Guarantor Financial Statement Information (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2018

	Successor
	Mr. Cooper		Issuer⁽¹⁾		Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	193	$	1	$	48		$	—		$	242
Restricted cash	—		186		—		133			—			319
Mortgage servicing rights	—		3,644		—		32			—			3,676
Advances and other receivables, net	—		1,194		—		—			—			1,194
Reverse mortgage interests, net	—		6,770		—		1,164			—			7,934
Mortgage loans held for sale at fair value	—		1,631		—		—			—			1,631
Mortgage loans held for investment at fair value	—		1		—		118			—			119
Property and equipment, net	—		84		—		12			—			96
Deferred tax asset, net	973		—		—		(6		)	—			967
Other assets	—		660		202		621			(688		)	795
Investment in subsidiaries	2,820		601		—		—			(3,421		)	—
Total assets	$	3,793	$	14,964	$	203	$	2,122		$	(4,109	)	$	16,973

Liabilities and Stockholders’ Equity
Unsecured senior notes, net	$	1,660	$	799	$	—	$	—		$	—		$	2,459
Advance facilities, net	—		90		—		505			—			595
Warehouse facilities, net	—		2,349		—		—			—			2,349
Payables and accrued liabilities	49		1,413		1		80			—			1,543
MSR related liabilities - nonrecourse at fair value	—		1,197		—		19			—			1,216
Mortgage servicing liabilities	—		71		—		—			—			71
Other nonrecourse debt, net	—		5,676		—		1,119			—			6,795
Payables to affiliates	139		549		—		—			(688		)	—
Total liabilities	1,848		12,144		1		1,723			(688		)	15,028
Total stockholders’ equity	1,945		2,820		202		399			(3,421		)	1,945
Total liabilities and stockholders’ equity	$	3,793	$	14,964	$	203	$	2,122		$	(4,109	)	$	16,973


⁽¹⁾	Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2019

	Successor
	Mr. Cooper		Issuer⁽¹⁾		Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	151	$	1	$	29	$	—		$	181
Restricted cash	—		191		—		148		—			339
Mortgage servicing rights	—		3,460		—		28		—			3,488
Advances and other receivables, net	—		1,147		—		—		—			1,147
Reverse mortgage interests, net	—		6,427		—		1,062		—			7,489
Mortgage loans held for sale at fair value	—		2,170		—		—		—			2,170
Mortgage loans held for investment at fair value	—		1		—		117		—			118
Property and equipment, net	—		99		—		13		—			112
Deferred tax asset, net	984		38		—		2		—			1,024
Other assets	—		1,435		204		601		(662		)	1,578
Investment in subsidiaries	2,602		609		—		—		(3,211		)	—
Total assets	$	3,586	$	15,728	$	205	$	2,000	$	(3,873	)	$	17,646

Liabilities and Stockholders’ Equity
Unsecured senior notes, net	$	1,662	$	799	$	—	$	—	$	—		$	2,461
Advance facilities, net	—		89		—		489		—			578
Warehouse facilities, net	—		3,050		—		—		—			3,050
Payables and accrued liabilities	22		1,870		2		81		—			1,975
MSR related liabilities - nonrecourse at fair value	—		1,326		—		17		—			1,343
Mortgage servicing liabilities	—		90		—		—		—			90
Other nonrecourse debt, net	—		5,381		—		1,007		—			6,388
Payables to affiliates	141		521		—		—		(662		)	—
Total liabilities	1,825		13,126		2		1,594		(662		)	15,885
Total stockholders’ equity	1,761		2,602		203		406		(3,211		)	1,761
Total liabilities and stockholders’ equity	$	3,586	$	15,728	$	205	$	2,000	$	(3,873	)	$	17,646


⁽¹⁾	Issuer balances exclude the balances of its guarantor and non-guarantor subsidiaries, as previously described.

