x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
91-1653725
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
8950 Cypress Waters Blvd, Coppell, TX
|
|
75019
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Common Stock, $0.01 par value per share
|
|
The Nasdaq Stock Market
|
(Title of each class)
|
|
(Name of each exchange on which registered)
|
Large Accelerated Filer
o
|
|
Accelerated Filer
x
|
Non-Accelerated Filer
o
|
|
Smaller reporting company
o
Emerging growth company
o
|
|
|
Page
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
|
|
|
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
Item 15.
|
||
Item 16.
|
||
|
•
|
Improve profitability, as measured by return on tangible common equity
|
•
|
Improve predictability and consistency of results by reducing the sensitivity of the Company’s financial results to interest rates
|
•
|
Reduce the Company’s financial leverage
|
•
|
Improve the Company’s efficiency by implementing cost-savings programs in all segments including corporate overhead
|
•
|
Continue to improve service quality to our customers and maintain a low level of complaints
|
•
|
Expand production volumes through continued improvements in our ability to recapture refinances of existing customers and enhancements to our correspondent and wholesale channels, including integrating the acquisition of Pacific Union Financial, LLC, which was completed in February 2019
|
•
|
Continue to grow our servicing portfolio
|
•
|
Improve Xome’s profitability by expanding third-party relationships, cutting costs and integrating the acquisition of Assurant Mortgage Solutions
|
•
|
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 liquidity and 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;
|
•
|
our ability to manage 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
|
•
|
our ability to maintain our licenses and other regulatory approvals
|
•
|
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.
|
•
|
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 also adversely affect our production margins due to increased competition among originators;
|
•
|
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 Xome Services’ valuation and title order volume;
|
•
|
an increase in interest rates could adversely affect Xome Exchange’s property sales, particularly non-distressed sales, as financing may become less attractive to borrowers;
|
•
|
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.
|
•
|
unknown or contingent liabilities;
|
•
|
unanticipated issues in integrating information, management style, controls and procedures, servicing practices, communications and other systems including information technology systems;
|
•
|
unanticipated incompatibility of purchasing, logistics, marketing and administration methods;
|
•
|
not retaining key employees or clients; and
|
•
|
inaccuracy of valuation and/or operating assumptions supporting our purchase price.
|
•
|
difficulty in finding buyers or alternative exit strategies on acceptable terms in a timely manner;
|
•
|
destabilization of the applicable operations;
|
•
|
loss of key personnel;
|
•
|
ability to obtain necessary governmental or regulatory approvals;
|
•
|
post-disposal disputes and indemnification obligations;
|
•
|
access by purchasers to certain of our systems and tools during transition periods;
|
•
|
the migration of data and separation of systems; and
|
•
|
data privacy matters
|
•
|
Revenue.
An increase in delinquencies will result in lower revenue for loans we service for GSEs and 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 do not offset the higher cost to service a delinquent loan and are not likely to be recoverable in the event that the loan is liquidated. In addition, an increase in delinquencies reduces cash held in collections and other accounts and lowers the interest income we receive.
|
•
|
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 servicing advances resulting in an increase in borrowings under advance facilities and/or insufficient financing capacity to fund increases in advances.
|
•
|
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 would record a loss which would adversely impact our ability to satisfy minimum net worth covenants and borrowing conditions in our debt agreements which could have 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, Ginnie Mae, and other investors;
|
•
|
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.
|
•
|
attracting new customers through our purchase money loan originations channel which will require expanded products, technologies, teams and multi-channel marketing campaigns;
|
•
|
focusing on originations product expansion and profitable new growth platforms;
|
•
|
increasing third-party business at Xome;
|
•
|
integrating Assurant Mortgage Solutions into Xome;
|
•
|
increasing efficiencies while improving the customer experience; and
|
•
|
balancing disciplined UPB growth while meeting and delivering target unit economics.
|
•
|
our operating performance and the performance of our competitors and fluctuations in our operating results;
|
•
|
macro economic trends, including changes in interest rates and economic growth and unemployment;
|
•
|
the public’s reaction to our press releases, our other public announcements and our filings with the SEC;
|
•
|
changes in earnings estimates or recommendations by research analysts who follow us or other companies in our industry;
|
•
|
global, national or local economic, legal and regulatory factors unrelated to our performance;
|
•
|
announcements of negative news by us or our competitors, such as announcements of poorer than expected results of operations, data breaches or significant litigation;
|
•
|
actual or anticipated variations in our or our competitors’ operating results, and our or our competitors’ growth rates;
|
•
|
failure by us or our competitors to meet analysts’ projections or guidance we or our competitors may give the market;
|
•
|
changes in laws or regulations, or new interpretations or applications of laws and regulations, that are applicable to our business;
|
•
|
changes in accounting standards, policies, guidance, interpretations or principles;
|
•
|
the departure of key personnel;
|
•
|
the number of shares publicly traded;
|
•
|
the converted Series B preferred stockholders selling their shares; and
|
•
|
other developments affecting us, our industry or our competitors.
|
Location
|
Owned/Leased
|
Square Footage
|
|
Principal executive office
:
|
|
|
|
Coppell, Texas – Corporate Headquarter
|
Leased
|
175,585
|
|
Business operations and support offices:
|
|
|
|
Lewisville, Texas
(1)
|
Leased
|
321,648
|
|
Irving, Texas
(2)
|
Leased
|
292,988
|
|
Chandler, Arizona
(3)
|
Leased
|
163,473
|
|
Santa Ana, California
(2)
|
Leased
|
152,827
|
|
Chennai, India
(4)
|
Leased
|
114,619
|
|
Coraopolis, Pennsylvania
(5)
|
Leased
|
54,900
|
|
Irvine, California
(2)
|
Leased
|
50,228
|
|
Longview, Texas
(3)
|
Leased
|
45,856
|
|
Omaha, Nebraska
(5)
|
Leased
|
44,096
|
|
Austin, Texas
(5)
|
Leased
|
39,318
|
|
Highlands Ranch, Colorado
(3)
|
Leased
|
31,375
|
|
Indianapolis, Indiana
(5)
|
Leased
|
25,171
|
|
Newport Beach, California
(5)
|
Leased
|
23,886
|
|
North Richland Hills, Texas
(5)
|
Leased
|
23,046
|
|
Palm Bay, Florida
(5)
|
Leased
|
20,207
|
|
(1)
|
Primarily supports our Servicing and Xome segments
|
(2)
|
Primarily supports our Originations segment
|
(3)
|
Primarily supports our Servicing segment
|
(4)
|
Primarily supports our Xome segment and NSM Corporate functions
|
(5)
|
Primarily supports our Xome segment
|
|
December 31,
|
||||||||||||||||||||||
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
||||||||||||
Mr. Cooper (formerly WMIH)
|
$
|
100
|
|
|
$
|
73
|
|
|
$
|
92
|
|
|
$
|
55
|
|
|
$
|
30
|
|
|
$
|
34
|
|
S&P 500 Index
|
100
|
|
|
111
|
|
|
111
|
|
|
121
|
|
|
145
|
|
|
136
|
|
||||||
Peer Group (2013 through 2017) and S&P Small Cap 600 Financials Index (2018)
|
100
|
|
|
104
|
|
|
101
|
|
|
126
|
|
|
141
|
|
|
136
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
As of December 31, 2018
|
|
|
As of December 31,
|
||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||||||||
Consolidated Balance Sheet Data:
(amounts in millions)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
242
|
|
|
|
$
|
215
|
|
|
$
|
489
|
|
|
$
|
613
|
|
|
$
|
299
|
|
Mortgage servicing rights
|
3,676
|
|
|
|
2,941
|
|
|
3,166
|
|
|
3,367
|
|
|
2,961
|
|
|||||
Advances and other receivables, net
|
1,194
|
|
|
|
1,706
|
|
|
1,749
|
|
|
2,412
|
|
|
2,545
|
|
|||||
Reverse mortgage interests, net
|
7,934
|
|
|
|
9,984
|
|
|
11,033
|
|
|
7,514
|
|
|
2,453
|
|
|||||
Mortgage loans held for sale
|
1,631
|
|
|
|
1,891
|
|
|
1,788
|
|
|
1,430
|
|
|
1,278
|
|
|||||
Total assets
|
16,973
|
|
|
|
18,036
|
|
|
19,593
|
|
|
16,617
|
|
|
11,113
|
|
|||||
Unsecured senior notes, net
|
2,459
|
|
|
|
1,874
|
|
|
1,990
|
|
|
2,026
|
|
|
2,159
|
|
|||||
Advance facilities, net
|
595
|
|
|
|
855
|
|
|
1,096
|
|
|
1,640
|
|
|
1,902
|
|
|||||
Warehouse facilities, net
|
2,349
|
|
|
|
3,285
|
|
|
2,421
|
|
|
1,890
|
|
|
1,573
|
|
|||||
Other nonrecourse debt, net
|
6,795
|
|
|
|
8,014
|
|
|
9,631
|
|
|
6,666
|
|
|
1,768
|
|
|||||
Total liabilities
|
15,028
|
|
|
|
16,314
|
|
|
17,910
|
|
|
14,850
|
|
|
9,888
|
|
|||||
Total stockholders’ equity
|
1,945
|
|
|
|
1,722
|
|
|
1,683
|
|
|
1,767
|
|
|
1,224
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year Ended December 31, 2017
|
|
Year Ended December 31, 2016
|
|
Year Ended December 31, 2015
|
|
Year Ended December 31, 2014
|
||||||||||||
Consolidated Statement of Operations and Comprehensive Income Data:
(amounts in millions, except for earnings per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total revenues
|
$
|
594
|
|
|
|
$
|
1,196
|
|
|
$
|
1,650
|
|
|
$
|
1,915
|
|
|
$
|
1,989
|
|
|
$
|
1,973
|
|
Total expenses
|
707
|
|
|
|
945
|
|
|
1,475
|
|
|
1,644
|
|
|
1,688
|
|
|
1,358
|
|
||||||
Total other income (expense), net
|
(24
|
)
|
|
|
(49
|
)
|
|
(131
|
)
|
|
(242
|
)
|
|
(247
|
)
|
|
(329
|
)
|
||||||
(Loss) income before income tax (benefit) expense
|
(137
|
)
|
|
|
202
|
|
|
44
|
|
|
29
|
|
|
54
|
|
|
286
|
|
||||||
Less: Income tax (benefit) expense
|
(1,021
|
)
|
|
|
48
|
|
|
13
|
|
|
13
|
|
|
11
|
|
|
65
|
|
||||||
Net income
|
884
|
|
|
|
154
|
|
|
31
|
|
|
16
|
|
|
43
|
|
|
221
|
|
||||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
|
4
|
|
|
—
|
|
||||||
Net income attributable to Successor/Predecessor
|
884
|
|
|
|
154
|
|
|
30
|
|
|
19
|
|
|
39
|
|
|
221
|
|
||||||
Less: Undistributed earnings attributable to participating stockholders
|
8
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to participating stockholders
|
876
|
|
|
|
154
|
|
|
30
|
|
|
19
|
|
|
39
|
|
|
221
|
|
||||||
Change in value of designated cash flow hedges, net of tax
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Total comprehensive income
|
$
|
876
|
|
|
|
$
|
154
|
|
|
$
|
30
|
|
|
$
|
19
|
|
|
$
|
39
|
|
|
$
|
219
|
|
Earnings per share data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
$
|
9.65
|
|
|
|
$
|
1.57
|
|
|
$
|
0.31
|
|
|
$
|
0.19
|
|
|
$
|
0.38
|
|
|
$
|
2.47
|
|
Diluted
|
$
|
9.54
|
|
|
|
$
|
1.55
|
|
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
$
|
0.37
|
|
|
$
|
2.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other Financial Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by / (used in):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating activities
|
$
|
1,251
|
|
|
|
$
|
2,294
|
|
|
$
|
1,359
|
|
|
$
|
972
|
|
|
$
|
398
|
|
|
$
|
1,080
|
|
Investing activities
|
(250
|
)
|
|
|
(162
|
)
|
|
(6
|
)
|
|
(3,738
|
)
|
|
(5,567
|
)
|
|
233
|
|
||||||
Financing activities
|
(2,063
|
)
|
|
|
(2,111
|
)
|
|
(1,655
|
)
|
|
2,698
|
|
|
5,483
|
|
|
(1,456
|
)
|
▪
|
Boarded approximately
$121,000
UPB including
$60,000
subservicing UPB
|
▪
|
Improved delinquency rate, measured as loans that are 60 or more days behind in payments, to
2.2%
|
▪
|
Provided approximately
59,800
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership
|
▪
|
Funded
97,252
loans totaling
$21,201
, which included
$9,688
related to retaining customers from our servicing portfolio
|
▪
|
Achieved a recapture rate of
25%
|
▪
|
Expanded third-party revenues to
43%
driven primarily in our exchange and title and close businesses, as well as through acquisition of Assurant Mortgage Solutions title, valuations, and field services businesses
|
▪
|
Sold
10,872
properties and completed
1,072,534
Xome service orders
|
▪
|
Acquired Assurant Mortgage Solutions for
$38
in cash with additional consideration dependent on the achievement of certain future performance targets. The acquisition expands Xome’s footprint and grows its third-party client portfolio across its valuation, title and field services businesses.
|
Table 1. Consolidated Operations
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Revenues - operational
|
$
|
758
|
|
|
|
$
|
1,000
|
|
|
$
|
1,758
|
|
|
$
|
1,810
|
|
|
$
|
(52
|
)
|
|
(3
|
)%
|
Revenues - Mark-to-market
|
(164
|
)
|
|
|
196
|
|
|
32
|
|
|
(160
|
)
|
|
192
|
|
|
120
|
%
|
|||||
Total revenues
|
594
|
|
|
|
1,196
|
|
|
1,790
|
|
|
1,650
|
|
|
140
|
|
|
8
|
%
|
|||||
Expenses
|
707
|
|
|
|
945
|
|
|
1,652
|
|
|
1,475
|
|
|
177
|
|
|
12
|
%
|
|||||
Other income (expense), net
|
(24
|
)
|
|
|
(49
|
)
|
|
(73
|
)
|
|
(131
|
)
|
|
58
|
|
|
44
|
%
|
|||||
(Loss) income before income tax expense
|
(137
|
)
|
|
|
202
|
|
|
65
|
|
|
44
|
|
|
21
|
|
|
48
|
%
|
|||||
Less: Income tax (benefit) expense
|
(1,021
|
)
|
|
|
48
|
|
|
(973
|
)
|
|
13
|
|
|
(986
|
)
|
|
(7,585
|
)%
|
|||||
Net income
|
884
|
|
|
|
154
|
|
|
1,038
|
|
|
31
|
|
|
1,007
|
|
|
3,248
|
%
|
|||||
Less: Income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
(1
|
)
|
|
(100
|
)%
|
|||||
Net income attributable to Successor/Predecessor
|
$
|
884
|
|
|
|
$
|
154
|
|
|
$
|
1,038
|
|
|
$
|
30
|
|
|
$
|
1,008
|
|
|
3,360
|
%
|
Effective tax rate
(2)
|
742.4
|
%
|
|
|
23.8
|
%
|
|
|
|
28.9
|
%
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) before income tax expense (benefit) by operating and non-operating segments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing
|
$
|
(12
|
)
|
|
|
$
|
285
|
|
|
$
|
273
|
|
|
$
|
76
|
|
|
$
|
197
|
|
|
259
|
%
|
Originations
|
32
|
|
|
|
62
|
|
|
94
|
|
|
153
|
|
|
(59
|
)
|
|
(39
|
)%
|
|||||
Xome
|
(1
|
)
|
|
|
35
|
|
|
34
|
|
|
53
|
|
|
(19
|
)
|
|
(36
|
)%
|
|||||
Corporate and other
|
(156
|
)
|
|
|
(180
|
)
|
|
(336
|
)
|
|
(238
|
)
|
|
(98
|
)
|
|
41
|
%
|
|||||
Consolidated (loss) income before income tax expense (benefit)
|
$
|
(137
|
)
|
|
|
$
|
202
|
|
|
$
|
65
|
|
|
$
|
44
|
|
|
$
|
21
|
|
|
48
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
(2)
|
Effective tax rate is calculated using whole numbers.
|
Table 1.1. Consolidated Operations
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Revenues - operational
|
$
|
1,810
|
|
|
$
|
2,092
|
|
|
$
|
(282
|
)
|
|
(13
|
)%
|
Revenues - Mark-to-market
|
(160
|
)
|
|
(177
|
)
|
|
17
|
|
|
(10
|
)%
|
|||
Total revenues
|
1,650
|
|
|
1,915
|
|
|
(265
|
)
|
|
(14
|
)%
|
|||
Expenses
|
1,475
|
|
|
1,644
|
|
|
(169
|
)
|
|
(10
|
)%
|
|||
Other income (expense), net
|
(131
|
)
|
|
(242
|
)
|
|
111
|
|
|
(46
|
)%
|
|||
Income before income tax expense
|
44
|
|
|
29
|
|
|
15
|
|
|
52
|
%
|
|||
Less: Income tax expense
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
%
|
|||
Net income
|
31
|
|
|
16
|
|
|
15
|
|
|
94
|
%
|
|||
Less: Income (loss) attributable to non-controlling interests
|
1
|
|
|
(3
|
)
|
|
4
|
|
|
(133
|
)%
|
|||
Net income attributable to Predecessor
|
$
|
30
|
|
|
$
|
19
|
|
|
$
|
11
|
|
|
58
|
%
|
Effective tax rate
(1)
|
28.9
|
%
|
|
45.2
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Income (loss) before income tax expense (benefit) by operating and non-operating segments:
|
|
|
|
|
|
|
|
|||||||
Servicing
|
$
|
76
|
|
|
$
|
24
|
|
|
$
|
52
|
|
|
217
|
%
|
Originations
|
153
|
|
|
215
|
|
|
(62
|
)
|
|
(29
|
)%
|
|||
Xome
|
53
|
|
|
69
|
|
|
(16
|
)
|
|
(23
|
)%
|
|||
Corporate and other
|
(238
|
)
|
|
(279
|
)
|
|
41
|
|
|
(15
|
)%
|
|||
Consolidated income before income tax expense (benefit)
|
$
|
44
|
|
|
$
|
29
|
|
|
$
|
15
|
|
|
52
|
%
|
(1)
|
Effective tax rate is calculated using whole numbers.
|
Table 2. Servicing Operations
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational
|
$
|
464
|
|
|
|
$
|
656
|
|
|
$
|
1,120
|
|
|
$
|
1,168
|
|
|
$
|
(48
|
)
|
|
(4
|
)%
|
Amortization
|
(64
|
)
|
|
|
(112
|
)
|
|
(176
|
)
|
|
(242
|
)
|
|
(66
|
)
|
|
(27
|
)%
|
|||||
Mark-to-market
|
(164
|
)
|
|
|
196
|
|
|
32
|
|
|
(160
|
)
|
|
192
|
|
|
120
|
%
|
|||||
Total revenues
|
236
|
|
|
|
740
|
|
|
976
|
|
|
766
|
|
|
210
|
|
|
27
|
%
|
|||||
Expenses
|
303
|
|
|
|
474
|
|
|
777
|
|
|
691
|
|
|
86
|
|
|
12
|
%
|
|||||
Total other income (expenses), net
|
55
|
|
|
|
19
|
|
|
74
|
|
|
1
|
|
|
73
|
|
|
7,300
|
%
|
|||||
Income (loss) before income tax expense (benefit)
|
$
|
(12
|
)
|
|
|
$
|
285
|
|
|
$
|
273
|
|
|
$
|
76
|
|
|
$
|
197
|
|
|
259
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 2.1 Servicing Operations
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Revenues
|
|
|
|
|
|
|
|
|||||||
Operational
|
$
|
1,168
|
|
|
$
|
1,244
|
|
|
$
|
(76
|
)
|
|
(6
|
)%
|
Amortization
|
(242
|
)
|
|
(314
|
)
|
|
(72
|
)
|
|
(23
|
)%
|
|||
Mark-to-market
|
(160
|
)
|
|
(177
|
)
|
|
17
|
|
|
10
|
%
|
|||
Total revenues
|
766
|
|
|
753
|
|
|
13
|
|
|
2
|
%
|
|||
Expenses
|
691
|
|
|
634
|
|
|
57
|
|
|
9
|
%
|
|||
Total other income (expenses), net
|
1
|
|
|
(95
|
)
|
|
96
|
|
|
101
|
%
|
|||
Income before income tax expense
|
$
|
76
|
|
|
$
|
24
|
|
|
$
|
52
|
|
|
217
|
%
|
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
Successor
|
|
|
Predecessor
|
||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
|||||||||
Balance - beginning of year
|
$
|
465,819
|
|
|
|
$
|
473,256
|
|
|
$
|
434,295
|
|
|
$
|
367,800
|
|
Additions:
|
|
|
|
|
|
|
|
|
||||||||
Originations
|
8,936
|
|
|
|
12,327
|
|
|
19,421
|
|
|
20,194
|
|
||||
Acquisitions
|
82,559
|
|
|
|
25,987
|
|
|
155,226
|
|
|
129,061
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
|
||||||||
Dispositions
|
(10,140
|
)
|
|
|
(1,877
|
)
|
|
(51,839
|
)
|
|
(1,625
|
)
|
||||
Principal reductions and other
|
(7,837
|
)
|
|
|
(11,240
|
)
|
|
(17,893
|
)
|
|
(14,399
|
)
|
||||
Voluntary reductions
(1)
|
(18,131
|
)
|
|
|
(29,172
|
)
|
|
(58,191
|
)
|
|
(56,960
|
)
|
||||
Involuntary reductions
(2)
|
(1,689
|
)
|
|
|
(3,241
|
)
|
|
(7,245
|
)
|
|
(9,546
|
)
|
||||
Net changes in loans serviced by others
|
(150
|
)
|
|
|
(221
|
)
|
|
(518
|
)
|
|
(230
|
)
|
||||
Balance - end of year
|
$
|
519,367
|
|
|
|
$
|
465,819
|
|
|
$
|
473,256
|
|
|
$
|
434,295
|
|
(1)
|
Voluntary reductions are related to loan payoffs by customers.
|
(2)
|
Involuntary reductions refer to loan chargeoffs.
|
Table 4. Servicing - Revenues
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
||||||||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 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
|
$
|
367
|
|
|
17
|
|
|
|
$
|
501
|
|
|
17
|
|
|
$
|
868
|
|
|
17
|
|
$
|
899
|
|
|
18
|
|
$
|
(31
|
)
|
|
(1)
|
|
(3)%
|
|
(6)%
|
Modification fees
(3)
|
8
|
|
|
—
|
|
|
|
21
|
|
|
1
|
|
|
29
|
|
|
1
|
|
41
|
|
|
1
|
|
(12
|
)
|
|
—
|
|
(29)%
|
|
—%
|
|||||
Incentive fees
(3)
|
5
|
|
|
—
|
|
|
|
13
|
|
|
—
|
|
|
18
|
|
|
—
|
|
33
|
|
|
—
|
|
(15
|
)
|
|
—
|
|
(45)%
|
|
—%
|
|||||
Late payment fees
(3)
|
29
|
|
|
2
|
|
|
|
45
|
|
|
2
|
|
|
74
|
|
|
2
|
|
82
|
|
|
2
|
|
(8
|
)
|
|
—
|
|
(10)%
|
|
—%
|
|||||
Other ancillary revenues
(3)
|
40
|
|
|
2
|
|
|
|
63
|
|
|
2
|
|
|
103
|
|
|
2
|
|
154
|
|
|
3
|
|
(51
|
)
|
|
(1)
|
|
(33)%
|
|
(33)%
|
|||||
Total forward MSR operational revenue
|
449
|
|
|
21
|
|
|
|
643
|
|
|
22
|
|
|
1,092
|
|
|
22
|
|
1,209
|
|
|
24
|
|
(117
|
)
|
|
(2)
|
|
(10)%
|
|
(8)%
|
|||||
Base subservicing fee and other subservicing revenue
(3)
|
67
|
|
|
3
|
|
|
|
87
|
|
|
2
|
|
|
154
|
|
|
3
|
|
131
|
|
|
3
|
|
23
|
|
|
—
|
|
18%
|
|
—%
|
|||||
Reverse servicing fees
|
16
|
|
|
1
|
|
|
|
37
|
|
|
1
|
|
|
53
|
|
|
1
|
|
58
|
|
|
1
|
|
(5
|
)
|
|
—
|
|
(9)%
|
|
—%
|
|||||
Total servicing fee revenue
|
532
|
|
|
25
|
|
|
|
767
|
|
|
25
|
|
|
1,299
|
|
|
26
|
|
1,398
|
|
|
28
|
|
(99
|
)
|
|
(2)
|
|
(7)%
|
|
(7)%
|
|||||
MSR financing liability costs
|
(20
|
)
|
|
(1
|
)
|
|
|
(33
|
)
|
|
(1
|
)
|
|
(53
|
)
|
|
(1)
|
|
(72
|
)
|
|
(2)
|
|
(19
|
)
|
|
(1)
|
|
26%
|
|
50%
|
|||||
Excess spread payments - principal
|
(48
|
)
|
|
(2
|
)
|
|
|
(78
|
)
|
|
(3
|
)
|
|
(126
|
)
|
|
(2)
|
|
(158
|
)
|
|
(3)
|
|
(32
|
)
|
|
(1)
|
|
20%
|
|
33%
|
|||||
Total operational revenue
|
464
|
|
|
22
|
|
|
|
656
|
|
|
21
|
|
|
1,120
|
|
|
23
|
|
1,168
|
|
|
23
|
|
(48
|
)
|
|
—
|
|
(4)%
|
|
—%
|
|||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward MSR amortization
|
(128
|
)
|
|
(6
|
)
|
|
|
(190
|
)
|
|
(7
|
)
|
|
(318
|
)
|
|
(6)
|
|
(399
|
)
|
|
(8)
|
|
(81
|
)
|
|
(2)
|
|
20%
|
|
25%
|
|||||
Excess spread accretion
|
53
|
|
|
2
|
|
|
|
78
|
|
|
3
|
|
|
131
|
|
|
3
|
|
161
|
|
|
3
|
|
(30
|
)
|
|
—
|
|
(19)%
|
|
—%
|
|||||
Reverse MSL accretion
(4)
|
15
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
—
|
|
|
—
|
|
15
|
|
|
—
|
|
100%
|
|
—%
|
|||||
Reverse MSR amortization
|
(4
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
(4
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—%
|
|
—%
|
|||||
Total amortization
|
(64
|
)
|
|
(3
|
)
|
|
|
(112
|
)
|
|
(4
|
)
|
|
(176
|
)
|
|
(3)
|
|
(242
|
)
|
|
(5)
|
|
(66
|
)
|
|
(2)
|
|
(27)%
|
|
(40)%
|
|||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MSR MTM
(5)
|
(153
|
)
|
|
(7
|
)
|
|
|
295
|
|
|
10
|
|
|
142
|
|
|
3
|
|
(163
|
)
|
|
(3)
|
|
305
|
|
|
6
|
|
(187)%
|
|
(200)%
|
|||||
Excess spread / financing MTM
|
(11
|
)
|
|
(1
|
)
|
|
|
(99
|
)
|
|
(3
|
)
|
|
(110
|
)
|
|
(2)
|
|
3
|
|
|
—
|
|
(113
|
)
|
|
(2)
|
|
(3,767)%
|
|
(100)%
|
|||||
Total MTM adjustments
|
(164
|
)
|
|
(8
|
)
|
|
|
196
|
|
|
7
|
|
|
32
|
|
|
1
|
|
(160
|
)
|
|
(3)
|
|
192
|
|
|
4
|
|
(120)%
|
|
133%
|
|||||
Total revenues - Servicing
|
$
|
236
|
|
|
11
|
|
|
|
$
|
740
|
|
|
24
|
|
|
$
|
976
|
|
|
21
|
|
$
|
766
|
|
|
15
|
|
$
|
210
|
|
|
6
|
|
27%
|
|
40%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
(2)
|
Calculated basis points (“bps”) are as follows: Annualized $ amount/Total Average UPB X 10000.
