Payables and Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2017

Schedule of Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following (in thousands):



	June 30, 2017		December 31, 2016
Loans subject to repurchase from Ginnie Mae ⁽¹⁾	$	248,596	$	184,289
Accounts payable and accrued liabilities	129,291		155,556
Curtailment liability	120,043		121,305
Employee-related liabilities	51,741		91,063
Originations liability	44,020		62,969
Servicing rights and related advance purchases payable	15,341		18,187
Accrued interest payable	9,625		9,414
Uncertain tax positions ⁽²⁾	7,015		9,414
Derivative instruments	5,924		11,804
Payables to insurance carriers	3,355		5,452
Margin payable on derivative instruments	2,387		30,941
Other	64,052		58,617
Total payables and accrued liabilities	$	701,390	$	759,011

__________

(1)

For certain mortgage loans that the Company has pooled and securitized with Ginnie Mae, the Company as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. As a result of this unilateral right, the Company must recognize the delinquent loan on its consolidated balance sheets when the loan becomes 90 days delinquent and establish a corresponding liability regardless of the Company’s intention to repurchase the loan.


(2)	Included in the uncertain tax position at December 31, 2016 is $2.5 million related to the sale of insurance business as described in Note 1. In connection with the closing of the sale on February 1, 2017, the uncertain tax position related to the insurance business was reversed.

Schedule of Exit Liability by Type of Cost

The following table presents the current period activity in the accrued exit liability resulting from each of the 2015 Actions, 2016 Actions and 2017 Actions described above, which is included in payables and accrued liabilities on the consolidated balance sheets, and the related charges and cash payments and other settlements associated with these actions (in thousands):



	For the Six Months Ended June 30, 2017
	2015 Actions			2016 Actions			2017 Actions			Total
Balance at January 1, 2017	$	988		$	11,878		$	—		$	12,866
Charges
Severance and related costs ⁽¹⁾	(57		)	118			6,990			7,051
Office closures and other costs	29			50			839			918
Total charges	(28		)	168			7,829			7,969
Cash payments or other settlements
Severance and related costs	(163		)	(10,609		)	(1,108		)	(11,880		)
Office closures and other costs	(328		)	(289		)	(128		)	(745		)
Total cash payments or other settlements	(491		)	(10,898		)	(1,236		)	(12,625		)
Balance at June 30, 2017	$	469		$	1,148		$	6,593		$	8,210

Cumulative charges incurred
Severance and related costs	7,181			19,886			6,990			34,057
Office closures and other costs	6,564			3,828			839			11,231
Total cumulative charges incurred	$	13,745		$	23,714		$	7,829		$	45,288

Total expected costs to be incurred ⁽²⁾	$	13,745		$	23,738		$	11,490		$	48,973

__________


(1)	Includes adjustments to prior year accruals resulting from changes to previous estimates.


(2)	Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year.

Schedule of Exit Liability by Segment

The following table presents the current period activity for each of the 2015 Actions, 2016 Actions, and 2017 Actions described above by reportable segment (in thousands):



	For the Six Months Ended June 30, 2017
	Servicing			Originations			Reverse Mortgage			Other			Total Consolidated
Balance at January 1, 2017
2015 Actions	$	453		$	260		$	275		$	—		$	988
2016 Actions	4,323			1,023			2,222			4,310			11,878
2017 Actions	—			—			—			—			—
Total balance at January 1, 2017	4,776			1,283			2,497			4,310			12,866
Charges
2015 Actions⁽¹⁾	(57		)	21			8			—			(28		)
2016 Actions⁽¹⁾	82			(126		)	94			118			168
2017 Actions	5,659			980			1,190			—			7,829
Total charges	5,684			875			1,292			118			7,969
Cash payments or other settlements
2015 Actions	(133		)	(185		)	(173		)	—			(491		)
2016 Actions	(3,875		)	(876		)	(1,899		)	(4,248		)	(10,898		)
2017 Actions	(618		)	(457		)	(161		)	—			(1,236		)
Total cash payments or other settlements	(4,626		)	(1,518		)	(2,233		)	(4,248		)	(12,625		)
Balance at June 30, 2017
2015 Actions	263			96			110			—			469
2016 Actions	530			21			417			180			1,148
2017 Actions	5,041			523			1,029			—			6,593
Total balance at June 30, 2017	$	5,834		$	640		$	1,556		$	180		$	8,210

Total cumulative charges incurred
2015 Actions	$	6,424		$	4,611		$	1,859		$	851		$	13,745
2016 Actions	11,684			1,010			5,320			5,700			23,714
2017 Actions	5,659			980			1,190			—			7,829
Total cumulative charges incurred	$	23,767		$	6,601		$	8,369		$	6,551		$	45,288

Total expected costs to be incurred
2015 Actions	$	6,424		$	4,611		$	1,859		$	851		$	13,745
2016 Actions	11,684			1,010			5,344			5,700			23,738
2017 Actions ⁽²⁾	9,201			980			1,248			61			11,490
Total expected costs to be incurred	$	27,309		$	6,601		$	8,451		$	6,612		$	48,973

__________


(1)	Includes adjustments to prior year accruals resulting from changes to previous estimates.


(2)	Total expected costs for the 2017 Actions are based on actions as set forth in the 2017 operating plan. These expected costs could change based on additional actions as determined by management throughout the year.