Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2017

Assets and liabilities of significant variable interest entities are included in the Consolidated Balance Sheets as follows:



	December 31, 2017				December 31, 2016
	PHH Home Loans		Servicing Advance Receivables Trust		PHH Home Loans		Servicing Advance Receivables Trust
	(In millions)
ASSETS
Cash	$	33	$	—	$	67	$	—
Restricted cash	3		10		5		19
Mortgage loans held for sale	60		—		350		—
Accounts receivable, net	1		—		9		—
Servicing advances, net	—		56		—		150
Property and equipment, net	—		—		1		—
Other assets	1		—		11		1
Total assets	$	98	$	66	$	443	$	170
Assets held as collateral ⁽¹⁾	$	43	$	66	$	320	$	169

LIABILITIES
Accounts payable and accrued expenses	$	6	$	—	$	11	$	—
Mortgage warehouse and advance facilities	40		32		300		99
Other liabilities	5		—		5		—
Total liabilities ⁽²⁾	$	51	$	32	$	316	$	99

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⁽¹⁾	Represents amounts not available to pay the Company’s general obligations. See Note 10, 'Debt and Borrowing Arrangements' for further information.


⁽²⁾	Excludes intercompany payables.

In addition to the assets and liabilities of significant variable interest entities that were consolidated as outlined above, the Company had the following involvement with these entities as of and for the years ended December 31:



	Net income (loss)⁽¹⁾
	2017			2016			2015
	(In millions)
PHH Home Loans	$	47		$	16		$	28
Servicing Advance Receivables Trust	(3		)	(4		)	(5		)



	PHH Corporation Investment⁽²⁾				Intercompany receivable⁽²⁾
	2017		2016		2017		2016
	(In millions)
PHH Home Loans	$	32	$	57	$	6	$	13
Servicing Advance Receivables Trust	51		83		—		—

_________________


⁽¹⁾	Includes adjustments for the elimination of intercompany transactions.


⁽²⁾	Amounts are eliminated in the Consolidated Balance Sheets.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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