SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2022

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
Three Months Ended March 31, 2022
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	(653)	$	349,058	$	107,995	$	456,400	$	—	$	—	$	—	$	—	$	—	$	456,400
Change in fair value of MSRs and MSR financing receivables	—		497,317		78,076		575,393		—		—		—		—		—		575,393
Servicing revenue, net	(653)		846,375		186,071		1,031,793		—		—		—		—		—		1,031,793
Interest income	55,371		11,353		15,702		82,426		56,349		26,989		18,933		34,277		6,439		225,413
Gain on originated residential mortgage loans, held-for-sale, net	407,269		61,762		—		471,430		—		566		—		—		—		471,996
Total revenues	461,987		919,490		201,773		1,585,649		56,349		27,555		18,933		34,277		6,439		1,729,202
Interest expense	29,435		33,706		26,365		89,506		9,029		20,868		2,262		6,969		10,199		138,833
G&A and other	408,758		124,780		56,010		589,548		772		23,434		2,254		16,408		31,630		664,046
Total operating expenses	438,193		158,486		82,375		679,054		9,801		44,302		4,516		23,377		41,829		802,879
Change in fair value of investments	—		(32)		(1,409)		(1,441)		(125,949)		(32,748)		(13,733)		26,752		—		(147,119)
Gain (loss) on settlement of investments, net	—		(315)		(2,199)		(2,514)		49,420		44,912		—		(30,634)		—		61,184
Other income (loss), net	2,095		881		28,943		31,919		(1,889)		17,345		8,772		—		(75)		56,072
Total other income (loss)	2,095		534		25,335		27,964		(78,418)		29,509		(4,961)		(3,882)		(75)		(29,863)
Impairment	—		—		—		—		711		3,029		—		—		—		3,740
Income (loss) before income taxes	25,889		761,538		144,733		934,559		(32,581)		9,733		9,456		7,018		(35,465)		892,720
Income tax expense (benefit)	6,516		161,116		31,463		199,095		—		3,657		37		—		—		202,789
Net income (loss)	19,373		600,422		113,270		735,464		(32,581)		6,076		9,419		7,018		(35,465)		689,931
Noncontrolling interests in income (loss) of consolidated subsidiaries	407		—		228		635		—		—		4,974		—		—		5,609
Dividends on preferred stock	—		—		—		—		—		—		—		—		22,461		22,461
Net income (loss) attributable to common stockholders	$	18,966	$	600,422	$	113,042	$	734,829	$	(32,581)	$	6,076	$	4,445	$	7,018	$	(57,926)	$	661,861

(A)Includes elimination of intercompany transactions of $2.4 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
March 31, 2022
Investments	$	4,967,437	$	6,666,098	$	2,835,711	$	14,469,246	$	9,509,930	$	2,791,926	$	462,055	$	1,670,415	$	—	$	28,903,572
Cash and cash equivalents	609,337		278,059		269,187		1,156,583		301,454		2,900		29,702		39,048		141,490		1,671,177
Restricted cash	47,166		68,090		62,224		177,480		11,308		1,591		23,734		80,612		312		295,037
Other assets	869,977		2,671,819		2,143,253		5,685,049		713,256		165,379		35,702		113,293		200,883		6,913,562
Goodwill	11,836		12,540		5,092		29,468		—		—		—		55,731		—		85,199
Total assets	$	6,505,753	$	9,696,606	$	5,315,467	$	21,517,826	$	10,535,948	$	2,961,796	$	551,193	$	1,959,099	$	342,685	$	37,868,547
Debt	$	4,795,869	$	4,621,279	$	3,433,522	$	12,850,670	$	9,485,486	$	2,331,373	$	413,881	$	1,413,739	$	610,047	$	27,105,196
Other liabilities	503,738		2,201,283		364,851		3,069,872		7,346		310,112		973		26,615		163,721		3,578,639
Total liabilities	5,299,607		6,822,562		3,798,373		15,920,542		9,492,832		2,641,485		414,854		1,440,354		773,768		30,683,835
Total equity	1,206,146		2,874,044		1,517,094		5,597,284		1,043,116		320,311		136,339		518,745		(431,083)		7,184,712
Noncontrolling interests in equity of consolidated subsidiaries	13,334		—		9,999		23,333		—		—		38,745		—		—		62,078
Total New Residential stockholders’ equity	$	1,192,812	$	2,874,044	$	1,507,095	$	5,573,951	$	1,043,116	$	320,311	$	97,594	$	518,745	$	(431,083)	$	7,122,634
Investments in equity method investees	$	—	$	—	$	93,129	$	93,129	$	—	$	—	$	—	$	—	$	—	$	93,129


