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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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
 
September 30, 2019
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
$
4,267.2

 
$
—

 
$
4,267.2

 
$
—

Forward mortgage servicing rights
3,338.5

 
—

 
—

 
3,338.5

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
143.9

 
—

 
143.9

 
—

Forward MBS trades
7.7

 
—

 
7.7

 
—

LPCs
18.2

 
—

 
18.2

 
—

Eurodollar futures(1)
—

 
—

 
—

 
—

Total assets
$
7,775.5

 
$
—

 
$
4,437.0

 
$
3,338.5

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs(1)
$
—

 
$
—

 
$
—

 
$
—

Forward MBS trades
15.9

 
—

 
15.9

 
—

LPCs
3.1

 
—

 
3.1

 
—

Eurodollar futures(1)
—

 
—

 
—

 
—

Mortgage servicing rights financing
46.9

 
—

 
—

 
46.9

Excess spread financing
1,280.8

 
—

 
—

 
1,280.8

Total liabilities
$
1,346.7

 
$
—

 
$
19.0

 
$
1,327.7


 
Successor
 
December 31, 2018
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
$
1,630.8

 
$
—

 
$
1,630.8

 
$
—

Mortgage loans held for investment
119.1

 
—

 
—

 
119.1

Forward mortgage servicing rights
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(1)
—

 
—

 
—

 
—

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(1)
—

 
—

 
—

 
—

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) 
Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates.
Schedule of 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
Nine Months Ended September 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
(1,039
)
 
3

 
(190
)
 
15

Payments received from borrowers
—

 
(11
)
 
—

 
—

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
 
 
Purchases
732

 
—

 
—

 
—

Issuances
298

 
—

 
469

 
—

Sales
(317
)
 
(94
)
 
—

 
—

Repayments
—

 
—

 
(19
)
 
—

Settlements
—

 
—

 
(163
)
 
—

Transfers to mortgage loans held for sale
—

 
(12
)
 
—

 
—

Transfers to real estate owned
—

 
(5
)
 
—

 
—

Balance - end of period
$
3,339

 
$
—

 
$
1,281

 
$
47

 
Successor
 
Assets
 
Liabilities
Two Months Ended September 30, 2018
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
20

 
(1
)
 
26

 
—

Payments received from borrowers
—

 
(2
)
 
—

 
—

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
 
 
Purchases
72

 
—

 
—

 
—

Issuances
43

 
—

 
84

 
—

Sales
(63
)
 
—

 
—

 
—

Repayments
—

 
—

 
(21
)
 
—

Settlements
—

 
—

 
(31
)
 
—

Balance - end of period
$
3,485

 
$
122

 
$
1,097

 
$
26


 
Predecessor
 
Assets
 
Liabilities
Seven Months Ended July 31, 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
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
Schedule of 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
 
September 30, 2019
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
371

 
$
371

 
$
—

 
$
—

Restricted cash
271

 
271

 
—

 
—

Advances and other receivables, net
967

 
—

 
—

 
967

Reverse mortgage interests, net
6,662

 
—

 
—

 
6,726

Mortgage loans held for sale
4,267

 
—

 
4,267

 
—

Derivative financial instruments
170

 
—

 
170

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
2,464

 
2,592

 
—

 
—

Advance facilities
513

 
—

 
513

 
—

Warehouse facilities
4,802

 
—

 
4,802

 
—

Mortgage servicing rights financing liability
47

 
—

 
—

 
47

Excess spread financing
1,281

 
—

 
—

 
1,281

Derivative financial instruments
19

 
—

 
19

 
—

Participating interest financing
4,593

 
—

 
—

 
4,590

HECM Securitization (HMBS)
 
 
 
 
 
 
 
Trust 2018-1
201

 
—

 
—

 
201

Trust 2018-2
161

 
—

 
—

 
161

Trust 2018-3
239

 
—

 
—

 
239

Trust 2019-1
339

 
—

 
—

 
339



 
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

 
—

 
—

 
7,934

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