|
(3)
|
Certain ancillary and other non-base fees related to subservicing operations are separately presented as other subservicing revenues.
|
(4)
|
The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion.
|
(5)
|
MSR MTM includes fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM reflected is net of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. These negative modeled cash flows totaled
$25
for the
five months ended December 31, 2018
. These negative modeled cash flows for the Predecessor totaled
$38
and
$72
for the
seven months ended July 31, 2018
and
the year ended December 31, 2017
, respectively.
|
Table 4.1 Servicing - Revenues
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year Ended December 31,
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||||||||||||
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
||||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Base servicing fees
|
$
|
899
|
|
|
18
|
|
$
|
1,001
|
|
|
24
|
|
$
|
(102
|
)
|
|
(6
|
)
|
|
(10
|
)%
|
|
(25
|
)%
|
Modification fees
(2)
|
41
|
|
|
1
|
|
85
|
|
|
2
|
|
(44
|
)
|
|
(1
|
)
|
|
(52
|
)%
|
|
(50
|
)%
|
|||
Incentive fees
(2)
|
33
|
|
|
—
|
|
28
|
|
|
1
|
|
5
|
|
|
(1
|
)
|
|
18
|
%
|
|
(100
|
)%
|
|||
Late payment fees
(2)
|
82
|
|
|
2
|
|
81
|
|
|
2
|
|
1
|
|
|
—
|
|
|
1
|
%
|
|
—
|
%
|
|||
Other ancillary revenues
(2)
|
154
|
|
|
3
|
|
240
|
|
|
6
|
|
(86
|
)
|
|
(3
|
)
|
|
(36
|
)%
|
|
(50
|
)%
|
|||
Total forward MSR operational revenue
|
1,209
|
|
|
24
|
|
1,435
|
|
|
35
|
|
(226
|
)
|
|
(11
|
)
|
|
(16
|
)%
|
|
(31
|
)%
|
|||
Base subservicing fee and other subservicing revenue
(2)
|
131
|
|
|
3
|
|
50
|
|
|
1
|
|
81
|
|
|
2
|
|
|
162
|
%
|
|
200
|
%
|
|||
Reverse servicing fees
|
58
|
|
|
1
|
|
57
|
|
|
2
|
|
1
|
|
|
(1
|
)
|
|
2
|
%
|
|
(50
|
)%
|
|||
Total servicing fee revenue
|
1,398
|
|
|
28
|
|
1,542
|
|
|
38
|
|
(144
|
)
|
|
(10
|
)
|
|
(9
|
)%
|
|
(26
|
)%
|
|||
MSR financing liability costs
|
(72
|
)
|
|
(2)
|
|
(100
|
)
|
|
(2)
|
|
(28
|
)
|
|
—
|
|
|
(28
|
)%
|
|
—
|
%
|
|||
Excess spread payments - principal
|
(158
|
)
|
|
(3)
|
|
(198
|
)
|
|
(5)
|
|
(40
|
)
|
|
(2
|
)
|
|
(20
|
)%
|
|
(40
|
)%
|
|||
Total operational revenue
|
1,168
|
|
|
23
|
|
1,244
|
|
|
31
|
|
(76
|
)
|
|
(8
|
)
|
|
(6
|
)%
|
|
(26
|
)%
|
|||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Forward MSR amortization
|
(399
|
)
|
|
(8)
|
|
(513
|
)
|
|
(13)
|
|
(114
|
)
|
|
(5
|
)
|
|
(22
|
)%
|
|
(38
|
)%
|
|||
Excess spread accretion
|
161
|
|
|
3
|
|
200
|
|
|
5
|
|
(39
|
)
|
|
(2
|
)
|
|
(20
|
)%
|
|
(40
|
)%
|
|||
Reverse MSR amortization
|
(4
|
)
|
|
—
|
|
(1
|
)
|
|
—
|
|
3
|
|
|
—
|
|
|
300
|
%
|
|
—
|
%
|
|||
Total amortization
|
(242
|
)
|
|
(5)
|
|
(314
|
)
|
|
(8)
|
|
(72
|
)
|
|
(3
|
)
|
|
(23
|
)%
|
|
(38
|
)%
|
|||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MSR MTM
(3)
|
(163
|
)
|
|
(3)
|
|
(195
|
)
|
|
(5)
|
|
32
|
|
|
2
|
|
|
16
|
%
|
|
40
|
%
|
|||
Excess spread / financing MTM
|
3
|
|
|
—
|
|
18
|
|
|
1
|
|
(15
|
)
|
|
(1
|
)
|
|
(83
|
)%
|
|
(100
|
)%
|
|||
Total MTM adjustments
|
(160
|
)
|
|
(3)
|
|
(177
|
)
|
|
(4)
|
|
17
|
|
|
1
|
|
|
10
|
%
|
|
25
|
%
|
|||
Total revenues - Servicing
|
$
|
766
|
|
|
15
|
|
$
|
753
|
|
|
19
|
|
$
|
13
|
|
|
(4
|
)
|
|
2
|
%
|
|
(21
|
)%
|
(1)
|
Calculated basis points (“bps”) are as follows: Annual $ amount/Total Average UPB X 10000.
|
(2)
|
Certain ancillary and other non-base fees related to subservicing operations are separately presented as other subservicing revenues.
|
(3)
|
MSR MTM includes fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM reflected is net of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. In
2017
and
2016
, these negative modeled cash flows for the Predecessor totaled
$72
and
$81
, respectively.
|
Table 5. Servicing Portfolio - Unpaid Principal Balances
|
Successor
|
|
|
Predecessor
|
|||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
|||||||||
Average UPB
|
|
|
|
|
|
|
|
|
|
||||||||
Forward MSRs - fair value
|
$
|
282,806
|
|
|
|
$
|
279,520
|
|
|
|
$
|
298,511
|
|
|
$
|
326,477
|
|
Subservicing and other
(1)
|
203,341
|
|
|
|
187,407
|
|
|
|
170,131
|
|
|
50,965
|
|
||||
Reverse loans - amortized cost
|
29,837
|
|
|
|
33,380
|
|
|
|
36,700
|
|
|
28,457
|
|
||||
Total average UPB
|
$
|
515,984
|
|
|
|
$
|
500,307
|
|
|
|
$
|
505,342
|
|
|
$
|
405,899
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||||
Ending UPB
|
|
|
|
|
|
|
|
|
|
||||||||
Forward MSRs - fair value
|
|
|
|
|
|
|
|
|
|
||||||||
Agency
|
|
|
|
$
|
229,108
|
|
|
|
$
|
202,868
|
|
|
$
|
227,062
|
|
||
Non-agency
|
|
|
|
66,373
|
|
|
|
78,512
|
|
|
85,014
|
|
|||||
Total MSRs - fair value
|
|
|
|
295,481
|
|
|
|
281,380
|
|
|
312,076
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
||||||||
Agency
|
|
|
|
208,607
|
|
|
|
183,519
|
|
|
110,848
|
|
|||||
Non-agency
|
|
|
|
15,279
|
|
|
|
8,357
|
|
|
11,371
|
|
|||||
Total subservicing and other
|
|
|
|
223,886
|
|
|
|
191,876
|
|
|
122,219
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||
Reverse loans - amortized cost
|
|
|
|
|
|
|
|
|
|
||||||||
MSR
|
|
|
|
3,940
|
|
|
|
9,395
|
|
|
10,351
|
|
|||||
MSL
|
|
|
|
16,538
|
|
|
|
15,729
|
|
|
17,574
|
|
|||||
Securitized loans
|
|
|
|
7,937
|
|
|
|
9,988
|
|
|
11,015
|
|
|||||
Total reverse portfolio serviced
|
|
|
|
28,415
|
|
|
|
35,112
|
|
|
38,940
|
|
|||||
Total ending UPB
|
|
|
|
$
|
547,782
|
|
|
|
$
|
508,368
|
|
|
$
|
473,235
|
|
(1)
|
Subservicing and other includes (i) loans we service for others, (ii) residential mortgage loans originated but have yet to be sold and (iii) agency REO balances for which we own the mortgage servicing rights.
|
Table 6. Forward Loan Modifications and Workout Units
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
Amount Change
|
|
% Change
|
|||||||
Modifications and workout units:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
HAMP modifications
|
5
|
|
|
|
38
|
|
|
43
|
|
|
7,205
|
|
|
(7,162
|
)
|
|
(99
|
)%
|
Non-HAMP modifications
|
13,120
|
|
|
|
16,828
|
|
|
29,948
|
|
|
23,557
|
|
|
6,391
|
|
|
27
|
%
|
Workouts
|
7,066
|
|
|
|
22,700
|
|
|
29,766
|
|
|
44,467
|
|
|
(14,701
|
)
|
|
(33
|
)%
|
Total modification and workout units
|
20,191
|
|
|
|
39,566
|
|
|
59,757
|
|
|
75,229
|
|
|
(15,472
|
)
|
|
(21
|
)%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 6.1. Forward Loan Modifications and Workout Units
|
Predecessor
|
|
|
|
|
||||||
Year Ended December 31,
|
|
Amount Change
|
|
% Change
|
|||||||
2017
|
|
2016
|
|
|
|||||||
Modifications and workout units:
|
|
|
|
|
|
|
|
||||
HAMP modifications
|
7,205
|
|
|
15,525
|
|
|
(8,320
|
)
|
|
(54
|
)%
|
Non-HAMP modifications
|
23,557
|
|
|
23,280
|
|
|
277
|
|
|
1
|
%
|
Workouts
|
44,467
|
|
|
24,072
|
|
|
20,395
|
|
|
85
|
%
|
Total modification and workout units
|
75,229
|
|
|
62,877
|
|
|
12,352
|
|
|
20
|
%
|
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio
(1)
|
Successor
|
|
|
Predecessor
|
||||||||
December 31, 2018
|
|
|
December 31, 2017
|
|
December 31, 2016
|
|||||||
Loan count
|
3,133,784
|
|
|
|
3,039,495
|
|
|
2,637,254
|
|
|||
Average loan amount
(2)
|
$
|
165,748
|
|
|
|
$
|
155,608
|
|
|
$
|
164,818
|
|
Average coupon - credit sensitive
(3)
|
4.9
|
%
|
|
|
4.7
|
%
|
|
4.7
|
%
|
|||
Average coupon - interest sensitive
(3)
|
4.2
|
%
|
|
|
4.2
|
%
|
|
4.2
|
%
|
|||
60+ delinquent (% of loans)
(4)
|
2.2
|
%
|
|
|
3.4
|
%
|
|
4.7
|
%
|
|||
90+ delinquent (% of loans)
(4)
|
1.9
|
%
|
|
|
2.8
|
%
|
|
4.2
|
%
|
|||
120+ delinquent (% of loans)
(4)
|
1.7
|
%
|
|
|
2.4
|
%
|
|
3.9
|
%
|
|||
Total prepayment speed (12-month constant pre-payment rate)
|
9.1
|
%
|
|
|
12.7
|
%
|
|
16.9
|
%
|
(1)
|
Characteristics and key performance metrics of our servicing portfolio exclude UPB and loan counts acquired but not yet boarded and currently serviced by others.
|
(2)
|
Loan amount is presented in whole dollar amounts.
|
(3)
|
The weighted average coupon amounts for our credit and interest sensitive pools presented in the table above are only reflective of our owned forward MSR portfolio that is reported at fair value.
|
(4)
|
Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan.
|
Table 8. Servicer Ratings
|
Successor
|
|
|
Predecessor
|
|
Predecessor
|
Fitch
|
|
|
S&P
|
|
Moody’s
|
|
Rating date
|
November 2018
|
|
|
January &
February 2018 |
|
March 2019
|
|
|
|
|
|
|
|
Residential
|
RPS2-
|
|
|
Above Average
|
|
Not Rated
|
Master Servicer
|
RMS2+
|
|
|
Above Average
|
|
SQ2
|
Special Servicer
|
RSS2-
|
|
|
Above Average
|
|
Not Rated
|
Subprime Servicer
|
RPS2-
|
|
|
Above Average
|
|
Not Rated
|
|
|
|
|
|
|
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
||||||
S&P’s Rating Scale of Strong to Weak
|
||||||
Moody’s Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)
|
Table 9. Servicing - Expenses
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||||||
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||||
Salaries, wages and benefits
|
$
|
131
|
|
|
6
|
|
|
$
|
175
|
|
|
6
|
|
$
|
306
|
|
|
6
|
|
$
|
290
|
|
|
6
|
|
$
|
16
|
|
|
—
|
|
6
|
%
|
|
—%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Servicing support fees
|
59
|
|
|
3
|
|
|
71
|
|
|
2
|
|
130
|
|
|
3
|
|
134
|
|
|
3
|
|
(4
|
)
|
|
—
|
|
(3
|
)%
|
|
—%
|
|||||
Corporate and other general and administrative expenses
|
66
|
|
|
3
|
|
|
80
|
|
|
3
|
|
146
|
|
|
3
|
|
127
|
|
|
3
|
|
19
|
|
|
—
|
|
15
|
%
|
|
—%
|
|||||
Foreclosure and other liquidation related expenses
|
38
|
|
|
2
|
|
|
133
|
|
|
4
|
|
171
|
|
|
3
|
|
117
|
|
|
2
|
|
54
|
|
|
1
|
|
46
|
%
|
|
50%
|
|||||
Depreciation and amortization
|
9
|
|
|
—
|
|
|
15
|
|
|
—
|
|
24
|
|
|
—
|
|
23
|
|
|
—
|
|
1
|
|
|
—
|
|
4
|
%
|
|
—%
|
|||||
Total general and administrative expenses
|
172
|
|
|
8
|
|
|
299
|
|
|
9
|
|
471
|
|
|
9
|
|
401
|
|
|
8
|
|
70
|
|
|
1
|
|
17
|
%
|
|
13%
|
|||||
Total expenses - Servicing
|
$
|
303
|
|
|
14
|
|
|
$
|
474
|
|
|
15
|
|
$
|
777
|
|
|
15
|
|
$
|
691
|
|
|
14
|
|
$
|
86
|
|
|
1
|
|
12
|
%
|
|
7%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 9.1. Servicing - Expenses
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||
Year Ended December 31,
|
|
|
|
|
|
|
|
|
||||||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||||||||||
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
||||||||
Salaries, wages and benefits
|
$
|
290
|
|
|
6
|
|
$
|
265
|
|
|
7
|
|
$
|
25
|
|
|
(1)
|
|
9
|
%
|
|
(14)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Servicing support fees
|
134
|
|
|
3
|
|
147
|
|
|
4
|
|
(13
|
)
|
|
(1)
|
|
(9
|
)%
|
|
(25)%
|
|||
Corporate and other general and administrative expenses
|
127
|
|
|
3
|
|
136
|
|
|
3
|
|
(9
|
)
|
|
—
|
|
(7
|
)%
|
|
—%
|
|||
Foreclosure and other liquidation related expenses
|
117
|
|
|
2
|
|
63
|
|
|
2
|
|
54
|
|
|
—
|
|
86
|
%
|
|
—%
|
|||
Depreciation and amortization
|
23
|
|
|
—
|
|
23
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
%
|
|
—%
|
|||
Total general and administrative expenses
|
401
|
|
|
8
|
|
369
|
|
|
9
|
|
32
|
|
|
(1)
|
|
9
|
%
|
|
(11)%
|
|||
Total expenses - Servicing
|
$
|
691
|
|
|
14
|
|
$
|
634
|
|
|
16
|
|
$
|
57
|
|
|
(2)
|
|
9
|
%
|
|
(13)%
|
Table 10. Servicing - Other Income (Expense), Net
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||||||||||||||||||||
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||||||||||
Reverse mortgage interest income
|
$
|
206
|
|
|
10
|
|
|
|
$
|
274
|
|
|
9
|
|
|
$
|
480
|
|
|
9
|
|
|
$
|
490
|
|
|
9
|
|
|
$
|
(10
|
)
|
|
—
|
|
|
(2
|
)%
|
|
—
|
%
|
Other interest income
|
16
|
|
|
1
|
|
|
|
14
|
|
|
1
|
|
|
30
|
|
|
1
|
|
|
37
|
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
(19
|
)%
|
|
—
|
%
|
|||||
Interest income
|
222
|
|
|
11
|
|
|
|
288
|
|
|
10
|
|
|
510
|
|
|
10
|
|
|
527
|
|
|
10
|
|
|
(17
|
)
|
|
—
|
|
|
(3
|
)%
|
|
—
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reverse mortgage interest expense
|
(147
|
)
|
|
(6
|
)
|
|
|
(221
|
)
|
|
(7
|
)
|
|
(368
|
)
|
|
(7
|
)
|
|
(382
|
)
|
|
(7
|
)
|
|
(14
|
)
|
|
—
|
|
|
(4
|
)%
|
|
—
|
%
|
|||||
Advance interest expense
|
(13
|
)
|
|
(1
|
)
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(32
|
)
|
|
(1
|
)
|
|
(35
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(9
|
)%
|
|
—
|
%
|
|||||
Other interest expense
|
(13
|
)
|
|
(1
|
)
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(41
|
)
|
|
(1
|
)
|
|
(106
|
)
|
|
(2
|
)
|
|
(65
|
)
|
|
1
|
|
|
(61
|
)%
|
|
(50
|
)%
|
|||||
Interest expense
|
(173
|
)
|
|
(8
|
)
|
|
|
(268
|
)
|
|
(9
|
)
|
|
(441
|
)
|
|
(9
|
)
|
|
(523
|
)
|
|
(10
|
)
|
|
(82
|
)
|
|
1
|
|
|
(16
|
)%
|
|
(10
|
)%
|
|||||
Other income (expense)
|
6
|
|
|
—
|
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
(267
|
)%
|
|
—
|
%
|
|||||
Total other income (expense), net - Servicing
|
$
|
55
|
|
|
3
|
|
|
|
$
|
19
|
|
|
1
|
|
|
$
|
74
|
|
|
1
|
|
|
$
|
1
|
|
|
—
|
|
|
$
|
73
|
|
|
1
|
|
|
7,300
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average cost - advance facilities
|
4.1
|
%
|
|
|
|
|
3.9
|
%
|
|
|
|
4.0
|
%
|
|
|
|
3.1
|
%
|
|
|
|
0.9
|
%
|
|
|
|
29
|
%
|
|
|
|||||||||||
Weighted average cost - excess spread financing
|
8.8
|
%
|
|
|
|
|
8.8
|
%
|
|
|
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
|
|
(0.1
|
)%
|
|
|
|
(1
|
)%
|
|
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 10.1. Servicing - Other Income (Expense), Net
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year Ended December 31,
|
|
|
|
|
|
|
|
|
||||||||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||||||||||||
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||
Reverse mortgage interest income
|
$
|
490
|
|
|
9
|
|
$
|
344
|
|
|
9
|
|
$
|
146
|
|
|
—
|
|
|
42
|
%
|
|
—
|
%
|
Other interest income
|
37
|
|
|
1
|
|
3
|
|
|
—
|
|
34
|
|
|
1
|
|
|
1,133
|
%
|
|
100
|
%
|
|||
Interest income
|
527
|
|
|
10
|
|
347
|
|
|
9
|
|
180
|
|
|
1
|
|
|
52
|
%
|
|
11
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reverse mortgage interest expense
|
(382
|
)
|
|
(7)
|
|
(269
|
)
|
|
(7)
|
|
113
|
|
|
—
|
|
|
42
|
%
|
|
—
|
%
|
|||
Advance interest expense
|
(35
|
)
|
|
(1)
|
|
(53
|
)
|
|
(1)
|
|
(18
|
)
|
|
—
|
|
|
(34
|
)%
|
|
—
|
%
|
|||
Other interest expense
|
(106
|
)
|
|
(2)
|
|
(120
|
)
|
|
(3)
|
|
(14
|
)
|
|
1
|
|
|
(12
|
)%
|
|
33
|
%
|
|||
Interest expense
|
(523
|
)
|
|
(10)
|
|
(442
|
)
|
|
(11)
|
|
81
|
|
|
1
|
|
|
18
|
%
|
|
9
|
%
|
|||
Other expense
|
(3
|
)
|
|
—
|
|
—
|
|
|
—
|
|
(3
|
)
|
|
—
|
|
|
(100
|
)%
|
|
—
|
%
|
|||
Total other income (expense), net - Servicing
|
$
|
1
|
|
|
—
|
|
$
|
(95
|
)
|
|
(2)
|
|
$
|
96
|
|
|
2
|
|
|
101
|
%
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Weighted average cost - advance facilities
|
3.1
|
%
|
|
|
|
2.8
|
%
|
|
|
|
0.3
|
%
|
|
|
|
10.7
|
%
|
|
|
|||||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
|
—
|
%
|
|
|
|
—
|
%
|
|
|
Table 11. Serviced Portfolios and Related Liabilities
|
Successor
|
|
|
Predecessor
|
||||||||||||||||||
December 31, 2018
|
|
|
December 31, 2017
|
|||||||||||||||||||
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|||||||||||
Forward MSRs
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
229,108
|
|
|
$
|
3,027
|
|
|
4.5
|
%
|
|
|
$
|
202,868
|
|
|
$
|
2,251
|
|
|
4.5
|
%
|
Non-agency
|
66,373
|
|
|
638
|
|
|
4.8
|
%
|
|
|
78,512
|
|
|
686
|
|
|
4.6
|
%
|
||||
Total forward MSRs - fair value
|
295,481
|
|
|
3,665
|
|
|
4.5
|
%
|
|
|
281,380
|
|
|
2,937
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
208,607
|
|
|
N/A
|
|
|
N/A
|
|
|
|
183,519
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
15,279
|
|
|
N/A
|
|
|
N/A
|
|
|
|
8,357
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
223,886
|
|
|
N/A
|
|
|
N/A
|
|
|
|
191,876
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
3,940
|
|
|
11
|
|
|
N/A
|
|
|
|
9,395
|
|
|
4
|
|
|
N/A
|
|
||||
MSL
|
16,538
|
|
|
(71
|
)
|
|
N/A
|
|
|
|
15,729
|
|
|
(41
|
)
|
|
N/A
|
|
||||
Securitized loans
|
7,937
|
|
|
7,934
|
|
|
N/A
|
|
|
|
9,988
|
|
|
9,984
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
28,415
|
|
|
7,874
|
|
|
N/A
|
|
|
|
35,112
|
|
|
9,947
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
547,782
|
|
|
$
|
11,539
|
|
|
N/A
|
|
|
|
$
|
508,368
|
|
|
$
|
12,884
|
|
|
N/A
|
|
(1)
|
Subservicing and other amounts include loans we service for others, residential mortgage loans originated but have yet to be sold, and agency REO balances for which we own the mortgage servicing rights.
|
Table 12. Fair Value MSR Valuation
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
December 31, 2018
|
|
|
December 31, 2017
|
|||||||||||||||||
UPB
|
|
Carrying Amount
|
|
bps
|
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
|||||||||
MSRs - Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
$
|
135,752
|
|
|
$
|
1,495
|
|
|
110
|
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
|
94
|
Interest sensitive
|
159,729
|
|
|
2,170
|
|
|
136
|
|
|
113,775
|
|
|
1,365
|
|
|
120
|
||||
Total MSRs - fair value
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
124
|
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
|
104
|
Table 13. MSRs - Fair Value, Roll Forward
|
Successor
|
|
|
Predecessor
|
||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|||||||
Fair value - beginning of period
|
$
|
3,413
|
|
|
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
|
|
|
||||||
Servicing resulting from mortgage loans sold
|
120
|
|
|
|
162
|
|
|
203
|
|
|||
Purchases of servicing rights
|
479
|
|
|
|
144
|
|
|
66
|
|
|||
Dispositions:
|
|
|
|
|
|
|
||||||
Sales and cancellation of servicing assets
(1)
|
(111
|
)
|
|
|
4
|
|
|
(60
|
)
|
|||
Changes in fair value:
|
|
|
|
|
|
|
||||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
|
|
||||||
Credit sensitive
|
(78
|
)
|
|
|
203
|
|
|
(32
|
)
|
|||
Interest sensitive
|
(45
|
)
|
|
|
127
|
|
|
(69
|
)
|
|||
Other changes in fair value:
|
|
|
|
|
|
|
||||||
Scheduled principal payments
|
(39
|
)
|
|
|
(45
|
)
|
|
(81
|
)
|
|||
Disposition of negative MSRs and other
(2)
|
14
|
|
|
|
27
|
|
|
68
|
|
|||
Prepayments
|
|
|
|
|
|
|
||||||
Voluntary prepayments
|
|
|
|
|
|
|
||||||
Credit sensitive
|
(36
|
)
|
|
|
(71
|
)
|
|
(168
|
)
|
|||
Interest sensitive
|
(37
|
)
|
|
|
(54
|
)
|
|
(105
|
)
|
|||
Involuntary prepayments
|
|
|
|
|
|
|
||||||
Credit sensitive
|
(7
|
)
|
|
|
(12
|
)
|
|
(28
|
)
|
|||
Interest sensitive
|
(8
|
)
|
|
|
(9
|
)
|
|
(17
|
)
|
|||
Fair value - end of period
|
$
|
3,665
|
|
|
|
$
|
3,413
|
|
|
$
|
2,937
|
|
(1)
|
Amount
for the seven months ended July 31, 2018
was related to the sale of nonperforming loans, which had a negative MSR value.