Consolidating Statement of Operations

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2018

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	390		$	6	$	68		$	—		$	464
Net gain on mortgage loans held for sale	—		124			—		—			—			124
Total Revenues	—		514			6		68			—			588
Expenses:
Salaries, wages and benefits	—		152			1		27			—			180
General and administrative	—		156			1		27			—			184
Total expenses	—		308			2		54			—			364
Other income (expenses):
Interest income	—		131			—		14			—			145
Interest expense	—		(162		)	—		(9		)	—			(171		)
Other expense	—		(1		)	—		9			—			8
Gain (loss) from subsidiaries	160		32			—		—			(192		)	—
Total other income (expenses), net	160		—			—		14			(192		)	(18		)
Income (loss) before income tax expense (benefit)	160		206			4		28			(192		)	206
Less: Income tax expense	—		46			—		—			—			46
Net income (loss)	160		160			4		28			(192		)	160
Less: net income attributable to non-controlling interests	—		—			—		—			—			—
Net income (loss) attributable to Nationstar	$	160	$	160		$	4	$	28		$	(192	)	$	160


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2019

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Revenues:
Service related, net	$	—		$	(19	)	$	6	$	97		$	—	$	84
Net gain on mortgage loans held for sale	—			166			—		—			—		166
Total revenues	—			147			6		97			—		250
Expenses:
Salaries, wages benefits	—			174			1		40			—		215
General and administrative	—			165			1		62			—		228
Total expenses	—			339			2		102			—		443
Other income (expenses):
Interest income	—			118			—		16			—		134
Interest expense	(38		)	(134		)	—		(17		)	—		(189		)
Other income (expenses)	—			4			—		11			—		15
Gain (loss) from subsidiaries	(148		)	9			—		—			139		—
Total other income (expenses), net	(186		)	(3		)	—		10			139		(40		)
(Loss) income before income tax expense (benefit)	(186		)	(195		)	4		5			139		(233		)
Less: Income tax (benefit) expense	—			(47		)	—		—			—		(47		)
Net (loss) income	(186		)	(148		)	4		5			139		(186		)
Less: Net (loss) income attributable to non-controlling interests	—			—			—		—			—		—
Net (loss) income attributable to Mr. Cooper	$	(186	)	$	(148	)	$	4	$	5		$	139	$	(186	)


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

Consolidating Statement of Cash Flows

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income (loss) attributable to Nationstar	$	160		$	160		$	4		$	28		$	(192	)	$	160
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
Deferred income tax expense	—			30			—			—			—			30
(Gain) loss from subsidiaries	(160		)	(32		)	—			—			192			—
Net gain on mortgage loans held for sale	—			(124		)	—			—			—			(124		)
Reverse mortgage loan interest income	—			(119		)	—			—			—			(119		)
(Gain) loss on sale of assets	—			—			—			(9		)	—			(9		)
Provision for servicing reserves	—			38			—			—			—			38
Fair value changes and amortization of mortgage servicing rights	—			(178		)	—			—			—			(178		)
Fair value changes in excess spread financing	—			49			—			1			—			50
Fair value changes in mortgage servicing rights financing liability	—			24			—			—			—			24
Amortization of premiums, net of discount accretion	—			4			—			(1		)	—			3
Depreciation and amortization for property and equipment and intangible assets	—			12			—			3			—			15
Share-based compensation	—			3			—			1			—			4
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(251		)	—			—			—			(251		)
Mortgage loans originated and purchased for sale, net of fees	—			(5,096		)	—			—			—			(5,096		)
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			5,709			—			4			—			5,713
Changes in assets and liabilities:
Advances and other receivables	—			270			—			—			—			270
Reverse mortgage interests	—			443			—			(61		)	—			382
Other assets	4			(146		)	(5		)	201			—			54
Payables and accrued liabilities	—			(27		)	1			(3		)	—			(29		)
Net cash attributable to operating activities	4			769			—			164			—			937


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2018 (Continued)

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Property and equipment additions, net of disposals	—			(14		)	—		(2		)	—		(16		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(11		)	—		(6		)	—		(17		)
Net proceeds from acquisition of reverse mortgage servicing portfolio and HECM related receivables	—			(1		)	—		—			—		(1		)
Proceeds on sale of assets	—			—			—		13			—		13
Net cash attributable to investing activities	—			(26		)	—		5			—		(21		)
Financing Activities
Increase in warehouse facilities	—			(125		)	—		—			—		(125		)
Decrease in advance facilities	—			(16		)	—		(277		)	—		(293		)
Proceeds from issuance of HECM securitizations	—			—			—		443			—		443
Repayment of HECM securitizations	—			—			—		(317		)	—		(317		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			90			—		—			—		90
Repayment of participating interest financing in reverse mortgage interests	—			(664		)	—		—			—		(664		)
Settlement of excess spread financing	—			(45		)	—		—			—		(45		)
Repayment of nonrecourse debt - legacy assets	—			—			—		(3		)	—		(3		)
Repurchase of unsecured senior notes	—			(16		)	—		—			—		(16		)
Surrender of shares relating to stock vesting	(4		)	—			—		—			—		(4		)
Debt financing costs	—			(5		)	—		—			—		(5		)
Net cash attributable to financing activities	(4		)	(781		)	—		(154		)	—		(939		)
Net increase (decrease) in cash, cash equivalents, and restricted cash	—			(38		)	—		15			—		(23		)
Cash, cash equivalents, and restricted cash - beginning of period	—			423			1		151			—		575
Cash, cash equivalents, and restricted cash - end of period	$	—		$	385		$	1	$	166		$	—	$	552


