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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
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Delaware
|
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45-2156869
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
|
|
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8950 Cypress Waters Blvd
Coppell, TX
|
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75019
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(Address of principal executive offices)
|
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(Zip Code)
|
|
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Large Accelerated Filer
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x
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Accelerated Filer
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¨
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Non-Accelerated Filer
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¨
(Do not check if a smaller reporting company.)
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Smaller reporting company
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¨
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June 30,
2015 |
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December 31,
2014 |
||||
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(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
562,939
|
|
|
$
|
299,002
|
|
Restricted cash
|
387,914
|
|
|
285,530
|
|
||
Mortgage servicing rights, $3,350,298 and $2,949,739 at fair value, respectively
|
3,360,322
|
|
|
2,961,321
|
|
||
Advances
|
2,348,114
|
|
|
2,546,362
|
|
||
Reverse mortgage interests
|
7,424,565
|
|
|
2,453,069
|
|
||
Mortgage loans held for sale
|
1,906,010
|
|
|
1,277,931
|
|
||
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,531, respectively
|
182,330
|
|
|
191,569
|
|
||
Property and equipment, net of accumulated depreciation of $87,468 and $69,721, respectively
|
134,155
|
|
|
129,611
|
|
||
Derivative financial instruments
|
108,265
|
|
|
91,051
|
|
||
Other assets
|
906,889
|
|
|
877,229
|
|
||
Total assets
|
$
|
17,321,503
|
|
|
$
|
11,112,675
|
|
Liabilities and stockholders' equity
|
|
|
|
||||
Unsecured senior notes
|
$
|
2,158,392
|
|
|
$
|
2,159,231
|
|
Advance facilities
|
1,826,452
|
|
|
1,901,783
|
|
||
Warehouse facilities
|
2,152,915
|
|
|
1,572,622
|
|
||
Payables and accrued liabilities
|
1,390,207
|
|
|
1,322,078
|
|
||
MSR related liabilities - nonrecourse
|
1,287,140
|
|
|
1,080,465
|
|
||
Mortgage servicing liabilities
|
47,775
|
|
|
65,382
|
|
||
Derivative financial instruments
|
7,859
|
|
|
18,525
|
|
||
Other nonrecourse debt
|
6,693,772
|
|
|
1,768,311
|
|
||
Total liabilities
|
15,564,512
|
|
|
9,888,397
|
|
||
Commitments and contingencies
|
—
|
|
|
—
|
|
||
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock at $0.01 par value - 1,000,000 shares authorized, 108,881 shares and 90,999 shares issued, respectively
|
1,084
|
|
|
910
|
|
||
Additional paid-in-capital
|
1,097,441
|
|
|
587,446
|
|
||
Retained earnings
|
669,303
|
|
|
643,059
|
|
||
Treasury shares; 858 shares and 602 shares at cost, respectively
|
(18,637
|
)
|
|
(12,433
|
)
|
||
Total Nationstar stockholders' equity
|
1,749,191
|
|
|
1,218,982
|
|
||
Noncontrolling interest
|
7,800
|
|
|
5,296
|
|
||
Total equity
|
1,756,991
|
|
|
1,224,278
|
|
||
Total liabilities and equity
|
$
|
17,321,503
|
|
|
$
|
11,112,675
|
|
|
For the three months ended June 30,
|
For the six months ended June 30,
|
||||||||||||
|
2015
|
|
2014
|
2015
|
|
2014
|
||||||||
Revenues:
|
|
|
|
|
|
|
||||||||
Service related
|
$
|
457,723
|
|
|
$
|
376,817
|
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$
|
672,846
|
|
|
$
|
718,528
|
|
Net gain on mortgage loans held for sale
|
163,886
|
|
|
172,916
|
|
330,880
|
|
|
300,852
|
|
||||
Total revenues
|
621,609
|
|
|
549,733
|
|
1,003,726
|
|
|
1,019,380
|
|
||||
Expenses:
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
198,356
|
|
|
154,052
|
|
377,112
|
|
|
310,647
|
|
||||
General and administrative
|
242,629
|
|
|
192,659
|
|
447,716
|
|
|
357,197
|
|
||||
Total expenses
|
440,985
|
|
|
346,711
|
|
824,828
|
|
|
667,844
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
||||||||
Interest income
|
87,155
|
|
|
42,941
|
|
130,929
|
|
|
86,884
|
|
||||
Interest expense
|
(147,863
|
)
|
|
(139,422
|
)
|
(263,511
|
)
|
|
(296,022
|
)
|
||||
Gain (loss) on interest rate swaps and caps
|
95
|
|
|
(953
|
)
|
(672
|
)
|
|
1,868
|
|
||||
Total other income (expense)
|
(60,613
|
)
|
|
(97,434
|
)
|
(133,254
|
)
|
|
(207,270
|
)
|
||||
Income before taxes
|
120,011
|
|
|
105,588
|
|
45,644
|
|
|
144,266
|
|
||||
Income tax expense
|
44,171
|
|
|
38,941
|
|
16,646
|
|
|
53,942
|
|
||||
Net income
|
75,840
|
|
|
66,647
|
|
28,998
|
|
|
90,324
|
|
||||
Less: Net gain (loss) attributable to noncontrolling interests
|
1,281
|
|
|
192
|
|
2,754
|
|
|
(167
|
)
|
||||
Net income attributable to Nationstar
|
74,559
|
|
|
66,455
|
|
26,244
|
|
|
90,491
|
|
||||
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
||||||||
Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively
|
—
|
|
|
—
|
|
—
|
|
|
(1,963
|
)
|
||||
Comprehensive income
|
$
|
74,559
|
|
|
$
|
66,455
|
|
$
|
26,244
|
|
|
$
|
88,528
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share:
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
0.69
|
|
|
$
|
0.74
|
|
$
|
0.27
|
|
|
$
|
1.01
|
|
Diluted earnings per share
|
$
|
0.69
|
|
|
$
|
0.74
|
|
$
|
0.26
|
|
|
$
|
1.01
|
|
Weighted average shares:
|
|
|
|
|
|
|
||||||||
Basic
|
107,521
|
|
|
89,465
|
|
98,864
|
|
|
89,404
|
|
||||
Dilutive effect of stock awards
|
368
|
|
|
729
|
|
548
|
|
|
592
|
|
||||
Diluted
|
107,889
|
|
|
90,194
|
|
99,412
|
|
|
89,996
|
|
||||
Dividends declared per share
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Common Stock Outstanding
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury shares
|
|
Accumulated Other Comprehensive Income
|
|
Total Nationstar Stockholders'
Equity
|
|
Non-controlling interests
|
|
Total
Equity
|
|||||||||||||||||
Balance at December 31, 2013
|
90,330
|
|
|
$
|
906
|
|
|
$
|
566,642
|
|
|
$
|
422,341
|
|
|
$
|
(6,944
|
)
|
|
$
|
1,963
|
|
|
$
|
984,908
|
|
|
$
|
4,990
|
|
|
$
|
989,898
|
|
Shares (including forfeitures) issued under incentive plan
|
1,271
|
|
|
4
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Change in the value of cash flow hedge, net of tax of $1,183
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,963
|
)
|
|
(1,963
|
)
|
|
—
|
|
|
(1,963
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
18,565
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,565
|
|
|
—
|
|
|
18,565
|
|
||||||||
Excess tax benefit from share-based compensation
|
—
|
|
|
—
|
|
|
2,243
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,243
|
|
|
—
|
|
|
2,243
|
|
||||||||
Shares acquired by Nationstar related to incentive compensation awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,489
|
)
|
|
—
|
|
|
(5,489
|
)
|
|
—
|
|
|
(5,489
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
220,718
|
|
|
—
|
|
|
—
|
|
|
220,718
|
|
|
306
|
|
|
221,024
|
|
||||||||
Balance at December 31, 2014
|
91,601
|
|
|
910
|
|
|
587,446
|
|
|
643,059
|
|
|
(12,433
|
)
|
|
—
|
|
|
1,218,982
|
|
|
5,296
|
|
|
1,224,278
|
|
||||||||
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Shares (including forfeitures) issued under incentive plan
|
633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Acquisition of non-controlling interest in subsidiaries
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(250
|
)
|
|
(250
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
11,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,313
|
|
|
—
|
|
|
11,313
|
|
||||||||
Issuance of common stock, net
|
17,500
|
|
|
175
|
|
|
497,586
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
497,761
|
|
|
—
|
|
|
497,761
|
|
||||||||
Excess tax benefit from share-based compensation
|
—
|
|
|
—
|
|
|
1,095
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,095
|
|
|
—
|
|
|
1,095
|
|
||||||||
Withholding tax related to share based settlement of common stock by management
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,204
|
)
|
|
—
|
|
|
(6,204
|
)
|
|
—
|
|
|
(6,204
|
)
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
26,244
|
|
|
—
|
|
|
—
|
|
|
26,244
|
|
|
2,754
|
|
|
28,998
|
|
||||||||
Balance at June 30, 2015
|
109,734
|
|
|
1,084
|
|
|
1,097,441
|
|
|
669,303
|
|
|
(18,637
|
)
|
|
—
|
|
|
1,749,191
|
|
|
7,800
|
|
|
1,756,991
|
|
|
For the six months ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
Operating Activities
|
|
|
|
||||
Net income attributable to Nationstar
|
$
|
26,244
|
|
|
$
|
90,491
|
|
Reconciliation of net income to net cash attributable to operating activities:
|
|
|
|
||||
Share-based compensation
|
11,313
|
|
|
6,868
|
|
||
Excess tax benefit from share-based compensation
|
(1,095
|
)
|
|
(2,189
|
)
|
||
Net gain on mortgage loans held for sale
|
(330,880
|
)
|
|
(300,852
|
)
|
||
Mortgage loans originated and purchased, net of fees
|
(9,883,868
|
)
|
|
(11,470,908
|
)
|
||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
|
9,429,885
|
|
|
12,089,338
|
|
||
Gain (loss) on interest rate swaps and caps
|
672
|
|
|
(1,868
|
)
|
||
Cash settlement on derivative financial instruments
|
—
|
|
|
1,352
|
|
||
Depreciation and amortization
|
26,627
|
|
|
20,401
|
|
||
Amortization (accretion) of premiums/discounts
|
(5,190
|
)
|
|
13,037
|
|
||
Fair value changes in excess spread financing
|
38,951
|
|
|
23,767
|
|
||
Fair value changes and amortization/accretion of mortgage servicing rights
|
183,042
|
|
|
123,573
|
|
||
Fair value change in mortgage servicing rights financing liability
|
9,640
|
|
|
(49,257
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Advances
|
217,638
|
|
|
769,754
|
|
||
Reverse mortgage interests
|
(124,449
|
)
|
|
(413,478
|
)
|
||
Other assets
|
65,637
|
|
|
223,116
|
|
||
Payables and accrued liabilities
|
38,697
|
|
|
(260,566
|
)
|
||
Net cash attributable to operating activities
|
(297,136
|
)
|
|
862,579
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Property and equipment additions, net of disposals
|
(27,051
|
)
|
|
(23,678
|
)
|
||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(500,041
|
)
|
|
(187,803
|
)
|
||
Purchase of reverse mortgage interests, net of participations sold
|
(4,815,684
|
)
|
|
—
|
|
||
Proceeds on sale of servicer advances
|
—
|
|
|
512,527
|
|
||
Acquisitions, net
|
(45,276
|
)
|
|
(18,000
|
)
|
||
Net cash attributable to investing activities
|
(5,388,052
|
)
|
|
283,046
|
|
|
For the six months ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
Financing Activities
|
|
|
|
||||
Transfers (to) / from restricted cash, net
|
(102,384
|
)
|
|
241,423
|
|
||
Issuance of common stock, net of issuance costs
|
497,761
|
|
|
—
|
|
||
Debt financing costs
|
(10,639
|
)
|
|
(9,153
|
)
|
||
Increase (decrease) in warehouse facilities
|
580,293
|
|
|
(1,380,793
|
)
|
||
Increase (decrease) in advance facilities
|
(75,331
|
)
|
|
(76,148
|
)
|
||
Proceeds from HECM securitizations
|
342,403
|
|
|
—
|
|
||
Repayment of HECM securitizations
|
(63,013
|
)
|
|
—
|
|
||
Issuance of excess spread financing
|
258,196
|
|
|
111,118
|
|
||
Repayment of excess spread financing
|
(100,228
|
)
|
|
(85,257
|
)
|
||
Increase in participating interest financing in reverse mortgage interests
|
4,633,093
|
|
|
192,355
|
|
||
Proceeds from mortgage servicing rights financing
|
—
|
|
|
52,835
|
|
||
Repayment of nonrecourse debt – Legacy assets
|
(5,917
|
)
|
|
(7,414
|
)
|
||
Excess tax benefit from share-based compensation
|
1,095
|
|
|
2,189
|
|
||
Surrender of shares relating to stock vesting
|
(6,204
|
)
|
|
(4,755
|
)
|
||
Net cash attributable to financing activities
|
5,949,125
|
|
|
(963,600
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
263,937
|
|
|
182,025
|
|
||
Cash and cash equivalents at beginning of period
|
299,002
|
|
|
441,902
|
|
||
Cash and cash equivalents at end of period
|
$
|
562,939
|
|
|
$
|
623,927
|
|
|
|
|
|
||||
Supplemental disclosures of cash activities
|
|
|
|
||||
Cash paid for interest expense
|
$
|
262,954
|
|
|
$
|
256,655
|
|
Net cash (received)/paid for income taxes
|
9,734
|
|
|
(25,540
|
)
|
||
Supplemental disclosures of non-cash activities
|
|
|
|
||||
Transfer of mortgage loans held for investment to REO at fair value
|
$
|
1,465
|
|
|
$
|
2,125
|
|
Mortgage servicing rights resulting from sale or securitization of mortgage loans
|
105,506
|
|
|
120,212
|
|
||
Payable to seller of forward mortgage servicing rights
|
13,492
|
|
|
25,060
|
|
MSRs and Related Liabilities
|
June 30, 2015
|
|
December 31, 2014
|
||||
MSRs - Fair Value
|
$
|
3,350,298
|
|
|
$
|
2,949,739
|
|
MSRs - LOCOM
|
10,024
|
|
|
11,582
|
|
||
Mortgage Servicing Rights
|
3,360,322
|
|
|
2,961,321
|
|
||
|
|
|
|
||||
Mortgage Servicing Liabilities
|
47,775
|
|
|
65,382
|
|
||
|
|
|
|
||||
Excess spread financing - fair value
|
1,228,070
|
|
|
1,031,035
|
|
||
Mortgage servicing rights financing liability - fair value
|
59,070
|
|
|
49,430
|
|
||
MSR Related Liabilities (nonrecourse)
|
$
|
1,287,140
|
|
|
$
|
1,080,465
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit Sensitive
|
$
|
247,720,305
|
|
|
$
|
2,171,954
|
|
|
241,769,601
|
|
|
1,919,290
|
|
||
Interest Sensitive
|
105,686,989
|
|
|
1,178,344
|
|
|
91,843,044
|
|
|
1,030,449
|
|
||||
|
$
|
353,407,294
|
|
|
$
|
3,350,298
|
|
|
$
|
333,612,645
|
|
|
$
|
2,949,739
|
|
|
For the six months ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
Fair value at the beginning of the period
|
2,949,739
|
|
|
2,488,283
|
|
||
Additions:
|
|
|
|
||||
Servicing resulting from transfers of financial assets
|
105,506
|
|
|
120,212
|
|
||
Purchases of servicing assets
|
494,145
|
|
|
193,677
|
|
||
Changes in fair value:
|
|
|
|
||||
Due to changes in valuation inputs or assumptions used in the valuation model
|
18,347
|
|
|
24,821
|
|
||
Other changes in fair value
|
(217,439
|
)
|
|
(148,859
|
)
|
||
Fair value at the end of the period
|
$
|
3,350,298
|
|
|
$
|
2,678,134
|
|
Credit Sensitive
|
June 30, 2015
|
|
December 31, 2014
|
||
Discount rate
|
11.66
|
%
|
|
11.96
|
%
|
Total prepayment speeds
|
17.05
|
%
|
|
18.58
|
%
|
Expected weighted-average life
|
5.91 years
|
|
|
5.39 years
|
|
Interest Sensitive
|
June 30, 2015
|
|
December 31, 2014
|
||
Discount rate
|
9.10
|
%
|
|
9.09
|
%
|
Total prepayment speeds
|
11.68
|
%
|
|
11.27
|
%
|
Expected weighted-average life
|
6.38 years
|
|
|
6.49 years
|
|
|
Discount Rate
|
|
Total Prepayment
Speeds
|
||||||||||||
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
June 30, 2015
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(135,060
|
)
|
|
$
|
(247,779
|
)
|
|
$
|
(130,260
|
)
|
|
$
|
(249,466
|
)
|
December 31, 2014
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(110,900
|
)
|
|
$
|
(207,295
|
)
|
|
$
|
(112,603
|
)
|
|
$
|
(199,078
|
)
|
|
For the six months ended June 30,