|
(2)
|
Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments.
|
Table 14. MSRs - Fair Value
|
Successor
|
|
|
Predecessor
|
||
December 31, 2018
|
|
|
December 31, 2017
|
|||
Credit Sensitive MSRs
|
|
|
|
|
||
Discount rate
|
11.3
|
%
|
|
|
11.4
|
%
|
Weighted average prepayment speeds
|
11.8
|
%
|
|
|
15.2
|
%
|
Weighted average life of loans
|
6.4 years
|
|
|
|
5.7 years
|
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
|
||
Discount rate
|
9.3
|
%
|
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
10.0
|
%
|
|
|
10.7
|
%
|
Weighted average life of loans
|
7.0 years
|
|
|
|
6.7 years
|
|
Table 15. Excess Spread Financing
|
Successor
|
|
|
Predecessor
|
|||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
|
Year ended December 31, 2017
|
|||||||
Fair value - beginning of period
|
$
|
1,039
|
|
|
|
$
|
996
|
|
|
|
$
|
1,214
|
|
Additions:
|
|
|
|
|
|
|
|
||||||
New financings
|
255
|
|
|
|
70
|
|
|
|
—
|
|
|||
Deductions:
|
|
|
|
|
|
|
|
||||||
Repayments of debt
|
(38
|
)
|
|
|
(3
|
)
|
|
|
(23
|
)
|
|||
Settlements of principal balances
|
(77
|
)
|
|
|
(105
|
)
|
|
|
(207
|
)
|
|||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||
Credit sensitive
|
23
|
|
|
|
73
|
|
|
|
16
|
|
|||
Interest sensitive
|
(18
|
)
|
|
|
8
|
|
|
|
(4
|
)
|
|||
Fair value - end of period
|
$
|
1,184
|
|
|
|
$
|
1,039
|
|
|
|
$
|
996
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||
Key Assumptions
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||
Weighted average prepayment speeds
|
|
|
|
11.0
|
%
|
|
|
13.7
|
%
|
||||
Weighted average life of loans
|
|
|
|
6.5 years
|
|
|
|
5.9 years
|
|
||||
Discount rate
|
|
|
|
10.4
|
%
|
|
|
10.8
|
%
|
||||
|
|
|
|
|
|
|
|
||||||
Credit Sensitive
|
|
|
|
|
|
|
|
||||||
Mortgage prepayment speeds
|
|
|
|
11.6
|
%
|
|
|
14.3
|
%
|
||||
Average life of mortgage loans
|
|
|
|
6.3 years
|
|
|
|
5.8 years
|
|
||||
Discount rate
|
|
|
|
11.1
|
%
|
|
|
11.1
|
%
|
||||
|
|
|
|
|
|
|
|
||||||
Interest Sensitive
|
|
|
|
|
|
|
|
||||||
Mortgage prepayment speeds
|
|
|
|
9.9
|
%
|
|
|
11.1
|
%
|
||||
Average life of mortgage loans
|
|
|
|
7.0 years
|
|
|
|
6.3 years
|
|
||||
Discount rate
|
|
|
|
9.0
|
%
|
|
|
8.9
|
%
|
Table 16. MSRs Financing Liability - Rollforward
|
Successor
|
|
|
Predecessor
|
|||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
|
Year ended December 31, 2017
|
|||||||
Fair value - beginning of period
|
$
|
26
|
|
|
|
$
|
10
|
|
|
|
$
|
27
|
|
Changes in fair value
(1)
:
|
|
|
|
|
|
|
|
||||||
Changes in valuation inputs or assumptions used in the valuation model
|
11
|
|
|
|
22
|
|
|
|
(19
|
)
|
|||
Other changes in fair value
|
(5
|
)
|
|
|
(6
|
)
|
|
|
2
|
|
|||
Fair value - end of period
|
$
|
32
|
|
|
|
$
|
26
|
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||
Weighted-Average Assumptions
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||
Advance financing rates
|
|
|
|
4.2
|
%
|
|
|
3.5
|
%
|
||||
Annual advance recovery rates
|
|
|
|
19.0
|
%
|
|
|
23.2
|
%
|
(1)
|
The changes in fair value related to our MSR financing liability primarily relate to both scheduled and unscheduled principal payments reflected in the underlying MSRs and changes in the fair value model assumptions.
|
Table 17. Leveraged Portfolio Characteristics
|
Successor
|
|
|
Predecessor
|
||||
December 31, 2018
|
|
|
December 31, 2017
|
|||||
Owned forward servicing portfolio - unencumbered
|
$
|
103,644
|
|
|
|
$
|
84,488
|
|
Owned forward servicing portfolio - encumbered
|
191,837
|
|
|
|
196,892
|
|
||
Subserviced forward servicing portfolio and other
|
223,886
|
|
|
|
191,876
|
|
||
Total unpaid principal balance
|
$
|
519,367
|
|
|
|
$
|
473,256
|
|
Table 18. Reverse - Mortgage Portfolio Characteristics
|
Successor
|
|
|
Predecessor
|
||||
December 31, 2018
|
|
|
December 31, 2017
|
|||||
Loan count
|
192,810
|
|
|
|
212,415
|
|
||
Ending unpaid principal balance
|
$
|
28,415
|
|
|
|
$
|
35,112
|
|
Average loan amount
(1)
|
$
|
147,374
|
|
|
|
$
|
165,299
|
|
Average coupon
|
4.5
|
%
|
|
|
3.8
|
%
|
||
Average borrower age
|
79
|
|
|
|
79
|
|
(1)
|
Average loan amount is presented in whole dollar amounts.
|
Table 19. Originations - Operations
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Revenues
|
$
|
181
|
|
|
|
$
|
306
|
|
|
$
|
487
|
|
|
$
|
591
|
|
|
$
|
(104
|
)
|
|
(18
|
)%
|
Expenses
|
155
|
|
|
|
245
|
|
|
400
|
|
|
439
|
|
|
(39
|
)
|
|
(9
|
)%
|
|||||
Other income (expenses), net
|
6
|
|
|
|
1
|
|
|
7
|
|
|
1
|
|
|
6
|
|
|
600
|
%
|
|||||
Income before income tax expense
|
$
|
32
|
|
|
|
$
|
62
|
|
|
$
|
94
|
|
|
$
|
153
|
|
|
$
|
(59
|
)
|
|
(39
|
)%
|
Income before taxes margin
|
17.7
|
%
|
|
|
20.3
|
%
|
|
19.3
|
%
|
|
25.9
|
%
|
|
(6.6
|
)%
|
|
(25
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenue
|
$
|
181
|
|
|
|
$
|
306
|
|
|
$
|
487
|
|
|
$
|
591
|
|
|
$
|
(104
|
)
|
|
(18
|
)%
|
Pull through adjusted lock volume
|
$
|
8,295
|
|
|
|
$
|
11,907
|
|
|
$
|
20,202
|
|
|
$
|
17,731
|
|
|
$
|
2,471
|
|
|
14
|
%
|
Revenue basis points
(2)
|
2.18
|
%
|
|
|
2.57
|
%
|
|
2.41
|
%
|
|
3.33
|
%
|
|
(0.92
|
)%
|
|
(28
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
$
|
155
|
|
|
|
$
|
245
|
|
|
$
|
400
|
|
|
$
|
439
|
|
|
$
|
(39
|
)
|
|
(9
|
)%
|
Funded volume
|
$
|
8,884
|
|
|
|
$
|
12,317
|
|
|
$
|
21,201
|
|
|
$
|
19,140
|
|
|
$
|
2,061
|
|
|
11
|
%
|
Expenses basis points
(3)
|
1.74
|
%
|
|
|
1.99
|
%
|
|
1.89
|
%
|
|
2.29
|
%
|
|
(0.40
|
)%
|
|
(17
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Margin
|
0.44
|
%
|
|
|
0.58
|
%
|
|
0.52
|
%
|
|
1.04
|
%
|
|
(0.52
|
)%
|
|
(11
|
)%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
(2)
|
Calculated on pull-through adjusted lock volume as revenue is recognized at the time of loan lock.
|
(3)
|
Calculated on funded volume as expenses are incurred based on closing of the loan.
|
Table 19.1. Originations - Operations
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Revenues
|
$
|
591
|
|
|
$
|
738
|
|
|
$
|
(147
|
)
|
|
(20
|
)%
|
Expenses
|
439
|
|
|
527
|
|
|
(88
|
)
|
|
(17
|
)%
|
|||
Other income (expenses), net
|
1
|
|
|
4
|
|
|
(3
|
)
|
|
(75
|
)%
|
|||
Income before income tax expense
|
$
|
153
|
|
|
$
|
215
|
|
|
$
|
(62
|
)
|
|
(29
|
)%
|
Income before taxes margin
|
25.9
|
%
|
|
29.1
|
%
|
|
(3.2
|
)%
|
|
(11
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
|
Predecessor
|
|
|
|
|
|||||||||
|
Year Ended December 31,
|
|
|
|
|
|||||||||
|
2017
|
|
2016
|
|
Amount Change
|
|
% Change
|
|||||||
Revenue
|
$
|
591
|
|
|
$
|
738
|
|
|
$
|
(147
|
)
|
|
(20
|
)%
|
Pull through adjusted lock volume
|
17,731
|
|
|
20,470
|
|
|
(2,739
|
)
|
|
(13
|
)%
|
|||
Revenue basis points
(1)
|
3.33
|
%
|
|
3.61
|
%
|
|
(0.28
|
)%
|
|
(8
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Expenses
|
$
|
439
|
|
|
$
|
527
|
|
|
$
|
(88
|
)
|
|
(17
|
)%
|
Funded volume
|
19,140
|
|
|
20,316
|
|
|
(1,176
|
)
|
|
(6
|
)%
|
|||
Expenses basis points
(2)
|
2.29
|
%
|
|
2.59
|
%
|
|
(0.30
|
)%
|
|
(12
|
)%
|
|||
|
|
|
|
|
|
|
|
|||||||
Margin
|
1.04
|
%
|
|
1.02
|
%
|
|
0.02
|
%
|
|
2
|
%
|
(1)
|
Calculated on pull-through adjusted lock volume as revenue is recognized at the time of loan lock.
|
(2)
|
Calculated on funded volume as expenses are incurred based on closing of the loan.
|
Table 20. Originations - Revenues
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Service related, net - Originations
|
$
|
24
|
|
|
|
$
|
36
|
|
|
$
|
60
|
|
|
$
|
63
|
|
|
$
|
(3
|
)
|
|
(5
|
)%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gain on loans originated and sold
|
71
|
|
|
|
113
|
|
|
184
|
|
|
381
|
|
|
(197
|
)
|
|
(52
|
)%
|
|||||
Fair value adjustments on loans held for sale
|
6
|
|
|
|
—
|
|
|
6
|
|
|
9
|
|
|
(3
|
)
|
|
(33
|
)%
|
|||||
Mark-to-market on locks and commitments
(2)
|
(11
|
)
|
|
|
1
|
|
|
(10
|
)
|
|
(32
|
)
|
|
22
|
|
|
(69
|
)%
|
|||||
Mark-to-market on derivative/hedge
|
(20
|
)
|
|
|
1
|
|
|
(19
|
)
|
|
(29
|
)
|
|
10
|
|
|
(34
|
)%
|
|||||
Capitalized servicing rights
|
114
|
|
|
|
156
|
|
|
270
|
|
|
192
|
|
|
78
|
|
|
41
|
%
|
|||||
Provision of repurchase reserves, net of release
|
(3
|
)
|
|
|
(1
|
)
|
|
(4
|
)
|
|
7
|
|
|
(11
|
)
|
|
(157
|
)%
|
|||||
Total net gain on mortgage loans held for sale
|
157
|
|
|
|
270
|
|
|
427
|
|
|
528
|
|
|
(101
|
)
|
|
(19
|
)%
|
|||||
Total revenues - Originations
|
$
|
181
|
|
|
|
$
|
306
|
|
|
$
|
487
|
|
|
$
|
591
|
|
|
$
|
(104
|
)
|
|
(18
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer direct lock pull through adjusted volume
(3)
|
$
|
3,588
|
|
|
|
$
|
6,100
|
|
|
$
|
9,688
|
|
|
$
|
11,319
|
|
|
$
|
(1,631
|
)
|
|
(14
|
)%
|
Other locked pull through adjusted volume
(3)
|
4,707
|
|
|
|
5,807
|
|
|
10,514
|
|
|
6,412
|
|
|
4,102
|
|
|
64
|
%
|
|||||
Total pull through adjusted volume
|
$
|
8,295
|
|
|
|
$
|
11,907
|
|
|
$
|
20,202
|
|
|
$
|
17,731
|
|
|
$
|
2,471
|
|
|
14
|
%
|
Funded volume
|
$
|
8,884
|
|
|
|
$
|
12,317
|
|
|
$
|
21,201
|
|
|
$
|
19,140
|
|
|
$
|
2,061
|
|
|
11
|
%
|
Funded HARP volume
|
$
|
296
|
|
|
|
$
|
832
|
|
|
$
|
1,128
|
|
|
$
|
3,540
|
|
|
$
|
(2,412
|
)
|
|
(68
|
)%
|
Recapture percentage
|
24.8
|
%
|
|
|
23.8
|
%
|
|
24.6
|
%
|
|
27.4
|
%
|
|
(2.8
|
)%
|
|
(10
|
)%
|
|||||
Purchase percentage of funded volume
|
55.8
|
%
|
|
|
46.7
|
%
|
|
64.7
|
%
|
|
30.7
|
%
|
|
34.0
|
%
|
|
111
|
%
|
|||||
Value of capitalized servicing
|
130 bps
|
|
|
|
120 bps
|
|
|
126 bps
|
|
|
101 bps
|
|
|
25
|
|
|
25
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
(2)
|
Mark-to-market on locks and commitments includes our fair value mark-to-market adjustments on IRLCs.
|
(3)
|
Pull through adjusted volume represents the expected funding from locks taken during the year.
|
Table 20.1. Originations - Revenues
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Service related, net - Originations
|
$
|
63
|
|
|
$
|
63
|
|
|
$
|
—
|
|
|
—
|
%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|||||||
Gain on loans originated and sold
|
381
|
|
|
458
|
|
|
(77
|
)
|
|
(17
|
)%
|
|||
Fair value adjustments on loans held for sale
|
9
|
|
|
(15
|
)
|
|
24
|
|
|
(160
|
)%
|
|||
Mark-to-market on locks and commitments
(1)
|
(32
|
)
|
|
2
|
|
|
(34
|
)
|
|
(1,700
|
)%
|
|||
Mark-to-market on derivative/hedge
|
(29
|
)
|
|
27
|
|
|
(56
|
)
|
|
(207
|
)%
|
|||
Capitalized servicing rights
|
192
|
|
|
197
|
|
|
(5
|
)
|
|
(3
|
)%
|
|||
Provision of repurchase reserves, net of release
|
7
|
|
|
6
|
|
|
1
|
|
|
17
|
%
|
|||
Total net gain on mortgage loans held for sale
|
528
|
|
|
675
|
|
|
(147
|
)
|
|
(22
|
)%
|
|||
Total revenues - Originations
|
$
|
591
|
|
|
$
|
738
|
|
|
$
|
(147
|
)
|
|
(20
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Key Metrics
|
|
|
|
|
|
|
|
|||||||
Consumer direct lock pull through adjusted volume
(2)
|
$
|
11,319
|
|
|
$
|
13,728
|
|
|
$
|
(2,409
|
)
|
|
(18
|
)%
|
Other locked pull through adjusted volume
(2)
|
6,412
|
|
|
6,742
|
|
|
(330
|
)
|
|
(5
|
)%
|
|||
Total pull through adjusted volume
|
$
|
17,731
|
|
|
$
|
20,470
|
|
|
$
|
(2,739
|
)
|
|
(13
|
)%
|
Funded volume
|
$
|
19,140
|
|
|
$
|
20,316
|
|
|
$
|
(1,176
|
)
|
|
(6
|
)%
|
Funded HARP volume
|
$
|
3,540
|
|
|
$
|
4,311
|
|
|
$
|
(771
|
)
|
|
(18
|
)%
|
Recapture percentage
|
27.4
|
%
|
|
28.6
|
%
|
|
(1.2
|
)%
|
|
(4
|
)%
|
|||
Purchase percentage of funded volume
|
30.7
|
%
|
|
23.5
|
%
|
|
7.2
|
%
|
|
31
|
%
|
|||
Value of capitalized servicing
|
101 bps
|
|
|
97 bps
|
|
|
4
|
|
|
4
|
%
|
(1)
|
Mark-to-market on locks and commitments includes our fair value mark-to-market adjustments on IRLCs.
|
(2)
|
Pull through adjusted volume represents the expected funding from locks taken during the year.
|
Table 21. Originations - Expenses
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Salaries, wages and benefits
|
$
|
95
|
|
|
|
$
|
148
|
|
|
$
|
243
|
|
|
$
|
263
|
|
|
$
|
(20
|
)
|
|
(8
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan origination expenses
|
19
|
|
|
|
32
|
|
|
51
|
|
|
59
|
|
|
(8
|
)
|
|
(14
|
)%
|
|||||
Corporate and other general and administrative expenses
|
18
|
|
|
|
26
|
|
|
44
|
|
|
49
|
|
|
(5
|
)
|
|
(10
|
)%
|
|||||
Marketing and professional service fee
|
18
|
|
|
|
32
|
|
|
50
|
|
|
58
|
|
|
(8
|
)
|
|
(14
|
)%
|
|||||
Depreciation and amortization
|
5
|
|
|
|
7
|
|
|
12
|
|
|
10
|
|
|
2
|
|
|
20
|
%
|
|||||
Total general and administrative
|
60
|
|
|
|
97
|
|
|
157
|
|
|
176
|
|
|
(19
|
)
|
|
(11
|
)%
|
|||||
Total expenses - Originations
|
$
|
155
|
|
|
|
$
|
245
|
|
|
$
|
400
|
|
|
$
|
439
|
|
|
$
|
(39
|
)
|
|
(9
|
)%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 21.1. Originations - Expenses
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Salaries, wages and benefits
|
$
|
263
|
|
|
$
|
297
|
|
|
$
|
(34
|
)
|
|
(11
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|||||||
Loan origination expenses
|
59
|
|
|
76
|
|
|
(17
|
)
|
|
(22
|
)%
|
|||
Corporate and other general and administrative expenses
|
49
|
|
|
72
|
|
|
(23
|
)
|
|
(32
|
)%
|
|||
Marketing and professional service fee
|
58
|
|
|
59
|
|
|
(1
|
)
|
|
(2
|
)%
|
|||
Depreciation and amortization
|
10
|
|
|
11
|
|
|
(1
|
)
|
|
(9
|
)%
|
|||
Loss on impairment of assets
|
—
|
|
|
12
|
|
|
(12
|
)
|
|
(100
|
)%
|
|||
Total general and administrative
|
176
|
|
|
230
|
|
|
(54
|
)
|
|
(23
|
)%
|
|||
Total expenses - Originations
|
$
|
439
|
|
|
$
|
527
|
|
|
$
|
(88
|
)
|
|
(17
|
)%
|
Table 22. Originations - Other Income (Expenses), Net
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Interest income
|
$
|
27
|
|
|
|
$
|
38
|
|
|
$
|
65
|
|
|
$
|
55
|
|
|
$
|
10
|
|
|
18
|
%
|
Interest expense
|
(26
|
)
|
|
|
(37
|
)
|
|
(63
|
)
|
|
(54
|
)
|
|
9
|
|
|
17
|
%
|
|||||
Other income
|
5
|
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|
100
|
%
|
|||||
Other income, net - Originations
|
$
|
6
|
|
|
|
$
|
1
|
|
|
$
|
7
|
|
|
$
|
1
|
|
|
$
|
6
|
|
|
600
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average coupon - mortgage loans held for sale
|
4.9
|
%
|
|
|
4.5
|
%
|
|
4.7
|
%
|
|
4.1
|
%
|
|
0.6
|
%
|
|
15
|
%
|
|||||
Weighted average cost of funds (excluding facility fees)
|
4.5
|
%
|
|
|
4.2
|
%
|
|
4.4
|
%
|
|
3.5
|
%
|
|
0.9
|
%
|
|
26
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 22.1. Originations - Other Income (Expenses), Net
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Interest income
|
$
|
55
|
|
|
$
|
63
|
|
|
$
|
(8
|
)
|
|
(13
|
)%
|
Interest expense
|
(54
|
)
|
|
(58
|
)
|
|
(4
|
)
|
|
(7
|
)%
|
|||
Other expense
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(100
|
)%
|
|||
Other income, net - Originations
|
$
|
1
|
|
|
$
|
4
|
|
|
$
|
(3
|
)
|
|
(75
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Weighted average coupon - mortgage loans held for sale
|
4.1
|
%
|
|
3.9
|
%
|
|
0.2
|
%
|
|
5
|
%
|
|||
Weighted average cost of funds (excluding facility fees)
|
3.5
|
%
|
|
2.9
|
%
|
|
0.6
|
%
|
|
21
|
%
|
Table 23. Xome - Operations
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Revenues
|
$
|
177
|
|
|
|
$
|
149
|
|
|
$
|
326
|
|
|
$
|
291
|
|
|
$
|
35
|
|
|
12
|
%
|
Expenses
|
178
|
|
|
|
123
|
|
|
301
|
|
|
247
|
|
|
54
|
|
|
22
|
%
|
|||||
Other income (expenses), net
|
—
|
|
|
|
9
|
|
|
9
|
|
|
9
|
|
|
—
|
|
|
—
|
%
|
|||||
Income before income tax expense
|
$
|
(1
|
)
|
|
|
$
|
35
|
|
|
$
|
34
|
|
|
$
|
53
|
|
|
$
|
(19
|
)
|
|
(36
|
)%
|
Income before taxes margin
|
(0.6
|
)%
|
|
|
23.5
|
%
|
|
10.4
|
%
|
|
18.2
|
%
|
|
(7.8
|
)%
|
|
(43
|
)%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 23.1 Xome - Operations
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Revenues
|
$
|
291
|
|
|
$
|
423
|
|
|
$
|
(132
|
)
|
|
(31
|
)%
|
Expenses
|
247
|
|
|
354
|
|
|
(107
|
)
|
|
(30
|
)%
|
|||
Other income (expenses), net
|
9
|
|
|
—
|
|
|
9
|
|
|
100
|
%
|
|||
Income before income tax expense
|
$
|
53
|
|
|
$
|
69
|
|
|
$
|
(16
|
)
|
|
(23
|
)%
|
Income before taxes margin
|
18.2
|
%
|
|
16.3
|
%
|
|
1.9
|
%
|
|
12
|
%
|
Table 24. Xome - Revenues
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Exchange
|
$
|
34
|
|
|
|
$
|
62
|
|
|
$
|
96
|
|
|
$
|
109
|
|
|
$
|
(13
|
)
|
|
(12
|
)%
|
Services
|
135
|
|
|
|
74
|
|
|
209
|
|
|
152
|
|
|
57
|
|
|
38
|
%
|
|||||
Data/Technology
|
8
|
|
|
|
13
|
|
|
21
|
|
|
30
|
|
|
(9
|
)
|
|
(30
|
)%
|
|||||
Total revenues - Xome
|
$
|
177
|
|
|
|
$
|
149
|
|
|
$
|
326
|
|
|
$
|
291
|
|
|
$
|
35
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exchange property listings sold
|
3,952
|
|
|
|
6,920
|
|
|
10,872
|
|
|
11,985
|
|
|
(1,113
|
)
|
|
(9
|
)%
|
|||||
Exchange property listings at period end
|
6,177
|
|
|
|
5,867
|
|
|
6,177
|
|
|
3,963
|
|
|
2,214
|
|
|
56
|
%
|
|||||
Services completed orders
|
808,503
|
|
|
|
264,031
|
|
|
1,072,534
|
|
|
422,658
|
|
|
649,876
|
|
|
154
|
%
|
|||||
Percentage of revenue earned from third-party customers
|
56.2
|
%
|
|
|
28.0
|
%
|
|
43.3
|
%
|
|
34.6
|
%
|
|
8.7
|
%
|
|
25
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 24.1 Xome - Revenues
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Exchange
|
$
|
109
|
|
|
$
|
153
|
|
|
$
|
(44
|
)
|
|
(29
|
)%
|
Services
|
152
|
|
|
238
|
|
|
(86
|
)
|
|
(36
|
)%
|
|||
Data/Technology
|
30
|
|
|
32
|
|
|
(2
|
)
|
|
(6
|
)%
|
|||
Total revenues - Xome
|
$
|
291
|
|
|
$
|
423
|
|
|
$
|
(132
|
)
|
|
(31
|
)%
|
|
|
|
|
|
|
|
|
|||||||
Key Metrics
|
|
|
|
|
|
|
|
|||||||
Exchange property listings sold
|
11,985
|
|
|
17,319
|
|
|
(5,334
|
)
|
|
(31
|
)%
|
|||
Exchange property listings at period end
|
3,963
|
|
|
4,669
|
|
|
(706
|
)
|
|
(15
|
)%
|
|||
Services completed orders
|
422,658
|
|
|
594,623
|
|
|
(171,965
|
)
|
|
(29
|
)%
|
|||
Percentage of revenue earned from third-party customers
|
34.6
|
%
|
|
40.2
|
%
|
|
(5.6
|
)%
|
|
(14
|
)%
|
Table 25. Xome - Expenses
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Salaries, wages and benefits
|
$
|
73
|
|
|
|
$
|
58
|
|
|
$
|
131
|
|
|
$
|
126
|
|
|
$
|
5
|
|
|
4
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
100
|
|
|
|
58
|
|
|
158
|
|
|
104
|
|
|
54
|
|
|
52
|
%
|
|||||
Depreciation and amortization
|
5
|
|
|
|
7
|
|
|
12
|
|
|
14
|
|
|
(2
|
)
|
|
(14
|
)%
|
|||||
Loss on impairment of assets
|
—
|
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
(3
|
)
|
|
(100
|
)%
|
|||||
Total general and administrative
|
105
|
|
|
|
65
|
|
|
170
|
|
|
121
|
|
|
49
|
|
|
40
|
%
|
|||||
Total expenses - Xome
|
$
|
178
|
|
|
|
$
|
123
|
|
|
$
|
301
|
|
|
$
|
247
|
|
|
$
|
54
|
|
|
22
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 25.1 Xome - Expenses
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Salaries, wages and benefits
|
$
|
126
|
|
|
$
|
175
|
|
|
$
|
(49
|
)
|
|
(28
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|||||||
Operational expenses
|
104
|
|
|
154
|
|
|
(50
|
)
|
|
(32
|
)%
|
|||
Depreciation and amortization
|
14
|
|
|
21
|
|
|
(7
|
)
|
|
(33
|
)%
|
|||
Loss on impairment of assets
|
3
|
|
|
4
|
|
|
(1
|
)
|
|
(25
|
)%
|
|||
Total general and administrative
|
121
|
|
|
179
|
|
|
(58
|
)
|
|
(32
|
)%
|
|||
Total expenses - Xome
|
$
|
247
|
|
|
$
|
354
|
|
|
$
|
(107
|
)
|
|
(30
|
)%
|
Table 26. Corporate and Other - Operations
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Revenues
|
$
|
—
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
(50
|
)%
|
Expenses
|
71
|
|
|
|
103
|
|
|
174
|
|
|
98
|
|
|
76
|
|
|
78
|
%
|
|||||
Other income (expense), net
|
(85
|
)
|
|
|
(78
|
)
|
|
(163
|
)
|
|
(142
|
)
|
|
(21
|
)
|
|
15
|
%
|
|||||
Loss before income tax expense (benefit)
|
$
|
(156
|
)
|
|
|
$
|
(180
|
)
|
|
$
|
(336
|
)
|
|
$
|
(238
|
)
|
|
$
|
(98
|
)
|
|
41
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 26.1 Corporate and Other - Operations
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Revenues
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
100
|
%
|
Expenses
|
98
|
|
|
129
|
|
|
(31
|
)
|
|
(24
|
)%
|
|||
Other income (expense), net
|
(142
|
)
|
|
(151
|
)
|
|
9
|
|
|
(6
|
)%
|
|||
Loss before income tax expense (benefit)
|
$
|
(238
|
)
|
|
$
|
(279
|
)
|
|
$
|
41
|
|
|
(15
|
)%
|
Table 27. Legacy Portfolio
|
Successor
|
|
|
Predecessor
|
||||
December 31, 2018
|
|
|
December 31, 2017
|
|||||
Performing - UPB
|
$
|
145
|
|
|
|
$
|
153
|
|
Nonperforming (90+ delinquency) - UPB
|
27
|
|
|
|
39
|
|
||
REO - estimated fair value
|
4
|
|
|
|
1
|
|
||
Total legacy portfolio
|
$
|
176
|
|
|
|
$
|
193
|
|
Table 28. Corporate and Other - Expenses
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Salaries, wages and benefits
|
$
|
38
|
|
|
|
$
|
45
|
|
|
$
|
83
|
|
|
$
|
63
|
|
|
$
|
20
|
|
|
32
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
13
|
|
|
|
54
|
|
|
67
|
|
|
23
|
|
|
44
|
|
|
191
|
%
|
|||||
Depreciation and amortization
|
20
|
|
|
|
4
|
|
|
24
|
|
|
12
|
|
|
12
|
|
|
100
|
%
|
|||||
Total general and administrative
|
33
|
|
|
|
58
|
|
|
91
|
|
|
35
|
|
|
56
|
|
|
160
|
%
|
|||||
Total expenses - Corporate and Other
|
$
|
71
|
|
|
|
$
|
103
|
|
|
$
|
174
|
|
|
$
|
98
|
|
|
$
|
76
|
|
|
78
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 28.1 Corporate and Other - Expenses
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Salaries, wages and benefits
|
$
|
63
|
|
|
$
|
53
|
|
|
$
|
10
|
|
|
19
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|||||||
Operational expenses
|
23
|
|
|
59
|
|
|
(36
|
)
|
|
(61
|
)%
|
|||
Depreciation and amortization
|
12
|
|
|
8
|
|
|
4
|
|
|
50
|
%
|
|||
Loss on impairment of assets
|
—
|
|
|
9
|
|
|
(9
|
)
|
|
(100
|
)%
|
|||
Total general and administrative
|
35
|
|
|
76
|
|
|
(41
|
)
|
|
(54
|
)%
|
|||
Total expenses - Corporate and Other
|
$
|
98
|
|
|
$
|
129
|
|
|
$
|
(31
|
)
|
|
(24
|
)%
|
Table 29. Corporate and Other - Other Income (Expenses), Net
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Interest income - legacy portfolio
|
$
|
5
|
|
|
|
$
|
7
|
|
|
$
|
12
|
|
|
$
|
14
|
|
|
$
|
(2
|
)
|
|
(14
|
)%
|
Other interest income
|
2
|
|
|
|
—
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
(100
|
)%
|
|||||
Total interest income
|
7
|
|
|
|
7
|
|
|
14
|
|
|
15
|
|
|
(1
|
)
|
|
7
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense - legacy portfolio
|
(1
|
)
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(33
|
)%
|
|||||
Interest expense on unsecured senior notes
|
(90
|
)
|
|
|
(77
|
)
|
|
(167
|
)
|
|
(144
|
)
|
|
23
|
|
|
16
|
%
|
|||||
Other interest expense
|
(2
|
)
|
|
|
(3
|
)
|
|
(5
|
)
|
|
(4
|
)
|
|
1
|
|
|
25
|
%
|
|||||
Total interest expense
|
(93
|
)
|
|
|
(83
|
)
|
|
(176
|
)
|
|
(154
|
)
|
|
22
|
|
|
14
|
%
|
|||||
Other income (expense)
|
1
|
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
2
|
|
|
67
|
%
|
|||||
Other income (expense), net - Corporate and Other
(2)
|
$
|
(85
|
)
|
|
|
$
|
(78
|
)
|
|
$
|
(163
|
)
|
|
$
|
(142
|
)
|
|
$
|
(21
|
)
|
|
(15
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - unsecured senior notes
|
7.1
|
%
|
|
|
7.4
|
%
|
|
7.2
|
%
|
|
7.3
|
%
|
|
(0.1
|
)%
|
|
(1.4
|
)%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
(2)
|
Other income (expense), net for the Corporate and Other segment consists of interest expense on our unsecured senior notes, the interest income and expense from our legacy portfolio, and other interest related to a revolving facility used for general corporate purposes.
