
|
45
|
|
|
2
|
|
|
56
|
|
|
2
|
|
|
63
|
|
|
2
|
|
|
(7
|
)
|
|
—
|
|
|
(11
|
)%
|
|
—
|
%
|
|||||
Other ancillary revenues
(3)(4)
|
16
|
|
|
2
|
|
|
|
63
|
|
|
2
|
|
|
79
|
|
|
2
|
|
|
120
|
|
|
3
|
|
|
(41
|
)
|
|
(1
|
)
|
|
(34
|
)%
|
|
(33
|
)%
|
|||||
Total forward MSR operational revenue
|
176
|
|
|
21
|
|
|
|
643
|
|
|
22
|
|
|
819
|
|
|
22
|
|
|
929
|
|
|
26
|
|
|
(110
|
)
|
|
(4
|
)
|
|
(12
|
)%
|
|
(15
|
)%
|
|||||
Base subservicing fees and other subservicing revenue
(3)
|
27
|
|
|
4
|
|
|
|
87
|
|
|
2
|
|
|
114
|
|
|
3
|
|
|
86
|
|
|
2
|
|
|
28
|
|
|
1
|
|
|
33
|
%
|
|
50
|
%
|
|||||
Reverse servicing fees
|
13
|
|
|
2
|
|
|
|
37
|
|
|
1
|
|
|
50
|
|
|
1
|
|
|
43
|
|
|
1
|
|
|
7
|
|
|
—
|
|
|
16
|
%
|
|
—
|
%
|
|||||
Total servicing fee revenue
|
216
|
|
|
27
|
|
|
|
767
|
|
|
25
|
|
|
983
|
|
|
26
|
|
|
1,058
|
|
|
29
|
|
|
(75
|
)
|
|
(3
|
)
|
|
(7
|
)%
|
|
(10
|
)%
|
|||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Forward MSR amortization
|
(53
|
)
|
|
(6
|
)
|
|
|
(190
|
)
|
|
(7
|
)
|
|
(243
|
)
|
|
(7
|
)
|
|
(307
|
)
|
|
(8
|
)
|
|
(64
|
)
|
|
(1
|
)
|
|
(21
|
)%
|
|
(13
|
)%
|
|||||
Excess spread accretion
|
22
|
|
|
2
|
|
|
|
78
|
|
|
3
|
|
|
100
|
|
|
3
|
|
|
123
|
|
|
3
|
|
|
(23
|
)
|
|
—
|
|
|
(19
|
)%
|
|
—
|
%
|
|||||
Reverse MSR amortization
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(100
|
)%
|
|
—
|
%
|
|||||
Total amortization
|
(31
|
)
|
|
(4
|
)
|
|
|
(112
|
)
|
|
(4
|
)
|
|
(143
|
)
|
|
(4
|
)
|
|
(187
|
)
|
|
(5
|
)
|
|
(44
|
)
|
|
(1
|
)
|
|
(24
|
)%
|
|
(20
|
)%
|
|||||
MSR financing liability costs
|
(8
|
)
|
|
(1
|
)
|
|
|
(33
|
)
|
|
(1
|
)
|
|
(41
|
)
|
|
(1
|
)
|
|
(56
|
)
|
|
(2
|
)
|
|
(15
|
)
|
|
(1
|
)
|
|
(27
|
)%
|
|
(50
|
)%
|
|||||
Excess spread costs - principal
|
(18
|
)
|
|
(2
|
)
|
|
|
(78
|
)
|
|
(3
|
)
|
|
(96
|
)
|
|
(2
|
)
|
|
(118
|
)
|
|
(3
|
)
|
|
(22
|
)
|
|
(1
|
)
|
|
(19
|
)%
|
|
(33
|
)%
|
|||||
Total operational revenue
|
159
|
|
|
20
|
|
|
|
544
|
|
|
17
|
|
|
703
|
|
|
19
|
|
|
697
|
|
|
19
|
|
|
6
|
|
|
(6
|
)
|
|
1
|
%
|
|
32
|
%
|
|||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
MSR MTM
(4)(5)
|
49
|
|
|
6
|
|
|
|
295
|
|
|
10
|
|
|
344
|
|
|
9
|
|
|
(166
|
)
|
|
(4
|
)
|
|
510
|
|
|
13
|
|
|
(307
|
)%
|
|
(325
|
)%
|
|||||
Excess spread / financing MTM
|
(25
|
)
|
|
(3
|
)
|
|
|
(99
|
)
|
|
(3
|
)
|
|
(124
|
)
|
|
(3
|
)
|
|
6
|
|
|
—
|
|
|
(130
|
)
|
|
(3
|
)
|
|
(2,167
|
)%
|
|
—
|
%
|
|||||
Total MTM adjustments
|
24
|
|
|
3
|
|
|
|
196
|
|
|
7
|
|
|
220
|
|
|
6
|
|
|
(160
|
)
|
|
(4
|
)
|
|
380
|
|
|
10
|
|
|
(238
|
)%
|
|
(250
|
)%
|
|||||
Total revenues - Servicing
|
$
|
183
|
|
|
23
|
|
|
|
$
|
740
|
|
|
24
|
|
|
$
|
923
|
|
|
25
|
|
|
$
|
537
|
|
|
15
|
|
|
$
|
386
|
|
|
4
|
|
|
72
|
%
|
|
27
|
%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Table 5. Servicing Portfolio - Unpaid Principal Balances
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Average UPB:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forward MSRs
|
$
|
278,362
|
|
|
|
$
|
279,605
|
|
|
$
|
293,310
|
|
|
$
|
279,520
|
|
|
$
|
302,112
|
|
Subservicing and other
(1)
|
192,163
|
|
|
|
185,871
|
|
|
191,655
|
|
|
187,407
|
|
|
155,839
|
|
|||||
Reverse portfolio
|
30,888
|
|
|
|
31,753
|
|
|
36,004
|
|
|
33,380
|
|
|
37,094
|
|
|||||
Total average UPB
|
$
|
501,413
|
|
|
|
$
|
497,229
|
|
|
$
|
520,969
|
|
|
$
|
500,307
|
|
|
$
|
495,045
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||
|
|
|
|
|
|
|
|
September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||
Ending UPB:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forward MSRs
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
|
|
|
|
$
|
205,201
|
|
|
$
|
210,957
|
|
||||||
Non-agency
|
|
|
|
|
|
|
|
69,285
|
|
|
77,493
|
|
||||||||
Total Forward MSRs
|
|
|
|
|
|
|
|
274,486
|
|
|
288,450
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
|
|
|
|
195,489
|
|
|
200,001
|
|
||||||||
Non-agency
|
|
|
|
|
|
|
|
13,617
|
|
|
7,978
|
|
||||||||
Total subservicing and other
|
|
|
|
|
|
|
|
209,106
|
|
|
207,979
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
|
|
|
|
|
|
|
75
|
|
|
9,666
|
|
||||||||
MSL
|
|
|
|
|
|
|
|
21,703
|
|
|
16,383
|
|
||||||||
Securitized loans
|
|
|
|
|
|
|
|
8,882
|
|
|
10,363
|
|
||||||||
Total reverse portfolio serviced
|
|
|
|
|
|
|
|
30,660
|
|
|
36,412
|
|
||||||||
Total ending UPB
|
|
|
|
|
|
|
|
$
|
514,252
|
|
|
$
|
532,841
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
||||||
Table 6. Forward Loan Modifications and Workout Units
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
Amount Change
|
|
% Change
|
||||||
|
|
|
|
|
|
|||||||||||||
HAMP modifications
|
3
|
|
|
|
7
|
|
|
10
|
|
|
515
|
|
|
(505
|
)
|
|
(98
|
)%
|
Non-HAMP modifications
|
6,730
|
|
|
|
3,446
|
|
|
10,176
|
|
|
5,916
|
|
|
4,260
|
|
|
72
|
%
|
Workouts
|
2,813
|
|
|
|
1,449
|
|
|
4,262
|
|
|
6,119
|
|
|
(1,857
|
)
|
|
(30
|
)%
|
Total modification and workout units
|
9,546
|
|
|
|
4,902
|
|
|
14,448
|
|
|
12,550
|
|
|
1,898
|
|
|
15
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
||||||
Table 6.1. Forward Loan Modifications and Workout Units
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
Amount Change
|
|
% Change
|
||||||
|
|
|
|
|
|
|||||||||||||
HAMP modifications
|
3
|
|
|
|
38
|
|
|
41
|
|
|
7,090
|
|
|
(7,049
|
)
|
|
(99
|
)%
|
Non-HAMP modifications
|
6,730
|
|
|
|
16,828
|
|
|
23,558
|
|
|
17,236
|
|
|
6,322
|
|
|
37
|
%
|
Workouts
|
2,813
|
|
|
|
22,700
|
|
|
25,513
|
|
|
20,998
|
|
|
4,515
|
|
|
22
|
%
|
Total modification and workout units
|
9,546
|
|
|
|
39,566
|
|
|
49,112
|
|
|
45,324
|
|
|
3,788
|
|
|
8
|
%
|
|
Successor
|
|
Predecessor
|
||||
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio
(1)
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
Loan count
|
3,009,439
|
|
|
3,042,795
|
|
||
Average loan amount
(2)
|
$
|
159,768
|
|
|
$
|
163,214
|
|
Average coupon - credit sensitive
(3)
|
4.8
|
%
|
|
4.7
|
%
|
||
Average coupon - interest sensitive
(3)
|
4.2
|
%
|
|
4.2
|
%
|
||
60+ delinquent (% of loans)
(4)
|
2.5
|
%
|
|
3.2
|
%
|
||
90+ delinquent (% of loans)
(4)
|
2.1
|
%
|
|
2.8
|
%
|
||
120+ delinquent (% of loans)
(4)
|
1.9
|
%
|
|
2.6
|
%
|
||
Total prepayment speed (12-month constant prepayment rate)
|
11.1
|
%
|
|
13.8
|
%
|
Table 8. Servicer Ratings
|
Fitch
|
|
Moody's
|
|
S&P
|
Rating date
|
August 2017
|
|
June 2017
|
|
January &
February 2018 |
|
|
|
|
|
|
Residential
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
Master Servicer
|
RMS2+
|
|
SQ2-
|
|
Above Average
|
Special Servicer
|
RSS2-
|
|
Not Rated
|
|
Above Average
|
Subprime Servicer
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
|
|
|
|
|
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
|||||
Moody's Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)
|
|||||
S&P's Rating Scale of Strong to Weak
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Table 9. Servicing - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||||||||||
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||
Salaries, wages and benefits
|
$
|
52
|
|
|
6
|
|
|
$
|
25
|
|
|
6
|
|
$
|
77
|
|
|
6
|
|
$
|
76
|
|
|
3
|
|
$
|
1
|
|
|
3
|
|
1
|
%
|
|
100%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing support fees
|
25
|
|
|
3
|
|
|
9
|
|
|
2
|
|
34
|
|
|
3
|
|
28
|
|
|
2
|
|
6
