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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Mr Cooper Group Inc | NASDAQ:COOP | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.26 | -0.33% | 78.50 | 78.34 | 79.40 | 79.5932 | 78.545 | 79.00 | 369,416 | 01:00:00 |
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
91-1653725
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
8950 Cypress Waters Blvd, Coppell, TX
|
|
75019
|
(Address of principal executive offices)
|
|
(Zip Code)
|
|
|
|
(469) 549-2000
|
||
Registrant’s telephone number, including area code
|
||
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock, $0.01 par value per share
|
COOP
|
The Nasdaq Stock Market
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
x
|
Non-Accelerated Filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
Emerging growth company
|
¨
|
|
|
Page
|
PART I
|
|
|
|
|
|
Item 1.
|
||
|
|
|
|
Consolidated Balance Sheets as of March 31, 2019 (unaudited) and December 31, 2018 (Successor)
|
|
|
|
|
|
Consolidated Statements of Operations (unaudited) for the
Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018
|
|
|
|
|
|
Consolidated Statements of Stockholders’ Equity (unaudited) for
the Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018
|
|
|
|
|
|
Consolidated Statements of Cash Flows (unaudited) for
the Successor’s Three Months Ended March 31, 2019 and the Predecessor’s Three Months Ended March 31, 2018
|
|
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
PART II
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
181
|
|
|
$
|
242
|
|
Restricted cash
|
339
|
|
|
319
|
|
||
Mortgage servicing rights, $3,481 and $3,665 at fair value, respectively
|
3,488
|
|
|
3,676
|
|
||
Advances and other receivables, net of reserves of $
71
and $47, respectively
|
1,147
|
|
|
1,194
|
|
||
Reverse mortgage interests, net of reserves of $8 and $13, respectively
|
7,489
|
|
|
7,934
|
|
||
Mortgage loans held for sale at fair value
|
2,170
|
|
|
1,631
|
|
||
Mortgage loans held for investment at fair value
|
118
|
|
|
119
|
|
||
Property and equipment, net of accumulated depreciation of $27 and $16, respectively
|
112
|
|
|
96
|
|
||
Deferred tax asset, net
|
1,024
|
|
|
967
|
|
||
Other assets
|
1,578
|
|
|
795
|
|
||
Total assets
|
$
|
17,646
|
|
|
$
|
16,973
|
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Unsecured senior notes, net
|
$
|
2,461
|
|
|
$
|
2,459
|
|
Advance facilities, net
|
578
|
|
|
595
|
|
||
Warehouse facilities, net
|
3,050
|
|
|
2,349
|
|
||
Payables and other liabilities
|
1,975
|
|
|
1,543
|
|
||
MSR related liabilities - nonrecourse at fair value
|
1,343
|
|
|
1,216
|
|
||
Mortgage servicing liabilities
|
90
|
|
|
71
|
|
||
Other nonrecourse debt, net
|
6,388
|
|
|
6,795
|
|
||
Total liabilities
|
15,885
|
|
|
15,028
|
|
||
Commitments and contingencies (Note 18)
|
|
|
|
|
|
||
Preferred stock at $0.00001 - 10 million shares authorized, 1 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively
|
—
|
|
|
—
|
|
||
Common stock at $0.01 par value - 300 million shares authorized, 91.0 million and 90.8 million shares issued, respectively
|
1
|
|
|
1
|
|
||
Additional paid-in-capital
|
1,095
|
|
|
1,093
|
|
||
Retained earnings
|
662
|
|
|
848
|
|
||
Total Mr. Cooper stockholders’ equity
|
1,758
|
|
|
1,942
|
|
||
Non-controlling interests
|
3
|
|
|
3
|
|
||
Total stockholders’ equity
|
1,761
|
|
|
1,945
|
|
||
Total liabilities and stockholders’ equity
|
$
|
17,646
|
|
|
$
|
16,973
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Revenues:
|
|
|
|
|
||||
Service related, net
|
$
|
84
|
|
|
|
$
|
464
|
|
Net gain on mortgage loans held for sale
|
166
|
|
|
|
124
|
|
||
Total revenues
|
250
|
|
|
|
588
|
|
||
Expenses:
|
|
|
|
|
||||
Salaries, wages and benefits
|
215
|
|
|
|
180
|
|
||
General and administrative
|
228
|
|
|
|
184
|
|
||
Total expenses
|
443
|
|
|
|
364
|
|
||
Other income (expenses):
|
|
|
|
|
||||
Interest income
|
134
|
|
|
|
145
|
|
||
Interest expense
|
(189
|
)
|
|
|
(171
|
)
|
||
Other income (expenses)
|
15
|
|
|
|
8
|
|
||
Total other income (expenses), net
|
(40
|
)
|
|
|
(18
|
)
|
||
(Loss) income before income tax expense (benefit)
|
(233
|
)
|
|
|
206
|
|
||
Less: Income tax (benefit) expense
|
(47
|
)
|
|
|
46
|
|
||
Net (loss) income
|
(186
|
)
|
|
|
160
|
|
||
Less: Net (loss) income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
||
Net (loss) income attributable to Successor/Predecessor
|
(186
|
)
|
|
|
160
|
|
||
Less: Undistributed earnings attributable to participating stockholders
|
—
|
|
|
|
—
|
|
||
Net (loss) income attributable to common stockholders
|
$
|
(186
|
)
|
|
|
$
|
160
|
|
|
|
|
|
|
||||
Net (loss) income per common share attributable to Successor/Predecessor:
|
|
|
|
|
||||
Basic
|
$
|
(2.05
|
)
|
|
|
$
|
1.63
|
|
Diluted
|
$
|
(2.05
|
)
|
|
|
$
|
1.61
|
|
|
Preferred Stock
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Shares
(in thousands) |
|
Amount
|
|
Shares
(in thousands)
|
|
Amount
|
|
Additional Paid-in Capital
|
|
Retained Earnings
|
|
Treasury Share Amount
|
|
Total Nationstar Stockholders’
Equity and
Mr. Cooper Stockholders’ Equity, respectively
|
|
Non-controlling Interests
|
|
Total
Equity
|
||||||||||||||||||
Predecessor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2018
|
—
|
|
|
$
|
—
|
|
|
97,728
|
|
|
$
|
1
|
|
|
$
|
1,131
|
|
|
$
|
731
|
|
|
$
|
(148
|
)
|
|
$
|
1,715
|
|
|
$
|
7
|
|
|
$
|
1,722
|
|
Shares issued / (surrendered) under incentive compensation plan
|
—
|
|
|
—
|
|
|
465
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160
|
|
|
—
|
|
|
160
|
|
|
—
|
|
|
160
|
|
||||||||
Balance at March 31, 2018
|
—
|
|
|
$
|
—
|
|
|
98,193
|
|
|
$
|
1
|
|
|
$
|
1,131
|
|
|
$
|
891
|
|
|
$
|
(148
|
)
|
|
$
|
1,875
|
|
|
$
|
7
|
|
|
$
|
1,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Successor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Balance at January 1, 2019
|
1,000
|
|
|
$
|
—
|
|
|
90,821
|
|
|
$
|
1
|
|
|
$
|
1,093
|
|
|
$
|
848
|
|
|
$
|
—
|
|
|
$
|
1,942
|
|
|
$
|
3
|
|
|
$
|
1,945
|
|
Shares issued under incentive compensation plan
|
—
|
|
|
—
|
|
|
221
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
||||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
4
|
|
||||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(186
|
)
|
|
—
|
|
|
(186
|
)
|
|
—
|
|
|
(186
|
)
|
||||||||
Balance at March 31, 2019
|
1,000
|
|
|
$
|
—
|
|
|
91,042
|
|
|
$
|
1
|
|
|
$
|
1,095
|
|
|
$
|
662
|
|
|
$
|
—
|
|
|
$
|
1,758
|
|
|
$
|
3
|
|
|
$
|
1,761
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Operating Activities
|
|
|
|
|
||||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(186
|
)
|
|
|
$
|
160
|
|
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
|
|
|
|
|
||||
Deferred tax (benefit) expense
|
(47
|
)
|
|
|
30
|
|
||
Net gain on mortgage loans held for sale
|
(166
|
)
|
|
|
(124
|
)
|
||
Interest income on reverse mortgage loan
|
(82
|
)
|
|
|
(119
|
)
|
||
Gain on sale of assets
|
—
|
|
|
|
(9
|
)
|
||
Provision for servicing reserves
|
11
|
|
|
|
38
|
|
||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
379
|
|
|
|
(178
|
)
|
||
Fair value changes in excess spread financing
|
(69
|
)
|
|
|
50
|
|
||
Fair value changes in mortgage servicing rights financing liability
|
2
|
|
|
|
24
|
|
||
Fair value changes in mortgage loan held for investment
|
(1
|
)
|
|
|
—
|
|
||
Amortization of premiums, net of discount accretion
|
2
|
|
|
|
3
|
|
||
Depreciation and amortization for property and equipment and intangible assets
|
21
|
|
|
|
15
|
|
||
Share-based compensation
|
4
|
|
|
|
4
|
|
||
Repurchases of forward loan assets out of Ginnie Mae securitizations
|
(364
|
)
|
|
|
(251
|
)
|
||
Mortgage loans originated and purchased for sale, net of fees
|
(5,717
|
)
|
|
|
(5,096
|
)
|
||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
6,197
|
|
|
|
5,713
|
|
||
Changes in assets and liabilities:
|
|
|
|
|
||||
Advances and other receivables
|
120
|
|
|
|
270
|
|
||
Reverse mortgage interests
|
614
|
|
|
|
382
|
|
||
Other assets
|
(216
|
)
|
|
|
54
|
|
||
Payables and other liabilities
|
(217
|
)
|
|
|
(29
|
)
|
||
Net cash attributable to operating activities
|
285
|
|
|
|
937
|
|
||
|
|
|
|
|
||||
Investing Activities
|
|
|
|
|
||||
Acquisitions, net of cash acquired
|
(85
|
)
|
|
|
—
|
|
||
Property and equipment additions, net of disposals
|
(10
|
)
|
|
|
(16
|
)
|
||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(130
|
)
|
|
|
(17
|
)
|
||
Net payment related to acquisition of HECM related receivables
|
—
|
|
|
|
(1
|
)
|
||
Proceeds on sale of forward and reverse mortgage servicing rights
|
243
|
|
|
|
—
|
|
||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
||
Net cash attributable to investing activities
|
18
|
|
|
|
(21
|
)
|
|
Successor
|
|
|
Predecessor
|
||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Financing Activities
|
|
|
|
|
||||
Increase (decrease) in warehouse facilities
|
307
|
|
|
|
(125
|
)
|
||
Decrease in advance facilities
|
(30
|
)
|
|
|
(293
|
)
|
||
Repayment of notes payable
|
(294
|
)
|
|
|
—
|
|
||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
|
443
|
|
||
Proceeds from sale of HECM securitizations
|
20
|
|
|
|
—
|
|
||
Repayment of HECM securitizations
|
(127
|
)
|
|
|
(317
|
)
|
||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
86
|
|
|
|
90
|
|
||
Repayment of participating interest financing in reverse mortgage interests
|
(494
|
)
|
|
|
(664
|
)
|
||
Proceeds from the issuance of excess spread financing
|
245
|
|
|
|
—
|
|
||
Settlement of excess spread financing
|
(50
|
)
|
|
|
(45
|
)
|
||
Repayment of nonrecourse debt – legacy assets
|
(3
|
)
|
|
|
(3
|
)
|
||
Repurchase of unsecured senior notes
|
—
|
|
|
|
(16
|
)
|
||
Repayment of finance lease liability
|
(1
|
)
|
|
|
—
|
|
||
Surrender of shares relating to stock vesting
|
(2
|
)
|
|
|
(4
|
)
|
||
Debt financing costs
|
(1
|
)
|
|
|
(5
|
)
|
||
Net cash attributable to financing activities
|
(344
|
)
|
|
|
(939
|
)
|
||
Net decrease in cash, cash equivalents, and restricted cash
|
(41
|
)
|
|
|
(23
|
)
|
||
Cash, cash equivalents, and restricted cash - beginning of period
|
561
|
|
|
|
575
|
|
||
Cash, cash equivalents, and restricted cash - end of period
(1)
|
$
|
520
|
|
|
|
$
|
552
|
|
|
|
|
|
|
||||
Supplemental Disclosures of Cash Activities
|
|
|
|
|
||||
Cash paid for interest expense
|
$
|
74
|
|
|
|
$
|
191
|
|
Net cash paid for income taxes
|
$
|
—
|
|
|
|
$
|
1
|
|
(1)
|
The following table provides a reconciliation of cash, cash equivalents and restricted cash to amount reported within the consolidated balance sheets.
|
|
Successor
|
|
|
Predecessor
|
||||
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Cash and cash equivalents
|
$
|
181
|
|
|
|
$
|
187
|
|
Restricted cash
|
339
|
|
|
|
365
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
520
|
|
|
|
$
|
552
|
|
(1)
|
Notes payables was subsequently paid off in February 2019 after the consummation of the acquisition.
|
(2)
|
The estimated fair values for customer relationships were measured using the excess earnings method and were determined to have a remaining useful life of
10
years.
|
|
Three Months Ended March 31, 2019
|
||
Pro forma total revenues
|
$
|
269
|
|
|
|
||
Pro forma net loss
|
$
|
(184
|
)
|
Purchase Price:
|
|
||
Converted WMIH common shares (prior to reverse stock split) in millions
|
394
|
|
|
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018
|
$
|
1.398
|
|
Purchase price from common stock issued
|
551
|
|
|
Purchase price from cash payment
|
1,226
|
|
|
Total purchase price
|
$
|
1,777
|
|
(1)
|
The following intangible assets were acquired in the Nationstar acquisition.
|
|
Useful Life (Years)
|
|
Fair Value
|
||
Customer relationships
(i)
|
6
|
|
$
|
61
|
|
Tradename
(ii)
|
5
|
|
8
|
|
|
Technology
(ii)
|
3-5
|
|
11
|
|
|
Internally developed software
(iii)
|
2
|
|
23
|
|
|
Total
|
|
|
$
|
103
|
|
(i)
|
The estimated fair values for customer relationships were measured using the excess earnings method.
|
(ii)
|
The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets.
|
(iii)
|
The estimated fair values for internally developed software were measured using the replacement cost method.
|
|
Successor
|
||||||
MSRs and Related Liabilities
|
March 31, 2019
|
|
December 31, 2018
|
||||
Forward MSRs - fair value
|
$
|
3,481
|
|
|
$
|
3,665
|
|
Reverse MSRs - amortized cost
|
7
|
|
|
11
|
|
||
Mortgage servicing rights
|
$
|
3,488
|
|
|
$
|
3,676
|
|
|
|
|
|
||||
Mortgage servicing liabilities - amortized cost
|
$
|
90
|
|
|
$
|
71
|
|
|
|
|
|
||||
Excess spread financing - fair value
|
$
|
1,309
|
|
|
$
|
1,184
|
|
Mortgage servicing rights financing - fair value
|
34
|
|
|
32
|
|
||
MSR related liabilities - nonrecourse at fair value
|
$
|
1,343
|
|
|
$
|
1,216
|
|
|
Successor
|
|
|
Predecessor
|
||||
MSRs - Fair Value
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Fair value - beginning of period
|
$
|
3,665
|
|
|
|
$
|
2,937
|
|
Additions:
|
|
|
|
|
||||
Servicing retained from mortgage loans sold
|
66
|
|
|
|
68
|
|
||
Purchases of servicing rights
(1)
|
409
|
|
|
|
19
|
|
||
Dispositions:
|
|
|
|
|
||||
Sales of servicing assets
|
(260
|
)
|
|
|
—
|
|
||
Changes in fair value:
|
|
|
|
|
||||
Changes in valuation inputs or assumptions used in the valuation model
|
(332
|
)
|
|
|
239
|
|
||
Other changes in fair value
|
(67
|
)
|
|
|
(69
|
)
|
||
Fair value - end of period
|
$
|
3,481
|
|
|
|
$
|
3,194
|
|
(1)
|
Purchases of servicing rights during the
three months ended March 31, 2019
includes
$271
of mortgage servicing rights that were acquired from Pacific Union. See
Note 2, Acquisitions
for further discussion.
