Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) were as follows:


	Successor						Predecessor
Total Income Tax Expense (Benefit)	Year Ended December 31, 2020		Year Ended December 31, 2019		Five Months Ended December 31, 2018		Seven Months Ended July 31, 2018
Current Income Taxes
Federal	$	(3)	$	19	$	—	$	(14)
State	92		74		—		(1)
Total current income taxes	89		93		—		(15)

Deferred Income Taxes
Federal	86		(298)		(1,015)		54
State	(83)		(68)		(6)		9
Total deferred income taxes	3		(366)		(1,021)		63
Total income tax expense (benefit)	$	92	$	(273)	$	(1,021)	$	48

Schedule of Effective Income Tax Rate Reconciliation

The following table presents a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate:


	Successor												Predecessor
Reconciliation of the Income Tax Provision	Year Ended December 31, 2020				Year Ended December 31, 2019				Five Months Ended December 31, 2018				Seven Months Ended July 31, 2018
Tax Expense (Benefit) at Federal Statutory Rate	$	84	21.0	%	$	(1)	21.0	%	$	(29)	21.0	%	$	42	21.0	%
Effect of:
State taxes, net of federal benefit	7		1.6	%	5		(141.2)	%	(6)		4.2	%	8		3.8	%
Non-controlling interests	—		—	%	1		(21.1)	%	—		—	%	—		—	%
Change in valuation allowance	—		—	%	(285)		8066.4	%	(990)		720.0	%	—		—	%
Deferred adjustments	(5)		(1.1)	%	2		(64.1)	%	3		(1.8)	%	(1)		(0.5)	%
Nondeductible items	7		1.7	%	4		(136.5)	%	1		(1.0)	%	7		3.3	%
Other, net	(1)		(0.2)	%	1		(5.7)	%	—		—	%	(8)		(3.8)	%
Total income tax expense (benefit)	$	92	23.0	%	$	(273)	7718.8	%	$	(1,021)	742.4	%	$	48	23.8	%

Schedule of Deferred Tax Assets and Liabilities

Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following:


	Successor
Deferred Tax Assets and Liabilities	December 31, 2020		December 31, 2019
Deferred Tax Assets
Effect of:
Goodwill and intangible assets	$	728	$	364
Loss carryforwards (federal, state & capital)	558		998
Loss reserves	115		108
Reverse mortgage interests	38		44
Lease liability	26		32
Accruals	24		16
Other, net	15		16
Total deferred tax assets	1,504		1,578

Deferred Tax Liabilities
MSR amortization and mark-to-market, net	(117)		(181)
Right-of-use assets	(23)		(29)
Depreciation and amortization, net	(13)		(12)
Prepaid assets	(2)		(2)
Total deferred tax liabilities	(155)		(224)
Valuation allowance	(9)		(9)
Deferred tax assets, net	$	1,340	$	1,345

Schedule of Unrecognized Tax Benefits Roll Forward

The following is a tabular reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits, excluding interest and penalties, for the Predecessor:


	Predecessor
Unrecognized Tax Benefits	Seven Months Ended July 31, 2018
Balance - beginning of period	$	17
Decreases in tax positions of prior years	(17)
Balance - end of period	$	—