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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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¨
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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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¨
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Accelerated Filer
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x
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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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Page
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PART I
|
FINANCIAL INFORMATION
|
|
|
|
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Item 1.
|
||
|
|
|
|
Consolidated Balance Sheets as of June 30, 2016 (unaudited) and December 31, 2015
|
|
|
|
|
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Consolidated Statements of Operations (unaudited) for the Three and Six Months Ended June 30, 2016 and 2015
|
|
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Consolidated Statements of Stockholders’ Equity (unaudited) for the Six Months Ended June 30, 2016 and 2015
|
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Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 30, 2016 and 2015
|
|
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Notes to Consolidated Financial Statements (unaudited)
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|
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Item 2.
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||
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Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
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Item 4.
|
||
|
|
|
PART II
|
OTHER INFORMATION
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
||
|
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
624
|
|
|
$
|
613
|
|
Restricted cash
|
303
|
|
|
332
|
|
||
Mortgage servicing rights, $2,794 and $3,358 at fair value, respectively
|
2,801
|
|
|
3,367
|
|
||
Advances and other receivables, net of reserves of $238 and $130, respectively
|
2,066
|
|
|
2,412
|
|
||
Reverse mortgage interests, net of reserves of $71 and $53, respectively
|
7,463
|
|
|
7,514
|
|
||
Mortgage loans held for sale at fair value
|
2,201
|
|
|
1,430
|
|
||
Mortgage loans held for investment, net of allowance for loan losses of $4 and $4, respectively
|
159
|
|
|
174
|
|
||
Property and equipment, net of accumulated depreciation of $118 and $93, respectively
|
142
|
|
|
143
|
|
||
Derivative financial instruments at fair value
|
118
|
|
|
100
|
|
||
Other assets
|
608
|
|
|
532
|
|
||
Total assets
|
$
|
16,485
|
|
|
$
|
16,617
|
|
|
|
|
|
||||
Liabilities and stockholders' equity
|
|
|
|
||||
Unsecured senior notes, net of unamortized debt issuance costs $20 and $23, respectively
|
$
|
2,003
|
|
|
$
|
2,026
|
|
Advance facilities, net of unamortized debt issuance costs $1 and $6, respectively
|
1,436
|
|
|
1,640
|
|
||
Warehouse facilities, net of unamortized debt issuance costs $1 and $3, respectively
|
2,793
|
|
|
1,890
|
|
||
Payables and accrued liabilities
|
1,083
|
|
|
1,296
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,175
|
|
|
1,301
|
|
||
Mortgage servicing liabilities
|
12
|
|
|
25
|
|
||
Derivative financial instruments at fair value
|
30
|
|
|
6
|
|
||
Other nonrecourse debt, net of unamortized debt issuance costs $8 and $4, respectively
|
6,511
|
|
|
6,666
|
|
||
Total liabilities
|
15,043
|
|
|
14,850
|
|
||
Commitments and contingencies (Note 15)
|
|
|
|
|
|
||
Preferred stock at $0.01 par value - 300,000 thousand shares authorized, no shares issued and outstanding
|
—
|
|
|
—
|
|
||
Common stock at $0.01 par value - 1,000,000 thousand shares authorized, 109,913 thousand and 109,826 thousand shares issued, respectively
|
1
|
|
|
1
|
|
||
Additional paid-in-capital
|
1,113
|
|
|
1,105
|
|
||
Retained earnings
|
458
|
|
|
682
|
|
||
Treasury shares at cost, 11,763 thousand and 1,826 thousand shares, respectively
|
(139
|
)
|
|
(30
|
)
|
||
Total Nationstar stockholders' equity
|
1,433
|
|
|
1,758
|
|
||
Noncontrolling interest
|
9
|
|
|
9
|
|
||
Total stockholders' equity
|
1,442
|
|
|
1,767
|
|
||
Total liabilities and stockholders' equity
|
$
|
16,485
|
|
|
$
|
16,617
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Service related, net
|
$
|
113
|
|
|
$
|
458
|
|
|
$
|
197
|
|
|
$
|
673
|
|
Net gain on mortgage loans held for sale
|
216
|
|
|
164
|
|
|
387
|
|
|
331
|
|
||||
Total revenues
|
329
|
|
|
622
|
|
|
584
|
|
|
1,004
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
205
|
|
|
198
|
|
|
402
|
|
|
377
|
|
||||
General and administrative
|
208
|
|
|
243
|
|
|
423
|
|
|
448
|
|
||||
Total expenses
|
413
|
|
|
441
|
|
|
825
|
|
|
825
|
|
||||
Other income (expenses):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
107
|
|
|
87
|
|
|
210
|
|
|
131
|
|
||||
Interest expense
|
(167
|
)
|
|
(148
|
)
|
|
(328
|
)
|
|
(264
|
)
|
||||
Total other expenses, net
|
(60
|
)
|
|
(61
|
)
|
|
(118
|
)
|
|
(133
|
)
|
||||
Income (loss) before income tax expense (benefit)
|
(144
|
)
|
|
120
|
|
|
(359
|
)
|
|
46
|
|
||||
Less: income tax expense (benefit)
|
(53
|
)
|
|
44
|
|
|
(135
|
)
|
|
17
|
|
||||
Net income (loss)
|
(91
|
)
|
|
76
|
|
|
(224
|
)
|
|
29
|
|
||||
Less: net income attributable to non-controlling interests
|
1
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
(92
|
)
|
|
$
|
75
|
|
|
$
|
(224
|
)
|
|
$
|
26
|
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share attributable to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.92
|
)
|
|
$
|
0.69
|
|
|
$
|
(2.20
|
)
|
|
$
|
0.27
|
|
Diluted
|
$
|
(0.92
|
)
|
|
$
|
0.69
|
|
|
$
|
(2.20
|
)
|
|
$
|
0.26
|
|
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
100,055
|
|
|
107,521
|
|
|
102,016
|
|
|
98,864
|
|
||||
Dilutive effect of stock awards
|
—
|
|
|
368
|
|
|
—
|
|
|
548
|
|
||||
Diluted
|
100,055
|
|
|
107,889
|
|
|
102,016
|
|
|
99,412
|
|
|
Number of Shares Outstanding (in thousands)
|
|
Amount
(millions of dollars)
|
|||||||||||||||||||||||||||
|
Common Stock
|
|
Common Stock
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Share Amount
|
|
Total Nationstar Stockholders'
Equity
|
|
Non-controlling Interests
|
|
Total
Equity
|
|||||||||||||||
Balance at December 31, 2014
|
90,357
|
|
|
$
|
1
|
|
|
$
|
587
|
|
|
$
|
643
|
|
|
$
|
(12
|
)
|
|
$
|
1,219
|
|
|
$
|
5
|
|
|
$
|
1,224
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
—
|
|
|
26
|
|
|
3
|
|
|
29
|
|
|||||||
Shares (surrendered) issued under incentive plan, net
|
1,024
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
11
|
|
|||||||
Issuance of common stock
|
17,500
|
|
|
—
|
|
|
498
|
|
|
—
|
|
|
—
|
|
|
498
|
|
|
—
|
|
|
498
|
|
|||||||
Excess tax benefit from share based compensation
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|||||||
Balance at June 30, 2015
|
108,881
|
|
|
$
|
1
|
|
|
$
|
1,097
|
|
|
$
|
669
|
|
|
$
|
(18
|
)
|
|
$
|
1,749
|
|
|
$
|
8
|
|
|
$
|
1,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2015
|
108,000
|
|
|
$
|
1
|
|
|
$
|
1,105
|
|
|
$
|
682
|
|
|
$
|
(30
|
)
|
|
$
|
1,758
|
|
|
$
|
9
|
|
|
$
|
1,767
|
|
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(224
|
)
|
|
—
|
|
|
(224
|
)
|
|
—
|
|
|
(224
|
)
|
|||||||
Shares (surrendered) issued under incentive plan, net
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
|||||||
Excess tax deficiency from share-based compensation
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
|||||||
Repurchase of common stock
|
(9,843
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
|
(106
|
)
|
|
—
|
|
|
(106
|
)
|
|||||||
Balance at June 30, 2016
|
98,150
|
|
|
$
|
1
|
|
|
$
|
1,113
|
|
|
$
|
458
|
|
|
$
|
(139
|
)
|
|
$
|
1,433
|
|
|
$
|
9
|
|
|
$
|
1,442
|
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
(224
|
)
|
|
$
|
26
|
|
Reconciliation of net income (loss) to net cash attributable to operating activities:
|
|
|
|
||||
Noncontrolling interest
|
—
|
|
|
3
|
|
||
Net gain on mortgage loans held for sale
|
(388
|
)
|
|
(331
|
)
|
||
Loss on interest rate swaps and caps
|
—
|
|
|
1
|
|
||
Provision for reserves on advances and other receivables
|
58
|
|
|
23
|
|
||
Fair value changes and amortization of mortgage servicing rights
|
624
|
|
|
183
|
|
||
Fair value changes in excess spread financing
|
(42
|
)
|
|
39
|
|
||
Fair value changes in mortgage servicing rights financing liability
|
11
|
|
|
10
|
|
||
Amortization (accretion) of premiums (discounts)
|
19
|
|
|
(12
|
)
|
||
Depreciation and amortization
|
44
|
|
|
36
|
|
||
Share-based compensation
|
12
|
|
|
11
|
|
||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
|
(770
|
)
|
|
(833
|
)
|
||
Mortgage loans originated and purchased, net of fees
|
(9,986
|
)
|
|
(9,051
|
)
|
||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
10,305
|
|
|
9,430
|
|
||
Excess tax deficiency (benefit) from share-based compensation
|
4
|
|
|
(1
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Advances and other receivables, net
|
290
|
|
|
284
|
|
||
Reverse mortgage interests, net
|
50
|
|
|
(124
|
)
|
||
Other assets
|
(86
|
)
|
|
(23
|
)
|
||
Payables and accrued liabilities
|
(217
|
)
|
|
39
|
|
||
Net cash attributable to operating activities
|
(296
|
)
|
|
(290
|
)
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Property and equipment additions, net of disposals
|
(26
|
)
|
|
(27
|
)
|
||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
1
|
|
|
(500
|
)
|
||
Purchase of reverse mortgage interests
|
—
|
|
|
(4,816
|
)
|
||
Sale of forward mortgage servicing rights
|
15
|
|
|
—
|
|
||
Proceeds on sale of reverse mortgage servicing rights
|
1
|
|
|
—
|
|
||
Acquisitions, net
|
—
|
|
|
(45
|
)
|
||
Net cash attributable to investing activities
|
(9
|
)
|
|
(5,388
|
)
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Financing Activities
|
|
|
|
||||
Increase in warehouse facilities
|
1,077
|
|
|
578
|
|
||
Proceeds from HECM securitizations
|
311
|
|
|
341
|
|
||
Repayment of HECM securitizations
|
(362
|
)
|
|
(63
|
)
|
||
Increase (decrease) in participating interest financing in reverse mortgage interests
|
(286
|
)
|
|
4,633
|
|
||
Decrease in advance facilities
|
(209
|
)
|
|
(79
|
)
|
||
Repayment of excess spread financing
|
(95
|
)
|
|
(100
|
)
|
||
Issuance of excess spread financing
|
—
|
|
|
258
|
|
||
Repayment of nonrecourse debt – legacy assets
|
(8
|
)
|
|
(6
|
)
|
||
Repurchase of unsecured senior notes
|
(25
|
)
|
|
—
|
|
||
Repurchase of common stock
|
(106
|
)
|
|
—
|
|
||
Issuance of common stock, net of issuance costs
|
—
|
|
|
498
|
|
||
Transfers (to) from restricted cash, net
|
31
|
|
|
(102
|
)
|
||
Excess tax (deficiency) benefit from share-based compensation
|
(4
|
)
|
|
1
|
|
||
Surrender of shares relating to stock vesting
|
(3
|
)
|
|
(6
|
)
|
||
Debt financing costs
|
(5
|
)
|
|
(11
|
)
|
||
Net cash attributable to financing activities
|
316
|
|
|
5,942
|
|
||
Net increase in cash and cash equivalents
|
11
|
|
|
264
|
|
||
Cash and cash equivalents at beginning of period
|
613
|
|
|
299
|
|
||
Cash and cash equivalents at end of period
|
$
|
624
|
|
|
$
|
563
|
|
|
|
|
|
||||
Supplemental disclosures of cash activities
|
|
|
|
||||
Cash paid for interest expense
|
$
|
339
|
|
|
$
|
263
|
|
Net cash paid for income taxes
|
$
|
28
|
|
|
$
|
10
|
|
Supplemental disclosures of non-cash activities
|
|