|
|
Successor
|
||||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
MSRs - Sensitivity Pools
|
UPB
|
|
Fair Value
|
|
UPB
|
|
Fair Value
|
||||||||
Credit sensitive
|
$
|
153,565
|
|
|
$
|
1,626
|
|
|
$
|
135,752
|
|
|
$
|
1,495
|
|
Interest sensitive
|
150,127
|
|
|
1,855
|
|
|
159,729
|
|
|
2,170
|
|
||||
Total
|
$
|
303,692
|
|
|
$
|
3,481
|
|
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
Successor
|
||||
|
March 31, 2019
|
|
December 31, 2018
|
||
Credit Sensitive
|
|
|
|
||
Discount rate
|
11.3
|
%
|
|
11.3
|
%
|
Total prepayment speeds
|
13.5
|
%
|
|
11.8
|
%
|
Expected weighted-average life
|
6.0 years
|
|
|
6.4 years
|
|
|
|
|
|
||
Interest Sensitive
|
|
|
|
||
Discount rate
|
9.4
|
%
|
|
9.3
|
%
|
Total prepayment speeds
|
12.5
|
%
|
|
10.0
|
%
|
Expected weighted-average life
|
6.1 years
|
|
|
7.0 years
|
|
|
Successor
|
||||||||||||||
|
Discount Rate
|
|
Total Prepayment Speeds
|
||||||||||||
MSRs - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(125
|
)
|
|
$
|
(241
|
)
|
|
$
|
(147
|
)
|
|
$
|
(283
|
)
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Mortgage servicing rights
|
$
|
(137
|
)
|
|
$
|
(265
|
)
|
|
$
|
(129
|
)
|
|
$
|
(250
|
)
|
|
Successor
|
||||||
Excess Spread Financing
|
Prepayment Speeds
|
|
Average
Life (Years) |
|
Discount Rate
|
|
Recapture Rate
|
March 31, 2019
|
|
|
|
|
|
|
|
Low
|
6.8%
|
|
4.7
|
|
8.5%
|
|
7.9%
|
High
|
18.3%
|
|
7.2
|
|
13.9%
|
|
33.1%
|
Weighted-average
|
12.9%
|
|
5.9
|
|
10.4%
|
|
20.4%
|
|
|
|
|
|
|
|
|
December 31, 2018
|
|
|
|
|
|
|
|
Low
|
6.0%
|
|
5.0
|
|
8.5%
|
|
8.5%
|
High
|
16.7%
|
|
8.1
|
|
13.9%
|
|
30.5%
|
Weighted-average
|
11.0%
|
|
6.5
|
|
10.4%
|
|
18.6%
|
|
Successor
|
||||||||||||||
|
Discount Rate
|
|
Prepayment Speeds
|
||||||||||||
Excess Spread Financing - Hypothetical Sensitivities
|
100 bps
Adverse
Change
|
|
200 bps
Adverse
Change
|
|
10%
Adverse
Change
|
|
20%
Adverse
Change
|
||||||||
March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
50
|
|
|
$
|
104
|
|
|
$
|
50
|
|
|
$
|
106
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Excess spread financing
|
$
|
47
|
|
|
$
|
99
|
|
|
$
|
38
|
|
|
$
|
81
|
|
|
Successor
|
||||
Mortgage Servicing Rights Financing Assumptions
|
March 31, 2019
|
|
December 31, 2018
|
||
Advance financing rates
|
3.9
|
%
|
|
4.2
|
%
|
Annual advance recovery rates
|
19.3
|
%
|
|
19.0
|
%
|
|
Successor
|
|
|
Predecessor
|
||||
Servicing Revenue
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Contractually specified servicing fees
(1)
|
$
|
281
|
|
|
|
$
|
250
|
|
Other service-related income
(1)(2)
|
50
|
|
|
|
28
|
|
||
Incentive and modification income
(1)
|
7
|
|
|
|
15
|
|
||
Late fees
(1)
|
25
|
|
|
|
24
|
|
||
Reverse servicing fees
|
9
|
|
|
|
19
|
|
||
Mark-to-market adjustments
(3)
|
(293
|
)
|
|
|
152
|
|
||
Counterparty revenue share
(4)
|
(48
|
)
|
|
|
(45
|
)
|
||
Amortization, net of accretion
(5)
|
(23
|
)
|
|
|
(48
|
)
|
||
Total servicing revenue
|
$
|
8
|
|
|
|
$
|
395
|
|
(1)
|
Amounts include subservicing related revenues.
|
(2)
|
Amount for the
three months ended March 31, 2019
included a gain of
$21
from the execution of a clean-up call option on a reverse mortgage loan trust, as the Company was the master servicer and holder of clean-up call rights.
|
(3)
|
Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was
$11
for the
three months ended March 31, 2019
. The impact of negative modeled cash flows for the Predecessor was
$12
for
three months ended March 31, 2018
.
|
(4)
|
Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSRs financing arrangements.
|
(5)
|
Amortization is net of excess spread accretion of
$36
and MSL accretion of
$18
for the
three months ended March 31, 2019
. Amortization for the Predecessor is net of excess spread accretion of
$30
for the
three months ended March 31, 2018
. The Predecessor recorded MSL accretion within reverse servicing fees, whereas the Successor has elected to record MSL accretion within Amortization, net of accretion.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Servicing advances, net of $
169
and $205 discount, respectively
|
$
|
947
|
|
|
$
|
952
|
|
Receivables from agencies, investors and prior servicers, net of $48 and $48 discount, respectively
|
271
|
|
|
289
|
|
||
Reserves
|
(71
|
)
|
|
(47
|
)
|
||
Total advances and other receivables, net
|
$
|
1,147
|
|
|
$
|
1,194
|
|
|
Successor
|
|
|
Predecessor
|
||||
Reserves for Advances and Other Receivables
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Balance - beginning of period
|
$
|
47
|
|
|
|
$
|
284
|
|
Provision and other additions
(1)
|
30
|
|
|
|
22
|
|
||
Write-offs
|
(6
|
)
|
|
|
(29
|
)
|
||
Balance - end of period
|
$
|
71
|
|
|
|
$
|
277
|
|
(1)
|
The Company and the Predecessor recorded a provision of
$11
and
$12
through the MTM adjustments in service related revenues for the
three months ended March 31, 2019
and
2018
, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.
|
|
Successor
|
||||||
|
Three Months Ended March 31, 2019
|
||||||
Purchase Discounts
|
Servicing Advances
|
|
Receivables from Agencies, Investors and Prior Servicers
|
||||
Balance - beginning of period
|
$
|
205
|
|
|
$
|
48
|
|
Addition from acquisition
|
19
|
|
|
—
|
|
||
Utilization of purchase discounts
|
(55
|
)
|
|
—
|
|
||
Balance - end of period
|
$
|
169
|
|
|
$
|
48
|
|
|
Successor
|
||||||
Reverse Mortgage Interests, Net
|
March 31, 2019
|
|
December 31, 2018
|
||||
Participating interests in HECM mortgage-backed securities (“HMBS”), net of $36 and $58 premium, respectively
|
$
|
5,293
|
|
|
$
|
5,664
|
|
Other interests securitized, net of $112 and $100 discount, respectively
|
950
|
|
|
1,064
|
|
||
Unsecuritized interests, net of $95 and $122 discount, respectively
|
1,254
|
|
|
1,219
|
|
||
Reserves
|
(8
|
)
|
|
(13
|
)
|
||
Total reverse mortgage interests, net
|
$
|
7,489
|
|
|
$
|
7,934
|
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Repurchased HECM loans (exceeds 98% MCA)
|
$
|
941
|
|
|
$
|
949
|
|
HECM related receivables
|
270
|
|
|
300
|
|
||
Funded borrower draws not yet securitized
|
114
|
|
|
76
|
|
||
REO-related receivables
|
24
|
|
|
16
|
|
||
Purchase discount
|
(95
|
)
|
|
(122
|
)
|
||
Total unsecuritized interests
|
$
|
1,254
|
|
|
$
|
1,219
|
|
|
Successor
|
|
|
Predecessor
|
||||
Reserves for reverse mortgage interests
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Balance - beginning of period
|
$
|
13
|
|
|
|
$
|
115
|
|
Provision
|
—
|
|
|
|
26
|
|
||
Write-offs
|
(5
|
)
|
|
|
(7
|
)
|
||
Balance - end of period
|
$
|
8
|
|
|
|
$
|
134
|
|
|
Successor
|
||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||
Purchase premiums and discounts for reverse mortgage interests
|
Net Premium for Participating Interests in HMBS
(1)
|
|
Net Discount for Other Interest Securitized
(1)
|
|
Net Discount for Unsecuritized Interests
(1)
|
||||||
Balance - beginning of period
|
$
|
58
|
|
|
$
|
(100
|
)
|
|
$
|
(122
|
)
|
Adjustments
(2)
|
(16
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|||
Utilization of purchase discounts
|
—
|
|
|
6
|
|
|
22
|
|
|||
(Amortization)/Accretion
|
(14
|
)
|
|
(15
|
)
|
|
18
|
|
|||
Transfers
(3)
|
8
|
|
|
(1
|
)
|
|
(7
|
)
|
|||
Balance - end of period
|
$
|
36
|
|
|
$
|
(112
|
)
|
|
$
|
(95
|
)
|
(1)
|
Net position as certain items are in a premium/(discount) position, based on the characteristics of underlying tranches of loans.
|
(2)
|
Adjustments to premium/(discount) due to revised cost to service assumption utilized in the valuation of reverse mortgage assets and liabilities acquired from the Merger. See
Note 2, Acquisitions
for additional information.
|
(3)
|
Transfer of premium/(discount) based on the transfer of associated loans between categories based upon the underlying loan characteristics.
|
|
Predecessor
|
||
Purchase discounts for reverse mortgage interests
|
Three Months Ended March 31, 2018
|
||
Balance - beginning of period
|
$
|
(89
|
)
|
Additions
|
(7
|
)
|
|
Accretion
|
6
|
|
|
Balance - end of period
|
$
|
(90
|
)
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Mortgage loans held for sale – UPB
|
$
|
2,077
|
|
|
$
|
1,568
|
|
Mark-to-market adjustment
(1)
|
93
|
|
|
63
|
|
||
Total mortgage loans held for sale
|
$
|
2,170
|
|
|
$
|
1,631
|
|
(1)
|
The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations.
|
(1)
|
Non-accrual includes
$22
and
$40
of UPB related to Ginnie Mae repurchased loans as of March 31, 2019 and December 31, 2018, respectively.
|
|
Successor
|
|
|
Predecessor
|
||||
Mortgage loans held for sale
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Balance - beginning of period
|
$
|
1,631
|
|
|
|
$
|
1,891
|
|
Mortgage loans originated and purchased, net of fees
(1)
|
6,252
|
|
|
|
5,088
|
|
||
Loans sold
|
(6,088
|
)
|
|
|
(5,649
|
)
|
||
Repurchase of loans out of Ginnie Mae securitizations
|
364
|
|
|
|
251
|
|
||
Transfer of mortgage loans held for sale to advances/accounts receivable, net related to claims
(2)
|
(3
|
)
|
|
|
(3
|
)
|
||
Net transfer of mortgage loans held for sale from REO in other assets
(3)
|
3
|
|
|
|
8
|
|
||
Changes in fair value
|
10
|
|
|
|
(5
|
)
|
||
Other purchase-related activities
(4)
|
1
|
|
|
|
8
|
|
||
Balance - end of period
|
$
|
2,170
|
|
|
|
$
|
1,589
|
|
(1)
|
Mortgage loans originated and purchased during the
three months ended March 31, 2019
includes
$536
of loans held for sale that were acquired from Pacific Union. See
Note 2, Acquisitions
for further discussion.
|
(2)
|
Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale.
|
(3)
|
Net amounts are comprised of REO in the sales process, which are transferred to other assets, and certain government insured mortgage REO, which are transferred from other assets upon completion of the sale so that the claims process can begin.
|
(4)
|
Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Mortgage loans held for investment, net – UPB
|
$
|
153
|
|
|
$
|
156
|
|
Fair value adjustments
|
(35
|
)
|
|
(37
|
)
|
||
Total mortgage loans held for investment at fair value
|
$
|
118
|
|
|
$
|
119
|
|
|
Successor
|
||
Mortgage loans held for investment at fair value
|
March 31, 2019
|
||
Balance - beginning of period
|
$
|
119
|
|
Payments received from borrowers
|
(2
|
)
|
|
Changes in fair value
|
1
|
|
|
Balance - end of period
|
$
|
118
|
|
(1)
|
Amount is less than
$1
.
|
|
Successor
|
||
|
Three Months Ended March 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
6
|
|
Leased assets obtained in exchange for new operating lease liabilities
|
$
|
127
|
|
Weighted-average remaining lease term - operating leases, in years
|
5.5
|
|
|
Weighted-average discount rate - operating leases
|
5.0
|
%
|
Year Ending December 31,
|
|
Operating Leases
|
||
2019
(1)
|
|
$
|
35
|
|
2020
|
|
31
|
|
|
2021
|
|
25
|
|
|
2022
|
|
16
|
|
|
2023
|
|
12
|
|
|
2024 and thereafter
|
|
31
|
|
|
Total minimum lease payments
|
|
150
|
|
|
Less: imputed interest
|
|
8
|
|
|
Total lease liabilities
|
|
$
|
142
|
|
(1)
|
Excluding the
three months ended March 31, 2019
.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Loans subject to repurchase from Ginnie Mae
|
$
|
774
|
|
|
$
|
266
|
|
Accrued revenues
|
155
|
|
|
145
|
|
||
Right-of-use assets
|
133
|
|
|
—
|
|
||
Intangible assets
|
116
|
|
|
117
|
|
||
Goodwill
|
109
|
|
|
23
|
|
||
Other
|
291
|
|
|
244
|
|
||
Total other assets
|
$
|
1,578
|
|
|
$
|
795
|
|
|
|
Successor
|
||
|
|
Three Months Ended March 31, 2019
|
||
Balance - beginning of period
|
|
$
|
23
|
|
Additions from acquisitions
(1)
|
|
31
|
|
|
Measurement period adjustment related to Merger
(2)
|
|
55
|
|
|
Balance - end of period
|
|
$
|
109
|
|
(1)
|
As discussed in
Note 2, Acquisitions
, the Company recorded goodwill of
$29
in connection with the acquisition of Pacific Union. In addition, on February 28, 2019, the Company completed the acquisition of the Seterus mortgage servicing platform and assumed certain assets related thereto from IBM. In connection with this acquisition, the Company recorded
$2
in goodwill.
