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BUSINESS ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combinations [Abstract]  
Schedule of Purchase Price Allocation
The following table summarizes the allocation of the total consideration paid to acquire the assets and assume the liabilities of companies acquired:
20212019
($ in millions)CaliberGenesisTotalDitechGuardianTotal
Total Consideration $1,318.5 $1,634.6 $2,953.1 $1,218.2 $21.5 $1,239.7 
Assets
Mortgage servicing rights, at fair value$1,507.5 $— $1,507.5 $387.2 $— $387.2 
Residential mortgage loans, held-for-sale, at fair value7,685.7 — 7,685.7 627.4 — 627.4 
Mortgage loans receivable, at fair value— 1,505.6 1,505.6 — — — 
Residential mortgage loans subject to repurchase666.8 — 666.8 — — — 
Cash and cash equivalents472.7 16.4 489.1 — 1.8 1.8 
Restricted cash30.6 — 30.6 — — — 
Servicer advance receivable108.3 — 108.3 238.0 — 238.0 
Intangible assets(A)(B)(C)(D)
41.0 56.8 97.8 10.5 11.7 22.2 
Other assets(E)
609.7 14.5 624.2 64.8 6.6 71.4 
Total Assets Acquired$11,122.3 $1,593.3 $12,715.6 $1,327.9 $20.1 $1,348.0 
Liabilities
Secured financing agreements$7,090.6 $— $7,090.6 $— $— $— 
Secured notes and bonds payable1,121.8 — 1,121.8 — — — 
Residential mortgage loans repurchase liability666.8 — 666.8 — — — 
Accrued expenses and other liabilities918.6 14.4 933.0 60.2 3.7 63.9 
Total Liabilities Assumed$9,797.8 $14.4 $9,812.2 $60.2 $3.7 $63.9 
Net Assets$1,324.5 $1,578.9 $2,903.4 $1,267.7 $16.4 $1,284.1 
Goodwill (bargain purchase gain)$(6.0)$55.7 $49.7 $(49.5)$5.1 $(44.4)
(A)Includes intangible assets acquired as part of the Caliber acquisition in the form of purchased technology and trade name/trademarks. These intangibles are being amortized over a finite life of up to five years.
(B)Includes intangible assets acquired as part of the Genesis acquisition in the form of customer relationships, trade name and a license. Customer relationships and the trade name are being amortized over a finite life of nine years and five years, respectively. New Residential has determined that the license has an indefinite useful life.
(C)Includes intangible assets acquired as part of the Ditech acquisition in the form of correspondent customer relationships and servicing contracts tied to the recovery of defaulted loans. These intangibles are being amortized over a finite life of three years.
(D)Includes intangible assets acquired as part of the Guardian acquisition in the form of customer relationships and a trade name. Customer relationships are being amortized over a finite life of seven years. New Residential has determined that the trade name has an indefinite useful life and will be evaluated for impairment given no legal, regulatory, contractual, competitive or economic factors that would limit the useful life.
(E)Includes post loan charge off deficiency balances acquired through the Ditech Acquisition.
The following table summarizes the provisional amounts recognized related to the Caliber acquisition as of September 30, 2021, as well as the measurement period adjustments made in the fourth quarter of 2021:
($ in millions)Acquisition Date Amounts Recognized as of September 30, 2021Subsequent Adjustments to Fair ValueAcquisition Date Amounts Recognized as of December 31, 2021
(As Adjusted)
Total Consideration$1,318.5 $— $1,318.5 
Assets
Mortgage servicing rights, at fair value$1,507.5 $— $1,507.5 
Residential mortgage loans, held-for-sale, at fair value7,685.7 — 7,685.7 
Residential mortgage loans subject to repurchase666.8 — 666.8 
Cash and cash equivalents472.7 — 472.7 
Restricted cash30.6 — 30.6 
Servicer advance receivable108.3 — 108.3 
Intangible assets41.0 — 41.0 
Other assets(A)
605.4 4.3 609.7 
Total Assets Acquired$11,118.0 $4.3 $11,122.3 
Liabilities
Secured financing agreements$7,090.6 $— $7,090.6 
Secured notes and bonds payable1,121.8 — 1,121.8 
Residential mortgage loans repurchase liability666.8 — 666.8 
Accrued expenses and other liabilities(A)
917.0 1.6 918.6 
Total Liabilities Assumed$9,796.2 $1.6 $9,797.8 
Net Assets$1,321.8 $2.7 $1,324.5 
Goodwill (bargain purchase gain)$(3.3)$(2.7)$(6.0)
(A)The adjustments to Other assets and Accrued expenses and other liabilities primarily reflect the impact on deferred tax assets and related liabilities attributable to certain return to provision adjustments.
Schedule of Total Consideration The total consideration is summarized as follows:
Total Consideration (in millions)Amount
Cash consideration$1,213.3 
Effective settlement of preexisting relationships(A)
4.9 
Total consideration $1,218.2 
(A)Represents the effective settlement of preexisting relationships between New Residential and Ditech related to operating accounts receivable and payable existing prior to the acquisition date. The effective settlement of these preexisting relationships had no impact to New Residential’s Consolidated Statements of Income. New Residential recognized the effective settlement of preexisting relationships separately from the acquisition of assets and assumption of liabilities in the business combination.
The acquisition date fair value of the consideration transferred includes $7.6 million in cash consideration and $13.9 million in contingent consideration. The total consideration is summarized as follows:
Total Consideration (in millions)Amount
Cash consideration$7.6 
Earnout payment(A)
13.9 
Total consideration $21.5 
(A)The range of outcomes for this contingent consideration is from $0 to $17.5 million dependent on the performance of Guardian.
Schedule of Unaudited Supplemental Pro Forma Financial Information The following table presents unaudited pro forma combined revenues and income before income taxes for the year ended December 31, 2021 and 2020 prepared as if the Caliber acquisition had been consummated on January 1, 2020:
Year Ended December 31,
Pro Forma (in millions)20212020
Revenues$5,422.7 $4,453.4 
Income (loss) before income taxes1,258.6 (529.9)
The following table presents unaudited pro forma combined revenues and income before income taxes for the year ended December 31, 2021 and 2020 prepared as if the Genesis acquisition had been consummated on January 1, 2020:
Year Ended December 31,
Pro Forma (in millions)20212020
Revenues$3,643.4 $1,693.0 
Income (loss) before income taxes981.8 (1,316.1)
The following table presents unaudited pro forma combined Servicing and Origination Revenue, which is comprised of (i) Servicing Revenue, Net and (ii) Gain on Originated Residential Mortgage Loans, Held-for-Sale, Net, and Income Before Income Taxes for the year ended December 31, 2019.
Pro Forma (in millions)Amount
Servicing and origination revenue$1,104.0 
Income before income taxes552.8 
The following table presents unaudited pro forma combined Income Before Income Taxes for the year ended December 31, 2019.
Pro Forma (in millions)Amount
Income before income taxes$651.5 
Schedule of Acquired Finite-Lived Intangible Assets by Major Class The following table presents the details of identifiable intangible assets acquired:
Estimated Useful LifeAmount
Purchased technology5$38,545 
Trademarks/trade names12,483 
Total identifiable intangible assets$41,028 
The following table presents the details of identifiable intangible assets acquired:
Estimated Useful LifeAmount
Customer relationships9$44,700 
Trade name55,900 
LicenseIndefinite5,500 
Total identifiable intangible assets$56,100