x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
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)
|
|
|
|
(469) 549-2000
|
||
Registrant’s telephone number, including area code
|
||
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, $0.01 par value per share
|
COOP
|
The Nasdaq Stock Market
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
x
|
Non-Accelerated Filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
Emerging growth company
|
¨
|
|
|
Page
|
PART I
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
Consolidated Balance Sheets as of September 30, 2019 (unaudited) and December 31, 2018 (Successor)
|
|
|
|
|
|
Consolidated Statements of Operations (unaudited) for the Successor’s Three and Nine Months Ended September 30, 2019 and Two Months ended September 30, 2018, and the Predecessor’s One and Seven Months Ended July 31, 2018
|
|
|
|
|
|
Consolidated Statements of Stockholders’ Equity (unaudited) for the Successor’s Three and Nine Months Ended September 30, 2019 and Two Months Ended September 30, 2018, and the Predecessor’s One and Seven Months Ended July 31, 2018
|
|
|
|
|
|
Consolidated Statements of Cash Flows (unaudited) for the Successor’s Nine Months Ended September 30, 2019 and Two Months Ended September 30, 2018 and the Predecessor’s Seven Months Ended July 31, 2018
|
|
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
PART II
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
371
|
|
|
$
|
242
|
|
Restricted cash
|
271
|
|
|
319
|
|
||
Mortgage servicing rights, $3,339 and $3,665 at fair value, respectively
|
3,346
|
|
|
3,676
|
|
||
Advances and other receivables, net of reserves of $130 and $47, respectively
|
967
|
|
|
1,194
|
|
||
Reverse mortgage interests, net of reserves of $13 and $13, respectively
|
6,662
|
|
|
7,934
|
|
||
Mortgage loans held for sale at fair value
|
4,267
|
|
|
1,631
|
|
||
Mortgage loans held for investment at fair value
|
—
|
|
|
119
|
|
||
Property and equipment, net of accumulated depreciation of $45 and $16, respectively
|
113
|
|
|
96
|
|
||
Deferred tax asset, net
|
1,032
|
|
|
967
|
|
||
Other assets
|
1,449
|
|
|
795
|
|
||
Total assets
|
$
|
18,478
|
|
|
$
|
16,973
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Unsecured senior notes, net
|
$
|
2,464
|
|
|
$
|
2,459
|
|
Advance facilities, net
|
513
|
|
|
595
|
|
||
Warehouse facilities, net
|
4,802
|
|
|
2,349
|
|
||
Payables and other liabilities
|
2,002
|
|
|
1,543
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,328
|
|
|
1,216
|
|
||
Mortgage servicing liabilities
|
69
|
|
|
71
|
|
||
Other nonrecourse debt, net
|
5,533
|
|
|
6,795
|
|
||
Total liabilities
|
16,711
|
|
|
15,028
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
|
|
||
Preferred stock at $0.00001 - 10 million shares authorized, 1 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively
|
—
|
|
|
—
|
|
||
Common stock at $0.01 par value - 300 million shares authorized, 91.1 million and 90.8 million shares issued, respectively
|
1
|
|
|
1
|
|
||
Additional paid-in-capital
|
1,106
|
|
|
1,093
|
|
||
Retained earnings
|
659
|
|
|
848
|
|
||
Total Mr. Cooper stockholders’ equity
|
1,766
|
|
|
1,942
|
|
||
Non-controlling interests
|
1
|
|
|
3
|
|
||
Total stockholders’ equity
|
1,767
|
|
|
1,945
|
|
||
Total liabilities and stockholders’ equity
|
$
|
18,478
|
|
|
$
|
16,973
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service related, net
|
$
|
258
|
|
|
$
|
479
|
|
|
$
|
259
|
|
|
|
$
|
120
|
|
|
$
|
901
|
|
Net gain on mortgage loans held for sale
|
360
|
|
|
788
|
|
|
83
|
|
|
|
44
|
|
|
295
|
|
|||||
Total revenues
|
618
|
|
|
1,267
|
|
|
342
|
|
|
|
164
|
|
|
1,196
|
|
|||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries, wages and benefits
|
250
|
|
|
703
|
|
|
139
|
|
|
|
69
|
|
|
426
|
|
|||||
General and administrative
|
228
|
|
|
710
|
|
|
136
|
|
|
|
173
|
|
|
519
|
|
|||||
Total expenses
|
478
|
|
|
1,413
|
|
|
275
|
|
|
|
242
|
|
|
945
|
|
|||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income
|
163
|
|
|
459
|
|
|
90
|
|
|
|
48
|
|
|
333
|
|
|||||
Interest expense
|
(196
|
)
|
|
(572
|
)
|
|
(122
|
)
|
|
|
(53
|
)
|
|
(388
|
)
|
|||||
Other income (expenses)
|
—
|
|
|
16
|
|
|
6
|
|
|
|
—
|
|
|
6
|
|
|||||
Total other income (expenses), net
|
(33
|
)
|
|
(97
|
)
|
|
(26
|
)
|
|
|
(5
|
)
|
|
(49
|
)
|
|||||
Income (loss) before income tax expense (benefit)
|
107
|
|
|
(243
|
)
|
|
41
|
|
|
|
(83
|
)
|
|
202
|
|
|||||
Less: Income tax expense (benefit)
|
24
|
|
|
(52
|
)
|
|
(979
|
)
|
|
|
(19
|
)
|
|
48
|
|
|||||
Net income (loss)
|
83
|
|
|
(191
|
)
|
|
1,020
|
|
|
|
(64
|
)
|
|
154
|
|
|||||
Less: Net loss attributable to non-controlling interests
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to Successor/Predecessor
|
84
|
|
|
(189
|
)
|
|
1,020
|
|
|
|
(64
|
)
|
|
154
|
|
|||||
Less: Undistributed earnings attributable to participating stockholders
|
1
|
|
|
—
|
|
|
9
|
|
|
|
—
|
|
|
—
|
|
|||||
Net income (loss) attributable to common stockholders
|
$
|
83
|
|
|
$
|
(189
|
)
|
|
$
|
1,011
|
|
|
|
$
|
(64
|
)
|
|
$
|
154
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.91
|
|
|
$
|
(2.08
|
)
|
|
$
|
11.13
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
1.57
|
|
Diluted
|
$
|
0.90
|
|
|
$
|
(2.08
|
)
|
|
$
|
10.99
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
1.55
|
|
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Shares
(in thousands) |
|
Amount
|
|
Shares
(in thousands)
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Share Amount
|
|
Total Nationstar Stockholders’
Equity and
Mr. Cooper Stockholders’ Equity, respectively
|
|
Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||||
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2018
|
|
—
|
|
|
$
|
—
|
|
|
97,728
|
|
|
$
|
1
|
|
|
$
|
1,131
|
|
|
$
|
731
|
|
|
$
|
(148
|
)
|
|
$
|
1,715
|
|
|
$
|
7
|
|
|
$
|
1,722
|
|
Shares issued / (surrendered) under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
450
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(3
|
)
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
17
|
|
||||||||
Dividends to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(6
|
)
|
|
(1
|
)
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
||||||||
Balance at July 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
98,178
|
|
|
$
|
1
|
|
|
$
|
1,147
|
|
|
$
|
885
|
|
|
$
|
(151
|
)
|
|
$
|
1,882
|
|
|
$
|
1
|
|
|
$
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at August 1, 2018
|
|
1,000
|
|
|
$
|
—
|
|
|
90,806
|
|
|
$
|
1
|
|
|
$
|
1,091
|
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
1,056
|
|
|
$
|
—
|
|
|
$
|
1,056
|
|
Shares issued under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
||||||||
Balance at September 30, 2018
|
|
1,000
|
|
|
$
|
—
|
|
|
90,811
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
984
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2019
|
|
1,000
|
|
|
$
|
—
|
|
|
90,821
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
848
|
|
|
$
|
—
|
|
|
$
|
1,942
|
|
|
$
|
3
|
|
|
$
|
1,945
|
|
Shares issued / (surrendered) under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
266
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
14
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(189
|
)
|
|
—
|
|
|
(189
|
)
|
|
(2
|
)
|
|
(191
|
)
|
||||||||
Balance at September 30, 2019
|
|
1,000
|
|
|
$
|
—
|
|
|
91,087
|
|
|
$
|
1
|
|
|
$
|
1,106
|
|
|
$
|
659
|
|
|
$
|
—
|
|
|
$
|
1,766
|
|
|
$
|
1
|
|
|
$
|
1,767
|
|
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Shares
(in thousands) |
|
Amount
|
|
Shares
(in thousands)
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Share Amount
|
|
Total Nationstar Stockholders’
Equity and
Mr. Cooper Stockholders’ Equity, respectively
|
|
Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||||
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
98,163
|
|
|
$
|
1
|
|
|
$
|
1,140
|
|
|
$
|
949
|
|
|
$
|
(150
|
)
|
|
$
|
1,940
|
|
|
$
|
1
|
|
|
$
|
1,941
|
|
Shares issued / (surrendered) under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
||||||||
Dividends to non-controlling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
|
—
|
|
|
(64
|
)
|
||||||||
Balance at July 31, 2018
|
|
—
|
|
|
$
|
—
|
|
|
98,178
|
|
|
$
|
1
|
|
|
$
|
1,147
|
|
|
$
|
885
|
|
|
$
|
(151
|
)
|
|
$
|
1,882
|
|
|
$
|
1
|
|
|
$
|
1,883
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at August 1, 2018
|
|
1,000
|
|
|
$
|
—
|
|
|
90,806
|
|
|
$
|
1
|
|
|
$
|
1,091
|
|
|
$
|
(36
|
)
|
|
$
|
—
|
|
|
$
|
1,056
|
|
|
$
|
—
|
|
|
$
|
1,056
|
|
Shares issued under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
|
—
|
|
|
1,020
|
|
||||||||
Balance at September 30, 2018
|
|
1,000
|
|
|
$
|
—
|
|
|
90,811
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
984
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
$
|
—
|
|
|
$
|
2,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at June 30, 2019
|
|
1,000
|
|
|
$
|
—
|
|
|
91,061
|
|
|
$
|
1
|
|
|
$
|
1,100
|
|
|
$
|
575
|
|
|
$
|
—
|
|
|
$
|
1,676
|
|
|
$
|
2
|
|
|
$
|
1,678
|
|
Shares issued under incentive compensation plan
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||||
Share-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
||||||||
Net income (loss)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
84
|
|
|
(1
|
)
|
|
83
|
|
||||||||
Balance at September 30, 2019
|
|
1,000
|
|
|
$
|
—
|
|
|
91,087
|
|
|
$
|
1
|
|
|
$
|
1,106
|
|
|
$
|
659
|
|
|
$
|
—
|
|
|
$
|
1,766
|
|
|
$
|
1
|
|
|
$
|
1,767
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
||||||
Operating Activities
|
|
|
|
|
|
|
||||||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(189
|
)
|
|
$
|
1,020
|
|
|
|
$
|
154
|
|
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
|
|
|
|
|
|
|
||||||
Deferred tax benefit
|
(53
|
)
|
|
(931
|
)
|
|
|
—
|
|
|||
Net loss attributable to non-controlling interests
|
(2
|
)
|
|
—
|
|
|
|
—
|
|
|||
Net gain on mortgage loans held for sale
|
(788
|
)
|
|
(83
|
)
|
|
|
(295
|
)
|
|||
Interest income on reverse mortgage loans
|
(241
|
)
|
|
(72
|
)
|
|
|
(274
|
)
|
|||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
|
(9
|
)
|
|||
MSL related increased obligation
|
—
|
|
|
—
|
|
|
|
59
|
|
|||
Provision for servicing reserves
|
53
|
|
|
14
|
|
|
|
70
|
|
|||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
998
|
|
|
(27
|
)
|
|
|
(177
|
)
|
|||
Fair value changes in excess spread financing
|
(190
|
)
|
|
26
|
|
|
|
81
|
|
|||
Fair value changes in mortgage servicing rights financing liability
|
15
|
|
|
—
|
|
|
|
16
|
|
|||
Fair value changes in mortgage loans held for investment
|
(3
|
)
|
|
—
|
|
|
|
—
|
|
|||
Amortization of premiums, net of discount accretion
|
(38
|
)
|
|
3
|
|
|
|
8
|
|
|||
Depreciation and amortization for property and equipment and intangible assets
|
67
|
|
|
15
|
|
|
|
33
|
|
|||
Share-based compensation
|
14
|
|
|
2
|
|
|
|
17
|
|
|||
Other loss
|
5
|
|
|
—
|
|
|
|
3
|
|
|||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(1,823
|
)
|
|
(223
|
)
|
|
|
(544
|
)
|
|||
Mortgage loans originated and purchased for sale, net of fees
|
(27,673
|
)
|
|
(3,458
|
)
|
|
|
(12,328
|
)
|
|||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
27,916
|
|
|
3,546
|
|
|
|
13,392
|
|
|||
Changes in assets and liabilities:
|
|
|
|
|
|
|
||||||
Advances and other receivables
|
265
|
|
|
76
|
|
|
|
377
|
|
|||
Reverse mortgage interests
|
1,700
|
|
|
442
|
|
|
|
1,601
|
|
|||
Other assets
|
8
|
|
|
(15
|
)
|
|
|
(41
|
)
|
|||
Payables and other liabilities
|
(69
|
)
|
|
(159
|
)
|
|
|
151
|
|
|||
Net cash attributable to operating activities
|
(28
|
)
|
|
176
|
|
|
|
2,294
|
|
|||
|
|
|
|
|
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
||||||
Acquisitions, net of cash acquired
|
(85
|
)
|
|
(33
|
)
|
|
|
—
|
|
|||
Property and equipment additions, net of disposals
|
(38
|
)
|
|
(14
|
)
|
|
|
(40
|
)
|
|||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(454
|
)
|
|
(63
|
)
|
|
|
(134
|
)
|
|||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
|||
Proceeds on sale of forward and reverse mortgage servicing rights
|
298
|
|
|
60
|
|
|
|
—
|
|
|||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
|
13
|
|
|||
Net cash attributable to investing activities
|
(279
|
)
|
|
(50
|
)
|
|
|
(162
|
)
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
||||||
Financing Activities
|
|
|
|
|
|
|
||||||
Increase (decrease) in warehouse facilities
|
1,930
|
|
|
186
|
|
|
|
(585
|
)
|
|||
(Decrease) increase in advance facilities
|
(95
|
)
|
|
46
|
|
|
|
(305
|
)
|
|||
Repayment of notes payable
|
(294
|
)
|
|
—
|
|
|
|
—
|
|
|||
Proceeds from issuance of HECM securitizations
|
398
|
|
|
—
|
|
|
|
759
|
|
|||
Proceeds from sale of HECM securitizations
|
20
|
|
|
—
|
|
|
|
—
|
|
|||
Repayment of HECM securitizations
|
(568
|
)
|
|
(91
|
)
|
|
|
(448
|
)
|
|||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
220
|
|
|
45
|
|
|
|
208
|
|
|||
Repayment of participating interest financing in reverse mortgage interests
|
(1,472
|
)
|
|
(403
|
)
|
|
|
(1,599
|
)
|
|||
Proceeds from the issuance of excess spread financing
|
469
|
|
|
84
|
|
|
|
70
|
|
|||
Repayment of excess spread financing
|
(19
|
)
|
|
(21
|
)
|
|
|
(3
|
)
|
|||
Settlement of excess spread financing
|
(163
|
)
|
|
(31
|
)
|
|
|
(105
|
)
|
|||
Repayment of nonrecourse debt – legacy assets
|
(29
|
)
|
|
(3
|
)
|
|
|
(7
|
)
|
|||
Repurchase of unsecured senior notes
|
—
|
|
|
—
|
|
|
|
(62
|
)
|
|||
Repayment of finance lease liability
|
(3
|
)
|
|
—
|
|
|
|
—
|
|
|||
Redemption and repayment of unsecured senior notes
|
—
|
|
|
(1,030
|
)
|
|
|
—
|
|
|||
Surrender of shares relating to stock vesting
|
(1
|
)
|
|
—
|
|
|
|
(9
|
)
|
|||
Debt financing costs
|
(5
|
)
|
|
(1
|
)
|
|
|
(24
|
)
|
|||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
|||
Net cash attributable to financing activities
|
388
|
|
|
(1,219
|
)
|
|
|
(2,111
|
)
|
|||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
81
|
|
|
(1,093
|
)
|
|
|
21
|
|
|||
Cash, cash equivalents, and restricted cash - beginning of period
|
561
|
|
|
1,623
|
|
|
|
575
|
|
|||
Cash, cash equivalents, and restricted cash - end of period(1)
|
$
|
642
|
|
|
$
|
530
|
|
|
|
$
|
596
|
|
|
|
|
|
|
|
|
||||||
Supplemental Disclosures of Cash Activities
|
|
|
|
|
|
|
||||||
Cash paid for interest expense
|
$
|
166
|
|
|
$
|
135
|
|
|
|
$
|
417
|
|
Net cash (refunded) paid for income taxes
|
$
|
(4
|
)
|
|
$
|
—
|
|
|
|
$
|
36
|
|
(1)
|
The following table provides a reconciliation of cash, cash equivalents and restricted cash to amount reported within the consolidated balance sheets.
|
|
Successor
|
|
|
Predecessor
|
||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
||||||
Cash and cash equivalents
|
$
|
371
|
|
|
$
|
198
|
|
|
|
$
|
166
|
|
Restricted cash
|
271
|
|
|
332
|
|
|
|
430
|
|
|||
Total cash, cash equivalents, and restricted cash
|
$
|
642
|
|
|
$
|
530
|
|
|
|
$
|
596
|
|
(1)
|
Estimated Fair Value of Net Assets Acquired is subject to change due to dispute of purchase price.
|
(2)
|
Notes payable was subsequently paid off in February 2019 after the consummation of the acquisition.
|
(3)
|
The estimated fair values for customer relationships were measured using the excess earnings method and were determined to have a remaining useful life of 10 years.
|
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Pro forma total revenues
|
$
|
618
|
|
|
$
|
1,286
|
|
|
|
|
|
||||
Pro forma net income (loss)
|
$
|
83
|
|
|
$
|
(188
|
)
|
Purchase Price:
|
|
||
Converted WMIH common shares (prior to reverse stock split) in millions
|
394
|
|
|
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018
|
$
|
1.398
|
|
Purchase price from common stock issued
|
551
|
|
|
Purchase price from cash payment
|
1,226
|
|
|
Total purchase price
|
$
|
1,777
|
|
Final Estimated Fair Value of Net Assets Acquired:
|
|
||
Cash and cash equivalents
|
$
|
166
|
|
Restricted cash
|
430
|
|
|
Mortgage servicing rights
|
3,422
|
|
|
Advances and other receivables
|
1,262
|
|
|
Reverse mortgage interests
|
9,189
|
|
|
Mortgage loans held for sale
|
1,514
|
|
|
Mortgage loans held for investment
|
125
|
|
|
Property and equipment
|
96
|
|
|
Other assets
|
610
|
|
|
Fair value of assets acquired
|
16,814
|
|
|
Unsecured senior notes
|
1,830
|
|
|
Advance facilities
|
551
|
|
|
Warehouse facilities
|
2,701
|
|
|
Payables and other liabilities
|
1,352
|
|
|
MSR related liabilities—nonrecourse
|
1,065
|
|
|
Mortgage servicing liabilities
|
123
|
|
|
Other nonrecourse debt
|
7,583
|
|
|
Fair value of liabilities assumed
|
15,205
|
|
|
Total fair value of net tangible assets acquired
|
1,609
|
|
|
Intangible assets(1)
|
103
|
|
|
Goodwill
|
65
|
|
|
Purchase price
|
$
|
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.
|
|
Three Months Ended September 30, 2018
|
|
Nine Months Ended September 30, 2018
|
||||
Pro forma total revenues
|
$
|
506
|
|
|
$
|
1,538
|
|
|
|
|
|
||||
Pro forma net (loss) income
|
$
|
(20
|
)
|
|
$
|
156
|
|
|
Successor
|
||||||
MSRs and Related Liabilities
|
September 30, 2019
|
|
December 31, 2018
|
||||
Forward MSRs - fair value
|
$
|
3,339
|
|
|
$
|
3,665
|
|
Reverse MSRs - amortized cost
|
7
|
|
|
11
|
|
||
Mortgage servicing rights
|
$
|
3,346
|
|
|
$
|
3,676
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
69
|
|
|
$
|
71
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,281
|
|
|
$
|
1,184
|
|
Mortgage servicing rights financing - fair value
|
47
|
|
|
32
|
|
||
MSR related liabilities - nonrecourse at fair value
|
$
|
1,328
|
|
|
$
|
1,216
|
|
|
Successor
|
|
|
Predecessor
|
||||||||
MSRs - Fair Value
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
||||||
Fair value - beginning of period
|
$
|
3,665
|
|
|
$
|
3,413
|
|
|
|
$
|
2,937
|
|
Additions:
|
|
|
|
|
|
|
||||||
Servicing retained from mortgage loans sold
|
298
|
|
|
43
|
|
|
|
162
|
|
|||
Purchases of servicing rights(1)
|
732
|
|
|
72
|
|
|
|
144
|
|
|||
Dispositions:
|
|
|
|
|
|
|
||||||
Sales of servicing assets(2)
|
(317
|
)
|
|
(63
|
)
|
|
|
4
|
|
|||
Changes in fair value:
|
|
|
|
|
|
|
||||||
Changes in valuation inputs or assumptions used in the valuation model
|
(716
|
)
|
|
65
|
|
|
|
330
|
|
|||
Other changes in fair value
|
(323
|
)
|
|
(45
|
)
|
|
|
(164
|
)
|
|||
Fair value - end of period
|
$
|
3,339
|
|
|
$
|
3,485
|
|
|
|
$
|
3,413
|
|
(1)
|
Purchases of servicing rights during the nine months ended September 30, 2019 includes $271 of mortgage servicing rights that were acquired from Pacific Union. See Note 2, Acquisitions for further discussion. In addition, on January 3, 2019, the Company entered into a subservicing contract for $24 billion unpaid principal balance in mortgages. The related servicing rights were subsequently purchased on May 1, 2019, resulting in additional $253 servicing rights during the second quarter of 2019.