|
||||||||||||||
|
2015
|
|
2014
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Activity of MSRs at amortized cost
|
|
|
|
|
|
|
|
||||||||
Balance at the beginning of the period
|
$
|
11,582
|
|
|
$
|
65,382
|
|
|
$
|
14,879
|
|
|
$
|
82,521
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Purchase /Assumptions of servicing rights/obligations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Amortization/Accretion
|
(1,558
|
)
|
|
(17,607
|
)
|
|
(1,564
|
)
|
|
(2,029
|
)
|
||||
Balance at end of the period
|
$
|
10,024
|
|
|
$
|
47,775
|
|
|
$
|
13,315
|
|
|
$
|
80,492
|
|
Fair value at end of period
|
$
|
31,636
|
|
|
$
|
39,042
|
|
|
$
|
36,997
|
|
|
$
|
62,680
|
|
Excess Spread financing
|
Prepayment Speeds
|
|
Average
Life (years) |
|
Discount
Rate |
|
Recapture Rate
|
June 30, 2015
|
|
|
|
|
|
|
|
Low
|
7.2%
|
|
3.9 years
|
|
8.5%
|
|
6.8%
|
High
|
17.3%
|
|
8.6 years
|
|
14.2%
|
|
30.3%
|
December 31, 2014
|
|
|
|
|
|
|
|
Low
|
6.2%
|
|
4.0 years
|
|
8.5%
|
|
6.7%
|
High
|
19.4%
|
|
7.1 years
|
|
14.2%
|
|
31.3%
|
|
Discount Rate
|
|
Total Prepayment
Speeds
|
||||||||||
|
100 bps
Adverse
Change
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
20%
Adverse
Change
|
||||||||
June 30, 2015
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
40,932
|
|
$
|
86,191
|
|
|
$
|
33,607
|
|
$
|
71,308
|
|
December 31, 2014
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
36,632
|
|
$
|
75,964
|
|
|
$
|
33,618
|
|
$
|
70,379
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||
Advance financing rates
|
2.79
|
%
|
|
2.79
|
%
|
Annual advance recovery rates
|
24.67
|
%
|
|
27.55
|
%
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
|
|
|
|
|
|
||
Advances
|
$
|
2,348,114
|
|
|
$
|
2,546,362
|
|
|
|||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||
Participating interests
|
$
|
6,015,287
|
|
|
$
|
1,363,225
|
|
Other interests securitized
|
548,276
|
|
|
341,268
|
|
||
Unsecuritized interests
|
874,388
|
|
|
752,801
|
|
||
Allowance for losses - reverse mortgage interests
|
(13,386
|
)
|
|
(4,225
|
)
|
||
Total reverse mortgage interests
|
$
|
7,424,565
|
|
|
$
|
2,453,069
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Mortgage loans held for sale – unpaid principal balance
|
$
|
1,854,736
|
|
|
$
|
1,218,596
|
|
Mark-to-market adjustment
(1)
|
51,274
|
|
|
59,335
|
|
||
Total mortgage loans held for sale
|
$
|
1,906,010
|
|
|
$
|
1,277,931
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||
Mortgage loans held for sale - unpaid principal balance
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Nonaccrual
|
$
|
27,381
|
|
|
$
|
24,812
|
|
|
$
|
31,968
|
|
|
$
|
26,022
|
|
Mortgage loans held for sale - unpaid principal balance
|
June 30, 2015
|
|
December 31, 2014
|
||||
Foreclosure
|
$
|
15,706
|
|
|
$
|
17,493
|
|
|
For the six months ended
|
||||||
|
June 30, 2015
|
|
June 30, 2014
|
||||
Mortgage loans held for sale – beginning balance
|
$
|
1,277,931
|
|
|
$
|
2,603,380
|
|
Mortgage loans originated and purchased, net of fees
|
9,854,949
|
|
|
11,470,908
|
|
||
Proceeds on sale of and payments of mortgage loans held for sale
|
(9,420,331
|
)
|
|
(12,089,338
|
)
|
||
Gain on Sale of Mortgage Loans
(1)
|
196,727
|
|
|
241,971
|
|
||
Transfer of mortgage loans held for sale to held for investment or other assets
|
(3,266
|
)
|
|
(2,100
|
)
|
||
Mortgage loans held for sale – ending balance
|
$
|
1,906,010
|
|
|
$
|
2,224,821
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Mortgage loans held for investment, net – unpaid principal balance
|
|
$
|
263,581
|
|
|
$
|
276,820
|
|
Transfer discount:
|
|
|
|
|
||||
Accretable
|
|
(13,825
|
)
|
|
(15,503
|
)
|
||
Non-accretable
|
|
(63,877
|
)
|
|
(66,217
|
)
|
||
Allowance for loan losses
|
|
(3,549
|
)
|
|
(3,531
|
)
|
||
Total mortgage loans held for investment, net
|
|
$
|
182,330
|
|
|
$
|
191,569
|
|
|
For the six months ended June 30, 2015
|
|
For the year ended December 31, 2014
|
||||
Accretable Yield
|
|
|
|
||||
Balance at the beginning of the period
|
$
|
15,503
|
|
|
$
|
17,362
|
|
Accretion
|
(1,406
|
)
|
|
(2,955
|
)
|
||
Reclassifications from (to) nonaccretable discount
|
(272
|
)
|
|
1,096
|
|
||
Balance at the end of the period
|
$
|
13,825
|
|
|
$
|
15,503
|
|
Mortgage loans held for investment - unpaid principal balance
|
June 30, 2015
|
|
December 31, 2014
|
||||
Foreclosure
|
$
|
47,688
|
|
|
$
|
52,769
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Receivables from trusts, agencies and prior servicers, net
|
$
|
389,583
|
|
|
$
|
386,166
|
|
Accrued revenues
|
161,110
|
|
|
154,436
|
|
||
Loans subject to repurchase right from Ginnie Mae
|
133,928
|
|
|
131,592
|
|
||
Goodwill
|
68,479
|
|
|
54,701
|
|
||
Deferred financing costs
|
49,344
|
|
|
46,986
|
|
||
Intangible assets
|
46,633
|
|
|
19,622
|
|
||
Prepaid expenses
|
12,559
|
|
|
9,837
|
|
||
Accrued interest
|
1,644
|
|
|
1,890
|
|
||
Real estate owned (REO), net
|
1,713
|
|
|
1,625
|
|
||
Other
|
41,896
|
|
|
70,374
|
|
||
Total other assets
|
$
|
906,889
|
|
|
$
|
877,229
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Advance Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
MBS advance financing facility
|
LIBOR+2.50% to 4.00%
|
|
March 2016
|
|
Servicing advance receivables
|
|
$
|
130,000
|
|
|
$
|
63,770
|
|
|
$
|
69,505
|
|
|
$
|
363,014
|
|
|
$
|
418,126
|
|
Securities repurchase facility (2011)
|
LIBOR +3.50%
|
|
90 day revolving
|
|
Nonrecourse debt - Legacy Assets
|
|
—
|
|
|
35,058
|
|
|
55,603
|
|
|
34,613
|
|
|
55,603
|
|
|||||
Nationstar agency advance financing facility
(1)
|
LIBOR+1.20% to 3.75%
|
|
October 2015
|
|
Servicing advance receivables
|
|
1,300,000
|
|
|
1,061,500
|
|
|
1,195,152
|
|
|
805,706
|
|
|
885,115
|
|
|||||
MBS advance financing facility (2012)
|
LIBOR+5.00%
|
|
April 2016
|
|
Servicing advance receivables
|
|
50,000
|
|
|
45,510
|
|
|
54,441
|
|
|
42,472
|
|
|
50,758
|
|
|||||
Nationstar Mortgage Advance Receivable
Trust |
LIBOR+1.15% to 5.30%
|
|
June 2018
|
|
Servicing advance receivables
|
|
500,000
|
|
|
411,563
|
|
|
475,978
|
|
|
419,170
|
|
|
471,243
|
|
|||||
MBS servicer advance facility (2014)
|
LIBOR+3.50%
|
|
September 2015
|
|
Servicing advance receivables
|
|
100,000
|
|
|
99,820
|
|
|
166,954
|
|
|
79,084
|
|
|
138,010
|
|
|||||
Nationstar servicer advance receivables trust 2014 - BC
|
LIBOR+1.50% to 3.00%
|
|
November 2015
|
|
Servicing advance receivables
|
|
200,000
|
|
|
109,231
|
|
|
120,719
|
|
|
106,115
|
|
|
121,030
|
|
|||||
Securities repurchase facility (2014)
|
LIBOR+1.50% to 2.00%
|
|
November 2017
|
|
Securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51,609
|
|
|
74,525
|
|
|||||
|
|
$
|
1,826,452
|
|
|
$
|
2,138,352
|
|
|
$
|
1,901,783
|
|
|
$
|
2,214,410
|
|
|||||||||
|
|
||||||||||||||||||||||||
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||||||||||||
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Warehouse Facilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
$1.3 billion warehouse facility
|
LIBOR+2.00% to 2.875%
|
|
October 2015
|
|
Mortgage loans or MBS
|
|
$
|
1,300,000
|
|
|
$
|
710,840
|
|
|
$
|
757,426
|
|
|
$
|
663,167
|
|
|
$
|
697,257
|
|
$1.0 billion warehouse facility
|
LIBOR+1.75% to 3.25%
|
|
June 2016
|
|
Mortgage loans or MBS
|
|
1,000,000
|
|
|
619,540
|
|
|
675,637
|
|
|
307,294
|
|
|
320,285
|
|
|||||
$500 million warehouse facility
|
LIBOR+1.75% to 2.75%
|
|
September 2015
|
|
Mortgage loans or MBS
|
|
500,000
|
|
|
299,800
|
|
|
307,209
|
|
|
176,194
|
|
|
179,994
|
|
|||||
$500 million warehouse facility
|
LIBOR+ 1.50% to 2.00%
|
|
July 2015
|
|
Mortgage loans or MBS
|
|
500,000
|
|
|
292,608
|
|
|
310,047
|
|
|
183,290
|
|
|
192,990
|
|
|||||
$350 million warehouse facility
|
LIBOR+2.20% to 4.50%
|
|
March 2016
|
|
Mortgage loans or MBS
|
|
350,000
|
|
|
115,443
|
|
|
124,151
|
|
|
210,049
|
|
|
223,849
|
|
|||||
$200 million warehouse facility
|
LIBOR+1.50%
|
|
April 2016
|
|
Mortgage loans or MBS
|
|
200,000
|
|
|
40,029
|
|
|
42,560
|
|
|
—
|
|
|
—
|
|
|||||
$75 million warehouse facility (HCM)
(2)
|
LIBOR+ 2.25% to 2.875%
|
|
October 2015
|
|
Mortgage loans or MBS
|
|
75,000
|
|
|
49,337
|
|
|
51,944
|
|
|
23,949
|
|
|
29,324
|
|
|||||
$50 million warehouse facility (HCM)
|
LIBOR + 2.50% to 2.75%
|
|
November 2015
|
|
Mortgage loans or MBS
|
|
50,000
|
|
|
25,318
|
|
|
26,381
|
|
|
8,679
|
|
|
9,044
|
|
|||||
ASAP+ facility
|
LIBOR+1.50%
|
|
Up to 45 days
|
|
GSE mortgage loans or GSE MBS
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
$
|
2,152,915
|
|
|
$
|
2,295,355
|
|
|
$
|
1,572,622
|
|
|
$
|
1,652,743
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans
|
|
|
|
|
|
|
|
|
$
|
1,735,473
|
|
|
$
|
1,842,445
|
|
|
$
|
1,196,956
|
|
|
$
|
1,241.043
|
|
||
Reverse mortgage interests
|
|
|
|
|
|
|
|
|
$
|
417,442
|
|
|
$
|
452,910
|
|
|
$
|
375,666
|
|
|
$
|
411,700
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018
|
$
|
475,000
|
|
|
$
|
475,000
|
|
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019
|
378,153
|
|
|
378,555
|
|
||
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020
|
400,495
|
|
|
400,541
|
|
||
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021
|
604,745
|
|
|
605,135
|
|
||
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022
|
300,000
|
|
|
300,000
|
|
||
Total
|
$
|
2,158,392
|
|
|
$
|
2,159,231
|
|
Year
|
Amount
|
||
2015
|
$
|
—
|
|
2016
|
—
|
|
|
2017
|
—
|
|
|
2018
|
475,000
|
|
|
2019
|
375,000
|
|
|
Thereafter
|
1,300,000
|
|
|
Total
|
$
|
2,150,000
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Participating interest financing
|
$
|
6,084,064
|
|
|
$
|
1,433,145
|
|
2014-1 HECM securitization
|
275,138
|
|
|
259,328
|
|
||
2015-1 HECM securitization
|
263,901
|
|
|
—
|
|
||
Nonrecourse debt - Legacy Assets
|
70,669
|
|
|
75,838
|
|
||
Total
|
$
|
6,693,772
|
|
|
$
|
1,768,311
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Payables to servicing and subservicing investors
|
$
|
416,383
|
|
|
$
|
329,306
|
|
Accrued interest
|
60,550
|
|
|
59,708
|
|
||
Loans subject to repurchase from Ginnie Mae
|
133,928
|
|
|
131,592
|
|
||
Taxes
|
101,810
|
|
|
96,237
|
|
||
Payable to insurance carriers and insurance cancellation reserves
|
104,749
|
|
|
163,381
|
|
||
Accrued bonus and payroll
|
74,923
|
|
|
85,366
|
|
||
Repurchase reserves
|
28,831
|
|
|
29,165
|
|
||
MSR purchases payable including advances
|
23,098
|
|
|
45,697
|
|
||
Other
|
445,935
|
|
|
381,626
|
|
||
Total payables and accrued liabilities
|
$
|
1,390,207
|
|
|
$
|
1,322,078
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
169,827
|
|
|
$
|
11,956
|
|
|
$
|
90,068
|
|
|
$
|
15,578
|
|
Reverse mortgage interests
|
—
|
|
|
6,563,553
|
|
|
—
|
|
|
1,642,789
|
|
||||
Advances
|
1,791,849
|
|
|
—
|
|
|
1,477,388
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
181,154
|
|
|
—
|
|
|
189,456
|
|
|
—
|
|
||||
Derivative financial instruments
|
—
|
|
|
—
|
|
|
865
|
|
|
—
|
|
||||
Other assets
|
2,726
|
|
|
—
|
|
|
2,678
|
|
|
—
|
|
||||
Total Assets
|
$
|
2,145,556
|
|
|
$
|
6,575,509
|
|
|
$
|
1,760,455
|
|
|
$
|
1,658,367
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Advance facilities
|
$
|
1,582,294
|
|
|
$
|
—
|
|
|
$
|
1,330,991
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
1,799
|
|
|
377
|
|
|
1,596
|
|
|
186
|
|
||||
Nonrecourse debt–Legacy Assets
|
70,669
|
|
|
—
|
|
|
75,838
|
|
|
—
|
|
||||
2014-1 HECM Securitization
|
—
|
|
|
275,138
|
|
|
—
|
|
|
259,328
|
|
||||
2015-1 HECM Securitization
|
—
|
|
|
263,901
|
|
|
—
|
|
|
—
|
|
||||
Participating interest financing
|
—
|
|
|
6,084,064
|
|
|
—
|
|
|
1,433,145
|
|
||||
Total Liabilities
|
$
|
1,654,762
|
|
|
$
|
6,623,480
|
|
|
$
|
1,408,425
|
|
|
$
|
1,692,659
|
|
|
June 30, 2015
|
|
December 31, 2014
|
||||
Total collateral balances
|
$
|
3,027,803
|
|
|
$
|
3,258,472
|
|
Total certificate balances
|
3,062,887
|
|
|
3,297,256
|
|
Principal Amount of Loans 60 Days or More Past Due
|
June 30, 2015
|
|
June 30, 2014
|
||||
Unconsolidated securitization trusts
|
$
|
730,235
|
|
|
$
|
936,178
|
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
Credit Losses
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
Unconsolidated securitization trusts
|
$
|
57,759
|
|
|
$
|
80,890
|
|
|
$
|
115,220
|
|
|
$
|
147,432
|
|
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
2015
|
|
2014
|
|
2015
|
|
2014
|
|||||||||
Tax expense
|
$
|
44,171
|
|
|
$
|
38,941
|
|
|
$
|
16,646
|
|
|
$
|
53,942
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
36.8
|
%
|
|
36.9
|
%
|
|
36.5
|
%
|
|
37.4
|
%
|
|
|
|
June 30, 2015
|
||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,906,010
|
|
|
$
|
—
|
|
|
$
|
1,906,010
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
3,350,298
|
|
|
—
|
|
|
—
|
|
|
3,350,298
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
81,205
|
|
|
—
|
|
|
81,205
|
|
|
—
|
|
||||
Forward MBS trades
|
22,864
|
|
|
—
|
|
|
22,864
|
|
|
—
|
|
||||
LPCs
|
4,196
|
|
|
—
|
|
|
4,196
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,364,573
|
|
|
$
|
—
|
|
|
$
|
2,014,275
|
|
|
$
|
3,350,298
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
206
|
|
|
—
|
|
|
206
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
57
|
|
|
—
|
|
|
57
|
|
|
—
|
|
||||
Forward MBS trades
|
3,691
|
|
|
—
|
|
|
3,691
|
|
|
—
|
|
||||
LPCs
|
3,787
|
|
|
—
|
|
|
3,787
|
|
|
—
|
|
||||
Eurodollar futures
|
118
|
|
|
—
|
|
|
118
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
59,070
|
|
|
—
|
|
|
—
|
|
|
59,070
|
|
||||
Excess spread financing
|
1,228,070
|
|
|
—
|
|
|
—
|
|
|
1,228,070
|
|
||||
Total liabilities
|
$
|
1,294,999
|
|
|
$
|
—
|
|
|
$
|
7,859
|
|
|
$
|
1,287,140
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
December 31, 2014
|
||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
ASSETS
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,277,931
|
|
|
$
|
—
|
|
|
$
|
1,277,931
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
2,949,739
|
|
|
—
|
|
|
—
|
|
|
2,949,739
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
87,902
|
|
|
—
|
|
|
87,902
|
|
|
—
|
|
||||
Forward MBS trades
|
284
|
|
|
—
|
|
|
284
|
|
|
—
|
|
||||
LPCs
|
1,999
|
|
|
—
|
|
|
1,999
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
865
|
|
|
—
|
|
|
865
|
|
|
—
|
|
||||
Eurodollar futures
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Total assets
|
$
|
4,318,721
|
|
|
$
|
—
|
|
|
$
|
1,368,982
|
|
|
$
|
2,949,739
|
|
LIABILITIES
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
Interest rate swaps and caps
|
103
|
|
|
—
|
|
|
103
|
|
|
—
|
|
||||
Forward MBS trades
|
18,360
|
|
|
—
|
|
|
18,360
|
|
|
—
|
|
||||
LPCs
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
||||
Eurodollar futures
|
7
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
49,430
|
|
|
—
|
|
|
—
|
|
|
49,430
|
|
||||
Excess spread financing
|
1,031,035
|
|
|
—
|
|
|
—
|
|
|
1,031,035
|
|
||||
Total liabilities
|
$
|
1,098,990
|
|
|
$
|
—
|
|
|
$
|
18,525
|
|
|
$
|
1,080,465
|
|
(1)
|
Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.
