☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the fiscal year ended | December 31, 2021 | |||||||
or | ||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||
For the transition period from to |
Delaware | 45-3449660 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
1345 Avenue of the Americas | New York | NY | 10105 | |||||||||||
(Address of principal executive offices) | (Zip Code) |
(212) | 798-3150 | ||||
(Registrant’s telephone number, including area code) |
Title of each class: | Name of each exchange on which registered: | |||||||
Common Stock, $0.01 par value per share | NRZ | New York Stock Exchange | ||||||
7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | NRZ PR A | New York Stock Exchange | ||||||
7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | NRZ PR B | New York Stock Exchange | ||||||
6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock | NRZ PR C | New York Stock Exchange | ||||||
7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock | NRZ PR D | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | ||||||||||||
Smaller reporting company | ☐ | Emerging growth company | ☐ |
NEW RESIDENTIAL INVESTMENT CORP. | ||||||||||||||
FORM 10-K | ||||||||||||||
INDEX | ||||||||||||||
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Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | 8,829,598 | $ | 5,439,613 | $ | 2,776,078 | $ | 17,045,289 | $ | 9,396,539 | $ | 3,099,294 | $ | 507,291 | $ | 1,515,762 | $ | — | $ | 31,564,175 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 587,685 | 250,294 | 288,900 | 1,126,879 | 197,559 | 22 | 1,437 | 5,653 | 1,025 | 1,332,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 32,803 | 95,785 | 27,182 | 155,770 | 15,342 | 2,482 | 21,961 | — | 312 | 195,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 969,338 | 2,728,253 | 1,926,482 | 5,624,073 | 389,309 | 125,647 | 39,662 | 106,615 | 279,068 | 6,564,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,431,260 | $ | 8,526,485 | $ | 5,023,734 | $ | 23,981,479 | $ | 9,998,749 | $ | 3,227,445 | $ | 570,351 | $ | 1,683,761 | $ | 280,405 | $ | 39,742,190 | ||||||||||||||||||||||||||||||||||||||||||
Debt | $ | 8,251,702 | $ | 4,131,297 | $ | 3,561,342 | $ | 15,944,341 | $ | 9,040,309 | $ | 2,440,693 | $ | 460,314 | $ | 1,252,660 | $ | 642,670 | $ | 29,780,987 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 425,582 | 2,323,315 | 182,460 | 2,931,357 | 6,991 | 179,260 | 583 | 8,541 | 165,091 | 3,291,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 8,677,284 | 6,454,612 | 3,743,802 | 18,875,698 | 9,047,300 | 2,619,953 | 460,897 | 1,261,201 | 807,761 | 33,072,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 1,753,976 | 2,071,873 | 1,279,932 | 5,105,781 | 951,449 | 607,492 | 109,454 | 422,560 | (527,356) | 6,669,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 15,683 | — | 10,251 | 25,934 | — | — | 39,414 | — | — | 65,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total New Residential stockholders’ equity | 1,738,293 | 2,071,873 | 1,269,681 | 5,079,847 | 951,449 | 607,492 | 70,040 | 422,560 | (527,356) | 6,604,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | — | $ | — | $ | 105,592 | $ | 105,592 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 105,592 |
Function | Number of Employees | |||||||
Origination | 8,281 | |||||||
Servicing | 2,955 | |||||||
Services businesses | 565 | |||||||
Corporate | 495 | |||||||
Total | 12,296 |
Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
Index | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||||
New Residential Investment Corp. | $ | 100.0 | $ | 127.0 | $ | 113.8 | $ | 146.3 | $ | 96.0 | $ | 112.3 | ||||||||||||||||||||||||||
NAREIT All REIT | 100.0 | 108.2 | 103.8 | 133.6 | 126.8 | 179.1 | ||||||||||||||||||||||||||||||||
Russell 2000 | 100.0 | 113.9 | 101.4 | 127.2 | 152.5 | 175.1 | ||||||||||||||||||||||||||||||||
NAREIT Mortgage REIT | 100.0 | 117.7 | 114.6 | 139.0 | 113.1 | 130.7 | ||||||||||||||||||||||||||||||||
S&P 500 | 100.0 | 120.8 | 115.5 | 151.8 | 179.8 | 231.3 |
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options | Weighted Average Exercise Price of Outstanding Options | Number of Securities Remaining Available for Future Issuance Under the 2013 Equity Compensation Plan | |||||||||||||||||
Equity Compensation Plans Approved by Security Holders: | ||||||||||||||||||||
Nonqualified Stock Option and Incentive Award Plan | 38,463,857 | $ | 14.00 | 14,496,488 | ||||||||||||||||
Total | 38,463,857 | $ | 14.00 | 14,496,488 | (A) | |||||||||||||||
Equity Compensation Plans Not Approved by Security Holders: | ||||||||||||||||||||
None |
Three Months Ended | |||||||||||||||||||||||||||||
December 31, 2021(A) | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Real GDP | 6.9 | % | 2.3 | % | 6.7 | % | 6.3 | % | 4.5 | % |
December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
Unemployment rate | 3.9 | % | 4.7 | % | 5.9 | % | 6.0 | % | 6.7 | % |
December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
10-year U.S. Treasury rate | 1.5 | % | 1.5 | % | 1.5 | % | 1.7 | % | 0.9 | % | |||||||||||||||||||
30-year fixed mortgage rate | 3.1 | % | 2.9 | % | 3.0 | % | 3.1 | % | 2.7 | % |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | 8,829,598 | $ | 5,439,613 | $ | 2,776,078 | $ | 17,045,289 | $ | 9,396,539 | $ | 3,099,294 | $ | 507,291 | $ | 1,515,762 | $ | — | $ | 31,564,175 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 587,685 | 250,294 | 288,900 | 1,126,879 | 197,559 | 22 | 1,437 | 5,653 | 1,025 | 1,332,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 32,803 | 95,785 | 27,182 | 155,770 | 15,342 | 2,482 | 21,961 | — | 312 | 195,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 969,338 | 2,728,253 | 1,926,482 | 5,624,073 | 389,309 | 125,647 | 39,662 | 106,615 | 279,068 | 6,564,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,431,260 | $ | 8,526,485 | $ | 5,023,734 | $ | 23,981,479 | $ | 9,998,749 | $ | 3,227,445 | $ | 570,351 | $ | 1,683,761 | $ | 280,405 | $ | 39,742,190 | ||||||||||||||||||||||||||||||||||||||||||
Debt | $ | 8,251,702 | $ | 4,131,297 | $ | 3,561,342 | $ | 15,944,341 | $ | 9,040,309 | $ | 2,440,693 | $ | 460,314 | $ | 1,252,660 | $ | 642,670 | $ | 29,780,987 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 425,582 | 2,323,315 | 182,460 | 2,931,357 | 6,991 | 179,260 | 583 | 8,541 | 165,091 | 3,291,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 8,677,284 | 6,454,612 | 3,743,802 | 18,875,698 | 9,047,300 | 2,619,953 | 460,897 | 1,261,201 | 807,761 | 33,072,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 1,753,976 | 2,071,873 | 1,279,932 | 5,105,781 | 951,449 | 607,492 | 109,454 | 422,560 | (527,356) | 6,669,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 15,683 | — | 10,251 | 25,934 | — | — | 39,414 | — | — | 65,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total New Residential stockholders’ equity | $ | 1,738,293 | $ | 2,071,873 | $ | 1,269,681 | $ | 5,079,847 | $ | 951,449 | $ | 607,492 | $ | 70,040 | $ | 422,560 | $ | (527,356) | $ | 6,604,032 | ||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | — | $ | — | $ | 105,592 | $ | 105,592 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 105,592 |
Unpaid Principal Balance for the Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||||||||||||||
(in millions) | 2021 | % of Total | 2020 | % of Total | Amount | % | |||||||||||||||||||||||||||||
Production by Channel | |||||||||||||||||||||||||||||||||||
Direct to Consumer | $ | 25,182 | 20% | $ | 12,847 | 21% | $ | 12,335 | 96 | % | |||||||||||||||||||||||||
Retail / Joint Venture | 16,781 | 14% | 3,999 | 6% | 12,782 | 320 | % | ||||||||||||||||||||||||||||
Wholesale | 16,189 | 13% | 7,223 | 12% | 8,966 | 124 | % | ||||||||||||||||||||||||||||
Correspondent | 65,136 | 53% | 37,535 | 61% | 27,601 | 74 | % | ||||||||||||||||||||||||||||
Total Production by Channel | $ | 123,288 | 100% | $ | 61,604 | 100% | $ | 61,684 | 100 | % | |||||||||||||||||||||||||
Production by Product | |||||||||||||||||||||||||||||||||||
Agency | $ | 88,272 | 72% | 40,424 | 66% | 47,848 | 118 | % | |||||||||||||||||||||||||||
Government | 32,380 | 26% | 20,279 | 33% | 12,101 | 60 | % | ||||||||||||||||||||||||||||
Non-QM | 603 | 1% | 365 | —% | 238 | 65 | % | ||||||||||||||||||||||||||||
Non-Agency | 1,690 | 1% | 454 | 1% | 1,236 | 272 | % | ||||||||||||||||||||||||||||
Other | 343 | —% | 82 | —% | 261 | 318 | % | ||||||||||||||||||||||||||||
Total Production by Product | $ | 123,288 | 100% | $ | 61,604 | 100% | $ | 61,684 | 100 | % | |||||||||||||||||||||||||
% Purchase | 42 | % | 29 | % | |||||||||||||||||||||||||||||||
% Refinance | 58 | % | 71 | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net(A)(B)(C)(D) | $ | 1,704,363 | $ | 1,289,584 | $ | 414,779 | 32.2 | % | |||||||||||||||
Pull through adjusted lock volume | $ | 112,644,932 | $ | 69,795,637 | $ | 42,849,295 | 61.4 | % | |||||||||||||||
Gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume, by channel: | |||||||||||||||||||||||
Direct to Consumer | 3.97 | % | 3.61 | % | |||||||||||||||||||
Retail / Joint Venture | 3.66 | % | 4.57 | % | |||||||||||||||||||
Wholesale | 1.09 | % | 2.38 | % | |||||||||||||||||||
Correspondent | 0.28 | % | 0.56 | % | |||||||||||||||||||
Total gain on originated residential mortgage loans, as a percentage of pull through adjusted lock volume | 1.51 | % | 1.85 | % |
Unpaid Principal Balance as of December 31, | Increase (Decrease) | ||||||||||||||||||||||
(in millions) | 2021 | 2020 | Amount | % | |||||||||||||||||||
Performing Servicing | |||||||||||||||||||||||
MSR Assets | $ | 376,218 | $ | 199,405 | $ | 176,813 | 88.7 | % | |||||||||||||||
Residential Whole Loans | 7,539 | 5,041 | 2,498 | 49.6 | % | ||||||||||||||||||
Third Party | 509 | — | 509 | 100.0 | % | ||||||||||||||||||
Total Performing Servicing | 384,266 | 204,446 | 179,820 | 88.0 | % | ||||||||||||||||||
Special Servicing | |||||||||||||||||||||||
MSR Assets | $ | 13,634 | $ | 21,475 | $ | (7,841) | (36.5) | % | |||||||||||||||
Residential Whole Loans | 6,558 | 4,952 | 1,606 | 32.4 | % | ||||||||||||||||||
Third Party | 78,305 | 66,892 | 11,413 | 17.1 | % | ||||||||||||||||||
Total Special Servicing | 98,497 | 93,319 | 5,178 | 5.5 | % | ||||||||||||||||||
Total Servicing Portfolio | $ | 482,763 | $ | 297,765 | $ | 184,998 | 62.1 | % | |||||||||||||||
Agency Servicing | |||||||||||||||||||||||
MSR Assets | $ | 272,919 | $ | 157,210 | $ | 115,709 | 73.6 | % | |||||||||||||||
Third Party | 11,027 | 15,566 | (4,539) | (29.2) | % | ||||||||||||||||||
Total Agency Servicing | 283,946 | 172,776 | 111,170 | 64.3 | % | ||||||||||||||||||
Government Servicing | |||||||||||||||||||||||
MSR Assets | $ | 109,577 | $ | 57,148 | $ | 52,429 | 91.7 | % | |||||||||||||||
Total Government Servicing | 109,577 | 57,148 | 52,429 | 91.7 | % | ||||||||||||||||||
Non-Agency (Private Label) Servicing | |||||||||||||||||||||||
MSR Assets | $ | 7,356 | $ | 6,522 | $ | 834 | 12.8 | % | |||||||||||||||
Residential Whole Loans | 14,097 | 9,993 | 4,104 | 41.1 | % | ||||||||||||||||||
Third Party | 67,787 | 51,326 | 16,461 | 32.1 | % | ||||||||||||||||||
Total Non-Agency (Private Label) Servicing | 89,240 | 67,841 | 21,399 | 31.5 | % | ||||||||||||||||||
Total Servicing Portfolio | $ | 482,763 | $ | 297,765 | $ | 184,998 | 62.1 | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | Amount | % | |||||||||||||||||||
Base Servicing Fees | |||||||||||||||||||||||
MSR Assets | $ | 731,924 | $ | 611,669 | $ | 120,255 | 19.7 | % | |||||||||||||||
Residential Whole Loans | 16,448 | 16,081 | 367 | 2.3 | % | ||||||||||||||||||
Third Party | 103,617 | 139,480 | (35,863) | (25.7) | % | ||||||||||||||||||
Total Base Servicing Fees | 851,989 | 767,230 | 84,759 | 11.0 | % | ||||||||||||||||||
Other Fees | |||||||||||||||||||||||
Incentive fees | 85,789 | 53,195 | 32,594 | 61.3 | % | ||||||||||||||||||