|
(2)
|
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
|
||||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
MSRs - Sensitivity Pools
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
157,898
|
|
|
$
|
1,661
|
|
|
$
|
135,752
|
|
|
$
|
1,495
|
|
Interest sensitive
|
148,783
|
|
|
1,678
|
|
|
159,729
|
|
|
2,170
|
|
||||
Total
|
$
|
306,681
|
|
|
$
|
3,339
|
|
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
Successor
|
||||
|
September 30, 2019
|
|
December 31, 2018
|
||
Credit Sensitive
|
|
|
|
||
Discount rate
|
10.4
|
%
|
|
11.3
|
%
|
Prepayment speeds
|
13.2
|
%
|
|
11.8
|
%
|
Average life
|
5.9 years
|
|
|
6.4 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9.0
|
%
|
|
9.3
|
%
|
Prepayment speeds
|
14.6
|
%
|
|
10.0
|
%
|
Average life
|
5.4 years
|
|
|
7.0 years
|
|
|
|
|
|
||
Total MSR Portfolio
|
|
|
|
||
Discount rate
|
9.7
|
%
|
|
10.2
|
%
|
Prepayment speeds
|
13.9
|
%
|
|
10.8
|
%
|
Average life
|
5.6 years
|
|
|
6.7 years
|
|
|
Successor
|
||||||||||||||
|
Discount Rate
|
|
Total Prepayment Speeds
|
||||||||||||
MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(117
|
)
|
|
$
|
(226
|
)
|
|
$
|
(164
|
)
|
|
$
|
(316
|
)
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(137
|
)
|
|
$
|
(265
|
)
|
|
$
|
(129
|
)
|
|
$
|
(250
|
)
|
|
Successor
|
||||
|
September 30, 2019
|
|
December 31, 2018
|
||
Excess Spread Financing Assumptions
|
|
|
|
||
Discount rate
|
11.9
|
%
|
|
10.4
|
%
|
Prepayment speeds
|
13.3
|
%
|
|
11.0
|
%
|
Recapture rate
|
22.3
|
%
|
|
18.6
|
%
|
Average life
|
5.7 years
|
|
|
6.5 years
|
|
|
Successor
|
||||||||||||||
|
Discount Rate
|
|
Prepayment Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
September 30, 2019
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
42
|
|
|
$
|
87
|
|
|
$
|
44
|
|
|
$
|
93
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
47
|
|
|
$
|
99
|
|
|
$
|
38
|
|
|
$
|
81
|
|
|
Successor
|
||||
Mortgage Servicing Rights Financing Assumptions
|
September 30, 2019
|
|
December 31, 2018
|
||
Advance financing rates
|
3.7
|
%
|
|
4.2
|
%
|
Annual advance recovery rates
|
18.7
|
%
|
|
19.0
|
%
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Servicing Revenue
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Contractually specified servicing fees(1)
|
$
|
305
|
|
|
$
|
893
|
|
|
$
|
163
|
|
|
|
$
|
79
|
|
|
$
|
574
|
|
Other service-related income(1)(2)
|
51
|
|
|
133
|
|
|
18
|
|
|
|
10
|
|
|
66
|
|
|||||
Incentive and modification income(1)
|
12
|
|
|
29
|
|
|
8
|
|
|
|
4
|
|
|
37
|
|
|||||
Late fees(1)
|
30
|
|
|
82
|
|
|
14
|
|
|
|
7
|
|
|
53
|
|
|||||
Reverse servicing fees
|
7
|
|
|
24
|
|
|
13
|
|
|
|
4
|
|
|
37
|
|
|||||
Mark-to-market adjustments(3)
|
(83
|
)
|
|
(607
|
)
|
|
24
|
|
|
|
25
|
|
|
196
|
|
|||||
Counterparty revenue share(4)
|
(86
|
)
|
|
(204
|
)
|
|
(26
|
)
|
|
|
(16
|
)
|
|
(111
|
)
|
|||||
Amortization, net of accretion(5)
|
(73
|
)
|
|
(152
|
)
|
|
(31
|
)
|
|
|
(16
|
)
|
|
(112
|
)
|
|||||
Total servicing revenue
|
$
|
163
|
|
|
$
|
198
|
|
|
$
|
183
|
|
|
|
$
|
97
|
|
|
$
|
740
|
|
(1)
|
Amounts include subservicing related revenues.
|
(2)
|
Amount for the nine months ended September 30, 2019 includes a gain of $21 from the execution of a clean-up call option on a reverse mortgage loan trust, as the Company was the master servicer and holder of clean-up call rights.
|
(3)
|
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 for the Company was $18, $46, and $13 for the three and nine months ended September 30, 2019 and two months ended September 30, 2018, respectively. The impact of negative modeled cash flows for the Predecessor totaled $4 and $38 for the one and seven months ended July 31, 2018, respectively.
|
(4)
|
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 MSRs financing arrangements.
|
(5)
|
Amortization for the Company is net of excess spread accretion of $77 and $172 and MSL accretion of $10 and $39 for the three and nine months ended September 30, 2019, respectively. Amortization for the Company is net of excess spread accretion of $22 for the two months ended September 30, 2018. Amortization of the Predecessor is net of excess spread of $11 and $78 for the one and seven months ended July 31, 2018, 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
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Servicing advances, net of $148 and $205 discount, respectively
|
$
|
865
|
|
|
$
|
1,000
|
|
Receivables from agencies, investors and prior servicers, net of $48 and $48 discount, respectively
|
232
|
|
|
241
|
|
||
Reserves
|
(130
|
)
|
|
(47
|
)
|
||
Total advances and other receivables, net
|
$
|
967
|
|
|
$
|
1,194
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Reserves for Advances and Other Receivables
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Balance - beginning of period
|
$
|
98
|
|
|
$
|
47
|
|
|
$
|
—
|
|
|
|
$
|
294
|
|
|
$
|
284
|
|
Provision and other additions(1)
|
35
|
|
|
102
|
|
|
20
|
|
|
|
7
|
|
|
69
|
|
|||||
Write-offs
|
(3
|
)
|
|
(19
|
)
|
|
—
|
|
|
|
(4
|
)
|
|
(56
|
)
|
|||||
Balance - end of period
|
$
|
130
|
|
|
$
|
130
|
|
|
$
|
20
|
|
|
|
$
|
297
|
|
|
$
|
297
|
|
(1)
|
The Company recorded a provision of $18, $46, and $13 through the MTM adjustments in service related revenues for the three and nine months ended September 30, 2019, and two months ended September 30, 2018, respectively. The Predecessor recorded a provision of $4 and $38 through the MTM adjustments in service related revenues for the one and seven months ended July 31, 2018, 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
|
||||||||||
Purchase Discounts - Servicing Advances
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
||||||
Balance - beginning of period
|
$
|
156
|
|
|
$
|
205
|
|
|
$
|
246
|
|
Addition from acquisition
|
—
|
|
|
19
|
|
|
—
|
|
|||
Utilization of purchase discounts
|
(8
|
)
|
|
(76
|
)
|
|
(19
|
)
|
|||
Balance - end of period
|
$
|
148
|
|
|
$
|
148
|
|
|
$
|
227
|
|
|
Successor
|
||||||||||
Purchase Discounts - Receivables from Agencies, Investors and Prior Servicers
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
||||||
Balance - beginning of period
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
56
|
|
Addition from acquisition
|
—
|
|
|
—
|
|
|
—
|
|
|||
Utilization of purchase discounts
|
—
|
|
|
—
|
|
|
—
|
|
|||
Balance - end of period
|
$
|
48
|
|
|
$
|
48
|
|
|
$
|
56
|
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Participating interests in HECM mortgage-backed securities (“HMBS”), including $14 and $58 purchase premium, respectively
|
$
|
4,592
|
|
|
$
|
5,664
|
|
Other interests securitized, net of $63 and $100 purchase discount, respectively
|
879
|
|
|
1,064
|
|
||
Unsecuritized interests, net of $75 and $122 purchase discount, respectively
|
1,204
|
|
|
1,219
|
|
||
Reserves
|
(13
|
)
|
|
(13
|
)
|
||
Total reverse mortgage interests, net
|
$
|
6,662
|
|
|
$
|
7,934
|
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Repurchased HECM loans (exceeds 98% MCA)
|
$
|
874
|
|
|
$
|
949
|
|
HECM related receivables(1)
|
289
|
|
|
300
|
|
||
Funded borrower draws not yet securitized
|
92
|
|
|
76
|
|
||
REO-related receivables
|
24
|
|
|
16
|
|
||
Purchase discount, net
|
(75
|
)
|
|
(122
|
)
|
||
Total unsecuritized interests
|
$
|
1,204
|
|
|
$
|
1,219
|
|
(1)
|
HECM related receivables consist primarily of FNMA receivables for corporate advances and service fees and claims receivables from the U.S. Department of Housing and Urban Development (“HUD”).
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Reserves for reverse mortgage interests
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Balance - beginning of period
|
$
|
8
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
|
$
|
117
|
|
|
$
|
115
|
|
Provision (release), net
|
5
|
|
|
7
|
|
|
1
|
|
|
|
12
|
|
|
32
|
|
|||||
Write-offs
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
|
—
|
|
|
(18
|
)
|
|||||
Balance - end of period
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
1
|
|
|
|
$
|
129
|
|
|
$
|
129
|
|
|
Successor
|
||||||||||
|
Three Months Ended September 30, 2019
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Net Premium for Participating Interests in HMBS(1)
|
|
Net Discount for Other Interest Securitized(1)
|
|
Net Discount for Unsecuritized Interests(1)
|
||||||
Balance - beginning of period
|
$
|
18
|
|
|
$
|
(84
|
)
|
|
$
|
(97
|
)
|
Utilization of purchase discounts(2)
|
—
|
|
|
11
|
|
|
29
|
|
|||
(Amortization)/Accretion
|
(4
|
)
|
|
9
|
|
|
(6
|
)
|
|||
Transfers(3)
|
—
|
|
|
1
|
|
|
(1
|
)
|
|||
Balance - end of period
|
$
|
14
|
|
|
$
|
(63
|
)
|
|
$
|
(75
|
)
|
|
Successor
|
||||||||||
|
Nine Months Ended September 30, 2019
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Net Premium for Participating Interests in HMBS(1)
|
|
Net Discount for Other Interest Securitized(1)
|
|
Net Discount for Unsecuritized Interests(1)
|
||||||
Balance - beginning of period
|
$
|
58
|
|
|
$
|
(100
|
)
|
|
$
|
(122
|
)
|
Adjustments(4)
|
(16
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|||
Utilization of purchase discounts(2)
|
—
|
|
|
24
|
|
|
56
|
|
|||
(Amortization)/Accretion
|
(41
|
)
|
|
22
|
|
|
3
|
|
|||
Transfers(3)
|
13
|
|
|
(7
|
)
|
|
(6
|
)
|
|||
Balance - end of period
|
$
|
14
|
|
|
$
|
(63
|
)
|
|
$
|
(75
|
)
|
|
Successor
|
||||||||||
|
Two Months Ended September 30, 2018
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Net Premium for Participating Interests in HMBS(1)
|
|
Net Discount for Other Interest Securitized(1)
|
|
Net Discount for Unsecuritized Interests(1)
|
||||||
Balance - beginning of period
|
$
|
58
|
|
|
$
|
(117
|
)
|
|
$
|
(161
|
)
|
(Amortization)/Accretion
|
(3
|
)
|
|
—
|
|
|
10
|
|
|||
Balance - end of period
|
$
|
55
|
|
|
$
|
(117
|
)
|
|
$
|
(151
|
)
|
(1)
|
Net position as certain items are in a premium/(discount) position, based on the characteristics of underlying tranches of loans.
|
(2)
|
Utilization of purchase discounts to mitigate loss on liquidated loans, for which the remaining receivable was written-off.
|
(3)
|
Transfer of premium/(discount) based on the transfer of associated loans between categories consistent with the underlying loan characteristics.
|
(4)
|
Adjustments to premium/(discount) due to revised cost to service assumption utilized in the valuation of reverse mortgage assets and liabilities acquired from the Merger. See Note 2, Acquisitions for additional information.
|
|
Predecessor
|
||||||
Purchase discount for reverse mortgage interests
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||
Balance - beginning of period
|
$
|
(84
|
)
|
|
$
|
(89
|
)
|
Additions
|
—
|
|
|
(7
|
)
|
||
Accretion
|
2
|
|
|
14
|
|
||
Balance - end of period
|
$
|
(82
|
)
|
|
$
|
(82
|
)
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Mortgage loans held for sale – UPB
|
$
|
4,110
|
|
|
$
|
1,568
|
|
Mark-to-market adjustment(1)
|
157
|
|
|
63
|
|
||
Total mortgage loans held for sale
|
$
|
4,267
|
|
|
$
|
1,631
|
|
(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 $26 and $40 of UPB related to Ginnie Mae repurchased loans as of September 30, 2019 and December 31, 2018, respectively.
|
|
Successor
|
|
|
Predecessor
|
||||||||
Mortgage loans held for sale
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
||||||
Balance - beginning of period
|
$
|
1,631
|
|
|
$
|
1,514
|
|
|
|
$
|
1,891
|
|
Mortgage loans originated and purchased, net of fees(1)
|
28,199
|
|
|
3,459
|
|
|
|
12,319
|
|
|||
Loans sold
|
(27,430
|
)
|
|
(3,508
|
)
|
|
|
(13,255
|
)
|
|||
Repurchase of loans out of Ginnie Mae securitizations
|
1,823
|
|
|
223
|
|
|
|
544
|
|
|||
Net transfers of mortgage loans held for sale to/from REO in other assets and transfer from mortgage loans held for investment(2)(3)
|
15
|
|
|
4
|
|
|
|
14
|
|
|||
Changes in fair value
|
19
|
|
|
(8
|
)
|
|
|
(1
|
)
|
|||
Other purchase-related activities(4)
|
10
|
|
|
(1
|
)
|
|
|
9
|
|
|||
Transfer of mortgage loans held for sale to advances and other receivables, net related to claims(5)
|
—
|
|
|
(2
|
)
|
|
|
(7
|
)
|
|||
Balance - end of period
|
$
|
4,267
|
|
|
$
|
1,681
|
|
|
|
$
|
1,514
|
|
(1)
|
Mortgage loans originated and purchased during the nine months ended September 30, 2019 includes $536 of loans held for sale that were acquired from Pacific Union. See Note 2, Acquisitions for further discussion.
|
(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)
|
Amount for the nine months ended September 30, 2019 includes $12 transfer from mortgage loans held for investment upon collapse of Trust 2009-A, the Company’s legacy portfolio, and sale of the loans held in the trust. See mortgage loans held for investment discussed in section below for additional information.
|
(4)
|
Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts.
|
(5)
|
Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale.
|
|
Successor
|
||||||
Mortgage loans held for investment at fair value
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
||||
Balance - beginning of period
|
$
|
119
|
|
|
$
|
125
|
|
Sale of mortgage loans
|
(94
|
)
|
|
—
|
|
||
Transfers to mortgage loans held for sale
|
(12
|
)
|
|
—
|
|
||
Payments received from borrowers
|
(11
|
)
|
|
(2
|
)
|
||
Transfers to real estate owned
|
(5
|
)
|
|
—
|
|
||
Changes in fair value(1)
|
3
|
|
|
—
|
|
||
Losses incurred
|
—
|
|
|
(1
|
)
|
||
Balance - end of period
|
$
|
—
|
|
|
$
|
122
|
|
(1)
|
The changes in fair value during the two months ended September 30, 2018, is less than $1.
|
|
Successor
|
||
|
December 31, 2018
|
||
Mortgage loans held for investment – UPB
|
$
|
156
|
|
Fair value adjustments
|
(37
|
)
|
|
Total mortgage loans held for investment at fair value
|
$
|
119
|
|
|
Successor
|
||||||
|
December 31, 2018
|
||||||
Mortgage Loans Held for Investment - UPB
|
UPB
|
|
Fair Value
|
||||
Non-accrual
|
$
|
27
|
|
|
$
|
13
|
|
|
Successor
|
||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Operating lease cost
|
$
|
10
|
|
|
$
|
29
|
|
Short-term lease cost(1)
|
—
|
|
|
1
|
|
||
Sublease income
|
(1
|
)
|
|
(2
|
)
|
||
Net lease cost
|
$
|
9
|
|
|
$
|
28
|
|
(1)
|
Amount for three months ended September 30, 2019 is less than $1.
|
|
Successor
|
||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
8
|
|
|
$
|
21
|
|
Leased assets obtained in exchange for new operating lease liabilities(1)
|
$
|
(5
|
)
|
|
$
|
150
|
|
Weighted average remaining lease term - operating leases, in years
|
5.7
|
|
|
5.7
|
|
||
Weighted average discount rate - operating leases
|
5.0
|
%
|
|
5.0
|
%
|
(1)
|
The reduction in the three months ended September 30, 2019 is due to a modification of lease agreements.
|
Year Ending December 31,
|
|
Operating Leases
|
||
2019(1)
|
|
$
|
10
|
|
2020
|
|
39
|
|
|
2021
|
|
30
|
|
|
2022
|
|
22
|
|
|
2023
|
|
16
|
|
|
2024 and thereafter
|
|
45
|
|
|
Total future minimum lease payments
|
|
162
|
|
|
Less: imputed interest
|
|
25
|
|
|
Total operating lease liabilities
|
|
$
|
137
|
|
(1)
|
Excluding the nine months ended September 30, 2019.
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Loans subject to repurchase from Ginnie Mae
|
$
|
629
|
|
|
$
|
266
|
|
Trade receivables and accrued revenues
|
142
|
|
|
145
|
|
||
Right-of-use assets
|
126
|
|
|
—
|
|
||
Goodwill
|
120
|
|
|
23
|
|
||
Intangible assets
|
93
|
|
|
117
|
|
||
Other
|
339
|
|
|
244
|
|
||
Total other assets
|
$
|
1,449
|
|
|
$
|
795
|
|
|
|
Successor
|
||
|
|
Nine Months Ended September 30, 2019
|
||
Balance - beginning of period
|
|
$
|
23
|
|
Additions from acquisitions(1)
|
|
42
|
|
|
Measurement period adjustment related to Merger(2)
|
|
55
|
|
|
Balance - end of period
|
|
$
|
120
|
|
(1)
|
As discussed in Note 2, Acquisitions, the Company recorded goodwill of $40 in connection with the acquisition of Pacific Union. In addition, on February 28, 2019, the Company completed the acquisition of the Seterus mortgage servicing platform and assumed certain assets related thereto from IBM (“Seterus acquisition”). In connection with the Seterus acquisition, the Company recorded $2 in goodwill.
|
(2)
|
The Company recorded a total measurement period adjustment of $55 to goodwill in 2019 related to the acquisition of Nationstar. See further discussion in Note 2, Acquisitions.
|
|
|
|
Successor
|
||||||||||
|
|
|
September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
||||||||
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded Gains/(Losses)
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2019
|
|
$
|
1,508
|
|
|
$
|
35.3
|
|
|
$
|
9.4
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2019
|
|
4,964
|
|
|
143.9
|
|
|
84.1
|
|
|||
Forward MBS trades
|
2019
|
|
3,054
|
|
|
7.7
|
|
|
5.9
|
|
|||
LPCs
|
2019
|
|
1,397
|
|
|
18.2
|
|
|
16.5
|
|
|||
Eurodollar futures(1)
|
2020-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs(1)
|
2019
|
|
15
|
|
|
—
|
|
|
—
|
|
|||
Forward MBS trades
|
2019
|
|
5,667
|
|
|
15.9
|
|
|
(8.0
|
)
|
|||
LPCs
|
2019
|
|
547
|
|
|
3.1
|
|
|
2.7
|
|
|||
Eurodollar futures(1)
|
2019-2021
|
|
8
|
|
|
—
|
|
|
—
|
|
|
|
|
Successor
|
|
Predecessor
|
||||||||||||
|
|
|
September 30, 2018
|
|
Two Months Ended September 30, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
|
Expiration
Dates |
|
Outstanding
Notional |
|
Fair
Value |
|
Recorded Gains/(Losses)
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
||||||||
Loan sale commitments
|
2018
|
|
$
|
428
|
|
|
$
|
6.9
|
|
|
$
|
(3.7
|
)
|
|
$
|
10.5
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
2018
|
|
1,765
|
|
|
57.8
|
|
|
(1.8
|
)
|
|
0.4
|
|
||||
Forward MBS trades
|
2018
|
|
3,040
|
|
|
12.2
|
|
|
9.0
|
|
|
0.9
|
|
||||
LPCs
|
2018
|
|
228
|
|
|
1.7
|
|
|
0.5
|
|
|
0.3
|
|
||||
Treasury futures
|
2018
|
|
65
|
|
|
—
|
|
|
—
|
|
|
(1.8
|
)
|
||||
Eurodollar futures(1)
|
2018-2021
|
|
20
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
|
|
||||||||
IRLCs(1)
|
2018
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Forward MBS trades
|
2018
|
|
413
|
|
|
0.5
|
|
|
(1.4
|
)
|
|
(1.0
|
)
|
||||
LPCs
|
2018
|
|
320
|
|
|
1.5
|
|
|
0.9
|
|
|
0.1
|
|
||||
Treasury futures(1)
|
2018
|
|
53
|
|
|
0.1
|
|
|
0.1
|
|
|
(1.3
|
)
|
||||
Eurodollar futures(1)
|
2020-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(1)
|
Fair values or recorded gains/(losses) of derivative instruments are less than $0.1 for the specified dates.
