Debt and Borrowing Arrangements (Tables)

6 Months Ended

Jun. 30, 2018

The following table summarizes the components of Debt:



	June 30, 2018							December 31, 2017
	Balance			Interest Rate⁽¹⁾		Available Capacity⁽²⁾		Balance
	(In millions)
Committed warehouse facilities	$	36		4.3	%	$	63	$	67
Uncommitted warehouse facilities	3			—		222		18
Servicing advance facility	20			3.8	%	5		32
Mortgage warehouse and advance facilities	59							117

Term notes due in 2019	97			7.375	%	n/a		97
Term notes due in 2021	22			6.375	%	n/a		22
Unsecured credit facilities	—			—		3		—
Unsecured debt, face value	119							119
Debt issuance costs	(1		)					(1		)
Unsecured debt, net	118							118
Total	$	177						$	235

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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. Available capacity has been reduced by amounts that have been drawn related to discontinued operations, as detailed in Note 8, 'Discontinued Operations'.

Assets held as collateral that are not available to pay the Company’s general obligations as of June 30, 2018 consisted of:



	Warehouse Facilities		Servicing Advance Facility		Subservicing Advance Liabilities ⁽¹⁾		MSRs Secured Liability ⁽²⁾
	(In millions)
Restricted cash	$	—	$	10	$	—	$	—
Servicing advances	—		46		194		—
Mortgage loans held for sale (unpaid principal balance)	40		—		—		—
Mortgage servicing rights	—		—		—		437
Total	$	40	$	56	$	194	$	437

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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.

The following table provides the contractual debt maturities as of June 30, 2018:

The following table summarizes the components of Net interest expense:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(In millions)
Interest income	$	4		$	7		$	7		$	13
Secured interest expense	(2		)	(3		)	(4		)	(7		)
MSRs secured interest expense ⁽¹⁾	(13		)	(1		)	(27		)	(1		)
Unsecured interest expense	—			(9		)	(1		)	(19		)
Net interest expense	$	(11	)	$	(6	)	$	(25	)	$	(14	)

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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.