|
|
|
1
|
|
21
|
%
|
|
50%
|
|||||
Corporate and other general and administrative expenses
|
21
|
|
|
2
|
|
|
17
|
|
|
4
|
|
38
|
|
|
3
|
|
31
|
|
|
1
|
|
7
|
|
|
2
|
|
23
|
%
|
|
200%
|
|||||
Foreclosure and other liquidation related expenses
|
2
|
|
|
—
|
|
|
73
|
|
|
18
|
|
75
|
|
|
6
|
|
44
|
|
|
2
|
|
31
|
|
|
4
|
|
70
|
%
|
|
200%
|
|||||
Depreciation and amortization
|
4
|
|
|
—
|
|
|
2
|
|
|
1
|
|
6
|
|
|
—
|
|
6
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
%
|
|
—%
|
|||||
Total general and administrative expenses
|
52
|
|
|
5
|
|
|
101
|
|
|
25
|
|
153
|
|
|
12
|
|
109
|
|
|
5
|
|
44
|
|
|
7
|
|
40
|
%
|
|
140%
|
|||||
Total expenses - Servicing
|
$
|
104
|
|
|
11
|
|
|
$
|
126
|
|
|
31
|
|
$
|
230
|
|
|
18
|
|
$
|
185
|
|
|
8
|
|
$
|
45
|
|
|
10
|
|
24
|
%
|
|
125%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Table 9.1. Servicing - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||
Salaries, wages and benefits
|
$
|
52
|
|
|
6
|
|
|
$
|
175
|
|
|
6
|
|
$
|
227
|
|
|
6
|
|
$
|
218
|
|
|
3
|
|
$
|
9
|
|
|
3
|
|
4
|
%
|
|
100%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing support fees
|
25
|
|
|
3
|
|
|
71
|
|
|
2
|
|
96
|
|
|
2
|
|
93
|
|
|
1
|
|
3
|
|
|
1
|
|
3
|
%
|
|
100%
|
|||||
Corporate and other general and administrative expenses
|
21
|
|
|
2
|
|
|
80
|
|
|
3
|
|
101
|
|
|
3
|
|
103
|
|
|
1
|
|
(2
|
)
|
|
2
|
|
(2
|
)%
|
|
200%
|
|||||
Foreclosure and other liquidation related expenses
|
2
|
|
|
—
|
|
|
133
|
|
|
4
|
|
135
|
|
|
4
|
|
83
|
|
|
1
|
|
52
|
|
|
3
|
|
63
|
%
|
|
300%
|
|||||
Depreciation and amortization
|
4
|
|
|
—
|
|
|
15
|
|
|
—
|
|
19
|
|
|
—
|
|
16
|
|
|
—
|
|
3
|
|
|
—
|
|
19
|
%
|
|
—%
|
|||||
Total general and administrative expenses
|
52
|
|
|
5
|
|
|
299
|
|
|
9
|
|
351
|
|
|
9
|
|
295
|
|
|
3
|
|
56
|
|
|
6
|
|
19
|
%
|
|
200%
|
|||||
Total expenses - Servicing
|
$
|
104
|
|
|
11
|
|
|
$
|
474
|
|
|
15
|
|
$
|
578
|
|
|
15
|
|
$
|
513
|
|
|
6
|
|
$
|
65
|
|
|
9
|
|
13
|
%
|
|
150%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Table 10. Servicing - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
Change
|
|
% Change
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||||||||
Reverse mortgage interest income
|
$
|
72
|
|
|
8
|
|
|
|
$
|
38
|
|
|
9
|
|
|
$
|
110
|
|
|
9
|
|
|
$
|
137
|
|
|
11
|
|
|
$
|
(27
|
)
|
|
(2
|
)
|
|
(20
|
)%
|
|
(18
|
)%
|
Other interest income
|
6
|
|
|
1
|
|
|
|
3
|
|
|
1
|
|
|
9
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
3
|
|
|
1
|
|
|
50
|
%
|
|
100
|
%
|
|||||
Interest income
|
78
|
|
|
9
|
|
|
|
41
|
|
|
10
|
|
|
119
|
|
|
10
|
|
|
143
|
|
|
11
|
|
|
(24
|
)
|
|
(1
|
)
|
|
(17
|
)%
|
|
(9
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reverse mortgage interest expense
|
(63
|
)
|
|
(7
|
)
|
|
|
(30
|
)
|
|
(7
|
)
|
|
(93
|
)
|
|
(7
|
)
|
|
(97
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)%
|
|
—
|
%
|
|||||
Advance interest expense
|
(5
|
)
|
|
(1
|
)
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(13
|
)%
|
|
—
|
%
|
|||||
Other interest expense
|
(6
|
)
|
|
(1
|
)
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
(27
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(1
|
)
|
|
(67
|
)%
|
|
(50
|
)%
|
|||||
Interest expense
|
(74
|
)
|
|
(9
|
)
|
|
|
(35
|
)
|
|
(9
|
)
|
|
(109
|
)
|
|
(9
|
)
|
|
(132
|
)
|
|
(10
|
)
|
|
(23
|
)
|
|
(1
|
)
|
|
(17
|
)%
|
|
(10
|
)%
|
|||||
Other income (expense)
|
5
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
350
|
%
|
|
—
|
%
|
|||||
Total other income (expenses), net - Servicing
|
$
|
9
|
|
|
1
|
|
|
|
$
|
6
|
|
|
1
|
|
|
$
|
15
|
|
|
1
|
|
|
$
|
9
|
|
|
1
|
|
|
$
|
6
|
|
|
—
|
|
|
67
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average cost - advance facilities
|
4.0
|
%
|
|
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Table 10.1. Servicing - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
Change
|
|
% Change
|
|||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||||||||
Reverse mortgage interest income
|
$
|
72
|
|
|
8
|
|
|
|
$
|
274
|
|
|
9
|
|
|
$
|
346
|
|
|
9
|
|
|
$
|
370
|
|
|
10
|
|
|
$
|
(24
|
)
|
|
(1
|
)
|
|
(6
|
)%
|
|
(10
|
)%
|
Other interest income
|
6
|
|
|
1
|
|
|
|
14
|
|
|
1
|
|
|
20
|
|
|
1
|
|
|
16
|
|
|
—
|
|
|
4
|
|
|
1
|
|
|
25
|
%
|
|
100
|
%
|
|||||
Interest income
|
78
|
|
|
9
|
|
|
|
288
|
|
|
10
|
|
|
366
|
|
|
10
|
|
|
386
|
|
|
10
|
|
|
(20
|
)
|
|
—
|
|
|
(5
|
)%
|
|
—
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reverse mortgage interest expense
|
(63
|
)
|
|
(7
|
)
|
|
|
(221
|
)
|
|
(7
|
)
|
|
(284
|
)
|
|
(7
|
)
|
|
(295
|
)
|
|
(8
|
)
|
|
(11
|
)
|
|
(1
|
)
|
|
(4
|
)%
|
|
(13
|
)%
|
|||||
Advance interest expense
|
(5
|
)
|
|
(1
|
)
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(24
|
)
|
|
(1
|
)
|
|
(26
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
(8
|
)%
|
|
—
|
%
|
|||||
Other interest expense
|
(6
|
)
|
|
(1
|
)
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(34
|
)
|
|
(1
|
)
|
|
(88
|
)
|
|
(2
|
)
|
|
(54
|
)
|
|
(1
|
)
|
|
(61
|
)%
|
|
(50
|
)%
|
|||||
Interest expense
|
(74
|
)
|
|
(9
|
)
|
|
|
(268
|
)
|
|
(9
|
)
|
|
(342
|
)
|
|
(9
|
)
|
|
(409
|
)
|
|
(11
|
)
|
|
(67
|
)
|
|
(2
|
)
|
|
(16
|
)%
|
|
(18
|
)%
|
|||||
Other income (expense)
|
5
|
|
|
1
|
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
300
|
%
|
|
—
|
%
|
|||||
Total other income (expenses), net - Servicing
|
$
|
9
|
|
|
1
|
|
|
|
$
|
19
|
|
|
1
|
|
|
$
|
28
|
|
|
1
|
|
|
$
|
(25
|
)
|
|
(1
|
)
|
|
$
|
53
|
|
|
2
|
|
|
212
|
%
|
|
200
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average cost - advance facilities
|
4.0
|
%
|
|
|
|
|
3.9
|
%
|
|
|
|
|
|
|
|
3.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
|
8.8
|
%
|
|
|
|
|
|
|
|
8.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||||||||||
Table 11. Serviced Portfolios and Related Liabilities
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
||||||||||
Forward MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
205,201
|
|
|
$
|
2,795
|
|
|
4.5
|
%
|
|
$
|
202,868
|
|
|
$
|
2,251
|
|
|
4.5
|
%
|
Non-agency
|
69,285
|
|
|
690
|
|
|
4.7
|
%
|
|
78,512
|
|
|
686
|
|
|
4.6
|
%
|
||||
Total Forward MSRs - fair value
|
274,486
|
|
|
3,485
|
|
|
4.5
|
%
|
|
281,380
|
|
|
2,937
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
195,489
|
|
|
N/A
|
|
|
N/A
|
|
|
183,519
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
13,617
|
|
|
N/A
|
|
|
N/A
|
|
|
8,357
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
209,106
|
|
|
N/A
|
|
|
N/A
|
|
|
191,876
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
75
|
|
|
15
|
|
|
N/A
|
|
|
9,395
|
|
|
4
|
|
|
N/A
|
|
||||
MSL
(2)
|
21,703
|
|
|
(79
|
)
|
|
N/A
|
|
|
15,729
|
|
|
(41
|
)
|
|
N/A
|
|
||||
Securitized loans
|
8,882
|
|
|
8,886
|
|
|
N/A
|
|
|
9,988
|
|
|
9,984
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
30,660
|
|
|
8,822
|
|
|
N/A
|
|
|
35,112
|
|
|
9,947
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
514,252
|
|
|
$
|
12,307
|
|
|
N/A
|
|
|
$
|
508,368
|
|
|
$
|
12,884
|
|
|
N/A
|
|
|
Successor
|
|
Predecessor
|
||||||||||||||||
Table 12. Fair Value MSR Valuation
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
||||||||
MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
$
|
144,697
|
|
|
$
|
1,652
|
|
|
114
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