|
(2)
|
The Company recorded a total measurement period adjustment of
$55
to goodwill in 2019 related to the acquisition of Nationstar. See further discussion in
Note 2, Acquisitions
|
|
|
|
Successor
|
||||||||||
|
|
|
March 31, 2019
|
|
Three Months Ended March 31, 2019
|
||||||||
|
Expiration
Dates
|
|
Outstanding
Notional
|
|
Fair
Value
|
|
Recorded Gains/(Losses)
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2019
|
|
$
|
365
|
|
|
$
|
17.2
|
|
|
$
|
(8.7
|
)
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2019
|
|
2,557
|
|
|
68.9
|
|
|
9.1
|
|
|||
Forward sales of MBS
|
2019
|
|
410
|
|
|
1.3
|
|
|
(0.5
|
)
|
|||
LPCs
|
2019
|
|
216
|
|
|
2.0
|
|
|
0.3
|
|
|||
Eurodollar futures
(1)
|
2019-2021
|
|
7
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Forward sales of MBS
|
2019
|
|
3,804
|
|
|
21.3
|
|
|
(2.6
|
)
|
|||
LPCs
|
2019
|
|
52
|
|
|
0.2
|
|
|
(0.2
|
)
|
|||
Eurodollar futures
(1)
|
2019-2021
|
|
13
|
|
|
—
|
|
|
—
|
|
|
|
|
Predecessor
|
||||||||||
|
|
|
March 31, 2018
|
|
Three Months Ended March 31, 2018
|
||||||||
|
Expiration
Dates |
|
Outstanding
Notional |
|
Fair
Value |
|
Recorded Gains/(Losses)
|
||||||
Assets
|
|
|
|
|
|
|
|
||||||
Mortgage loans held for sale
|
|
|
|
|
|
|
|
||||||
Loan sale commitments
|
2018
|
|
$
|
427
|
|
|
$
|
8.9
|
|
|
$
|
8.8
|
|
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
|
2018
|
|
1,968
|
|
|
57.4
|
|
|
(1.9
|
)
|
|||
Forward sales of MBS
|
2018
|
|
1,130
|
|
|
5.7
|
|
|
3.3
|
|
|||
LPCs
|
2018
|
|
223
|
|
|
1.0
|
|
|
0.1
|
|
|||
Treasury futures
|
2018
|
|
331
|
|
|
1.3
|
|
|
(0.6
|
)
|
|||
Eurodollar futures
(1)
|
2018-2021
|
|
30
|
|
|
—
|
|
|
—
|
|
|||
Liabilities
|
|
|
|
|
|
|
|
||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||
IRLCs
(1)
|
2018
|
|
8
|
|
|
—
|
|
|
—
|
|
|||
Forward sales of MBS
|
2018
|
|
2,384
|
|
|
7.3
|
|
|
4.5
|
|
|||
LPCs
|
2018
|
|
116
|
|
|
0.5
|
|
|
(0.1
|
)
|
|||
Treasury futures
|
2018
|
|
223
|
|
|
1.2
|
|
|
(0.2
|
)
|
|||
Eurodollar futures
(1)
|
2020-2021
|
|
6
|
|
|
—
|
|
|
—
|
|
(1)
|
Fair values or recorded gains/(losses) of derivative instruments are less than
$0.1
for the specified dates.
|
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||
Advance Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral Pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
Nationstar agency advance receivables trust
|
|
LIBOR+1.5% to 2.6%
|
|
December 2020
|
|
Servicing advance receivables
|
|
$
|
350
|
|
|
$
|
225
|
|
|
$
|
262
|
|
|
$
|
218
|
|
|
$
|
255
|
|
Nationstar mortgage advance receivable trust
|
|
LIBOR+1.5% to 6.5%
|
|
August 2021
|
|
Servicing advance receivables
|
|
325
|
|
|
195
|
|
|
265
|
|
|
209
|
|
|
284
|
|
|||||
MBS servicer advance facility (2014)
|
|
LIBOR+2.5%
|
|
December 2019
|
|
Servicing advance receivables
|
|
135
|
|
|
89
|
|
|
160
|
|
|
90
|
|
|
149
|
|
|||||
Nationstar agency advance financing facility
|
|
LIBOR+1.5% to 7.4%
|
|
July 2020
|
|
Servicing advance receivables
|
|
125
|
|
|
69
|
|
|
78
|
|
|
78
|
|
|
89
|
|
|||||
Advance facilities principal amount
|
|
|
|
|
|
578
|
|
|
$
|
765
|
|
|
595
|
|
|
$
|
777
|
|
||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
||||||||||||
Advance facilities, net
|
|
|
|
$
|
578
|
|
|
|
|
$
|
595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||
Warehouse Facilities
|
|
Interest Rate
|
|
Maturity Date
|
|
Collateral
|
|
Capacity Amount
|
|
Outstanding
|
|
Collateral pledged
|
|
Outstanding
|
|
Collateral pledged
|
||||||||||
$1,000 warehouse facility
|
|
LIBOR+1.6% to 2.5%
|
|
September 2019
|
|
Mortgage loans or MBS
|
|
$
|
1,000
|
|
|
$
|
210
|
|
|
$
|
215
|
|
|
$
|
137
|
|
|
$
|
140
|
|
$950 warehouse facility
|
|
LIBOR+1.7% to 3.5%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
950
|
|
|
462
|
|
|
525
|
|
|
560
|
|
|
622
|
|
|||||
$800 warehouse facility
(1)
|
|
LIBOR+1.9% to 2.9%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
800
|
|
|
388
|
|
|
491
|
|
|
464
|
|
|
514
|
|
|||||
$600 warehouse facility
|
|
LIBOR+2.3%
|
|
February 2020
|
|
Mortgage loans or MBS
|
|
600
|
|
|
168
|
|
|
188
|
|
|
151
|
|
|
168
|
|
|||||
$500 warehouse facility
|
|
LIBOR+2.0% to 2.3%
|
|
September 2020
|
|
Mortgage loans or MBS
|
|
500
|
|
|
427
|
|
|
441
|
|
|
290
|
|
|
299
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.5% to 2.8%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
223
|
|
|
250
|
|
|
220
|
|
|
248
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.5% to 3.0%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
500
|
|
|
218
|
|
|
235
|
|
|
187
|
|
|
200
|
|
|||||
$500 warehouse facility
|
|
LIBOR+1.8% to 2.8%
|
|
August 2019
|
|
Mortgage loans or MBS
|
|
500
|
|
|
115
|
|
|
118
|
|
|
119
|
|
|
122
|
|
|||||
$250 warehouse facility
|
|
LIBOR+1.9% to 2.5%
|
|
May 2019
(2)
|
|
Mortgage loans or MBS
|
|
250
|
|
|
245
|
|
|
246
|
|
|
—
|
|
|
—
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.5%
|
|
October 2019
|
|
Mortgage loans or MBS
|
|
200
|
|
|
186
|
|
|
187
|
|
|
—
|
|
|
—
|
|
|||||
$200 warehouse facility
|
|
LIBOR+2.3%
|
|
January 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
75
|
|
|
100
|
|
|
103
|
|
|
132
|
|
|||||
$200 warehouse facility
|
|
LIBOR+1.6%
|
|
April 2021
|
|
Mortgage loans or MBS
|
|
200
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
19
|
|
|||||
$165 warehouse facility
|
|
LIBOR+1.5%
|
|
August 2019
|
|
Mortgage loans or MBS
|
|
165
|
|
|
67
|
|
|
68
|
|
|
—
|
|
|
—
|
|
|||||
$50 warehouse facility
|
|
LIBOR+2.7% to 4.3%
|
|
June 2019
|
|
Mortgage loans or MBS
|
|
50
|
|
|
6
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|||||
$40 warehouse facility
|
|
LIBOR+3.0%
|
|
November 2019
|
|
Mortgage loans or MBS
|
|
40
|
|
|
1
|
|
|
3
|
|
|
1
|
|
|
2
|
|
|||||
Warehouse facilities principal amount
|
|
2,791
|
|
|
3,076
|
|
|
2,250
|
|
|
2,466
|
|
||||||||||||||
MSR
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
$200 warehouse facility
(1)
|
|
LIBOR+3.8%
|
|
April 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
50
|
|
|
232
|
|
|
—
|
|
|
430
|
|
|||||
$200 warehouse facility
|
|
LIBOR+4.0%
|
|
June 2020
|
|
Mortgage loans or MBS
|
|
200
|
|
|
100
|
|
|
884
|
|
|
100
|
|
|
928
|
|
|||||
$175 warehouse facility
|
|
LIBOR+2.3%
|
|
December 2020
|
|
Mortgage loans or MBS
|
|
175
|
|
|
70
|
|
|
129
|
|
|
—
|
|
|
226
|
|
|||||
$50 warehouse facility
|
|
LIBOR+2.8%
|
|
August 2020
|
|
Mortgage loans or MBS
|
|
50
|
|
|
40
|
|
|
95
|
|
|
—
|
|
|
102
|
|
|||||
|
|
|
|
|
|
|
|
|
|
260
|
|
|
1,340
|
|
|
100
|
|
|
1,686
|
|
||||||
Warehouse facilities principal amount
|
|
3,051
|
|
|
$
|
4,416
|
|
|
2,350
|
|
|
$
|
4,152
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unamortized debt issuance costs
|
|
|
|
|
|
|
|
(1
|
)
|
|
|
|
(1
|
)
|
|
|
||||||||||
Warehouse facilities, net
|
|
$
|
3,050
|
|
|
|
|
$
|
2,349
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Pledged Collateral:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Mortgage loans and mortgage loans held for investment
|
|
|
|
|
|
|
|
$
|
2,027
|
|
|
$
|
2,177
|
|
|
$
|
1,528
|
|
|
$
|
1,628
|
|
||||
Reverse mortgage interests
|
|
|
|
|
|
|
|
764
|
|
|
899
|
|
|
722
|
|
|
838
|
|
||||||||
MSR
|
|
|
|
|
|
|
|
260
|
|
|
1,340
|
|
|
100
|
|
|
1,686
|
|
(1)
|
Total capacity amount for this facility is
$800
of which
$200
is a sublimit for MSR financing.
|
(2)
|
This facility was terminated in April 2019.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
$950 face value, 8.125% interest rate payable semi-annually, due July 2023
|
$
|
950
|
|
|
$
|
950
|
|
$750 face value, 9.125% interest rate payable semi-annually, due July 2026
|
750
|
|
|
750
|
|
||
$600 face value, 6.500% interest rate payable semi-annually, due July 2021
|
592
|
|
|
592
|
|
||
$300 face value, 6.500% interest rate payable semi-annually, due June 2022
|
206
|
|
|
206
|
|
||
Unsecured senior notes principal amount
|
2,498
|
|
|
2,498
|
|
||
Unamortized debt issuance costs, net of premium, and discount
|
(37
|
)
|
|
(39
|
)
|
||
Unsecured senior notes, net
|
$
|
2,461
|
|
|
$
|
2,459
|
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Total
|
|
$
|
2,498
|
|
|
|
|
|
|
|
|
|
|
Successor
|
||||||||
|
|
|
|
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||
|
Issue Date
|
|
Maturity Date
|
|
Class of Note
|
|
Securitized Amount
|
|
Outstanding
|
|
Outstanding
|
||||||
Participating interest financing
(1)
|
—
|
|
—
|
|
—
|
|
$
|
—
|
|
|
$
|
5,319
|
|
|
$
|
5,607
|
|
Securitization of nonperforming HECM loans
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Trust 2017-2
|
September 2017
|
|
September 2027
|
|
A, M1, M2
|
|
263
|
|
|
207
|
|
|
231
|
|
|||
Trust 2018-1
|
March 2018
|
|
March 2028
|
|
A, M1, M2, M3, M4, M5
|
|
279
|
|
|
252
|
|
|
284
|
|
|||
Trust 2018-2
|
August 2018
|
|
August 2028
|
|
A, M1, M2, M3, M4, M5
|
|
226
|
|
|
213
|
|
|
250
|
|
|||
Trust 2018-3
|
November 2018
|
|
November 2028
|
|
A, M1, M2, M3, M4, M5
|
|
321
|
|
|
312
|
|
|
326
|
|
|||
Nonrecourse debt - legacy assets
|
November 2009
|
|
October 2039
|
|
A
|
|
101
|
|
|
26
|
|
|
29
|
|
|||
Other nonrecourse debt principal amount
|
|
|
|
|
|
|
|
|
6,329
|
|
|
6,727
|
|
||||
Unamortized debt issuance costs, net of premium, and issuance discount
|
|
|
|
|
|
|
|
|
59
|
|
|
68
|
|
||||
Other nonrecourse debt, net
|
|
|
|
|
|
|
|
|
$
|
6,388
|
|
|
$
|
6,795
|
|
(1)
|
Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Loans subject to repurchase from Ginnie Mae
|
$
|
774
|
|
|
$
|
266
|
|
Payables to servicing and subservicing investors
|
483
|
|
|
494
|
|
||
Operating lease liability
|
142
|
|
|
—
|
|
||
Payables to GSEs and securitized trusts
|
57
|
|
|
105
|
|
||
MSR purchases payable including advances
|
30
|
|
|
182
|
|
||
Other Liabilities
|
489
|
|
|
496
|
|
||
Total payables and other liabilities
|
$
|
1,975
|
|
|
$
|
1,543
|
|
|
Successor
|
|
|
Predecessor
|
||||
Repurchase Reserves
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Balance - beginning of period
|
$
|
8
|
|
|
|
$
|
9
|
|
Provisions
(1)
|
8
|
|
|
|
1
|
|
||
Releases
|
—
|
|
|
|
(1
|
)
|
||
Charge-offs
|
—
|
|
|
|
—
|
|
||
Balance - end of period
|
$
|
16
|
|
|
|
$
|
9
|
|
(1)
|
Provision for the
three months ended March 31, 2019
is primarily due to repurchase reserve liability assumed in connection with the acquisition of Pacific Union. See
Note 2, Acquisitions
for further information.
|
|
Successor
|
||||||||||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
|
Transfers
Accounted for as Secured Borrowings |
|
Reverse Secured Borrowings
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Restricted cash
|
$
|
98
|
|
|
$
|
49
|
|
|
$
|
70
|
|
|
$
|
63
|
|
Reverse mortgage interests, net
|
—
|
|
|
6,319
|
|
|
—
|
|
|
6,770
|
|
||||
Advances and other receivables, net
|
605
|
|
|
—
|
|
|
628
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
117
|
|
|
—
|
|
|
118
|
|
|
—
|
|
||||
Other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
820
|
|
|
$
|
6,368
|
|
|
$
|
816
|
|
|
$
|
6,833
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities
|
|
|
|
|
|
|
|
||||||||
Advance facilities
(1)
|
$
|
488
|
|
|
$
|
—
|
|
|
$
|
505
|
|
|
$
|
—
|
|
Payables and other liabilities
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
||||
Participating interest financing
|
—
|
|
|
5,319
|
|
|
—
|
|
|
5,607
|
|
||||
HECM Securitizations (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-2
|
—
|
|
|
207
|
|
|
—
|
|
|
231
|
|
||||
Trust 2018-1
|
—
|
|
|
252
|
|
|
—
|
|
|
284
|
|
||||
Trust 2018-2
|
—
|
|
|
213
|
|
|
—
|
|
|
250
|
|
||||
Trust 2018-3
|
—
|
|
|
312
|
|
|
—
|
|
|
326
|
|
||||
Nonrecourse debt–legacy assets
|
26
|
|
|
—
|
|
|
29
|
|
|
—
|
|
||||
Total liabilities
|
$
|
515
|
|
|
$
|
6,304
|
|
|
$
|
535
|
|
|
$
|
6,699
|
|
(1)
|
Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in
Note 10, Indebtedness
, for additional information.
