Indebtedness

3 Months Ended

Mar. 31, 2021

9. Indebtedness

Advance and Warehouse Facilities


						March 31, 2021				December 31, 2020
	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Advance Facilities
$875 advance facility	CP+2.0% to 6.5%	January 2022	Servicing advance receivables	$	875	$	140	$	165	$	168	$	195
$640 advance facility(1)	LIBOR+3.9%	August 2022	Servicing advance receivables	640		231		299		235		305
$425 advance facility	LIBOR+1.6% to 6.5%	October 2021	Servicing advance receivables	425		197		250		192		246
$100 advance facility	LIBOR+2.5%	January 2022	Servicing advance receivables	100		70		92		74		98
Advance facilities principal amount						638		806		669		844

Warehouse Facilities
$2,500 warehouse facility(2)	LIBOR+1.6% to 1.9%	October 2021	Mortgage loans or MBS	2,500		1,442		1,495		1,003		1,037
$2,000 warehouse facility	LIBOR+1.6% to 2.0%	February 2023	Mortgage loans or MBS	2,000		940		1,055		339		392
$1,500 warehouse facility	LIBOR+1.5%	June 2021	Mortgage loans or MBS	1,500		867		838		1,081		1,028
$1,350 warehouse facility(3)	LIBOR+1.7% to 3.9%	September 2022	Mortgage loans or MBS	1,350		918		990		1,067		1,128


					March 31, 2021				December 31, 2020
	Interest Rate	Maturity Date	Collateral	Capacity Amount	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
$1,200 warehouse facility	LIBOR+1.8% to 3.0%	November 2021	Mortgage loans or MBS	1,200	497		543		787		839
$750 warehouse facility	LIBOR+1.8% to 2.3%	August 2021	Mortgage loans or MBS	750	612		631		477		492
$750 warehouse facility	LIBOR+1.7% to 2.8%	October 2021	Mortgage loans or MBS	750	535		549		562		574
$600 warehouse facility	LIBOR+2.5%	February 2022	Mortgage loans or MBS	600	332		374		187		222
$500 warehouse facility	LIBOR+2.5% to 4.0%	May 2021	Mortgage loans or MBS	500	—		—		—		—
$300 warehouse facility	LIBOR+1.4%	January 2022	Mortgage loans or MBS	300	129		130		163		164
$250 warehouse facility	LIBOR+1.4% to 2.3%	May 2021	Mortgage loans or MBS	250	1		1		—		—
$200 warehouse facility	LIBOR+1.8%	July 2021	Mortgage loans or MBS	200	169		173		131		134
$50 warehouse facility	LIBOR+1.8% to 4.8%	June 2021	Mortgage loans or MBS	50	36		43		37		42
$30 warehouse facility(4)	LIBOR+3.3%	January 2022	Mortgage loans or MBS	30	2		2		1		1
Warehouse facilities principal amount					6,480		6,824		5,835		6,053

MSR Facilities
$260 warehouse facility(1)	LIBOR+3.9%	August 2022	MSR	260	260		838		260		668
$200 warehouse facility	LIBOR+3.5%	August 2021	MSR	200	—		471		—		247
$150 warehouse facility(3)	LIBOR+3.8%	September 2022	MSR	150	—		438		—		228
$50 warehouse facility	LIBOR+3.3%	November 2022	MSR	50	10		80		10		74
MSR facilities principal amount					270		1,827		270		1,217

Advance, warehouse and MSR facilities principal amount					7,388		$	9,457	6,774		$	8,114
Unamortized debt issuance costs					(9)				(11)
Advance and warehouse facilities, net					$	7,379			$	6,763

Pledged Collateral for warehouse and MSR facilities:
Mortgage loans held for sale					$	5,970	$	6,210	$	5,330	$	5,447
Reverse mortgage interests					510		614		505		606
MSR					270		1,827		270		1,217

(1)Total capacity for this facility is $900, of which $640 is internally allocated for advance financing and $260 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations.

(2)The capacity amount for this warehouse facility increased from $1,500 to $2,500 in 2021.

(3)Total capacity amount for this facility is $1,500, of which $150 is a sublimit for MSR financing.

(4)The capacity amount for this warehouse facility decreased from $40 to $30 in 2021.

Unsecured Senior Notes

Unsecured senior notes consist of the following:


Unsecured Senior Notes	March 31, 2021		December 31, 2020
$850 face value, 5.500% interest rate payable semi-annually, due August 2028	$	850	$	850
$650 face value, 5.125% interest rate payable semi-annually, due December 2030	650		650
$600 face value, 6.000% interest rate payable semi-annually, due January 2027	600		600
Unsecured senior notes principal amount	2,100		2,100
Unamortized debt issuance costs	(26)		(26)
Unsecured senior notes, net	$	2,074	$	2,074

The indentures provide that on or before certain fixed dates, the Company may redeem up to 40% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased or redeemed during the three months ended March 31, 2021. During the three months ended March 31, 2020, the Company repaid $100 in principal of outstanding notes. Additionally, the Company redeemed $598 in principal of outstanding notes during the three months ended March 31, 2020, resulting in a gain of $1.

As of March 31, 2021, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:


Year Ending December 31,	Amount
2021 through 2025	$	—
Thereafter	2,100
Total unsecured senior notes principal amount	$	2,100

Other Nonrecourse Debt

Other nonrecourse debt consists of the following:


							March 31, 2021		December 31, 2020
Other Nonrecourse Debt	Issue Date	Maturity Date	Interest Rate	Class of Note	Collateral Amount		Outstanding		Outstanding
Participating interest financing(1)	—	—	0.3%-5.6%	—	$	—	$	3,306	$	3,473
Securitization of nonperforming HECM loans
Trust 2020-1	September 2020	September 2030	1.3%-7.5%	A, M1, M2, M3, M4, M5	489		471		490
Trust 2019-2	November 2019	November 2029	2.3%-6.0%	A, M1, M2, M3, M4, M5	254		232		241
Trust 2019-1	June 2019	June 2029	2.7%-6.0%	A, M1, M2, M3, M4, M5	231		203		212
Other nonrecourse debt principal amount							4,212		4,416
Unamortized premium, net of debt issuance costs and discount							9		8
Other nonrecourse debt, net							$	4,221	$	4,424

(1)Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios.

Financial Covenants

The Company’s credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of March 31, 2021.