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, an 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. In addition, the Servicing segment held the assets and mortgage-backed debt of the Residual Trusts until their sale and deconsolidation in November 2018.


•	Originations —originates and purchases mortgage loans that are intended for sale 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. The Company no longer has any reverse loans remaining in its originations pipeline and has finalized the shutdown of the reverse mortgage originations business. The Company continues 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 corporate expenses, in the Corporate and Other non-reportable segment. Intersegment revenues and expenses have been eliminated. Effective January 1, 2018, the Company no longer allocates corporate overhead, including depreciation and amortization, to our operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation.



	Successor
	For the Period From February 10, 2018 Through December 31, 2018
	Servicing			Originations			Reverse Mortgage			Corporate and Other			Eliminations			Total Consolidated
Net servicing revenue and fees⁽¹⁾⁽²⁾	$	321,833		$	—		$	22,361		$	55		$	(4,915	)	$	339,334
Net gains on sales of loans⁽²⁾	564			159,787			—			—			1,359			161,710
Net fair value gains on reverse loans and related HMBS obligations	—			—			46,833			—			—			46,833
Interest income on loans	1,792			40			—			—			—			1,832
Other revenues⁽³⁾	86,481			23,734			5,581			1,498			(8,063		)	109,231
Total revenues	410,670			183,561			74,775			1,553			(11,619		)	658,940

Interest expense	15,356			29,445			52,824			111,696			—			209,321
Depreciation and amortization	14,062			15,691			1,632			973			—			32,358
Goodwill and intangible assets impairment	7,400			16,260			—			—			—			23,660
Other expenses, net⁽⁴⁾	296,439			156,534			64,832			107,578			(11,619		)	613,764
Total expenses	333,257			217,930			119,288			220,247			(11,619		)	879,103

Reorganization items	—			—			—			(2,726		)	—			(2,726		)
Other gains (losses)⁽⁶⁾	(6,878		)	—			—			22,022			—			15,144

Income (loss) before income taxes	$	70,535		$	(34,369	)	$	(44,513	)	$	(199,398	)	$	—		$	(207,745	)

	At December 31, 2018
Total assets	$	1,900,630		$	1,017,847		$	8,460,374		$	212,761		$	(307,086	)	$	11,284,526




	Predecessor
	For the Period From January 1, 2018 Through February 9, 2018
	Servicing			Originations		Reverse Mortgage			Corporate and Other		Eliminations			Total Consolidated
Net servicing revenue and fees⁽¹⁾⁽²⁾	$	127,503		$	—	$	2,029		$	—	$	(847	)	$	128,685
Net gains on sales of loans⁽²⁾	216			27,490		—			—		257			27,963
Net fair value gains on reverse loans and related HMBS obligations	—			—		10,576			—		—			10,576
Interest income on loans	3,381			6		—			—		—			3,387
Other revenues⁽³⁾	14,451			2,389		602			89		(869		)	16,662
Total revenues	145,551			29,885		13,207			89		(1,459		)	187,273

Interest expense	9,606			9,675		11,956			7,519		—			38,756
Depreciation and amortization	3,252			265		228			65		—			3,810
Other expenses, net⁽⁴⁾	48,649			21,580		9,579			12,808		(1,459		)	91,157
Total expenses	61,507			31,520		21,763			20,392		(1,459		)	133,723

Reorganization items and fresh start accounting adjustments	(14,588		)	9,612		7,423			462,116		—			464,563
Other gains⁽⁶⁾	158			—		—			2,718		—			2,876

Income (loss) before income taxes	$	69,614		$	7,977	$	(1,133	)	$	444,531	$	—		$	520,989



	Predecessor
	For the Year Ended December 31, 2017
	Servicing			Originations			Reverse Mortgage			Corporate and Other			Eliminations			Total Consolidated
Net servicing revenue and fees⁽¹⁾⁽²⁾	$	328,736		$	—		$	27,566		$	—		$	(9,620	)	$	346,682
Net gains on sales of loans⁽²⁾	607			280,967			—			—			2,817			284,391
Net fair value gains on reverse loans and related HMBS obligations	—			—			42,419			—			—			42,419
Interest income on loans	41,147			48			—			—			—			41,195
Other revenues⁽³⁾	94,558			31,329			2,750			933			(12,997		)	116,573
Total revenues	465,048			312,344			72,735			933			(19,800		)	831,260

Interest expense	53,593			41,555			31,435			134,661			—			261,244
Depreciation and amortization	34,242			2,811			3,010			701			—			40,764
Other expenses, net⁽⁴⁾⁽⁵⁾	563,087			199,994			99,185			150,247			(19,800		)	992,713
Total expenses	650,922			244,360			133,630			285,609			(19,800		)	1,294,721

Reorganization items	—			—			—			(37,645		)	—			(37,645		)
Other gains (losses)⁽⁶⁾	63,548			(719		)	(1,345		)	9,366			—			70,850

Income (loss) before income taxes	$	(122,326	)	$	67,265		$	(62,240	)	$	(312,955	)	$	—		$	(430,256	)

	At December 31, 2017
Total assets	$	2,957,173		$	877,193		$	10,100,149		$	460,193		$	(230,511	)	$	14,164,197

__________


(1)	The Servicing segment recorded intercompany servicing revenue and fees from activity with the Originations segment and the Corporate and Other non-reportable segment of $4.9 million, $0.8 million and $9.6 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively.

(2)

Included in intercompany servicing revenue and fees for the Servicing segment are late fees that were waived as an incentive for borrowers refinancing their loans of $1.4 million, $0.3 million and $2.8 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively, which reduced net gains on sales of loans recognized by the Originations segment.

(3)

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 $8.0 million, $0.9 million and $12.9 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively. The expenses incurred by the Originations segment for these originations are included in other expenses, net in the tables above.


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


(5)	Effective January 1, 2018, the Company no longer allocates corporate overhead, including depreciation and amortization, to its operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation.


(6)	Other gains (losses) in the tables above include other net fair value gains, net losses on extinguishment of debt, gain on sale of business and other on the consolidated statements of comprehensive income (loss).