|
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$325 advance facility
|
|
LIBOR + 1.5% to 6.5%
|
|
August 2021
|
|
Servicing advance receivables
|
|
$
|
325
|
|
|
$
|
233
|
|
|
$
|
294
|
|
|
$
|
209
|
|
|
$
|
284
|
|
$250 advance facility
|
|
LIBOR + 1.5% to 2.6%
|
|
December 2020
|
|
Servicing advance receivables
|
|
250
|
|
|
142
|
|
|
173
|
|
|
218
|
|
|
255
|
|
|||||
$200 advance facility
|
|
LIBOR + 2.5%
|
|
December 2019
|
|
Servicing advance receivables
|
|
200
|
|
|
64
|
|
|
125
|
|
|
90
|
|
|
149
|
|
|||||
$125 advance facility
|
|
LIBOR + 1.5% to 7.4%
|
|
July 2020
|
|
Servicing advance receivables
|
|
125
|
|
|
74
|
|
|
84
|
|
|
78
|
|
|
89
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
513
|
|
|
$
|
676
|
|
|
595
|
|
|
$
|
777
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||||
Advance facilities, net
|
|
|
|
$
|
513
|
|
|
|
|
$
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,500 warehouse facility
|
|
LIBOR + 1.0%
|
|
June 2020
|
|
Mortgage loans or MBS
|
|
$
|
1,500
|
|
|
$
|
970
|
|
|
$
|
938
|
|
|
$
|
—
|
|
|
$
|
—
|
|
$1,200 warehouse facility
|
|
LIBOR + 1.7% to 3.5%
|
|
November 12, 2019
|
|
Mortgage loans or MBS
|
|
1,200
|
|
|
734
|
|
|
779
|
|
|
560
|
|
|
622
|
|
|||||
$1,000 warehouse facility
|
|
LIBOR + 1.4% to 2.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
1,000
|
|
|
521
|
|
|
536
|
|
|
137
|
|
|
140
|
|
|||||
$800 warehouse facility(1)
|
|
LIBOR + 1.5% to 2.9%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
800
|
|
|
586
|
|
|
643
|
|
|
464
|
|
|
514
|
|
|||||
$750 warehouse facility
|
|
LIBOR + 1.4% to 2.8%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
750
|
|
|
511
|
|
|
524
|
|
|
119
|
|
|
122
|
|
|||||
$600 warehouse facility
|
|
LIBOR + 2.3%
|
|
February 2020
|
|
Mortgage loans or MBS
|
|
600
|
|
|
214
|
|
|
251
|
|
|
151
|
|
|
168
|
|
|||||
$500 warehouse facility
|
|
LIBOR + 1.5% to 2.8%
|
|
November 14, 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
405
|
|
|
474
|
|
|
220
|
|
|
248
|
|
|||||
$500 warehouse facility
|
|
LIBOR + 1.5% to 3.0%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
500
|
|
|
391
|
|
|
400
|
|
|
187
|
|
|
200
|
|
|||||
$200 warehouse facility
|
|
LIBOR + 1.5%
|
|
December 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
91
|
|
|
92
|
|
|
—
|
|
|
—
|
|
|||||
$200 warehouse facility
|
|
LIBOR + 1.2%
|
|
April 2021
|
|
Mortgage loans or MBS
|
|
200
|
|
|
91
|
|
|
94
|
|
|
18
|
|
|
19
|
|
|||||
$200 warehouse facility
|
|
LIBOR + 2.0%
|
|
January 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
67
|
|
|
94
|
|
|
103
|
|
|
132
|
|
|||||
$200 warehouse facility
|
|
LIBOR + 1.5%
|
|
October 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
21
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|||||
$50 warehouse facility
|
|
LIBOR + 2.0% to 6.0%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
50
|
|
|
13
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|||||
$40 warehouse facility
|
|
LIBOR + 3.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
40
|
|
|
27
|
|
|
28
|
|
|
—
|
|
|
—
|
|
|||||
$40 warehouse facility
|
|
LIBOR + 3.0%
|
|
November 29, 2019
|
|
Mortgage loans or MBS
|
|
40
|
|
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|||||
$500 warehouse facility(2)
|
|
LIBOR + 2.0% to 2.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
|
299
|
|
|||||
Warehouse facilities principal amount
|
|
4,643
|
|
|
4,892
|
|
|
2,250
|
|
|
2,466
|
|
||||||||||||||
MSR Facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$400 warehouse facility
|
|
LIBOR + 3.5% to 6.1%
|
|
June 2021
|
|
MSR
|
|
400
|
|
|
150
|
|
|
839
|
|
|
100
|
|
|
928
|
|
|||||
$400 warehouse facility
|
|
LIBOR + 2.3%
|
|
December 2020
|
|
MSR
|
|
400
|
|
|
—
|
|
|
193
|
|
|
—
|
|
|
226
|
|
|||||
$150 warehouse facility(1)
|
|
LIBOR + 2.8%
|
|
April 2020
|
|
MSR
|
|
150
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
430
|
|
|||||
$50 warehouse facility
|
|
LIBOR + 2.8%
|
|
August 2020
|
|
MSR
|
|
50
|
|
|
10
|
|
|
84
|
|
|
—
|
|
|
102
|
|
|||||
|
|
|
|
|
|
|
|
|
|
160
|
|
|
1,237
|
|
|
100
|
|
|
1,686
|
|
||||||
Warehouse and MSR facilities principal amount
|
|
4,803
|
|
|
$
|
6,129
|
|
|
2,350
|
|
|
$
|
4,152
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
||||||||||
Warehouse facilities, net
|
|
$
|
4,802
|
|
|
|
|
$
|
2,349
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans and mortgage loans held for investment
|
|
|
|
|
|
|
|
$
|
3,980
|
|
|
$
|
4,119
|
|
|
$
|
1,528
|
|
|
$
|
1,628
|
|
||||
Reverse mortgage interests
|
|
|
|
|
|
|
|
663
|
|
|
773
|
|
|
722
|
|
|
838
|
|
||||||||
MSR
|
|
|
|
|
|
|
|
160
|
|
|
1,237
|
|
|
100
|
|
|
1,686
|
|
(1)
|
Total capacity amount for this facility is $800 of which $150 is a sublimit for MSR financing.
|
(2)
|
This facility was terminated during August 2019.
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023
|
$
|
950
|
|
|
$
|
950
|
|
$750 face value, 9.125% interest rate payable semi-annually, due July 2026
|
750
|
|
|
750
|
|
||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021(1)
|
592
|
|
|
592
|
|
||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
|
206
|
|
|
206
|
|
||
Unsecured senior notes principal amount
|
2,498
|
|
|
2,498
|
|
||
Unamortized debt issuance costs, premium and discount
|
(34
|
)
|
|
(39
|
)
|
||
Unsecured senior notes, net
|
$
|
2,464
|
|
|
$
|
2,459
|
|
(1)
|
This note was subsequently paid down by $100 in principal balance in October 2019.
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021(1)
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Total unsecured senior notes principal amount
|
|
$
|
2,498
|
|
(1)
|
This note does not include the subsequent pay down of $100 in principal balance in October 2019.
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
Outstanding
|
||||||
Participating interest financing(1)
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
4,581
|
|
|
$
|
5,607
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2017-2(2)
|
September 2017
|
|
September 2027
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
231
|
|
|||
Trust 2018-1
|
March 2018
|
|
March 2028
|
|
A, M1, M2, M3, M4, M5
|
|
232
|
|
|
201
|
|
|
284
|
|
|||
Trust 2018-2
|
August 2018
|
|
August 2028
|
|
A, M1, M2, M3, M4, M5
|
|
179
|
|
|
161
|
|
|
250
|
|
|||
Trust 2018-3
|
November 2018
|
|
November 2028
|
|
A, M1, M2, M3, M4, M5
|
|
254
|
|
|
239
|
|
|
326
|
|
|||
Trust 2019-1
|
June 2019
|
|
June 2029
|
|
A, M1, M2, M3, M4, M5
|
|
347
|
|
|
339
|
|
|
—
|
|
|||
Nonrecourse Debt - Legacy(3)
|
November 2009
|
|
October 2039
|
|
A
|
|
—
|
|
|
—
|
|
|
29
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
5,521
|
|
|
6,727
|
|
||||
Unamortized debt issuance costs, premium and discount
|
|
|
|
|
|
|
|
|
12
|
|
|
68
|
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
$
|
5,533
|
|
|
$
|
6,795
|
|
(1)
|
Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios.
|
(2)
|
As discussed in Note 5, Reverse Mortgage Interests, Net, Trust 2017-2 was extinguished.
|
(3)
|
As discussed in Note 6, Mortgage Loans Held for Sale and Investment, Trust 2009-A, the Company’s legacy portfolio, was collapsed and the related debt was extinguished during September 2019.
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Loans subject to repurchase from Ginnie Mae
|
$
|
629
|
|
|
$
|
266
|
|
Payables to servicing and subservicing investors
|
523
|
|
|
494
|
|
||
Operating lease liability
|
137
|
|
|
—
|
|
||
Payables to GSEs and securitized trusts
|
126
|
|
|
105
|
|
||
MSR purchases payable including advances
|
21
|
|
|
182
|
|
||
Other liabilities
|
566
|
|
|
496
|
|
||
Total payables and other liabilities
|
$
|
2,002
|
|
|
$
|
1,543
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
Repurchase Reserves
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Balance - beginning of period
|
$
|
23
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
|
$
|
9
|
|
|
$
|
9
|
|
Provisions(1)
|
5
|
|
|
21
|
|
|
1
|
|
|
|
—
|
|
|
3
|
|
|||||
Releases
|
(4
|
)
|
|
(5
|
)
|
|
(1
|
)
|
|
|
—
|
|
|
(3
|
)
|
|||||
Balance - end of period
|
$
|
24
|
|
|
$
|
24
|
|
|
$
|
9
|
|
|
|
$
|
9
|
|
|
$
|
9
|
|
(1)
|
Provision for the three and nine months ended September 30, 2019 is primarily due to repurchase reserve liabilities assumed in connection with the acquisition of Pacific Union. See Note 2, Acquisitions for additional information.
|
|
Successor
|
||||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
70
|
|
|
$
|
46
|
|
|
$
|
70
|
|
|
$
|
63
|
|
Reverse mortgage interests, net(1)
|
—
|
|
|
5,471
|
|
|
—
|
|
|
6,728
|
|
||||
Advances and other receivables, net
|
552
|
|
|
—
|
|
|
628
|
|
|
—
|
|
||||
Mortgage loans held for investment, net(2)
|
—
|
|
|
—
|
|
|
118
|
|
|
—
|
|
||||
Total assets
|
$
|
622
|
|
|
$
|
5,517
|
|
|
$
|
816
|
|
|
$
|
6,791
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities(3)
|
$
|
449
|
|
|
$
|
—
|
|
|
$
|
505
|
|
|
$
|
—
|
|
Payables and other liabilities
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Participating interest financing
|
—
|
|
|
4,581
|
|
|
—
|
|
|
5,607
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-2
|
—
|
|
|
—
|
|
|
—
|
|
|
231
|
|
||||
Trust 2018-1
|
—
|
|
|
201
|
|
|
—
|
|
|
284
|
|
||||
Trust 2018-2
|
—
|
|
|
161
|
|
|
—
|
|
|
250
|
|
||||
Trust 2018-3
|
—
|
|
|
239
|
|
|
—
|
|
|
326
|
|
||||
Trust 2019-1
|
—
|
|
|
339
|
|
|
—
|
|
|
—
|
|
||||
Nonrecourse debt – legacy assets(2)
|
—
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||
Total liabilities
|
$
|
450
|
|
|
$
|
5,522
|
|
|
$
|
535
|
|
|
$
|
6,699
|
|
(1)
|
Amounts include net purchase discount of $49 and $42 as of September 30, 2019 and December 31, 2018, respectively.
|
(2)
|
The Nationstar Home Equity Loan Trust 2009-A was collapsed in September 2019. Refer to Mortgage Loans Held for Investment in Note 6, Mortgage Loans Held for Sale and Investment, for additional information.
|
(3)
|
Amounts 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 10, Indebtedness, for additional information.
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Total collateral balances - UPB
|
$
|
1,553
|
|
|
$
|
1,873
|
|
Total certificate balances
|
$
|
1,562
|
|
|
$
|
1,817
|
|
|
Successor
|
||||||
Principal Amount of Loans 60 Days or More Past Due
|
September 30, 2019
|
|
December 31, 2018
|
||||
Unconsolidated securitization trusts
|
$
|
204
|
|
|
$
|
285
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Net income (loss) attributable to Successor/Predecessor
|
$
|
84
|
|
|
$
|
(189
|
)
|
|
$
|
1,020
|
|
|
|
$
|
(64
|
)
|
|
$
|
154
|
|
Less: Undistributed earnings attributable to participating stockholders
|
1
|
|
|
—
|
|
9
|
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to common stockholders
|
$
|
83
|
|
|
$
|
(189
|
)
|
|
$
|
1,011
|
|
|
|
$
|
(64
|
)
|
|
$
|
154
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) per common share attributable to Successor/Predecessor:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.91
|
|
|
$
|
(2.08
|
)
|
|
$
|
11.13
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
1.57
|
|
Diluted
|
$
|
0.90
|
|
|
$
|
(2.08
|
)
|
|
$
|
10.99
|
|
|
|
$
|
(0.65
|
)
|
|
$
|
1.55
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
91,080
|
|
|
91,012
|
|
|
90,808
|
|
|
|
98,164
|
|
|
98,046
|
|
|||||
Dilutive effect of stock awards
|
117
|
|
|
—
|
|
|
345
|
|
|
|
—
|
|
|
1,091
|
|
|||||
Dilutive effect of participating securities
|
839
|
|
|
—
|
|
|
839
|
|
|
|
—
|
|
|
—
|
|
|||||
Diluted
|
92,036
|
|
|
91,012
|
|
|
91,992
|
|
|
|
98,164
|
|
|
99,137
|
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Income (loss) before income tax expense (benefit)
|
$
|
107
|
|
|
$
|
(243
|
)
|
|
$
|
41
|
|
|
|
$
|
(83
|
)
|
|
$
|
202
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense (benefit)
|
$
|
24
|
|
|
$
|
(52
|
)
|
|
$
|
(979
|
)
|
|
|
$
|
(19
|
)
|
|
$
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Effective tax rate(1)
|
22.3
|
%
|
|
21.5
|
%
|
|
(2,377.1
|
)%
|
|
|
23.1
|
%
|
|
23.8
|
%
|
(1)
|
Effective tax rate is calculated using whole numbers.
|
|
Successor
|
||||||||||||||
|
September 30, 2019
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
|
$
|
4,267.2
|
|
|
$
|
—
|
|
|
$
|
4,267.2
|
|
|
$
|
—
|
|
Forward mortgage servicing rights
|
3,338.5
|
|
|
—
|
|
|
—
|
|
|
3,338.5
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
143.9
|
|
|
—
|
|
|
143.9
|
|
|
—
|
|
||||
Forward MBS trades
|
7.7
|
|
|
—
|
|
|
7.7
|
|
|
—
|
|
||||
LPCs
|
18.2
|
|
|
—
|
|
|
18.2
|
|
|
—
|
|
||||
Eurodollar futures(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
7,775.5
|
|
|
$
|
—
|
|
|
$
|
4,437.0
|
|
|
$
|
3,338.5
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs(1)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
15.9
|
|
|
—
|
|
|
15.9
|
|
|
—
|
|
||||
LPCs
|
3.1
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
||||
Eurodollar futures(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
46.9
|
|
|
—
|
|
|
—
|
|
|
46.9
|
|
||||
Excess spread financing
|
1,280.8
|
|
|
—
|
|
|
—
|
|
|
1,280.8
|
|
||||
Total liabilities
|
$
|
1,346.7
|
|
|
$
|
—
|
|
|
$
|
19.0
|
|
|
$
|
1,327.7
|
|
|
Successor
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
|
$
|
1,630.8
|
|
|
$
|
—
|
|
|
$
|
1,630.8
|
|
|
$
|
—
|
|
Mortgage loans held for investment
|
119.1
|
|
|
—
|
|
|
—
|
|
|
119.1
|
|
||||
Forward mortgage servicing rights
|
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(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
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(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
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)
|
Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates.
|
|
Successor
|
||||||||||||||
|
Assets
|
|
Liabilities
|
||||||||||||
Nine Months Ended September 30, 2019
|
Mortgage servicing rights
|
|
Mortgage loans held for investment
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||||
Balance - beginning of period
|
$
|
3,665
|
|
|
$
|
119
|
|
|
$
|
1,184
|
|
|
$
|
32
|
|
Total gains or losses included in earnings
|
(1,039
|
)
|
|
3
|
|
|
(190
|
)
|
|
15
|
|
||||
Payments received from borrowers
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
||||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
732
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuances
|
298
|
|
|
—
|
|
|
469
|
|
|
—
|
|
||||
Sales
|
(317
|
)
|
|
(94
|
)
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(163
|
)
|
|
—
|
|
||||
Transfers to mortgage loans held for sale
|
—
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
||||
Transfers to real estate owned
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
||||
Balance - end of period
|
$
|
3,339
|
|
|
$
|
—
|
|
|
$
|
1,281
|
|
|
$
|
47
|
|
|
Successor
|
||||||||||||||
|
Assets
|
|
Liabilities
|
||||||||||||
Two Months Ended September 30, 2018
|
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
|
20
|
|
|
(1
|
)
|
|
26
|
|
|
—
|
|
||||
Payments received from borrowers
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuances
|
43
|
|
|
—
|
|
|
84
|
|
|
—
|
|
||||
Sales
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
||||
Balance - end of period
|
$
|
3,485
|
|
|
$
|
122
|
|
|
$
|
1,097
|
|
|
$
|
26
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
Seven Months Ended July 31, 2018
|
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
|
|
|
Successor
|
||||||||||||||
|
September 30, 2019
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
371
|
|
|
$
|
371
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
271
|
|
|
271
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
967
|
|
|
—
|
|
|
—
|
|
|
967
|
|
||||
Reverse mortgage interests, net
|
6,662
|
|
|
—
|
|
|
—
|
|
|
6,726
|
|
||||
Mortgage loans held for sale
|
4,267
|
|
|
—
|
|
|
4,267
|
|
|
—
|
|
||||
Derivative financial instruments
|
170
|
|
|
—
|
|
|
170
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,464
|
|
|
2,592
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
513
|
|
|
—
|
|
|
513
|
|
|
—
|
|
||||
Warehouse facilities
|
4,802
|
|
|
—
|
|
|
4,802
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
47
|
|
|
—
|
|
|
—
|
|
|
47
|
|
||||
Excess spread financing
|
1,281
|
|
|
—
|
|
|
—
|
|
|
1,281
|
|
||||
Derivative financial instruments
|
19
|
|
|
—
|
|
|
19
|
|
|
—
|
|
||||
Participating interest financing
|
4,593
|
|
|
—
|
|
|
—
|
|
|
4,590
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2018-1
|
201
|
|
|
—
|
|
|
—
|
|
|
201
|
|
||||
Trust 2018-2
|
161
|
|
|
—
|
|
|
—
|
|
|
161
|
|
||||
Trust 2018-3
|
239
|
|
|
—
|
|
|
—
|
|
|
239
|
|
||||
Trust 2019-1
|
339
|
|
|
—
|
|
|
—
|
|
|
339
|
|
|
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
|
|
|
—
|
|
|
—
|
|
|
7,934
|
|
||||
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
|
|
|
Successor
|
||||||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
163
|
|
|
$
|
22
|
|
|
$
|
112
|
|
|
$
|
(39
|
)
|
|
$
|
258
|
|
|
$
|
—
|
|
|
$
|
258
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
312
|
|
|
—
|
|
|
37
|
|
|
349
|
|
|
11
|
|
|
360
|
|
|||||||
Total revenues
|
163
|
|
|
334
|
|
|
112
|
|
|
(2
|
)
|
|
607
|
|
|
11
|
|
|
618
|
|
|||||||
Total Expenses
|
171
|
|
|
155
|
|
|
101
|
|
|
(2
|
)
|
|
425
|
|
|
53
|
|
|
478
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
137
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
2
|
|
|
163
|
|
|||||||
Interest expense
|
(120
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(52
|
)
|
|
(196
|
)
|
|||||||
Other
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Total Other Income (Expenses), Net
|
17
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
19
|
|
|
(52
|
)
|
|
(33
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
9
|
|
|
$
|
178
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
201
|
|
|
$
|
(94
|
)
|
|
$
|
107
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
9
|
|
|
$
|
22
|
|
Total assets
|
$
|
12,049
|
|
|
$
|
8,450
|
|
|
$
|
515
|
|
|
$
|
(4,650
|
)
|
|
$
|
16,364
|
|
|
$
|
2,114
|
|
|
$
|
18,478
|
|
|
Successor
|
||||||||||||||||||||||||||
|
Two Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
183
|
|
|
$
|
10
|
|
|
$
|
73
|
|
|
$
|
(7
|
)
|
|
$
|
259
|
|
|
$
|
—
|
|
|
$
|
259
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
76
|
|
|
—
|
|
|
7
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||||
Total revenues
|
183
|
|
|
86
|
|
|
73
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
342
|
|
|||||||
Total Expenses
|
104
|
|
|
66
|
|
|
71
|
|
|
—
|
|
|
241
|
|
|
34
|
|
|
275
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
78
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
2
|
|
|
90
|
|
|||||||
Interest expense
|
(74
|
)
|
|
(10
|
)
|
|
(1
|
)
|
|
—
|
|
|
(85
|
)
|
|
(37
|
)
|
|
(122
|
)
|
|||||||
Other
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||||
Total Other Income (Expenses), Net
|
9
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
(35
|
)
|
|
(26
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
88
|
|
|
$
|
21
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
(69
|
)
|
|
$
|
41
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
15
|
|
Total assets
|
$
|
14,166
|
|
|
$
|
4,892
|
|
|
$
|
457
|
|
|
$
|
(3,532
|
)
|
|
$
|
15,983
|
|
|
$
|
1,745
|
|
|
$
|
17,728
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
One Month Ended July 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
97
|
|
|
$
|
4
|
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
41
|
|
|
—
|
|
|
3
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||||
Total revenues
|
97
|
|
|
45
|
|
|
22
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||||
Total Expenses
|
126
|
|
|
34
|
|
|
19
|
|
|
—
|
|
|
179
|
|
|
63
|
|
|
242
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
41
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
1
|
|
|
48
|
|
|||||||
Interest expense
|
(35
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(12
|
)
|
|
(53
|
)
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Income (Expenses), Net
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(11
|
)
|
|
(5
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
(23
|
)
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
(74
|
)
|
|
$
|
(83
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Total assets
|
$
|
14,578
|
|
|
$
|
4,701
|
|
|
$
|
425
|
|
|
$
|
(3,591
|
)
|
|
$
|
16,113
|
|
|
$
|
913
|
|
|
$
|
17,026
|
|
|
Successor
|
||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
198
|
|
|
$
|
57
|
|
|
$
|
316
|
|
|
$
|
(92
|
)
|
|
$
|
479
|
|
|
$
|
—
|
|
|
$
|
479
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
687
|
|
|
—
|
|
|
90
|
|
|
777
|
|
|
11
|
|
|
788
|
|
|||||||
Total revenues
|
198
|
|
|
744
|
|
|
316
|
|
|
(2
|
)
|
|
1,256
|
|
|
11
|
|
|
1,267
|
|
|||||||
Total Expenses
|
555
|
|
|
404
|
|
|
301
|
|
|
(2
|
)
|
|
1,258
|
|
|
155
|
|
|
1,413
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
388
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
452
|
|
|
7
|
|
|
459
|
|
|||||||
Interest expense
|
(343
|
)
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
(410
|
)
|
|
(162
|
)
|
|
(572
|
)
|
|||||||
Other
|
—
|
|
|
4
|
|
|
14
|
|
|
—
|
|
|
18
|
|
|
(2
|
)
|
|
16
|
|
|||||||
Total Other Income (Expenses), Net
|
45
|
|
|
1
|
|
|
14
|
|
|
—
|
|
|
60
|
|
|
(157
|
)
|
|
(97
|
)
|
|||||||
(Loss) income before income tax (benefit) expense
|
$
|
(312
|
)
|
|
$
|
341
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
(301
|
)
|
|
$
|
(243
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
37
|
|
|
$
|
30
|
|
|
$
|
67
|
|
Total assets
|
$
|
12,049
|
|
|
$
|
8,450
|
|
|
$
|
515
|
|
|
$
|
(4,650
|
)
|
|
$
|
16,364
|
|
|
$
|
2,114
|
|
|
$
|
18,478
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
Seven Months Ended July 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
740
|
|
|
$
|
36
|
|
|
$
|
149
|
|
|
$
|
(25
|
)
|
|
$
|
900
|
|
|
$
|
1
|
|
|
$
|
901
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
270
|
|
|
—
|
|
|
25
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|||||||
Total revenues
|
740
|
|
|
306
|
|
|
149
|
|
|
—
|
|
|
1,195
|
|
|
1
|
|
|
1,196
|
|
|||||||
Total Expenses
|
474
|
|
|
245
|
|
|
123
|
|
|
—
|
|
|
842
|
|
|
103
|
|
|
945
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
288
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
326
|
|
|
7
|
|
|
333
|
|
|||||||
Interest expense
|
(268
|
)
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
|
(83
|
)
|
|
(388
|
)
|
|||||||
Other
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total Other Income (Expenses), Net
|
19
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
29
|
|
|
(78
|
)
|
|
(49
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
285
|
|
|
$
|
62
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
(180
|
)
|
|
$
|
202
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
15
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
29
|
|
|
$
|
4
|
|
|
$
|
33
|
|
Total assets
|
$
|
14,578
|
|
|
$
|
4,701
|
|
|
$
|
425
|
|
|
$
|
(3,591
|
)
|
|
$
|
16,113
|
|
|
$
|
913
|
|
|
$
|
17,026
|
|
(1)
|
For Servicing segment results purposes, all revenue is attributable to servicing portfolio. Therefore, $37, $7, $3, $90, and $25 of net gain on mortgage loans is moved to service related, net during the three months ended September 30, 2019, two months ended September 30, 2018, one month ended July 31, 2018, nine months ended September 30, 2019, and seven months ended July 31, 2018, respectively. For consolidated results purposes, these amounts were reclassed back to net gain on mortgage loans held for sale.
|
(1)
|
Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes.
