XML 71 R47.htm IDEA: XBRL DOCUMENT v3.19.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2018
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis.
 
Successor
 
December 31, 2018
 
Total Fair Value
 
Recurring Fair Value Measurements
 
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,630.8

 
$
—

 
$
1,630.8

 
$
—

Mortgage loans held for investment(1)
119.1

 
—

 
—

 
119.1

Forward mortgage servicing rights(1)
3,665.4

 
—

 
—

 
3,665.4

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
47.6

 
—

 
47.6

 
—

Forward MBS trades
0.1

 
—

 
0.1

 
—

LPCs
1.7

 
—

 
1.7

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Total assets
$
5,464.7

 
$
—

 
$
1,680.2

 
$
3,784.5

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
Forward MBS trades
$
19.3

 
$
—

 
$
19.3

 
$
—

LPCs
0.4

 
—

 
0.4

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Mortgage servicing rights financing
31.7

 
—

 
—

 
31.7

Excess spread financing
1,184.4

 
—

 
—

 
1,184.4

Total liabilities
$
1,235.8

 
$
—

 
$
19.7

 
$
1,216.1


(1) 
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
(2) 
Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates.

 
Predecessor
 
December 31, 2017
 
Total Fair Value
 
Recurring Fair Value Measurements
 
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,890.8

 
$
—

 
$
1,890.8

 
$
—

Forward mortgage servicing rights(1)
2,937.4

 
—

 
—

 
2,937.4

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
59.3

 
—

 
59.3

 
—

Forward MBS trades
2.4

 
—

 
2.4

 
—

LPCs
0.9

 
—

 
0.9

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Treasury futures
1.9

 
—

 
1.9

 
—

Total assets
$
4,892.7

 
$
—

 
$
1,955.3

 
$
2,937.4

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
Forward MBS trades
$
2.8

 
$
—

 
$
2.8

 
$
—

LPCs
0.6

 
—

 
0.6

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Treasury futures
1.4

 
—

 
1.4

 
—

Mortgage servicing rights financing
9.5

 
—

 
—

 
9.5

Excess spread financing
996.5

 
—

 
—

 
996.5

Total liabilities
$
1,010.8

 
$
—

 
$
4.8

 
$
1,006.0



(1) 
Based on the nature and risks of the underlying assets and liabilities, the fair value is presented for the aggregate account.
(2) 
Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The table below presents a reconciliation for all of the Company and Predecessor’s Level 3 assets and liabilities measured at fair value on a recurring basis.
 
Successor
 
Assets
 
Liabilities
For the Period August 1 - December 31, 2018
Forward mortgage
servicing rights
 
Mortgage loans held for investment
 
Excess spread
financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
3,413

 
$
125

 
$
1,039

 
$
26

Total gains or losses included in earnings
(236
)
 
(3
)
 
5

 
6

Payments received from borrowers
—

 
(5
)
 
—

 
—

Purchases, issuances, sales and settlements
 
 
 
 
 
 
 
Purchases
479

 
—

 
—

 
—

Issuances
120

 
—

 
255

 
—

Sales
(111
)
 
—

 
—

 
—

Repayments
—

 
—

 
(38
)
 
—

Settlements
—

 
—

 
(77
)
 
—

Changes in fair value
—

 
2

 
—

 
—

Balance - end of period
$
3,665

 
$
119

 
$
1,184

 
$
32


 
Predecessor
 
Assets
 
Liabilities
For the Period January 1 - July 31, 2018
Forward mortgage servicing rights
 
Excess spread financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
2,937

 
$
996

 
$
10

Total gains or losses included in earnings
166

 
81

 
16

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
Purchases
144

 
—

 
—

Issuances
162

 
70

 
—

Sales
4

 
—

 
—

Repayments
—

 
(3
)
 
 
Settlements
—

 
(105
)
 
—

Balance - end of period
$
3,413

 
$
1,039

 
$
26


 
Predecessor
 
Assets
 
Liabilities
Year ended December 31, 2017
Forward mortgage
servicing rights
 
Excess spread
financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
3,160

 
$
1,214

 
$
27

Total gains or losses included in earnings
(432
)
 
12

 
(17
)
Purchases, issuances, sales and settlements
 
 
 
 
 
Purchases
66

 
—

 
—

Issuances
203

 
—

 
—

Sales
(60
)
 
—

 
—

Repayments
—

 
(23
)
 
—

Settlements
—

 
(207
)
 
—

Balance - end of period
$
2,937

 
$
996

 
$
10
Fair Value, by Balance Sheet Grouping
The tables below present a summary of the estimated carrying amount and fair value of the Company and Predecessor’s financial instruments.
 
Successor
 
December 31, 2018
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
242

 
$
242

 
$
—

 
$
—

Restricted cash
319

 
319

 
—

 
—

Advances and other receivables, net
1,194

 
—

 
—

 
1,194

Reverse mortgage interests, net
7,934

 
—

 
—

 
7,942

Mortgage loans held for sale
1,631

 
—

 
1,631

 
—

Mortgage loans held for investment
119

 
—

 
—

 
119

Derivative financial instruments
49

 
—

 
49

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
2,459

 
2,451

 
—

 
—

Advance facilities
595

 
—

 
595

 
—

Warehouse facilities
2,349

 
—

 
2,349

 
—

Mortgage servicing rights financing liability
32

 
—

 
—

 
32

Excess spread financing
1,184

 
—

 
—

 
1,184

Derivative financial instruments
20

 
—

 
20

 
—

Participating interest financing
5,675

 
—

 
—

 
5,672

HECM Securitization (HMBS)
 
 
 
 
 
 
 
Trust 2017-2
231

 
—

 
—

 
230

Trust 2018-1
284

 
—

 
—

 
284

Trust 2018-2
250

 
—

 
—

 
249

Trust 2018-3
326

 
—

 
—

 
326

Nonrecourse debt - legacy assets
29

 
—

 
—

 
28


 
Predecessor
 
December 31, 2017
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
215

 
$
215

 
$
—

 
$
—

Restricted cash
360

 
360

 
—

 
—

Advances and other receivables, net
1,706

 
—

 
—

 
1,706

Reverse mortgage interests, net
9,984

 
—

 
—

 
10,164

Mortgage loans held for sale
1,891

 
—

 
1,891

 
—

Mortgage loans held for investment, net
139

 
—

 
—

 
139

Derivative financial instruments
65

 
—

 
65

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
1,874

 
1,912

 
—

 
—

Advance facilities
855

 
—

 
855

 
—

Warehouse facilities
3,285

 
—

 
3,286

 
—

Mortgage servicing rights financing liability
10

 
—

 
—

 
10

Excess spread financing
996

 
—

 
—

 
996

Derivative financial instruments
5

 
—

 
5

 
—

Participating interest financing
7,167

 
—

 
7,353

 
—

HECM Securitization (HMBS)
 
 
 
 
 
 
 
Trust 2016-2
94

 
—

 
—

 
112

Trust 2016-3
138

 
—

 
—

 
155

Trust 2017-1
213

 
—

 
—

 
225

Trust 2017-2
365

 
—

 
—

 
371

Nonrecourse debt - legacy assets
37

 
—

 
—

 
36