|
|
ASSETS
|
|
LIABILITIES
|
||||||||
For the six months ended June 30, 2015
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Beginning balance
|
$
|
2,949,739
|
|
|
$
|
1,031,035
|
|
|
$
|
49,430
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total gains or losses
|
|
|
|
|
|
||||||
Included in earnings
|
(199,092
|
)
|
|
38,951
|
|
|
9,640
|
|
|||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
494,145
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
105,506
|
|
|
258,196
|
|
|
—
|
|
|||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(100,112
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
3,350,298
|
|
|
$
|
1,228,070
|
|
|
$
|
59,070
|
|
|
ASSETS
|
|
LIABILITIES
|
||||||||
For the year ended December 31, 2014
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Beginning balance
|
$
|
2,488,283
|
|
|
$
|
986,410
|
|
|
$
|
29,874
|
|
Transfers into Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total gains or losses
|
|
|
|
|
|
||||||
Included in earnings
|
(247,379
|
)
|
|
57,554
|
|
|
(33,279
|
)
|
|||
Included in other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
470,543
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
238,292
|
|
|
171,317
|
|
|
52,835
|
|
|||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(184,246
|
)
|
|
—
|
|
|||
Ending balance
|
$
|
2,949,739
|
|
|
$
|
1,031,035
|
|
|
$
|
49,430
|
|
|
June 30, 2015
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
562,939
|
|
|
$
|
562,939
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
387,914
|
|
|
387,914
|
|
|
—
|
|
|
—
|
|
||||
Mortgage loans held for sale
|
1,906,010
|
|
|
—
|
|
|
1,906,010
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
182,330
|
|
|
—
|
|
|
—
|
|
|
181,820
|
|
||||
Reverse mortgage interests
|
7,424,565
|
|
|
—
|
|
|
—
|
|
|
7,453,656
|
|
||||
Derivative financial instruments
|
108,265
|
|
|
—
|
|
|
108,265
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Unsecured Senior Notes
|
2,158,392
|
|
|
2,127,684
|
|
|
—
|
|
|
—
|
|
||||
Advance Facilities
|
1,826,452
|
|
|
—
|
|
|
1,826,452
|
|
|
—
|
|
||||
Warehouse Facilities
|
2,152,915
|
|
|
—
|
|
|
2,152,915
|
|
|
—
|
|
||||
Derivative financial instruments
|
7,859
|
|
|
—
|
|
|
7,859
|
|
|
—
|
|
||||
Excess spread financing
|
1,228,070
|
|
|
—
|
|
|
—
|
|
|
1,228,070
|
|
||||
Mortgage servicing rights financing liability
|
59,070
|
|
|
—
|
|
|
—
|
|
|
59,070
|
|
||||
Nonrecourse debt - Legacy assets
|
70,669
|
|
|
—
|
|
|
—
|
|
|
81,335
|
|
||||
Participating interest financing
|
6,084,064
|
|
|
—
|
|
|
6,073,412
|
|
|
—
|
|
||||
2014-1 HECM Securitization
|
275,138
|
|
|
—
|
|
|
—
|
|
|
287,801
|
|
||||
2015-1 HECM Securitization
|
263,901
|
|
|
—
|
|
|
—
|
|
|
256,988
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2014
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
299,002
|
|
|
$
|
299,002
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
285,530
|
|
|
285,530
|
|
|
—
|
|
|
—
|
|
||||
Mortgage loans held for sale
|
1,277,931
|
|
|
—
|
|
|
1,277,931
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
191,569
|
|
|
—
|
|
|
—
|
|
|
192,865
|
|
||||
Reverse mortgage interests
|
2,453,069
|
|
|
—
|
|
|
—
|
|
|
2,432,735
|
|
||||
Derivative financial instruments
|
91,051
|
|
|
—
|
|
|
91,051
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Unsecured Senior Notes
|
2,159,231
|
|
|
2,057,038
|
|
|
—
|
|
|
—
|
|
||||
Advance Facilities
|
1,901,783
|
|
|
—
|
|
|
1,901,783
|
|
|
—
|
|
||||
Warehouse Facilities
|
1,572,622
|
|
|
—
|
|
|
1,572,622
|
|
|
—
|
|
||||
Derivative financial instruments
|
18,525
|
|
|
—
|
|
|
18,525
|
|
|
—
|
|
||||
Excess spread financing
|
1,031,035
|
|
|
—
|
|
|
—
|
|
|
1,031,035
|
|
||||
Mortgage servicing rights financing liability
|
49,430
|
|
|
—
|
|
|
—
|
|
|
49,430
|
|
||||
Nonrecourse debt - Legacy assets
|
75,838
|
|
|
—
|
|
|
—
|
|
|
86,570
|
|
||||
Participating interest financing
|
1,433,145
|
|
|
—
|
|
|
1,423,291
|
|
|
—
|
|
||||
2014-1 HECM Securitization
|
259,328
|
|
|
—
|
|
|
—
|
|
|
259,328
|
|
|
|
For the three months ended June 30, 2015
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating
Segments |
|
Corporate and Other
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related
|
|
$
|
320,654
|
|
|
$
|
13,428
|
|
|
$
|
122,004
|
|
|
$
|
456,086
|
|
|
$
|
1,855
|
|
|
$
|
(218
|
)
|
|
$
|
457,723
|
|
Net gain on mortgage loans held for sale
|
|
7,837
|
|
|
156,085
|
|
|
—
|
|
|
163,922
|
|
|
(36
|
)
|
|
—
|
|
|
163,886
|
|
|||||||
Total revenues
|
|
328,491
|
|
|
169,513
|
|
|
122,004
|
|
|
620,008
|
|
|
1,819
|
|
|
(218
|
)
|
|
621,609
|
|
|||||||
Total expenses
|
|
209,540
|
|
|
117,159
|
|
|
94,433
|
|
|
421,132
|
|
|
19,853
|
|
|
—
|
|
|
440,985
|
|
|||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
66,922
|
|
|
16,862
|
|
|
—
|
|
|
83,784
|
|
|
3,153
|
|
|
218
|
|
|
87,155
|
|
|||||||
Interest expense
|
|
(90,191
|
)
|
|
(14,854
|
)
|
|
(29
|
)
|
|
(105,074
|
)
|
|
(42,789
|
)
|
|
—
|
|
|
(147,863
|
)
|
|||||||
Gain (loss) on interest rate swaps and caps
|
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
11
|
|
|
—
|
|
|
95
|
|
|||||||
Total other income (expense)
|
|
(23,184
|
)
|
|
2,008
|
|
|
(29
|
)
|
|
(21,205
|
)
|
|
(39,625
|
)
|
|
218
|
|
|
(60,613
|
)
|
|||||||
Income (loss) before taxes
|
|
$
|
95,767
|
|
|
$
|
54,362
|
|
|
$
|
27,542
|
|
|
$
|
177,671
|
|
|
$
|
(57,659
|
)
|
|
$
|
—
|
|
|
$
|
120,011
|
|
Depreciation and amortization
|
|
$
|
4,420
|
|
|
$
|
3,006
|
|
|
$
|
3,950
|
|
|
$
|
11,376
|
|
|
$
|
2,397
|
|
|
$
|
—
|
|
|
$
|
13,773
|
|
Total assets
|
|
14,423,073
|
|
|
1,879,284
|
|
|
271,056
|
|
|
16,573,413
|
|
|
748,090
|
|
|
—
|
|
|
17,321,503
|
|
|
|
For the three months ended June 30, 2014
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating
Segments |
|
Corporate and Other
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related
|
|
$
|
283,645
|
|
|
$
|
13,901
|
|
|
$
|
79,492
|
|
|
$
|
377,038
|
|
|
$
|
147
|
|
|
$
|
(368
|
)
|
|
$
|
376,817
|
|
Net gain on mortgage loans held for sale
|
|
22,094
|
|
|
151,201
|
|
|
—
|
|
|
173,295
|
|
|
(379
|
)
|
|
—
|
|
|
172,916
|
|
|||||||
Total revenues
|
|
305,739
|
|
|
165,102
|
|
|
79,492
|
|
|
550,333
|
|
|
(232
|
)
|
|
(368
|
)
|
|
549,733
|
|
|||||||
Total expenses
|
|
187,447
|
|
|
97,084
|
|
|
43,753
|
|
|
328,284
|
|
|
18,427
|
|
|
—
|
|
|
346,711
|
|
|||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
22,158
|
|
|
17,327
|
|
|
—
|
|
|
39,485
|
|
|
3,088
|
|
|
368
|
|
|
42,941
|
|
|||||||
Interest expense
|
|
(70,014
|
)
|
|
(16,711
|
)
|
|
(90
|
)
|
|
(86,815
|
)
|
|
(52,607
|
)
|
|
—
|
|
|
(139,422
|
)
|
|||||||
Gain (loss) on interest rate swaps and caps
|
|
(953
|
)
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|||||||
Total other income (expense)
|
|
(48,809
|
)
|
|
616
|
|
|
(90
|
)
|
|
(48,283
|
)
|
|
(49,519
|
)
|
|
368
|
|
|
(97,434
|
)
|
|||||||
Income (loss) before taxes
|
|
$
|
69,483
|
|
|
$
|
68,634
|
|
|
$
|
35,649
|
|
|
$
|
173,766
|
|
|
$
|
(68,178
|
)
|
|
$
|
—
|
|
|
$
|
105,588
|
|
Depreciation and amortization
|
|
$
|
4,513
|
|
|
$
|
3,469
|
|
|
$
|
1,078
|
|
|
$
|
9,060
|
|
|
$
|
2,549
|
|
|
—
|
|
|
$
|
11,609
|
|
|
Total assets
|
|
7,622,720
|
|
|
$
|
2,474,838
|
|
|
55,441
|
|
|
10,152,999
|
|
|
1,014,775
|
|
|
$
|
—
|
|
|
11,167,774
|
|
|
|
For the six months ended June 30, 2015
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating
Segments |
|
Corporate and Other
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related
|
|
$
|
420,649
|
|
|
$
|
20,490
|
|
|
$
|
229,790
|
|
|
$
|
670,929
|
|
|
$
|
2,358
|
|
|
$
|
(440
|
)
|
|
$
|
672,846
|
|
Net gain on mortgage loans held for sale
|
|
21,850
|
|
|
307,369
|
|
|
—
|
|
|
329,219
|
|
|
1,661
|
|
|
—
|
|
|
330,880
|
|
|||||||
Total revenues
|
|
442,499
|
|
|
327,859
|
|
|
229,790
|
|
|
1,000,148
|
|
|
4,019
|
|
|
(440
|
)
|
|
1,003,726
|
|
|||||||
Total expenses
|
|
391,936
|
|
|
217,409
|
|
|
173,821
|
|
|
783,166
|
|
|
41,662
|
|
|
—
|
|
|
824,828
|
|
|||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
91,560
|
|
|
32,129
|
|
|
—
|
|
|
123,689
|
|
|
6,799
|
|
|
440
|
|
|
130,929
|
|
|||||||
Interest expense
|
|
(148,166
|
)
|
|
(29,239
|
)
|
|
(64
|
)
|
|
(177,469
|
)
|
|
(86,042
|
)
|
|
—
|
|
|
(263,511
|
)
|
|||||||
Gain (loss) on interest rate swaps and caps
|
|
(717
|
)
|
|
—
|
|
|
—
|
|
|
(717
|
)
|
|
45
|
|
|
—
|
|
|
(672
|
)
|
|||||||
Total other income (expense)
|
|
(57,323
|
)
|
|
2,890
|
|
|
(64
|
)
|
|
(54,497
|
)
|
|
(79,198
|
)
|
|
440
|
|
|
(133,254
|
)
|
|||||||
Income (loss) before taxes
|
|
$
|
(6,760
|
)
|
|
$
|
113,340
|
|
|
$
|
55,905
|
|
|
$
|
162,485
|
|
|
$
|
(116,841
|
)
|
|
$
|
—
|
|
|
$
|
45,644
|
|
Depreciation and amortization
|
|
7,939
|
|
|
5,161
|
|
|
7,314
|
|
|
$
|
20,414
|
|
|
6,213
|
|
|
—
|
|
|
$
|
26,627
|
|
|||||
Total assets
|
|
$
|
14,423,073
|
|
|
$
|
1,879,284
|
|
|
$
|
271,056
|
|
|
16,573,413
|
|
|
$
|
748,090
|
|
|
$
|
—
|
|
|
17,321,503
|
|
|
|
For the six months ended June 30, 2014
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating
Segments |
|
Corporate and Other
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related
|
|
$
|
547,043
|
|
|
$
|
27,949
|
|
|
$
|
143,140
|
|
|
$
|
718,132
|
|
|
$
|
1,142
|
|
|
$
|
(746
|
)
|
|
$
|
718,528
|
|
Net gain on mortgage loans held for sale
|
|
34,502
|
|
|
267,401
|
|
|
—
|
|
|
301,903
|
|
|
(1,051
|
)
|
|
—
|
|
|
300,852
|
|
|||||||
Total revenues
|
|
581,545
|
|
|
295,350
|
|
|
143,140
|
|
|
1,020,035
|
|
|
91
|
|
|
(746
|
)
|
|
1,019,380
|
|
|||||||
Total expenses
|
|
353,900
|
|
|
202,134
|
|
|
81,842
|
|
|
637,876
|
|
|
29,968
|
|
|
—
|
|
|
667,844
|
|
|||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
40,822
|
|
|
38,848
|
|
|
—
|
|
|
79,670
|
|
|
6,468
|
|
|
746
|
|
|
86,884
|
|
|||||||
Interest expense
|
|
(150,813
|
)
|
|
(39,248
|
)
|
|
(144
|
)
|
|
(190,205
|
)
|
|
(105,817
|
)
|
|
—
|
|
|
(296,022
|
)
|
|||||||
Gain (loss) on interest rate swaps and caps
|
|
1,361
|
|
|
—
|
|
|
—
|
|
|
1,361
|
|
|
507
|
|
|
—
|
|
|
1,868
|
|
|||||||
Total other income (expense)
|
|
(108,630
|
)
|
|
(400
|
)
|
|
(144
|
)
|
|
(109,174
|
)
|
|
(98,842
|
)
|
|
746
|
|
|
(207,270
|
)
|
|||||||
Income (loss) before taxes
|
|
$
|
119,015
|
|
|
$
|
92,816
|
|
|
$
|
61,154
|
|
|
$
|
272,985
|
|
|
$
|
(128,719
|
)
|
|
$
|
—
|
|
|
$
|
144,266
|
|
Depreciation and amortization
|
|
8,587
|
|
|
6,705
|
|
|
1,822
|
|
|
$
|
17,114
|
|
|
3,287
|
|
|
—
|
|
|
$
|
20,401
|
|
|||||
Total assets
|
|
$
|
7,622,720
|
|
|
$
|
2,474,838
|
|
|
$
|
55,441
|
|
|
10,152,999
|
|
|
$
|
1,014,775
|
|
|
$
|
—
|
|
|
11,167,774
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
535,026
|
|
|
$
|
921
|
|
|
$
|
26,992
|
|
|
$
|
—
|
|
|
$
|
562,939
|
|
Restricted cash
|
—
|
|
|
197,842
|
|
|
—
|
|
|
190,072
|
|
|
—
|
|
|
387,914
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,360,322
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,360,322
|
|
||||||
Advances
|
—
|
|
|
2,348,110
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
2,348,114
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
6,876,290
|
|
|
—
|
|
|
548,275
|
|
|
—
|
|
|
7,424,565
|
|
||||||
Mortgage loans held for sale
|
—
|
|
|
1,827,592
|
|
|
—
|
|
|
78,418
|
|
|
—
|
|
|
1,906,010
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1,176
|
|
|
—
|
|
|
181,154
|
|
|
—
|
|
|
182,330
|
|
||||||
Property and equipment, net
|
—
|
|
|
109,584
|
|
|
835
|
|
|
23,736
|
|
|
—
|
|
|
134,155
|
|
||||||
Derivative financial instruments
|
—
|
|
|
102,247
|
|
|
—
|
|
|
6,018
|
