SEGMENT REPORTING

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Segment Reporting [Abstract]

SEGMENT REPORTING

3. SEGMENT REPORTING

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

In the fourth quarter of 2013, New Residential determined that its investments in real estate loans represented a separate reportable segment due to New Residential’s increased focus on this previously immaterial business line. As a result, the real estate loans segment was disaggregated from the real estate securities segment for all periods presented.

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:

	Servicing Related Assets					Residential Securities and Loans
	Excess MSRs		Servicer Advances			Real Estate Securities		Real Estate Loans		Consumer Loans		Corporate			Total
Year Ended December 31, 2013
Interest income	$	40,921	$	4,421		$	39,533	$	2,650	$	—	$	42		$	87,567
Interest expense		—		3,901			10,876		—		—		247			15,024
Net interest income		40,921		520			28,657		2,650		—		(205	)		72,543
Impairment		—		—			4,993		461		—		—			5,454
Other income		103,675		—			52,645		1,832		82,856		—			241,008
Operating expenses		215		2,077			312		357		2,076		37,437			42,474
Income (Loss) Before Income Taxes		144,381		(1,557	)		75,997		3,664		80,780		(37,642	)		265,623
Income tax expense		—		—			—		—		—		—			—
Net Income (Loss)	$	144,381	$	(1,557	)	$	75,997	$	3,664	$	80,780	$	(37,642	)	$	265,623
Noncontrolling interests in income (loss)     of consolidated subsidiaries	$	—	$	(326	)	$	—	$	—	$	—	$	—		$	(326	)
Net income attributable to common     shareholders	$	144,381	$	(1,231	)	$	75,997	$	3,664	$	80,780	$	(37,642	)	$	265,949
	Servicing Related Assets					Residential Securities and Loans
	Excess MSRs		Servicer Advances			Real Estate Securities		Real Estate Loans		Consumer Loans		Corporate			Total
December 31, 2013
Investments	$	676,917	$	2,665,551		$	1,973,189	$	33,539	$	215,062	$	—		$	5,564,258
Cash and restricted cash		—		85,243			51,627		22,840		—		145,622			305,332
Derivative assets		—		—			1,452		34,474		—		—			35,926
Other assets		2		7,062			44,848		—		—		1,230			53,142
Total assets	$	676,919	$	2,757,856		$	2,071,116	$	90,853	$	215,062	$	146,852		$	5,958,658
Debt	$	—	$	2,390,778		$	1,620,711	$	22,840	$	—	$	75,000		$	4,109,329
Other liabilities		80		4,271			215,159		32,553		33		84,158			336,254
Total liabilities		80		2,395,049			1,835,870		55,393		33		159,158			4,445,583
Total equity		676,839		362,807			235,246		35,460		215,029		(12,306	)		1,513,075
Noncontrolling interests in equity of consolidated subsidiaries		—		247,225			—		—		—		—			247,225
Total New Residential stockholders’ equity	$	676,839	$	115,582		$	235,246	$	35,460	$	215,029	$	(12,306	)	$	1,265,850
Investments in equity method investees	$	352,766	$	—		$	—	$	—	$	215,062	$	—		$	567,828

	Servicing Related Assets				Residential Securities and Loans
	Excess MSRs		Servicer Advances		Real Estate Securities		Real Estate Loans		Consumer Loans		Corporate			Total
Year Ended December 31, 2012
Interest income	$	27,496	$	—	$	6,263	$	—	$	—	$	—		$	33,759
Interest expense		—		—		704		—		—		—			704
Net interest income		27,496		—		5,559		—		—		—			33,055
Impairment		—		—		—		—		—		—			—
Other income		17,423		—		—		—		—		—			17,423
Operating expenses		5,449		—		—		—		—		3,782			9,231
Income (Loss) Before Income Taxes		39,470		—		5,559		—		—		(3,782	)		41,247
Income tax expense		—		—		—		—		—		—			—
Net Income (Loss)	$	39,470	$	—	$	5,559	$	—	$	—	$	(3,782	)	$	41,247
Noncontrolling interests in income (loss)     of consolidated subsidiaries	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Net income attributable to common     shareholders	$	39,470	$	—	$	5,559	$	—	$	—	$	(3,782	)	$	41,247
	Servicing Related Assets				Residential Securities and Loans
	Excess MSRs		Servicer Advances		Real Estate Securities		Real Estate Loans		Consumer Loans		Corporate			Total
December 31, 2012
Investments	$	245,036	$	—	$	289,756	$	—	$	—	$	—		$	534,792
Cash and restricted cash		—		—		—		—		—		—			—
Derivative assets		—		—		—		—		—		—			—
Other assets		32		—		52		—		—		—			84
Total assets	$	245,068	$	—	$	289,808	$	—	$	—	$	—		$	534,876
Debt	$	—	$	—	$	150,922	$	—	$	—	$	—		$	150,922
Other liabilities		174		—		56		—		—		5,368			5,598
Total liabilities		174		—		150,978		—		—		5,368			156,520
Total equity		244,894		—		138,830		—		—		(5,368	)		378,356
Noncontrolling interests in equity of     consolidated subsidiaries		—		—		—		—		—		—			—
Total New Residential stockholders’ equity	$	244,894	$	—	$	138,830	$	—	$	—	$	(5,368	)	$	378,356
Investments in equity method investees	$	—	$	—	$	—	$	—	$	—	$	—		$	—

	Servicing Related Assets				Residential Securities and Loans
	Excess MSRs		Servicer Advances		Real Estate Securities		Real Estate Loans		Consumer Loans		Corporate			Total
Period from December 8, 2011 (Commencement of Operations) through December 31, 2011
Interest income	$	1,260	$	—	$	—	$	—	$	—	$	—		$	1,260
Interest expense		—		—		—		—		—		—			—
Net interest income		1,260		—		—		—		—		—			1,260
Impairment		—		—		—		—		—		—			—
Other income		367		—		—		—		—		—			367
Operating expenses		809		—		—		—		—		104			913
Income (Loss) Before Income Taxes		818		—		—		—		—		(104	)		714
Income tax expenses		—		—		—		—		—		—			—
Net Income (Loss)	$	818	$	—	$	—	$	—	$	—	$	(104	)	$	714
Noncontrolling interests in income of     consolidated subsidiaries	$	—	$	—	$	—	$	—	$	—	$	—		$	—
Net income attributable to shareholders	$	818	$	—	$	—	$	—	$	—	$	(104	)	$	714

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