SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

At March 31, 2021, New Residential’s reportable segments include (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities and Loans, (v) Consumer Loans and (vi) Corporate. The Corporate segment primarily consists of general and administrative expenses, management fees and incentive compensation related to the Management Agreement, corporate cash and related interest income, unsecured senior notes (Note 11) and related interest expense.

The following tables summarize segment financial information, which in total reconciles to the same data for New Residential as a whole:

	Servicing and Origination													Residential Securities and Loans
	Origination			Servicing			MSR Related Investments			Elimination(A)		Total Servicing and Origination		Real Estate Securities			Residential Mortgage Loans			Consumer Loans			Corporate			Total
Three Months Ended March 31, 2021
Interest income	$	22,852		$	474		$	78,771		$	—	$	102,097	$	89,850		$	36,322		$	25,466		$	—		$	253,735
Servicing revenue, net	(8,110)			113,515			466,587			(58,444)		513,548		—			—			—			—			513,548
Gain on originated mortgage loans, held-for-sale, net	384,423			809			35,155			(43,499)		376,888		13,398			13,148			—			—			403,434
Total revenues	399,165			114,798			580,513			(101,943)		992,533		103,248			49,470			25,466			—			1,170,717
Interest expense	18,063			70			51,832			—		69,965		15,720			21,276			3,018			8,926			118,905
G&A and other	189,926			84,239			119,933			(58,444)		335,654		1,156			17,686			3,036			27,135			384,667
Total operating expenses	207,989			84,309			171,765			(58,444)		405,619		16,876			38,962			6,054			36,061			503,572
Change in fair value of investments	—			—			(27,602)			—		(27,602)		(292,134)			60,174			(6,004)			—			(265,566)
Gain (loss) on settlement of investments, net	—			—			644			—		644		(28,356)			29,441			—			—			1,729
Other income (loss), net	59			1,102			(6,333)			—		(5,172)		(1,686)			(13,626)			(2,207)			(629)			(23,320)
Total other income (loss)	59		—	1,102		—	(33,291)		—	—		(32,130)		(322,176)		—	75,989		—	(8,211)		—	(629)		—	(287,157)
Impairment	—			—			—			—		—		(894)			(18,713)			—			—			(19,607)
Income (loss) before income taxes	191,235			31,591		—	375,457		—	(43,499)		554,784		(234,910)			105,210			11,201			(36,690)			399,595
Income tax expense (benefit)	36,386			7,915			38,596			—		82,897		—			15,303			59			—			98,259
Net income (loss)	154,849			23,676			336,861			(43,499)		471,887		(234,910)			89,907			11,142			(36,690)			301,336
Noncontrolling interests in income (loss) of consolidated subsidiaries	3,525			—			1,308			—		4,833		—			—			4,561			—			9,394
Dividends on preferred stock	—			—			—			—		—		—			—			—			14,358			14,358
Net income (loss) attributable to common stockholders	$	151,324		$	23,676		$	335,553		$	(43,499)	$	467,054	$	(234,910)		$	89,907		$	6,581		$	(51,048)		$	277,584

	Servicing and Origination										Residential Securities and Loans
	Origination		Servicing		MSR Related Investments		Elimination(A)		Total Servicing and Origination		Real Estate Securities		Residential Mortgage Loans		Consumer Loans		Corporate		Total
March 31, 2021
Investments	$	3,465,886	$	—	$	5,965,350	$	—	$	9,431,236	$	14,606,157	$	3,263,557	$	638,986	$	—	$	27,939,936
Cash and cash equivalents	187,233		97,057		485,627		—		769,917		210,745		17,678		8,889		31,253		1,038,482
Restricted cash	12,679		39,926		34,448		—		87,053		17,409		96		31,478		—		136,036
Other assets	987,931		167,445		4,060,339		—		5,215,715		660,267		81,295		36,644		46,286		6,040,207
Goodwill	11,836		12,540		5,092		—		29,468		—		—		—		—		29,468
Total assets	$	4,665,565	$	316,968	$	10,550,856	$	—	$	15,533,389	$	15,494,578	$	3,362,626	$	715,997	$	77,539	$	35,184,129
Debt	$	3,300,495	$	5,391	$	5,861,546	$	—	$	9,167,432	$	14,356,673	$	2,515,219	$	591,011	$	541,966	$	27,172,301
Other liabilities	546,295		51,504		1,498,685		—		2,096,484		7,283		146,637		3,251		136,360		2,390,015
Total liabilities	3,846,790		56,895		7,360,231		—		11,263,916		14,363,956		2,661,856		594,262		678,326		29,562,316
Total equity	818,775		260,073		3,190,625		—		4,269,473		1,130,622		700,770		121,735		(600,787)		5,621,813
Noncontrolling interests in equity of consolidated subsidiaries	17,187		—		39,834		—		57,021		—		—		41,963		—		98,984
Total New Residential stockholders’ equity	$	801,588	$	260,073	$	3,150,791	$	—	$	4,212,452	$	1,130,622	$	700,770	$	79,772	$	(600,787)	$	5,522,829
Investments in equity method investees	$	—	$	—	$	126,095	$	—	$	126,095	$	—	$	—	$	—	$	—	$	126,095

