Segment Reporting

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting

21. 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 investors in forward loans, as well as for the Loans and Residuals segment and for the Non-Residual Trusts reflected in the Other non-reportable segments.

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

• Reverse Mortgage — consists of operations that purchase and originate reverse loans that are securitized but remain on the consolidated balance sheet as collateral for secured borrowings. This segment also performs servicing for third-party investors in reverse loans and provides other ancillary 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 investors, if permitted under applicable laws and regulations, as well as other ancillary products, through the Company’s insurance agency for a commission.

• Loans and Residuals — consists of the assets and mortgage-backed debt of the Residual Trusts and the unencumbered residential loan portfolio and real estate owned, all of which are associated with forward loans.

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).

Presented in the tables below are the Company’s financial results by reportable segment reconciled to consolidated income (loss) before income taxes (in thousands):

	For the Three Months Ended June 30, 2014
	Servicing			Originations		Reverse Mortgage			Asset Receivables Management		Insurance		Loans and Residuals			Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	126,640		$	—	$	8,777		$	10,760	$	—	$	—		$	—		$	(5,201	)	$	140,976
Net gains on sales of loans		—			144,611		—			—		—		—			—			—			144,611
Interest income on loans		—			—		—			—		—		34,218			—			—			34,218
Net fair value gains on reverse loans and related HMBS obligations		—			—		26,936			—		—		—			—			—			26,936
Insurance revenue		—			—		—			—		19,806		—			—			—			19,806
Other revenues(2)		1,157			5,688		3,005			1,461		242		1			35,612			—			47,166
Total revenues		127,797			150,299		38,718			12,221		20,048		34,219			35,612			(5,201	)		413,713
EXPENSES
Interest expense		10,619			6,627		775			—		—		19,860			36,809			—			74,690
Depreciation and amortization		8,979			4,757		2,302			1,213		1,130		—			10			—			18,391
Goodwill impairment		—			—		82,269			—		—		—			—			—			82,269
Other expenses, net		159,583			74,569		40,003			6,182		7,975		5,985			2,725			(5,201	)		291,821
Total expenses		179,181			85,953		125,349			7,395		9,105		25,845			39,544			(5,201	)		467,171
OTHER GAINS (LOSSES)
Other net fair value gains (losses)		(167	)		—		—			—		—		(905	)		2,604			—			1,532
Total other gains (losses)		(167	)		—		—			—		—		(905	)		2,604			—			1,532
Income (loss) before income taxes	$	(51,551	)	$	64,346	$	(86,631	)	$	4,826	$	10,943	$	7,469		$	(1,328	)	$	—		$	(51,926	)

⁽¹⁾ The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $5.0 million and $0.2 million, respectively, associated with intercompany activity with the Originations and Loans and Residuals segments and Other non-reportable segment.

⁽²⁾ Other revenues for the Company’s Other non-reportable segment includes $34.2 million in asset management performance fees collected and earned in connection with the investment management of a fund. Refer to Note 2 for additional information on this transaction.

	For the Six Months Ended June 30, 2014
	Servicing			Originations		Reverse Mortgage			Asset Receivables Management		Insurance		Loans and Residuals			Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	287,466		$	—	$	16,387		$	19,806	$	—	$	—		$	—		$	(9,891	)	$	313,768
Net gains on sales of loans		—			248,645		—			—		—		—			—			—			248,645
Interest income on loans		—			—		—			—		—		68,640			—			—			68,640
Net fair value gains on reverse loans and related HMBS obligations		—			—		44,172			—		—		—			—			—			44,172
Insurance revenue		—			—		—			—		43,194		—			—			—			43,194
Other revenues(2)		9,711			10,868		6,027			1,461		246		3			36,926			—			65,242
Total revenues		297,177			259,513		66,586			21,267		43,440		68,643			36,926			(9,891	)		783,661
EXPENSES
Interest expense		21,032			13,460		1,634			—		—		40,163			73,250			—			149,539
Depreciation and amortization		17,684			9,752		4,751			2,515		2,313		—			20			—			37,035
Goodwill impairment		—			—		82,269			—		—		—			—			—			82,269
Other expenses, net		275,900			151,745		74,363			11,427		15,517		9,609			8,138			(9,891	)		536,808
Total expenses		314,616			174,957		163,017			13,942		17,830		49,772			81,408			(9,891	)		805,651
OTHER GAINS (LOSSES)
Other net fair value gains (losses)		(341	)		—		—			—		—		(1,147	)		517			—			(971	)
Total other gains (losses)		(341	)		—		—			—		—		(1,147	)		517			—			(971	)
Income (loss) before income taxes	$	(17,780	)	$	84,556	$	(96,431	)	$	7,325	$	25,610	$	17,724		$	(43,965	)	$	—		$	(22,961	)

