DEBT OBLIGATIONS (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt Obligations

The following table presents certain information regarding New Residential’s secured financing agreements and secured notes and bonds payable debt obligations:

	September 30, 2020															December 31, 2019
									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)
Secured Financing Agreements(C)
Repurchase Agreements:
Warehouse Credit Facilities-Residential Mortgage Loans(F)	$	3,759,627	$	3,754,803	Oct-20 to Jul-22	2.5	%	1.0	$	4,156,437	$	4,250,005	$	4,215,066	17.1	$	5,053,207
Agency RMBS(D)	$	9,958,246	$	9,958,246	Oct-20 to Dec-20	0.2	%	0.2	$	9,930,973	$	10,285,282	$	10,361,950	3.8	$	15,481,677
Non-Agency RMBS(E)	$	952,323	$	950,836	Oct-20 to Dec-20	4.1	%	0.1	$	18,999,108	$	1,730,072	$	1,734,798	6.0	$	7,317,519
Real Estate Owned(G)(H)	$	2,983	$	2,983	Oct-20 to Jul-22	3.94	%	1.3	N/A		N/A		3,796		N/A	63,822
Total Secured Financing Agreements	14,673,179		14,666,868			1.05	%	0.4								27,916,225
Secured Notes and Bonds Payable
Excess MSRs(I)	264,980		264,980		Nov-20 to Aug-24	3.91	%	1.1	107,584,509		333,874		421,907		6.0	217,300
MSRs(J)	2,794,108		2,786,144		Jan-21 to Jul-25	4.57	%	2.3	444,177,336		4,645,075		4,675,648		5.8	2,640,036
Servicer Advance Investments(K)	412,538		412,538		Apr-21 to Aug-21	2.27	%	0.6	434,998		510,995		535,760		6.3	581,777
Servicer Advances(K)	2,502,158		2,492,239		Apr-21 to Sep-23	2.84	%	1.9	2,747,433		2,857,040		2,857,040		0.7	2,599,895
Residential Mortgage Loans(L)	1,103,847		1,096,638		Apr-21 to Aug-60	4.26	%	30.1	1,656,351		1,588,739		1,413,258		4.1	864,451
Consumer Loans(M)	678,951		681,109		September-37	2.03	%	3.0	663,047		718,287		718,287		3.6	816,689
Total Secured Notes and Bonds Payable	7,756,582		7,733,648			3.60	%	6.1								7,720,148
Total/ Weighted Average	$	22,429,761	$	22,400,516		1.93	%	2.3								$	35,636,373

(A)Net of deferred financing costs.

(B)All debt obligations with a stated maturity through October 31, 2020 were refinanced, extended or repaid.

(C)These secured financing agreements had approximately $19.5 million of associated accrued interest payable as of September 30, 2020.

(D)All Agency RMBS repurchase agreements have a fixed rate.

(E)All Non-Agency RMBS secured financing agreements have LIBOR-based floating interest rates. This also includes repurchase agreements and related collateral of $30.4 million and $37.3 million, respectively, on retained bonds collateralized by Agency MSRs.

(F)Includes $270.7 million of repurchase agreements which bear interest at a fixed rate of 4.4%. All remaining repurchase agreements have LIBOR-based floating interest rates.

(G)All 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 $70.2 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 2.50% and $194.7 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 3.50%. 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 $933.0 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 4.50%; $37.4 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 2.50%; $326.1 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 4.50%; and

$1,497.6 million of capital markets notes with fixed interest rates ranging 3.55% to 5.44%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR financing receivables that secure these notes.

(K)$1.9 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 1.38% to 1.85%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and MSR financing receivables owned by NRM.

(L)Represents (i) a $989.1 million note payable to Mr. Cooper which includes a $1.4 million receivable from government agency and bears interest equal to one-month LIBOR plus 2.88%, (ii) $75.1 million face amount of SAFT 2013-1 mortgage-backed securities issued with fixed interest rate of 3.72% (see Note 12 for fair value details), (iii) $165.5 million of MDST Trusts asset-backed notes held by third parties which bear interest equal to 6.63% (see Note 12 for fair value details), and (iv) $989.1 million of bonds held by third parties which bear interest at a fixed rate ranging from 3.23% to 5.00%.

(M)Includes the SpringCastle debt, which is primarily composed of the following classes of asset-backed notes held by third parties: $610.0 million UPB of Class A notes with a coupon of 1.97% and a stated maturity date in September 2037 and $53.0 million UPB of Class B notes with a coupon of 2.66% and a stated maturity date in September 2037.

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, 2019	$	217,300	$	2,640,036	$	3,181,672	$	22,799,196	$	5,981,480	$	816,689	$	35,636,373
Secured Financing Agreements:
Borrowings	—		—		—		101,149,870		39,427,045		—		140,576,915
Repayments	—		—		—		(113,038,497)		(40,782,949)		—		(153,821,446)
Capitalized deferred financing costs, net of amortization	—		—		—		(1,487)		(3,337)		—		(4,824)
Secured Notes and Bonds Payable:
Borrowings	97,173		2,367,635		3,053,589		—		875,758		663,047		7,057,202
Repayments	(49,493)		(2,220,067)		(3,328,415)		—		(640,924)		(797,904)		(7,036,803)
Discount on borrowings, net of amortization	—		1,457		—		—		—		(2,882)		(1,425)
Unrealized loss on notes, fair value	—		—		—		—		(2,694)		2,159		(535)
Capitalized deferred financing costs, net of amortization	—		(2,917)		(2,069)		—		45		—		(4,941)
Balance at September 30, 2020	$	264,980	$	2,786,144	$	2,904,777	$	10,909,082	$	4,854,424	$	681,109	$	22,400,516

(A)New Residential net settles daily borrowings and repayments of the Secured notes and bonds payable on its servicer advances.

Schedule of Contractual Maturities of Debt Obligations

New Residential’s debt obligations as of September 30, 2020 had contractual maturities as follows:

Year Ending	Nonrecourse		Recourse		Total
October 1 through December 31, 2020	$	1,296	$	11,670,545	$	11,671,841
2021	1,632,734		3,097,533		4,730,267
2022	119,403		1,691,631		1,811,034
2023	1,200,000		321,685		1,521,685
2024	—		522,589		522,589
2025 and thereafter	919,583		1,802,761		2,722,344
	$	3,873,016	$	19,106,744	$	22,979,760

Schedule of Borrowing Capacity

The following table represents New Residential’s borrowing capacity as of September 30, 2020:

Debt Obligations / Collateral	Borrowing Capacity		Balance Outstanding		Available Financing(A)
Secured Financing Agreements
Residential mortgage loans and REO	$	5,011,258	$	995,151	$	4,016,107
New loan originations	5,283,000		2,767,458		2,515,542
Secured Notes and Bonds Payable
Excess MSRs	311,237		264,980		46,257
MSRs	1,750,000		1,296,506		453,494
Servicer advances	4,645,000		2,914,696		1,730,304
Residential mortgage loans	650,000		—		650,000
	$	17,650,495	$	8,238,791	$	9,411,704

(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.

Schedule of Term Loans

The table below summarizes the interest expense on the 2020 Term Loan:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Coupon interest at 11.00%	$	13,652	$	—	$	20,435	$	—
Amortization of debt discounts and issuance costs	3,368		—		5,006		—
Total	$	17,020	$	—	$	25,441	$	—

Schedule of Debt Redemption

The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed):

Year	Price
2022	103.125%
2023	101.563%
2024 and thereafter	100.000%