Acquisitions (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

The final allocation of the purchase price to the acquired assets and liabilities is as follows:

Final Estimated Fair Value of Net Assets Acquired:
Cash and cash equivalents	$	166
Restricted cash	430
Mortgage servicing rights	3,422
Advances and other receivables	1,262
Reverse mortgage interests	9,189
Mortgage loans held for sale	1,514
Mortgage loans held for investment	125
Property and equipment	96
Other assets	610
Fair value of assets acquired	16,814
Unsecured senior notes	1,830
Advance facilities	551
Warehouse facilities	2,701
Payables and other liabilities	1,352
MSR related liabilities—nonrecourse	1,065
Mortgage servicing liabilities	123
Other nonrecourse debt	7,583
Fair value of liabilities assumed	15,205
Total fair value of net tangible assets acquired	1,609
Intangible assets(1)	103
Goodwill	65
Purchase price	$	1,777

⁽¹⁾  The following intangible assets were acquired in the Nationstar acquisition.

	Useful Life (Years)	Fair Value
Customer relationships(i)	6	$	61
Tradename(ii)	5	8
Technology(ii)	3-5	11
Internally developed software(iii)	2	23
Total		$	103

⁽ⁱ⁾  The estimated fair values for customer relationships were measured using the excess earnings method.

⁽ⁱⁱ⁾  The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets.

⁽ⁱⁱⁱ⁾  The estimated fair values for internally developed software were measured using the replacement cost method.

Estimated Fair Value of Net Assets Acquired (1):
Cash and cash equivalents	$	37
Restricted cash	2
Mortgage servicing rights	271
Advances and other receivables	84
Mortgage loans held for sale	536
Mortgage loans held for investment	1
Property and equipment	8
Other assets	483
Fair value of assets acquired	1,422
Notes payable(2)	294
Advance facilities	13
Warehouse facilities	393
Payables and other liabilities	530
Other nonrecourse debt	129
Fair value of liabilities assumed	1,359
Total fair value of net tangible assets acquired	63
Intangible assets:
Customer relationships(3)	13
Goodwill	40
Estimated purchase price	$	116

⁽¹⁾  Estimated Fair Value of Net Assets Acquired is subject to change due to dispute of purchase price.

⁽²⁾  Notes payable was subsequently paid off in February 2019 after the consummation of the acquisition.

⁽³⁾  The estimated fair values for customer relationships were measured using the excess earnings method and were determined to have a remaining useful life of 10 years.

Schedule of Pro Forma Information

The following unaudited pro forma financial information presents the combined results of operations for the three and nine months ended September 30, 2018, as if the acquisition had occurred on January 1, 2018.

	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
Pro forma total revenues	$	506		$	1,538
Pro forma net (loss) income	$	(20	)	$	156

The following unaudited pro forma financial information presents the combined results of operations for the three and nine months ended September 30, 2019, as if the acquisition had occurred on January 1, 2019.

	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
Pro forma total revenues	$	618	$	1,286
Pro forma net income (loss)	$	83	$	(188	)

Schedule of Business Acquisitions

The table below presents the calculation of aggregate purchase price.

Purchase Price:
Converted WMIH common shares (prior to reverse stock split) in millions	394
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018	$	1.398
Purchase price from common stock issued	551
Purchase price from cash payment	1,226
Total purchase price	$	1,777