Segment Information

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Company’s segments are based upon the Company’s organizational structure, which focuses primarily on the services offered. The Servicing segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO. The Originations segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers. Corporate functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.

On December 1, 2021, the Company completed the sale of its reverse servicing portfolio, operating under the Champion Mortgage brand, to MAM and its affiliates. The reverse servicing operation was previously reported in the Company’s Servicing segment. The reverse servicing operation is presented as discontinued operations in Company’s condensed financial statements for all periods presented and, as such, is not included in the continuing operations of the Servicing segment.

On March 31, 2022, the Company completed the sale of its Mortgage Servicing Platform to Sagent and recorded a gain of $223, which was included in “other income, net” within the condensed statements of operations and reported under Corporate/Other. Refer to Note 2, Dispositions for further details.

The following tables present financial information by segment:

	Three Months Ended September 30, 2022
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	353	$	20	$	22	$	395
Net (loss) gain on mortgage loans held for sale	(21)		136		—		115
Total revenues	332		156		22		510
Total expenses	147		112		57		316
Interest income	71		12		—		83
Interest expense	(53)		(11)		(40)		(104)
Other expense, net	—		—		(20)		(20)
Total other (expenses) income, net	18		1		(60)		(41)
Income (loss) from continuing operations before income tax expense (benefit)	$	203	$	45	$	(95)	$	153
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	6	$	5	$	(2)	$	9
Total assets	$	9,703	$	1,252	$	1,860	$	12,815

	Three Months Ended September 30, 2021
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	209	$	44	$	35	$	288
Net gain on mortgage loans held for sale	142		430		—		572
Total revenues	351		474		35		860
Total expenses	128		208		66		402
Interest income	39		27		—		66
Interest expense	(65)		(22)		(31)		(118)
Other income, net	—		—		8		8
Total other (expenses) income, net	(26)		5		(23)		(44)
Income (loss) from continuing operations before income tax expense (benefit)	$	197	$	271	$	(54)	$	414
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	11	$	8	$	(5)	$	14
Total assets	$	14,560	$	4,949	$	2,152	$	21,661

	Nine Months Ended September 30, 2022
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	1,468	$	86	$	56	$	1,610
Net (loss) gain on mortgage loans held for sale	(25)		576		—		551
Total revenues	1,443		662		56		2,161
Total expenses	413		412		157		982
Interest income	125		44		—		169
Interest expense	(168)		(33)		(120)		(321)
Other income, net	—		—		197		197
Total other (expenses) income, net	(43)		11		77		45
Income (loss) from continuing operations before income tax expense	$	987	$	261	$	(24)	$	1,224
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	16	$	14	$	(1)	$	29
Total assets	$	9,703	$	1,252	$	1,860	$	12,815

	Nine Months Ended September 30, 2021
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	558	$	132	$	170	$	860
Net gain on mortgage loans held for sale	466		1,367		—		1,833
Total revenues	1,024		1,499		170		2,693
Total expenses	359		665		257		1,281
Interest income	87		76		—		163
Interest expense	(201)		(70)		(92)		(363)
Other income, net	—		—		494		494
Total other (expenses) income, net	(114)		6		402		294
Income from continuing operations before income tax expense	$	551	$	840	$	315	$	1,706
Depreciation and amortization for property and equipment and intangible assets from continuing operations	$	23	$	18	$	4	$	45
Total assets	$	14,560	$	4,949	$	2,152	$	21,661