	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
Three Months Ended March 31, 2021
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables	$	(8,110)	$	219,553	$	136,841	$	348,284	$	—	$	—	$	—	$	—	$	—	$	348,284
Change in fair value of MSRs and MSR financing receivables	—		147,351		44,923		192,274		—		—		—		—		—		192,274
Servicing revenue, net	(8,110)		366,904		181,764		540,558		—		—		—		—		—		540,558
Interest income	22,852		4,873		21,584		49,309		89,850		36,322		25,466		—		—		200,947
Gain on originated residential mortgage loans, held-for-sale, net	384,423		12,017		(8,031)		376,902		13,398		13,148		—		—		—		403,448
Total revenues	399,165		383,794		195,317		966,769		103,248		49,470		25,466		—		—		1,144,953
Interest expense	18,063		23,100		28,802		69,965		15,720		21,276		3,018		—		8,926		118,905
G&A and other	189,926		90,607		55,121		335,654		1,156		17,686		3,036		—		27,135		384,667
Total operating expenses	207,989		113,707		83,923		405,619		16,876		38,962		6,054		—		36,061		503,572
Change in fair value of investments	—		—		(1,824)		(1,824)		(292,134)		60,174		(6,004)		—		—		(239,788)
Gain (loss) on settlement of investments, net	—		(665)		(12,412)		(13,077)		(28,356)		29,441		—		—		—		(11,992)
Other income (loss), net	59		1,092		7,384		8,535		(1,686)		(13,626)		(2,207)		—		(629)		(9,613)
Total other income (loss)	59		427		(6,852)		(6,366)		(322,176)		75,989		(8,211)		—		(629)		(261,393)
Impairment	—		—		—		—		(894)		(18,713)		—		—		—		(19,607)
Income (loss) before income taxes	191,235		270,514		104,542		554,784		(234,910)		105,210		11,201		—		(36,690)		399,595
Income tax expense (benefit)	36,386		33,674		12,837		82,897		—		15,303		59		—		—		98,259
Net income (loss)	154,849		236,840		91,705		471,887		(234,910)		89,907		11,142		—		(36,690)		301,336
Noncontrolling interests in income (loss) of consolidated subsidiaries	3,525		—		1,308		4,833		—		—		4,561		—		—		9,394
Dividends on preferred stock	—		—		—		—		—		—		—		—		14,358		14,358
Net income (loss) attributable to common stockholders	$	151,324	$	236,840	$	90,397	$	467,054	$	(234,910)	$	89,907	$	6,581	$	—	$	(51,048)	$	277,584

(A)Includes elimination of intercompany transactions of $11.5 million primarily related to loan sales.

Servicing Segment Revenues

The table below summarizes the components of servicing segment revenues:


	Three Months Ended March 31,
	2022		2021
Base servicing
MSR assets	$	281,110	$	152,478
Residential whole loans	3,389		1,077
Third party	23,653		27,112
	308,152		180,667
Other fees
Ancillary and other fees(A)	40,906		38,886

Change in fair value due to:
Realization of cash flows	(133,276)		(209,269)
Change in valuation inputs and assumptions and other	630,593		356,620
Total servicing fees	$	846,375	$	366,904

Servicing data - unpaid principal balance (“UPB”) (period end) (in millions)
UPB - MSR assets	$	398,730	$	222,235
UPB - Residential whole loans	11,982		7,739
UPB - Third party	86,179		74,613

(A)Includes incentive, boarding and other fees.