	Servicing and Origination															Residential Securities and Loans
	Origination			Servicing			MSR Related Investments			Elimination(A)			Total Servicing and Origination			Real Estate Securities			Residential Mortgage Loans			Consumer Loans			Corporate			Total
Three Months Ended March 31, 2020
Interest income	$	16,735		$	7,487		$	99,353		$	—		$	123,575		$	184,005		$	59,921		$	34,872		$	—		$	402,373
Servicing revenue, net	(1,078)			86,742			(350,587)			(24,192)			(289,115)			—			—			—			—			(289,115)
Gain on originated mortgage loans, held-for-sale, net	158,215			259			15,967			(9,375)			165,066			—			8,511			—			—			173,577
Total revenues	173,872		—	94,488		—	(235,267)		—	(33,567)		—	(474)		—	184,005		—	68,432		—	34,872		—	—		—	286,835
Interest expense	13,427			196			57,783			—			71,406			108,009			30,773			6,667			—			216,855
G&A and other	100,212			64,352			101,974			(24,192)			242,346			6,854			16,756			3,883			26,981			296,820
Total operating expenses	113,639			64,548			159,757			(24,192)			313,752			114,863			47,529			10,550			26,981			513,675
Change in fair value of investments	—			—			(134,341)			—			(134,341)			(126,774)			(265,244)			(39,917)			—			(566,276)
Gain (loss) on settlement of investments, net	—			—			(3,281)			—			(3,281)			(839,252)			42,961			—			—			(799,572)
Other income (loss), net	(16)			499			(19,288)			—			(18,805)			(13)			30,012			(834)			(47,150)			(36,790)
Total other income (loss)	(16)		0	499		0	(156,910)		0	—			(156,427)			(966,039)		0	(192,271)		0	(40,751)		0	(47,150)			(1,402,638)
Impairment	—			—			—			—			—			44,149			100,496			—			—			144,645
Income (loss) before income taxes(B)	60,217		—	30,439		—	(551,934)		—	(9,375)		—	(470,653)		—	(941,046)		—	(271,864)		—	(16,429)		—	(74,131)		—	(1,774,123)
Income tax expense (benefit)	16,714			8,449			(116,945)			—			(91,782)			—			(75,201)			115			—			(166,868)
Net income (loss)	43,503			21,990			(434,989)			(9,375)			(378,871)			(941,046)			(196,663)			(16,544)			(74,131)			(1,607,255)
Noncontrolling interests in income (loss) of consolidated subsidiaries	1,283			—			(11,247)			—			(9,964)			—			—			(6,198)			—			(16,162)
Dividends on preferred stock	—			—			—			—			—			—			—			—			11,222			11,222
Net income (loss) attributable to common stockholders	$	42,220		$	21,990		$	(423,742)		$	(9,375)		$	(368,907)		$	(941,046)		$	(196,663)		$	(10,346)		$	(85,353)		$	(1,602,315)

(A)Elimination of intercompany transactions primarily relate to servicing fees, loan sales, and MSR recaptures.

(B)Beginning in Q3 2020, New Residential revised its methodology of allocating tax expense within the Servicing and Origination segments. Specifically, taxes are now allocated based on intercompany agreements rather than based on a more general pro rata approach, which better reflects the operating performance of each respective segment. The revised methodology has been applied consistently for all periods presented.