|
94
|
Interest sensitive - agency
|
129,789
|
|
|
1,833
|
|
|
141
|
|
113,775
|
|
|
1,365
|
|
|
120
|
||||
Total MSRs - fair value
|
$
|
274,486
|
|
|
$
|
3,485
|
|
|
127
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
|
104
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Table 13. MSRs - Fair Value, Roll Forward
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Fair value - beginning of period
|
$
|
3,413
|
|
|
|
$
|
3,356
|
|
|
$
|
3,046
|
|
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Servicing retained from mortgage loans sold
|
43
|
|
|
|
22
|
|
|
48
|
|
|
162
|
|
|
151
|
|
|||||
Purchases of servicing rights
|
72
|
|
|
|
12
|
|
|
17
|
|
|
144
|
|
|
30
|
|
|||||
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales of servicing rights
(1)
|
(63
|
)
|
|
|
—
|
|
|
(26
|
)
|
|
4
|
|
|
(24
|
)
|
|||||
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
14
|
|
|
|
11
|
|
|
(12
|
)
|
|
203
|
|
|
(21
|
)
|
|||||
Interest sensitive
|
51
|
|
|
|
35
|
|
|
(27
|
)
|
|
127
|
|
|
(92
|
)
|
|||||
Other changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Scheduled principal payments
|
(20
|
)
|
|
|
(6
|
)
|
|
(20
|
)
|
|
(45
|
)
|
|
(62
|
)
|
|||||
Disposition of negative MSRs and other
(2)
|
7
|
|
|
|
3
|
|
|
11
|
|
|
27
|
|
|
59
|
|
|||||
Prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Voluntary prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
(14
|
)
|
|
|
(10
|
)
|
|
(42
|
)
|
|
(71
|
)
|
|
(131
|
)
|
|||||
Interest sensitive
|
(11
|
)
|
|
|
(8
|
)
|
|
(29
|
)
|
|
(54
|
)
|
|
(79
|
)
|
|||||
Involuntary prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
(3
|
)
|
|
|
(1
|
)
|
|
(6
|
)
|
|
(12
|
)
|
|
(22
|
)
|
|||||
Interest sensitive
|
(4
|
)
|
|
|
(1
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
(13
|
)
|
|||||
Fair value - end of period
|
$
|
3,485
|
|
|
|
$
|
3,413
|
|
|
$
|
2,956
|
|
|
$
|
3,413
|
|
|
$
|
2,956
|
|
|
Successor
|
|
Predecessor
|
||
Table 14. MSRs - Fair Value
|
September 30,
|
||||
|
2018
|
|
2017
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
11.2
|
%
|
|
11.4
|
%
|
Weighted average prepayment speeds
|
11.2
|
%
|
|
15.4
|
%
|
Weighted average life of loans
|
6.7 years
|
|
|
5.6 years
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
8.9
|
%
|
|
11.3
|
%
|
Weighted average life of loans
|
7.4 years
|
|
|
6.5 years
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Table 15. Excess Spread Financing
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Fair value - beginning of period
|
$
|
1,039
|
|
|
|
$
|
1,047
|
|
|
$
|
1,121
|
|
|
$
|
996
|
|
|
$
|
1,214
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
New financings
|
84
|
|
|
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of debt
|
(21
|
)
|
|
|
(1
|
)
|
|
(9
|
)
|
|
(3
|
)
|
|
(9
|
)
|
|||||
Settlements of principal balances
|
(31
|
)
|
|
|
(14
|
)
|
|
(51
|
)
|
|
(105
|
)
|
|
(159
|
)
|
|||||
Fair value changes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Sensitive
|
23
|
|
|
|
7
|
|
|
(12
|
)
|
|
73
|
|
|
5
|
|
|||||
Interest Sensitive
|
3
|
|
|
|
—
|
|
|
(3
|
)
|
|
8
|
|
|
(5
|
)
|
|||||
Fair value - end of period
|
$
|
1,097
|
|
|
|
$
|
1,039
|
|
|
$
|
1,046
|
|
|
$
|
1,039
|
|
|
$
|
1,046
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||
|
|
|
|
|
|
|
|
September 30,
|
||||||||||||
Key Assumptions
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||
Weighted average prepayment speeds
|
|
|
|
|
|
|
|
10.6
|
%
|
|
13.9
|
%
|
||||||||
Weighted average life of loans
|
|
|
|
|
|
|
|
6.7 years
|
|
|
5.9 years
|
|
||||||||
Discount rate
|
|
|
|
|
|
|
|
10.6
|
%
|
|
10.8
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Sensitive
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage prepayment speeds
|
|
|
|
|
|
|
|
11.0
|
%
|
|
14.4
|
%
|
||||||||
Average life of mortgage loans
|
|
|
|
|
|
|
|
6.6 years
|
|
|
5.8 years
|
|
||||||||
Discount rate
|
|
|
|
|
|
|
|
11.1
|
%
|
|
11.1
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Sensitive
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage prepayment speeds
|
|
|
|
|
|
|
|
9.3
|
%
|
|
11.6
|
%
|
||||||||
Average life of mortgage loans
|
|
|
|
|
|
|
|
7.1 years
|
|
|
6.1 years
|
|
||||||||
Discount rate
|
|
|
|
|
|
|
|
9.1
|
%
|
|
8.9
|
%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Table 16. MSRs Financing Liability - Rollforward
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Three Months Ended September 30, 2017
|
|
For the Period January 1 - July 31, 2018
|
|
Nine Months Ended September 30, 2017
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
Fair value - beginning of period
|
$
|
26
|
|
|
|
$
|
16
|
|
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
27
|
|
Changes in fair value:
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in valuation inputs or assumptions used in the valuation model
|
3
|
|
|
|
11
|
|
|
6
|
|
|
22
|
|
|
(9
|
)
|
|||||
Other changes in fair value
|
(3
|
)
|
|
|
(1
|
)
|
|
1
|
|
|
(6
|
)
|
|
2
|
|
|||||
Fair value - end of period
|
$
|
26
|
|
|
|
$
|
26
|
|
|
$
|
20
|
|
|
$
|
26
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||
|
|
|
|
|
|
|
|
September 30,
|
||||||||||||
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||||||||||
Weighted Average Assumptions
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advance financing rates
|
|
|
|
|
|
|
|
4.9
|
%
|
|
3.5
|
%
|
||||||||
Annual advance recovery rates
|
|
|
|
|
|
|
|
18.2
|
%
|
|
23.3
|
%
|
|
Successor
|
|
Predecessor
|
||||
Table 17. Leveraged Portfolio Characteristics
|
September 30,
|
||||||
|
2018
|
|
2017
|
||||
Owned forward servicing portfolio - unencumbered
|
$
|
90,504
|
|
|
$
|
80,920
|
|
Owned forward servicing portfolio - encumbered
|
183,982
|
|
|
207,530
|
|
||
Subserviced forward servicing portfolio and other
|
209,106
|
|
|
207,979
|
|
||
Total unpaid principal balance
|
$
|
483,592
|
|
|
$
|
496,429
|
|
|
Successor
|
|
Predecessor
|
||||
Table 18. Reverse - Mortgage Portfolio Characteristics
|
September 30, 2018
|
|
December 31, 2017
|
||||
Loan count
|
200,904
|
|
|
212,415
|
|
||
Ending unpaid principal balance
|
$
|
30,660
|
|
|
$
|
35,112
|
|
Average loan amount
(1)
|
$
|
152,608
|
|
|
$
|
165,299
|
|
Average coupon
|
4.3
|
%
|
|
3.8
|
%
|
||
Average borrower age
|
79
|
|
|
79
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 19. Originations - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
150
|
|
|
$
|
(19
|
)
|
|
(13
|
)%
|
Expenses
|
66
|
|
|
|
34
|
|
|
100
|
|
|
106
|
|
|
(6
|
)
|
|
(6
|
)%
|
|||||
Other income (expenses), net
|
1
|
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||||
Income before income tax expense
|
$
|
21
|
|
|
|
$
|
11
|
|
|
$
|
32
|
|
|
$
|
45
|
|
|
$
|
(13
|
)
|
|
(29
|
)%
|
Income before taxes margin
|
24.4
|
%
|
|
|
24.4
|
%
|
|
24.4
|
%
|
|
30.0
|
%
|
|
(5.6
|
)%
|
|
(18.7
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenue
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
150
|
|
|
$
|
(19
|
)
|
|
(13
|
)%
|
Pull through adjusted lock volume
|
$
|
3,421
|
|
|
|
$
|
1,606
|
|
|
$
|
5,027
|
|
|
$
|
4,930
|
|
|
$
|
97
|
|
|
2
|
%
|
Revenue basis points
(2)
|
2.51
|
%
|
|
|
2.80
|
%
|
|
2.61
|
%
|
|
3.04
|
%
|
|
(19.59
|
)%
|
|
(644.41
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
$
|
66
|
|
|
|
$
|
34
|
|
|
$
|
100
|