|
|
—
|
|
|
108,265
|
|
||||||
Other assets
|
10,180
|
|
|
(868,494
|
)
|
|
269,432
|
|
|
1,495,771
|
|
|
—
|
|
|
906,889
|
|
||||||
Investment in subsidiaries
|
1,746,811
|
|
|
497,118
|
|
|
—
|
|
|
—
|
|
|
(2,243,929
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,756,991
|
|
|
$
|
14,986,813
|
|
|
$
|
271,188
|
|
|
$
|
2,550,440
|
|
|
$
|
(2,243,929
|
)
|
|
$
|
17,321,503
|
|
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured Senior Notes
|
$
|
—
|
|
|
$
|
2,158,392
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,158,392
|
|
Advance facilities
|
—
|
|
|
244,158
|
|
|
—
|
|
|
1,582,294
|
|
|
—
|
|
|
1,826,452
|
|
||||||
Warehouse facilities
|
—
|
|
|
2,078,260
|
|
|
—
|
|
|
74,655
|
|
|
—
|
|
|
2,152,915
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,332,354
|
|
|
1,559
|
|
|
56,294
|
|
|
—
|
|
|
1,390,207
|
|
||||||
MSR related liabilities - nonrecourse
|
—
|
|
|
1,287,140
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,287,140
|
|
||||||
Derivative financial instruments
|
—
|
|
|
7,859
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,859
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
47,775
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47,775
|
|
||||||
Payables to Affiliates
|
|
|
1,850,758
|
|
|
864
|
|
|
100,751
|
|
|
(1,952,373
|
)
|
|
—
|
|
|||||||
Other nonrecourse debt
|
—
|
|
|
6,084,064
|
|
|
—
|
|
|
609,708
|
|
|
—
|
|
|
6,693,772
|
|
||||||
Total liabilities
|
—
|
|
|
15,090,760
|
|
|
2,423
|
|
|
2,423,702
|
|
|
(1,952,373
|
)
|
|
15,564,512
|
|
||||||
Total equity
|
1,756,991
|
|
|
(103,947
|
)
|
|
268,765
|
|
|
126,738
|
|
|
(291,556
|
)
|
|
1,756,991
|
|
||||||
Total liabilities and equity
|
$
|
1,756,991
|
|
|
$
|
14,986,813
|
|
|
$
|
271,188
|
|
|
$
|
2,550,440
|
|
|
$
|
(2,243,929
|
)
|
|
$
|
17,321,503
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
330,574
|
|
|
$
|
(2,294
|
)
|
|
$
|
129,221
|
|
|
$
|
222
|
|
|
$
|
457,723
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
152,948
|
|
|
—
|
|
|
10,938
|
|
|
—
|
|
|
163,886
|
|
||||||
Total Revenues
|
—
|
|
|
483,522
|
|
|
(2,294
|
)
|
|
140,159
|
|
|
222
|
|
|
621,609
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
141,329
|
|
|
73
|
|
|
56,954
|
|
|
—
|
|
|
198,356
|
|
||||||
General and administrative
|
—
|
|
|
193,416
|
|
|
144
|
|
|
49,069
|
|
|
—
|
|
|
242,629
|
|
||||||
Total expenses
|
—
|
|
|
334,745
|
|
|
217
|
|
|
106,023
|
|
|
—
|
|
|
440,985
|
|
||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
77,930
|
|
|
—
|
|
|
9,447
|
|
|
(222
|
)
|
|
87,155
|
|
||||||
Interest expense
|
—
|
|
|
(130,960
|
)
|
|
—
|
|
|
(16,903
|
)
|
|
—
|
|
|
(147,863
|
)
|
||||||
Gain on interest rate swaps and caps
|
—
|
|
|
11
|
|
|
—
|
|
|
84
|
|
|
—
|
|
|
95
|
|
||||||
Gain/(loss) from subsidiaries
|
74,563
|
|
|
23,165
|
|
|
—
|
|
|
—
|
|
|
(97,728
|
)
|
|
—
|
|
||||||
Total other income (expense)
|
74,563
|
|
|
(29,854
|
)
|
|
—
|
|
|
(7,372
|
)
|
|
(97,950
|
)
|
|
(60,613
|
)
|
||||||
Income/(loss) before taxes
|
74,563
|
|
|
118,923
|
|
|
(2,511
|
)
|
|
26,764
|
|
|
(97,728
|
)
|
|
120,011
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
42,840
|
|
|
1,323
|
|
|
8
|
|
|
—
|
|
|
44,171
|
|
||||||
Net income/(loss)
|
74,563
|
|
|
76,083
|
|
|
(3,834
|
)
|
|
26,756
|
|
|
(97,728
|
)
|
|
75,840
|
|
||||||
Less: Net gain attributable to noncontrolling interests
|
—
|
|
|
1,524
|
|
|
—
|
|
|
(243
|
)
|
|
—
|
|
|
1,281
|
|
||||||
Net income/(loss) excluding noncontrolling interests
|
$
|
74,563
|
|
|
$
|
74,559
|
|
|
$
|
(3,834
|
)
|
|
$
|
26,999
|
|
|
$
|
(97,728
|
)
|
|
$
|
74,559
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
432,753
|
|
|
$
|
(2,639
|
)
|
|
$
|
242,732
|
|
|
$
|
—
|
|
|
$
|
672,846
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
309,795
|
|
|
—
|
|
|
21,085
|
|
|
—
|
|
|
330,880
|
|
||||||
Total Revenues
|
—
|
|
|
742,548
|
|
|
(2,639
|
)
|
|
263,817
|
|
|
—
|
|
|
1,003,726
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
269,763
|
|
|
427
|
|
|
106,922
|
|
|
—
|
|
|
377,112
|
|
||||||
General and administrative
|
—
|
|
|
357,947
|
|
|
194
|
|
|
89,575
|
|
|
—
|
|
|
447,716
|
|
||||||
Total expenses
|
—
|
|
|
627,710
|
|
|
621
|
|
|
196,497
|
|
|
—
|
|
|
824,828
|
|
||||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
114,050
|
|
|
—
|
|
|
16,879
|
|
|
—
|
|
|
130,929
|
|
||||||
Interest expense
|
—
|
|
|
(230,827
|
)
|
|
—
|
|
|
(32,684
|
)
|
|
—
|
|
|
(263,511
|
)
|
||||||
Gain on interest rate swaps and caps
|
—
|
|
|
45
|
|
|
—
|
|
|
(717
|
)
|
|
—
|
|
|
(672
|
)
|
||||||
Gain/(loss) from subsidiaries
|
26,244
|
|
|
46,374
|
|
|
—
|
|
|
—
|
|
|
(72,618
|
)
|
|
—
|
|
||||||
Total other income (expense)
|
26,244
|
|
|
(70,358
|
)
|
|
—
|
|
|
(16,522
|
)
|
|
(72,618
|
)
|
|
(133,254
|
)
|
||||||
Income/(loss) before taxes
|
26,244
|
|
|
44,480
|
|
|
(3,260
|
)
|
|
50,798
|
|
|
(72,618
|
)
|
|
45,644
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
15,315
|
|
|
1,323
|
|
|
8
|
|
|
—
|
|
|
16,646
|
|
||||||
Net income/(loss)
|
26,244
|
|
|
29,165
|
|
|
(4,583
|
)
|
|
50,790
|
|
|
(72,618
|
)
|
|
28,998
|
|
||||||
Less: Net gain attributable to noncontrolling interests
|
—
|
|
|
2,921
|
|
|
—
|
|
|
(167
|
)
|
|
—
|
|
|
2,754
|
|
||||||
Net income/(loss) excluding noncontrolling interests
|
$
|
26,244
|
|
|
$
|
26,244
|
|
|
$
|
(4,583
|
)
|
|
$
|
50,957
|
|
|
$
|
(72,618
|
)
|
|
$
|
26,244
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income/(loss)
|
|
$
|
26,244
|
|
|
$
|
26,244
|
|
|
$
|
(4,583
|
)
|
|
$
|
50,957
|
|
|
$
|
(72,618
|
)
|
|
$
|
26,244
|
|
Reconciliation of net income to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain)/loss from subsidiaries
|
|
(26,244
|
)
|
|
(46,374
|
)
|
|
—
|
|
|
—
|
|
|
72,618
|
|
|
—
|
|
||||||
Share-based compensation
|
|
—
|
|
|
11,313
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,313
|
|
||||||
Excess tax benefit from share based compensation
|
|
—
|
|
|
(1,095
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,095
|
)
|
||||||
Net (gain)/loss on mortgage loans held for sale
|
|
—
|
|
|
(309,795
|
)
|
|
—
|
|
|
(21,085
|
)
|
|
—
|
|
|
(330,880
|
)
|
||||||
Mortgage loans originated and purchased, net of fees
|
|
—
|
|
|
(9,883,868
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,883,868
|
)
|
||||||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
|
|
—
|
|
|
9,448,896
|
|
|
—
|
|
|
(19,011
|
)
|
|
—
|
|
|
9,429,885
|
|
||||||
Gain (loss) on swaps and caps
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
717
|
|
|
—
|
|
|
672
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
19,314
|
|
|
—
|
|
|
7,313
|
|
|
—
|
|
|
26,627
|
|
||||||
Amortization/accretion of premiums/discounts
|
|
—
|
|
|
(4,574
|
)
|
|
—
|
|
|
(616
|
)
|
|
—
|
|
|
(5,190
|
)
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
38,951
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,951
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights
|
|
—
|
|
|
183,042
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183,042
|
|
||||||
Fair value change in mortgage servicing rights financing liability
|
|
—
|
|
|
9,640
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,640
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances
|
|
—
|
|
|
215,345
|
|
|
—
|
|
|
2,293
|
|
|
—
|
|
|
217,638
|
|
||||||
Reverse mortgage interests
|
|
—
|
|
|
82,558
|
|
|
—
|
|
|
(207,007
|
)
|
|
—
|
|
|
(124,449
|
)
|
||||||
Other assets
|
|
|
|
|
293,481
|
|
|
3,682
|
|
|
(231,526
|
)
|
|
—
|
|
|
65,637
|
|
||||||
Payables and accrued liabilities
|
|
—
|
|
|
37,062
|
|
|
1,534
|
|
|
101
|
|
|
—
|
|
|
38,697
|
|
||||||
Net cash attributable to operating activities
|
|
—
|
|
|
120,095
|
|
|
633
|
|
|
(417,864
|
)
|
|
—
|
|
|
(297,136
|
)
|
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(13,069
|
)
|
|
—
|
|
|
(13,982
|
)
|
|
—
|
|
|
(27,051
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(500,041
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(500,041
|
)
|
||||||
Purchases of reverse mortgage servicing rights and interests
|
|
—
|
|
|
(4,815,684
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,815,684
|
)
|
||||||
Proceeds from sale of servicer advances
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Acquisitions, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45,276
|
)
|
|
—
|
|
|
(45,276
|
)
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
(5,328,794
|
)
|
|
—
|
|
|
(59,258
|
)
|
|
—
|
|
|
(5,388,052
|
)
|
||||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transfers to/from restricted cash
|
|
—
|
|
|
(20,751
|
)
|
|
—
|
|
|
(81,633
|
)
|
|
—
|
|
|
(102,384
|
)
|
||||||
Issuance of common stock, net of issuance costs
|
|
—
|
|
|
497,761
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
497,761
|
|
||||||
Debt financing costs
|
|
—
|
|
|
(10,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,639
|
)
|
||||||
Increase (decrease) in advance facilities
|
|
—
|
|
|
538,266
|
|
|
—
|
|
|
42,027
|
|
|
—
|
|
|
580,293
|
|
||||||
Increase (decrease) in warehouse facilities
|
|
—
|
|
|
(326,634
|
)
|
|
—
|
|
|
251,303
|
|
|
—
|
|
|
(75,331
|
)
|
||||||
Proceeds from 2014-1 and 2015-1 HECM Securitization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
342,403
|
|
|
—
|
|
|
342,403
|
|
||||||
Repayment of 2014-1 and 2015-1 HECM Securitization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,013
|
)
|
|
—
|
|
|
(63,013
|
)
|
||||||
Issuance of excess spread financing
|
|
—
|
|
|
258,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258,196
|
|
||||||
Repayment of excess servicing spread financing
|
|
—
|
|
|
(100,228
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100,228
|
)
|
||||||
Increase in participating interest financing in reverse mortgage interests
|
|
—
|
|
|
4,633,093
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,633,093
|
|
||||||
Proceeds from mortgage servicing rights financing
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Repayment of nonrecourse debt–Legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,917
|
)
|
|
—
|
|
|
(5,917
|
)
|
||||||
Excess tax benefit from share-based compensation
|
|
—
|
|
|
1,095
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,095
|
|
||||||
Surrender of shares relating to stock vesting
|
|
|
|
(6,204
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,204
|
)
|
|||||||
Net cash attributable to financing activities
|
|
—
|
|
|
5,463,955
|
|
|
—
|
|
|
485,170
|
|
|
—
|
|
|
5,949,125
|
|
||||||
Net increase in cash and cash equivalents
|
|
—
|
|
|
255,256
|
|
|
633
|
|
|
8,048
|
|
|
—
|
|
|
263,937
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
279,770
|
|
|
288
|
|
|
18,944
|
|
|
—
|
|
|
299,002
|
|
||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
535,026
|
|
|
$
|
921
|
|
|
$
|
26,992
|
|
|
$
|
—
|
|
|
$
|
562,939
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2014
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries)
|
|
Non-Guarantor
(Subsidiaries)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
279,770
|
|
|
$
|
288
|
|
|
$
|
18,944
|
|
|
$
|
—
|
|
|
$
|
299,002
|
|
Restricted cash
|
—
|
|
|
177,090
|
|
|
—
|
|
|
108,440
|
|
|
—
|
|
|
285,530
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
2,961,321
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,961,321
|
|
||||||
Advances
|
—
|
|
|
2,544,065
|
|
|
—
|
|
|
2,297
|
|
|
—
|
|
|
2,546,362
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
2,111,801
|
|
|
—
|
|
|
341,268
|
|
|
—
|
|
|
2,453,069
|
|
||||||
Mortgage loans held for sale
|
—
|
|
|
