XML 56 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
DEBT OBLIGATIONS (Tables)
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
The following table presents certain information regarding New Residential’s debt obligations:
 
 
December 31, 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)
 
$
1,974,164

 
$
1,974,164

 
Jan-18
 
1.37
%
 
0.1
 
$
1,951,238

 
$
2,014,038

 
$
1,997,348

 
3.7
 
$
1,764,760

Non-Agency RMBS(E)
 
4,720,290

 
4,720,290

 
Jan-18 to Mar-18
 
2.90
%
 
0.1
 
11,899,935

 
5,467,187

 
5,839,524

 
7.7
 
2,654,242

Residential Mortgage Loans(F)
 
1,850,515

 
1,849,004

 
Feb-18 to Dec-19
 
3.73
%
 
0.9
 
2,364,874

 
2,165,584

 
2,135,698

 
4.3
 
686,412

Real Estate Owned(G) (H)
 
118,778

 
118,681

 
Feb-18 to Dec-19
 
3.70
%
 
0.8
 
N/A

 
N/A

 
142,404

 
N/A
 
85,217

Total Repurchase Agreements
 
8,663,747

 
8,662,139

 
 
 
2.74
%
 
0.3
 
 
 
 
 
 
 
 
 
5,190,631

Notes and Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess MSRs(I)
 
484,199

 
483,978

 
Jun-19 to Jul-22
 
5.31
%
 
2.8
 
264,504,619

 
1,107,042

 
1,328,008

 
6.1
 
729,145

MSRs(J)
 
1,158,085

 
1,157,179

 
Feb-18 to Dec-22
 
5.44
%
 
2.2
 
221,952,565

 
1,904,987

 
2,211,710

 
6.2
 
—

Servicer Advances(K)
 
4,066,567

 
4,060,156

 
Mar-18 to Dec-21
 
3.26
%
 
2.0
 
4,255,047

 
4,596,042

 
4,699,418

 
4.5
 
5,549,872

Residential Mortgage Loans(L)
 
137,196

 
137,196

 
Oct-18 to Apr-20
 
3.61
%
 
2.3
 
229,522

 
179,812

 
179,812

 
8.0
 
8,271

Consumer Loans(M)
 
1,248,050

 
1,242,756

 
Dec-21 to Mar-24
 
3.36
%
 
3.1
 
1,377,625

 
1,380,202

 
1,374,097

 
3.5
 
1,700,211

Receivable from government agency(L)
 
3,126

 
3,126

 
Oct-18
 
3.90
%
 
0.8
 
N/A

 
N/A

 
2,782

 
N/A
 
3,106

Total Notes and Bonds Payable
 
7,097,223

 
7,084,391

 
 
 
3.78
%
 
2.3
 
 
 
 
 
 
 
 
 
7,990,605

Total/Weighted Average
 
$
15,760,970

 
$
15,746,530

 
 
 
3.21
%
 
1.2
 
 
 
 
 
 
 
 
 
$
13,181,236


(A)
Net of deferred financing costs.
(B)
All debt obligations with a stated maturity through February 13, 2018 were refinanced, extended or repaid.
(C)
These repurchase agreements had approximately $16.9 million of associated accrued interest payable as of December 31, 2017.
(D)
All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.0 billion of related trade and other receivables and $0.9 billion of treasury securities.
(E)
All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $160.2 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 $204.2 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 $280.0 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 interests in 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%; $487.2 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%; and $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 3.13%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and mortgage servicing rights financing receivables that secure these notes.
(K)
$3.5 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 1.5% 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 $10.3 million note payable to Nationstar that bears interest equal to one-month LIBOR plus 2.88% and (ii) $130.0 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: $927.0 million 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 $73.6 million face amount note collateralized by newly originated consumer loans which bears interest equal to 4.00%.
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, 2015
 
$
182,978

 
$
—

 
$
7,047,061

 
$
3,017,157

 
$
1,004,980

 
$
40,446

 
$
11,292,622

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 

Borrowings
 
—

 
—

 
—

 
30,441,880

 
552,459

 
21,458

 
31,015,797

Repayments
 
—

 
—

 
—

 
(29,040,035
)
 
(764,113
)
 
(61,904
)
 
(29,866,052
)
Capitalized deferred financing costs, net of amortization
 
—

 
—

 
—

 
—

 
(2,169
)
 
—

 
(2,169
)
Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired borrowings, net of discount
 
—

 
—

 
—

 
—

 
—

 
1,803,192

 
1,803,192

Borrowings
 
1,141,996

 
—

 
6,857,006

 
—

 
—

 
1,789,706

 
9,788,708

Repayments
 
(592,175
)
 
—

 
(8,354,692
)
 
—

 
(8,151
)
 
(1,888,714
)
 
(10,843,732
)
Discount on borrowings, net of amortization
 
1,420

 
—

 
—

 
—

 
—

 
(3,374
)
 
(1,954
)
Capitalized deferred financing costs, net of amortization
 
(5,074
)
 
—

 
497

 
—

 
—

 
(599
)
 
(5,176
)
Balance at December 31, 2016
 
$
729,145

 
$
—

 
$
5,549,872

 
$
4,419,002

 
$
783,006

 
$
1,700,211

 
$
13,181,236

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
—

 
—

 
—

 
55,233,007

 
2,529,556

 
—

 
57,762,563

Repayments
 
—

 
—

 
—

 
(52,957,555
)
 
(1,334,952
)
 
—

 
(54,292,507
)
Capitalized deferred financing costs, net of amortization
 
—

 
—

 
—

 
—

 
1,449

 
—

 
1,449

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 
1,400,354

 
1,172,058

 
5,344,985

 
—

 
140,323

 
—

 
8,057,720

Repayments
 
(1,650,409
)
 
(13,973
)
 
(6,838,862
)
 
—

 
(11,375
)
 
(456,904
)
 
(8,971,523
)
Discount on borrowings, net of amortization
 
—

 
—

 
(147
)
 
—

 
—

 
(700
)
 
(847
)
Capitalized deferred financing costs, net of amortization
 
4,888

 
(906
)
 
4,308

 
—

 
—

 
149

 
8,439

Balance at December 31, 2017
 
$
483,978

 
$
1,157,179

 
$
4,060,156

 
$
6,694,454

 
$
2,108,007

 
$
1,242,756

 
$
15,746,530


(A)
New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances.
Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of December 31, 2017 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
2018
 
$
1,160,873

 
$
9,020,147

 
$
10,181,020

2019
 
1,391,994

 
530,794

 
1,922,788

2020
 
506,269

 
—

 
506,269

2021
 
1,211,100

 
—

 
1,211,100

2022
 
74,000

 
691,385

 
765,385

2023 and thereafter
 
1,174,408

 
—

 
1,174,408

 
 
$
5,518,644

 
$
10,242,326

 
$
15,760,970
Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of December 31, 2017:
Debt Obligations/ Collateral
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
Residential mortgage loans and REO
 
$
2,735,000

 
$
1,969,293

 
$
765,707

Notes and Bonds Payable
 
 
 
 
 
 
Excess MSRs
 
750,000

 
280,000

 
470,000

MSRs
 
775,000

 
670,898

 
104,102

Servicer advances(A)
 
1,910,120

 
1,585,069

 
325,051

Consumer loans
 
150,000

 
73,646

 
76,354

 
 
$
6,320,120

 
$
4,578,906

 
$
1,741,214


(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 0.02% 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.