x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
|
|
45-2156869
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
8950 Cypress Waters Blvd Coppell, TX
|
|
75019
|
(Address of principal executive offices)
|
|
(Zip Code)
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Large Accelerated Filer
|
¨
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Accelerated Filer
|
x
|
Non-Accelerated Filer
|
¨
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(Do not check if a smaller reporting company)
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|
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|
Smaller reporting company
|
¨
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Emerging growth company
|
¨
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Page
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PART I
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FINANCIAL INFORMATION
|
|
|
|
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Item 1.
|
||
|
|
|
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Consolidated Balance Sheets as of March 31, 2017 (unaudited) and December 31, 2016
|
|
|
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Consolidated Statements of Operations (unaudited) for the Three Months Ended March 31, 2017 and 2016
|
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Consolidated Statements of Stockholders’ Equity (unaudited) for the Three Months Ended March 31, 2017 and 2016
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Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2017 and 2016
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Notes to Consolidated Financial Statements (unaudited)
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Item 2.
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||
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Item 3.
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Quantitative and Qualitative Disclosures about Market Risk
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|
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Item 4.
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||
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PART II
|
OTHER INFORMATION
|
|
|
|
|
Item 1.
|
||
|
|
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Item 1A.
|
||
|
|
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Item 2.
|
||
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Item 3.
|
||
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Item 4.
|
||
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Item 5.
|
||
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Item 6.
|
||
|
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||
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
443
|
|
|
$
|
489
|
|
Restricted cash
|
304
|
|
|
388
|
|
||
Mortgage servicing rights, $3,168, and $3,160 at fair value, respectively
|
3,173
|
|
|
3,166
|
|
||
Advances and other receivables, net of reserves of $208 and $184, respectively
|
1,580
|
|
|
1,749
|
|
||
Reverse mortgage interests, net of reserves of $137 and $131, respectively
|
10,849
|
|
|
11,033
|
|
||
Mortgage loans held for sale at fair value
|
1,476
|
|
|
1,788
|
|
||
Mortgage loans held for investment, net
|
150
|
|
|
151
|
|
||
Property and equipment, net of accumulated depreciation of $130 and $118, respectively
|
136
|
|
|
136
|
|
||
Derivative financial instruments at fair value
|
82
|
|
|
133
|
|
||
Other assets
|
552
|
|
|
560
|
|
||
Total assets
|
$
|
18,745
|
|
|
$
|
19,593
|
|
|
|
|
|
||||
Liabilities and stockholders' equity
|
|
|
|
||||
Unsecured senior notes, net
|
$
|
1,944
|
|
|
$
|
1,990
|
|
Advance facilities, net
|
931
|
|
|
1,096
|
|
||
Warehouse facilities, net
|
2,413
|
|
|
2,421
|
|
||
Payables and accrued liabilities
|
1,221
|
|
|
1,470
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,209
|
|
|
1,241
|
|
||
Mortgage servicing liabilities
|
49
|
|
|
48
|
|
||
Derivative financial instruments at fair value
|
14
|
|
|
13
|
|
||
Other nonrecourse debt, net
|
9,277
|
|
|
9,631
|
|
||
Total liabilities
|
17,058
|
|
|
17,910
|
|
||
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, 109,915 thousand and 109,915 thousand shares issued, respectively
|
1
|
|
|
1
|
|
||
Additional paid-in-capital
|
1,127
|
|
|
1,122
|
|
||
Retained earnings
|
703
|
|
|
701
|
|
||
Treasury shares at cost 12,148 thousand and 12,418 thousand shares, respectively
|
(150
|
)
|
|
(147
|
)
|
||
Total Nationstar stockholders' equity
|
1,681
|
|
|
1,677
|
|
||
Noncontrolling interest
|
6
|
|
|
6
|
|
||
Total stockholders' equity
|
1,687
|
|
|
1,683
|
|
||
Total liabilities and stockholders' equity
|
$
|
18,745
|
|
|
$
|
19,593
|
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues:
|
|
|
|
||||
Service related, net
|
$
|
283
|
|
|
$
|
84
|
|
Net gain on mortgage loans held for sale
|
144
|
|
|
171
|
|
||
Total revenues
|
427
|
|
|
255
|
|
||
Expenses:
|
|
|
|
||||
Salaries, wages and benefits
|
192
|
|
|
197
|
|
||
General and administrative
|
180
|
|
|
215
|
|
||
Total expenses
|
372
|
|
|
412
|
|
||
Other income (expenses):
|
|
|
|
||||
Interest income
|
139
|
|
|
103
|
|
||
Interest expense
|
(190
|
)
|
|
(161
|
)
|
||
Other expense
|
(1
|
)
|
|
—
|
|
||
Total other income (expenses), net
|
(52
|
)
|
|
(58
|
)
|
||
Income (loss) before income tax expense (benefit)
|
3
|
|
|
(215
|
)
|
||
Less: Income tax expense (benefit)
|
1
|
|
|
(82
|
)
|
||
Net income (loss)
|
2
|
|
|
(133
|
)
|
||
Less: Net income (loss) attributable to non-controlling interests
|
—
|
|
|
(1
|
)
|
||
Net income (loss) attributable to Nationstar
|
$
|
2
|
|
|
$
|
(132
|
)
|
|
|
|
|
||||
Net income (loss) per common share attributable to common stockholders:
|
|
|
|
||||
Basic
|
$
|
0.02
|
|
|
$
|
(1.28
|
)
|
Diluted
|
$
|
0.02
|
|
|
$
|
(1.28
|
)
|
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
||||
Basic
|
97,591
|
|
|
103,098
|
|
||
Dilutive effect of stock awards
|
1,212
|
|
|
—
|
|
||
Diluted
|
98,803
|
|
|
103,098
|
|
|
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, 2015
|
108,000
|
|
|
$
|
1
|
|
|
$
|
1,105
|
|
|
$
|
682
|
|
|
$
|
(30
|
)
|
|
$
|
1,758
|
|
|
$
|
9
|
|
|
$
|
1,767
|
|
Shares issued (surrendered) under incentive plan, net
|
395
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
|||||||
Excess tax benefit from share based compensation
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||||
Repurchase of common stock
|
(5,522
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
|||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(132
|
)
|
|
—
|
|
|
(132
|
)
|
|
(1
|
)
|
|
(133
|
)
|
|||||||
Balance at March 31, 2016
|
102,873
|
|
|
$
|
1
|
|
|
$
|
1,109
|
|
|
$
|
550
|
|
|
$
|
(86
|
)
|
|
$
|
1,574
|
|
|
$
|
8
|
|
|
$
|
1,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at December 31, 2016
|
97,497
|
|
|
$
|
1
|
|
|
$
|
1,122
|
|
|
$
|
701
|
|
|
$
|
(147
|
)
|
|
$
|
1,677
|
|
|
$
|
6
|
|
|
$
|
1,683
|
|
Shares issued (surrendered) under incentive plan, net
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
5
|
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Balance at March 31, 2017
|
97,767
|
|
|
$
|
1
|
|
|
$
|
1,127
|
|
|
$
|
703
|
|
|
$
|
(150
|
)
|
|
$
|
1,681
|
|
|
$
|
6
|
|
|
$
|
1,687
|
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
2
|
|
|
$
|
(132
|
)
|
Reconciliation of net income (loss) to net cash attributable to operating activities:
|
|
|
|
||||
Noncontrolling interest
|
—
|
|
|
(1
|
)
|
||
Net gain on mortgage loans held for sale
|
(144
|
)
|
|
(171
|
)
|
||
Reverse loan interest income
|
(118
|
)
|
|
(85
|
)
|
||
Loss on liquidation of reverse loans
|
2
|
|
|
—
|
|
||
Provision for servicing reserves
|
34
|
|
|
36
|
|
||
Fair value changes and amortization of mortgage servicing rights
|
58
|
|
|
286
|
|
||
Fair value changes in mortgage loans held for sale
|
(20
|
)
|
|
(23
|
)
|
||
Fair value changes in excess spread financing
|
25
|
|
|
(24
|
)
|
||
Fair value changes in mortgage servicing rights financing liability
|
1
|
|
|
13
|
|
||
Amortization of premiums and accretion of discount
|
12
|
|
|
17
|
|
||
Depreciation and amortization
|
14
|
|
|
17
|
|
||
Share-based compensation
|
5
|
|
|
7
|
|
||
Other loss
|
1
|
|
|
—
|
|
||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(296
|
)
|
|
(348
|
)
|
||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to prior servicers
|
(808
|
)
|
|
(485
|
)
|
||
Mortgage loans originated and purchased, net of fees
|
(4,632
|
)
|
|
(4,240
|
)
|
||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
5,399
|
|
|
4,300
|
|
||
Excess tax benefit from share-based compensation
|
—
|
|
|
3
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Advances and other receivables, net
|
148
|
|
|
160
|
|
||
Reverse mortgage interests, net
|
1,100
|
|
|
547
|
|
||
Other assets
|
(2
|
)
|
|
(48
|
)
|
||
Payables and accrued liabilities
|
(250
|
)
|
|
(160
|
)
|
||
Net cash attributable to operating activities
|
531
|
|
|
(331
|
)
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Property and equipment additions, net of disposals
|
(13
|
)
|
|
(13
|
)
|
||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(4
|
)
|
|
(2
|
)
|
||
Purchase of reverse mortgage interests, net
|
—
|
|
|
(55
|
)
|
||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
19
|
|
||
Net cash attributable to investing activities
|
(17
|
)
|
|
(51
|
)
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Financing Activities
|
|
|
|
||||
Increase (decrease) in warehouse facilities
|
(9
|
)
|
|
523
|
|
||
Decrease in advance facilities
|
(164
|
)
|
|
(79
|
)
|
||
Proceeds from HECM securitizations
|
—
|
|
|
282
|
|
||
Repayment of HECM securitizations
|
(75
|
)
|
|
(286
|
)
|
||
Decrease in participating interest financing in reverse mortgage interests
|
(280
|
)
|
|
(120
|
)
|
||
Repayment of excess spread financing
|
(58
|
)
|
|
(47
|
)
|
||
Repayment of nonrecourse debt – legacy assets
|
(5
|
)
|
|
(3
|
)
|
||
Repurchase of unsecured senior notes
|
(48
|
)
|
|
(2
|
)
|
||
Repurchase of common stock
|
—
|
|
|
(55
|
)
|
||
Transfers to restricted cash, net
|
84
|
|
|
25
|
|
||
Excess tax deficiency from share based compensation
|
—
|
|
|
(3
|
)
|
||
Surrender of shares relating to stock vesting
|
(3
|
)
|
|
(2
|
)
|
||
Debt financing costs
|
(2
|
)
|
|
(3
|
)
|
||
Net cash attributable to financing activities
|
(560
|
)
|
|
230
|
|
||
Net decrease in cash and cash equivalents
|
(46
|
)
|
|
(152
|
)
|
||
Cash and cash equivalents - beginning of period
|
489
|
|
|
613
|
|
||
Cash and cash equivalents - end of period
|
$
|
443
|
|
|
$
|
461
|
|
|
|
|
|
||||
Supplemental disclosures of cash activities
|
|
|
|
||||
Cash paid for interest expense
|
$
|
199
|
|
|
$
|
167
|
|
Net cash paid for income taxes
|
$
|
2
|
|
|
$
|
15
|
|
MSRs and Related Liabilities
|
March 31, 2017
|
|
December 31, 2016
|
||||
Forward MSRs - fair value
|
$
|
3,168
|
|
|
$
|
3,160
|
|
Reverse MSRs - amortized cost
|
5
|
|
|
6
|
|
||
Mortgage servicing rights
|
$
|
3,173
|
|
|
$
|
3,166