1,243,700
|
|
|
—
|
|
|
34,231
|
|
|
—
|
|
|
1,277,931
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1,945
|
|
|
—
|
|
|
189,624
|
|
|
—
|
|
|
191,569
|
|
||||||
Property and equipment, net
|
—
|
|
|
114,903
|
|
|
835
|
|
|
13,873
|
|
|
—
|
|
|
129,611
|
|
||||||
Derivative financial instruments
|
—
|
|
|
87,911
|
|
|
—
|
|
|
3,140
|
|
|
—
|
|
|
91,051
|
|
||||||
Other assets
|
16,383
|
|
|
1,069,061
|
|
|
272,654
|
|
|
1,328,078
|
|
|
(1,808,947
|
)
|
|
877,229
|
|
||||||
Investment in subsidiaries
|
1,207,895
|
|
|
450,363
|
|
|
—
|
|
|
—
|
|
|
(1,658,258
|
)
|
|
—
|
|
||||||
Total Assets
|
$
|
1,224,278
|
|
|
$
|
11,041,930
|
|
|
$
|
273,777
|
|
|
$
|
2,039,895
|
|
|
$
|
(3,467,205
|
)
|
|
$
|
11,112,675
|
|
Liabilities and members’ equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advance facilities
|
$
|
—
|
|
|
$
|
570,792
|
|
|
$
|
—
|
|
|
$
|
1,330,991
|
|
|
$
|
—
|
|
|
$
|
1,901,783
|
|
Warehouse facilities
|
—
|
|
|
1,539,994
|
|
|
—
|
|
|
32,628
|
|
|
—
|
|
|
1,572,622
|
|
||||||
Unsecured Senior Notes
|
—
|
|
|
2,159,231
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,159,231
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,282,895
|
|
|
25
|
|
|
39,158
|
|
|
—
|
|
|
1,322,078
|
|
||||||
Payables to affiliates
|
—
|
|
|
1,683,606
|
|
|
894
|
|
|
124,447
|
|
|
(1,808,947
|
)
|
|
—
|
|
||||||
Derivative financial instruments
|
—
|
|
|
18,525
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,525
|
|
||||||
MSR related liabilities - nonrecourse
|
—
|
|
|
1,080,465
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,080,465
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
65,382
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65,382
|
|
||||||
Other nonrecourse debt
|
—
|
|
|
1,433,145
|
|
|
—
|
|
|
335,166
|
|
|
—
|
|
|
1,768,311
|
|
||||||
Total liabilities
|
—
|
|
|
9,834,035
|
|
|
919
|
|
|
1,862,390
|
|
|
(1,808,947
|
)
|
|
9,888,397
|
|
||||||
Total equity
|
1,224,278
|
|
|
1,207,895
|
|
|
272,858
|
|
|
177,505
|
|
|
(1,658,258
|
)
|
|
1,224,278
|
|
||||||
Total liabilities and equity
|
$
|
1,224,278
|
|
|
$
|
11,041,930
|
|
|
$
|
273,777
|
|
|
$
|
2,039,895
|
|
|
$
|
(3,467,205
|
)
|
|
$
|
11,112,675
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS)
FOR THE THREE MONTHS ENDED JUNE 30, 2014
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
295,419
|
|
|
$
|
31,127
|
|
|
$
|
72,892
|
|
|
$
|
(22,621
|
)
|
|
$
|
376,817
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
150,660
|
|
|
—
|
|
|
3
|
|
|
22,253
|
|
|
172,916
|
|
||||||
Total Revenues
|
—
|
|
|
446,079
|
|
|
31,127
|
|
|
72,895
|
|
|
(368
|
)
|
|
549,733
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
139,146
|
|
|
1,811
|
|
|
13,095
|
|
|
—
|
|
|
154,052
|
|
||||||
General and administrative
|
—
|
|
|
156,752
|
|
|
3,805
|
|
|
32,102
|
|
|
—
|
|
|
192,659
|
|
||||||
Total expenses
|
—
|
|
|
295,898
|
|
|
5,616
|
|
|
45,197
|
|
|
—
|
|
|
346,711
|
|
||||||
Other income / (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
38,145
|
|
|
—
|
|
|
4,428
|
|
|
368
|
|
|
42,941
|
|
||||||
Interest expense
|
—
|
|
|
(126,535
|
)
|
|
—
|
|
|
(12,887
|
)
|
|
—
|
|
|
(139,422
|
)
|
||||||
Gain/(loss) on interest rate swaps and caps
|
—
|
|
|
242
|
|
|
—
|
|
|
(1,195
|
)
|
|
—
|
|
|
(953
|
)
|
||||||
Gain / (loss) from subsidiaries
|
105,396
|
|
|
43,555
|
|
|
—
|
|
|
—
|
|
|
(148,951
|
)
|
|
—
|
|
||||||
Total other income / (expense)
|
105,396
|
|
|
(44,593
|
)
|
|
—
|
|
|
(9,654
|
)
|
|
(148,583
|
)
|
|
(97,434
|
)
|
||||||
Income before taxes
|
105,396
|
|
|
105,588
|
|
|
25,511
|
|
|
18,044
|
|
|
(148,951
|
)
|
|
105,588
|
|
||||||
Income tax expense/(benefit)
|
38,941
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,941
|
|
||||||
Net Income/(loss)
|
66,455
|
|
|
105,588
|
|
|
25,511
|
|
|
18,044
|
|
|
(148,951
|
)
|
|
66,647
|
|
||||||
Less: Net gain attributable to noncontrolling interests
|
—
|
|
|
192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
||||||
Net income/(loss) excluding noncontrolling interests
|
$
|
66,455
|
|
|
$
|
105,396
|
|
|
$
|
25,511
|
|
|
$
|
18,044
|
|
|
$
|
(148,951
|
)
|
|
$
|
66,455
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2014
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
567,348
|
|
|
$
|
58,555
|
|
|
$
|
129,698
|
|
|
$
|
(37,073
|
)
|
|
$
|
718,528
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
264,549
|
|
|
—
|
|
|
(24
|
)
|
|
36,327
|
|
|
300,852
|
|
||||||
Total Revenues
|
—
|
|
|
831,897
|
|
|
58,555
|
|
|
129,674
|
|
|
(746
|
)
|
|
1,019,380
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
282,504
|
|
|
3,507
|
|
|
24,636
|
|
|
—
|
|
|
310,647
|
|
||||||
General and administrative
|
—
|
|
|
290,477
|
|
|
4,696
|
|
|
62,024
|
|
|
—
|
|
|
357,197
|
|
||||||
Total expenses
|
—
|
|
|
572,981
|
|
|
8,203
|
|
|
86,660
|
|
|
—
|
|
|
667,844
|
|
||||||
Other income / (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
77,855
|
|
|
—
|
|
|
8,283
|
|
|
746
|
|
|
86,884
|
|
||||||
Interest expense
|
—
|
|
|
(261,013
|
)
|
|
—
|
|
|
(35,009
|
)
|
|
—
|
|
|
(296,022
|
)
|
||||||
Gain/(loss) on interest rate swaps and caps
|
—
|
|
|
507
|
|
|
—
|
|
|
1,361
|
|
|
—
|
|
|
1,868
|
|
||||||
Gain / (loss) from subsidiaries
|
144,433
|
|
|
68,001
|
|
|
—
|
|
|
—
|
|
|
(212,434
|
)
|
|
—
|
|
||||||
Total other income / (expense)
|
144,433
|
|
|
(114,650
|
)
|
|
—
|
|
|
(25,365
|
)
|
|
(211,688
|
)
|
|
(207,270
|
)
|
||||||
Income before taxes
|
144,433
|
|
|
144,266
|
|
|
50,352
|
|
|
17,649
|
|
|
(212,434
|
)
|
|
144,266
|
|
||||||
Income tax expense/(benefit)
|
53,942
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,942
|
|
||||||
Net Income/(loss)
|
90,491
|
|
|
144,266
|
|
|
50,352
|
|
|
17,649
|
|
|
(212,434
|
)
|
|
90,324
|
|
||||||
Less: Net gain attributable to noncontrolling interests
|
—
|
|
|
(167
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(167
|
)
|
||||||
Net income/(loss) excluding noncontrolling interests
|
$
|
90,491
|
|
|
$
|
144,433
|
|
|
$
|
50,352
|
|
|
$
|
17,649
|
|
|
$
|
(212,434
|
)
|
|
$
|
90,491
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2014
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income/(loss)
|
|
$
|
90,491
|
|
|
$
|
144,433
|
|
|
$
|
50,352
|
|
|
$
|
17,649
|
|
|
$
|
(212,434
|
)
|
|
$
|
90,491
|
|
Reconciliation of net income to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain)/loss from subsidiaries
|
|
(144,433
|
)
|
|
(68,001
|
)
|
|
—
|
|
|
—
|
|
|
212,434
|
|
|
—
|
|
||||||
Share-based compensation
|
|
—
|
|
|
6,868
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,868
|
|
||||||
Excess tax benefit from share based compensation
|
|
—
|
|
|
(2,189
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,189
|
)
|
||||||
Net (gain)/loss on mortgage loans held for sale
|
|
—
|
|
|
(264,549
|
)
|
|
—
|
|
|
24
|
|
|
(36,327
|
)
|
|
(300,852
|
)
|
||||||
Mortgage loans originated and purchased, net of fees
|
|
—
|
|
|
(11,470,908
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,470,908
|
)
|
||||||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
|
|
—
|
|
|
12,043,737
|
|
|
—
|
|
|
9,274
|
|
|
36,327
|
|
|
12,089,338
|
|
||||||
Gain (loss) on swaps and caps
|
|
—
|
|
|
(507
|
)
|
|
—
|
|
|
(1,361
|
)
|
|
—
|
|
|
(1,868
|
)
|
||||||
Cash settlement on derivative financial instruments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,352
|
|
|
—
|
|
|
1,352
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
18,577
|
|
|
84
|
|
|
1,740
|
|
|
—
|
|
|
20,401
|
|
||||||
Amortization/accretion of premiums/discounts
|
|
—
|
|
|
14,389
|
|
|
—
|
|
|
(1,352
|
)
|
|
—
|
|
|
13,037
|
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
23,767
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,767
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights
|
|
—
|
|
|
123,573
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,573
|
|
||||||
Fair value change in mortgage servicing rights financing liability
|
|
—
|
|
|
(49,257
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(49,257
|
)
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances
|
|
—
|
|
|
(3,232,195
|
)
|
|
—
|
|
|
4,001,949
|
|
|
—
|
|
|
769,754
|
|
||||||
Reverse mortgage interests
|
|
—
|
|
|
(413,478
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(413,478
|
)
|
||||||
Other assets
|
|
4,756
|
|
|
1,852,546
|
|
|
(48,708
|
)
|
|
(1,585,478
|
)
|
|
—
|
|
|
223,116
|
|
||||||
Payables and accrued liabilities
|
|
53,941
|
|
|
(320,185
|
)
|
|
(4,779
|
)
|
|
10,457
|
|
|
—
|
|
|
(260,566
|
)
|
||||||
Net cash attributable to operating activities
|
|
4,755
|
|
|
(1,593,379
|
)
|
|
(3,051
|
)
|
|
2,454,254
|
|
|
—
|
|
|
862,579
|
|
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(14,175
|
)
|
|
(112
|
)
|
|
(9,391
|
)
|
|
—
|
|
|
(23,678
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(187,803
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(187,803
|
)
|
||||||
Proceeds from sale of servicer advances
|
|
—
|
|
|
512,527
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
512,527
|
|
||||||
Acquisitions, net
|
|
—
|
|
|
(18,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,000
|
)
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
292,549
|
|
|
(112
|
)
|
|
(9,391
|
)
|
|
—
|
|
|
283,046
|
|
||||||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transfers to/from restricted cash
|
|
—
|
|
|
94,268
|
|
|
—
|
|
|
147,155
|
|
|
—
|
|
|
241,423
|
|
||||||
Issuance of common stock, net of issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Debt financing costs
|
|
—
|
|
|
(9,153
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,153
|
)
|
||||||
Increase (decrease) in advance facilities
|
|
—
|
|
|
1,196,768
|
|
|
—
|
|
|
(2,577,561
|
)
|
|
—
|
|
|
(1,380,793
|
)
|
||||||
Increase (decrease) in warehouse facilities
|
|
—
|
|
|
(76,148
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(76,148
|
)
|
||||||
Issuance of excess spread financing
|
|
—
|
|
|
111,118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
111,118
|
|
||||||
Repayment of excess servicing spread financing
|
|
—
|
|
|
(85,257
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85,257
|
)
|
||||||
Increase in participating interest financing in reverse mortgage interests
|
|
—
|
|
|
192,355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192,355
|
|
||||||
Proceeds from mortgage servicing rights financing
|
|
—
|
|
|
52,835
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
52,835
|
|
||||||
Repayment of nonrecourse debt–Legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,414
|
)
|
|
—
|
|
|
(7,414
|
)
|
||||||
Excess tax benefit from share-based compensation
|
|
—
|
|
|
2,189
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,189
|
|
||||||
Surrender of shares relating to stock vesting
|
|
(4,755
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,755
|
)
|
||||||
Net cash attributable to financing activities
|
|
(4,755
|
)
|
|
1,478,975
|
|
|
—
|
|
|
(2,437,820
|
)
|
|
—
|
|
|
(963,600
|
)
|
||||||
Net increase in cash and cash equivalents
|
|
—
|
|
|
178,145
|
|
|
(3,163
|
)
|
|
7,043
|
|
|
—
|
|
|
182,025
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
422,268
|
|
|
3,907
|
|
|
15,727
|
|
|
—
|
|
|
441,902
|
|
||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
600,413
|
|
|
$
|
744
|
|
|
$
|
22,770
|
|
|
$
|
—
|
|
|
$
|
623,927
|
|
•
|
Completed acquisitions of mortgage servicing rights for
$29.1
billion in unpaid principal balance consisting of $24.2 billion of forward and $4.9 billion of reverse mortgages.