|
|
Successor
|
||||||
|
March 31, 2019
|
|
December 31, 2018
|
||||
Total collateral balances
|
$
|
1,811
|
|
|
$
|
1,873
|
|
Total certificate balances
|
$
|
1,757
|
|
|
$
|
1,817
|
|
|
Successor
|
||||||
Principal Amount of Loans 60 Days or More Past Due
|
March 31, 2019
|
|
December 31, 2018
|
||||
Unconsolidated securitization trusts
|
$
|
252
|
|
|
$
|
285
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(186
|
)
|
|
|
$
|
160
|
|
Less: Undistributed earnings attributable to participating stockholders
|
—
|
|
|
|
—
|
|
||
Net (loss) income attributable to common stockholders
|
$
|
(186
|
)
|
|
|
$
|
160
|
|
|
|
|
|
|
||||
Net (loss) income per common share attributable to Successor/Predecessor:
|
|
|
|
|
||||
Basic
|
$
|
(2.05
|
)
|
|
|
$
|
1.63
|
|
Diluted
|
$
|
(2.05
|
)
|
|
|
$
|
1.61
|
|
|
|
|
|
|
||||
Weighted average shares of common stock outstanding (in thousands):
|
|
|
|
|
||||
Basic
|
90,828
|
|
|
|
97,873
|
|
||
Dilutive effect of stock awards
|
—
|
|
|
|
1,238
|
|
||
Dilutive effect of participating securities
|
—
|
|
|
|
—
|
|
||
Diluted
|
90,828
|
|
|
|
99,111
|
|
|
Successor
|
|
|
Predecessor
|
||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
(Loss) income before income tax expense (benefit)
|
$
|
(233
|
)
|
|
|
$
|
206
|
|
|
|
|
|
|
||||
Income tax (benefit) expense
|
$
|
(47
|
)
|
|
|
$
|
46
|
|
|
|
|
|
|
||||
Effective tax rate
|
20.3
|
%
|
|
|
22.4
|
%
|
|
Successor
|
||||||||||||||
|
March 31, 2019
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
2,170.2
|
|
|
$
|
—
|
|
|
$
|
2,170.2
|
|
|
$
|
—
|
|
Mortgage loans held for investment
(1)
|
117.8
|
|
|
|
|
—
|
|
|
117.8
|
|
|||||
Mortgage servicing rights
(1)
|
3,481.0
|
|
|
—
|
|
|
—
|
|
|
3,481.0
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
68.9
|
|
|
—
|
|
|
68.9
|
|
|
—
|
|
||||
Forward MBS trades
|
1.3
|
|
|
—
|
|
|
1.3
|
|
|
—
|
|
||||
LPCs
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,841.2
|
|
|
$
|
—
|
|
|
$
|
2,242.4
|
|
|
$
|
3,598.8
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Forward MBS trades
|
21.3
|
|
|
—
|
|
|
21.3
|
|
|
—
|
|
||||
LPCs
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
33.7
|
|
|
—
|
|
|
—
|
|
|
33.7
|
|
||||
Excess spread financing
|
1,309.2
|
|
|
—
|
|
|
—
|
|
|
1,309.2
|
|
||||
Total liabilities
|
$
|
1,364.4
|
|
|
$
|
—
|
|
|
$
|
21.5
|
|
|
$
|
1,342.9
|
|
(1)
|
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
|
(2)
|
Fair values of the underlying assets and liabilities are less than
$0.1
for the specified dates.
|
|
Successor
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
|
|
Recurring Fair Value Measurements
|
||||||||||||
|
Total Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Mortgage loans held for sale
(1)
|
$
|
1,630.8
|
|
|
$
|
—
|
|
|
$
|
1,630.8
|
|
|
$
|
—
|
|
Mortgage loans held for investment
(1)
|
119.1
|
|
|
—
|
|
|
—
|
|
|
119.1
|
|
||||
Forward mortgage servicing rights
(1)
|
3,665.4
|
|
|
—
|
|
|
—
|
|
|
3,665.4
|
|
||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
IRLCs
|
47.6
|
|
|
—
|
|
|
47.6
|
|
|
—
|
|
||||
Forward MBS trades
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
LPCs
|
1.7
|
|
|
—
|
|
|
1.7
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total assets
|
$
|
5,464.7
|
|
|
$
|
—
|
|
|
$
|
1,680.2
|
|
|
$
|
3,784.5
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Derivative financial instruments
|
|
|
|
|
|
|
|
||||||||
Forward MBS trades
|
$
|
19.3
|
|
|
$
|
—
|
|
|
$
|
19.3
|
|
|
$
|
—
|
|
LPCs
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Eurodollar futures
(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Mortgage servicing rights financing
|
31.7
|
|
|
—
|
|
|
—
|
|
|
31.7
|
|
||||
Excess spread financing
|
1,184.4
|
|
|
—
|
|
|
—
|
|
|
1,184.4
|
|
||||
Total liabilities
|
$
|
1,235.8
|
|
|
$
|
—
|
|
|
$
|
19.7
|
|
|
$
|
1,216.1
|
|
(1)
|
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
|
(2)
|
Fair values of the underlying assets and liabilities are less than
$0.1
for the specified dates.
|
|
Successor
|
||||||||||||||
|
Assets
|
|
Liabilities
|
||||||||||||
Three Months Ended March 31, 2019
|
Mortgage servicing rights
|
|
Mortgage loans held for investment
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||||
Balance - beginning of period
|
$
|
3,665
|
|
|
$
|
119
|
|
|
$
|
1,184
|
|
|
$
|
32
|
|
Total gains or losses included in earnings
|
(399
|
)
|
|
1
|
|
|
(69
|
)
|
|
2
|
|
||||
Payments received from borrowers
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
||||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
|
|
||||||||
Purchases
|
409
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Issuances
|
66
|
|
|
—
|
|
|
245
|
|
|
—
|
|
||||
Sales
|
(260
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Repayments
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Settlements
|
—
|
|
|
—
|
|
|
(50
|
)
|
|
—
|
|
||||
Balance - end of period
|
$
|
3,481
|
|
|
$
|
118
|
|
|
$
|
1,309
|
|
|
$
|
34
|
|
|
Predecessor
|
||||||||||
|
Assets
|
|
Liabilities
|
||||||||
Three Months Ended March 31, 2018
|
Mortgage servicing rights
|
|
Excess spread financing
|
|
Mortgage servicing rights financing
|
||||||
Balance - beginning of period
|
$
|
2,937
|
|
|
$
|
996
|
|
|
$
|
10
|
|
Total gains or losses included in earnings
|
170
|
|
|
50
|
|
|
24
|
|
|||
Purchases, issuances, sales, repayments and settlements
|
|
|
|
|
|
||||||
Purchases
|
19
|
|
|
—
|
|
|
—
|
|
|||
Issuances
|
68
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
—
|
|
|
—
|
|
|
—
|
|
|||
Repayments
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
—
|
|
|
(45
|
)
|
|
—
|
|
|||
Balance - end of period
|
$
|
3,194
|
|
|
$
|
1,001
|
|
|
$
|
34
|
|
|
Successor
|
||||||||||||||
|
March 31, 2019
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
181
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
339
|
|
|
339
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,147
|
|
|
—
|
|
|
—
|
|
|
1,147
|
|
||||
Reverse mortgage interests, net
|
7,489
|
|
|
—
|
|
|
—
|
|
|
7,501
|
|
||||
Mortgage loans held for sale
|
2,170
|
|
|
—
|
|
|
2,170
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
118
|
|
|
—
|
|
|
—
|
|
|
118
|
|
||||
Derivative financial instruments
|
72
|
|
|
—
|
|
|
72
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,461
|
|
|
2,516
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
578
|
|
|
—
|
|
|
578
|
|
|
—
|
|
||||
Warehouse facilities
|
3,050
|
|
|
—
|
|
|
3,050
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
||||
Excess spread financing
|
1,309
|
|
|
—
|
|
|
—
|
|
|
1,309
|
|
||||
Derivative financial instruments
|
22
|
|
|
—
|
|
|
22
|
|
|
—
|
|
||||
Participating interest financing
|
5,378
|
|
|
—
|
|
|
—
|
|
|
5,364
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-1
|
207
|
|
|
—
|
|
|
—
|
|
|
206
|
|
||||
Trust 2017-2
|
252
|
|
|
—
|
|
|
—
|
|
|
252
|
|
||||
Trust 2018-1
|
213
|
|
|
—
|
|
|
—
|
|
|
212
|
|
||||
Trust 2018-2
|
312
|
|
|
—
|
|
|
—
|
|
|
312
|
|
||||
Nonrecourse debt - legacy assets
|
26
|
|
|
—
|
|
|
—
|
|
|
25
|
|
|
|
|
|
|
|
|
|
||||||||
|
Successor
|
||||||||||||||
|
December 31, 2018
|
||||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Financial assets
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
242
|
|
|
$
|
242
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Restricted cash
|
319
|
|
|
319
|
|
|
—
|
|
|
—
|
|
||||
Advances and other receivables, net
|
1,194
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||
Reverse mortgage interests, net
|
7,934
|
|
|
—
|
|
|
—
|
|
|
7,942
|
|
||||
Mortgage loans held for sale
|
1,631
|
|
|
—
|
|
|
1,631
|
|
|
—
|
|
||||
Mortgage loans held for investment, net
|
119
|
|
|
—
|
|
|
—
|
|
|
119
|
|
||||
Derivative financial instruments
|
49
|
|
|
—
|
|
|
49
|
|
|
—
|
|
||||
Financial liabilities
|
|
|
|
|
|
|
|
||||||||
Unsecured senior notes
|
2,459
|
|
|
2,451
|
|
|
—
|
|
|
—
|
|
||||
Advance facilities
|
595
|
|
|
—
|
|
|
595
|
|
|
—
|
|
||||
Warehouse facilities
|
2,349
|
|
|
—
|
|
|
2,349
|
|
|
—
|
|
||||
Mortgage servicing rights financing liability
|
32
|
|
|
—
|
|
|
—
|
|
|
32
|
|
||||
Excess spread financing
|
1,184
|
|
|
—
|
|
|
—
|
|
|
1,184
|
|
||||
Derivative financial instruments
|
20
|
|
|
—
|
|
|
20
|
|
|
—
|
|
||||
Participating interest financing
|
5,675
|
|
|
—
|
|
|
—
|
|
|
5,672
|
|
||||
HECM Securitization (HMBS)
|
|
|
|
|
|
|
|
||||||||
Trust 2017-2
|
231
|
|
|
—
|
|
|
—
|
|
|
230
|
|
||||
Trust 2018-1
|
284
|
|
|
—
|
|
|
—
|
|
|
284
|
|
||||
Trust 2018-2
|
250
|
|
|
—
|
|
|
—
|
|
|
249
|
|
||||
Trust 2018-3
|
326
|
|
|
—
|
|
|
—
|
|
|
326
|
|
||||
Nonrecourse debt - legacy assets
|
29
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|
Successor
|
||||||||||||||||||||||||||
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
8
|
|
|
$
|
15
|
|
|
$
|
96
|
|
|
$
|
(35
|
)
|
|
$
|
84
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
131
|
|
|
—
|
|
|
35
|
|
|
166
|
|
|
—
|
|
|
166
|
|
|||||||
Total revenues
|
8
|
|
|
146
|
|
|
96
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
250
|
|
|||||||
Total Expenses
|
195
|
|
|
104
|
|
|
99
|
|
|
—
|
|
|
398
|
|
|
45
|
|
|
443
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
115
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
132
|
|
|
2
|
|
|
134
|
|
|||||||
Interest expense
|
(114
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(132
|
)
|
|
(57
|
)
|
|
(189
|
)
|
|||||||
Other
|
—
|
|
|
4
|
|
|
11
|
|
|
—
|
|
|
15
|
|
|
—
|
|
|
15
|
|
|||||||
Total Other Income (Expenses), Net
|
1
|
|
|
3
|
|
|
11
|
|
|
—
|
|
|
15
|
|
|
(55
|
)
|
|
(40
|
)
|
|||||||
(Loss) income before income tax (benefit) expense
|
$
|
(186
|
)
|
|
$
|
45
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(133
|
)
|
|
$
|
(100
|
)
|
|
$
|
(233
|
)
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
4
|
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
10
|
|
|
$
|
21
|
|
Total assets
|
$
|
13,642
|
|
|
$
|
4,865
|
|
|
$
|
502
|
|
|
$
|
(4,100
|
)
|
|
$
|
14,909
|
|
|
$
|
2,737
|
|
|
$
|
17,646
|
|
|
Predecessor
|
||||||||||||||||||||||||||
|
Three Months Ended March 31, 2018
|
||||||||||||||||||||||||||
|
Servicing
|
|
Originations
|
|
Xome
|
|
Eliminations
|
|
Total Operating Segments
|
|
Corporate and Other
|
|
Consolidated
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Service related, net
|
$
|
395
|
|
|
$
|
15
|
|
|
$
|
65
|
|
|
$
|
(11
|
)
|
|
$
|
464
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
113
|
|
|
—
|
|
|
11
|
|
|
124
|
|
|
—
|
|
|
124
|
|
|||||||
Total revenues
|
395
|
|
|
128
|
|
|
65
|
|
|
—
|
|
|
588
|
|
|
—
|
|
|
588
|
|
|||||||
Total Expenses
|
182
|
|
|
109
|
|
|
52
|
|
|
—
|
|
|
343
|
|
|
21
|
|
|
364
|
|
|||||||
Other income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income
|
126
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
141
|
|
|
4
|
|
|
145
|
|
|||||||
Interest expense
|
(118
|
)
|
|
(15
|
)
|
|
—
|
|
|
—
|
|
|
(133
|
)
|
|
(38
|
)
|
|
(171
|
)
|
|||||||
Other
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
|
—
|
|
|
8
|
|
|||||||
Total Other Income (Expenses), Net
|
7
|
|
|
—
|
|
|
9
|
|
|
—
|
|
|
16
|
|
|
(34
|
)
|
|
(18
|
)
|
|||||||
Income (loss) before income tax expense (benefit)
|
$
|
220
|
|
|
$
|
19
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
261
|
|
|
$
|
(55
|
)
|
|
$
|
206
|
|
Depreciation and amortization for property and equipment and intangible assets
|
$
|
7
|
|
|
$
|
3
|
|
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
13
|
|
|
$
|
2
|
|
|
$
|
15
|
|
Total assets
|
$
|
15,224
|
|
|
$
|
4,710
|
|
|
$
|
413
|
|
|
$
|
(3,302
|
)
|
|
$
|
17,045
|
|
|
$
|
819
|
|
|
$
|
17,864
|
|
(1)
|
Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes.
