XML 40 R29.htm IDEA: XBRL DOCUMENT v3.21.2
OTHER ASSETS AND LIABILITIES, GENERAL AND ADMINISTRATIVE, AND OTHER ITEMS (Tables)
 6 Months Ended
Jun. 30, 2021
Other Income Assets And Liabilities [Abstract]  
Schedule of Other Assets and Liabilities
Other assets and liabilities consists of the following:
Other AssetsAccrued Expenses
and Other Liabilities
June 30,
2021		December 31, 2020June 30,
2021		December 31, 2020
Margin receivable, net(A)
$614,655 $271,753 Margin payable$400 $— 
Servicing fee receivables175,106 137,426 MSR purchase price holdback21,565 25,121 
Due from servicers13,726 67,854 Interest payable24,897 44,623 
Principal and interest receivable57,047 41,589 Accounts payable114,790 87,406 
Equity investments(B)
56,947 55,504 Derivative liabilities36,996 119,762 
Other receivables104,465 109,111 Due to servicers51,021 59,671 
REO41,337 45,299 Due to agencies17,610 26,748 
Single-family rental properties227,649 41,271 Contingent consideration8,821 14,247 
Goodwill(C)
29,468 29,468 Accrued compensation and benefits57,621 67,025 
Notes receivable, at fair value(D)
53,655 52,389 Excess spread financing, at fair value11,733 18,420 
Warrants, at fair value25,728 23,218 Operating lease liabilities25,993 31,270 
Recovery asset10,237 13,006 Reserve for sales recourse 10,166 9,799 
Property and equipment31,169 27,493 Reserve for servicing losses15,547 9,288 
Receivable from government agency(E)
6,305 14,369 Deferred tax liability100,114 7,859 
Intangible assets32,161 34,125 Other liabilities32,280 16,063 
Prepaid expenses41,342 30,949 $529,554 $537,302 
Operating lease right-of-use assets22,206 26,913 
Derivative assets125,632 290,144 
Ocwen common stock, at fair value5,323 11,187 
Loans receivable, at fair value(F)
250,000 — 
Other assets67,028 35,354 
$1,991,186 $1,358,422 
(A)Represents collateral posted as a result of changes in fair value of New Residential’s (i) real estate securities securing its secured financing agreements and (ii) derivative instruments.
(B)Represents equity investments in funds that invest in (i) a commercial redevelopment project, and (ii) operating companies in the single-family housing industry. The indirect investments are accounted for at fair value based on the net asset value of New Residential’s investment and as an equity method investment, respectively. Equity investments also includes an investment in Covius Holding Inc. (“Covius”), a provider of various technology-enabled services to the mortgage and real estate industries, preferred stock in Valon Mortgage, Inc (“Valon”), a residential mortgage servicing and technology company, and preferred stock in Credijusto Ltd. (“Covalto”), a financial services company.
(C)Includes goodwill derived from the acquisition of Shellpoint Partners LLC (“Shellpoint”) and Guardian Asset Management LLC (“Guardian”).
(D)Represents a subordinated debt facility to Covius as well as a private notes to Valon and Matic Insurance Services, Inc. (“Matic”). The loans are accounted for under the fair value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors.
(E)Represents claims receivable from the FHA on early buyout (“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.
(F)Represents loans made pursuant to a senior credit agreement and a senior subordinated credit agreement to an entity affiliated with funds managed by an affiliate of the Manager (see Note 16). The loans are accounted for under the fair
value option. Electing the fair value option allows the Company to record changes in fair value in the Consolidated Statements of Income and provides users of the financial statements with better information regarding the effect of market factors.
Schedule of Real Estate Owned
The following table presents activity related to the carrying value of investments in REO and SFR:
REOSFR
Balance at December 31, 2020$45,299 $41,271 
Purchases4,441 187,997 
Transfer of loans to REO19,894 — 
Sales(A)
(33,180)(269)
Depreciation— (1,350)
Valuation (provision) reversal 4,883 — 
Balance at June 30, 2021$41,337 $227,649 
(A)Recognized when control of the property has transferred to the buyer.
