Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

16. Segment Information

The Company’s segments reflect the internal reporting the Company 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 the Company’s 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, the Company expanded its special servicing and subservicing offerings with the acquisition of Rushmore Loan Management Services LLC.

Originations: This segment originates residential mortgage loans through the direct-to-consumer channel, which provides refinance options for the Company’s existing customers, and through the 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 June 30, 2024
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	446	$	19	$	20	$	485
Net gain on mortgage loans held for sale	10		88		—		98
Total revenues	456		107		20		583
Total expenses	171		69		60		300
Interest income	174		15		—		189
Interest expense	(105)		(15)		(67)		(187)
Other expenses, net	—		—		(8)		(8)
Total other income (expenses), net	69		—		(75)		(6)
Income (loss) before income tax expense (benefit)	$	354	$	38	$	(115)	$	277
Depreciation and amortization for property and equipment and intangible assets	$	2	$	1	$	5	$	8
Total assets	$	12,759	$	1,398	$	1,626	$	15,783

	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 expenses, 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

	Six Months Ended June 30, 2024
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	886	$	35	$	42	$	963
Net gain on mortgage loans held for sale	20		164		—		184
Total revenues	906		199		42		1,147
Total expenses	356		131		130		617
Interest income	320		27		—		347
Interest expense	(203)		(25)		(129)		(357)
Other expenses, net	—		—		(11)		(11)
Total other income (expenses), net	117		2		(140)		(21)
Income (loss) before income tax expense (benefit)	$	667	$	70	$	(228)	$	509
Depreciation and amortization for property and equipment and intangible assets	$	5	$	2	$	9	$	16
Total assets	$	12,759	$	1,398	$	1,626	$	15,783

	Six Months Ended June 30, 2023
Financial Information by Segment	Servicing		Originations		Corporate/Other		Consolidated
Revenues
Service related, net	$	596	$	27	$	40	$	663
Net gain on mortgage loans held for sale	3		150		—		153
Total revenues	599		177		40		816
Total expenses	312		115		112		539
Interest income	186		16		—		202
Interest expense	(136)		(17)		(79)		(232)
Other expenses, net	—		—		(14)		(14)
Total other income (expenses), net	50		(1)		(93)		(44)
Income (loss) before income tax expense (benefit)	$	337	$	61	$	(165)	$	233
Depreciation and amortization for property and equipment and intangible assets	$	5	$	4	$	9	$	18
Total assets	$	10,231	$	1,086	$	1,827	$	13,144