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
49
|
|
|
$
|
48
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,181
|
|
|
$
|
1,214
|
|
Mortgage servicing rights financing liability - fair value
|
28
|
|
|
27
|
|
||
MSR related liabilities (nonrecourse)
|
$
|
1,209
|
|
|
$
|
1,241
|
|
|
Three months ended March 31,
|
||||||
Forward MSRs - Fair Value
|
2017
|
|
2016
|
||||
Fair value - beginning of period
|
$
|
3,160
|
|
|
$
|
3,358
|
|
Additions:
|
|
|
|
||||
Servicing retained from mortgage loans sold
|
59
|
|
|
40
|
|
||
Purchases of servicing rights
|
5
|
|
|
—
|
|
||
Dispositions:
|
|
|
|
||||
Sales of servicing assets
|
—
|
|
|
(16
|
)
|
||
Changes in fair value:
|
|
|
|
||||
Changes in valuation inputs or assumptions used in the valuation model
|
14
|
|
|
(237
|
)
|
||
Other changes in fair value
|
(70
|
)
|
|
(57
|
)
|
||
Fair value - end of period
|
$
|
3,168
|
|
|
$
|
3,088
|
|
Forward MSRs - Sensitivity Pools
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
190,019
|
|
|
$
|
1,819
|
|
|
$
|
198,935
|
|
|
$
|
1,818
|
|
Interest sensitive
|
113,336
|
|
|
1,349
|
|
|
113,141
|
|
|
1,342
|
|
||||
Total
|
$
|
303,355
|
|
|
$
|
3,168
|
|
|
$
|
312,076
|
|
|
$
|
3,160
|
|
Credit Sensitive
|
March 31, 2017
|
|
December 31, 2016
|
||
Discount rate
|
11.4
|
%
|
|
11.6
|
%
|
Total prepayment speeds
|
15.4
|
%
|
|
15.4
|
%
|
Expected weighted-average life
|
6.0 years
|
|
|
6.0 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.3
|
%
|
Total prepayment speeds
|
10.7
|
%
|
|
10.7
|
%
|
Expected weighted-average life
|
6.8 years
|
|
|
6.8 years
|
|
|
Discount Rate
|
|
Total Prepayment
Speeds
|
||||||||||||
Forward MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(120
|
)
|
|
$
|
(231
|
)
|
|
$
|
(124
|
)
|
|
$
|
(238
|
)
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(114
|
)
|
|
$
|
(221
|
)
|
|
$
|
(117
|
)
|
|
$
|
(224
|
)
|
|
Three months ended March 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Assets
|
|
Liabilities
|
|
Assets
|
|
Liabilities
|
||||||||
Reverse MSRs and Liabilities - Amortized Cost
|
|
|
|
|
|
|
|
||||||||
Balance - beginning of period
|
$
|
6
|
|
|
$
|
48
|
|
|
$
|
9
|
|
|
$
|
25
|
|
Increased MSL obligation
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
||||
Amortization/accretion
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(7
|
)
|
||||
Balance - end of the period
|
$
|
5
|
|
|
$
|
49
|
|
|
$
|
8
|
|
|
$
|
18
|
|
Fair value - end of period
|
$
|
14
|
|
|
$
|
32
|
|
|
$
|
28
|
|
|
$
|
3
|
|
Excess Spread Financing
|
Prepayment Speeds
|
|
Average
Life (Years) |
|
Discount
Rate |
|
Recapture Rate
|
March 31, 2017
|
|
|
|
|
|
|
|
Low
|
6.3%
|
|
4.0
|
|
8.5%
|
|
6.7%
|
High
|
21.4%
|
|
7.5
|
|
14.0%
|
|
30.1%
|
Weighted-average
|
13.9%
|
|
6.2
|
|
10.8%
|
|
19.1%
|
December 31, 2016
|
|
|
|
|
|
|
|
Low
|
6.1%
|
|
4.1
|
|
8.5%
|
|
6.7%
|
High
|
21.2%
|
|
8.5
|
|
14.1%
|
|
29.8%
|
Weighted-average
|
13.9%
|
|
6.3
|
|
10.8%
|
|
19.0%
|
|
Discount Rate
|
|
Prepayment
Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
March 31, 2017
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
46
|
|
|
$
|
95
|
|
|
$
|
40
|
|
|
$
|
84
|
|
December 31, 2016
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
49
|
|
|
$
|
101
|
|
|
$
|
41
|
|
|
$
|
85
|
|
Mortgage Servicing Rights Financing Assumptions
|
March 31, 2017
|
|
December 31, 2016
|
||
Advance financing rates
|
3.2
|
%
|
|
3.2
|
%
|
Annual advance recovery rates
|
22.9
|
%
|
|
23.9
|
%
|
|
Three months ended March 31,
|
||||||
Servicing Revenue
|
2017
|
|
2016
|
||||
Contractually specified servicing fees including subservicing fees
|
$
|
255
|
|
|
$
|
270
|
|
Other service-related income
|
46
|
|
|
60
|
|
||
Incentive and modification income
|
22
|
|
|
24
|
|
||
Late fees
|
24
|
|
|
19
|
|
||
Reverse servicing fees
|
14
|
|
|
18
|
|
||
Mark-to-market
(1)
|
(38
|
)
|
|
(262
|
)
|
||
Counter party revenue share
(2)
|
(62
|
)
|
|
(74
|
)
|
||
Amortization, net of accretion
(3)
|
(61
|
)
|
|
(65
|
)
|
||
Total servicing revenue
|
$
|
200
|
|
|
$
|
(10
|
)
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Servicing advances
|
$
|
1,431
|
|
|
$
|
1,614
|
|
Receivables from agencies, investors and prior servicers
|
357
|
|
|
319
|
|
||
Reserves
|
(208
|
)
|
|
(184
|
)
|
||
Total advances and other receivables, net
|
$
|
1,580
|
|
|
$
|
1,749
|
|
|
Three months ended March 31,
|
||||||
Advances and Other Receivables Reserves
|
2017
|
|
2016
|
||||
Balance - beginning of period
(1)
|
$
|
184
|
|
|
$
|
163
|
|
Provision and other additions
(2)
|
40
|
|
|
42
|
|
||
Write-offs
|
(16
|
)
|
|
—
|
|
||
Balance - end of period
|
$
|
208
|
|
|
$
|
205
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Participating interests in HMBS
|
$
|
8,567
|
|
|
$
|
8,839
|
|
Other interests securitized
|
688
|
|
|
753
|
|
||
Unsecuritized interests
|
1,731
|
|
|
1,572
|
|
||
Reserves
|
(137
|
)
|
|
(131
|
)
|
||
Total reverse mortgage interests, net
|
$
|
10,849
|
|
|
$
|
11,033
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Repurchased HECM loans
|
$
|
1,270
|
|
|
$
|
1,000
|
|
HECM related receivables
|
315
|
|
|
301
|
|
||
Funded borrower draws not yet securitized
|
96
|
|
|
236
|
|
||
Foreclosed assets
|
50
|
|
|
35
|
|
||
Total unsecuritized interests
|
$
|
1,731
|
|
|
$
|
1,572
|
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Reserves for reverse mortgage interests - beginning of period
|
$
|
131
|
|
|
$
|
53
|
|
Provision
|
8
|
|
|
8
|
|
||
Charge-offs
|
(2
|
)
|
|
—
|
|
||
Reserves for reverse mortgage interests - end of period
|
$
|
137
|
|
|
$
|
61
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Mortgage loans held for sale – unpaid principal balance
|
$
|
1,431
|
|
|
$
|
1,759
|
|
Mark-to-market adjustment
(1)
|
45
|
|
|
29
|
|
||
Total mortgage loans held for sale
|
$
|
1,476
|
|
|
$
|
1,788
|
|
|
Three months ended March 31,
|
||||||
Mortgage loans held for sale
|
2017
|
|
2016
|
||||
Balance - beginning of period
|
$
|
1,788
|
|
|
$
|
1,430
|
|
Mortgage loans originated and purchased, net of fees
|
4,632
|
|
|
4,240
|
|
||
Loans sold
|
(5,268
|
)
|
|
(4,173
|
)
|
||
Repurchase of loans out of Ginnie Mae securitizations
|
296
|
|
|
348
|
|
||
Transfer of mortgage loans held for sale to advances/accounts receivable related to claims
(1)
|
(4
|
)
|
|
(8
|
)
|
||
Net transfer of mortgage loans held for sale from REO in other assets
(2)
|
7
|
|
|
9
|
|
||
Changes in fair value
|
20
|
|
|
23
|
|
||
Other
|
5
|
|
|
12
|
|
||
Balance - end of period
|
$
|
1,476
|
|
|
$
|
1,881
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Mortgage loans held for investment, net – UPB
|
$
|
209
|
|
|
$
|
216
|
|
Transfer discount:
|
|
|
|
||||
Non-accretable
|
(46
|
)
|
|
(52
|
)
|
||
Accretable
|
(13
|
)
|
|
(13
|
)
|
||
Total mortgage loans held for investment, net
|
$
|
150
|
|
|
$
|
151
|
|
|
Three months ended March 31,
|
||||||
Accretable Yield Discount
|
2017
|
|
2016
|
||||
Balance - beginning of the period
|
$
|
(13
|
)
|
|
$
|
(15
|
)
|
Accretion
|
1
|
|
|
1
|
|
||
Reclassifications from non-accretable discount
|
(1
|
)
|
|
—
|
|
||
Balance - end of the period
|
$
|
(13
|
)
|
|
$
|
(14
|
)
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Loans subject to repurchase right from Ginnie Mae
|
$
|
157
|
|
|
$
|
152
|
|
Accrued revenues
|
151
|
|
|
165
|
|
||
Goodwill
|
74
|
|
|
74
|
|
||
Deposits
|
30
|
|
|
25
|
|
||
Intangible assets
|
27
|
|
|
28
|
|
||
Real estate owned (REO), net
|
26
|
|
|
30
|
|
||
Prepaid expenses
|
20
|
|
|
16
|
|
||
Receivables from affiliates, net
|
6
|
|
|
6
|
|
||
Other
|
61
|
|
|
64
|
|
||
Total other assets
|
$
|
552
|
|
|
$
|
560
|
|
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded
Gains /
(Losses)
|
||||||
Three months ended March 31, 2017
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale, net
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2017
|
|
$
|
4
|
|
|
$
|
0.2
|
|
|
$
|
0.1
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2017
|
|
2,605
|
|
|
78.3
|
|
|
(13.9
|
)
|
|||
Forward sales of MBS
|
2017
|
|
732
|
|
|
1.3
|
|
|
(37.9
|
)
|
|||
LPCs
|
2017
|
|
170
|
|
|
1.3
|
|
|
(0.6
|
)
|
|||
Treasury futures
|
2017
|
|
63
|
|
|
0.6
|
|
|
0.6
|
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
26
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2017
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2017
|
|
6
|
|
|
—
|
|
|
1.1
|
|
|||
Forward sales of MBS
|
2017
|
|
2,654
|
|
|
12.4
|
|
|
(2.4
|
)
|
|||
LPCs
|
2017
|
|
126
|
|
|
0.3
|
|
|
1.2
|
|
|||
Treasury futures
|
2017
|
|
98
|
|
|
0.8
|
|
|
(0.8
|
)
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
31
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2017
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|||
|
|
|
|
|
|
|
|
||||||
Year ended December 31, 2016
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2017
|
|
$
|
1
|
|
|
$
|
0.1
|
|
|
$
|
(0.2
|
)
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2017
|
|
3,675
|
|
|
92.2
|
|
|
3.1
|
|
|||
Forward sales of MBS
|
2017
|
|
2,580
|
|
|
39.2
|
|
|
33.1
|
|
|||
LPCs
|
2017
|
|
203
|
|
|
1.9
|
|
|
(2.0
|
)
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
35
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Interest rate swaps
|
2017
|
|
9
|
|
|
0.1
|
|
|
(0.4
|
)
|
|||
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2017
|
|
176
|
|
|
1.1
|
|
|
(1.1
|
)
|
|||
Forward sales of MBS
|
2017
|
|
1,689
|
|
|
10.0
|
|
|
(6.3
|
)
|
|||
LPCs
(1)
|
2017
|
|
111
|
|
|
1.5
|
|
|
—
|
|
|||
Eurodollar futures
(1)
|
2017-2021
|
|
27
|
|
|
—
|
|
|
0.1
|
|
|||
Interest rate swaps
|
2017
|
|
9
|
|
|
0.1
|
|
|
0.4
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Nationstar agency advance receivables trust
|
|
LIBOR+2.0% to 2.6%
|
|
October 2017
|
|
Servicing advance receivables
|
|
$
|
650
|
|
|
$
|
443
|
|
|
$
|
503
|
|
|
$
|
485
|
|
|
$
|
578
|
|
Nationstar mortgage advance receivable
trust |
|
LIBOR+1.4% to 6.5%
|
|
December 2017
|
|
Servicing advance receivables
|
|
500
|
|
|
217
|
|
|
254
|
|
|
260
|
|
|
301
|
|
|||||
Nationstar agency advance financing facility
|
|
LIBOR+1.0% to 7.4%
|
|
January 2018
|
|
Servicing advance receivables
|
|
200
|
|
|
124
|
|
|
147
|
|
|
164
|
|
|
186
|
|
|||||
MBS servicer advance facility (2014)
|
|
LIBOR+3.5%
|
|
September 2017
|
|
Servicing advance receivables
|
|
125
|
|
|
94
|
|
|
132
|
|
|
88
|
|
|
142
|
|
|||||
MBS advance financing facility
|
|
LIBOR+2.5%
|
|
March
2018 |
|
Servicing advance receivables
|
|
80
|
|
|
54
|
|
|
58
|
|
|
55
|
|
|
60
|
|
|||||
MBS advance financing facility (2012)
(1)
|
|
LIBOR+5.0%
|
|
January
2017 |
|
Servicing advance receivables
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|
52
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
932
|
|
|
1,094
|
|
|
1,096
|
|
|
1,319
|
|
||||||||||
Debt issuance costs
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Advance facilities, net
|
|
|
|
$
|
931
|
|
|
$
|
1,094
|
|
|
$
|
1,096
|
|
|
$
|
1,319
|
|
||||||||
|
||||||||||||||||||||||||||
(1)
This MBS Advance Financing facility was paid off in full in February 2017.