|
Table 29.1 Corporate and Other - Other Income (Expenses), Net
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Interest income - legacy portfolio
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
—
|
%
|
Other interest income
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
%
|
|||
Total interest income
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
%
|
|||
|
|
|
|
|
|
|
|
|||||||
Interest expense - legacy portfolio
|
(6
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
(14
|
)%
|
|||
Interest expense on unsecured senior notes
|
(144
|
)
|
|
(152
|
)
|
|
(8
|
)
|
|
(5
|
)%
|
|||
Other interest expense
|
(4
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(33
|
)%
|
|||
Total interest expense
|
(154
|
)
|
|
(165
|
)
|
|
(11
|
)
|
|
(7
|
)%
|
|||
Other income (expense)
|
(3
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(200
|
)%
|
|||
Other income (expense), net - Corporate and Other
(1)
|
$
|
(142
|
)
|
|
$
|
(151
|
)
|
|
$
|
9
|
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|||||||
Weighted average cost - unsecured senior notes
|
7.3
|
%
|
|
7.3
|
%
|
|
—
|
%
|
|
—
|
%
|
(1)
|
Other income (expense), net for the Corporate and Other segment consists of interest expense on our unsecured senior notes, the interest income and expense from our legacy portfolio, and other interest related to a revolving facility used for general corporate purposes.
|
Table 30. Assets
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
December 31, 2018
|
|
|
December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||
Cash and cash equivalents
|
$
|
242
|
|
|
|
$
|
215
|
|
|
$
|
27
|
|
|
12.6
|
%
|
Mortgage servicing rights
|
3,676
|
|
|
|
2,941
|
|
|
735
|
|
|
25.0
|
%
|
|||
Advances and other receivables, net
|
1,194
|
|
|
|
1,706
|
|
|
(512
|
)
|
|
(30.0
|
)%
|
|||
Reverse mortgage interests, net
|
7,934
|
|
|
|
9,984
|
|
|
(2,050
|
)
|
|
(20.5
|
)%
|
|||
Mortgage loans held for sale at fair value
|
1,631
|
|
|
|
1,891
|
|
|
(260
|
)
|
|
(13.7
|
)%
|
|||
Deferred tax asset, net
|
967
|
|
|
|
—
|
|
|
967
|
|
|
100.0
|
%
|
|||
Other
|
1,329
|
|
|
|
1,299
|
|
|
30
|
|
|
2.3
|
%
|
|||
Total assets
|
$
|
16,973
|
|
|
|
$
|
18,036
|
|
|
$
|
(1,063
|
)
|
|
(5.9
|
)%
|
Table 31. Liabilities and Stockholders’ Equity
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
December 31, 2018
|
|
|
December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||
Unsecured senior notes, net
|
$
|
2,459
|
|
|
|
$
|
1,874
|
|
|
$
|
585
|
|
|
31.2
|
%
|
Advance facilities, net
|
595
|
|
|
|
855
|
|
|
(260
|
)
|
|
(30.4
|
)%
|
|||
Warehouse facilities, net
|
2,349
|
|
|
|
3,285
|
|
|
(936
|
)
|
|
(28.5
|
)%
|
|||
MSR related liabilities - nonrecourse at fair value
|
1,216
|
|
|
|
1,006
|
|
|
210
|
|
|
20.9
|
%
|
|||
Other nonrecourse debt, net
|
6,795
|
|
|
|
8,014
|
|
|
(1,219
|
)
|
|
(15.2
|
)%
|
|||
Other liabilities
|
1,614
|
|
|
|
1,280
|
|
|
334
|
|
|
26.1
|
%
|
|||
Total liabilities
|
15,028
|
|
|
|
16,314
|
|
|
(1,286
|
)
|
|
(7.9
|
)%
|
|||
Total stockholders’ equity attributable to Successor and Predecessor
|
1,942
|
|
|
|
1,715
|
|
|
227
|
|
|
13.2
|
%
|
|||
Non-controlling interests
|
3
|
|
|
|
7
|
|
|
(4
|
)
|
|
(57.1
|
)%
|
|||
Total liabilities and stockholders’ equity
|
$
|
16,973
|
|
|
|
$
|
18,036
|
|
|
$
|
(1,063
|
)
|
|
(5.9
|
)%
|
Table 32. Operating Cash Flow
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Cash provided by operating profits and changes in working capital and other assets
|
$
|
1,261
|
|
|
|
$
|
1,774
|
|
|
$
|
3,035
|
|
|
$
|
991
|
|
|
$
|
2,044
|
|
|
206
|
%
|
Originations net sales activities
|
(10
|
)
|
|
|
520
|
|
|
510
|
|
|
368
|
|
|
142
|
|
|
39
|
%
|
|||||
Net cash attributable to operating activities
|
$
|
1,251
|
|
|
|
$
|
2,294
|
|
|
$
|
3,545
|
|
|
$
|
1,359
|
|
|
$
|
2,186
|
|
|
161
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 32.1 Operating Cash Flow
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Cash provided by operating profits and changes in working capital and other assets
|
$
|
991
|
|
|
$
|
783
|
|
|
$
|
208
|
|
|
27
|
%
|
Originations net sales activities
|
368
|
|
|
189
|
|
|
179
|
|
|
95
|
%
|
|||
Net cash attributable to operating activities
|
$
|
1,359
|
|
|
$
|
972
|
|
|
$
|
387
|
|
|
40
|
%
|
Table 33. Investing Cash Flow
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
$
|
(307
|
)
|
|
|
$
|
(134
|
)
|
|
$
|
(441
|
)
|
|
$
|
(63
|
)
|
|
$
|
(378
|
)
|
|
600
|
%
|
Acquisition, net of cash acquired
|
(33
|
)
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
|
100
|
%
|
|||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
|
—
|
|
|
—
|
|
|
16
|
|
|
(16
|
)
|
|
(100
|
)%
|
|||||
Proceeds on sale of forward mortgage servicing rights
|
105
|
|
|
|
—
|
|
|
105
|
|
|
71
|
|
|
34
|
|
|
48
|
%
|
|||||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
|
13
|
|
|
16
|
|
|
(3
|
)
|
|
(19
|
)%
|
|||||
Other
|
(15
|
)
|
|
|
(41
|
)
|
|
(56
|
)
|
|
(46
|
)
|
|
(10
|
)
|
|
460
|
%
|
|||||
Net cash attributable to investing activities
|
$
|
(250
|
)
|
|
|
$
|
(162
|
)
|
|
$
|
(412
|
)
|
|
$
|
(6
|
)
|
|
$
|
(406
|
)
|
|
6,767
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 33.1 Investing Cash Flow
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
$
|
(63
|
)
|
|
$
|
(144
|
)
|
|
$
|
81
|
|
|
(56
|
)%
|
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
16
|
|
|
(3,600
|
)
|
|
3,616
|
|
|
(100
|
)%
|
|||
Proceeds on sale of forward mortgage servicing rights
|
71
|
|
|
68
|
|
|
3
|
|
|
4
|
%
|
|||
Proceeds on sale of assets
|
16
|
|
|
—
|
|
|
16
|
|
|
100
|
%
|
|||
Other
|
(46
|
)
|
|
(62
|
)
|
|
16
|
|
|
(26
|
)%
|
|||
Net cash attributable to investing activities
|
$
|
(6
|
)
|
|
$
|
(3,738
|
)
|
|
$
|
3,732
|
|
|
(100
|
)%
|
Table 34. Financing Cash Flow
|
Successor
|
|
|
Predecessor
|
|
|
|
Predecessor
|
|
|
|
|
|||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Combined
(1)
|
|
Year ended December 31, 2017
|
|
$ Change
|
|
% Change
|
||||||||||||
Changes in advance facilities
|
$
|
45
|
|
|
|
$
|
(305
|
)
|
|
$
|
(260
|
)
|
|
$
|
(241
|
)
|
|
$
|
(19
|
)
|
|
8
|
%
|
Changes in warehouse facilities
|
(351
|
)
|
|
|
(585
|
)
|
|
(936
|
)
|
|
863
|
|
|
(1,799
|
)
|
|
(208
|
)%
|
|||||
Payment of unsecured senior notes and nonrecourse debt
|
(1,036
|
)
|
|
|
(93
|
)
|
|
(1,129
|
)
|
|
(138
|
)
|
|
(991
|
)
|
|
718
|
%
|
|||||
Issuance of excess spread financing
|
255
|
|
|
|
70
|
|
|
325
|
|
|
—
|
|
|
325
|
|
|
100
|
%
|
|||||
Repayment of excess spread and MSR liability financing
|
(115
|
)
|
|
|
(108
|
)
|
|
(223
|
)
|
|
(230
|
)
|
|
7
|
|
|
(3
|
)%
|
|||||
Decrease of participating interest financing in reverse mortgage interests
|
(831
|
)
|
|
|
(1,391
|
)
|
|
(2,222
|
)
|
|
(2,022
|
)
|
|
(200
|
)
|
|
10
|
%
|
|||||
Changes in HECM securitizations
|
(31
|
)
|
|
|
311
|
|
|
280
|
|
|
135
|
|
|
145
|
|
|
107
|
%
|
|||||
Other
|
1
|
|
|
|
(10
|
)
|
|
(9
|
)
|
|
(22
|
)
|
|
13
|
|
|
(59
|
)%
|
|||||
Net cash attributable to financing activities
|
$
|
(2,063
|
)
|
|
|
$
|
(2,111
|
)
|
|
$
|
(4,174
|
)
|
|
$
|
(1,655
|
)
|
|
$
|
(2,519
|
)
|
|
152
|
%
|
(1)
|
Refer to
Basis of Presentation
section for discussion on presentation of combined results.
|
Table 34.1 Financing Cash Flow
|
Predecessor
|
|
|
|
|
|||||||||
Year Ended December 31,
|
|
|
|
|
||||||||||
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
||||||||
Decrease in advance facilities
|
$
|
(241
|
)
|
|
$
|
(550
|
)
|
|
$
|
309
|
|
|
(56
|
)%
|
Increase in warehouse facilities
|
863
|
|
|
529
|
|
|
334
|
|
|
63
|
%
|
|||
Payment of senior unsecured notes and nonrecourse debt
|
(138
|
)
|
|
(58
|
)
|
|
(80
|
)
|
|
138
|
%
|
|||
Issuance of excess spread financing
|
—
|
|
|
155
|
|
|
(155
|
)
|
|
(100
|
)%
|
|||
Repayment of excess spread and MSR liability financing
|
(230
|
)
|
|
(216
|
)
|
|
(14
|
)
|
|
6
|
%
|
|||
Changes in participating interest financing in reverse mortgage interests
|
(2,022
|
)
|
|
2,939
|
|
|
(4,961
|
)
|
|
(169
|
)%
|
|||
Changes in HECM securitizations
|
135
|
|
|
15
|
|
|
120
|
|
|
800
|
%
|
|||
Repurchase of common stock
|
—
|
|
|
(114
|
)
|
|
114
|
|
|
(100
|
)%
|
|||
Other
|
(22
|
)
|
|
(2
|
)
|
|
(20
|
)
|
|
1,000
|
%
|
|||
Net cash attributable to financing activities
|
$
|
(1,655
|
)
|
|
$
|
2,698
|
|
|
$
|
(4,353
|
)
|
|
(161
|
)%
|
▪
|
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).
|
▪
|
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 35. Debt
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Advance facilities, net
|
$
|
595
|
|
|
|
$
|
855
|
|
Warehouse facilities, net
|
2,349
|
|
|
|
3,285
|
|
||
Unsecured senior notes, net
|
2,459
|
|
|
|
1,874
|
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Unsecured senior notes
|
|
2,498
|
|
|
Unamortized debt issuance costs
|
|
(39
|
)
|
|
Unsecured senior notes, net of unamortized debt issuance costs
|
|
$
|
2,459
|
|
|
Less than 1 Year
|
|
1 - 3 Years
|
|
3-5 Years
|
|
More than 5 Years
|
|
Total
|
||||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
592
|
|
|
$
|
1,156
|
|
|
$
|
750
|
|
|
$
|
2,498
|
|
Interest payment from unsecured senior notes
(1)
|
198
|
|
|
395
|
|
|
298
|
|
|
206
|
|
|
1,097
|
|
|||||
Advance facilities
|
168
|
|
|
427
|
|
|
—
|
|
|
—
|
|
|
595
|
|
|||||
Warehouse facilities
|
1,960
|
|
|
390
|
|
|
—
|
|
|
—
|
|
|
2,350
|
|
|||||
Capital lease obligations
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|||||
Operating lease obligations
|
32
|
|
|
54
|
|
|
28
|
|
|
34
|
|
|
148
|
|
|||||
Total
|
$
|
2,360
|
|
|
$
|
1,858
|
|
|
$
|
1,482
|
|
|
$
|
990
|
|
|
$
|
6,690
|
|
(1)
|
Interest expense on advance and warehouse facilities is not presented in this table due to the short term nature of these facilities.
