Segment Reporting

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure

Segment Reporting

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

• Servicing — performs servicing for the Company's mortgage loan portfolio and on behalf of third-party credit owners of mortgage loans for a fee and also performs subservicing for third-party owners of MSR. The Servicing segment also operates complementary businesses including a collections agency that performs collections of post charge-off deficiency balances for third parties and the Company. Commencing February 1, 2017, another insurance agency owned by the Company began to provide insurance marketing services to a third party with respect to voluntary insurance policies, including hazard insurance (refer to Note 1 for additional information). In addition, the Servicing segment holds the assets and mortgage-backed debt of the Residual Trusts.

• Originations — originates and purchases mortgage loans that are intended for sales to third parties.

• Reverse Mortgage — primarily focuses on the servicing of reverse loans for the Company's own reverse mortgage portfolio and subservicing on behalf of third-party credit owners of reverse loans. The Reverse Mortgage segment also provides complementary services for the reverse mortgage market, such as real estate owned property management and disposition, for a fee. Effective January 2017, the Company exited the reverse mortgage originations business. As of June 30, 2017, the Company did not have any reverse loans remaining in its originations pipeline and is in the process of finalizing the shutdown of the reverse mortgage originations business. The Company will continue to fund undrawn tails available to borrowers.

The following tables present select financial information for the reportable segments (in thousands). 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 revenues and expenses have been eliminated.

	For the Three Months Ended June 30, 2017
	Servicing			Originations		Reverse Mortgage			Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	117,426		$	80,520	$	15,409		$	200		$	(4,768	)	$	208,787
Income (loss) before income taxes	(43,986		)	20,007		(16,500		)	(52,136		)	—			(92,615		)

	For the Three Months Ended June 30, 2016
	Servicing			Originations		Reverse Mortgage			Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	72,813		$	110,209	$	16,137		$	45		$	(11,731	)	$	187,473
Income (loss) before income taxes	(356,026		)	45,615		(26,944		)	(42,229		)	—			(379,584		)

__________

(1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $2.4 million and $3.1 million for the three months ended June 30, 2017 and 2016, respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $0.6 million and $1.0 million for the three months ended June 30, 2017 and 2016, respectively, which reduced net gains on sales of loans recognized by the Originations segment.

(2) The Servicing segment recorded intercompany revenues for fees earned related to certain loan originations completed by the Originations segment from leads generated through the Servicing segment's servicing portfolio of $3.0 million and $9.5 million for the three months ended June 30, 2017 and 2016, respectively.

(3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $0.2 million for the three months ended June 30, 2017 and 2016, respectively.

	For the Six Months Ended June 30, 2017
	Servicing			Originations		Reverse Mortgage			Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	265,206		$	161,328	$	37,902		$	710		$	(11,074	)	$	454,072
Income (loss) before income taxes	(10,819		)	30,842		(21,799		)	(86,453		)	—			(88,229		)

	For the Six Months Ended June 30, 2016
	Servicing			Originations		Reverse Mortgage			Other			Eliminations			Total Consolidated
Total revenues (1) (2) (3)	$	9,558		$	210,486	$	60,232		$	75		$	(26,107	)	$	254,244
Income (loss) before income taxes	(612,347		)	62,016		(21,917		)	(86,227		)	—			(658,475		)

__________

(1) The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Other non-reportable segment of $5.3 million and $6.2 million for the six months ended June 30, 2017 and 2016, respectively. Included in these amounts are late fees that were waived as an incentive for borrowers refinancing their loans of $1.6 million and $2.0 million for the six months ended June 30, 2017 and 2016, respectively, which reduced net gains on sales of loans recognized by the Originations segment.

(2) The Servicing segment recorded intercompany revenues for fees earned related to certain loan originations completed by the Originations segment from leads generated through the Servicing segment's servicing portfolio of $7.4 million and $21.0 million for the six months ended June 30, 2017 and 2016, respectively.

(3) The Originations segment recorded intercompany revenues for fees earned supporting the Servicing segment in administrative functions relating to the acquisition of certain servicing rights of less than $0.1 million and $0.9 million for the six months ended June 30, 2017 and 2016, respectively.