SEGMENT REPORTING

12 Months Ended

Dec. 31, 2021

At December 31, 2021, New Residential’s reportable segments include (i) Origination, (ii) Servicing, (iii) MSR Related Investments, (iv) Residential Securities, Properties and Loans, (v) Consumer Loans, (vi) Mortgage Loans Receivable and (vii) 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 13) and related interest expense.

In 2021, New Residential reevaluated the composition and number of its reportable segments based on the significance of certain business activities to its operations and performance evaluation, which drive resource allocation. Based on this reevaluation, the Company revised its presentation and composition of reportable segments. In the beginning of the third quarter of 2021, MSR assets serviced by Newrez (previously reflected within the MSR Related Segment) and Caliber are reflected within Servicing. MSRs owned by third-parties but serviced by the Company’s subsidiaries are also reflected within Servicing. MSR assets sub-serviced by third-parties (PHH, LoanCare, Flagstar, Valon and Mr. Cooper) continue to be reflected as part of the MSR Related Investments. During the fourth quarter of 2021, the Mortgage Loans Receivable segment was added to reflect Genesis and consists of a platform that originates construction, renovation and bridge loans. Segment information for prior periods have been restated to reflect these changes.

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


	Origination and Servicing						Residential Securities, Properties and Loans
	Origination		Servicing		MSR Related Investments		Total Origination and Servicing(A)		Real Estate Securities		Properties and Residential Mortgage Loans		Consumer Loans		Mortgage Loans Receivable		Corporate		Total
Year Ended December 31, 2021
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	(4,089)	$	1,025,888	$	537,755	$	1,559,554	$	—	$	—	$	—	$	—	$	—	$	1,559,554
Change in fair value of MSRs and MSR financing receivables	—		(313,655)		(261,698)		(575,353)		—		—		—		—		—		(575,353)
Servicing revenue, net	(4,089)		712,233		276,057		984,201		—		—		—		—		—		984,201
Interest income	188,053		20,629		49,162		257,844		293,989		139,658		93,847		4,219		21,339		810,896
Gain on originated residential mortgage loans, held-for-sale, net	1,704,363		101,764		(138,505)		1,781,204		9,878		35,827		—		—		—		1,826,909
Total revenues	1,888,327		834,626		186,714		3,023,249		303,867		175,485		93,847		4,219		21,339		3,622,006
Interest expense	121,392		97,696		104,838		323,926		47,037		76,273		10,999		1,000		38,073		497,308
G&A and other	1,223,668		395,007		273,748		1,892,423		4,620		90,377		10,856		1,802		119,686		2,119,764
Total operating expenses	1,345,060		492,703		378,586		2,216,349		51,657		166,650		21,855		2,802		157,759		2,617,072
Change in fair value of investments	—		—		(22,336)		(22,336)		(101,566)		155,758		(20,133)		—		—		11,723
Gain (loss) on settlement of investments, net	—		(4,766)		(35,116)		(39,882)		(254,672)		60,164		—		—		(171)		(234,561)
Other income (loss), net	2,346		742		79,355		82,443		(1,686)		52,222		1,935		—		(946)		133,968
Total other income (loss)	2,346		(4,024)		21,903		20,225		(357,924)		268,144		(18,198)		—		(1,117)		(88,870)
Impairment charges (reversals)	—		—		—		—		(5,201)		(42,543)		—		—		—		(47,744)
Income (loss) before income taxes	545,613		337,899		(169,969)		827,125		(100,513)		319,522		53,794		1,417		(137,537)		963,808
Income tax (benefit) expense	115,289		17,828		(26,553)		106,564		—		51,579		83		—		—		158,226
Net income (loss)	$	430,324	$	320,071	$	(143,416)	$	720,561	$	(100,513)	$	267,943	$	53,711	$	1,417	$	(137,537)	$	805,582
Noncontrolling interests in income (loss) of consolidated subsidiaries	11,298		—		(1,800)		9,498		—		—		23,858		—		—		$	33,356
Dividends on preferred stock	—		—		—		—		—		—		—		—		66,744		66,744
Net income (loss) attributable to common stockholders	$	419,026	$	320,071	$	(141,616)	$	711,063	$	(100,513)	$	267,943	$	29,853	$	1,417	$	(204,281)	$	705,482

(A)Includes elimination of intercompany transactions of $113.6 million primarily related to loan sales.


