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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 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
 
December 31, 2019
 
Total Fair Value
 
Recurring Fair Value Measurements
 
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
$
4,077.0

 
$
—

 
$
4,077.0

 
$
—

Mortgage loans held for investment
—

 
—

 
—

 
—

Forward mortgage servicing rights
3,496.4

 
—

 
—

 
3,496.4

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
134.7

 
—

 
134.7

 
—

Forward MBS trades
6.5

 
—

 
6.5

 
—

LPCs
12.2

 
—

 
12.2

 
—

Eurodollar futures(1)
—

 
—

 
—

 
—

Total assets
$
7,726.8

 
$
—

 
$
4,230.4

 
$
3,496.4

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs(1)
$
—

 
$
—

 
$
—

 
$
—

Forward MBS trades
12.3

 
—

 
12.3

 
—

LPCs
2.6

 
—

 
2.6

 
—

Eurodollar futures(1)
—

 
—

 
—

 
—

Mortgage servicing rights financing
37.4

 
—

 
—

 
37.4

Excess spread financing
1,310.8

 
—

 
—

 
1,310.8

Total liabilities
$
1,363.1

 
$
—

 
$
14.9

 
$
1,348.2


(1) 
Fair values of the underlying assets and liabilities are less than $0.1 for the specified dates.

 
Successor
 
December 31, 2018
 
Total Fair Value
 
Recurring Fair Value Measurements
 
 
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.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The tables below present 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
Year Ended December 31, 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
(1,053
)
 
3

 
(169
)
 
5

Payments received from borrowers
—

 
(11
)
 
—

 
—

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
 
 
Purchases
858

 
—

 
—

 
—

Issuances
434

 
—

 
542

 
—

Sales
(408
)
 
(94
)
 
—

 
—

Repayments
—

 
—

 
(27
)
 
—

Settlements
—

 
—

 
(219
)
 
—

Transfers to mortgage loans held for sale
—

 
(12
)
 
—

 
—

Transfers to real estate owned
—

 
(5
)
 
—

 
—

Balance - end of period
$
3,496

 
$
—

 
$
1,311

 
$
37


 
Successor
 
Assets
 
Liabilities
Five Months Ended December 31, 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
(236
)
 
(1
)
 
5

 
6

Payments received from borrowers
—

 
(5
)
 
—

 
—

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
 
 
Purchases
479

 
—

 
—

 
—

Issuances
120

 
—

 
255

 
—

Sales
(111
)
 
—

 
—

 
—

Repayments
—

 
—

 
(38
)
 
—

Settlements
—

 
—

 
(77
)
 
—

Balance - end of period
$
3,665

 
$
119

 
$
1,184

 
$
32


 
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
Fair Value, by Balance Sheet Grouping
The tables below present a summary of the estimated carrying amount and fair value of the Company and Predecessor’s financial instruments:
 
Successor
 
December 31, 2019
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
329

 
$
329

 
$
—

 
$
—

Restricted cash
283

 
283

 
—

 
—

Advances and other receivables, net
988

 
—

 
—

 
988

Reverse mortgage interests, net
6,279

 
—

 
—

 
6,318

Mortgage loans held for sale
4,077

 
—

 
4,077

 
—

Mortgage loans held for investment
—

 
—

 
—

 
—

Derivative financial instruments
153

 
—

 
153

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes(1)
2,366

 
2,505

 
—

 
—

Advance facilities
422

 
—

 
422

 
—

Warehouse facilities(1)
4,575

 
—

 
4,575

 
—

Mortgage servicing rights financing liability
37

 
—

 
—

 
37

Excess spread financing
1,311

 
—

 
—

 
1,311

Derivative financial instruments
15

 
—

 
15

 
—

Participating interest financing(1)
4,299

 
—

 
—

 
4,299

HECM Securitization (HMBS)(1)
 
 
 
 
 
 
 
Trust 2019-2
331

 
—

 
—

 
331

Trust 2019-1
300

 
—

 
—

 
300

Trust 2018-3
208

 
—

 
—

 
208

Trust 2018-2
148

 
—

 
—

 
148


(1) 
The amounts are presented net of unamortized debt issuance costs, premium and discount.

 
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
119

 
—

 
—

 
119

Derivative financial instruments
49

 
—

 
49

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes(1)
2,459

 
2,451

 
—

 
—

Advance facilities(1)
595

 
—

 
595

 
—

Warehouse facilities(1)
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(1)
5,675

 
—

 
—

 
5,672

HECM Securitization (HMBS)(1)
 
 
 
 
 
 
 
Trust 2018-3
326

 
—

 
—

 
326

Trust 2018-2
250

 
—

 
—

 
249

Trust 2018-1
284

 
—

 
—

 
284

Trust 2017-2
231

 
—

 
—

 
230

Nonrecourse debt - legacy assets
29

 
—

 
—

 
28



(1) 
The amounts are presented net of unamortized debt issuance costs, premium and discount.