XML 72 R31.htm IDEA: XBRL DOCUMENT v2.4.1.9
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables)
 12 Months Ended
Dec. 31, 2014
Equity Method Investments and Joint Ventures [Abstract]  
Summary of the Financial Results of Excess MSR Joint Ventures, Accounted for as Equity Method Investees
The following tables summarize the financial results of the Excess MSR joint ventures, accounted for as equity method investees, held by New Residential:
 
December 31, 2014
 
December 31, 2013
Excess MSR assets
$
653,293

 
$
703,681

Other assets
8,472

 
5,534

Other liabilities
(13
)
 
(3,683
)
Equity
$
661,752

 
$
705,532

New Residential's investment
$
330,876

 
$
352,766

 
 
 
 
New Residential's ownership
50.0
%
 
50.0
%
 
Year Ended December 31,
 
2014
 
2013
 
2012
Interest income
$
67,698

 
$
50,306

 
$
—

Other income
46,961

 
53,964

 
—

Expenses
(99
)
 
(3,585
)
 
—

Net income
$
114,560

 
$
100,685

 
$
—

New Residential’s investments in equity method investees changed during the years ended December 31, 2014 and 2013 as follows:
 
2014
 
2013
Balance at beginning of period
$
352,766

 
$
—

Contributions to equity method investees
—

 
358,864

Distributions of earnings from equity method investees
(53,427
)
 
(33,189
)
Distributions of capital from equity method investees
(25,743
)
 
(23,252
)
Change in fair value of investments in equity method investees
57,280

 
50,343

Balance at end of period
$
330,876

 
$
352,766
Summary of Excess MSR Investments made through Equity Method Investees
The following is a summary of New Residential’s Excess MSR investments made through equity method investees:
 
December 31, 2014
 
Unpaid Principal Balance

Investee Interest in  Excess MSR(A)

New Residential Interest in Investees

Amortized Cost Basis(B)

Carrying Value(C)

Weighted Average Life (Years)(D)
Agency














Original and Recaptured Pools
$
87,584,677


66.7%

50.0%

$
299,065


$
370,059


5.6
Recapture Agreements
—


66.7%

50.0%

67,136


86,756


11.7
 
87,584,677


 

 

366,201


456,815


6.7
Non-Agency(E)













 
Original and Recaptured Pools
58,673,144


66.7%-77.0%

50.0%

173,784


181,368


5.1
Recapture Agreements
—


66.7%-77.0%

50.0%

12,325


15,110


12.4
 
58,673,144


 

 

186,109


196,478


5.6
Total
$
146,257,821






$
552,310


$
653,293


6.3

 
December 31, 2013
 
Unpaid Principal Balance
 
Investee Interest in  Excess MSR(A)
 
New Residential Interest in Investees
 
Amortized Cost Basis(B)
 
Carrying Value(C)
 
Weighted Average Life (Years)(D)
Agency
 
 
 
 
 
 
 
 
 
 
 
Original and Recaptured Pools
$
104,728,969

 
66.7%
 
50.0%
 
$
341,006

 
$
384,183

 
5.1
Recapture Agreements
—

 
66.7%
 
50.0%
 
88,997

 
104,278

 
11.8
 
104,728,969

 
 
 
 
 
430,003

 
488,461

 
6.5
Non-Agency(E)
 
 
 
 
 
 
 
 
 
 
 
Original and Recaptured Pools
68,890,509

 
66.7-77.0%
 
50.0%
 
205,975

 
208,055

 
5.4
Recapture Agreements
—

 
66.7-77.0%
 
50.0%
 
13,739

 
7,165

 
13.4
 
68,890,509

 
 
 
 
 
219,714

 
215,220

 
5.9
Total
$
173,619,478

 
 
 
 
 
$
649,717

 
$
703,681

 
6.3

(A)
The remaining interests are held by Nationstar.
(B)
Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. 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.
(C)
Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable.
(D)
The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment.
(E)
Excess MSR investments in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of December 31, 2014 (Note 6).
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans of the Excess MSR Investments made through Equity Method Investees
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees:
Percentage of Total Outstanding Unpaid Principal Amount
State Concentration
 
December 31, 2014
 
December 31, 2013
California
 
23.5
%
 
23.5
%
Florida
 
8.9
%
 
9.2
%
New York
 
5.6
%
 
5.3
%
Texas
 
4.8
%
 
4.9
%
Georgia
 
4.1
%
 
4.0
%
New Jersey
 
3.9
%
 
3.7
%
Illinois
 
3.5
%
 
3.5
%
Maryland
 
3.3
%
 
3.1
%
Virginia
 
3.2
%
 
3.1
%
Washington
 
2.8
%
 
2.8
%
Other U.S.
 
36.4
%
 
36.9
%
 
 
100.0
%
 
100.0
%