SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Schedule of Accretion and Other Amortization

Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following:

	Year Ended December 31,
	2018			2017			2016
Accretion of servicer advances receivable discount and servicer advance investments	$	214,876		$	542,983		$	364,350
Accretion of excess mortgage servicing rights income	44,440			103,053			150,141
Accretion of net discount on securities and loans(A)	452,500			398,213			253,243
Amortization of deferred financing costs	(7,795		)	(12,076		)	(18,326		)
Amortization of discount on notes and bonds payable	(2,054		)	(789		)	(1,476		)
	$	701,967		$	1,031,384		$	747,932

(A)    Includes accretion of the accretable yield on PCD loans.

Schedule of Other Income (Loss), Net

Other Income (Loss), Net — This item is comprised of the following:

	Year Ended December 31,
	2018			2017			2016
Unrealized gain (loss) on derivative instruments	$	(113,558	)	$	(2,190	)	$	5,774
Unrealized gain (loss) on other ABS	10,283			2,883			(2,322		)
Unrealized gain (loss) on notes and bonds payable	(684		)	—			—
Unrealized gain (loss) on contingent consideration	(1,581		)	—			—
Gain (loss) on transfer of loans to REO	19,519			22,938			18,356
Gain (loss) on transfer of loans to other assets	(1,977		)	488			2,938
Gain (loss) on Excess MSR recapture agreements	979			2,384			2,802
Gain (loss) on Ocwen common stock	(10,860		)	5,346			—
Other income (loss)	(26,457		)	(27,741		)	935
	$	(124,336	)	$	4,108		$	28,483

Schedule of Gain (Loss) on Settlement of Investments, Net

Gain (Loss) on Settlement of Investments, Net — This item is comprised of the following:

	Year Ended December 31,
	2018			2017			2016
Gain (loss) on sale of real estate securities, net	$	(29,936	)	$	20,642		$	(27,460	)
Gain (loss) on sale of acquired residential mortgage loans, net	(7,677		)	39,731			12,142
Gain (loss) on settlement of derivatives	54,867			(39,214		)	(27,491		)
Gain (loss) on liquidated residential mortgage loans	5,023			(10,201		)	(1,810		)
Gain (loss) on sale of REO	(12,424		)	(9,215		)	4,690
Gains reclassified from change in fair value of investments in excess MSRs and servicer advance investments	113,002			11,320			—
Other gains (losses)	(19,013		)	(2,753		)	(8,871		)
	$	103,842		$	10,310		$	(48,800	)

Schedule Of General And Administrative Expenses

General and Administrative Expenses is comprised of the following:

	Year Ended December 31,
	2018		2017		2016
Compensation and benefits expense	$	109,870	$	—	$	663
Legal and professional expense	45,234		40,182		23,983
Loan origination expense	16,050		—		—
Occupancy expense	8,868		—		—
Other(A)	51,557		26,977		13,924
	$	231,579	$	67,159	$	38,570

(A)    Represents miscellaneous general and administrative expenses.

Schedule of Other Assets and Other Liabilities

Other Assets and Other Liabilities — Other assets and liabilities are comprised of the following:

	Other Assets					Accrued Expenses and Other Liabilities
	December 31,					December 31,
	2018		2017			2018		2017
Margin receivable, net(A)	$	145,857	$	53,150	Interest payable	$	49,352	$	28,821
Other receivables	23,723		10,635		Accounts payable	75,591		73,017
Principal and interest receivable	76,015		48,373		Derivative liabilities (Note 10)	29,389		697
Receivable from government agency(B)	20,795		41,429		Due to servicers	95,419		24,571
Call rights	290		327		MSRs purchase price holdback	100,593		101,290
Derivative assets (Note 10)	10,893		2,423		Excess spread financing, at fair value	39,304		—
Servicing fee receivables	105,563		60,520		Contingent Consideration	40,842		—
Ginnie Mae EBO servicer advances receivable, net(C)	2,750		8,916		Reserve for sales recourse	5,880		—
Due from servicers	95,261		38,601		Other liabilities	54,140		10,718
Goodwill	24,645		—			$	490,510	$	239,114
Intangible assets	18,708		—
Ocwen common stock, at fair value	7,778		19,259
Prepaid expenses	29,165		7,308
Equity investment(D)	74,323		—
Other assets	52,642		21,240
	$	688,408	$	312,181

(A) Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments.

(B) Represents claims receivable from the FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.

(C) Represents an HLSS (Note 1) loan to a counterparty collateralized by servicer advances on Ginnie Mae EBO loans.

(D) Represents an indirect equity investment in a commercial redevelopment project. The investment is accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment.