Guarantor Financial Statement Information (Tables)

6 Months Ended

Jun. 30, 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 other 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 JUNE 30, 2019

	Successor
	Mr. Cooper		Issuer⁽¹⁾		Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	215	$	1	$	29	$	—		$	245
Restricted cash	—		204		—		100		—			304
Mortgage servicing rights	—		3,484		—		27		—			3,511
Advances and other receivables, net	—		1,000		—		—		—			1,000
Reverse mortgage interests, net	—		6,003		—		1,107		—			7,110
Mortgage loans held for sale at fair value	—		3,422		—		—		—			3,422
Mortgage loans held for investment at fair value	—		2		—		112		—			114
Property and equipment, net	—		99		—		16		—			115
Deferred tax asset, net	984		69		—		2		—			1,055
Other assets	—		1,399		208		661		(739		)	1,529
Investment in subsidiaries	2,557		612		—		—		(3,169		)	—
Total assets	$	3,541	$	16,509	$	209	$	2,054	$	(3,908	)	$	18,405

Liabilities and Stockholders’ Equity
Unsecured senior notes, net	$	1,663	$	799	$	—	$	—	$	—		$	2,462
Advance facilities, net	—		89		—		478		—			567
Warehouse facilities, net	—		4,045		—		—		—			4,045
Payables and other liabilities	59		1,999		2		56		—			2,116
MSR related liabilities - nonrecourse at fair value	—		1,456		—		16		—			1,472
Mortgage servicing liabilities	—		80		—		—		—			80
Other nonrecourse debt, net	—		4,890		—		1,095		—			5,985
Payables to affiliates	141		594		—		4		(739		)	—
Total liabilities	1,863		13,952		2		1,649		(739		)	16,727
Total stockholders’ equity	1,678		2,557		207		405		(3,169		)	1,678
Total liabilities and stockholders’ equity	$	3,541	$	16,509	$	209	$	2,054	$	(3,908	)	$	18,405


⁽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 JUNE 30, 2018

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	247		$	7	$	63		$	—		$	317
Net gain on mortgage loans held for sale	—		127			—		—			—			127
Total Revenues	—		374			7		63			—			444
Expenses:
Salaries, wages and benefits	—		149			1		27			—			177
General and administrative	—		134			—		28			—			162
Total expenses	—		283			1		55			—			339
Other income (expenses):
Interest income	—		127			—		13			—			140
Interest expense	—		(153		)	—		(11		)	—			(164		)
Other expense	—		(3		)	—		1			—			(2		)
Gain (loss) from subsidiaries	58		18			—		—			(76		)	—
Total other income (expenses), net	58		(11		)	—		3			(76		)	(26		)
Income (loss) before income tax expense (benefit)	58		80			6		11			(76		)	79
Less: Income tax expense (benefit)	—		22			—		(1		)	—			21
Net income (loss)	58		58			6		12			(76		)	58
Less: Net income (loss) attributable to non-controlling interests	—		—			—		—			—			—
Net income (loss) attributable to Nationstar	$	58	$	58		$	6	$	12		$	(76	)	$	58


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

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2018

	Predecessor
	Nationstar		Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Revenues:
Service related, net	$	—	$	637		$	13	$	131		$	—		$	781
Net gain on mortgage loans held for sale	—		251			—		—			—			251
Total Revenues	—		888			13		131			—			1,032
Expenses:
Salaries, wages and benefits	—		301			2		54			—			357
General and administrative	—		290			1		55			—			346
Total expenses	—		591			3		109			—			703
Other income (expenses):
Interest income	—		258			—		27			—			285
Interest expense	—		(315		)	—		(20		)	—			(335		)
Other expense	—		(4		)	—		10			—			6
Gain (loss) from subsidiaries	218		50			—		—			(268		)	—
Total other income (expenses), net	218		(11		)	—		17			(268		)	(44		)
Income (loss) before income tax expense (benefit)	218		286			10		39			(268		)	285
Less: Income tax expense (benefit)	—		68			—		(1		)	—			67
Net income (loss)	218		218			10		40			(268		)	218
Less: Net income (loss) attributable to non-controlling interests	—		—			—		—			—			—
Net income (loss) attributable to Nationstar	$	218	$	218		$	10	$	40		$	(268	)	$	218


⁽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 JUNE 30, 2019

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Revenues:
Service related, net	$	—		$	21		$	5	$	111		$	—	$	137
Net gain on mortgage loans held for sale	—			262			—		—			—		262
Total revenues	—			283			5		111			—		399
Expenses:
Salaries, wages benefits	—			198			1		39			—		238
General and administrative	—			179			1		74			—		254
Total expenses	—			377			2		113			—		492
Other income (expenses):
Interest income	—			147			—		15			—		162
Interest expense	(39		)	(134		)	—		(14		)	—		(187		)
Other income (expenses)	—			1			—		—			—		1
(Loss) gain from subsidiaries	(48		)	2			—		—			46		—
Total other income (expenses), net	(87		)	16			—		1			46		(24		)
(Loss) income before income tax benefit	(87		)	(78		)	3		(1		)	46		(117		)
Less: Income tax benefit	—			(29		)	—		—			—		(29		)
Net (loss) income	(87		)	(49		)	3		(1		)	46		(88		)
Less: Net loss attributable to non-controlling interests	—			(1		)	—		—			—		(1		)
Net (loss) income attributable to Mr. Cooper	$	(87	)	$	(48	)	$	3	$	(1	)	$	46	$	(87	)


