INVESTMENTS IN SERVICER ADVANCES (Tables)

3 Months Ended

Mar. 31, 2014

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:

	March 31, 2014									Three Months Ended March 31, 2014
	Amortized Cost Basis		Carrying Value (A)		Weighted Average Yield			Weighted Average Life (Years) (B)		Change in Fair Value Recorded in Other Income
Servicer advances	$	3,457,385	$	3,457,385		5.8	%		3.2		—

(A)	Carrying value represents the fair value of the investments 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 March 31, 2014:

										Loan-to-Value						Cost of Funds (B)
	UPB of Underlying Residential Mortgage Loans		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)	$	79,687,268	$	3,430,473		4.3	%	$	3,142,292		91.6	%		90.6	%		3.0	%		2.2	%

(A)	Ratio of face amount of borrowings to par amount 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 investments in servicer advances:

	March 31, 2014
Principal and interest advances	$	1,615,067
Escrow advances (taxes and insurance advances)		1,393,014
Foreclosure advances		422,392
Total	$	3,430,473

Schedule of interest income - servicer advances

Interest income recognized by New Residential related to its investments in servicer advances for the three months ended March 31, 2014 was comprised of the following:

Interest income, gross of amounts attributable to servicer compensation	$	67,138
Amounts attributable to servicer compensation		(21,422	)
Interest income from investments in servicer advances	$	45,716