|
|
||||
Claims made to third parties
|
$
|
2
|
|
|
$
|
35
|
|
|
As presented
|
|
Reclassification
|
|
As adjusted
|
|||||||||
|
December 31, 2015
|
|
ASU 2015-03
|
Other
|
|
December 31, 2015
|
||||||||
Advances and other receivables, net
|
$
|
2,223
|
|
|
$
|
—
|
|
$
|
189
|
|
|
$
|
2,412
|
|
Other assets
|
759
|
|
|
(38
|
)
|
(189
|
)
|
|
532
|
|
||||
Unsecured senior notes
|
2,049
|
|
|
(23
|
)
|
—
|
|
|
2,026
|
|
||||
Advance facilities
|
1,646
|
|
|
(6
|
)
|
—
|
|
|
1,640
|
|
||||
Warehouse facilities
|
1,894
|
|
|
(4
|
)
|
—
|
|
|
1,890
|
|
||||
Other nonrecourse debt
|
6,671
|
|
|
(5
|
)
|
—
|
|
|
6,666
|
|
MSRs and Related Liabilities
|
June 30, 2016
|
|
December 31, 2015
|
||||
Forward MSRs - fair value
|
$
|
2,794
|
|
|
$
|
3,358
|
|
Reverse MSRs - LOCOM
|
7
|
|
|
9
|
|
||
Mortgage servicing rights
|
$
|
2,801
|
|
|
$
|
3,367
|
|
|
|
|
|
||||
Mortgage servicing liabilities - LOCOM
|
$
|
12
|
|
|
$
|
25
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,095
|
|
|
$
|
1,232
|
|
Mortgage servicing rights financing liability - fair value
|
80
|
|
|
69
|
|
||
MSR related liabilities (nonrecourse)
|
$
|
1,175
|
|
|
$
|
1,301
|
|
|
Six months ended June 30,
|
||||||
Forward MSRs - Fair Value
|
2016
|
|
2015
|
||||
Fair value at the beginning of the period
|
$
|
3,358
|
|
|
$
|
2,950
|
|
Additions:
|
|
|
|
||||
Servicing resulting from transfers of financial assets
|
86
|
|
|
105
|
|
||
Purchases of servicing assets
|
2
|
|
|
494
|
|
||
Dispositions:
|
|
|
|
||||
Sales of servicing assets
|
(16
|
)
|
|
—
|
|
||
Changes in fair value:
|
|
|
|
||||
Due to changes in valuation inputs or assumptions used in the valuation model
|
(462
|
)
|
|
18
|
|
||
Other changes in fair value
|
(174
|
)
|
|
(217
|
)
|
||
Fair value at the end of the period
|
$
|
2,794
|
|
|
$
|
3,350
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
202,936
|
|
|
$
|
1,763
|
|
|
$
|
224,334
|
|
|
$
|
2,017
|
|
Interest sensitive
|
115,663
|
|
|
1,031
|
|
|
121,342
|
|
|
1,341
|
|
||||
Total
|
$
|
318,599
|
|
|
$
|
2,794
|
|
|
$
|
345,676
|
|
|
$
|
3,358
|
|
Credit Sensitive
|
June 30, 2016
|
|
December 31, 2015
|
||
Discount rate
|
12
|
%
|
|
12
|
%
|
Total prepayment speeds
|
17
|
%
|
|
17
|
%
|
Expected weighted-average life
|
5.5 years
|
|
|
5.9 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9
|
%
|
|
9
|
%
|
Total prepayment speeds
|
16
|
%
|
|
12
|
%
|
Expected weighted-average life
|
5.0 years
|
|
|
6.1 years
|
|
|
Discount Rate
|
|
Total Prepayment
Speeds
|
||||||||||||
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(91
|
)
|
|
$
|
(176
|
)
|
|
$
|
(128
|
)
|
|
$
|
(243
|
)
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(123
|
)
|
|
$
|
(238
|
)
|
|
$
|
(132
|
)
|
|
$
|
(253
|
)
|
|
Six months ended June 30,
|
||||||||||||||
|
2016
|
|
2015
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Reverse MSRs - LOCOM
|
|
|
|
|
|
|
|
||||||||
Balance at the beginning of the period
|
$
|
9
|
|
|
$
|
25
|
|
|
$
|
12
|
|
|
$
|
65
|
|
Amortization/accretion
|
(2
|
)
|
|
(13
|
)
|
|
(2
|
)
|
|
(18
|
)
|
||||
Balance at end of the period
|
$
|
7
|
|
|
$
|
12
|
|
|
$
|
10
|
|
|
$
|
47
|
|
Fair value at end of period
(1)
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
32
|
|
|
$
|
39
|
|
Excess Spread Financing
|
Prepayment Speeds
|
|
Average
Life (Years) |
|
Discount
Rate |
|
Recapture Rate
|
June 30, 2016
|
|
|
|
|
|
|
|
Low
|
9%
|
|
3.7
|
|
9%
|
|
7%
|
High
|
18%
|
|
6.8
|
|
14%
|
|
28%
|
Weighted-average
|
13%
|
|
5.5
|
|
11%
|
|
18%
|
December 31, 2015
|
|
|
|
|
|
|
|
Low
|
7%
|
|
4.2
|
|
9%
|
|
7%
|
High
|
17%
|
|
7.8
|
|
14%
|
|
30%
|
Weighted-average
|
12%
|
|
5.9
|
|
11%
|
|
18%
|
|
Discount Rate
|
|
Prepayment
Speeds
|
||||||||||||
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
June 30, 2016
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
39
|
|
|
$
|
80
|
|
|
$
|
42
|
|
|
$
|
87
|
|
December 31, 2015
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
42
|
|
|
$
|
87
|
|
|
$
|
37
|
|
|
$
|
76
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||
Advance financing rates
|
3
|
%
|
|
3
|
%
|
Annual advance recovery rates
|
23
|
%
|
|
21
|
%
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
Servicing Segment Revenue
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Contractually specified servicing fees
|
$
|
261
|
|
|
$
|
278
|
|
|
$
|
532
|
|
|
$
|
541
|
|
Reverse servicing fees
|
17
|
|
|
23
|
|
|
35
|
|
|
43
|
|
||||
Incentive and modification income
|
23
|
|
|
30
|
|
|
47
|
|
|
53
|
|
||||
Late fees
|
19
|
|
|
16
|
|
|
37
|
|
|
34
|
|
||||
Other service-related income
|
43
|
|
|
52
|
|
|
80
|
|
|
89
|
|
||||
Remittances to counterparties for contractual transfer of servicing assets
|
(74
|
)
|
|
(73
|
)
|
|
(148
|
)
|
|
(147
|
)
|
||||
Amortization
|
(78
|
)
|
|
(88
|
)
|
|
(143
|
)
|
|
(164
|
)
|
||||
Ancillary
|
44
|
|
|
8
|
|
|
67
|
|
|
22
|
|
||||
Mark-to-market
|
(231
|
)
|
|
82
|
|
|
(493
|
)
|
|
(28
|
)
|
||||
Total servicing segment revenue
|
$
|
24
|
|
|
$
|
328
|
|
|
$
|
14
|
|
|
$
|
443
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Servicing advances
|
$
|
1,975
|
|
|
$
|
2,254
|
|
Receivables from agencies and investors
|
329
|
|
|
288
|
|
||
Reserves
|
(238
|
)
|
|
(130
|
)
|
||
Total advances and other receivables, net
|
$
|
2,066
|
|
|
$
|
2,412
|
|
|
|||||||
|
June 30, 2016
|
|
December 31, 2015
|
||||
Participating interests
|
$
|
5,594
|
|
|
$
|
5,864
|
|
Other interests securitized
|
854
|
|
|
715
|
|
||
Unsecuritized interests
|
1,086
|
|
|
988
|
|
||
Reserves
|
(71
|
)
|
|
(53
|
)
|
||
Total reverse mortgage interests, net
|
$
|
7,463
|
|
|
$
|
7,514
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Repurchased HECM loans
|
$
|
713
|
|
|
$
|
591
|
|
HECM related receivables
|
276
|
|
|
290
|
|
||
Funded borrower draws not yet securitized
|
84
|
|
|
83
|
|
||
Foreclosed assets
|
13
|
|
|
24
|
|
||
Total unsecuritized interests
|
$
|
1,086
|
|
|
$
|
988
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Accrued servicing fees
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
15
|
|
|
$
|
12
|
|
Accrued interest income on HECM loans
|
74
|
|
|
60
|
|
|
148
|
|
|
80
|
|
||||
Other
|
4
|
|
|
—
|
|
|
7
|
|
|
—
|
|
||||
Total reverse interest income
|
$
|
85
|
|
|
$
|
67
|
|
|
$
|
170
|
|
|
$
|
92
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Mortgage loans held for sale – unpaid principal balance
|
$
|
2,105
|
|
|
$
|
1,374
|
|
Mark-to-market adjustment
(1)
|
96
|
|
|
56
|
|
||
Total mortgage loans held for sale
|
$
|
2,201
|
|
|
$
|
1,430
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
Mortgage Loans Held for Sale - Unpaid Principal Balance
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Non-accrual
|
$
|
88
|
|
|
$
|
85
|
|
|
$
|
31
|
|
|
$
|
29
|
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Mortgage loans held for sale – beginning balance
|
$
|
1,430
|
|
|
$
|
1,278
|
|
Mortgage loans originated and purchased, net of fees
|
9,929
|
|
|
9,022
|
|
||
Claims made to third parties
(1)
|
(2
|
)
|
|
(35
|
)
|
||
Transfer of mortgage loans held for sale to held for investment or other assets
|
9
|
|
|
(4
|
)
|
||
Repurchase of loans out of Ginnie Mae securitizations
|
770
|
|
|
833
|
|
||
Loans sold
|
(9,935
|
)
|
|
(9,188
|
)
|
||
Mortgage loans held for sale – ending balance
|
$
|
2,201
|
|
|
$
|
1,906
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Mortgage loans held for investment, net – unpaid principal balance
|
$
|
230
|
|
|
$
|
250
|
|
Transfer discount:
|
|
|
|
||||
Accretable
|
(14
|
)
|
|
(15
|
)
|
||
Non-accretable
|
(53
|
)
|
|
(57
|
)
|
||
Allowance for loan losses
|
(4
|
)
|
|
(4
|
)
|
||
Total mortgage loans held for investment, net
|
$
|
159
|
|
|
$
|
174
|
|
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Accretable Yield
|
|
|
|
||||
Balance at the beginning of the period
|
$
|
(15
|
)
|
|
$
|
(16
|
)
|
Accretion
|
1
|
|
|
2
|
|
||
Reclassifications from nonaccretable discount
|
—
|
|
|
—
|
|
||
Balance at the end of the period
|
$
|
(14
|
)
|
|
$
|
(14
|
)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Accrued revenues
|
$
|
158
|
|
|
$
|
180
|
|
Loans subject to repurchase right from Ginnie Mae
|
134
|
|
|
117
|
|
||
Deferred tax asset
|
79
|
|
|
—
|
|
||
Goodwill
|
71
|
|
|
71
|
|
||
Other Servicing Assets
|
30
|
|
|
43
|
|
||
Intangible assets
|
46
|
|
|
50
|
|
||
Prepaid expenses
|
18
|
|
|
20
|
|
||
Receivables from affiliates, net
|
8
|
|
|
8
|
|
||
Other
|
64
|
|
|
43
|
|
||
Total other assets
|
$
|
608
|
|
|
$
|
532
|
|
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded
Gains /
(Losses)
|
||||||
Six months ended June 30, 2016
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2016
|
|
$
|
180
|
|
|
$
|
(1.2
|
)
|
|
$
|
(1.2
|
)
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2016
|
|
3,627
|
|
|
110.3
|
|
|
20.3
|
|
|||
Forward MBS trades
|
2016
|
|
307
|
|
|
0.1
|
|
|
(5.9
|
)
|
|||
LPCs
|
2016
|
|
550
|
|
|
7.1
|
|
|
3.1
|
|
|||
Eurodollar futures
(1)
|
2016-2021
|
|
7
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
|
2017
|
|
11
|
|
|
0.3
|
|
|
(0.7
|
)
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2016
|
|
5
|
|
|
—
|
|
|
—
|
|
|||
Forward MBS trades
|
2016
|
|
3,587
|
|
|
28.7
|
|
|
(24.7
|
)
|
|||
LPCs
|
2016
|
|
71
|
|
|
0.4
|
|
|
0.6
|
|
|||
Eurodollar futures
|
2016-2021
|
|
61
|
|
|
0.1
|
|
|
(0.1
|
)
|
|||
Interest rate swaps
|
2017
|
|
11
|
|
|
0.3
|
|
|
0.7
|
|
|||
|
|
|
|
|
|
|
|
||||||
Twelve months ended December 31, 2015
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2016
|
|
$
|
176
|
|
|
0.3
|
|
|
0.3
|
|
||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2016
|
|
2,768
|
|
|
89.1
|
|
|
1.2
|
|
|||
Forward MBS trades
|
2016
|
|
1,666
|
|
|
6.1
|
|
|
5.8
|
|
|||
LPCs
|
2016
|
|
388
|
|
|
3.9
|
|
|
1.9
|
|
|||
Eurodollar futures
|
2016-2021
|
|
176
|
|
|
0.1
|
|
|
0.1
|
|
|||
Interest rate swaps and caps
|
2016-2017
|
|
846
|
|
|
0.5
|
|
|
(0.4
|
)
|
|||
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2016
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Forward MBS trades
|
2016
|
|
1,807
|
|
|
3.7
|
|
|
14.6
|
|
|||
LPCs
|
2016
|
|
314
|
|
|
1.5
|
|
|
(1.4
|
)
|
|||
Eurodollar futures
|
2016-2021
|
|
95
|
|
|
0.1
|
|
|
(0.1
|
)
|
|||
Interest rate swaps and caps
|
2016-2017
|
|
13
|
|
|
0.5
|
|
|
(0.4
|
)
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
$475 face value, 6.500% interest rate payable semi-annually, due August 2018
|
$
|
475
|
|
|
$
|
475
|
|
$375 face value, 9.625% interest rate payable semi-annually, due May 2019
|
346
|
|
|
363
|
|
||
$400 face value, 7.875% interest rate payable semi-annually, due October 2020
|
400
|
|
|
400
|
|
||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
|
596
|
|
|
597
|
|
||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
|
206
|
|
|
214
|
|
||
Unsecured senior notes principal amount, subtotal
|
2,023
|
|
|
2,049
|
|
||
Debt issuance costs
|
(20
|
)
|
|
(23
|
)
|
||
Unsecured senior notes, net of unamortized debt issuance costs
|
$
|
2,003
|
|
|
$
|
2,026
|
|
Year
|
Amount
|
||
2016
|
$
|
—
|
|
2017
|
—
|
|
|
2018
|
475
|
|
|
2019
|
346
|
|
|
2020
|
400
|
|
|
Thereafter
|
802
|
|
|
Unsecured senior notes principal amount
|
2,023
|
|
|
Unamortized debt issuance costs
|
(20
|
)
|
|
Unsecured senior notes, net of unamortized debt issuance costs
|
$
|
2,003
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Participating interest financing
|
$
|
5,673
|
|
|
$
|
5,947
|
|
2014-1 HECM securitization
