Debt and Borrowing Arrangements (Tables)

12 Months Ended

Dec. 31, 2017

The following table summarizes the components of Debt:



	December 31, 2017							December 31, 2016
	Balance			Interest Rate⁽¹⁾		Available Capacity⁽²⁾		Balance
	(In millions)
Committed warehouse facilities	$	169		3.7	%	$	206	$	556
Uncommitted warehouse facilities	51			3.3	%	249		—
Servicing advance facility	32			3.4	%	33		99
Mortgage warehouse and advance facilities	252							655

Term notes due in 2019	97			7.375	%	n/a		275
Term notes due in 2021	22			6.375	%	n/a		340
Unsecured credit facilities	—			—		3		—
Unsecured debt, face value	119							615
Debt issuance costs	(1		)					(8		)
Unsecured debt, net	118							607
Total	$	370						$	1,262

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⁽¹⁾	Interest rate shown represents the stated interest rate of outstanding borrowings, which may differ from the effective rate due to the amortization of premiums, discounts and issuance costs. Warehouse facilities and the Servicing advance facility are variable-rate. Rate shown for Warehouse facilities represents the weighted-average rate of current outstanding borrowings.


⁽²⁾	Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements.

Assets held as collateral that are not available to pay the Company’s general obligations as of December 31, 2017 consisted of:



	Warehouse Facilities		Servicing Advance Facility		Subservicing Advance Liabilities ⁽¹⁾		MSRs Secured Liability ⁽²⁾
	(In millions)
Restricted cash	$	3	$	10	$	—	$	—
Servicing advances	—		56		232		—
Mortgage loans held for sale (unpaid principal balance)	233		—		—		—
Mortgage serving rights	—		—		—		419
Total	$	236	$	66	$	232	$	419

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⁽¹⁾	Under the terms of certain subservicing arrangements, the subservicing counterparty is required to fund servicing advances for their respective portfolios of subserviced loans. A subservicing advance liability is recorded for cash received from the counterparty to fund advances and is repaid to the counterparty upon the collection of the mortgage servicing advance receivables.


⁽²⁾	Represents MSRs that are accounted for as a secured borrowing arrangement. Refer to Note 1, 'Summary of Significant Accounting Policies' for additional information.

The following table provides the contractual debt maturities as of December 31, 2017:

The following table summarizes the components of Net interest expense:



	December 31,
	2017			2016			2015
	(In millions)
Interest income	$	37		$	43		$	44
Secured interest expense	(24		)	(33		)	(35		)
MSRs secured interest expense ⁽¹⁾	(29		)	—			—
Unsecured interest expense	(20		)	(42		)	(55		)
Net interest expense	$	(36	)	$	(32	)	$	(46	)

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⁽¹⁾	MSRs secured interest expense is the implied interest cost on the MSRs secured liability. MSRs secured interest expense fully offsets the estimated yield on capitalized MSRs treated as a secured borrowing arrangement, which is included within Loan servicing income, net.