x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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45-2156869
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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8950 Cypress Waters Blvd, Coppell, TX
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75019
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(Address of principal executive offices)
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(Zip Code)
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Large Accelerated Filer
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¨
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Accelerated Filer
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x
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Non-Accelerated Filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Page
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PART I
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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PART II
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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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June 30,
2018 |
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December 31,
2017 |
||||
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(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
185
|
|
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$
|
215
|
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Restricted cash
|
310
|
|
|
360
|
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Mortgage servicing rights, $3,356 and $2,937 at fair value, respectively
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3,356
|
|
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2,941
|
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||
Advances and other receivables, net of reserves of $294 and $284, respectively
|
1,317
|
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1,706
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||
Reverse mortgage interests, net of reserves of $117 and $115, respectively
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9,477
|
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9,984
|
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Mortgage loans held for sale at fair value
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1,635
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|
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1,891
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Mortgage loans held for investment, net
|
132
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|
|
139
|
|
||
Property and equipment, net of accumulated depreciation of $195 and $169, respectively
|
123
|
|
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121
|
|
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Derivative financial instruments at fair value
|
62
|
|
|
65
|
|
||
Other assets
|
593
|
|
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614
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||
Total assets
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$
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17,190
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$
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18,036
|
|
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||||
Liabilities and Stockholders' Equity
|
|
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|
||||
Unsecured senior notes, net
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$
|
1,815
|
|
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$
|
1,874
|
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Advance facilities, net
|
516
|
|
|
855
|
|
||
Warehouse facilities, net
|
3,086
|
|
|
3,285
|
|
||
Payables and accrued liabilities
|
1,288
|
|
|
1,234
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,063
|
|
|
1,006
|
|
||
Mortgage servicing liabilities
|
27
|
|
|
41
|
|
||
Derivative financial instruments at fair value
|
9
|
|
|
5
|
|
||
Other nonrecourse debt, net
|
7,445
|
|
|
8,014
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|
||
Total liabilities
|
15,249
|
|
|
16,314
|
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||
Commitments and contingencies (Note 15)
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|
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Preferred stock at $0.01 par value - 300,000 thousand shares authorized, no shares issued and outstanding
|
—
|
|
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—
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|
||
Common stock at $0.01 par value - 1,000,000 thousand shares authorized, 109,915 thousand and 109,915 thousand shares issued, respectively
|
1
|
|
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1
|
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||
Additional paid-in-capital
|
1,140
|
|
|
1,131
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Retained earnings
|
949
|
|
|
731
|
|
||
Treasury shares at cost, 11,752 thousand and 12,187 thousand shares, respectively
|
(150
|
)
|
|
(148
|
)
|
||
Total Nationstar stockholders' equity
|
1,940
|
|
|
1,715
|
|
||
Non-controlling interests
|
1
|
|
|
7
|
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||
Total stockholders' equity
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1,941
|
|
|
1,722
|
|
||
Total liabilities and stockholders' equity
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$
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17,190
|
|
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$
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18,036
|
|
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Three Months Ended June 30,
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Six Months Ended June 30,
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||||||||||||
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2018
|
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2017
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2018
|
|
2017
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Service related, net
|
$
|
317
|
|
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$
|
213
|
|
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$
|
781
|
|
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$
|
496
|
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Net gain on mortgage loans held for sale
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127
|
|
|
167
|
|
|
251
|
|
|
311
|
|
||||
Total revenues
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444
|
|
|
380
|
|
|
1,032
|
|
|
807
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Salaries, wages and benefits
|
177
|
|
|
182
|
|
|
357
|
|
|
374
|
|
||||
General and administrative
|
162
|
|
|
185
|
|
|
346
|
|
|
362
|
|
||||
Total expenses
|
339
|
|
|
367
|
|
|
703
|
|
|
736
|
|
||||
Other income (expenses):
|
|
|
|
|
|
|
|
||||||||
Interest income
|
140
|
|
|
139
|
|
|
285
|
|
|
278
|
|
||||
Interest expense
|
(164
|
)
|
|
(188
|
)
|
|
(335
|
)
|
|
(381
|
)
|
||||
Other income (expenses)
|
(2
|
)
|
|
7
|
|
|
6
|
|
|
6
|
|
||||
Total other income (expenses), net
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(26
|
)
|
|
(42
|
)
|
|
(44
|
)
|
|
(97
|
)
|
||||
Income before income tax expense (benefit)
|
79
|
|
|
(29
|
)
|
|
285
|
|
|
(26
|
)
|
||||
Less: Income tax expense (benefit)
|
21
|
|
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(10
|
)
|
|
67
|
|
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(9
|
)
|
||||
Net income (loss)
|
58
|
|
|
(19
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)
|
|
218
|
|
|
(17
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)
|
||||
Less: Net income attributable to non-controlling interests
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—
|
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|
1
|
|
|
—
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|
1
|
|
||||
Net income (loss) attributable to Nationstar
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$
|
58
|
|
|
$
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(20
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)
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$
|
218
|
|
|
$
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(18
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)
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||||||||
Net income (loss) per common share attributable to Nationstar:
|
|
|
|
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|
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||||||||
Basic
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$
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0.59
|
|
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$
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(0.20
|
)
|
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$
|
2.22
|
|
|
$
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(0.18
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)
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Diluted
|
$
|
0.59
|
|
|
$
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(0.20
|
)
|
|
$
|
2.20
|
|
|
$
|
(0.18
|
)
|
|
|
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|
|
|
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|
||||||||
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
|
|
|
||||||||
Basic
|
98,203
|
|
|
97,752
|
|
|
98,037
|
|
|
97,672
|
|
||||
Dilutive effect of stock awards
|
927
|
|
|
—
|
|
|
1,086
|
|
|
—
|
|
||||
Diluted
|
99,130
|
|
|
97,752
|
|
|
99,123
|
|
|
97,672
|
|
|
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 January 1, 2017
|
97,497
|
|
|
$
|
1
|
|
|
$
|
1,122
|
|
|
$
|
701
|
|
|
$
|
(147
|
)
|
|
$
|
1,677
|
|
|
$
|
6
|
|
|
$
|
1,683
|
|
Shares issued / (surrendered) under incentive compensation plan
|
214
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(1
|
)
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
9
|
|
|||||||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|||||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
(18
|
)
|
|
1
|
|
|
(17
|
)
|
|||||||
Balance at June 30, 2017
|
97,711
|
|
|
$
|
1
|
|
|
$
|
1,122
|
|
|
$
|
683
|
|
|
$
|
(148
|
)
|
|
$
|
1,658
|
|
|
$
|
7
|
|
|
$
|
1,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance at January 1, 2018
|
97,728
|
|
|
$
|
1
|
|
|
$
|
1,131
|
|
|
$
|
731
|
|
|
$
|
(148
|
)
|
|
$
|
1,715
|
|
|
$
|
7
|
|
|
$
|
1,722
|
|
Shares issued / (surrendered) under incentive compensation plan
|
435
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(2
|
)
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
|||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||||
Dividends to non-controlling interests
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
(6
|
)
|
|
(1
|
)
|
|||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
218
|
|
|
—
|
|
|
218
|
|
|||||||
Balance at June 30, 2018
|
98,163
|
|
|
$
|
1
|
|
|
$
|
1,140
|
|
|
$
|
949
|
|
|
$
|
(150
|
)
|
|
$
|
1,940
|
|
|
$
|
1
|
|
|
$
|
1,941
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net income (loss) attributable to Nationstar
|
$
|
218
|
|
|
$
|
(18
|
)
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
||||
Net income attributable to non-controlling interests
|
—
|
|
|
1
|
|
||
Net gain on mortgage loans held for sale
|
(251
|
)
|
|
(311
|
)
|
||
Reverse mortgage loan interest income
|
(237
|
)
|
|
(233
|
)
|
||
Gain on sale of assets
|
(9
|
)
|
|
(8
|
)
|
||
Provision for servicing reserves
|
54
|
|
|
59
|
|
||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
(155
|
)
|
|
233
|
|
||
Fair value changes in excess spread financing
|
74
|
|
|
15
|
|
||
Fair value changes in mortgage servicing rights financing liability
|
6
|
|
|
(14
|
)
|
||
Amortization of premiums, net of discount accretion
|
6
|
|
|
27
|
|
||
Depreciation and amortization for property and equipment and intangible assets
|
29
|
|
|
29
|
|
||
Share-based compensation
|
8
|
|
|
9
|
|
||
Other loss
|
2
|
|
|
9
|
|
||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(475
|
)
|
|
(599
|
)
|
||
Mortgage loans originated and purchased for sale, net of fees
|
(10,639
|
)
|
|
(8,896
|
)
|
||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
11,500
|
|
|
10,006
|
|
||
Excess tax deficiency from share-based compensation
|
(1
|
)
|
|
(1
|
)
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Advances and other receivables
|
355
|
|
|
118
|
|
||
Reverse mortgage interests
|
1,326
|
|
|
769
|
|
||
Other assets
|
10
|
|
|
24
|
|
||
Payables and accrued liabilities
|
48
|
|
|
(348
|
)
|
||
Net cash attributable to operating activities
|
1,869
|
|
|
871
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Property and equipment additions, net of disposals
|
(31
|
)
|
|
(25
|
)
|
||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(123
|
)
|
|
(13
|
)
|
||
Net payment related to acquisition of HECM related receivables
|
(1
|
)
|
|
—
|
|
||
Proceeds on sale of forward and reverse mortgage servicing rights
|
—
|
|
|
(2
|
)
|
||
Proceeds on sale of assets
|
13
|
|
|
16
|
|
||
Net cash attributable to investing activities
|
(142
|
)
|
|
(24
|
)
|
•
|
Exchange is a national technology-enabled platform that manages and sells residential properties through its Xome.com platform. Revenue-generating activities include commission and buyer’s premium of winning bids on auctioned real estate owned ("REO") and short sale properties. Revenue is recognized when performance obligation is completed, which is at the closing of real estate transactions and transfer of ownership to the buyer.
|
•
|
Services connects the major touch points of the real estate transactions process by providing title, escrow and collateral valuation services for purchase, refinance and default transactions. Major revenue-generating activities include title and escrow services, and valuation services. Revenue is recognized when performance obligation is completed, which is when services are rendered to customers.
|
•
|
SaaS includes Company’s software as a service platform providing integrated technology, media and data solutions to mortgage servicers, originators and multiple listing service ("MLS") organizations and associations. Revenue-generating activities include software and platform system access and use, system implementation, software maintenance and support, data services and any additional customized enhancement. Revenue is recognized when performance obligation is completed, which is generally recognized on straight-line basis over the contractual terms. Additionally, any additional fees owed due to usage metrics in excess of the monthly minimum will be recognized each month under the usage-based royalties guidance of ASC 606.
|
MSRs and Related Liabilities
|
June 30, 2018
|
|
December 31, 2017
|
||||
Mortgage servicing rights - fair value and amortized cost
(1)
|
$
|
3,356
|
|
|
$
|
2,941
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
27
|
|
|
$
|
41
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,047
|
|
|
$
|
996
|
|
Mortgage servicing rights financing - fair value
|
16
|
|
|
10
|
|
||
MSR related liabilities - nonrecourse at fair value
|
$
|
1,063
|
|
|
$
|
1,006
|
|
|
Six Months Ended June 30,
|
||||||
MSRs - Fair Value
|
2018
|
|
2017
|
||||
Fair value - beginning of period
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
||||
Servicing retained from mortgage loans sold
|
139
|
|
|
103
|
|
||
Purchases of servicing rights
|
132
|
|
|
13
|
|
||
Dispositions:
|
|
|
|
||||
Sales of servicing assets
(1)
|
4
|
|
|
2
|
|
||
Changes in fair value:
|
|
|
|
||||
Changes in valuation inputs or assumptions used in the valuation model
|
283
|
|
|
(74
|
)
|
||
Other changes in fair value
|
(139
|
)
|
|
(158
|
)
|
||
Fair value - end of period
|
$
|
3,356
|
|
|
$
|
3,046
|
|
MSRs - Sensitivity Pools
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
153,552
|
|
|
$
|
1,695
|
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
Interest sensitive
|
124,553
|
|
|
1,661
|
|
|
113,775
|
|
|
1,365
|
|
||||
Total
|
$
|
278,105
|
|
|
$
|
3,356
|
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
Credit Sensitive
|
June 30, 2018
|
|
December 31, 2017
|
||
Discount rate
|
11.4
|
%
|
|
11.4
|
%
|
Total prepayment speeds
|
11.7
|
%
|
|
15.2
|
%
|
Expected weighted-average life
|
6.6 years
|
|
|
5.7 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.2
|
%
|
Total prepayment speeds
|
9.8
|
%
|
|
10.7
|
%
|
Expected weighted-average life
|
7.0 years
|
|
|
6.7 years
|
|
|
Discount Rate
|
|
Total Prepayment Speeds
|
||||||||||||
MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(130
|
)
|
|
$
|
(251
|
)
|
|
$
|
(119
|
)
|
|
$
|
(231
|
)
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(108
|
)
|
|
$
|
(208
|
)
|
|
$
|
(118
|
)
|
|
$
|
(227
|
)
|
Excess Spread Financing
|
Prepayment Speeds
|
|
Average
Life (Years) |
|
Discount Rate
|
|
Recapture Rate
|
June 30, 2018
|
|
|
|
|
|
|
|
Low
|
6.0%
|
|
5.2
|
|
8.5%
|
|
8.2%
|
High
|
15.1%
|
|
8.1
|
|
14.0%
|
|
27.3%
|
Weighted-average
|
11.1%
|
|
6.5
|
|
10.6%
|
|
18.0%
|
December 31, 2017
|
|
|
|
|
|
|
|
Low
|
6.2%
|
|
4.4
|
|
8.5%
|
|
7.2%
|
High
|
21.2%
|
|
6.9
|
|
14.1%
|
|
30.0%
|
Weighted-average
|
13.7%
|
|
5.9
|
|
10.8%
|
|
18.7%
|
|
Discount Rate
|
|
Prepayment Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
June 30, 2018
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
40
|
|
|
$
|
83
|
|
|
$
|
31
|
|
|
$
|
64
|
|
December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
37
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
71
|
|
Mortgage Servicing Rights Financing Assumptions
|
June 30, 2018
|
|
December 31, 2017
|
||
Advance financing rates
|
4.1
|
%
|
|
3.5
|
%
|
Annual advance recovery rates
|
18.9
|
%
|
|
23.2
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Servicing Revenue
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Contractually specified servicing fees
(1)
|
$
|
245
|
|
|
$
|
253
|
|
|
$
|
495
|
|
|
$
|
508
|
|
Other service-related income
(1)(2)
|
28
|
|
|
46
|
|
|
56
|
|
|
86
|
|
||||
Incentive and modification income
(1)
|
18
|
|
|
21
|
|
|
33
|
|
|
43
|
|
||||
Late fees
(1)
|
22
|
|
|
22
|
|
|
46
|
|
|
46
|
|
||||
Reverse servicing fees
|
14
|
|
|
13
|
|
|
33
|
|
|
27
|
|
||||
Mark-to-market adjustments
(2)(3)
|
19
|
|
|
(84
|
)
|
|
171
|
|
|
(116
|
)
|
||||
Counterparty revenue share
(4)
|
(50
|
)
|
|
(59
|
)
|
|
(95
|
)
|
|
(121
|
)
|
||||
Amortization, net of accretion
(5)
|
(48
|
)
|
|
(66
|
)
|
|
(96
|
)
|
|
(127
|
)
|
||||
Total servicing revenue
|
$
|
248
|
|
|
$
|
146
|
|
|
$
|
643
|
|
|
$
|
346
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Servicing advances
|
$
|
1,248
|
|
|
$
|
1,599
|
|
Receivables from agencies, investors and prior servicers
|
363
|
|
|
391
|
|
||
Reserves
|
(294
|
)
|
|
(284
|
)
|
||
Total advances and other receivables, net
|
$
|
1,317
|
|
|
$
|
1,706
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reserves for Advances and Other Receivables
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance - beginning of period
|
$
|
277
|
|
|
$
|
208
|
|
|
$
|
284
|
|
|
$
|
184
|
|
Provision and other additions
(1)
|
38
|
|
|
36
|
|
|
60
|
|
|
76
|
|
||||
Write-offs
|
(21
|
)
|
|
(8
|
)
|
|
(50
|
)
|
|
(24
|
)
|
||||
Balance - end of period
|
$
|
294
|
|
|
$
|
236
|
|
|
$
|
294
|
|
|
$
|
236
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Repurchased HECM loans
|
$
|
1,749
|
|
|
$
|
1,662
|
|
HECM related receivables
|
332
|
|
|
311
|
|
||
Funded borrower draws not yet securitized
|
62
|
|
|
82
|
|
||
REO related receivables
|
25
|
|
|
25
|
|
||
Total unsecuritized interests
|
$
|
2,168
|
|
|
$
|
2,080
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Reserves for reverse mortgage interests
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance - beginning of period
|
$
|
134
|
|
|
$
|
137
|
|
|
$
|
115
|
|
|
$
|
131
|
|
Provision (release), net
|
(6
|
)
|
|
14
|
|
|
20
|
|
|
22
|
|
||||
Write-offs
|
(11
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(4
|
)
|
||||
Balance - end of period
|
$
|
117
|
|
|
$
|
149
|
|
|
$
|
117
|
|
|
$
|
149
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Mortgage loans held for sale – UPB
|
$
|
1,586
|
|
|
$
|
1,837
|
|
Mark-to-market adjustment
(1)
|
49
|
|
|
54
|
|
||
Total mortgage loans held for sale
|
$
|
1,635
|
|
|
$
|
1,891
|
|
|
Six Months Ended June 30,
|
||||||
Mortgage loans held for sale
|
2018
|
|
2017
|
||||
Balance - beginning of period
|
$
|
1,891
|
|
|
$
|
1,788
|
|
Mortgage loans originated and purchased, net of fees
|
10,630
|
|
|
8,887
|
|
||
Loans sold
|
(11,377
|
)
|
|
(9,753
|
)
|
||
Repurchase of loans out of Ginnie Mae securitizations
|
475
|
|
|
599
|
|
||
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims
(1)
|
(6
|
)
|
|
(8
|
)
|
||
Net transfer of mortgage loans held for sale from REO in other assets
(2)
|
12
|
|
|
11
|
|
||
Changes in fair value
|
1
|
|
|
10
|
|
||
Other purchase-related activities
(3)
|
9
|
|
|
9
|
|
||
Balance - end of period
|
$
|
1,635
|
|
|
$
|
1,543
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Mortgage loans held for investment, net – UPB
|
$
|
183
|
|
|
$
|
193
|
|
Transfer discount:
|
|
|
|
||||
Non-accretable
|
(37
|
)
|
|
(41
|
)
|
||
Accretable
|
(13
|
)
|
|
(12
|
)
|
||
Allowance for loan losses
|
(1
|
)
|
|
(1
|
)
|
||
Total mortgage loans held for investment, net
|
$
|
132
|
|
|
$
|
139
|
|
|
Six Months Ended June 30,
|
||||||
Accretable Yield Discount
|
2018
|
|
2017
|
||||
Balance - beginning of the period
|
$
|
(12
|
)
|
|
$
|
(13
|
)
|
Accretion
|
1
|
|
|
1
|
|
||
Reclassifications from non-accretable discount
|
(2
|
)
|
|
(2
|
)
|
||
Balance - end of the period
|
$
|
(13
|
)
|
|
$
|
(14
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Loans subject to repurchase right from Ginnie Mae
|
$
|
206
|
|
|
$
|
218
|
|
Accrued revenues
|
128
|
|
|
148
|
|
||
Goodwill
|
71
|
|
|
72
|
|
||
Prepaid expenses
|
31
|
|
|
27
|
|
||
Deposits
|
21
|
|
|
19
|
|
||
Real estate owned (REO), net
|
18
|
|
|
23
|
|
||
Intangible assets
|
14
|
|
|
19
|
|
||
Receivables from affiliates, net
|
6
|
|
|
6
|
|
||
Other
|
98
|
|
|
82
|
|
||
Total other assets
|
$
|
593
|
|
|
$
|
614
|
|
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded
Gains /
(Losses)
|
||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2018
|
|
$
|
368
|
|
|
$
|
7.2
|
|
|
$
|
7.1
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2018
|
|
1,778
|
|
|
60.2
|
|
|
0.9
|
|
|||
Forward sales of MBS
|
2018
|
|
568
|
|
|
0.4
|
|
|
(2.0
|
)
|
|||
LPCs
|
2018
|
|
271
|
|
|
1.7
|
|
|
0.8
|
|
|||
Treasury futures
|
2018
|
|
35
|
|
|
0.1
|
|
|
(1.8
|
)
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
22
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2018
|
|
1
|
|
|
—
|
|
|
—
|
|
|||
Forward sales of MBS
|
2018
|
|
2,710
|
|
|
8.0
|
|
|
5.2
|
|
|||
LPCs
|
2018
|
|
185
|
|
|
0.7
|
|
|
0.1
|
|
|||
Treasury futures
(1)
|
2018
|
|
63
|
|
|
—
|
|
|
(1.4
|
)
|
|||
Eurodollar futures
(1)
|
2020-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
(1)
|
2018
|
|
$
|
13
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2018
|
|
2,065
|
|
|
59.3
|
|
|
(32.9
|
)
|
|||
Forward sales of MBS
|
2018
|
|
1,802
|
|
|
2.4
|
|
|
(36.9
|
)
|
|||
LPCs
|
2018
|
|
171
|
|
|
0.9
|
|
|
(1.0
|
)
|
|||
Treasury futures
|
2018
|
|
81
|
|
|
1.9
|
|
|
1.9
|
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
26
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2018
|
|
7
|
|
|
—
|
|
|
1.1
|
|
|||
Forward sales of MBS
|
2018
|
|
1,579
|
|
|
2.8
|
|
|
7.2
|
|
|||
LPCs
|
2018
|
|
213
|
|
|
0.6
|
|
|
0.9
|
|
|||
Treasury futures
|
2018
|
|
128
|
|
|
1.4
|
|
|
(1.4
|
)
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
17
|
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
(1)
|
2018
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Nationstar agency advance receivables trust
|
|
LIBOR+2.0% to 2.6%
|
|
November 2019
|
|
Servicing advance receivables
|
|
$
|
575
|
|
|
$
|
248
|
|
|
$
|
292
|
|
|
$
|
416
|
|
|
$
|
492
|
|
Nationstar mortgage advance receivable trust
|
|
LIBOR+1.4% to 6.5%
|
|
November 2018
|
|
Servicing advance receivables
|
|
500
|
|
|
142
|
|
|
243
|
|
|
230
|
|
|
287
|
|
|||||
Nationstar agency advance financing facility
|
|
LIBOR+1.0% to 7.4%
|
|
January 2019
|
|
Servicing advance receivables
|
|
150
|
|
|
77
|
|
|
92
|
|
|
102
|
|
|
117
|
|
|||||
MBS advance financing facility
|
|
LIBOR+2.5%
|
|
March 2019
|
|
Servicing advance receivables
|
|
130
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
64
|
|
|||||
MBS servicer advance facility (2014)
|
|
LIBOR+3.0%
|
|
October 2018
|
|
Servicing advance receivables
|
|
125
|
|
|
49
|
|
|
139
|
|
|
44
|
|
|
140
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
516
|
|
|
$
|
766
|
|
|
855
|
|
|
$
|
1,100
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||||
Advance facilities, net
|
|
|
|
$
|
516
|
|
|
|
|
$
|
855
|
|
|
|
||||||||||||
|
||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,200 warehouse facility
|
|
LIBOR+1.9% to 3.8%
|
|
October 2018
|
|
Mortgage loans or MBS
|
|
$
|
1,200
|
|
|
$
|
768
|
|
|
$
|
836
|
|
|
$
|
889
|
|
|
$
|
960
|
|
$1,000 warehouse facility
|
|
LIBOR+2.0% to 2.5%
|
|
September 2018
|
|
Mortgage loans or MBS
|
|
1,000
|
|
|
289
|
|
|
297
|
|
|
299
|
|
|
308
|
|
|||||
$950 warehouse facility
|
|
LIBOR+2.0% to 3.5%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
950
|
|
|
632
|
|
|
705
|
|
|
721
|
|
|
785
|
|
|||||
$600 warehouse facility
|
|
LIBOR+2.5%
|
|
February 2019
|
|
Mortgage loans or MBS
|
|
600
|
|
|
354
|
|
|
379
|
|
|
333
|
|
|
347
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
September 2018
|
|
Mortgage loans or MBS
|
|
500
|
|
|
198
|
|
|
202
|
|
|
233
|
|
|
239
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
500
|
|
|
288
|
|
|
318
|
|
|
305
|
|
|
337
|
|
|||||
$500 warehouse facility
|
|
LIBOR+2.0% to 3.5%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
312
|
|
|
338
|
|
|
246
|
|
|
272
|
|
|||||
$300 warehouse facility
|
|
LIBOR+2.3%
|
|
January 2019
|
|
Mortgage loans or MBS
|
|
300
|
|
|
109
|
|
|
135
|
|
|
116
|
|
|
141
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.6%
|
|
April 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
34
|
|
|
35
|
|
|
80
|
|
|
81
|
|
|||||
$200 warehouse facility
|
|
LIBOR+5.5% to 6.8%
|
|
June 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
100
|
|
|
195
|
|
|
50
|
|
|
50
|
|
|||||
$150 warehouse facility
|
|
LIBOR+4.3%
|
|
September 2018
|
|
Mortgage loans or MBS
|
|
150
|
|
|
—
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|||||
$50 warehouse facility
|
|
LIBOR+4.5%
|
|
August 2020
|
|
Mortgage loans or MBS
|
|
50
|
|
|
—
|
|
|
48
|
|
|
10
|
|
|
10
|
|
|||||
$40 warehouse facility
|
|
LIBOR+3.0%
|
|
November 2018
|
|
Mortgage loans or MBS
|
|
40
|
|
|
3
|
|
|
5
|
|
|
4
|
|
|
6
|
|
|||||
Warehouse facilities principal amount
|
|
|
|
|
|
3,087
|
|
|
$
|
3,587
|
|
|
3,286
|
|
|
$
|
3,536
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
||||||||||||
Warehouse facilities, net
|
|
|
|
$
|
3,086
|
|
|
|
|