Schedule of Accretion and Other Amortization
As reflected on the Consolidated Statements of Cash Flows, Accretion and Other Amortization consists of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Accretion of net discount on securities and loans$10,090 22,739 22,097 62,791 
Accretion of servicer advances receivable discount and servicer advance investments(52)24,379 6,796 13,464 
Accretion of excess mortgage servicing rights income(238)(644)11,993 12,582 
Amortization of deferred financing costs(3,776)(4,856)(8,377)(5,992)
Amortization of discount on secured notes and bonds payable(3)(123)(3)(246)
Amortization of discount on corporate debt (438)(1,609)(889)(1,609)
Total accretion and other amortization
$5,583 $39,886 $31,617 $80,990 
Schedule of General and Administrative Expenses
General and Administrative Expenses consists of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Compensation and benefits$61,432 $59,498 $126,858 $110,839 
Compensation and benefits, origination133,298 73,148 266,516 134,426 
Legal and professional18,587 15,552 36,806 41,589 
Loan origination44,916 18,937 85,161 35,866 
Occupancy10,221 8,775 20,571 16,839 
Subservicing45,278 73,132 95,117 140,113 
Loan servicing4,627 7,149 9,306 15,002 
Property and maintenance15,755 8,889 27,885 16,352 
Other miscellaneous general and administrative
33,602 27,557 62,001 56,710 
Total general and administrative expenses$367,716 $292,637 $730,221 $567,736 
Schedule of Change in Fair Value of Investments
Change in Fair Value of Investments

Change in Fair Value of Investments consists of the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Excess MSRs
$(4,211)$(85)$(8,829)$(11,109)
Excess MSRs, equity method investees
(568)(2,052)2,597 (2,509)
MSR financing receivables
(29,517)(121,520)(55,295)(225,631)
Servicer advance investments
(4,502)16,037 (4,873)(2,712)
Real estate and other securities
156,792 58,598 (341,547)(28,194)
Residential mortgage loans
121,242 99,998 181,416 (165,246)
Consumer loans held-for-investment(1,626)34,167 (7,630)(5,750)
Derivative instruments
(37,227)21,106 168,978 (18,876)
Total change in fair value of investments$200,383 $106,249 $(65,183)$(460,027)
Schedule of Gain (Loss) on Settlement of Investments
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Gain (loss) on sale of real estate securities
$(24,708)$(6,669)$(25,691)$(761,209)
Gain (loss) on sale of acquired residential mortgage loans
19,198 (47,330)49,597 (12,094)
Gain (loss) on settlement of derivatives(49,256)(25,195)(76,629)(109,907)
Gain (loss) on liquidated residential mortgage loans
(268)3,220 629 2,381 
Gain (loss) on sale of REO(239)443 (4,185)1,616 
Gain (loss) on extinguishment of debt89 — 83 1,461 
Other gain (loss)(21,120)565 (32,086)3,214 
Total gain (loss) on settlement of investments, net$(76,304)$(74,966)$(88,282)$(874,538)
Schedule of Other Income
Three Months Ended
June 30,		Six Months Ended
June 30,
2021202020212020
Unrealized gain (loss) on secured notes and bonds payable$5,638 $(10,856)$1,216 $6,146 
Unrealized gain (loss) on contingent consideration— (2,257)(408)(3,871)
Unrealized gain (loss) on equity investments(1,834)(2,674)(4,617)(47,697)
Gain (loss) on transfer of loans to REO2,790 1,712 4,111 4,307 
Gain (loss) on transfer of loans to other assets44 (20)23 (261)
Gain (loss) on Ocwen common stock1,725 929 1,539 (4,121)
Provision for servicing losses(16,643)(11,249)(22,801)(16,030)
Rental and ancillary revenue14,195 4,801 20,022 11,061 
Property and maintenance revenue25,104 15,311 45,010 28,658 
Other income (loss)(976)(2,356)(23,665)(21,641)
Total other income (loss), net$30,043 $(6,659)$20,430 $(43,449)
Schedule of Accounts, Notes and Loans Receivable
Notes and Loans Receivable