|
•
|
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;
|
•
|
a decrease in interest rates could reduce our earnings from our custodial deposit accounts;
|
•
|
an increase in interest rates would increase the cost of servicing our outstanding debt, including our ability to finance servicing advances and for borrowing for acquisitions;
|
•
|
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 also adversely affect our production margins due to increased competition among originators;
|
•
|
an increase in interest rates could adversely affect Xome 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 Xome Services’ valuation and title order volume;
|
Table 38. Change in Fair Value
|
December 31, 2018
|
||||||
Down 25 bps
|
|
Up 25 bps
|
|||||
Increase (decrease) in assets
|
|
|
|
||||
Mortgage servicing rights at fair value
|
$
|
(208
|
)
|
|
$
|
198
|
|
Mortgage loans held for sale at fair value
|
10
|
|
|
(12
|
)
|
||
Derivative financial instruments:
|
|
|
|
||||
Interest rate lock commitments
|
4
|
|
|
(5
|
)
|
||
Total change in assets
|
(194
|
)
|
|
181
|
|
||
Increase (decrease) in liabilities
|
|
|
|
||||
Mortgage servicing rights liabilities at fair value
|
(5
|
)
|
|
5
|
|
||
Excess spread financing at fair value
|
(42
|
)
|
|
42
|
|
||
Derivative financial instruments:
|
|
|
|
||||
Forward MBS trades
|
16
|
|
|
(19
|
)
|
||
Total change in liabilities
|
(31
|
)
|
|
28
|
|
||
Total, net change
|
$
|
(163
|
)
|
|
$
|
153
|
|
Consolidated Balance Sheets
as of December 31, 2018 and 2017
|
|
Consolidated Statements of Operations
for the period from August 1, 2018 - December 31, 2018 (Successor) and for the period from January 1, 2018 - July 31, 2018 (Predecessor) and Years Ended December 31, 2017 and 2016 (Predecessor)
|
|
Consolidated Statements of Stockholders’ Equity
for the period from August 1, 2018 - December 31, 2018 (Successor) and for the period from January 1, 2018 - July 31, 2018 (Predecessor) and Years Ended December 31, 2017 and 2016 (Predecessor)
|
|
Consolidated Statements of Cash Flows
for the period from August 1, 2018 - December 31, 2018 (Successor) and for the period from January 1, 2018 - July 31, 2018 (Predecessor) and Years Ended December 31, 2017 and 2016 (Predecessor)
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31,
2018 |
|
|
December 31,
2017 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
242
|
|
|
|
$
|
215
|
|
Restricted cash
|
319
|
|
|
|
360
|
|
||
Mortgage servicing rights, $3,665 and $2,937 at fair value, respectively
|
3,676
|
|
|
|
2,941
|
|
||
Advances and other receivables, net of reserves of $47 and $284, respectively
|
1,194
|
|
|
|
1,706
|
|
||
Reverse mortgage interests, net of reserves of $13 and $115, respectively
|
7,934
|
|
|
|
9,984
|
|
||
Mortgage loans held for sale at fair value
|
1,631
|
|
|
|
1,891
|
|
||
Mortgage loans held for investment
|
119
|
|
|
|
139
|
|
||
Property and equipment, net of accumulated depreciation of $16 and $169, respectively
|
96
|
|
|
|
121
|
|
||
Deferred tax asset, net
|
967
|
|
|
|
—
|
|
||
Other assets
|
795
|
|
|
|
679
|
|
||
Total assets
|
$
|
16,973
|
|
|
|
$
|
18,036
|
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
||||
Unsecured senior notes, net
|
$
|
2,459
|
|
|
|
$
|
1,874
|
|
Advance facilities, net
|
595
|
|
|
|
855
|
|
||
Warehouse facilities, net
|
2,349
|
|
|
|
3,285
|
|
||
Payables and accrued liabilities
|
1,543
|
|
|
|
1,239
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,216
|
|
|
|
1,006
|
|
||
Mortgage servicing liabilities
|
71
|
|
|
|
41
|
|
||
Other nonrecourse debt, net
|
6,795
|
|
|
|
8,014
|
|
||
Total liabilities
|
15,028
|
|
|
|
16,314
|
|
||
Commitments and contingencies (Note 20)
|
|
|
|
|
||||
Preferred stock at $0.00001 and $0.01 par value - 10 million and 300 million shares authorized, 1 million and zero shares issued and outstanding for Successor and Predecessor, respectively; aggregate liquidation preference of ten and zero dollars for Successor and Predecessor, respectively
|
—
|
|
|
|
—
|
|
||
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
|
848
|
|
|
|
731
|
|
||
Treasury shares at cost, zero and 12.2 million shares for Successor and Predecessor, respectively
|
—
|
|
|
|
(148
|
)
|
||
Total Mr. Cooper stockholders’ equity and Nationstar stockholders’ equity, respectively
|
1,942
|
|
|
|
1,715
|
|
||
Non-controlling interests
|
3
|
|
|
|
7
|
|
||
Total stockholders’ equity
|
1,945
|
|
|
|
1,722
|
|
||
Total liabilities and stockholders’ equity
|
$
|
16,973
|
|
|
|
$
|
18,036
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
|
||||||||
Service related, net
|
$
|
418
|
|
|
|
$
|
901
|
|
|
$
|
1,043
|
|
|
$
|
1,122
|
|
Net gain on mortgage loans held for sale
|
176
|
|
|
|
295
|
|
|
607
|
|
|
793
|
|
||||
Total revenues
|
594
|
|
|
|
1,196
|
|
|
1,650
|
|
|
1,915
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
337
|
|
|
|
426
|
|
|
742
|
|
|
813
|
|
||||
General and administrative
|
370
|
|
|
|
519
|
|
|
733
|
|
|
831
|
|
||||
Total expenses
|
707
|
|
|
|
945
|
|
|
1,475
|
|
|
1,644
|
|
||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
256
|
|
|
|
333
|
|
|
597
|
|
|
425
|
|
||||
Interest expense
|
(293
|
)
|
|
|
(388
|
)
|
|
(731
|
)
|
|
(665
|
)
|
||||
Other income (expenses)
|
13
|
|
|
|
6
|
|
|
3
|
|
|
(2
|
)
|
||||
Total other income (expenses), net
|
(24
|
)
|
|
|
(49
|
)
|
|
(131
|
)
|
|
(242
|
)
|
||||
(Loss) income before income tax (benefit) expense
|
(137
|
)
|
|
|
202
|
|
|
44
|
|
|
29
|
|
||||
Less: Income tax (benefit) expense
|
(1,021
|
)
|
|
|
48
|
|
|
13
|
|
|
13
|
|
||||
Net income
|
884
|
|
|
|
154
|
|
|
31
|
|
|
16
|
|
||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
||||
Net income attributable to Successor/Predecessor
|
884
|
|
|
|
154
|
|
|
30
|
|
|
19
|
|
||||
Less: Undistributed earnings attributable to participating stockholders
|
8
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income attributable to common stockholders
|
$
|
876
|
|
|
|
$
|
154
|
|
|
$
|
30
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
9.65
|
|
|
|
$
|
1.57
|
|
|
$
|
0.31
|
|
|
$
|
0.19
|
|
Diluted
|
$
|
9.54
|
|
|
|
$
|
1.55
|
|
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Shares (in thousands)
|
|
Amount
|
|
Shares (in thousands)
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Shares Amount
|
|
Total Nationstar Stockholders’
Equity and Mr. Cooper Stockholders’ Equity, respectively
|
|
Non-controlling Interests
|
|
Total Equity
|
||||||||||||||||||
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2016
|
—
|
|
|
$
|
—
|
|
|
108,000
|
|
|
$
|
1
|
|
|
$
|
1,105
|
|
|
$
|
682
|
|
|
$
|
(30
|
)
|
|
$
|
1,758
|
|
|
$
|
9
|
|
|
$
|
1,767
|
|
Shares issued / (surrendered) under incentive compensation plan
|
—
|
|
|
—
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||||||
Excess tax deficiency from share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
(10,589
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
|
(114
|
)
|
|
—
|
|
|
(114
|
)
|
||||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
19
|
|
|
(3
|
)
|
|
16
|
|
||||||||
Balance at December 31, 2016
|
—
|
|
|
—
|
|
|
97,497
|
|
|
1
|
|
|
1,122
|
|
|
701
|
|
|
(147
|
)
|
|
1,677
|
|
|
6
|
|
|
1,683
|
|
||||||||
Shares issued / (surrendered) under incentive compensation plan
|
—
|
|
|
—
|
|
|
231
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
|
30
|
|
|
1
|
|
|
31
|
|
||||||||
Balance at December 31, 2017
|
—
|
|
|
—
|
|
|
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
|
|
Non-controlling interests acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
3
|
|
||||||||
Shares issued under incentive compensation plan
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
884
|
|
|
—
|
|
|
884
|
|
|
—
|
|
|
884
|
|
||||||||
Balance at December 31, 2018
|
1,000
|
|
|
$
|
—
|
|
|
90,821
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
848
|
|
|
$
|
—
|
|
|
$
|
1,942
|
|
|
$
|
3
|
|
|
$
|
1,945
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to Successor/Predecessor
|
$
|
884
|
|
|
|
$
|
154
|
|
|
$
|
30
|
|
|
$
|
19
|
|
Adjustments to reconcile net income to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
||||||||
Provision for deferred income taxes
|
(1,021
|
)
|
|
|
63
|
|
|
(46
|
)
|
|
(5
|
)
|
||||
Net income (loss) attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
1
|
|
|
(3
|
)
|
||||
Net gain on mortgage loans held for sale
|
(176
|
)
|
|
|
(295
|
)
|
|
(607
|
)
|
|
(793
|
)
|
||||
Interest income on reverse mortgage interests
|
(206
|
)
|
|
|
(274
|
)
|
|
(490
|
)
|
|
(344
|
)
|
||||
(Gain) loss on sale of assets
|
—
|
|
|
|
(9
|
)
|
|
(8
|
)
|
|
2
|
|
||||
Loss on impairment of assets
|
—
|
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||
MSL related increased obligation
|
—
|
|
|
|
59
|
|
|
—
|
|
|
—
|
|
||||
Provision for servicing reserves
|
38
|
|
|
|
70
|
|
|
148
|
|
|
108
|
|
||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
225
|
|
|
|
(177
|
)
|
|
430
|
|
|
484
|
|
||||
Fair value changes in excess spread financing
|
5
|
|
|
|
81
|
|
|
12
|
|
|
25
|
|
||||
Fair value changes in mortgage servicing rights financing liability
|
6
|
|
|
|
16
|
|
|
(17
|
)
|
|
(42
|
)
|
||||
Fair value changes in mortgage loans held for investment
|
(2
|
)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Amortization of premiums, net of discount accretion
|
9
|
|
|
|
8
|
|
|
82
|
|
|
64
|
|
||||
Depreciation and amortization for property and equipment and intangible assets
|
39
|
|
|
|
33
|
|
|
59
|
|
|
63
|
|
||||
Share-based compensation
|
2
|
|
|
|
17
|
|
|
17
|
|
|
21
|
|
||||
Other loss
|
—
|
|
|
|
3
|
|
|
6
|
|
|
—
|
|
||||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(527
|
)
|
|
|
(544
|
)
|
|
(1,249
|
)
|
|
(1,432
|
)
|
||||
Mortgage loans originated and purchased for sale, net of fees
|
(8,888
|
)
|
|
|
(12,328
|
)
|
|
(19,159
|
)
|
|
(20,410
|
)
|
||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
9,405
|
|
|
|
13,392
|
|
|
20,776
|
|
|
22,031
|
|
||||
Excess tax (deficiency) benefit from share based compensation
|
—
|
|
|
|
—
|
|
|
(1
|
)
|
|
4
|
|
||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Advances and other receivables, net
|
43
|
|
|
|
377
|
|
|
(30
|
)
|
|
582
|
|
||||
Reverse mortgage interests, net
|
1,544
|
|
|
|
1,601
|
|
|
1,672
|
|
|
572
|
|
||||
Other assets
|
(61
|
)
|
|
|
(41
|
)
|
|
(75
|
)
|
|
(25
|
)
|
||||
Payables and accrued liabilities
|
(68
|
)
|
|
|
88
|
|
|
(192
|
)
|
|
26
|
|
||||
Net cash attributable to operating activities
|
1,251
|
|
|
|
2,294
|
|
|
1,359
|
|
|
972
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
||||||||
Acquisition, net of cash acquired
|
(33
|
)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Property and equipment additions, net of disposals
|
(15
|
)
|
|
|
(40
|
)
|
|
(42
|
)
|
|
(62
|
)
|
||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(307
|
)
|
|
|
(134
|
)
|
|
(63
|
)
|
|
(144
|
)
|
||||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
|
—
|
|
|
16
|
|
|
(3,600
|
)
|
||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
105
|
|
|
|
—
|
|
|
71
|
|
|
68
|
|
||||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
|
16
|
|
|
—
|
|
||||
Purchase of cost-method investments
|
—
|
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Net cash attributable to investing activities
|
(250
|
)
|
|
|
(162
|
)
|
|
(6
|
)
|
|
(3,738
|
)
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
||||||||
Increase (decrease) in warehouse facilities
|
(351
|
)
|
|
|
(585
|
)
|
|
863
|
|
|
529
|
|
||||
Increase (decrease) in advance facilities
|
45
|
|
|
|
(305
|
)
|
|
(241
|
)
|
|
(550
|
)
|
||||
Proceeds from issuance of HECM securitizations
|
343
|
|
|
|
759
|
|
|
707
|
|
|
728
|
|
||||
Repayment of HECM securitizations
|
(374
|
)
|
|
|
(448
|
)
|
|
(572
|
)
|
|
(713
|
)
|
||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
112
|
|
|
|
208
|
|
|
575
|
|
|
4,124
|
|
||||
Repayment of participating interest financing in reverse mortgage interests
|
(943
|
)
|
|
|
(1,599
|
)
|
|
(2,597
|
)
|
|
(1,185
|
)
|
||||
Proceeds from issuance of excess spread financing
|
255
|
|
|
|
70
|
|
|
—
|
|
|
155
|
|
||||
Repayment of excess spread financing
|
(38
|
)
|
|
|
(3
|
)
|
|
(23
|
)
|
|
(198
|
)
|
||||
Settlement of excess spread financing
|
(77
|
)
|
|
|
(105
|
)
|
|
(207
|
)
|
|
—
|
|
||||
Repayment of nonrecourse debt - legacy assets
|
(6
|
)
|
|
|
(7
|
)
|
|
(15
|
)
|
|
(18
|
)
|
||||
Repurchase of unsecured senior notes
|
—
|
|
|
|
(62
|
)
|
|
(123
|
)
|
|
(40
|
)
|
||||
Redemption and repayment of unsecured senior notes
|
(1,030
|
)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repurchase of common stock
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
||||
Proceeds from non-controlling interests
|
3
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Excess tax deficiency from share based compensation
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||
Surrender of shares relating to stock vesting
|
—
|
|
|
|
(9
|
)
|
|
(4
|
)
|
|
(3
|
)
|
||||
Debt financing costs
|
(2
|
)
|
|
|
(24
|
)
|
|
(13
|
)
|
|
(13
|
)
|
||||
Dividends to non-controlling interests
|
—
|
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
||||
Net cash attributable to financing activities
|
(2,063
|
)
|
|
|
(2,111
|
)
|
|
(1,655
|
)
|
|
2,698
|
|
||||
Net (decrease) increase in cash and cash equivalents
|
(1,062
|
)
|
|
|
21
|
|
|
(302
|
)
|
|
(68
|
)
|
||||
Cash and cash equivalents - beginning of year
|
1,623
|
|
|
|
575
|
|
|
877
|
|
|
945
|
|
||||
Cash and cash equivalents - end of year
(1)
|
$
|
561
|
|
|
|
$
|
596
|
|
|
$
|
575
|
|
|
$
|
877
|
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Disclosures of Cash Activities
|
|
|
|
|
|
|
|
|
||||||||
Cash paid for interest expense
|
$
|
283
|
|
|
|
$
|
417
|
|
|
$
|
765
|
|
|
$
|
694
|
|
Net cash (refunded) paid for income taxes
|
$
|
(37
|
)
|
|
|
$
|
36
|
|
|
$
|
102
|
|
|
$
|
17
|
|
(1)
|
The following table provides a reconciliation of cash, cash equivalents and restricted cash to amount reported within the consolidated balance sheets.
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
December 31,
2018 |
|
|
July 31,
2018 |
|
December 31,
2017 |
|
December 31,
2016 |
||||||||
Cash and cash equivalents
|
$
|
242
|
|
|
|
$
|
166
|
|
|
$
|
215
|
|
|
$
|
489
|
|
Restricted cash
|
319
|
|
|
|
430
|
|
|
360
|
|
|
388
|
|
||||
Total cash, cash equivalents and restricted cash
|
$
|
561
|
|
|
|
$
|
596
|
|
|
$
|
575
|
|
|
$
|
877
|
|
•
|
Exchange
is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer.
|
•
|
Services
connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers.
|
•
|
Data/Technology
includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606.
|
•
|
Exchange
is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned (“REO”) and short sale properties. Revenue is recognized when the performance obligation is completed, which is at the closing of real estate transactions and there is transfer of ownership to the buyer.
|
•
|
Services
connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services and valuation services. Revenue is recognized when the performance obligation is completed, which is when services are rendered to customers.
|
•
|
Data/Technology
includes the Company’s software as a service platform which provides integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service (“MLS”) organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when the performance obligation is completed, which is generally recognized on a straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606.
|
Preliminary Estimated Fair Value of Net Assets Acquired
|
|
||
Cash and cash equivalents
|
$
|
166
|
|
Restricted cash
|
430
|
|
|
Mortgage servicing rights
|
3,428
|
|
|
Advances and other receivables
|
1,262
|
|
|
Reverse mortgage interests
|
9,213
|
|
|
Mortgage loans held for sale
|
1,514
|
|
|
Mortgage loans held for investment
|
125
|
|
|
Property and equipment
|
96
|
|
|
Derivative financial instruments
|
64
|
|
|
Other assets
|
546
|
|
|
Fair value of assets acquired
|
16,844
|
|
|
Unsecured senior notes
|
1,830
|
|
|
Advance facilities
|
551
|
|
|
Warehouse facilities
|
2,701
|
|
|
Payables and accrued liabilities
|
1,361
|
|
|
MSR related liabilities—nonrecourse
|
1,065
|
|
|
Mortgage servicing liabilities
|
86
|
|
|
Derivative financial instruments
|
3
|
|
|
Other nonrecourse debt
|
7,583
|
|
|
Fair value of liabilities assumed
|
15,180
|
|
|
Total fair value of net tangible assets acquired
|
1,664
|
|
|
Intangible assets
(1)
|
103
|
|
|
Preliminary goodwill
|
10
|
|
|
|
$
|
1,777
|
|
(1)
|
The following intangible assets were acquired in the Nationstar acquisition:
|
|
Useful Life (Years)
|
|
Fair Value
|
||
Customer relationships
(i)
|
6
|
|
$
|
61
|
|
Tradename
(ii)
|
5
|
|
8
|
|
|
Technology
(ii)
|
3-5
|
|
11
|
|
|
Internally developed software
(iii)
|
2
|
|
23
|
|
|
Total
|
|
|
$
|
103
|
|
(i)
|
The estimated fair values for customer relationships were measured using the excess earnings method.
|
(ii)
|
The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets.
|
(iii)
|
The estimated fair values for internally developed software were measured using the replacement cost method.
|
|
Year ended December 31, 2018
|
||
|
(unaudited)
|
||
Pro forma total revenues
|
$
|
1,790
|
|
|
|
||
Pro forma net income
|
$
|
16
|
|
|
Successor
|
|
|
Predecessor
|
||||
MSRs and Related Liabilities
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Forward MSRs - fair value
|
$
|
3,665
|
|
|
|
$
|
2,937
|
|
Reverse MSRs - amortized cost
|
11
|
|
|
|
4
|
|
||
Mortgage servicing rights
|
$
|
3,676
|
|
|
|
$
|
2,941
|
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
71
|
|
|
|
$
|
41
|
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,184
|
|
|
|
$
|
996
|
|
Mortgage servicing rights financing - fair value
|
32
|
|
|
|
10
|
|
||
MSR related liabilities - nonrecourse at fair value
|
$
|
1,216
|
|
|
|
$
|
1,006
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
Forward MSRs - Fair Value
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Fair value - beginning of period
|
$
|
3,413
|
|
|
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
|
|
|
||||||
Servicing retained from mortgage loans sold
|
120
|
|
|
|
162
|
|
|
203
|
|
|||
Purchases of servicing rights
|
479
|
|
|
|
144
|
|
|
66
|
|
|||
Dispositions:
|
|
|
|
|
|
|
||||||
Sales of servicing assets
(1)
|
(111
|
)
|
|
|
4
|
|
|
(60
|
)
|
|||
Changes in fair value:
|
|
|
|
|
|
|
||||||
Changes in valuation inputs or assumptions used in the valuation model
|
(123
|
)
|
|
|
330
|
|
|
(101
|
)
|
|||
Other changes in fair value
|
(113
|
)
|
|
|
(164
|
)
|
|
(331
|
)
|
|||
Fair value - end of period
|
$
|
3,665
|
|
|
|
$
|
3,413
|
|
|
$
|
2,937
|
|
(1)
|
Amount
for the seven months ended July 31, 2018
is related to the sale of MSRs collateralized by nonperforming loans, which have a negative MSR value.
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||||||||
MSRs - Sensitivity Pools
|
UPB
|
|
Fair Value
|
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
135,752
|
|
|
$
|
1,495
|
|
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
Interest sensitive
|
159,729
|
|
|
2,170
|
|
|
|
113,775
|
|
|
1,365
|
|
||||
Total
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
|
Successor
|
|
|
Predecessor
|
||
Credit Sensitive
|
December 31, 2018
|
|
|
December 31, 2017
|
||
Discount rate
|
11.3
|
%
|
|
|
11.4
|
%
|
Total prepayment speeds
|
11.8
|
%
|
|
|
15.2
|
%
|
Expected weighted-average life
|
6.4 years
|
|
|
|
5.7 years
|
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
|
||
Discount rate
|
9.3
|
%
|
|
|
9.2
|
%
|
Total prepayment speeds
|
10.0
|
%
|
|
|
10.7
|
%
|
Expected weighted-average life
|
7.0 years
|
|
|
|
6.7 years
|
|
|
Discount Rate
|
|
Total Prepayment Speeds
|
||||||||||||
Forward MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
Successor
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Forward mortgage servicing rights
|
$
|
(137
|
)
|
|
$
|
(265
|
)
|
|
$
|
(129
|
)
|
|
$
|
(250
|
)
|
|
|
|
|
|
|
|
|
||||||||
Predecessor
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Forward mortgage servicing rights
|
$
|
(108
|
)
|
|
$
|
(208
|
)
|
|
$
|
(118
|
)
|
|
$
|
(227
|
)
|
Excess Spread Financing
|
Prepayment
Speeds
|
|
Average
Life (Years)
|
|
Discount
Rate
|
|
Recapture
Rate
|
|||
Successor
|
|
|
|
|
|
|
|
|||
December 31, 2018
|
|
|
|
|
|
|
|
|||
Low
|
6.0
|
%
|
|
5.0
|
|
8.5
|
%
|
|
8.5
|
%
|
High
|
16.7
|
%
|
|
8.1
|
|
13.9
|
%
|
|
30.5
|
%
|
Weighted-average
|
11.0
|
%
|
|
6.5
|
|
10.4
|
%
|
|
18.6
|
%
|
|
|
|
|
|
|
|
|
|||
Predecessor
|
|
|
|
|
|
|
|
|||
December 31, 2017
|
|
|
|
|
|
|
|
|||
Low
|
6.2
|
%
|
|
4.4
|
|
8.5
|
%
|
|
7.2
|
%
|
High
|
21.2
|
%
|
|
6.9
|
|
14.1
|
%
|
|
30.0
|
%
|
Weighted-average
|
13.7
|
%
|
|
5.9
|
|
10.8
|
%
|
|
18.7
|
%
|
|
Discount Rate
|
|
Prepayment Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
Successor
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
47
|
|
|
$
|
99
|
|
|
$
|
38
|
|
|
$
|
81
|
|
|
|
|
|
|
|
|
|
||||||||
Predecessor
|
|
|
|
|
|
|
|
||||||||
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
37
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
71
|
|
|
Successor
|
|
|
Predecessor
|
||
Mortgage Servicing Rights Financing Assumptions
|
December 31, 2018
|
|
|
December 31, 2017
|
||
Advance financing rates
|
4.2
|
%
|
|
|
3.5
|
%
|
Annual advance recovery rates
|
19.0
|
%
|
|
|
23.2
|
%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
Servicing Revenue
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Contractually specified servicing fees
(1)
|
$
|
421
|
|
|
|
$
|
574
|
|
|
$
|
1,003
|
|
|
$
|
1,045
|
|
Other service-related income
(1)
|
44
|
|
|
|
66
|
|
|
168
|
|
|
245
|
|
||||
Incentive and modification income
(1)
|
17
|
|
|
|
37
|
|
|
80
|
|
|
113
|
|
||||
Late fees
(1)
|
34
|
|
|
|
53
|
|
|
89
|
|
|
82
|
|
||||
Reverse servicing fees
|
16
|
|
|
|
37
|
|
|
58
|
|
|
57
|
|
||||
Mark-to-market adjustments
(2)
|
(164
|
)
|
|
|
196
|
|
|
(160
|
)
|
|
(177
|
)
|
||||
Counterparty revenue share
(3)
|
(68
|
)
|
|
|
(111
|
)
|
|
(230
|
)
|
|
(298
|
)
|
||||
Amortization, net of accretion
(4)
|
(64
|
)
|
|
|
(112
|
)
|
|
(242
|
)
|
|
(314
|
)
|
||||
Total servicing revenue
|
$
|
236
|
|
|
|
$
|
740
|
|
|
$
|
766
|
|
|
$
|
753
|
|
(1)
|
Amounts include subservicing related revenues.
|
(2)
|
Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was
$25
for the
five months ended December 31, 2018
. The impact of negative modeled cash flows for the Predecessor was
$38
for the
seven months ended July 31, 2018
and
$72
and
$81
for the years ended
December 31, 2017
and
2016
, respectively.
|
(3)
|
Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSR financing arrangements.
|
(4)
|
Amortization for the Successor is net of excess spread accretion of
$53
and MSL accretion of
$15
for the
five months ended December 31, 2018
. Amortization for the Predecessor is net of excess spread accretion of
$78
for the
seven months ended July 31, 2018
, and
$161
and
$200
for the years ended
December 31, 2017
and
2016
, respectively. The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion.
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Servicing advances, net of $205 and $0 discount, respectively
|
$
|
952
|
|
|
|
$
|
1,599
|
|
Receivables from agencies, investors and prior servicers, net of $48 and $0 discount, respectively
|
289
|
|
|
|
391
|
|
||
Reserves
|
(47
|
)
|
|
|
(284
|
)
|
||
Total advances and other receivables, net
|
$
|
1,194
|
|
|
|
$
|
1,706
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
Reserves for Advances and Other Receivables
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Balance - beginning of period
|
$
|
—
|
|
|
|
$
|
284
|
|
|
$
|
184
|
|
Provision and other additions
(1)
|
47
|
|
|
|
69
|
|
|
142
|
|
|||
Write-offs
|
—
|
|
|
|
(56
|
)
|
|
(42
|
)
|
|||
Balance - end of period
|
$
|
47
|
|
|
|
$
|
297
|
|
|
$
|
284
|
|
(1)
|
The Company recorded a provision of
$25
through the MTM adjustments in service related revenues for the
five months ended December 31, 2018
for inactive and liquidated loans that are no longer part of the MSR portfolio. The Predecessor recorded a provision through the MTM adjustments in service related revenues of
$38
and
$72
for the
seven months ended July 31, 2018
and
year ended December 31, 2017
, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.
|
|
Successor
|
||||||
|
For the Period August 1 - December 31, 2018
|
||||||
Purchase Discounts
|
Servicing Advances
|
|
Receivables from Agencies, Investors and Prior Servicers
|
||||
Balance - beginning of period
|
$
|
246
|
|
|
$
|
56
|
|
Utilization of purchase discounts
|
(41
|
)
|
|
(8
|
)
|
||
Balance - end of period
|
$
|
205
|
|
|
$
|
48
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Participating interests in HECM mortgage-backed securities, net of $58 and $0 premium, respectively
|
$
|
5,664
|
|
|
|
$
|
7,107
|
|
Other interests securitized, net of $100 and $0 discount, respectively
|
1,064
|
|
|
|
912
|
|
||
Unsecuritized interests, net of $122 and $89 discount, respectively
|
1,219
|
|
|
|
2,080
|
|
||
Reserves
|
(13
|
)
|
|
|
(115
|
)
|
||
Total reverse mortgage interests, net
|
$
|
7,934
|
|
|
|
$
|
9,984
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Repurchased HECM loans (exceed 98% MCA)
|
$
|
949
|
|
|
|
$
|
1,751
|
|
HECM related receivables
|
300
|
|
|
|
311
|
|
||
Funded borrower draws not yet securitized
|
76
|
|
|
|
82
|
|
||
REO-related receivables
|
16
|
|
|
|
25
|
|
||
Purchase discount
|
(122
|
)
|
|
|
(89
|
)
|
||
Total unsecuritized interests
|
$
|
1,219
|
|
|
|
$
|
2,080
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
Reserves for reverse mortgage interests
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Balance - beginning of period
|
$
|
—
|
|
|
|
$
|
115
|
|
|
$
|
131
|
|
Provisions
|
13
|
|
|
|
32
|
|
|
76
|
|
|||
Write-offs
|
—
|
|
|
|
(18
|
)
|
|
(92
|
)
|
|||
Balance - end of period
|
$
|
13
|
|
|
|
$
|
129
|
|
|
$
|
115
|
|
|
Successor
|
||||||||||
|
For the Period August 1 - December 31, 2018
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Premium for Participating Interests in HMBS
|
|
Discount for Other Interest Securitized
|
|
Discount for Unsecuritized Interests
|
||||||
Balance - beginning of period
|
$
|
58
|
|
|
$
|
(117
|
)
|
|
$
|
(173
|
)
|
Additions
|
—
|
|
|
—
|
|
|
—
|
|
|||
Utilization of purchase discounts
|
—
|
|
|
—
|
|
|
43
|
|
|||
Accretion/(Amortization)
|
—
|
|
|
17
|
|
|
8
|
|
|||
Balance - end of period
|
$
|
58
|
|
|
$
|
(100
|
)
|
|
$
|
(122
|
)
|
|
Predecessor
|
||||||
Purchase discounts for reverse mortgage interests
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||
Balance - beginning of period
|
$
|
(89
|
)
|
|
$
|
(43
|
)
|
Additions
|
(7
|
)
|
|
(75
|
)
|
||
Accretion
|
14
|
|
|
29
|
|
||
Balance - end of period
|
$
|
(82
|
)
|
|
$
|
(89
|
)
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Mortgage loans held for sale - UPB
|
$
|
1,568
|
|
|
|
$
|
1,837
|
|
Mark-to-market adjustment
(1)
|
63
|
|
|
|
54
|
|
||
Total mortgage loans held for sale
|
$
|
1,631
|
|
|
|
$
|
1,891
|
|
(1)
|
The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations.
|
(1)
|
Non-accrual includes
$40
and
$64
of UPB related to Ginnie Mae repurchased loans as of
December 31, 2018
and
2017
, respectively.
|
|
Successor
|
|
|
Predecessor
|
||||||||
Mortgage loans held for sale
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Balance - beginning of period
|
$
|
1,514
|
|
|
|
$
|
1,891
|
|
|
$
|
1,788
|
|
Mortgage loans originated and purchased, net of fees
|
8,890
|
|
|
|
12,319
|
|
|
19,140
|
|
|||
Loans sold
|
(9,304
|
)
|
|
|
(13,255
|
)
|
|
(20,318
|
)
|
|||
Repurchase of loans out of Ginnie Mae securitizations
|
527
|
|
|
|
544
|
|
|
1,249
|
|
|||
Transfer of mortgage loans held for sale to advances/accounts receivable related to claims
(1)
|
(5
|
)
|
|
|
(7
|
)
|
|
(19
|
)
|
|||
Net transfer of mortgage loans held for sale from REO in other assets
(2)
|
5
|
|
|
|
14
|
|
|
23
|
|
|||
Changes in fair value
|
6
|
|
|
|
(1
|
)
|
|
9
|
|
|||
Other purchase-related activities
(3)
|
(2
|
)
|
|
|
9
|
|
|
19
|
|
|||
Balance - end of period
|
$
|
1,631
|
|
|
|
$
|
1,514
|
|
|
$
|
1,891
|
|
(1)
|
Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale.