|
—
|
|
|
227
|
|
||
2015-1 HECM securitization
|
175
|
|
|
222
|
|
||
2015-2 HECM securitization
|
160
|
|
|
209
|
|
||
2016-1 HECM securitization
|
244
|
|
|
—
|
|
||
2016-2 HECM securitization
|
209
|
|
|
—
|
|
||
Nonrecourse debt - legacy assets
|
58
|
|
|
65
|
|
||
Other nonrecourse debt principal amount
|
6,519
|
|
|
6,670
|
|
||
Unamortized debt issuance costs
|
(8
|
)
|
|
(4
|
)
|
||
Other nonrecourse debt, net of unamortized debt issuance costs
|
$
|
6,511
|
|
|
$
|
6,666
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||
Payables to servicing and subservicing investors
|
$
|
433
|
|
|
$
|
484
|
|
Loans subject to repurchase from Ginnie Mae
|
134
|
|
|
117
|
|
||
Payable to GSEs and securitized trusts
|
81
|
|
|
113
|
|
||
Payable to insurance carriers and insurance cancellation reserves
|
73
|
|
|
70
|
|
||
Accrued bonus and payroll
|
66
|
|
|
96
|
|
||
Accrued interest
|
61
|
|
|
61
|
|
||
Professional and legal
|
48
|
|
|
40
|
|
||
Accrued liabilities and accounts payable
|
45
|
|
|
73
|
|
||
Repurchase reserves
|
26
|
|
|
26
|
|
||
Lease obligations
|
22
|
|
|
13
|
|
||
MSR purchases payable including advances
|
9
|
|
|
22
|
|
||
Other
|
85
|
|
|
181
|
|
||
Total payables and accrued liabilities
|
$
|
1,083
|
|
|
$
|
1,296
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
103
|
|
|
$
|
28
|
|
|
$
|
94
|
|
|
$
|
36
|
|
Reverse mortgage interests, net
|
—
|
|
|
6,414
|
|
|
—
|
|
|
6,547
|
|
||||
Advances and other receivables, net
|
1,342
|
|
|
—
|
|
|
1,581
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
160
|
|
|
—
|
|
|
173
|
|
|
—
|
|
||||
Other assets
|
4
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Total assets
|
$
|
1,609
|
|
|
$
|
6,442
|
|
|
$
|
1,853
|
|
|
$
|
6,583
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities
|
$
|
1,204
|
|
|
$
|
—
|
|
|
$
|
1,408
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
2
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||||
Nonrecourse debt–legacy assets
|
58
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
2014-1 HECM securitization
|
—
|
|
|
—
|
|
|
—
|
|
|
227
|
|
||||
2015-1 HECM securitization
|
—
|
|
|
175
|
|
|
—
|
|
|
222
|
|
||||
2015-2 HECM securitization
|
—
|
|
|
160
|
|
|
—
|
|
|
209
|
|
||||
2016-1 HECM securitization
|
—
|
|
|
244
|
|
|
—
|
|
|
—
|
|
||||
2016-2 HECM securitization
|
—
|
|
|
209
|
|
|
—
|
|
|
—
|
|
||||
Participating interest financing
|
—
|
|
|
5,673
|
|
|
—
|
|
|
5,947
|
|
||||
Total liabilities
|
$
|
1,264
|
|
|
$
|
6,461
|
|
|
$
|
1,475
|
|
|
$
|
6,606
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
2016
|
|
2015
|
|
2016
|
|
2015
|
|||||||||
Income tax expense (benefit)
|
$
|
(53
|
)
|
|
$
|
44
|
|
|
$
|
(135
|
)
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
37
|
%
|
|
37
|
%
|
|
38
|
%
|
|
36
|
%
|
|
|
|
June 30, 2016
|
||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
2,200.6
|
|
|
$
|
—
|
|
|
$
|
2,200.6
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
2,794.0
|
|
|
—
|
|
|
—
|
|
|
2,794.0
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
110.3
|
|
|
—
|
|
|
110.3
|
|
|
—
|
|
||||
Forward MBS trades
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
LPCs
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,112.4
|
|
|
$
|
—
|
|
|
$
|
2,318.4
|
|
|
$
|
2,794.0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
28.7
|
|
|
—
|
|
|
28.7
|
|
|
—
|
|
||||
LPCs
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Eurodollar futures
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
80.0
|
|
|
—
|
|
|
—
|
|
|
80.0
|
|
||||
Excess spread financing
|
1,095.1
|
|
|
—
|
|
|
—
|
|
|
1,095.1
|
|
||||
Total liabilities
|
$
|
1,204.6
|
|
|
$
|
—
|
|
|
$
|
29.5
|
|
|
$
|
1,175.1
|
|
|
|
|
December 31, 2015
|
||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,429.7
|
|
|
$
|
—
|
|
|
$
|
1,429.7
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
3,358.3
|
|
|
—
|
|
|
—
|
|
|
3,358.3
|
|
||||
Derivative financial instruments:
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
89.1
|
|
|
—
|
|
|
89.1
|
|
|
—
|
|
||||
Forward MBS trades
|
6.1
|
|
|
—
|
|
|
6.1
|
|
|
—
|
|
||||
LPCs
|
3.9
|
|
|
—
|
|
|
3.9
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Eurodollar futures
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total assets
|
$
|
4,887.7
|
|
|
$
|
—
|
|
|
$
|
1,529.4
|
|
|
$
|
3,358.3
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
||||
LPCs
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.5
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Eurodollar futures
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
68.7
|
|
|
—
|
|
|
—
|
|
|
68.7
|
|
||||
Excess spread financing
|
1,232.1
|
|
|
—
|
|
|
—
|
|
|
1,232.1
|
|
||||
Total liabilities
|
$
|
1,306.6
|
|
|
$
|
—
|
|
|
$
|
5.8
|
|
|
$
|
1,300.8
|
|
|
Assets
|
|
Liabilities
|
||||||||
Six months ended June 30, 2016
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Beginning balance
|
$
|
3,358
|
|
|
$
|
1,232
|
|
|
$
|
69
|
|
Total gains or losses
|
|
|
|
|
|
||||||
Included in earnings
|
(636
|
)
|
|
(42
|
)
|
|
11
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
2
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
86
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(95
|
)
|
|
—
|
|
|||
Dispositions
|
(16
|
)
|
|
—
|
|
|
—
|
|
|||
Ending balance
|
$
|
2,794
|
|
|
$
|
1,095
|
|
|
$
|
80
|
|
|
Assets
|
|
Liabilities
|
||||||||
Twelve months ended December 31, 2015
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Beginning balance
|
$
|
2,950
|
|
|
$
|
1,031
|
|
|
$
|
49
|
|
Total gains or losses
|
|
|
|
|
|
||||||
Included in earnings
|
(497
|
)
|
|
25
|
|
|
20
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
730
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
222
|
|
|
386
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(210
|
)
|
|
—
|
|
|||
Dispositions
|
(47
|
)
|
|
—
|
|
|
—
|
|
|||
Ending balance
|
$
|
3,358
|
|
|
$
|
1,232
|
|
|
$
|
69
|
|
|
June 30, 2016
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
624
|
|
|
$
|
624
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
303
|
|
|
303
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
2,066
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
||||
Reverse mortgage interests, net
|
7,463
|
|
|
—
|
|
|
—
|
|
|
7,669
|
|
||||
Mortgage loans held for sale
|
2,201
|
|
|
—
|
|
|
2,201
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
159
|
|
|
—
|
|
|
—
|
|
|
164
|
|
||||
Derivative financial instruments
|
118
|
|
|
—
|
|
|
118
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,003
|
|
|
1,885
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
1,436
|
|
|
—
|
|
|
1,436
|
|
|
—
|
|
||||
Warehouse facilities
|
2,793
|
|
|
—
|
|
|
2,793
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
80
|
|
|
—
|
|
|
—
|
|
|
80
|
|
||||
Derivative financial instruments
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Excess spread financing
|
1,095
|
|
|
—
|
|
|
—
|
|
|
1,095
|
|
||||
Nonrecourse debt - legacy assets
|
58
|
|
|
—
|
|
|
—
|
|
|
57
|
|
||||
Participating interest financing
|
5,673
|
|
|
—
|
|
|
5,852
|
|
|
—
|
|
||||
2015-1 HECM securitization
|
175
|
|
|
—
|
|
|
—
|
|
|
187
|
|
||||
2015-2 HECM securitization
|
160
|
|
|
—
|
|
|
—
|
|
|
165
|
|
||||
2016-1 HECM securitization
|
244
|
|
|
—
|
|
|
—
|
|
|
252
|
|
||||
2016-2 HECM securitization
|
209
|
|
|
—
|
|
|
—
|
|
|
205
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2015
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
613
|
|
|
$
|
613
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
332
|
|
|
332
|
|
|
—
|
|
|
—
|
|
||||
Mortgage loans held for sale
|
1,430
|
|
|
—
|
|
|
1,430
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
174
|
|
|
—
|
|
|
—
|
|
|
174
|
|
||||
Advances and other receivables, net
|
2,412
|
|
|
—
|
|
|
—
|
|
|
2,412
|
|
||||
Reverse mortgage interests, net
|
7,514
|
|
|
—
|
|
|
—
|
|
|
7,705
|
|
||||
Derivative financial instruments
|
100
|
|
|
—
|
|
|
100
|
|
|
—
|
|
||||
Financial liabilities:
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,049
|
|
|
1,912
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
1,646
|
|
|
—
|
|
|
1,646
|
|
|
—
|
|
||||
Warehouse facilities
|
1,893
|
|
|
—
|
|
|
1,893
|
|
|
—
|
|
||||
Derivative financial instruments
|
6
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||
Excess spread financing
|
1,232
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
||||
Mortgage servicing rights financing liability
|
69
|
|
|
—
|
|
|
—
|
|
|
69
|
|
||||
Nonrecourse debt - legacy assets
|
65
|
|
|
—
|
|
|
—
|
|
|
74
|
|
||||
Participating interest financing
|
5,947
|
|
|
—
|
|
|
6,091
|
|
|
—
|
|
||||
2014-1 HECM securitization
|
227
|
|
|
—
|
|
|
—
|
|
|
298
|
|
||||
2015-1 HECM securitization
|
222
|
|
|
—
|
|
|
—
|
|
|
275
|
|
||||
2015-2 HECM securitization
|
209
|
|
|
—
|
|
|
—
|
|
|
250
|
|
|
|
Three months ended June 30, 2016
|
||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
|
$
|
(19
|
)
|
|
$
|
13
|
|
|
$
|
119
|
|
|
$
|
113
|
|
|
$
|
—
|
|
|
$
|
113
|
|
Net gain on mortgage loans held for sale
|
|
43
|
|
|
173
|
|
|
—
|
|
|
216
|
|
|
—
|
|
|
216
|
|
||||||
Total revenues
|
|
24
|
|
|
186
|
|
|
119
|
|
|
329
|
|
|
—
|
|
|
329
|
|
||||||
Total expenses
|
|
159
|
|
|
133
|
|
|
97
|
|
|
389
|
|
|
24
|
|
|
413
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
87
|
|
|
16
|
|
|
—
|
|
|
103
|
|
|
4
|
|
|
107
|
|
||||||
Interest expense
|
|
(110
|
)
|
|
(15
|
)
|
|
—
|
|
|
(125
|
)
|
|
(42
|
)
|
|
(167
|
)
|
||||||
Total other income (expense)
|
|
(23
|
)
|
|
1
|
|
|
—
|
|
|
(22
|
)
|
|
(38
|
)
|
|
(60
|
)
|
||||||
Income (loss) before taxes
|
|
$
|
(158
|
)
|
|
$
|
54
|
|
|
$
|
22
|
|
|
$
|
(82
|
)
|
|
$
|
(62
|
)
|
|
$
|
(144
|
)
|
Depreciation and amortization
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
9
|
|
|
$
|
21
|
|
Total assets
|
|
12,496
|
|
|
4,681
|
|
|
331
|
|
|
17,508
|
|
|
(1,023
|
)
|
|
16,485
|
|
|
|
Three months ended June 30, 2015
|
||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
|
$
|
321
|
|
|
$
|
13
|
|
|
$
|
122
|
|
|
$
|
456
|
|
|
$
|
2
|
|
|
$
|
458
|
|
Net gain on mortgage loans held for sale
|
|
8
|
|
|
156
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
164
|
|
||||||
Total revenues
|
|
329
|
|
|
169
|
|
|
122
|
|
|
620
|
|
|
2
|
|
|
622
|
|
||||||
Total expenses
|
|
210
|
|
|
117
|
|
|
94
|
|
|
421
|
|
|
20
|
|
|
441
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
67
|
|
|
17
|
|
|
—
|
|
|
84
|
|
|
3
|
|
|
87
|
|
||||||
Interest expense
|
|
(90
|
)
|
|
(15
|
)
|
|
—
|
|
|
(105
|
)
|
|
(43
|
)
|
|
(148
|
)
|
||||||
Total other income (expense)
|
|
(23
|
)
|
|
2
|
|
|
—
|
|
|
(21
|
)
|
|
(40
|
)
|
|
(61
|
)
|
||||||
Income (loss) before taxes
|
|
$
|
96
|
|
|
$
|
54
|
|
|
$
|
28
|
|
|
$
|
178
|
|
|
$
|
(58
|
)
|
|
$
|
120
|
|
Depreciation and amortization
|
|
$
|
6
|
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
14
|
|
|
$
|
4
|
|
|
$
|
18
|
|
Total assets
|
|
14,408
|
|
|
1,874
|
|
|
271
|
|
|
$
|
16,553
|
|
|
720
|
|
|
$
|
17,273
|
|
|
|
Six months ended June 30, 2016
|
||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
|
$
|
(53
|
)
|
|
$
|
28
|
|
|
$
|
220
|
|
|
$
|
195
|
|
|
$
|
2
|
|
|
$
|
197
|
|
Net gain on mortgage loans held for sale
|
|
67
|
|
|
321
|
|
|
—
|
|
|
388
|
|
|
(1
|
)
|
|
387
|
|
||||||
Total revenues
|
|
14
|
|
|
349
|
|
|
220
|
|
|
583
|
|
|
1
|
|
|
584
|
|
||||||
Total expenses
|
|
335
|
|
|
258
|
|
|
187
|
|
|
780
|
|
|
45
|
|
|
825