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,200 warehouse facility
|
|
LIBOR+2.0% to 2.9%
|
|
October 2017
|
|
Mortgage loans or MBS
|
|
$
|
1,200
|
|
|
$
|
646
|
|
|
$
|
710
|
|
|
$
|
682
|
|
|
$
|
747
|
|
$900 warehouse facility
|
|
LIBOR+1.8% to 3.3%
|
|
June
2017 |
|
Mortgage loans or MBS
|
|
900
|
|
|
447
|
|
|
487
|
|
|
496
|
|
|
539
|
|
|||||
$850 warehouse facility
|
|
LIBOR+2.0% to 2.8%
|
|
November 2017
|
|
Mortgage loans or MBS
|
|
850
|
|
|
493
|
|
|
543
|
|
|
410
|
|
|
415
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
September 2017
|
|
Mortgage loans or MBS
|
|
500
|
|
|
173
|
|
|
178
|
|
|
229
|
|
|
237
|
|
|||||
$500 warehouse Facility
|
|
LIBOR+2.1% to 2.5%
|
|
September 2017
|
|
Mortgage loans or MBS
|
|
500
|
|
|
143
|
|
|
148
|
|
|
250
|
|
|
256
|
|
|||||
$350 warehouse facility
|
|
LIBOR+2.2% to 2.8%
|
|
April
2018 |
|
Mortgage loans or MBS
|
|
350
|
|
|
20
|
|
|
22
|
|
|
12
|
|
|
13
|
|
|||||
$350 warehouse facility
|
|
LIBOR+2.5% to 2.6%
|
|
November
2017 |
|
Mortgage loans or MBS
|
|
350
|
|
|
270
|
|
|
294
|
|
|
173
|
|
|
189
|
|
|||||
$300 warehouse facility
|
|
LIBOR+2.3%
|
|
January 2018
|
|
Mortgage loans or MBS
|
|
300
|
|
|
154
|
|
|
181
|
|
|
153
|
|
|
180
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.6%
|
|
April
2019 |
|
Mortgage loans or MBS
|
|
200
|
|
|
55
|
|
|
56
|
|
|
7
|
|
|
8
|
|
|||||
$40 warehouse facility
|
|
LIBOR+3.0%
|
|
December 2017
|
|
Mortgage loans or MBS
|
|
40
|
|
|
14
|
|
|
22
|
|
|
11
|
|
|
18
|
|
|||||
Warehouse facilities principal amount
|
|
|
|
|
|
2,415
|
|
|
2,641
|
|
|
2,423
|
|
|
2,602
|
|
||||||||||
Debt issuance costs
|
|
|
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||||||||
Warehouse facilities, net
|
|
|
|
$
|
2,413
|
|
|
$
|
2,641
|
|
|
$
|
2,421
|
|
|
$
|
2,602
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Mortgage loans, net
|
|
|
|
|
|
|
|
$
|
1,399
|
|
|
$
|
1,151
|
|
|
$
|
1,693
|
|
|
$
|
1,427
|
|
||||
Reverse mortgage interests, net
|
|
|
|
|
|
|
|
$
|
1,016
|
|
|
$
|
1,146
|
|
|
$
|
730
|
|
|
$
|
834
|
|
||||
MSR and other collateral
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
344
|
|
|
$
|
—
|
|
|
$
|
341
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|||||||||||||||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
|
$
|
595
|
|
|
$
|
595
|
|
|||||||||||||
$475 face value, 6.500% interest rate payable semi-annually, due August 2018
|
413
|
|
|
461
|
|
|||||||||||||||
$400 face value, 7.875% interest rate payable semi-annually, due October 2020
|
400
|
|
|
400
|
|
|||||||||||||||
$375 face value, 9.625% interest rate payable semi-annually, due May 2019
|
345
|
|
|
345
|
|
|||||||||||||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
|
206
|
|
|
206
|
|
|||||||||||||||
Unsecured senior notes principal amount
|
1,959
|
|
|
2,007
|
|
|||||||||||||||
Debt issuance costs
|
(15
|
)
|
|
(17
|
)
|
|||||||||||||||
Unsecured senior notes, net
|
$
|
1,944
|
|
|
$
|
1,990
|
|
Year ending December 31,
|
|
Amount
|
||
2017
|
|
$
|
—
|
|
2018
|
|
413
|
|
|
2019
|
|
345
|
|
|
2020
|
|
400
|
|
|
2021
|
|
595
|
|
|
Thereafter
|
|
206
|
|
|
Unsecured senior notes principal amount
|
|
1,959
|
|
|
Unamortized debt issuance costs
|
|
(15
|
)
|
|
Unsecured senior notes, net
|
|
$
|
1,944
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
Outstanding
|
||||||
Participating Interest Financing
(1)
|
_
|
|
_
|
|
_
|
|
$
|
—
|
|
|
$
|
8,639
|
|
|
$
|
8,914
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2015-2
|
November 2015
|
|
November 2025
|
|
A, M1, M2
|
|
127
|
|
|
100
|
|
|
114
|
|
|||
Trust 2016-1
|
March 2016
|
|
February 2026
|
|
A, M1, M2
|
|
214
|
|
|
176
|
|
|
194
|
|
|||
Trust 2016-2
|
June 2016
|
|
June 2026
|
|
A, M1, M2
|
|
159
|
|
|
136
|
|
|
158
|
|
|||
Trust 2016-3
|
August 2016
|
|
August 2026
|
|
A, M1, M2
|
|
212
|
|
|
187
|
|
|
208
|
|
|||
Nonrecourse debt - legacy assets
|
November 2009
|
|
October 2039
|
|
A
|
|
202
|
|
|
45
|
|
|
50
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
9,283
|
|
|
9,638
|
|
||||
Unamortized debt issuance costs
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
(7
|
)
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
$
|
9,277
|
|
|
$
|
9,631
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||
Payables to servicing and subservicing investors
|
$
|
508
|
|
|
$
|
655
|
|
Loans subject to repurchase from Ginnie Mae
|
157
|
|
|
152
|
|
||
Taxes
|
84
|
|
|
84
|
|
||
Accrued interest
|
65
|
|
|
65
|
|
||
Payable to insurance carriers and insurance cancellation reserves
|
64
|
|
|
73
|
|
||
Accrued bonus and payroll
|
56
|
|
|
95
|
|
||
Payable to GSEs and securitized trusts
|
47
|
|
|
58
|
|
||
Professional and legal
|
43
|
|
|
47
|
|
||
Lease obligations
|
25
|
|
|
24
|
|
||
Accrued liabilities and accounts payable
|
17
|
|
|
49
|
|
||
MSR purchases payable including advances
|
17
|
|
|
21
|
|
||
Repurchase reserves
|
15
|
|
|
18
|
|
||
Other
|
123
|
|
|
129
|
|
||
Total payables and accrued liabilities
|
$
|
1,221
|
|
|
$
|
1,470
|
|
|
Three months ended March 31,
|
||||||
Repurchase Reserves
|
2017
|
|
2016
|
||||
Balance - beginning of period
|
$
|
18
|
|
|
$
|
26
|
|
Provision, net of release
|
(2
|
)
|
|
1
|
|
||
Charge-offs
|
(1
|
)
|
|
(1
|
)
|
||
Balance - end of period
|
$
|
15
|
|
|
$
|
26
|
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
113
|
|
|
$
|
35
|
|
|
$
|
190
|
|
|
$
|
37
|
|
Reverse mortgage interests, net
|
—
|
|
|
9,220
|
|
|
—
|
|
|
9,557
|
|
||||
Advances and other receivables, net
|
904
|
|
|
—
|
|
|
1,065
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
150
|
|
|
—
|
|
|
150
|
|
|
—
|
|
||||
Other assets
|
3
|
|
|
—
|
|
|
4
|
|
|
—
|
|
||||
Total assets
|
$
|
1,170
|
|
|
$
|
9,255
|
|
|
$
|
1,409
|
|
|
$
|
9,594
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities
(1)
|
$
|
784
|
|
|
$
|
—
|
|
|
$
|
909
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
||||
Participating interest financing
(2)
|
—
|
|
|
8,567
|
|
|
—
|
|
|
8,839
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2015-2
|
—
|
|
|
100
|
|
|
—
|
|
|
114
|
|
||||
Trust 2016-1
|
—
|
|
|
176
|
|
|
—
|
|
|
194
|
|
||||
Trust 2016-2
|
—
|
|
|
136
|
|
|
—
|
|
|
158
|
|
||||
Trust 2016-3
|
—
|
|
|
187
|
|
|
—
|
|
|
208
|
|
||||
Nonrecourse debt–legacy assets
|
45
|
|
|
—
|
|
|
50
|
|
|
—
|
|
||||
Total liabilities
|
$
|
830
|
|
|
$
|
9,166
|
|
|
$
|
960
|
|
|
$
|
9,513
|
|
|
March 31, 2017
|
|
December 31, 2016
|
|
|||
Total collateral balances
|
$
|
2,609
|
|
|
$
|
2,704
|
|
Total certificate balances
|
$
|
2,381
|
|
|
$
|
2,455
|
|
Principal Amount of Loans 60 Days or More Past Due
|
March 31, 2017
|
|
December 31, 2016
|
||||
Unconsolidated securitization trusts
|
$
|
478
|
|
|
$
|
548
|
|
|
Three months ended March 31,
|
||||||
Credit Losses
|
2017
|
|
2016
|
||||
Unconsolidated securitization trusts
|
$
|
28
|
|
|
$
|
32
|
|
|
Three months ended March 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Servicing Fees
Received |
|
Loan
Repurchases |
|
Servicing Fees
Received |
|
Loan
Repurchases |
||||||||
Unconsolidated securitization trusts
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Income tax expense (benefit)
|
$
|
1
|
|
|
$
|
(82
|
)
|
|
|
|
|
||||
Effective tax rate
|
35.1
|
%
|
|
38.2
|
%
|
|
March 31, 2017
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
(1)
|
$
|
3,167.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,167.6
|
|
Mortgage loans held for sale
(1)
|
1,476.3
|
|
|
—
|
|
|
1,476.3
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
78.3
|
|
|
—
|
|
|
78.3
|
|
|
—
|
|
||||
Forward MBS trades
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
LPCs
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
Treasury futures
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
4,725.4
|
|
|
$
|
—
|
|
|
$
|
1,557.8
|
|
|
$
|
3,167.6
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
1,180.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,180.6
|
|
Mortgage servicing rights financing
|
28.4
|
|
|
—
|
|
|
—
|
|
|
28.4
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
12.4
|
|
|
—
|
|
|
12.4
|
|
|
—
|
|
||||
LPCs
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
||||
Treasury futures
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total liabilities
|
$
|
1,222.5
|
|
|
$
|
—
|
|
|
$
|
13.5
|
|
|
$
|
1,209.0
|
|
|
December 31, 2016
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
(1)
|
$
|
3,160.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,160.0
|
|
Mortgage loans held for sale
(1)
|
1,788.0
|
|
|
—
|
|
|
1,788.0
|
|
|
—
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
92.2
|
|
|
—
|
|
|
92.2
|
|
|
—
|
|
||||
Forward MBS trades
|
39.2
|
|
|
—
|
|
|
39.2
|
|
|
—
|
|
||||
LPCs
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total assets
|
$
|
5,081.4
|
|
|
$
|
—
|
|
|
$
|
1,921.4
|
|
|
$
|
3,160.0
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
1,214.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,214.0
|
|
Mortgage servicing rights financing
|
27.0
|
|
|
—
|
|
|
—
|
|
|
27.0
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
1.1
|
|
|
—
|
|
|
1.1
|
|
|
—
|
|
||||
Forward MBS trades
|
10.0
|
|
|
—
|
|
|
10.0
|
|
|
—
|
|
||||
LPCs
|
1.5
|
|
|
—
|
|
|
1.5
|
|
|
—
|
|
||||
Interest rate swaps and caps
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total liabilities
|
$
|
1,253.7
|
|
|
$
|
—
|
|
|
$
|
12.7
|
|
|
$
|
1,241.0
|
|
|
Assets
|
|
Liabilities
|
||||||||
Three months ended March 31, 2017
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Balance at the beginning of the period
|
$
|
3,160
|
|
|
$
|
1,214
|
|
|
$
|
27
|
|
Total gains or losses included in earnings
|
(56
|
)
|
|
25
|
|
|
1
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
5
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
59
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(58
|
)
|
|
—
|
|
|||
Balance at the end of the period
|
$
|
3,168
|
|
|
$
|
1,181
|
|
|
$
|
28
|
|
|
Assets
|
|
Liabilities
|
||||||||
Twelve months ended December 31, 2016
|
Mortgage
servicing rights
|
|
Excess spread
financing
|
|
Mortgage servicing rights financing
|
||||||
Balance - beginning of period
|
$
|
3,358
|
|
|
$
|
1,232
|
|
|
$
|
69
|
|
Total gains or losses included in earnings
|
(496
|
)
|
|
25
|
|
|
(42
|
)
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
157
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
208
|
|
|
155
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(198
|
)
|
|
—
|
|
|||
Dispositions
|
(67
|
)
|
|
—
|
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,160
|
|
|
$
|
1,214
|
|
|
$
|
27
|
|
|
March 31, 2017
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
443
|
|
|
$
|
443
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
304
|
|
|
304
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,580
|
|
|
—
|
|
|
—
|
|
|
1,580
|
|
||||
Reverse mortgage interests, net
|
10,849
|
|
|
—
|
|
|
—
|
|
|
11,065
|
|
||||
Mortgage loans held for sale
|
1,476
|
|
|
—
|
|
|
1,476
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
150
|
|
|
—
|
|
|
—
|
|
|
151
|
|
||||
Derivative financial instruments
|
82
|
|
|
—
|
|
|
82
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
1,959
|
|
|
1,991
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
