INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS AT FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2013

Dec. 31, 2012

Investments In Excess Mortgage Servicing Rights At Fair Value Tables

Schedule of direct investment in Excess Mortgage Servicing Rights (MSRs)

The following is a summary of New Residential’s direct investments in Excess MSRs:

	December 31, 2013														Year Ended December 31, 2013
	Unpaid Principal Balance (“UPB”) of Underlying Mortgages		Interest in Excess MSR			Amortized Cost Basis (A)		Carrying Value (B)		Weighted Average Yield			Weighted Average Life (Years) (C)		Changes in Fair Value Recorded in Other Income (D)
MSR Pool 1	$	6,873,942		65.0	%	$	26,279	$	36,235		12.5	%		5.2	$	4,219
MSR Pool 1 - Recapture Agreement		—		65.0	%		1,109		6,820		12.5	%		11.9		5,205
MSR Pool 2		7,924,920		65.0	%		30,217		35,234		12.5	%		5.5		3,971
MSR Pool 2 - Recapture Agreement		—		65.0	%		1,252		6,587		12.5	%		12.5		5,154
MSR Pool 3		7,822,453		65.0	%		24,636		32,899		12.5	%		5.1		5,408
MSR Pool 3 - Recapture Agreement		—		65.0	%		2,733		6,642		12.5	%		12.1		3,985
MSR Pool 4		5,076,470		65.0	%		9,876		13,823		12.5	%		4.9		2,929
MSR Pool 4 - Recapture Agreement		—		65.0	%		2,300		4,105		12.5	%		12.0		1,819
MSR Pool 5 (E)		36,907,851		80.0	%		117,544		140,634		12.5	%		5.4		21,113
MSR Pool 5 - Recapture Agreement		—		80.0	%		9,229		5,609		12.5	%		13.4		221
MSR Pool 11		436,241		66.7	%		2,091		2,080		12.5	%		6.5		(11	)
MSR Pool 11 - Recapture Agreement		—		66.7	%		254		235		12.5	%		14.3		(19	)
MSR Pool 12 (E)		5,152,877		40.0	%		16,233		16,294		16.4	%		4.5		60
MSR Pool 12 - Recapture Agreement		—		40.0	%		474		240		16.4	%		13.2		(233	)
MSR Pool 18(F)		8,758,860		40.0	%		16,075		16,079		15.3	%		4.6		3
MSR Pool 18 Recapture Agreement		—		40.0	%		1,127		635		15.3	%		12.3		(492	)
	$	78,953,614				$	261,429	$	324,151		12.9	%		5.8	$	53,332

	December 31, 2012														Year Ended December 31, 2012
	UPB		Interest in Excess MSR			Amortized Cost Basis (A)		Carrying Value (B)		Weighted Average Yield			Weighted Average Life (Years) (C)		Changes in Fair Value Recorded in Other Income (D)
MSR Pool 1	$	8,403,211		65.0	%	$	30,237	$	35,974		18.0	%		4.8	$	5,569
MSR Pool 1 - Recapture Agreement		—		65.0	%		4,430		4,936		18.0	%		10.8		307
MSR Pool 2		9,397,120		65.0	%		32,890		33,935		17.3	%		5.0		1,045
MSR Pool 2 - Recapture Agreement		—		65.0	%		5,206		5,387		17.3	%		11.8		181
MSR Pool 3		9,069,726		65.0	%		27,618		30,474		17.6	%		4.7		2,856
MSR Pool 3 - Recapture Agreement		—		65.0	%		5,036		4,960		17.6	%		11.3		(76	)
MSR Pool 4		5,788,133		65.0	%		11,130		12,149		17.9	%		4.6		1,019
MSR Pool 4 - Recapture Agreement		—		65.0	%		2,902		2,887		17.9	%		11.1		(15	)
MSR Pool 5 (E)		43,902,561		65.0	%		107,704		109,682		17.5	%		4.8		1,978
MSR Pool 5 - Recapture Agreement		—		65.0	%		8,493		4,652		17.5	%		11.7		(3,841	)
	$	76,560,751				$	235,646	$	245,036		17.6	%		5.4	$	9,023

(A) The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired.

(B) Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable.

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

(D) The portion of the change in fair value of the Recapture Agreements relating to loans recaptured to date is reflected in the respective pool. For the year ended December 31, 2011 the change in fair value recorded in other income related to Pool 1 was $0.4 million.