$
|
3,285
|
|
|
|
||||||||||||
|
||||||||||||||||||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans, net
|
|
|
|
|
|
|
|
$
|
1,544
|
|
|
$
|
1,431
|
|
|
$
|
1,852
|
|
|
$
|
1,680
|
|
||||
Reverse mortgage interests, net
|
|
|
|
|
|
|
|
1,443
|
|
|
1,612
|
|
|
1,434
|
|
|
1,575
|
|
||||||||
MSR and other collateral
|
|
|
|
|
|
|
|
100
|
|
|
544
|
|
|
—
|
|
|
281
|
|
|
June 30, 2018
|
|
December 31, 2017
|
|||||||||||||||||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
|
$
|
595
|
|
|
$
|
595
|
|
|||||||||||||
$400 face value, 7.875% interest rate payable semi-annually, due October 2020
|
394
|
|
|
397
|
|
|||||||||||||||
$475 face value, 6.500% interest rate payable semi-annually, due August 2018
|
364
|
|
|
364
|
|
|||||||||||||||
$375 face value, 9.625% interest rate payable semi-annually, due May 2019
|
266
|
|
|
323
|
|
|||||||||||||||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
|
206
|
|
|
206
|
|
|||||||||||||||
Unsecured senior notes principal amount
|
1,825
|
|
|
1,885
|
|
|||||||||||||||
Unamortized debt issuance costs
|
(10
|
)
|
|
(11
|
)
|
|||||||||||||||
Unsecured senior notes, net
|
$
|
1,815
|
|
|
$
|
1,874
|
|
Year Ending December 31,
|
|
Amount
|
||
2018
(1)
|
|
$
|
364
|
|
2019
(2)
|
|
266
|
|
|
2020
(1)
|
|
394
|
|
|
2021
|
|
595
|
|
|
2022
|
|
206
|
|
|
Unsecured senior notes principal amount
|
|
1,825
|
|
|
Unamortized debt issuance costs
|
|
(10
|
)
|
|
Unsecured senior notes, net
|
|
$
|
1,815
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
Outstanding
|
||||||
Participating interest financing
(1)
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
6,590
|
|
|
$
|
7,173
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2016-2
|
June 2016
|
|
June 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
94
|
|
|||
Trust 2016-3
|
August 2016
|
|
August 2026
|
|
A, M1, M2
|
|
—
|
|
|
—
|
|
|
138
|
|
|||
Trust 2017-1
|
May 2017
|
|
May 2027
|
|
A, M1, M2
|
|
207
|
|
|
170
|
|
|
213
|
|
|||
Trust 2017-2
|
September 2017
|
|
September 2027
|
|
A, M1, M2
|
|
334
|
|
|
291
|
|
|
365
|
|
|||
Trust 2018-1
|
March 2018
|
|
March 2028
|
|
A, M1, M2, M3, M4, M5
|
|
380
|
|
|
369
|
|
|
—
|
|
|||
Nonrecourse debt - legacy assets
|
November 2009
|
|
October 2039
|
|
A
|
|
118
|
|
|
36
|
|
|
42
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
7,456
|
|
|
8,025
|
|
||||
Unamortized debt issuance costs and issuance discount
|
|
|
|
|
|
|
|
|
(11
|
)
|
|
(11
|
)
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
$
|
7,445
|
|
|
$
|
8,014
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Payables to servicing and subservicing investors
|
$
|
557
|
|
|
$
|
516
|
|
Loans subject to repurchase from Ginnie Mae
|
206
|
|
|
218
|
|
||
Payables to GSEs and securitized trusts
|
135
|
|
|
92
|
|
||
Accounts payable and other accrued liabilities
|
114
|
|
|
99
|
|
||
Payable to insurance carriers and insurance cancellation reserves
|
60
|
|
|
61
|
|
||
Taxes
|
58
|
|
|
36
|
|
||
Accrued bonus and payroll
|
52
|
|
|
82
|
|
||
Accrued interest
|
39
|
|
|
62
|
|
||
Accrued legal expenses
|
22
|
|
|
25
|
|
||
Lease obligations
|
20
|
|
|
24
|
|
||
MSR purchases payable including advances
|
16
|
|
|
10
|
|
||
Repurchase reserves
|
9
|
|
|
9
|
|
||
Total payables and accrued liabilities
|
$
|
1,288
|
|
|
$
|
1,234
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Repurchase Reserves
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance - beginning of period
|
$
|
9
|
|
|
$
|
15
|
|
|
$
|
9
|
|
|
$
|
18
|
|
Provisions
|
2
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Releases
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(6
|
)
|
||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Balance - end of period
|
$
|
9
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
14
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
87
|
|
|
$
|
35
|
|
|
$
|
106
|
|
|
$
|
26
|
|
Reverse mortgage interests, net
|
—
|
|
|
7,379
|
|
|
—
|
|
|
7,981
|
|
||||
Advances and other receivables, net
|
627
|
|
|
—
|
|
|
896
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
132
|
|
|
—
|
|
|
138
|
|
|
—
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
||||
Total assets
|
$
|
846
|
|
|
$
|
7,414
|
|
|
$
|
1,142
|
|
|
$
|
8,007
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities
(1)
|
$
|
467
|
|
|
$
|
—
|
|
|
$
|
749
|
|
|
$
|
—
|
|
Payables and accrued liabilities
|
1
|
|
|
—
|
|
|
2
|
|
|
1
|
|
||||
Participating interest financing
(2)
|
—
|
|
|
6,527
|
|
|
—
|
|
|
7,107
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
—
|
|
|
—
|
|
|
—
|
|
|
94
|
|
||||
Trust 2016-3
|
—
|
|
|
—
|
|
|
—
|
|
|
138
|
|
||||
Trust 2017-1
|
—
|
|
|
170
|
|
|
—
|
|
|
213
|
|
||||
Trust 2017-2
|
—
|
|
|
291
|
|
|
—
|
|
|
365
|
|
||||
Trust 2018-1
|
—
|
|
|
369
|
|
|
—
|
|
|
—
|
|
||||
Nonrecourse debt–legacy assets
|
31
|
|
|
—
|
|
|
36
|
|
|
—
|
|
||||
Total liabilities
|
$
|
499
|
|
|
$
|
7,357
|
|
|
$
|
787
|
|
|
$
|
7,918
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Total collateral balances
|
$
|
2,012
|
|
|
$
|
2,291
|
|
Total certificate balances
|
$
|
1,956
|
|
|
$
|
2,129
|
|
Principal Amount of Loans 60 Days or More Past Due
|
June 30, 2018
|
|
December 31, 2017
|
||||
Unconsolidated securitization trusts
|
$
|
362
|
|
|
$
|
448
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Income tax expense (benefit)
|
$
|
21
|
|
|
$
|
(10
|
)
|
|
$
|
67
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
26.5
|
%
|
|
33.1
|
%
|
|
23.6
|
%
|
|
32.8
|
%
|
|
June 30, 2018
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,635.2
|
|
|
$
|
—
|
|
|
$
|
1,635.2
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
3,355.7
|
|
|
—
|
|
|
—
|
|
|
3,355.7
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
60.2
|
|
|
—
|
|
|
60.2
|
|
|
—
|
|
||||
Forward MBS trades
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
LPCs
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Total assets
|
$
|
5,053.3
|
|
|
$
|
—
|
|
|
$
|
1,697.6
|
|
|
$
|
3,355.7
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
8.0
|
|
|
—
|
|
|
8.0
|
|
|
—
|
|
||||
LPCs
|
0.7
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
16.1
|
|
|
—
|
|
|
—
|
|
|
16.1
|
|
||||
Excess spread financing
|
1,046.5
|
|
|
—
|
|
|
—
|
|
|
1,046.5
|
|
||||
Total liabilities
|
$
|
1,071.3
|
|
|
$
|
—
|
|
|
$
|
8.7
|
|
|
$
|
1,062.6
|
|
|
December 31, 2017
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,890.8
|
|
|
$
|
—
|
|
|
$
|
1,890.8
|
|
|
$
|
—
|
|
Mortgage servicing rights
(1)
|
2,937.4
|
|
|
—
|
|
|
—
|
|
|
2,937.4
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
59.3
|
|
|
—
|
|
|
59.3
|
|
|
—
|
|
||||
Forward MBS trades
|
2.4
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
||||
LPCs
|
0.9
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.9
|
|
|
—
|
|
|
1.9
|
|
|
—
|
|
||||
Total assets
|
$
|
4,892.7
|
|
|
$
|
—
|
|
|
$
|
1,955.3
|
|
|
$
|
2,937.4
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
$
|
2.8
|
|
|
$
|
—
|
|
|
$
|
2.8
|
|
|
$
|
—
|
|
LPCs
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Treasury futures
|
1.4
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
9.5
|
|
|
—
|
|
|
—
|
|
|
9.5
|
|
||||
Excess spread financing
|
996.5
|
|
|
—
|
|
|
—
|
|
|
996.5
|
|
||||
Total liabilities
|
$
|
1,010.8
|
|
|
$
|
—
|
|
|
$
|
4.8
|
|
|
$
|
1,006.0
|
|
|
Assets
|
|
Liabilities
|
||||||||
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
Six Months Ended June 30, 2018
|
|
|
|
|
|
||||||
Balance - beginning of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
Total gains or losses included in earnings
|
144
|
|
|
74
|
|
|
6
|
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
132
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
139
|
|
|
70
|
|
|
—
|
|
|||
Sales
|
4
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(93
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,356
|
|
|
$
|
1,047
|
|
|
$
|
16
|
|
|
Assets
|
|
Liabilities
|
||||||||
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
Year Ended December 31, 2017
|
|
|
|
|
|
||||||
Balance - beginning of period
|
$
|
3,160
|
|
|
$
|
1,214
|
|
|
$
|
27
|
|
Total gains or losses included in earnings
|
(432
|
)
|
|
12
|
|
|
(17
|
)
|
|||
Purchases, issuances, sales and settlements
|
|
|
|
|
|
||||||
Purchases
|
66
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
203
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
(60
|
)
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(230
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
|
June 30, 2018
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
185
|
|
|
$
|
185
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
310
|
|
|
310
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,317
|
|
|
—
|
|
|
—
|
|
|
1,317
|
|
||||
Reverse mortgage interests, net
|
9,477
|
|
|
—
|
|
|
—
|
|
|
9,665
|
|
||||
Mortgage loans held for sale
|
1,635
|
|
|
—
|
|
|
1,635
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
132
|
|
|
—
|
|
|
—
|
|
|
133
|
|
||||
Derivative financial instruments
|
62
|
|
|
—
|
|
|
62
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
1,815
|
|
|
1,832
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
516
|
|
|
—
|
|
|
516
|
|
|
—
|
|
||||
Warehouse facilities
|
3,086
|
|
|
—
|
|
|
3,086
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
16
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||
Excess spread financing
|
1,047
|
|
|
—
|
|
|
—
|
|
|
1,047
|
|
||||
Derivative financial instruments
|
9
|
|
|
—
|
|
|
9
|
|
|
—
|
|
||||
Participating interest financing
|
6,584
|
|
|
—
|
|
|
6,780
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-1
|
170
|
|
|
—
|
|
|
—
|
|
|
191
|
|
||||
Trust 2017-2
|
291
|
|
|
—
|
|
|
—
|
|
|
309
|
|
||||
Trust 2018-1
|
369
|
|
|
—
|
|
|
—
|
|
|
352
|
|
||||
Nonrecourse debt - legacy assets
|
31
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2017
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
215
|
|
|
$
|
215
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
360
|
|
|
360
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,706
|
|
|
—
|
|
|
—
|
|
|
1,706
|
|
||||
Reverse mortgage interests, net
|
9,984
|
|
|
—
|
|
|
—
|
|
|
10,164
|
|
||||
Mortgage loans held for sale
|
1,891
|
|
|
—
|
|
|
1,891
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
139
|
|
|
—
|
|
|
—
|
|
|
139
|
|
||||
Derivative financial instruments
|
65
|
|
|
—
|
|
|
65
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
1,874
|
|
|
1,912
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
855
|
|
|
—
|
|
|
855
|
|
|
—
|
|
||||
Warehouse facilities
|
3,285
|
|
|
—
|
|
|
3,286
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
10
|
|
|
—
|
|
|
—
|
|
|
10
|
|
||||
Excess spread financing
|
996
|
|
|
—
|
|
|
—
|
|
|
996
|
|
||||
Derivative financial instruments
|
5
|
|
|
—
|
|
|
5
|
|
|
—
|
|
||||
Participating interest financing
|
7,167
|
|
|
—
|
|
|
7,353
|
|
|
—
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2016-2
|
94
|
|
|
—
|
|
|
—
|
|
|
112
|
|
||||
Trust 2016-3
|
138
|
|
|
—
|
|
|
—
|
|
|
155
|
|
||||
Trust 2017-1
|
213
|
|
|
—
|
|
|
—
|
|
|
225
|
|
||||
Trust 2017-2
|
365
|
|
|
—
|
|
|
—
|
|
|
371
|
|
||||
Nonrecourse debt - legacy assets
|
37
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
|
Three Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
248
|
|
|
$
|
17
|
|
|
$
|
62
|
|
|
$
|
(11
|
)
|
|
$
|
316
|
|
|
$
|
1
|
|
|
$
|
317
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
116
|
|
|
—
|
|
|
11
|
|
|
127
|
|
|
—
|
|
|
127
|
|
|||||||
Total revenues
|
|
248
|
|
|
133
|
|
|
62
|
|
|
—
|
|
|
443
|
|
|
1
|
|
|
444
|
|
|||||||
Total Expenses
|
|
166
|
|
|
102
|
|
|
52
|
|
|
—
|
|
|
320
|
|
|
19
|
|
|
339
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
121
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
138
|
|
|
2
|
|
|
140
|
|
|||||||
Interest expense
|
|
(115
|
)
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
(131
|
)
|
|
(33
|
)
|
|
(164
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||||||
Total Other Income (expenses), net
|
|
6
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
(33
|
)
|
|
(26
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
88
|
|
|
$
|
32
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
130
|
|
|
$
|
(51
|
)
|
|
$
|
79
|
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
6