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
172
|
|
|
31
|
|
|
—
|
|
|
203
|
|
|
7
|
|
|
210
|
|
||||||
Interest expense
|
|
(217
|
)
|
|
(28
|
)
|
|
—
|
|
|
(245
|
)
|
|
(83
|
)
|
|
(328
|
)
|
||||||
Total other income (expense)
|
|
(45
|
)
|
|
3
|
|
|
—
|
|
|
(42
|
)
|
|
(76
|
)
|
|
(118
|
)
|
||||||
Income (loss) before taxes
|
|
$
|
(366
|
)
|
|
$
|
94
|
|
|
$
|
33
|
|
|
$
|
(239
|
)
|
|
$
|
(120
|
)
|
|
$
|
(359
|
)
|
Depreciation and amortization
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
12
|
|
|
$
|
27
|
|
|
$
|
17
|
|
|
$
|
44
|
|
Total assets
|
|
12,496
|
|
|
4,681
|
|
|
331
|
|
|
17,508
|
|
|
(1,023
|
)
|
|
16,485
|
|
|
|
Six months ended June 30, 2015
|
||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
|
$
|
421
|
|
|
$
|
20
|
|
|
$
|
230
|
|
|
$
|
671
|
|
|
$
|
2
|
|
|
$
|
673
|
|
Net gain on mortgage loans held for sale
|
|
22
|
|
|
307
|
|
|
—
|
|
|
329
|
|
|
2
|
|
|
331
|
|
||||||
Total revenues
|
|
443
|
|
|
327
|
|
|
230
|
|
|
1,000
|
|
|
4
|
|
|
1,004
|
|
||||||
Total expenses
|
|
392
|
|
|
217
|
|
|
174
|
|
|
783
|
|
|
42
|
|
|
825
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
|
92
|
|
|
32
|
|
|
—
|
|
|
124
|
|
|
7
|
|
|
131
|
|
||||||
Interest expense
|
|
(149
|
)
|
|
(29
|
)
|
|
—
|
|
|
(178
|
)
|
|
(86
|
)
|
|
(264
|
)
|
||||||
Total other income (expense)
|
|
(57
|
)
|
|
3
|
|
|
—
|
|
|
(54
|
)
|
|
(79
|
)
|
|
(133
|
)
|
||||||
Income (loss) before taxes
|
|
$
|
(6
|
)
|
|
$
|
113
|
|
|
$
|
56
|
|
|
$
|
163
|
|
|
$
|
(117
|
)
|
|
$
|
46
|
|
Depreciation and amortization
|
|
$
|
12
|
|
|
$
|
8
|
|
|
$
|
7
|
|
|
$
|
27
|
|
|
$
|
9
|
|
|
$
|
36
|
|
Total assets
|
|
14,408
|
|
|
1,874
|
|
|
271
|
|
|
16,553
|
|
|
720
|
|
|
17,273
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor (Subsidiaries)
|
|
Non-Guarantor (Subsidiaries)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
594
|
|
|
$
|
1
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
624
|
|
Restricted cash
|
—
|
|
|
169
|
|
|
—
|
|
|
134
|
|
|
—
|
|
|
303
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
2,801
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,801
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
2,066
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,066
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
6,644
|
|
|
—
|
|
|
819
|
|
|
—
|
|
|
7,463
|
|
||||||
Mortgage loans held for sale
|
—
|
|
|
2,107
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
2,201
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
160
|
|
|
—
|
|
|
159
|
|
||||||
Property and equipment, net
|
—
|
|
|
114
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
142
|
|
||||||
Derivative financial instruments
|
—
|
|
|
114
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
118
|
|
||||||
Other assets
|
(103
|
)
|
|
490
|
|
|
314
|
|
|
1,343
|
|
|
(1,436
|
)
|
|
608
|
|
||||||
Investment in subsidiaries
|
1,552
|
|
|
613
|
|
|
—
|
|
|
—
|
|
|
(2,165
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,449
|
|
|
$
|
15,711
|
|
|
$
|
316
|
|
|
$
|
2,610
|
|
|
$
|
(3,601
|
)
|
|
$
|
16,485
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
2,003
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,003
|
|
Advance facilities
|
—
|
|
|
232
|
|
|
—
|
|
|
1,204
|
|
|
—
|
|
|
1,436
|
|
||||||
Warehouse facilities
|
—
|
|
|
2,706
|
|
|
—
|
|
|
87
|
|
|
—
|
|
|
2,793
|
|
||||||
Payables and accrued liabilities
|
7
|
|
|
1,013
|
|
|
1
|
|
|
62
|
|
|
—
|
|
|
1,083
|
|
||||||
MSR related liabilities - nonrecourse
|
—
|
|
|
1,175
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,175
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||||
Derivative financial instruments
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||||
Other nonrecourse debt
|
—
|
|
|
5,665
|
|
|
—
|
|
|
846
|
|
|
—
|
|
|
6,511
|
|
||||||
Payables to affiliates
|
—
|
|
|
1,323
|
|
|
4
|
|
|
109
|
|
|
(1,436
|
)
|
|
—
|
|
||||||
Total liabilities
|
7
|
|
|
14,159
|
|
|
5
|
|
|
2,308
|
|
|
(1,436
|
)
|
|
15,043
|
|
||||||
Total equity
|
1,442
|
|
|
1,552
|
|
|
311
|
|
|
302
|
|
|
(2,165
|
)
|
|
1,442
|
|
||||||
Total liabilities and equity
|
$
|
1,449
|
|
|
$
|
15,711
|
|
|
$
|
316
|
|
|
$
|
2,610
|
|
|
$
|
(3,601
|
)
|
|
$
|
16,485
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
(15
|
)
|
|
$
|
7
|
|
|
$
|
121
|
|
|
$
|
—
|
|
|
$
|
113
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
205
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
216
|
|
||||||
Total revenues
|
—
|
|
|
190
|
|
|
7
|
|
|
132
|
|
|
—
|
|
|
329
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries wages benefits
|
—
|
|
|
148
|
|
|
1
|
|
|
56
|
|
|
—
|
|
|
205
|
|
||||||
General and administrative
|
—
|
|
|
149
|
|
|
1
|
|
|
58
|
|
|
—
|
|
|
208
|
|
||||||
Total expenses
|
—
|
|
|
297
|
|
|
2
|
|
|
114
|
|
|
—
|
|
|
413
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
94
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
107
|
|
||||||
Interest expense
|
—
|
|
|
(149
|
)
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(167
|
)
|
||||||
Gain (loss) from subsidiaries
|
(92
|
)
|
|
18
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
—
|
|
||||||
Total other income (expense)
|
(92
|
)
|
|
(37
|
)
|
|
—
|
|
|
(5
|
)
|
|
74
|
|
|
(60
|
)
|
||||||
Income (loss) before taxes
|
(92
|
)
|
|
(144
|
)
|
|
5
|
|
|
13
|
|
|
74
|
|
|
(144
|
)
|
||||||
Income tax expense (benefit)
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53
|
)
|
||||||
Net income (loss)
|
(92
|
)
|
|
(91
|
)
|
|
5
|
|
|
13
|
|
|
74
|
|
|
(91
|
)
|
||||||
Less: net gain (loss) attributable to noncontrolling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) excluding noncontrolling interests
|
$
|
(92
|
)
|
|
$
|
(92
|
)
|
|
$
|
5
|
|
|
$
|
13
|
|
|
$
|
74
|
|
|
$
|
(92
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
(41
|
)
|
|
$
|
14
|
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
197
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
367
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
387
|
|
||||||
Total revenues
|
—
|
|
|
326
|
|
|
14
|
|
|
244
|
|
|
—
|
|
|
584
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries wages benefits
|
—
|
|
|
292
|
|
|
2
|
|
|
108
|
|
|
—
|
|
|
402
|
|
||||||
General and administrative
|
—
|
|
|
309
|
|
|
5
|
|
|
109
|
|
|
—
|
|
|
423
|
|
||||||
Total expenses
|
—
|
|
|
601
|
|
|
7
|
|
|
217
|
|
|
—
|
|
|
825
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
185
|
|
|
—
|
|
|
25
|
|
|
—
|
|
|
210
|
|
||||||
Interest expense
|
—
|
|
|
(290
|
)
|
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
(328
|
)
|
||||||
Gain (loss) from subsidiaries
|
(224
|
)
|
|
21
|
|
|
—
|
|
|
—
|
|
|
203
|
|
|
—
|
|
||||||
Total other income (expense)
|
(224
|
)
|
|
(84
|
)
|
|
—
|
|
|
(13
|
)
|
|
203
|
|
|
(118
|
)
|
||||||
Income (loss) before taxes
|
(224
|
)
|
|
(359
|
)
|
|
7
|
|
|
14
|
|
|
203
|
|
|
(359
|
)
|
||||||
Income tax expense (benefit)
|
—
|
|
|
(135
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(135
|
)
|
||||||
Net income (loss)
|
(224
|
)
|
|
(224
|
)
|
|
7
|
|
|
14
|
|
|
203
|
|
|
(224
|
)
|
||||||
Less: net gain (loss) attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) excluding noncontrolling interests
|
$
|
(224
|
)
|
|
$
|
(224
|
)
|
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
203
|
|
|
$
|
(224
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
(224
|
)
|
|
$
|
(224
|
)
|
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
203
|
|
|
$
|
(224
|
)
|
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
(Gain) loss from subsidiaries
|
224
|
|
|
(21
|
)
|
|
—
|
|
|
—
|
|
|
(203
|
)
|
|
—
|
|
||||||
Share-based compensation
|
—
|
|
|
9
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
12
|
|
||||||
Excess tax deficiency from share-based compensation
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
||||||
Gain on mortgage loans held for sale
|
—
|
|
|
(368
|
)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(388
|
)
|
||||||
Provision for reserves on advances and other receivables
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||||
Mortgage loans originated and purchased, net of fees
|
—
|
|
|
(9,489
|
)
|
|
—
|
|
|
(497
|
)
|
|
—
|
|
|
(9,986
|
)
|
||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
|
—
|
|
|
(770
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(770
|
)
|
||||||
Proceeds on sale of and payments of mortgage loans held for sale
|
—
|
|
|
14,885
|
|
|
—
|
|
|
(4,580
|
)
|
|
—
|
|
|
10,305
|
|
||||||
Depreciation and amortization
|
—
|
|
|
32
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
44
|
|
||||||
Amortization (accretion) of premiums (discounts)
|
—
|
|
|
(5,124
|
)
|
|
—
|
|
|
5,143
|
|
|
—
|
|
|
19
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
(42
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(42
|
)
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights
|
—
|
|
|
624
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
624
|
|
||||||
Fair value change in mortgage servicing rights financing liability
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables, net
|
—
|
|
|
290
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
290
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
187
|
|
|
—
|
|
|
(137
|
)
|
|
—
|
|
|
50
|
|
||||||
Other assets
|
109
|
|
|
(383
|
)
|
|
(7
|
)
|
|
195
|
|
|
—
|
|
|
(86
|
)
|
||||||
Payables and accrued liabilities
|
—
|
|
|
(210
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(217
|
)
|
||||||
Net cash attributable to operating activities
|
109
|
|
|
(531
|
)
|
|
—
|
|
|
126
|
|
|
—
|
|
|
(296
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2016
(Continued)
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(26
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Sale of forward mortgage servicing rights
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15
|
|
||||||
Proceeds on sale of reverse mortgage servicing rights
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transfers (to) from restricted cash, net
|
—
|
|
|
32
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
31
|
|
||||||
Debt financing costs
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Increase (decrease) warehouse facilities
|
—
|
|
|
1,098
|
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
1,077
|
|
||||||
Increase (decrease) advance facilities
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(204
|
)
|
|
—
|
|
|
(209
|
)
|
||||||
Proceeds from HECM securitizations
|
—
|
|
|
(180
|
)
|
|
—
|
|
|
491
|
|
|
—
|
|
|
311
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(362
|
)
|
|
—
|
|
|
(362
|
)
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
||||||
Increase in participating interest financing in reverse mortgage interests
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
||||||
Repayment of nonrecourse debt–legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25
|
)
|
||||||
Excess tax deficiency from share-based compensation
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Repurchase of treasury shares
|
(106
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106
|
)
|
||||||
Net cash attributable to financing activities
|
(109
|
)
|
|
530
|
|
|
—
|
|
|
(105
|
)
|
|
—
|
|
|
316
|
|
||||||
Net increase (decrease) in cash
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
14
|
|
|
—
|
|
|
11
|
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
597
|
|
|
1
|
|
|
15
|
|
|
—
|
|
|
613
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
