CONSUMER LOANS

9 Months Ended

Sep. 30, 2021

Investments In Consumer Loans Equity Method Investees [Abstract]

New Residential, through limited liability companies (together, the “Consumer Loan Companies”), has a co-investment in a portfolio of consumer loans. The portfolio includes personal unsecured loans and personal homeowner loans. OneMain is the servicer of the loans and provides all servicing and advancing functions for the portfolio. As of September 30, 2021, New Residential owns 53.5% of the limited liability company interests in, and consolidates, the Consumer Loan Companies.

New Residential also purchased certain newly originated consumer loans from a third party (“Consumer Loan Seller”). These loans are not held in the Consumer Loan Companies and have been designated as performing consumer loans, held-for-investment and are 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.

The following table summarizes consumer loans, held-for-investment, at fair value:


	Unpaid Principal Balance		Interest in Consumer Loans		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)(A)	Weighted Average Delinquency(B)
September 30, 2021

Performing loans	$	386,479	53.5	%	$	444,377	18.5	%	3.3	3.2	%
Purchased credit deteriorated loans(C)	99,538		53.5	%	103,221		14.0	%	3.2	6.5	%
Other - performing loans	333		100.0	%	197		15.5	%	0.3	15.7	%
Total consumer loans	$	486,350			$	547,795	17.6	%	3.2	3.8	%
December 31, 2020

Performing loans	$	490,222	53.5	%	$	553,419	18.3	%	3.6	3.7	%
Purchased credit deteriorated loans(C)	127,899		53.5	%	129,513		14.1	%	3.5	7.4	%
Other - performing loans	2,862		100.0	%	2,643		15.3	%	0.4	4.3	%
Total consumer loans	$	620,983			$	685,575	17.4	%	3.6	4.4	%

(A)Represents the weighted average expected timing of the receipt of expected cash flows for this investment.

(B)Represents the percentage of the total unpaid principal balance that is 30+ days delinquent. Delinquency status is the primary credit quality indicator as it provides early warning of borrowers who may be experiencing financial difficulties.

(C)Includes loans with evidence of credit deterioration since origination where it is probable that New Residential will not collect all contractually required principal and interest payments.

See Note 11 regarding the financing of consumer loans.

The following table summarizes the past due status and difference between the aggregate unpaid principal balance and the aggregate fair value of consumer loans:


	September 30, 2021						December 31, 2020
Days Past Due	Unpaid Principal Balance		Fair Value		Fair Value Over (Under) Unpaid Principal Balance		Unpaid Principal Balance		Fair Value		Fair Value Over (Under) Unpaid Principal Balance
Under 90 days	$	479,784	$	540,463	$	60,679	$	611,978	$	675,691	$	63,713
90+	6,566		7,332		766		9,005		9,884		879
	$	486,350	$	547,795	$	61,445	$	620,983	$	685,575	$	64,592

Activities related to consumer loans were as follows:


Balance at December 31, 2020	$	685,575


Additional fundings(A)	21,680
Proceeds from repayments	(160,615)
Accretion of loan discount and premium amortization, net	14,493
Fair value adjustment due to:
Changes in instrument-specific credit risk	15,963
Other factors	(29,301)
Balance at September 30, 2021	$	547,795

(A)Represents draws on consumer loans with revolving privileges.