INVESTMENTS IN REAL ESTATE SECURITIES (Tables)

12 Months Ended

Dec. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Summary of Real Estate Securities

The following is a summary of New Residential’s real estate securities as of December 31, 2014 and December 31, 2013, all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired.

					Gross Unrealized								Weighted Average
Asset Type	Outstanding Face Amount		Amortized Cost Basis		Gains		Losses			Carrying Value(A)		Number of Securities	Rating(B)	Coupon		Yield		Life (Years)(C)	Principal Subordination(D)
December 31, 2014
Agency RMBS(E)(F)	$	1,646,361	$	1,724,329	$	18,572	$	(2,738	)	$	1,740,163	104	AAA	3.22	%	2.22	%	5.0	N/A
Non-Agency RMBS(G)	1,896,150		710,515		15,327		(2,842		)	723,000		142	CCC	1.98	%	3.37	%	6.4	17.3	%
Total/Weighted     Average	$	3,542,511	$	2,434,844	$	33,899	$	(5,580	)	$	2,463,163	246	A	2.86	%	2.83	%	5.7
December 31, 2013
Agency RMBS(E)(F)	$	1,314,130	$	1,403,215	$	3,434	$	(3,885	)	$	1,402,764	114	AAA	3.18	%	1.33	%	4.1	N/A
Non-Agency RMBS(G)	872,866		566,760		7,618		(3,953		)	570,425		100	CCC-	0.94	%	4.68	%	8.0	7.4	%
Total/Weighted     Average	$	2,186,996	$	1,969,975	$	11,052	$	(7,838	)	$	1,973,189	214	BBB+	2.28	%	2.66	%	5.7

(A) Fair value, which is equal to carrying value for all securities. See Note 12 regarding the estimation of fair value.

(B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. This excludes the ratings of the collateral underlying five bonds for which New Residential was unable to obtain rating information. For each security rated by multiple rating agencies, the lowest rating is used. New Residential used an implied AAA rating for the Agency RMBS. Ratings provided were determined by third party rating agencies, and represent the most recent credit ratings available as of the reporting date and may not be current.

(C) The weighted average life is based on the timing of expected principal reduction on the assets.

(D) Percentage of the outstanding face amount of securities that is subordinate to New Residential’s investments.

(E) Includes securities issued or guaranteed by U.S. Government agencies such as the Federal National Mortgage Association (“Fannie Mae”) or the Federal Home Loan Mortgage Corporation (“Freddie Mac”).

(F) The total outstanding face amount was $1.0 billion and $0.0 billion for fixed rate securities and $0.6 billion and $1.3 billion for floating rate securities as of December 31, 2014 and 2013, respectively.

(G) The total outstanding face amount was $1.0 billion (including $959.1 million of interest-only notional amount) and $6.6 million for fixed rate securities and $882.4 million (including $130.6 million of residual and interest-only notional amount) and $866.2 million (including $42.9 million of residual and interest-only notional amount) for floating rate securities as of December 31, 2014 and 2013, respectively.

Summary of Real Estate Securities in an Unrealized Loss Position

The following table summarizes New Residential’s securities in an unrealized loss position as of December 31, 2014.

			Amortized Cost Basis													Weighted Average
Securities in an Unrealized Loss Position	Outstanding Face Amount		Before Impairment		Other-Than- Temporary Impairment(A)			After Impairment		Gross Unrealized Losses			Carrying Value		Number of Securities	Rating(B)	Coupon		Yield		Life (Years)
Less than Twelve     Months	$	1,223,482	$	372,024	$	(448	)	$	371,576	$	(3,889	)	$	367,687	71	BBB	2.49	%	2.54	%	5.4
Twelve or More     Months	135,012		145,401		—			145,401		(1,691		)	143,710		17	AAA	2.88	%	1.69	%	4.5
Total/Weighted     Average	$	1,358,494	$	517,425	$	(448	)	$	516,977	$	(5,580	)	$	511,397	88	A-	2.53	%	2.45	%	5.3

(A) This amount represents other-than-temporary impairment recorded on securities that are in an unrealized loss position as of December 31, 2014.

(B) The weighted average rating of securities in an unrealized loss position for less than twelve months excludes the rating of five bonds for which New Residential was unable to obtain rating information.