594
|
|
|
$
|
1
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
624
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries)
|
|
Non-Guarantor
(Subsidiaries)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
597
|
|
|
$
|
1
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
$
|
613
|
|
Restricted cash
|
—
|
|
|
199
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
332
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,367
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,367
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
2,412
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,412
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
6,832
|
|
|
—
|
|
|
682
|
|
|
—
|
|
|
7,514
|
|
||||||
Mortgage loans held for sale
|
—
|
|
|
1,305
|
|
|
—
|
|
|
125
|
|
|
—
|
|
|
1,430
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
173
|
|
|
—
|
|
|
174
|
|
||||||
Property and equipment, net
|
—
|
|
|
113
|
|
|
1
|
|
|
29
|
|
|
—
|
|
|
143
|
|
||||||
Derivative financial instruments
|
—
|
|
|
96
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
100
|
|
||||||
Other assets
|
3
|
|
|
610
|
|
|
303
|
|
|
1,497
|
|
|
(1,881
|
)
|
|
532
|
|
||||||
Investment in subsidiaries
|
1,768
|
|
|
510
|
|
|
—
|
|
|
—
|
|
|
(2,278
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,771
|
|
|
$
|
16,042
|
|
|
$
|
305
|
|
|
$
|
2,658
|
|
|
$
|
(4,159
|
)
|
|
$
|
16,617
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
2,026
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,026
|
|
Advance facilities
|
—
|
|
|
232
|
|
|
—
|
|
|
1,408
|
|
|
—
|
|
|
1,640
|
|
||||||
Warehouse facilities
|
—
|
|
|
1,782
|
|
|
—
|
|
|
108
|
|
|
—
|
|
|
1,890
|
|
||||||
Payables and accrued liabilities
|
4
|
|
|
1,222
|
|
|
1
|
|
|
69
|
|
|
—
|
|
|
1,296
|
|
||||||
MSR related liabilities - nonrecourse
|
—
|
|
|
1,301
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,301
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Derivative financial instruments
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Other nonrecourse debt
|
—
|
|
|
5,943
|
|
|
—
|
|
|
723
|
|
|
—
|
|
|
6,666
|
|
||||||
Payables to affiliates
|
—
|
|
|
1,737
|
|
|
1
|
|
|
143
|
|
|
(1,881
|
)
|
|
—
|
|
||||||
Total liabilities
|
4
|
|
|
14,274
|
|
|
2
|
|
|
2,451
|
|
|
(1,881
|
)
|
|
14,850
|
|
||||||
Total equity
|
1,767
|
|
|
1,768
|
|
|
303
|
|
|
207
|
|
|
(2,278
|
)
|
|
1,767
|
|
||||||
Total liabilities and equity
|
$
|
1,771
|
|
|
$
|
16,042
|
|
|
$
|
305
|
|
|
$
|
2,658
|
|
|
$
|
(4,159
|
)
|
|
$
|
16,617
|
|
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
331
|
|
|
$
|
(2
|
)
|
|
$
|
129
|
|
|
$
|
—
|
|
|
$
|
458
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
153
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
164
|
|
||||||
Total revenues
|
—
|
|
|
484
|
|
|
(2
|
)
|
|
140
|
|
|
—
|
|
|
622
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries wages benefits
|
—
|
|
|
141
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
198
|
|
||||||
General and administrative
|
—
|
|
|
194
|
|
|
—
|
|
|
49
|
|
|
—
|
|
|
243
|
|
||||||
Total expenses
|
—
|
|
|
335
|
|
|
—
|
|
|
106
|
|
|
—
|
|
|
441
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
78
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
87
|
|
||||||
Interest expense
|
—
|
|
|
(131
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(148
|
)
|
||||||
Gain (loss) from subsidiaries
|
75
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
(98
|
)
|
|
—
|
|
||||||
Total other income (expense)
|
75
|
|
|
(30
|
)
|
|
—
|
|
|
(8
|
)
|
|
(98
|
)
|
|
(61
|
)
|
||||||
Income (loss) before taxes
|
75
|
|
|
119
|
|
|
(2
|
)
|
|
26
|
|
|
(98
|
)
|
|
120
|
|
||||||
Income tax benefit
|
—
|
|
|
43
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
44
|
|
||||||
Net income (loss)
|
75
|
|
|
76
|
|
|
(3
|
)
|
|
26
|
|
|
(98
|
)
|
|
76
|
|
||||||
Less: net gain attributable to noncontrolling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) excluding noncontrolling interests
|
$
|
75
|
|
|
$
|
75
|
|
|
$
|
(3
|
)
|
|
$
|
26
|
|
|
$
|
(98
|
)
|
|
$
|
75
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2015
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related
|
$
|
—
|
|
|
$
|
433
|
|
|
$
|
(3
|
)
|
|
$
|
243
|
|
|
$
|
—
|
|
|
$
|
673
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
310
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
331
|
|
||||||
Total Revenues
|
—
|
|
|
743
|
|
|
(3
|
)
|
|
264
|
|
|
—
|
|
|
1,004
|
|
||||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
270
|
|
|
—
|
|
|
107
|
|
|
—
|
|
|
377
|
|
||||||
General and administrative
|
—
|
|
|
358
|
|
|
—
|
|
|
90
|
|
|
—
|
|
|
448
|
|
||||||
Total expenses
|
—
|
|
|
628
|
|
|
—
|
|
|
197
|
|
|
—
|
|
|
825
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
114
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
131
|
|
||||||
Interest expense
|
—
|
|
|
(231
|
)
|
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(264
|
)
|
||||||
Gain (loss) from subsidiaries
|
26
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
(72
|
)
|
|
—
|
|
||||||
Total other income (expense)
|
26
|
|
|
(71
|
)
|
|
—
|
|
|
(16
|
)
|
|
(72
|
)
|
|
(133
|
)
|
||||||
Income before taxes
|
26
|
|
|
44
|
|
|
(3
|
)
|
|
51
|
|
|
(72
|
)
|
|
46
|
|
||||||
Income tax expense (benefit)
|
—
|
|
|
15
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
17
|
|
||||||
Net income (loss)
|
26
|
|
|
29
|
|
|
(5
|
)
|
|
51
|
|
|
(72
|
)
|
|
29
|
|
||||||
Less: net gain attributable to noncontrolling interests
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Net income (loss) excluding noncontrolling interests
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
(5
|
)
|
|
$
|
51
|
|
|
$
|
(72
|
)
|
|
$
|
26
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2015
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
(5
|
)
|
|
$
|
51
|
|
|
$
|
(72
|
)
|
|
$
|
26
|
|
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncontrolling interest
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
(Gain) loss from subsidiaries
|
|
(26
|
)
|
|
(46
|
)
|
|
—
|
|
|
—
|
|
|
72
|
|
|
—
|
|
||||||
Share-based compensation
|
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Excess tax benefit from share based compensation
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net gain on mortgage loans held for sale
|
|
—
|
|
|
(310
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
(331
|
)
|
||||||
Mortgage loans originated and purchased, net of fees
|
|
—
|
|
|
(9,051
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,051
|
)
|
||||||
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
|
|
—
|
|
|
(833
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(833
|
)
|
||||||
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
|
|
—
|
|
|
9,449
|
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
9,430
|
|
||||||
Loss on interest rate swaps and caps
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||||
Provision for reserves on advances and other receivables
|
|
—
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
29
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
36
|
|
||||||
Amortization (accretion) of premiums (discounts)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(12
|
)
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
|
—
|
|
|
183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
183
|
|
||||||
Fair value change in mortgage servicing rights financing liability
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables, net
|
|
—
|
|
|
282
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
284
|
|
||||||
Reverse mortgage interests, net
|
|
—
|
|
|
83
|
|
|
—
|
|
|
(207
|
)
|
|
—
|
|
|
(124
|
)
|
||||||
Other assets
|
|
—
|
|
|
205
|
|
|
4
|
|
|
(232
|
)
|
|
—
|
|
|
(23
|
)
|
||||||
Payables and accrued liabilities
|
|
—
|
|
|
37
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
39
|
|
||||||
Net cash attributable to operating activities
|
|
—
|
|
|
128
|
|
|
1
|
|
|
(419
|
)
|
|
—
|
|
|
(290
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2015
(Continued)
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(Parent) |
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(27
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(500
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(500
|
)
|
||||||
Purchase of reverse mortgage interests
|
|
—
|
|
|
(4,816
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,816
|
)
|
||||||
Acquisitions, net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
(45
|
)
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
(5,329
|
)
|
|
—
|
|
|
(59
|
)
|
|
—
|
|
|
(5,388
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transfers to restricted cash, net
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(102
|
)
|
||||||
Issuance of common stock, net of issuance cost
|
|
—
|
|
|
498
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
498
|
|
||||||
Debt financing costs
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
||||||
Increase in warehouse facilities
|
|
—
|
|
|
533
|
|
|
—
|
|
|
45
|
|
|
—
|
|
|
578
|
|
||||||
Increase (decrease) in advance facilities
|
|
—
|
|
|
(330
|
)
|
|
—
|
|
|
251
|
|
|
—
|
|
|
(79
|
)
|
||||||
Proceeds from HECM Securitization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
341
|
|
|
—
|
|
|
341
|
|
||||||
Repayment of HECM Securitization
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63
|
)
|
|
—
|
|
|
(63
|
)
|
||||||
Issuance of excess spread financing
|
|
—
|
|
|
258
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258
|
|
||||||
Repayment of excess spread financing
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
||||||
Increase in participating interest financing in reverse mortgage interests
|
|
—
|
|
|
4,633
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,633
|
|
||||||
Repayment of nonrecourse debt – legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Excess tax benefit from share-based compensation
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Surrender of shares relating to stock vesting
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Net cash attributable to financing activities
|
|
—
|
|
|
5,456
|
|
|
—
|
|
|
486
|
|
|
—
|
|
|
5,942
|
|
||||||
Net increase in cash and cash equivalents
|
|
—
|
|
|
255
|
|
|
1
|
|
|
8
|
|
|
—
|
|
|
264
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
280
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
299
|
|
||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
535
|
|
|
$
|
1
|
|
|
$
|
27
|
|
|
$
|
—
|
|
|
$
|
563
|
|
•
|
Achieved 7.8 basis points of Servicing profitability which includes a $17 gain (or 1.7 bps) related to the sale of reverse mortgage loans we reacquired by exercising clean-up call rights.
|
•
|
Awarded over $90,000 in new MSRs to be acquired or subserviced.
|
•
|
Earned
$54
in originations, funding more than 25,400 loans during the quarter.
|
•
|
Improved recapture rate to
29%
from
25%
for the second quarter of 2016.
|
•
|
Our delinquency rate, measured as loans that are 60 or more days behind in payments, declined to
6%
from 7% at the start of the year.
|
•
|
Provided over
15,282
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership.
|
•
|
Funded
$5,204
mortgage loans, including
$3,291
related to retaining customers from our servicing portfolio.
|
•
|
Refinanced
$1,143
in Home Affordable Refinance Program ("HARP") loans, providing relief to 6,716 customers.