(E) Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR subsequent to December 31, 2013 (Note 18).

(F) Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of December 31, 2013 (Note 6).

The following is a summary of New Residential’s Excess MSRs at December 31, 2012 and 2011:

	December 31, 2011											Period From Dec 8, 2011 (Commencement of Operations) Through Dec 31, 2011
Description	Unpaid Principal Balance		Amortized Cost Basis(A)		Carrying Value(B)		Wtd. Avg. Yield			Wtd. Avg. Maturity (Years)(C)		Changes in Fair Value Recorded in Income(D)
Pool 1	$	9,705,512	$	37,469	$	37,637		20.0	%		4.5	$	168
Pool 1-Recapture Agreement		—		6,135		6,334		20.0	%		10.3		199
	$	9,705,512	$	43,604	$	43,971		20.0	%		6.0	$	367

Description	December 31, 2012											Year Ended December 31, 2012
	Unpaid Principal Balance		Amortized Cost Basis(A)		Carrying Value(B)		Wtd. Avg. Yield			Wtd. Avg. Maturity (Years)(C)		Changes in Fair Value Recorded in Income(D)
Pool 1	$	8,403,211	$	30,237	$	35,974		18.0	%		4.8	$	5,569
Pool 1-Recapture Agreement		—		4,430		4,936		18.0	%		10.8		307
Pool 2		9,397,120		32,890		33,935		17.3	%		5.0		1,045
Pool 2-Recapture Agreement		—		5,206		5,387		17.3	%		11.8		181
Pool 3		9,069,726		27,618		30,474		17.6	%		4.7		2,856
Pool 3-Recapture Agreement		—		5,036		4,960		17.6	%		11.3		(76	)
Pool 4		5,788,133		11,130		12,149		17.9	%		4.6		1,019
Pool 4-Recapture Agreement		—		2,902		2,887		17.9	%		11.1		(15	)
Pool 5		43,902,561		107,704		109,682		17.5	%		4.8		1,978
Pool 5-Recapture Agreement		—		8,493		4,652		17.5	%		11.7		(3,841	)
	$	76,560,751	$	235,646	$	245,036		17.6	%		5.4	$	9,023

(A) The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired.

(B) Carrying Value represents the fair value of the pools or Recapture Agreements, as applicable.

(C) Weighted Average Maturity represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(D) The portion of the change in fair value of the Recapture Agreements relating to loans recaptured to date is reflected in the respective pool.

Summary of the geographic distribution of the underlying residential mortgage loans of the direct investment in Excess MSRs

The table below summarizes the geographic distribution of the underlying residential mortgage loans of the direct investments in Excess MSRs as of December 31, 2013:

Percentage of Total Outstanding Unpaid Principal Amount as of December 31,
2013				2012
State Concentration	Percentage of UPB			State Concentration	Percentage of UPB
California		31.5	%	California		32.0	%
Florida		9.8	%	Florida		10.1	%
New York		4.9	%	New York		4.3	%
Texas		4.0	%	Washington		4.3	%
Washington		3.9	%	Arizona		3.9	%
Arizona		3.5	%	Texas		3.6	%
Maryland		3.5	%	Colorado		3.5	%
New Jersey		3.3	%	Maryland		3.4	%
Colorado		3.2	%	New Jersey		3.1	%
Virginia		3.1	%	Virginia		3.0	%
Other U.S.		29.3	%	Other U.S.		28.8	%
		100.0	%			100.0	%

The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSRs at December 31, 2012 and 2011:

Percentage of Total Outstanding Unpaid Principal Amount(A)
December 31, 2012				December 31, 2011
State Concentration	Percentage			State Concentration	Percentage
California		32.0	%	California		19.4	%
Florida		10.1	%	Florida		11.1	%
Washington		4.3	%	Texas		6.7	%
New York		4.3	%	Arizona		4.8	%
Arizona		3.9	%	Virginia		3.5	%
Texas		3.6	%	Washington		3.2	%
Colorado		3.5	%	New Jersey		3.1	%
Maryland		3.4	%	Maryland		3.1	%
New Jersey		3.1	%	Illinois		3.0	%
Virginia		3.0	%	Nevada		2.7	%
Other U.S.		28.8	%	Other U.S.		39.4	%
		100.0	%			100.0	%

(A) Based on the information provided by the loan servicer as of the most recent remittance for the respective dates.