|
|
$
|
106
|
|
|
$
|
(6
|
)
|
|
(6
|
)%
|
Funded volume
|
$
|
3,459
|
|
|
|
$
|
1,688
|
|
|
$
|
5,147
|
|
|
$
|
5,102
|
|
|
$
|
45
|
|
|
1
|
%
|
Expenses basis points
(3)
|
1.91
|
%
|
|
|
2.01
|
%
|
|
1.94
|
%
|
|
2.08
|
%
|
|
(13.33
|
)%
|
|
(640.87
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Margin
|
0.60
|
%
|
|
|
0.79
|
%
|
|
0.67
|
%
|
|
0.96
|
%
|
|
(6.26
|
)%
|
|
(652.08
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 19.1 Originations - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
449
|
|
|
$
|
(57
|
)
|
|
(13
|
)%
|
Expenses
|
66
|
|
|
|
245
|
|
|
311
|
|
|
326
|
|
|
(15
|
)
|
|
(5
|
)%
|
|||||
Other income (expenses), net
|
1
|
|
|
|
1
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
100
|
%
|
|||||
Income before income tax expense
|
$
|
21
|
|
|
|
$
|
62
|
|
|
$
|
83
|
|
|
$
|
123
|
|
|
$
|
(40
|
)
|
|
(33
|
)%
|
Income before taxes margin
|
24.4
|
%
|
|
|
20.3
|
%
|
|
21.2
|
%
|
|
27.4
|
%
|
|
(6.2
|
)%
|
|
(22.6
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenue
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
449
|
|
|
$
|
(57
|
)
|
|
(13
|
)%
|
Pull through adjusted lock volume
|
$
|
3,421
|
|
|
|
$
|
11,907
|
|
|
$
|
15,328
|
|
|
$
|
12,935
|
|
|
$
|
2,393
|
|
|
19
|
%
|
Revenue basis points
(2)
|
2.51
|
%
|
|
|
2.57
|
%
|
|
2.56
|
%
|
|
3.47
|
%
|
|
(2.38
|
)%
|
|
(68.59
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
$
|
66
|
|
|
|
$
|
245
|
|
|
$
|
311
|
|
|
$
|
326
|
|
|
$
|
(15
|
)
|
|
(5
|
)%
|
Funded volume
|
$
|
3,459
|
|
|
|
$
|
12,317
|
|
|
$
|
15,776
|
|
|
$
|
13,988
|
|
|
$
|
1,788
|
|
|
13
|
%
|
Expenses basis points
(3)
|
1.91
|
%
|
|
|
1.99
|
%
|
|
1.97
|
%
|
|
2.33
|
%
|
|
(0.84
|
)%
|
|
(36.05
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Margin
|
0.60
|
%
|
|
|
0.58
|
%
|
|
0.59
|
%
|
|
1.14
|
%
|
|
(1.54
|
)%
|
|
(135.09
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 20. Originations - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Service related, net - Originations
|
$
|
10
|
|
|
|
$
|
4
|
|
|
$
|
14
|
|
|
$
|
16
|
|
|
$
|
(2
|
)
|
|
(13
|
)%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gain on loans originated and sold
|
36
|
|
|
|
12
|
|
|
48
|
|
|
89
|
|
|
(41
|
)
|
|
(46
|
)%
|
|||||
Fair value adjustment on loans held for sale
|
(8
|
)
|
|
|
(1
|
)
|
|
(9
|
)
|
|
6
|
|
|
(15
|
)
|
|
(250
|
)%
|
|||||
Mark-to-market on locks and commitments
(2)
|
(2
|
)
|
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(200
|
)%
|
|||||
Mark-to-market on derivative/hedges
|
10
|
|
|
|
9
|
|
|
19
|
|
|
(4
|
)
|
|
23
|
|
|
575
|
%
|
|||||
Capitalized servicing rights
|
41
|
|
|
|
22
|
|
|
63
|
|
|
46
|
|
|
17
|
|
|
37
|
%
|
|||||
Provision of repurchase reserves, net of release
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
50
|
%
|
|||||
Total net gain on mortgage loans held for sale
|
76
|
|
|
|
41
|
|
|
117
|
|
|
134
|
|
|
(17
|
)
|
|
(13
|
)%
|
|||||
Total revenues - Originations
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
150
|
|
|
$
|
(19
|
)
|
|
(13
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer direct lock pull through adjusted volume
(3)
|
$
|
1,524
|
|
|
|
$
|
828
|
|
|
$
|
2,352
|
|
|
$
|
3,006
|
|
|
$
|
(654
|
)
|
|
(22
|
)%
|
Other locked pull through adjusted volume
(3)
|
1,897
|
|
|
|
778
|
|
|
2,675
|
|
|
1,924
|
|
|
751
|
|
|
39
|
%
|
|||||
Total pull through adjusted volume
|
$
|
3,421
|
|
|
|
$
|
1,606
|
|
|
$
|
5,027
|
|
|
$
|
4,930
|
|
|
$
|
97
|
|
|
2
|
%
|
Funded volume
|
$
|
3,459
|
|
|
|
$
|
1,688
|
|
|
$
|
5,147
|
|
|
$
|
5,102
|
|
|
$
|
45
|
|
|
1
|
%
|
Funded HARP volume
|
$
|
135
|
|
|
|
$
|
72
|
|
|
$
|
207
|
|
|
$
|
772
|
|
|
$
|
(565
|
)
|
|
(73
|
)%
|
Recapture percentage
|
22.8
|
%
|
|
|
20.4
|
%
|
|
22.0
|
%
|
|
23.9
|
%
|
|
|
|
|
|||||||
Purchase percentage of funded volume
|
52.8
|
%
|
|
|
52.2
|
%
|
|
52.6
|
%
|
|
36.3
|
%
|
|
|
|
|
|||||||
Value of capitalized servicing
|
124 bps
|
|
|
|
120 bps
|
|
|
122 bps
|
|
|
93 bps
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 20.1. Originations - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Service related, net - Originations
|
$
|
10
|
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
47
|
|
|
$
|
(1
|
)
|
|
(2
|
)%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gain on loans originated and sold
|
36
|
|
|
|
113
|
|
|
149
|
|
|
293
|
|
|
(144
|
)
|
|
(49
|
)%
|
|||||
Fair value adjustment on loans held for sale
|
(8
|
)
|
|
|
—
|
|
|
(8
|
)
|
|
16
|
|
|
(24
|
)
|
|
(150
|
)%
|
|||||
Mark-to-market on locks and commitments
(2)
|
(2
|
)
|
|
|
1
|
|
|
(1
|
)
|
|
(23
|
)
|
|
22
|
|
|
96
|
%
|
|||||
Mark-to-market on derivative/hedges
|
10
|
|
|
|
1
|
|
|
11
|
|
|
(28
|
)
|
|
39
|
|
|
139
|
%
|
|||||
Capitalized servicing rights
|
41
|
|
|
|
156
|
|
|
197
|
|
|
143
|
|
|
54
|
|
|
38
|
%
|
|||||
Provision of repurchase reserves, net of release
|
(1
|
)
|
|
|
(1
|
)
|
|
(2
|
)
|
|
1
|
|
|
(3
|
)
|
|
(300
|
)%
|
|||||
Total net gain on mortgage loans held for sale
|
76
|
|
|
|
270
|
|
|
346
|
|
|
402
|
|
|
(56
|
)
|
|
(14
|
)%
|
|||||
Total revenues - Originations
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
449
|
|
|
$
|
(57
|
)
|
|
(13
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer direct lock pull through adjusted volume
(3)
|
$
|
1,524
|
|
|
|
$
|
6,100
|
|
|
$
|
7,624
|
|
|
$
|
8,466
|
|
|
$
|
(842
|
)
|
|
(10
|
)%
|
Other locked pull through adjusted volume
(3)
|
1,897
|
|
|
|
5,807
|
|
|
7,704
|
|
|
4,469
|
|
|
3,235
|
|
|
72
|
%
|
|||||
Total pull through adjusted volume
|
$
|
3,421
|
|
|
|
$
|
11,907
|
|
|
$
|
15,328
|
|
|
$
|
12,935
|
|
|
$
|
2,393
|
|
|
19
|
%
|
Funded volume
|
$
|
3,459
|
|
|
|
$
|
12,317
|
|
|
$
|
15,776
|
|
|
$
|
13,988
|
|
|
$
|
1,788
|
|
|
13
|
%
|
Funded HARP volume
|
$
|
135
|
|
|
|
$
|
832
|
|
|
$
|
967
|
|
|
$
|
2,932
|
|
|
$
|
(1,965
|
)
|
|
(67
|
)%
|
Recapture percentage
|
22.8
|
%
|
|
|
23.8
|
%
|
|
23.6
|
%
|
|
26.5
|
%
|
|
|
|
|
|||||||
Purchase percentage of funded volume
|
52.8
|
%
|
|
|
46.7
|
%
|
|
48.0
|
%
|
|
28.6
|
%
|
|
|
|
|
|||||||
Value of capitalized servicing
|
124 bps
|
|
|
|
120 bps
|
|
|
124 bps
|
|
|
101 bps
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 21. Originations - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
39
|
|
|
|
$
|
21
|
|
|
$
|
60
|
|
|
$
|
66
|
|
|
$
|
(6
|
)
|
|
(9
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan origination expenses
|
9
|
|
|
|
5
|
|
|
14
|
|
|
13
|
|
|
1
|
|
|
8
|
%
|
|||||
Corporate and other general and administrative expenses
|
7
|
|
|
|
3
|
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
%
|
|||||
Marketing and professional service fee
|
9
|
|
|
|
4
|
|
|
13
|
|
|
14
|
|
|
(1
|
)
|
|
(7
|
)%
|
|||||
Depreciation and amortization
|
2
|
|
|
|
1
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||||
Total general and administrative
|
27
|
|
|
|
13
|
|
|
40
|
|
|
40
|
|
|
—
|
|
|
—
|
%
|
|||||
Total expenses - Originations
|
$
|
66
|
|
|
|
$
|
34
|
|
|
$
|
100
|
|
|
$
|
106
|
|
|
$
|
(6
|
)
|
|
(6
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 21.1. Originations - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
39
|
|
|
|
$
|
148
|
|
|
$
|
187
|
|
|
$
|
195
|
|
|
$
|
(8
|
)
|
|
(4
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan origination expenses
|
9
|
|
|
|
32
|
|
|
41
|
|
|
46
|