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD MARCH 31, 2019

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net (loss) income attributable to Mr. Cooper	$	(186	)	$	(148	)	$	4		$	5		$	139		$	(186	)
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
Deferred tax benefit	(21		)	(26		)	—			—			—			(47		)
(Gain) loss from subsidiaries	148			(9		)	—			—			(139		)	—
Net gain on mortgage loans held for sale	—			(166		)	—			—			—			(166		)
Interest income on reverse mortgage loan	—			(82		)	—			—			—			(82		)
Provision for servicing reserves	—			11			—			—			—			11
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			375			—			4			—			379
Fair value changes in excess spread financing	—			(67		)	—			(2		)	—			(69		)
Fair value changes in mortgage servicing rights financing liability	—			2			—			—			—			2
Fair value changes in mortgage loans held for investment	—			—			—			(1		)	—			(1		)
Amortization of premiums, net of discount accretion	2			—			—			—			—			2
Depreciation and amortization for property and equipment and intangible assets	—			17			—			4			—			21
Share-based compensation	—			3			—			1			—			4
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(364		)	—			—			—			(364		)
Mortgage loans originated and purchased for sale, net of fees	—			(5,717		)	—			—			—			(5,717		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			6,195			—			2			—			6,197
Changes in assets and liabilities:
Advances and other receivables	—			120			—			—			—			120
Reverse mortgage interests	—			514			—			100			—			614
Other assets	—			(229		)	(5		)	18			—			(216		)
Payables and accrued liabilities	57			(268		)	1			(7		)	—			(217		)
Net cash attributable to operating activities	—			161			—			124			—			285


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE PERIOD MARCH 31, 2019 (Continued)

	Successor
	Mr. Cooper		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Investing Activities
Acquisition, net of cash acquired	—		(85		)	—		—			—		(85		)
Property and equipment additions, net of disposals	—		(8		)	—		(2		)	—		(10		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—		(130		)	—		—			—		(130		)
Proceeds on sale of forward and reverse mortgage servicing rights	—		243			—		—			—		243
Net cash attributable to investing activities	—		20			—		(2		)	—		18
Financing Activities
Increase (decrease) in warehouse facilities	—		307			—		—			—		307
Decrease in advance facilities	—		(14		)	—		(16		)	—		(30		)
Repayment of notes payable	—		(294		)	—		—			—		(294		)
Proceeds from sale of HECM securitizations	—		—			—		20			—		20
Repayment of HECM securitizations	—		—			—		(127		)	—		(127		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—		86			—		—			—		86
Repayment of participating interest financing in reverse mortgage interests	—		(494		)	—		—			—		(494		)
Proceeds from issuance of excess spread financing	—		245			—		—			—		245
Settlement of excess spread financing	—		(50		)	—		—			—		(50		)
Repayment of nonrecourse debt - legacy assets	—		—			—		(3		)	—		(3		)
Repayment of finance lease liability	—		(1		)	—		—			—		(1		)
Surrender of shares relating to stock vesting	—		(2		)	—		—			—		(2		)
Debt financing costs	—		(1		)	—		—			—		(1		)
Net cash attributable to financing activities	—		(218		)	—		(126		)	—		(344		)
Net decrease in cash, cash equivalents, and restricted cash	—		(37		)	—		(4		)	—		(41		)
Cash, cash equivalents, and restricted cash - beginning of period	—		379			1		181			—		561
Cash, cash equivalents, and restricted cash - end of period	$	—	$	342		$	1	$	177		$	—	$	520


⁽¹⁾	Issuer activities exclude the activities of its guarantor and non-guarantor subsidiaries, as previously described.