Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Company’s segments reflect the internal reporting the chief operating decision maker uses to evaluate operating performance and are based upon the Company’s organizational structure, which focuses primarily on the services offered. A brief description of our current business segments is as follows:

Servicing: This 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.

Originations: This 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/Other: Functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, or headcount percentage for shared services. During the fourth quarter of 2022, the Company began allocating shared services based on headcount instead of an estimate of percentage use as it changed its segment measures provided to and used by the chief operating decision maker. As a result, all costs for shared services are allocated to individual segments based on headcount. The Company restated segment information for the historical periods presented herein to reflect the allocation method change and to conform to the current presentation. The change affects total expenses for Servicing and Originations segments and Corporate/Other, but had no effect on condensed consolidated statements of operations. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to the Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. Eliminations are included in Corporate/Other.

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 March 31, 2023
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	231	$	11	$	19	$	261
Net gain on mortgage loans held for sale	—		69		—		69
Total revenues	231		80		19		330
Total expenses	153		56		52		261
Interest income	79		6		—		85
Interest expense	(63)		(7)		(40)		(110)
Other expense, net	—		—		(9)		(9)
Total other income (expenses), net	16		(1)		(49)		(34)
Income (loss) before income tax expense (benefit)	$	94	$	23	$	(82)	$	35
Depreciation and amortization for property and equipment and intangible assets	$	2	$	2	$	5	$	9
Total assets	$	10,050	$	760	$	1,847	$	12,657

	Three Months Ended March 31, 2022
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	701	$	42	$	12	$	755
Net gain on mortgage loans held for sale	15		282		—		297
Total revenues	716		324		12		1,052
Total expenses	122		174		42		338
Interest income	19		17		—		36
Interest expense	(54)		(12)		(40)		(106)
Other income, net	—		—		222		222
Total other (expenses) income, net	(35)		5		182		152
Income before income tax expense	$	559	$	155	$	152	$	866
Depreciation and amortization for property and equipment and intangible assets	$	5	$	4	$	2	$	11
Total assets	$	9,825	$	2,666	$	1,999	$	14,490