⁽¹⁾ The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $9.6 million and $0.3 million, respectively, associated with intercompany activity with the Originations and Loans and Residuals segments and Other non-reportable segment.

⁽²⁾ Other revenues for the Company’s Other non-reportable segment includes $34.2 million in asset management performance fees collected and earned in connection with the investment management of a fund. Refer to Note 2 for additional information on this transaction.

	For the Three Months Ended June 30, 2013
	Servicing			Originations		Reverse Mortgage			Asset Receivables Management		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	244,432		$	—	$	6,624		$	11,102	$	—	$	—	$	—		$	(4,852	)	$	257,306
Net gains on sales of loans		—			235,699		250			—		—		—		—			—			235,949
Interest income on loans		—			—		—			—		—		36,796		—			—			36,796
Net fair value gains on reverse loans and related HMBS obligations		—			—		26,731			—		—		—		—			—			26,731
Insurance revenue		—			—		—			—		18,050		—		—			—			18,050
Other revenues		457			15,527		2,366			69		6		1		2,706			—			21,132
Total revenues		244,889			251,226		35,971			11,171		18,056		36,797		2,706			(4,852	)		595,964
EXPENSES
Interest expense		5,166			8,600		2,166			—		—		21,800		30,558			—			68,290
Depreciation and amortization		9,445			2,689		2,691			1,614		1,168		—		7			—			17,614
Other expenses, net		116,914			94,058		40,931			5,722		7,934		4,813		7,625			(4,852	)		273,145
Total expenses		131,525			105,347		45,788			7,336		9,102		26,613		38,190			(4,852	)		359,049
OTHER GAINS (LOSSES)
Other net fair value gains (losses)		(179	)		—		—			—		—		566		1,269			—			1,656
Total other gains (losses)		(179	)		—		—			—		—		566		1,269			—			1,656
Income (loss) before income taxes	$	113,185		$	145,879	$	(9,817	)	$	3,835	$	8,954	$	10,750	$	(34,215	)	$	—		$	238,571

⁽¹⁾  The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $4.7 million and $0.1 million, respectively, associated with intercompany activity with the Loans and Residuals segment and Other non-reportable segment.

	For the Six Months Ended June 30, 2013
	Servicing			Originations		Reverse Mortgage		Asset Receivables Management		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	369,559		$	—	$	13,372	$	21,192	$	—	$	—	$	—		$	(9,808	)	$	394,315
Net gains on sales of loans		—			309,761		4,633		—		—		—		—			—			314,394
Interest income on loans		—			—		—		—		—		73,694		—			—			73,694
Net fair value gains on reverse loans and related HMBS obligations		—			—		63,519		—		—		—		—			—			63,519
Insurance revenue		—			—		—		—		35,584		—		—			—			35,584
Other revenues		919			17,524		5,311		133		13		4		5,122			(39	)		28,987
Total revenues		370,478			327,285		86,835		21,325		35,597		73,698		5,122			(9,847	)		910,493
EXPENSES
Interest expense		7,576			9,306		5,695		—		—		44,096		55,759			—			122,432
Depreciation and amortization		18,302			4,366		5,414		3,370		2,482		—		13			—			33,947
Other expenses, net		208,962			133,475		73,454		11,752		16,442		10,643		24,533			(9,847	)		469,414
Total expenses		234,840			147,147		84,563		15,122		18,924		54,739		80,305			(9,847	)		625,793
OTHER GAINS (LOSSES)
Other net fair value gains (losses)		(424	)		—		—		—		—		404		415			—			395
Total other gains (losses)		(424	)		—		—		—		—		404		415			—			395
Income (loss) before income taxes	$	135,214		$	180,138	$	2,272	$	6,203	$	16,673	$	19,363	$	(74,768	)	$	—		$	285,095