|
|
(5
|
)
|
|
(11
|
)%
|
|||||
Corporate and other general and administrative expenses
|
7
|
|
|
|
26
|
|
|
33
|
|
|
36
|
|
|
(3
|
)
|
|
(8
|
)%
|
|||||
Marketing and professional service fee
|
9
|
|
|
|
32
|
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
%
|
|||||
Depreciation and amortization
|
2
|
|
|
|
7
|
|
|
9
|
|
|
8
|
|
|
1
|
|
|
13
|
%
|
|||||
Total general and administrative
|
27
|
|
|
|
97
|
|
|
124
|
|
|
131
|
|
|
(7
|
)
|
|
(5
|
)%
|
|||||
Total expenses - Originations
|
$
|
66
|
|
|
|
$
|
245
|
|
|
$
|
311
|
|
|
$
|
326
|
|
|
$
|
(15
|
)
|
|
(5
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 22. Originations - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
$
|
10
|
|
|
|
$
|
6
|
|
|
$
|
16
|
|
|
$
|
14
|
|
|
$
|
2
|
|
|
14
|
%
|
Interest expense
|
(10
|
)
|
|
|
(6
|
)
|
|
(16
|
)
|
|
(13
|
)
|
|
3
|
|
|
23
|
%
|
|||||
Other income
|
1
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
100
|
%
|
|||||
Total other income, net - Originations
|
$
|
1
|
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average note rate - mortgage loans held for sale
|
4.8
|
%
|
|
|
4.8
|
%
|
|
|
|
4.1
|
%
|
|
|
|
|
||||||||
Weighted average cost of funds (excluding facility fees)
|
4.5
|
%
|
|
|
4.2
|
%
|
|
|
|
3.6
|
%
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 22.1. Originations - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
$
|
10
|
|
|
|
$
|
38
|
|
|
$
|
48
|
|
|
$
|
39
|
|
|
$
|
9
|
|
|
23
|
%
|
Interest expense
|
(10
|
)
|
|
|
(37
|
)
|
|
(47
|
)
|
|
(39
|
)
|
|
8
|
|
|
21
|
%
|
|||||
Other income
|
1
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
100
|
%
|
|||||
Total other income, net - Originations
|
$
|
1
|
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average note rate - mortgage loans held for sale
|
4.8
|
%
|
|
|
4.5
|
%
|
|
|
|
4.1
|
%
|
|
|
|
|
||||||||
Weighted average cost of funds (excluding facility fees)
|
4.5
|
%
|
|
|
4.2
|
%
|
|
|
|
3.5
|
%
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 23. Xome - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
73
|
|
|
|
$
|
22
|
|
|
$
|
95
|
|
|
$
|
65
|
|
|
$
|
30
|
|
|
46
|
%
|
Expenses
|
71
|
|
|
|
19
|
|
|
90
|
|
|
54
|
|
|
36
|
|
|
67
|
%
|
|||||
Other income (expenses), net
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
%
|
|||||
Income (loss) before income tax expense
|
$
|
1
|
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
11
|
|
|
$
|
(7
|
)
|
|
(64
|
)%
|
Income before taxes margin - Xome
|
1.4
|
%
|
|
|
13.6
|
%
|
|
4.2
|
%
|
|
16.9
|
%
|
|
(12.7
|
)%
|
|
(75.1
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 23.1. Xome - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
73
|
|
|
|
$
|
149
|
|
|
$
|
222
|
|
|
$
|
226
|
|
|
$
|
(4
|
)
|
|
(2
|
)%
|
Expenses
|
71
|
|
|
|
123
|
|
|
194
|
|
|
193
|
|
|
1
|
|
|
1
|
%
|
|||||
Other income (expenses), net
|
(1
|
)
|
|
|
9
|
|
|
8
|
|
|
8
|
|
|
—
|
|
|
—
|
%
|
|||||
Income before income tax expense
|
$
|
1
|
|
|
|
$
|
35
|
|
|
$
|
36
|
|
|
$
|
41
|
|
|
$
|
(5
|
)
|
|
(12
|
)%
|
Income before taxes margin - Xome
|
1.4
|
%
|
|
|
23.5
|
%
|
|
16.2
|
%
|
|
18.1
|
%
|
|
(1.9
|
)%
|
|
(10.5
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 24. Xome - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
Amount Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Exchange
|
$
|
15
|
|
|
|
$
|
9
|
|
|
$
|
24
|
|
|
$
|
26
|
|
|
$
|
(2
|
)
|
|
(8
|
)%
|
Services
|
54
|
|
|
|
11
|
|
|
65
|
|
|
31
|
|
|
34
|
|
|
110
|
%
|
|||||
SaaS
|
4
|
|
|
|
2
|
|
|
6
|
|
|
8
|
|
|
(2
|
)
|
|
(25
|
)%
|
|||||
Total revenues - Xome
|
$
|
73
|
|
|
|
$
|
22
|
|
|
$
|
95
|
|
|
$
|
65
|
|
|
$
|
30
|
|
|
46
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Property listings sold
|
1,730
|
|
|
|
928
|
|
|
2,658
|
|
|
2,772
|
|
|
(114
|
)
|
|
(4
|
)%
|
|||||
REO listings at period end
|
5,490
|
|
|
|
5,867
|
|
|
5,490
|
|
|
6,633
|
|
|
(1,143
|
)
|
|
(17
|
)%
|
|||||
Xome services completed orders
|
276,937
|
|
|
|
35,599
|
|
|
312,536
|
|
|
99,407
|
|
|
213,129
|
|
|
214
|
%
|
|||||
Percentage of revenue earned from third party customers
(2)
|
56.4
|
%
|
|
|
26.0
|
%
|
|
49.3
|
%
|
|
32.6
|
%
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 24.1. Xome - Revenues
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
Amount Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Exchange
|
$
|
15
|
|
|
|
$
|
62
|
|
|
$
|
77
|
|
|
$
|
84
|
|
|
$
|
(7
|
)
|
|
(8
|
)%
|
Services
|
54
|
|
|
|
74
|
|
|
128
|
|
|
119
|
|
|
9
|
|
|
8
|
%
|
|||||
SaaS
|
4
|
|
|
|
13
|
|
|
17
|
|
|
23
|
|
|
(6
|
)
|
|
(26
|
)%
|
|||||
Total revenues - Xome
|
$
|
73
|
|
|
|
$
|
149
|
|
|
$
|
222
|
|
|
$
|
226
|
|
|
$
|
(4
|
)
|
|
(2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Property listings sold
|
1,730
|
|
|
|
6,920
|
|
|
8,650
|
|
|
9,260
|
|
|
(610
|
)
|
|
(7
|
)%
|
|||||
REO listings at period end
|
5,490
|
|
|
|
5,867
|
|
|
5,490
|
|
|
5,867
|
|
|
(377
|
)
|
|
(6
|
)%
|
|||||
Xome services completed orders
|
276,937
|
|
|
|
264,031
|
|
|
540,968
|
|
|
326,377
|
|
|
214,591
|
|
|
66
|
%
|
|||||
Percentage of revenue earned from third party customers
(2)
|
56.4
|
%
|
|
|
27.8
|
%
|
|
37.2
|
%
|
|
37.4
|
%
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 25. Xome - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
29
|
|
|
|
$
|
9
|
|
|
$
|
38
|
|
|
$
|
27
|
|
|
$
|
11
|
|
|
41
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
40
|
|
|
|
9
|
|
|
49
|
|
|
24
|
|
|
25
|
|
|
104
|
%
|
|||||
Depreciation and amortization
|
2
|
|
|
|
1
|
|
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||||
Loss on impairment of assets
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||
Total general and administrative
|
42
|
|
|
|
10
|
|
|
52
|
|
|
27
|
|
|
25
|
|
|
93
|
%
|
|||||
Total expenses - Xome
|
$
|
71
|
|
|
|
$
|
19
|
|
|
$
|
90
|
|
|
$
|
54
|
|
|
$
|
36
|
|
|
67
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 25.1. Xome - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
29
|
|
|
|
$
|
58
|
|
|
$
|
87
|
|
|
$
|
98
|
|
|
$
|
(11
|
)
|
|
(11
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
40
|
|
|
|
58
|
|
|
98
|
|
|
83
|
|
|
15
|
|
|
18
|
%
|
|||||
Depreciation and amortization
|
2
|
|
|
|
7
|
|
|
9
|
|
|
10
|
|
|
(1
|
)
|
|
(10
|
)%
|
|||||
Loss on impairment of assets
|
—
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
(100
|
)%
|
|||||
Total general and administrative
|
42
|
|
|
|
65
|
|
|
107
|
|
|
95
|
|
|
12
|
|
|
13
|
%
|
|||||
Total expenses - Xome
|
$
|
71
|
|
|
|
$
|
123
|
|
|
$
|
194
|
|
|
$
|
193
|
|
|
$
|
1
|
|
|
1
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 27. Corporate and Other - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Expenses
|
34
|
|
|
|
63
|
|
|
97
|
|
|
23
|
|
|
74
|
|
|
322
|
%
|
|||||
Other income (expenses), net
|
(35
|
)
|
|
|
(11
|
)
|
|
(46
|
)
|
|
(36
|
)
|
|
(10
|
)
|
|
28
|
%
|
|||||
Loss before income tax benefit
|
$
|
(69
|
)
|
|
|
$
|
(74
|
)
|
|
$
|
(143
|
)
|
|
$
|
(59
|
)
|
|
$
|
(84
|
)
|
|
142
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 27.1. Corporate and Other - Operations
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Revenues
|
$
|
—
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
—
|
%
|
Expenses
|
34
|
|
|
|
103
|
|
|
137
|
|
|
72
|
|
|
65
|
|
|
90
|
%
|
|||||
Other income (expenses), net
|
(35
|
