DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

The following table summarizes Secured Financing Agreements and Secured Notes and Bonds Payable debt obligations:

	December 31, 2021															December 31, 2020
									Collateral
Debt Obligations/Collateral	Outstanding Face Amount		Carrying Value(A)		Final Stated Maturity(B)	Weighted Average Funding Cost		Weighted Average Life (Years)	Outstanding Face		Amortized Cost Basis		Carrying Value		Weighted Average Life (Years)	Carrying Value(A)
Secured Financing Agreements(C)
Repurchase Agreements:
Warehouse Credit Facilities-Residential Mortgage Loans(F)	$	10,135,658	$	10,131,700	Feb-22 to Sep-25	1.92	%	0.7	$	10,904,545	$	10,936,752	$	10,977,338	23.0	$	4,039,564
Warehouse Credit Facility- Mortgage Loans Receivable(G)	1,252,660		1,252,660		Dec-23	2.15	%	2.0	1,473,894		1,473,894		1,515,762		1.3	—
Agency RMBS(D)	8,386,538		8,386,538		Jan-22 to Apr-22	0.16	%	0.1	8,396,800		8,661,005		8,442,009		6.9	12,682,427
Non-Agency RMBS(E)	656,874		656,874		Jan-22 to Aug-22	2.43	%	0.1	13,370,966		869,226		924,948		3.3	817,209
Other(G)(H)	165,112		165,112		Mar-22 to Sep-25	2.95	%	1.0	N/A		234,501		230,062		4.4	8,480
Total Secured Financing Agreements	20,596,842		20,592,884			1.25	%	0.6								17,547,680
Secured Notes and Bonds Payable
Excess MSRs(I)	237,835		237,835		Aug-25	3.74	%	3.7	80,461,630		268,102		333,845		6.3	275,088
MSRs(J)	4,245,401		4,234,771		Mar-22 to Dec-26	3.47	%	3.3	524,065,651		6,049,595		6,609,171		6.3	2,691,791
Servicer Advance Investments(K)	356,580		355,722		Apr-22 to Dec-22	1.27	%	0.9	369,440		405,786		421,807		6.9	423,144
Servicer Advances(K)	2,362,080		2,355,969		Feb-22 to Nov-24	2.19	%	1.3	2,812,974		2,855,148		2,855,148		0.7	2,585,575
Residential Mortgage Loans(L)	1,020,206		1,001,933		Mar-23 to Jul-43	1.82	%	3.2	889,840		1,158,669		1,147,245		23.9	1,039,838
Consumer Loans(M)	454,542		458,580		Sep-37	2.05	%	8.6	449,713		461,026		507,242		3.3	628,759
Total Secured Notes and Bonds Payable	8,676,644		8,644,810			2.77	%	2.9								7,644,195
Total/Weighted Average	$	29,273,486	$	29,237,694		1.71	%	1.3								$	25,191,875

(A)Net of deferred financing costs.

(B)All debt obligations with a stated maturity through the date of issuance were refinanced, extended or repaid.

(C)Includes approximately $20.9 million of associated interest payable as of December 31, 2021.

(D)All fixed interest rates.

(E)All LIBOR-based floating interest rates.

(F)Includes $252.2 million which bear interest at a fixed interest rate of 4.0% with the remaining having LIBOR-based floating interest rates.

(G)All LIBOR-based floating interest rates.

(H)Includes $158.5 million of financing collateralized by a portion of our SFR portfolio as well as financing collateralized by REOs.

(I)Includes $237.8 million of corporate loans which bear interest at a fixed interest rate of 3.7%.

(J)Includes $1.9 billion of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin ranging from 2.5% to 4.5%; and $2.3 billion of capital market notes with fixed interest rates ranging 3.0% to 5.4%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and MSR Financing Receivables securing these notes.

(K)$1.8 billion face amount of the notes has a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.1% to 3.5%. Collateral includes servicer advance investments, as well as servicer advances receivable related to the MSRs and MSR Financing Receivables owned by NRM.

(L)Represents (i) $27.6 million of SAFT 2013-1 mortgage-backed securities issued with fixed interest rate of 3.8%, (ii) $42.9 million of MDST Trusts asset-backed notes held by third parties which bear interest equal to 6.6%, (iii) a $199.7 million note payable collateralized by SFR properties with a fixed interest rate of 2.8%, and (iv) $750.0 million securitization backed by a revolving warehouse facility to finance newly originated first-lien, fixed- and adjustable-rate residential mortgage loans which bears interest equal to one-month LIBOR plus 1.1%.