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
MARCH 31, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
151
|
|
|
$
|
1
|
|
|
$
|
29
|
|
|
$
|
—
|
|
|
$
|
181
|
|
Restricted cash
|
—
|
|
|
191
|
|
|
—
|
|
|
148
|
|
|
—
|
|
|
339
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,460
|
|
|
—
|
|
|
28
|
|
|
—
|
|
|
3,488
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,147
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
6,427
|
|
|
—
|
|
|
1,062
|
|
|
—
|
|
|
7,489
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
2,170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,170
|
|
||||||
Mortgage loans held for investment at fair value
|
—
|
|
|
1
|
|
|
—
|
|
|
117
|
|
|
—
|
|
|
118
|
|
||||||
Property and equipment, net
|
—
|
|
|
99
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
112
|
|
||||||
Deferred tax asset, net
|
984
|
|
|
38
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
1,024
|
|
||||||
Other assets
|
—
|
|
|
1,435
|
|
|
204
|
|
|
601
|
|
|
(662
|
)
|
|
1,578
|
|
||||||
Investment in subsidiaries
|
2,602
|
|
|
609
|
|
|
—
|
|
|
—
|
|
|
(3,211
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
3,586
|
|
|
$
|
15,728
|
|
|
$
|
205
|
|
|
$
|
2,000
|
|
|
$
|
(3,873
|
)
|
|
$
|
17,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
1,662
|
|
|
$
|
799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,461
|
|
Advance facilities, net
|
—
|
|
|
89
|
|
|
—
|
|
|
489
|
|
|
—
|
|
|
578
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
3,050
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,050
|
|
||||||
Payables and accrued liabilities
|
22
|
|
|
1,870
|
|
|
2
|
|
|
81
|
|
|
—
|
|
|
1,975
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,326
|
|
|
—
|
|
|
17
|
|
|
—
|
|
|
1,343
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
5,381
|
|
|
—
|
|
|
1,007
|
|
|
—
|
|
|
6,388
|
|
||||||
Payables to affiliates
|
141
|
|
|
521
|
|
|
—
|
|
|
—
|
|
|
(662
|
)
|
|
—
|
|
||||||
Total liabilities
|
1,825
|
|
|
13,126
|
|
|
2
|
|
|
1,594
|
|
|
(662
|
)
|
|
15,885
|
|
||||||
Total stockholders’ equity
|
1,761
|
|
|
2,602
|
|
|
203
|
|
|
406
|
|
|
(3,211
|
)
|
|
1,761
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,586
|
|
|
$
|
15,728
|
|
|
$
|
205
|
|
|
$
|
2,000
|
|
|
$
|
(3,873
|
)
|
|
$
|
17,646
|
|
(1)
|
Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
(19
|
)
|
|
$
|
6
|
|
|
$
|
97
|
|
|
$
|
—
|
|
|
$
|
84
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
166
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
166
|
|
||||||
Total revenues
|
—
|
|
|
147
|
|
|
6
|
|
|
97
|
|
|
—
|
|
|
250
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages benefits
|
—
|
|
|
174
|
|
|
1
|
|
|
40
|
|
|
—
|
|
|
215
|
|
||||||
General and administrative
|
—
|
|
|
165
|
|
|
1
|
|
|
62
|
|
|
—
|
|
|
228
|
|
||||||
Total expenses
|
—
|
|
|
339
|
|
|
2
|
|
|
102
|
|
|
—
|
|
|
443
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
118
|
|
|
—
|
|
|
16
|
|
|
—
|
|
|
134
|
|
||||||
Interest expense
|
(38
|
)
|
|
(134
|
)
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(189
|
)
|
||||||
Other income (expenses)
|
—
|
|
|
4
|
|
|
—
|
|
|
11
|
|
|
—
|
|
|
15
|
|
||||||
Gain (loss) from subsidiaries
|
(148
|
)
|
|
9
|
|
|
—
|
|
|
—
|
|
|
139
|
|
|
—
|
|
||||||
Total other income (expenses), net
|
(186
|
)
|
|
(3
|
)
|
|
—
|
|
|
10
|
|
|
139
|
|
|
(40
|
)
|
||||||
(Loss) income before income tax expense (benefit)
|
(186
|
)
|
|
(195
|
)
|
|
4
|
|
|
5
|
|
|
139
|
|
|
(233
|
)
|
||||||
Less: Income tax (benefit) expense
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
Net (loss) income
|
(186
|
)
|
|
(148
|
)
|
|
4
|
|
|
5
|
|
|
139
|
|
|
(186
|
)
|
||||||
Less: Net (loss) income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net (loss) income attributable to Mr. Cooper
|
$
|
(186
|
)
|
|
$
|
(148
|
)
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
139
|
|
|
$
|
(186
|
)
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE PERIOD MARCH 31, 2019
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net (loss) income attributable to Mr. Cooper
|
$
|
(186
|
)
|
|
$
|
(148
|
)
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
139
|
|
|
$
|
(186
|
)
|
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred tax benefit
|
(21
|
)
|
|
(26
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(47
|
)
|
||||||
(Gain) loss from subsidiaries
|
148
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
(139
|
)
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(166
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(166
|
)
|
||||||
Interest income on reverse mortgage loan
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(82
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
11
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
||||||
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities
|
—
|
|
|
375
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
379
|
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
(67
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(69
|
)
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Fair value changes in mortgage loans held for investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||||
Amortization of premiums, net of discount accretion
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
17
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
21
|
|
||||||
Share-based compensation
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
4
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(364
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(364
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(5,717
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,717
|
)
|
||||||
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
6,195
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6,197
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Advances and other receivables
|
—
|
|
|
120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
120
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
514
|
|
|
—
|
|
|
100
|
|
|
—
|
|
|
614
|
|
||||||
Other assets
|
—
|
|
|
(229
|
)
|
|
(5
|
)
|
|
18
|
|
|
—
|
|
|
(216
|
)
|
||||||
Payables and accrued liabilities
|
57
|
|
|
(268
|
)
|
|
1
|
|
|
(7
|
)
|
|
—
|
|
|
(217
|
)
|
||||||
Net cash attributable to operating activities
|
—
|
|
|
161
|
|
|
—
|
|
|
124
|
|
|
—
|
|
|
285
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2018
|
|||||||||||||||||||||||
|
Successor
|
||||||||||||||||||||||
|
Mr. Cooper
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer)
|
|
Non-Guarantor
(Subsidiaries of Issuer)
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
193
|
|
|
$
|
1
|
|
|
$
|
48
|
|
|
$
|
—
|
|
|
$
|
242
|
|
Restricted cash
|
—
|
|
|
186
|
|
|
—
|
|
|
133
|
|
|
—
|
|
|
319
|
|
||||||
Mortgage servicing rights
|
—
|
|
|
3,644
|
|
|
—
|
|
|
32
|
|
|
—
|
|
|
3,676
|
|
||||||
Advances and other receivables, net
|
—
|
|
|
1,194
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,194
|
|
||||||
Reverse mortgage interests, net
|
—
|
|
|
6,770
|
|
|
—
|
|
|
1,164
|
|
|
—
|
|
|
7,934
|
|
||||||
Mortgage loans held for sale at fair value
|
—
|
|
|
1,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,631
|
|
||||||
Mortgage loans held for investment at fair value
|
—
|
|
|
1
|
|
|
—
|
|
|
118
|
|
|
—
|
|
|
119
|
|
||||||
Property and equipment, net
|
—
|
|
|
84
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
96
|
|
||||||
Deferred tax asset, net
|
973
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
967
|
|
||||||
Other assets
|
—
|
|
|
660
|
|
|
202
|
|
|
621
|
|
|
(688
|
)
|
|
795
|
|
||||||
Investment in subsidiaries
|
2,820
|
|
|
601
|
|
|
—
|
|
|
—
|
|
|
(3,421
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
3,793
|
|
|
$
|
14,964
|
|
|
$
|
203
|
|
|
$
|
2,122
|
|
|
$
|
(4,109
|
)
|
|
$
|
16,973
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured senior notes, net
|
$
|
1,660
|
|
|
$
|
799
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,459
|
|
Advance facilities, net
|
—
|
|
|
90
|
|
|
—
|
|
|
505
|
|
|
—
|
|
|
595
|
|
||||||
Warehouse facilities, net
|
—
|
|
|
2,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,349
|
|
||||||
Payables and accrued liabilities
|
49
|
|
|
1,413
|
|
|
1
|
|
|
80
|
|
|
—
|
|
|
1,543
|
|
||||||
MSR related liabilities - nonrecourse at fair value
|
—
|
|
|
1,197
|
|
|
—
|
|
|
19
|
|
|
—
|
|
|
1,216
|
|
||||||
Mortgage servicing liabilities
|
—
|
|
|
71
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
71
|
|
||||||
Other nonrecourse debt, net
|
—
|
|
|
5,676
|
|
|
—
|
|
|
1,119
|
|
|
—
|
|
|
6,795
|
|
||||||
Payables to affiliates
|
139
|
|
|
549
|
|
|
—
|
|
|
—
|
|
|
(688
|
)
|
|
—
|
|
||||||
Total liabilities
|
1,848
|
|
|
12,144
|
|
|
1
|
|
|
1,723
|
|
|
(688
|
)
|
|
15,028
|
|
||||||
Total stockholders’ equity
|
1,945
|
|
|
2,820
|
|
|
202
|
|
|
399
|
|
|
(3,421
|
)
|
|
1,945
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,793
|
|
|
$
|
14,964
|
|
|
$
|
203
|
|
|
$
|
2,122
|
|
|
$
|
(4,109
|
)
|
|
$
|
16,973
|
|
(1)
|
Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Service related, net
|
$
|
—
|
|
|
$
|
390
|
|
|
$
|
6
|
|
|
$
|
68
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Net gain on mortgage loans held for sale
|
—
|
|
|
124
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
124
|
|
||||||
Total Revenues
|
—
|
|
|
514
|
|
|
6
|
|
|
68
|
|
|
—
|
|
|
588
|
|
||||||
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Salaries, wages and benefits
|
—
|
|
|
152
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
180
|
|
||||||
General and administrative
|
—
|
|
|
156
|
|
|
1
|
|
|
27
|
|
|
—
|
|
|
184
|
|
||||||
Total expenses
|
—
|
|
|
308
|
|
|
2
|
|
|
54
|
|
|
—
|
|
|
364
|
|
||||||
Other income (expenses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest income
|
—
|
|
|
131
|
|
|
—
|
|
|
14
|
|
|
—
|
|
|
145
|
|
||||||
Interest expense
|
—
|
|
|
(162
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(171
|
)
|
||||||
Other expense
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
9
|
|
|
—
|
|
|
8
|
|
||||||
Gain (loss) from subsidiaries
|
160
|
|
|
32
|
|
|
—
|
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
||||||
Total other income (expenses), net
|
160
|
|
|
—
|
|
|
—
|
|
|
14
|
|
|
(192
|
)
|
|
(18
|
)
|
||||||
Income (loss) before income tax expense (benefit)
|
160
|
|
|
206
|
|
|
4
|
|
|
28
|
|
|
(192
|
)
|
|
206
|
|
||||||
Less: Income tax expense
|
—
|
|
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46
|
|
||||||
Net income (loss)
|
160
|
|
|
160
|
|
|
4
|
|
|
28
|
|
|
(192
|
)
|
|
160
|
|
||||||
Less: net income attributable to non-controlling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net income (loss) attributable to Nationstar
|
$
|
160
|
|
|
$
|
160
|
|
|
$
|
4
|
|
|
$
|
28
|
|
|
$
|
(192
|
)
|
|
$
|
160
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2018
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss) attributable to Nationstar
|
$
|
160
|
|
|
$
|
160
|
|
|
$
|
4
|
|
|
$
|
28
|
|
|
$
|
(192
|
)
|
|
$
|
160
|
|
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income tax expense
|
—
|
|
|
30
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
||||||
(Gain) loss from subsidiaries
|
(160
|
)
|
|
(32
|
)
|
|
—
|
|
|
—
|
|
|
192
|
|
|
—
|
|
||||||
Net gain on mortgage loans held for sale
|
—
|
|
|
(124
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124
|
)
|
||||||
Reverse mortgage loan interest income
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
||||||
(Gain) loss on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(9
|
)
|
||||||
Provision for servicing reserves
|
—
|
|
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
||||||
Fair value changes and amortization of mortgage servicing rights
|
—
|
|
|
(178
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(178
|
)
|
||||||
Fair value changes in excess spread financing
|
—
|
|
|
49
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
50
|
|
||||||
Fair value changes in mortgage servicing rights financing liability
|
—
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24
|
|
||||||
Amortization of premiums, net of discount accretion
|
—
|
|
|
4
|
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
3
|
|
||||||
Depreciation and amortization for property and equipment and intangible assets
|
—
|
|
|
12
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
15
|
|
||||||
Share-based compensation
|
—
|
|
|
3
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
4
|
|
||||||
Repurchases of forward loans assets out of Ginnie Mae securitizations
|
—
|
|
|
(251
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(251
|
)
|
||||||
Mortgage loans originated and purchased for sale, net of fees
|
—
|
|
|
(5,096
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,096
|
)
|
||||||
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment
|
—
|
|
|
5,709
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
5,713
|
|
||||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Advances and other receivables
|
—
|
|
|
270
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
270
|
|
||||||
Reverse mortgage interests
|
—
|
|
|
443
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
382
|
|
||||||
Other assets
|
4
|
|
|
(146
|
)
|
|
(5
|
)
|
|
201
|
|
|
—
|
|
|
54
|
|
||||||
Payables and accrued liabilities
|
—
|
|
|
(27
|
)
|
|
1
|
|
|
(3
|
)
|
|
—
|
|
|
(29
|
)
|
||||||
Net cash attributable to operating activities
|
4
|
|
|
769
|
|
|
—
|
|
|
164
|
|
|
—
|
|
|
937
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
MR. COOPER GROUP INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2018
(Continued)
|
|||||||||||||||||||||||
|
Predecessor
|
||||||||||||||||||||||
|
Nationstar
|
|
Issuer
(1)
|
|
Guarantor
(Subsidiaries of Issuer) |
|
Non-Guarantor
(Subsidiaries of Issuer) |
|
Eliminations
|
|
Consolidated
|
||||||||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment additions, net of disposals
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(16
|
)
|
||||||
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
—
|
|
|
(11
|
)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
||||||
Proceeds on sale of assets
|
—
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Net cash attributable to investing activities
|
—
|
|
|
(26
|
)
|
|
—
|
|
|
5
|
|
|
—
|
|
|
(21
|
)
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in warehouse facilities
|
—
|
|
|
(125
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(125
|
)
|
||||||
Decrease in advance facilities
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
(277
|
)
|
|
—
|
|
|
(293
|
)
|
||||||
Proceeds from issuance of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
443
|
|
|
—
|
|
|
443
|
|
||||||
Repayment of HECM securitizations
|
—
|
|
|
—
|
|
|
—
|
|
|
(317
|
)
|
|
—
|
|
|
(317
|
)
|
||||||
Proceeds from issuance of participating interest financing in reverse mortgage interests
|
—
|
|
|
90
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
90
|
|
||||||
Repayment of participating interest financing in reverse mortgage interests
|
—
|
|
|
(664
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(664
|
)
|
||||||
Settlement of excess spread financing
|
—
|
|
|
(45
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
||||||
Repayment of nonrecourse debt - legacy assets
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
||||||
Repurchase of unsecured senior notes
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16
|
)
|
||||||
Surrender of shares relating to stock vesting
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
||||||
Debt financing costs
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Net cash attributable to financing activities
|
(4
|
)
|
|
(781
|
)
|
|
—
|
|
|
(154
|
)
|
|
—
|
|
|
(939
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash
|
—
|
|
|
(38
|
)
|
|
—
|
|
|
15
|
|
|
—
|
|
|
(23
|
)
|
||||||
Cash, cash equivalents, and restricted cash - beginning of period
|
—
|
|
|
423
|
|
|
1
|
|
|
151
|
|
|
—
|
|
|
575
|
|
||||||
Cash, cash equivalents, and restricted cash - end of period
|
$
|
—
|
|
|
$
|
385
|
|
|
$
|
1
|
|
|
$
|
166
|
|
|
$
|
—
|
|
|
$
|
552
|
|
(1)
|
Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.
|
•
|
our ability to maintain or grow the size of our servicing portfolio;
|
•
|
our ability to maintain or grow our originations volume and profitability;
|
•
|
our ability to recapture voluntary prepayments related to our existing servicing portfolio;
|
•
|
our shift in the mix of our servicing portfolio to subservicing, which is highly concentrated;
|
•
|
delays in our ability to collect or be reimbursed for servicing advances;
|
•
|
our ability to obtain sufficient liquidity and capital to operate our business;
|
•
|
changes in prevailing interest rates;
|
•
|
our ability to finance and recover costs of our reverse servicing operations;
|
•
|
our ability to successfully implement our strategic initiatives;
|
•
|
our ability to realize anticipated benefits of the Merger and other acquisitions, including Pacific Union, AMS, and Seterus;
|
•
|
our ability to use net operating loss carryforwards and other tax attributes;
|
•
|
changes in our business relationships or changes in servicing guidelines with Fannie Mae, Freddie Mac and Ginnie Mae;
|
•
|
Xome’s ability to compete in highly competitive markets;
|
•
|
our ability to pay down debt;
|
•
|
our ability to manage legal and regulatory examinations and enforcement investigations and proceedings, compliance requirements and related costs;
|
•
|
our ability to prevent cyber intrusions and mitigate cyber risks; and
|
•
|
our ability to maintain our licenses and other regulatory approvals.