⁽¹⁾ The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $9.6 million and $0.2 million, respectively, associated with intercompany activity with the Loans and Residuals segment and Other non-reportable segment.

25. 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 investors in forward loans, as well as for the Loans and Residuals segment and for the Non-Residual Trusts. Beginning in the first quarter of 2013, the Servicing segment services forward loans that have been originated or purchased by the Originations segment and sold to third-parties with servicing rights retained.

• Originations — consists of operations that originate and purchase forward loans that are sold to third parties with servicing rights generally retained. The Originations segment was previously included in the Other segment, but became a reportable operating segment because of growth in the business resulting from the acquisition of the ResCap net assets. Activity prior to the acquisition of the ResCap net assets primarily consisted of brokerage operations whereby the Originations segment received origination commissions.

• Reverse Mortgage — consists of operations that purchase and originate reverse loans that are securitized but remain on the consolidated balance sheet as collateral for secured borrowings. This segment also performs servicing for third-party investors in reverse loans and provides other ancillary services for the reverse mortgage market.

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

• Insurance — provides voluntary and lender-placed hazard insurance for residential loan customers, as well as other ancillary products, to third parties and the Loans and Residuals segment through the Company’s insurance agency for a commission.

• Loans and Residuals — consists of the assets and mortgage-backed debt of the Residual Trusts and the unencumbered residential loan portfolio and real estate owned, all of which are associated with forward loans.

The Company has revised its presentation of financial results by reportable segment for the years ended December 31, 2012 and 2011 to reflect the results of its Originations segment, which was previously included in Other.

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 and total assets 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 and insurance 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).

Presented in the tables below are the Company’s financial results by reportable segment reconciled to consolidated income (loss) before income taxes and total assets by reportable segment reconciled to consolidated total assets (in thousands):

	For the Year Ended December 31, 2013
	Servicing			Originations		Reverse Mortgage		Asset Receivables Management		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	734,456		$	—	$	27,342	$	40,759	$	—	$	—	$	—		$	(19,168	)	$	783,389
Net gains on sales of loans		—			594,341		4,633		—		—		—		—			—			598,974
Interest income on loans		—			—		—		—		—		144,651		—			—			144,651
Net fair value gains on reverse loans and related HMBS obligations		—			—		120,382		—		—		—		—			—			120,382
Insurance revenue		—			—		—		—		84,478		—		—			—			84,478
Other revenues		7,322			36,100		15,307		183		29		9		11,714			(39	)		70,625
Total revenues		741,778			630,441		167,664		40,942		84,507		144,660		11,714			(19,207	)		1,802,499
EXPENSES
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
Provision for loan losses		—			—		—		—		—		1,229		—			—			1,229
Other expenses, net		452,978			328,150		148,193		22,840		33,655		24,188		47,545			(19,207	)		1,038,342
Total expenses		516,771			367,455		167,312		29,100		38,538		112,391		170,893			(19,207	)		1,383,253
OTHER GAINS (LOSSES)
Loss on extinguishment		—			—		—		—		—		—		(12,489	)		—			(12,489	)
Other net fair value gains (losses)		(850	)		—		—		—		—		181		6,730			—			6,061
Total other gains (losses)		(850	)		—		—		—		—		181		(5,759	)		—			(6,428	)
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

⁽¹⁾ The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $18.8 million and $0.4 million, respectively, associated with intercompany activity with the Loans and Residuals and Other segments.