|
Table 1. Consolidated Operations
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues - operational
|
$
|
560
|
|
|
$
|
541
|
|
|
$
|
1,077
|
|
|
$
|
1,032
|
|
Revenues - MTM
|
(231
|
)
|
|
81
|
|
|
(493
|
)
|
|
(28
|
)
|
||||
Total revenues
|
329
|
|
|
622
|
|
|
584
|
|
|
1,004
|
|
||||
Expenses
|
413
|
|
|
441
|
|
|
825
|
|
|
825
|
|
||||
Other expense, net
|
(60
|
)
|
|
(61
|
)
|
|
(118
|
)
|
|
(133
|
)
|
||||
Income (loss) before income tax
|
(144
|
)
|
|
120
|
|
|
(359
|
)
|
|
46
|
|
||||
Less: income tax expense (benefit)
|
(53
|
)
|
|
44
|
|
|
(135
|
)
|
|
17
|
|
||||
Less: income attributable to noncontrolling interests
|
1
|
|
|
1
|
|
|
—
|
|
|
3
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
(92
|
)
|
|
$
|
75
|
|
|
$
|
(224
|
)
|
|
$
|
26
|
|
Table 2. Revenues
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Servicing:
|
|
|
|
|
|
|
|
||||||||
Operational
|
$
|
333
|
|
|
$
|
335
|
|
|
$
|
650
|
|
|
$
|
636
|
|
Amortization
|
(78
|
)
|
|
(88
|
)
|
|
(143
|
)
|
|
(165
|
)
|
||||
Mark-to-market
|
(231
|
)
|
|
81
|
|
|
(493
|
)
|
|
(28
|
)
|
||||
Total Servicing
|
24
|
|
|
328
|
|
|
14
|
|
|
443
|
|
||||
Originations
|
186
|
|
|
170
|
|
|
349
|
|
|
328
|
|
||||
Xome
|
119
|
|
|
122
|
|
|
220
|
|
|
230
|
|
||||
Corporate and other, including eliminations
|
—
|
|
|
2
|
|
|
1
|
|
|
3
|
|
||||
Total revenues
|
$
|
329
|
|
|
$
|
622
|
|
|
$
|
584
|
|
|
$
|
1,004
|
|
Table 3. Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Servicing
|
$
|
159
|
|
|
$
|
210
|
|
|
$
|
335
|
|
|
$
|
392
|
|
Originations
|
133
|
|
|
117
|
|
|
258
|
|
|
217
|
|
||||
Xome
|
97
|
|
|
94
|
|
|
187
|
|
|
174
|
|
||||
Corporate and other, including eliminations
|
24
|
|
|
20
|
|
|
45
|
|
|
42
|
|
||||
Total expenses
|
$
|
413
|
|
|
$
|
441
|
|
|
$
|
825
|
|
|
$
|
825
|
|
Table 4. Other Income (Expense), Net
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Reverse interest income
|
$
|
85
|
|
|
$
|
67
|
|
|
$
|
170
|
|
|
$
|
91
|
|
Other interest income
|
21
|
|
|
20
|
|
|
40
|
|
|
40
|
|
||||
Interest income
|
106
|
|
|
87
|
|
|
210
|
|
|
131
|
|
||||
Reverse interest expense
|
(65
|
)
|
|
(46
|
)
|
|
(132
|
)
|
|
(60
|
)
|
||||
Advance interest expense
|
(14
|
)
|
|
(12
|
)
|
|
(29
|
)
|
|
(24
|
)
|
||||
Corporate debt interest expense
|
(38
|
)
|
|
(40
|
)
|
|
(76
|
)
|
|
(80
|
)
|
||||
Other interest expense
|
(49
|
)
|
|
(50
|
)
|
|
(91
|
)
|
|
(100
|
)
|
||||
Interest expense
|
(166
|
)
|
|
(148
|
)
|
|
(328
|
)
|
|
(264
|
)
|
||||
Total other expense, net
|
$
|
(60
|
)
|
|
$
|
(61
|
)
|
|
$
|
(118
|
)
|
|
$
|
(133
|
)
|
Table 5. Income (Loss) Before Income Taxes
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Servicing:
|
|
|
|
|
|
|
|
||||||||
Operational
|
$
|
151
|
|
|
$
|
103
|
|
|
$
|
270
|
|
|
$
|
187
|
|
Amortization
|
(78
|
)
|
|
(88
|
)
|
|
(143
|
)
|
|
(165
|
)
|
||||
Servicing income before mark-to-market adjustments
|
73
|
|
|
15
|
|
|
127
|
|
|
22
|
|
||||
Mark-to-market
|
(231
|
)
|
|
81
|
|
|
(493
|
)
|
|
(28
|
)
|
||||
Total Servicing
|
(158
|
)
|
|
96
|
|
|
(366
|
)
|
|
(6
|
)
|
||||
Originations
|
54
|
|
|
54
|
|
|
94
|
|
|
113
|
|
||||
Xome
|
22
|
|
|
28
|
|
|
33
|
|
|
56
|
|
||||
Corporate and other, including eliminations
|
(62
|
)
|
|
(58
|
)
|
|
(120
|
)
|
|
(117
|
)
|
||||
Total income (loss) before income taxes
|
$
|
(144
|
)
|
|
$
|
120
|
|
|
$
|
(359
|
)
|
|
$
|
46
|
|
Table 6. Income Tax Expense (Benefit)
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Income tax expense (benefit)
|
$
|
(53
|
)
|
|
$
|
44
|
|
|
$
|
(135
|
)
|
|
$
|
17
|
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
37
|
%
|
|
37
|
%
|
|
38
|
%
|
|
36
|
%
|
Table 7. Servicing - Operations
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Operational
|
$
|
333
|
|
|
$
|
335
|
|
|
$
|
650
|
|
|
$
|
636
|
|
Amortization
|
(78
|
)
|
|
(88
|
)
|
|
(143
|
)
|
|
(165
|
)
|
||||
Other mark-to-market
|
(231
|
)
|
|
81
|
|
|
(493
|
)
|
|
(28
|
)
|
||||
Total revenues
|
24
|
|
|
328
|
|
|
14
|
|
|
443
|
|
||||
Expenses
|
159
|
|
|
210
|
|
|
335
|
|
|
392
|
|
||||
Total other expense, net
|
(23
|
)
|
|
(22
|
)
|
|
(45
|
)
|
|
(57
|
)
|
||||
Income (loss) before income taxes
|
$
|
(158
|
)
|
|
$
|
96
|
|
|
$
|
(366
|
)
|
|
$
|
(6
|
)
|
Table 8. Forward Servicing Portfolio UPB Rollforward
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance at the beginning of the period
|
$
|
356,772
|
|
|
$
|
362,842
|
|
|
$
|
367,800
|
|
|
$
|
353,094
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Originations
|
5,094
|
|
|
4,765
|
|
|
9,405
|
|
|
8,974
|
|
||||
Acquisitions
|
394
|
|
|
24,245
|
|
|
842
|
|
|
48,116
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Dispositions
|
(1,426
|
)
|
|
—
|
|
|
(1,436
|
)
|
|
—
|
|
||||
Principal reductions and other
|
(3,340
|
)
|
|
(3,022
|
)
|
|
(6,033
|
)
|
|
(5,581
|
)
|
||||
Voluntary reductions
(1)
|
(13,339
|
)
|
|
(13,219
|
)
|
|
(23,965
|
)
|
|
(23,106
|
)
|
||||
Involuntary reductions
(2)
|
(2,960
|
)
|
|
(3,003
|
)
|
|
(5,317
|
)
|
|
(5,858
|
)
|
||||
Net changes in loans serviced by others
|
104
|
|
|
(410
|
)
|
|
3
|
|
|
(3,441
|
)
|
||||
Balance at the end of period
|
$
|
341,299
|
|
|
$
|
372,198
|
|
|
$
|
341,299
|
|
|
$
|
372,198
|
|
Table 9. Servicing - Revenues
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
|
Amounts
|
bps
(1)
|
||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Base servicing fees
|
$
|
254
|
|
27
|
|
$
|
271
|
|
27
|
|
$
|
518
|
|
27
|
|
$
|
528
|
|
27
|
Modification fees
|
17
|
|
2
|
|
16
|
|
2
|
|
32
|
|
2
|
|
29
|
|
2
|
||||
Incentive fees
|
6
|
|
1
|
|
14
|
|
1
|
|
15
|
|
1
|
|
24
|
|
1
|
||||
Late payment fees
|
19
|
|
2
|
|
16
|
|
2
|
|
37
|
|
2
|
|
34
|
|
2
|
||||
Other ancillary revenues
(2)
|
79
|
|
8
|
|
44
|
|
4
|
|
129
|
|
7
|
|
88
|
|
5
|
||||
Other revenues
|
8
|
|
1
|
|
17
|
|
2
|
|
18
|
|
1
|
|
24
|
|
1
|
||||
Total Forward MSR operational revenue
|
383
|
|
41
|
|
378
|
|
38
|
|
749
|
|
40
|
|
727
|
|
38
|
||||
Subservicing fees
(3)
|
7
|
|
1
|
|
7
|
|
1
|
|
14
|
|
1
|
|
13
|
|
1
|
||||
Reverse MSRs (LOCOM) Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Base servicing fees
|
11
|
|
1
|
|
12
|
|
1
|
|
22
|
|
1
|
|
25
|
|
1
|
||||
Buyout accretion
|
6
|
|
1
|
|
11
|
|
1
|
|
13
|
|
1
|
|
18
|
|
1
|
||||
Total servicing fee revenue
|
407
|
|
44
|
|
408
|
|
41
|
|
798
|
|
43
|
|
783
|
|
41
|
||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSR scheduled and prepayment amortization
|
(134
|
)
|
(14)
|
|
(133
|
)
|
(13)
|
|
(246
|
)
|
(13)
|
|
(240
|
)
|
(12)
|
||||
Excess spread accretion
|
56
|
|
6
|
|
46
|
|
5
|
|
103
|
|
5
|
|
77
|
|
4
|
||||
LOCOM amortization
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
||||
Total amortization
|
(78
|
)
|
(8)
|
|
(88
|
)
|
(8)
|
|
(143
|
)
|
(8)
|
|
(165
|
)
|
(8)
|
||||
MSR financing liability costs
|
(26
|
)
|
(3)
|
|
(31
|
)
|
(3)
|
|
(53
|
)
|
(3)
|
|
(65
|
)
|
(3)
|
||||
Excess spread costs - principal
|
(48
|
)
|
(5)
|
|
(42
|
)
|
(4)
|
|
(95
|
)
|
(5)
|
|
(82
|
)
|
(4)
|
||||
Total operational revenue
|
255
|
|
28
|
|
247
|
|
26
|
|
507
|
|
27
|
|
471
|
|
26
|
||||
Mark-to-Market Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
MSR MTM
(4)
|
(255
|
)
|
(27)
|
|
125
|
|
13
|
|
(520
|
)
|
(27)
|
|
16
|
|
1
|
||||
Excess spread / financing MTM
|
24
|
|
3
|
|
(44
|
)
|
(4)
|
|
27
|
|
1
|
|
(44
|
)
|
(2)
|
||||
Total MTM revenue
|
(231
|
)
|
(24)
|
|
81
|
|
9
|
|
(493
|
)
|
(26)
|
|
(28
|
)
|
(1)
|
||||
Total revenues - Servicing
|
$
|
24
|
|
4
|
|
$
|
328
|
|
35
|
|
$
|
14
|
|
1
|
|
$
|
443
|
|
25
|
Table 10. Servicing Portfolio - Unpaid Principal Balances
|
|
Six months ended June 30,
|
||||||
|
|
2016
|
|
2015
|
||||
Average UPB:
|
|
|
|
|
||||
Forward MSRs - fair value
|
|
$
|
332,138
|
|
|
$
|
350,389
|
|
Subservicing and other
(1)
|
|
22,412
|
|
|
17,132
|
|
||
Reverse MSRs - LOCOM
|
|
28,826
|
|
|
27,150
|
|
||
Total average UPB
|
|
$
|
383,376
|
|
|
$
|
394,671
|
|
|
|
|
|
|
||||
Ending UPB:
|
|
|
|
|
||||
Forward MSRs - fair value
|
|
|
|
|
||||
Agency
|
|
$
|
227,204
|
|
|
$
|
244,429
|
|
Non-agency
|
|
91,395
|
|
|
108,978
|
|
||
Total MSRs - fair value
|
|
318,599
|
|
|
353,407
|
|
||
|
|
|
|
|
||||
Subservicing and other:
(1)
|
|
|
|
|
||||
Agency
|
|
17,277
|
|
|
16,096
|
|
||
Non-agency
|
|
5,423
|
|
|
2,695
|
|
||
Total subservicing and other
|
|
22,700
|
|
|
18,791
|
|
||
|
|
|
|
|
||||
Reverse MSRs - LOCOM
|
|
27,797
|
|
|
31,841
|
|
||
Total ending UPB
|
|
$
|
369,096
|
|
|
$
|
404,039
|
|
Table 11. Forward Loan Modifications and Workout Units
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Modifications and workout units:
|
|
|
|
|
|
|
|
||||
Home Affordable Modification Program
("
HAMP") modifications
|
3,783
|
|
|
4,281
|
|
|
7,690
|
|
|
8,261
|
|
Non-HAMP modifications
|
6,807
|
|
|
6,310
|
|
|
12,976
|
|
|
12,501
|
|
Workouts
|
4,692
|
|
|
6,240
|
|
|
9,332
|
|
|
12,601
|
|
Total modification and workout units
|
15,282
|
|
|
16,831
|
|
|
29,998
|
|
|
33,363
|
|
Table 12. Key Performance Metrics - Forward Servicing Portfolio
(1)
|
June 30,
|
||||||
|
2016
|
|
2015
|
||||
Loan count-servicing
|
2,106,186
|
|
|
2,252,839
|
|
||
Average loan amount
(2)
|
$
|
160,543
|
|
|
$
|
163,606
|
|
Average coupon - credit sensitive
(3)
|
5
|
%
|
|
5
|
%
|
||
Average coupon - interest sensitive
(3)
|
4
|
%
|
|
4
|
%
|
||
60+ delinquent (% of loans)
(4)
|
6
|
%
|
|
7
|
%
|
||
90+ delinquent (% of loans)
(4)
|
5
|
%
|
|
7
|
%
|
||
120+ delinquent (% of loans)
(4)
|
6
|
%
|
|
7
|
%
|
||
Total prepayment speed (12 month constant pre-payment rate)
|
17
|
%
|
|
17
|
%
|
Table 14. Servicing - Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||||
Salaries, wages and benefits
|
$
|
72
|
|
8
|
|
|
$
|
69
|
|
7
|
|
|
$
|
143
|
|
7
|
|
|
$
|
133
|
|
7
|
|
General and administrative
|
81
|
|
10
|
|
|
137
|
|
14
|
|
|
181
|
|
10
|
|
|
251
|
|
13
|
|
||||
Depreciation and amortization
|
6
|
|
1
|
|
|
4
|
|
—
|
|
|
11
|
|
1
|
|
|
8
|
|
—
|
|
||||
Total expenses - Servicing
|
$
|
159
|
|
19
|
|
|
$
|
210
|
|
21
|
|
|
$
|
335
|
|
18
|
|
|
$
|
392
|
|
20
|
|
Table 15. Servicing - General and Administrative Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||
Operational losses
(1)
|
$
|
13
|
|
1
|
|
$
|
58
|
|
6
|
|
|
$
|
42
|
|
6
|
|
$
|
98
|
|
5
|
|
Direct operating costs
(2)
|
35
|
|
4
|
|
40
|
|
4
|
|
|
68
|
|
4
|
|
72
|
|
4
|
|
||||
Offshoring costs
|
13
|
|
1
|
|
13
|
|
1
|
|
|
26
|
|
1
|
|
24
|
|
1
|
|
||||
Corporate allocation charges
|
17
|
|
2
|
|
21
|
|
2
|
|
|
37
|
|
2
|
|
44
|
|
2
|
|
||||
Subservicing
|
3
|
|
—
|
|
5
|
|
—
|
|
|
8
|
|
—
|
|
13
|
|
1
|
|
||||
Total general and administrative expenses - Servicing
|
$
|
81
|
|
8
|
|
$
|
137
|
|
13
|
|
|
$
|
181
|
|
13
|
|
$
|
251
|
|
13
|
|
Table 16. Servicing - Other Income (Expense), Net
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||||||||||
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
|
Amounts
|
bps
|
||||||||||||
Reverse interest income
|
$
|
85
|
|
9
|
|
|
$
|
67
|
|
6
|
|
|
$
|
170
|
|
9
|
|
|
$
|
92
|
|
9
|
|
Other interest income
|
2
|
|
—
|
|
|
—
|
|
—
|
|
|
2
|
|
—
|
|
|
—
|
|
—
|
|
||||
Interest income
|
87
|
|
9
|
|
|
67
|
|
6
|
|
|
172
|
|
9
|
|
|
92
|
|
9
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reverse interest expense
|
(65
|
)
|
(7
|
)
|
|
(46
|
)
|
(5
|
)
|
|
(132
|
)
|
(7
|
)
|
|
(60
|
)
|
(6
|
)
|
||||
Advance interest expense
|
(14
|
)
|
(1
|
)
|
|
(12
|
)
|
(1
|
)
|
|
(29
|
)
|
(2
|
)
|
|
(24
|
)
|
(3
|
)
|
||||
Other interest expense
|
(31
|
)
|
(3
|
)
|
|
(32
|
)
|
(3
|
)
|
|
(56
|
)
|
(3
|
)
|
|
(64
|
)
|
(7
|
)
|
||||
Interest expense
|
(110
|
)
|
(11
|
)
|
|
(90
|
)
|
(9
|
)
|
|
(217
|
)
|
(12
|
)
|
|
(148
|
)
|
(16
|
)
|
||||
Total other expense - Servicing
|
$
|
(23
|
)
|
(2
|
)
|
|
$
|
(23
|
)
|
(3
|
)
|
|
$
|
(45
|
)
|
(3
|
)
|
|
$
|
(56
|
)
|
(7
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
WAC - advance facilities
|
3
|
%
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
3
|
%
|
|
||||||||
WAC - excess spread financing
|
9
|
%
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
9
|
%
|
|
Table 17. MSRs and Related Liabilities
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
||||||||||
Forward MSRs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
227,204
|
|
|
$
|
1,985
|
|
|
4
|
%
|
|
$
|
246,016
|
|
|
$
|
2,462
|
|
|
4
|
%
|
Non-agency
|
91,395
|
|
|
809
|
|
|
5
|
%
|
|
99,660
|
|
|
896
|
|
|
5
|
%
|
||||