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
SEPTEMBER 30, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
331
|
|
|
$
|
1
|
|
|
$
|
39
|
|
|
$
|
—
|
|
|
$
|
371
|
|
Restricted cash
|
—
|
|
|
155
|
|
|
—
|
|
|
116
|
|
|
—
|
|
|
271
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,322
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
3,346
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
966
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
967
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
5,733
|
|
|
—
|
|
|
929
|
|
|
—
|
|
|
6,662
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
4,267
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,267
|
|
||||||
Property and equipment, net
|
—
|
|
|
94
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
113
|
|
||||||
Deferred tax asset, net
|
984
|
|
|
46
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1,032
|
|
||||||
Other assets
|
—
|
|
|
1,317
|
|
|
213
|
|
|
814
|
|
|
(895
|
)
|
|
1,449
|
|
||||||
Investment in subsidiaries
|
2,612
|
|
|
682
|
|
|
—
|
|
|
—
|
|
|
(3,294
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
3,596
|
|
|
$
|
16,913
|
|
|
$
|
214
|
|
|
$
|
1,944
|
|
|
$
|
(4,189
|
)
|
|
$
|
18,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
1,665
|
|
|
$
|
799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,464
|
|
Advance facilities, net
|
—
|
|
|
64
|
|
|
—
|
|
|
449
|
|
|
—
|
|
|
513
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
4,802
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,802
|
|
||||||
Payables and other liabilities
|
23
|
|
|
1,905
|
|
|
2
|
|
|
72
|
|
|
—
|
|
|
2,002
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,313
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
1,328
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
69
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
4,596
|
|
|
—
|
|
|
937
|
|
|
—
|
|
|
5,533
|
|
||||||
Payables to affiliates
|
141
|
|
|
753
|
|
|
—
|
|
|
1
|
|
|
(895
|
)
|
|
—
|
|
||||||
Total liabilities
|
1,829
|
|
|
14,301
|
|
|
2
|
|
|
1,474
|
|
|
(895
|
)
|
|
16,711
|
|
||||||
Total stockholders’ equity
|
1,767
|
|
|
2,612
|
|
|
212
|
|
|
470
|
|
|
(3,294
|
)
|
|
1,767
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,596
|
|
|
$
|
16,913
|
|
|
$
|
214
|
|
|
$
|
1,944
|
|
|
$
|
(4,189
|
)
|
|
$
|
18,478
|
|
(1)
|
Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
137
|
|
|
$
|
5
|
|
|
$
|
116
|
|
|
$
|
—
|
|
|
$
|
258
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
349
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
360
|
|
||||||
Total revenues
|
—
|
|
|
486
|
|
|
5
|
|
|
127
|
|
|
—
|
|
|
618
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
209
|
|
|
1
|
|
|
40
|
|
|
—
|
|
|
250
|
|
||||||
General and administrative
|
—
|
|
|
185
|
|
|
—
|
|
|
43
|
|
|
—
|
|
|
228
|
|
||||||
Total expenses
|
—
|
|
|
394
|
|
|
1
|
|
|
83
|
|
|
—
|
|
|
478
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
127
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
163
|
|
||||||
Interest expense
|
(37
|
)
|
|
(143
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(196
|
)
|
||||||
Other income (expenses)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
||||||
Gain (loss) from subsidiaries
|
121
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
84
|
|
|
52
|
|
|
—
|
|
|
23
|
|
|
(192
|
)
|
|
(33
|
)
|
||||||
Income (loss) before income tax benefit
|
84
|
|
|
144
|
|
|
4
|
|
|
67
|
|
|
(192
|
)
|
|
107
|
|
||||||
Less: Income tax expense
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Net income (loss)
|
84
|
|
|
120
|
|
|
4
|
|
|
67
|
|
|
(192
|
)
|
|
83
|
|
||||||
Less: Net loss attributable to non-controlling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net income (loss) attributable to Mr. Cooper
|
$
|
84
|
|
|
$
|
121
|
|
|
$
|
4
|
|
|
$
|
67
|
|
|
$
|
(192
|
)
|
|
$
|
84
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
139
|
|
|
$
|
16
|
|
|
$
|
324
|
|
|
$
|
—
|
|
|
$
|
479
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
777
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
788
|
|
||||||
Total revenues
|
—
|
|
|
916
|
|
|
16
|
|
|
335
|
|
|
—
|
|
|
1,267
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
581
|
|
|
3
|
|
|
119
|
|
|
—
|
|
|
703
|
|
||||||
General and administrative
|
—
|
|
|
529
|
|
|
2
|
|
|
179
|
|
|
—
|
|
|
710
|
|
||||||
Total expenses
|
—
|
|
|
1,110
|
|
|
5
|
|
|
298
|
|
|
—
|
|
|
1,413
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
392
|
|
|
—
|
|
|
67
|
|
|
—
|
|
|
459
|
|
||||||
Interest expense
|
(114
|
)
|
|
(411
|
)
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
(572
|
)
|
||||||
Other income (expenses)
|
—
|
|
|
2
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
16
|
|
||||||
(Loss) gain from subsidiaries
|
(75
|
)
|
|
82
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
(189
|
)
|
|
65
|
|
|
—
|
|
|
34
|
|
|
(7
|
)
|
|
(97
|
)
|
||||||
(Loss) income before income tax benefit
|
(189
|
)
|
|
(129
|
)
|
|
11
|
|
|
71
|
|
|
(7
|
)
|
|
(243
|
)
|
||||||
Less: Income tax benefit
|
—
|
|
|
(52
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52
|
)
|
||||||
Net (loss) income
|
(189
|
)
|
|
(77
|
)
|
|
11
|
|
|
71
|
|
|
(7
|
)
|
|
(191
|
)
|
||||||
Less: Net loss attributable to non-controlling interests
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Net (loss) income attributable to Mr. Cooper
|
$
|
(189
|
)
|
|
$
|
(75
|
)
|
|
$
|
11
|
|
|
$
|
71
|
|
|
$
|
(7
|
)
|
|
$
|
(189
|
)
|
(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
NINE MONTHS ENDED SEPTEMBER 30, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to Mr. Cooper
|
$
|
(189
|
)
|
|
$
|
(75
|
)
|
|
$
|
11
|
|
|
$
|
71
|
|
|
$
|
(7
|
)
|
|
$
|
(189
|
)
|
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred tax benefit
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
||||||
Net loss attributable to non-controlling interests
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Loss (gain) from subsidiaries
|
75
|
|
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(777
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(788
|
)
|
||||||
Interest income on reverse mortgage loans
|
—
|
|
|
(208
|
)
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(241
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
53
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
990
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
998
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
(186
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(190
|
)
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||
Fair value changes in mortgage loans held for investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
5
|
|
|
(21
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
|
(38
|
)
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
55
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
67
|
|
||||||
Share-based compensation
|
—
|
|
|
11
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
14
|
|
||||||
Other loss
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(1,823
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,823
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(27,685
|
)
|
|
—
|
|
|
12
|
|
|
—
|
|
|
(27,673
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
27,777
|
|
|
—
|
|
|
139
|
|
|
—
|
|
|
27,916
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
266
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
265
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
1,515
|
|
|
—
|
|
|
185
|
|
|
—
|
|
|
1,700
|
|
||||||
Other assets
|
—
|
|
|
141
|
|
|
(12
|
)
|
|
(121
|
)
|
|
—
|
|
|
8
|
|
||||||
Payables and other liabilities
|
109
|
|
|
(164
|
)
|
|
1
|
|
|
(15
|
)
|
|
—
|
|
|
(69
|
)
|
||||||
Net cash attributable to operating activities
|
—
|
|
|
(248
|
)
|
|
—
|
|
|
220
|
|
|
—
|
|
|
(28
|
)
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
(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, 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 at fair value
|
—
|
|
|
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 other 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
TWO MONTHS ENDED SEPTEMBER 30, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
183
|
|
|
$
|
4
|
|
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
259
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
||||||
Total revenues
|
—
|
|
|
266
|
|
|
4
|
|
|
72
|
|
|
—
|
|
|
342
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
107
|
|
|
1
|
|
|
31
|
|
|
—
|
|
|
139
|
|
||||||
General and administrative
|
1
|
|
|
91
|
|
|
1
|
|
|
43
|
|
|
—
|
|
|
136
|
|
||||||
Total expenses
|
1
|
|
|
198
|
|
|
2
|
|
|
74
|
|
|
—
|
|
|
275
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
80
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
90
|
|
||||||
Interest expense
|
(26
|
)
|
|
(87
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(122
|
)
|
||||||
Other income
|
1
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
56
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
31
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
(57
|
)
|
|
(26
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
30
|
|
|
67
|
|
|
2
|
|
|
(1
|
)
|
|
(57
|
)
|
|
41
|
|
||||||
Less: Income tax (benefit) expense
|
(990
|
)
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(979
|
)
|
||||||
Net income (loss)
|
1,020
|
|
|
56
|
|
|
2
|
|
|
(1
|
)
|
|
(57
|
)
|
|
1,020
|
|
||||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
1,020
|
|
|
$
|
56
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(57
|
)
|
|
$
|
1,020
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
ONE MONTH ENDED JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
95
|
|
|
$
|
3
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
44
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Total revenues
|
—
|
|
|
139
|
|
|
3
|
|
|
22
|
|
|
—
|
|
|
164
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
59
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
69
|
|
||||||
General and administrative
|
27
|
|
|
136
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
173
|
|
||||||
Total expenses
|
27
|
|
|
195
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
242
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
41
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
48
|
|
||||||
Interest expense
|
—
|
|
|
(49
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(53
|
)
|
||||||
Other income (expense)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
(Loss) gain from subsidiaries
|
(37
|
)
|
|
7
|
|
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(37
|
)
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
|
30
|
|
|
(5
|
)
|
||||||
(Loss) income before income tax (benefit) expense
|
(64
|
)
|
|
(57
|
)
|
|
3
|
|
|
5
|
|
|
30
|
|
|
(83
|
)
|
||||||
Less: Income tax (benefit) expense
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(19
|
)
|
||||||
Net loss) income
|
(64
|
)
|
|
(37
|
)
|
|
3
|
|
|
4
|
|
|
30
|
|
|
(64
|
)
|
||||||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net (loss) income attributable to Nationstar
|
$
|
(64
|
)
|
|
$
|
(37
|
)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
30
|
|
|
$
|
(64
|
)
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
SEVEN MONTHS ENDED 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 and benefits
|
—
|
|
|
359
|
|
|
3
|
|
|
64
|
|
|
—
|
|
|
426
|
|
||||||
General and administrative
|
27
|
|
|
427
|
|
|
1
|
|
|
64
|
|
|
—
|
|
|
519
|
|
||||||
Total expenses
|
27
|
|
|
786
|
|
|
4
|
|
|
128
|
|
|
—
|
|
|
945
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
299
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
333
|
|
||||||
Interest expense
|
—
|
|
|
(364
|
)
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
(388
|
)
|
||||||
Other income (expense)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
181
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
181
|
|
|
(12
|
)
|
|
—
|
|
|
19
|
|
|
(237
|
)
|
|
(49
|
)
|
||||||
Income (loss) before income tax expense
|
154
|
|
|
229
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
202
|
|
||||||
Less: Income tax expense
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Net income (loss)
|
154
|
|
|
181
|
|
|
12
|
|
|
44
|
|
|
(237
|
)
|
|
154
|
|
||||||
Less: Net income (loss) 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
TWO MONTHS ENDED SEPTEMBER 30, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Mr. Cooper
|
$
|
1,020
|
|
|
$
|
56
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
$
|
(57
|
)
|
|
$
|
1,020
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income tax (benefit) expense
|
(990
|
)
|
|
52
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(931
|
)
|
||||||
Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
(Gain) loss from subsidiaries
|
(56
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(83
|
)
|
||||||
Interest income on reverse mortgage loans
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
26
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
||||||
Amortization of premiums, net of discount accretion
|
1
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
13
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
15
|
|
||||||
Share-based compensation
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(223
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(223
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(3,458
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,458
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
3,537
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
3,546
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables
|
—
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
76
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
425
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
442
|
|
||||||
Other assets
|
—
|
|
|
25
|
|
|
(3
|
)
|
|
(37
|
)
|
|
—
|
|
|
(15
|
)
|
||||||
Payables and other liabilities
|
19
|
|
|
(179
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(159
|
)
|
||||||
Net cash attributable to operating activities
|
(6
|
)
|
|
185
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
176
|
|
(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
TWO MONTHS ENDED SEPTEMBER 30, 2018
(Continued)
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisition, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(33
|
)
|
||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
6
|
|
|
—
|
|
|
(14
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
60
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(50
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
—
|
|
|
186
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
186
|
|
||||||
(Decrease) increase in advance facilities
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
63
|
|
|
—
|
|
|
46
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
—
|
|
|
(91
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
45
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(403
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
84
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
84
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Redemption and repayment of unsecured senior notes
|
—
|
|
|
(1,030
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,030
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
—
|
|
|
(1,188
|
)
|
|
—
|
|
|
(31
|
)
|
|
—
|
|
|
(1,219
|
)
|
||||||
Net decrease in cash, cash equivalents, and restricted cash
|
(6
|
)
|
|
(1,026
|
)
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(1,093
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
11
|
|
|
1,358
|
|
|
1
|
|
|
253
|
|
|
—
|
|
|
1,623
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
5
|
|
|
$
|
332
|
|
|
$
|
1
|
|
|
$
|
192
|
|
|
$
|
—
|
|
|
$
|
530
|
|
(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
SEVEN MONTHS ENDED JULY 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
154
|
|
|
$
|
181
|
|
|
$
|
12
|
|
|
$
|
44
|
|
|
$
|
(237
|
)
|
|
$
|
154
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain) loss from subsidiaries
|
(181
|
)
|
|
(56
|
)
|
|
—
|
|
|
—
|
|
|
237
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
||||||
Interest income on reverse mortgage loans
|
—
|
|
|
(274
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(274
|
)
|
||||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
MSL related increased obligations
|
—
|
|
|
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
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
13,381
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13,392
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
377
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
377
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
1,866
|
|
|
—
|
|
|
(265
|
)
|
|
—
|
|
|
1,601
|
|
||||||
Other assets
|
9
|
|
|
(293
|
)
|
|
(12
|
)
|
|
255
|
|
|
—
|
|
|
(41
|
)
|
||||||
Payables and other liabilities
|
27
|
|
|
128
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
151
|
|
||||||
Net cash attributable to operating activities
|
9
|
|
|
2,247
|
|
|
—
|
|
|
38
|
|
|
—
|
|
|
2,294
|
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SEVEN MONTHS ENDED JULY 31, 2018
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(35
|
)
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(40
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(127
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(134
|
)
|
||||||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(163
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(162
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Decrease in warehouse facilities
|
—
|
|
|
(585
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(585
|
)
|
||||||
Decrease in advance facilities
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(305
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
759
|
|
|
—
|
|
|
759
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(448
|
)
|
|
—
|
|
|
(448
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
208
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(1,599
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,599
|
)
|
||||||
Proceeds from issuance of excess spread financing
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(105
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
(9
|
)
|
|
(2,156
|
)
|
|
—
|
|
|
54
|
|
|
—
|
|
|
(2,111
|
)
|
||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash
|
—
|
|
|
(72
|
)
|
|
—
|
|
|
93
|
|
|
—
|
|
|
21
|
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
—
|
|
|
423
|
|
|
1
|
|
|
151
|
|
|
—
|
|
|
575
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
—
|
|
|
$
|
351
|
|
|
$
|
1
|
|
|
$
|
244
|
|
|
$
|
—
|
|
|
$
|
596
|
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to maintain or grow our originations volume and profitability;
|
•
|
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 our acquisitions, including Pacific Union, AMS, and Seterus;
|
•
|
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.
|
Overview
|
•
|
Complete Project Titan, our servicing transformation initiative, which consists of a series of interrelated technology initiatives designed to streamline processes, improve customer and team member experiences, and drive efficiency;
|
•
|
Identify additional opportunities throughout the organization to drive greater efficiency;
|
•
|
Strengthen our balance sheet and reduce leverage;
|
•
|
Manage the interest rate risk associated with holding MSRs on balance sheet by providing existing customers with attractive refinance options, growing the size and improving the profitability of our Originations segment (whose results are typically counter-cyclical to those of the Servicing segment), expanding the size of our subservicing portfolio through value-added partnerships with MSR owners, and by utilizing excess spread facilities to pass through a portion of the interest rate risk to capital partners; and
|
•
|
Maintain strong relationships with agencies, investors, regulators, and other counterparties and a strong reputation for compliance and customer service.
|
Table 1. Consolidated Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues - operational
|
$
|
701
|
|
|
$
|
318
|
|
|
|
$
|
139
|
|
|
$
|
457
|
|
|
$
|
244
|
|
|
53
|
%
|
Revenues - Mark-to-market
|
(83
|
)
|
|
24
|
|
|
|
25
|
|
|
49
|
|
|
(132
|
)
|
|
(269
|
)%
|
|||||
Total revenues
|
618
|
|
|
342
|
|
|
|
164
|
|
|
506
|
|
|
112
|
|
|
22
|
%
|
|||||
Expenses
|
478
|
|
|
275
|
|
|
|
242
|
|
|
517
|
|
|
(39
|
)
|
|
(8
|
)%
|
|||||
Other income (expenses), net
|
(33
|
)
|
|
(26
|
)
|
|
|
(5
|
)
|
|
(31
|
)
|
|
(2
|
)
|
|
6
|
%
|
|||||
Income (loss) before income tax expense (benefit)
|
107
|
|
|
41
|
|
|
|
(83
|
)
|
|
(42
|
)
|
|
149
|
|
|
(355
|
)%
|
|||||
Less: Income tax expense (benefit)
|
24
|
|
|
(979
|
)
|
|
|
(19
|
)
|
|
(998
|
)
|
|
1,022
|
|
|
(102
|
)%
|
|||||
Net income (loss)
|
83
|
|
|
1,020
|
|
|
|
(64
|
)
|
|
956
|
|
|
(873
|
)
|
|
(91
|
)%
|
|||||
Less: Net loss attributable to non-controlling interests
|
(1
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(100
|
)%
|
|||||
Net income (loss) attributable to Successor/Predecessor
|
$
|
84
|
|
|
$
|
1,020
|
|
|
|
$
|
(64
|
)
|
|
$
|
956
|
|
|
$
|
(872
|
)
|
|
(91
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 1.1 Consolidated Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues - operational
|
$
|
1,874
|
|
|
$
|
318
|
|
|
|
$
|
1,000
|
|
|
$
|
1,318
|
|
|
$
|
556
|
|
|
42
|
%
|
Revenues - Mark-to-market
|
(607
|
)
|
|
24
|
|
|
|
196
|
|
|
220
|
|
|
(827
|
)
|
|
(376
|
)%
|
|||||
Total revenues
|
1,267
|
|
|
342
|
|
|
|
1,196
|
|
|
1,538
|
|
|
(271
|
)
|
|
(18
|
)%
|
|||||
Expenses
|
1,413
|
|
|
275
|
|
|
|
945
|
|
|
1,220
|
|
|
193
|
|
|
16
|
%
|
|||||
Other income (expenses), net
|
(97
|
)
|
|
(26
|
)
|
|
|
(49
|
)
|
|
(75
|
)
|
|
(22
|
)
|
|
29
|
%
|
|||||
(Loss) income before income tax (benefit) expense
|
(243
|
)
|
|
41
|
|
|
|
202
|
|
|
243
|
|
|
(486
|
)
|
|
(200
|
)%
|
|||||
Less: Income tax (benefit) expense
|
(52
|
)
|
|
(979
|
)
|
|
|
48
|
|
|
(931
|
)
|
|
879
|
|
|
(94
|
)%
|
|||||
Net (loss) income
|
(191
|
)
|
|
1,020
|
|
|
|
154
|
|
|
1,174
|
|
|
(1,365
|
)
|
|
(116
|
)%
|
|||||
Less: Net (loss) income attributable to non-controlling interests
|
(2
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)%
|
|||||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(189
|
)
|
|
$
|
1,020
|
|
|
|
$
|
154
|
|
|
$
|
1,174
|
|
|
$
|
(1,363
|
)
|
|
(116
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 2. Provision for Income Taxes
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Income tax expense (benefit)
|
$
|
24
|
|
|
$
|
(979
|
)
|
|
|
$
|
(19
|
)
|
|
$
|
(998
|
)
|
|
$
|
1,022
|
|
|
(102
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effective tax rate(2)
|
22.3
|
%
|
|
(2,377.1
|
)%
|
|
|
23.1
|
%
|
|
|
|
|
|
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
(2)
|
Effective tax rate is calculated using whole numbers.
|
Table 2.1. Provision for Income Taxes
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Income tax (benefit) expense
|
$
|
(52
|
)
|
|
$
|
(979
|
)
|
|
|
$
|
48
|
|
|
$
|
(931
|
)
|
|
$
|
879
|
|
|
(94
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effective tax rate(2)
|
21.5
|
%
|
|
(2,377.1
|
)%
|
|
|
23.8
|
%
|
|
|
|
|
|
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
(2)
|
Effective tax rate is calculated using whole numbers.
|
Segment Results
|
•
|
The Servicing segment performs operational activities on behalf of investors or owners of the underlying mortgages, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO.
|
•
|
The Originations segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent and wholesale channels which purchase or originate loans from mortgage bankers and brokers.
|
•
|
The Xome segment provides a variety of real estate services to mortgage originators, mortgage and real estate investors, and mortgage servicers, including valuation, title, and field services, operates an exchange which facilitates the sale of foreclosed properties, and contains a subsidiary which sells data and technology solutions.
