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Business Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
Financial information for our segments is as follows:
Results of Operations
 
Servicing
 
Lending
 
Corporate Items and Other
 
Corporate Eliminations
 
Business Segments Consolidated
Year Ended December 31, 2019
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
985,102

 
$
125,086

 
$
13,187

 
$
—

 
$
1,123,375

 
 
 
 
 
 
 
 
 
 
 
MSR valuation adjustments, net
 
(120,646
)
 
(230
)
 
—

 
—

 
(120,876
)
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (1) (2)
 
536,153

 
84,280

 
53,506

 
—

 
673,939

 
 
 
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
Interest income
 
8,051

 
7,277

 
1,776

 
—

 
17,104

Interest expense
 
(47,347
)
 
(7,911
)
 
(58,871
)
 
—

 
(114,129
)
Pledged MSR liability expense
 
(372,172
)
 
—

 
83

 
—

 
(372,089
)
Gain on repurchase of senior secured notes
 
—

 
—

 
5,099

 
—

 
5,099

Bargain purchase gain
 
—

 
—

 
(381
)
 


 
(381
)
Gain on sale of MSRs, net
 
453

 
—

 
—

 
—

 
453

Other, net
 
11,942

 
791

 
(3,841
)
 
—

 
8,892

Other income (expense), net
 
(399,073
)
 
157

 
(56,135
)
 
—

 
(455,051
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(70,770
)
 
$
40,733

 
$
(96,454
)
 
$
—

 
$
(126,491
)
 
 
 
 
 
 
 
 
 
 
 
Results of Operations
 
Servicing
 
Lending
 
Corporate Items and Other
 
Corporate Eliminations
 
Business Segments Consolidated
Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
951,224

 
$
93,672

 
$
18,149

 
$
—

 
$
1,063,045

 
 
 
 
 
 
 
 
 
 
 
MSR valuation adjustments, net
 
(152,983
)
 
(474
)
 
—

 
—

 
(153,457
)
 
 
 
 
 
 
 
 
 
 
 
Operating expenses (1)
 
619,484

 
82,432

 
77,123

 
—

 
779,039

 
 
 
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
Interest income
 
5,383

 
6,061

 
2,582

 
—

 
14,026

Interest expense
 
(41,830
)
 
(7,311
)
 
(54,230
)
 
—

 
(103,371
)
Pledged MSR liability expense
 
(172,342
)
 
672

 
—

 
—

 
(171,670
)
Bargain purchase gain
 
—

 
—

 
64,036

 
—

 
64,036

Gain on sale of mortgage servicing rights, net
 
1,325

 
—

 
—

 
—

 
1,325

Other, net
 
(3,241
)
 
966

 
(4,096
)
 
—

 
(6,371
)
Other income (expense), net
 
(210,705
)
 
388

 
8,292

 
—

 
(202,025
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations before income taxes
 
$
(31,948
)
 
$
11,154

 
$
(50,682
)
 
$
—

 
$
(71,476
)
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
1,041,290

 
$
127,475

 
$
25,811

 
$
—

 
$
1,194,576

 
 
 
 
 
 
 
 
 
 
 
MSR valuation adjustments, net
 
(52,689
)
 
(273
)
 
—

 
—

 
(52,962
)
 
 
 
 
 
 
 
 
 
 
 
Operating expenses
 
663,695

 
127,785

 
154,203

 
—

 
945,683

 
 
 
 
 
 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
 
 
 
 
 
Interest income
 
783

 
10,914

 
4,268

 
—

 
15,965

Interest expense
 
(57,284
)
 
(13,893
)
 
(55,750
)
 
—

 
(126,927
)
Pledged MSR liability expense
 
(236,311
)
 
—

 
—

 
—

 
(236,311
)
Gain on sale of MSRs
 
10,537

 
—

 
—

 
—

 
10,537

Other, net
 
4,049

 
(869
)
 
(6,348
)
 
—

 
(3,168
)
Other expense, net
 
(278,226
)
 
(3,848
)
 
(57,830
)
 
—

 
(339,904
)
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
46,680

 
$
(4,431
)
 
$
(186,222
)
 
$
—

 
$
(143,973
)
(1)
Compensation and benefits expense in the Corporate Items and Other segment for 2019 and 2018 includes $20.3 million and $11.9 million, respectively, of severance expense attributable to PHH integration-related headcount reductions of primarily U.S.-based employees in 2019 and severance expense attributable to headcount reductions in connection with our strategic decisions to exit the automotive capital services business and the forward lending correspondent and wholesale channels in late 2017 and early 2018, as well as our overall efforts to reduce costs.
(2)
Included in the Corporate Items and Other segment for 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of amounts previously recognized as expense.
Total Assets
 
Servicing
 
Lending
 
Corporate Items and Other
 
Corporate Eliminations
 
Business Segments Consolidated
December 31, 2019
 
$
3,378,515

 
$
6,459,367

 
$
568,317

 
$
—

 
$
10,406,199

 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
 
3,306,208

 
5,603,481

 
484,527

 
—

 
9,394,216

 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
3,033,243

 
4,945,456

 
424,465

 
—

 
8,403,164



Depreciation and Amortization Expense
 
Servicing
 
Lending
 
Corporate Items and Other
 
Business Segments Consolidated
Year Ended December 31, 2019:
 
 

 
 

 
 

 
 

Depreciation expense
 
$
1,925

 
$
93

 
$
29,893

 
$
31,911

Amortization of debt discount
 
—

 
—

 
1,342

 
1,342

Amortization of debt issuance costs
 
71

 
—

 
3,099

 
3,170

 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018:
 
 

 
 

 
 

 
 

Depreciation expense
 
$
4,601

 
$
103

 
$
22,498

 
$
27,202

Amortization of debt discount
 
—

 
—

 
1,183

 
1,183

Amortization of debt issuance costs
 
—

 
—

 
2,921

 
2,921

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017:
 
 

 
 

 
 

 
 

Depreciation expense
 
$
5,797

 
$
194

 
$
20,895

 
$
26,886

Amortization of mortgage servicing rights
 
51,515

 
273

 
—

 
51,788

Amortization of debt discount
 
—

 
—

 
1,114

 
1,114

Amortization of debt issuance costs
 
—

 
—

 
2,738

 
2,738