|
(2)
|
Net amounts are comprised of REO in the sales process which are transferred to other assets and certain government insured mortgage REO which are transferred from other assets upon completion of the sale so that the claims process can begin.
|
(3)
|
Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts.
|
|
Successor
|
||
|
December 31, 2018
|
||
Mortgage loans held for investment, net – UPB
|
$
|
156
|
|
Fair value adjustments
|
(37
|
)
|
|
Total mortgage loans held for investment at fair value
|
$
|
119
|
|
|
Predecessor
|
||
|
December 31, 2017
|
||
Mortgage loans held for investment, net - UPB
|
$
|
193
|
|
Transfer discount:
|
|
||
Non-accretable
|
(41
|
)
|
|
Accretable
|
(12
|
)
|
|
Allowance for loan losses
|
(1
|
)
|
|
Total mortgage loans held for investment, net
|
$
|
139
|
|
|
Successor
|
||||||
|
December 31, 2018
|
||||||
Mortgage Loans Held for Investment - UPB
|
UPB
|
|
Fair Value
|
||||
Non-accrual
|
$
|
27
|
|
|
$
|
13
|
|
|
Successor
|
||
Mortgage loans held for investment at fair value
|
For the Period August 1 - December 31, 2018
|
||
Balance - beginning of period
|
$
|
125
|
|
Payments received from borrowers
|
(5
|
)
|
|
Charge-offs
|
(3
|
)
|
|
Changes in fair value
|
2
|
|
|
Balance - end of period
|
$
|
119
|
|
|
Successor
|
|
|
Predecessor
|
|
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
|
Estimated Useful Life
|
||||
Furniture, fixtures, and equipment
|
$
|
32
|
|
|
|
$
|
57
|
|
|
3 - 5 years
|
Capitalized software costs
|
24
|
|
|
|
152
|
|
|
3 - 5 years
|
||
Software in development and other
|
24
|
|
|
|
12
|
|
|
|
||
Leasehold improvements
|
22
|
|
|
|
19
|
|
|
3 - 5 years
|
||
Long-term capital leases - computer equipment
|
10
|
|
|
|
50
|
|
|
5 years
|
||
Property and equipment
|
112
|
|
|
|
290
|
|
|
|
||
Less: Accumulated depreciation
|
(16
|
)
|
|
|
(169
|
)
|
|
|
||
Total property and equipment, net
|
$
|
96
|
|
|
|
$
|
121
|
|
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Loans subject to repurchase right from Ginnie Mae
|
$
|
266
|
|
|
|
$
|
218
|
|
Accrued revenues
|
145
|
|
|
|
148
|
|
||
Intangible assets
|
117
|
|
|
|
19
|
|
||
Goodwill
|
23
|
|
|
|
72
|
|
||
Other
|
244
|
|
|
|
222
|
|
||
Total other assets
|
$
|
795
|
|
|
|
$
|
679
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Balance - beginning of period
(1)
|
$
|
10
|
|
|
|
$
|
72
|
|
|
$
|
74
|
|
Addition from acquisitions
(2)
|
13
|
|
|
|
—
|
|
|
—
|
|
|||
Goodwill disposition
|
—
|
|
|
|
—
|
|
|
(2
|
)
|
|||
Balance - end of period
|
$
|
23
|
|
|
|
$
|
72
|
|
|
$
|
72
|
|
(1)
|
Beginning balance for the Successor includes goodwill of
$10
in connection with the acquisition of Nationstar on July 31, 2018, 2018. See further discussion in
Note 3, Acquisitions
.
|
(2)
|
As discussed in
Note 3, Acquisitions
, the Company recorded goodwill of
$13
in connection with the acquisition of Assurant Mortgage Solutions in 2018.
|
|
Successor
|
||||||||||||
|
December 31, 2018
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Weighted Average Remaining Life in Years
|
||||||
Customer relationships
|
$
|
77
|
|
|
$
|
(14
|
)
|
|
$
|
63
|
|
|
5.6
|
Technology
|
52
|
|
|
(8
|
)
|
|
44
|
|
|
3.6
|
|||
Trade name
|
8
|
|
|
(1
|
)
|
|
7
|
|
|
4.6
|
|||
Other
|
3
|
|
|
—
|
|
|
3
|
|
|
4.8
|
|||
Total intangible assets
|
$
|
140
|
|
|
$
|
(23
|
)
|
|
$
|
117
|
|
|
4.7
|
|
Predecessor
|
||||||||||||
|
December 31, 2017
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Weighted Average Remaining Life in Years
|
||||||
Trade name
|
$
|
8
|
|
|
$
|
(3
|
)
|
|
$
|
5
|
|
|
6.6
|
Customer relationships
|
12
|
|
|
(6
|
)
|
|
6
|
|
|
4.7
|
|||
Purchased software
|
12
|
|
|
(5
|
)
|
|
7
|
|
|
4.0
|
|||
Licenses
|
1
|
|
|
—
|
|
|
1
|
|
|
Indefinite
|
|||
Total intangible assets
|
$
|
33
|
|
|
$
|
(14
|
)
|
|
$
|
19
|
|
|
4.8
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
47
|
|
2020
|
|
32
|
|
|
2021
|
|
17
|
|
|
2022
|
|
13
|
|
|
2023
|
|
8
|
|
|
Thereafter
|
|
—
|
|
|
Total future amortization expense
|
|
$
|
117
|
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
|
|
December 31, 2018
|
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
||||||||||
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded Gains/(Losses)
|
|
|
Recorded Gains/(Losses)
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
||||||||
Loan sale commitments
|
2019
|
|
$
|
319
|
|
|
$
|
13.5
|
|
|
$
|
2.8
|
|
|
|
$
|
10.5
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
2019
|
|
1,301
|
|
|
47.6
|
|
|
(12.1
|
)
|
|
|
0.4
|
|
||||
Forward sales of MBS
|
2019
|
|
485
|
|
|
0.1
|
|
|
(3.1
|
)
|
|
|
0.9
|
|
||||
LPCs
|
2019
|
|
215
|
|
|
1.7
|
|
|
0.4
|
|
|
|
0.3
|
|
||||
Treasury futures
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
|
(1.8
|
)
|
||||
Eurodollar futures
(1)
|
2019-2021
|
|
19
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
|
||||||||
IRLCs
(1)
|
2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
||||
Forward sales of MBS
|
2019
|
|
2,639
|
|
|
19.3
|
|
|
17.4
|
|
|
|
(1.0
|
)
|
||||
LPCs
|
2019
|
|
90
|
|
|
0.4
|
|
|
(0.2
|
)
|
|
|
0.1
|
|
||||
Treasury futures
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
|
(1.3
|
)
|
||||
Eurodollar futures
(1)
|
2019-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
|
|
Predecessor
|
||||||||||
|
|
|
December 31, 2017
|
|
Year ended December 31, 2017
|
||||||||
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded
Gains/(Losses)
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
(1)
|
2018
|
|
$
|
13
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2018
|
|
2,065
|
|
|
59.3
|
|
|
(32.9
|
)
|
|||
Forward sales of MBS
|
2018
|
|
1,802
|
|
|
2.4
|
|
|
(36.9
|
)
|
|||
LPCs
|
2018
|
|
171
|
|
|
0.9
|
|
|
(1.0
|
)
|
|||
Treasury futures
|
2018
|
|
81
|
|
|
1.9
|
|
|
1.9
|
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
26
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2018
|
|
7
|
|
|
—
|
|
|
1.1
|
|
|||
Forward sales of MBS
|
2018
|
|
1,579
|
|
|
2.8
|
|
|
7.2
|
|
|||
LPCs
|
2018
|
|
213
|
|
|
0.6
|
|
|
0.9
|
|
|||
Treasury futures
|
2018
|
|
128
|
|
|
1.4
|
|
|
(1.4
|
)
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
17
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
0.1
|
|
(1)
|
Fair values or recorded gains/(losses) of derivative instruments are less than
$0.1
for the specified dates.
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Nationstar agency advance receivables trust
|
|
LIBOR+1.5% to 2.6%
|
|
December 2020
|
|
Servicing advance receivables
|
|
$
|
350
|
|
|
$
|
218
|
|
|
$
|
255
|
|
|
|
$
|
416
|
|
|
$
|
492
|
|
Nationstar mortgage advance receivable trust
|
|
LIBOR+1.5% to 6.5%
|
|
August 2021
|
|
Servicing advance receivables
|
|
325
|
|
|
209
|
|
|
284
|
|
|
|
230
|
|
|
287
|
|
|||||
MBS servicer advance facility (2014)
|
|
CPRATE+2.5%
|
|
December 2019
|
|
Servicing advance receivables
|
|
125
|
|
|
90
|
|
|
149
|
|
|
|
44
|
|
|
140
|
|
|||||
Nationstar agency advance financing facility
|
|
LIBOR+1.5%
|
|
July 2020
|
|
Servicing advance receivables
|
|
125
|
|
|
78
|
|
|
89
|
|
|
|
102
|
|
|
117
|
|
|||||
MBS advance financing facility
|
|
LIBOR+2.5%
|
|
March 2019
|
|
Servicing advance receivables
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
63
|
|
|
64
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
595
|
|
|
$
|
777
|
|
|
|
855
|
|
|
$
|
1,100
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
||||||||||||
Advance facilities, net
|
|
|
|
$
|
595
|
|
|
|
|
|
$
|
855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,200 warehouse facility
|
|
LIBOR+1.9% to 3.8%
|
|
March 2019
|
|
Mortgage loans or MBS
|
|
$
|
1,200
|
|
|
$
|
464
|
|
|
$
|
514
|
|
|
|
$
|
889
|
|
|
$
|
960
|
|
$1,000 warehouse facility
|
|
LIBOR+1.6% to 2.5%
|
|
September 2019
|
|
Mortgage loans or MBS
|
|
1,000
|
|
|
137
|
|
|
140
|
|
|
|
299
|
|
|
308
|
|
|||||
$950 warehouse facility
|
|
LIBOR+1.7% to 3.5%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
950
|
|
|
560
|
|
|
622
|
|
|
|
721
|
|
|
785
|
|
|||||
$600 warehouse facility
|
|
LIBOR+2.5%
|
|
February 2020
|
|
Mortgage loans or MBS
|
|
600
|
|
|
151
|
|
|
168
|
|
|
|
333
|
|
|
347
|
|
|||||
$500 warehouse facility
|
|
LIBOR+2.0% to 2.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
500
|
|
|
290
|
|
|
299
|
|
|
|
—
|
|
|
—
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.5% to 2.8%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
220
|
|
|
248
|
|
|
|
305
|
|
|
337
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.5% to 3.0%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
187
|
|
|
200
|
|
|
|
246
|
|
|
272
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
August 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
119
|
|
|
122
|
|
|
|
233
|
|
|
239
|
|
|||||
$300 warehouse facility
|
|
LIBOR+2.3%
|
|
January 2020
|
|
Mortgage loans or MBS
|
|
300
|
|
|
103
|
|
|
132
|
|
|
|
116
|
|
|
141
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.3%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
18
|
|
|
19
|
|
|
|
80
|
|
|
81
|
|
|||||
$40 warehouse facility
|
|
LIBOR+3.0%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
40
|
|
|
1
|
|
|
2
|
|
|
|
4
|
|
|
6
|
|
|||||
|
|
|
|
|
|
|
|
|
|
2,250
|
|
|
2,466
|
|
|
|
3,226
|
|
|
3,476
|
|
||||||
MSRs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$200 warehouse facility
(1)
|
|
LIBOR+3.8%
|
|
March 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
—
|
|
|
430
|
|
|
|
—
|
|
|
377
|
|
|||||
$200 warehouse facility
|
|
LIBOR+4.0%
|
|
June 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
100
|
|
|
928
|
|
|
|
50
|
|
|
594
|
|
|||||
$175 warehouse facility
|
|
LIBOR+2.3%
|
|
December 2020
|
|
Mortgage loans or MBS
|
|
175
|
|
|
—
|
|
|
226
|
|
|
|
—
|
|
|
200
|
|
|||||
$50 warehouse facility
|
|
LIBOR+4.5%
|
|
August 2020
|
|
Mortgage loans or MBS
|
|
50
|
|
|
—
|
|
|
102
|
|
|
|
10
|
|
|
90
|
|
|||||
|
|
|
|
|
|
|
|
|
|
100
|
|
|
1,686
|
|
|
|
60
|
|
|
1,261
|
|
||||||
Warehouse facilities principal amount
|
|
|
|
|
|
2,350
|
|
|
$
|
4,152
|
|
|
|
3,286
|
|
|
$
|
4,737
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
(1
|
)
|
|
|
|
|
(1
|
)
|
|
|
||||||||||||
Warehouse facilities, net
|
|
|
|
$
|
2,349
|
|
|
|
|
|
$
|
3,285
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans held for sale and mortgage loans held for investment
|
|
|
|
|
|
|
|
$
|
1,528
|
|
|
$
|
1,628
|
|
|
|
$
|
1,792
|
|
|
$
|
1,901
|
|
||||
Reverse mortgage interests
|
|
|
|
|
|
|
|
722
|
|
|
838
|
|
|
|
1,434
|
|
|
1,575
|
|
||||||||
MSRs
|
|
|
|
|
|
|
|
100
|
|
|
1,686
|
|
|
|
60
|
|
|
1,261
|
|
(1)
|
The capacity amount of this facility is a sublimit of the
$1,200
warehouse facility.
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023
(1)
|
$
|
950
|
|
|
|
$
|
—
|
|
$750 face value, 9.125% interest rate payable semi-annually, due July 2026
(1)
|
750
|
|
|
|
—
|
|
||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
(2)
|
592
|
|
|
|
595
|
|
||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
(2)
|
206
|
|
|
|
206
|
|
||
$475 face value, 6.500% interest rate payable semi-annually, due August 2018
(3)
|
—
|
|
|
|
364
|
|
||
$400 face value, 7.875% interest rate payable semi-annually, due October 2020
(3)
|
—
|
|
|
|
397
|
|
||
$375 face value, 9.625% interest rate payable semi-annually, due May 2019
(3)
|
—
|
|
|
|
323
|
|
||
Unsecured senior notes principal amount
|
2,498
|
|
|
|
1,885
|
|
||
Unamortized debt issuance costs, net of premium, and discount
|
(39
|
)
|
|
|
(11
|
)
|
||
Unsecured senior notes, net
|
$
|
2,459
|
|
|
|
$
|
1,874
|
|
(1)
|
On July 13, 2018, Merger Sub issued
$950
aggregate principal amount of the
8.125%
Notes due 2023 and
$750
aggregate principal amount of the
9.125%
Notes due 2026. The proceeds from the New Notes were used, together with the proceeds from the issuance of WMIH’s common stock and WMIH’s cash and restricted cash on hand, to consummate the Merger with Nationstar and the refinancing of certain Nationstar’s existing debt and to pay related fees and expenses. At the consummation of the acquisition, Merger Sub merged with and into Nationstar with Nationstar assuming the obligations under the New Notes.
|
(2)
|
In June 2018, the Predecessor entered into a supplemental indenture to, among other things, modify the definition of “Change of Control” to provide that the Merger will not constitute a change of control which would otherwise trigger redemption obligations.
|
(3)
|
The note of the Predecessor was paid off or redeemed in August 2018.
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Total
|
|
$
|
2,498
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
|
|
Predecessor
|
||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
December 31, 2017
|
||||||
|
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
|
Outstanding
|
||||||
Participating interest financing
(1)
|
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
5,607
|
|
|
|
$
|
7,111
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2016-2
|
|
June 2016
|
|
June 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
|
94
|
|
|||
Trust 2016-3
|
|
August 2016
|
|
August 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
|
138
|
|
|||
Trust 2017-1
|
|
May 2017
|
|
May 2027
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
|
213
|
|
|||
Trust 2017-2
|
|
September 2017
|
|
September 2027
|
|
A, M1, M2
|
|
284
|
|
|
231
|
|
|
|
365
|
|
|||
Trust 2018-1
|
|
March 2018
|
|
March 2028
|
|
A, M1, M2, M3, M4, M5
|
|
308
|
|
|
284
|
|
|
|
—
|
|
|||
Trust 2018-2
|
|
August 2018
|
|
August 2028
|
|
A, M1, M2, M3, M4, M5
|
|
260
|
|
|
250
|
|
|
|
—
|
|
|||
Trust 2018-3
|
|
November 2018
|
|
November 2028
|
|
A, M1, M2, M3, M4, M5
|
|
350
|
|
|
326
|
|
|
|
—
|
|
|||
Nonrecourse debt - legacy assets
|
|
November 2009
|
|
October 2039
|
|
A
|
|
105
|
|
|
29
|
|
|
|
42
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
|
6,727
|
|
|
|
7,963
|
|
||||
Unamortized debt issuance costs, net of premium, and issuance discount
(2)
|
|
|
|
|
|
|
|
|
|
68
|
|
|
|
51
|
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
|
$
|
6,795
|
|
|
|
$
|
8,014
|
|
(1)
|
Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios.
|
(2)
|
The Predecessor amount includes a premium of
$62
as of
December 31, 2017
.
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Payables to servicing and subservicing investors
|
$
|
494
|
|
|
|
$
|
516
|
|
Loans subject to repurchase from Ginnie Mae
|
266
|
|
|
|
218
|
|
||
MSR purchases payable including advances
|
182
|
|
|
|
10
|
|
||
Payable to GSEs and securitized trusts
|
105
|
|
|
|
92
|
|
||
Other liabilities
|
496
|
|
|
|
403
|
|
||
Total payables and accrued liabilities
|
$
|
1,543
|
|
|
|
$
|
1,239
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
Repurchase Reserves
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
||||||
Balance - beginning of period
|
$
|
9
|
|
|
|
$
|
9
|
|
|
$
|
18
|
|
Provisions
|
3
|
|
|
|
3
|
|
|
7
|
|
|||
Releases
|
(4
|
)
|
|
|
(3
|
)
|
|
(14
|
)
|
|||
Charge-offs
|
—
|
|
|
|
—
|
|
|
(2
|
)
|
|||
Balance - end of period
|
$
|
8
|
|
|
|
$
|
9
|
|
|
$
|
9
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
December 31, 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
|
$
|
70
|
|
|
$
|
63
|
|
|
|
$
|
106
|
|
|
$
|
26
|
|
Reverse mortgage interests, net
|
—
|
|
|
6,770
|
|
|
|
—
|
|
|
7,981
|
|
||||
Advances and other receivables, net
|
628
|
|
|
—
|
|
|
|
896
|
|
|
—
|
|
||||
Mortgage loans held for investment
|
118
|
|
|
—
|
|
|
|
138
|
|
|
—
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
|
2
|
|
|
—
|
|
||||
Total assets
|
$
|
816
|
|
|
$
|
6,833
|
|
|
|
$
|
1,142
|
|
|
$
|
8,007
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Advance facilities
(1)
|
$
|
505
|
|
|
$
|
—
|
|
|
|
$
|
749
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
1
|
|
|
1
|
|
|
|
2
|
|
|
1
|
|
||||
Participating interest financing
(2)
|
—
|
|
|
5,607
|
|
|
|
—
|
|
|
7,111
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
—
|
|
|
—
|
|
|
|
—
|
|
|
94
|
|
||||
Trust 2016-3
|
—
|
|
|
—
|
|
|
|
—
|
|
|
138
|
|
||||
Trust 2017-1
|
—
|
|
|
—
|
|
|
|
—
|
|
|
213
|
|
||||
Trust 2017-2
|
—
|
|
|
231
|
|
|
|
—
|
|
|
365
|
|
||||
Trust 2018-1
|
—
|
|
|
284
|
|
|
|
—
|
|
|
—
|
|
||||
Trust 2018-2
|
—
|
|
|
250
|
|
|
|
—
|
|
|
—
|
|
||||
Trust 2018-3
|
—
|
|
|
326
|
|
|
|
—
|
|
|
—
|
|
||||
Nonrecourse debt–legacy assets
|
29
|
|
|
—
|
|
|
|
42
|
|
|
—
|
|
||||
Total liabilities
|
$
|
535
|
|
|
$
|
6,699
|
|
|
|
$
|
793
|
|
|
$
|
7,922
|
|
(1)
|
Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in
Note 11, Indebtedness
for additional information.
|
(2)
|
Participating interest financing excludes premiums.
|
|
Successor
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Total collateral balances
|
$
|
1,873
|
|
|
|
$
|
2,291
|
|
Total certificate balances
|
$
|
1,817
|
|
|
|
$
|
2,129
|
|
|
Successor
|
|
|
Predecessor
|
||||
Principal Amount of Loans 60 Days or More Past Due
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Unconsolidated securitization trusts
|
$
|
285
|
|
|
|
$
|
448
|
|
|
Shares (or Units)
(in thousands)
|
|
Weighted-Average Grant Date Fair Value, per Share (or Unit)
|
|||
Predecessor
|
|
|
|
|||
Equity awards outstanding as of December 31, 2017
|
2,105
|
|
|
$
|
17.33
|
|
Granted
|
1,278
|
|
|
14.77
|
|
|
Forfeited
|
(1,196
|
)
|
|
16.52
|
|
|
Vested
|
(1,061
|
)
|
|
16.20
|
|
|
Equity awards outstanding as of July 31, 2018
|
1,126
|
|
|
16.27
|
|
|
|
|
|
|
|||
Successor
|
|
|
|
|||
Equity awards outstanding as of August 1, 2018
|
1,154
|
|
|
$
|
16.27
|
|
Granted
|
2,382
|
|
|
14.95
|
|
|
Forfeited
|
(43
|
)
|
|
16.16
|
|
|
Vested
|
(20
|
)
|
|
16.16
|
|
|
Equity awards outstanding as of December 31, 2018
|
3,473
|
|
|
15.53
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Net income attributable to Successor/Predecessor
|
$
|
884
|
|
|
|
$
|
154
|
|
|
$
|
30
|
|
|
$
|
19
|
|
Less: Undistributed earnings attributable to participating stockholders
|
8
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income attributable to common stockholders
|
$
|
876
|
|
|
|
$
|
154
|
|
|
$
|
30
|
|
|
$
|
19
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
9.65
|
|
|
|
$
|
1.57
|
|
|
$
|
0.31
|
|
|
$
|
0.19
|
|
Diluted
|
$
|
9.54
|
|
|
|
$
|
1.55
|
|
|
$
|
0.30
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
90,813
|
|
|
|
98,046
|
|
|
97,696
|
|
|
99,765
|
|
||||
Dilutive effect of stock awards
|
178
|
|
|
|
1,091
|
|
|
1,107
|
|
|
880
|
|
||||
Dilutive effect of participating securities
|
839
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted
|
91,830
|
|
|
|
99,137
|
|
|
98,803
|
|
|
100,645
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
|||||||||
Current Income Taxes
|
|
|
|
|
|
|
|
|
||||||||
Federal
|
$
|
—
|
|
|
|
$
|
(14
|
)
|
|
$
|
52
|
|
|
$
|
14
|
|
State
|
—
|
|
|
|
(1
|
)
|
|
7
|
|
|
4
|
|
||||
Total current income taxes
|
—
|
|
|
|
(15
|
)
|
|
59
|
|
|
18
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Deferred Income Taxes
|
|
|
|
|
|
|
|
|
||||||||
Federal
|
(1,015
|
)
|
|
|
54
|
|
|
(43
|
)
|
|
(4
|
)
|
||||
State
|
(6
|
)
|
|
|
9
|
|
|
(3
|
)
|
|
(1
|
)
|
||||
Total deferred income taxes
|
(1,021
|
)
|
|
|
63
|
|
|
(46
|
)
|
|
(5
|
)
|
||||
Total provision for income taxes
|
$
|
(1,021
|
)
|
|
|
$
|
48
|
|
|
$
|
13
|
|
|
$
|
13
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||||||||||
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||||||||||||||
Tax (Benefit) Expense at Federal Statutory Rate
|
$
|
(29
|
)
|
|
21.0
|
%
|
|
|
$
|
42
|
|
|
21.0
|
%
|
|
$
|
15
|
|
|
35.0
|
%
|
|
$
|
10
|
|
|
35.0
|
%
|
Effect of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
State taxes, net of federal benefit
|
(6
|
)
|
|
4.2
|
%
|
|
|
8
|
|
|
3.8
|
%
|
|
1
|
|
|
1.9
|
%
|
|
1
|
|
|
5.0
|
%
|
||||
Non-controlling interests
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
(0.3
|
)%
|
|
1
|
|
|
3.4
|
%
|
||||
Decrease of federal valuation allowance
|
(990
|
)
|
|
720.0
|
%
|
|
|
—
|
|
|
—
|
%
|
|
(1
|
)
|
|
(1.2
|
)%
|
|
—
|
|
|
—
|
%
|
||||
Deferred adjustments
|
3
|
|
|
(1.8
|
)%
|
|
|
(1
|
)
|
|
(0.5
|
)%
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
2.3
|
%
|
||||
Federal tax reform impact
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
(5
|
)
|
|
(12.6
|
)%
|
|
—
|
|
|
—
|
%
|
||||
Current payable adjustments
|
—
|
|
|
—
|
%
|
|
|
(1
|
)
|
|
(0.5
|
)%
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
1.9
|
%
|
||||
Adjustments related to uncertain tax positions
|
—
|
|
|
—
|
%
|
|
|
—
|
|
|
—
|
%
|
|
1
|
|
|
2.4
|
%
|
|
—
|
|
|
—
|
%
|
||||
Other, net
|
1
|
|
|
(1.0
|
)%
|
|
|
—
|
|
|
—
|
%
|
|
2
|
|
|
3.7
|
%
|
|
(1
|
)
|
|
(2.4
|
)%
|
||||
Total income tax (benefit) expense
|
$
|
(1,021
|
)
|
|
742.4
|
%
|
|
|
$
|
48
|
|
|
23.8
|
%
|
|
$
|
13
|
|
|
28.9
|
%
|
|
$
|
13
|
|
|
45.2
|
%
|
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
|
|
|
Predecessor
|
||||
|
December 31, 2018
|
|
|
December 31, 2017
|
||||
Deferred Tax Assets
|
|
|
|
|
||||
Effect of:
|
|
|
|
|
||||
Loss carryforwards (federal, state and capital)
|
$
|
1,334
|
|
|
|
$
|
37
|
|
Excess interest expense
|
10
|
|
|
|
—
|
|
||
Reverse mortgage interests
|
68
|
|
|
|
—
|
|
||
Loss reserves
|
69
|
|
|
|
81
|
|
||
Reverse mortgage premiums
|
1
|
|
|
|
15
|
|
||
Rent expense
|
1
|
|
|
|
4
|
|
||
Restricted share based compensation
|
1
|
|
|
|
6
|
|
||
Accruals
|
14
|
|
|
|
10
|
|
||
Partnership interests
|
7
|
|
|
|
5
|
|
||
Reverse mortgage purchase discount
|
1
|
|
|
|
24
|
|
||
Goodwill and intangible assets
|
4
|
|
|
|
—
|
|
||
Other, net
|
5
|
|
|
|
3
|
|
||
Total deferred tax assets
|
1,515
|
|
|
|
185
|
|
||
|
|
|
|
|
||||
Deferred Tax Liabilities
|
|
|
|
|
||||
MSR amortization and mark-to-market, net
|
(243
|
)
|
|
|
(174
|
)
|
||
Depreciation and amortization, net
|
(12
|
)
|
|
|
(20
|
)
|
||
Prepaid assets
|
(1
|
)
|
|
|
(2
|
)
|
||
Goodwill and intangible assets
|
—
|
|
|
|
(1
|
)
|
||
Total deferred tax liabilities
|
(256
|
)
|
|
|
(197
|
)
|
||
Valuation allowance
|
(295
|
)
|
|
|
(4
|
)
|
||
Net deferred tax assets (liabilities)
|
$
|
964
|
|
|
|
$
|
(16
|
)
|
|
Successor
|
|
|
Predecessor
|
||||||||||||
Unrecognized Tax Benefits
|
For the Period August 1 - December 31, 2018
|
|
|
For the Period January 1 - July 31, 2018
|
|
Year ended December 31, 2017
|
|
Year ended December 31, 2016
|
||||||||
Balance - beginning of period
|
$
|
—
|
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Increases in tax positions of current year
|
—
|
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Increases in tax positions of prior years
|
—
|
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
Decreases in tax positions of prior years
|
—
|
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
||||
Settlements
|
—
|
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
||||
Balance - end of period
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
Successor
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
Total Fair Value
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,630.8
|
|
|
$
|
—
|
|
|
$
|
1,630.8
|
|
|
$
|
—
|
|
Mortgage loans held for investment
(1)
|
119.1
|
|
|
—
|
|
|
—
|
|
|
119.1
|
|
||||
Forward mortgage servicing rights
(1)
|
3,665.4
|
|
|
—
|
|
|
—
|
|
|
3,665.4
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
47.6
|
|
|
—
|
|
|
47.6
|
|
|
—
|
|
||||
Forward MBS trades
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
LPCs
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,464.7
|
|
|
$
|
—
|
|
|
$
|
1,680.2
|
|
|
$
|
3,784.5
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
$
|
19.3
|
|
|
$
|
—
|
|
|
$
|
19.3
|
|
|
$
|
—
|
|
LPCs
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
||||
Excess spread financing
|
1,184.4
|
|
|
—
|
|
|
—
|
|
|
1,184.4
|
|
||||
Total liabilities
|
$
|
1,235.8
|
|
|
$
|
—
|
|
|
$
|
19.7
|
|
|
$
|
1,216.1
|
|
(1)
|
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
|
(2)
|
Fair values of the underlying assets and liabilities are less than
$0.1
for the specified dates.