The following table summarizes the activity for notes and loans receivable:
Notes ReceivableLoans ReceivableTotal
Balance at December 31, 2020
$52,389 $— $52,389 
Fundings1,689 250,000 251,689 
Accrued interest payment-in-kind2,736 — 2,736 
Proceeds from repayments— — — 
Fair value adjustments due to:— 
Changes in instrument-specific credit risk— — — 
Other factors(3,159)— (3,159)
Balance at June 30, 2021
$53,655 $250,000 $303,655 
The following table presents certain information regarding New Residential’s residential mortgage loans outstanding by loan type:
June 30, 2021December 31, 2020
Loan TypeOutstanding Face AmountCarrying
Value		Loan
Count		Weighted Average Yield
Weighted Average Life (Years)(A)
Carrying Value
Total residential mortgage loans, held-for-investment, at fair value(B)
$662,210 $617,951 11,246 5.9 %5.2$674,179 
Acquired reverse mortgage loans(C)
$12,456 $5,948 28 7.7 %3.7$5,884 
Acquired performing loans(D)
134,349 132,453 3,105 4.9 %4.3129,345 
Acquired non-performing loans(E)
221,387 205,597 1,399 5.1 %3.2374,658 
Total residential mortgage loans, held-for-sale, at lower of cost or market$368,192 $343,998 4,532 5.1 %3.6$509,887 
Acquired performing loans(D)(F)
$1,712,038 $1,742,686 10,875 3.3 %7.6$1,423,159 
Acquired non-performing loans(F)
416,534 402,571 2,284 4.8 %3.1335,544 
Originated loans4,448,668 4,599,186 17,338 3.2 %27.72,947,113 
Total residential mortgage loans, held-for-sale, at fair value$6,577,240 $6,744,443 30,497 3.3 %20.9$4,705,816 
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market$6,945,432 $7,088,441 $5,215,703 
(A)Except for originated loans, the weighted average life is based on the expected timing of the receipt of cash flows. For originated loans, the weighted average life is based on the contractual term of the loan.
(B)Residential mortgage loans, held-for-investment, at fair value is grouped and presented as part of Residential loans and variable interest entity consumer loans held-for-investment, at fair value on the Consolidated Balance Sheets.
(C)Represents a 70% participation interest that New Residential holds in a portfolio of reverse mortgage loans. Mr. Cooper holds the other 30% interest and services the loans. The average loan balance outstanding based on total UPB was $0.6 million. Approximately 52% of these loans have reached a termination event. As a result of the termination event, each such loan has matured and the borrower can no longer make draws on these loans.
(D)Performing loans are generally placed on nonaccrual status when principal or interest is 120 days or more past due.
(E)As of June 30, 2021, New Residential has placed non-performing loans, held-for-sale on nonaccrual status, except as described in (F) below.
(F)Includes $722.4 million and $200.2 million UPB of Ginnie Mae EBO performing and non-performing loans, respectively, on accrual status as contractual cash flows are guaranteed by the FHA.
Schedule of Performing Loans Past Due
The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of notes and loans receivable:
June 30, 2021December 31, 2020
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
Current$306,000 $303,655 $(2,345)$51,575 $52,389 $814 
90+— — — — — — 
$306,000 $303,655 $(2,345)$51,575 $52,389 $814 
The following table summarizes the difference between the aggregate unpaid principal balance and the aggregate fair value of loans:
June 30, 2021December 31, 2020
Days Past DueUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal BalanceUnpaid Principal BalanceFair ValueFair Value Over (Under) Unpaid Principal Balance
90 to 119$82,036 $76,074 $(5,962)$71,567 $59,679 $(11,888)
120+620,386 579,643 (40,742)950,564 790,788 (159,776)
$702,422 $655,717 $(46,704)$1,022,131 $850,467 $(171,664)