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

MR. COOPER GROUP INC. CONSOLIDATING STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 2019

	Successor
	Mr. Cooper			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)		Non-Guarantor (Subsidiaries of Issuer)			Eliminations		Consolidated
Revenues:
Service related, net	$	—		$	2		$	11	$	208		$	—	$	221
Net gain on mortgage loans held for sale	—			428			—		—			—		428
Total revenues	—			430			11		208			—		649
Expenses:
Salaries, wages benefits	—			372			2		79			—		453
General and administrative	—			344			2		136			—		482
Total expenses	—			716			4		215			—		935
Other income (expenses):
Interest income	—			265			—		31			—		296
Interest expense	(77		)	(268		)	—		(31		)	—		(376		)
Other income (expenses)	—			5			—		11			—		16
(Loss) gain from subsidiaries	(196		)	11			—		—			185		—
Total other income (expenses), net	(273		)	13			—		11			185		(64		)
(Loss) income before income tax benefit	(273		)	(273		)	7		4			185		(350		)
Less: Income tax benefit	—			(76		)	—		—			—		(76		)
Net (loss) income	(273		)	(197		)	7		4			185		(274		)
Less: Net loss attributable to non-controlling interests	—			(1		)	—		—			—		(1		)
Net (loss) income attributable to Mr. Cooper	$	(273	)	$	(196	)	$	7	$	4		$	185	$	(273	)


⁽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 SIX MONTHS ENDED JUNE 30, 2018

	Predecessor
	Nationstar			Issuer⁽¹⁾			Guarantor (Subsidiaries of Issuer)			Non-Guarantor (Subsidiaries of Issuer)			Eliminations			Consolidated
Operating Activities
Net income (loss) attributable to Nationstar	$	218		$	218		$	10		$	40		$	(268	)	$	218
Adjustments to reconcile net income (loss) to net cash attributable to operating activities:
Deferred income tax expense (benefit)	—			41			—			(1		)	—			40
(Gain) loss from subsidiaries	(218		)	(50		)	—			—			268			—
Net gain on mortgage loans held for sale	—			(251		)	—			—			—			(251		)
Interest income on reverse mortgage loan	—			(237		)	—			—			—			(237		)
Gain on sale of assets	—			—			—			(9		)	—			(9		)
Provision for servicing reserves	—			54			—			—			—			54
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			(155		)	—			—			—			(155		)
Fair value changes in excess spread financing	—			73			—			1			—			74
Fair value changes in mortgage servicing rights financing liability	—			6			—			—			—			6
Amortization of premiums, net of discount accretion	—			9			—			(3		)	—			6
Depreciation and amortization for property and equipment and intangible assets	—			23			—			6			—			29
Share-based compensation	—			7			—			1			—			8
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(475		)	—			—			—			(475		)
Mortgage loans originated and purchased for sale, net of fees	—			(10,639		)	—			—			—			(10,639		)
Sale proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			11,490			—			10			—			11,500
Changes in assets and liabilities:
Advances and other receivables	—			355			—			—			—			355
Reverse mortgage interests	—			1,314			—			12			—			1,326
Other assets	6			(188		)	(10		)	202			—			10
Payables and other liabilities	—			13			—			(4		)	—			9
Net cash attributable to operating activities	6			1,608			—			255			—			1,869


⁽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 SIX MONTHS ENDED JUNE 30, 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	—			(27		)	—		(4		)	—		(31		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(117		)	—		(6		)	—		(123		)
Net payment related to acquisition of HECM related receivables	—			(1		)	—		—			—		(1		)
Proceeds on sale of assets	—			—			—		13			—		13
Net cash attributable to investing activities	—			(145		)	—		3			—		(142		)
Financing Activities
Increase in warehouse facilities	—			(199		)	—		—			—		(199		)
Decrease in advance facilities	—			(57		)	—		(282		)	—		(339		)
Proceeds from issuance of HECM securitizations	—			—			—		443			—		443
Repayment of HECM securitizations	—			—			—		(423		)	—		(423		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—			184			—		—			—		184
Repayment of participating interest financing in reverse mortgage interests	—			(1,368		)	—		—			—		(1,368		)
Repayment of excess spread financing	—			(2		)	—		—			—		(2		)
Settlement of excess spread financing	—			(91		)	—		—			—		(91		)
Proceeds from issuance of excess spread financing	—			70			—		—			—		70
Repayment of nonrecourse debt - legacy assets	—			—			—		(6		)	—		(6		)
Repurchase of unsecured senior notes	—			(62		)	—		—			—		(62		)
Surrender of shares relating to stock vesting	(6		)	—			—		—			—		(6		)
Debt financing costs	—			(7		)	—		—			—		(7		)
Dividends to non-controlling interests	—			(1		)	—		—			—		(1		)
Net cash attributable to financing activities	(6		)	(1,533		)	—		(268		)	—		(1,807		)
Net decrease in cash, cash equivalents, and restricted cash	—			(70		)	—		(10		)	—		(80		)
Cash, cash equivalents, and restricted cash - beginning of period	—			423			1		151			—		575
Cash, cash equivalents, and restricted cash - end of period	$	—		$	353		$	1	$	141		$	—	$	495