932
|
|
|
—
|
|
|
932
|
|
|
—
|
|
||||
Warehouse facilities
|
2,415
|
|
|
—
|
|
|
2,415
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
28
|
|
|
—
|
|
|
—
|
|
|
28
|
|
||||
Derivative financial instruments
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Excess spread financing
|
1,181
|
|
|
—
|
|
|
—
|
|
|
1,181
|
|
||||
Participating interest financing
|
8,639
|
|
|
—
|
|
|
8,867
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2015-2
|
100
|
|
|
—
|
|
|
—
|
|
|
111
|
|
||||
Trust 2016-1
|
176
|
|
|
—
|
|
|
—
|
|
|
191
|
|
||||
Trust 2016-2
|
136
|
|
|
—
|
|
|
—
|
|
|
143
|
|
||||
Trust 2016-3
|
187
|
|
|
—
|
|
|
—
|
|
|
191
|
|
||||
Nonrecourse debt - legacy assets
|
45
|
|
|
—
|
|
|
—
|
|
|
52
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2016
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
489
|
|
|
$
|
489
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
388
|
|
|
388
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,749
|
|
|
—
|
|
|
—
|
|
|
1,749
|
|
||||
Reverse mortgage interests, net
|
11,033
|
|
|
—
|
|
|
—
|
|
|
11,232
|
|
||||
Mortgage loans held for sale
|
1,788
|
|
|
—
|
|
|
1,788
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
151
|
|
|
—
|
|
|
—
|
|
|
153
|
|
||||
Derivative financial instruments
|
133
|
|
|
—
|
|
|
133
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,007
|
|
|
2,047
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
1,096
|
|
|
—
|
|
|
1,096
|
|
|
—
|
|
||||
Warehouse facilities
|
2,423
|
|
|
—
|
|
|
2,423
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
27
|
|
|
—
|
|
|
—
|
|
|
27
|
|
||||
Excess spread financing
|
1,214
|
|
|
—
|
|
|
—
|
|
|
1,214
|
|
||||
Derivative financial instruments
|
13
|
|
|
—
|
|
|
13
|
|
|
—
|
|
||||
Participating interest financing
|
8,914
|
|
|
—
|
|
|
9,151
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2015-2
|
114
|
|
|
—
|
|
|
—
|
|
|
125
|
|
||||
Trust 2016-1
|
194
|
|
|
—
|
|
|
—
|
|
|
203
|
|
||||
Trust 2016-2
|
158
|
|
|
—
|
|
|
—
|
|
|
156
|
|
||||
Trust 2016-3
|
208
|
|
|
—
|
|
|
—
|
|
|
205
|
|
||||
Nonrecourse debt - legacy assets
|
50
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
|
Three months ended March 31, 2017
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
200
|
|
|
$
|
16
|
|
|
$
|
85
|
|
|
$
|
(19
|
)
|
|
$
|
282
|
|
|
$
|
1
|
|
|
$
|
283
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
125
|
|
|
—
|
|
|
19
|
|
|
144
|
|
|
—
|
|
|
144
|
|
|||||||
Total revenues
|
|
200
|
|
|
141
|
|
|
85
|
|
|
—
|
|
|
426
|
|
|
1
|
|
|
427
|
|
|||||||
Total expenses
|
|
158
|
|
|
117
|
|
|
72
|
|
|
—
|
|
|
347
|
|
|
25
|
|
|
372
|
|
|||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
120
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
5
|
|
|
139
|
|
|||||||
Interest expense
|
|
(136
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(149
|
)
|
|
(41
|
)
|
|
(190
|
)
|
|||||||
Other expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|||||||
Total other income (expenses), net
|
|
(16
|
)
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(37
|
)
|
|
(52
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
26
|
|
|
$
|
25
|
|
|
$
|
13
|
|
|
$
|
—
|
|
|
$
|
64
|
|
|
$
|
(61
|
)
|
|
$
|
3
|
|
Depreciation and amortization
|
|
$
|
5
|
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
3
|
|
|
$
|
14
|
|
Total assets
|
|
$
|
15,882
|
|
|
$
|
4,286
|
|
|
$
|
353
|
|
|
$
|
(2,726
|
)
|
|
$
|
17,795
|
|
|
$
|
950
|
|
|
$
|
18,745
|
|
|
|
Three months ended March 31, 2016
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
(10
|
)
|
|
$
|
15
|
|
|
$
|
101
|
|
|
$
|
(23
|
)
|
|
$
|
83
|
|
|
$
|
1
|
|
|
$
|
84
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
148
|
|
|
—
|
|
|
23
|
|
|
171
|
|
|
—
|
|
|
171
|
|
|||||||
Total revenues
|
|
(10
|
)
|
|
163
|
|
|
101
|
|
|
—
|
|
|
254
|
|
|
1
|
|
|
255
|
|
|||||||
Total expenses
|
|
175
|
|
|
125
|
|
|
90
|
|
|
—
|
|
|
390
|
|
|
22
|
|
|
412
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
85
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
3
|
|
|
103
|
|
|||||||
Interest expense
|
|
(107
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
(41
|
)
|
|
(161
|
)
|
|||||||
Total other income (expenses), net
|
|
(22
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
|
(38
|
)
|
|
(58
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
(207
|
)
|
|
$
|
40
|
|
|
$
|
11
|
|
|
$
|
—
|
|
|
$
|
(156
|
)
|
|
$
|
(59
|
)
|
|
$
|
(215
|
)
|
Depreciation and amortization
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
$
|
17
|
|
Total assets
|
|
$
|
12,760
|
|
|
$
|
4,304
|
|
|
$
|
307
|
|
|
$
|
(1,468
|
)
|
|
$
|
15,903
|
|
|
$
|
649
|
|
|
$
|
16,552
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
MARCH 31, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor (Subsidiaries)
|
|
Non-Guarantor (Subsidiaries)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
406
|
|
|
$
|
1
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
443
|
|
Restricted cash
|
—
|
|
|
155
|
|
|
—
|
|
|
149
|
|
|
—
|
|
|
304
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,141
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
3,173
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,580
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,580
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
10,196
|
|
|
—
|
|
|
653
|
|
|
—
|
|
|
10,849
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,475
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1,476
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
149
|
|
|
—
|
|
|
150
|
|
||||||
Property and equipment, net
|
—
|
|
|
114
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
136
|
|
||||||
Derivative financial instruments at fair value
|
—
|
|
|
82
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82
|
|
||||||
Other assets
|
—
|
|
|
440
|
|
|
326
|
|
|
771
|
|
|
(985
|
)
|
|
552
|
|
||||||
Investment in subsidiaries
|
1,809
|
|
|
650
|
|
|
—
|
|
|
—
|
|
|
(2,459
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,809
|
|
|
$
|
18,240
|
|
|
$
|
327
|
|
|
$
|
1,813
|
|
|
$
|
(3,444
|
)
|
|
$
|
18,745
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
1,944
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,944
|
|
Advance facilities, net
|
—
|
|
|
147
|
|
|
—
|
|
|
784
|
|
|
—
|
|
|
931
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
2,413
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,413
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,182
|
|
|
1
|
|
|
38
|
|
|
—
|
|
|
1,221
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,187
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
1,209
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
49
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49
|
|
||||||
Derivative financial instruments, at fair value
|
—
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
8,633
|
|
|
—
|
|
|
644
|
|
|
—
|
|
|
9,277
|
|
||||||
Payables to affiliates
|
122
|
|
|
862
|
|
|
—
|
|
|
1
|
|
|
(985
|
)
|
|
—
|
|
||||||
Total liabilities
|
122
|
|
|
16,431
|
|
|
1
|
|
|
1,489
|
|
|
(985
|
)
|
|
17,058
|
|
||||||
Total stockholders' equity
|
1,687
|
|
|
1,809
|
|
|
326
|
|
|
324
|
|
|
(2,459
|
)
|
|
1,687
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,809
|
|
|
$
|
18,240
|
|
|
$
|
327
|
|
|
$
|
1,813
|
|
|
$
|
(3,444
|
)
|
|
$
|
18,745
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
185
|
|
|
$
|
5
|
|
|
$
|
93
|
|
|
$
|
—
|
|
|
$
|
283
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
144
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
144
|
|
||||||
Total revenues
|
—
|
|
|
329
|
|
|
5
|
|
|
93
|
|
|
—
|
|
|
427
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
153
|
|
|
1
|
|
|
38
|
|
|
—
|
|
|
192
|
|
||||||
General and administrative
|
—
|
|
|
139
|
|
|
1
|
|
|
40
|
|
|
—
|
|
|
180
|
|
||||||
Total expenses
|
—
|
|
|
292
|
|
|
2
|
|
|
78
|
|
|
—
|
|
|
372
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
127
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
139
|
|
||||||
Interest expense
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(190
|
)
|
||||||
Other expense
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Gain (loss) from subsidiaries
|
2
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
2
|
|
|
(34
|
)
|
|
—
|
|
|
(3
|
)
|
|
(17
|
)
|
|
(52
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
2
|
|
|
3
|
|
|
3
|
|
|
12
|
|
|
(17
|
)
|
|
3
|
|
||||||
Less: Income tax expense
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss)
|
2
|
|
|
2
|
|
|
3
|
|
|
12
|
|
|
(17
|
)
|
|
2
|
|
||||||
Less: Net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
(17
|
)
|
|
$
|
2
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
3
|
|
|
$
|
12
|
|
|
$
|
(17
|
)
|
|
$
|
2
|
|
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain) loss from subsidiaries
|
(2
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
17
|
|
|
—
|
|
||||||
Share-based compensation
|
—
|
|
|
4
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
5
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(144
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(144
|
)
|
||||||
Reverse loan interest income
|
—
|
|
|
(118
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(118
|
)
|
||||||
Loss on liquidation of reverse loans
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Provision for servicing reserves
|
—
|
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||||
Mortgage loans originated and purchased, net of fees
|
—
|
|
|
(4,632
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,632
|
)
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(296
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(296
|
)
|
||||||
Repurchases of reverse loan assets out of Ginnie Mae securitizations, net of assignments to prior servicers
|
—
|
|
|
(808
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(808
|
)
|
||||||
Sales proceeds and loan payments proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
7,977
|
|
|
—
|
|
|
(2,578
|
)
|
|
—
|
|
|
5,399
|
|
||||||
Other loss
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Depreciation and amortization
|
—
|
|
|
10
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
14
|
|
||||||
Amortization of premiums
|
—
|
|
|
(2,567
|
)
|
|
—
|
|
|
2,579
|
|
|
—
|
|
|
12
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
25
|
|
||||||
Fair value changes in mortgage loans held for sale
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20
|
)
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights
|
—
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58
|
|
||||||
Fair value change in mortgage servicing rights financing liability
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables, net
|
—
|
|
|
148
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
148
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
1,036
|
|
|
—
|
|
|
64
|
|
|
—
|
|
|
1,100
|
|
||||||
Other assets
|
3
|
|
|
(67
|
)
|
|
(3
|
)
|
|
65
|
|
|
—
|
|
|
(2
|
)
|
||||||
Payables and accrued liabilities
|
—
|
|
|
(239
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
—
|
|
|
(250
|
)
|
||||||
Net cash attributable to operating activities
|
3
|
|
|
392
|
|
|
(1
|
)
|
|
137
|
|
|
—
|
|
|
531