|
•
|
The Corporate/Other segment represents unallocated overhead expenses, including the costs of executive management and other corporate functions that are not directly attributable to our operating segments, our senior unsecured notes, and the results of a legacy mortgage investment portfolio.
|
Table 3. Segment Results
|
|
Successor
|
||||||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/
Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
163
|
|
|
$
|
22
|
|
|
$
|
112
|
|
|
$
|
(39
|
)
|
|
$
|
258
|
|
|
$
|
—
|
|
|
$
|
258
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
312
|
|
|
—
|
|
|
37
|
|
|
349
|
|
|
11
|
|
|
360
|
|
|||||||
Total revenues
|
163
|
|
|
334
|
|
|
112
|
|
|
(2
|
)
|
|
607
|
|
|
11
|
|
|
618
|
|
|||||||
Total Expenses
|
171
|
|
|
155
|
|
|
101
|
|
|
(2
|
)
|
|
425
|
|
|
53
|
|
|
478
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
137
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
161
|
|
|
2
|
|
|
163
|
|
|||||||
Interest expense
|
(120
|
)
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
|
(52
|
)
|
|
(196
|
)
|
|||||||
Other
|
—
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Total Other Income (Expenses), Net
|
17
|
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
19
|
|
|
(52
|
)
|
|
(33
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
9
|
|
|
$
|
178
|
|
|
$
|
14
|
|
|
$
|
—
|
|
|
$
|
201
|
|
|
$
|
(94
|
)
|
|
$
|
107
|
|
|
Successor
|
||||||||||||||||||||||||||
|
Two Months Ended September 30, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/
Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
183
|
|
|
$
|
10
|
|
|
$
|
73
|
|
|
$
|
(7
|
)
|
|
$
|
259
|
|
|
$
|
—
|
|
|
$
|
259
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
76
|
|
|
—
|
|
|
7
|
|
|
83
|
|
|
—
|
|
|
83
|
|
|||||||
Total revenues
|
183
|
|
|
86
|
|
|
73
|
|
|
—
|
|
|
342
|
|
|
—
|
|
|
342
|
|
|||||||
Total Expenses
|
104
|
|
|
66
|
|
|
71
|
|
|
—
|
|
|
241
|
|
|
34
|
|
|
275
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
78
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
88
|
|
|
2
|
|
|
90
|
|
|||||||
Interest expense
|
(74
|
)
|
|
(10
|
)
|
|
(1
|
)
|
|
—
|
|
|
(85
|
)
|
|
(37
|
)
|
|
(122
|
)
|
|||||||
Other
|
5
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
6
|
|
|||||||
Total Other Income (Expenses), Net
|
9
|
|
|
1
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
(35
|
)
|
|
(26
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
88
|
|
|
$
|
21
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
110
|
|
|
$
|
(69
|
)
|
|
$
|
41
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
One Month Ended July 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/ Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
97
|
|
|
$
|
4
|
|
|
$
|
22
|
|
|
$
|
(3
|
)
|
|
$
|
120
|
|
|
$
|
—
|
|
|
$
|
120
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
41
|
|
|
—
|
|
|
3
|
|
|
44
|
|
|
—
|
|
|
44
|
|
|||||||
Total revenues
|
97
|
|
|
45
|
|
|
22
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
|||||||
Total Expenses
|
126
|
|
|
34
|
|
|
19
|
|
|
—
|
|
|
179
|
|
|
63
|
|
|
242
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
41
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
47
|
|
|
1
|
|
|
48
|
|
|||||||
Interest expense
|
(35
|
)
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
(12
|
)
|
|
(53
|
)
|
|||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total Other Income (Expenses), Net
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(11
|
)
|
|
(5
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
(23
|
)
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
$
|
(74
|
)
|
|
$
|
(83
|
)
|
Table 3.1 Segment Results
|
|
Successor
|
||||||||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/
Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
198
|
|
|
$
|
57
|
|
|
$
|
316
|
|
|
$
|
(92
|
)
|
|
$
|
479
|
|
|
$
|
—
|
|
|
$
|
479
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
687
|
|
|
—
|
|
|
90
|
|
|
777
|
|
|
11
|
|
|
788
|
|
|||||||
Total revenues
|
198
|
|
|
744
|
|
|
316
|
|
|
(2
|
)
|
|
1,256
|
|
|
11
|
|
|
1,267
|
|
|||||||
Total Expenses
|
555
|
|
|
404
|
|
|
301
|
|
|
(2
|
)
|
|
1,258
|
|
|
155
|
|
|
1,413
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
388
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
452
|
|
|
7
|
|
|
459
|
|
|||||||
Interest expense
|
(343
|
)
|
|
(67
|
)
|
|
—
|
|
|
—
|
|
|
(410
|
)
|
|
(162
|
)
|
|
(572
|
)
|
|||||||
Other
|
—
|
|
|
4
|
|
|
14
|
|
|
—
|
|
|
18
|
|
|
(2
|
)
|
|
16
|
|
|||||||
Total Other Income (Expenses), Net
|
45
|
|
|
1
|
|
|
14
|
|
|
—
|
|
|
60
|
|
|
(157
|
)
|
|
(97
|
)
|
|||||||
(Loss) income before income tax (benefit) expense
|
$
|
(312
|
)
|
|
$
|
341
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
58
|
|
|
$
|
(301
|
)
|
|
$
|
(243
|
)
|
|
Predecessor
|
||||||||||||||||||||||||||
|
Seven Months Ended July 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Elimination/
Reclassification(1)
|
|
Total Operating Segments
|
|
Corporate/Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
740
|
|
|
$
|
36
|
|
|
$
|
149
|
|
|
$
|
(25
|
)
|
|
$
|
900
|
|
|
$
|
1
|
|
|
$
|
901
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
270
|
|
|
—
|
|
|
25
|
|
|
295
|
|
|
—
|
|
|
295
|
|
|||||||
Total revenues
|
740
|
|
|
306
|
|
|
149
|
|
|
—
|
|
|
1,195
|
|
|
1
|
|
|
1,196
|
|
|||||||
Total Expenses
|
474
|
|
|
245
|
|
|
123
|
|
|
—
|
|
|
842
|
|
|
103
|
|
|
945
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
288
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
326
|
|
|
7
|
|
|
333
|
|
|||||||
Interest expense
|
(268
|
)
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(305
|
)
|
|
(83
|
)
|
|
(388
|
)
|
|||||||
Other
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total Other Income (Expenses), Net
|
19
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
29
|
|
|
(78
|
)
|
|
(49
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
285
|
|
|
$
|
62
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
382
|
|
|
$
|
(180
|
)
|
|
$
|
202
|
|
(1)
|
For Servicing segment results purposes, all revenue is attributable to servicing the portfolio. Therefore, $37, $7, $3, $90, and $25 of net gain on mortgage loans is moved to service related, net during the three months ended September 30, 2019, two months ended September 30, 2018, one month ended July 31, 2018, nine months ended September 30, 2019, and seven months ended July 31, 2018, respectively. For consolidated results purposes, these amounts were reclassed to net gain on mortgage loans held for sale.
|
Servicing Segment
|
Table 4. Servicer Ratings
|
|
Successor
|
||||
|
Fitch(1)
|
|
Moody’s(2)
|
|
S&P(3)
|
Rating date
|
November 2018
|
|
May 2019
|
|
May 2019
|
|
|
|
|
|
|
Residential
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
Master Servicer
|
RMS2+
|
|
SQ2
|
|
Above Average
|
Special Servicer
|
RSS2-
|
|
Not Rated
|
|
Above Average
|
Subprime Servicer
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
(1)
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
(2)
|
Moody’s Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)
|
(3)
|
S&P’s Rating Scale of Strong to Weak
|
•
|
The term “forward” refers to loans we service which are not “reverse mortgages,” as discussed below.
|
•
|
Our subservicing portfolio consists of loans where we perform the servicing responsibilities for a contractual fee, but do not own the servicing rights and therefore do not hold an MSR on balance sheet.
|
•
|
Reverse mortgage loans, known as HECMs, provide seniors 62 and older with a loan upon which draws can be made periodically. The draws are secured by the equity in the borrower’s home. We acquired portfolios of reverse mortgages in prior years, and our portfolio of reverse mortgages is now in run-off mode. For reverse mortgages, we hold MSRs on balance sheet, similar to the accounting for forward mortgages, except in cases where the costs of servicing are expected to exceed revenues, in which case a Mortgage Servicing Liability (“MSL”) is created. Additionally, we consolidate certain reverse mortgages on our balance sheet and accrue interest income and expense.
|
Table 5. Servicing Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational
|
$
|
319
|
|
|
$
|
190
|
|
|
|
$
|
88
|
|
|
$
|
278
|
|
|
$
|
41
|
|
|
15
|
%
|
Amortization, net of accretion
|
(73
|
)
|
|
(31
|
)
|
|
|
(16
|
)
|
|
(47
|
)
|
|
(26
|
)
|
|
55
|
%
|
|||||
Mark-to-market
|
(83
|
)
|
|
24
|
|
|
|
25
|
|
|
49
|
|
|
(132
|
)
|
|
(269
|
)%
|
|||||
Total revenues
|
163
|
|
|
183
|
|
|
|
97
|
|
|
280
|
|
|
(117
|
)
|
|
(42
|
)%
|
|||||
Expenses
|
171
|
|
|
104
|
|
|
|
126
|
|
|
230
|
|
|
(59
|
)
|
|
(26
|
)%
|
|||||
Total other income (expenses), net
|
17
|
|
|
9
|
|
|
|
6
|
|
|
15
|
|
|
2
|
|
|
13
|
%
|
|||||
Income (loss) before income tax expense (benefit)
|
$
|
9
|
|
|
$
|
88
|
|
|
|
$
|
(23
|
)
|
|
$
|
65
|
|
|
$
|
(56
|
)
|
|
(86
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 5.1. Servicing Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational
|
$
|
957
|
|
|
$
|
190
|
|
|
|
$
|
656
|
|
|
$
|
846
|
|
|
$
|
111
|
|
|
13
|
%
|
Amortization, net of accretion
|
(152
|
)
|
|
(31
|
)
|
|
|
(112
|
)
|
|
(143
|
)
|
|
(9
|
)
|
|
6
|
%
|
|||||
Mark-to-market
|
(607
|
)
|
|
24
|
|
|
|
196
|
|
|
220
|
|
|
(827
|
)
|
|
(376
|
)%
|
|||||
Total revenues
|
198
|
|
|
183
|
|
|
|
740
|
|
|
923
|
|
|
(725
|
)
|
|
(79
|
)%
|
|||||
Expenses
|
555
|
|
|
104
|
|
|
|
474
|
|
|
578
|
|
|
(23
|
)
|
|
(4
|
)%
|
|||||
Total other income (expenses), net
|
45
|
|
|
9
|
|
|
|
19
|
|
|
28
|
|
|
17
|
|
|
61
|
%
|
|||||
(Loss) income before income tax (benefit) expense
|
$
|
(312
|
)
|
|
$
|
88
|
|
|
|
$
|
285
|
|
|
$
|
373
|
|
|
$
|
(685
|
)
|
|
(184
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 6. Servicing Portfolio - Unpaid Principal Balances
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Average UPB:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forward MSRs
|
$
|
315,897
|
|
|
$
|
313,405
|
|
|
$
|
278,362
|
|
|
|
$
|
279,605
|
|
|
$
|
279,520
|
|
Subservicing and other(1)
|
297,081
|
|
|
278,158
|
|
|
192,163
|
|
|
|
185,871
|
|
|
187,407
|
|
|||||
Reverse portfolio
|
24,301
|
|
|
25,933
|
|
|
30,888
|
|
|
|
31,753
|
|
|
33,380
|
|
|||||
Total average UPB
|
$
|
637,279
|
|
|
$
|
617,496
|
|
|
$
|
501,413
|
|
|
|
$
|
497,229
|
|
|
$
|
500,307
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
||||||||||||
|
|
|
|
|
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||
Ending UPB:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Forward MSRs
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
|
|
|
|
$
|
247,821
|
|
|
$
|
205,201
|
|
||||||
Non-agency
|
|
|
|
|
|
|
|
58,860
|
|
|
69,285
|
|
||||||||
Total Forward MSRs
|
|
|
|
|
|
|
|
306,681
|
|
|
274,486
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
|
|
|
|
|
|
|
294,783
|
|
|
195,489
|
|
||||||||
Non-agency
|
|
|
|
|
|
|
|
15,748
|
|
|
13,617
|
|
||||||||
Total subservicing and other
|
|
|
|
|
|
|
|
310,531
|
|
|
209,106
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
|
|
|
|
|
|
|
2,761
|
|
|
75
|
|
||||||||
MSL
|
|
|
|
|
|
|
|
14,641
|
|
|
21,703
|
|
||||||||
Securitized loans
|
|
|
|
|
|
|
|
6,588
|
|
|
8,882
|
|
||||||||
Total reverse portfolio serviced
|
|
|
|
|
|
|
|
23,990
|
|
|
30,660
|
|
||||||||
Total ending UPB
|
|
|
|
|
|
|
|
$
|
641,202
|
|
|
$
|
514,252
|
|
(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 7. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Balance - beginning of period
|
$
|
618,120
|
|
|
$
|
519,367
|
|
|
$
|
465,819
|
|
|
|
$
|
465,398
|
|
|
$
|
473,256
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Originations
|
11,808
|
|
|
27,023
|
|
|
3,448
|
|
|
|
1,694
|
|
|
12,327
|
|
|||||
Acquisitions
|
33,606
|
|
|
164,204
|
|
|
26,734
|
|
|
|
5,183
|
|
|
25,987
|
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dispositions
|
(12,106
|
)
|
|
(16,271
|
)
|
|
(574
|
)
|
|
|
(84
|
)
|
|
(1,877
|
)
|
|||||
Principal reductions and other
|
(5,626
|
)
|
|
(16,471
|
)
|
|
(3,137
|
)
|
|
|
(1,581
|
)
|
|
(11,240
|
)
|
|||||
Voluntary reductions(1)
|
(27,545
|
)
|
|
(57,595
|
)
|
|
(7,869
|
)
|
|
|
(4,343
|
)
|
|
(29,172
|
)
|
|||||
Involuntary reductions(2)
|
(975
|
)
|
|
(2,826
|
)
|
|
(769
|
)
|
|
|
(418
|
)
|
|
(3,241
|
)
|
|||||
Net changes in loans serviced by others
|
(70
|
)
|
|
(219
|
)
|
|
(60
|
)
|
|
|
(30
|
)
|
|
(221
|
)
|
|||||
Balance - end of period
|
$
|
617,212
|
|
|
$
|
617,212
|
|
|
$
|
483,592
|
|
|
|
$
|
465,819
|
|
|
$
|
465,819
|
|
(1)
|
Voluntary reductions are related to loan payoffs by customers.
|
(2)
|
Involuntary reductions refer to loans liquidated through default.
|
Table 8. Key Performance Metrics - Forward Servicing and Subservicing Portfolio(1)
|
|
Successor
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Loan count
|
3,601,322
|
|
|
3,009,439
|
|
||
Average loan amount(2)
|
$
|
171,389
|
|
|
$
|
159,768
|
|
Average coupon - credit sensitive(3)
|
4.8
|
%
|
|
4.8
|
%
|
||
Average coupon - interest sensitive(3)
|
4.2
|
%
|
|
4.2
|
%
|
||
60+ delinquent (% of loans)(4)
|
2.2
|
%
|
|
2.5
|
%
|
||
90+ delinquent (% of loans)(4)
|
1.9
|
%
|
|
2.1
|
%
|
||
120+ delinquent (% of loans)(4)
|
1.6
|
%
|
|
1.9
|
%
|
||
Total prepayment speed (12-month constant prepayment rate)
|
17.5
|
%
|
|
11.1
|
%
|
(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)
|
Average 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 9. Forward Loan Modifications and Workout Units
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
Amount Change
|
|
% Change
|
||||||
HAMP modifications
|
1
|
|
|
3
|
|
|
|
7
|
|
|
10
|
|
|
(9
|
)
|
|
(90
|
)%
|
Non-HAMP modifications
|
5,060
|
|
|
6,730
|
|
|
|
3,446
|
|
|
10,176
|
|
|
(5,116
|
)
|
|
(50
|
)%
|
Workouts
|
3,731
|
|
|
2,813
|
|
|
|
1,449
|
|
|
4,262
|
|
|
(531
|
)
|
|
(12
|
)%
|
Total modification and workout units
|
8,792
|
|
|
9,546
|
|
|
|
4,902
|
|
|
14,448
|
|
|
(5,656
|
)
|
|
(39
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 9.1 Forward Loan Modifications and Workout Units
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
Amount Change
|
|
% Change
|
||||||
HAMP modifications
|
10
|
|
|
3
|
|
|
|
38
|
|
|
41
|
|
|
(31
|
)
|
|
(76
|
)%
|
Non-HAMP modifications
|
15,872
|
|
|
6,730
|
|
|
|
16,828
|
|
|
23,558
|
|
|
(7,686
|
)
|
|
(33
|
)%
|
Workouts
|
15,132
|
|
|
2,813
|
|
|
|
22,700
|
|
|
25,513
|
|
|
(10,381
|
)
|
|
(41
|
)%
|
Total modification and workout units
|
31,014
|
|
|
9,546
|
|
|
|
39,566
|
|
|
49,112
|
|
|
(18,098
|
)
|
|
(37
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 10. Servicing - Revenues
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ 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
|
$
|
252
|
|
|
16
|
|
|
$
|
142
|
|
|
17
|
|
|
|
$
|
68
|
|
|
16
|
|
|
$
|
210
|
|
|
17
|
|
|
$
|
42
|
|
|
(1
|
)
|
|
20
|
%
|
|
(6
|
)%
|
Modification fees(3)
|
4
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
1
|
|
|
—
|
|
|
6
|
|
|
1
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(33
|
)%
|
|
(100
|
)%
|
|||||
Incentive fees(3)
|
6
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
2
|
|
|
1
|
|
|
4
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
50
|
%
|
|
—
|
%
|
|||||
Late payment fees(3)
|
23
|
|
|
2
|
|
|
11
|
|
|
1
|
|
|
|
6
|
|
|
2
|
|
|
17
|
|
|
1
|
|
|
6
|
|
|
1
|
|
|
35
|
%
|
|
100
|
%
|
|||||
Other ancillary revenues(3)
|
48
|
|
|
3
|
|
|
16
|
|
|
2
|
|
|
|
10
|
|
|
2
|
|
|
26
|
|
|
2
|
|
|
22
|
|
|
1
|
|
|
85
|
%
|
|
50
|
%
|
|||||
Total forward MSR operational revenue
|
333
|
|
|
21
|
|
|
176
|
|
|
21
|
|
|
|
87
|
|
|
21
|
|
|
263
|
|
|
21
|
|
|
70
|
|
|
—
|
|
|
27
|
%
|
|
—
|
%
|
|||||
Base subservicing fees and other subservicing revenue(3)
|
65
|
|
|
4
|
|
|
27
|
|
|
4
|
|
|
|
13
|
|
|
3
|
|
|
40
|
|
|
3
|
|
|
25
|
|
|
1
|
|
|
63
|
%
|
|
33
|
%
|
|||||
Reverse servicing fees
|
7
|
|
|
—
|
|
|
13
|
|
|
2
|
|
|
|
4
|
|
|
1
|
|
|
17
|
|
|
1
|
|
|
(10
|
)
|
|
(1
|
)
|
|
(59
|
)%
|
|
(100
|
)%
|
|||||
Total servicing fee revenue
|
405
|
|
|
25
|
|
|
216
|
|
|
27
|
|
|
|
104
|
|
|
25
|
|
|
320
|
|
|
25
|
|
|
85
|
|
|
—
|
|
|
27
|
%
|
|
—
|
%
|
|||||
MSR financing liability costs
|
(9
|
)
|
|
—
|
|
|
(8
|
)
|
|
(1
|
)
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(12
|
)
|
|
(1
|
)
|
|
3
|
|
|
1
|
|
|
(25
|
)%
|
|
100
|
%
|
|||||
Excess spread costs - principal
|
(77
|
)
|
|
(5
|
)
|
|
(18
|
)
|
|
(2
|
)
|
|
|
(12
|
)
|
|
(3
|
)
|
|
(30
|
)
|
|
(2
|
)
|
|
(47
|
)
|
|
(3
|
)
|
|
157
|
%
|
|
150
|
%
|
|||||
Total operational revenue
|
319
|
|
|
20
|
|
|
190
|
|
|
24
|
|
|
|
88
|
|
|
21
|
|
|
278
|
|
|
22
|
|
|
41
|
|
|
(2
|
)
|
|
15
|
%
|
|
(9
|
)%
|
|||||
Amortization, net of accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Forward MSR amortization
|
(162
|
)
|
|
(10
|
)
|
|
(53
|
)
|
|
(6
|
)
|
|
|
(27
|
)
|
|
(6
|
)
|
|
(80
|
)
|
|
(7
|
)
|
|
(82
|
)
|
|
(3
|
)
|
|
103
|
%
|
|
43
|
%
|
|||||
Excess spread accretion
|
77
|
|
|
5
|
|
|
22
|
|
|
2
|
|
|
|
11
|
|
|
3
|
|
|
33
|
|
|
3
|
|
|
44
|
|
|
2
|
|
|
133
|
%
|
|
67
|
%
|
|||||
Reverse MSL accretion
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
100
|
%
|
|
—
|
%
|
|||||
Reverse MSR amortization
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
100
|
%
|
|
—
|
%
|
|||||
Total amortization, net of accretion
|
(73
|
)
|
|
(5
|
)
|
|
(31
|
)
|
|
(4
|
)
|
|
|
(16
|
)
|
|
(3
|
)
|
|
(47
|
)
|
|
(4
|
)
|
|
(26
|
)
|
|
(1
|
)
|
|
55
|
%
|
|
25
|
%
|
|||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
MSR MTM(4)
|
(195
|
)
|
|
(12
|
)
|
|
49
|
|
|
6
|
|
|
|
44
|
|
|
11
|
|
|
93
|
|
|
8
|
|
|
(288
|
)
|
|
(20
|
)
|
|
(310
|
)%
|
|
(250
|
)%
|
|||||
Excess spread / financing MTM
|
112
|
|
|
7
|
|
|
(25
|
)
|
|
(3
|
)
|
|
|
(19
|
)
|
|
(5
|
)
|
|
(44
|
)
|
|
(4
|
)
|
|
156
|
|
|
11
|
|
|
(355
|
)%
|
|
(275
|
)%
|
|||||
Total MTM adjustments
|
(83
|
)
|
|
(5
|
)
|
|
24
|
|
|
3
|
|
|
|
25
|
|
|
6
|
|
|
49
|
|
|
4
|
|
|
(132
|
)
|
|
(9
|
)
|
|
(269
|
)%
|
|
(225
|
)%
|
|||||
Total revenues - Servicing
|
$
|
163
|
|
|
10
|
|
|
$
|
183
|
|
|
23
|
|
|
|
$
|
97
|
|
|
24
|
|
|
$
|
280
|
|
|
22
|
|
|
$
|
(117
|
)
|
|
(12
|
)
|
|
(42
|
)%
|
|
(55
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
(2)
|
Calculated basis points (“bps”) are as follows: Annualized dollar 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 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 $18 for the three months ended September 30, 2019. The impact of negative modeled cash flows, on a combined basis, for the Predecessor was $17 for the three months ended September 30, 2018.