|
•
|
Provided over
16,631
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership.
|
•
|
Our delinquency rate, measured as loans that are 60 or more days behind in payments, declined to
7.4%
from 9.9% at the start of the year.
|
•
|
In June 2015, we rebranded our Solutionstar segment to Xome and launched the Xome real estate platform and iOS mobile application which we believe is the world’s first truly integrated, end-to-end digital platform for real estate connecting every major touch point in the transaction process from finding a home to closing the deal.
|
•
|
Funded
$4.8
billion in mortgage loans for the 3 months ending June 30, 2015, including
$2.7
billion related to retaining customers from our servicing portfolio. Refinanced
$1.4
billion in HARP loans, providing relief to
8,368
customers.
|
•
|
Xome acquired Quantarium, LLC, a real estate analytics company that has developed industry-leading automated home valuation models and acquired all of the assets of GoPaperless Solutions, a leader in digital signature and document management Software-as-a-Service solutions.
|
Table 1. Consolidated Operations
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
622
|
|
|
$
|
550
|
|
|
$
|
1,004
|
|
|
$
|
1,019
|
|
Expenses
|
(441
|
)
|
|
(347
|
)
|
|
(825
|
)
|
|
(668
|
)
|
||||
Other income (expense), net
|
(61
|
)
|
|
(97
|
)
|
|
(133
|
)
|
|
(207
|
)
|
||||
Income before taxes
|
120
|
|
|
106
|
|
|
46
|
|
|
144
|
|
||||
Income tax expense
|
44
|
|
|
39
|
|
|
17
|
|
|
54
|
|
||||
Net gain attributable to noncontrolling interests
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Net income attributable to Nationstar
|
$
|
75
|
|
|
$
|
67
|
|
|
$
|
26
|
|
|
$
|
90
|
|
Table 2. Revenues
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Servicing
|
$
|
328
|
|
|
$
|
306
|
|
|
$
|
443
|
|
|
$
|
581
|
|
Originations
|
170
|
|
|
165
|
|
|
328
|
|
|
295
|
|
||||
Xome
|
122
|
|
|
79
|
|
|
230
|
|
|
143
|
|
||||
Corporate and Other, including eliminations
|
2
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Total revenues
|
$
|
622
|
|
|
$
|
550
|
|
|
$
|
1,004
|
|
|
$
|
1,019
|
|
Table 3. Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Servicing
|
$
|
(210
|
)
|
|
$
|
(187
|
)
|
|
$
|
(392
|
)
|
|
$
|
(354
|
)
|
Originations
|
(117
|
)
|
|
(97
|
)
|
|
(217
|
)
|
|
(202
|
)
|
||||
Xome
|
(94
|
)
|
|
(44
|
)
|
|
(174
|
)
|
|
(82
|
)
|
||||
Corporate and Other, including eliminations
|
(20
|
)
|
|
(18
|
)
|
|
(42
|
)
|
|
(30
|
)
|
||||
Total income before taxes
|
$
|
(441
|
)
|
|
$
|
(347
|
)
|
|
$
|
(825
|
)
|
|
$
|
(668
|
)
|
Table 4. Other income (expense), net
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Reverse Interest Income
|
$
|
67
|
|
|
$
|
19
|
|
|
$
|
91
|
|
|
$
|
36
|
|
Other Interest Income
|
20
|
|
|
24
|
|
|
40
|
|
|
51
|
|
||||
Interest Income
|
87
|
|
|
43
|
|
|
131
|
|
|
87
|
|
||||
Reverse Interest Expense
|
(46
|
)
|
|
(7
|
)
|
|
(60
|
)
|
|
(14
|
)
|
||||
Advance Interest Expense
|
(12
|
)
|
|
(37
|
)
|
|
(24
|
)
|
|
(90
|
)
|
||||
Corporate Debt Interest Expense
|
(40
|
)
|
|
(50
|
)
|
|
(80
|
)
|
|
(100
|
)
|
||||
Other Interest Expense
|
(49
|
)
|
|
(46
|
)
|
|
(98
|
)
|
|
(92
|
)
|
||||
Interest Expense
|
(148
|
)
|
|
(140
|
)
|
|
(264
|
)
|
|
(296
|
)
|
||||
Gain (loss) on interest rate swaps and caps
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
2
|
|
||||
Total income (expense) before taxes
|
$
|
(61
|
)
|
|
$
|
(97
|
)
|
|
$
|
(133
|
)
|
|
$
|
(207
|
)
|
Table 5. Income before taxes
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Servicing
|
$
|
96
|
|
|
$
|
69
|
|
|
$
|
(7
|
)
|
|
$
|
119
|
|
Originations
|
54
|
|
|
69
|
|
|
113
|
|
|
93
|
|
||||
Xome
|
28
|
|
|
36
|
|
|
56
|
|
|
61
|
|
||||
Corporate and Other, including eliminations
|
(58
|
)
|
|
(68
|
)
|
|
(117
|
)
|
|
(129
|
)
|
||||
Total income before taxes
|
$
|
120
|
|
|
$
|
106
|
|
|
$
|
46
|
|
|
$
|
144
|
|
Table 6. Income tax expense
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
$
|
44
|
|
|
$
|
39
|
|
|
$
|
17
|
|
|
$
|
54
|
|
Table 7. Servicing Operations
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues - Operational
|
$
|
247
|
|
|
$
|
267
|
|
|
$
|
470
|
|
|
$
|
531
|
|
Revenue - Mark to Market
|
82
|
|
|
39
|
|
|
(28
|
)
|
|
51
|
|
||||
Total Revenue
|
328
|
|
|
306
|
|
|
443
|
|
|
582
|
|
||||
Expenses
|
(210
|
)
|
|
(187
|
)
|
|
(392
|
)
|
|
(354
|
)
|
||||
Other income (expense), net
|
(23
|
)
|
|
(49
|
)
|
|
$
|
(57
|
)
|
|
(109
|
)
|
|||
Income (loss) before taxes
|
$
|
96
|
|
|
$
|
69
|
|
|
$
|
(7
|
)
|
|
$
|
120
|
|
Income (loss) before taxes margin excluding Mark-to-market
|
5.7
|
%
|
|
11.2
|
%
|
|
4.5
|
%
|
|
13.0
|
%
|
||||
Income (loss) before taxes margin including Mark-to-market
|
29.3
|
%
|
|
22.5
|
%
|
|
(1.6
|
)%
|
|
20.6
|
%
|
Table 8. Forward Servicing Portfolio UPB Rollforward
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Balance at the beginning of the period
|
$
|
362,842
|
|
|
$
|
355,478
|
|
|
$
|
353,094
|
|
|
$
|
361,779
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Originations
|
4,765
|
|
|
1,363
|
|
|
8,974
|
|
|
6,107
|
|
||||
Acquisitions
|
24,245
|
|
|
15,337
|
|
|
48,116
|
|
|
18,968
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Principal reductions and other
|
(3,022
|
)
|
|
(2,339
|
)
|
|
(5,581
|
)
|
|
(4,755
|
)
|
||||
Voluntary reductions
|
(13,219
|
)
|
|
(8,971
|
)
|
|
(23,106
|
)
|
|
(16,799
|
)
|
||||
Involuntary reductions
|
(3,003
|
)
|
|
(3,204
|
)
|
|
(5,858
|
)
|
|
(5,879
|
)
|
||||
Net changes in loans serviced by others
|
(410
|
)
|
|
(7,885
|
)
|
|
(3,441
|
)
|
|
(9,642
|
)
|
||||
Balance at the end of period
|
$
|
372,198
|
|
|
$
|
349,779
|
|
|
$
|
372,198
|
|
|
$
|
349,779
|
|
Table 9. Servicing - Revenues
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||
($ in millions)
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
||||||||
MSR - Fair Value Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Base Servicing Fees
|
$
|
262
|
|
27
|
|
253
|
|
27
|
|
509
|
|
26
|
|
511
|
|
27
|
|||
Modification fees
|
17
|
|
2
|
|
23
|
|
2
|
|
29
|
|
2
|
|
42
|
|
2
|
||||
Incentive fees
|
14
|
|
1
|
|
7
|
|
1
|
|
24
|
|
1
|
|
20
|
|
1
|
||||
Late payment fees
|
16
|
|
2
|
|
16
|
|
2
|
|
34
|
|
2
|
|
34
|
|
2
|
||||
Other ancillary revenue
|
46
|
|
5
|
|
63
|
|
7
|
|
93
|
|
5
|
|
110
|
|
6
|
||||
Other revenues
|
16
|
|
2
|
|
13
|
|
1
|
|
23
|
|
1
|
|
13
|
|
1
|
||||
Total MSR Fair Value Revenues
|
371
|
|
39
|
|
375
|
|
40
|
|
712
|
|
37
|
|
730
|
|
39
|
||||
Subservicing
(2)
|
14
|
|
1
|
|
10
|
|
1
|
|
28
|
|
1
|
|
21
|
|
1
|
||||
MSRs - LOCOM
|
23
|
|
2
|
|
14
|
|
1
|
|
43
|
|
2
|
|
28
|
|
1
|
||||
Total Servicing Fee Revenue
|
408
|
|
41
|
|
398
|
|
42
|
|
783
|
|
40
|
|
779
|
|
41
|
||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSR scheduled and prepayment amortization
|
(134
|
)
|
(13)
|
|
(86
|
)
|
(9)
|
|
(242
|
)
|
(12)
|
|
(162
|
)
|
(8)
|
||||
Excess spread accretion
|
46
|
|
5
|
|
40
|
|
4
|
|
77
|
|
4
|
|
71
|
|
4
|
||||
Total Amortization
|
(88
|
)
|
(9)
|
|
(46
|
)
|
(5)
|
|
(165
|
)
|
(8)
|
|
(91
|
)
|
(5)
|
||||
MSR financing liability payments
|
(31
|
)
|
(3)
|
|
(47
|
)
|
(5)
|
|
(65
|
)
|
(3)
|
|
(82
|
)
|
(4)
|
||||
Excess spread payments - principal
|
(42
|
)
|
(4)
|
|
(39
|
)
|
(4)
|
|
(82
|
)
|
(4)
|
|
(75
|
)
|
(4)
|
||||
Total Operational Revenue
|
247
|
|
25
|
|
267
|
|
28
|
|
470
|
|
24
|
|
531
|
|
28
|
||||
Mark-to-market Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSR MTM
(3)
|
125
|
|
13
|
|
28
|
|
3
|
|
16
|
|
1
|
|
25
|
|
1
|
||||
Excess spread / Financing MTM
|
(44
|
)
|
(4)
|
|
11
|
|
1
|
|
(44
|
)
|
(2)
|
|
26
|
|
1
|
||||
Total MTM Fair Value
|
82
|
|
8
|
|
39
|
|
4
|
|
(28
|
)
|
(1)
|
|
51
|
|
2
|
||||
Total Revenues
|
$
|
328
|
|
33
|
|
$
|
306
|
|
32
|
|
$
|
443
|
|
23
|
|
$
|
582
|
|
29
|
Table 10. Servicing Portfolio - Unpaid Principal Balances
|
June 30,
|
||||
($ in millions)
|
2015
|
|
2014
|
||
Average UPB:
|
|
|
|
||
MSRs - Fair Value
|
350,389
|
|
|
323,703
|
|
Subservicing
|
17,132
|
|
|
32,076
|
|
MSRs - LOCOM
|
27,150
|
|
|
28,764
|
|
Total Average UPB
|
394,671
|
|
|
384,543
|
|
|
|
|
|
||
Ending UPB:
|
|
|
|
||
MSRs - Fair Value
|
|
|
|
||
Agency
|
244,429
|
|
|
202,996
|
|
Non-Agency
|
108,978
|
|
|
121,596
|
|
Total MSRs - Fair Value
|
353,407
|
|
|
324,592
|
|
Subservicing
(1)
|
|
|
|
||
Agency
|
16,096
|
|
|
23,715
|
|
Non-Agency
|
2,695
|
|
|
7,637
|
|
Total Subservicing
|
18,791
|
|
|
31,352
|
|
|
|
|
|
||
MSRs - LOCOM
|
31,841
|
|
|
28,599
|
|
|
|
|
|
||
Total Ending UPB
|
404,039
|
|
|
384,543
|
|
Table 11. Modifications and Workout Units
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
Modifications and Workout Units:
|
|
|
|
|
|
|
|
||||
HAMP modifications
|
4,281
|
|
|
2,851
|
|
|
8,261
|
|
|
11,378
|
|
Non HAMP modifications
|
6,310
|
|
|
4,229
|
|
|
12,501
|
|
|
19,432
|
|
Workouts
|
6,240
|
|
|
4,073
|
|
|
12,601
|
|
|
15,183
|
|
Total Units
|
16,831
|
|
|
11,153
|
|
|
33,363
|
|
|
45,993
|
|
Table 12. Key performance metrics - forward servicing portfolio
(1)
|
June 30,
|
||||||
|
2015
|
|
2014
|
||||
Loan count-servicing
|
2,252,839
|
|
|
1,944,174
|
|
||
Average loan amount
|
$
|
163,606
|
|
|
$
|
171,142
|
|
Average coupon - Credit sensitive
(2)
|
4.70
|
%
|
|
4.78
|
%
|
||
Average coupon - Interest sensitive
(2)
|
4.06
|
%
|
|
4.03
|
%
|
||
60+ delinquent (% of loans)
(3)
|
7.4
|
%
|
|
11.1
|
%
|
||
90+ delinquent (% of loans)
(3)
|
6.9
|
%
|
|
10.5
|
%
|
||
120+ delinquent (% of loans)
(3)
|
6.6
|
%
|
|
10.1
|
%
|
||
Total Prepayment speed (12 month constant pre-payment rate)
|
16.9
|
%
|
|
14.7
|
%
|
Table 13. Servicing - Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
($ in millions)
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||||
Salaries, wages and benefits
|
$
|
69
|
|
7
|
|
|
$
|
72
|
|
8
|
|
|
$
|
133
|
|
7
|
|
|
$
|
146
|
|
8
|
|
General and administrative
|
141
|
|
14
|
|
|
115
|
|
12
|
|
|
259
|
|
13
|
|
|
208
|
|
11
|
|
||||
Expenses
|
$
|
210
|
|
21
|
|
|
$
|
187
|
|
20
|
|
|
$
|
392
|
|
20
|
|
|
$
|
354
|
|
19
|
|
Table 14. General and Administrative Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||
($ in millions)
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||
Operational Losses
(1)
|
$
|
58
|
|
6
|
|
$
|
44
|
|
5
|
|
|
$
|
98
|
|
5
|
|
$
|
75
|
|
4
|
|
Direct Operating Costs
(2)
|
44
|
|
4
|
|
34
|
|
4
|
|
|
80
|
|
4
|
|
62
|
|
3
|
|
||||
Offshoring costs
|
13
|
|
1
|
|
12
|
|
1
|
|
|
24
|
|
1
|
|
23
|
|
1
|
|
||||
Corporate allocation charges
|
21
|
|
2
|
|
15
|
|
2
|
|
|
44
|
|
2
|
|
25
|
|
1
|
|
||||
Subservicing
|
5
|
|
—
|
|
9
|
|
1
|
|
|
13
|
|
1
|
|
21
|
|
1
|
|
||||
Total general and administrative expenses - Servicing
|
$
|
141
|
|
14
|
|
$
|
115
|
|
12
|
|
|
$
|
259
|
|
13
|
|
$
|
208
|
|
11
|
|
Table 15. Servicing - Other Income (Expense), net
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||||||||||
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||||||||||
($ in millions)
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||||
Reverse Interest Income
|
$
|
67
|
|
6
|
|
|
$
|
19
|
|
2
|
|
|
$
|
92
|
|
9
|
|
|
$
|
36
|
|
4
|
|
Other Interest Income
|
—
|
|
—
|
|
|
$
|
3
|
|
—
|
|
|
$
|
—
|
|
—
|
|
|
$
|
5
|
|
—
|
|
|
Interest income
|
$
|
67
|
|
6
|
|
|
$
|
22
|
|
2
|
|
|
$
|
92
|
|
9
|
|
|
$
|
41
|
|
4
|
|
Reverse Interest Expense
|
(46
|
)
|
(5
|
)
|
|
(7
|
)
|
(1
|
)
|
|
(60
|
)
|
(6
|
)
|
|
(14
|
)
|
(1
|
)
|
||||
Advance Interest Expense
|
(12
|
)
|
(1
|
)
|
|
(31
|
)
|
(3
|
)
|
|
(24
|
)
|
(3
|
)
|
|
(76
|
)
|
(8
|
)
|
||||
Other Interest Expense
|
(32
|
)
|
(3
|
)
|
|
(32
|
)
|
(3
|
)
|
|
(63
|
)
|
(7
|
)
|
|
(61
|
)
|
(6
|
)
|
||||
Interest expense
|
(90
|
)
|
(9
|
)
|
|
(70
|
)
|
(7
|
)
|
|
(148
|
)
|
(16
|
)
|
|
(151
|
)
|
(15
|
)
|
||||
Gain (loss) on interest rate swaps and cap
|
—
|
|
—
|
|
|
(1
|
)
|
—
|
|
|
(1
|
)
|
—
|
|
|
1
|
|
—
|
|
||||
Other income (expense), net
|
$
|
(23
|
)
|
(3
|
)
|
|
$
|
(49
|
)
|
(5
|
)
|
|
$
|
(57
|
)
|
(7
|
)
|
|
$
|
(109
|
)
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAC - Advance facilities
|
2.4
|
%
|
|
|
1.8
|
%
|
|
|
2.5
|
%
|
|
|
2.3
|
%
|
|
||||||||
WAC - Excess spread financing
|
9.0
|
%
|
|
|
9.1
|
%
|
|
|
9.0
