Segment Information

6 Months Ended

Jun. 30, 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 recast 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.

The following tables present financial information by segment:

	Three Months Ended June 30, 2023
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	365	$	16	$	21	$	402
Net gain on mortgage loans held for sale	3		81		—		84
Total revenues	368		97		21		486
Total expenses	159		59		60		278
Interest income	107		10		—		117
Interest expense	(73)		(10)		(39)		(122)
Other expense, net	—		—		(5)		(5)
Total other income (expenses), net	34		—		(44)		(10)
Income (loss) before income tax expense (benefit)	$	243	$	38	$	(83)	$	198
Depreciation and amortization for property and equipment and intangible assets	$	3	$	2	$	4	$	9
Total assets	$	10,231	$	1,086	$	1,827	$	13,144

	Three Months Ended June 30, 2022
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	414	$	24	$	22	$	460
Net (loss) gain on mortgage loans held for sale	(19)		158		—		139
Total revenues	395		182		22		599
Total expenses	143		125		60		328
Interest income	35		15		—		50
Interest expense	(61)		(10)		(40)		(111)
Other expense, net	—		—		(5)		(5)
Total other (expenses) income, net	(26)		5		(45)		(66)
Income (loss) before income tax expense (benefit)	$	226	$	62	$	(83)	$	205
Depreciation and amortization for property and equipment and intangible assets	$	5	$	5	$	(1)	$	9
Total assets	$	9,645	$	1,381	$	1,869	$	12,895