)
|
|
|
(78
|
)
|
|
(113
|
)
|
|
(106
|
)
|
|
(7
|
)
|
|
7
|
%
|
|||||
Loss before income tax benefit
|
$
|
(69
|
)
|
|
|
$
|
(180
|
)
|
|
$
|
(249
|
)
|
|
$
|
(177
|
)
|
|
$
|
(72
|
)
|
|
41
|
%
|
|
Successor
|
|
Predecessor
|
||||
Table 28. Legacy Portfolio
|
September 30, 2018
|
|
December 31, 2017
|
||||
Performing - UPB
|
$
|
144
|
|
|
$
|
153
|
|
Nonperforming (90+ delinquency) - UPB
|
32
|
|
|
39
|
|
||
REO - estimated fair value
|
5
|
|
|
1
|
|
||
Total legacy portfolio
|
$
|
181
|
|
|
$
|
193
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 29. Corporate and Other - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
19
|
|
|
|
$
|
14
|
|
|
$
|
33
|
|
|
$
|
16
|
|
|
$
|
17
|
|
|
106
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
8
|
|
|
|
49
|
|
|
57
|
|
|
4
|
|
|
53
|
|
|
1,325
|
%
|
|||||
Depreciation and amortization
|
7
|
|
|
|
—
|
|
|
7
|
|
|
3
|
|
|
4
|
|
|
133
|
%
|
|||||
Total general and administrative
|
15
|
|
|
|
49
|
|
|
64
|
|
|
7
|
|
|
57
|
|
|
814
|
%
|
|||||
Total expenses - Corporate and Other
|
$
|
34
|
|
|
|
$
|
63
|
|
|
$
|
97
|
|
|
$
|
23
|
|
|
$
|
74
|
|
|
322
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 29.1. Corporate and Other - Expenses
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Salaries, wages and benefits
|
$
|
19
|
|
|
|
$
|
45
|
|
|
$
|
64
|
|
|
$
|
46
|
|
|
$
|
18
|
|
|
39
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
8
|
|
|
|
54
|
|
|
62
|
|
|
16
|
|
|
46
|
|
|
288
|
%
|
|||||
Depreciation and amortization
|
7
|
|
|
|
4
|
|
|
11
|
|
|
10
|
|
|
1
|
|
|
10
|
%
|
|||||
Total general and administrative
|
15
|
|
|
|
58
|
|
|
73
|
|
|
26
|
|
|
47
|
|
|
181
|
%
|
|||||
Total expenses - Corporate and Other
|
$
|
34
|
|
|
|
$
|
103
|
|
|
$
|
137
|
|
|
$
|
72
|
|
|
$
|
65
|
|
|
90
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 30. Corporate and Other - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period July 1 - July 31, 2018
|
|
Combined
(1)
|
|
Three Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Interest income, legacy portfolio
|
$
|
2
|
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, legacy portfolio
|
—
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(1
|
)
|
|
(50
|
)%
|
|||||
Interest expense on unsecured senior notes
|
(36
|
)
|
|
|
(11
|
)
|
|
(47
|
)
|
|
(36
|
)
|
|
11
|
|
|
31
|
%
|
|||||
Other interest, net
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
1
|
%
|
|||||
Total interest expense
|
(37
|
)
|
|
|
(12
|
)
|
|
(49
|
)
|
|
(38
|
)
|
|
11
|
|
|
29
|
%
|
|||||
Other income (expense)
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||||
Other income (expenses), net - Corporate and Other
|
$
|
(35
|
)
|
|
|
$
|
(11
|
)
|
|
$
|
(46
|
)
|
|
$
|
(36
|
)
|
|
$
|
(10
|
)
|
|
(28
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - unsecured senior notes
|
7.9
|
%
|
|
|
7.9
|
%
|
|
|
|
7.3
|
%
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 30.1. Corporate and Other - Other Income (Expenses), Net
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Interest income, legacy portfolio
|
$
|
2
|
|
|
|
$
|
7
|
|
|
$
|
9
|
|
|
$
|
12
|
|
|
$
|
(3
|
)
|
|
(25
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, legacy portfolio
|
—
|
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|
(2
|
)
|
|
(40
|
)%
|
|||||
Interest expense on unsecured senior notes
|
(36
|
)
|
|
|
(77
|
)
|
|
(113
|
)
|
|
(109
|
)
|
|
4
|
|
|
4
|
%
|
|||||
Other interest, net
|
(1
|
)
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(2
|
)
|
|
2
|
|
|
100
|
%
|
|||||
Total interest expense
|
(37
|
)
|
|
|
(83
|
)
|
|
(120
|
)
|
|
(116
|
)
|
|
4
|
|
|
3
|
%
|
|||||
Other income (expense)
|
—
|
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
%
|
|||||
Other income (expenses), net - Corporate and Other
|
$
|
(35
|
)
|
|
|
$
|
(78
|
)
|
|
$
|
(113
|
)
|
|
$
|
(106
|
)
|
|
$
|
(7
|
)
|
|
(7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - unsecured senior notes
|
7.9
|
%
|
|
|
7.4
|
%
|
|
|
|
7.3
|
%
|
|
|
|
|
|
Successor
|
|
Predecessor
|
|
|
|
|
|||||||
Table 31. Assets
|
September 30, 2018
|
|
December 31, 2017
|
|
$ Change
|
|
% Change
|
|||||||
Cash and cash equivalents
|
$
|
198
|
|
|
$
|
215
|
|
|
$
|
(17
|
)
|
|
(7.9
|
)%
|
Mortgage servicing rights
|
3,500
|
|
|
2,941
|
|
|
559
|
|
|
19.0
|
%
|
|||
Advances and other receivables, net
|
1,174
|
|
|
1,706
|
|
|
(532
|
)
|
|
(31.2
|
)%
|
|||
Reverse mortgage interests, net
|
8,886
|
|
|
9,984
|
|
|
(1,098
|
)
|
|
(11.0
|
)%
|
|||
Mortgage loans held for sale at fair value
|
1,681
|
|
|
1,891
|
|
|
(210
|
)
|
|
(11.1
|
)%
|
|||
Deferred tax asset
|
934
|
|
|
—
|
|
|
934
|
|
|
100.0
|
%
|
|||
Other
|
1,355
|
|
|
1,299
|
|
|
56
|
|
|
4.3
|
%
|
|||
Total assets
|
$
|
17,728
|
|
|
$
|
18,036
|
|
|
$
|
(308
|
)
|
|
(1.7
|
)%
|
|
Successor
|
|
Predecessor
|
|
|
|
|
|||||||
Table 32. Liabilities and Stockholders' Equity
|
September 30, 2018
|
|
December 31, 2017
|
|
$ Change
|
|
% Change
|
|||||||
Unsecured senior notes, net
|
$
|
2,457
|
|
|
$
|
1,874
|
|
|
$
|
583
|
|
|
31.1
|
%
|
Advance facilities, net
|
596
|
|
|
855
|
|
|
(259
|
)
|
|
(30.3
|
)%
|
|||
Warehouse facilities, net
|
2,888
|
|
|
3,285
|
|
|
(397
|
)
|
|
(12.1
|
)%
|
|||
MSR related liabilities - nonrecourse at fair value
|
1,123
|
|
|
1,006
|
|
|
117
|
|
|
11.6
|
%
|
|||
Other nonrecourse debt, net
|
7,165
|
|
|
8,014
|
|
|
(849
|
)
|
|
(10.6
|
)%
|
|||
Other liabilities
|
1,421
|
|
|
1,280
|
|
|
141
|
|
|
11.0
|
%
|
|||
Total liabilities
|
15,650
|
|
|
16,314
|
|
|
(664
|
)
|
|
(4.1
|
)%
|
|||
Total stockholders' equity attributable to Nationstar
|
2,078
|
|
|
1,715
|
|
|
363
|
|
|
21.2
|
%
|
|||
Noncontrolling interest
|
—
|
|
|
7
|
|
|
(7
|
)
|
|
(100.0
|
)%
|
|||
Total liabilities and stockholders' equity
|
$
|
17,728
|
|
|
$
|
18,036
|
|
|
$
|
(308
|
)
|
|
(1.7
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 33 Operating Cash Flow
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Originations net sales activities
|
$
|
(135
|
)
|
|
|
$
|
520
|
|
|
$
|
385
|
|
|
$
|
527
|
|
|
$
|
(142
|
)
|
|
(27
|
)%
|
Cash provided by operating profits and changes in working capital and other assets
|
311
|
|
|
|
1,774
|
|
|
2,085
|
|
|
719
|
|
|
1,366
|
|
|
190
|
%
|
|||||
Net cash attributable to operating activities
|
$
|
176
|
|
|
|
$
|
2,294
|
|
|
$
|
2,470
|
|
|
$
|
1,246
|
|
|
$
|
1,224
|
|
|
98
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 34. Investing Cash Flows
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Acquisitions, net
|
$
|
(33
|
)
|
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
(100
|
)%
|
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(63
|
)
|
|
|
(134
|
)
|
|
(197
|
)
|
|
(28
|
)
|
|
(169
|
)
|
|
604
|
%
|
|||||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
|
13
|
|
|
16
|
|
|
(3
|
)
|
|
(19
|
)%
|
|||||
Other
|
46
|
|
|
|
(41
|
)
|
|
5
|
|
|
7
|
|
|
(2
|
)
|
|
(29
|
)%
|
|||||
Net cash attributable to investing activities
|
$
|
(50
|
)
|
|
|
$
|
(162
|
)
|
|
$
|
(212
|
)
|
|
$
|
(5
|
)
|
|
$
|
(207
|
)
|
|
4,140
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
Table 35. Financing Cash Flow
|
For the Period August 1 - September 30, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Nine Months Ended September 30, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
|
|
|
|
|
|
|
