CONSUMER LOANS

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [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 December 31, 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 the credit composition of consumer loans:


	Unpaid Principal Balance		Interest in Consumer Loans		Carrying Value		Weighted Average Coupon		Weighted Average Expected Life (Years)(A)	Weighted Average Delinquency(B)
December 31, 2021
Performing	$	358,181	53.5	%	$	413,377	18.5	%	3.2	3.6	%
Purchased credit deteriorated(C)	91,580		53.5	%	93,914		13.8	%	3.1	7.7	%
Other - performing	114		100.0	%	—		15.5	%	0.3	28.4	%
Total consumer loans	$	449,875			$	507,291	17.5	%	3.2	4.5	%
December 31, 2020
Performing	$	490,222	53.5	%	$	553,419	18.3	%	3.6	3.7	%
Purchased credit deteriorated(C)	127,899		53.5	%	129,513		14.1	%	3.5	7.4	%
Other - performing	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, which are accounted for as PCD loans.

See Note 13 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:


	December 31,
	2021						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	$	442,481	$	499,059	$	56,578	$	611,978	$	675,691	$	63,713
90+	7,394		8,232		838		9,005		9,884		879
Total	$	449,875	$	507,291	$	57,416	$	620,983	$	685,575	$	64,592

The following table summarizes activities related to the carrying value of consumer loans:


Balance at December 31, 2019	$	827,545
Fair value adjustment due to fair value option	36,472
Additional fundings(A)	33,041
Proceeds from repayments	(229,218)
Accretion of loan discount and premium amortization, net	24,120
Fair value adjustments due to:
Changes in instrument-specific credit risk	5,195
Other factors	(11,580)
Balance at December 31, 2020	$	685,575

Additional fundings(A)	29,002
Proceeds from repayments	(206,078)
Accretion of loan discount and premium amortization, net	18,925
Fair value adjustments due to:
Changes in instrument-specific credit risk	22,915
Other factors	(43,048)
Balance at December 31, 2021	$	507,291

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