|
•
|
Boarded
$110,124
UPB comprised of
$45,590
UPB of forward MSR and
$64,534
UPB of subservicing
|
•
|
Provided
9,590
solutions to our mortgage servicing customers, reflecting our continued commitment to foster and preserve homeownership
|
•
|
Maintained a low delinquency rate, measured as loans that are 60 or more days behind in payment, at
2.4%
|
•
|
Funded
27,294
loans totaling
$5,716
which included
$2,143
related to retaining customers in our servicing portfolio
|
•
|
Achieved recapture rate of
27.5%
|
•
|
Sold
2,421
properties and completed
379,585
of Xome service orders
|
•
|
Completed acquisition of Pacific Union, which allowed us to expand our servicing portfolio and increase our mortgage lending volume and capabilities
|
•
|
Completed the acquisition of the Seterus mortgage servicing platform and assumed certain assets related thereto from IBM (“Seterus acquisition). In connection with Seterus acquisition, we entered into a subservicing contract for
$42 billion
in mortgages
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 1. Consolidated Operations
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenues - operational
|
$
|
543
|
|
|
|
$
|
436
|
|
|
$
|
107
|
|
|
25
|
%
|
Revenues - Mark-to-market
|
(293
|
)
|
|
|
152
|
|
|
(445
|
)
|
|
(293
|
)%
|
|||
Total revenues
|
250
|
|
|
|
588
|
|
|
(338
|
)
|
|
(57
|
)%
|
|||
Expenses
|
443
|
|
|
|
364
|
|
|
79
|
|
|
22
|
%
|
|||
Other income (expenses), net
|
(40
|
)
|
|
|
(18
|
)
|
|
(22
|
)
|
|
122
|
%
|
|||
(Loss) income before income tax (benefit) expense
|
(233
|
)
|
|
|
206
|
|
|
(439
|
)
|
|
(213
|
)%
|
|||
Less: Income tax (benefit) expense
|
(47
|
)
|
|
|
46
|
|
|
(93
|
)
|
|
(202
|
)%
|
|||
Net (loss) income
|
(186
|
)
|
|
|
160
|
|
|
(346
|
)
|
|
(216
|
)%
|
|||
Less: Net (loss) income attributable to non-controlling interests
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Net (loss) income attributable to Successor/Predecessor
|
$
|
(186
|
)
|
|
|
$
|
160
|
|
|
$
|
(346
|
)
|
|
(216
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Effective tax rate
(1)
|
20.3
|
%
|
|
|
22.4
|
%
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||
Income (loss) before income tax expense by operating and non-operating segments:
|
|
|
|
|
|
|
|
|
|||||||
Servicing
|
$
|
(186
|
)
|
|
|
$
|
220
|
|
|
$
|
(406
|
)
|
|
(185
|
)%
|
Originations
|
45
|
|
|
|
19
|
|
|
26
|
|
|
137
|
%
|
|||
Xome
|
8
|
|
|
|
22
|
|
|
(14
|
)
|
|
(64
|
)%
|
|||
Corporate and other
|
(100
|
)
|
|
|
(55
|
)
|
|
(45
|
)
|
|
82
|
%
|
|||
Consolidated (loss) income before income tax (benefit) expense
|
$
|
(233
|
)
|
|
|
$
|
206
|
|
|
$
|
(439
|
)
|
|
(213
|
)%
|
(1)
|
Effective tax rate is calculated using whole numbers.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 2. Servicing Operations
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenues
|
|
|
|
|
|
|
|
|
|||||||
Operational
|
$
|
324
|
|
|
|
$
|
291
|
|
|
$
|
33
|
|
|
11
|
%
|
Amortization
|
(23
|
)
|
|
|
(48
|
)
|
|
25
|
|
|
52
|
%
|
|||
Mark-to-market
|
(293
|
)
|
|
|
152
|
|
|
(445
|
)
|
|
293
|
%
|
|||
Total revenues
|
8
|
|
|
|
395
|
|
|
(387
|
)
|
|
(98
|
)%
|
|||
Expenses
|
195
|
|
|
|
182
|
|
|
13
|
|
|
7
|
%
|
|||
Total other income (expenses), net
|
1
|
|
|
|
7
|
|
|
(6
|
)
|
|
(86
|
)%
|
|||
Income before income tax expense
|
$
|
(186
|
)
|
|
|
$
|
220
|
|
|
$
|
(406
|
)
|
|
(185
|
)%
|
|
Successor
|
|
|
Predecessor
|
||||
Table 3. Forward Servicing and Subservicing Portfolio UPB Rollforward
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Balance - beginning of period
|
$
|
519,367
|
|
|
|
$
|
473,256
|
|
Additions:
|
|
|
|
|
|
|||
Originations
|
5,295
|
|
|
|
5,088
|
|
||
Acquisitions
|
97,811
|
|
|
|
6,149
|
|
||
Deductions:
|
|
|
|
|
|
|||
Dispositions
|
(1,251
|
)
|
|
|
(54
|
)
|
||
Principal reductions and other
|
(5,145
|
)
|
|
|
(4,935
|
)
|
||
Voluntary reductions
(1)
|
(10,272
|
)
|
|
|
(11,663
|
)
|
||
Involuntary reductions
(2)
|
(857
|
)
|
|
|
(1,345
|
)
|
||
Net changes in loans serviced by others
|
(65
|
)
|
|
|
(95
|
)
|
||
Balance - end of period
|
$
|
604,883
|
|
|
|
$
|
466,401
|
|
(1)
|
Voluntary reductions are related to loan payoffs by customers.
|
(2)
|
Involuntary reductions refer to loan chargeoffs.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||
Table 4. Servicing - Revenues
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||||||||||||||
|
Amt
|
|
bps
(1)
|
|
|
Amt
|
|
bps
(1)
|
|
Amt
|
|
bps
(1)
|
|
Amt
|
|
bps
(1)
|
|||||||||||
Forward MSR Operational Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Base servicing fees
|
$
|
240
|
|
|
17
|
|
|
|
$
|
219
|
|
|
17
|
|
|
$
|
21
|
|
|
—
|
|
|
10
|
%
|
|
—
|
%
|
Modification fees
(2)
|
3
|
|
|
—
|
|
|
|
7
|
|
|
1
|
|
|
(4
|
)
|
|
(1
|
)
|
|
(57
|
)%
|
|
(100
|
)%
|
|||
Incentive fees
(2)
|
1
|
|
|
—
|
|
|
|
7
|
|
|
1
|
|
|
(6
|
)
|
|
(1
|
)
|
|
(86
|
)%
|
|
(100
|
)%
|
|||
Late payment fees
(2)
|
19
|
|
|
2
|
|
|
|
20
|
|
|
1
|
|
|
(1
|
)
|
|
1
|
|
|
(5
|
)%
|
|
100
|
%
|
|||
Other ancillary revenues
(2)
|
48
|
|
|
3
|
|
|
|
27
|
|
|
2
|
|
|
21
|
|
|
1
|
|
|
78
|
%
|
|
50
|
%
|
|||
Total forward MSR operational revenue
|
311
|
|
|
22
|
|
|
|
280
|
|
|
22
|
|
|
31
|
|
|
—
|
|
|
11
|
%
|
|
—
|
%
|
|||
Base subservicing fees and other subservicing revenue
(2)
|
52
|
|
|
4
|
|
|
|
37
|
|
|
3
|
|
|
15
|
|
|
1
|
|
|
41
|
%
|
|
33
|
%
|
|||
Reverse servicing fees
|
9
|
|
|
—
|
|
|
|
19
|
|
|
1
|
|
|
(10
|
)
|
|
(1
|
)
|
|
(53
|
)%
|
|
(100
|
)%
|
|||
Total servicing fee revenue
|
372
|
|
|
26
|
|
|
|
336
|
|
|
26
|
|
|
36
|
|
|
—
|
|
|
11
|
%
|
|
—
|
%
|
|||
MSR financing liability costs
|
(12
|
)
|
|
(1
|
)
|
|
|
(15
|
)
|
|
(1
|
)
|
|
3
|
|
|
—
|
|
|
(20
|
)%
|
|
—
|
%
|
|||
Excess spread costs - principal
|
(36
|
)
|
|
(2
|
)
|
|
|
(30
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
—
|
|
|
20
|
%
|
|
—
|
%
|
|||
Total operational revenue
|
324
|
|
|
23
|
|
|
|
291
|
|
|
23
|
|
|
33
|
|
|
—
|
|
|
11
|
%
|
|
—
|
%
|
|||
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Forward MSR amortization
|
(79
|
)
|
|
(6
|
)
|
|
|
(78
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)%
|
|
—
|
%
|
|||
Excess spread accretion
|
36
|
|
|
3
|
|
|
|
30
|
|
|
2
|
|
|
6
|
|
|
1
|
|
|
20
|
%
|
|
50
|
%
|
|||
Reverse MSL accretion
|
18
|
|
|
1
|
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|
1
|
|
|
100
|
%
|
|
100
|
%
|
|||
Reverse MSR amortization
|
2
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
100
|
%
|
|
—
|
%
|
|||
Total amortization
|
(23
|
)
|
|
(2
|
)
|
|
|
(48
|
)
|
|
(4
|
)
|
|
25
|
|
|
2
|
|
|
52
|
%
|
|
50
|
%
|
|||
Mark-to-Market Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MSR MTM
(3)
|
(360
|
)
|
|
(25
|
)
|
|
|
226
|
|
|
18
|
|
|
(586
|
)
|
|
(43
|
)
|
|
(259
|
)%
|
|
(239
|
)%
|
|||
Excess spread / financing MTM
|
67
|
|
|
5
|
|
|
|
(74
|
)
|
|
(6
|
)
|
|
141
|
|
|
11
|
|
|
(191
|
)%
|
|
(183
|
)%
|
|||
Total MTM adjustments
|
(293
|
)
|
|
(20
|
)
|
|
|
152
|
|
|
12
|
|
|
(445
|
)
|
|
(32
|
)
|
|
(293
|
)%
|
|
(267
|
)%
|
|||
Total revenues - Servicing
|
$
|
8
|
|
|
1
|
|
|
|
$
|
395
|
|
|
31
|
|
|
$
|
(387
|
)
|
|
(34
|
)
|
|
(98
|
)%
|
|
(110
|
)%
|
(1)
|
Calculated basis points (“bps”) are as follows: Annualized dollar amount/Total average UPB X 10000.
|
(2)
|
Certain ancillary and other non-base fees related to subservicing operations are separately presented as other subservicing revenues.
|
(3)
|
The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was
$11
for the
three months ended March 31, 2019
. The impact of negative modeled cash flows for the Predecessor was
$18
for the
three months ended March 31, 2018
.
|
|
Successor
|
|
|
Predecessor
|
||||
Table 5. Servicing Portfolio - Unpaid Principal Balances
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Average UPB:
|
|
|
|
|
||||
Forward MSRs
|
$
|
308,984
|
|
|
|
$
|
281,711
|
|
Subservicing and other
(1)
|
239,468
|
|
|
|
188,259
|
|
||
Reverse portfolio
|
27,472
|
|
|
|
34,428
|
|
||
Total average UPB
|
$
|
575,924
|
|
|
|
$
|
504,398
|
|
|
|
|
|
|
||||
|
Successor
|
|
|
Predecessor
|
||||
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Ending UPB:
|
|
|
|
|
||||
Forward MSRs
|
|
|
|
|
||||
Agency
|
$
|
238,937
|
|
|
|
$
|
201,303
|
|
Non-agency
|
64,755
|
|
|
|
75,540
|
|
||
Total Forward MSRs
|
303,692
|
|
|
|
276,843
|
|
||
|
|
|
|
|
||||
Subservicing and other
(1)
|
|
|
|
|
||||
Agency
|
273,786
|
|
|
|
181,771
|
|
||
Non-agency
|
27,405
|
|
|
|
7,787
|
|
||
Total subservicing and other
|
301,191
|
|
|
|
189,558
|
|
||
|
|
|
|
|
||||
Reverse loans
|
|
|
|
|
||||
MSR
|
3,559
|
|
|
|
—
|
|
||
MSL
|
15,928
|
|
|
|
23,852
|
|
||
Securitized loans
|
7,527
|
|
|
|
10,162
|
|
||
Total reverse portfolio serviced
|
27,014
|
|
|
|
34,014
|
|
||
Total ending UPB
|
$
|
631,897
|
|
|
|
$
|
500,415
|
|
(1)
|
Subservicing and other includes (i) loans we service for others, (ii) residential mortgage loans originated but have yet to be sold and (iii) agency REO balances for which we own the mortgage servicing rights.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
||||
Table 6. Forward Loan Modifications and Workout Units
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
Amount Change
|
|
% Change
|
||||
HAMP modifications
|
6
|
|
|
|
22
|
|
|
(16
|
)
|
|
(73
|
)%
|
Non-HAMP modifications
|
5,183
|
|
|
|
5,835
|
|
|
(652
|
)
|
|
(11
|
)%
|
Workouts
|
4,401
|
|
|
|
14,093
|
|
|
(9,692
|
)
|
|
(69
|
)%
|
Total modification and workout units
|
9,590
|
|
|
|
19,950
|
|
|
(10,360
|
)
|
|
(52
|
)%
|
|
Successor
|
|
|
Predecessor
|
||||
Table 7. Key Performance Metrics - Forward Servicing and Subservicing Portfolio
(1)
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Loan count
|
3,616,323
|
|
|
|
2,993,023
|
|
||
Average loan amount
(2)
|
$
|
167,266
|
|
|
|
$
|
155,858
|
|
Average coupon - credit sensitive
(3)
|
4.9
|
%
|
|
|
4.7
|
%
|
||
Average coupon - interest sensitive
(3)
|
4.3
|
%
|
|
|
4.2
|
%
|
||
60+ delinquent (% of loans)
(4)
|
2.4
|
%
|
|
|
3.2
|
%
|
||
90+ delinquent (% of loans)
(4)
|
2.1
|
%
|
|
|
2.8
|
%
|
||
120+ delinquent (% of loans)
(4)
|
1.9
|
%
|
|
|
2.6
|
%
|
||
Total prepayment speed (12-month constant prepayment rate)
|
8.2
|
%
|
|
|
10.7
|
%
|
(1)
|
Characteristics and key performance metrics of our servicing portfolio exclude UPB and loan counts acquired but not yet boarded and currently serviced by others.
|
(2)
|
Average loan amount is presented in whole dollar amounts.
|
(3)
|
The weighted average coupon amounts for our credit and interest sensitive pools presented in the table above are only reflective of our owned forward MSR portfolio that is reported at fair value.
|
(4)
|
Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan.