Ancillary fees | 49,900 | 41,076 | 8,824 | 21.5 | % | ||||||||||||||||||
Boarding fees | 9,720 | 12,018 | (2,298) | (19.1) | % | ||||||||||||||||||
Other fees | 28,490 | 17,672 | 10,818 | 61.2 | % | ||||||||||||||||||
Total Other Fees(A) | 173,899 | 123,961 | 49,938 | 40.3 | % | ||||||||||||||||||
Total Servicing Fees | $ | 1,025,888 | $ | 891,191 | $ | 134,697 | 15.1 | % |
Current UPB (millions) | Weighted Average MSR (bps) | Carrying Value (millions) | ||||||||||||||||||
GSE | $ | 374,815.6 | 28 | bps | $ | 4,443.7 | ||||||||||||||
Non-Agency | 63,851.1 | 48 | 943.2 | |||||||||||||||||
Ginnie Mae | 109,946.4 | 39 | 1,471.9 | |||||||||||||||||
Total | $ | 548,613.1 | 33 | bps | $ | 6,858.8 |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GSE | $ | 4,443,713 | $ | 374,815,579 | 2,074,565 | 755 | 3.6 | % | 280 | 49 | 1.6 | % | 18.4 | % | 16.9 | % | 0.1 | % | 19.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency | 943,210 | 63,851,154 | 576,559 | 639 | 4.3 | % | 292 | 183 | 10.6 | % | 13.3 | % | 11.6 | % | 1.6 | % | 4.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Ginnie Mae | 1,471,880 | 109,946,356 | 489,760 | 698 | 3.2 | % | 333 | 23 | 0.8 | % | 18.2 | % | 11.2 | % | 0.1 | % | 26.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,858,803 | $ | 548,613,089 | 3,140,884 | 730 | 3.6 | % | 292 | 59 | 2.5 | % | 17.8 | % | 15.2 | % | 0.3 | % | 19.1 | % |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||
Delinquency 30 Days(F) | Delinquency 60 Days(F) | Delinquency 90+ Days(F) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||
GSE | 0.9 | % | 0.2 | % | 1.4 | % | 0.1 | % | — | % | 0.1 | % | |||||||||||||||||||||||
Non-Agency | 7.2 | % | 2.8 | % | 6.0 | % | 5.1 | % | 0.8 | % | 2.3 | % | |||||||||||||||||||||||
Ginnie Mae | 2.6 | % | 0.8 | % | 2.6 | % | 0.2 | % | — | % | 0.4 | % | |||||||||||||||||||||||
Total | 2.0 | % | 0.6 | % | 2.1 | % | 0.7 | % | 0.1 | % | 0.4 | % |
MSR Component(A) | Excess MSR | ||||||||||||||||||||||||||||
Current UPB (billions) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | Interest in Excess MSR (%) | Carrying Value (millions) | |||||||||||||||||||||||||
Agency | $ | 26.9 | 29 | 21 | 32.5% - 66.7% | $ | 132.0 | ||||||||||||||||||||||
Non-Agency(B) | 30.6 | 35 | 15 | 33.3% - 100% | 127.2 | ||||||||||||||||||||||||
Total/Weighted Average | $ | 57.5 | 32 | bps | 18 | bps | $ | 259.2 |
MSR Component(A) | ||||||||||||||||||||||||||||||||||||||||||||
Current UPB (billions) | Weighted Average MSR (bps) | Weighted Average Excess MSR (bps) | New Residential Interest in Investee (%) | Investee Interest in Excess MSR (%) | New Residential Effective Ownership (%) | Investee Carrying Value (millions) | ||||||||||||||||||||||||||||||||||||||
Agency | $ | 23.0 | 33 | 22 | 50.0 | % | 66.7 | % | 33.3 | % | $ | 152.4 |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 75,867 | $ | 16,569.671 | 141,862 | 731 | 4.5 | % | 225 | 144 | 1.5 | % | 22.3 | % | 21.8 | % | 0.7 | % | 21.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recaptured Loans | 56,130 | 10,287.275 | 64,927 | 737 | 3.9 | % | 262 | 49 | — | % | 23.1 | % | 22.8 | % | 0.4 | % | 40.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 131,997 | $ | 26,856.946 | 206,789 | 733 | 4.3 | % | 240 | 106 | 0.9 | % | 22.6 | % | 22.2 | % | 0.6 | % | 28.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(F) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 102,505 | $ | 26,903.742 | 157,134 | 680 | 4.2 | % | 268 | 189 | 8.5 | % | 17.8 | % | 16.4 | % | 1.8 | % | 15.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Recaptured Loans | 24,696 | 3,661.489 | 17,524 | 743 | 3.6 | % | 273 | 29 | — | % | 21.4 | % | 21.4 | % | — | % | 43.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 127,201 | $ | 30,565.231 | 174,658 | 687 | 4.1 | % | 268 | 171 | 6.8 | % | 18.2 | % | 16.9 | % | 1.6 | % | 19.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average(I) | $ | 259,198 | $ | 57,422.177 | 381,447 | 708 | 4.2 | % | 255 | 141 | 3.8 | % | 20.2 | % | 19.3 | % | 1.1 | % | 24.2 | % |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||
Delinquency 30 Days(G) | Delinquency 60 Days(G) | Delinquency 90+ Days(G) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||
Original Pools | 2.0 | % | 0.6 | % | 3.6 | % | 0.5 | % | 0.1 | % | 0.1 | % | |||||||||||||||||||||||
Recaptured Loans | 1.3 | % | 0.4 | % | 2.4 | % | 0.1 | % | — | % | — | % | |||||||||||||||||||||||
1.7 | % | 0.5 | % | 3.1 | % | 0.3 | % | 0.1 | % | 0.1 | % | ||||||||||||||||||||||||
Non-Agency(F) | |||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||
Original Pools | 11.5 | % | 3.7 | % | 4.6 | % | 5.2 | % | 0.4 | % | 1.4 | % | |||||||||||||||||||||||
Recaptured Loans | 1.2 | % | 0.2 | % | 1.4 | % | — | % | — | % | — | % | |||||||||||||||||||||||
10.3 | % | 3.3 | % | 4.2 | % | 4.7 | % | 0.3 | % | 1.3 | % | ||||||||||||||||||||||||
Total/Weighted Average(H) | 6.4 | % | 2.0 | % | 3.7 | % | 2.7 | % | 0.2 | % | 0.7 | % |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Carrying Amount | Current Principal Balance | New Residential Effective Ownership (%) | Number of Loans | WA FICO Score(A) | WA Coupon | WA Maturity (months) | Average Loan Age (months) | Adjustable Rate Mortgage %(B) | Three Month Average CPR(C) | Three Month Average CRR(D) | Three Month Average CDR(E) | Three Month Average Recapture Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original Pools | $ | 65,682 | $ | 11,718,462 | 33.3 | % | 132,308 | 716 | 5.1 | % | 216 | 163 | 1.2 | % | 21.1 | % | 19.7 | % | 1.8 | % | 24.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recaptured Loans | 86,701 | 11,320,991 | 33.3 | % | 86,543 | 722 | 3.9 | % | 257 | 58 | — | % | 22.9 | % | 22.5 | % | 0.8 | % | 45.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 152,383 | $ | 23,039,453 | 218,851 | 719 | 4.5 | % | 236 | 112 | 1.2 | % | 22.1 | % | 21.0 | % | 1.3 | % | 35.4 | % |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||
Delinquency 30 Days(F) | Delinquency 60 Days(F) | Delinquency 90+ Days(F) | Loans in Foreclosure | Real Estate Owned | Loans in Bankruptcy | ||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||
Original Pools | 2.8 | % | 0.7 | % | 3.5 | % | 0.7 | % | 0.2 | % | 0.2 | % | |||||||||||||||||||||||
Recaptured Loans | 1.8 | % | 0.5 | % | 2.6 | % | 0.1 | % | — | % | 0.1 | % | |||||||||||||||||||||||
Total/Weighted Average(G) | 2.3 | % | 0.6 | % | 3.1 | % | 0.4 | % | 0.1 | % | 0.1 | % |
December 31, 2021 | |||||||||||||||||||||||||||||
Amortized Cost Basis | Carrying Value(A) | UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | |||||||||||||||||||||||||
Servicer Advance Investments | |||||||||||||||||||||||||||||
Mr. Cooper and SLS serviced pools | $ | 405,786 | $ | 421,807 | $ | 20,314,977 | $ | 369,440 | 1.8 | % |
Year Ended December 31, 2021 | Loan-to-Value (“LTV”)(A) | Cost of Funds(B) | ||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Discount Rate | Weighted Average Life (Years)(C) | Change in Fair Value | Face Amount of Secured Notes and Bonds Payable | Gross | Net(D) | Gross | Net | |||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(E) | 5.2 | % | 6.9 | $ | (9,076) | $ | 356,580 | 91.4 | % | 90.7 | % | 1.7 | % | 1.2 | % |
December 31, 2021 | ||||||||
Principal and interest advances | $ | 67,014 | ||||||
Escrow advances (taxes and insurance advances) | 174,681 | |||||||
Foreclosure advances | 127,745 | |||||||
Total | $ | 369,440 |
Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Count | Weighted Average Life (Years) | 3-Month CPR(B) | Outstanding Repurchase Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 8,399,343 | $ | 8,663,694 | 100.0 | % | $ | 7,212 | $ | (226,309) | $ | 8,444,597 | 41 | 6.9 | 17.8 | % | $ | 8,386,538 | ||||||||||||||||||||||||||||||||||||||||||||
Net Interest Spread(A) | ||||||||
Weighted Average Asset Yield | 2.14 | % | ||||||
Weighted Average Funding Cost | 0.16 | % | ||||||
Net Interest Spread | 1.98 | % |
Gross Unrealized | ||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Gains | Losses | Carrying Value(A) | Outstanding Repurchase Agreements | ||||||||||||||||||||||||||||||||
Non-Agency RMBS | $ | 15,914,957 | $ | 886,643 | $ | 117,308 | $ | (52,009) | $ | 951,942 | $ | 640,005 |
Non- Agency RMBS Characteristics(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vintage(B) | Average Minimum Rating(C) | Number of Securities | Outstanding Face Amount | Amortized Cost Basis | Percentage of Total Amortized Cost Basis | Carrying Value | Principal Subordination(D) | Excess Spread(E) | Weighted Average Life (Years) | Weighted Average Coupon(F) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre 2008 | NR | 121 | $ | 449,215 | $ | 17,766 | 2.0 | % | $ | 24,239 | — | % | — | % | 4.1 | 5.5 | % | |||||||||||||||||||||||||||||||||||||||||||||
2008 and later | BBB | 480 | 15,462,368 | 866,367 | 98.0 | % | 924,306 | 25.2 | % | 0.2 | % | 3.3 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | BBB- | 601 | $ | 15,911,583 | $ | 884,133 | 100.0 | % | $ | 948,545 | 24.6 | % | 0.2 | % | 3.3 | 2.7 | % |
Collateral Characteristics(A) (G) | ||||||||||||||||||||||||||||||||
Vintage(B) | Average Loan Age (years) | Collateral Factor(H) | 3-Month CPR(I) | Delinquency(J) | Cumulative Losses to Date | |||||||||||||||||||||||||||
Pre 2008 | 13.9 | 0.1 | 10.0 | % | 10.0 | % | 10.0 | % | ||||||||||||||||||||||||
2008 and later | 13.3 | 0.6 | 20.8 | % | 4.1 | % | 0.7 | % | ||||||||||||||||||||||||
Total/Weighted Average | 13.3 | 0.6 | 20.6 | % | 4.2 | % | 0.8 | % |
Net Interest Spread(A) | |||||
Weighted Average Asset Yield | 3.55 | % | |||
Weighted Average Funding Cost | 2.43 | % | |||
Net Interest Spread | 1.12 | % |
Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | ||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value(B) | $ | 623,937 | $ | 569,933 | 9,718 | 7.1 | % | 5.1 | ||||||||||||||||||||||||
Acquired performing loans(C) | 142,142 | 130,634 | 2,839 | 6.6 | % | 4.6 | ||||||||||||||||||||||||||
Acquired non-performing loans(D) | 2,825 | 2,287 | 34 | 7.5 | % | 4.7 | ||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 144,967 | $ | 132,921 | 2,873 | 6.6 | % | 4.6 | ||||||||||||||||||||||||
Acquired performing loans(C)(E) | $ | 2,046,945 | $ | 2,070,262 | 12,757 | 3.5 | % | 12.4 | ||||||||||||||||||||||||
Acquired non-performing loans(D)(E) | 343,133 | 315,063 | 2,249 | 4.8 | % | 6.1 | ||||||||||||||||||||||||||
Originated loans | 8,565,456 | 8,829,599 | 12,479 | 3.2 | % | 28.0 | ||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value | $ | 10,955,534 | $ | 11,214,924 | 27,485 | 3.3 | % | 24.4 |
Collateral Characteristics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UPB | Personal Unsecured Loans % | Personal Homeowner Loans % | Number of Loans | Weighted Average Original FICO Score(A) | Weighted Average Coupon | Adjustable Rate Loan % | Average Loan Age (months) | Average Expected Life (Years) | Delinquency 30 Days(B) | Delinquency 60 Days(B) | Delinquency 90+ Days(B) | 12-Month CRR(C) | 12-Month CDR(D) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans, held-for-investment | $ | 449,875 | 58.1 | % | 41.9 | % | 70,850 | 690 | 17.6 | % | 13.0 | % | 203 | 3.2 | 1.4 | % | 0.8 | % | 1.5 | % | 23.1 | % | 4.1 | % |
Number of SFR Properties | % of Total SFR Properties | Gross Book Value | % of Total Gross Book Value | Average Gross Book Value per Property | Average Sq. Ft. | ||||||||||||||||||||||||||||||
Alabama | 75 | 2.9 | % | $ | 13,517 | 2.3 | % | $ | 180 | 1,555 | |||||||||||||||||||||||||
Arizona | 52 | 2.0 | % | 18,145 | 3.1 | % | 349 | 1,527 | |||||||||||||||||||||||||||
Florida | 619 | 24.3 | % | 149,522 | 25.8 | % | 242 | 1,442 | |||||||||||||||||||||||||||
Georgia | 558 | 21.9 | % | 116,437 | 20.1 | % | 209 | 1,792 | |||||||||||||||||||||||||||
Indiana | 97 | 3.8 | % | 18,732 | 3.2 | % | 193 | 1,592 | |||||||||||||||||||||||||||
