Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Company’s segments reflect the internal reporting we use 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. In the third quarter of 2023, we expanded our special servicing and subservicing offerings with the acquisition of Rushmore Loan Management Services LLC.

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. 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 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 March 31, 2024
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	440	$	16	$	22	$	478
Net gain on mortgage loans held for sale	10		76		—		86
Total revenues	450		92		22		564
Total expenses	185		62		70		317
Interest income	146		12		—		158
Interest expense	(98)		(10)		(62)		(170)
Other expenses, net	—		—		(3)		(3)
Total other income (expenses), net	48		2		(65)		(15)
Income (loss) before income tax expense (benefit)	$	313	$	32	$	(113)	$	232
Depreciation and amortization for property and equipment and intangible assets	$	3	$	1	$	4	$	8
Total assets	$	12,187	$	973	$	1,615	$	14,775

	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 expenses, 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