|
|
Successor
|
|
Successor
|
|
|
Predecessor
|
Table 8. Servicer Ratings
|
Fitch
(1)
|
|
Moody’s
(2)
|
|
|
S&P
(3)
|
Rating date
|
November 2018
|
|
March 2019
|
|
|
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
|
(1)
|
Fitch Rating Scale of 1 (Highest Performance) to 5 (Low/No Proficiency)
|
(2)
|
Moody’s Rating Scale of SQ1 (Strong Ability/Stability) to SQ5 (Weak Ability/Stability)
|
(3)
|
S&P’s Rating Scale of Strong to Weak
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||
Table 9. Servicing - Expenses
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||||||||||
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||
Salaries, wages and benefits
|
$
|
86
|
|
|
6
|
|
|
$
|
76
|
|
|
6
|
|
$
|
10
|
|
|
—
|
|
(13
|
)%
|
|
—%
|
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Servicing support fees
|
39
|
|
|
3
|
|
|
27
|
|
|
2
|
|
12
|
|
|
1
|
|
(44
|
)%
|
|
50%
|
|||
Corporate and other general and administrative expenses
|
39
|
|
|
3
|
|
|
31
|
|
|
2
|
|
8
|
|
|
1
|
|
(26
|
)%
|
|
50%
|
|||
Foreclosure and other liquidation related expenses
|
27
|
|
|
2
|
|
|
41
|
|
|
3
|
|
(14
|
)
|
|
(1)
|
|
34
|
%
|
|
(33)%
|
|||
Depreciation and amortization
|
4
|
|
|
—
|
|
|
7
|
|
|
1
|
|
(3
|
)
|
|
(1)
|
|
43
|
%
|
|
(100)%
|
|||
Total general and administrative expenses
|
109
|
|
|
8
|
|
|
106
|
|
|
8
|
|
3
|
|
|
—
|
|
(3
|
)%
|
|
—%
|
|||
Total expenses - Servicing
|
$
|
195
|
|
|
14
|
|
|
$
|
182
|
|
|
14
|
|
$
|
13
|
|
|
—
|
|
(7
|
)%
|
|
—%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|
|
|
|
|||||||||||||||
Table 10. Servicing - Other Income (Expenses), Net
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
Change
|
|
% Change
|
|||||||||||||||||||
Amt
|
|
bps
|
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
|
Amt
|
|
bps
|
||||||||||||
Reverse mortgage interest income
|
$
|
82
|
|
|
6
|
|
|
|
$
|
119
|
|
|
9
|
|
|
$
|
(37
|
)
|
|
(3
|
)
|
|
(31
|
)%
|
|
33
|
%
|
Other interest income
|
33
|
|
|
2
|
|
|
|
7
|
|
|
1
|
|
|
26
|
|
|
1
|
|
|
371
|
%
|
|
100
|
%
|
|||
Interest income
|
115
|
|
|
8
|
|
|
|
126
|
|
|
10
|
|
|
(11
|
)
|
|
(2
|
)
|
|
(9
|
)%
|
|
20
|
%
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reverse mortgage interest expense
|
(71
|
)
|
|
(5
|
)
|
|
|
(96
|
)
|
|
(8
|
)
|
|
(25
|
)
|
|
(3
|
)
|
|
(26
|
)%
|
|
(38
|
)%
|
|||
Advance interest expense
|
(9
|
)
|
|
(1
|
)
|
|
|
(5
|
)
|
|
—
|
|
|
4
|
|
|
1
|
|
|
80
|
%
|
|
100
|
%
|
|||
Other interest expense
|
(34
|
)
|
|
(2
|
)
|
|
|
(17
|
)
|
|
(1
|
)
|
|
17
|
|
|
1
|
|
|
100
|
%
|
|
100
|
%
|
|||
Interest expense
|
(114
|
)
|
|
(8
|
)
|
|
|
(118
|
)
|
|
(9
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(3
|
)%
|
|
(11
|
)%
|
|||
Other income (expense)
|
—
|
|
|
—
|
|
|
|
(1
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
100
|
%
|
|
—
|
%
|
|||
Total other income (expenses), net - Servicing
|
$
|
1
|
|
|
—
|
|
|
|
$
|
7
|
|
|
1
|
|
|
$
|
(6
|
)
|
|
(1
|
)
|
|
(86
|
)%
|
|
(100
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Weighted average cost - advance facilities
|
4.7
|
%
|
|
|
|
|
3.7
|
%
|
|
|
|
1.0
|
%
|
|
|
|
|
27
|
%
|
|
|
|
|||||
Weighted average cost - excess spread financing
|
9.0
|
%
|
|
|
|
|
8.9
|
%
|
|
|
|
0.1
|
%
|
|
|
|
|
1
|
%
|
|
|
|
|
Successor
|
||||||||||||||||||||
Table 11. Serviced Portfolios and Related Liabilities
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|
UPB
|
|
Carrying Amount
|
|
Weighted Avg. Coupon
|
|||||||||||
Forward MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
$
|
238,937
|
|
|
$
|
2,879
|
|
|
4.4
|
%
|
|
$
|
229,108
|
|
|
$
|
3,027
|
|
|
4.5
|
%
|
Non-agency
|
64,755
|
|
|
602
|
|
|
4.8
|
%
|
|
66,373
|
|
|
638
|
|
|
4.8
|
%
|
||||
Total Forward MSRs - fair value
|
303,692
|
|
|
3,481
|
|
|
4.6
|
%
|
|
295,481
|
|
|
3,665
|
|
|
4.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subservicing and other
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
273,786
|
|
|
N/A
|
|
|
N/A
|
|
|
208,607
|
|
|
N/A
|
|
|
N/A
|
|
||||
Non-agency
|
27,405
|
|
|
N/A
|
|
|
N/A
|
|
|
15,279
|
|
|
N/A
|
|
|
N/A
|
|
||||
Total subservicing and other
|
301,191
|
|
|
N/A
|
|
|
N/A
|
|
|
223,886
|
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reverse portfolio - amortized cost
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
MSR
|
3,559
|
|
|
7
|
|
|
N/A
|
|
|
3,940
|
|
|
11
|
|
|
N/A
|
|
||||
MSL
(2)
|
15,928
|
|
|
(90
|
)
|
|
N/A
|
|
|
16,538
|
|
|
(71
|
)
|
|
N/A
|
|
||||
Securitized loans
|
7,527
|
|
|
7,489
|
|
|
N/A
|
|
|
7,937
|
|
|
7,934
|
|
|
N/A
|
|
||||
Total reverse portfolio serviced
|
27,014
|
|
|
7,406
|
|
|
N/A
|
|
|
28,415
|
|
|
7,874
|
|
|
N/A
|
|
||||
Total servicing portfolio unpaid principal balance
|
$
|
631,897
|
|
|
$
|
10,887
|
|
|
N/A
|
|
|
$
|
547,782
|
|
|
$
|
11,539
|
|
|
N/A
|
|
(1)
|
Subservicing and other amounts include loans we service for others, residential mortgage loans originated but have yet to be sold and agency REO balances for which we own the mortgage servicing rights.
|
|
Successor
|
||||||||||||||||||
Table 12. Fair Value MSR Valuation
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||
UPB
|
|
Carrying Amount
|
|
bps
|
|
UPB
|
|
Carrying Amount
|
|
bps
|
|||||||||
MSRs - fair value
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Credit sensitive
|
$
|
153,565
|
|
|
$
|
1,626
|
|
|
106
|
|
$
|
135,752
|
|
|
$
|
1,495
|
|
|
110
|
Interest sensitive - agency
|
150,127
|
|
|
1,855
|
|
|
124
|
|
159,729
|
|
|
2,170
|
|
|
136
|
||||
Total MSRs - fair value
|
$
|
303,692
|
|
|
$
|
3,481
|
|
|
115
|
|
$
|
295,481
|
|
|
$
|
3,665
|
|
|
124
|
|
Successor
|
|
|
Predecessor
|
||||
Table 13. MSRs - Fair Value, Roll Forward
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Fair value - beginning of period
|
$
|
3,665
|
|
|
|
$
|
2,937
|
|
Additions:
|
|
|
|
|
||||
Servicing retained from mortgage loans sold
|
66
|
|
|
|
68
|
|
||
Purchases of servicing rights
|
409
|
|
|
|
19
|
|
||
Dispositions:
|
|
|
|
|
||||
Sales of servicing rights
|
(260
|
)
|
|
|
—
|
|
||
Changes in fair value:
|
|
|
|
|
||||
Due to changes in valuation inputs or assumptions used in the valuation model:
|
|
|
|
|
||||
Credit sensitive
|
(121
|
)
|
|
|
181
|
|
||
Interest sensitive
|
(211
|
)
|
|
|
58
|
|
||
Other changes in fair value:
|
|
|
|
|
||||
Scheduled principal payments
|
(22
|
)
|
|
|
(19
|
)
|
||
Disposition of negative MSRs and other
(1)
|
12
|
|
|
|
9
|
|
||
Prepayments
|
|
|
|
|
||||
Voluntary prepayments
|
|
|
|
|
||||
Credit sensitive
|
(19
|
)
|
|
|
(30
|
)
|
||
Interest sensitive
|
(32
|
)
|
|
|
(21
|
)
|
||
Involuntary prepayments
|
|
|
|
|
||||
Credit sensitive
|
(2
|
)
|
|
|
(5
|
)
|
||
Interest sensitive
|
(4
|
)
|
|
|
(3
|
)
|
||
Fair value - end of period
|
$
|
3,481
|
|
|
|
$
|
3,194
|
|
(1)
|
Amounts primarily represent negative fair values reclassified from the MSR asset to reserves of advances and other receivables as underlying loans are removed from the MSR and other reclassification adjustments.
|
|
Successor
|
|
|
Predecessor
|
||
Table 14. MSRs - Fair Value
|
March 31, 2019
|
|
|
March 31, 2018
|
||
Credit Sensitive MSRs
|
|
|
|
|
||
Discount rate
|
11.3
|
%
|
|
|
11.4
|
%
|
Weighted average prepayment speeds
|
13.5
|
%
|
|
|
12.2
|
%
|
Weighted average life of loans
|
6.0 years
|
|
|
|
6.4 years
|
|
|
|
|
|
|
||
Interest Sensitive MSRs
|
|
|
|
|
||
Discount rate
|
9.4
|
%
|
|
|
9.2
|
%
|
Weighted average prepayment speeds
|
12.5
|
%
|
|
|
10.1
|
%
|
Weighted average life of loans
|
6.1 years
|
|
|
|
6.9 years
|
|
|
Successor
|
|
|
Predecessor
|
||||
Table 15. Excess Spread Financing
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Fair value - beginning of period
|
$
|
1,184
|
|
|
|
$
|
996
|
|
Additions:
|
|
|
|
|
||||
New financings
|
245
|
|
|
|
—
|
|
||
Deductions:
|
|
|
|
|
||||
Repayments of debt
|
(1
|
)
|
|
|
—
|
|
||
Settlements of principal balances
|
(50
|
)
|
|
|
(45
|
)
|
||
Fair value changes:
|
|
|
|
|
||||
Credit Sensitive
|
(32
|
)
|
|
|
46
|
|
||
Interest Sensitive
|
(37
|
)
|
|
|
4
|
|
||
Fair value - end of period
|
$
|
1,309
|
|
|
|
$
|
1,001
|
|
|
|
|
|
|
||||
|
Successor
|
|
|
Predecessor
|
||||
Key Assumptions
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Weighted average prepayment speeds
|
12.9
|
%
|
|
|
11.6
|
%
|
||
Weighted average life of loans
|
5.9 years
|
|
|
|
6.4 years
|
|
||
Discount rate
|
10.4
|
%
|
|
|
10.7
|
%
|
||
|
|
|
|
|
||||
Credit Sensitive
|
|
|
|
|
||||
Mortgage prepayment speeds
|
13.2
|
%
|
|
|
11.9
|
%
|
||
Average life of mortgage loans
|
5.9 years
|
|
|
|
6.3 years
|
|
||
Discount rate
|
10.9
|
%
|
|
|
11.1
|
%
|
||
|
|
|
|
|
||||
Interest Sensitive
|
|
|
|
|
||||
Mortgage prepayment speeds
|
12.4
|
%
|
|
|
10.3
|
%
|
||
Average life of mortgage loans
|
6.1 years
|
|
|
|
6.6 years
|
|
||
Discount rate
|
9.1
|
%
|
|
|
9.1
|
%
|
|
Successor
|
|
|
Predecessor
|
||||
Table 16. MSRs Financing Liability - Rollforward
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
||||
Fair value - beginning of period
|
$
|
32
|
|
|
|
$
|
10
|
|
Changes in fair value
(1)
:
|
|
|
|
|
||||
Changes in valuation inputs or assumptions used in the valuation model
|
6
|
|
|
|
25
|
|
||
Other changes in fair value
|
(4
|
)
|
|
|
(1
|
)
|
||
Fair value - end of period
|
$
|
34
|
|
|
|
$
|
34
|
|
|
|
|
|
|
||||
|
Successor
|
|
|
Predecessor
|
||||
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Weighted Average Assumptions
|
|
|
|
|
||||
Advance financing rates
|
3.9
|
%
|
|
|
4.3
|
%
|
||
Annual advance recovery rates
|
19.3
|
%
|
|
|
20.4
|
%
|
(1)
|
The changes in fair value related to our MSRs financing liability primarily relate to both scheduled and unscheduled principal payments reflected in the underlying MSRs and changes in the fair value model assumptions.
|
|
Successor
|
|
|
Predecessor
|
||||
Table 17. Leveraged Portfolio Characteristics
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Owned forward servicing portfolio - unencumbered
|
$
|
88,995
|
|
|
|
$
|
86,109
|
|
Owned forward servicing portfolio - encumbered
|
214,697
|
|
|
|
190,734
|
|
||
Subserviced forward servicing portfolio and other
|
301,191
|
|
|
|
189,558
|
|
||
Total unpaid principal balance
|
$
|
604,883
|
|
|
|
$
|
466,401
|
|
|
Successor
|
|
|
Predecessor
|
||||
Table 18. Reverse - Mortgage Portfolio Characteristics
|
March 31, 2019
|
|
|
March 31, 2018
|
||||
Loan count
|
184,807
|
|
|
|
209,343
|
|
||
Ending unpaid principal balance
|
$
|
27,014
|
|
|
|
$
|
34,014
|
|
Average loan amount
(1)
|
$
|
146,173
|
|
|
|
$
|
162,749
|
|
Average coupon
|
4.4
|
%
|
|
|
3.6
|
%
|
||
Average borrower age
|
80
|
|
|
|
78
|
|
(1)
|
Average loan amount is presented in whole dollar amounts.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 19. Originations - Operations
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenues
|
$
|
146
|
|
|
|
$
|
128
|
|
|
$
|
18
|
|
|
14
|
%
|
Expenses
|
104
|
|
|
|
109
|
|
|
(5
|
)
|
|
(5
|
)%
|
|||
Other income (expenses), net
|
3
|
|
|
|
—
|
|
|
3
|
|
|
100
|
%
|
|||
Income before income tax expense
|
$
|
45
|
|
|
|
$
|
19
|
|
|
$
|
26
|
|
|
137
|
%
|
Income before taxes margin
|
30.8
|
%
|
|
|
14.8
|
%
|
|
16.0
|
%
|
|
108
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenue
|
$
|
146
|
|
|
|
$
|
128
|
|
|
$
|
18
|
|
|
14
|
%
|
Pull through adjusted lock volume
|
$
|
5,960
|
|
|
|
$
|
4,862
|
|
|
$
|
1,098
|
|
|
23
|
%
|
Revenue basis points
(1)
|
2.45
|
%
|
|
|
2.63
|
%
|
|
1.64
|
%
|
|
62
|
%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Expenses
|
$
|
104
|
|
|
|
$
|
109
|
|
|
$
|
(5
|
)
|
|
(5
|
)%
|
Funded volume
|
$
|
5,716
|
|
|
|
$
|
5,087
|
|
|
$
|
629
|
|
|
12
|
%
|
Expenses basis points
(2)
|
1.82
|
%
|
|
|
2.14
|
%
|
|
(0.79
|
)%
|
|
(37
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Margin
|
0.63
|
%
|
|
|
0.49
|
%
|
|
2.43
|
%
|
|
496
|
%
|
(1)
|
Calculated on pull-through adjusted lock volume as revenue is recognized at the time of loan lock.
|
(2)
|
Calculated on funded volume as expenses are incurred based on closing of the loan.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 20. Originations - Revenues
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Service related, net - Originations
|
$
|
15
|
|
|
|
$
|
15
|
|
|
$
|
—
|
|
|
—
|
%
|
Net gain on mortgage loans held for sale
|
|
|
|
|
|
|
|
|
|||||||
Gain on loans originated and sold
|
46
|
|
|
|
56
|
|
|
(10
|
)
|
|
(18
|
)%
|
|||
Fair value adjustment on loans held for sale
|
10
|
|
|
|
(5
|
)
|
|
15
|
|
|
(300
|
)%
|
|||
Mark-to-market on locks and commitments
(1)
|
6
|
|
|
|
(1
|
)
|
|
7
|
|
|
700
|
%
|
|||
Mark-to-market on derivative/hedges
|
10
|
|
|
|
(2
|
)
|
|
12
|
|
|
600
|
%
|
|||
Capitalized servicing rights
|
61
|
|
|
|
65
|
|
|
(4
|
)
|
|
(6
|
)%
|
|||
Provision for repurchase reserves, net of release
|
(2
|
)
|
|
|
—
|
|
|
(2
|
)
|
|
(100
|
)%
|
|||
Total net gain on mortgage loans held for sale
|
131
|
|
|
|
113
|
|
|
18
|
|
|
16
|
%
|
|||
Total revenues - Originations
|
$
|
146
|
|
|
|
$
|
128
|
|
|
$
|
18
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|||||||
Consumer direct lock pull through adjusted volume
(2)
|
$
|
2,333
|
|
|
|
$
|
2,742
|
|
|
$
|
(409
|
)
|
|
(15
|
)%
|
Other locked pull through adjusted volume
(2)
|
3,627
|
|
|
|
2,120
|
|
|
1,507
|
|
|
71
|
%
|
|||
Total pull through adjusted volume
|
$
|
5,960
|
|
|
|
$
|
4,862
|
|
|
$
|
1,098
|
|
|
23
|
%
|
Funded volume
|
$
|
5,716
|
|
|
|
$
|
5,087
|
|
|
$
|
629
|
|
|
12
|
%
|
Funded HARP volume
|
$
|
81
|
|
|
|
$
|
436
|
|
|
$
|
(355
|
)
|
|
(81
|
)%
|
Recapture percentage
|
27.5
|
%
|
|
|
27.4
|
%
|
|
0.1
|
%
|
|
—
|
%
|
|||
Purchase percentage of funded volume
|
51.7
|
%
|
|
|
39.9
|
%
|
|
11.8
|
%
|
|
30
|
%
|
|||
Value of capitalized servicing
|
127 bps
|
|
|
|
124 bps
|
|
|
3
|
|
|
2
|
%
|
(1)
|
Mark-to-market on locks and commitments includes our fair value mark-to-market adjustments on IRLCs.
|
(2)
|
Pull through adjusted volume represents the expected funding from locks taken during the period.