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
2
|
|
|
$
|
14
|
|
Total assets
|
|
$
|
14,640
|
|
|
$
|
4,794
|
|
|
$
|
423
|
|
|
$
|
(3,538
|
)
|
|
$
|
16,319
|
|
|
$
|
871
|
|
|
$
|
17,190
|
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
146
|
|
|
$
|
15
|
|
|
$
|
76
|
|
|
$
|
(24
|
)
|
|
$
|
213
|
|
|
$
|
—
|
|
|
$
|
213
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
143
|
|
|
—
|
|
|
24
|
|
|
167
|
|
|
—
|
|
|
167
|
|
|||||||
Total revenues
|
|
146
|
|
|
158
|
|
|
76
|
|
|
—
|
|
|
380
|
|
|
—
|
|
|
380
|
|
|||||||
Total Expenses
|
|
173
|
|
|
103
|
|
|
67
|
|
|
—
|
|
|
343
|
|
|
24
|
|
|
367
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
123
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
134
|
|
|
5
|
|
|
139
|
|
|||||||
Interest expense
|
|
(138
|
)
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
(151
|
)
|
|
(37
|
)
|
|
(188
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
(1
|
)
|
|
7
|
|
|||||||
Total Other Income (expenses), net
|
|
(15
|
)
|
|
(2
|
)
|
|
8
|
|
|
—
|
|
|
(9
|
)
|
|
(33
|
)
|
|
(42
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
(42
|
)
|
|
$
|
53
|
|
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
(57
|
)
|
|
$
|
(29
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
5
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
4
|
|
|
$
|
15
|
|
Total assets
|
|
$
|
15,482
|
|
|
$
|
4,447
|
|
|
$
|
369
|
|
|
$
|
(2,694
|
)
|
|
$
|
17,604
|
|
|
$
|
673
|
|
|
$
|
18,277
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
643
|
|
|
$
|
32
|
|
|
$
|
127
|
|
|
$
|
(22
|
)
|
|
$
|
780
|
|
|
$
|
1
|
|
|
$
|
781
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
229
|
|
|
—
|
|
|
22
|
|
|
251
|
|
|
—
|
|
|
251
|
|
|||||||
Total revenues
|
|
643
|
|
|
261
|
|
|
127
|
|
|
—
|
|
|
1,031
|
|
|
1
|
|
|
1,032
|
|
|||||||
Total expenses
|
|
348
|
|
|
211
|
|
|
104
|
|
|
—
|
|
|
663
|
|
|
40
|
|
|
703
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
247
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
279
|
|
|
6
|
|
|
285
|
|
|||||||
Interest expense
|
|
(233
|
)
|
|
(31
|
)
|
|
—
|
|
|
—
|
|
|
(264
|
)
|
|
(71
|
)
|
|
(335
|
)
|
|||||||
Other
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total other income (expenses), net
|
|
13
|
|
|
1
|
|
|
9
|
|
|
—
|
|
|
23
|
|
|
(67
|
)
|
|
(44
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
308
|
|
|
$
|
51
|
|
|
$
|
32
|
|
|
$
|
—
|
|
|
$
|
391
|
|
|
$
|
(106
|
)
|
|
$
|
285
|
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
13
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
25
|
|
|
$
|
4
|
|
|
$
|
29
|
|
Total assets
|
|
$
|
14,640
|
|
|
$
|
4,794
|
|
|
$
|
423
|
|
|
$
|
(3,538
|
)
|
|
$
|
16,319
|
|
|
$
|
871
|
|
|
$
|
17,190
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||||||||||
|
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
|
$
|
346
|
|
|
$
|
31
|
|
|
$
|
161
|
|
|
$
|
(43
|
)
|
|
$
|
495
|
|
|
$
|
1
|
|
|
$
|
496
|
|
Net gain on mortgage loans held for sale
|
|
—
|
|
|
268
|
|
|
—
|
|
|
43
|
|
|
311
|
|
|
—
|
|
|
311
|
|
|||||||
Total revenues
|
|
346
|
|
|
299
|
|
|
161
|
|
|
—
|
|
|
806
|
|
|
1
|
|
|
807
|
|
|||||||
Total expenses
|
|
328
|
|
|
220
|
|
|
139
|
|
|
—
|
|
|
687
|
|
|
49
|
|
|
736
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
|
243
|
|
|
25
|
|
|
—
|
|
|
—
|
|
|
268
|
|
|
10
|
|
|
278
|
|
|||||||
Interest expense
|
|
(277
|
)
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
(303
|
)
|
|
(78
|
)
|
|
(381
|
)
|
|||||||
Other
|
|
—
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|
(2
|
)
|
|
6
|
|
|||||||
Total other income (expenses), net
|
|
(34
|
)
|
|
(1
|
)
|
|
8
|
|
|
—
|
|
|
(27
|
)
|
|
(70
|
)
|
|
(97
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
|
$
|
(16
|
)
|
|
$
|
78
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
(118
|
)
|
|
$
|
(26
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
|
$
|
10
|
|
|
$
|
5
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
22
|
|
|
$
|
7
|
|
|
$
|
29
|
|
Total assets
|
|
$
|
15,482
|
|
|
$
|
4,447
|
|
|
$
|
369
|
|
|
$
|
(2,694
|
)
|
|
$
|
17,604
|
|
|
$
|
673
|
|
|
$
|
18,277
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
JUNE 30, 2018
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
166
|
|
|
$
|
1
|
|
|
$
|
18
|
|
|
$
|
—
|
|
|
$
|
185
|
|
Restricted cash
|
—
|
|
|
187
|
|
|
—
|
|
|
123
|
|
|
—
|
|
|
310
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,319
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
3,356
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,317
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,317
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
8,615
|
|
|
—
|
|
|
862
|
|
|
—
|
|
|
9,477
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,635
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,635
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
132
|
|
||||||
Property and equipment, net
|
—
|
|
|
106
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
123
|
|
||||||
Derivative financial instruments at fair value
|
—
|
|
|
62
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62
|
|
||||||
Other assets
|
—
|
|
|
466
|
|
|
192
|
|
|
573
|
|
|
(638
|
)
|
|
593
|
|
||||||
Investment in subsidiaries
|
2,070
|
|
|
574
|
|
|
—
|
|
|
—
|
|
|
(2,644
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
2,070
|
|
|
$
|
16,447
|
|
|
$
|
193
|
|
|
$
|
1,762
|
|
|
$
|
(3,282
|
)
|
|
$
|
17,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
—
|
|
|
$
|
1,815
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,815
|
|
Advance facilities, net
|
—
|
|
|
49
|
|
|
—
|
|
|
467
|
|
|
—
|
|
|
516
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
3,086
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,086
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,255
|
|
|
1
|
|
|
32
|
|
|
—
|
|
|
1,288
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,043
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
1,063
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27
|
|
||||||
Derivative financial instruments at fair value
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
6,584
|
|
|
—
|
|
|
861
|
|
|
—
|
|
|
7,445
|
|
||||||
Payables to affiliates
|
129
|
|
|
509
|
|
|
—
|
|
|
—
|
|
|
(638
|
)
|
|
—
|
|
||||||
Total liabilities
|
129
|
|
|
14,377
|
|
|
1
|
|
|
1,380
|
|
|
(638
|
)
|
|
15,249
|
|
||||||
Total stockholders' equity
|
1,941
|
|
|
2,070
|
|
|
192
|
|
|
382
|
|
|
(2,644
|
)
|
|
1,941
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,070
|
|
|
$
|
16,447
|
|
|
$
|
193
|
|
|
$
|
1,762
|
|
|
$
|
(3,282
|
)
|
|
$
|
17,190
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2018
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
247
|
|
|
$
|
7
|
|
|
$
|
63
|
|
|
$
|
—
|
|
|
$
|
317
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
127
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
127
|
|
||||||
Total revenues
|
—
|
|
|
374
|
|
|
7
|
|
|
63
|
|
|
—
|
|
|
444
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
149
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
177
|
|
||||||
General and administrative
|
—
|
|
|
134
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
162
|
|
||||||
Total expenses
|
—
|
|
|
283
|
|
|
1
|
|
|
55
|
|
|
—
|
|
|
339
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
127
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
140
|
|
||||||
Interest expense
|
—
|
|
|
(153
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(164
|
)
|
||||||
Other income (expenses)
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
(2
|
)
|
||||||
Gain (loss) from subsidiaries
|
58
|
|
|
18
|
|
|
—
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
58
|
|
|
(11
|
)
|
|
—
|
|
|
3
|
|
|
(76
|
)
|
|
(26
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
58
|
|
|
80
|
|
|
6
|
|
|
11
|
|
|
(76
|
)
|
|
79
|
|
||||||
Less: Income tax expense (benefit)
|
—
|
|
|
22
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
21
|
|
||||||
Net income (loss)
|
58
|
|
|
58
|
|
|
6
|
|
|
12
|
|
|
(76
|
)
|
|
58
|
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
58
|
|
|
$
|
58
|
|
|
$
|
6
|
|
|
$
|
12
|
|
|
$
|
(76
|
)
|
|
$
|
58
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2018
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
637
|
|
|
$
|
13
|
|
|
$
|
131
|
|
|
$
|
—
|
|
|
$
|
781
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
251
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
251
|
|
||||||
Total revenues
|
—
|
|
|
888
|
|
|
13
|
|
|
131
|
|
|
—
|
|
|
1,032
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
301
|
|
|
2
|
|
|
54
|
|
|
—
|
|
|
357
|
|
||||||
General and administrative
|
—
|
|
|
290
|
|
|
1
|
|
|
55
|
|
|
—
|
|
|
346
|
|
||||||
Total expenses
|
—
|
|
|
591
|
|
|
3
|
|
|
109
|
|
|
—
|
|
|
703
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
258
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
285
|
|
||||||
Interest expense
|
—
|
|
|
(315
|
)
|
|
—
|
|
|
(20
|
)
|
|
—
|
|
|
(335
|
)
|
||||||
Other income (expense)
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
218
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(268
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
218
|
|
|
(11
|
)
|
|
—
|
|
|
17
|
|
|
(268
|
)
|
|
(44
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
218
|
|
|
286
|
|
|
10
|
|
|
39
|
|
|
(268
|
)
|
|
285
|
|
||||||
Less: income tax expense (benefit)
|
—
|
|
|
68
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
67
|
|
||||||
Net income (loss)
|
218
|
|
|
218
|
|
|
10
|
|
|
40
|
|
|
(268
|
)
|
|
218
|
|
||||||
Less: net loss attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
218
|
|
|
$
|
218
|
|
|
$
|
10
|
|
|
$
|
40
|
|
|
$
|
(268
|
)
|
|
$
|
218
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2018
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
218
|
|
|
$
|
218
|
|
|
$
|
10
|
|
|
$
|
40
|
|
|
$
|
(268
|
)
|
|
$
|
218
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Gain) loss from subsidiaries
|
(218
|
)
|
|
(50
|
)
|
|
—
|
|
|
—
|
|
|
268
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(251
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(251
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(237
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(237
|
)
|
||||||
Gain on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
54
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
73
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
74
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
9
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
6
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
23
|
|
|
—
|
|
|
6
|
|
|
—
|
|
|
29
|
|
||||||
Share-based compensation
|
—
|
|
|
7
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
8
|
|
||||||
Other (gain) loss
|
—
|
|
|
3
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
2
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(475
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(475
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(10,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,639
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
11,490
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
11,500
|
|
||||||
Excess tax deficiency from share-based compensation
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
1,314
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
1,326
|
|
||||||
Other assets
|
6
|
|
|
(188
|
)
|
|
(10
|
)
|
|
202
|
|
|
—
|
|
|
10
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
52
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
48
|
|
||||||
Net cash attributable to operating activities
|
6
|
|
|
1,608
|
|
|
—
|
|
|
255
|
|
|
—
|
|
|
1,869
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2018
(Continued)
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(31
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(117
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(123
|
)
|
||||||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(145
|
)
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(142
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Decrease in warehouse facilities
|
—
|
|
|
(199
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(199
|
)
|
||||||
Decrease in advance facilities
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
(282
|
)
|
|
—
|
|
|
(339