Total MSRs - fair value
|
318,599
|
|
|
2,794
|
|
|
4
|
%
|
|
345,676
|
|
|
3,358
|
|
|
5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
17,277
|
|
|
N/A
|
|
|
N/A
|
|
|
18,059
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
5,423
|
|
|
N/A
|
|
|
N/A
|
|
|
4,065
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
22,700
|
|
|
N/A
|
|
|
N/A
|
|
|
22,124
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse MSRs - LOCOM
(2)
|
27,797
|
|
|
7
|
|
|
N/A
|
|
|
29,855
|
|
|
9
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
369,096
|
|
|
$
|
2,801
|
|
|
N/A
|
|
|
$
|
397,655
|
|
|
$
|
3,367
|
|
|
N/A
|
|
Table 18. Fair Value MSR Valuation
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
||||||||||
MSRs - Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
$
|
202,936
|
|
|
$
|
1,763
|
|
|
87
|
|
|
$
|
224,334
|
|
|
$
|
2,017
|
|
|
90
|
|
Interest sensitive - agency
|
115,663
|
|
|
1,031
|
|
|
89
|
|
|
121,342
|
|
|
1,341
|
|
|
111
|
|
||||
Total MSRs - fair value
|
$
|
318,599
|
|
|
$
|
2,794
|
|
|
88
|
|
|
$
|
345,676
|
|
|
$
|
3,358
|
|
|
97
|
|
Table 19. MSRs - Fair Value, Roll Forward
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Fair value at the beginning of the period
|
$
|
3,088
|
|
|
$
|
3,022
|
|
|
$
|
3,358
|
|
|
$
|
2,950
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Servicing resulting from transfers of financial assets
|
46
|
|
|
61
|
|
|
86
|
|
|
105
|
|
||||
Purchases of servicing assets
|
—
|
|
|
256
|
|
|
2
|
|
|
494
|
|
||||
Dispositions:
|
|
|
|
|
|
|
|
||||||||
Sales of servicing assets
(1)
|
3
|
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
||||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(91
|
)
|
|
46
|
|
|
(157
|
)
|
|
74
|
|
||||
Interest sensitive
|
(134
|
)
|
|
82
|
|
|
(305
|
)
|
|
(55
|
)
|
||||
Other changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Scheduled principal payments
|
(20
|
)
|
|
(19
|
)
|
|
(41
|
)
|
|
(42
|
)
|
||||
Disposition of negative MSRs
(2)
|
7
|
|
|
—
|
|
|
53
|
|
|
—
|
|
||||
Prepayments
|
|
|
|
|
|
|
|
||||||||
Voluntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(54
|
)
|
|
(60
|
)
|
|
(97
|
)
|
|
(94
|
)
|
||||
Interest sensitive
|
(47
|
)
|
|
(37
|
)
|
|
(77
|
)
|
|
(67
|
)
|
||||
Involuntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(3
|
)
|
|
(1
|
)
|
|
(11
|
)
|
|
(14
|
)
|
||||
Interest sensitive
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
||||
Fair value at the end of the period
|
$
|
2,794
|
|
|
$
|
3,350
|
|
|
$
|
2,794
|
|
|
$
|
3,350
|
|
Table 20. MSRs - Fair Value, Weighted Average Assumptions
|
June 30,
|
||||
|
2016
|
|
2015
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
12
|
%
|
|
12
|
%
|
Total prepayment speeds
|
17
|
%
|
|
17
|
%
|
Expected weighted-average life (years)
|
5.5 years
|
|
|
5.9 years
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9
|
%
|
|
9
|
%
|
Total prepayment speeds
|
16
|
%
|
|
12
|
%
|
Expected weighted average life (years)
|
5.0 years
|
|
|
6.4 years
|
|
Table 21. Excess Spread Financing
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Fair value at the beginning of the period
|
$
|
1,161
|
|
|
$
|
1,047
|
|
|
$
|
1,232
|
|
|
$
|
1,031
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
New financings
|
—
|
|
|
205
|
|
|
—
|
|
|
258
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Settlements
|
(48
|
)
|
|
(50
|
)
|
|
(95
|
)
|
|
(100
|
)
|
||||
Fair value changes:
|
|
|
|
|
|
|
|
||||||||
Credit Sensitive
|
(4
|
)
|
|
21
|
|
|
(14
|
)
|
|
47
|
|
||||
Interest Sensitive
|
(14
|
)
|
|
5
|
|
|
(28
|
)
|
|
(8
|
)
|
||||
Fair value at the end of the period
|
$
|
1,095
|
|
|
$
|
1,228
|
|
|
$
|
1,095
|
|
|
$
|
1,228
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
June 30,
|
||||||||||
|
|
|
|
|
2016
|
|
2015
|
||||||||
Weighted-Average Assumptions:
|
|
|
|
|
|
|
|
||||||||
Mortgage prepayment speeds
|
|
|
|
|
13
|
%
|
|
11
|
%
|
||||||
Average life of mortgage loans
|
|
|
|
|
5.5 years
|
|
|
6.1 years
|
|
||||||
Discount rate
|
|
|
|
|
11
|
%
|
|
11
|
%
|
||||||
|
|
|
|
|
|
|
|
||||||||
Credit Sensitive:
|
|
|
|
|
|
|
|
||||||||
Mortgage prepayment speeds
|
|
|
|
|
12
|
%
|
|
11
|
%
|
||||||
Average life of mortgage loans
|
|
|
|
|
5.6 years
|
|
|
6.1 years
|
|
||||||
Discount rate
|
|
|
|
|
11
|
%
|
|
12
|
%
|
||||||
|
|
|
|
|
|
|
|
||||||||
Interest Sensitive:
|
|
|
|
|
|
|
|
||||||||
Mortgage prepayment speeds
|
|
|
|
|
15
|
%
|
|
9
|
%
|
||||||
Average life of mortgage loans
|
|
|
|
|
5.1 years
|
|
|
6.3 years
|
|
||||||
Discount rate
|
|
|
|
|
9
|
%
|
|
9
|
%
|
Table 22. MSRs Financing Liability - Rollforward
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Fair value at the beginning of the period
|
$
|
82
|
|
|
$
|
45
|
|
|
$
|
69
|
|
|
$
|
49
|
|
Mark-to-Market Adjustments:
(1)
|
|
|
|
|
|
|
|
||||||||
Due to changes in valuation inputs or
assumptions used in the valuation model
|
2
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||
Other changes in fair value
|
(4
|
)
|
|
14
|
|
|
(6
|
)
|
|
10
|
|
||||
Fair value at the end of the period
|
$
|
80
|
|
|
$
|
59
|
|
|
$
|
80
|
|
|
$
|
59
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
June 30,
|
||||||||||
|
|
|
|
|
2016
|
|
2015
|
||||||||
Weighted-Average Assumptions:
|
|
|
|
|
|
|
|
||||||||
Advance financing rates
|
|
|
|
|
3
|
%
|
|
3
|
%
|
||||||
Annual advance recovery rates
|
|
|
|
|
23
|
%
|
|
25
|
%
|
Table 23. Leveraged Portfolio Characteristics
|
June 30,
|
||||||
|
2016
|
|
2015
|
||||
Owned forward servicing portfolio - unencumbered
|
94,352
|
|
|
93,973
|
|
||
Owned forward servicing portfolio - transferred to New Residential
|
224,247
|
|
|
259,434
|
|
||
Subserviced forward servicing portfolio and other
|
22,700
|
|
|
18,791
|
|
||
Total unpaid principal balance
|
$
|
341,299
|
|
|
$
|
372,198
|
|
Table 24. Reverse MSR Portfolio Characteristics
|
June 30, 2016
|
|
December 31, 2015
|
||||
Loan count
|
168,580
|
|
|
176,272
|
|
||
Ending unpaid principal balance
|
$
|
27,797
|
|
|
$
|
29,855
|
|
Average loan amount
(1)
|
$
|
164,888
|
|
|
$
|
169,371
|
|
Average coupon
|
3.4
|
%
|
|
3.2
|
%
|
||
Average borrower age
|
78
|
|
|
77
|
|
Table 25. Originations - Operations
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
$
|
186
|
|
|
$
|
170
|
|
|
$
|
349
|
|
|
$
|
328
|
|
Expenses
|
133
|
|
|
117
|
|
|
258
|
|
|
217
|
|
||||
Other income, net
|
1
|
|
|
2
|
|
|
3
|
|
|
2
|
|
||||
Income before income tax expense
|
$
|
54
|
|
|
$
|
55
|
|
|
$
|
94
|
|
|
$
|
113
|
|
Income before taxes margin
|
29
|
%
|
|
32
|
%
|
|
27
|
%
|
|
35
|
%
|
Table 26. Originations - Revenues
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Service related
|
$
|
13
|
|
|
$
|
13
|
|
|
$
|
28
|
|
|
$
|
20
|
|
|
|
|
|
|
|
|
|
||||||||
Gain on loans originated and sold
|
244
|
|
|
184
|
|
|
453
|
|
|
370
|
|
||||
Fair value adjustment on loans held for sale
|
(85
|
)
|
|
(103
|
)
|
|
(137
|
)
|
|
(155
|
)
|
||||
Mark-to-market on locks and commitments
(1)
|
(29
|
)
|
|
22
|
|
|
(71
|
)
|
|
1
|
|
||||
Provision for repurchases
|
(3
|
)
|
|
(4
|
)
|
|
(6
|
)
|
|
(8
|
)
|
||||
Capitalized servicing rights
|
46
|
|
|
58
|
|
|
82
|
|
|
100
|
|
||||
Net gain on mortgage loans held for sale
|
173
|
|
|
157
|
|
|
321
|
|
|
308
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Total revenues - Originations
|
$
|
186
|
|
|
$
|
170
|
|
|
$
|
349
|
|
|
$
|
328
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Consumer direct lock pull through adjusted volume ($)
(2)
|
$
|
3,291
|
|
|
$
|
2,973
|
|
|
$
|
6,259
|
|
|
$
|
6,044
|
|
Other locked pull through adjusted volume ($)
|
1,915
|
|
|
1,960
|
|
|
3,543
|
|
|
3,426
|
|
||||
Funded volume, total ($)
|
5,204
|
|
|
4,814
|
|
|
9,445
|
|
|
9,023
|
|
||||
Funded HARP volume, total ($)
|
1,143
|
|
|
1,360
|
|
|
2,371
|
|
|
2,541
|
|
||||
Recapture percentage
|
29
|
%
|
|
25
|
%
|
|
30
|
%
|
|
25
|
%
|
||||
Purchase percentage of funded volume
|
26
|
%
|
|
27
|
%
|
|
26
|
%
|
|
26
|
%
|
||||
Value of capitalized servicing
|
91 bps
|
|
|
124 bps
|
|
|
93 bps
|
|
|
121 bps
|
|
Table 27. Originations - Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Salaries, wages and benefits
|
$
|
79
|
|
|
$
|
69
|
|
|
$
|
154
|
|
|
$
|
133
|
|
General and administrative
|
51
|
|
|
45
|
|
|
98
|
|
|
79
|
|
||||
Depreciation and amortization
|
3
|
|
|
3
|
|
|
6
|
|
|
5
|
|
||||
Total expenses - Originations
|
$
|
133
|
|
|
$
|
117
|
|
|
$
|
258
|
|
|
$
|
217
|
|
Table 28. Originations - Other Income, Net
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest income
|
$
|
16
|
|
|
$
|
17
|
|
|
$
|
31
|
|
|
$
|
32
|
|
Interest expense
|
(15
|
)
|
|
(15
|
)
|
|
(28
|
)
|
|
(29
|
)
|
||||
Other income, net - Originations
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
||||||||
WA coupon - mortgage loans held for sale
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
|
4
|
%
|
||||
WA cost of funds (excluding facility fees)
|
3
|
%
|
|
2
|
%
|
|
3
|
%
|
|
2
|
%
|
Table 29. Repurchase Reserves
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Repurchase reserves, beginning of period
|
$
|
26
|
|
|
$
|
29
|
|
Provisions
|
5
|
|
|
4
|
|
||
Charge-offs and releases
|
(5
|
)
|
|
(4
|
)
|
||
Repurchase reserves, end of period
|
$
|
26
|
|
|
$
|
29
|
|
Table 30. Xome - Operations
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
$
|
119
|
|
|
$
|
122
|
|
|
$
|
220
|
|
|
$
|
230
|
|
Expenses
|
97
|
|
|
94
|
|
|
187
|
|
|
174
|
|
||||
Income before income tax expense
|
$
|
22
|
|
|
$
|
28
|
|
|
$
|
33
|
|
|
$
|
56
|
|
Income before taxes margin
|
18
|
%
|
|
23
|
%
|
|
15
|
%
|
|
24
|
%
|
Table 31. Xome - Revenues
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Xome Exchange
|
$
|
47
|
|
|
$
|
54
|
|
|
$
|
83
|
|
|
$
|
98
|
|
Xome Services
|
63
|
|
|
59
|
|
|
120
|
|
|
115
|
|
||||
Xome Technology and Support
|
9
|
|
|
9
|
|
|
17
|
|
|
17
|
|
||||
Total Revenues
|
$
|
119
|
|
|
$
|
122
|
|
|
$
|
220
|
|
|
$
|
230
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Properties sold
|
5,406
|
|
|
6,131
|
|
|
9,571
|
|
|
11,640
|
|
||||
REO inventory at period end
|
5,972
|
|
|
8,279
|
|
|
5,972
|
|
|
8,279
|
|
||||
Xome services completed orders
|
147,336
|
|
|
158,089
|
|
|
308,675
|
|
|
341,077
|
|
||||
Percentage of revenue earned from third party customers
|
37
|
%
|
|
30
|
%
|
|
37
|
%
|
|
31
|
%
|
Table 32. Xome - Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Salaries, wages and benefits
|
$
|
45
|
|
|
$
|
44
|
|
|
$
|
88
|
|
|
$
|
82
|
|
General and administrative
|
46
|
|
|
46
|
|
|
87
|
|
|
85
|
|
||||
Depreciation and amortization
|
6
|
|
|
4
|
|
|
12
|
|
|
7
|
|
||||
Total Expenses
|
$
|
97
|
|
|
$
|
94
|
|
|
$
|
187
|
|
|
$
|
174
|
|
Table 33. Xome - Income before Taxes
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Xome Exchange
|
$
|
38
|
|
|
$
|
46
|
|
|
$
|
64
|
|
|
$
|
82
|
|
Xome Services
|
3
|
|
|
8
|
|
|
7
|
|
|
17
|
|
||||
Xome Technology and Support
|
(19
|
)
|
|
(26
|
)
|
|
(38
|
)
|
|
(43
|
)
|
||||
Total Income before taxes
|
$
|
22
|
|
|
$
|
28
|
|
|
$
|
33
|
|
|
$
|
56
|
|
Table 34. Xome - Technology and Support - Loss before Taxes
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Technology
|
$
|
(12
|
)
|
|
$
|
(9
|
)
|
|
$
|
(24
|
)
|
|
$
|
(14
|
)
|
SaaS
(1)
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
||||
Corporate Support and Other
|
(7
|
)
|
|
(17
|
)
|
|
(15
|
)
|
|
(30
|
)
|
||||
Total technology and support - loss before taxes
|
$
|
(19
|
)
|
|
$
|
(26
|
)
|
|
$
|
(38
|
)
|
|
$
|
(43
|
)
|
Table 35. Corporate and Other - Operations
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Revenues
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
1
|
|
|
$
|
4
|
|
Expenses
|
24
|
|
|
20
|
|
|
45
|
|
|
42
|
|
||||
Other expense, net
|
(38
|
)
|
|
(40
|
)
|
|
(76
|
)
|
|
(79
|
)
|
||||
Total loss before income tax benefit - Corporate and Other
|
$
|
(62
|
)
|
|
$
|
(58
|
)
|
|
$
|
(120
|
)
|
|
$
|
(117
|
)
|
Table 36. Income Before Income Tax Expense Components
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest expense on unsecured senior notes
|
$
|
(38
|
)
|
|
$
|
(40
|
)
|
|
$
|
(76
|
)
|
|
$
|
(80
|
)
|
Legacy
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Other corporate
|
(23
|
)
|
|
(18
|
)
|
|
(42
|
)
|
|
(37
|
)
|
||||
Total loss before income tax benefit - Corporate and Other
|
$
|
(62
|
)
|
|
$
|
(58
|
)
|
|
$
|
(120
|
)
|
|
$
|
(117
|
)
|
Table 37. Legacy Portfolio