|
%
|
|
|
9.1
|
%
|
|
Table 16. Originations - Operations
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
170
|
|
|
$
|
165
|
|
|
$
|
328
|
|
|
$
|
295
|
|
Expenses
|
(117
|
)
|
|
(97
|
)
|
|
(217
|
)
|
|
(202
|
)
|
||||
Other income (expense), net
|
2
|
|
|
1
|
|
|
3
|
|
|
—
|
|
||||
Income before taxes
|
$
|
54
|
|
|
$
|
69
|
|
|
$
|
113
|
|
|
$
|
93
|
|
Income before taxes margin
|
31.8
|
%
|
|
41.7
|
%
|
|
34.5
|
%
|
|
31.5
|
%
|
Table 17. Originations - Revenues
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Service related
|
$
|
13
|
|
|
$
|
14
|
|
|
$
|
20
|
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
||||||||
Gain on loans sold
|
184
|
|
|
319
|
|
|
370
|
|
|
512
|
|
||||
Fair value mark-to-market on loans held for sale
|
(103
|
)
|
|
(118
|
)
|
|
(155
|
)
|
|
(273
|
)
|
||||
Mark-to-market on locks and commitments
(1)
|
22
|
|
|
(108
|
)
|
|
1
|
|
|
(82
|
)
|
||||
Provision for repurchases
|
(4
|
)
|
|
(3
|
)
|
|
(8
|
)
|
|
(10
|
)
|
||||
Capitalized servicing rights
|
58
|
|
|
62
|
|
|
99
|
|
|
120
|
|
||||
Net gain on mortgage loans held for sale
|
156
|
|
|
152
|
|
|
307
|
|
|
267
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total revenues
|
$
|
170
|
|
|
$
|
165
|
|
|
$
|
328
|
|
|
$
|
295
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Consumer Direct Locked Volume
|
$
|
2,973
|
|
|
$
|
2,409
|
|
|
$
|
6,044
|
|
|
$
|
5,393
|
|
Other Locked Volume
|
1,960
|
|
|
1,789
|
|
|
3,426
|
|
|
3,347
|
|
||||
Funded Volume, Total
|
4,814
|
|
|
4,381
|
|
|
9,023
|
|
|
9,124
|
|
||||
Funded HARP Volume, Total
|
1,360
|
|
|
1,740
|
|
|
2,541
|
|
|
4,185
|
|
||||
Recapture percentage
|
25.0
|
%
|
|
32.4
|
%
|
|
25.0
|
%
|
|
39.0
|
%
|
||||
Purchase percentage of funded volume
|
26.6
|
%
|
|
33.7
|
%
|
|
25.6
|
%
|
|
30.5
|
%
|
||||
Value of Capitalized Servicing
|
124 bps
|
|
|
139 bps
|
|
|
121 bps
|
|
|
128 bps
|
|
Table 18. Originations - Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
$
|
69
|
|
|
$
|
59
|
|
|
$
|
133
|
|
|
$
|
126
|
|
General and administrative
|
48
|
|
|
38
|
|
|
84
|
|
|
76
|
|
||||
Expenses
|
$
|
117
|
|
|
$
|
97
|
|
|
$
|
217
|
|
|
$
|
202
|
|
Table 19. Originations - Other Income (Expense), net
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income
|
$
|
17
|
|
|
$
|
17
|
|
|
$
|
32
|
|
|
$
|
39
|
|
Interest expense
|
(15
|
)
|
|
(17
|
)
|
|
(29
|
)
|
|
(39
|
)
|
||||
Other income (expense), net
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
WA Coupon - Mortgage loans held for sale
|
4.1
|
%
|
|
4.5
|
%
|
|
4.1
|
%
|
|
4.5
|
%
|
||||
WA Cost of Funds (excluding Facility Fees)
|
2.0
|
%
|
|
2.7
|
%
|
|
2.1
|
%
|
|
2.6
|
%
|
Table 20. Repurchase Reserves
|
For the six months ended June 30,
|
||||||
|
2015
|
|
2014
|
||||
Repurchase reserves, beginning of period
|
$
|
29
|
|
|
$
|
41
|
|
Provisions
|
4
|
|
|
10
|
|
||
Charge-offs
|
(4
|
)
|
|
(5
|
)
|
||
Repurchase reserves, end of period
|
$
|
29
|
|
|
$
|
46
|
|
Table 21. Xome - Operations
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
122
|
|
|
$
|
79
|
|
|
$
|
230
|
|
|
$
|
143
|
|
Expenses
|
(94
|
)
|
|
(44
|
)
|
|
(174
|
)
|
|
(82
|
)
|
||||
Other income (expense), net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income before taxes
|
$
|
28
|
|
|
$
|
36
|
|
|
$
|
56
|
|
|
$
|
61
|
|
Income before taxes margin
|
23.0
|
%
|
|
45.6
|
%
|
|
24.3
|
%
|
|
42.7
|
%
|
Table 22. Xome - Revenues
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
($ in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Real Estate Exchange
|
$
|
61
|
|
|
$
|
38
|
|
|
$
|
109
|
|
|
$
|
65
|
|
Real Estate Services
|
61
|
|
|
41
|
|
|
121
|
|
|
78
|
|
||||
Total Revenues
|
$
|
122
|
|
|
$
|
79
|
|
|
$
|
230
|
|
|
$
|
143
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Properties sold
|
6,131
|
|
|
5,663
|
|
|
11,614
|
|
|
10,201
|
|
||||
REO inventory at period end
|
8,279
|
|
|
8,789
|
|
|
8,279
|
|
|
8,789
|
|
||||
HomeSearch.com
SM
and Xome registered users
|
105,410
|
|
|
39,459
|
|
|
284,854
|
|
|
56,538
|
|
||||
3rd party business %
|
30.2
|
%
|
|
9.5
|
%
|
|
30.3
|
%
|
|
13.3
|
%
|
Table 23. Xome - Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
$
|
49
|
|
|
$
|
14
|
|
|
$
|
91
|
|
|
$
|
25
|
|
General and administrative
|
46
|
|
|
30
|
|
|
83
|
|
|
57
|
|
||||
Expenses
|
$
|
94
|
|
|
$
|
44
|
|
|
$
|
174
|
|
|
$
|
82
|
|
Table 24. Corporate and Other - Operations
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
4
|
|
|
$
|
—
|
|
Expenses
|
(20
|
)
|
|
(18
|
)
|
|
(42
|
)
|
|
(30
|
)
|
||||
Other income (expense), net
|
(40
|
)
|
|
(49
|
)
|
|
(79
|
)
|
|
(99
|
)
|
||||
Income (loss) before taxes
|
$
|
(58
|
)
|
|
$
|
(68
|
)
|
|
$
|
(117
|
)
|
|
$
|
(129
|
)
|
Table 25. Income before taxes components
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Unsecured Senior Notes
|
$
|
(40
|
)
|
|
$
|
(49
|
)
|
|
$
|
(80
|
)
|
|
$
|
(100
|
)
|
Legacy
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Other Corporate
|
(18
|
)
|
|
(19
|
)
|
|
(36
|
)
|
|
(27
|
)
|
||||
Income (loss) before taxes
|
$
|
(58
|
)
|
|
$
|
(68
|
)
|
|
$
|
(117
|
)
|
|
$
|
(129
|
)
|
Table 26. Legacy Portfolio
|
As of June 30,
|
|
As of December 31,
|
||||
(in millions)
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Performing - UPB
|
$
|
185
|
|
|
$
|
196
|
|
Nonperforming (90+ Delinquency) - UPB
|
77
|
|
|
80
|
|
||
REO - Estimated Fair Value
|
2
|
|
|
38
|
|
||
Total Legacy Portfolio
|
$
|
264
|
|
|
$
|
314
|
|
Table 27. Corporate and Other - Expenses
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
$
|
12
|
|
|
$
|
9
|
|
|
$
|
21
|
|
|
$
|
14
|
|
General and administrative
|
8
|
|
|
9
|
|
|
21
|
|
|
16
|
|
||||
Expenses
|
$
|
20
|
|
|
$
|
18
|
|
|
$
|
42
|
|
|
$
|
30
|
|
Table 28. Corporate and Other - Other income (expense), net
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income, Legacy Portfolio
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
7
|
|
|
$
|
8
|
|
Interest expense, Legacy Portfolio
|
(2
|
)
|
|
(2
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||
Interest Expense, Unsecured Senior Notes
|
(40
|
)
|
|
(50
|
)
|
|
(80
|
)
|
|
(100
|
)
|
||||
Other
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Other income (expense), net
|
$
|
(40
|
)
|
|
$
|
(49
|
)
|
|
$
|
(79
|
)
|
|
$
|
(99
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||
WAC - Unsecured Senior Notes
|
7.3
|
%
|
|
7.8
|
%
|
|
7.3
|
%
|
|
7.8
|
%
|
|
As of June 30,
|
|
December 31,
|
||||||||||||||||||
Table 29. MSRs and Related Liabilities
|
2015
|
|
2014
|
||||||||||||||||||
(in millions)
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
||||||||||
Agency
|
$
|
244,429
|
|
|
$
|
2,493
|
|
|
4.47
|
%
|
|
$
|
215,303
|
|
|
$
|
2,069
|
|
|
4.49
|
%
|
Non-Agency
|
108,978
|
|
|
857
|
|
|
4.61
|
%
|
|
118,310
|
|
|
881
|
|
|
4.66
|
%
|
||||
MSRs - Fair Value
|
353,407
|
|
|
3,350
|
|
|
4.51
|
%
|
|
333,613
|
|
|
2,950
|
|
|
4.55
|
%
|
||||
Subservicing
and Other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
16,096
|
|
|
N/A
|
|
|
N/A
|
|
|
15,008
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-Agency
|
2,695
|
|
|
N/A
|
|
|
N/A
|
|
|
4,473
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total Subservicing and Other
(1)
|
18,791
|
|
|
—
|
|
|
N/A
|
|
|
19,481
|
|
|
—
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSRs - LOCOM
(2)
|
31,841
|
|
|
11
|
|
|
N/A
|
|
|
27,982
|
|
|
11
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
404,039
|
|
|
$
|
3,361
|
|
|
N/A
|
|
|
$
|
381,076
|
|
|
$
|
2,961
|
|
|
N/A
|
|
|
As of June 30,
|
|
As of December 31,
|
||||||||||||||||||
Table 30. Fair Value MSR Valuation
|
2015
|
|
2014
|
||||||||||||||||||
($ in millions)
|
UPB
|
|
Carrying Amount
|
|
Bps
|
|
UPB
|
|
Carrying Amount
|
|
Bps
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSRs - Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit Sensitive
|
$
|
247,720
|
|
|
$
|
2,172
|
|
|
88
|
|
|
$
|
241,770
|
|
|
$
|
1,919
|
|
|
79
|
|
Interest Sensitive
|
105,687
|
|
|
1,178
|
|
|
111
|
|
|
91,843
|
|
|
1,030
|
|
|
112
|
|
||||
Total MSRs - Fair Value
|
$
|
353,407
|
|
|
$
|
3,350
|
|
|
95
|
|
|
$
|
333,613
|
|
|
$
|
2,949
|
|
|
88
|
|
Table 31. MSRs - Fair Value, Rollforward
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Fair value at the beginning of the period
|
$
|
3,022
|
|
|
$
|
2,577
|
|
|
$
|
2,950
|
|
|
$
|
2,488
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Servicing retained from whole loan sales
|
61
|
|
|
62
|
|
|
106
|
|
|
120
|
|
||||
Purchases of servicing assets
|
256
|
|
|
85
|
|
|
494
|
|
|
194
|
|
||||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Due to changes in valuation inputs or assumptions used in the valuation model
|
|
|
|
|
|
|
|
|
|
||||||
Credit sensitive
|
46
|
|
|
19
|
|
|
78
|
|
|
45
|
|
||||
Interest sensitive
|
82
|
|
|
9
|
|
|
(60
|
)
|
|
(20
|
)
|
||||
Other changes in fair value
|
|
|
|
|
|
|
|
||||||||
Scheduled principal payments
|
(19
|
)
|
|
(21
|
)
|
|
(35
|
)
|
|
(38
|
)
|
||||
Voluntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(60
|
)
|
|
(57
|
)
|
|
(98
|
)
|
|
(111
|
)
|
||||
Interest sensitive
|
(37
|
)
|
|
(16
|
)
|
|
(70
|
)
|
|
(25
|
)
|
||||
Prepayments
|
|
|
|
|
|
|
|
||||||||
Involuntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
—
|
|
|
21
|
|
|
(14
|
)
|
|
26
|
|
||||
Interest sensitive
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Fair value at the end of the period
|
$
|
3,350
|
|
|
$
|
2,679
|
|
|
$
|
3,350
|
|
|
$
|
2,678
|
|
|
As of June 30,
|
||||
Table 32. MSRs - Fair Value, weighted average assumptions
|
2015
|
|
2014
|
||
|
|
|
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
11.66
|
%
|
|
12.30
|
%
|
Total prepayment speeds
|
17.05
|
%
|
|
20.38
|
%
|
Expected weighted-average life (years)
|
5.91 years
|
|
|
4.70 years
|
|
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9.10
|
%
|
|
9.39
|
%
|
Total prepayment speeds
|
11.68
|
%
|
|
10.56
|
%
|
Expected weighted average life (years)
|
6.38 years
|
|
|
6.91 years
|
|
Table 33. Excess Spread Financing
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
|
|
|
||||
Fair value at the beginning of the period
|
$1,047
|
|
$978
|
|
$1,031
|
|
$986
|
||||
Additions:
|
|
|
|
|
|
|
|
||||
New financings
|
205
|
|
|
73
|
|
|
258
|
|
|
111
|
|
Deductions:
|
|
|
|
|
|
|
|
||||
Settlements
|
(50
|
)
|
|
(42
|
)
|
|
(100
|
)
|
|
(85
|
)
|
Fair Value Changes
|
|
|
|
|
|
|
|
||||
Credit Sensitive
|
21
|
|
|
27
|
|
|
47
|
|
|
24
|
|
Interest Sensitive
|
5
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
Fair value at the end of the period
|
$1,228
|
|
$1,036
|
|
$1,228
|
|
$1,036
|
||||
|
|
|
|
|
|
|
|
||||
Weighted-average assumptions:
|
|
|
|
|
|
|
|
||||
Mortgage prepayment speeds
|
11.2
|
%
|
|
13.0
|
%
|
|
11.2
|
%
|
|
13.0
|
%
|
Average life of mortgage loans
|
6.1 years
|
|
|
4.8 years
|
|
|
6.1 years
|
|
|
4.8 years
|
|
Discount rate
|
11.4
|
%
|
|
11.7
|
%
|
|
11.4
|
%
|
|
11.8
|
%
|
|
|
|
|
|
|
|
|
||||
Credit sensitive:
|
|
|
|
|
|
|
|
||||
Mortgage prepayment spreads
|
11.3
|
%
|
|
13.0
|
%
|
|
11.3
|
%
|
|
13.0
|
%
|
Average life of mortgage loans
|
6.1 years
|
|
|
4.8 years
|
|
|
6.1 years
|
|
|
4.8 years
|
|
Discount rate
|
11.5
|
%
|
|
11.7
|
%
|
|
11.5
|
%
|
|
11.7
|
%
|
|
|
|
|
|
|
|
|
||||
Interest sensitive:
|
|
|
|
|
|
|
|
||||
Mortgage prepayment spreads
|
9.0
|
%
|
|
N/A
|
|
9.0
|
%
|
|
N/A
|
||
Average life of mortgage loans
|
6.3 years
|
|
|
N/A
|
|
6.3 years
|
|
|
N/A
|
||
Discount rate
|
8.6
|
%
|
|
N/A
|
|
8.6
|
%
|
|
N/A
|
Table 34. MSRs Financing Liability - Rollforward
|
For the three months ended June 30,
|
|
For the six months ended June 30,
|
||||||||||||
(in millions)
|
2015
|
|
2014
|
|
2015
|
|
2014
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Fair value at the beginning of the period
|
$
|
45
|
|
|
$
|
30
|
|
|
$
|
49
|
|
|
$
|
30
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
New financings
|
—
|
|
|
21
|
|
|
—
|
|
|
21
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Changes in fair value
(1)
:
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Changes in fair value:
|
14
|
|
|
(11
|
)
|
|
10
|
|
|
(11
|
)
|
||||
Fair value at the end of the period
|
$
|
59
|
|
|
$
|
40
|