	For the Year Ended December 31, 2012
	Servicing			Originations			Reverse Mortgage		Asset Receivables Management		Insurance		Loans and Residuals			Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	346,158		$	—		$	4,428	$	38,876	$	—	$	—		$	—		$	(20,953	)	$	368,509
Net gains on sales of loans		—			648			—		—		—		—			—			—			648
Interest income on loans		—			—			—		—		—		154,351			—			—			154,351
Net fair value gains on reverse loans and related HMBS obligations		—			—			7,279		—		—		—			—			—			7,279
Insurance revenue		—			—			—		—		73,249		—			—			—			73,249
Other revenues		2,773			5,269			1,858		49		659		5			9,206			(48	)		19,771
Total revenues		348,931			5,917			13,565		38,925		73,908		154,356			9,206			(21,001	)		623,807
EXPENSES
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
Provision for loan losses		—			—			—		—		—		13,352			—			—			13,352
Other expenses, net		262,515			8,140			7,991		22,623		35,175		28,623			31,544			(21,001	)		375,610
Total expenses		302,116			8,292			10,444		30,397		40,552		138,312			108,788			(21,001	)		617,900
OTHER GAINS (LOSSES)
Loss on extinguishments		—			—			—		—		—		—			(48,579	)		—			(48,579	)
Other net fair value gains (losses)		(1,056	)		—			—		—		—		(116	)		8,393			—			7,221
Total other gains		(1,056	)		—			—		—		—		(116	)		(40,186	)		—			(41,358	)
Income (loss) before income taxes	$	45,759		$	(2,375	)	$	3,121	$	8,528	$	33,356	$	15,928		$	(139,768	)	$	—		$	(35,451	)
	At December 31, 2012
Total assets	$	1,700,251		$	15,197		$	6,340,693	$	55,287	$	182,897	$	1,599,742		$	1,438,405		$	(354,295	)	$	10,978,177

⁽¹⁾  The Company’s Servicing and Asset Receivables Management segments include net servicing revenue and fees of $20.4 million and $0.5 million, respectively, associated with intercompany activity with the Loans and Residuals and Other segments.

	For the Year Ended December 31, 2011
	Servicing			Originations			Asset Receivables Management		Insurance		Loans and Residuals		Other			Eliminations			Total Consolidated
REVENUES
Net servicing revenue and fees(1)	$	168,642		$	—		$	14,275	$	—	$	—	$	—		$	(25,363	)	$	157,554
Interest income on loans		—			—			—		—		164,794		—			—			164,794
Insurance revenue		—			—			—		43,752		—		—			(2,101	)		41,651
Other revenues		2,993			795			—		1,245		—		4,819			—			9,852
Total revenues		171,635			795			14,275		44,997		164,794		4,819			(27,464	)		373,851
EXPENSES
Interest expense		3,096			—			—		—		91,075		42,075			—			136,246
Depreciation and amortization		17,815			16			3,906		2,706		—		12			—			24,455
Provision for loan losses		—			—			—		—		6,016		—			—			6,016
Other expenses, net		135,994			922			8,995		29,990		37,223		28,746			(27,464	)		214,406
Total expenses		156,905			938			12,901		32,696		134,314		70,833			(27,464	)		381,123
OTHER GAINS (LOSSES)
Gain on extinguishments		—			—			—		—		95		—			—			95
Other net fair value gains		(607	)		—			—		—		965		686			—			1,044
Total other gains (losses)		(607	)		—			—		—		1,060		686			—			1,139
Income (loss) before income taxes	$	14,123		$	(143	)	$	1,374	$	12,301	$	31,540	$	(65,328	)	$	—		$	(6,133	)

⁽¹⁾ The Company’s Servicing segment includes net servicing revenue and fees of $25.4 million associated with intercompany activity with the Loans and Residuals and Other segments. The Insurance segment includes insurance revenue of $2.1 million associated with intercompany activity with the Loans and Residual segment.