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INVESTMENTS IN RESIDENTIAL MORTGAGE LOANS (Tables)
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Schedule of Residential Mortgage Loans Outstanding by Loan Type, Excluding REO and Linked Transactions
The following table presents certain information regarding New Residential's residential mortgage loans outstanding by loan type, excluding REO and linked transactions at December 31, 2014 and December 31, 2013, respectively.
December 31, 2014
Outstanding Face Amount
 
Carrying
Value(A)
 
Loan
Count
 
Weighted Average Yield
 
Weighted Average Life (Years)(B)
 
Floating Rate Loans as a % of Face Amount
 
Loan to Value Ratio ("LTV")(C)
 
Weighted Avg. Delinquency(D)
 
Weighted Average FICO(E)
Loan Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse Mortgage Loans(F)(G)
$
45,182

 
$
24,965

 
198

 
10.2
%
 
3.9
 
21.4
%
 
108.2
%
 
82.6
%
 
N/A

Performing Loans(H)
24,399

 
22,873

 
731

 
7.9
%
 
5.9
 
17.4
%
 
72.0
%
 
—
%
 
628

Total Residential Mortgage Loans, held-for-
    investment
$
69,581

 
$
47,838

 
929

 
9.4
%
 
4.6
 
20.0
%
 
95.5
%
 
53.6
%
 
628

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performing Loans, held-for-sale(H)
$
403,992

 
$
388,485

 
5,809

 
5.6
%
 
7.2
 
23.0
%
 
85.0
%
 
5.0
%
 
626

Purchased Credit Impaired ("PCI") Loans,
    held-for-sale(I)
960,224

 
737,954

 
5,025

 
5.9
%
 
2.6
 
3.7
%
 
104.0
%
 
90.0
%
 
571

Total Residential Mortgage Loans, held-for-
    sale
$
1,364,216

 
$
1,126,439

 
10,834

 
5.8
%
 
4.0
 
9.4
%
 
98.4
%
 
64.8
%
 
587

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan Type
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse Mortgage Loans(F)
$
57,552

 
$
33,539

 
328

 
10.3
%
 
3.7
 
22.0
%
 
101.4
%
 
84.6
%
 
 N/A

 
$
57,552

 
$
33,539

 
328

 
10.3
%
 
3.7
 
22.0
%
 
101.4
%
 
84.6
%
 
N/A


(A)
Includes residential mortgage loans with a United States federal income tax basis of $1,159.1 million and $33.9 million as of December 31, 2014 and 2013, respectively.
(B)
The weighted average life is based on the expected timing of the receipt of cash flows.
(C)
LTV refers to the ratio comparing the loan’s unpaid principal balance to the value of the collateral property.
(D)
Represents the percentage of the total principal balance that are 60+ days delinquent, $2.3 million of which are on non-accrual status as of December 31, 2014.
(E)
The weighted average FICO score is based on the weighted average of information updated and provided by the loan servicer on a monthly basis.
(F)
Represents a 70% interest New Residential holds in reverse mortgage loans. The average loan balance outstanding based on total UPB is $0.3 million and $0.2 million at December 31, 2014 and December 31, 2013, respectively, and 77% and 82% of these loans outstanding at each respective date have reached a termination event. As a result, the borrower can no longer make draws on these loans. Each loan matures upon the occurrence of a termination event.
(G)
FICO scores are not used in determining how much a borrower can access via a reverse mortgage loan.
(H)
Includes loans that are current or less than 30 days past due at acquisition where New Residential expects to collect all contractually required principal and interest payments. Presented net of unamortized discounts and premiums of $15.2 million.
(I)
Summary of the Geographic Distribution of the Underlying Residential Mortgage Loans
The table below summarizes the geographic distribution of the underlying residential mortgage loans as of December 31, 2014 and December 31, 2013, respectively:
Percentage of Total Outstanding Unpaid Principal Amount
State Concentration
 
December 31, 2014
 
December 31, 2013
California
 
15.0
%
 
5.7
%
New York
 
12.2
%
 
22.0
%
New Jersey
 
7.0
%
 
6.9
%
Florida
 
6.3
%
 
21.2
%
Illinois
 
4.4
%
 
7.7
%
Texas
 
4.1
%
 
2.8
%
Pennsylvania
 
3.9
%
 
0.9
%
Georgia
 
3.6
%
 
—
%
Maryland
 
3.4
%
 
2.8
%
Ohio
 
3.1
%
 
1.1
%
Other U.S.
 