|
Table 10.1. Servicing - Revenues
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ 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
|
$
|
749
|
|
|
16
|
|
|
$
|
142
|
|
|
17
|
|
|
|
$
|
501
|
|
|
17
|
|
|
$
|
643
|
|
|
17
|
|
|
$
|
106
|
|
|
(1
|
)
|
|
16
|
%
|
|
(6
|
)%
|
Modification fees(3)
|
13
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
21
|
|
|
1
|
|
|
26
|
|
|
1
|
|
|
(13
|
)
|
|
(1
|
)
|
|
(50
|
)%
|
|
(100
|
)%
|
|||||
Incentive fees(3)
|
8
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
|
13
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(47
|
)%
|
|
—
|
%
|
|||||
Late payment fees(3)
|
62
|
|
|
2
|
|
|
11
|
|
|
1
|
|
|
|
45
|
|
|
2
|
|
|
56
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
11
|
%
|
|
—
|
%
|
|||||
Other ancillary revenues(3)
|
126
|
|
|
3
|
|
|
16
|
|
|
2
|
|
|
|
63
|
|
|
2
|
|
|
79
|
|
|
2
|
|
|
47
|
|
|
1
|
|
|
59
|
%
|
|
50
|
%
|
|||||
Total forward MSR operational revenue
|
958
|
|
|
21
|
|
|
176
|
|
|
21
|
|
|
|
643
|
|
|
22
|
|
|
819
|
|
|
22
|
|
|
139
|
|
|
(1
|
)
|
|
17
|
%
|
|
(5
|
)%
|
|||||
Base subservicing fees and other subservicing revenue(3)
|
179
|
|
|
4
|
|
|
27
|
|
|
4
|
|
|
|
87
|
|
|
2
|
|
|
114
|
|
|
3
|
|
|
65
|
|
|
1
|
|
|
57
|
%
|
|
33
|
%
|
|||||
Reverse servicing fees
|
24
|
|
|
—
|
|
|
13
|
|
|
2
|
|
|
|
37
|
|
|
1
|
|
|
50
|
|
|
1
|
|
|
(26
|
)
|
|
(1
|
)
|
|
(52
|
)%
|
|
(100
|
)%
|
|||||
Total servicing fee revenue
|
1,161
|
|
|
25
|
|
|
216
|
|
|
27
|
|
|
|
767
|
|
|
25
|
|
|
983
|
|
|
26
|
|
|
178
|
|
|
(1
|
)
|
|
18
|
%
|
|
(4
|
)%
|
|||||
MSR financing liability costs
|
(32
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(1
|
)
|
|
|
(33
|
)
|
|
(1
|
)
|
|
(41
|
)
|
|
(1
|
)
|
|
9
|
|
|
—
|
|
|
(22
|
)%
|
|
—
|
%
|
|||||
Excess spread costs - principal
|
(172
|
)
|
|
(4
|
)
|
|
(18
|
)
|
|
(2
|
)
|
|
|
(78
|
)
|
|
(3
|
)
|
|
(96
|
)
|
|
(2
|
)
|
|
(76
|
)
|
|
(2
|
)
|
|
79
|
%
|
|
100
|
%
|
|||||
Total operational revenue
|
957
|
|
|
20
|
|
|
190
|
|
|
24
|
|
|
|
656
|
|
|
21
|
|
|
846
|
|
|
23
|
|
|
111
|
|
|
(3
|
)
|
|
13
|
%
|
|
(13
|
)%
|
|||||
Amortization, net of accretion
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Forward MSR amortization
|
(366
|
)
|
|
(8
|
)
|
|
(53
|
)
|
|
(6
|
)
|
|
|
(190
|
)
|
|
(7
|
)
|
|
(243
|
)
|
|
(7
|
)
|
|
(123
|
)
|
|
(1
|
)
|
|
51
|
%
|
|
14
|
%
|
|||||
Excess spread accretion
|
172
|
|
|
4
|
|
|
22
|
|
|
2
|
|
|
|
78
|
|
|
3
|
|
|
100
|
|
|
3
|
|
|
72
|
|
|
1
|
|
|
72
|
%
|
|
33
|
%
|
|||||
Reverse MSL accretion
|
39
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
1
|
|
|
100
|
%
|
|
100
|
%
|
|||||
Reverse MSR amortization
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
100
|
%
|
|
—
|
%
|
|||||
Total amortization, net of accretion
|
(152
|
)
|
|
(3
|
)
|
|
(31
|
)
|
|
(4
|
)
|
|
|
(112
|
)
|
|
(4
|
)
|
|
(143
|
)
|
|
(4
|
)
|
|
(9
|
)
|
|
1
|
|
|
6
|
%
|
|
(25
|
)%
|
|||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
MSR MTM(4)
|
(782
|
)
|
|
(17
|
)
|
|
49
|
|
|
6
|
|
|
|
295
|
|
|
10
|
|
|
344
|
|
|
9
|
|
|
(1,126
|
)
|
|
(26
|
)
|
|
(327
|
)%
|
|
(289
|
)%
|
|||||
Excess spread / financing MTM
|
175
|
|
|
4
|
|
|
(25
|
)
|
|
(3
|
)
|
|
|
(99
|
)
|
|
(3
|
)
|
|
(124
|
)
|
|
(3
|
)
|
|
299
|
|
|
7
|
|
|
(241
|
)%
|
|
(233
|
)%
|
|||||
Total MTM adjustments
|
(607
|
)
|
|
(13
|
)
|
|
24
|
|
|
3
|
|
|
|
196
|
|
|
7
|
|
|
220
|
|
|
6
|
|
|
(827
|
)
|
|
(19
|
)
|
|
(376
|
)%
|
|
(317
|
)%
|
|||||
Total revenues - Servicing
|
$
|
198
|
|
|
4
|
|
|
$
|
183
|
|
|
23
|
|
|
|
$
|
740
|
|
|
24
|
|
|
$
|
923
|
|
|
25
|
|
|
$
|
(725
|
)
|
|
(21
|
)
|
|
(79
|
)%
|
|
(84
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
(2)
|
Calculated basis points (“bps”) are as follows: Annualized dollar 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 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 $46 for the nine months ended September 30, 2019. The impact of negative modeled cash flows, on a combined basis, for the Predecessor was $51 for the nine months ended September 30, 2018.
|
Table 11. Servicing - Expenses
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
Change
|
|
% Change
|
||||||||||||||||||||||||
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||||
Salaries, wages and benefits
|
$
|
85
|
|
|
5
|
|
$
|
52
|
|
|
6
|
|
|
$
|
25
|
|
|
6
|
|
$
|
77
|
|
|
6
|
|
$
|
8
|
|
|
(1)
|
|
10
|
%
|
|
(17
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Servicing support fees
|
30
|
|
|
2
|
|
25
|
|
|
3
|
|
|
9
|
|
|
2
|
|
34
|
|
|
3
|
|
(4
|
)
|
|
(1)
|
|
(12
|
)%
|
|
(33
|
)%
|
|||||
Corporate and other general and administrative expenses
|
40
|
|
|
3
|
|
21
|
|
|
2
|
|
|
17
|
|
|
4
|
|
38
|
|
|
3
|
|
2
|
|
|
—
|
|
5
|
%
|
|
—
|
%
|
|||||
Foreclosure and other liquidation related expenses
|
11
|
|
|
1
|
|
2
|
|
|
—
|
|
|
73
|
|
|
18
|
|
75
|
|
|
6
|
|
(64
|
)
|
|
(5)
|
|
(85
|
)%
|
|
(83
|
)%
|
|||||
Depreciation and amortization
|
5
|
|
|
—
|
|
4
|
|
|
—
|
|
|
2
|
|
|
1
|
|
6
|
|
|
—
|
|
(1
|
)
|
|
—
|
|
(17
|
)%
|
|
—
|
%
|
|||||
Total general and administrative expenses
|
86
|
|
|
6
|
|
52
|
|
|
5
|
|
|
101
|
|
|
25
|
|
153
|
|
|
12
|
|
(67
|
)
|
|
(6)
|
|
(44
|
)%
|
|
(50
|
)%
|
|||||
Total expenses - Servicing
|
$
|
171
|
|
|
11
|
|
$
|
104
|
|
|
11
|
|
|
$
|
126
|
|
|
31
|
|
$
|
230
|
|
|
18
|
|
$
|
(59
|
)
|
|
(7)
|
|
(26
|
)%
|
|
(39
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 11.1. Servicing - Expenses
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
Change
|
|
% Change
|
||||||||||||||||||||||||
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|||||||||||||
Salaries, wages and benefits
|
$
|
261
|
|
|
6
|
|
$
|
52
|
|
|
6
|
|
|
$
|
175
|
|
|
6
|
|
$
|
227
|
|
|
6
|
|
$
|
34
|
|
|
—
|
|
15
|
%
|
|
—
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Servicing support fees
|
93
|
|
|
2
|
|
25
|
|
|
3
|
|
|
71
|
|
|
2
|
|
96
|
|
|
2
|
|
(3
|
)
|
|
—
|
|
(3
|
)%
|
|
—
|
%
|
|||||
Corporate and other general and administrative expenses
|
118
|
|
|
3
|
|
21
|
|
|
2
|
|
|
80
|
|
|
3
|
|
101
|
|
|
3
|
|
17
|
|
|
—
|
|
17
|
%
|
|
—
|
%
|
|||||
Foreclosure and other liquidation related expenses
|
70
|
|
|
1
|
|
2
|
|
|
—
|
|
|
133
|
|
|
4
|
|
135
|
|
|
4
|
|
(65
|
)
|
|
(3)
|
|
(48
|
)%
|
|
(75
|
)%
|
|||||
Depreciation and amortization
|
13
|
|
|
—
|
|
4
|
|
|
—
|
|
|
15
|
|
|
—
|
|
19
|
|
|
—
|
|
(6
|
)
|
|
—
|
|
(32
|
)%
|
|
—
|
%
|
|||||
Total general and administrative expenses
|
294
|
|
|
6
|
|
52
|
|
|
5
|
|
|
299
|
|
|
9
|
|
351
|
|
|
9
|
|
(57
|
)
|
|
(3)
|
|
(16
|
)%
|
|
(33
|
)%
|
|||||
Total expenses - Servicing
|
$
|
555
|
|
|
12
|
|
$
|
104
|
|
|
11
|
|
|
$
|
474
|
|
|
15
|
|
$
|
578
|
|
|
15
|
|
$
|
(23
|
)
|
|
(3)
|
|
(4
|
)%
|
|
(20
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 12. Servicing - Other Income (Expenses), Net
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
Change
|
|
% Change
|
|||||||||||||||||||||||||||||
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||||||||||
Income earned on Reverse mortgage interest
|
$
|
81
|
|
|
5
|
|
|
$
|
72
|
|
|
8
|
|
|
|
$
|
38
|
|
|
9
|
|
|
$
|
110
|
|
|
9
|
|
|
$
|
(29
|
)
|
|
(4
|
)
|
|
(26
|
)%
|
|
(44
|
)%
|
Other interest income
|
56
|
|
|
4
|
|
|
6
|
|
|
1
|
|
|
|
3
|
|
|
1
|
|
|
9
|
|
|
1
|
|
|
47
|
|
|
3
|
|
|
522
|
%
|
|
300
|
%
|
|||||
Interest income
|
137
|
|
|
9
|
|
|
78
|
|
|
9
|
|
|
|
41
|
|
|
10
|
|
|
119
|
|
|
10
|
|
|
18
|
|
|
(1
|
)
|
|
15
|
%
|
|
(10
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reverse mortgage interest expense
|
(58
|
)
|
|
(4
|
)
|
|
(63
|
)
|
|
(7
|
)
|
|
|
(30
|
)
|
|
(7
|
)
|
|
(93
|
)
|
|
(7
|
)
|
|
35
|
|
|
3
|
|
|
(38
|
)%
|
|
(43
|
)%
|
|||||
Advance interest expense
|
(6
|
)
|
|
—
|
|
|
(5
|
)
|
|
(1
|
)
|
|
|
(2
|
)
|
|
(1
|
)
|
|
(7
|
)
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|
(14
|
)%
|
|
(100
|
)%
|
|||||
Other interest expense
|
(56
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
|
(3
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
(47
|
)
|
|
(3
|
)
|
|
522
|
%
|
|
300
|
%
|
|||||
Interest expense
|
(120
|
)
|
|
(8
|
)
|
|
(74
|
)
|
|
(9
|
)
|
|
|
(35
|
)
|
|
(9
|
)
|
|
(109
|
)
|
|
(9
|
)
|
|
(11
|
)
|
|
1
|
|
|
10
|
%
|
|
(11
|
)%
|
|||||
Other income (expense)
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(100
|
)%
|
|
—
|
%
|
|||||
Total other income (expenses), net - Servicing
|
$
|
17
|
|
|
1
|
|
|
$
|
9
|
|
|
1
|
|
|
|
$
|
6
|
|
|
1
|
|
|
$
|
15
|
|
|
1
|
|
|
$
|
2
|
|
|
—
|
|
|
13
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average cost - advance facilities
|
3.8
|
%
|
|
|
|
4.0
|
%
|
|
|
|
|
4.1
|
%
|
|
|
|
4.0
|
%
|
|
|
|
(0.2
|
)%
|
|
|
|
|
(5
|
)%
|
|
|
|
|||||||||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
|
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
|
|
—
|
%
|
|
|
|
|
—
|
%
|
|
|
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 12.1. Servicing - Other Income (Expenses), Net
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
Change
|
|
% Change
|
|||||||||||||||||||||||||||||
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||||||||||
Income earned on Reverse mortgage interest
|
$
|
249
|
|
|
5
|
|
|
$
|
72
|
|
|
8
|
|
|
|
$
|
274
|
|
|
9
|
|
|
$
|
346
|
|
|
9
|
|
|
$
|
(97
|
)
|
|
(4
|
)
|
|
(28
|
)%
|
|
(44
|
)%
|
Other interest income
|
139
|
|
|
3
|
|
|
6
|
|
|
1
|
|
|
|
14
|
|
|
1
|
|
|
20
|
|
|
1
|
|
|
119
|
|
|
2
|
|
|
595
|
%
|
|
200
|
%
|
|||||
Interest income
|
388
|
|
|
8
|
|
|
78
|
|
|
9
|
|
|
|
288
|
|
|
10
|
|
|
366
|
|
|
10
|
|
|
22
|
|
|
(2
|
)
|
|
6
|
%
|
|
(20
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Reverse mortgage interest expense
|
(175
|
)
|
|
(4
|
)
|
|
(63
|
)
|
|
(7
|
)
|
|
|
(221
|
)
|
|
(7
|
)
|
|
(284
|
)
|
|
(7
|
)
|
|
109
|
|
|
3
|
|
|
(38
|
)%
|
|
(43
|
)%
|
|||||
Advance interest expense
|
(23
|
)
|
|
—
|
|
|
(5
|
)
|
|
(1
|
)
|
|
|
(19
|
)
|
|
(1
|
)
|
|
(24
|
)
|
|
(1
|
)
|
|
1
|
|
|
1
|
|
|
(4
|
)%
|
|
(100
|
)%
|
|||||
Other interest expense
|
(145
|
)
|
|
(3
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
|
(28
|
)
|
|
(1
|
)
|
|
(34
|
)
|
|
(1
|
)
|
|
(111
|
)
|
|
(2
|
)
|
|
326
|
%
|
|
200
|
%
|
|||||
Interest expense
|
(343
|
)
|
|
(7
|
)
|
|
(74
|
)
|
|
(9
|
)
|
|
|
(268
|
)
|
|
(9
|
)
|
|
(342
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
2
|
|
|
—
|
%
|
|
(22
|
)%
|
|||||
Other income (expense)
|
—
|
|
|
—
|
|
|
5
|
|
|
1
|
|
|
|
(1
|
)
|
|
—
|
|
|
4
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(100
|
)%
|
|
—
|
%
|
|||||
Total other income (expenses), net - Servicing
|
$
|
45
|
|
|
1
|
|
|
$
|
9
|
|
|
1
|
|
|
|
$
|
19
|
|
|
1
|
|
|
$
|
28
|
|
|
1
|
|
|
$
|
17
|
|
|
—
|
|
|
61
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Weighted average cost - advance facilities
|
4.0
|
%
|
|
|
|
4.0
|
%
|
|
|
|
|
3.9
|
%
|
|
|
|
3.9
|
%
|
|
|
|
0.1
|
%
|
|
|
|
3
|
%
|
|
|
|||||||||||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
|
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
|
|
—
|
%
|
|
|
|
—
|
%
|
|
|
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 13. Serviced Portfolios and Related Liabilities
|
|
Successor
|
||||||||||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|||||||||||
Forward MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
247,821
|
|
|
$
|
2,764
|
|
|
4.5
|
%
|
|
$
|
229,108
|
|
|
$
|
3,027
|
|
|
4.5
|
%
|
Non-agency
|
58,860
|
|
|
575
|
|
|
4.8
|
%
|
|
66,373
|
|
|
638
|
|
|
4.8
|
%
|
||||
Total Forward MSRs - fair value
|
306,681
|
|
|
3,339
|
|
|
4.6
|
%
|
|
295,481
|
|
|
3,665
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
294,783
|
|
|
N/A
|
|
|
N/A
|
|
|
208,607
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
15,748
|
|
|
N/A
|
|
|
N/A
|
|
|
15,279
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
310,531
|
|
|
N/A
|
|
|
N/A
|
|
|
223,886
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
2,761
|
|
|
7
|
|
|
N/A
|
|
|
3,940
|
|
|
11
|
|
|
N/A
|
|
||||
MSL
|
14,641
|
|
|
(69
|
)
|
|
N/A
|
|
|
16,538
|
|
|
(71
|
)
|
|
N/A
|
|
||||
Securitized loans
|
6,588
|
|
|
6,662
|
|
|
N/A
|
|
|
7,937
|
|
|
7,934
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
23,990
|
|
|
6,600
|
|
|
N/A
|
|
|
28,415
|
|
|
7,874
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
641,202
|
|
|
$
|
9,939
|
|
|
N/A
|
|
|
$
|
547,782
|
|
|
$
|
11,539
|
|
|
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 14. Fair Value MSR Valuation
|
|
Successor
|
||||||||||||||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
|||||||||
MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
$
|
157,898
|
|
|
$
|
1,661
|
|
|
105
|
|
$
|
135,752
|
|
|
$
|
1,495
|
|
|
110
|
Interest sensitive
|
148,783
|
|
|
1,678
|
|
|
113
|
|
159,729
|
|
|
2,170
|
|
|
136
|
||||
Total MSRs - fair value
|
$
|
306,681
|
|
|
$
|
3,339
|
|
|
109
|
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
124
|
Table 15. MSRs - Fair Value, Roll Forward
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Fair value - beginning of period
|
$
|
3,505
|
|
|
$
|
3,665
|
|
|
$
|
3,413
|
|
|
|
$
|
3,356
|
|
|
$
|
2,937
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Servicing retained from mortgage loans sold
|
129
|
|
|
298
|
|
|
43
|
|
|
|
22
|
|
|
162
|
|
|||||
Purchases of servicing rights
|
43
|
|
|
732
|
|
|
72
|
|
|
|
12
|
|
|
144
|
|
|||||
Dispositions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Sales of servicing rights
|
(24
|
)
|
|
(317
|
)
|
|
(63
|
)
|
|
|
—
|
|
|
4
|
|
|||||
Changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
(72
|
)
|
|
(228
|
)
|
|
14
|
|
|
|
11
|
|
|
203
|
|
|||||
Interest sensitive
|
(102
|
)
|
|
(488
|
)
|
|
51
|
|
|
|
35
|
|
|
127
|
|
|||||
Other changes in fair value:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Scheduled principal payments
|
(24
|
)
|
|
(69
|
)
|
|
(20
|
)
|
|
|
(6
|
)
|
|
(45
|
)
|
|||||
Disposition of negative MSRs and other(1)
|
20
|
|
|
43
|
|
|
7
|
|
|
|
3
|
|
|
27
|
|
|||||
Prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Voluntary prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
(27
|
)
|
|
(72
|
)
|
|
(14
|
)
|
|
|
(10
|
)
|
|
(71
|
)
|
|||||
Interest sensitive
|
(103
|
)
|
|
(205
|
)
|
|
(11
|
)
|
|
|
(8
|
)
|
|
(54
|
)
|
|||||
Involuntary prepayments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
(1
|
)
|
|
(6
|
)
|
|
(3
|
)
|
|
|
(1
|
)
|
|
(12
|
)
|
|||||
Interest sensitive
|
(5
|
)
|
|
(14
|
)
|
|
(4
|
)
|
|
|
(1
|
)
|
|
(9
|
)
|
|||||
Fair value - end of period
|
$
|
3,339
|
|
|
$
|
3,339
|
|
|
$
|
3,485
|
|
|
|
$
|
3,413
|
|
|
$
|
3,413
|
|
(1)
|
Amounts primarily represent negative fair values reclassified from the MSR asset to reserves of advances and other receivables as underlying loans are removed from the MSR and other reclassification adjustments.
