Indebtedness

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Indebtedness

9. Indebtedness

Advance and Warehouse Facilities

					March 31, 2022				December 31, 2021
	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Advance Facilities
$400 advance facility(1)	August 2023	Servicing advance receivables	$	400	$	219	$	312	$	234	$	318
$350 advance facility	October 2022	Servicing advance receivables	350		156		189		160		197
$350 advance facility	January 2023	Servicing advance receivables	350		158		186		162		190
$75 advance facility	December 2022	Servicing advance receivables	75		53		79		58		89
Advance facilities principal amount					586		766		614		794
Warehouse Facilities
$4,000 warehouse facility	February 2023	Mortgage loans or MBS	4,000		987		1,118		1,224		1,341
$2,500 warehouse facility	October 2022	Mortgage loans or MBS	2,500		746		772		991		1,024
$1,600 warehouse facility(2)	September 2023	Mortgage loans or MBS	1,600		148		161		409		425
$1,500 warehouse facility	June 2022	Mortgage loans or MBS	1,500		349		352		356		345
$750 warehouse facility	October 2022	Mortgage loans or MBS	750		256		272		256		270
$550 warehouse facility	August 2022	Mortgage loans or MBS	550		48		49		87		89
$500 warehouse facility	June 2023	Mortgage loans or MBS	500		216		224		188		194
$500 warehouse facility	September 2022	Mortgage loans or MBS	500		284		293		419		430
$500 warehouse facility	June 2022	Mortgage loans or MBS	500		137		163		39		39
$500 warehouse facility	August 2023	Mortgage loans or MBS	500		178		184		38		39
$325 warehouse facility	December 2022	Mortgage loans or MBS	325		38		38		67		67
$250 warehouse facility(3)	May 2022	Mortgage loans or MBS	250		1		2		5		6
$200 warehouse facility	June 2022	Mortgage loans or MBS	200		31		39		46		58
$30 warehouse facility(4)	January 2022	Mortgage loans or MBS	30		—		—		—		—
Warehouse facilities principal amount					3,419		3,667		4,125		4,327
MSR Facilities
$800 warehouse facility(1)(5)	August 2023	MSR	800		260		1,345		260		1,107
$400 warehouse facility	August 2022	MSR	400		300		1,246		—		838
$400 warehouse facility(2)	September 2023	MSR	400		215		1,114		—		745
$50 warehouse facility	November 2023	MSR	50		25		84		10		124
MSR facilities principal amount					800		3,789		270		2,814
Advance, warehouse and MSR facilities principal amount					4,805		$	8,222	5,009		$	7,935
Unamortized debt issuance costs					(10)				(12)
Advance and warehouse facilities, net					$	4,795			$	4,997

(1)Total capacity for this facility is $1,200, of which $400 is internally allocated for advance financing and $800 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations, in comparison to $1,200, $940, and $260 respectively in 2021.

(2)The capacity amount for this facility is $2,000, of which $400 is a sublimit for MSR financing.

(3)The capacity amount for this warehouse facility decreased from $600 to $250 in 2022.

(4)This facility was terminated in January 2022.

(5)The capacity amount for this warehouse facility increased from $260 to $800 in 2022.

The weighted average interest rate for advance facilities was 2.4% and 3.0% for three months ended March 31, 2022 and 2021, respectively. The weighted average interest rate for warehouse and MSR facilities was 2.1% and 2.2% for three months ended March 31, 2022 and 2021, respectively.

Unsecured Senior Notes

Unsecured senior notes consist of the following:

Unsecured Senior Notes	March 31, 2022		December 31, 2021
$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
$600 face value, 5.750% interest rate payable semi-annually, due November 2031	600		600
Unsecured senior notes principal amount	2,700		2,700
Unamortized debt issuance costs	(30)		(30)
Unsecured senior notes, net	$	2,670	$	2,670

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, 2022 and 2021.

As of March 31, 2022, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:

Year Ending December 31,	Amount
2022 through 2026	$	—
Thereafter	2,700
Total unsecured senior notes principal amount	$	2,700

Interest Expense

Interest expense primarily includes interest incurred on advance and warehouse facilities, unsecured senior notes, excess spread financing and compensating bank balances, as well as bank fees. The Company incurred interest expense related to advance and warehouse facilities, unsecured senior notes and excess spread financing of $86 and $93 for the three months ended March 31, 2022 and 2021, respectively.

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, 2022.