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
443
|
|
|
—
|
|
|
443
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(423
|
)
|
|
—
|
|
|
(423
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
184
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(1,368
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,368
|
)
|
||||||
Issuance of excess spread financing
|
—
|
|
|
70
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70
|
|
||||||
Repayment of excess spread financing
|
—
|
|
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
||||||
Dividends to non-controlling interests
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Net cash attributable to financing activities
|
(6
|
)
|
|
(1,533
|
)
|
|
—
|
|
|
(268
|
)
|
|
—
|
|
|
(1,807
|
)
|
||||||
Net decrease in cash, cash equivalents, and restricted cash
|
—
|
|
|
(70
|
)
|
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
(80
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
—
|
|
|
423
|
|
|
1
|
|
|
151
|
|
|
—
|
|
|
575
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
—
|
|
|
$
|
353
|
|
|
$
|
1
|
|
|
$
|
141
|
|
|
$
|
—
|
|
|
$
|
495
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer)
|
|
Non-Guarantor
(Subsidiaries of Issuer)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
195
|
|
|
$
|
1
|
|
|
$
|
19
|
|
|
$
|
—
|
|
|
$
|
215
|
|
Restricted cash
|
—
|
|
|
228
|
|
|
—
|
|
|
132
|
|
|
—
|
|
|
360
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
2,910
|
|
|
—
|
|
|
31
|
|
|
—
|
|
|
2,941
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,706
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,706
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
9,110
|
|
|
—
|
|
|
874
|
|
|
—
|
|
|
9,984
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,891
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,891
|
|
||||||
Mortgage loans held for investment, net
|
—
|
|
|
1
|
|
|
—
|
|
|
138
|
|
|
—
|
|
|
139
|
|
||||||
Property and equipment, net
|
—
|
|
|
102
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
121
|
|
||||||
Derivative financial instruments at fair value
|
—
|
|
|
65
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65
|
|
||||||
Other assets
|
—
|
|
|
520
|
|
|
182
|
|
|
779
|
|
|
(867
|
)
|
|
614
|
|
||||||
Investment in subsidiaries
|
1,846
|
|
|
522
|
|
|
—
|
|
|
—
|
|
|
(2,368
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,846
|
|
|
$
|
17,250
|
|
|
$
|
183
|
|
|
$
|
1,992
|
|
|
$
|
(3,235
|
)
|
|
$
|
18,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
—
|
|
|
$
|
1,874
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,874
|
|
Advance facilities, net
|
—
|
|
|
106
|
|
|
—
|
|
|
749
|
|
|
—
|
|
|
855
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
3,285
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,285
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
1,197
|
|
|
1
|
|
|
36
|
|
|
—
|
|
|
1,234
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
987
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
1,006
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41
|
|
||||||
Derivative financial instruments, at fair value
|
—
|
|
|
5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
7,167
|
|
|
—
|
|
|
847
|
|
|
—
|
|
|
8,014
|
|
||||||
Payables to affiliates
|
124
|
|
|
742
|
|
|
—
|
|
|
1
|
|
|
(867
|
)
|
|
—
|
|
||||||
Total liabilities
|
124
|
|
|
15,404
|
|
|
1
|
|
|
1,652
|
|
|
(867
|
)
|
|
16,314
|
|
||||||
Total stockholders' equity
|
1,722
|
|
|
1,846
|
|
|
182
|
|
|
340
|
|
|
(2,368
|
)
|
|
1,722
|
|
||||||
Total liabilities and stockholders' equity
|
$
|
1,846
|
|
|
$
|
17,250
|
|
|
$
|
183
|
|
|
$
|
1,992
|
|
|
$
|
(3,235
|
)
|
|
$
|
18,036
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
131
|
|
|
$
|
9
|
|
|
$
|
73
|
|
|
$
|
—
|
|
|
$
|
213
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
167
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
||||||
Total revenues
|
—
|
|
|
298
|
|
|
9
|
|
|
73
|
|
|
—
|
|
|
380
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
145
|
|
|
1
|
|
|
36
|
|
|
—
|
|
|
182
|
|
||||||
General and administrative
|
—
|
|
|
145
|
|
|
5
|
|
|
35
|
|
|
—
|
|
|
185
|
|
||||||
Total expenses
|
—
|
|
|
290
|
|
|
6
|
|
|
71
|
|
|
—
|
|
|
367
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
124
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
139
|
|
||||||
Interest expense
|
—
|
|
|
(174
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(188
|
)
|
||||||
Other expenses
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
7
|
|
||||||
Gain (loss) from subsidiaries
|
(20
|
)
|
|
14
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(20
|
)
|
|
(37
|
)
|
|
—
|
|
|
9
|
|
|
6
|
|
|
(42
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
(20
|
)
|
|
(29
|
)
|
|
3
|
|
|
11
|
|
|
6
|
|
|
(29
|
)
|
||||||
Less: Income tax benefit
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
||||||
Net income (loss)
|
(20
|
)
|
|
(19
|
)
|
|
3
|
|
|
11
|
|
|
6
|
|
|
(19
|
)
|
||||||
Less: Net income attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
(20
|
)
|
|
$
|
(20
|
)
|
|
$
|
3
|
|
|
$
|
11
|
|
|
$
|
6
|
|
|
$
|
(20
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 2017
|
|||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
316
|
|
|
$
|
14
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
496
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
310
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
311
|
|
||||||
Total Revenues
|
—
|
|
|
626
|
|
|
14
|
|
|
167
|
|
|
—
|
|
|
807
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
298
|
|
|
2
|
|
|
74
|
|
|
—
|
|
|
374
|
|
||||||
General and administrative
|
—
|
|
|
280
|
|
|
7
|
|
|
75
|
|
|
—
|
|
|
362
|
|
||||||
Total expenses
|
—
|
|
|
578
|
|
|
9
|
|
|
149
|
|
|
—
|
|
|
736
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
251
|
|
|
—
|
|
|
27
|
|
|
—
|
|
|
278
|
|
||||||
Interest expense
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
(29
|
)
|
|
—
|
|
|
(381
|
)
|
||||||
Other expense
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
8
|
|
|
—
|
|
|
6
|
|
||||||
Gain (loss) from subsidiaries
|
(18
|
)
|
|
29
|
|
|
—
|
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
(18
|
)
|
|
(74
|
)
|
|
—
|
|
|
6
|
|
|
(11
|
)
|
|
(97
|
)
|
||||||
Income (loss) before taxes
|
(18
|
)
|
|
(26
|
)
|
|
5
|
|
|
24
|
|
|
(11
|
)
|
|
(26
|
)
|
||||||
Income tax benefit
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
||||||
Net income (loss)
|
(18
|
)
|
|
(17
|
)
|
|
5
|
|
|
24
|
|
|
(11
|
)
|
|
(17
|
)
|
||||||
Less: net income attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
(18
|
)
|
|
$
|
(18
|
)
|
|
$
|
5
|
|
|
$
|
24
|
|
|
$
|
(11
|
)
|
|
$
|
(18
|
)
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2017
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
|
$
|
(18
|
)
|
|
$
|
(18
|
)
|
|
$
|
5
|
|
|
$
|
24
|
|
|
$
|
(11
|
)
|
|
$
|
(18
|
)
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income attributable to non-controlling interests
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||||
(Gain) loss from subsidiaries
|
|
18
|
|
|
(29
|
)
|
|
—
|
|
|
—
|
|
|
11
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
|
—
|
|
|
(310
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(311
|
)
|
||||||
Reverse mortgage loan interest income
|
|
—
|
|
|
(233
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(233
|
)
|
||||||
(Gain) loss on sale of assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
|
—
|
|
|
(8
|
)
|
||||||
Provision for servicing reserves
|
|
—
|
|
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
|
—
|
|
|
233
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
233
|
|
||||||
Fair value changes in excess spread financing
|
|
—
|
|
|
16
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
15
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
|
—
|
|
|
(4,271
|
)
|
|
—
|
|
|
4,298
|
|
|
—
|
|
|
27
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
|
—
|
|
|
21
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
29
|
|
||||||
Share-based compensation
|
|
—
|
|
|
6
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
9
|
|
||||||
Other loss
|
|
—
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
|
—
|
|
|
(599
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(599
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
|
—
|
|
|
(8,896
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,896
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
|
—
|
|
|
14,290
|
|
|
—
|
|
|
(4,284
|
)
|
|
—
|
|
|
10,006
|
|
||||||
Excess tax benefit from share-based compensation
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables
|
|
—
|
|
|
118
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
118
|
|
||||||
Reverse mortgage interests
|
|
—
|
|
|
926
|
|
|
—
|
|
|
(157
|
)
|
|
—
|
|
|
769
|
|
||||||
Other assets
|
|
5
|
|
|
(164
|
)
|
|
(6
|
)
|
|
189
|
|
|
—
|
|
|
24
|
|
||||||
Payables and accrued liabilities
|
|
—
|
|
|
(337
|
)
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(348
|
)
|
||||||
Net cash attributable to operating activities
|
|
5
|
|
|
807
|
|
|
(1
|
)
|
|
60
|
|
|
—
|
|
|
871
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2017
(Continued)
|
||||||||||||||||||||||||
|
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(25
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(13
|
)
|
||||||
Proceeds on sale of forward and reverse mortgage servicing rights
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
||||||
Proceeds on sale of assets
|
|
—
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16
|
|
||||||
Net cash attributable to investing activities
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(24
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
|
—
|
|
|
100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
||||||
Decrease in advance facilities
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
|
(138
|
)
|
|
—
|
|
|
(214
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
308
|
|
|
—
|
|
|
308
|
|
||||||
Repayment of HECM securitizations
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(175
|
)
|
|
—
|
|
|
(176
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
|
—
|
|
|
355
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
355
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
|
—
|
|
|
(1,260
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,260
|
)
|
||||||
Repayment of excess spread financing
|
|
—
|
|
|
(109
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Repurchase of unsecured senior notes
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
||||||
Surrender of shares relating to stock vesting
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Debt financing costs
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
||||||
Dividends to non-controlling interests
|
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Net cash attributable to financing activities
|
|
(5
|
)
|
|
(1,097
|
)
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(1,116
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
|
—
|
|
|
(305
|
)
|
|
(1
|
)
|
|
37
|
|
|
—
|
|
|
(269
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
|
—
|
|
|
612
|
|
|
2
|
|
|
263
|
|
|
—
|
|
|
877
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
|
$
|
—
|
|
|
$
|
307
|
|
|
$
|
1
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
608
|
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to maintain or grow our originations volume;
|
•
|
our ability to recapture voluntary prepayments related to our existing servicing portfolio;
|
•
|
our shift in the mix of our servicing portfolio to subservicing, which is highly concentrated;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
our ability to obtain sufficient capital to operate our business;
|
•
|
changes in prevailing interest rates;
|
•
|
our ability to finance and recover costs of our reverse servicing operations;
|
•
|
our ability to successfully implement our strategic initiatives;
|
•
|
changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and Ginnie Mae;
|
•
|
Xome's ability to compete in highly competitive markets;
|
•
|
our ability to pay down debt;
|
•
|
legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs;
|
•
|
our ability to prevent cyber intrusions and mitigate cyber risks; and
|
•
|
loss of our licenses.