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2017
(Continued)
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(13
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
4
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(4
|
)
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Transfers (to) from restricted cash, net
|
—
|
|
|
4
|
|
|
—
|
|
|
80
|
|
|
—
|
|
|
84
|
|
||||||
Debt financing costs
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Increase (decrease) warehouse facilities
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Increase (decrease) advance facilities
|
—
|
|
|
(39
|
)
|
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
(164
|
)
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(75
|
)
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(58
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58
|
)
|
||||||
Decrease in participating interest financing in reverse mortgage interests
|
—
|
|
|
(280
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(280
|
)
|
||||||
Repayment of nonrecourse debt–legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Net cash attributable to financing activities
|
(3
|
)
|
|
(432
|
)
|
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
(560
|
)
|
||||||
Net increase (decrease) in cash
|
—
|
|
|
(47
|
)
|
|
(1
|
)
|
|
2
|
|
|
—
|
|
|
(46
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
—
|
|
|
453
|
|
|
2
|
|
|
34
|
|
|
—
|
|
|
489
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
—
|
|
|
$
|
406
|
|
|
$
|
1
|
|
|
$
|
36
|
|
|
$
|
—
|
|
|
$
|
443
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries)
|
|
Non-Guarantor
(Subsidiaries)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
453
|
|
|
$
|
2
|
|
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
489
|
|
Restricted cash
|
—
|
|
|
159
|
|
|
—
|
|
|
229
|
|
|
—
|
|
|
388
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,142
|
|
|
—
|
|
|
24
|
|
|
—
|
|
|
3,166
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,749
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,749
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
10,316
|
|
|
—
|
|
|
717
|
|
|
—
|
|
|
11,033
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,787
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1,788
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
150
|
|
|
—
|
|
|
151
|
|
||||||
Property and equipment, net
|
—
|
|
|
113
|
|
|
—
|
|
|
23
|
|
|
—
|
|
|
136
|
|
||||||
Derivative financial instruments at fair value
|
—
|
|
|
133
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||||
Other assets
|
—
|
|
|
444
|
|
|
323
|
|
|
838
|
|
|
(1,045
|
)
|
|
560
|
|
||||||
Investment in subsidiaries
|
1,801
|
|
|
634
|
|
|
—
|
|
|
—
|
|
|
(2,435
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,801
|
|
|
$
|
18,931
|
|
|
$
|
325
|
|
|
$
|
2,016
|
|
|
$
|
(3,480
|
)
|
|
$
|
19,593
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes
|
$
|
—
|
|
|
$
|
1,990
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,990
|
|
Advance facilities, net
|
—
|
|
|
187
|
|
|
—
|
|
|
909
|
|
|
—
|
|
|
1,096
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
2,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,421
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,420
|
|
|
2
|
|
|
48
|
|
|
—
|
|
|
1,470
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,219
|
|
|
—
|
|
|
22
|
|
|
—
|
|
|
1,241
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
48
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||||
Derivative financial instruments, at fair value
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
8,907
|
|
|
—
|
|
|
724
|
|
|
—
|
|
|
9,631
|
|
||||||
Payables to affiliates
|
118
|
|
|
925
|
|
|
—
|
|
|
2
|
|
|
(1,045
|
)
|
|
—
|
|
||||||
Total liabilities
|
118
|
|
|
17,130
|
|
|
2
|
|
|
1,705
|
|
|
(1,045
|
)
|
|
17,910
|
|
||||||
Total stockholders' equity
|
1,683
|
|
|
1,801
|
|
|
323
|
|
|
311
|
|
|
(2,435
|
)
|
|
1,683
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,801
|
|
|
$
|
18,931
|
|
|
$
|
325
|
|
|
$
|
2,016
|
|
|
$
|
(3,480
|
)
|
|
$
|
19,593
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2016
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
(25
|
)
|
|
$
|
7
|
|
|
$
|
102
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
163
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
171
|
|
||||||
Total revenues
|
—
|
|
|
138
|
|
|
7
|
|
|
110
|
|
|
—
|
|
|
255
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
144
|
|
|
1
|
|
|
52
|
|
|
—
|
|
|
197
|
|
||||||
General and administrative
|
—
|
|
|
161
|
|
|
3
|
|
|
51
|
|
|
—
|
|
|
215
|
|
||||||
Total expenses
|
—
|
|
|
305
|
|
|
4
|
|
|
103
|
|
|
—
|
|
|
412
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
91
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
103
|
|
||||||
Interest expense
|
—
|
|
|
(142
|
)
|
|
—
|
|
|
(19
|
)
|
|
—
|
|
|
(161
|
)
|
||||||
Gain (loss) from subsidiaries
|
(132
|
)
|
|
3
|
|
|
—
|
|
|
—
|
|
|
129
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(132
|
)
|
|
(48
|
)
|
|
—
|
|
|
(7
|
)
|
|
129
|
|
|
(58
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
(132
|
)
|
|
(215
|
)
|
|
3
|
|
|
—
|
|
|
129
|
|
|
(215
|
)
|
||||||
Less: Income tax (benefit)
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
||||||
Net income (loss)
|
(132
|
)
|
|
(133
|
)
|
|
3
|
|
|
—
|
|
|
129
|
|
|
(133
|
)
|
||||||
Less: Net loss attributable to noncontrolling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
(132
|
)
|
|
$
|
(132
|
)
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
(132
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
|
$
|
(132
|
)
|
|
$
|
(132
|
)
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
129
|
|
|
$
|
(132
|
)
|
Reconciliation of net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Noncontrolling interest
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
(Gain)/loss from subsidiaries
|
|
132
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
(129
|
)
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
|
—
|
|
|
(162
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(171
|
)
|
||||||
Reverse loan interest income
|
|
—
|
|
|
(85
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(85
|
)
|
||||||
Provision for servicing reserves
|
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
|
—
|
|
|
286
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
286
|
|
||||||
Fair value changes in mortgage loans held for sale
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23
|
)
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
|
—
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
||||||
Amortization (accretion) of premiums (discounts)
|
|
—
|
|
|
13
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
17
|
|
||||||
Depreciation and amortization
|
|
—
|
|
|
11
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
17
|
|
||||||
Share-based compensation
|
|
—
|
|
|
5
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
7
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
|
—
|
|
|
(348
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(348
|
)
|
||||||
Repurchases of reverse loans assets out of Ginnie Mae securitizations, net of assignments to prior servicers
|
|
—
|
|
|
(485
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(485
|
)
|
||||||
Mortgage loans originated and purchased, net of fees
|
|
—
|
|
|
(4,007
|
)
|
|
—
|
|
|
(233
|
)
|
|
—
|
|
|
(4,240
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
|
—
|
|
|
3,994
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
4,300
|
|
||||||
Excess tax benefit (deficiency) from share based compensation
|
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables, net
|
|
—
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160
|
|
||||||
Reverse mortgage interests, net
|
|
—
|
|
|
548
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
547
|
|
||||||
Other assets
|
|
57
|
|
|
(200
|
)
|
|
(5
|
)
|
|
100
|
|
|
—
|
|
|
(48
|
)
|
||||||
Payables and accrued liabilities
|
|
—
|
|
|
(153
|
)
|
|
2
|
|
|
(9
|
)
|
|
—
|
|
|
(160
|
)
|
||||||
Net cash attributable to operating activities
|
|
57
|
|
|
(554
|
)
|
|
—
|
|
|
166
|
|
|
—
|
|
|
(331
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDEDMARCH 31, 2016
(Continued)
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
|
|
Guarantor
(Subsidiaries) |
|
Non-Guarantor
(Subsidiaries) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(13
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Purchase of reverse mortgage interests
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
|
—
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(51
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase (decrease) in warehouse facilities
|
|
—
|
|
|
578
|
|
|
—
|
|
|
(55
|
)
|
|
—
|
|
|
523
|
|
||||||
Proceeds from HECM securitizations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
282
|
|
|
—
|
|
|
282
|
|
||||||
Repayment of HECM securitizations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(286
|
)
|
|
—
|
|
|
(286
|
)
|
||||||
Increase in participating interest financing in reverse mortgage interests
|
|
—
|
|
|
(120
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
||||||
Decrease in advance facilities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(79
|
)
|
|
—
|
|
|
(79
|
)
|
||||||
Repayment of excess spread financing
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Repurchase of unsecured senior notes
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Repurchase of common stock
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55
|
)
|
||||||
Transfers (to) from restricted cash, net
|
|
—
|
|
|
27
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
25
|
|
||||||
Excess tax (deficiency) benefit from share based compensation
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Surrender of shares relating to stock vesting
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Debt financing costs
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
||||||
Net cash attributable to financing activities
|
|
(57
|
)
|
|
430
|
|
|
—
|
|
|
(143
|
)
|
|
—
|
|
|
230
|
|
||||||
Net increase (decrease) in cash
|
|
—
|
|
|
(172
|
)
|
|
—
|
|
|
20
|
|
|
—
|
|
|
(152
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
|
—
|
|
|
597
|
|
|
1
|
|
|
15
|
|
|
|
|
613
|
|
|||||||
Cash and cash equivalents at end of period
|
|
$
|
—
|
|
|
$
|
425
|
|
|
$
|
1
|
|
|
$
|
35
|
|
|
$
|
—
|
|
|
$
|
461
|
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to refinance existing loans, and maintain our originations volume;
|
•
|
our ability to recapture voluntary prepayments related to our existing servicing portfolio;
|
•
|
our shift in the mix of our servicing portfolio to subservicing;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
our ability to obtain sufficient capital to operate our business;
|
•
|
changes in prevailing interest rates;
|
•
|
our ability to finance and recover costs of our reverse servicing operations;
|
•
|
changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and
|
•
|
Xome's ability to compete in highly competitive markets;
|
•
|
increased legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs; and
|
•
|
loss of our licenses.