Mississippi | 96 | 3.8 | % | 16,669 | 2.9 | % | 174 | 1,658 | |||||||||||||||||||||||||||
Missouri | 280 | 11.0 | % | 50,437 | 8.7 | % | 180 | 1,503 | |||||||||||||||||||||||||||
Nevada | 66 | 2.6 | % | 18,167 | 3.1 | % | 275 | 1,400 | |||||||||||||||||||||||||||
North Carolina | 289 | 11.3 | % | 78,994 | 13.6 | % | 273 | 1,488 | |||||||||||||||||||||||||||
Oklahoma | 15 | 0.6 | % | 3,040 | 0.5 | % | 203 | 1,714 | |||||||||||||||||||||||||||
Tennessee | 64 | 2.5 | % | 20,314 | 3.5 | % | 317 | 1,462 | |||||||||||||||||||||||||||
Texas | 319 | 12.5 | % | 72,560 | 12.5 | % | 227 | 1,685 | |||||||||||||||||||||||||||
Other U.S. | 21 | 0.8 | % | 3,073 | 0.7 | % | 146 | 1,568 | |||||||||||||||||||||||||||
Total/Average | 2,551 | 100.0 | % | $ | 579,607 | 100.0 | % | $ | 228 | 1,582 |
Loans originated(A) | $ | 2,132,386 | |||
Loans repaid(A)(B) | $ | 1,451,633 | |||
Number of loans originated | 2,276 | ||||
Unpaid principal balance | $ | 1,473,894 | |||
Total commitment | $ | 2,013,307 | |||
Average total commitment | $ | 1,375 | |||
Weighted average contractual interest(C) | 7.2 | % |
Number of Loans | % | Total Commitment | % | Weighted Average Committed Loan Balance to Value(A) | ||||||||||||||||||||||||||||
Construction | 486 | 33.2 | % | $ | 1,082,893 | 53.8 | % | 75.6% / 65.0% | ||||||||||||||||||||||||
Bridge | 632 | 43.2 | % | 700,437 | 34.8 | % | 73.8 | % | ||||||||||||||||||||||||
Renovation | 346 | 23.6 | % | 229,977 | 11.4 | % | 78.5% / 67.1% | |||||||||||||||||||||||||
1,464 | 100.0 | % | $ | 2,013,307 | 100.0 | % |
Number of Loans | % | Total Commitment | % | |||||||||||||||||||||||
California | 640 | 43.7 | % | $ | 1,186,460 | 58.9 | % | |||||||||||||||||||
Washington | 151 | 10.3 | % | 245,496 | 12.2 | % | ||||||||||||||||||||
New York | 36 | 2.5 | % | 112,846 | 5.6 | % | ||||||||||||||||||||
Other U.S. | 637 | 43.5 | % | 468,505 | 23.3 | % | ||||||||||||||||||||
1,464 | 100.0 | % | $ | 2,013,307 | 100.0 | % |
MTM Assets | OCI Assets | Cost Assets | ||||||||||||
Real estate and other securities accounted for under the fair value option | Real estate and other securities, available-for-sale | Residential mortgage loans, held-for-sale, at lower of cost or fair value | ||||||||||||
Excess MSRs | Single-family rental properties | |||||||||||||
Excess MSRs, equity method investees | Real estate owned (REO) | |||||||||||||
MSRs and MSR financing receivables | Servicer advances receivable | |||||||||||||
Servicer advance investments | Trades receivable | |||||||||||||
Certain assets within Other assets, primarily derivatives and equity investments | Deferred tax asset, net | |||||||||||||
Residential mortgage loans, held-for-sale at fair value | Other assets, except as described above | |||||||||||||
Residential mortgage loans, held-for-investment, at fair value | ||||||||||||||
Consumer loans | ||||||||||||||
Mortgage loans receivable |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 1,559,554 | $ | 1,642,272 | $ | (82,718) | (5.0) | % | |||||||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,192,646) and $(1,583,628), respectively) | (575,353) | (2,168,909) | 1,593,556 | (73.5) | % | ||||||||||||||||||
Servicing revenue, net | 984,201 | (526,637) | 1,510,838 | (286.9) | % | ||||||||||||||||||
Interest income | 810,896 | 794,965 | 15,931 | 2.0 | % | ||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 1,826,909 | 1,399,092 | 427,817 | 30.6 | % | ||||||||||||||||||
3,622,006 | 1,667,420 | 1,954,586 | 117.2 | % | |||||||||||||||||||
Expenses | |||||||||||||||||||||||
Interest expense and warehouse line fees | 497,308 | 584,469 | (87,161) | (14.9) | % | ||||||||||||||||||
General and administrative | 864,028 | 548,441 | 315,587 | 57.5 | % | ||||||||||||||||||
Compensation and benefits | 1,159,810 | 571,646 | 588,164 | 102.9 | % | ||||||||||||||||||
Management fee to affiliate | 95,926 | 89,134 | 6,792 | 7.6 | % | ||||||||||||||||||
2,617,072 | 1,793,690 | 823,382 | 45.9 | % | |||||||||||||||||||
Other income (loss) | |||||||||||||||||||||||
Change in fair value of investments | 11,723 | (148,758) | 160,481 | (107.9) | % | ||||||||||||||||||
Gain (loss) on settlement of investments, net | (234,561) | (930,131) | 695,570 | (74.8) | % | ||||||||||||||||||
Other income (loss), net | 133,968 | (11,997) | 145,965 | n/m | |||||||||||||||||||
(88,870) | (1,090,886) | 1,002,016 | (91.9) | % | |||||||||||||||||||
Impairment | |||||||||||||||||||||||
Provision (reversal) for credit losses on securities | (5,201) | 13,404 | (18,605) | (138.8) | % | ||||||||||||||||||
Valuation and credit loss provision (reversal) on loans and real estate owned | (42,543) | 110,208 | (152,751) | (138.6) | % | ||||||||||||||||||
(47,744) | 123,612 | (171,356) | (138.6) | % | |||||||||||||||||||
Income (loss) before income taxes | 963,808 | (1,340,768) | 2,304,576 | (171.9) | % | ||||||||||||||||||
Income tax expense (benefit) | 158,226 | 16,916 | 141,310 | 835.4 | % | ||||||||||||||||||
Net income (loss) | $ | 805,582 | $ | (1,357,684) | $ | 2,163,266 | (159.3) | % | |||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries | 33,356 | 52,674 | (19,318) | (36.7) | % | ||||||||||||||||||
Dividends on preferred stock | 66,744 | 54,295 | 12,449 | 22.9 | % | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 705,482 | $ | (1,464,653) | $ | 2,170,135 | (148.2) | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 1,446,509 | $ | 1,457,211 | $ | (10,702) | (0.7) | % | |||||||||||||||
Ancillary and other fees | 113,045 | 185,061 | (72,016) | (38.9) | % | ||||||||||||||||||
Servicing fee revenue and fees | 1,559,554 | 1,642,272 | (82,718) | (5.0) | % | ||||||||||||||||||
Change in fair value due to: | |||||||||||||||||||||||
Realization of cash flows | (1,192,646) | (1,583,628) | 390,982 | (24.7) | % | ||||||||||||||||||
Change in valuation inputs and assumptions(A) | 680,088 | (585,928) | 1,266,016 | (216.1) | % | ||||||||||||||||||
Change in fair value of derivative instruments | (30,481) | — | (30,481) | — | % | ||||||||||||||||||
(Gain) loss realized | 2,410 | 647 | 1,763 | 272.5 | % | ||||||||||||||||||
Gain (loss) on settlement of derivative instruments | (34,724) | — | (34,724) | — | % | ||||||||||||||||||
Servicing revenue, net | $ | 984,201 | $ | (526,637) | $ | 1,510,838 | (286.9) | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Changes in interest rates and prepayment rates | $ | 544,706 | $ | (544,340) | $ | 1,089,046 | (200.1) | % | |||||||||||||||
Changes in discount rates | 113,305 | 9,245 | 104,060 | 1125.6 | % | ||||||||||||||||||
Changes in other factors | 22,077 | (50,833) | 72,910 | (143.4) | % | ||||||||||||||||||
Change in valuation and assumptions | $ | 680,088 | $ | (585,928) | $ | 1,266,016 | (216.1) | % |
Unpaid Principal Balance | Increase (Decrease) | ||||||||||||||||||||||
(dollars in millions) | December 31, 2021 | December 31, 2020 | Amount | % | |||||||||||||||||||
GSE | $ | 374,815.6 | $ | 305,718.6 | $ | 69,097.0 | 22.6 | % | |||||||||||||||
Non-Agency | 63,851.1 | 72,610.4 | (8,759.3) | (12.1) | % | ||||||||||||||||||
Ginnie Mae | 109,946.4 | 57,106.8 | 52,839.6 | 92.5 | % | ||||||||||||||||||
Total | $ | 548,613.1 | $ | 435,435.8 | $ | 113,177.3 | 26.0 | % |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Direct to Consumer | 3.97 | % | 3.61 | % | |||||||
Retail / Joint Venture | 3.66 | % | 4.57 | % | |||||||
Wholesale | 1.09 | % | 2.38 | % | |||||||
Correspondent | 0.28 | % | 0.56 | % | |||||||
1.51 | % | 1.85 | % |
Unpaid Principal Balance for the Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||||||||||||||
(in millions) | 2021 | % of Total | 2020 | % of Total | Amount | % | |||||||||||||||||||||||||||||
Production by Channel | |||||||||||||||||||||||||||||||||||
Direct to Consumer | $ | 25,182 | 20% | $ | 12,847 | 21% | $ | 12,335 | 96 | % | |||||||||||||||||||||||||
Retail / Joint Venture | 16,781 | 14% | 3,999 | 6% | 12,782 | 320 | % | ||||||||||||||||||||||||||||
Wholesale | 16,189 | 13% | 7,223 | 12% | 8,966 | 124 | % | ||||||||||||||||||||||||||||
Correspondent | 65,136 | 53% | 37,535 | 61% | 27,601 | 74 | % | ||||||||||||||||||||||||||||
Total Production by Channel | $ | 123,288 | 100% | $ | 61,604 | 100% | $ | 61,684 | 100 | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Legal and professional | $ | 102,114 | $ | 70,502 | $ | 31,612 | 44.8 | % | |||||||||||||||
Loan origination | 196,989 | 92,081 | 104,908 | 113.9 | % | ||||||||||||||||||
Occupancy | 70,616 | 36,799 | 33,817 | 91.9 | % | ||||||||||||||||||
Subservicing | 224,138 | 201,444 | 22,694 | 11.3 | % | ||||||||||||||||||
Loan servicing | 16,440 | 14,126 | 2,314 | 16.4 | % | ||||||||||||||||||
Property and maintenance | 69,083 | 42,508 | 26,575 | 62.5 | % | ||||||||||||||||||
Other | 184,648 | 90,981 | 93,667 | 103.0 | % | ||||||||||||||||||
Total general and administrative expenses | $ | 864,028 | $ | 548,441 | $ | 315,587 | 57.5 | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Excess MSRs | $ | (15,078) | $ | (16,232) | $ | 1,154 | (7.1) | % | |||||||||||||||
Excess MSRs, equity method investees | 1,818 | (3,489) | 5,307 | (152.1) | % | ||||||||||||||||||
Servicer advance investments | (9,076) | 763 | (9,839) | n/m | |||||||||||||||||||
Real estate and other securities | (400,369) | 28,455 | (428,824) | n/m | |||||||||||||||||||
Residential mortgage loans | 155,758 | (107,604) | 263,362 | (244.8) | % | ||||||||||||||||||
Consumer loans | (20,133) | 2,816 | (22,949) | (815.0) | % | ||||||||||||||||||
Derivative instruments | 298,803 | (53,467) | 352,270 | (658.9) | % | ||||||||||||||||||
Change in fair value of investments | $ | 11,723 | $ | (148,758) | $ | 160,481 | (107.9) | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Sale of real estate securities | $ | (89,811) | $ | (753,713) | $ | 663,902 | (88.1) | % | |||||||||||||||
Sale of acquired residential mortgage loans | 120,680 | (5,662) | 126,342 | n/m | |||||||||||||||||||
Settlement of derivatives | (172,581) | (74,812) | (97,769) | 130.7 | % | ||||||||||||||||||
Liquidated residential mortgage loans | (5,946) | 4,644 | (10,590) | (228.0) | % | ||||||||||||||||||
Sale of REO | (6,622) | (21,925) | 15,303 | (69.8) | % | ||||||||||||||||||
Extinguishment of debt | (1,485) | (66,233) | 64,748 | (97.8) | % | ||||||||||||||||||
Other | (78,796) | (12,430) | (66,366) | 533.9 | % | ||||||||||||||||||
$ | (234,561) | $ | (930,131) | $ | 695,570 | (74.8) | % |
Year Ended December 31, | Increase (Decrease) | ||||||||||||||||||||||
2021 | 2020 | Amount | % | ||||||||||||||||||||
Unrealized gain (loss) on secured notes and bonds payable | $ | 12,991 | $ | (966) | $ | 13,957 | n/m | ||||||||||||||||
Unrealized gain (loss) on contingent consideration | (1,037) | (6,568) | 5,531 | (84.2) | % | ||||||||||||||||||
Unrealized gain (loss) on equity investments | 5,986 | (54,455) | 60,441 | (111.0) | % | ||||||||||||||||||
Gain (loss) on transfer of loans to REO | 3,752 | 7,945 | (4,193) | (52.8) | % | ||||||||||||||||||
Gain (loss) on transfer of loans to other assets | (9) | (939) | 930 | (99.0) | % | ||||||||||||||||||
Gain (loss) on Ocwen common stock | 2,181 | 3,235 | (1,054) | (32.6) | % | ||||||||||||||||||
Provision for servicing losses | (41,038) | (15,330) | (25,708) | 167.7 | % | ||||||||||||||||||
Bargain purchase gain | 6,024 | — | 6,024 | n/m | |||||||||||||||||||
Rental revenues | 13,750 | 2,422 | 11,328 | 467.7 | % | ||||||||||||||||||
Ancillary income | 53,358 | 22,987 | 30,371 | 132.1 | % | ||||||||||||||||||
Property and maintenance revenue | 104,797 | 70,527 | 34,270 | 48.6 | % | ||||||||||||||||||
Other income (loss) | (26,787) | (40,855) | 14,068 | (34.4) | % | ||||||||||||||||||
$ | 133,968 | $ | (11,997) | $ | 145,965 | n/m |
Number of Shares | Dividends Declared Per Share and Amount | |||||||||||||||||||||||||||||||||||||
December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