	Origination and Servicing						Residential Securities, Properties and Loans
	Origination		Servicing		MSR Related Investments		Total Origination and Servicing		Real Estate Securities		Properties and Residential Mortgage Loans		Consumer Loans		Mortgage Loans Receivable		Corporate		Total
December 31, 2021
Investments	$	8,829,598	$	5,439,613	$	2,776,078	$	17,045,289	$	9,396,539	$	3,099,294	$	507,291	$	1,515,762	$	—	$	31,564,175
Cash and cash equivalents	587,685		250,294		288,900		1,126,879		197,559		22		1,437		5,653		1,025		1,332,575
Restricted cash	32,803		95,785		27,182		155,770		15,342		2,482		21,961		—		312		195,867
Other assets	969,338		2,728,253		1,926,482		5,624,073		389,309		125,647		39,662		106,615		279,068		6,564,374
Goodwill	11,836		12,540		5,092		29,468		—		—		—		55,731		—		85,199
Total assets	$	10,431,260	$	8,526,485	$	5,023,734	$	23,981,479	$	9,998,749	$	3,227,445	$	570,351	$	1,683,761	$	280,405	$	39,742,190
Debt	$	8,251,702	$	4,131,297	$	3,561,342	$	15,944,341	$	9,040,309	$	2,440,693	$	460,314	$	1,252,660	$	642,670	$	29,780,987
Other liabilities	425,582		2,323,315		182,460		2,931,357		6,991		179,260		583		8,541		165,091		3,291,823
Total liabilities	8,677,284		6,454,612		3,743,802		18,875,698		9,047,300		2,619,953		460,897		1,261,201		807,761		33,072,810
Total equity	1,753,976		2,071,873		1,279,932		5,105,781		951,449		607,492		109,454		422,560		(527,356)		6,669,380
Noncontrolling interests in equity of consolidated subsidiaries	15,683		—		10,251		25,934		—		—		39,414		—		—		65,348
Total New Residential stockholders’ equity	$	1,738,293	$	2,071,873	$	1,269,681	$	5,079,847	$	951,449	$	607,492	$	70,040	$	422,560	$	(527,356)	$	6,604,032
Investments in equity method investees	$	—	$	—	$	105,592	$	105,592	$	—	$	—	$	—	$	—	$	—	$	105,592