⁽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 SIX MONTHS ENDED JUNE 30, 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	$	(273	)	$	(196	)	$	7		$	4		$	185		$	(273	)
Adjustments to reconcile net (loss) income to net cash attributable to operating activities:
Deferred tax benefit	—			(76		)	—			—			—			(76		)
Net income attributable to non-controlling interests	—			(1		)	—			—			—			(1		)
Loss (gain) from subsidiaries	196			(11		)	—			—			(185		)	—
Net gain on mortgage loans held for sale	—			(428		)	—			—			—			(428		)
Interest income on reverse mortgage loan	—			(167		)	—			—			—			(167		)
Provision for servicing reserves	—			30			—			—			—			30
Fair value changes and amortization/accretion of mortgage servicing rights/liabilities	—			690			—			5			—			695
Fair value changes in excess spread financing	—			(71		)	—			(3		)	—			(74		)
Fair value changes in mortgage servicing rights financing liability	—			11			—			—			—			11
Fair value changes in mortgage loans held for investment	—			—			—			(3		)	—			(3		)
Amortization of premiums, net of discount accretion	3			(28		)	—			—			—			(25		)
Depreciation and amortization for property and equipment and intangible assets	—			37			—			8			—			45
Share-based compensation	—			7			—			2			—			9
Repurchases of forward loans assets out of Ginnie Mae securitizations	—			(715		)	—			—			—			(715		)
Mortgage loans originated and purchased for sale, net of fees	—			(15,727		)	—			—			—			(15,727		)
Sales proceeds and loan payment proceeds for mortgage loans held for sale and held for investment	—			15,420			—			9			—			15,429
Changes in assets and liabilities:
Advances and other receivables	—			249			—			—			—			249
Reverse mortgage interests	—			1,001			—			55			—			1,056
Other assets	—			(65		)	(8		)	(45		)	—			(118		)
Payables and other liabilities	74			(16		)	1			(28		)	—			31
Net cash attributable to operating activities	—			(56		)	—			4			—			(52		)


⁽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 SIX MONTHS ENDED JUNE 30, 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	—		(20		)	—		(7		)	—		(27		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—		(409		)	—		—			—		(409		)
Proceeds on sale of forward and reverse mortgage servicing rights	—		279			—		—			—		279
Net cash attributable to investing activities	—		(235		)	—		(7		)	—		(242		)
Financing Activities
Increase in warehouse facilities	—		1,173			—		—			—		1,173
Decrease in advance facilities	—		(13		)	—		(27		)	—		(40		)
Repayment of notes payable	—		(294		)	—		—			—		(294		)
Proceeds from issuance of HECM securitizations	—		—			—		398			—		398
Proceeds from sale of HECM securitizations	—		—			—		20			—		20
Repayment of HECM securitizations	—		—			—		(434		)	—		(434		)
Proceeds from issuance of participating interest financing in reverse mortgage interests	—		156			—		—			—		156
Repayment of participating interest financing in reverse mortgage interests	—		(1,004		)	—		—			—		(1,004		)
Proceeds from issuance of excess spread financing	—		437			—		—			—		437
Repayment of excess spread financing	—		(12		)	—		—			—		(12		)
Settlement of excess spread financing	—		(107		)	—		—			—		(107		)
Repayment of nonrecourse debt - legacy assets	—		—			—		(6		)	—		(6		)
Repayment of finance lease liability	—		(2		)	—		—			—		(2		)
Surrender of shares relating to stock vesting	—		(2		)	—		—			—		(2		)
Debt financing costs	—		(1		)	—		—			—		(1		)
Net cash attributable to financing activities	—		331			—		(49		)	—		282
Net increase (decrease) in cash, cash equivalents, and restricted cash	—		40			—		(52		)	—		(12		)
Cash, cash equivalents, and restricted cash - beginning of period	—		379			1		181			—		561
Cash, cash equivalents, and restricted cash - end of period	$	—	$	419		$	1	$	129		$	—	$	549


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