Series | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019 | 6,210 | 6,210 | $ | 1.88 | $ | 11,644 | $ | 1.88 | $ | 11,644 | ||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019 | 11,300 | 11,300 | 1.78 | 20,128 | 1.78 | 20,128 | ||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020 | 16,100 | 16,100 | 1.59 | 25,659 | 1.60 | 22,523 | ||||||||||||||||||||||||||||||||
Series D, 7.00%, issued September 2021 | 18,600 | — | 0.72 | 9,313 | — | — | ||||||||||||||||||||||||||||||||
Total | 52,210 | 33,610 | $ | 5.97 | $ | 66,744 | $ | 5.26 | $ | 54,295 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements(C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 10,135,658 | $ | 10,131,700 | Feb-22 to Sep-25 | 1.92 | % | 0.7 | $ | 10,904,545 | $ | 10,936,752 | $ | 10,977,338 | 23.0 | $ | 4,039,564 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facility-Mortgage Loans Receivable(g) | 1,252,660 | 1,252,660 | Dec-23 | 2.15 | % | 2.0 | 1,473,894 | 1,473,894 | 1,515,762 | 1.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS(D) | 8,386,538 | 8,386,538 | Jan-22 to Apr-22 | 0.16 | % | 0.1 | 8,396,800 | 8,661,005 | 8,442,009 | 6.9 | 12,682,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 656,874 | 656,874 | Jan-22 to Aug-22 | 2.43 | % | 0.1 | 13,370,966 | 869,226 | 924,948 | 3.3 | 817,209 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other(G)(H) | 165,112 | 165,112 | Mar-22 to Sep-25 | 2.95 | % | 1.0 | N/A | 234,501 | 230,062 | 4.4 | 8,480 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Financing Agreements | 20,596,842 | 20,592,884 | 1.25 | % | 0.6 | 17,547,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(I) | 237,835 | 237,835 | Aug-25 | 3.74 | % | 3.7 | 80,461,630 | 268,102 | 333,845 | 6.3 | 275,088 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(J) | 4,245,401 | 4,234,771 | Mar-22 to Dec-26 | 3.47 | % | 3.3 | 524,065,651 | 6,049,595 | 6,609,171 | 6.3 | 2,691,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(K) | 356,580 | 355,722 | Apr-22 to Dec-22 | 1.27 | % | 0.9 | 369,440 | 405,786 | 421,807 | 6.9 | 423,144 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(K) | 2,362,080 | 2,355,969 | Feb-22 to Nov-24 | 2.19 | % | 1.3 | 2,812,974 | 2,855,148 | 2,855,148 | 0.7 | 2,585,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(L) | 1,020,206 | 1,001,933 | Mar-23 to Jul-43 | 1.82 | % | 3.2 | 889,840 | 1,158,669 | 1,147,245 | 23.9 | 1,039,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(M) | 454,542 | 458,580 | Sep-37 | 2.05 | % | 8.6 | 449,713 | 461,026 | 507,242 | 3.3 | 628,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Notes and Bonds Payable | 8,676,644 | 8,644,810 | 2.77 | % | 2.9 | 7,644,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 29,273,486 | $ | 29,237,694 | 1.71 | % | 1.3 | $ | 25,191,875 |
Year Ended December 31, 2021 | |||||||||||||||||||||||
Outstanding Balance at December 31, 2021 | Average Daily Amount Outstanding(A) | Maximum Amount Outstanding | Weighted Average Daily Interest Rate | ||||||||||||||||||||
Secured Financing Agreements | |||||||||||||||||||||||
Agency RMBS | $ | 8,386,538 | $ | 11,691,649 | $ | 18,667,907 | 0.19 | % | |||||||||||||||
Non-Agency RMBS | 656,874 | 739,134 | 1,300,470 | 3.01 | % | ||||||||||||||||||
Residential mortgage loans | 7,786,115 | 6,211,879 | 12,846,806 | 1.92 | % | ||||||||||||||||||
Real estate owned | 6,595 | 5,609 | 6,621 | 2.60 | % | ||||||||||||||||||
Secured Notes and Bonds Payable | |||||||||||||||||||||||
MSRs | 487,000 | 265,146 | 716,360 | 3.41 | % | ||||||||||||||||||
Servicer advances | 1,174,493 | 711,324 | 1,368,464 | 1.83 | % | ||||||||||||||||||
Total/Weighted Average | $ | 18,497,615 | $ | 19,624,741 | $ | 34,906,628 | 1.20 | % |
Average Daily Amount Outstanding(A) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | ||||||||||||||||||||
Secured Financing Agreements | |||||||||||||||||||||||
Agency RMBS | $ | 8,789,698 | $ | 10,098,123 | $ | 15,169,877 | $ | 13,833,811 | |||||||||||||||
Non-Agency RMBS | 711,931 | 715,802 | 724,014 | 806,260 | |||||||||||||||||||
Residential mortgage loans | 8,497,137 | 4,879,365 | 4,622,809 | 4,552,293 | |||||||||||||||||||
Real estate owned | 5,609 | 9,923 | 19,294 | 2,282 |
Average Daily Amount Outstanding(A) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
December 31, 2020 | September 30, 2020 | June 30, 2020 | March 31, 2020 | ||||||||||||||||||||
Secured Financing Agreements | |||||||||||||||||||||||
Agency RMBS | $ | 11,391,397 | $ | 6,899,998 | $ | 1,175,803 | $ | 15,250,971 | |||||||||||||||
Non-Agency RMBS | 447,824 | 1,459,942 | 2,092,963 | 7,216,191 | |||||||||||||||||||
Residential mortgage loans | 3,655,906 | 3,112,376 | 3,180,499 | 4,869,240 | |||||||||||||||||||
Real estate owned | 2,581 | 3,222 | 76,763 | 75,173 |
Year | Price | |||||||
2022 | 103.125% | |||||||
2023 | 101.563% | |||||||
2024 and thereafter | 100.000% |
Servicer Advance Note Amount | Revolving Period Ends(A) | |||||||
$ | 370,430 | April 2022 | ||||||
7,052 | August 2022 | |||||||
300,000 | October 2022 | |||||||
300,000 | December 2022 | |||||||
180,352 | April 2023 | |||||||
600,000 | August 2023 | |||||||
600,000 | September 2023 | |||||||
$ | 2,357,834 |
Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
2022 | $ | 1,088,882 | $ | 17,402,381 | $ | 18,491,263 | ||||||||||||||
2023 | 1,380,352 | 3,824,659 | 5,205,011 | |||||||||||||||||
2024 | 750,000 | 1,211,791 | 1,961,791 | |||||||||||||||||
2025 | — | 2,043,989 | 2,043,989 | |||||||||||||||||
2026 and thereafter | 525,036 | 1,596,396 | 2,121,432 | |||||||||||||||||
$ | 3,744,270 | $ | 26,079,216 | $ | 29,823,486 |
Debt Obligations / Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||
Residential mortgage loans and REO | $ | 5,178,992 | $ | 3,478,514 | $ | 1,700,478 | ||||||||||||||
Loan origination | 21,564,856 | 8,824,916 | 12,739,940 | |||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||
Excess MSRs | 286,380 | 237,835 | 48,546 | |||||||||||||||||
MSRs | 4,999,244 | 4,245,401 | 753,843 | |||||||||||||||||
Servicer advances | 4,002,644 | 2,718,660 | 1,283,984 | |||||||||||||||||
Residential mortgage loans | 200,000 | 199,713 | 287 | |||||||||||||||||
$ | 36,232,116 | $ | 19,705,039 | $ | 16,527,078 |
Number of Shares | Liquidation Preference(A) | Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series | 2021 | 2020 | 2021 | 2020 | Issuance Discount | Carrying Value(B) | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | 6,210 | 6,210 | $ | 155,250 | $ | 155,250 | 3.15 | % | $ | 150,026 | $ | 1.88 | $ | 1.88 | $ | 1.16 | ||||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,300 | 11,300 | 282,500 | 282,500 | 3.15 | % | 273,418 | 1.78 | 1.78 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 16,100 | 16,100 | 402,500 | 402,500 | 3.15 | % | 389,548 | 1.59 | 1.60 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Series D, 7.00% issued September 2021(D) | 18,600 | — | 465,000 | — | 3.15 | % | 449,489 | 0.72 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total | 52,210 | 33,610 | $ | 1,305,250 | $ | 840,250 | $ | 1,262,481 | $ | 5.97 | $ | 5.26 | $ | 2.05 |
Held by the Manager | 19,877,843 | ||||
Issued to the Manager and subsequently assigned to certain of the Manager’s employees | 1,594,147 | ||||
Issued to the independent directors | 7,000 | ||||
Total | 21,478,990 |
Total Accumulated Other Comprehensive Income | |||||
Balance at December 31, 2020 | $ | 65,697 | |||
Unrealized gain (loss) on available-for-sale securities, net | 29,944 | ||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | (5,388) | ||||
Balance at December 31, 2021 | $ | 90,253 |
For the Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
Beginning of period — cash, cash equivalents, and restricted cash | $ | 1,080,473 | $ | 690,934 | $ | 389,539 | ||||||||||||||
Net cash provided by (used in) operating activities | 2,883,872 | 1,873,706 | 1,010,166 | |||||||||||||||||
Net cash provided by (used in) investing activities | 2,306,253 | 8,627,678 | (6,321,425) | |||||||||||||||||
Net cash provided by (used in) financing activities | (4,742,156) | (10,111,845) | 5,369,689 | |||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 447,969 | 389,539 | 58,430 | |||||||||||||||||
End of period — cash, cash equivalents, and restricted cash | $ | 1,528,442 | $ | 1,080,473 | $ | 447,969 |
Contract | Terms | |||||||
Debt Obligations | ||||||||
Secured Financing Agreements | Described under Note 13 to our Consolidated Financial Statements. | |||||||
Secured Notes and Bonds Payable | Described under Note 13 to our Consolidated Financial Statements. | |||||||
Unsecured Senior Notes | Described under Note 13 to our Consolidated Financial Statements. | |||||||
Other Contractual Obligations | ||||||||
Lease Liability | Described under Note 17 to our Consolidated Financial Statements. | |||||||
Management Agreement | For its services, our Manager is entitled to management fees, incentive fees, and reimbursement for certain expenses, as defined in, and in accordance with the terms of, the Management Agreement. Such terms are described in Note 18 to our Consolidated Financial Statements. | |||||||
Interest Rate Swaps | Described under Note 12 to our Consolidated Financial Statements. |
Amounts in millions | December 31, 2021 | December 31, 2020 | ||||||||||||
Interest rate change (bps) | Estimated Change in Fair Value | Estimated Change in Fair Value | ||||||||||||
+50bps | +488.5 | +191.0 | ||||||||||||
+25bps | +253.6 | +98.0 | ||||||||||||
-25bps | -253.6 | -98.0 | ||||||||||||
-50bps | -519.8 | -199.0 |
Amounts in millions | December 31, 2021 | December 31, 2020 | ||||||||||||
Mortgage basis change (bps) | Estimated Change in Fair Value | Estimated Change in Fair Valu | ||||||||||||
+20bps | +145.4 | -10.6 | ||||||||||||
+10bps | +76.5 | -5.3 | ||||||||||||
-10bps | -76.5 | +5.3 | ||||||||||||
-20bps | -157.9 | +10.6 |
Fair value at December 31, 2021 | $ | 1,471,880 | ||||||||||||||||||||||||
Discount rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 1,572,675 | $ | 1,521,052 | $ | 1,427,385 | $ | 1,384,787 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 100,795 | $ | 49,172 | $ | (44,495) | $ | (87,093) | ||||||||||||||||||
Percentage | 6.8 | % | 3.3 | % | (3.0) | % | (5.9) | % | ||||||||||||||||||
Prepayment rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 1,612,602 | $ | 1,538,538 | $ | 1,411,389 | $ | 1,356,086 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 140,722 | $ | 66,658 | $ | (60,491) | $ | (115,794) | ||||||||||||||||||
Percentage | 9.6 | % | 4.5 | % | (4.1) | % | (7.9) | % | ||||||||||||||||||
Delinquency rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 1,512,788 | $ | 1,492,114 | $ | 1,451,436 | $ | 1,431,163 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | 40,908 | $ | 20,234 | $ | (20,444) | $ | (40,717) | ||||||||||||||||||
Percentage | 2.8 | % | 1.4 | % | (1.4) | % | (2.8) | % | ||||||||||||||||||
Recapture rate shift in % | -20% | -10% | 10% | 20% | ||||||||||||||||||||||
Estimated fair value | $ | 1,442,484 | $ | 1,457,180 | $ | 1,486,575 | $ | 1,501,273 | ||||||||||||||||||
Change in estimated fair value: | ||||||||||||||||||||||||||
Amount | $ | (29,396) | $ | (14,700) | $ | 14,695 | $ | 29,393 | ||||||||||||||||||
Percentage | (2.0) | % | (1.0) | % | 1.0 | % | 2.0 | % |
Valuation of Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivables | |||||
Description of the Matter | The Company invests in Mortgage Servicing Rights and Mortgage Servicing Rights Financing Receivables (collectively “MSR”) totaling $6,859 million as of December 31, 2021 as included in Note 6 to the consolidated financial statements. The Company records MSRs at fair value on a recurring basis with changes in fair value recognized in the income statement. These fair value estimates are based on valuation techniques used to estimate future cash flows that incorporate significant unobservable inputs and assumptions which include discount rates, servicing costs, prepayment rates, and recapture rates. Auditing management’s fair value of MSRs and related changes in fair value is complex because the valuation is driven by significant assumptions that are judgmental and are unobservable in nature. Additionally, selecting and applying audit procedures to address the estimation uncertainty involves auditor subjectivity and industry-specific knowledge of MSRs including the current market conditions considered by a market participant. | ||||