	Origination and Servicing						Residential Securities, Properties and Loans
	Origination		Servicing		MSR Related Investments		Total Origination and Servicing(A)		Real Estate Securities		Properties and Residential Mortgage Loans		Consumer Loans		Mortgage Loans Receivable		Corporate		Total
Year Ended December 31, 2020
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	(11,519)	$	891,191	$	762,600	$	1,642,272	$	—	$	—	$	—	$	—	$	—	$	1,642,272
Change in fair value of MSRs and MSR financing receivables	—		(1,094,339)		(1,074,570)		(2,168,909)		—		—		—		—		—		(2,168,909)
Servicing revenue, net	(11,519)		(203,148)		(311,970)		(526,637)		—		—		—		—		—		(526,637)
Interest income	63,160		16,897		58,517		138,574		355,916		175,963		124,512		—		—		794,965
Gain on originated residential mortgage loans, held-for-sale, net	1,289,584		47,277		23,860		1,400,552		(13,398)		11,938		—		—		—		1,399,092
Total revenues	1,341,225		(138,974)		(229,593)		1,012,489		342,518		187,901		124,512		—		—		1,667,420
Interest expense	45,676		76,884		157,230		279,790		157,371		87,958		22,587		—		36,763		584,469
G&A and other	494,398		368,208		155,882		1,018,488		7,639		62,900		10,301		—		109,893		1,209,221
Total operating expenses	540,074		445,092		313,112		1,298,278		165,010		150,858		32,888		—		146,656		1,793,690
Change in fair value of investments	—		—		(18,958)		(18,958)		(25,012)		(107,604)		2,816		—		—		(148,758)
Gain (loss) on settlement of investments, net	—		(5,486)		(11,227)		(16,713)		(828,525)		(19,655)		(4,183)		—		(61,055)		(930,131)
Other income (loss), net	433		(1,738)		39,690		38,385		2,333		(3,220)		(8,386)		—		(41,109)		(11,997)
Total other income (loss)	433		(7,224)		9,505		2,714		(851,204)		(130,479)		(9,753)		—		(102,164)		(1,090,886)
Impairment charges (reversals)	—		—		—		—		13,404		110,208		—		—		—		123,612
Income (loss) before income taxes	801,584		(591,290)		(533,200)		(283,075)		(687,100)		(203,644)		81,871		—		(248,820)		(1,340,768)
Income tax (benefit) expense	211,359		(58,288)		(71,719)		81,352		—		(65,215)		779		—		—		16,916
Net income (loss)	$	590,225	$	(533,002)	$	(461,481)	$	(364,427)	$	(687,100)	$	(138,429)	$	81,092	$	—	$	(248,820)	$	(1,357,684)
Noncontrolling interests in income (loss) of consolidated subsidiaries	15,625		—		891		16,516		—		—		36,158		—		—		52,674
Dividends on preferred stock	—		—		—		—		—		—		—		—		54,295		54,295
Net income (loss) attributable to common stockholders	$	574,600	$	(533,002)	$	(462,372)	$	(380,943)	$	(687,100)	$	(138,429)	$	44,934	$	—	$	(303,115)	$	(1,464,653)

(A) Includes elimination of intercompany transactions of $39.8 million primarily related to loan sales.


	Origination and Servicing						Residential Securities, Properties and Loans
	Origination		Servicing		MSR Related Investments		Total Origination and Servicing		Real Estate Securities		Properties and Residential Mortgage Loans		Consumer Loans		Mortgage Loans Receivable		Corporate		Total
December 31, 2020
Investments	$	2,947,113	$	1,974,679	$	3,560,073	$	8,481,865	$	14,244,558	$	3,029,339	$	685,575	$	—	$	—	$	26,441,337
Cash and cash equivalents	123,124		59,798		412,578		595,500		222,372		7,472		3,182		—		116,328		944,854
Restricted cash	14,826		53,438		24,603		92,867		15,652		96		27,004		—		—		135,619
Other assets	551,910		2,338,837		2,405,854		5,296,601		232,837		86,762		38,465		—		46,171		5,700,836
Goodwill	11,836		12,540		5,092		29,468		—		—		—		—		—		29,468
Total assets	$	3,648,809	$	4,439,292	$	6,408,200	$	14,496,301	$	14,715,419	$	3,123,669	$	754,226	$	—	$	162,499	$	33,252,114
Debt	$	2,700,962	$	1,462,335	$	4,539,661	$	8,702,958	$	13,473,239	$	2,386,919	$	628,759	$	—	$	541,516	$	25,733,391
Other liabilities	298,106		1,552,793		57,879		1,908,778		20,863		28,577		622		—		130,199		2,089,039
Total liabilities	2,999,068		3,015,128		4,597,540		10,611,736		13,494,102		2,415,496		629,381		—		671,715		27,822,430
Total equity	649,741		1,424,164		1,810,660		3,884,565		1,221,317		708,173		124,845		—		(509,216)		5,429,684
Noncontrolling interests in equity of consolidated subsidiaries	19,402		—		43,882		63,284		—		—		45,384		—		—		108,668
Total New Residential stockholders’ equity	$	630,339	$	1,424,164	$	1,766,778	$	3,821,281	$	1,221,317	$	708,173	$	79,461	$	—	$	(509,216)	$	5,321,016
Investments in equity method investees	$	—	$	—	$	129,873	$	129,873	$	—	$	—	$	—	$	—	$	—	$	129,873