|
•
|
Boarded
$20,200
UPB comprised of
$14,220
UPB of forward MSR and
$5,980
UPB of subservicing
|
•
|
Provided
14,715
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership
|
•
|
Improved delinquency rate, measured as loans that are 60 or more days behind in payment, to
2.8%
, the lowest in our history
|
•
|
Funded
25,315
loans totaling
$5,543
, which included
$2,552
related to retaining customers from our servicing portfolio
|
•
|
Achieved recapture rate of
21.8%
for 2018
|
•
|
Sold
3,112
properties and completed
117,093
Xome service orders
|
•
|
Repurchased
$44
unsecured senior notes during the quarter
|
Table 1. Consolidated Operations
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues - operational
(1)
|
$
|
425
|
|
|
$
|
464
|
|
|
$
|
861
|
|
|
$
|
923
|
|
Revenues - Mark-to-market
(1)
|
19
|
|
|
(84
|
)
|
|
171
|
|
|
(116
|
)
|
||||
Total revenues
|
444
|
|
|
380
|
|
|
1,032
|
|
|
807
|
|
||||
Expenses
|
339
|
|
|
367
|
|
|
703
|
|
|
736
|
|
||||
Other income (expenses), net
|
(26
|
)
|
|
(42
|
)
|
|
(44
|
)
|
|
(97
|
)
|
||||
Income before income tax expense
|
79
|
|
|
(29
|
)
|
|
285
|
|
|
(26
|
)
|
||||
Less: Income tax expense
|
21
|
|
|
(10
|
)
|
|
67
|
|
|
(9
|
)
|
||||
Net income
|
58
|
|
|
(19
|
)
|
|
218
|
|
|
(17
|
)
|
||||
Less: Income attributable to non-controlling interests
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Net income attributable to Nationstar
|
$
|
58
|
|
|
$
|
(20
|
)
|
|
$
|
218
|
|
|
$
|
(18
|
)
|
|
|
|
|
|
|
|
|
||||||||
Effective tax rate
|
26.5
|
%
|
|
33.1
|
%
|
|
23.6
|
%
|
|
32.8
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income tax expense by operating and non-operating segments:
|
|
|
|
|
|
|
|
||||||||
Servicing
|
$
|
88
|
|
|
$
|
(42
|
)
|
|
$
|
308
|
|
|
$
|
(16
|
)
|
Originations
|
32
|
|
|
53
|
|
|
51
|
|
|
78
|
|
||||
Xome
|
10
|
|
|
17
|
|
|
32
|
|
|
30
|
|
||||
Corporate and other
|
(51
|
)
|
|
(57
|
)
|
|
(106
|
)
|
|
(118
|
)
|
||||
Consolidated income before income tax expense
|
$
|
79
|
|
|
$
|
(29
|
)
|
|
$
|
285
|
|
|
$
|
(26
|
)
|
Table 2. Servicing Operations
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
|
|
|
|
|
|
|
||||||||
Operational
(1)
|
$
|
277
|
|
|
$
|
296
|
|
|
$
|
568
|
|
|
$
|
589
|
|
Amortization
|
(48
|
)
|
|
(66
|
)
|
|
(96
|
)
|
|
(127
|
)
|
||||
Mark-to-market
(1)
|
19
|
|
|
(84
|
)
|
|
171
|
|
|
(116
|
)
|
||||
Total revenues
|
248
|
|
|
146
|
|
|
643
|
|
|
346
|
|
||||
Expenses
|
166
|
|
|
173
|
|
|
348
|
|
|
328
|
|
||||
Total other income (expenses), net
|
6
|
|
|
(15
|
)
|
|
13
|
|
|
(34
|
)
|
||||
Income before income tax expense
|
$
|
88
|
|
|
$
|
(42
|
)
|
|
$
|
308
|
|
|
$
|
(16
|
)
|
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Balance - beginning of period
|
$
|
466,401
|
|
|
$
|
431,825
|
|
|
$
|
473,256
|
|
|
$
|
434,295
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Originations
|
5,545
|
|
|
4,256
|
|
|
10,633
|
|
|
9,154
|
|
||||
Acquisitions
|
14,655
|
|
|
47,513
|
|
|
20,804
|
|
|
60,826
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Dispositions
|
(1,739
|
)
|
|
(424
|
)
|
|
(1,793
|
)
|
|
(2,105
|
)
|
||||
Principal reductions and other
|
(4,724
|
)
|
|
(4,342
|
)
|
|
(9,659
|
)
|
|
(7,974
|
)
|
||||
Voluntary reductions
(1)
|
(13,166
|
)
|
|
(14,839
|
)
|
|
(24,829
|
)
|
|
(27,930
|
)
|
||||
Involuntary reductions
(2)
|
(1,478
|
)
|
|
(1,931
|
)
|
|
(2,823
|
)
|
|
(4,093
|
)
|
||||
Net changes in loans serviced by others
|
(96
|
)
|
|
(185
|
)
|
|
(191
|
)
|
|
(300
|
)
|
||||
Balance - end of period
|
$
|
465,398
|
|
|
$
|
461,873
|
|
|
$
|
465,398
|
|
|
$
|
461,873
|
|
Table 4. Servicing - Revenues
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
|
Amounts
|
|
bps
(1)
|
||||||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Base servicing fees
|
$
|
214
|
|
|
17
|
|
|
$
|
229
|
|
|
19
|
|
|
$
|
433
|
|
|
17
|
|
|
$
|
464
|
|
|
19
|
|
Modification fees
(2)
|
13
|
|
|
1
|
|
|
12
|
|
|
—
|
|
|
20
|
|
|
1
|
|
|
28
|
|
|
1
|
|
||||
Incentive fees
(2)
|
4
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
13
|
|
|
1
|
|
||||
Late payment fees
(2)
|
19
|
|
|
2
|
|
|
20
|
|
|
2
|
|
|
39
|
|
|
2
|
|
|
44
|
|
|
2
|
|
||||
Other ancillary revenues
(2)(3)
|
26
|
|
|
2
|
|
|
44
|
|
|
4
|
|
|
53
|
|
|
2
|
|
|
82
|
|
|
3
|
|
||||
Total forward MSR operational revenue
|
276
|
|
|
22
|
|
|
313
|
|
|
25
|
|
|
556
|
|
|
22
|
|
|
631
|
|
|
26
|
|
||||
Base subservicing fees and other subservicing revenue
(2)
|
37
|
|
|
3
|
|
|
29
|
|
|
3
|
|
|
74
|
|
|
3
|
|
|
52
|
|
|
2
|
|
||||
Reverse servicing fees
|
14
|
|
|
1
|
|
|
13
|
|
|
1
|
|
|
33
|
|
|
1
|
|
|
27
|
|
|
1
|
|
||||
Total servicing fee revenue
|
327
|
|
|
26
|
|
|
355
|
|
|
29
|
|
|
663
|
|
|
26
|
|
|
710
|
|
|
29
|
|
||||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Forward MSR amortization
|
(84
|
)
|
|
(7
|
)
|
|
(105
|
)
|
|
(8
|
)
|
|
(162
|
)
|
|
(7
|
)
|
|
(207
|
)
|
|
(8
|
)
|
||||
Excess spread accretion
|
36
|
|
|
3
|
|
|
40
|
|
|
3
|
|
|
66
|
|
|
3
|
|
|
82
|
|
|
3
|
|
||||
Reverse MSR amortization
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Total amortization
|
(48
|
)
|
|
(4
|
)
|
|
(66
|
)
|
|
(5
|
)
|
|
(96
|
)
|
|
(4
|
)
|
|
(127
|
)
|
|
(5
|
)
|
||||
MSR financing liability costs
|
(14
|
)
|
|
(1
|
)
|
|
(19
|
)
|
|
(2
|
)
|
|
(29
|
)
|
|
(1
|
)
|
|
(39
|
)
|
|
(2
|
)
|
||||
Excess spread costs - principal
|
(36
|
)
|
|
(2
|
)
|
|
(40
|
)
|
|
(3
|
)
|
|
(66
|
)
|
|
(2
|
)
|
|
(82
|
)
|
|
(3
|
)
|
||||
Total operational revenue
|
229
|
|
|
19
|
|
|
230
|
|
|
19
|
|
|
472
|
|
|
19
|
|
|
462
|
|
|
19
|
|
||||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
MSR MTM
(3)(4)
|
25
|
|
|
2
|
|
|
(108
|
)
|
|
(9
|
)
|
|
251
|
|
|
10
|
|
|
(114
|
)
|
|
(5
|
)
|
||||
Excess spread / financing MTM
|
(6
|
)
|
|
—
|
|
|
24
|
|
|
2
|
|
|
(80
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
—
|
|
||||
Total MTM adjustments
|
19
|
|
|
2
|
|
|
(84
|
)
|
|
(7
|
)
|
|
171
|
|
|
7
|
|
|
(116
|
)
|
|
(5
|
)
|
||||
Total revenues - Servicing
|
$
|
248
|
|
|
21
|
|
|
$
|
146
|
|
|
12
|
|
|
$
|
643
|
|
|
26
|
|
|
$
|
346
|
|
|
14
|
|
Table 5. Servicing Portfolio - Unpaid Principal Balances
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Average UPB:
|
|
|
|
|
|
|
|
||||||||
Forward MSRs
|
$
|
277,297
|
|
|
$
|
302,243
|
|
|
$
|
279,504
|
|
|
$
|
306,513
|
|
Subservicing and other
(1)
|
187,068
|
|
|
154,704
|
|
|
187,663
|
|
|
137,931
|
|
||||
Reverse portfolio
|
32,873
|
|
|
36,868
|
|
|
33,651
|
|
|
37,639
|
|
||||
Total average UPB
|
$
|
497,238
|
|
|
$
|
493,815
|
|
|
$
|
500,818
|
|
|
$
|
482,083
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
June 30,
|
||||||||||
|
|
|
|
|
2018
|
|
2017
|
||||||||
Ending UPB:
|
|
|
|
|
|
|
|
||||||||
Forward MSRs
|
|
|
|
|
|
|
|
||||||||
Agency
|
|
|
|
|
$
|
206,017
|
|
|
$
|
217,964
|
|
||||
Non-agency
|
|
|
|
|
72,088
|
|
|
78,380
|
|
||||||
Total Forward MSRs
|
|
|
|
|
278,105
|
|
|
296,344
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
||||||||
Agency
|
|
|
|
|
178,236
|
|
|
156,597
|
|
||||||
Non-agency
|
|
|
|
|
9,057
|
|
|
8,932
|
|
||||||
Total subservicing and other
|
|
|
|
|
187,293
|
|
|
165,529
|
|
||||||
|
|
|
|
|
|
|
|
||||||||
Reverse loans
|
|
|
|
|
|
|
|
||||||||
MSL
(2)
|
|
|
|
|
22,777
|
|
|
25,712
|
|
||||||
Securitized loans
|
|
|
|
|
9,487
|
|
|
10,589
|
|
||||||
Total reverse portfolio serviced
|
|
|
|
|
32,264
|
|
|
36,301
|
|
||||||
Total ending UPB
|
|
|
|
|
$
|
497,662
|
|
|
$
|
498,174
|
|
Table 6. Forward Loan Modifications and Workout Units
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Home Affordable Modification Program ("HAMP") modifications
|
9
|
|
|
2,243
|
|
|
31
|
|
|
6,575
|
|
Non-HAMP modifications
|
7,547
|
|
|
5,505
|
|
|
13,382
|
|
|
11,320
|
|
Workouts
(1)
|
7,159
|
|
|
7,274
|
|
|
21,252
|
|
|
14,879
|
|
Total modification and workout units
|
14,715
|
|
|
15,022
|
|
|
34,665
|
|
|
32,774
|
|
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio
(1)
|
June 30,
|
||||||
|
2018
|
|
2017
|
||||
Loan count
|
2,970,692
|
|
|
2,815,303
|
|
||
Average loan amount
(2)
|
$
|
156,688
|
|
|
$
|
164,087
|
|
Average coupon - credit sensitive
(3)
|
4.8
|
%
|
|
4.7
|
%
|
||
Average coupon - interest sensitive
(3)
|
4.2
|
%
|
|
4.2
|
%
|
||
60+ delinquent (% of loans)
(4)
|
2.8
|
%
|
|
3.5
|
%
|
||
90+ delinquent (% of loans)
(4)
|
2.5
|
%
|
|
3.2
|
%
|
||
120+ delinquent (% of loans)
(4)
|
2.3
|
%
|
|
2.9
|
%
|
||
Total prepayment speed (12 month constant pre-payment rate)
|
12.1
|
%
|
|
14.2
|
%
|
Table 8. Servicer Ratings
|
Fitch
|
|
Moody's
|
|
S&P
|
Rating date
|
August 2017
|
|
June 2017
|
|
January &
February 2018 |
|
|
|
|
|
|
Residential
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
Master Servicer
|
RMS2+
|
|
SQ2-
|
|
Above Average
|
Special Servicer
|
RSS2-
|
|
Not Rated
|
|
Above Average
|
Subprime Servicer
|
RPS2-
|
|
Not Rated
|
|
Above Average
|
|
|
|
|
|
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
|||||
Moody's Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)
|
|||||
S&P's Rating Scale of Strong to Weak
|
Table 9. Servicing - Expenses
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
||||||||
Salaries, wages and benefits
|
$
|
74
|
|
|
6
|
|
$
|
73
|
|
|
6
|
|
$
|
150
|
|
|
6
|
|
$
|
142
|
|
|
6
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Servicing support fees
|
35
|
|
|
3
|
|
38
|
|
|
3
|
|
62
|
|
|
2
|
|
71
|
|
|
3
|
||||
Corporate and other general and administrative expenses
|
32
|
|
|
2
|
|
33
|
|
|
3
|
|
63
|
|
|
3
|
|
66
|
|
|
2
|
||||
Foreclosure and other liquidation related expenses
|
19
|
|
|
2
|
|
24
|
|
|
2
|
|
60
|
|
|
2
|
|
39
|
|
|
2
|
||||
Depreciation and amortization
|
6
|
|
|
—
|
|
5
|
|
|
—
|
|
13
|
|
|
1
|
|
10
|
|
|
—
|
||||
Total general and administrative expenses
|
92
|
|
|
7
|
|
100
|
|
|
8
|
|
198
|
|
|
8
|
|
186
|
|
|
7
|
||||
Total expenses - Servicing
|
$
|
166
|
|
|
13
|
|
$
|
173
|
|
|
14
|
|
$
|
348
|
|
|
14
|
|
$
|
328
|
|
|
13
|
Table 10. Servicing - Other Income (Expenses), Net
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
|
Amounts
|
|
bps
|
||||||||||||
Reverse mortgage interest income
|
$
|
118
|
|
|
10
|
|
|
$
|
115
|
|
|
9
|
|
|
$
|
237
|
|
|
10
|
|
|
$
|
233
|
|
|
10
|
|
Other interest income
|
3
|
|
|
—
|
|
|
8
|
|
|
1
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
||||
Interest income
|
121
|
|
|
10
|
|
|
123
|
|
|
10
|
|
|
247
|
|
|
10
|
|
|
243
|
|
|
10
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reverse mortgage interest expense
|
(95
|
)
|
|
(8
|
)
|
|
(99
|
)
|
|
(8
|
)
|
|
(191
|
)
|
|
(7
|
)
|
|
(198
|
)
|
|
(8
|
)
|
||||
Advance interest expense
|
(12
|
)
|
|
(1
|
)
|
|
(9
|
)
|
|
(1
|
)
|
|
(17
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|
(1
|
)
|
||||
Other interest expense
|
(8
|
)
|
|
(1
|
)
|
|
(30
|
)
|
|
(2
|
)
|
|
(25
|
)
|