How We Addressed the Matter in Our Audit | We evaluated and tested the design and operating effectiveness of the Company’s internal controls addressing the valuation of MSRs. This included, among others, management’s independent review of significant assumptions including discount rates, servicing costs, prepayment speeds, and recapture rates against historical results and available market information, management’s review of internally developed fair values in comparison to independent fair value ranges obtained from an independent valuation firm to evaluate the reasonableness of the fair values developed by the Company and management’s review of model functionality and changes. We also tested management’s controls to validate that the data used in the valuation was complete and accurate. In order to test the valuation of MSRs, our audit procedures included testing significant assumptions by comparing them to historical results, current industry, market and economic trends, evaluating the Company’s use of the discounted cash flow valuation technique, validating the accuracy and completeness of model objective inputs by agreeing these inputs to the Company’s underlying mortgage records and evaluating the competence and objectivity of management’s independent valuation firm. We also performed a sensitivity analysis of the significant assumptions to evaluate the changes in fair value of the MSRs resulting from changes in these assumptions. We involved an internal valuation specialist to test management’s assumptions and identify potential sources of contrary information. We evaluated the Company’s fair value disclosures included in Note 14 for consistency with US GAAP. |
Valuation of Non-Agency Real Estate Securities | |||||
Description of the Matter | The Company invests in non-agency residential mortgage backed securities (“RMBS”) which are measured at fair value on a recurring basis. As disclosed in Note 14 to the consolidated financial statements, the Company determined that the fair value of these non-agency RMBS approximates $952 million, as of December 31, 2021. As explained in Note 14 to the consolidated financial statements, the Company utilizes pricing information obtained from valuation providers engaged by New Residential in the fair value measurement of these Level 3 assets. Significant unobservable inputs are used in these fair value measurements which include discount rates, expected prepayment rates, expected default rates and expected loss severities. Auditing management’s fair value of the non-agency RMBS is complex because determining the fair value is judgmental and involves using assumptions that are not directly observable in the market, including discount rates, expected prepayment rates, expected default rates and expected loss severities. Additionally, selecting and applying audit procedures to address the estimation uncertainty involves auditor subjectivity and industry-specific knowledge of non-agency RMBS including the current market conditions considered by a market participant. | ||||
How We Addressed the Matter in Our Audit | We evaluated and tested the design and operating effectiveness of the Company’s internal controls addressing the valuation of non-agency RMBS. This included controls over the review of valuation methodologies used by the valuation providers, management’s fair value analysis applied to select one of the multiple quotes obtained from the valuation providers which is believed to most accurately reflect fair value, and management’s evaluation of the pricing information obtained from the valuation providers. As management used valuation providers to develop its fair value estimate, our audit procedures included selecting a sample of securities to determine whether the final price provided by the valuation provider agrees to the price used by management. With the support of an internal valuation specialist, we independently developed a range of fair value for a sample of securities and compared management’s estimates to our ranges. We developed the ranges of fair value by using a cash flow model and inputting cash flow and yield assumptions based on our independently obtained information. We also considered market transaction data for similar securities, if available, to develop our independent ranges to be compared to management’s fair value estimate. We evaluated the Company’s fair value disclosures included in Note 14 for consistency with US GAAP. |
Valuation of Residential Mortgage Loans (RMLs) | |||||
Description of the Matter | The Company holds acquired conforming and nonconforming mortgage loans which are measured at fair value on a recurring basis or, for those measured at the lower of cost or fair value, are measured at fair value on a non-recurring basis as described in Note 9 to the consolidated financial statements. As included in Note 14 to the consolidated financial statements, RMLs with a carrying value of $2,556 million as of December 31, 2021 are valued using internal pricing models to forecast loan level cash flows using subjective inputs such as default rates, prepayments speeds, loss severities and discount rates. As the internal pricing model is based on these subjective, unobservable inputs, the Company classifies these valuations as Level 3 in the fair value hierarchy. Auditing management’s fair value of the RMLs classified as Level 3 in the fair value hierarchy was complex because valuation is driven by significant assumptions that are judgmental and are unobservable in nature. Additionally, selecting and applying audit procedures to address the estimation uncertainty involves auditor subjectivity and industry-specific knowledge of RMLs including the current market conditions considered by a market participant. | ||||
How We Addressed the Matter in Our Audit | We evaluated and tested the design and operating effectiveness of the Company’s internal controls addressing the valuation of RMLs. This included, among others, management’s independent review of significant assumptions including default rates, prepayments speeds, loss severities and discount rates against historical results and available market information, management’s review of internally developed fair values in comparison to independent fair value marks obtained from third parties to evaluate the reasonableness of the fair values developed by the Company, and management’s review of model functionality and changes. We also tested management’s controls to validate that the data used in the valuation was complete and accurate. In order to test the valuation of RMLs, our audit procedures included, among others, testing significant assumptions by comparing to historical results, current industry, market and economic trends, evaluating the Company’s use of the discounted cash flow valuation technique and validating the accuracy and completeness of model objective inputs. With the support of an internal valuation specialist, we independently developed a range of fair value for a sample of loan pools and compared management’s estimates to our ranges. We developed the ranges based on collateral characteristics of the pools selected for testing and consideration of market transaction data for similar collateral, where available. We evaluated the Company’s fair value disclosures included in Note 14 for consistency with US GAAP. |
Accounting for Acquisitions | |||||
Description of the Matter | As described in Note 3 to the consolidated financial statements, the Company completed its acquisitions of Caliber Home Loans, Inc. (“Caliber”) for a purchase price of $1,319 million and Genesis Capital, LLC (“Genesis”) for a purchase price of $1,635 million during the year ended December 31, 2021. The acquisitions were accounted for as business combinations. Auditing the Company’s accounting for the Caliber business combination was complex due to the subjectivity required in determining the fair value of the acquired mortgage servicing rights (“MSRs”) of $1,508 million. The subjectivity was primarily due to the unobservable nature of significant assumptions used in determining the fair value of the MSRs. Such assumptions included discount rates, servicing costs, prepayment speeds and recapture rates. Selecting and applying audit procedures to address the subjectivity involves auditor judgment and industry-specific knowledge including the current market conditions considered by a market participant. Auditing the Company’s accounting for the Genesis business combination was complex because the transaction related to the acquisition of a business whose primary asset is construction, renovation, and bridge loans (“mortgage loans receivable”), which is a significant new business for the Company. Since it is a new type of loan for the Company and observable market data to determine fair value is not readily available, auditing the valuation of the $1,506 million of acquired mortgage loans receivable required significant involvement of more experienced team members. | ||||
How We Addressed the Matter in Our Audit | We evaluated and tested the design and operating effectiveness of the Company’s internal controls addressing the accounting for the business combinations, including controls over the valuation of the acquired mortgage servicing rights and mortgage loans receivable. For MSRs, this included, among others, management’s independent review of significant assumptions against available market information and historical data. For mortgage loans receivable, this included management’s independent review of market yields implied by transactions of similar assets and the credit quality of the underlying mortgage loans receivable. We also tested the Company’s controls over the completeness and accuracy of the data used in the valuations. To test the valuation of the acquired mortgage servicing rights and mortgage loans receivable, our audit procedures included, among others, evaluating the Company’s valuation methodologies and significant assumptions, and testing the completeness and accuracy of data used in the valuations. For example, for MSRs we performed procedures to test the significant assumptions used in the determination of fair value by evaluating them against historical data and current industry, market and economic trends. We also performed a sensitivity analysis of the significant assumptions to evaluate the changes in fair value of the MSRs and the mortgage loans receivable resulting from changes in these assumptions. We involved an internal valuation specialist to evaluate management’s assumptions and identify potential sources of contrary information. |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Excess mortgage servicing rights, at fair value | $ | 344,947 | $ | 410,855 | |||||||
Mortgage servicing rights and mortgage servicing rights financing receivables, at fair value(A) | 6,858,803 | 4,585,841 | |||||||||
Servicer advance investments, at fair value(A) | 421,807 | 538,056 | |||||||||
Real estate and other securities | 9,396,539 | 14,244,558 | |||||||||
Residential loans and variable interest entity consumer loans, held-for-investment, at fair value(A) | 1,077,224 | 1,359,754 | |||||||||
Residential mortgage loans, held-for-sale ($11,214,924 and $4,705,816 at fair value, respectively) | 11,347,845 | 5,215,703 | |||||||||