|||||||||||||||||
Changes in advance facilities
|
$
|
46
|
|
|
|
$
|
(305
|
)
|
|
$
|
(259
|
)
|
|
$
|
(298
|
)
|
|
$
|
39
|
|
|
(13
|
)%
|
Changes in warehouse facilities
|
186
|
|
|
|
(585
|
)
|
|
(399
|
)
|
|
351
|
|
|
(750
|
)
|
|
(214
|
)%
|
|||||
Payment of unsecured senior notes and nonrecourse debt
|
(1,034
|
)
|
|
|
(93
|
)
|
|
(1,127
|
)
|
|
(145
|
)
|
|
(982
|
)
|
|
677
|
%
|
|||||
Issuance of excess spread financing
|
84
|
|
|
|
70
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|
100
|
%
|
|||||
Repayment of excess spread financing
|
(21
|
)
|
|
|
(3
|
)
|
|
(24
|
)
|
|
(9
|
)
|
|
(15
|
)
|
|
167
|
%
|
|||||
Decrease in participating interest financing in reverse mortgage interests
|
(358
|
)
|
|
|
(1,391
|
)
|
|
(1,749
|
)
|
|
(1,491
|
)
|
|
(258
|
)
|
|
17
|
%
|
|||||
Changes in HECM securitizations
|
(91
|
)
|
|
|
311
|
|
|
220
|
|
|
222
|
|
|
(2
|
)
|
|
(1
|
)%
|
|||||
Other
|
(31
|
)
|
|
|
(115
|
)
|
|
(146
|
)
|
|
(168
|
)
|
|
22
|
|
|
(13
|
)%
|
|||||
Net cash attributable to financing activities
|
$
|
(1,219
|
)
|
|
|
$
|
(2,111
|
)
|
|
$
|
(3,330
|
)
|
|
$
|
(1,538
|
)
|
|
$
|
(1,792
|
)
|
|
117
|
%
|
▪
|
Base of $2.5 plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets.
|
▪
|
Tangible Net Worth/Total Assets greater than 6%.
|
▪
|
3.5 basis points of total Agency servicing (Fannie Mae, Freddie Mac, Ginnie Mae) plus,
|
▪
|
Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB,
|
▪
|
Allowable assets for liquidity may include: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines.
|
|
Successor
|
|
Predecessor
|
||||
Table 36. Debt
|
September 30, 2018
|
|
December 31, 2017
|
||||
Advance facilities, net
|
$
|
596
|
|
|
$
|
855
|
|
Warehouse facilities, net
|
2,888
|
|
|
3,285
|
|
||
Unsecured senior notes, net
|
2,457
|
|
|
1,874
|
|
Year Ending December 31,
|
|
Amount
|
||
2018
|
|
$
|
—
|
|
2019
|
|
—
|
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
Thereafter
|
|
1,700
|
|
|
Total
|
|
$
|
2,498
|
|
|
Less than 1 Year
|
|
1 - 3 Years
|
|
|
3-5 Years
|
|
More than 5 Years
|
|
Total
|
|||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
798
|
|
|
$
|
1,700
|
|
|
$
|
2,498
|
|
Interest payment from unsecured senior notes
(1)
|
198
|
|
|
395
|
|
|
305
|
|
|
206
|
|
|
1,104
|
|
|||||
Advance facilities
|
99
|
|
|
497
|
|
|
—
|
|
|
—
|
|
|
596
|
|
|||||
Warehouse facilities
|
2,611
|
|
|
277
|
|
|
—
|
|
|
—
|
|
|
2,888
|
|
|||||
Capital lease obligations
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|||||
Operating lease obligations
|
27
|
|
|
52
|
|
|
30
|
|
|
37
|
|
|
146
|
|
|||||
Total
|
$
|
2,938
|
|
|
$
|
1,221
|
|
|
$
|
1,133
|
|
|
$
|
1,943
|
|
|
$
|
7,235
|
|
•
|
the available liquidity in the credit markets;
|
•
|
prevailing interest rates;
|
•
|
an event of default, a negative ratings action by a rating agency and limitations imposed on us under the indentures governing our current debt that contain restrictive covenants and borrowing conditions that may limit our ability to raise additional debt;
|
•
|
the strength of the lenders from which we borrow; and
|
•
|
limitations on borrowings on advance facilities imposed by the amount of eligible collateral pledged, which may be less than the borrowing capacity of the advance facility.
|
•
|
require us to dedicate a substantial portion of cash flow from operations to the payment of principal and interest on our current indebtedness and any indebtedness we may incur in the future, thereby reducing the funds available for other purposes;
|
•
|
make it more difficult for us to satisfy and comply with our obligations with respect to the unsecured senior notes;
|
•
|
subject us to increased sensitivity to increases in prevailing interest rates;
|
•
|
place us at a competitive disadvantage to competitors with relatively less debt in economic downturns, adverse industry conditions or catastrophic external events; or
|
•
|
reduce our flexibility in planning for or responding to changing business, industry and economic conditions.
|
•
|
unknown or contingent liabilities;
|
•
|
unanticipated issues in integrating information, management style, servicing practices, communications and other systems including information technology systems;
|
•
|
unanticipated incompatibility of purchasing, logistics, marketing and administration methods; and
|
•
|
not retaining key employees.
|
•
|
a decrease in interest rates may increase prepayment speeds which may lead to (i) increased amortization expense; (ii) decrease in servicing fees; and (iii) decrease in the value of our MSRs;
|
•
|
an increase in interest rates, together with an increase in monthly payments when an adjustable mortgage loan’s interest rate adjusts upward from an initial fixed rate or a low introductory rate, may cause increased delinquency, default and foreclosure. Increased mortgage defaults and foreclosures may adversely affect our business as they increase our expenses and reduce the number of mortgages we service;
|
•
|
an increase in interest rates could adversely affect our loan originations volume because refinancing an existing loan would be less attractive for homeowners and qualifying for a purchase money loan may be more difficult for consumers;
|
•
|
an increase in interest rates could adversely affect Exchange’s property sales, particularly non-distressed sales, as financing may become less attractive to borrowers;
|
•
|
a substantial and sustained increase in prevailing interest rates could adversely affect the loan origination volumes of Xome’s clients since refinancing and purchase loans would be less attractive to borrowers, which would in turn adversely impact Services’ valuation and title order volume;
|
•
|
an increase in interest rates would increase the cost of servicing our outstanding debt, including our ability to finance servicing advances and loan originations and for borrowing for acquisitions; and
|
•
|
a decrease in interest rates could reduce our earnings from our custodial deposit accounts.
|
•
|
the rates of prepayment and repayment within the underlying pools of mortgage loans;
|
•
|
projected rates of delinquencies, defaults and liquidations;
|
•
|
future interest rates;
|
•
|
our cost to service the loans;
|
•
|
ancillary revenues; and
|
•
|
amounts of future servicing advances.
|
•
|
Revenue.
An increase in delinquencies will result in lower revenue for loans we service for GSEs and the Government National Mortgage Association (“Ginnie Mae”) because we only collect servicing fees from GSEs and Ginnie Mae for performing loans. Additionally, while increased delinquencies generate higher ancillary revenues, including late fees, these fees are not likely to be recoverable in the event that the related loan is liquidated. In addition, an increase in delinquencies lowers the interest income we receive on cash held in collection and other accounts.
|
•
|
Expenses.
An increase in delinquencies will result in a higher cost to service due to the increased time and effort required to collect payments from delinquent borrowers and an increase in interest expense as a result of an increase in our advancing obligations.
|
•
|
Liquidity.
An increase in delinquencies could also negatively impact our liquidity because of an increase in borrowings under advance facilities.
|
•
|
Valuation of MSRs.