|
June 30, 2016
|
|
December 31, 2015
|
||||
Performing - UPB
|
$
|
176
|
|
|
$
|
178
|
|
Nonperforming (90+ delinquency) - UPB
|
55
|
|
|
71
|
|
||
REO - estimated fair value
|
3
|
|
|
3
|
|
||
Total legacy portfolio
|
$
|
234
|
|
|
$
|
252
|
|
Table 38. Corporate and Other - Expenses
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Salaries, wages and benefits
|
$
|
9
|
|
|
$
|
12
|
|
|
$
|
16
|
|
|
$
|
21
|
|
General and administrative
|
14
|
|
|
6
|
|
|
27
|
|
|
16
|
|
||||
Depreciation and amortization
|
1
|
|
|
2
|
|
|
2
|
|
|
5
|
|
||||
Total expenses - Corporate and Other
|
$
|
24
|
|
|
$
|
20
|
|
|
$
|
45
|
|
|
$
|
42
|
|
Table 39. Corporate and Other - Other Income (Expense), Net
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Interest income, legacy portfolio
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
7
|
|
Interest expense, legacy portfolio
|
(1
|
)
|
|
(2
|
)
|
|
(5
|
)
|
|
(4
|
)
|
||||
Interest expense on unsecured senior notes
|
(38
|
)
|
|
(40
|
)
|
|
(76
|
)
|
|
(80
|
)
|
||||
Other
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Other expense, net - Corporate and Other
|
$
|
(38
|
)
|
|
$
|
(40
|
)
|
|
$
|
(76
|
)
|
|
$
|
(79
|
)
|
|
|
|
|
|
|
|
|
||||||||
WAC - unsecured senior notes
|
7
|
%
|
|
7
|
%
|
|
7
|
%
|
|
7
|
%
|
Table 40. Assets
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Cash and cash equivalents
|
$
|
624
|
|
|
$
|
613
|
|
|
2
|
%
|
Mortgage servicing rights
|
2,801
|
|
|
3,367
|
|
|
(17
|
)%
|
||
Advances and other receivables, net
|
2,066
|
|
|
2,412
|
|
|
(14
|
)%
|
||
Reverse mortgage interests, net
|
7,463
|
|
|
7,514
|
|
|
(1
|
)%
|
||
Mortgage loans held for sale
|
2,201
|
|
|
1,430
|
|
|
54
|
%
|
||
Other
|
1,330
|
|
|
1,281
|
|
|
4
|
%
|
||
Total assets
|
$
|
16,485
|
|
|
$
|
16,617
|
|
|
(1
|
)%
|
Table 41. Liabilities and Stockholders' Equity
|
June 30, 2016
|
|
December 31, 2015
|
|
% Change
|
|||||
Unsecured senior notes, net of unamortized debt issuance cost
|
$
|
2,003
|
|
|
$
|
2,026
|
|
|
(1
|
)%
|
Advance facilities, net of unamortized debt issuance cost
|
1,436
|
|
|
1,640
|
|
|
(12
|
)%
|
||
Warehouse facilities, net of unamortized debt issuance cost
|
2,793
|
|
|
1,890
|
|
|
48
|
%
|
||
MSR related liabilities - nonrecourse
|
1,175
|
|
|
1,301
|
|
|
(10
|
)%
|
||
Other nonrecourse debt, net of unamortized debt issuance cost
|
6,511
|
|
|
6,666
|
|
|
(2
|
)%
|
||
Other liabilities
|
1,125
|
|
|
1,327
|
|
|
(15
|
)%
|
||
Total liabilities
|
15,043
|
|
|
14,850
|
|
|
1
|
%
|
||
Total stockholders' equity attributable to Nationstar
|
1,433
|
|
|
1,758
|
|
|
(18
|
)%
|
||
Noncontrolling interest
|
9
|
|
|
9
|
|
|
—
|
%
|
||
Total liabilities and stockholders' equity
|
$
|
16,485
|
|
|
$
|
16,617
|
|
|
(1
|
)%
|
Table 42. Operating Cash Flow
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash provided by operating profits and changes in working capital and other assets
|
$
|
155
|
|
|
$
|
164
|
|
Originations net sales activity
|
319
|
|
|
379
|
|
||
Ginnie Mae buy-backs
|
(770
|
)
|
|
(833
|
)
|
||
Net use of cash for operating activities
|
$
|
(296
|
)
|
|
$
|
(290
|
)
|
Table 43. Investing Cash Flows
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Purchase of reverse mortgage loans
|
$
|
—
|
|
|
$
|
(4,816
|
)
|
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
1
|
|
|
(500
|
)
|
||
Sale of forward mortgage service rights
|
15
|
|
|
—
|
|
||
All other
|
(25
|
)
|
|
(72
|
)
|
||
Net cash attributable to investing activities
|
$
|
(9
|
)
|
|
$
|
(5,388
|
)
|
Table 44. Financing Cash Flow
|
Six months ended June 30,
|
||||||
|
2016
|
|
2015
|
||||
Issuance of advance, warehouse and senior unsecured notes
|
$
|
829
|
|
|
$
|
483
|
|
Increase (decrease) in participating interest financing in reverse mortgage interests
|
(286
|
)
|
|
4,633
|
|
||
Excess spread and MSR liability financing
|
(95
|
)
|
|
158
|
|
||
HECM securitizations
|
(51
|
)
|
|
278
|
|
||
Repurchase of common stock
|
(106
|
)
|
|
—
|
|
||
Proceeds from issuance of common stock
|
—
|
|
|
498
|
|
||
Restricted cash activity
|
31
|
|
|
(102
|
)
|
||
All other
|
(6
|
)
|
|
(6
|
)
|
||
Net cash attributable to financing activities
|
$
|
316
|
|
|
$
|
5,942
|
|
•
|
Cash decreased for financing activities primarily due to the nonrecurrence of the $4,622 of HMBS debt acquired in 2015 from Generation Mortgage.
|
•
|
We received
$498
from the issuance of
17,500
thousand common shares during the second quarter of 2015, which did not recur in 2016.
|
•
|
We also received $53 from the issuance of excess spread financing during the second quarter of 2015, which did not recur in 2016.
|
•
|
During the second quarter of 2016, we repurchased common shares of approximately $51 under previously authorized share repurchase programs of $250.
|
•
|
Issuance of advance, warehouse and senior unsecured notes used $437 during the first quarter of 2016 compared to $882 during the second quarter of 2015. Warehouse facilities increased in 2016 when compared with 2015, consistent with the increase in mortgage loans held for sale assets.
|
▪
|
Base of $2.5 plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth/Total Asset greater than 6%. Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets.
|
▪
|
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 45. Debt
|
June 30, 2016
|
|
December 31, 2015
|
||||
Advance facilities, net of unamortized debt issuance costs
|
$
|
1,436
|
|
|
$
|
1,640
|
|
Warehouse facilities, net of unamortized debt issuance costs
|
2,793
|
|
|
1,890
|
|
||
Unsecured senior notes, net of unamortized debt issuance costs
|
2,003
|
|
|
2,026
|
|
Table 46. Contractual Maturities - Unsecured Senior Notes
|
|
||
Year
|
Amount
|
||
2016
|
$
|
—
|
|
2017
|
—
|
|
|
2018
|
475
|
|
|
2019
|
346
|
|
|
2020
|
400
|
|
|
Thereafter
|
802
|
|
|
|
2,023
|
|
|
Unamortized debt issuance costs
|
(20
|
)
|
|
Total
|
$
|
2,003
|
|
•
|
our ability to refinance existing loans and maintain our loan originations volume;
|
•
|
our ability to increase recapture of 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 and customer service initiatives;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
risks related to servicing reverse mortgages;
|
•
|
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;
|
•
|
our ability to realize all of the anticipated benefits of previous and potential future acquisitions;
|
•
|
increased legal and regulatory investigations and 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
|
|
|
|
|
|
|
|
10.1
|
Nationstar Mortgage Holdings Inc. Second Amended and Restated 2012 Incentive Compensation Plan, effective May 12, 2016
|
8-K
|
001-35449
|
10.1
|
05/12/2016
|
|
10.2
|
Amendment Number One, dated as of June 24, 2016 to the Second Amended and Restated Master Repurchase Agreement, dated January 29, 2016, among Barclays Bank PLC, as purchaser and agent, Sutton Funding LLC, as purchaser, and Nationstar Mortgage LLC, as seller
|
|
|
|
|
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
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
X
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
X
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
X
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
|
|
|
|
August 8, 2016
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
August 8, 2016
|
|
/s/ Robert D. Stiles
|
Date
|
|
Robert D. Stiles
Chief Financial Officer
(Principal Finance and Accounting Officer)
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
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10.1
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Nationstar Mortgage Holdings Inc. Second Amended and Restated 2012 Incentive Compensation Plan, effective May 12, 2016
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8-K
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001-35449
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10.1
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05/12/2016
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10.2
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Amendment Number One, dated as of June 24, 2016 to the Second Amended and Restated Master Repurchase Agreement, dated January 29, 2016, among Barclays Bank PLC, as purchaser and agent, Sutton Funding LLC, as purchaser, and Nationstar Mortgage LLC, as seller
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X
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31.1
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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
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X
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31.2
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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
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X
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32.1
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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
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X
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32.2
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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
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X
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101.INS
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XBRL Instance Document
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X
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101.SCH
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XBRL Taxonomy Extension Schema Document
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X
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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X
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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X
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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X
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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X
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1.
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I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2016 of Nationstar Mortgage Holdings Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15(d) - 15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date:
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August 8, 2016
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/s/ Jay Bray
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Jay Bray
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Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q for the quarter ended June 30, 2016 of Nationstar Mortgage Holdings Inc.;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
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a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5.
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The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a.
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date:
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August 8, 2016
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/s/ Robert D. Stiles
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Robert D. Stiles
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Chief Financial Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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August 8, 2016
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/s/ Jay Bray
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||
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Jay Bray
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||
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Chief Executive Officer
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(1)
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The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Date:
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August 8, 2016
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/s/ Robert D. Stiles
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Robert D. Stiles
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Chief Financial Officer
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