|
(1
|
)
|
|
(61
|
)
|
|
(2
|
)
|
||||
Interest expense
|
(115
|
)
|
|
(10
|
)
|
|
(138
|
)
|
|
(11
|
)
|
|
(233
|
)
|
|
(9
|
)
|
|
(277
|
)
|
|
(11
|
)
|
||||
Other expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total other income (expenses), net - Servicing
|
$
|
6
|
|
|
—
|
|
|
$
|
(15
|
)
|
|
(1
|
)
|
|
$
|
13
|
|
|
1
|
|
|
$
|
(34
|
)
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average cost - advance facilities
|
4.0
|
%
|
|
|
|
3.1
|
%
|
|
|
|
3.9
|
%
|
|
|
|
3.1
|
%
|
|
|
||||||||
Weighted average cost - excess spread financing
|
8.8
|
%
|
|
|
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
|
8.9
|
%
|
|
|
Table 11. Serviced Portfolios and Related Liabilities
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
||||||||||
Forward MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
206,017
|
|
|
$
|
2,647
|
|
|
4.5
|
%
|
|
$
|
202,868
|
|
|
$
|
2,251
|
|
|
4.5
|
%
|
Non-agency
|
72,088
|
|
|
709
|
|
|
4.7
|
%
|
|
78,512
|
|
|
686
|
|
|
4.6
|
%
|
||||
Total Forward MSRs - fair value
|
278,105
|
|
|
3,356
|
|
|
4.5
|
%
|
|
281,380
|
|
|
2,937
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
178,236
|
|
|
N/A
|
|
|
N/A
|
|
|
183,519
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
9,057
|
|
|
N/A
|
|
|
N/A
|
|
|
8,357
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
187,293
|
|
|
N/A
|
|
|
N/A
|
|
|
191,876
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSL
(2)
|
22,777
|
|
|
(27
|
)
|
|
N/A
|
|
|
25,124
|
|
|
(37
|
)
|
|
N/A
|
|
||||
Securitized loans
|
9,487
|
|
|
9,477
|
|
|
N/A
|
|
|
9,988
|
|
|
9,984
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
32,264
|
|
|
9,450
|
|
|
N/A
|
|
|
35,112
|
|
|
9,947
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
497,662
|
|
|
$
|
12,806
|
|
|
N/A
|
|
|
$
|
508,368
|
|
|
$
|
12,884
|
|
|
N/A
|
|
Table 12. Fair Value MSR Valuation
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||
|
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
||||||||
MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
$
|
153,552
|
|
|
$
|
1,695
|
|
|
110
|
|
$
|
167,605
|
|
|
$
|
1,572
|
|
|
94
|
Interest sensitive - agency
|
124,553
|
|
|
1,661
|
|
|
133
|
|
113,775
|
|
|
1,365
|
|
|
120
|
||||
Total MSRs - fair value
|
$
|
278,105
|
|
|
$
|
3,356
|
|
|
121
|
|
$
|
281,380
|
|
|
$
|
2,937
|
|
|
104
|
Table 13. MSRs - Fair Value, Roll Forward
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fair value - beginning of period
|
$
|
3,194
|
|
|
$
|
3,168
|
|
|
$
|
2,937
|
|
|
$
|
3,160
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
Servicing retained from mortgage loans sold
|
71
|
|
|
44
|
|
|
139
|
|
|
103
|
|
||||
Purchases of servicing rights
|
113
|
|
|
8
|
|
|
132
|
|
|
13
|
|
||||
Dispositions:
|
|
|
|
|
|
|
|
||||||||
Sales of servicing rights
(1)
|
4
|
|
|
2
|
|
|
4
|
|
|
2
|
|
||||
Changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
11
|
|
|
(46
|
)
|
|
192
|
|
|
(9
|
)
|
||||
Interest sensitive
|
33
|
|
|
(42
|
)
|
|
91
|
|
|
(65
|
)
|
||||
Other changes in fair value:
|
|
|
|
|
|
|
|
||||||||
Scheduled principal payments
|
(19
|
)
|
|
(20
|
)
|
|
(38
|
)
|
|
(42
|
)
|
||||
Disposition of negative MSRs and other
(2)
|
14
|
|
|
15
|
|
|
23
|
|
|
48
|
|
||||
Prepayments
|
|
|
|
|
|
|
|
||||||||
Voluntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(31
|
)
|
|
(45
|
)
|
|
(61
|
)
|
|
(89
|
)
|
||||
Interest sensitive
|
(25
|
)
|
|
(27
|
)
|
|
(46
|
)
|
|
(50
|
)
|
||||
Involuntary prepayments
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
(5
|
)
|
|
(7
|
)
|
|
(10
|
)
|
|
(16
|
)
|
||||
Interest sensitive
|
(4
|
)
|
|
(4
|
)
|
|
(7
|
)
|
|
(9
|
)
|
||||
Fair value - end of period
|
$
|
3,356
|
|
|
$
|
3,046
|
|
|
$
|
3,356
|
|
|
$
|
3,046
|
|
Table 14. MSRs - Fair Value
|
June 30,
|
||||
|
2018
|
|
2017
|
||
Credit Sensitive MSRs
|
|
|
|
||
Discount rate
|
11.4
|
%
|
|
11.4
|
%
|
Weighted average prepayment speeds
|
11.7
|
%
|
|
15.8
|
%
|
Weighted average life of loans
|
6.6 years
|
|
|
5.9 years
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
||
Discount rate
|
9.2
|
%
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
9.8
|
%
|
|
11.3
|
%
|
Weighted average life of loans
|
7.0 years
|
|
|
6.5 years
|
|
Table 15. Excess Spread Financing
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fair value - beginning of period
|
$
|
1,001
|
|
|
$
|
1,181
|
|
|
$
|
996
|
|
|
$
|
1,214
|
|
Additions:
|
|
|
|
|
|
|
|
||||||||
New financings
|
70
|
|
|
—
|
|
|
70
|
|
|
—
|
|
||||
Deductions:
|
|
|
|
|
|
|
|
||||||||
Repayments of debt
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Settlements of principal balances
|
(46
|
)
|
|
(50
|
)
|
|
(91
|
)
|
|
(108
|
)
|
||||
Fair value changes:
|
|
|
|
|
|
|
|
||||||||
Credit Sensitive
|
20
|
|
|
(3
|
)
|
|
66
|
|
|
17
|
|
||||
Interest Sensitive
|
4
|
|
|
(7
|
)
|
|
8
|
|
|
(2
|
)
|
||||
Fair value - end of period
|
$
|
1,047
|
|
|
$
|
1,121
|
|
|
$
|
1,047
|
|
|
$
|
1,121
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
June 30,
|
||||||||||
Key Assumptions
|
|
|
|
|
2018
|
|
2017
|
||||||||
Weighted average prepayment speeds
|
|
|
|
|
11.1
|
%
|
|
14.3
|
%
|
||||||
Weighted average life of loans
|
|
|
|
|
6.5 years
|
|
|
6.1 years
|
|
||||||
Discount rate
|
|
|
|
|
10.6
|
%
|
|
10.8
|
%
|
||||||
|
|
|
|
|
|
|
|
||||||||
Credit Sensitive
|
|
|
|
|
|
|
|
||||||||
Mortgage prepayment speeds
|
|
|
|
|
11.4
|
%
|
|
14.9
|
%
|
||||||
Average life of mortgage loans
|
|
|
|
|
6.5 years
|
|
|
6.0 years
|
|
||||||
Discount rate
|
|
|
|
|
11.1
|
%
|
|
11.1
|
%
|
||||||
|
|
|
|
|
|
|
|
||||||||
Interest Sensitive
|
|
|
|
|
|
|
|
||||||||
Mortgage prepayment speeds
|
|
|
|
|
9.9
|
%
|
|
11.5
|
%
|
||||||
Average life of mortgage loans
|
|
|
|
|
6.8 years
|
|
|
6.3 years
|
|
||||||
Discount rate
|
|
|
|
|
9.0
|
%
|
|
9.0
|
%
|
Table 16. MSRs Financing Liability - Rollforward
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Fair value - beginning of period
|
$
|
34
|
|
|
$
|
28
|
|
|
$
|
10
|
|
|
$
|
27
|
|
Changes in fair value:
(1)
|
|
|
|
|
|
|
|
||||||||
Changes in valuation inputs or assumptions used in the valuation model
|
(14
|
)
|
|
(16
|
)
|
|
11
|
|
|
(15
|
)
|
||||
Other changes in fair value
|
(4
|
)
|
|
1
|
|
|
(5
|
)
|
|
1
|
|
||||
Fair value - end of period
|
$
|
16
|
|
|
$
|
13
|
|
|
$
|
16
|
|
|
$
|
13
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
June 30,
|
||||||||||
|
|
|
|
|
2018
|
|
2017
|
||||||||
Weighted Average Assumptions
|
|
|
|
|
|
|
|
||||||||
Advance financing rates
|
|
|
|
|
4.1
|
%
|
|
3.4
|
%
|
||||||
Annual advance recovery rates
|
|
|
|
|
18.9
|
%
|
|
26.0
|
%
|
Table 17. Leveraged Portfolio Characteristics
|
June 30,
|
||||||
|
2018
|
|
2017
|
||||
Owned forward servicing portfolio - unencumbered
|
$
|
91,619
|
|
|
$
|
78,178
|
|
Owned forward servicing portfolio - encumbered
|
186,486
|
|
|
218,166
|
|
||
Subserviced forward servicing portfolio and other
|
187,293
|
|
|
165,529
|
|
||
Total unpaid principal balance
|
$
|
465,398
|
|
|
$
|
461,873
|
|
Table 18. Reverse - Mortgage Portfolio Characteristics
|
June 30, 2018
|
|
December 31, 2017
|
||||
Loan count
|
205,438
|
|
|
212,415
|
|
||
Ending unpaid principal balance
|
$
|
32,264
|
|
|
$
|
35,112
|
|
Average loan amount
(1)
|
$
|
157,050
|
|
|
$
|
165,299
|
|
Average coupon
|
4.2
|
%
|
|
3.8
|
%
|
||
Average borrower age
|
79
|
|
|
79
|
|
Table 19. Originations - Operations
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
$
|
133
|
|
|
$
|
158
|
|
|
$
|
261
|
|
|
$
|
299
|
|
Expenses
|
102
|
|
|
103
|
|
|
211
|
|
|
220
|
|
||||
Other income (expenses), net
|
1
|
|
|
(2
|
)
|
|
1
|
|
|
(1
|
)
|
||||
Income before income tax expense
|
$
|
32
|
|
|
$
|
53
|
|
|
$
|
51
|
|
|
$
|
78
|
|
Income before taxes margin
|
24.1
|
%
|
|
33.5
|
%
|
|
19.5
|
%
|
|
26.1
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue
|
$
|
133
|
|
|
$
|
158
|
|
|
$
|
261
|
|
|
$
|
299
|
|
Pull through adjusted lock volume
|
$
|
5,440
|
|
|
$
|
4,200
|
|
|
$
|
10,302
|
|
|
$
|
8,008
|
|
Revenue basis points
(1)
|
2.44
|
%
|
|
3.76
|
%
|
|
2.53
|
%
|
|
3.73
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Expenses
|
$
|
102
|
|
|
$
|
103
|
|
|
$
|
211
|
|
|
$
|
220
|
|
Funded volume
|
$
|
5,543
|
|
|
$
|
4,254
|
|
|
$
|
10,630
|
|
|
$
|
8,887
|
|
Expenses basis points
(2)
|
1.84
|
%
|
|
2.42
|
%
|
|
1.98
|
%
|
|
2.48
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Margin
|
0.60
|
%
|
|
1.34
|
%
|
|
0.55
|
%
|
|
1.25
|
%
|
Table 20. Originations - Revenues
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service related, net - Originations
|
$
|
17
|
|
|
$
|
15
|
|
|
$
|
32
|
|
|
$
|
31
|
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||||
Gain on loans originated and sold
|
45
|
|
|
106
|
|
|
101
|
|
|
204
|
|
||||
Fair value adjustment on loans held for sale
|
6
|
|
|
(10
|
)
|
|
1
|
|
|
10
|
|
||||
Mark-to-market on locks and commitments
(1)
|
3
|
|
|
(10
|
)
|
|
2
|
|
|
(22
|
)
|
||||
Mark-to-market on derivative/hedges
|
(6
|
)
|
|
16
|
|
|
(8
|
)
|
|
(24
|
)
|
||||
Capitalized servicing rights
|
69
|
|
|
40
|
|
|
134
|
|
|
97
|
|
||||
Provision of repurchase reserves, net of release
|
(1
|
)
|
|
1
|
|
|
(1
|
)
|
|
3
|
|
||||
Total net gain on mortgage loans held for sale
|
116
|
|
|
143
|
|
|
229
|
|
|
268
|
|
||||
Total revenues - Originations
|
$
|
133
|
|
|
$
|
158
|
|
|
$
|
261
|
|
|
$
|
299
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Consumer direct lock pull through adjusted volume
(2)
|
$
|
2,552
|
|
|
$
|
2,769
|
|
|
$
|
5,294
|
|
|
$
|
5,463
|
|
Other locked pull through adjusted volume
(2)
|
2,888
|
|
|
1,431
|
|
|
5,008
|
|
|
2,545
|
|
||||
Total pull through adjusted volume
|
$
|
5,440
|
|
|
$
|
4,200
|
|
|
$
|
10,302
|
|
|
$
|
8,008
|
|
Funded volume
|
$
|
5,543
|
|
|
$
|
4,254
|
|
|
$
|
10,630
|
|
|
$
|
8,887
|
|
Funded HARP volume
|
$
|
324
|
|
|
$
|
937
|
|
|
$
|
760
|
|
|
$
|
2,160
|
|
Recapture percentage
|
21.8
|
%
|
|
24.2
|
%
|
|
24.3
|
%
|
|
28.0
|
%
|
||||
Purchase percentage of funded volume
|
51.3
|
%
|
|
28.6
|
%
|
|
45.8
|
%
|
|
24.2
|
%
|
||||
Value of capitalized servicing
|
126 bps
|
|
|
96 bps
|
|
|
125 bps
|
|
|
106 bps
|
|
Table 21. Originations - Expenses
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Salaries, wages and benefits
|
$
|
61
|
|
|
$
|
59
|
|
|
$
|
127
|
|
|
$
|
129
|
|
General and administrative
|
|
|
|
|
|
|
|
||||||||
Loan origination expenses
|
13
|
|
|
13
|
|
|
27
|
|
|
33
|
|
||||
Corporate and other general and administrative expenses
|
12
|
|
|
14
|
|
|
23
|
|
|
26
|
|
||||
Marketing and professional service fee
|
13
|
|
|
14
|
|
|
28
|
|
|
27
|
|
||||
Depreciation and amortization
|
3
|
|
|
3
|
|
|
6
|
|
|
5
|
|
||||
Total general and administrative
|
41
|
|
|
44
|
|
|
84
|
|
|
91
|
|
||||
Total expenses - Originations
|
$
|
102
|
|
|
$
|
103
|
|