|
|
Predecessor
|
||||||||||||||
|
December 31, 2017
|
||||||||||||||
|
Total Fair Value
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,890.8
|
|
|
$
|
—
|
|
|
$
|
1,890.8
|
|
|
$
|
—
|
|
Forward mortgage servicing rights
(1)
|
2,937.4
|
|
|
—
|
|
|
—
|
|
|
2,937.4
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
59.3
|
|
|
—
|
|
|
59.3
|
|
|
—
|
|
||||
Forward MBS trades
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
||||
LPCs
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Total assets
|
$
|
4,892.7
|
|
|
$
|
—
|
|
|
$
|
1,955.3
|
|
|
$
|
2,937.4
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
$
|
2.8
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
LPCs
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
||||
Excess spread financing
|
996.5
|
|
|
—
|
|
|
—
|
|
|
996.5
|
|
||||
Total liabilities
|
$
|
1,010.8
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
|
$
|
1,006.0
|
|
(1)
|
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
|
(2)
|
Fair values of the underlying assets and liabilities are less than
$0.1
for the specified dates.
|
|
Successor
|
||||||||||||||
|
Assets
|
|
Liabilities
|
||||||||||||
For the Period August 1 - December 31, 2018
|
Forward mortgage
servicing rights
|
|
Mortgage loans held for investment
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||||
Balance - beginning of period
|
$
|
3,413
|
|
|
$
|
125
|
|
|
$
|
1,039
|
|
|
$
|
26
|
|
Total gains or losses included in earnings
|
(236
|
)
|
|
(3
|
)
|
|
5
|
|
|
6
|
|
||||
Payments received from borrowers
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
||||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
479
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuances
|
120
|
|
|
—
|
|
|
255
|
|
|
—
|
|
||||
Sales
|
(111
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
—
|
|
||||
Changes in fair value
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
||||
Balance - end of period
|
$
|
3,665
|
|
|
$
|
119
|
|
|
$
|
1,184
|
|
|
$
|
32
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
For the Period January 1 - July 31, 2018
|
Forward mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
Balance - beginning of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
Total gains or losses included in earnings
|
166
|
|
|
81
|
|
|
16
|
|
|||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
||||||
Purchases
|
144
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
162
|
|
|
70
|
|
|
—
|
|
|||
Sales
|
4
|
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
(3
|
)
|
|
|
||||
Settlements
|
—
|
|
|
(105
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,413
|
|
|
$
|
1,039
|
|
|
$
|
26
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
Year ended December 31, 2017
|
Forward mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Balance - beginning of period
|
$
|
3,160
|
|
|
$
|
1,214
|
|
|
$
|
27
|
|
Total gains or losses included in earnings
|
(432
|
)
|
|
12
|
|
|
(17
|
)
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
66
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
203
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
(60
|
)
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
(23
|
)
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(207
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
|
Successor
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
242
|
|
|
$
|
242
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
319
|
|
|
319
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,194
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||
Reverse mortgage interests, net
|
7,934
|
|
|
—
|
|
|
—
|
|
|
7,942
|
|
||||
Mortgage loans held for sale
|
1,631
|
|
|
—
|
|
|
1,631
|
|
|
—
|
|
||||
Mortgage loans held for investment
|
119
|
|
|
—
|
|
|
—
|
|
|
119
|
|
||||
Derivative financial instruments
|
49
|
|
|
—
|
|
|
49
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,459
|
|
|
2,451
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
595
|
|
|
—
|
|
|
595
|
|
|
—
|
|
||||
Warehouse facilities
|
2,349
|
|
|
—
|
|
|
2,349
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
||||
Excess spread financing
|
1,184
|
|
|
—
|
|
|
—
|
|
|
1,184
|
|
||||
Derivative financial instruments
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
Participating interest financing
|
5,675
|
|
|
—
|
|
|
—
|
|
|
5,672
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-2
|
231
|
|
|
—
|
|
|
—
|
|
|
230
|
|
||||
Trust 2018-1
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Trust 2018-2
|
250
|
|
|
—
|
|
|
—
|
|
|
249
|
|
||||
Trust 2018-3
|
326
|
|
|
—
|
|
|
—
|
|
|
326
|
|
||||
Nonrecourse debt - legacy assets
|
29
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
Predecessor
|
||||||||||||||
|
December 31, 2017
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
215
|
|
|
$
|
215
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
360
|
|
|
360
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,706
|
|
|
—
|
|
|
—
|
|
|
1,706
|
|
||||
Reverse mortgage interests, net
|
9,984
|
|
|
—
|
|
|
—
|
|
|
10,164
|
|
||||
Mortgage loans held for sale
|
1,891
|
|
|
—
|
|
|
1,891
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
139
|
|
|
—
|
|
|
—
|
|
|
139
|
|
||||
Derivative financial instruments
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
1,874
|
|
|
1,912
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
855
|
|
|
—
|
|
|
855
|
|
|
—
|
|
||||
Warehouse facilities
|
3,285
|
|
|
—
|
|
|
3,286
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Excess spread financing
|
996
|
|
|
—
|
|
|
—
|
|
|
996
|
|
||||
Derivative financial instruments
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Participating interest financing
|
7,167
|
|
|
—
|
|
|
7,353
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
94
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||
Trust 2016-3
|
138
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||
Trust 2017-1
|
213
|
|
|
—
|
|
|
—
|
|
|
225
|
|
||||
Trust 2017-2
|
365
|
|
|
—
|
|
|
—
|
|
|
371
|
|
||||
Nonrecourse debt - legacy assets
|
37
|
|
|
—
|
|
|
—
|
|
|
36
|
|
Year Ending December 31,
|
Operating Leases
|
|
Capital Leases
|
||||
2019
|
$
|
32
|
|
|
$
|
2
|
|
2020
|
30
|
|
|
—
|
|
||
2021
|
24
|
|
|
—
|
|
||
2022
|
16
|
|
|
—
|
|
||
2023 and thereafter
|
46
|
|
|
—
|
|
||
Total minimum lease payments
|
148
|
|
|
2
|
|
||
Less: Amounts representing interest
|
—
|
|
|
—
|
|
||
Present value of minimum lease payments
|
$
|
148
|
|
|
$
|
2
|
|
|
Successor
|
||||||||||||||||||||||||||
|
For the Period August 1 - December 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating
Segments |
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
236
|
|
|
$
|
24
|
|
|
$
|
177
|
|
|
$
|
(19
|
)
|
|
$
|
418
|
|
|
$
|
—
|
|
|
$
|
418
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
157
|
|
|
—
|
|
|
19
|
|
|
176
|
|
|
—
|
|
|
176
|
|
|||||||
Total revenues
|
236
|
|
|
181
|
|
|
177
|
|
|
—
|
|
|
594
|
|
|
—
|
|
|
594
|
|
|||||||
Total expenses
|
303
|
|
|
155
|
|
|
178
|
|
|
—
|
|
|
636
|
|
|
71
|
|
|
707
|
|
|||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
222
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
249
|
|
|
7
|
|
|
256
|
|
|||||||
Interest expense
|
(173
|
)
|
|
(26
|
)
|
|
(1
|
)
|
|
—
|
|
|
(200
|
)
|
|
(93
|
)
|
|
(293
|
)
|
|||||||
Other income
|
6
|
|
|
5
|
|
|
1
|
|
|
—
|
|
|
12
|
|
|
1
|
|
|
13
|
|
|||||||
Total other income (expenses), net
|
55
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
61
|
|
|
(85
|
)
|
|
(24
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
(12
|
)
|
|
$
|
32
|
|
|
$
|
(1
|
)
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
(156
|
)
|
|
$
|
(137
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
9
|
|
|
$
|
5
|
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
19
|
|
|
$
|
20
|
|
|
$
|
39
|
|
Total assets
|
$
|
13,485
|
|
|
$
|
4,866
|
|
|
$
|
493
|
|
|
$
|
(3,772
|
)
|
|
$
|
15,072
|
|
|
$
|
1,901
|
|
|
$
|
16,973
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
For the Period January 1 - July 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating
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 income (expense)
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total other income (expenses), net
|
19
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
29
|
|
|
(78
|
)
|
|
(49
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
285
|
|
|
$
|
62
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
(180
|
)
|
|
$
|
202
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
4
|
|
|
$
|
33
|
|
Total assets
|
$
|
14,578
|
|
|
$
|
4,701
|
|
|
$
|
425
|
|
|
$
|
(3,591
|
)
|
|
$
|
16,113
|
|
|
$
|
913
|
|
|
$
|
17,026
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
Year Ended December 31, 2017
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating
Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
766
|
|
|
$
|
63
|
|
|
$
|
291
|
|
|
$
|
(79
|
)
|
|
$
|
1,041
|
|
|
$
|
2
|
|
|
$
|
1,043
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
528
|
|
|
—
|
|
|
79
|
|
|
607
|
|
|
—
|
|
|
607
|
|
|||||||
Total revenues
|
766
|
|
|
591
|
|
|
291
|
|
|
—
|
|
|
1,648
|
|
|
2
|
|
|
1,650
|
|
|||||||
Total expenses
|
691
|
|
|
439
|
|
|
247
|
|
|
—
|
|
|
1,377
|
|
|
98
|
|
|
1,475
|
|
|||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
527
|
|
|
55
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|
15
|
|
|
597
|
|
|||||||
Interest expense
|
(523
|
)
|
|
(54
|
)
|
|
—
|
|
|
—
|
|
|
(577
|
)
|
|
(154
|
)
|
|
(731
|
)
|
|||||||
Other income (expense)
|
(3
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
6
|
|
|
(3
|
)
|
|
3
|
|
|||||||
Total other income (expenses), net
|
1
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
11
|
|
|
(142
|
)
|
|
(131
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
76
|
|
|
$
|
153
|
|
|
$
|
53
|
|
|
$
|
—
|
|
|
$
|
282
|
|
|
$
|
(238
|
)
|
|
$
|
44
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
23
|
|
|
$
|
10
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
47
|
|
|
$
|
12
|
|
|
$
|
59
|
|
Total assets
|
$
|
15,006
|
|
|
$
|
4,935
|
|
|
$
|
393
|
|
|
$
|
(3,117
|
)
|
|
$
|
17,217
|
|
|
$
|
819
|
|
|
$
|
18,036
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
Year Ended December 31, 2016
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating
Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
753
|
|
|
$
|
63
|
|
|
$
|
423
|
|
|
$
|
(118
|
)
|
|
$
|
1,121
|
|
|
$
|
1
|
|
|
$
|
1,122
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
675
|
|
|
—
|
|
|
118
|
|
|
793
|
|
|
—
|
|
|
793
|
|
|||||||
Total revenues
|
753
|
|
|
738
|
|
|
423
|
|
|
—
|
|
|
1,914
|
|
|
1
|
|
|
1,915
|
|
|||||||
Total expenses
|
634
|
|
|
527
|
|
|
354
|
|
|
—
|
|
|
1,515
|
|
|
129
|
|
|
1,644
|
|
|||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
347
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
410
|
|
|
15
|
|
|
425
|
|
|||||||
Interest expense
|
(442
|
)
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
|
(165
|
)
|
|
(665
|
)
|
|||||||
Other expense
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||||||
Total other income (expenses), net
|
(95
|
)
|
|
4
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
(151
|
)
|
|
(242
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
24
|
|
|
$
|
215
|
|
|
$
|
69
|
|
|
$
|
—
|
|
|
$
|
308
|
|
|
$
|
(279
|
)
|
|
$
|
29
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
23
|
|
|
$
|
11
|
|
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
55
|
|
|
$
|
8
|
|
|
$
|
63
|
|
Total assets
|
$
|
16,189
|
|
|
$
|
4,563
|
|
|
$
|
349
|
|
|
$
|
(2,448
|
)
|
|
$
|
18,653
|
|
|
$
|
940
|
|
|
$
|
19,593
|
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor (Subsidiaries of Issuer)
|
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
193
|
|
|
$
|
1
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
242
|
|
Restricted cash
|
—
|
|
|
186
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
319
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,644
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
3,676
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
6,770
|
|
|
—
|
|
|
1,164
|
|
|
—
|
|
|
7,934
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,631
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
119
|
|
||||||
Property and equipment, net
|
—
|
|
|
84
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
96
|
|
||||||
Deferred tax asset, net
|
973
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
967
|
|
||||||
Other assets
|
—
|
|
|
660
|
|
|
202
|
|
|
621
|
|
|
(688
|
)
|
|
795
|
|
||||||
Investment in subsidiaries
|
2,820
|
|
|
601
|
|
|
—
|
|
|
—
|
|
|
(3,421
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
3,793
|
|
|
$
|
14,964
|
|
|
$
|
203
|
|
|
$
|
2,122
|
|
|
$
|
(4,109
|
)
|
|
$
|
16,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
1,660
|
|
|
$
|
799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,459
|
|
Advance facilities, net
|
—
|
|
|
90
|
|
|
—
|
|
|
505
|
|
|
—
|
|
|
595
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
2,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,349
|
|
||||||
Payables and accrued liabilities
|
49
|
|
|
1,413
|
|
|
1
|
|
|
80
|
|
|
|
|
|
1,543
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,197
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
1,216
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
5,676
|
|
|
—
|
|
|
1,119
|
|
|
—
|
|
|
6,795
|
|
||||||
Payables to affiliates
|
139
|
|
|
549
|
|
|
—
|
|
|
—
|
|
|
(688
|
)
|
|
—
|
|
||||||
Total liabilities
|
1,848
|
|
|
12,144
|
|
|
1
|
|
|
1,723
|
|
|
(688
|
)
|
|
15,028
|
|
||||||
Total stockholders’ equity
|
1,945
|
|
|
2,820
|
|
|
202
|
|
|
399
|
|
|
(3,421
|
)
|
|
1,945
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,793
|
|
|
$
|
14,964
|
|
|
$
|
203
|
|
|
$
|
2,122
|
|
|
$
|
(4,109
|
)
|
|
$
|
16,973
|
|
(1)
|
Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
233
|
|
|
$
|
9
|
|
|
$
|
176
|
|
|
$
|
—
|
|
|
$
|
418
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
175
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
176
|
|
||||||
Total revenues
|
—
|
|
|
408
|
|
|
9
|
|
|
177
|
|
|
—
|
|
|
594
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
1
|
|
|
258
|
|
|
2
|
|
|
76
|
|
|
—
|
|
|
337
|
|
||||||
General and administrative
|
—
|
|
|
262
|
|
|
1
|
|
|
107
|
|
|
—
|
|
|
370
|
|
||||||
Total expenses
|
1
|
|
|
520
|
|
|
3
|
|
|
183
|
|
|
—
|
|
|
707
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
237
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
256
|
|
||||||
Interest expense
|
(64
|
)
|
|
(211
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(293
|
)
|
||||||
Other income (expenses)
|
1
|
|
|
11
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
13
|
|
||||||
Gain (loss) from subsidiaries
|
(44
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
42
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(107
|
)
|
|
39
|
|
|
—
|
|
|
2
|
|
|
42
|
|
|
(24
|
)
|
||||||
(Loss) income before income tax expense
|
(108
|
)
|
|
(73
|
)
|
|
6
|
|
|
(4
|
)
|
|
42
|
|
|
(137
|
)
|
||||||
Less: Income tax benefit
|
(992
|
)
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,021
|
)
|
||||||
Net income (loss)
|
884
|
|
|
(44
|
)
|
|
6
|
|
|
(4
|
)
|
|
42
|
|
|
884
|
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Mr. Cooper
|
$
|
884
|
|
|
$
|
(44
|
)
|
|
$
|
6
|
|
|
$
|
(4
|
)
|
|
$
|
42
|
|
|
$
|
884
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(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 (expenses)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
181
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
181
|
|
|
(12
|
)
|
|
—
|
|
|
19
|
|
|
(237
|
)
|
|
(49
|
)
|
||||||
Income (loss) before income tax expense
|
154
|
|
|
229
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
202
|
|
||||||
Less: Income tax expense
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Net income (loss)
|
154
|
|
|
181
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
154
|
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
154
|
|
|
$
|
181
|
|
|
$
|
12
|
|
|
$
|
44
|
|
|
$
|
(237
|
)
|
|
$
|
154
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Successor
|
$
|
884
|
|
|
$
|
(44
|
)
|
|
$
|
6
|
|
|
$
|
(4
|
)
|
|
$
|
42
|
|
|
$
|
884
|
|
Adjustment to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Provision for deferred income taxes
|
(971
|
)
|
|
(49
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1,021
|
)
|
||||||
(Gain) loss from subsidiaries
|
44
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(176
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(206
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(206
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
225
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
6
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
5
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Fair value changes in mortgage loans held for investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
3
|
|
|
7
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
33
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
39
|
|
||||||
Share-based compensation
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
2
|
|
||||||
Other (gain) loss
|
—
|
|
|
1
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(527
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(527
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(8,888
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,888
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
9,389
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
9,405
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables, net
|
—
|
|
|
43
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
1,569
|
|
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
1,544
|
|
||||||
Other assets
|
1
|
|
|
(18
|
)
|
|
(6
|
)
|
|
(38
|
)
|
|
—
|
|
|
(61
|
)
|
||||||
Payables and accrued liabilities
|
28
|
|
|
(130
|
)
|
|
—
|
|
|
34
|
|
|
—
|
|
|
(68
|
)
|
||||||
Net cash attributable to operating activities
|
(11
|
)
|
|
1,279
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
1,251
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD AUGUST 1 TO DECEMBER 31, 2018
(Continued)
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(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
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(15
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(313
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(307
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
105
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(226
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(250
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
—
|
|
|
(351
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(351
|
)
|
||||||
Decrease in advance facilities
|
—
|
|
|
40
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
45
|
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
343
|
|
|
—
|
|
|
343
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(374
|
)
|
|
—
|
|
|
(374
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
112
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(943
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(943
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
255
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
255
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(38
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(77
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Redemption and repayment of unsecured senior notes
|
—
|
|
|
(1,030
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,030
|
)
|
||||||
Proceeds from non-controlling interests
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Debt financing costs
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
||||||
Net cash attributable to financing activities
|
—
|
|
|
(2,032
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(2,063
|
)
|
||||||
Net decrease in cash and cash equivalents
|
(11
|
)
|
|
(979
|
)
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
(1,062
|
)
|
||||||
Cash and cash equivalents - beginning of period
|
11
|
|
|
1,358
|
|
|
1
|
|
|
253
|
|
|
—
|
|
|
1,623
|
|
||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
379
|
|
|
$
|
1
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
561
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
154
|
|
|
$
|
181
|
|
|
$
|
12
|
|
|
$
|
44
|
|
|
$
|
(237
|
)
|
|
$
|
154
|
|
Adjustment to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Provision for deferred income taxes
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||||
(Gain) loss from subsidiaries
|
(181
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
237
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
||||||
(Gain) on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
MSL related increased obligation
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Provision for servicing reserves
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(177
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
81
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
11
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
8
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
26
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
33
|
|
||||||
Share-based compensation
|
—
|
|
|
16
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
17
|
|
||||||
Other loss
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(544
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(544
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(12,328
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,328
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
13,381
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13,392
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables, net
|
—
|
|
|
377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
1,866
|
|
|
—
|
|
|
(265
|
)
|
|
—
|
|
|
1,601
|
|
||||||
Other assets
|
9
|
|
|
(294
|
)
|
|
(12
|
)
|
|
256
|
|
|
—
|
|
|
(41
|
)
|
||||||
Payables and accrued liabilities
|
27
|
|
|
65
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
88
|
|
||||||
Net cash attributable to operating activities
|
9
|
|
|
2,246
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
2,294
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD JANUARY 1 TO JULY 31, 2018
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(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
|
)
|
||||||
Repurchase of common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Surrender of shares relating to stock vesting
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
(9
|
)
|
|
(2,156
|
)
|
|
—
|
|
|
54
|
|
|
—
|
|
|
(2,111
|
)
|
||||||
Net decrease in cash and cash equivalents
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
94
|
|
|
—
|
|
|
21
|
|
||||||
Cash and cash equivalents - beginning of period
|
—
|
|
|
423
|
|
|
1
|
|
|
151
|
|
|
—
|
|
|
575
|
|
||||||
Cash and cash equivalents - end of period
|
$
|
—
|
|
|
$
|
350
|
|
|
$
|
1
|
|
|
$
|
245
|
|
|
$
|
—
|
|
|
$
|
596
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(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
|
|
(1)
|
Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
717
|
|
|
$
|
28
|
|
|
$
|
298
|
|
|
$
|
—
|
|
|
$
|
1,043
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
606
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
607
|
|
||||||
Total revenues
|
—
|
|
|
1,323
|
|
|
28
|
|
|
299
|
|
|
—
|
|
|
1,650
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
605
|
|
|
5
|
|
|
132
|
|
|
—
|
|
|
742
|
|
||||||
General and administrative
|
—
|
|
|
590
|
|
|
11
|
|
|
132
|
|
|
—
|
|
|
733
|
|
||||||
Total expenses
|
—
|
|
|
1,195
|
|
|
16
|
|
|
264
|
|
|
—
|
|
|
1,475
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
544
|
|
|
—
|
|
|
53
|
|
|
—
|
|
|
597
|
|
||||||
Interest expense
|
—
|
|
|
(675
|
)
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
(731
|
)
|
||||||
Other expenses
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
3
|
|
||||||
Gain (loss) from subsidiaries
|
30
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
30
|
|
|
(84
|
)
|
|
—
|
|
|
6
|
|
|
(83
|
)
|
|
(131
|
)
|
||||||
Income (loss) before income tax expense
|
30
|
|
|
44
|
|
|
12
|
|
|
41
|
|
|
(83
|
)
|
|
44
|
|
||||||
Less: Income tax expense
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
Net income (loss)
|
30
|
|
|
31
|
|
|
12
|
|
|
41
|
|
|
(83
|
)
|
|
31
|
|
||||||
Less: Net loss attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
12
|
|
|
$
|
41
|
|
|
$
|
(83
|
)
|
|
$
|
30
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to Nationstar
|
$
|
30
|
|
|
$
|
30
|
|
|
$
|
12
|
|
|
$
|
41
|
|
|
$
|
(83
|
)
|
|
$
|
30
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Provision for deferred income taxes
|
—
|
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46
|
)
|
||||||
Net income attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
(Gain) loss from subsidiaries
|
(30
|
)
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
83
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(606
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(607
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(490
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(490
|
)
|
||||||
(Gain) Loss on sale of assets
|
—
|
|
|
1
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
15
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
12
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
73
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
82
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
45
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
59
|
|
||||||
Share-based compensation