|
|
$
|
59
|
|
|
$
|
40
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average assumptions:
|
|
|
|
|
|
|
|
||||||||
Advance financing rates
|
2.79
|
%
|
|
2.40
|
%
|
|
2.79
|
%
|
|
2.40
|
%
|
||||
Annual advance recovery rates
|
24.67
|
%
|
|
24.24
|
%
|
|
24.67
|
%
|
|
24.24
|
%
|
Table 35. Leveraged Portfolio Characteristics
|
June 30,
|
|
December 31,
|
||||
(in millions)
|
2015
|
|
2014
|
||||
|
|
||||||
Owned forward servicing portfolio - unencumbered
|
$
|
93,973
|
|
|
$
|
93,673
|
|
Owned forward servicing portfolio - encumbered
|
259,434
|
|
|
239,940
|
|
||
Subserviced forward servicing portfolio and other
|
18,791
|
|
|
19,481
|
|
||
Total unpaid principal balance
|
$
|
372,198
|
|
|
$
|
353,094
|
|
Table 36. Reverse Portfolio Characteristics
|
June 30,
|
|
December 31,
|
||||
($ in millions, except for average loan amount)
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Loan count
|
173,594
|
|
|
159,704
|
|
||
Ending unpaid principal balance
|
$
|
31,841
|
|
|
$
|
27,982
|
|
Average loan amount
|
$
|
183,422
|
|
|
$
|
175,212
|
|
Average coupon
|
3.11
|
%
|
|
2.94
|
%
|
||
Average borrower age
|
79
|
|
|
79
|
|
Table 38. Assets
|
June 30, 2015
|
|
December 31, 2014
|
|
% Change
|
|||||
(in millions)
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
563
|
|
|
$
|
299
|
|
|
88
|
%
|
Mortgage servicing rights
|
3,360
|
|
|
2,961
|
|
|
13
|
%
|
||
Advances
|
2,348
|
|
|
2,546
|
|
|
(8
|
)%
|
||
Reverse mortgage interests
|
7,425
|
|
|
2,453
|
|
|
203
|
%
|
||
Mortgage loans held for sale
|
1,906
|
|
|
1,278
|
|
|
49
|
%
|
||
Other assets
|
1,719
|
|
|
1,576
|
|
|
9
|
%
|
||
Total assets
|
$
|
17,321
|
|
|
$
|
11,113
|
|
|
56
|
%
|
Table 39. Liabilities and Stockholders' Equity Analysis
|
June 30, 2015
|
|
December 31, 2014
|
|
% Change
|
|||||
(in millions)
|
|
|
|
|
|
|||||
Unsecured Senior Notes
|
$
|
2,158
|
|
|
$
|
2,159
|
|
|
—
|
%
|
Advance facilities
|
1,826
|
|
|
1,902
|
|
|
(4
|
)%
|
||
Warehouse facilities
|
2,153
|
|
|
1,573
|
|
|
37
|
%
|
||
MSR related liabilities - nonrecourse
|
1,287
|
|
|
1,080
|
|
|
19
|
%
|
||
Other nonrecourse debt
|
6,694
|
|
|
1,768
|
|
|
279
|
%
|
||
Other liabilities
|
1,446
|
|
|
1,406
|
|
|
3
|
%
|
||
Total liabilities
|
15,564
|
|
|
9,888
|
|
|
57
|
%
|
||
Total equity
|
1,757
|
|
|
1,224
|
|
|
44
|
%
|
||
Total liabilities and equity
|
$
|
17,321
|
|
|
$
|
11,112
|
|
|
56
|
%
|
▪
|
Base of $2.5 million plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth/Total Asset 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 including: 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 40. Cash
|
As of June 30,
|
|
As of December 31,
|
||||
(in millions)
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Cash and cash equivalents
|
$
|
563
|
|
|
$
|
299
|
|
Table 41. Operating Cash Flow
|
For the six months ended June 30,
|
||||||
(in millions)
|
2015
|
|
2014
|
||||
|
|
|
|
||||
Net cash attributable to operating activities
|
$
|
(297
|
)
|
|
$
|
863
|
|
Table 42. Investing Cash Flows
|
For the six months ended June 30,
|
|||||
(in millions)
|
2015
|
|
2014
|
|||
|
|
|
|
|||
Net cash attributable to investing activities
|
(5,388
|
)
|
|
$
|
283
|
|
Table 43. Financing Cash Flow
|
For the six months ended June 30,
|
|||||
(in millions)
|
2015
|
|
2014
|
|||
|
|
|
|
|||
Net cash attributable to financing activities
|
5,949
|
|
|
$
|
(964
|
)
|
Table 44. Debt
|
|
As of June 30,
|
|
December 31,
|
||||
(in millions)
|
|
2015
|
|
2014
|
||||
|
|
|
|
|
||||
Advance facilities
|
|
$
|
1,826
|
|
|
$
|
1,902
|
|
Warehouse facilities
|
|
2,153
|
|
|
1,573
|
|
||
Unsecured Senior Notes
|
|
2,158
|
|
|
2,159
|
|
•
|
our ability to refinance existing loans and maintain our loan originations volume;
|
•
|
our ability to increase recapture voluntary prepayments related to our existing servicing portfolio;
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to successfully enhance the home buying experience;
|
•
|
the success of our customer-for-life initiatives;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
our ability to obtain sufficient capital to meet our financing requirements;
|
•
|
changes in prevailing interest rates;
|
•
|
changes in our business relationships or changes in guidelines with Fannie Mae, Freddie Mac and Ginnie Mae;
|
•
|
our ability to effectively develop, market, sell and implement new technology;
|
•
|
increased legal and regulatory proceedings, compliance requirements and related costs; and
|
•
|
loss of our licenses.
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
4.1
|
Amendment No. 2 to the Fourth Amended and Restated Indenture, dated May 5, 2015, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent and Credit Suisse AG, New York Branch, as administrative agent
|
|
|
|
|
X
|
4.2
|
Amendment No. 3 to the Fourth Amended and Restated Indenture, dated June 26, 2015, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent and Credit Suisse AG, New York Branch, as administrative agent
|
|
|
|
|
X
|
4.3
|
Amendment No. 6, dated as of May 5, 2015 to the Series 2013-VF1 Indenture Supplement, dated as of January 31, 2013 to the Fourth Amended and Restated Indenture, dated as of January 31, 2013, between Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Barclays Bank PLC, as administrative agent and as noteholder, Credit Suisse AG, New York Branch as administrative agent and Credit Suisse AG, Cayman Islands Branch as noteholder
|
|
|
|
|
X
|
4.4
|
Amendment No. 7, dated as of June 26, 2015 to the Series 2013-VF1 Indenture Supplement, dated as of January 31, 2013 to the Fourth Amended and Restated Indenture, dated as of January 31, 2013, between Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Barclays Bank PLC, as administrative agent and as noteholder, Credit Suisse AG, New York Branch as administrative agent and Credit Suisse AG, Cayman Islands Branch as noteholder
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
31.1
|
Certification by Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
31.2
|
Certification by Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
32.1
|
Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
32.2
|
Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
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
|
**
|
Management contract, compensatory plan or arrangement.
|
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
|
|
|
|
August 3, 2015
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
August 3, 2015
|
|
/s/ Robert D. Stiles
|
Date
|
|
Robert D. Stiles
Chief Financial Officer
(Principal Accounting and Financial Officer)
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
4.1
|
Amendment No. 2 to the Fourth Amended and Restated Indenture, dated May 5, 2015, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent and Credit Suisse AG, New York Branch, as administrative agent
|
|
|
|
|
X
|
4.2
|
Amendment No. 3 to the Fourth Amended and Restated Indenture, dated June 26, 2015, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent and Credit Suisse AG, New York Branch, as administrative agent
|
|
|
|
|
X
|
4.3
|
Amendment No. 6, dated as of May 5, 2015 to the Series 2013-VF1 Indenture Supplement, dated as of January 31, 2013 to the Fourth Amended and Restated Indenture, dated as of January 31, 2013, between Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Barclays Bank PLC, as administrative agent and as noteholder, Credit Suisse AG, New York Branch as administrative agent and Credit Suisse AG, Cayman Islands Branch as noteholder
|
|
|
|
|
X
|
4.4
|
Amendment No. 7, dated as of June 26, 2015 to the Series 2013-VF1 Indenture Supplement, dated as of January 31, 2013 to the Fourth Amended and Restated Indenture, dated as of January 31, 2013, between Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Barclays Bank PLC, as administrative agent and as noteholder, Credit Suisse AG, New York Branch as administrative agent and Credit Suisse AG, Cayman Islands Branch as noteholder
|
|
|
|
|
X
|
|
|
|
|
|
|
|
31.1
|
Certification by Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
31.2
|
Certification by Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
32.1
|
Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
32.2
|
Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
X
|
|
|
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
X
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
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
|
**
|
Management contract, compensatory plan or arrangement.
|
By:
|
Wilmington Trust, National Association, not in its individual capacity but solely as Owner Trustee
|
By:
|
Wilmington Trust, National Association, not in its individual capacity but solely as Owner Trustee
|
By.
|
/s/ Adam Scozzafava
Name: Adam Scozzafava Title: Vice President |
By.
|
/s/ Michael Commisso
Name: Michael Commisso Title: Vice President |
By.
|
/s/ Amar Patel
Name: Amar Patel Title: Executive Vice President |
By.
|
/s/ Joseph O’Doherty
Name: Joseph O’Doherty Title: Managing Director |
By.
|
/s/ Oliver Nisenson
Name: Oliver Nisenson Title: Director |
By.
|
/s/ Jason Muncy
Name: Jason Muncy Title: Vice President |
By:
|
/s/ Joseph O’Doherty
Name: Joseph O’Doherty Title: Managing Director |
By:
|
/s/ Oliver Nisenson
Name: Oliver Nisenson Title: Authorized Signatory |
By:
|
/s/ Jason D. Muncy
Name: Jason D. Muncy Title: Authorized Signatory |
Class
|
Note #
|
Noteholder
|
Related Administrative Agent
|
Note Maximum Principal Balance
|
||
A‐VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$176,174,370
|
|
|
8
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$352,348,741
|
|
B‐VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$72,545,953
|
|
|
8
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$145,091,905
|
|
C‐VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$42,649,594
|
|
|
8
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$85,299,189
|
|
D‐VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$108,630,083
|
|
|
8
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$217,260,165
|
|
By:
|
/s/ Adam Scozzafava
Name: Adam Scozzafava Title: Vice President |
By:
|
/s/ Michael Commisso
Name: Michael Commisso Title: Vice President |
By:
|
/s/ Amar Patel
Name: Amar Patel Title: Executive Vice President |
By:
|
/s/ Martin Atten
Name: Martin Atten Title: MD |
By:
|
/s/ Patrick J. Hart
Name: Patrick J. Hart Title: Vice President |
By:
|
/s/ Erin McCutcheon
Name: Erin McCutcheon Title: Vice President |
By:
|
/s/ Martin Atten
Name: Martin Atten Title: MD |
By:
|
/s/ Patrick J. Hart
Name: Patrick J. Hart Title: Vice President |
By:
|
/s/ Erin McCutcheon
Name: Erin McCutcheon Title: Vice President |
Class
|
Note #
|
Noteholder
|
Related Administrative Agent
|
Note Maximum Principal Balance
|
||
A-VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$309,859,000
|
|
|
9
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$619,718,000
|
|
B-VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$46,178,433
|
|
|
9
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$92,356,867
|
|
C-VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$10,066,467
|
|
|
9
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$20,132,933
|
|
D-VF1
|
7
|
Credit Suisse AG, New York Branch, solely in its capacity as Administrative Agent on behalf of Credit Suisse AG, Cayman Islands Branch, as Committed Purchaser
|
Credit Suisse AG, New York Branch
|
|
$33,896,100
|
|
|
9
|
BARCLAYS BANK PLC
|
Barclays Bank PLC
|
|
$67,792,200
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2015 of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15(d) - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
August 3, 2015
|
|
|
|
/s/ Jay Bray
|
|
|
|
|
Jay Bray
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2015 of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
August 3, 2015
|
|
|
|
/s/ Robert D. Stiles
|
|
|
|
|
Robert D. Stiles
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
August 3, 2015
|
|
|
/s/ Jay Bray
|
||
|
Jay Bray
|
||
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
August 3, 2015
|
|
/s/ Robert D. Stiles
|
|
|
Robert D. Stiles
|
|
|
Chief Financial Officer
|