(M)Includes the SpringCastle debt, comprising the following classes of asset-backed notes held by third parties: $401.5 million UPB of Class A notes with a coupon of 2.0% and a stated maturity date in September 2037 and $53.0 million UPB of Class B notes with a coupon of 2.7% and a stated maturity date in September 2037 (collectively, “SCFT 2020-A”).

As of December 31, 2021, New Residential had no outstanding secured financing agreements where the amount at risk with any individual counterparty or group of related counterparties exceeded 10% of New Residential’s stockholders’ equity. The amount at risk under secured financing agreements is defined as the excess of carrying amount (or market value, if higher than the carrying amount) of the securities or other assets sold under agreement to repurchase, including accrued interest plus any cash or other assets on deposit to secure the repurchase obligation, over the amount of the repurchase liability (adjusted for accrued interest).

General

Certain of the debt obligations included above are obligations of New Residential’s consolidated subsidiaries, which own the related collateral. In some cases, such collateral is not available to other creditors of New Residential.

New Residential has margin exposure on $20.6 billion of secured financing agreements as of December 31, 2021. To the extent that the value of the collateral underlying these secured financing agreements declines, New Residential may be required to post margin, which could significantly impact its liquidity.

The following table summarizes activities related to the carrying value of debt obligations:

	Excess MSRs		MSRs		Servicer Advances(A)		Real Estate Securities		Residential Mortgage Loans and REO		Consumer Loans		Mortgage Loans Receivable		Total
Balance at December 31, 2019	$	217,300	$	2,640,036	$	3,181,672	$	22,799,196	$	5,981,480	$	816,689	$	—	$	35,636,373
Secured Financing Agreements
Borrowings	—		—		—		113,228,180		63,453,603		—		—		176,681,783
Repayments	—		—		—		(122,526,887)		(64,520,481)		—		—		(187,047,368)
Capitalized deferred financing costs, net of amortization	—		—		—		(853)		(2,107)		—		—		(2,960)
Secured Notes and Bonds Payable
Borrowings	193,357		3,575,811		4,072,560		—		875,758		663,047		—		9,380,533
Repayments	(135,569)		(3,517,429)		(4,245,295)		—		(697,789)		(851,688)		—		(9,447,770)
Discount on borrowings, net of amortization	—		—		—		—		—		(2,882)		—		(2,882)
Unrealized (gain) loss on notes, fair value	—		—		—		—		(2,627)		3,593		—		966
Capitalized deferred financing costs, net of amortization	—		(6,627)		(218)		—		45		—		—		(6,800)
Balance at December 31, 2020	$	275,088	$	2,691,791	$	3,008,719	$	13,499,636	$	5,087,882	$	628,759	$	—	$	25,191,875
Secured Financing Agreements
Acquired borrowings, net of discount (Note 3)	—		—		—		—		7,090,577		—		—		7,090,577
Borrowings	—		—		—		64,749,425		129,876,689		—		1,278,647		195,904,761
Repayments	—		—		—		(69,206,600)		(130,719,004)		—		(25,987)		(199,951,591)
Capitalized deferred financing costs, net of amortization	—		—		—		951		506		—		—		1,457
Secured Notes and Bonds Payable															—
Acquired borrowings, net of discount	—		1,045,000		76,772		—		—		—		—		1,121,772
Borrowings	—		4,042,325		2,971,974		—		949,778		—		—		7,964,077
Repayments	(37,253)		(3,549,148)		(3,346,873)		—		(974,176)		(170,623)		—		(8,078,073)
Unrealized (gain) loss on notes, fair value	—		—		—		—		(13,435)		444		—		(12,991)
Capitalized deferred financing costs, net of amortization	—		4,803		1,099		—		(72)		—		—		5,830
Balance at December 31, 2021	$	237,835	$	4,234,771	$	2,711,691	$	9,043,412	$	11,298,745	$	458,580	$	1,252,660	$	29,237,694

(A)New Residential net settles daily borrowings and repayments of the Secured Notes and Bonds Payable on its servicer advances.

Maturities

Contractual maturities of debt obligations as of December 31, 2021:

Year Ending	Nonrecourse(A)		Recourse(B)		Total
2022	$	1,088,882	$	17,402,381	$	18,491,263
2023	1,380,352		3,824,659		5,205,011
2024	750,000		1,211,791		1,961,791
2025	—		2,043,989		2,043,989
2026 and thereafter	525,036		1,596,396		2,121,432
	$	3,744,270	$	26,079,216	$	29,823,486

(A)Includes secured notes and bonds payable of $3.7 billion.

