13. Securitizations and Financings

Variable Interest Entities (VIE)

In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with SPEs determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets.

The Company has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT) and (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as the Company is the primary beneficiary of each of these entities. Also, the Company consolidated four reverse mortgage SPEs as it is the primary beneficiary of each of these entities. These SPEs include the Nationstar HECM Loan Trusts.

A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s consolidated financial statements is presented below.



	Successor				Predecessor
	December 31, 2018				December 31, 2017
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
Assets
Restricted cash	$	70	$	63	$	106	$	26
Reverse mortgage interests, net	—		6,770		—		7,981
Advances and other receivables, net	628		—		896		—
Mortgage loans held for investment	118		—		138		—
Other assets	—		—		2		—
Total assets	$	816	$	6,833	$	1,142	$	8,007

Liabilities
Advance facilities⁽¹⁾	$	505	$	—	$	749	$	—
Payables and accrued liabilities	1		1		2		1
Participating interest financing⁽²⁾	—		5,607		—		7,111
HECM Securitizations (HMBS)
Trust 2016-2	—		—		—		94
Trust 2016-3	—		—		—		138
Trust 2017-1	—		—		—		213
Trust 2017-2	—		231		—		365
Trust 2018-1	—		284		—		—
Trust 2018-2	—		250		—		—
Trust 2018-3	—		326		—		—
Nonrecourse debt–legacy assets	29		—		42		—
Total liabilities	$	535	$	6,699	$	793	$	7,922


⁽¹⁾	Advance facilities include the Nationstar agency advance financing facility and notes payable recorded by the Nationstar Mortgage Advance Receivable Trust, and the Nationstar Agency Advance Receivables Trust. Refer to Notes Payable in Note 11, Indebtedness for additional information.


⁽²⁾	Participating interest financing excludes premiums.

The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company.



	Successor		Predecessor
	December 31, 2018		December 31, 2017
Total collateral balances	$	1,873	$	2,291
Total certificate balances	$	1,817	$	2,129

The Company and Predecessor have not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of December 31, 2018, and 2017, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs.

A summary of mortgage loans transferred by the Company and the Predecessor to unconsolidated securitization trusts that are 60 days or more past due are presented below.



	Successor		Predecessor
Principal Amount of Loans 60 Days or More Past Due	December 31, 2018		December 31, 2017
Unconsolidated securitization trusts	$	285	$	448