XML 90 R18.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
11. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap agreements.

Associated with the Company’s derivatives are $6 and $12 in collateral deposits on derivative instruments recorded in other assets on the Company’s consolidated balance sheets as of December 31, 2019 and 2018, respectively. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the consolidated balance sheets.

The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments:
 
 
 
Successor
 
 
 
December 31, 2019
 
Year Ended December 31, 2019
 
Expiration
Dates
 
Outstanding
Notional
 
Fair
Value
 
Recorded Gains/(Losses)
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
Loan sale commitments
2020
 
$
1,202

 
$
32.3

 
$
6.5

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2020
 
4,838

 
134.7

 
75.0

LPCs
2020
 
1,094

 
12.2

 
10.5

Forward sales of MBS
2020
 
3,120

 
6.5

 
4.6

Eurodollar futures(1)
2020-2021
 
6

 
—

 
—

Total derivative financial instruments - assets
 
 
$
9,058

 
$
153.4

 
$
90.1

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs(1)
2020
 
$
12

 
$
—

 
$
—

LPCs
2020
 
540

 
2.6

 
2.1

Forward sales of MBS
2020
 
6,036

 
12.3

 
(11.6
)
Eurodollar futures(1)
2020-2021
 
7

 
—

 
—

Total derivative financial instruments - liabilities
 
 
$
6,595

 
$
14.9

 
$
(9.5
)

 
 
 
Successor
 
 
Predecessor
 
 
 
December 31, 2018
 
Five Months Ended December 31, 2018
 
 
Seven Months Ended July 31, 2018
 
Expiration
Dates
 
Outstanding
Notional
 
Fair
Value
 
Recorded
Gains/(Losses)
 
 
Recorded Gains/(Losses)
Assets
 
 
 
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
 
 
 
Loan sale commitments
2019
 
$
319

 
$
13.5

 
$
2.8

 
 
$
10.5

Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
IRLCs
2019
 
1,301

 
47.6

 
(12.1
)
 
 
0.4

LPCs
2019
 
215

 
1.7

 
0.4

 
 
0.3

Forward sales of MBS
2019
 
485

 
0.1

 
(3.1
)
 
 
0.9

Treasury futures(1)
2018
 
—

 
—

 
(0.1
)
 
 
(1.8
)
Eurodollar futures(1)
2019-2021
 
19

 
—

 
—

 
 
—

Total derivative financial instruments - assets
 
 
$
2,020

 
$
49.4

 
$
(14.9
)
 
 
$
(0.2
)
Liabilities
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
 
 
 
IRLCs(1)
2019
 
$
—

 
$
—

 
$
—

 
 
$
—

LPCs
2019
 
90

 
0.4

 
(0.2
)
 
 
0.1

Forward sales of MBS
2019
 
2,639

 
19.3

 
17.4

 
 
(1.0
)
Treasury futures(1)
2018
 
—

 
—

 
(0.1
)
 
 
(1.3
)
Eurodollar futures(1)
2019-2021
 
6

 
—

 
—

 
 
—

Total derivative financial instruments - liabilities
 
 
$
2,735

 
$
19.7

 
$
17.1

 
 
$
(2.2
)

(1) 
Fair values or recorded gains/(losses) of derivative instruments are less than $0.1 for the specified dates.