37.0
%
 
28.9
%
 
 
100.0
%
 
100.0
%
Schedule of Past Due Information for Performing Loans
The following table provides past due information for New Residential's Performing Loans, which is an important indicator of credit quality and the establishment of the allowance for loan losses:
December 31, 2014
Days Past Due
 
Delinquency Status(A)
Current
 
79.1
%
30-59
 
15.9
%
60-89
 
2.1
%
90-119(B)
 
1.1
%
120+(C)
 
1.8
%
 
 
100.0
%

(A)
Represents the percentage of the total principal balance that corresponds to loans that are in each delinquency status.
(B)
Includes loans 90-119 days past due and still accruing because they are generally placed on nonaccrual status at 120 days or more past due.
(C)
Represents nonaccrual loans.
Summary of Activities Related to the Carrying Value of Reverse Mortgage Loans and Performing Loans and PCI Loans Held for Investment
Activities related to the carrying value of PCI loans held-for-investment were as follows:
 
Purchase Credit Impaired Loans
Balance at December 31, 2013
$
—

Purchases/additional fundings
749,739

Sales
—

Proceeds from repayments
(20,431
)
Accretion of loan discount and other amortization
30,361

Transfer of loans to real estate owned
(21,842
)
Transfer of loans to held-for-sale
(737,827
)
Balance at December 31, 2014
$
—

Activities related to the carrying value of reverse mortgage loans and performing loans held-for-investment were as follows:
 
Year Ended December 31, 2014
 
Reverse Mortgage Loans
 
Performing Loans
Balance at December 31, 2012
$
—

 
$
—

Purchases/additional fundings
35,138

 
—

Proceeds from repayments
(3,788
)
 
—

Accretion of loan discount and other amortization
2,650

 
—

Allowance for loan losses
(461
)
 
—

Balance at December 31, 2013
33,539

 
—

Purchases/additional fundings
—

 
134,818

Proceeds from repayments
(2,810
)
 
(10,381
)
Accretion of loan discount and other amortization
6,501

 
2,994

Allowance for loan losses
(1,111
)
 
(651
)
Transfer of loans to other assets
(10,261
)
 
—

Transfer of loans to real estate owned
(947
)
 
—

Transfer of loans to held-for-sale
—

 
(103,907
)
Reversal of valuation provision on loans transferred to other assets
54

 
—

Balance at December 31, 2014
$
24,965

 
$
22,873
Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses on Performing Loans
Activities related to the valuation provision on reverse mortgage loans and allowance for loan losses on performing loans were as follows:
 
Reverse Mortgage Loans
 
Performing Loans
Balance at December 31, 2012
$
—

 
$
—

     Allowance for loan losses(A)
461

 
—

Charge-offs(B)
—

 
—

Reversal of valuation provision on loans transferred to other assets
—

 
—

Balance at December 31, 2013
461

 
—

     Allowance for loan losses(A)
1,111

 
1,811

Charge-offs(B)(C)
—

 
(364
)
Reversal of valuation provision on loans transferred to other assets
(54
)
 
—

Balance at December 31, 2014
$
1,518

 
$
1,447


(A)
Based on an analysis of collective borrower performance, credit ratings of borrowers, loan-to-value ratios, estimated value of the underlying collateral, key terms of the loans and historical and anticipated trends in defaults and loss severities at a pool level.
(B)
Loans, other than PCI loans, are generally charged off or charged down to the net realizable value of the collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, when available information confirms that loans are uncollectible.
(C)
Summary of Contractually Required Payments Receivable, Cash Flows Expected to be Collected, and Fair Value at Acquisition Date for Loans Acquired during the Period
The following is the contractually required payments receivable, cash flows expected to be collected, and fair value at acquisition date for loans acquired during the year ended December 31, 2014:
 
Contractually Required Payments Receivable
 
Cash Flows Expected to be Collected
 
Fair Value
As of Acquisition Date
$
1,846,100

 
$
956,970

 
$
749,739
Summary of Unpaid Principal Balance and Carrying Value for Loans Not Probable to Collect all Contractually Required Payments
The following is the unpaid principal balance and carrying value for loans, for which, as of the acquisition date, it was probable that New Residential would be unable to collect all contractually required payments:
 
Unpaid Principal Balance
 
Carrying Value
December 31, 2014
$
960,224

 
$
737,954

December 31, 2013
$
—

 
$
—
Summary of Changes in Accretable Yield
The following is a summary of the changes in accretable yield for these loans:
 
Year Ended December 31, 2014
Balance at December 31, 2013
$
—

Additions
207,231

Accretion
(30,361
)
Reclassifications from non-accretable difference(A)
6,836

Disposals(B)
(8,324
)
Transfer to held-for-sale(C)
(175,382
)
Balance at December 31, 2014
$
—

(A)
Represents a probable and significant increase in cash flows previously expected to be uncollectible.
(B)
Includes sales of loans or foreclosures, which result in removal of the loan from the PCI loan pool at its carrying amount.
(C)
Recognition of the accretable yield ceases upon transfer of the PCI loan pools to held-for-sale.
Summary of Activities Related to the Carrying Value of Loans Held-for-sale
Activities related to the carrying value of loans held-for-sale were as follows:
Balance at December 31, 2013
$
—

Purchases(A)
1,577,933

Securitizations
(1,289,687
)
Transfers of loans from linked transactions(B)
4,595

Transfers of loans from held-for-investment(C)
841,734

Proceeds from repayments
(2,413
)
Valuation provision on loans(D)
(5,723
)
Balance at December 31, 2014
$
1,126,439


(A)
Represents loans acquired with the intent to sell.
(B)
Represents loans previously financed with the selling counterparty and accounted for as linked transactions that New Residential decided to sell.
(C)
Represents loans not acquired with the intent to sell that New Residential decided to sell.
(D)
Represents the fair value adjustments to loans upon transfer to held-for-sale and provision recorded on certain purchased held-for-sale loans.