(B)Includes secured financing agreements and secured notes and bonds payable of $20.6 billion and $5.5 billion, respectively.

Borrowing Capacity

The following table summarizes borrowing capacity as of December 31, 2021:

Debt Obligations/ Collateral	Borrowing Capacity		Balance Outstanding		Available Financing(A)
Secured Financing Agreements
Residential mortgage loans and REO	$	5,178,992	$	3,478,514	$	1,700,478
Loan originations	21,564,856		8,824,916		12,739,940
Secured Notes and Bonds Payable
Excess MSRs	286,380		237,835		48,546
MSRs	4,999,244		4,245,401		753,843
Servicer advances	4,002,644		2,718,660		1,283,984
Residential mortgage loans	200,000		199,713		287
	$	36,232,116	$	19,705,039	$	16,527,078

(A)Although available financing is uncommitted, New Residential’s unused borrowing capacity is available if it has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate.

Certain of the debt obligations are subject to customary loan covenants and event of default provisions, including event of default provisions triggered by certain specified declines in New Residential’s equity or a failure to maintain a specified tangible net worth, liquidity, or indebtedness to tangible net worth ratio. Additionally, with the expected phase out of LIBOR, the Company expects the calculated rate on certain debt obligations will be changed to another published reference standard before the planned cessation of LIBOR quotations in 2023. However, the Company does not anticipate this change will have a significant effect on the terms and conditions, ability to access credit, or on its financial condition. New Residential was in compliance with all of its debt covenants as of December 31, 2021.

2025 Senior Unsecured Notes

On September 16, 2020, the Company, as borrower, completed a private offering of $550.0 million aggregate principal amount of 6.250% senior unsecured notes due 2025 (the “2025 Senior Notes”). Interest on the 2025 Senior Notes accrue at the rate of 6.250% per annum with interest payable semi-annually in arrears on each April 15 and October 15.

The 2025 Senior Notes mature on October 15, 2025 and the Company may redeem some or all of the 2025 Senior Notes at the Company’s option, at any time from time to time, on or after October 15, 2022 at a price equal to the following fixed redemption prices (expressed as a percentage of principal amount of the 2025 Senior Notes to be redeemed):

Year	Price
2022	103.125%
2023	101.563%
2024 and thereafter	100.000%

Prior to October 15, 2022, the Company will be entitled at its option on one or more occasions to redeem the 2025 Senior Notes in an aggregate principal amount not to exceed 40% of the aggregate principal amount of the 2025 Senior Notes originally issued prior to the applicable redemption date at a fixed redemption price of 106.250%.

Net proceeds from the offering were approximately $544.5 million, after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by the Company. The Company incurred fees of approximately $8.3 million in relation to the issuance of the 2025 Senior Notes. These fees were capitalized as debt issuance cost and are grouped and presented as part of Unsecured Senior Notes, Net of Issuance Costs on the Consolidated Balance Sheets. For the year ended December 31, 2021, the Company recognized $34.4 million of interest expense. As of December 31, 2021, the unamortized debt issuance costs was approximately $6.7 million.

The 2025 Senior Notes are senior unsecured obligations and rank pari passu in right of payment with all of the Company’s existing and future senior unsecured indebtedness and senior unsecured guarantees. At the time of issuance, the 2025 Senior Notes were not guaranteed by any of the Company’s subsidiaries and none of its subsidiaries are required to guarantee the 2025 Senior Notes in the future, except under limited specified circumstances.

The 2025 Senior Notes contain financial covenants and other non-financial covenants, including, among other things, limits on the ability of the Company and its restricted subsidiaries to incur certain indebtedness (subject to various exceptions), requires that the Company maintain total unencumbered assets (as defined in the debt agreement) of not less than 120% of the aggregate principal amount of the outstanding unsecured debt, and imposes certain requirements in order for the Company to merge or consolidate with or transfer all or substantially all of its assets to another person, in each case subject to certain qualifications set forth in the debt agreement. If the Company were to fail to comply with these covenants, after the expiration of the applicable cure periods, the debt maturity could be accelerated or other remedies could be sought by the lenders. As of December 31, 2021, the Company was in compliance with all covenants.

In the event of a change of control, each holder of the 2025 Senior Notes will have the right to require the Company to repurchase all or any part of the outstanding balance at a purchase price of 101% of the principal amount of the 2025 Senior Notes repurchased, plus accrued and unpaid interest, if any, to, but not including, the date of such repurchase.