|
—
|
|
|
12
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
17
|
|
||||||
Other loss
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(1,249
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,249
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(19,159
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,159
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
20,760
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
20,776
|
|
||||||
Excess tax (deficiency) from share based compensation
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables, net
|
—
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30
|
)
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
1,829
|
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|
1,672
|
|
||||||
Other assets
|
4
|
|
|
(103
|
)
|
|
(12
|
)
|
|
36
|
|
|
—
|
|
|
(75
|
)
|
||||||
Payables and accrued liabilities
|
—
|
|
|
(179
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
—
|
|
|
(192
|
)
|
||||||
Net cash attributable to operating activities
|
4
|
|
|
1,417
|
|
|
(1
|
)
|
|
(61
|
)
|
|
—
|
|
|
1,359
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2017
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(42
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(63
|
)
|
||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||||
Proceeds on sale of assets
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Purchase of investment
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
6
|
|
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
—
|
|
|
863
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
863
|
|
||||||
Decrease in advance facilities
|
—
|
|
|
(81
|
)
|
|
—
|
|
|
(160
|
)
|
|
—
|
|
|
(241
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
707
|
|
|
—
|
|
|
707
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(571
|
)
|
|
—
|
|
|
(572
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
575
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
575
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(2,597
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,597
|
)
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(207
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(123
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(123
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Net cash attributable to financing activities
|
(4
|
)
|
|
(1,612
|
)
|
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(1,655
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
(189
|
)
|
|
(1
|
)
|
|
(112
|
)
|
|
—
|
|
|
(302
|
)
|
||||||
Cash and cash equivalents - beginning of year
|
—
|
|
|
612
|
|
|
2
|
|
|
263
|
|
|
—
|
|
|
877
|
|
||||||
Cash and cash equivalents - end of year
|
$
|
—
|
|
|
$
|
423
|
|
|
$
|
1
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
575
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor (Subsidiaries of Issuer)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
658
|
|
|
$
|
33
|
|
|
$
|
431
|
|
|
$
|
—
|
|
|
$
|
1,122
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
764
|
|
|
—
|
|
|
29
|
|
|
—
|
|
|
793
|
|
||||||
Total revenues
|
—
|
|
|
1,422
|
|
|
33
|
|
|
460
|
|
|
—
|
|
|
1,915
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries wages and benefits
|
—
|
|
|
601
|
|
|
5
|
|
|
207
|
|
|
—
|
|
|
813
|
|
||||||
General and administrative
|
—
|
|
|
617
|
|
|
8
|
|
|
206
|
|
|
—
|
|
|
831
|
|
||||||
Total expenses
|
—
|
|
|
1,218
|
|
|
13
|
|
|
413
|
|
|
—
|
|
|
1,644
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
375
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
425
|
|
||||||
Interest expense
|
—
|
|
|
(592
|
)
|
|
—
|
|
|
(73
|
)
|
|
—
|
|
|
(665
|
)
|
||||||
Other expense
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Gain (loss) from subsidiaries
|
19
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
19
|
|
|
(175
|
)
|
|
—
|
|
|
(23
|
)
|
|
(63
|
)
|
|
(242
|
)
|
||||||
Income (loss) before income tax expense
|
19
|
|
|
29
|
|
|
20
|
|
|
24
|
|
|
(63
|
)
|
|
29
|
|
||||||
Less: Income tax expense
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
Net income (loss)
|
19
|
|
|
16
|
|
|
20
|
|
|
24
|
|
|
(63
|
)
|
|
16
|
|
||||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
20
|
|
|
$
|
24
|
|
|
$
|
(63
|
)
|
|
$
|
19
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-
Guarantor (Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
19
|
|
|
$
|
19
|
|
|
$
|
20
|
|
|
$
|
24
|
|
|
$
|
(63
|
)
|
|
$
|
19
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Provision for deferred income taxes
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Net loss attributable to non-controlling interests
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
(Gain) loss from subsidiaries
|
(19
|
)
|
|
(44
|
)
|
|
—
|
|
|
—
|
|
|
63
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(764
|
)
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(793
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(344
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(344
|
)
|
||||||
Loss on sale of assets
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Loss on impairment of assets
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Provision for servicing reserves
|
—
|
|
|
108
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
484
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
3
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
25
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
(9,907
|
)
|
|
—
|
|
|
9,971
|
|
|
—
|
|
|
64
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
43
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
63
|
|
||||||
Share-based compensation
|
—
|
|
|
15
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
21
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(1,432
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,432
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(19,616
|
)
|
|
—
|
|
|
(794
|
)
|
|
—
|
|
|
(20,410
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
31,024
|
|
|
—
|
|
|
(8,993
|
)
|
|
—
|
|
|
22,031
|
|
||||||
Excess tax benefit from share based compensation
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables, net
|
—
|
|
|
582
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
582
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
607
|
|
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
572
|
|
||||||
Other assets
|
117
|
|
|
(707
|
)
|
|
(21
|
)
|
|
586
|
|
|
—
|
|
|
(25
|
)
|
||||||
Payables and accrued liabilities
|
—
|
|
|
46
|
|
|
1
|
|
|
(21
|
)
|
|
—
|
|
|
26
|
|
||||||
Net cash attributable to operating activities
|
117
|
|
|
98
|
|
|
—
|
|
|
757
|
|
|
—
|
|
|
972
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2016
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-
Guarantor (Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(55
|
)
|
|
1
|
|
|
(8
|
)
|
|
—
|
|
|
(62
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(120
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(144
|
)
|
||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
(3,600
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,600
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(3,707
|
)
|
|
1
|
|
|
(32
|
)
|
|
—
|
|
|
(3,738
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in warehouse facilities
|
—
|
|
|
637
|
|
|
—
|
|
|
(108
|
)
|
|
—
|
|
|
529
|
|
||||||
Increase (decrease) in advance facilities
|
—
|
|
|
(51
|
)
|
|
—
|
|
|
(499
|
)
|
|
—
|
|
|
(550
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
728
|
|
|
—
|
|
|
728
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(713
|
)
|
|
—
|
|
|
(713
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
4,124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,124
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(1,185
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,185
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
155
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(198
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(198
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(40
|
)
|
||||||
Repurchase of common stock
|
(114
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114
|
)
|
||||||
Excess tax (deficiency) benefit from share based compensation
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
||||||
Net cash attributable to financing activities
|
(117
|
)
|
|
3,425
|
|
|
—
|
|
|
(610
|
)
|
|
—
|
|
|
2,698
|
|
||||||
Net increase/(decrease) in cash
|
—
|
|
|
(184
|
)
|
|
1
|
|
|
115
|
|
|
—
|
|
|
(68
|
)
|
||||||
Cash and cash equivalents - beginning of year
|
—
|
|
|
796
|
|
|
1
|
|
|
148
|
|
|
—
|
|
|
945
|
|
||||||
Cash and cash equivalents - end of year
|
$
|
—
|
|
|
$
|
612
|
|
|
$
|
2
|
|
|
$
|
263
|
|
|
$
|
—
|
|
|
$
|
877
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
|
Predecessor
|
|
|
Successor
|
||||||||||||||||
|
Quarter ended March 31, 2018
|
|
Quarter ended June 31, 2018
|
|
For the Period July 1 - July 31, 2018
|
|
|
For the Period August 1 - September 30, 2018
|
|
Quarter ended December 31, 2018
|
||||||||||
Service related revenue, net
|
$
|
464
|
|
|
$
|
317
|
|
|
$
|
120
|
|
|
|
$
|
259
|
|
|
$
|
159
|
|
Net gain on mortgage loans held for sale
|
124
|
|
|
127
|
|
|
44
|
|
|
|
83
|
|
|
93
|
|
|||||
Total revenues
|
588
|
|
|
444
|
|
|
164
|
|
|
|
342
|
|
|
252
|
|
|||||
Total expenses
|
364
|
|
|
339
|
|
|
242
|
|
|
|
275
|
|
|
432
|
|
|||||
Total other income (expense), net
|
(18
|
)
|
|
(26
|
)
|
|
(5
|
)
|
|
|
(26
|
)
|
|
2
|
|
|||||
Income (loss) before income tax expense (benefit)
|
206
|
|
|
79
|
|
|
(83
|
)
|
|
|
41
|
|
|
(178
|
)
|
|||||
Less: Income tax expense (benefit)
|
46
|
|
|
21
|
|
|
(19
|
)
|
|
|
(979
|
)
|
|
(42
|
)
|
|||||
Net income (loss)
|
160
|
|
|
58
|
|
|
(64
|
)
|
|
|
1,020
|
|
|
(136
|
)
|
|||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to Predecessor/Successor
|
160
|
|
|
58
|
|
|
(64
|
)
|
|
|
1,020
|
|
|
(136
|
)
|
|||||
Less: Undistributed earnings attributable to participating stockholders
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
9
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
160
|
|
|
$
|
58
|
|
|
$
|
(64
|
)
|
|
|
$
|
1,011
|
|
|
$
|
(136
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share attributable to Predecessor/Successor:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
1.63
|
|
|
$
|
0.59
|
|
|
$
|
(0.65
|
)
|
|
|
$
|
11.13
|
|
|
$
|
(1.50
|
)
|
Diluted
|
$
|
1.61
|
|
|
$
|
0.59
|
|
|
$
|
(0.65
|
)
|
|
|
$
|
10.99
|
|
|
$
|
(1.50
|
)
|
(1)
|
Undistributed earnings allocated to participating securities and earnings per share are computed independently for each period. Accordingly, the sum of each quarterly amount may not agree to the year-to-date total.
|
|
Predecessor
|
||||||||||||||
|
Year Ended December 31, 2017
|
||||||||||||||
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
||||||||
Service related revenue, net
|
$
|
283
|
|
|
$
|
213
|
|
|
$
|
252
|
|
|
$
|
295
|
|
Net gain on mortgage loans held for sale
|
144
|
|
|
167
|
|
|
154
|
|
|
142
|
|
||||
Total revenues
|
427
|
|
|
380
|
|
|
406
|
|
|
437
|
|
||||
Total expenses
|
372
|
|
|
369
|
|
|
368
|
|
|
366
|
|
||||
Total other income (expense), net
|
(52
|
)
|
|
(40
|
)
|
|
(26
|
)
|
|
(13
|
)
|
||||
Income (loss) before income tax expense (benefit)
|
3
|
|
|
(29
|
)
|
|
12
|
|
|
58
|
|
||||
Less: Income tax expense (benefit)
|
1
|
|
|
(10
|
)
|
|
5
|
|
|
17
|
|
||||
Net income (loss)
|
2
|
|
|
(19
|
)
|
|
7
|
|
|
41
|
|
||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
2
|
|
|
$
|
(20
|
)
|
|
$
|
7
|
|
|
$
|
41
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share attributable to Predecessor:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.02
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.07
|
|
|
$
|
0.42
|
|
Diluted
|
$
|
0.02
|
|
|
$
|
(0.20
|
)
|
|
$
|
0.07
|
|
|
$
|
0.41
|
|
1.
|
Financial Statements:
|
2.
|
Financial Statement Schedules:
|
3.
|
Exhibits:
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
2.1+
|
8-K
|
001-14667
|
2.1
|
02/13/2018
|
|
|
|
|
|
|
|
|
|
3.1
|
8-K
|
001-14667
|
3.1
|
10/10/2018
|
|
|
|
|
|
|
|
|
|
3.2
|
10-Q
|
001-14667
|
3.2
|
11/09/2018
|
|
|
|
|
|
|
|
|
|
4.1
|
10-Q
|
001-14667
|
4.1
|
11/09/2018
|
|
|
|
|
|
|
|
|
|
4.2
|
8-K
|
001-14667
|
4.6
|
01/31/2014
|
|
|
|
|
|
|
|
|
|
4.3
|
8-K
|
001-4667
|
4.2
|
01/31/2014
|
|
|
|
|
|
|
|
|
|
4.4
|
8-K
|
001-35449
|
4.1
|
02/07/2013
|
|
|
|
|
|
|
|
|
|
4.5
|
8-K
|
001-35449
|
4.2
|
03/26/2013
|
|
|
|
|
|
|
|
|
|
4.6
|
8-K
|
001-35449
|
4.1
|
06/22/2018
|
|
|
|
|
|
|
|
|
|
4.7
|
8-K
|
001-1667
|
4.1
|
08/01/2018
|
|
|
|
|
|
|
|
|
|
4.8
|
8-K
|
001-35449
|
4.1
|
05/31/2013
|
|
|
|
|
|
|
|
|
|
4.9
|
8-K
|
00135449
|
4.2
|
06/22/2018
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
4.10
|
8-K
|
001-14667
|
4.2
|
08/01/2018
|
|
|
|
|
|
|
|
|
|
4.11
|
8-K
|
001-14667
|
4.1
|
07/13/2018
|
|
|
|
|
|
|
|
|
|
4.12
|
8-K
|
001-14667
|
4.3
|
08/01/2018
|
|
|
|
|
|
|
|
|
|
4.13
|
8-K
|
001-35449
|
10.1
|
02/06/2013
|
|
|
|
|
|
|
|
|
|
4.14
|
10-Q
|
001-35449
|
4.4
|
05/09/2014
|
|
|
|
|
|
|
|
|
|
4.15
|
10-Q
|
001-35449
|
4.1
|
08/03/2015
|
|
|
|
|
|
|
|
|
|
4.16
|
10-Q
|
001-35449
|
4.2
|
08/03/2015
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
4.17
|
10-K
|
001-35449
|
4.17
|
03/01/2016
|
|
|
|
|
|
|
|
|
|
10.1
|
8-K
|
001-35449
|
10.5
|
02/06/2013
|
|
|
|
|
|
|
|
|
|
10.2
|
8-K
|
001-35449
|
10.6
|
02/06/2013
|
|
|
|
|
|
|
|
|
|
10.3
|
10-K
|
001-35449
|
10.18
|
03/15/2013
|
|
|
|
|
|
|
|
|
|
10.4
|
10-K
|
001-35449
|
10.19
|
03/15/2013
|
|
|
|
|
|
|
|
|
|
10.5
|
10-K
|
001-35449
|
10.20
|
03/15/2013
|
|
|
|
|
|
|
|
|
|
10.6
|
10-K
|
001-35449
|
10.21
|
03/15/2013
|
|
|
|
|
|
|
|
|
|
10.7
|
10-Q
|
001-35449
|
10.11
|
11/14/2013
|
|
|
|
|
|
|
|
|
|
10.8
|
10-Q
|
001-35449
|
10.12
|
11/14/2013
|
|
|
|
|
|
|
|
|
|
10.9
|
10-Q
|
001-35449
|
10.13
|
11/14/2013
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
10.10
|
10-Q
|
001-35449
|
10.3
|
11/07/2014
|
|
|
|
|
|
|
|
|
|
10.11
|
10-Q
|
135,449
|
10.4
|
11/07/2014
|
|
|
|
|
|
|
|
|
|
10.12
|
10-K
|
001-35449
|
10.28
|
03/01/2016
|
|
|
|
|
|
|
|
|
|
10.13
|
10-K
|
001-35449
|
10.17
|
03/09/2017
|
|
|
|
|
|
|
|
|
|
10.14
|
10-K
|
001-35449
|
10.18
|
03/09/2017
|
|
|
|
|
|
|
|
|
|
10.15
|
10-K
|
001-35449
|
10.18
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.16
|
10-Q
|
001-35449
|
10.1
|
05/10/2018
|
|
|
|
|
|
|
|
|
|
10.17
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.18
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.19
|
10-Q
|
001-35449
|
10.1
|
05/05/2016
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
10.20
|
10-Q
|
001-35449
|
10.2
|
08/09/2016
|
|
|
|
|
|
|
|
|
|
10.21
|
10-K
|
001-35449
|
10.21
|
03/09/2017
|
|
|
|
|
|
|
|
|
|
10.22
|
10-K
|
001-35449
|
10.22
|
03/09/2017
|
|
|
|
|
|
|
|
|
|
10.23
|
10-K
|
001-35449
|
10.23
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.24
|
10-Q
|
001-35449
|
10.2
|
05/10/2018
|
|
|
|
|
|
|
|
|
|
10.25
|
10-Q
|
001-35449
|
10.1
|
08/03/2018
|
|
|
|
|
|
|
|
|
|
10.26
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.27
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.28**
|
10-K
|
001-35449
|
10.45
|
03/01/2016
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
10.29**
|
10-K
|
001-35449
|
10.46
|
03/01/2016
|
|
|
|
|
|
|
|
|
|
10.30**
|
10-Q
|
001-35449
|
10.1
|
05/05/2017
|
|
|
|
|
|
|
|
|
|
10.31**
|
8-K
|
001-14667
|
10.1
|
12/12/2018
|
|
|
|
|
|
|
|
|
|
10.32**
|
10-K
|
001-25449
|
10.42
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.33**
|
10-K
|
001-25449
|
12.43
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.34**
|
10-K
|
001-25449
|
10.44
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.35**
|
10-K
|
001-25449
|
10.45
|
03/02/2018
|
|
|
10.36**
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.37**
|
10-K
|
001-25449
|
10.46
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.38**
|
10-K
|
001-25449
|
10.47
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.39**
|
10-K
|
001-25449
|
10.48
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.40**
|
10-K
|
001-25449
|
10.49
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.41**
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
10.42**
|
10-K
|
001-14667
|
10.17
|
03/15/2013
|
|
|
|
|
|
|
|
|
|
10.43**
|
8-K
|
001-14667
|
99.1
|
02/03/2014
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.44**
|
10-K
|
001-14667
|
10.15
|
02/27/2015
|
|
|
|
|
|
|
|
|
|
10.45**
|
10-K
|
001-14667
|
10.33
|
03/02/2018
|
|
|
|
|
|
|
|
|
|
10.46**
|
8-K
|
001-35449
|
10.1
|
05/12/2016
|
|
|
|
|
|
|
|
|
|
10.47**
|
8-K
|
001-14667
|
10.2
|
08/01/2018
|
|
|
|
|
|
|
|
|
|
10.48**
|
10-K
|
001-35449
|
10.54
|
03/01/2016
|
|
|
|
|
|
|
|
|
|
10.49**
|
10-Q
|
001-35449
|
10.5
|
05/07/2015
|
|
|
|
|
|
|
|
|
|
10.50**
|
8-K
|
001-35449
|
10.1
|
04/02/2015
|
|
|
|
|
|
|
|
|
|
10.51**
|
8-K
|
001-14667
|
10.1
|
05/13/2015
|
|
|
|
|
|
|
|
|
|
21.1
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
23.1
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
31.1
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
Filed or Furnished Herewith
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
|
|
|
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
|
|
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
/s/ Jay Bray
|
March 11, 2019
|
Jay Bray, President, Chief Executive Officer and Director (Principal Executive Officer)
|
|
|
|
/s/ Amar R. Patel
|
March 11, 2019
|
Amar R. Patel, Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)
|
|
|
|
/s/ Robert H. Gidel
|
March 11, 2019
|
Robert H. Gidel, Director
|
|
|
|
/s/ Roy A. Guthrie
|
March 11, 2019
|
Roy A. Guthrie, Director
|
|
|
|
/s/ Christopher J. Harrington
|
March 11, 2019
|
Christopher J. Harrington, Director
|
|
|
|
/s/ Michael D. Malone
|
March 11, 2019
|
Michael D. Malone, Director
|
|
|
|
/s/ Tagar C. Olson
|
March 11, 2019
|
Tagar C. Olson, Director
|
|
|
|
/s/ Steven D. Scheiwe
|
March 11, 2019
|
Steven D. Scheiwe, Director
|
|
|
|
a)
|
Employee has the right to consult with an attorney before signing this Agreement;
|
b)
|
Employee does not waive rights or claims under the federal Age Discrimination in Employment Act that may arise after the date this waiver is executed;
|
c)
|
Employee has been given twenty-one (21) days within which to consider this agreement. Employee knowingly and voluntarily waives the remainder of the 21 day consideration period, if any, following the date Employee signed this Agreement below. Employee agrees that Employee has not been asked by NSM to shorten Employee’s time-period for consideration of whether to sign this Agreement. Employee agrees that NSM has not threatened to withdraw or alter the benefits due Employee prior to the expiration of the 21 day period nor has NSM provided different terms to Employee because Employee has decided to sign this Agreement prior to the expiration of the 21 day consideration period. Employee understands that having waived some portion of the 21 day consideration period, NSM may expedite the processing of benefits provided to Employee in exchange for signing this Agreement;
|
d)
|
Employee may, for a period of seven (7) days following the execution of this Agreement, revoke this Agreement and that said Agreement will not be considered effective until the revocation period has passed; and
|
e)
|
This Agreement is written in a manner in which Employee fully understands and Employee enters into this Agreement knowingly and voluntarily.
|
a)
|
Entire Agreement.
This Agreement contains the entire understanding and agreement between the parties with respect to the matters set forth herein; supersedes any other agreements between the parties hereto concerning the subject matter hereof, oral or written, and may not be amended, supplemented, changed, or modified in any manner, orally, or otherwise, except by an instrument in writing, executed by all parties hereto.
|
b)
|
Successors Bound.
This Agreement is binding on the parties hereto, and their respective heirs, representatives, successors and assigns.
|
c)
|
Governing Law.
NSM and Employee agree that any questions arising under this Agreement, whether of validity, interpretation, performance or otherwise, will be governed by and construed in accordance with the laws of the state of Texas applicable to agreements made and to be performed in Texas without regard to choice of law rules.
|
d)
|
Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
|
d)
|
Severability.
Both parties agree and understand that if any provision of this Agreement is declared to be unenforceable by a court of competent jurisdiction, the remaining terms and conditions shall not be affected and shall remain in full force and effect.
|
e)
|
No Waiver.
NSM may elect not to pursue any remedy available to it under this Agreement or by law, provided, that such election shall not operate as a waiver of any such remedy or of any other remedy, nor shall it constitute a waiver of any of Employee’s other obligations under this Agreement.
|
a)
|
Employee has the right to consult with an attorney before signing this Agreement;
|
b)
|
Employee does not waive rights or claims under the federal Age Discrimination in Employment Act that may arise after the date this waiver is executed;
|
c)
|
Employee has been given twenty-one (21) days within which to consider this agreement. Employee knowingly and voluntarily waives the remainder of the 21 day consideration period, if any, following the date Employee signed this Agreement below. Employee agrees that Employee has not been asked by NSM to shorten Employee’s time-period for consideration of whether to sign this Agreement. Employee agrees that NSM has not threatened to withdraw or alter the benefits due Employee prior to the expiration of the 21 day period nor has NSM provided different terms to Employee because Employee has decided to sign this Agreement prior to the expiration of the 21 day consideration period. Employee understands that having waived some portion of the 21 day consideration period, NSM may expedite the processing of benefits provided to Employee in exchange for signing this Agreement;
|
d)
|
Employee may, for a period of seven (7) days following the execution of this Agreement, revoke this Agreement and that said Agreement will not be considered effective until the revocation period has passed; and
|
e)
|
This Agreement is written in a manner in which Employee fully understands and Employee enters into this Agreement knowingly and voluntarily.
|
a)
|
Entire Agreement.
This Agreement contains the entire understanding and agreement between the parties with respect to the matters set forth herein; supersedes any other agreements between the parties hereto concerning the subject matter hereof, oral or written, and may not be amended, supplemented, changed, or modified in any manner, orally, or otherwise, except by an instrument in writing, executed by all parties hereto.
|
b)
|
Successors Bound.
This Agreement is binding on the parties hereto, and their respective heirs, representatives, successors and assigns.
|
c)
|
Governing Law.
NSM and Employee agree that any questions arising under this Agreement, whether of validity, interpretation, performance or otherwise, will be governed by and construed in accordance with the laws of the state of Texas applicable to agreements made and to be performed in Texas without regard to choice of law rules.
|
d)
|
Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
|
d)
|
Severability.
Both parties agree and understand that if any provision of this Agreement is declared to be unenforceable by a court of competent jurisdiction, the remaining terms and conditions shall not be affected and shall remain in full force and effect.
|
e)
|
No Waiver.
NSM may elect not to pursue any remedy available to it under this Agreement or by law, provided, that such election shall not operate as a waiver of any such remedy or of any other remedy, nor shall it constitute a waiver of any of Employee’s other obligations under this Agreement.
|
|
Transaction Value <=$1.6B
|
Transaction Value
$1.6B to $1.9B |
Transaction Value
$1.9B to $2.2B |
Transaction Value
>$2.2B |
Percentage of the Actual Transaction Value Used to Calculate Actual Total Potential Cash Bonus Pool
|
0.00%
|
0.40%
|
0.50%
|
0.60%
|
Tony Villani Percentage of Total Potential Cash Bonus Pool
|
7%
|
7%
|
7%
|
7%
|
Example Transaction Value - Example Potential Cash Bonus
|
If
Transaction Value = $1.6B
Potential Cash Bonus =
$0 |
If
Transaction Value = $1.8B
Potential Cash
Bonus = $504,000 |
If
Transaction Value = $2.1B
Potential Cash Bonus =
$735,000 |
If Transaction Value =
$2.4B
Potential Cash Bonus =
$1,008,000 |
Subsidiaries
|
|
Jurisdiction of Organization
|
|
|
|
Nationstar Mortgage Holdings Inc.
|
|
Delaware
|
Nationstar Sub1 LLC
|
|
Delaware
|
Nationstar Mortgage LLC
|
|
Delaware
|
(1)
|
Registration Statement (Form S-8 No. 333-226468) pertaining to the Second Amended and Restated 2012 Incentive Compensation Plan of Nationstar Mortgage Holdings Inc., and
|
(2)
|
Registration Statement (Form S-3 No. 333-205426) of Mr. Cooper Group Inc.
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2018 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 15(d) - 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:
|
March 11, 2019
|
|
|
|
/s/ Jay Bray
|
|
|
|
|
Jay Bray
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2018 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:
|
March 11, 2019
|
|
|
|
/s/ Amar R. Patel
|
|
|
|
|
Amar R. Patel
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
March 11, 2019
|
|
|
/s/ Jay Bray
|
||
|
Jay Bray
|
||
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
March 11, 2019
|
|
/s/ Amar R. Patel
|
|
|
Amar R. Patel
|
|
|
Chief Financial Officer
|