|
•
|
Achieved 5.6 basis points of adjusted Servicing profitability
|
•
|
Boarded over $
18,000
UPB including
$12,000
subservicing UPB
|
•
|
Achieved recapture rate of
32%
|
•
|
Improved delinquency rate, measured as loans that are 60 or more days behind in payments, to
4%
from 5% at the start of the year
|
•
|
Provided over
15,574
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership
|
•
|
Funded
22,707
loans in 2017 totaling
$4,632
, which included
$2,691
related to retaining customers from our servicing portfolio
|
•
|
Sold
3,414
properties and completed
119,750
Xome service orders
|
Table 1. Consolidated Operations
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues - operational
|
$
|
465
|
|
|
$
|
517
|
|
Revenues - MTM
|
(38
|
)
|
|
(262
|
)
|
||
Total revenues
|
427
|
|
|
255
|
|
||
Expenses
|
372
|
|
|
412
|
|
||
Other income (expenses), net
|
(52
|
)
|
|
(58
|
)
|
||
Income (loss) before income tax
|
3
|
|
|
(215
|
)
|
||
Less: Income tax expense (benefit)
|
1
|
|
|
(82
|
)
|
||
Net Income
|
2
|
|
|
(133
|
)
|
||
Less: Income (loss) attributable to noncontrolling interests
|
—
|
|
|
(1
|
)
|
||
Net income (loss) attributable to Nationstar
|
$
|
2
|
|
|
$
|
(132
|
)
|
Effective tax rate
|
35
|
%
|
|
38
|
%
|
||
|
|
|
|
||||
Income (loss) before income tax by operating and non-operating segments:
|
|
|
|
||||
Servicing
|
$
|
26
|
|
|
$
|
(207
|
)
|
Originations
|
25
|
|
|
40
|
|
||
Xome
|
13
|
|
|
11
|
|
||
Corporate and other
|
(61
|
)
|
|
(59
|
)
|
||
Consolidated income (loss) before income tax
|
$
|
3
|
|
|
$
|
(215
|
)
|
Table 2. Servicing Operations
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues
|
|
|
|
||||
Operational
|
$
|
299
|
|
|
$
|
317
|
|
Amortization
|
(61
|
)
|
|
(65
|
)
|
||
Other mark-to-market
|
(38
|
)
|
|
(262
|
)
|
||
Total revenues
|
200
|
|
|
(10
|
)
|
||
Expenses
|
158
|
|
|
175
|
|
||
Total other income (expenses), net
|
(16
|
)
|
|
(22
|
)
|
||
Income (loss) before income taxes
|
$
|
26
|
|
|
$
|
(207
|
)
|
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Balance - beginning of period
|
$
|
434,295
|
|
|
$
|
367,800
|
|
Additions:
|
|
|
|
||||
Originations
|
4,898
|
|
|
4,311
|
|
||
Acquisitions
|
13,313
|
|
|
448
|
|
||
Deductions:
|
|
|
|
||||
Dispositions
|
(1,681
|
)
|
|
—
|
|
||
Principal reductions and other
|
(3,632
|
)
|
|
(2,703
|
)
|
||
Voluntary reductions
(1)
|
(13,091
|
)
|
|
(10,626
|
)
|
||
Involuntary reductions
(2)
|
(2,162
|
)
|
|
(2,357
|
)
|
||
Net changes in loans serviced by others
|
(115
|
)
|
|
(101
|
)
|
||
Balance - end of period
|
$
|
431,825
|
|
|
$
|
356,772
|
|
Table 4. Servicing - Revenues
|
Three months ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
||||
Base servicing fees
|
$
|
234
|
|
|
20
|
|
$
|
263
|
|
|
27
|
Modification fees
|
15
|
|
|
1
|
|
15
|
|
|
2
|
||
Incentive fees
|
7
|
|
|
1
|
|
9
|
|
|
1
|
||
Late payment fees
|
24
|
|
|
2
|
|
19
|
|
|
2
|
||
Other ancillary revenues
|
40
|
|
|
3
|
|
51
|
|
|
5
|
||
Other revenues
|
6
|
|
|
1
|
|
9
|
|
|
1
|
||
Total forward MSR operational revenue
|
326
|
|
|
28
|
|
366
|
|
|
38
|
||
Subservicing fees
(2)
|
21
|
|
|
2
|
|
7
|
|
|
1
|
||
Reverse servicing fees
|
14
|
|
|
1
|
|
18
|
|
|
2
|
||
Total servicing fee revenue
|
361
|
|
|
31
|
|
391
|
|
|
41
|
||
Amortization
|
|
|
|
|
|
|
|
||||
Forward MSR amortization
|
(102
|
)
|
|
(9)
|
|
(112
|
)
|
|
(11)
|
||
Excess spread accretion
|
42
|
|
|
4
|
|
47
|
|
|
5
|
||
Reverse MSR amortization
|
(1
|
)
|
|
—
|
|
—
|
|
|
—
|
||
Total amortization
|
(61
|
)
|
|
(5)
|
|
(65
|
)
|
|
(6)
|
||
MSR financing liability costs
|
(20
|
)
|
|
(2)
|
|
(27
|
)
|
|
(3)
|
||
Excess spread costs - principal
|
(42
|
)
|
|
(4)
|
|
(47
|
)
|
|
(5)
|
||
Total operational revenue
|
238
|
|
|
20
|
|
252
|
|
|
27
|
||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
||||
MSR MTM
(3)
|
(12
|
)
|
|
(1)
|
|
(265
|
)
|
|
(27)
|
||
Excess spread / financing MTM
|
(26
|
)
|
|
(2)
|
|
3
|
|
|
—
|
||
Total MTM adjustments
|
(38
|
)
|
|
(3)
|
|
(262
|
)
|
|
(27)
|
||
Total revenues - Servicing
|
$
|
200
|
|
|
17
|
|
$
|
(10
|
)
|
|
—
|
Table 5. Servicing Portfolio - Unpaid Principal Balances
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Average UPB:
|
|
|
|
||||
Forward MSRs - fair value
|
$
|
308,715
|
|
|
$
|
339,168
|
|
Subservicing and other
(1)
|
123,226
|
|
|
23,118
|
|
||
Reverse MSRs - amortized costs
|
38,409
|
|
|
29,348
|
|
||
Total average UPB
|
$
|
470,350
|
|
|
$
|
391,634
|
|
|
|
|
|
||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Ending UPB:
|
|
|
|
||||
Forward MSRs - fair value
|
|
|
|
||||
Agency
|
$
|
222,110
|
|
|
$
|
237,067
|
|
Non-agency
|
81,245
|
|
|
95,593
|
|
||
Total MSRs - fair value
|
303,355
|
|
|
332,660
|
|
||
|
|
|
|
||||
Subservicing and other
(1)
|
|
|
|
||||
Agency
|
120,173
|
|
|
18,729
|
|
||
Non-agency
|
8,297
|
|
|
5,383
|
|
||
Total subservicing and other
|
128,470
|
|
|
24,112
|
|
||
|
|
|
|
||||
Reverse loans - amortized cost
|
|
|
|
||||
MSR
|
10,118
|
|
|
11,268
|
|
||
MSL
|
16,758
|
|
|
10,234
|
|
||
Securitized loans
|
10,824
|
|
|
7,539
|
|
||
Total reverse portfolio serviced
|
37,700
|
|
|
29,041
|
|
||
Total ending UPB
|
$
|
469,525
|
|
|
$
|
385,813
|
|
Table 6. Forward Loan Modifications and Workout Units
|
Three months ended March 31,
|
||||
|
2017
|
|
2016
|
||
Modifications and workout units:
|
|
|
|
||
Home Affordable Modification Program ("HAMP") modifications
|
4,332
|
|
|
3,907
|
|
Non-HAMP modifications
|
5,815
|
|
|
6,197
|
|
Workouts
|
5,427
|
|
|
4,612
|
|
Total modification and workout units
|
15,574
|
|
|
14,716
|
|
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio
(1)
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Average loan count
|
2,607,840
|
|
|
2,185,414
|
|
||
Average loan amount
(2)
|
$
|
165,745
|
|
|
$
|
161,556
|
|
Average coupon - credit sensitive
(3)
|
4.7
|
%
|
|
4.7
|
%
|
||
Average coupon - interest sensitive
(3)
|
4.2
|
%
|
|
4.1
|
%
|
||
60+ delinquent (% of loans)
(4)
|
4.1
|
%
|
|
6.5
|
%
|
||
90+ delinquent (% of loans)
(4)
|
3.7
|
%
|
|
6.1
|
%
|
||
120+ delinquent (% of loans)
(4)
|
3.5
|
%
|
|
5.7
|
%
|
||
Total prepayment speed (12 month constant pre-payment rate)
|
13.6
|
%
|
|
13.5
|
%
|
Table 8. Servicer Ratings
|
Fitch
|
|
Moody's
|
|
S&P
|
|
|
|
|
|
|
Rating date
|
October 2016
|
|
January 2016
|
|
October 2016
|
|
|
|
|
|
|
Residential
|
RPS3+
|
|
Not Rated
|
|
Above Average
|
Master Servicer
|
RMS2
|
|
SQ3+
|
|
Above Average
|
Special Servicer
|
RSS3+
|
|
Not Rated
|
|
Above Average
|
Subprime Servicer
|
RPS3+
|
|
Not Rated
|
|
Above Average
|
|
|
|
|
|
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
|||||
Moody's Rating Scale of 1 (Strong Ability/Stability) to 5 (Weak Ability/Stability)
|
Table 9. Servicing - Expenses
|
Three months ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
||||
Salaries, wages and benefits
|
$
|
69
|
|
|
6
|
|
$
|
64
|
|
|
6
|
General and administrative
|
|
|
|
|
|
|
|
||||
Servicing support fees
|
36
|
|
|
3
|
|
39
|
|
|
4
|
||
Corporate and other general and administrative expenses
|
33
|
|
|
3
|
|
38
|
|
|
4
|
||
Foreclosure and other liquidation related expenses
|
15
|
|
|
1
|
|
28
|
|
|
3
|
||
Depreciation and amortization
|
5
|
|
|
—
|
|
6
|
|
|
1
|
||
Total general and administrative expenses
|
89
|
|
|
7
|
|
111
|
|
|
12
|
||
Total expenses - Servicing
|
$
|
158
|
|
|
13
|
|
$
|
175
|
|
|
18
|
Table 10. Servicing - Other Income (Expenses), Net
|
Three months ended March 31,
|
||||||||||
|
2017
|
|
2016
|
||||||||
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
||||
Reverse interest income
|
$
|
118
|
|
|
10
|
|
$
|
85
|
|
|
9
|
Other interest income
|
2
|
|
|
—
|
|
—
|
|
|
—
|
||
Interest income
|
120
|
|
|
10
|
|
85
|
|
|
9
|
||
|
|
|
|
|
|
|
|
||||
Reverse interest expense
|
(96
|
)
|
|
(8)
|
|
(67
|
)
|
|
(7)
|
||
Advance interest expense
|
(9
|
)
|
|
(1)
|
|
(16
|
)
|
|
(2)
|
||
Other interest expense
|
(31
|
)
|
|
(3)
|
|
(24
|
)
|
|
(2)
|
||
Interest expense
|
(136
|
)
|
|
(12)
|
|
(107
|
)
|
|
(11)
|
||
Total other income (expenses) - Servicing
|
$
|
(16
|
)
|
|
(2)
|
|
$
|
(22
|
)
|
|
(2)
|
|
|
|
|
|
|
|
|
||||
Weighted average cost - advance facilities
|
3.0
|
%
|
|
|
|
3.0
|
%
|
|
|
||
Weighted average cost - excess spread financing
|
8.9
|
%
|
|
|
|
9.0
|
%
|
|
|
Table 11. Serviced Portfolios and Related Liabilities
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
||||||||||
Forward MSRs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
222,110
|
|
|
$
|
2,421
|
|
|
4.4
|
%
|
|
$
|
227,062
|
|
|
$
|
2,394
|
|
|
4.4
|
%
|
Non-agency
|
81,245
|
|
|
747
|
|
|
4.6
|
%
|
|
85,014
|
|
|
766
|
|
|
4.5
|
%
|
||||
Total MSRs - fair value
|
303,355
|
|
|
3,168
|
|
|
4.5
|
%
|
|
312,076
|
|
|
3,160
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
120,173
|
|
|
N/A
|
|
|
N/A
|
|
|
110,848
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
8,297
|
|
|
N/A
|
|
|
N/A
|
|
|
11,371
