INVESTMENTS IN SERVICER ADVANCES (Tables)

12 Months Ended

Dec. 31, 2013

Investments In Servicer Advances Tables

Schedule of investment in servicer advances

The following is a summary of the investments in servicer advances, including the right to the basic fee component of the related MSRs, made by the Buyer, which New Residential consolidates:

	December 31, 2013									Year Ended December 31, 2013
	Amortized Cost Basis		Carrying Value (A)		Weighted Average Yield			Weighted Average Life (Years) (B)		Change in Fair Value Recorded in Other Income
Servicer advances	$	2,665,551	$	2,665,551		4.4	%		2.7	$	—

(A) Carrying value represents the fair value of the investment in servicer advances, including the basic fee component of the related MSRs.

(B) Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment.

The following is additional information regarding the servicer advances, and related financing, of the Buyer, which New Residential consolidates as of December 31, 2013:

	UPB of Underlying Residential Mortgage Loans									Loan-to-Value						Cost of Funds (B)
			Outstanding Servicer Advances		Servicer Advances to UPB of Underlying Residential Mortgage Loans			Carrying Value of Notes Payable		Gross			Net (A)			Gross			Net
Servicer advances (C)	$	43,444,216	$	2,661,130		6.1	%	$	2,390,778		89.8	%		88.6	%		4.0	%		2.3	%

(A) Ratio of face amount of borrowings to value of servicer advance collateral, net of an interest reserve maintained by the Buyer.

(B) Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees.

(C) The following types of advances comprise the investment in servicer advances:

	December 31, 2013
Principal and interest advances	$	1,516,715
Escrow advances (taxes and insurance advances)		934,525
Foreclosure advances		209,890
Total	$	2,661,130