DEBT OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2017

Activities related to the carrying value of New Residential’s debt obligations were as follows:



	Excess MSRs			MSRs			Servicer Advances^(A)			Real Estate Securities			Residential Mortgage Loans and REO			Consumer Loans			Total
Balance at December 31, 2016	$	729,145		$	—		$	5,549,872		$	4,419,002		$	783,006		$	1,700,211		$	13,181,236
Repurchase Agreements:
Borrowings	—			—			—			35,275,158			1,438,585			—			36,713,743
Repayments	—			—			—			(33,530,682		)	(526,536		)	—			(34,057,218		)
Capitalized deferred financing costs, net of amortization	—			—			—			—			871			—			871
Notes and Bonds Payable:
Borrowings	1,300,354			1,098,058			4,022,655			—			140,323			—			6,561,390
Repayments	(1,450,922		)	(973		)	(5,502,088		)	—			(5,518		)	(364,011		)	(7,323,512		)
Discount on borrowings, net of amortization	—			—			(156		)	—			—			1,335			1,179
Capitalized deferred financing costs, net of amortization	4,838			(705		)	3,000			—			—			173			7,306
Balance at September 30, 2017	$	583,415		$	1,096,380		$	4,073,283		$	6,163,478		$	1,830,731		$	1,337,708		$	15,084,995


(A)	New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances.

The following table presents certain information regarding New Residential’s debt obligations:



	September 30, 2017															December 31, 2016
									Collateral
Debt Obligations/Collateral	Outstanding Face Amount		Carrying Value^(A)		Final Stated Maturity^(B)	Weighted Average Funding Cost		Weighted Average Life (Years)	Outstanding Face		Amortized Cost Basis		Carrying Value		Weighted Average Life (Years)	Carrying Value^(A)
Repurchase Agreements^(C)
Agency RMBS^(D)	$	1,846,934	$	1,846,934	Oct-17 to Nov-17	1.35	%	0.1	$	1,845,992	$	1,905,003	$	1,907,360	0.3	$	1,764,760
Non-Agency RMBS ^(E)	4,316,544		4,316,544		Oct-17 to Jan-18	2.76	%	0.1	11,050,796		5,024,799		5,404,713		7.7	2,654,242
Residential Mortgage Loans^(F)	1,584,033		1,581,980		Oct-17 to Feb-19	3.75	%	0.3	2,136,065		1,907,212		1,890,819		4.3	686,412
Real Estate Owned^(G)(H)	102,703		102,570		Oct-17 to Feb-19	3.57	%	0.5	N/A		N/A		145,939		N/A	85,217
Total Repurchase Agreements	7,850,214		7,848,028			2.64	%	0.1								5,190,631
Notes and Bonds Payable
Secured Corporate Notes^(I)	583,686		583,415		Jun-19 to Jul-22	4.98	%	2.9	263,232,259		1,085,585		1,212,791		5.9	729,145
MSRs^(J)	1,097,085		1,096,380		Feb-18 to Apr-22	5.28	%	2.3	223,999,150		1,949,608		2,145,609		6.2	—
Servicer Advances^(K)	4,081,010		4,073,283		Nov-17 to Dec-21	3.29	%	2.2	4,297,775		4,591,210		4,680,637		4.5	5,549,872
Residential Mortgage Loans^(L)	143,207		143,207		Oct-17 to Apr-20	3.61	%	2.5	234,686		184,639		184,639		7.9	8,271
Consumer Loans^(M)	1,340,943		1,337,708		Dec-21 to Mar-24	3.35	%	3.2	1,472,792		1,473,353		1,467,752		3.5	1,700,211
Receivable from government agency^(L)	2,974		2,974		Oct-17	3.78	%	1.1	N/A		N/A		2,792		N/A	3,106
Total Notes and Bonds Payable	7,248,905		7,236,967			3.75	%	2.5								7,990,605
Total/ Weighted Average	$	15,099,119	$	15,084,995		3.17	%	1.3								$	13,181,236


(A)	Net of deferred financing costs.


(B)	All debt obligations with a stated maturity of October 2017 were refinanced, extended or repaid.


(C)	These repurchase agreements had approximately $18.4 million of associated accrued interest payable as of September 30, 2017.


(D)	All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.8 billion of related trade and other receivables.


(E)	All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $160.3 million on retained servicer advance and consumer loan bonds.


(F)	All of these repurchase agreements have LIBOR-based floating interest rates.


(G)	All of these repurchase agreements have LIBOR-based floating interest rates.


(H)	Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.

(I)

Includes $213.7 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.75%, and includes $370.0 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.75%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure these notes.

(J)

Includes $290.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 4.25%, $232.9 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.75%, $74.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.50%, and $500.2 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 4.00%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and mortgage servicing rights financing receivable that secure these notes.

(K)

$3.8 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.9% to 2.4%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and mortgage servicing rights financing receivables owned by NRM.


(L)	Represents: (i) a $10.8 million note payable to Nationstar that bears interest equal to one-month LIBOR plus 2.88% and (ii) $135.4 million of asset-backed notes held by third parties which bear interest equal to 3.60%.

(M)

Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $1.0 billion UPB of Class A notes with a coupon of 3.05% and a stated maturity date in November 2023; $210.8 million UPB of Class B notes with a coupon of 4.10% and a stated maturity date in March 2024; $18.3 million UPB of Class C-1 notes with a coupon of 5.63% and a stated maturity date in March 2024; $18.3 million UPB of Class C-2 notes with a coupon of 5.63% and a stated maturity date in March 2024. Also includes a $86.3 million face amount note collateralized by newly originated consumer loans which bears interest equal to 4.00%.

Schedule of Contractual Maturities of Debt Obligations

New Residential’s debt obligations as of September 30, 2017 had contractual maturities as follows:



Year	Nonrecourse		Recourse		Total
October 1 through December 31, 2017	$	185,907	$	7,624,943	$	7,810,850
2018	829,678		832,334		1,662,012
2019	1,551,725		370,639		1,922,364
2020	511,622		—		511,622
2021	1,223,797		—		1,223,797
2022 and thereafter	1,254,602		713,872		1,968,474
	$	5,557,331	$	9,541,788	$	15,099,119

Schedule of Borrowing Capacity

The following table represents New Residential’s borrowing capacity as of September 30, 2017:



Debt Obligations / Collateral	Collateral Type	Borrowing Capacity		Balance Outstanding		Available Financing
Repurchase Agreements
Residential Mortgage Loans	Residential mortgage loans and REO	$	2,890,000	$	1,686,736	$	1,203,264
Notes and Bonds Payable
Secured Corporate Loan	Excess MSRs	750,000		370,000		380,000
MSRs	MSRs	700,000		596,898		103,102
Servicer Advances^(A)	Servicer advances	2,339,192		1,474,512		864,680
Consumer Loans	Consumer loans	150,000		86,343		63,657
		$	6,829,192	$	4,214,489	$	2,614,703

(A)

New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.1% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained Non-Agency bonds collateralized by servicer advances with a current face amount of $93.5 million.