INVESTMENTS IN CONSUMER LOANS (Tables)

3 Months Ended

Mar. 31, 2017

Investments In Consumer Loans Equity Method Investees [Abstract]

Summary of the Investment in Consumer Loan Companies

The following table summarizes the investment in consumer loans, held-for-investment held by New Residential:

	Unpaid Principal Balance		Interest in Consumer Loans		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)(A)	Weighted Average Delinquency(B)
March 31, 2017
Consumer Loan Companies
Performing Loans	$	1,197,647	53.5	%	$	1,244,661	18.7	%	4.1	6.2	%
Purchased Credit Deteriorated Loans(C)	345,804		53.5	%	291,693		16.5	%	3.5	13.8	%
Other - Performing Loans	146,149		100.0	%	143,464		14.2	%	1.3	1.8	%
Total Consumer Loans, held-for-investment	$	1,689,600			$	1,679,818	17.9	%	3.8	7.4	%
December 31, 2016
Consumer Loan Companies
Performing Loans	$	1,275,121	53.5	%	$	1,321,825	18.7	%	4.2	6.3	%
Purchased Credit Deteriorated Loans(C)	371,261		53.5	%	316,532		16.6	%	3.6	14.0	%
Other - Performing Loans	163,570		100.0	%	161,129		14.2	%	1.5	0.3	%
Total Consumer Loans, held-for-investment	$	1,809,952			$	1,799,486	17.9	%	3.8	7.3	%

(A) Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B) Represents the percentage of the total unpaid principal balance that is 30+ days delinquent. Delinquency status is the primary credit quality indicator as it provides early warning of borrowers who may be experiencing financial difficulties.

(C) Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments, which are accounted for as PCD loans.

Past Due Financing Receivable

The following table provides past due information regarding New Residential’s performing consumer loans, held-for-investment, which is an important indicator of credit quality and the establishment of the allowance for loan losses:

March 31, 2017
Days Past Due	Delinquency Status(A)
Current	94.7	%
30-59	2.1	%
60-89	1.1	%
90-119(B)	0.7	%
120+(B) (C)	1.4	%
	100.0	%

(A) Represents the percentage of the total unpaid principal balance that corresponds to loans that are in each delinquency status.

(B) Includes loans more than 90 days past due and still accruing interest.

(C) Interest is accrued up to the date of charge-off at 180 days past due.

Schedule of Carrying Value of Performing Consumer Loans

Activities related to the carrying value of performing consumer loans, held-for-investment were as follows:

	Performing Loans
Balance at December 31, 2016	$	1,482,954
Purchases	—
Additional fundings(A)	12,877
Proceeds from repayments	(88,152		)
Accretion of loan discount and premium amortization, net	1,406
Gross charge-offs	(20,762		)
Additions to the allowance for loan losses, net	(198		)
Balance at March 31, 2017	$	1,388,125

(A) Represents draws on consumer loans with revolving privileges.

Summary of Activities Related to the Valuation Provision on Reverse Mortgage Loans and Allowance for Loan Losses

Activities related to the allowance for loan losses on performing consumer loans, held-for-investment were as follows:

	Collectively Evaluated(A)			Individually Impaired(B)			Total
Balance at December 31, 2016	$	2,441		$	997		$	3,438
Provision (reversal) for loan losses	18,549			(46		)	18,503
Net charge-offs(C)	(18,305		)	—			(18,305		)
Balance at March 31, 2017	$	2,685		$	951		$	3,636

(A) Represents smaller-balance homogeneous loans that are not individually considered impaired and are evaluated based on an analysis of collective borrower performance, key terms of the loans and historical and anticipated trends in defaults and loss severities, and consideration of the unamortized acquisition discount.

(B) Represents consumer loan modifications considered to be troubled debt restructurings (“TDRs”) as they provide concessions to borrowers, primarily in the form of interest rate reductions, who are experiencing financial difficulty. As of March 31, 2017, there are $6.3 million in UPB and $5.4 million in carrying value of consumer loans classified as TDRs.

(C) Consumer loans, other than PCD loans, are charged off when available information confirms that loans are uncollectible, which is generally when they become 180 days past due. Charge-offs are presented net of $2.5 million in recoveries of previously charged-off UPB.

Schedule of Carrying Value of Purchased Credit Deteriorated Loans

Activities related to the carrying value of PCD consumer loans, held-for-investment were as follows:

Balance at December 31, 2016	$	316,532
Allowance for loan losses(A)	(1,384		)
Proceeds from repayments	(34,415		)
Accretion of loan discount and other amortization	10,960
Balance at March 31, 2017	$	291,693

(A) Represents the present value of cash flows expected at acquisition that are no longer expected to be collected.

Impaired Financing Receivables

The following is the unpaid principal balance and carrying value for consumer 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
March 31, 2017	$	345,804	$	291,691
December 31, 2016	371,261		316,532

Schedule of Changes in Accretable Yield

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

Balance at December 31, 2016	$	167,928
Accretion	(10,960		)
Reclassifications to non-accretable difference(A)	(4,314		)
Balance at March 31, 2017	$	152,654

(A) Represents a probable and significant decrease in cash flows previously expected to be collectible.

Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net

Others’ interests in the equity of the Consumer Loan Companies is computed as follows:

	March 31, 2017			December 31, 2016
Total Consumer Loan Companies equity	$	75,153		$	75,311
Others’ ownership interest	46.5		%	46.5		%
Others’ interests in equity of consolidated subsidiary	$	34,946		$	35,020

Others’ interests in the Consumer Loan Companies’ net income (loss) is computed as follows for the three months ended March 31, 2017:

Net Consumer Loan Companies income (loss)	$	21,420
Others’ ownership interest as a percent of total	46.5		%
Others’ interest in net income (loss) of consolidated subsidiaries	$	9,960

Schedule of Assets and Liabilities Related to Consolidated Variable Interest Entities

The following table presents information on the combined assets and liabilities related to these consolidated VIEs.

	As of
	March 31, 2017
Assets
Consumer loans, held-for-investment	$	1,536,354
Restricted cash	12,898
Accrued interest receivable	22,493
Total assets(A)	$	1,571,745
Liabilities
Notes and bonds payable	$	1,549,877
Accounts payable and accrued expenses	901
Total liabilities(A)	$	1,550,778

(A) The creditors of the Consumer Loan SPVs do not have recourse to the general credit of New Residential, and the assets of the Consumer Loan SPVs are not directly available to satisfy New Residential’s obligations.