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
128,470
|
|
|
N/A
|
|
|
N/A
|
|
|
122,219
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
10,118
|
|
|
5
|
|
|
N/A
|
|
|
10,351
|
|
|
6
|
|
|
N/A
|
|
||||
MSL
|
16,758
|
|
|
(49
|
)
|
|
N/A
|
|
|
17,574
|
|
|
(48
|
)
|
|
N/A
|
|
||||
Securitized loans
|
10,824
|
|
|
10,849
|
|
|
N/A
|
|
|
11,015
|
|
|
11,033
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
37,700
|
|
|
10,805
|
|
|
N/A
|
|
|
38,940
|
|
|
10,991
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
469,525
|
|
|
$
|
13,973
|
|
|
N/A
|
|
|
$
|
473,235
|
|
|
$
|
14,151
|
|
|
N/A
|
|
Table 12. Fair Value MSR Valuation
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
||||||||||
MSRs - Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Credit sensitive
|
$
|
190,019
|
|
|
$
|
1,819
|
|
|
96
|
|
|
$
|
198,935
|
|
|
$
|
1,818
|
|
|
91
|
|
Interest sensitive - agency
|
113,336
|
|
|
1,349
|
|
|
119
|
|
|
113,141
|
|
|
1,342
|
|
|
119
|
|
||||
Total MSRs - fair value
|
$
|
303,355
|
|
|
$
|
3,168
|
|
|
104
|
|
|
$
|
312,076
|
|
|
$
|
3,160
|
|
|
101
|
|
Table 13. MSRs - Fair Value, Roll Forward
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Fair value - beginning of period
|
$
|
3,160
|
|
|
$
|
3,358
|
|
Additions:
|
|
|
|
||||
Servicing retained from mortgage loans sold
|
59
|
|
|
40
|
|
||
Purchases of servicing rights
|
5
|
|
|
—
|
|
||
Dispositions:
|
|
|
|
||||
Sales of servicing rights
(1)
|
—
|
|
|
(16
|
)
|
||
Changes in fair value:
|
|
|
|
||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
||||
Credit sensitive
|
37
|
|
|
(66
|
)
|
||
Interest sensitive
|
(23
|
)
|
|
(171
|
)
|
||
Other changes in fair value:
|
|
|
|
||||
Scheduled principal payments
|
(22
|
)
|
|
(21
|
)
|
||
Disposition of negative MSRs and other
(2)
|
33
|
|
|
46
|
|
||
Prepayments
|
|
|
|
||||
Voluntary prepayments
|
|
|
|
||||
Credit sensitive
|
(44
|
)
|
|
(43
|
)
|
||
Interest sensitive
|
(23
|
)
|
|
(31
|
)
|
||
Involuntary prepayments
|
|
|
|
||||
Credit sensitive
|
(9
|
)
|
|
(8
|
)
|
||
Interest sensitive
|
(5
|
)
|
|
—
|
|
||
Fair value - end of period
|
$
|
3,168
|
|
|
$
|
3,088
|
|
Table 14. MSRs - Fair Value
|
March 31,
|
||||
|
2017
|
|
2016
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
11.4
|
%
|
|
11.6
|
%
|
Weighted average prepayment speeds
|
15.4
|
%
|
|
16.4
|
%
|
Weighted average life of loans
|
6.0 years
|
|
|
5.8 years
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
10.7
|
%
|
|
14.1
|
%
|
Weighted average life of loans
|
6.8 years
|
|
|
5.6 years
|
|
Table 15. Excess Spread Financing
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Fair value - beginning of period
|
$
|
1,214
|
|
|
$
|
1,232
|
|
Additions:
|
|
|
|
||||
New financings
|
—
|
|
|
—
|
|
||
Deductions:
|
|
|
|
||||
Settlements
|
(58
|
)
|
|
(47
|
)
|
||
Fair value changes:
|
|
|
|
||||
Credit Sensitive
|
20
|
|
|
(9
|
)
|
||
Interest Sensitive
|
5
|
|
|
(15
|
)
|
||
Fair value - end of period
|
$
|
1,181
|
|
|
$
|
1,161
|
|
|
|
|
|
||||
|
March 31,
|
||||||
Assumptions
|
2017
|
|
2016
|
||||
Weighted average prepayment speeds
|
13.9
|
%
|
|
15.5
|
%
|
||
Weighted average life of loans
|
6.2 years
|
|
|
5.8 years
|
|
||
Discount rate
|
10.8
|
%
|
|
11.0
|
%
|
||
|
|
|
|
||||
Credit Sensitive
|
|
|
|
||||
Mortgage prepayment speeds
|
14.6
|
%
|
|
15.9
|
%
|
||
Average life of mortgage loans
|
6.1 years
|
|
|
5.8 years
|
|
||
Discount rate
|
11.1
|
%
|
|
11.4
|
%
|
||
|
|
|
|
||||
Interest Sensitive
|
|
|
|
||||
Mortgage prepayment speeds
|
10.9
|
%
|
|
13.5
|
%
|
||
Average life of mortgage loans
|
6.5 years
|
|
|
5.6 years
|
|
||
Discount rate
|
9.0
|
%
|
|
8.9
|
%
|
Table 16. MSRs Financing Liability - Rollforward
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Fair value - beginning of period
|
$
|
27
|
|
|
$
|
69
|
|
Mark-to-Market Adjustments
(1)
|
|
|
|
||||
Changes in valuation inputs or assumptions used in the valuation model
|
1
|
|
|
15
|
|
||
Other changes in fair value
|
—
|
|
|
(2
|
)
|
||
Fair value - end of period
|
$
|
28
|
|
|
$
|
82
|
|
|
|
|
|
||||
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Weighted Average Assumptions
|
|
|
|
||||
Advance financing rates
|
3.2
|
%
|
|
3.1
|
%
|
||
Annual advance recovery rates
|
22.9
|
%
|
|
20.5
|
%
|
Table 17. Leveraged Portfolio Characteristics
|
March 31,
|
||||||
|
2017
|
|
2016
|
||||
Owned forward servicing portfolio - unencumbered
|
$
|
75,527
|
|
|
$
|
86,123
|
|
Owned forward servicing portfolio - encumbered
|
227,828
|
|
|
246,537
|
|
||
Subserviced forward servicing portfolio and other
|
128,470
|
|
|
24,112
|
|
||
Total unpaid principal balance
|
$
|
431,825
|
|
|
$
|
356,772
|
|
Table 18. Reverse - Mortgage Portfolio Characteristics
|
March 31, 2017
|
|
December 31, 2016
|
||||
Loan count
|
229,274
|
|
|
233,207
|
|
||
Ending unpaid principal balance
|
$
|
37,700
|
|
|
$
|
38,940
|
|
Average loan amount
(1)
|
$
|
164,432
|
|
|
$
|
166,975
|
|
Average coupon
|
3.5
|
%
|
|
3.4
|
%
|
||
Average borrower age
|
79
|
|
|
78
|
|
Table 20. Originations - Revenues
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Service related, net - Originations
|
$
|
16
|
|
|
$
|
15
|
|
Net gain on mortgage loans held for sale
|
|
|
|
||||
Gain on loans originated and sold
|
98
|
|
|
94
|
|
||
Fair value adjustment on loans held for sale
|
20
|
|
|
23
|
|
||
Mark-to-market on locks and commitments
(1)
|
(12
|
)
|
|
17
|
|
||
Mark-to-market on derivative/hedges
|
(40
|
)
|
|
(23
|
)
|
||
Capitalized servicing rights
|
57
|
|
|
37
|
|
||
Release of repurchase reserves
|
2
|
|
|
—
|
|
||
Total net gain on mortgage loans held for sale
|
125
|
|
|
148
|
|
||
Total revenues - Originations
|
$
|
141
|
|
|
$
|
163
|
|
|
|
|
|
||||
Key Metrics
|
|
|
|
||||
Consumer direct lock pull through adjusted volume ($)
(2)
|
$
|
2,691
|
|
|
$
|
2,897
|
|
Other locked pull through adjusted volume ($)
|
1,114
|
|
|
1,616
|
|
||
Total pull through adjusted volume
|
$
|
3,805
|
|
|
$
|
4,513
|
|
Funded volume
|
4,632
|
|
|
4,240
|
|
||
Funded HARP volume
|
1,223
|
|
|
1,227
|
|
||
Recapture percentage
|
32.1
|
%
|
|
31.0
|
%
|
||
Purchase percentage of funded volume
|
20.2
|
%
|
|
25.0
|
%
|
||
Value of capitalized servicing
|
115 bps
|
|
|
96 bps
|
|
Table 21. Originations - Expenses
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Salaries, wages and benefits
|
$
|
70
|
|
|
$
|
71
|
|
General and administrative
|
|
|
|
||||
Loan origination expenses
|
20
|
|
|
17
|
|
||
Corporate and other general and administrative expenses
|
12
|
|
|
23
|
|
||
Marketing and professional service fee
|
13
|
|
|
11
|
|
||
Depreciation and amortization
|
2
|
|
|
3
|
|
||
Total general and administrative
|
47
|
|
|
54
|
|
||
Total expenses - Originations
|
$
|
117
|
|
|
$
|
125
|
|
Table 22. Originations - Other Income (Expenses), Net
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Interest income
|
$
|
14
|
|
|
$
|
15
|
|
Interest expense
|
(13
|
)
|
|
(13
|
)
|
||
Other income, net - Originations
|
$
|
1
|
|
|
$
|
2
|
|
|
|
|
|
||||
Weighted average note rate - mortgage loans held for sale
|
4.1
|
%
|
|
4.1
|
%
|
||
Weighted average cost of funds (excluding facility fees)
|
3.3
|
%
|
|
2.9
|
%
|
Table 23. Repurchase Reserves
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Repurchase reserves - beginning of period
|
$
|
18
|
|
|
$
|
26
|
|
Provisions, net of release
|
(2
|
)
|
|
1
|
|
||
Charge-offs
|
(1
|
)
|
|
(1
|
)
|
||
Repurchase reserves - end of period
|
$
|
15
|
|
|
$
|
26
|
|
Table 24. Xome - Operations
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues
|
$
|
85
|
|
|
$
|
101
|
|
Expenses
|
72
|
|
|
90
|
|
||
Income before income tax expense
|
$
|
13
|
|
|
$
|
11
|
|
Income before taxes margin - Xome
|
15.3
|
%
|
|
10.9
|
%
|
Table 25. Xome - Revenues
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Exchange
|
$
|
31
|
|
|
$
|
36
|
|
Services
|
47
|
|
|
57
|
|
||
SaaS
|
7
|
|
|
8
|
|
||
Total revenues - Xome
|
$
|
85
|
|
|
$
|
101
|
|
|
|
|
|
||||
Key Metrics
|
|
|
|
||||
Property listings sold
|
3,414
|
|
|
4,165
|
|
||
REO listings at period end
|
4,382
|
|
|
7,892
|
|
||
Xome services completed orders
|
119,750
|
|
|
161,339
|
|
||
Percentage of revenue earned from third party customers
|
39.4
|
%
|
|
36.0
|
%
|
Table 26. Xome - Expenses
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Salaries, wages and benefits
|
$
|
37
|
|
|
$
|
43
|
|
General and administrative
|
|
|
|
||||
Operational expenses
|
31
|
|
|
41
|
|
||
Depreciation and amortization
|
4
|
|
|
6
|
|
||
Total general and administrative
|
35
|
|
|
47
|
|
||
Total expenses - Xome
|
$
|
72
|
|
|
$
|
90
|
|
Table 27. Corporate and Other - Operations
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Revenues
|
$
|
1
|
|
|
$
|
1
|
|
Expenses
|
25
|
|
|
22
|
|
||
Other income (expenses), net
|
(37
|
)
|
|
(38
|
)
|
||
Total loss before income tax benefit - Corporate and Other
|
$
|
(61
|
)
|