|
$
|
211
|
|
|
$
|
220
|
|
Table 22. Originations - Other Income (Expenses), Net
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest income
|
$
|
17
|
|
|
$
|
11
|
|
|
$
|
32
|
|
|
$
|
25
|
|
Interest expense
|
(16
|
)
|
|
(13
|
)
|
|
(31
|
)
|
|
(26
|
)
|
||||
Total other income, net - Originations
|
$
|
1
|
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average note rate - mortgage loans held for sale
|
4.7
|
%
|
|
4.2
|
%
|
|
4.5
|
%
|
|
4.2
|
%
|
||||
Weighted average cost of funds (excluding facility fees)
|
4.4
|
%
|
|
3.5
|
%
|
|
4.2
|
%
|
|
3.4
|
%
|
Table 23. Repurchase Reserves
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Repurchase reserves - beginning of period
|
$
|
9
|
|
|
$
|
15
|
|
|
$
|
9
|
|
|
$
|
18
|
|
Provisions
|
2
|
|
|
1
|
|
|
3
|
|
|
3
|
|
||||
Releases
|
(2
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|
(6
|
)
|
||||
Charge-offs
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||
Repurchase reserves - end of period
|
$
|
9
|
|
|
$
|
14
|
|
|
$
|
9
|
|
|
$
|
14
|
|
Table 24. Xome - Operations
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
$
|
62
|
|
|
$
|
76
|
|
|
$
|
127
|
|
|
$
|
161
|
|
Expenses
|
52
|
|
|
67
|
|
|
104
|
|
|
139
|
|
||||
Other income (expenses), net
|
—
|
|
|
8
|
|
|
9
|
|
|
8
|
|
||||
Income before income tax expense
|
$
|
10
|
|
|
$
|
17
|
|
|
$
|
32
|
|
|
$
|
30
|
|
Income before taxes margin - Xome
|
16.1
|
%
|
|
22.4
|
%
|
|
25.2
|
%
|
|
18.6
|
%
|
Table 25. Xome - Revenues
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Exchange
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
53
|
|
|
$
|
58
|
|
Services
|
30
|
|
|
41
|
|
|
63
|
|
|
88
|
|
||||
SaaS
|
5
|
|
|
8
|
|
|
11
|
|
|
15
|
|
||||
Total revenues - Xome
|
$
|
62
|
|
|
$
|
76
|
|
|
$
|
127
|
|
|
$
|
161
|
|
|
|
|
|
|
|
|
|
||||||||
Key Metrics
|
|
|
|
|
|
|
|
||||||||
Property listings sold
|
3,112
|
|
|
3,074
|
|
|
5,992
|
|
|
6,488
|
|
||||
REO listings at period end
|
3,619
|
|
|
4,174
|
|
|
3,619
|
|
|
4,174
|
|
||||
Xome services completed orders
|
117,093
|
|
|
107,220
|
|
|
228,432
|
|
|
226,970
|
|
||||
Percentage of revenue earned from third party customers
(1)
|
28.0
|
%
|
|
21.6
|
%
|
|
27.5
|
%
|
|
23.8
|
%
|
Table 26. Xome - Expenses
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Salaries, wages and benefits
|
$
|
25
|
|
|
$
|
34
|
|
|
$
|
49
|
|
|
$
|
71
|
|
General and administrative
|
|
|
|
|
|
|
|
||||||||
Operational expenses
|
24
|
|
|
28
|
|
|
49
|
|
|
59
|
|
||||
Depreciation and amortization
|
3
|
|
|
3
|
|
|
6
|
|
|
7
|
|
||||
Loss on impairment of assets
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||
Total general and administrative
|
27
|
|
|
33
|
|
|
55
|
|
|
68
|
|
||||
Total expenses - Xome
|
$
|
52
|
|
|
$
|
67
|
|
|
$
|
104
|
|
|
$
|
139
|
|
Table 27. Corporate and Other - Operations
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenues
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
1
|
|
|
$
|
1
|
|
Expenses
|
19
|
|
|
24
|
|
|
40
|
|
|
49
|
|
||||
Other income (expenses), net
|
(33
|
)
|
|
(33
|
)
|
|
(67
|
)
|
|
(70
|
)
|
||||
Loss before income tax benefit
|
$
|
(51
|
)
|
|
$
|
(57
|
)
|
|
$
|
(106
|
)
|
|
$
|
(118
|
)
|
Table 28. Legacy Portfolio
|
June 30, 2018
|
|
December 31, 2017
|
||||
Performing - UPB
|
$
|
145
|
|
|
$
|
153
|
|
Nonperforming (90+ delinquency) - UPB
|
37
|
|
|
39
|
|
||
REO - estimated fair value
|
2
|
|
|
1
|
|
||
Total legacy portfolio
|
$
|
184
|
|
|
$
|
193
|
|
Table 29. Corporate and Other - Expenses
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Salaries, wages and benefits
|
$
|
17
|
|
|
$
|
16
|
|
|
$
|
31
|
|
|
$
|
30
|
|
General and administrative
|
|
|
|
|
|
|
|
||||||||
Operational expenses
|
—
|
|
|
4
|
|
|
5
|
|
|
12
|
|
||||
Depreciation and amortization
|
2
|
|
|
4
|
|
|
4
|
|
|
7
|
|
||||
Total general and administrative
|
2
|
|
|
8
|
|
|
9
|
|
|
19
|
|
||||
Total expenses - Corporate and Other
|
$
|
19
|
|
|
$
|
24
|
|
|
$
|
40
|
|
|
$
|
49
|
|
Table 30. Corporate and Other - Other Income (Expenses), Net
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest income, legacy portfolio
|
$
|
3
|
|
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, legacy portfolio
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
||||
Interest expense on unsecured senior notes
|
(31
|
)
|
|
(36
|
)
|
|
(66
|
)
|
|
(73
|
)
|
||||
Other interest, net
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
|
(2
|
)
|
||||
Total interest expense
|
(34
|
)
|
|
(37
|
)
|
|
(71
|
)
|
|
(78
|
)
|
||||
Other income (expense)
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(2
|
)
|
||||
Other income (expenses), net - Corporate and Other
|
$
|
(33
|
)
|
|
$
|
(33
|
)
|
|
$
|
(67
|
)
|
|
$
|
(70
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average cost - unsecured senior notes
|
7.3
|
%
|
|
7.4
|
%
|
|
7.3
|
%
|
|
7.4
|
%
|
Table 31. Assets
|
June 30, 2018
|
|
December 31, 2017
|
|
% Change
|
|||||
Cash and cash equivalents
|
$
|
185
|
|
|
$
|
215
|
|
|
(14.0
|
)%
|
Mortgage servicing rights
|
3,356
|
|
|
2,941
|
|
|
14.1
|
%
|
||
Advances and other receivables, net
|
1,317
|
|
|
1,706
|
|
|
(22.8
|
)%
|
||
Reverse mortgage interests, net
|
9,477
|
|
|
9,984
|
|
|
(5.1
|
)%
|
||
Mortgage loans held for sale at fair value
|
1,635
|
|
|
1,891
|
|
|
(13.5
|
)%
|
||
Other
|
1,220
|
|
|
1,299
|
|
|
(6.1
|
)%
|
||
Total assets
|
$
|
17,190
|
|
|
$
|
18,036
|
|
|
(4.7
|
)%
|
Table 32. Liabilities and Stockholders' Equity
|
June 30, 2018
|
|
December 31, 2017
|
|
% Change
|
|||||
Unsecured senior notes, net
|
$
|
1,815
|
|
|
$
|
1,874
|
|
|
(3.1
|
)%
|
Advance facilities, net
|
516
|
|
|
855
|
|
|
(39.6
|
)%
|
||
Warehouse facilities, net
|
3,086
|
|
|
3,285
|
|
|
(6.1
|
)%
|
||
MSR related liabilities - nonrecourse at fair value
|
1,063
|
|
|
1,006
|
|
|
5.7
|
%
|
||
Other nonrecourse debt, net
|
7,445
|
|
|
8,014
|
|
|
(7.1
|
)%
|
||
Other liabilities
|
1,324
|
|
|
1,280
|
|
|
3.4
|
%
|
||
Total liabilities
|
15,249
|
|
|
16,314
|
|
|
(6.5
|
)%
|
||
Total stockholders' equity attributable to Nationstar
|
1,940
|
|
|
1,715
|
|
|
13.1
|
%
|
||
Noncontrolling interest
|
1
|
|
|
7
|
|
|
(85.7
|
)%
|
||
Total liabilities and stockholders' equity
|
$
|
17,190
|
|
|
$
|
18,036
|
|
|
(4.7
|
)%
|
Table 33. Operating Cash Flow
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Originations net sales activities
|
$
|
386
|
|
|
$
|
511
|
|
Cash provided by operating profits and changes in working capital and other assets
|
1,483
|
|
|
360
|
|
||
Net cash attributable to operating activities
|
$
|
1,869
|
|
|
$
|
871
|
|
Table 34. Investing Cash Flows
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
$
|
(123
|
)
|
|
$
|
(13
|
)
|
Proceeds on sale of assets
|
13
|
|
|
16
|
|
||
Other
|
(32
|
)
|
|
(27
|
)
|
||
Net cash attributable to investing activities
|
$
|
(142
|
)
|
|
$
|
(24
|
)
|
Table 35. Financing Cash Flow
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Decrease in advance facilities
|
$
|
(339
|
)
|
|
$
|
(214
|
)
|
Changes in warehouse facilities
|
(199
|
)
|
|
100
|
|
||
Payment of senior unsecured notes and nonrecourse debt
|
(75
|
)
|
|
(110
|
)
|
||
Issuance of excess spread financing
|
70
|
|
|
—
|
|
||
Repayment of excess spread financing
|
(93
|
)
|
|
(109
|
)
|
||
Decrease in participating interest financing in reverse mortgage interests
|
(1,184
|
)
|
|
(905
|
)
|
||
HECM securitizations
|
20
|
|
|
132
|
|
||
Other
|
(7
|
)
|
|
(10
|
)
|
||
Net cash attributable to financing activities
|
$
|
(1,807
|
)
|
|
$
|
(1,116
|
)
|
▪
|
Base of $2.5 plus 25 basis points of UPB for total loans serviced.
|
▪
|
Tangible Net Worth comprises total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets.
|
▪
|
Tangible Net Worth/Total Assets greater than 6%.
|
▪
|
3.5 basis points of total Agency servicing (Fannie Mae, Freddie Mac, Ginnie Mae) plus,
|
▪
|
Incremental 200 basis points of total nonperforming Agency, measured as 90+ delinquencies, servicing in excess of 6% of the total Agency servicing UPB,
|
▪
|
Allowable assets for liquidity may include: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines.
|
Table 36. Debt
|
June 30, 2018
|
|
December 31, 2017
|
||||
Advance facilities, net
|
$
|
516
|
|
|
$
|
855
|
|
Warehouse facilities, net
|
3,086
|
|
|
3,285
|
|
||
Unsecured senior notes, net
|
1,815
|
|
|
1,874
|
|
Year Ending December 31,
|
|
Amount
|
||
2018
(1)
|
|
$
|
364
|
|
2019
(2)
|
|
266
|
|
|
2020
(1)
|
|
394
|
|
|
2021
|
|
595
|
|
|
2022
|
|
206
|
|
|
Unsecured senior notes principal amount
|
|
1,825
|
|
|
Unamortized debt issuance costs
|
|
(10
|
)
|
|
Unsecured senior notes, net
|
|
$
|
1,815
|
|
(in thousands except Average Price Paid per Share)
|
|||||||||||||
Period
|
(a) Total Number of Shares (or Units) Purchased
(in thousands)
|
|
(b) Average Price Paid per Share (or Unit)
|
|
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
(1)
(in thousands)
|
|
(d) Maximum Number (or Appropriate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Program
(in millions)
|
||||||
April 1 - 30, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
May 1 - 31, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
June 1 - 30, 2018
|
73
|
|
(1)
|
$
|
17.94
|
|
|
—
|
|
|
$
|
—
|
|
Total
|
73
|
|
|
|
|
—
|
|
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
4.1
|
8-K
|
001-35449
|
4.1
|
06/22/2018
|
|
|
4.2
|
8-K
|
001-35449
|
4.2
|
06/22/2018
|
|
|
10.1
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
X
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
X
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
X
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
X
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
X
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
NATIONSTAR MORTGAGE HOLDINGS INC.
|
|
|
|
August 3, 2018
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
August 3, 2018
|
|
/s/ Amar R. Patel
|
Date
|
|
Amar R. Patel
Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the three and six months ended
June 30, 2018
of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
August 3, 2018
|
|
|
|
/s/ Jay Bray
|
|
|
|
|
Jay Bray
|
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q for the three and six months ended
June 30, 2018
of Nationstar Mortgage Holdings Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 15(e) and 15d - 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a - 15(f) and 15d - 15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
|
|
Date:
|
August 3, 2018
|
|
|
|
/s/ Amar R. Patel
|
|
|
|
|
Amar R. Patel
|
|
|
|
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
August 3, 2018
|
|
|
/s/ Jay Bray
|
||
|
Jay Bray
|
||
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
Date:
|
August 3, 2018
|
|
/s/ Amar R. Patel
|
|
|
Amar R. Patel
|
|
|
Chief Financial Officer
|