Mortgage loans receivable, at fair value | 1,515,762 | — | |||||||||
Residential mortgage loans subject to repurchase(B) | 1,787,314 | 1,452,005 | |||||||||
Cash and cash equivalents(A) | 1,332,575 | 944,854 | |||||||||
Restricted cash(A) | 195,867 | 135,619 | |||||||||
Servicer advances receivable | 2,855,148 | 3,002,267 | |||||||||
Receivable for investments sold | — | 4,180 | |||||||||
Other assets(A) | 2,608,359 | 1,358,422 | |||||||||
$ | 39,742,190 | $ | 33,252,114 | ||||||||
Liabilities and Equity | |||||||||||
Liabilities | |||||||||||
Secured financing agreements(A) | $ | 20,592,884 | $ | 17,547,680 | |||||||
Secured notes and bonds payable ($511,107 and $1,662,852 at fair value, respectively)(A) | 8,644,810 | 7,644,195 | |||||||||
Residential mortgage loan repurchase liability(B) | 1,787,314 | 1,452,005 | |||||||||
Unsecured senior notes, net of issuance costs | 543,293 | 541,516 | |||||||||
Payable for investments purchased | — | 154 | |||||||||
Due to affiliates | 17,819 | 9,450 | |||||||||
Dividends payable | 127,922 | 90,128 | |||||||||
Accrued expenses and other liabilities(A) | 1,358,768 | 537,302 | |||||||||
33,072,810 | 27,822,430 | ||||||||||
Commitments and Contingencies | |||||||||||
Equity | |||||||||||
Preferred Stock, $0.01 par value, 100,000,000 shares authorized, 52,210,000 and 33,610,000 issued and outstanding, $1,305,250 and $840,250 aggregate liquidation preference, respectively | 1,262,481 | 812,992 | |||||||||
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 466,758,266 and 414,744,518 issued and outstanding, respectively | 4,669 | 4,148 | |||||||||
Additional paid-in capital | 6,059,671 | 5,547,108 | |||||||||
Retained earnings (accumulated deficit) | (813,042) | (1,108,929) | |||||||||
Accumulated other comprehensive income (loss) | 90,253 | 65,697 | |||||||||
Total New Residential stockholders’ equity | 6,604,032 | 5,321,016 | |||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 65,348 | 108,668 | |||||||||
Total Equity | 6,669,380 | 5,429,684 | |||||||||
$ | 39,742,190 | $ | 33,252,114 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Revenues | |||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 1,559,554 | $ | 1,642,272 | $ | 1,534,125 | |||||||||||
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(1,192,646), $(1,583,628) and $(733,763), respectively) | (575,353) | (2,168,909) | (901,973) | ||||||||||||||
Servicing revenue, net | 984,201 | (526,637) | 632,152 | ||||||||||||||
Interest income | 810,896 | 794,965 | 1,330,114 | ||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 1,826,909 | 1,399,092 | 460,107 | ||||||||||||||
3,622,006 | 1,667,420 | 2,422,373 | |||||||||||||||
Expenses | |||||||||||||||||
Interest expense and warehouse line fees | 497,308 | 584,469 | 933,751 | ||||||||||||||
General and administrative | 864,028 | 548,441 | 496,481 | ||||||||||||||
Compensation and benefits | 1,159,810 | 571,646 | 285,489 | ||||||||||||||
Management fee to affiliate | 95,926 | 89,134 | 79,472 | ||||||||||||||
Incentive compensation to affiliate | — | — | 91,893 | ||||||||||||||
2,617,072 | 1,793,690 | 1,887,086 | |||||||||||||||
Other income (loss) | |||||||||||||||||
Change in fair value of investments | 11,723 | (148,758) | (118,373) | ||||||||||||||
Gain (loss) on settlement of investments, net | (234,561) | (930,131) | 227,981 | ||||||||||||||
Earnings from investments in consumer loans, equity method investees | — | — | (1,438) | ||||||||||||||
Other income (loss), net | 133,968 | (11,997) | 39,819 | ||||||||||||||
(88,870) | (1,090,886) | 147,989 | |||||||||||||||
Impairment | |||||||||||||||||
Provision (reversal) for credit losses on securities | (5,201) | 13,404 | 25,174 | ||||||||||||||
Valuation and credit loss provision (reversal) on loans and real estate owned | (42,543) | 110,208 | 10,403 | ||||||||||||||
(47,744) | 123,612 | 35,577 | |||||||||||||||
Income (loss) before income taxes | 963,808 | (1,340,768) | 647,699 | ||||||||||||||
Income tax expense (benefit) | 158,226 | 16,916 | 41,766 | ||||||||||||||
Net income (loss) | $ | 805,582 | $ | (1,357,684) | $ | 605,933 | |||||||||||
Noncontrolling interests in income of consolidated subsidiaries | 33,356 | 52,674 | 42,637 | ||||||||||||||
Dividends on preferred stock | 66,744 | 54,295 | 13,281 | ||||||||||||||
Net income (loss) attributable to common stockholders | $ | 705,482 | $ | (1,464,653) | $ | 550,015 | |||||||||||
Net income (loss) per share of common stock | |||||||||||||||||
Basic | $ | 1.56 | $ | (3.52) | $ | 1.35 | |||||||||||
Diluted | $ | 1.51 | $ | (3.52) | $ | 1.34 | |||||||||||
Weighted average number of shares of common stock outstanding | |||||||||||||||||
Basic | 451,276,742 | 415,513,187 | 408,789,642 | ||||||||||||||
Diluted | 467,665,006 | 415,513,187 | 408,990,107 | ||||||||||||||
Dividends declared per share of common stock | $ | 0.90 | $ | 0.50 | $ | 2.00 |
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Net income (loss) | $ | 805,582 | $ | (1,357,684) | $ | 605,933 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Net unrealized gain (loss) on available-for-sale securities, net | 29,944 | 123,855 | 445,943 | ||||||||||||||
Reclassification of net realized (gain) loss on available-for-sale securities, net into net income | (5,388) | (740,309) | (180,815) | ||||||||||||||
Comprehensive income (loss) | 830,138 | (1,974,138) | 871,061 | ||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 33,356 | 52,674 | 42,637 | ||||||||||||||
Dividends on preferred stock | 66,744 | 54,295 | 13,281 | ||||||||||||||
Comprehensive income (loss) attributable to common stockholders | $ | 730,038 | $ | (2,081,107) | $ | 815,143 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 33,610,000 | $ | 812,992 | 414,744,518 | $ | 4,148 | $ | 5,547,108 | $ | (1,108,929) | $ | 65,697 | $ | 5,321,016 | $ | 108,668 | $ | 5,429,684 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.90 per share | — | — | — | — | — | (409,595) | — | (409,595) | — | (409,595) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (66,744) | — | (66,744) | — | (66,744) | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | (55,600) | (55,600) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 51,903,346 | 519 | 512,902 | — | — | 513,421 | — | 513,421 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 18,600,000 | 449,489 | — | — | — | — | 449,489 | — | 449,489 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest | (1,447) | (1,447) | (21,076) | (22,523) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants | — | — | 110,402 | 2 | 1,108 | — | — | 1,110 | — | 1,110 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 772,226 | — | 772,226 | 33,356 | 805,582 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 29,944 | 29,944 | — | 29,944 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | — | — | — | — | — | (5,388) | (5,388) | — | (5,388) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | — | — | 796,782 | 33,356 | 830,138 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 52,210,000 | $ | 1,262,481 | 466,758,266 | $ | 4,669 | $ | 6,059,671 | $ | (813,042) | $ | 90,253 | $ | 6,604,032 | $ | 65,348 | $ | 6,669,380 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 17,510,000 | $ | 423,444 | 415,520,780 | $ | 4,156 | $ | 5,498,226 | $ | 549,733 | $ | 682,151 | $ | 7,157,710 | $ | 78,550 | $ | 7,236,260 | |||||||||||||||||||||||||||||||||||||||||
Cumulative adjustment for the adoption of | — | — | — | — | — | 13,658 | — | 13,658 | 16,795 | 30,453 | |||||||||||||||||||||||||||||||||||||||||||||||||
2020 Warrants | — | — | — | — | 53,462 | — | — | 53,462 | — | 53,462 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $0.50 per share | — | — | — | — | — | (207,667) | — | (207,667) | — | (207,667) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (54,295) | — | (54,295) | — | (54,295) | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions | — | — | — | — | — | — | — | — | 2,449 | 2,449 | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | (41,800) | (41,800) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 97,394 | 1 | 1,662 | — | — | 1,663 | — | 1,663 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | (1,000,000) | (10) | (7,452) | — | — | (7,462) | — | (7,462) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 16,100,000 | 389,548 | — | — | — | — | — | 389,548 | — | 389,548 | |||||||||||||||||||||||||||||||||||||||||||||||||
Director share grants | — | — | 126,344 | 1 | 1,210 | — | — | 1,211 | — | 1,211 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (1,410,358) | — | (1,410,358) | 52,674 | (1,357,684) | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 123,855 | 123,855 | — | 123,855 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | — | — | — | — | — | (740,309) | (740,309) | — | (740,309) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | — | — | (2,026,812) | 52,674 | (1,974,138) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 33,610,000 | $ | 812,992 | 414,744,518 | $ | 4,148 | $ | 5,547,108 | $ | (1,108,929) | $ | 65,697 | $ | 5,321,016 | $ | 108,668 | $ | 5,429,684 |
Preferred Stock | Common Stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Total New Residential Stockholders’ Equity | Noncontrolling Interests in Equity of Consolidated Subsidiaries | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | — | $ | — | 369,104,429 | $ | 3,692 | $ | 4,746,242 | $ | 830,713 | $ | 417,023 | $ | 5,997,670 | $ | 90,625 | $ | 6,088,295 | |||||||||||||||||||||||||||||||||||||||||
Dividends declared on common stock, $2.00 per share | — | — | — | — | — | (830,995) | — | (830,995) | — | (830,995) | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends declared on preferred stock | — | — | — | — | — | (13,281) | — | (13,281) | — | (13,281) | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital distributions | — | — | — | — | — | — | — | — | (54,712) | (54,712) | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | 46,000,000 | 460 | 750,933 | — | — | 751,393 | — | 751,393 | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of preferred stock | 17,510,000 | 423,444 | — | — | — | — | — | 423,444 | — | 423,444 | |||||||||||||||||||||||||||||||||||||||||||||||||
Option exercise | — | — | 348,613 | 3 | (3) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Director share grant | — | — | 67,738 | 1 | 1,054 | — | — | 1,055 | — | 1,055 | |||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 563,296 | — | 563,296 | 42,637 | 605,933 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities, net | — | — | — | — | — | — | 445,943 | 445,943 | — | 445,943 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized (gain) loss on available-for-sale securities, net into net income | — | — | — | — | — | — | (180,815) | (180,815) | — | (180,815) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | — | — | — | — | 828,424 | 42,637 | 871,061 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 17,510,000 | $ | 423,444 | 415,520,780 | $ | 4,156 | $ | 5,498,226 | $ | 549,733 | $ | 682,151 | $ | 7,157,710 | $ | 78,550 | $ | 7,236,260 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash Flows From Operating Activities | |||||||||||||||||
Net income (loss) | $ | 805,582 | $ | (1,357,684) | $ | 605,933 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Change in fair value of Excess MSRs | 13,260 | 19,721 | 3,705 | ||||||||||||||
Change in fair value of servicer advance investments | 9,076 | (763) | (10,288) | ||||||||||||||
Change in fair value of residential mortgage loans, at fair value | (155,758) | 107,604 | 70,914 | ||||||||||||||
Change in fair value of secured notes and bonds payable | (12,991) | 966 | 1,236 | ||||||||||||||
Change in fair value of real estate and other securities | 400,369 | (28,455) | (2,101) | ||||||||||||||
Change in fair value of consumer loans | 20,133 | (2,816) | — | ||||||||||||||