|
$
|
(59
|
)
|
Table 28. Legacy Portfolio
|
March 31, 2017
|
|
December 31, 2016
|
||||
Performing - UPB
|
$
|
169
|
|
|
$
|
167
|
|
Nonperforming (90+ delinquency) - UPB
|
40
|
|
|
49
|
|
||
REO - estimated fair value
|
2
|
|
|
3
|
|
||
Total legacy portfolio
|
$
|
211
|
|
|
$
|
219
|
|
Table 29. Corporate and Other - Expenses
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Salaries, wages and benefits
|
$
|
14
|
|
|
$
|
8
|
|
General and administrative
|
|
|
|
||||
Operational expenses
|
8
|
|
|
12
|
|
||
Depreciation and amortization
|
3
|
|
|
2
|
|
||
Total general and administrative
|
11
|
|
|
14
|
|
||
Total expenses - Corporate and Other
|
$
|
25
|
|
|
$
|
22
|
|
Table 30. Corporate and Other - Other Income (Expenses), Net
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Interest income, legacy portfolio
|
$
|
5
|
|
|
$
|
3
|
|
Interest expense, legacy portfolio
|
(2
|
)
|
|
(2
|
)
|
||
Interest expense on unsecured senior notes
|
(37
|
)
|
|
(39
|
)
|
||
Other interest, net
|
(2
|
)
|
|
—
|
|
||
Total interest expense
|
(36
|
)
|
|
(38
|
)
|
||
Other income (expense)
|
(1
|
)
|
|
—
|
|
||
Other income (expenses), net - Corporate and Other
|
$
|
(37
|
)
|
|
$
|
(38
|
)
|
|
|
|
|
||||
Weighted average cost - unsecured senior notes
|
7.3
|
%
|
|
7.3
|
%
|
Table 31. Assets
|
March 31, 2017
|
|
December 31, 2016
|
|
% Change
|
|||||
Cash and cash equivalents
|
$
|
443
|
|
|
$
|
489
|
|
|
(9.4
|
)%
|
Mortgage servicing rights
|
3,173
|
|
|
3,166
|
|
|
0.2
|
%
|
||
Advances and other receivables, net
|
1,580
|
|
|
1,749
|
|
|
(9.7
|
)%
|
||
Reverse mortgage interests, net
|
10,849
|
|
|
11,033
|
|
|
(1.7
|
)%
|
||
Mortgage loans held for sale
|
1,476
|
|
|
1,788
|
|
|
(17.4
|
)%
|
||
Other
|
1,224
|
|
|
1,368
|
|
|
(10.5
|
)%
|
||
Total assets
|
$
|
18,745
|
|
|
$
|
19,593
|
|
|
(4.3
|
)%
|
Table 32. Liabilities and Stockholders' Equity
|
March 31, 2017
|
|
December 31, 2016
|
|
% Change
|
|||||
Unsecured senior notes, net
|
$
|
1,944
|
|
|
$
|
1,990
|
|
|
(2.3
|
)%
|
Advance facilities, net
|
931
|
|
|
1,096
|
|
|
(15.1
|
)%
|
||
Warehouse facilities, net
|
2,413
|
|
|
2,421
|
|
|
(0.3
|
)%
|
||
MSR related liabilities - nonrecourse at fair value
|
1,209
|
|
|
1,241
|
|
|
(2.6
|
)%
|
||
Other nonrecourse debt, net
|
9,277
|
|
|
9,631
|
|
|
(3.7
|
)%
|
||
Other liabilities
|
1,284
|
|
|
1,531
|
|
|
(16.1
|
)%
|
||
Total liabilities
|
17,058
|
|
|
17,910
|
|
|
(4.8
|
)%
|
||
Total stockholders' equity attributable to Nationstar
|
1,681
|
|
|
1,677
|
|
|
0.2
|
%
|
||
Noncontrolling interest
|
6
|
|
|
6
|
|
|
—
|
%
|
||
Total liabilities and stockholders' equity
|
$
|
18,745
|
|
|
$
|
19,593
|
|
|
(4.3
|
)%
|
Table 33. Operating Cash Flow
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Originations net sales activities
|
$
|
471
|
|
|
$
|
(288
|
)
|
Cash provided by operating profits and changes in working capital and other assets
|
60
|
|
|
(43
|
)
|
||
Net cash attributable to operating activities
|
$
|
531
|
|
|
$
|
(331
|
)
|
Table 34. Investing Cash Flows
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Purchase of reverse mortgage loans
|
$
|
—
|
|
|
$
|
(55
|
)
|
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(4
|
)
|
|
(2
|
)
|
||
Proceeds on sale of forward mortgage service rights
|
—
|
|
|
19
|
|
||
All other
|
(13
|
)
|
|
(13
|
)
|
||
Net cash attributable to investing activities
|
$
|
(17
|
)
|
|
$
|
(51
|
)
|
Table 35. Financing Cash Flow
|
Three months ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
Advance facilities
|
$
|
(164
|
)
|
|
$
|
(79
|
)
|
Warehouse facilities
|
(9
|
)
|
|
523
|
|
||
Payment of senior unsecured notes and nonrecourse debt
|
(55
|
)
|
|
(8
|
)
|
||
Excess spread and MSR liability financing
|
(58
|
)
|
|
(47
|
)
|
||
Decrease in participating interest financing in reverse mortgage interests
|
(280
|
)
|
|
(120
|
)
|
||
HECM securitizations
|
(75
|
)
|
|
(4
|
)
|
||
Repurchase of common stock
|
—
|
|
|
(55
|
)
|
||
Restricted cash activity
|
84
|
|
|
25
|
|
||
All other
|
(3
|
)
|
|
(5
|
)
|
||
Net cash attributable to financing activities
|
$
|
(560
|
)
|
|
$
|
230
|
|
▪
|
Base of $2.5 plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets.
|
▪
|
Tangible Net Worth/Total Asset greater than 6%.
|
▪
|
3.5 basis points of total Agency servicing (Fannie Mae, Freddie Mac, Ginnie Mae) plus,
|
▪
|
Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB.
|
▪
|
Allowable assets for liquidity may including: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines.
|
Table 36. Debt
|
March 31, 2017
|
|
December 31, 2016
|
||||
Advance facilities, net
|
$
|
931
|
|
|
$
|
1,096
|
|
Warehouse facilities, net
|
2,413
|
|
|
2,421
|
|
||
Unsecured senior notes, net
|
1,944
|
|
|
1,990
|
|
Year Ending December 31,
|
|
Amount
|
||
2017
|
|
$
|
—
|
|
2018
|
|
413
|
|
|
2019
|
|
345
|
|
|
2020
|
|
400
|
|
|
2021
|
|
595
|
|
|
Thereafter
|
|
206
|
|
|
Unsecured senior notes
|
|
1,959
|
|
|
Unamortized debt issuance costs
|
|
(15
|
)
|
|
Unsecured senior notes, net
|
|
$
|
1,944
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
10.1**
|
Offer Letter and Acceptance, dated as of March 20, 2017, by and between Nationstar Mortgage LLC and Amar Patel
|
|
|
|
|
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.
|
|
|
|
May 5, 2017
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
May 5, 2017
|
|
/s/ Amar R. Patel
|
Date
|
|
Amar R. Patel
Chief Financial Officer
(Principal Financial Officer)
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
10.1**
|
Offer Letter and Acceptance, dated as of March 20, 2017, by and between Nationstar Mortgage LLC and Amar Patel
|
|
|
|
|
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
|
Annual Base Salary:
|
You will be paid a bi-weekly salary of $14,423.07 which is equivalent to $375,000 on an annualized basis.
|
Bonus Opportunity:
|
You will be eligible to participate in the Executive Management Incentive Plan (EMIP). Your maximum annual bonus opportunity will be 400% of your annual base salary or $1.5M. Your target bonus will be 60% of your maximum bonus opportunity or $900,000. Your bonus will be based on achieving Company, business unit and individual performance goals established by your management. In addition, you must be actively employed by Nationstar on the day the bonus is paid to receive an award.
|
Long Term Incentive Opportunity:
|
Contingent upon continued employment, you will be eligible for an annual equity award comparable to the awards granted to similarly situated executives. The grants are usually made in March and typically vest equally over three years. All awards must be approved by the Compensation Committee of the Board of Directors.
|
Sign-On Equity:
|
You will receive a one-time sign-on equity award of Nationstar Mortgage Holdings Inc. valued at $500,000. The award will be granted on the first day of the month following your start date and will vest equally over three years. The award is subject to the approval of the Compensation Committee of the Board of Directors.
|
Non-solicit:
|
You agree that during the period of your employment and for the twelve (12) month period immediately following the date of your termination of employment with Nationstar for any reason, you shall not, directly or indirectly, solicit or induce any officer, director, employee, agent or consultant of Nationstar or any of their successors, assigns, subsidiaries or affiliates to terminate his, her or its employment or other relationship with Nationstar or any of their successors, assigns, subsidiaries or affiliates, or otherwise encourage any such person or entity to leave or sever his, her or its employment or other relationship with Nationstar or any of their successors, assigns, subsidiaries or affiliates, for any other reason.
|
Employment at will:
|
Nothing herein constitutes an offer of employment for any definite period of time. The employment relationship is "at-will" which affords you and Nationstar the right to terminate the relationship at any time for no reason or any reason.
|
Anticipated Start Date:
|
March 20, 2017
|
•
|
Proof of eligibility and employment authorization in accordance with governmental (I-9) requirements,
|
•
|
Obtaining satisfactory criminal, employment, and education background checks,
|
•
|
Completing all new hire paperwork, which you will receive in the days after you sign and
date this letter. |
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15(d) - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
May 5, 2017
|
|
|
|
/s/ Jay Bray
|
|
|
|
|
Jay Bray
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
May 5, 2017
|
|
|
|
/s/ Amar Patel
|
|
|
|
|
Amar Patel
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
May 5, 2017
|
|
|
/s/ Jay Bray
|
||
|
Jay Bray
|
||
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
May 5, 2017
|
|
/s/ Amar Patel
|
|
|
Amar Patel
|
|
|
Chief Financial Officer
|