	Origination and Servicing						Residential Securities, Properties and Loans
	Origination		Servicing		MSR Related Investments		Total Origination and Servicing(A)		Real Estate Securities		Properties and Residential Mortgage Loans		Consumer Loans		Mortgage Loans Receivable		Corporate		Total
Year Ended December 31, 2019
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	(1,605)	$	525,104	$	1,010,626	$	1,534,125	$	—	$	—	$	—	$	—	$	—	$	1,534,125
Change in fair value of MSRs and MSR financing receivables	—		(313,134)		(588,839)		(901,973)		—		—		—		—		—		(901,973)
Servicing revenue, net	(1,605)		211,970		421,787		632,152		—		—		—		—		—		632,152
Interest income	42,166		31,846		96,376		170,388		744,145		249,673		165,877		—		31		1,330,114
Gain on originated residential mortgage loans, held-for-sale, net	390,981		1,029		43,914		384,564		—		75,543		—		—		—		460,107
Total revenues	431,542		244,845		562,077		1,187,104		744,145		325,216		165,877		—		31		2,422,373
Interest expense	41,949		32,735		214,602		289,286		453,609		158,298		32,558		—		—		933,751
G&A and other	252,458		221,018		211,634		685,110		3,160		52,745		22,540		—		189,780		953,335
Total operating expenses	294,407		253,753		426,236		974,396		456,769		211,043		55,098		—		189,780		1,887,086
Change in fair value of investments	—		—		6,583		6,583		(54,042)		(70,914)		—		—		—		(118,373)
Gain (loss) on settlement of investments, net	—		—		8,030		8,030		74,927		153,449		(8,425)		—		—		227,981
Other income (loss), net	9,340		5,343		30,760		45,443		44		(7,150)		(1,574)		—		1,618		38,381
Total other income (loss)	9,340		5,343		45,373		60,056		20,929		75,385		(9,999)		—		1,618		147,989
Impairment charges (reversals)	—		—		—		—		25,174		(20,607)		31,010		—		—		35,577
Income (loss) before income taxes	146,475		(3,565)		181,214		272,764		283,131		210,165		69,770		—		(188,131)		647,699
Income tax (benefit) expense	39,768		(874)		31,835		70,729		—		(28,461)		(502)		—		—		41,766
Net income (loss)	$	106,707	$	(2,691)	$	149,379	$	202,035	$	283,131	$	238,626	$	70,272	$	—	$	(188,131)	$	605,933
Noncontrolling interests in income (loss) of consolidated subsidiaries	6,231		—		4,255		10,486		—		—		32,151		—		—		42,637
Dividends on preferred stock	—		—		—		—		—		—		—		—		13,281		13,281
Net income (loss) attributable to common stockholders	$	100,476	$	(2,691)	$	145,124	$	191,549	$	283,131	$	238,626	$	38,121	$	—	$	(201,412)	$	550,015

(A) Includes elimination of intercompany transactions of $51.4 million primarily related to loan sales.

Servicing Segment Revenues

The table below summarizes the components of servicing segment revenues:


	Year Ended December 31,
	2021		2020		2019
Base servicing
MSR assets	$	731,924	$	611,669	$	367,419
Residential whole loans	16,448		16,081		8,074
Third party	103,617		139,480		71,145
	851,989		767,230		446,638
Other fees
Ancillary and other fees(A)	173,899		123,961		78,466

Change in fair value due to:
Realization of cash flows	(783,349)		(792,680)		(243,147)
Change in valuation inputs and assumptions and other	469,694		(301,659)		(69,987)
Total servicing fees	$	712,233	$	(203,148)	$	211,970

Servicing Data (period end) (in millions)
UPB - MSR assets	$	389,852	$	220,880	$	140,244
UPB - Residential whole loans	14,097		9,993		7,919
UPB - Third party	78,814		66,892		71,264

(A)Includes incentive, boarding and other fees.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details