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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2019
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
 
June 30, 2019
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
3,421.6

 
$
—

 
$
3,421.6

 
$
—

Mortgage loans held for investment(1)
114.3

 
—

 
—

 
114.3

Mortgage servicing rights(1)
3,504.5

 
—

 
—

 
3,504.5

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
110.2

 
—

 
110.2

 
—

Forward MBS trades
1.1

 
—

 
1.1

 
—

LPCs
16.5

 
—

 
16.5

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Total assets
$
7,168.2

 
$
—

 
$
3,549.4

 
$
3,618.8

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs(2)
$
—

 
$
—

 
$
—

 
$
—

Forward MBS trades
30.3

 
—

 
30.3

 
—

LPCs
1.3

 
—

 
1.3

 
—

Eurodollar futures(2)
—

 
—

 
—

 
—

Mortgage servicing rights financing
42.6

 
—

 
—

 
42.6

Excess spread financing
1,429.4

 
—

 
—

 
1,429.4

Total liabilities
$
1,503.6

 
$
—

 
$
31.6

 
$
1,472.0


(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.

 
Successor
 
December 31, 2018
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
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.
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
Six Months Ended June 30, 2019
Mortgage servicing rights
 
Mortgage loans held for investment
 
Excess spread financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
3,665

 
$
119

 
$
1,184

 
$
32

Total gains or losses included in earnings
(724
)
 
3

 
(74
)
 
11

Payments received from borrowers
—

 
(8
)
 
—

 
—

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
 
 
Purchases
689

 
—

 
—

 
—

Issuances
169

 
—

 
438

 
—

Sales
(294
)
 
—

 
—

 
—

Repayments
—

 
—

 
(12
)
 
—

Settlements
—

 
—

 
(107
)
 
—

Balance - end of period
$
3,505

 
$
114

 
$
1,429

 
$
43

 
Predecessor
 
Assets
 
Liabilities
Six Months Ended June 30, 2018
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
144

 
74

 
6

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
Purchases
132

 
—

 
—

Issuances
139

 
70

 
—

Sales
4

 
—

 
—

Repayments
—

 
(2
)
 
—

Settlements
—

 
(91
)
 
—

Balance - end of period
$
3,356

 
$
1,047

 
$
16
Fair Value, by Balance Sheet Grouping
The table below presents a summary of the estimated carrying amount and fair value of the Company’s financial instruments.
 
Successor
 
June 30, 2019
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
245

 
$
245

 
$
—

 
$
—

Restricted cash
304

 
304

 
—

 
—

Advances and other receivables, net
1,000

 
—

 
—

 
1,000

Reverse mortgage interests, net
7,110

 
—

 
—

 
7,176

Mortgage loans held for sale
3,422

 
—

 
3,422

 
—

Mortgage loans held for investment, net
114

 
—

 
—

 
114

Derivative financial instruments
128

 
—

 
128

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
2,462

 
2,529

 
—

 
—

Advance facilities
567

 
—

 
567

 
—

Warehouse facilities
4,045

 
—

 
4,045

 
—

Mortgage servicing rights financing liability
43

 
—

 
—

 
43

Excess spread financing
1,429

 
—

 
—

 
1,429

Derivative financial instruments
32

 
—

 
32

 
—

Participating interest financing
4,887

 
—

 
—

 
4,886

HECM Securitization (HMBS)
 
 
 
 
 
 
 
Trust 2018-1
224

 
—

 
—

 
224

Trust 2018-2
182

 
—

 
—

 
182

Trust 2018-3
272

 
—

 
—

 
272

Trust 2019-1
398

 
—

 
—

 
398

Nonrecourse debt - legacy assets
22

 
—

 
—

 
22



 
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, net
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