SEGMENT REPORTING

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

2. SEGMENT REPORTING

New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in real estate securities and loans, (iii) investments in consumer loans, and (iv) corporate. The corporate segment consists primarily of general and administrative expenses, the allocation of management fees by Newcastle until the spin-off on May 15, 2013, and the management fees and incentive compensation owed to the Manager by New Residential following the spin-off.

Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:

	Excess MSRs		Real Estate Securities and Loans		Consumer Loans		Corporate			Total
Three Months Ended September 30, 2013
Interest income	$	9,761	$	12,120	$	—	$	4		$	21,885
Interest expense		—		3,443		—		—			3,443
Net interest income		9,761		8,677		—		4			18,442
Impairment		—		—		—		—			—
Other income		20,853		11,213		24,129		—			56,195
Operating expenses		82		104		1		11,305			11,492
Net income (loss)	$	30,532	$	19,786	$	24,128	$	(11,301	)	$	63,145

	Excess MSRs		Real Estate Securities and Loans		Consumer Loans		Corporate			Total
Nine Months Ended September 30, 2013
Interest income	$	30,541	$	30,492	$	—	$	42		$	61,075
Interest expense		—		6,993		—		—			6,993
Net interest income		30,541		23,499		—		42			54,082
Impairment		—		3,756		—		—			3,756
Other income		85,640		11,271		60,293		—			157,204
Operating expenses		178		256		1,952		19,702			22,088
Net income (loss)	$	116,003	$	30,758	$	58,341	$	(19,660	)	$	185,442

	Excess MSRs		Real Estate Securities and Loans		Consumer Loans		Corporate		Total
September 30, 2013
Investments	$	665,600	$	1,894,260	$	192,498	$	—	$	2,752,358
Cash and cash equivalents		—		—		—		172,203		172,203
Other assets		—		6,563		—		720		7,283
Total assets		665,600		1,900,823		192,498		172,923		2,931,844
Debt		—		1,467,934		—		—		1,467,934
Other liabilities		82		149,352		—		53,440		202,874
Total liabilities		82		1,617,286		—		53,440		1,670,808
GAAP book value	$	665,518	$	283,537	$	192,498	$	119,483	$	1,261,036
Investments in equity method investees	$	358,032	$	—	$	192,498	$	—	$	550,530

	Excess MSRs		Real Estate Securities and Loans		Consumer Loans		Corporate			Total
Three Months Ended September 30, 2012
Interest income	$	9,903	$	2,392	$	—	$	—		$	12,295
Interest expense		—		298		—		—			298
Net interest income		9,903		2,094		—		—			11,997
Other income		1,774		—		—		—			1,774
Operating expenses		994		—		—		1,009			2,003
Net income (loss)	$	10,683	$	2,094	$	—	$	(1,009	)	$	11,768

	Excess MSRs		Real Estate Securities and Loans		Consumer Loans		Corporate			Total
Nine Months Ended September 30, 2012
Interest income	$	16,419	$	2,392	$	—	$	—		$	18,811
Interest expense		—		298		—		—			298
Net interest income		16,419		2,094		—		—			18,513
Other income		6,513		—		—		—			6,513
Operating expenses		2,141		—		—		1,955			4,096
Net income (loss)	$	20,791	$	2,094	$	—	$	(1,955	)	$	20,930

3. SEGMENT REPORTING

New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in real estate securities and (iii) corporate. The corporate segment consists primarily of general and administrative expenses and the allocation of management fees by the stockholder.

In the third quarter of 2012, New Residential changed the composition of its reportable segments to add a real estate securities segment and a corporate segment. Management acquired real estate securities during the third quarter and determined that it should disaggregate corporate expenses from the other segments presented. Segment information for previously reported periods in the accompanying financial statements has been restated to reflect this change to the composition of its segments.

Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:

	Excess MSRs		Real Estate Securities		Corporate			New Residential
Year ended December 31, 2012
Interest income	$	27,496	$	6,263	$	—		$	33,759
Interest expense		—		704		—			704
Net interest income (expense)		27,496		5,559		—			33,055
Change in fair value of investments in excess mortgage servicing rights		9,023		—		—			9,023
Other income (loss)		8,400		—		—			8,400
Expenses		5,449		—		3,782			9,231
Net Income (Loss)	$	39,470	$	5,559	$	(3,782	)	$	41,247
December 31, 2012
Total Assets	$	245,068	$	289,808	$	—		$	534,876

	Excess MSRs		Real Estate Securities		Corporate			New Residential
Period from December 8, 2011 (Commencement of Operations) through December 31, 2011
Interest income	$	1,260	$	—	$	—		$	1,260
Interest expense		—		—		—			—
Net interest income (expense)		1,260		—		—			1,260
Change in fair value of investments in excess mortgage servicing rights		367		—		—			367
Expenses		809		—		104			913
Net Income (Loss)	$	818	$	—	$	(104	)	$	714
December 31, 2011
Total Assets	$	43,791	$	—	$	—		$	43,791