(Gain) loss on settlement of investments, net | 233,076 | 863,898 | (236,513) | ||||||||||||||
(Gain) loss on originated residential mortgage loans, held-for-sale, net | (1,826,909) | (1,399,092) | (460,107) | ||||||||||||||
Bargain purchase gain | (6,024) | — | (49,539) | ||||||||||||||
Earnings from investments in consumer loans, equity method investees | — | — | 1,438 | ||||||||||||||
(Gain) loss on extinguishment of debt | 1,485 | 66,233 | 8,532 | ||||||||||||||
Change in fair value of derivative instruments | (298,803) | 53,467 | 56,143 | ||||||||||||||
Change in fair value of contingent consideration | 1,037 | 6,568 | 10,487 | ||||||||||||||
Change in fair value of equity investments | (5,986) | 54,455 | 3,096 | ||||||||||||||
(Gain) loss on transfer of loans to REO | (3,752) | (7,945) | (11,842) | ||||||||||||||
(Gain) loss on transfer of loans to other assets | 9 | 939 | 1,144 | ||||||||||||||
(Gain) loss on Ocwen common stock | (2,181) | (3,235) | (174) | ||||||||||||||
Accretion and other amortization | (49,382) | (151,540) | (379,129) | ||||||||||||||
Depreciation on single family rental properties | 6,072 | 625 | 113 | ||||||||||||||
Provision (reversal) for credit losses on securities | (5,201) | 13,404 | 25,174 | ||||||||||||||
Valuation and credit loss provision (reversal) on loans and real estate owned | (42,543) | 110,208 | 10,403 | ||||||||||||||
Non-cash portions of servicing revenue, net | 575,353 | 2,168,909 | 901,973 | ||||||||||||||
Non-cash directors’ compensation | 1,110 | 1,211 | 1,055 | ||||||||||||||
Deferred tax provision | 151,200 | 15,029 | 38,207 | ||||||||||||||
Changes in: | |||||||||||||||||
Servicer advances receivable, net | 226,173 | 336,589 | 218,217 | ||||||||||||||
Other assets | 939,930 | 99,477 | (339,733) | ||||||||||||||
Due to affiliates | 8,369 | (94,432) | 2,411 | ||||||||||||||
Accrued expenses and other liabilities | (349,733) | (86,543) | 182,153 | ||||||||||||||
Other operating cash flows: | |||||||||||||||||
Interest and distributions received from Excess MSRs | 21,142 | 30,855 | 43,049 | ||||||||||||||
Interest received from servicer advance investments | 13,033 | 19,322 | 28,437 | ||||||||||||||
Interest received from Non-Agency RMBS | 104,463 | 170,151 | 264,694 | ||||||||||||||
Interest received from residential mortgage loans, held-for-investment | — | 5,139 | 8,485 | ||||||||||||||
Interest received from consumer loans | 14,901 | — | 30,588 | ||||||||||||||
Distributions of earnings from consumer loan equity method investees | — | — | 8,607 | ||||||||||||||
Purchases of residential mortgage loans, held-for-sale | (8,102,055) | (3,433,110) | (8,610,511) | ||||||||||||||
Origination of residential mortgage loans, held-for-sale | (122,564,612) | (60,951,784) | (19,411,150) | ||||||||||||||
Origination and advances of mortgage loans receivable | (70,938) | — | — | ||||||||||||||
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale | 132,220,995 | 64,968,767 | 24,968,751 | ||||||||||||||
Principal repayments from mortgage loans receivable | 60,811 | — | — | ||||||||||||||
Principal repayments from purchased residential mortgage loans, held-for-sale | 553,161 | 277,568 | 417,840 | ||||||||||||||
Net cash provided by (used in) operating activities | 2,883,872 | 1,873,706 | (1,598,302) | ||||||||||||||
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash Flows From Investing Activities | |||||||||||||||||
Business acquisitions, net of cash acquired | (1,173,171) | — | (1,223,233) | ||||||||||||||
Purchase of servicer advance investments | (1,286,526) | (1,294,757) | (1,622,808) | ||||||||||||||
Purchase of MSRs, MSR financing receivables and servicer advance receivables | (23,015) | (539,889) | (1,450,375) | ||||||||||||||
Purchase of Agency RMBS | (6,098,841) | (23,187,216) | (35,479,893) | ||||||||||||||
Purchase of Non-Agency RMBS | (709) | (56,515) | (885,629) | ||||||||||||||
Purchase of REO and other assets | (547,314) | (23,640) | (68,024) | ||||||||||||||
Purchase of investment in consumer loans, equity method investees | — | — | (64,499) | ||||||||||||||
Purchase of commercial real estate, equity method investees | (25,138) | — | — | ||||||||||||||
Draws on revolving consumer loans | (29,002) | (33,041) | (54,375) | ||||||||||||||
Purchase of SFR properties | (544,850) | (17,763) | (24,246) | ||||||||||||||
Origination of commercial loans | (250,000) | — | — | ||||||||||||||
Payments for settlement of derivatives | (199,614) | (214,747) | (300,771) | ||||||||||||||
Return of investments in Excess MSRs | 50,710 | 58,970 | 68,613 | ||||||||||||||
Return of investments in consumer loans, equity method investees | — | — | 92,748 | ||||||||||||||
Principal repayments from servicer advance investments | 1,382,344 | 1,338,101 | 1,786,394 | ||||||||||||||
Principal repayments from Agency RMBS | 2,168,212 | 1,101,564 | 2,085,283 | ||||||||||||||
Principal repayments from Non-Agency RMBS | 162,638 | 407,996 | 1,294,010 | ||||||||||||||
Principal repayments from residential mortgage loans | 119,841 | 139,561 | 113,602 | ||||||||||||||
Proceeds from sale of residential mortgage loans | 9,922 | — | 41,622 | ||||||||||||||
Principal repayments from commercial loans | 23,442 | — | — | ||||||||||||||
Principal repayments from consumer loans | 191,177 | 229,218 | 261,456 | ||||||||||||||
Principal repayments from MSRs and MSR financing receivables | 1,930 | 80,838 | 51,470 | ||||||||||||||
Proceeds from sale of MSRs | 61,041 | 14,694 | 24,528 | ||||||||||||||
Proceeds from sale of Excess MSRs | 3,327 | 1,142 | 10,095 | ||||||||||||||
Proceeds from sale of Agency RMBS | 8,074,294 | 24,928,144 | 22,173,505 | ||||||||||||||
Proceeds from sale of Non-Agency RMBS | 164,680 | 5,451,493 | 1,950,384 | ||||||||||||||
Proceeds from settlement of derivatives | 16,643 | 164,417 | 108,472 | ||||||||||||||
Proceeds from sale of REO | 54,232 | 79,108 | 138,910 | ||||||||||||||
Net cash provided by (used in) investing activities | 2,306,253 | 8,627,678 | (10,972,761) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Cash Flows From Financing Activities | |||||||||||||||||
Repayments of secured financing agreements | (69,206,600) | (122,526,887) | (196,120,793) | ||||||||||||||
Repayments of warehouse credit facilities | (130,744,991) | (64,520,481) | (34,833,314) | ||||||||||||||
Margin deposits under secured financing agreements and derivatives | (5,783,542) | (4,092,498) | (4,567,677) | ||||||||||||||
Proceeds from issuance of term loan | — | 592,400 | — | ||||||||||||||
Repayment of term loan | — | (600,000) | — | ||||||||||||||
Proceeds from issuance of unsecured senior notes | — | 544,400 | — | ||||||||||||||
Repayments of secured notes and bonds payable | (8,078,073) | (9,452,948) | (9,307,033) | ||||||||||||||
Deferred financing fees | (8,385) | (43,705) | (6,705) | ||||||||||||||
Common stock dividends paid | (375,869) | (332,479) | (807,788) | ||||||||||||||
Preferred stock dividends paid | (62,675) | (51,088) | (9,334) | ||||||||||||||
Borrowings under secured financing agreements | 64,749,425 | 113,228,180 | 207,138,969 | ||||||||||||||
Borrowings under warehouse credit facilities | 129,899,057 | 63,453,603 | 36,177,659 | ||||||||||||||
Return of margin deposits under secured financing agreements and derivatives | 6,032,909 | 4,016,721 | 4,365,946 | ||||||||||||||
Borrowings under secured notes and bonds payable | 7,964,077 | 9,380,533 | 9,706,864 | ||||||||||||||
Issuance of preferred stock | 449,489 | 389,548 | 423,444 | ||||||||||||||
Issuance of common stock | 513,540 | 1,735 | 752,217 | ||||||||||||||
Repurchase of common stock | — | (7,462) | — | ||||||||||||||
Costs related to issuance of common and preferred stock | (119) | (72) | (824) | ||||||||||||||
Noncontrolling interest in equity of consolidated subsidiaries - contributions | — | 2,449 | — | ||||||||||||||
Noncontrolling interest in equity of consolidated subsidiaries - distributions | (55,600) | (41,800) | (54,712) | ||||||||||||||
Payment of contingent consideration | (12,276) | (51,994) | (10,000) | ||||||||||||||
Purchase of noncontrolling interests | (22,523) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | (4,742,156) | (10,111,845) | 12,846,919 | ||||||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 447,969 | 389,539 | 275,856 | ||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period | 1,080,473 | 690,934 | 415,078 | ||||||||||||||
Cash, Cash Equivalents, and Restricted Cash, End of Period | $ | 1,528,442 | $ | 1,080,473 | $ | 690,934 | |||||||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||||||||
Cash paid during the period for interest | $ | 505,978 | $ | 512,139 | $ | 902,466 | |||||||||||
Cash paid during the period for income taxes | 23,506 | 3,629 | 1,479 | ||||||||||||||
Supplemental Schedule of Non-Cash Investing and Financing Activities | |||||||||||||||||
Common stock dividends declared but not paid | $ | 116,675 | $ | 82,949 | $ | 207,761 | |||||||||||
Preferred stock dividends declared but not paid | 22,495 | 14,357 | 3,971 | ||||||||||||||
Warrants issued with term loan | — | 53,462 | — | ||||||||||||||
Purchase of investments, primarily Agency and Non-Agency RMBS, settled after year end | — | 154 | 902,081 | ||||||||||||||
Sale of investments, primarily Agency RMBS, settled after year end | — | 4,180 | 5,256,014 | ||||||||||||||
Transfer from residential mortgage loans to real estate owned and other assets | 30,020 | 69,812 | 95,640 | ||||||||||||||
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale | — | — | 9,136 | ||||||||||||||
Non-cash distributions from LoanCo | — | — | 25,739 | ||||||||||||||
MSR purchase price holdback | — | (45,013) | (25,245) | ||||||||||||||
Guardian acquisition contingent consideration | — | — | 13,893 | ||||||||||||||
Seller financing in Genesis acquisition | 1,256,279 | — | — | ||||||||||||||
Ditech effective settlement of Preexisting Relationships | — | — | 4,919 | ||||||||||||||
Real estate securities retained from loan securitizations | 173,631 | 518,515 | 1,171,959 | ||||||||||||||
Residential mortgage loans subject to repurchase | 1,787,314 | 1,452,005 | 172,336 | ||||||||||||||
Other Assets | Accrued Expenses and Other Liabilities | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Margin receivable, net(A) | $ | 358,041 | $ | 271,753 | Margin payable | $ | 9,821 | $ | — | |||||||||||||||||
Servicing fee receivables | 117,935 | 137,426 | MSRs purchase price holdback | 14,985 | 25,121 | |||||||||||||||||||||
Due from servicers | 34,771 | 67,854 | Interest payable | 30,931 | 44,623 | |||||||||||||||||||||
Principal and interest receivable | 85,084 | 41,589 | Accounts payable | 298,901 | 87,406 | |||||||||||||||||||||
Equity investments(B) | 81,052 | 55,504 | Derivative liabilities (Note 12) | 34,583 | 119,762 | |||||||||||||||||||||
Other receivables | 188,298 | 109,111 | Due to servicers | 47,000 | 59,671 | |||||||||||||||||||||
REO | 21,641 | 45,299 | Due to agencies | 12,530 | 26,748 | |||||||||||||||||||||
SFR properties | 579,607 | 41,271 | Contingent consideration | 4,951 | 14,247 | |||||||||||||||||||||
Goodwill(C) | 85,199 | 29,468 | Accrued compensation and benefits | 201,057 | 67,025 | |||||||||||||||||||||
Notes receivable, at fair value(D) | 60,549 | 52,389 | Excess spread financing, at fair value | — | 18,420 | |||||||||||||||||||||
Warrants, at fair value | 27,354 | 23,218 | 142,620 | 31,270 | ||||||||||||||||||||||
Recovery asset | 19,251 | 13,006 | Reserve for sales recourse | 36,476 | 9,799 | |||||||||||||||||||||
Property and equipment | 56,617 | 26,999 | Reserve for servicing losses | 19,857 | 9,288 | |||||||||||||||||||||
Receivable from government agency(E) | 10,273 | 14,369 | Deferred tax liability | 440,690 | 7,859 | |||||||||||||||||||||
Intangible assets | 143,133 | 34,125 | Other liabilities | 64,366 | 16,063 | |||||||||||||||||||||
Prepaid expenses | 115,110 | 30,949 | $ | 1,358,768 | $ | 537,302 | ||||||||||||||||||||