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 21. Originations - Expenses
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Salaries, wages and benefits
|
$
|
69
|
|
|
|
$
|
66
|
|
|
$
|
3
|
|
|
5
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|||||||
Loan origination expenses
|
10
|
|
|
|
14
|
|
|
(4
|
)
|
|
(29
|
)%
|
|||
Corporate and other general and administrative expenses
|
14
|
|
|
|
11
|
|
|
3
|
|
|
27
|
%
|
|||
Marketing and professional service fee
|
8
|
|
|
|
15
|
|
|
(7
|
)
|
|
(47
|
)%
|
|||
Depreciation and amortization
|
3
|
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||
Total general and administrative
|
35
|
|
|
|
43
|
|
|
(8
|
)
|
|
(19
|
)%
|
|||
Total expenses - Originations
|
$
|
104
|
|
|
|
$
|
109
|
|
|
$
|
(5
|
)
|
|
(5
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 22. Originations - Other Income (Expenses), Net
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Interest income
|
$
|
17
|
|
|
|
$
|
15
|
|
|
$
|
2
|
|
|
13
|
%
|
Interest expense
|
(18
|
)
|
|
|
(15
|
)
|
|
3
|
|
|
20
|
%
|
|||
Other income
|
4
|
|
|
|
—
|
|
|
4
|
|
|
100
|
%
|
|||
Total other income, net - Originations
|
$
|
3
|
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average note rate - mortgage loans held for sale
|
4.9
|
%
|
|
|
4.2
|
%
|
|
0.7
|
%
|
|
17
|
%
|
|||
Weighted average cost of funds (excluding facility fees)
|
4.7
|
%
|
|
|
4.1
|
%
|
|
0.6
|
%
|
|
15
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 23. Xome - Operations
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenues
|
$
|
96
|
|
|
|
$
|
65
|
|
|
$
|
31
|
|
|
48
|
%
|
Expenses
|
99
|
|
|
|
52
|
|
|
47
|
|
|
90
|
%
|
|||
Other income (expenses), net
|
11
|
|
|
|
9
|
|
|
2
|
|
|
22
|
%
|
|||
Income before income tax expense
|
$
|
8
|
|
|
|
$
|
22
|
|
|
$
|
(14
|
)
|
|
(64
|
)%
|
Income before taxes margin - Xome
|
8.3
|
%
|
|
|
33.8
|
%
|
|
(25.5
|
)%
|
|
(75
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 24. Xome - Revenues
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Exchange
|
$
|
20
|
|
|
|
$
|
26
|
|
|
$
|
(6
|
)
|
|
(23
|
)%
|
Services
|
71
|
|
|
|
33
|
|
|
38
|
|
|
115
|
%
|
|||
Data/Technology
|
5
|
|
|
|
6
|
|
|
(1
|
)
|
|
(17
|
)%
|
|||
Total revenues - Xome
|
$
|
96
|
|
|
|
$
|
65
|
|
|
$
|
31
|
|
|
48
|
%
|
|
|
|
|
|
|
|
|
|
|||||||
Key Metrics
|
|
|
|
|
|
|
|
|
|||||||
Exchange property listings sold
|
2,421
|
|
|
|
2,880
|
|
|
(459
|
)
|
|
(16
|
)%
|
|||
Exchange property listings at period end
|
6,634
|
|
|
|
6,849
|
|
|
(215
|
)
|
|
(3
|
)%
|
|||
Services completed orders
|
379,585
|
|
|
|
111,339
|
|
|
268,246
|
|
|
241
|
%
|
|||
Percentage of revenue earned from third-party customers
|
53.0
|
%
|
|
|
28.4
|
%
|
|
24.6
|
%
|
|
87
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 25. Xome - Expenses
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Salaries, wages and benefits
|
$
|
38
|
|
|
|
$
|
24
|
|
|
$
|
14
|
|
|
58
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|||||||
Operational expenses
|
57
|
|
|
|
25
|
|
|
32
|
|
|
128
|
%
|
|||
Depreciation and amortization
|
4
|
|
|
|
3
|
|
|
1
|
|
|
33
|
%
|
|||
Total general and administrative
|
61
|
|
|
|
28
|
|
|
33
|
|
|
118
|
%
|
|||
Total expenses - Xome
|
$
|
99
|
|
|
|
$
|
52
|
|
|
$
|
47
|
|
|
90
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 26. Corporate and Other - Operations
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Revenues
|
$
|
—
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
%
|
Expenses
|
45
|
|
|
|
21
|
|
|
24
|
|
|
114
|
%
|
|||
Other income (expenses), net
|
(55
|
)
|
|
|
(34
|
)
|
|
(21
|
)
|
|
62
|
%
|
|||
Loss before income tax benefit
|
$
|
(100
|
)
|
|
|
$
|
(55
|
)
|
|
$
|
(45
|
)
|
|
82
|
%
|
|
Successor
|
||||||
Table 27. Legacy Portfolio
|
March 31, 2019
|
|
December 31, 2018
|
||||
Performing - UPB
|
$
|
143
|
|
|
$
|
145
|
|
Nonperforming (90+ delinquency) - UPB
|
25
|
|
|
27
|
|
||
REO - estimated fair value
|
4
|
|
|
4
|
|
||
Total legacy portfolio
|
$
|
172
|
|
|
$
|
176
|
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 28. Corporate and Other - Expenses
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Salaries, wages and benefits
|
$
|
22
|
|
|
|
$
|
14
|
|
|
$
|
8
|
|
|
57
|
%
|
General and administrative
|
|
|
|
|
|
|
|
|
|||||||
Operational expenses
|
13
|
|
|
|
5
|
|
|
8
|
|
|
160
|
%
|
|||
Depreciation and amortization
|
10
|
|
|
|
2
|
|
|
8
|
|
|
400
|
%
|
|||
Total general and administrative
|
23
|
|
|
|
7
|
|
|
16
|
|
|
229
|
%
|
|||
Total expenses - Corporate and Other
|
$
|
45
|
|
|
|
$
|
21
|
|
|
$
|
24
|
|
|
114
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 29. Corporate and Other - Other Income (Expenses), Net
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Interest income, legacy portfolio
|
$
|
2
|
|
|
|
$
|
3
|
|
|
$
|
(1
|
)
|
|
(33
|
)%
|
Other interest income
|
—
|
|
|
|
1
|
|
|
(1
|
)
|
|
(100
|
)%
|
|||
Total interest income
|
2
|
|
|
|
4
|
|
|
(2
|
)
|
|
(50
|
)%
|
|||
|
|
|
|
|
|
|
|
|
|||||||
Interest expense, legacy portfolio
|
—
|
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(100
|
)%
|
|||
Interest expense on unsecured senior notes
|
(51
|
)
|
|
|
(35
|
)
|
|
16
|
|
|
46
|
%
|
|||
Other interest expense
|
(6
|
)
|
|
|
(2
|
)
|
|
4
|
|
|
200
|
%
|
|||
Total interest expense
|
(57
|
)
|
|
|
(38
|
)
|
|
19
|
|
|
50
|
%
|
|||
Other income (expense)
|
—
|
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|||
Other income (expenses), net - Corporate and Other
|
$
|
(55
|
)
|
|
|
$
|
(34
|
)
|
|
$
|
(21
|
)
|
|
(62
|
)%
|
|
|
|
|
|
|
|
|
|
|||||||
Weighted average cost - unsecured senior notes
|
7.9
|
%
|
|
|
7.3
|
%
|
|
0.6
|
%
|
|
8
|
%
|
|
Successor
|
|
|
|
|
|||||||||
Table 31. Assets
|
March 31, 2019
|
|
December 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Cash and cash equivalents
|
$
|
181
|
|
|
$
|
242
|
|
|
$
|
(61
|
)
|
|
(25
|
)%
|
Mortgage servicing rights
|
3,488
|
|
|
3,676
|
|
|
(188
|
)
|
|
(5
|
)%
|
|||
Advances and other receivables, net
|
1,147
|
|
|
1,194
|
|
|
(47
|
)
|
|
(4
|
)%
|
|||
Reverse mortgage interests, net
|
7,489
|
|
|
7,934
|
|
|
(445
|
)
|
|
(6
|
)%
|
|||
Mortgage loans held for sale at fair value
|
2,170
|
|
|
1,631
|
|
|
539
|
|
|
33
|
%
|
|||
Deferred tax asset, net
|
1,024
|
|
|
967
|
|
|
57
|
|
|
6
|
%
|
|||
Other
|
2,147
|
|
|
1,329
|
|
|
818
|
|
|
62
|
%
|
|||
Total assets
|
$
|
17,646
|
|
|
$
|
16,973
|
|
|
$
|
673
|
|
|
4
|
%
|
|
Successor
|
|
|
|
|
|||||||||
Table 32. Liabilities and Stockholders’ Equity
|
March 31, 2019
|
|
December 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Unsecured senior notes, net
|
$
|
2,461
|
|
|
$
|
2,459
|
|
|
$
|
2
|
|
|
—
|
%
|
Advance facilities, net
|
578
|
|
|
595
|
|
|
(17
|
)
|
|
(3
|
)%
|
|||
Warehouse facilities, net
|
3,050
|
|
|
2,349
|
|
|
701
|
|
|
30
|
%
|
|||
MSR related liabilities - nonrecourse at fair value
|
1,343
|
|
|
1,216
|
|
|
127
|
|
|
10
|
%
|
|||
Other nonrecourse debt, net
|
6,388
|
|
|
6,795
|
|
|
(407
|
)
|
|
(6
|
)%
|
|||
Other liabilities
|
2,065
|
|
|
1,614
|
|
|
451
|
|
|
28
|
%
|
|||
Total liabilities
|
15,885
|
|
|
15,028
|
|
|
857
|
|
|
6
|
%
|
|||
Total stockholders’ equity attributable to Nationstar
|
1,758
|
|
|
1,942
|
|
|
(184
|
)
|
|
(9
|
)%
|
|||
Noncontrolling interest
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
%
|
|||
Total liabilities and stockholders’ equity
|
$
|
17,646
|
|
|
$
|
16,973
|
|
|
$
|
673
|
|
|
4
|
%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 33. Operating Cash Flow
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Originations net sales activities
|
$
|
116
|
|
|
|
$
|
366
|
|
|
$
|
(250
|
)
|
|
(68
|
)%
|
Cash provided by operating profits and changes in working capital and other assets
|
169
|
|
|
|
571
|
|
|
(402
|
)
|
|
(70
|
)%
|
|||
Net cash attributable to operating activities
|
$
|
285
|
|
|
|
$
|
937
|
|
|
$
|
(652
|
)
|
|
(70
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 34. Investing Cash Flows
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Acquisitions, net
|
$
|
(85
|
)
|
|
|
$
|
—
|
|
|
$
|
(85
|
)
|
|
(100
|
)%
|
Purchase of forward mortgage servicing rights, net of liabilities incurred
|
(130
|
)
|
|
|
(17
|
)
|
|
(113
|
)
|
|
665
|
%
|
|||
Proceeds on sale of assets
|
—
|
|
|
|
13
|
|
|
(13
|
)
|
|
(100
|
)%
|
|||
Proceeds on sale of forward and reverse mortgage servicing rights
|
243
|
|
|
|
—
|
|
|
243
|
|
|
100
|
%
|
|||
Other
|
(10
|
)
|
|
|
(17
|
)
|
|
7
|
|
|
(41
|
)%
|
|||
Net cash attributable to investing activities
|
$
|
18
|
|
|
|
$
|
(21
|
)
|
|
$
|
39
|
|
|
(186
|
)%
|
|
Successor
|
|
|
Predecessor
|
|
|
|
|
|||||||
Table 35. Financing Cash Flow
|
Three Months Ended March 31, 2019
|
|
|
Three Months Ended March 31, 2018
|
|
$ Change
|
|
% Change
|
|||||||
Decrease in advance facilities
|
$
|
(30
|
)
|
|
|
$
|
(293
|
)
|
|
$
|
263
|
|
|
(90
|
)%
|
Increase (decrease) in warehouse facilities
|
307
|
|
|
|
(125
|
)
|
|
432
|
|
|
(346
|
)%
|
|||
Repayment of notes payable
|
(294
|
)
|
|
|
—
|
|
|
(294
|
)
|
|
100
|
%
|
|||
Payment of unsecured senior notes and nonrecourse debt
|
(5
|
)
|
|
|
(24
|
)
|
|
19
|
|
|
(79
|
)%
|
|||
Issuance of excess spread financing
|
245
|
|
|
|
—
|
|
|
245
|
|
|
100
|
%
|
|||
Settlements of excess spread financing
|
(50
|
)
|
|
|
(45
|
)
|
|
(5
|
)
|
|
11
|
%
|
|||
Decrease in participating interest financing in reverse mortgage interests
|
(408
|
)
|
|
|
(574
|
)
|
|
166
|
|
|
(29
|
)%
|
|||
Changes in HECM securitizations
|
(127
|
)
|
|
|
126
|
|
|
(253
|
)
|
|
(201
|
)%
|
|||
Other
|
18
|
|
|
|
(4
|
)
|
|
22
|
|
|
(550
|
)%
|
|||
Net cash attributable to financing activities
|
$
|
(344
|
)
|
|
|
$
|
(939
|
)
|
|
$
|
595
|
|
|
(63
|
)%
|
▪
|
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.
|
|
Successor
|
||||||
Table 36. Debt
|
March 31, 2019
|
|
December 31, 2018
|
||||
Advance facilities, net
|
$
|
578
|
|
|
$
|
595
|
|
Warehouse facilities, net
|
3,050
|
|
|
2,349
|
|
||
Unsecured senior notes, net
|
2,461
|
|
|
2,459
|
|
Year Ending December 31,
|
|
Amount
|
||
2019
|
|
$
|
—
|
|
2020
|
|
—
|
|
|
2021
|
|
592
|
|
|
2022
|
|
206
|
|
|
2023
|
|
950
|
|
|
Thereafter
|
|
750
|
|
|
Unsecured senior notes
|
|
2,498
|
|
|
Unamortized debt issuance costs
|
|
(37
|
)
|
|
Unsecured senior notes, net of unamortized debt issuance costs
|
|
$
|
2,461
|
|
|
|
Incorporated by Reference
|
|
|||
Exhibit Number
|
Description
|
Form
|
File No.
|
Exhibit
|
Filing Date
|
Filed or Furnished Herewith
|
|
|
|
|
|
|
|
10.1
|
|
|
|
|
X
|
|
10.2
|
|
|
|
|
X
|
|
10.3
|
|
|
|
|
X
|
|
10.4
|
|
|
|
|
X
|
|
31.1
|
|
|
|
|
X
|
|
31.2
|
|
|
|
|
X
|
|
32.1
|
|
|
|
|
X
|
|
32.2
|
|
|
|
|
X
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
X
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
X
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
X
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
X
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
|
|
X
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
X
|
|
|
MR. COOPER GROUP INC.
|
|
|
|
May 8, 2019
|
|
/s/ Jay Bray
|
Date
|
|
Jay Bray
Chief Executive Officer (Principal Executive Officer) |
|
|
|
May 8, 2019
|
|
/s/ Christopher G. Marshall
|
Date
|
|
Christopher G. Marshall
Vice Chairman & Chief Financial Officer
(Principal Financial and Accounting Officer)
|
1 Year Mr Cooper Chart |
1 Month Mr Cooper Chart |
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