New Residential performed an assessment of all of its debt securities that are in an unrealized loss position (an unrealized loss position exists when a security’s amortized cost basis, excluding the effect of OTTI, exceeds its fair value) and determined the following:

	December 31, 2014
					Unrealized Losses
	Fair Value		Amortized Cost Basis After Impairment		Credit(A)			Non-Credit(B)
Securities New Residential intends to sell(C)	$	—	$	—	$	—		$	—
Securities New Residential is more likely than not to be     required to sell(D)	—		—		—			N/A
Securities New Residential has no intent to sell and is not     more likely than not to be required to sell:
Credit impaired securities	106,892		107,712		(448		)	(820		)
Non credit impaired securities	404,505		409,265		—			(4,760		)
Total debt securities in an unrealized loss position	$	511,397	$	516,977	$	(448	)	$	(5,580	)

(A) This amount is required to be recorded as other-than-temporary impairment through earnings. In measuring the portion of credit losses, New Residential’s management estimates the expected cash flow for each of the securities. This evaluation includes a review of the credit status and the performance of the collateral supporting those securities, including the credit of the issuer, key terms of the securities and the effect of local, industry and broader economic trends. Significant inputs in estimating the cash flows include management’s expectations of prepayment speeds, default rates and loss severities. Credit losses are measured as the decline in the present value of the expected future cash flows discounted at the investment’s effective interest rate.

(B) This amount represents unrealized losses on securities that are due to non-credit factors and recorded through other comprehensive income.

(C) A portion of securities New Residential intends to sell have a fair value equal to their amortized cost basis after impairment, and, therefore do not have unrealized losses reflected in other comprehensive income as of December 31, 2014.

(D) New Residential may, at times, be more likely than not to be required to sell certain securities for liquidity purposes. While the amount of the securities to be sold may be an estimate, and the securities to be sold have not yet been identified, New Residential must make its best estimate, which is subject to significant judgment regarding future events, and may differ materially from actual future sales.

Summary of Activity Related to Credit Losses on Debt Securities

The following table summarizes the activity related to credit losses on debt securities:

	Year Ended December 31,
	2014			2013
Beginning balance of credit losses on debt securities for which a portion of an OTTI was     recognized in other comprehensive income	$	2,071		$	—
Increases to credit losses on securities for which an OTTI was previously recognized and a portion     of an OTTI was recognized in other comprehensive income	568			—
Additions for credit losses on securities for which an OTTI was not previously recognized	823			4,993
Reductions for securities for which the amount previously recognized in other comprehensive     income was recognized in earnings because the entity intends to sell the security or more likely     than not will be required to sell the security before recovery of its amortized cost basis	—			—
Reduction for credit losses on securities for which no OTTI was recognized in other     comprehensive income at the current measurement date	(401		)	(2,878		)
Reduction for securities sold during the period	(1,934		)	(44		)
Ending balance of credit losses on debt securities for which a portion of an OTTI was recognized     in other comprehensive income	$	1,127		$	2,071

Summary of the Geographic Distribution of the Collateral Securing Non-Agency RMBS

The table below summarizes the geographic distribution of the collateral securing New Residential’s Non-Agency RMBS:

	December 31, 2014				December 31, 2013
Geographic Location	Outstanding Face Amount		Percentage of Total Outstanding		Outstanding Face Amount		Percentage of Total Outstanding
Western U.S.	$	779,930	41.1	%	$	317,111	36.3	%
Southeastern U.S.	409,755		21.6	%	198,298		22.7	%
Northeastern U.S.	344,716		18.2	%	164,481		18.9	%
Midwestern U.S.	190,480		10.0	%	98,682		11.3	%
Southwestern U.S.	170,829		9.0	%	51,425		5.9	%
Other(A)	440		0.1	%	42,869		4.9	%
	$	1,896,150	100.0	%	$	872,866	100.0	%

(A) Represents collateral for which New Residential was unable to obtain geographic information.

Schedule of the Outstanding Face Amount and Carrying Value for Securities Uncollectible

The following is the outstanding face amount and carrying value for securities, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments:

	Outstanding Face Amount		Carrying Value
December 31, 2014	$	536,342	$	414,298
December 31, 2013	$	729,895	$	483,680

Summary of Changes in Accretable Yield for Securities

The following is a summary of the changes in accretable yield for these securities:

	Year Ended December 31,
	2014			2013
Beginning Balance	$	143,067		$	90,077
Additions	189,252			155,854
Accretion	(14,035		)	(19,939		)
Reclassifications from non-accretable difference	20,385			40,785
Disposals	(156,998		)	(123,710		)
Ending Balance	$	181,671		$	143,067