Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020
	Total Fair Value		Recurring Fair Value Measurements
Fair Value - Recurring Basis			Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	5,720	$	—	$	5,720	$	—
Forward mortgage servicing rights	2,703		—		—		2,703
Derivative financial instruments:
IRLCs	414		—		—		414
Forward MBS trades	37		—		37		—
LPCs	38		—		—		38
Liabilities
Derivative financial instruments:
Forward MBS trades	156		—		156		—
LPCs	1		—		—		1
Mortgage servicing rights financing	33		—		—		33
Excess spread financing	934		—		—		934

	Successor
	December 31, 2019
	Total Fair Value		Recurring Fair Value Measurements
Fair Value - Recurring Basis			Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	4,077	$	—	$	4,077	$	—
Forward mortgage servicing rights	3,496		—		—		3,496
Derivative financial instruments:
IRLCs	135		—		135		—
Forward MBS trades	7		—		7		—
LPCs	12		—		12		—
Liabilities
Derivative financial instruments:
Forward MBS trades	12		—		12		—
LPCs	3		—		3		—
Mortgage servicing rights financing	37		—		—		37
Excess spread financing	1,311		—		—		1,311

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:

	Successor
	Year Ended December 31, 2020
	Assets						Liabilities
Fair Value - Level 3 Assets and Liabilities	Forward Mortgage Servicing Rights		IRLCs		LPCs		Excess Spread Financing		Mortgage Servicing Rights Financing
Balance - beginning of year	$	3,496	$	135	$	12	$	1,311	$	37
Total gains or losses included in earnings	(1,595)		279		26		(194)		(4)
Purchases, issuances, sales, repayments and settlements
Purchases	124		—		—		—		—
Issuances	687		—		—		24		—
Sales	(9)		—		—		—		—
Settlements and repayments	—		—		—		(207)		—
Balance - end of year	$	2,703	$	414	$	38	$	934	$	33

	Successor
	Year Ended December 31, 2019
	Assets				Liabilities
Fair Value - Level 3 Assets and Liabilities	Forward Mortgage Servicing Rights		Mortgage Loans Held for Investment		Excess Spread Financing		Mortgage Servicing Rights Financing
Balance - beginning of year	$	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)		—		—
Settlements and repayments	—		—		(246)		—
Transfers to mortgage loans held for sale	—		(12)		—		—
Transfers to real estate owned	—		(5)		—		—
Balance - end of year	$	3,496	$	—	$	1,311	$	37

Fair Value Measurement Inputs and Valuation Techniques

The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities:

	Successor
	December 31, 2020									December 31, 2019
	Range						Weighted Average			Weighted Average
Level 3 Inputs	Min			Max
Forward MSR
Discount rate	8.2		%	12.0		%	9.4		%	9.7	%
Prepayment speed	14.2		%	21.3		%	15.4		%	13.1	%
Cost to service per loan(1)	$	66		$	257		$	98		N/A
Average life(2)							5.0 years			5.8 years
IRLCs
Value of servicing (basis points per loan)	(1.0)			2.2			1.2			N/A
Excess spread financing
Discount rate	9.9		%	15.7		%	12.2		%	11.6	%
Prepayment speed	13.9		%	15.0		%	14.4		%	12.6	%
Recapture rate	17.7		%	24.2		%	19.5		%	20.1	%
Average life(2)							5.1 years			5.8 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates	4.6		%	8.5		%	7.5		%	8.9	%
Annual advance recovery rates	18.3		%	22.0		%	19.9		%	18.8	%

(1)Presented in whole dollar amounts.

(2)Average life is included for informational purposes.

Fair Value, by Balance Sheet Grouping

The tables below present a summary of the carrying amount and estimated fair value of the Company’s financial instruments not carried at fair value:

	Successor
	December 31, 2020
	Carrying Amount		Fair Value
Financial Instruments			Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	695	$	695	$	—	$	—
Restricted cash	218		218		—		—
Advances and other receivables, net	940		—		—		940
Reverse mortgage interests, net	5,253		—		—		5,383
Loans subject to repurchase from Ginnie Mae	6,159		—		6,159		—
Financial liabilities
Unsecured senior notes, net	2,074		2,208		—		—
Advance and warehouse facilities, net	6,763		—		6,774		—
Liability for loans subject to repurchase from Ginnie Mae	6,159		—		6,159		—
Participating interest financing, net	3,485		—		—		3,496
HECM Securitization (HMBS), net
Trust 2020-1	488						490
Trust 2019-2	240		—		—		241
Trust 2019-1	211		—		—		212

	Successor
	December 31, 2019
	Carrying Amount		Fair Value
Financial Instruments			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
Loans subject to repurchase from Ginnie Mae	560		—		560		—
Financial liabilities
Unsecured senior notes, net	2,366		2,505		—		—
Advance and warehouse facilities, net	4,997		—		4,997		—
Liability for loans subject to repurchase from Ginnie Mae	560		—		560		—
Participating interest financing, net	4,299		—		—		4,299
HECM Securitization (HMBS), net
Trust 2019-2	331		—		—		331
Trust 2019-1	300		—		—		300
Trust 2018-3	208		—		—		208
Trust 2018-2	148		—		—		148