We base the price we pay for MSRs on, among other things, our projections of the cash flows from the related pool of mortgage loans. Our expectation of delinquencies is a significant assumption underlying those cash flow projections. If delinquencies were significantly greater than expected, the estimated fair value of our MSRs could be diminished. If the estimated fair value of MSRs is reduced, we may not be able to satisfy minimum net worth covenants and borrowing conditions in our debt agreements, and we could suffer a loss, which has a negative impact on our financial results.
|
•
|
adversely affect our ability to finance servicing advances and maintain our status as an approved servicer by Fannie Mae, Freddie Mac and Ginnie Mae;
|
•
|
lead to the early termination of existing advance facilities and affect the terms and availability of advance facilities that we may seek in the future;
|
•
|
cause our termination as servicer in our servicing agreements that require that we maintain specified servicer ratings; and
|
•
|
further impair our ability to consummate future servicing transactions.
|
•
|
our representations and warranties concerning loan quality and loan circumstances are inaccurate, including representations concerning the licensing of a mortgage broker;
|
•
|
we fail to secure adequate mortgage insurance within a certain period after closing;
|
•
|
a mortgage insurance provider denies coverage;
|
•
|
we fail to comply, at the individual loan level or otherwise, with regulatory requirements in the current dynamic regulatory environment; or
|
•
|
the borrower fails to make certain initial loan payments due to the purchaser. We are subject to repurchase claims and may continue to receive claims in the future. If we are required to indemnify or repurchase loans that we originate or have previously originated and sell or securitize that result in losses that exceed our reserve, this could adversely affect our business, financial condition and results of operations.
|
•
|
attracting new customers through our purchase money loan originations channel which will require expanded products, technologies, teams and multi-channel marketing campaigns;
|
•
|
focusing on relevant originations product expansion and profitable new growth platforms;
|
•
|
increasing third-party business at Xome;
|
•
|
re-entering the field services business by Xome; and
|
•
|
balancing disciplined UPB growth while meeting target unit economics.
|
Issuer Purchases of Equity Securities
(in thousands except Average Price Paid per Share)
|
|||||||||||||
Period
|
(a) Total Number of Shares (or Units) Purchased
(in thousands)
|
|
(b) Average Price Paid per Share (or Unit)
|
|
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
(1)
(in thousands)
|
|
(d) Maximum Number (or Appropriate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Program
(in millions)
|
||||||
Predecessor
|
|
|
|
|
|
|
|
||||||
July 1 - 31, 2018
|
642
|
|
(1)
|
$
|
18.27
|
|
|
642
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||
Successor
|
|
|
|
|
|
|
|
||||||
August 1 - 31, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
September 1 - 30, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Total
|
642
|
|
|
|
|
642
|
|
|
|
•
|
change the voting standard for the election of directors from plurality voting to majority voting in uncontested elections;
|
•
|
update the advance notice provisions for director nominations and stockholder proposals;
|
•
|
update and clarify the requirements and procedures for stockholders to call a special meeting of stockholders;
|
•
|
update and clarify the requirements and procedures for stockholders to act by written consent;
|
•
|
provide the Board with the ability to postpone, adjourn or cancel a previously-scheduled meeting of stockholders;
|
•
|
clarify the powers of the chairman of a stockholder meeting with respect to the conduct of such meeting;
|
•
|
allow for emergency meetings of the Board with less than 24 hours’ notice; and
|
•
|
designate the Court of Chancery of the State of Delaware as the exclusive forum for certain actions and proceedings involving the Company (such provision, the “Exclusive Forum Provision”).
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
3.1
|
8-K
|
001-14667
|
3.1
|
10/10/2018
|
|
|
3.2
|
|
|
|
|
X
|
|
4.1
|
|
|
|
|
X
|
|
4.2
|
8-K
|
001-14667
|
4.1
|
07/13/2018
|
|
|
4.3
|
8-K
|
001-14667
|
4.3
|
08/01/2018
|
|
|
4.4
|
8-K
|
001-14667
|
4.1
|
08/01/2018
|
|
|
4.5
|
8-K
|
001-14667
|
4.2
|
08/01/2018
|
|
|
10.1*
|
8-K
|
001-35449
|
10.1
|
05/12/2016
|
|
|
10.2*
|
8-K
|
001-14667
|
10.2
|
08/01/2018
|
|
|
10.3*
|
|
|
|
|
X
|
|
10.4*
|
8-K
|
001-14667
|
10.3
|
08/01/2018
|
|
|
10.5*
|
8-K
|
001-14667
|
10.4
|
08/01/2018
|
|
|
10.6*
|
8-K
|
001-14667
|
10.5
|
08/01/2018
|
|
|
10.7*
|
8-K
|
001-14667
|
10.6
|
08/01/2018
|
|
|
31.1
|
|
|
|
|
X
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
31.2
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
X
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
X
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
X
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
X
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
X
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
|
|
|
|
November 9, 2018
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
November 9, 2018
|
|
/s/ Amar R. Patel
|
Date
|
|
Amar R. Patel
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
Article I OFFICES
|
1
|
1.1
|
Registered Office and Agent
1
|
1.2
|
Principal Offices
1
|
1.3
|
Other Offices
1
|
Article II MEETINGS OF STOCKHOLDERS
|
1
|
2.1
|
Annual Meeting
1
|
2.2
|
Special Meeting
2
|
2.3
|
Place of Meetings
5
|
2.4
|
Notice
5
|
2.5
|
Voting List
6
|
2.6
|
Quorum; Adjournment
6
|
2.7
|
Required Vote; Withdrawal of Quorum
6
|
2.8
|
Method of Voting; Proxies
7
|
2.9
|
Record Date
7
|
2.10
|
Conduct of Meeting
8
|
2.11
|
Inspectors
8
|
2.12
|
Approval of Corporate Action by Stockholders Without Meeting
9
|
2.13
|
Advance Notice by Stockholders of Nominations and Proposals of Business
12
|
Article III DIRECTORS
|
21
|
3.1
|
Management
21
|
3.2
|
Number; Qualification; Election; Term
21
|
3.3
|
Change in Number
21
|
3.4
|
Vacancies
21
|
3.5
|
Meetings of Directors
21
|
3.6
|
Annual Meeting
22
|
3.7
|
Regular Meetings
22
|
3.8
|
Special Meetings
22
|
3.9
|
Notice
22
|
3.10
|
Quorum; Majority Vote
22
|
3.11
|
Procedure
22
|
3.12
|
Compensation
23
|
3.13
|
Chairman of the Board
23
|
3.14
|
Action by Board or Committees Without Meeting
23
|
3.15
|
Removal
23
|
Article IV COMMITTEES
|
23
|
4.1
|
Designation
23
|
4.2
|
Number; Qualification; Term
23
|
4.3
|
Authority
24
|
4.4
|
Committee Changes
24
|
4.5
|
Regular Meetings
24
|
4.6
|
Special Meetings
24
|
4.7
|
Quorum; Majority Vote
24
|
4.8
|
Minutes
25
|
4.9
|
Compensation
25
|
4.10
|
Responsibility
25
|
Article V NOTICE
|
25
|
5.1
|
Method
25
|
5.2
|
Waiver
25
|
Article VI OFFICERS
|
26
|
6.1
|
Number; Titles; Term of Office
26
|
6.2
|
Removal
26
|
6.3
|
Vacancies
26
|
6.4
|
Authority
26
|
6.5
|
Compensation
26
|
6.6
|
Chief Executive Officer
26
|
6.7
|
President
26
|
6.8
|
Chief Financial Officer
27
|
6.9
|
Vice Presidents
27
|
6.10
|
Treasurer
27
|
6.11
|
Assistant Treasurers
27
|
6.12
|
Secretary
27
|
6.13
|
Assistant Secretaries
28
|
Article VII CERTIFICATES AND STOCKHOLDERS
|
28
|
7.1
|
Certificates for Shares
28
|
7.2
|
Replacement of Lost or Destroyed Certificates
28
|
7.3
|
Facsimile Signatures
29
|
7.4
|
Transfer of Shares
29
|
7.5
|
Registered Stockholders
29
|
7.6
|
Regulations
29
|
7.7
|
Legends
29
|
Article VIII INDEMNIFICATION/ADVANCEMENT OF EXPENSES
|
29
|
8.1
|
Nature of Indemnity
29
|
8.2
|
Advances for Expenses
30
|
8.3
|
Procedure for Indemnification and Advancement
30
|
8.4
|
Other Rights; Continuation of Right to Indemnification
31
|
8.5
|
Insurance
31
|
8.6
|
Savings Clause
31
|
Article IX MISCELLANEOUS PROVISIONS
|
31
|
9.1
|
Dividends
32
|
9.2
|
Reserves
32
|
9.3
|
Books and Records
32
|
9.4
|
Fiscal Year
32
|
9.5
|
Seal
32
|
9.6
|
Resignations
32
|
9.7
|
Securities of Other Corporations
32
|
9.8
|
Telephone Meetings
32
|
9.9
|
Treasury Regulation 1.382-3
32
|
9.10
|
Invalid Provisions
33
|
9.11
|
Mortgages, etc
33
|
9.12
|
Headings
33
|
9.13
|
References
33
|
9.14
|
Exclusive Forum
33
|
9.15
|
Amendments
34
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Mr. Cooper Group Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
November 9, 2018
|
|
|
|
/s/ Jay Bray
|
|
|
|
|
Jay Bray
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Mr. Cooper Group Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
November 9, 2018
|
|
|
|
/s/ Amar R. Patel
|
|
|
|
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Amar R. Patel
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 9, 2018
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/s/ Jay Bray
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Jay Bray
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Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 9, 2018
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/s/ Amar R. Patel
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Amar R. Patel
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Chief Financial Officer
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