Segment Reporting

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Management has organized the Company into six reportable segments based primarily on its services as follows:

• Servicing — consists of operations that perform servicing for third-party credit owners of mortgage loans, as well as the Company's own mortgage loan portfolio, on a fee-for-service basis.

• Originations — consists of operations that purchase and originate mortgage loans that are sold to third parties with servicing rights generally retained.

• Reverse Mortgage — consists of operations that purchase and originate HECMs that are securitized, but remain on the consolidated balance sheet as collateral for secured borrowings. This segment also performs servicing for third-party credit owners in reverse loans and provides other complementary services for the reverse mortgage market, such as real estate owned property management and disposition.

• Asset Receivables Management — performs collections of post charge-off deficiency balances for its own portfolio and on behalf of third-party securitization trusts and other asset owners.

• Insurance — provides voluntary insurance for residential loan borrowers and lender-placed hazard insurance for borrowers and credit owners, as well as other ancillary products, through the Company’s insurance agency for a commission. Commissions are earned on lender-placed insurance only if permitted under applicable laws and regulations.

• Loans and Residuals — consists of the assets and mortgage-backed debt of the Residual Trusts, an unencumbered mortgage loan portfolio and real estate owned.

In order to reconcile the financial results for the Company’s reportable segments to the consolidated results, the Company has presented the revenue and expenses of the Non-Residual Trusts and other non-reportable operating segments, as well as certain corporate expenses that have not been allocated to the business segments, in Other. Intersegment servicing revenues and expenses have been eliminated. Intersegment revenues are recognized on the same basis of accounting as such revenue is recognized on the consolidated statements of comprehensive income (loss).

The following tables present select financial information and total assets by reportable segment (in thousands):

	For the Year Ended December 31, 2014
	Servicing			Originations		Reverse Mortgage			ARM		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3) (4)	$	563,466		$	481,822	$	157,161		$	58,230	$	71,030	$	134,469	$	41,179		$	(20,204	)	$	1,487,153
Interest expense	43,998			29,841		3,773			—		—		77,858		147,633			—			303,103
Depreciation and amortization	35,275			19,007		9,334			4,579		4,489		—		37			—			72,721
Goodwill impairment	—			—		82,269			—		—		—		—			—			82,269
Other expenses, net (5)	625,267			295,894		166,210			27,152		27,353		25,446		19,818			(20,204		)	1,166,936
Income (loss) before income taxes	(142,475		)	137,080		(104,425		)	26,499		39,188		31,026		(106,233		)	—			(119,340		)
	At December 31, 2014
Total assets	$	4,777,980		$	1,493,851	$	10,476,947		$	107,232	$	129,104	$	1,394,498	$	1,297,068		$	(684,703	)	$	18,991,977

	For the Year Ended December 31, 2013
	Servicing		Originations		Reverse Mortgage		ARM		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	741,778	$	630,441	$	167,664	$	40,942	$	84,507	$	144,660	$	11,714		$	(19,207	)	$	1,802,499
Interest expense	25,921		28,469		7,974		—		—		86,974		123,317			—			272,655
Depreciation and amortization	37,872		10,836		11,145		6,260		4,883		—		31			—			71,027
Other expenses, net (5)	452,978		328,150		148,193		22,840		33,655		25,417		47,545			(19,207		)	1,039,571
Income (loss) before income taxes	224,157		262,986		352		11,842		45,969		32,450		(164,938		)	—			412,818
	At December 31, 2013
Total assets	$	4,261,119	$	1,450,366	$	9,192,799	$	51,699	$	223,191	$	1,497,882	$	1,861,922		$	(1,151,449	)	$	17,387,529

	For the Year Ended December 31, 2012
	Servicing		Originations			Reverse Mortgage		ARM		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	348,931	$	5,917		$	13,565	$	38,925	$	73,908	$	154,356	$	9,206		$	(21,001	)	$	623,807
Interest expense	4,882		20			1,217		—		—		96,337		77,215			—			179,671
Depreciation and amortization	34,719		132			1,236		7,774		5,377		—		29			—			49,267
Other expenses, net (5)	262,515		8,140			7,991		22,623		35,175		41,975		31,544			(21,001		)	388,962
Income (loss) before income taxes	45,759		(2,375		)	3,121		8,528		33,356		15,928		(139,768		)	—			(35,451		)

__________

(1) The Servicing, Reverse Mortgage and Asset Receivables Management segments include net servicing revenue and fees with external customers of $530.8 million, $35.4 million and $35.3 million for the year ended December 31, 2014, respectively, $715.7 million, $27.3 million and $40.4 million for the year ended December 31, 2013, respectively, and $325.7 million, $4.4 million and $38.4 million for the year ended December 31, 2012, respectively.

(2) The Servicing and Asset Receivables Management segments include net servicing revenue and fees of $19.7 million and $0.5 million for the year ended December 31, 2014, respectively, $18.8 million and $0.4 million for the year ended December 31, 2013, respectively, and $20.4 million and $0.5 million for the year ended December 31, 2012, respectively, associated with intercompany activity with the Loans and Residuals segment and Other non-reportable segment.

(3) The Loans and Residuals segment recognized $134.5 million, $144.7 million and $154.4 million in interest income on loans for the years ended December 31, 2014, 2013 and 2012, respectively.

(4) The Other non-reportable segment recognized $36.8 million in asset management performance fees for the year ended December 31, 2014. Refer to Note 2 for additional information.

(5) Other expenses, net in the tables above includes salaries and benefits, general and administrative, and other expenses, net consolidated on the statements of comprehensive income (loss).