|
Table 16. MSRs - Fair Value
|
|
Successor
|
||||
|
September 30, 2019
|
|
September 30, 2018
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
10.4
|
%
|
|
11.2
|
%
|
Weighted average prepayment speeds
|
13.2
|
%
|
|
11.2
|
%
|
Weighted average life of loans
|
5.9 years
|
|
|
6.7 years
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9.0
|
%
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
14.6
|
%
|
|
8.9
|
%
|
Weighted average life of loans
|
5.4 years
|
|
|
7.4 years
|
|
|
|
|
|
||
Total MSRs Portfolio
|
|
|
|
||
Discount rate
|
9.7
|
%
|
|
10.4
|
%
|
Weighted average prepayment speeds
|
13.9
|
%
|
|
10.3
|
%
|
Weighted average life of loans
|
5.6 years
|
|
|
7.0 years
|
|
Table 17. Excess Spread Financing
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Fair value - beginning of period
|
$
|
1,429
|
|
|
$
|
1,184
|
|
|
$
|
1,039
|
|
|
|
$
|
1,047
|
|
|
$
|
996
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
New financings
|
31
|
|
|
469
|
|
|
84
|
|
|
|
—
|
|
|
70
|
|
|||||
Deductions:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Repayments of debt
|
(7
|
)
|
|
(19
|
)
|
|
(21
|
)
|
|
|
(1
|
)
|
|
(3
|
)
|
|||||
Settlements of principal balances
|
(56
|
)
|
|
(163
|
)
|
|
(31
|
)
|
|
|
(14
|
)
|
|
(105
|
)
|
|||||
Fair value changes:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Sensitive
|
(59
|
)
|
|
(74
|
)
|
|
23
|
|
|
|
7
|
|
|
73
|
|
|||||
Interest Sensitive
|
(57
|
)
|
|
(116
|
)
|
|
3
|
|
|
|
—
|
|
|
8
|
|
|||||
Fair value - end of period
|
$
|
1,281
|
|
|
$
|
1,281
|
|
|
$
|
1,097
|
|
|
|
$
|
1,039
|
|
|
$
|
1,039
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
||||||||||||
Total Key Weighted Average Assumptions:
|
|
|
|
|
|
|
September 30, 2019
|
|
September 30, 2018
|
|||||||||||
Credit Sensitive
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Discount rate
|
|
|
|
|
|
|
|
12.5
|
%
|
|
11.1
|
%
|
||||||||
Prepayment speeds
|
|
|
|
|
|
|
|
12.9
|
%
|
|
11.0
|
%
|
||||||||
Recapture rate
|
|
|
|
|
|
|
|
23.6
|
%
|
|
18.0
|
%
|
||||||||
Average life
|
|
|
|
|
|
|
|
5.8 years
|
|
|
6.6 years
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest Sensitive
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Discount rate
|
|
|
|
|
|
|
|
10.9
|
%
|
|
9.1
|
%
|
||||||||
Prepayment speeds
|
|
|
|
|
|
|
|
13.9
|
%
|
|
9.3
|
%
|
||||||||
Recapture rate
|
|
|
|
|
|
|
|
20.0
|
%
|
|
14.7
|
%
|
||||||||
Average life
|
|
|
|
|
|
|
|
5.5 years
|
|
|
7.1 years
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Excess Spread Financing Portfolio
|
|
|
|
|
|
|
|
|
|
|||||||||||
Discount rate
|
|
|
|
|
|
|
|
11.9
|
%
|
|
10.6
|
%
|
||||||||
Prepayment speeds
|
|
|
|
|
|
|
|
13.3
|
%
|
|
10.6
|
%
|
||||||||
Recapture rate
|
|
|
|
|
|
|
|
22.3
|
%
|
|
17.7
|
%
|
||||||||
Average life
|
|
|
|
|
|
|
|
5.7 years
|
|
|
6.7 years
|
|
Table 18. MSRs Financing Liability - Rollforward
|
|
Successor
|
|
|
Predecessor
|
||||||||||||||||
|
Three Months Ended September 30, 2019
|
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Seven Months Ended July 31, 2018
|
||||||||||
Fair value - beginning of period
|
$
|
43
|
|
|
$
|
32
|
|
|
$
|
26
|
|
|
|
$
|
16
|
|
|
$
|
10
|
|
Changes in fair value(1):
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Changes in valuation inputs or assumptions used in the valuation model
|
9
|
|
|
28
|
|
|
3
|
|
|
|
11
|
|
|
22
|
|
|||||
Other changes in fair value
|
(5
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
|
(1
|
)
|
|
(6
|
)
|
|||||
Fair value - end of period
|
$
|
47
|
|
|
$
|
47
|
|
|
$
|
26
|
|
|
|
$
|
26
|
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Successor
|
||||||||||||
|
|
|
|
|
|
|
|
September 30, 2019
|
|
September 30, 2018
|
||||||||||
Weighted Average Assumptions
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advance financing rates
|
|
|
|
|
|
|
|
3.7
|
%
|
|
4.9
|
%
|
||||||||
Annual advance recovery rates
|
|
|
|
|
|
|
|
18.7
|
%
|
|
18.2
|
%
|
(1)
|
The changes in fair value related to our MSRs 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 19. Leveraged Portfolio Characteristics
|
|
Successor
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Owned forward servicing portfolio - unencumbered
|
$
|
89,308
|
|
|
$
|
90,504
|
|
Owned forward servicing portfolio - encumbered
|
217,373
|
|
|
183,982
|
|
||
Subserviced forward servicing portfolio and other
|
310,531
|
|
|
209,106
|
|
||
Total unpaid principal balance
|
$
|
617,212
|
|
|
$
|
483,592
|
|
Table 20. Reserve - Mortgage Portfolio Characteristics
|
|
Successor
|
||||||
|
September 30, 2019
|
|
September 30, 2018
|
||||
Loan count
|
170,903
|
|
|
200,904
|
|
||
Ending unpaid principal balance
|
$
|
23,990
|
|
|
$
|
30,660
|
|
Average loan amount(1)
|
$
|
140,374
|
|
|
$
|
152,608
|
|
Average coupon
|
3.8
|
%
|
|
4.3
|
%
|
||
Average borrower age
|
80
|
|
|
79
|
|
(1)
|
Average loan amount is presented in whole dollar amounts.
|
Originations Segment
|
•
|
Our direct-to-consumer lending channel relies on call centers, our website and mobile apps to interact with customers. Our primary focus is to assist our customers with a refinance or home purchase by providing them with a needs-based approach to understanding their current mortgage options.
|
•
|
Our correspondent lending channel acquires newly originated residential mortgage loans that have been underwritten to investor guidelines. This includes both conventional and government-insured loans that qualify for inclusion in securitizations that are guaranteed by the GSEs. Our correspondent lending channel enables us to replenish servicing portfolio run-off typically at better rate of return than traditional bulk or flow acquisitions.
|
•
|
Our wholesale lending channel works with mortgage brokers to source loans which are underwritten and funded by us and also in our name. Counterparty risk is mitigated through quality and compliance monitoring and all brokers are subject to our eligibility requirements coupled with an annual recertification process.
|
Table 21. Originations Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues
|
$
|
334
|
|
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
203
|
|
|
155
|
%
|
Expenses
|
155
|
|
|
66
|
|
|
|
34
|
|
|
100
|
|
|
55
|
|
|
55
|
%
|
|||||
Other income (expenses), net
|
(1
|
)
|
|
1
|
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
(200
|
)%
|
|||||
Income before income tax expense
|
$
|
178
|
|
|
$
|
21
|
|
|
|
$
|
11
|
|
|
$
|
32
|
|
|
$
|
146
|
|
|
456
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Originations Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue
|
$
|
334
|
|
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
203
|
|
|
155
|
%
|
Pull through adjusted lock volume
|
$
|
12,699
|
|
|
$
|
3,421
|
|
|
|
$
|
1,606
|
|
|
$
|
5,027
|
|
|
$
|
7,672
|
|
|
153
|
%
|
Revenue as a percentage of pull through adjusted lock volume(2)
|
2.63
|
%
|
|
2.51
|
%
|
|
|
2.80
|
%
|
|
2.61
|
%
|
|
0.02
|
%
|
|
1
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
$
|
155
|
|
|
$
|
66
|
|
|
|
$
|
34
|
|
|
$
|
100
|
|
|
$
|
55
|
|
|
55
|
%
|
Funded volume
|
$
|
11,911
|
|
|
$
|
3,459
|
|
|
|
$
|
1,688
|
|
|
$
|
5,147
|
|
|
$
|
6,764
|
|
|
131
|
%
|
Expenses as a percentage of funded volume(3)
|
1.30
|
%
|
|
1.91
|
%
|
|
|
2.01
|
%
|
|
1.94
|
%
|
|
(0.64
|
)%
|
|
(33
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Originations Margin
|
1.33
|
%
|
|
0.60
|
%
|
|
|
0.79
|
%
|
|
0.67
|
%
|
|
0.66
|
%
|
|
99
|
%
|
(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 21.1 Originations Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Revenues
|
$
|
744
|
|
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
352
|
|
|
90
|
%
|
Expenses
|
404
|
|
|
66
|
|
|
|
245
|
|
|
311
|
|
|
93
|
|
|
30
|
%
|
|||||
Other income (expenses), net
|
1
|
|
|
1
|
|
|
|
1
|
|
|
2
|
|
|
(1
|
)
|
|
(50
|
)%
|
|||||
Income before income tax expense
|
$
|
341
|
|
|
$
|
21
|
|
|
|
$
|
62
|
|
|
$
|
83
|
|
|
$
|
258
|
|
|
311
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Originations Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenue
|
$
|
744
|
|
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
352
|
|
|
90
|
%
|
Pull through adjusted lock volume
|
$
|
29,856
|
|
|
$
|
3,421
|
|
|
|
$
|
11,907
|
|
|
$
|
15,328
|
|
|
$
|
14,528
|
|
|
95
|
%
|
Revenue as a percentage of pull through adjusted lock volume(2)
|
2.49
|
%
|
|
2.51
|
%
|
|
|
2.57
|
%
|
|
2.56
|
%
|
|
(0.07
|
)%
|
|
(3
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Expenses
|
$
|
404
|
|
|
$
|
66
|
|
|
|
$
|
245
|
|
|
$
|
311
|
|
|
$
|
93
|
|
|
30
|
%
|
Funded volume
|
$
|
27,623
|
|
|
$
|
3,459
|
|
|
|
$
|
12,317
|
|
|
$
|
15,776
|
|
|
$
|
11,847
|
|
|
75
|
%
|
Expenses as a percentage of funded volume points(3)
|
1.46
|
%
|
|
1.91
|
%
|
|
|
1.99
|
%
|
|
1.97
|
%
|
|
(0.51
|
)%
|
|
(26
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Originations Margin
|
1.03
|
%
|
|
0.60
|
%
|
|
|
0.58
|
%
|
|
0.59
|
%
|
|
0.44
|
%
|
|
75
|
%
|
(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 22. Originations - Revenues
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Service related, net - Originations
|
$
|
22
|
|
|
$
|
10
|
|
|
|
$
|
4
|
|
|
$
|
14
|
|
|
$
|
8
|
|
|
57
|
%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gain on loans originated and sold
|
156
|
|
|
36
|
|
|
|
12
|
|
|
48
|
|
|
108
|
|
|
225
|
%
|
|||||
Fair value adjustment on loans held for sale
|
3
|
|
|
(8
|
)
|
|
|
(1
|
)
|
|
(9
|
)
|
|
12
|
|
|
(133
|
)%
|
|||||
Mark-to-market on locks and commitments(2)
|
34
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
(3
|
)
|
|
37
|
|
|
(1,233
|
)%
|
|||||
Mark-to-market on derivative/hedges
|
(2
|
)
|
|
10
|
|
|
|
9
|
|
|
19
|
|
|
(21
|
)
|
|
(111
|
)%
|
|||||
Capitalized servicing rights
|
126
|
|
|
41
|
|
|
|
22
|
|
|
63
|
|
|
63
|
|
|
100
|
%
|
|||||
Provision for repurchase reserves, net of release
|
(5
|
)
|
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
(4
|
)
|
|
400
|
%
|
|||||
Total net gain on mortgage loans held for sale
|
312
|
|
|
76
|
|
|
|
41
|
|
|
117
|
|
|
195
|
|
|
167
|
%
|
|||||
Total revenues - Originations
|
$
|
334
|
|
|
$
|
86
|
|
|
|
$
|
45
|
|
|
$
|
131
|
|
|
$
|
203
|
|
|
155
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer direct lock pull through adjusted volume(3)
|
$
|
5,488
|
|
|
$
|
1,524
|
|
|
|
$
|
828
|
|
|
$
|
2,352
|
|
|
$
|
3,136
|
|
|
133
|
%
|
Other locked pull through adjusted volume(3)
|
7,211
|
|
|
1,897
|
|
|
|
778
|
|
|
2,675
|
|
|
4,536
|
|
|
170
|
%
|
|||||
Total pull through adjusted volume
|
$
|
12,699
|
|
|
$
|
3,421
|
|
|
|
$
|
1,606
|
|
|
$
|
5,027
|
|
|
$
|
7,672
|
|
|
153
|
%
|
Funded volume
|
$
|
11,911
|
|
|
$
|
3,459
|
|
|
|
$
|
1,688
|
|
|
$
|
5,147
|
|
|
$
|
6,764
|
|
|
131
|
%
|
Volume of loans sold
|
$
|
12,150
|
|
|
$
|
3,454
|
|
|
|
$
|
1,805
|
|
|
$
|
5,259
|
|
|
$
|
6,891
|
|
|
131
|
%
|
Recapture percentage
|
24.6
|
%
|
|
22.8
|
%
|
|
|
20.4
|
%
|
|
22.0
|
%
|
|
2.6
|
%
|
|
12
|
%
|
|||||
Purchase as a percentage of funded volume
|
39.1
|
%
|
|
52.8
|
%
|
|
|
52.2
|
%
|
|
52.6
|
%
|
|
(13.5
|
)%
|
|
(26
|
)%
|
|||||
Value of capitalized servicing on retained settlements
|
154 bps
|
|
|
140 bps
|
|
|
|
135 bps
|
|
|
138 bps
|
|
|
16 bps
|
|
|
12
|
%
|
(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 period.
|
Table 22.1. Originations - Revenues
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Service related, net - Originations
|
$
|
57
|
|
|
$
|
10
|
|
|
|
$
|
36
|
|
|
$
|
46
|
|
|
$
|
11
|
|
|
24
|
%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gain on loans originated and sold
|
286
|
|
|
36
|
|
|
|
113
|
|
|
149
|
|
|
137
|
|
|
92
|
%
|
|||||
Fair value adjustment on loans held for sale
|
19
|
|
|
(8
|
)
|
|
|
—
|
|
|
(8
|
)
|
|
27
|
|
|
(338
|
)%
|
|||||
Mark-to-market on locks and commitments(2)
|
105
|
|
|
(2
|
)
|
|
|
1
|
|
|
(1
|
)
|
|
106
|
|
|
(10,600
|
)%
|
|||||
Mark-to-market on derivative/hedges
|
5
|
|
|
10
|
|
|
|
1
|
|
|
11
|
|
|
(6
|
)
|
|
(55
|
)%
|
|||||
Capitalized servicing rights
|
287
|
|
|
41
|
|
|
|
156
|
|
|
197
|
|
|
90
|
|
|
46
|
%
|
|||||
Provision for repurchase reserves, net of release
|
(15
|
)
|
|
(1
|
)
|
|
|
(1
|
)
|
|
(2
|
)
|
|
(13
|
)
|
|
650
|
%
|
|||||
Total net gain on mortgage loans held for sale
|
687
|
|
|
76
|
|
|
|
270
|
|
|
346
|
|
|
341
|
|
|
99
|
%
|
|||||
Total revenues - Originations
|
$
|
744
|
|
|
$
|
86
|
|
|
|
$
|
306
|
|
|
$
|
392
|
|
|
$
|
352
|
|
|
90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Consumer direct lock pull through adjusted volume(3)
|
$
|
12,211
|
|
|
$
|
1,524
|
|
|
|
$
|
6,100
|
|
|
$
|
7,624
|
|
|
$
|
4,587
|
|
|
60
|
%
|
Other locked pull through adjusted volume(3)
|
17,645
|
|
|
1,897
|
|
|
|
5,807
|
|
|
7,704
|
|
|
9,941
|
|
|
129
|
%
|
|||||
Total pull through adjusted volume
|
$
|
29,856
|
|
|
$
|
3,421
|
|
|
|
$
|
11,907
|
|
|
$
|
15,328
|
|
|
$
|
14,528
|
|
|
95
|
%
|
Funded volume
|
$
|
27,623
|
|
|
$
|
3,459
|
|
|
|
$
|
12,317
|
|
|
$
|
15,776
|
|
|
$
|
11,847
|
|
|
75
|
%
|
Volume of loans sold
|
$
|
27,474
|
|
|
$
|
3,454
|
|
|
|
$
|
12,915
|
|
|
$
|
16,369
|
|
|
$
|
11,105
|
|
|
68
|
%
|
Recapture percentage
|
24.8
|
%
|
|
22.8
|
%
|
|
|
23.8
|
%
|
|
23.6
|
%
|
|
1.2
|
%
|
|
5
|
%
|
|||||
Purchase as a percentage of funded volume
|
46.7
|
%
|
|
52.8
|
%
|
|
|
46.7
|
%
|
|
48.0
|
%
|
|
(1.3
|
)%
|
|
(3
|
)%
|
|||||
Value of capitalized servicing on retained settlements
|
149 bps
|
|
|
140 bps
|
|
|
|
141 bps
|
|
|
140 bps
|
|
|
9 bps
|
|
|
6
|
%
|
(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 period.
|
Table 23. Originations - Expenses
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Salaries, wages and benefits
|
$
|
104
|
|
|
$
|
39
|
|
|
|
$
|
21
|
|
|
$
|
60
|
|
|
$
|
44
|
|
|
73
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan origination expenses
|
16
|
|
|
9
|
|
|
|
5
|
|
|
14
|
|
|
2
|
|
|
14
|
%
|
|||||
Corporate and other general and administrative expenses
|
16
|
|
|
7
|
|
|
|
3
|
|
|
10
|
|
|
6
|
|
|
60
|
%
|
|||||
Marketing and professional service fees
|
12
|
|
|
9
|
|
|
|
4
|
|
|
13
|
|
|
(1
|
)
|
|
(8
|
)%
|
|||||
Depreciation and amortization
|
4
|
|
|
2
|
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
33
|
%
|
|||||
Loss on impairment of assets
|
3
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
100
|
%
|
|||||
Total general and administrative
|
51
|
|
|
27
|
|
|
|
13
|
|
|
40
|
|
|
11
|
|
|
28
|
%
|
|||||
Total expenses - Originations
|
$
|
155
|
|
|
$
|
66
|
|
|
|
$
|
34
|
|
|
$
|
100
|
|
|
$
|
55
|
|
|
55
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 23.1. Originations - Expenses
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Salaries, wages and benefits
|
$
|
261
|
|
|
$
|
39
|
|
|
|
$
|
148
|
|
|
$
|
187
|
|
|
$
|
74
|
|
|
40
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan origination expenses
|
43
|
|
|
9
|
|
|
|
32
|
|
|
41
|
|
|
2
|
|
|
5
|
%
|
|||||
Corporate and other general and administrative expenses
|
43
|
|
|
7
|
|
|
|
26
|
|
|
33
|
|
|
10
|
|
|
30
|
%
|
|||||
Marketing and professional service fees
|
41
|
|
|
9
|
|
|
|
32
|
|
|
41
|
|
|
—
|
|
|
—
|
%
|
|||||
Depreciation and amortization
|
13
|
|
|
2
|
|
|
|
7
|
|
|
9
|
|
|
4
|
|
|
44
|
%
|
|||||
Loss on impairment of assets
|
3
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
100
|
%
|
|||||
Total general and administrative
|
143
|
|
|
27
|
|
|
|
97
|
|
|
124
|
|
|
19
|
|
|
15
|
%
|
|||||
Total expenses - Originations
|
$
|
404
|
|
|
$
|
66
|
|
|
|
$
|
245
|
|
|
$
|
311
|
|
|
$
|
93
|
|
|
30
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 24. Originations - Other Income (Expenses), Net
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Interest income
|
$
|
24
|
|
|
$
|
10
|
|
|
|
$
|
6
|
|
|
$
|
16
|
|
|
$
|
8
|
|
|
50
|
%
|
Interest expense
|
(24
|
)
|
|
(10
|
)
|
|
|
(6
|
)
|
|
(16
|
)
|
|
(8
|
)
|
|
50
|
%
|
|||||
Other income
|
(1
|
)
|
|
1
|
|
|
|
—
|
|
|
1
|
|
|
(2
|
)
|
|
(200
|
)%
|
|||||
Total other income, net - Originations
|
$
|
(1
|
)
|
|
$
|
1
|
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
(200
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average note rate - mortgage loans held for sale
|
4.1
|
%
|
|
4.8
|
%
|
|
|
4.8
|
%
|
|
4.8
|
%
|
|
(0.7
|
)%
|
|
(15
|
)%
|
|||||
Weighted average cost of funds (excluding facility fees)
|
3.8
|
%
|
|
4.5
|
%
|
|
|
4.2
|
%
|
|
4.4
|
%
|
|
(0.6
|
)%
|
|
(14
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 24.1. Originations - Other Income (Expenses), Net
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Interest income
|
$
|
64
|
|
|
$
|
10
|
|
|
|
$
|
38
|
|
|
$
|
48
|
|
|
$
|
16
|
|
|
33
|
%
|
Interest expense
|
(67
|
)
|
|
(10
|
)
|
|
|
(37
|
)
|
|
(47
|
)
|
|
(20
|
)
|
|
43
|
%
|
|||||
Other income
|
4
|
|
|
1
|
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|
300
|
%
|
|||||
Total other income, net - Originations
|
$
|
1
|
|
|
$
|
1
|
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
(1
|
)
|
|
(50
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average note rate - mortgage loans held for sale
|
4.4
|
%
|
|
4.8
|
%
|
|
|
4.5
|
%
|
|
4.6
|
%
|
|
(0.2
|
)%
|
|
(4
|
)%
|
|||||
Weighted average cost of funds (excluding facility fees)
|
4.3
|
%
|
|
4.5
|
%
|
|
|
4.2
|
%
|
|
4.3
|
%
|
|
—
|
%
|
|
—
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Xome Segment
|
•
|
The Exchange division consists of the Xome.com auction platform which utilizes proprietary technology designed to provide efficient execution for sales of foreclosed properties.
|
•
|
The Services division includes title, escrow, valuation and field services related to real estate investments or transactions including purchases, sales, refinances and defaults. Services includes the business of AMS, which we acquired in August 2018.
|
•
|
The Data/Technology division sells data or software solutions to real estate service providers, MLS organizations, data aggregators, real estate or mortgage investors and mortgage lenders or servicers. Data/Technology contains Affinity Solutions, which provides aggregation, standardization and licensing for MLS organizations, public records, and neighborhood demographic data, Quantarium, which provides artificial intelligence-powered valuation and other real estate data and analytics, and Xome Signings, which provides technology-enabled notary services.
|
Table 25. Xome Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Xome - Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
112
|
|
|
$
|
73
|
|
|
|
$
|
22
|
|
|
$
|
95
|
|
|
$
|
17
|
|
|
18
|
%
|
Expenses
|
101
|
|
|
71
|
|
|
|
19
|
|
|
90
|
|
|
11
|
|
|
12
|
%
|
|||||
Other income (expenses), net
|
3
|
|
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
4
|
|
|
400
|
%
|
|||||
Income before income tax expense
|
$
|
14
|
|
|
$
|
1
|
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
10
|
|
|
250
|
%
|
Income before taxes margin - Xome
|
12.5
|
%
|
|
1.4
|
%
|
|
|
13.6
|
%
|
|
4.2
|
%
|
|
8.3
|
%
|
|
198
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Xome - Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exchange
|
$
|
19
|
|
|
$
|
15
|
|
|
|
$
|
9
|
|
|
$
|
24
|
|
|
$
|
(5
|
)
|
|
(21
|
)%
|
Services
|
87
|
|
|
54
|
|
|
|
11
|
|
|
65
|
|
|
22
|
|
|
34
|
%
|
|||||
Data/Technology
|
6
|
|
|
4
|
|
|
|
2
|
|
|
6
|
|
|
—
|
|
|
—
|
%
|
|||||
Total revenues - Xome
|
$
|
112
|
|
|
$
|
73
|
|
|
|
$
|
22
|
|
|
$
|
95
|
|
|
$
|
17
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exchange property listings sold
|
2,453
|
|
|
1,730
|
|
|
|
928
|
|
|
2,658
|
|
|
(205
|
)
|
|
(8
|
)%
|
|||||
Average Exchange property listings
|
6,688
|
|
|
5,520
|
|
|
|
5,691
|
|
|
5,577
|
|
|
1,111
|
|
|
20
|
%
|
|||||
Services completed orders
|
429,128
|
|
|
276,937
|
|
|
|
35,599
|
|
|
312,536
|
|
|
116,592
|
|
|
37
|
%
|
|||||
Percentage of revenue earned from third-party customers
|
53.4
|
%
|
|
56.4
|
%
|
|
|
26.0
|
%
|
|
49.3
|
%
|
|
4.1
|
%
|
|
8
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Xome - Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries, wages and benefits
|
$
|
37
|
|
|
$
|
29
|
|
|
|
$
|
9
|
|
|
$
|
38
|
|
|
$
|
(1
|
)
|
|
(3
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
60
|
|
|
40
|
|
|
|
9
|
|
|
49
|
|
|
11
|
|
|
22
|
%
|
|||||
Depreciation and amortization
|
4
|
|
|
2
|
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
33
|
%
|
|||||
Total general and administrative
|
64
|
|
|
42
|
|
|
|
10
|
|
|
52
|
|
|
12
|
|
|
23
|
%
|
|||||
Total expenses - Xome
|
$
|
101
|
|
|
$
|
71
|
|
|
|
$
|
19
|
|
|
$
|
90
|
|
|
$
|
11
|
|
|
12
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 25.1. Xome Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Xome - Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
316
|
|
|
$
|
73
|
|
|
|
$
|
149
|
|
|
$
|
222
|
|
|
$
|
94
|
|
|
42
|
%
|
Expenses
|
301
|
|
|
71
|
|
|
|
123
|
|
|
194
|
|
|
107
|
|
|
55
|
%
|
|||||
Other income (expenses), net
|
14
|
|
|
(1
|
)
|
|
|
9
|
|
|
8
|
|
|
6
|
|
|
75
|
%
|
|||||
Income before income tax expense
|
$
|
29
|
|
|
$
|
1
|
|
|
|
$
|
35
|
|
|
$
|
36
|
|
|
$
|
(7
|
)
|
|
(19
|
)%
|
Income before taxes margin - Xome
|
9.2
|
%
|
|
1.4
|
%
|
|
|
23.5
|
%
|
|
16.2
|
%
|
|
(7.0
|
)%
|
|
(43
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Xome - Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exchange
|
$
|
59
|
|
|
$
|
15
|
|
|
|
$
|
62
|
|
|
$
|
77
|
|
|
$
|
(18
|
)
|
|
(23
|
)%
|
Services
|
240
|
|
|
54
|
|
|
|
74
|
|
|
128
|
|
|
112
|
|
|
88
|
%
|
|||||
Data/Technology
|
17
|
|
|
4
|
|
|
|
13
|
|
|
17
|
|
|
—
|
|
|
—
|
%
|
|||||
Total revenues - Xome
|
$
|
316
|
|
|
$
|
73
|
|
|
|
$
|
149
|
|
|
$
|
222
|
|
|
$
|
94
|
|
|
42
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Exchange property listings sold
|
7,519
|
|
|
1,730
|
|
|
|
6,920
|
|
|
8,650
|
|
|
(1,131
|
)
|
|
(13
|
)%
|
|||||
Average Exchange property listings
|
6,552
|
|
|
5,520
|
|
|
|
6,567
|
|
|
6,335
|
|
|
217
|
|
|
3
|
%
|
|||||
Services completed orders
|
1,226,223
|
|
|
276,937
|
|
|
|
264,031
|
|
|
540,968
|
|
|
685,255
|
|
|
127
|
%
|
|||||
Percentage of revenue earned from third-party customers
|
53.1
|
%
|
|
56.4
|
%
|
|
|
27.8
|
%
|
|
37.2
|
%
|
|
15.9
|
%
|
|
43
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Xome - Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries, wages and benefits
|
$
|
111
|
|
|
$
|
29
|
|
|
|
$
|
58
|
|
|
$
|
87
|
|
|
$
|
24
|
|
|
28
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
179
|
|
|
40
|
|
|
|
58
|
|
|
98
|
|
|
81
|
|
|
83
|
%
|
|||||
Depreciation and amortization
|
11
|
|
|
2
|
|
|
|
7
|
|
|
9
|
|
|
2
|
|
|
22
|
%
|
|||||
Total general and administrative
|
190
|
|
|
42
|
|
|
|
65
|
|
|
107
|
|
|
83
|
|
|
78
|
%
|
|||||
Total expenses - Xome
|
$
|
301
|
|
|
$
|
71
|
|
|
|
$
|
123
|
|
|
$
|
194
|
|
|
$
|
107
|
|
|
55
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Corporate/Other Segment
|
Table 26. Corporate/Other Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
One Month Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Corporate/Other - Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
11
|
|
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
100
|
%
|
Expenses
|
53
|
|
|
34
|
|
|
|
63
|
|
|
97
|
|
|
(44
|
)
|
|
(45
|
)%
|
|||||
Other income (expenses), net
|
(52
|
)
|
|
(35
|
)
|
|
|
(11
|
)
|
|
(46
|
)
|
|
(6
|
)
|
|
13
|
%
|
|||||
Loss before income tax benefit
|
$
|
(94
|
)
|
|
$
|
(69
|
)
|
|
|
$
|
(74
|
)
|
|
$
|
(143
|
)
|
|
$
|
49
|
|
|
(34
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Corporate/Other - Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries, wages and benefits
|
$
|
24
|
|
|
$
|
19
|
|
|
|
$
|
14
|
|
|
$
|
33
|
|
|
$
|
(9
|
)
|
|
(27
|
)%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
20
|
|
|
8
|
|
|
|
49
|
|
|
57
|
|
|
(37
|
)
|
|
(65
|
)%
|
|||||
Depreciation and amortization
|
9
|
|
|
7
|
|
|
|
—
|
|
|
7
|
|
|
2
|
|
|
29
|
%
|
|||||
Total general and administrative
|
29
|
|
|
15
|
|
|
|
49
|
|
|
64
|
|
|
(35
|
)
|
|
(55
|
)%
|
|||||
Total expenses - Corporate/Other
|
$
|
53
|
|
|
$
|
34
|
|
|
|
$
|
63
|
|
|
$
|
97
|
|
|
$
|
(44
|
)
|
|
(45
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Corporate/Other - Other Income (Expenses), Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest income, legacy portfolio
|
$
|
1
|
|
|
$
|
2
|
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
(67
|
)%
|
Other interest income
|
1
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
100
|
%
|
|||||
Total interest income
|
2
|
|
|
2
|
|
|
|
1
|
|
|
3
|
|
|
(1
|
)
|
|
(33
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, legacy portfolio
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
1
|
|
|
100
|
%
|
|||||
Interest expense on unsecured senior notes
|
(51
|
)
|
|
(36
|
)
|
|
|
(11
|
)
|
|
(47
|
)
|
|
(4
|
)
|
|
9
|
%
|
|||||
Other interest expense
|
(1
|
)
|
|
(1
|
)
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
%
|
|||||
Total interest expense
|
(52
|
)
|
|
(37
|
)
|
|
|
(12
|
)
|
|
(49
|
)
|
|
(3
|
)
|
|
6
|
%
|
|||||
Other income (expense)
|
(2
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)%
|
|||||
Other income (expenses), net - Corporate/Other
|
$
|
(52
|
)
|
|
$
|
(35
|
)
|
|
|
$
|
(11
|
)
|
|
$
|
(46
|
)
|
|
$
|
(6
|
)
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - unsecured senior notes
|
7.9
|
%
|
|
7.9
|
%
|
|
|
7.9
|
%
|
|
7.9
|
%
|
|
—
|
%
|
|
—
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 26.1. Corporate/Other Segment Results of Operations
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Corporate/Other - Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
11
|
|
|
$
|
—
|
|
|
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
10
|
|
|
1,000
|
%
|
Expenses
|
155
|
|
|
34
|
|
|
|
103
|
|
|
137
|
|
|
18
|
|
|
13
|
%
|
|||||
Other income (expenses), net
|
(157
|
)
|
|
(35
|
)
|
|
|
(78
|
)
|
|
(113
|
)
|
|
(44
|
)
|
|
39
|
%
|
|||||
Loss before income tax benefit
|
$
|
(301
|
)
|
|
$
|
(69
|
)
|
|
|
$
|
(180
|
)
|
|
$
|
(249
|
)
|
|
$
|
(52
|
)
|
|
21
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Corporate/Other - Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Salaries, wages and benefits
|
$
|
70
|
|
|
$
|
19
|
|
|
|
$
|
45
|
|
|
$
|
64
|
|
|
$
|
6
|
|
|
9
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operational expenses
|
55
|
|
|
8
|
|
|
|
54
|
|
|
62
|
|
|
(7
|
)
|
|
(11
|
)%
|
|||||
Depreciation and amortization
|
30
|
|
|
7
|
|
|
|
4
|
|
|
11
|
|
|
19
|
|
|
173
|
%
|
|||||
Total general and administrative
|
85
|
|
|
15
|
|
|
|
58
|
|
|
73
|
|
|
12
|
|
|
16
|
%
|
|||||
Total expenses - Corporate/Other
|
$
|
155
|
|
|
$
|
34
|
|
|
|
$
|
103
|
|
|
$
|
137
|
|
|
$
|
18
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Corporate/Other - Other Income (Expenses), Net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest income, legacy portfolio
|
$
|
6
|
|
|
$
|
2
|
|
|
|
$
|
7
|
|
|
$
|
9
|
|
|
$
|
(3
|
)
|
|
(33
|
)%
|
Other interest income
|
1
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
100
|
%
|
|||||
Total interest income
|
7
|
|
|
2
|
|
|
|
7
|
|
|
9
|
|
|
(2
|
)
|
|
(22
|
)%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, legacy portfolio
|
(1
|
)
|
|
—
|
|
|
|
(3
|
)
|
|
(3
|
)
|
|
2
|
|
|
(67
|
)%
|
|||||
Interest expense on unsecured senior notes
|
(153
|
)
|
|
(36
|
)
|
|
|
(77
|
)
|
|
(113
|
)
|
|
(40
|
)
|
|
35
|
%
|
|||||
Other interest expense
|
(8
|
)
|
|
(1
|
)
|
|
|
(3
|
)
|
|
(4
|
)
|
|
(4
|
)
|
|
100
|
%
|
|||||
Total interest expense
|
(162
|
)
|
|
(37
|
)
|
|
|
(83
|
)
|
|
(120
|
)
|
|
(42
|
)
|
|
35
|
%
|
|||||
Other income (expense)
|
(2
|
)
|
|
—
|
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
%
|
|||||
Other income (expenses), net - Corporate/Other
|
$
|
(157
|
)
|
|
$
|
(35
|
)
|
|
|
$
|
(78
|
)
|
|
$
|
(113
|
)
|
|
$
|
(44
|
)
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - unsecured senior notes
|
7.9
|
%
|
|
7.9
|
%
|
|
|
7.4
|
%
|
|
7.5
|
%
|
|
0.4
|
%
|
|
5
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 27. Legacy Portfolio Composition
|
|
Successor
|
||
|
December 31, 2018
|
||
Performing - UPB
|
$
|
145
|
|
Nonperforming (90+ delinquency) - UPB
|
27
|
|
|
REO - estimated fair value
|
4
|
|
|
Total legacy portfolio
|
$
|
176
|
|
Changes in Financial Position
|
Table 28. Changes in Assets
|
|
Successor
|
|
|
|
|
|||||||||
|
September 30, 2019
|
|
December 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Cash and cash equivalents
|
$
|
371
|
|
|
$
|
242
|
|
|
$
|
129
|
|
|
53
|
%
|
Mortgage servicing rights
|
3,346
|
|
|
3,676
|
|
|
(330
|
)
|
|
(9
|
)%
|
|||
Advances and other receivables, net
|
967
|
|
|
1,194
|
|
|
(227
|
)
|
|
(19
|
)%
|
|||
Reverse mortgage interests, net
|
6,662
|
|
|
7,934
|
|
|
(1,272
|
)
|
|
(16
|
)%
|
|||
Mortgage loans held for sale at fair value
|
4,267
|
|
|
1,631
|
|
|
2,636
|
|
|
162
|
%
|
|||
Deferred tax asset, net
|
1,032
|
|
|
967
|
|
|
65
|
|
|
7
|
%
|
|||
Other
|
1,833
|
|
|
1,329
|
|
|
504
|
|
|
38
|
%
|
|||
Total assets
|
$
|
18,478
|
|
|
$
|
16,973
|
|
|
$
|
1,505
|
|
|
9
|
%
|
Table 29. Changes in Liabilities and Stockholder’s Equity
|
|
Successor
|
|
|
|
|
|||||||||
|
September 30, 2019
|
|
December 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Unsecured senior notes, net
|
$
|
2,464
|
|
|
$
|
2,459
|
|
|
$
|
5
|
|
|
—
|
%
|
Advance facilities, net
|
513
|
|
|
595
|
|
|
(82
|
)
|
|
(14
|
)%
|
|||
Warehouse facilities, net
|
4,802
|
|
|
2,349
|
|
|
2,453
|
|
|
104
|
%
|
|||
MSR related liabilities - nonrecourse at fair value
|
1,328
|
|
|
1,216
|
|
|
112
|
|
|
9
|
%
|
|||
Other nonrecourse debt, net
|
5,533
|
|
|
6,795
|
|
|
(1,262
|
)
|
|
(19
|
)%
|
|||
Other liabilities
|
2,071
|
|
|
1,614
|
|
|
457
|
|
|
28
|
%
|
|||
Total liabilities
|
16,711
|
|
|
15,028
|
|
|
1,683
|
|
|
11
|
%
|
|||
Total stockholders’ equity
|
1,767
|
|
|
1,945
|
|
|
(178
|
)
|
|
(9
|
)%
|
|||
Total liabilities and stockholders’ equity
|
$
|
18,478
|
|
|
$
|
16,973
|
|
|
$
|
1,505
|
|
|
9
|
%
|
Liquidity and Capital Resources
|
Table 30. Operating Cash Flow
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(189
|
)
|
|
$
|
1,020
|
|
|
|
$
|
154
|
|
|
$
|
1,174
|
|
|
$
|
(1,363
|
)
|
|
(116
|
)%
|
Fair value changes in MSRs, MSR related liabilities and mortgage loans held for investment
|
820
|
|
|
(1
|
)
|
|
|
(80
|
)
|
|
(81
|
)
|
|
901
|
|
|
(1,112
|
)%
|
|||||
Deferred tax benefit
|
(53
|
)
|
|
(931
|
)
|
|
|
—
|
|
|
(931
|
)
|
|
878
|
|
|
(94
|
)%
|
|||||
Other non-cash adjustments to net loss
|
(930
|
)
|
|
(121
|
)
|
|
|
(388
|
)
|
|
(509
|
)
|
|
(421
|
)
|
|
83
|
%
|
|||||
Originations net sales activities
|
(1,580
|
)
|
|
(135
|
)
|
|
|
520
|
|
|
385
|
|
|
(1,965
|
)
|
|
(510
|
)%
|
|||||
Changes in working capital
|
1,904
|
|
|
344
|
|
|
|
2,088
|
|
|
2,432
|
|
|
(528
|
)
|
|
(22
|
)%
|
|||||
Net cash attributable to operating activities
|
$
|
(28
|
)
|
|
$
|
176
|
|
|
|
$
|
2,294
|
|
|
$
|
2,470
|
|
|
$
|
(2,498
|
)
|
|
(101
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 31. Investing Cash Flows
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
Acquisitions, net
|
$
|
(85
|
)
|
|
$
|
(33
|
)
|
|
|
$
|
—
|
|
|
$
|
(33
|
)
|
|
$
|
(52
|
)
|
|
158
|
%
|
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(454
|
)
|
|
(63
|
)
|
|
|
(134
|
)
|
|
(197
|
)
|
|
(257
|
)
|
|
130
|
%
|
|||||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
|
13
|
|
|
13
|
|
|
(13
|
)
|
|
(100
|
)%
|
|||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
298
|
|
|
60
|
|
|
|
—
|
|
|
60
|
|
|
238
|
|
|
397
|
%
|
|||||
Other
|
(38
|
)
|
|
(14
|
)
|
|
|
(41
|
)
|
|
(55
|
)
|
|
17
|
|
|
(31
|
)%
|
|||||
Net cash attributable to investing activities
|
$
|
(279
|
)
|
|
$
|
(50
|
)
|
|
|
$
|
(162
|
)
|
|
$
|
(212
|
)
|
|
$
|
(67
|
)
|
|
32
|
%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
Table 32. Financing Cash Flow
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|||||||||||||
|
Nine Months Ended September 30, 2019
|
|
Two Months Ended September 30, 2018
|
|
|
Seven Months Ended July 31, 2018
|
|
Combined(1)
|
|
$ Change
|
|
% Change
|
|||||||||||
(Decrease) increase in advance facilities
|
$
|
(95
|
)
|
|
$
|
46
|
|
|
|
$
|
(305
|
)
|
|
$
|
(259
|
)
|
|
$
|
164
|
|
|
(63
|
)%
|
Increase (decrease) in warehouse facilities
|
1,930
|
|
|
186
|
|
|
|
(585
|
)
|
|
(399
|
)
|
|
2,329
|
|
|
(584
|
)%
|
|||||
Repayment of notes payable
|
(294
|
)
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
(294
|
)
|
|
100
|
%
|
|||||
Payment of unsecured senior notes and nonrecourse debt
|
(37
|
)
|
|
(1,034
|
)
|
|
|
(93
|
)
|
|
(1,127
|
)
|
|
1,090
|
|
|
(97
|
)%
|
|||||
Issuance of excess spread financing
|
469
|
|
|
84
|
|
|
|
70
|
|
|
154
|
|
|
315
|
|
|
205
|
%
|
|||||
Repayment of excess spread financing
|
(19
|
)
|
|
(21
|
)
|
|
|
(3
|
)
|
|
(24
|
)
|
|
5
|
|
|
(21
|
)%
|
|||||
Settlements of excess spread financing
|
(163
|
)
|
|
(31
|
)
|
|
|
(105
|
)
|
|
(136
|
)
|
|
(27
|
)
|
|
20
|
%
|
|||||
Decrease in participating interest financing in reverse mortgage interests
|
(1,252
|
)
|
|
(358
|
)
|
|
|
(1,391
|
)
|
|
(1,749
|
)
|
|
497
|
|
|
(28
|
)%
|
|||||
Changes in HECM securitizations
|
(170
|
)
|
|
(91
|
)
|
|
|
311
|
|
|
220
|
|
|
(390
|
)
|
|
(177
|
)%
|
|||||
Other
|
19
|
|
|
(182
|
)
|
|
|
(10
|
)
|
|
(192
|
)
|
|
211
|
|
|
(110
|
)%
|
|||||
Net cash attributable to financing activities
|
$
|
388
|
|
|
$
|
(1,219
|
)
|
|
|
$
|
(2,111
|
)
|
|
$
|
(3,330
|
)
|
|
$
|
3,900
|
|
|
(117
|
)%
|
(1)
|
Refer to Basis of Presentation section for discussion on presentation of combined results.
|
▪
|
Base of $2.5 plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets.
|
▪
|
Tangible Net Worth/Total Assets greater than 6%.
|
▪
|
3.5 basis points of total Agency servicing (Fannie Mae, Freddie Mac, Ginnie Mae) plus,
|
▪
|
Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB,
|
▪
|
Allowable assets for liquidity may include: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines.
|
Table 33. Debt
|
|
Successor
|
||||||
|
September 30, 2019
|
|
December 31, 2018
|
||||
Advance facilities, net
|
$
|
513
|
|
|
$
|
595
|
|
Warehouse facilities, net
|
4,802
|
|
|
2,349
|
|
||
Unsecured senior notes, net
|
2,464
|
|
|
2,459
|
|
Table 34. Contractual Maturities - Unsecured Senior Notes
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021(1)
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Unsecured senior notes principal amount
|
|
2,498
|
|
|
Unamortized debt issuance costs, premium and discount
|
|
(34
|
)
|
|
Unsecured senior notes, net
|
|
$
|
2,464
|
|
(1)
|
This note does not include the subsequent pay down of $100 in principal balance in October 2019.
|
Critical Accounting Policies
|
Table 35. Change in Fair Value
|
|
September 30, 2019
|
||||||
Down 25 bps
|
|
Up 25 bps
|
|||||
Increase (decrease) in assets
|
|
|
|
||||
Mortgage servicing rights at fair value
|
$
|
(242
|
)
|
|
$
|
245
|
|
Mortgage loans held for sale at fair value
|
14
|
|
|
(17
|
)
|
||
Derivative financial instruments:
|
|
|
|
||||
Interest rate lock commitments
|
21
|
|
|
(28
|
)
|
||
Forward MBS trades
|
(14
|
)
|
|
17
|
|
||
Total change in assets
|
(221
|
)
|
|
217
|
|
||
Increase (decrease) in liabilities
|
|
|
|
||||
Mortgage servicing rights liabilities at fair value
|
(5
|
)
|
|
5
|
|
||
Excess spread financing at fair value
|
(49
|
)
|
|
51
|
|
||
Derivative financial instruments:
|
|
|
|
||||
Interest rate lock commitments
|
(4
|
)
|
|
5
|
|
||
Forward MBS trades
|
21
|
|
|
(27
|
)
|
||
Total change in liabilities
|
(37
|
)
|
|
34
|
|
||
Total, net change
|
$
|
(184
|
)
|
|
$
|
183
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
4.1
|
|
|
|
|
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
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
MR. COOPER GROUP INC.
|
|
|
|
November 1, 2019
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
November 1, 2019
|
|
/s/ Christopher G. Marshall
|
Date
|
|
Christopher G. Marshall
Vice Chairman & Chief Financial Officer
(Principal Financial and Accounting Officer)
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2019 of Mr. Cooper Group Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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):
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a.
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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
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b.
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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.
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Date:
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November 1, 2019
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/s/ Jay Bray
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Jay Bray
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Chief Executive Officer
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1.
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I have reviewed this Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2019 of Mr. Cooper Group Inc.;
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2.
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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;
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3.
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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;
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4.
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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:
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
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5.
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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):
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a.
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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
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b.
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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.
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Date:
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November 1, 2019
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/s/ Christopher G. Marshall
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Christopher G. Marshall
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Vice Chairman & Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 1, 2019
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/s/ Jay Bray
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Jay Bray
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Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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November 1, 2019
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/s/ Christopher G. Marshall
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Christopher G. Marshall
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Vice Chairman & Chief Financial Officer
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