117,131 | 26,913 | |||||||||||||||||||||||||
Derivative assets (Note 12) | 138,173 | 290,144 | ||||||||||||||||||||||||
Ocwen common stock, at fair value | 2,559 | 11,187 | ||||||||||||||||||||||||
Loans receivable, at fair value(F) | 229,631 | — | ||||||||||||||||||||||||
Credit facilities receivable(G) | 41,351 | — | ||||||||||||||||||||||||
Loans in process and settlements in process(H) | 11,681 | — | ||||||||||||||||||||||||
Other assets | 83,918 | 35,848 | ||||||||||||||||||||||||
$ | 2,608,359 | $ | 1,358,422 |
Balance at December 31, 2019 | $ | 93,672 | ||||||
Purchases | 6,502 | |||||||
Transfer of loans to real estate owned | 43,409 | |||||||
Sales(A) | (101,035) | |||||||
Valuation (provision) reversal | 2,751 | |||||||
Balance at December 31, 2020 | 45,299 | |||||||
Purchases | 2,464 | |||||||
Transfer of loans to real estate owned | 30,015 | |||||||
Sales(A) | (60,407) | |||||||
Valuation (provision) reversal | 4,270 | |||||||
Balance at December 31, 2021 | $ | 21,641 |
Balance at December 31, 2019 | $ | 24,133 | ||||||
Acquisitions and capital improvements | 17,763 | |||||||
Dispositions | — | |||||||
Reclassifications to SFR properties, held for sale, net of dispositions | — | |||||||
Write-offs | — | |||||||
Accumulated depreciation | (625) | |||||||
Balance at December 31, 2020 | $ | 41,271 | ||||||
Acquisitions and capital improvements | 544,850 | |||||||
Dispositions | (442) | |||||||
Reclassifications to SFR properties, held for sale | — | |||||||
Write-offs | — | |||||||
Accumulated depreciation | (6,072) | |||||||
Balance at December 31, 2021 | $ | 579,607 |
Notes Receivable | Loans Receivable | Total | |||||||||||||||
Balance at December 31, 2019 | $ | 37,001 | $ | — | $ | 37,001 | |||||||||||
Fundings | 11,500 | — | 11,500 | ||||||||||||||
Accrued interest paid-in-kind | 3,074 | — | 3,074 | ||||||||||||||
Proceeds from repayments | — | — | — | ||||||||||||||
Fair value adjustments due to: | |||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | ||||||||||||||
Other factors | 814 | — | 814 | ||||||||||||||
Balance at December 31, 2020 | $ | 52,389 | $ | — | $ | 52,389 | |||||||||||
Fundings | 6,688 | 250,000 | 256,688 | ||||||||||||||
Accrued interest paid-in-kind | 5,298 | 4,135 | 9,433 | ||||||||||||||
Proceeds from repayments | (3,188) | (25,443) | (28,631) | ||||||||||||||
Fair value adjustments due to: | |||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | ||||||||||||||
Other factors | (638) | 939 | 301 | ||||||||||||||
Balance at December 31, 2021 | $ | 60,549 | $ | 229,631 | $ | 290,180 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
Current | $ | 289,065 | $ | 290,180 | $ | 1,115 | $ | 51,575 | $ | 52,389 | $ | 814 | ||||||||||||||||||||||||||
90+ | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
$ | 289,065 | $ | 290,180 | $ | 1,115 | $ | 51,575 | $ | 52,389 | $ | 814 |
Origination | Servicing | MSR Related Investments | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | — | $ | 29,468 | |||||||||||||||||||
Goodwill acquired | — | — | — | — | — | ||||||||||||||||||||||||
Accumulated impairment loss | — | — | — | — | — | ||||||||||||||||||||||||
Other adjustments | — | — | — | — | — | ||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | — | $ | 29,468 | |||||||||||||||||||
Goodwill acquired(A) | — | — | — | 55,731 | 55,731 | ||||||||||||||||||||||||
Accumulated impairment loss | — | — | — | — | — | ||||||||||||||||||||||||
Other adjustments | — | — | — | — | — | ||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 11,836 | $ | 12,540 | $ | 5,092 | $ | 55,731 | $ | 85,199 |
As of December 31, | |||||||||||||||||
Estimated Useful Lives (Years) | 2021 | 2020 | |||||||||||||||
Gross Intangible Assets | |||||||||||||||||
Customer relationships | 3 to 9 | $ | 57,949 | $ | 13,247 | ||||||||||||
Purchased technology | 3 to 5 | 93,241 | 26,896 | ||||||||||||||
Trademarks / Trade names | 1 to 5 | 10,259 | 1,876 | ||||||||||||||
161,449 | 42,019 | ||||||||||||||||
Accumulated Amortization | |||||||||||||||||
Customer relationships | 6,574 | 2,489 | |||||||||||||||
Purchased technology | 10,578 | 5,053 | |||||||||||||||
Trademarks / Trade names | 1,164 | 352 | |||||||||||||||
18,316 | 7,894 | ||||||||||||||||
Intangible Assets, Net | |||||||||||||||||
Customer relationships | 51,375 | 10,758 | |||||||||||||||
Purchased technology | 82,663 | 21,843 | |||||||||||||||
Trademarks / Trade names | 9,095 | 1,524 | |||||||||||||||
$ | 143,133 | $ | 34,125 |
Year Ending | Amortization Expense | |||||||
2022 | $ | 25,738 | ||||||
2023 | 22,148 | |||||||
2024 | 21,215 | |||||||
2025 | 17,694 | |||||||
2026 and thereafter | 33,097 | |||||||
$ | 119,892 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Accretion of net discount on securities and loans(A) | $ | 32,670 | $ | 96,148 | $ | 323,652 | |||||||||||
Accretion of servicer advances receivable discount and investments | 1,822 | 55,664 | 28,094 | ||||||||||||||
Accretion of Excess MSRs income | 30,855 | 28,352 | 32,647 | ||||||||||||||
Amortization of deferred financing costs | (14,174) | (22,733) | (4,019) | ||||||||||||||
Amortization of discount on secured notes and bonds payable | (13) | (388) | (1,245) | ||||||||||||||
Amortization of discount on term loan | (1,778) | (5,503) | — | ||||||||||||||
Total accretion and other amortization | $ | 49,382 | $ | 151,540 | $ | 379,129 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Excess MSRs | $ | (15,078) | $ | (16,232) | $ | (10,505) | |||||||||||
Excess MSRs, equity method investees | 1,818 | (3,489) | 6,800 | ||||||||||||||
Servicer advance investments | (9,076) | 763 | 10,288 | ||||||||||||||
Real estate and other securities | (400,369) | 28,455 | 2,101 | ||||||||||||||
Residential mortgage loans | 155,758 | (107,604) | (70,914) | ||||||||||||||
Consumer loans | (20,133) | 2,816 | — | ||||||||||||||
Derivative instruments | 298,803 | (53,467) | (56,143) | ||||||||||||||
Total change in fair value of investments | $ | 11,723 | $ | (148,758) | $ | (118,373) |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Sale of real estate securities | $ | (89,811) | $ | (753,713) | $ | 205,989 | |||||||||||
Sale of acquired residential mortgage loans | 120,680 | (5,662) | 153,174 | ||||||||||||||
Settlement of derivatives | (172,581) | (74,812) | (129,923) | ||||||||||||||
Liquidated residential mortgage loans | (5,946) | 4,644 | (4,872) | ||||||||||||||
Sale of REO | (6,622) | (21,925) | (11,521) | ||||||||||||||
Extinguishment of debt | (1,485) | (66,233) | (8,532) | ||||||||||||||
Other | (78,796) | (12,430) | 23,666 | ||||||||||||||
Total gain (loss) on settlement of investments, net | $ | (234,561) | $ | (930,131) | $ | 227,981 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Unrealized gain (loss) on secured notes and bonds payable | $ | 12,991 | $ | (966) | $ | (1,236) | |||||||||||
Unrealized gain (loss) on contingent consideration | (1,037) | (6,568) | (10,487) | ||||||||||||||
Unrealized gain (loss) on equity investments | 5,986 | (54,455) | (3,096) | ||||||||||||||
Gain (loss) on transfer of loans to REO | 3,752 | 7,945 | 11,842 | ||||||||||||||
Gain (loss) on transfer of loans to other assets | (9) | (939) | (1,144) | ||||||||||||||
Gain (loss) on Ocwen common stock | 2,181 | 3,235 | 174 | ||||||||||||||
Provision for servicing losses | (41,038) | (15,330) | (9,102) | ||||||||||||||
Bargain purchase gain | 6,024 | — | 49,539 | ||||||||||||||
Rental revenue | 13,750 | 2,422 | 194 | ||||||||||||||
Ancillary income | 53,358 | 22,987 | 6,538 | ||||||||||||||
Property and maintenance revenue | 104,797 | 70,527 | 14,449 | ||||||||||||||
Other income (loss) | (26,787) | (40,855) | (17,852) | ||||||||||||||
Total other income (loss), net | $ | 133,968 | $ | (11,997) | $ | 39,819 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Legal and professional | $ | 102,114 | $ | 70,502 | $ | 89,489 | |||||||||||
Loan origination | 196,989 | 92,081 | 59,418 | ||||||||||||||
Occupancy | 70,616 | 36,799 | 19,388 | ||||||||||||||
Subservicing | 224,138 | 201,444 | 227,482 | ||||||||||||||
Loan servicing | 16,440 | 14,126 | 31,737 | ||||||||||||||
Property and maintenance | 69,083 | 42,508 | 8,112 | ||||||||||||||
Other | 184,648 | 90,981 | 60,855 | ||||||||||||||
Total general and administrative expenses | $ | 864,028 | $ | 548,441 | $ | 496,481 |
2021 | 2019 | ||||||||||||||||||||||||||||||||||
($ in millions) | Caliber | Genesis | Total | Ditech | Guardian | Total | |||||||||||||||||||||||||||||
Total Consideration | $ | 1,318.5 | $ | 1,634.6 | $ | 2,953.1 | $ | 1,218.2 | $ | 21.5 | $ | 1,239.7 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Mortgage servicing rights, at fair value | $ | 1,507.5 | $ | — | $ | 1,507.5 | $ | 387.2 | $ | — | $ | 387.2 | |||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | 7,685.7 | — | 7,685.7 | 627.4 | — | 627.4 | |||||||||||||||||||||||||||||
Mortgage loans receivable, at fair value | — | 1,505.6 | 1,505.6 | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | 666.8 | — | 666.8 | — | — | — | |||||||||||||||||||||||||||||
Cash and cash equivalents | 472.7 | 16.4 | 489.1 | — | 1.8 | 1.8 | |||||||||||||||||||||||||||||
Restricted cash | 30.6 | — | 30.6 | — | — | — | |||||||||||||||||||||||||||||
Servicer advance receivable | 108.3 | — | 108.3 | 238.0 | — | 238.0 | |||||||||||||||||||||||||||||
Intangible assets(A)(B)(C)(D) | 41.0 | 56.8 | 97.8 | 10.5 | 11.7 | 22.2 | |||||||||||||||||||||||||||||
Other assets(E) | 609.7 | 14.5 | 624.2 | 64.8 | 6.6 | 71.4 | |||||||||||||||||||||||||||||
Total Assets Acquired | $ | 11,122.3 | $ | 1,593.3 | $ | 12,715.6 | $ | 1,327.9 | $ | 20.1 | $ | 1,348.0 | |||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Secured financing agreements | $ | 7,090.6 | $ | — | $ | 7,090.6 | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Secured notes and bonds payable | 1,121.8 | — | 1,121.8 | — | — | — | |||||||||||||||||||||||||||||
Residential mortgage loans repurchase liability | 666.8 | — | 666.8 | — | — | — | |||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 918.6 | 14.4 | 933.0 | 60.2 | 3.7 | 63.9 | |||||||||||||||||||||||||||||
Total Liabilities Assumed | $ | 9,797.8 | $ | 14.4 | $ | 9,812.2 | $ | 60.2 | $ | 3.7 | $ | 63.9 | |||||||||||||||||||||||
Net Assets | $ | 1,324.5 | $ | 1,578.9 | $ | 2,903.4 | $ | 1,267.7 | $ | 16.4 | $ | 1,284.1 | |||||||||||||||||||||||
Goodwill (bargain purchase gain) | $ | (6.0) | $ | 55.7 | $ | 49.7 | $ | (49.5) | $ | 5.1 | $ | (44.4) |
Estimated Useful Life | Amount | ||||||||||
Purchased technology | 5 | $ | 38,545 | ||||||||
Trademarks/trade names | 1 | 2,483 | |||||||||
Total identifiable intangible assets | $ | 41,028 |
($ in millions) | Acquisition Date Amounts Recognized as of September 30, 2021 | Subsequent Adjustments to Fair Value | Acquisition Date Amounts Recognized as of December 31, 2021 (As Adjusted) | ||||||||||||||
Total Consideration | $ | 1,318.5 | $ | — | $ | 1,318.5 | |||||||||||
Assets | |||||||||||||||||
Mortgage servicing rights, at fair value | $ | 1,507.5 | $ | — | $ | 1,507.5 | |||||||||||
Residential mortgage loans, held-for-sale, at fair value | 7,685.7 | — | 7,685.7 | ||||||||||||||
Residential mortgage loans subject to repurchase | 666.8 | — | 666.8 | ||||||||||||||
Cash and cash equivalents | 472.7 | — | 472.7 | ||||||||||||||
Restricted cash | 30.6 | — | 30.6 | ||||||||||||||
Servicer advance receivable | 108.3 | — | 108.3 | ||||||||||||||
Intangible assets | 41.0 | — | 41.0 | ||||||||||||||
Other assets(A) | 605.4 | 4.3 | 609.7 | ||||||||||||||
Total Assets Acquired | $ | 11,118.0 | $ | 4.3 | $ | 11,122.3 | |||||||||||
Liabilities | |||||||||||||||||
Secured financing agreements | $ | 7,090.6 | $ | — | $ | 7,090.6 | |||||||||||
Secured notes and bonds payable | 1,121.8 | — | 1,121.8 | ||||||||||||||
Residential mortgage loans repurchase liability | 666.8 | — | 666.8 | ||||||||||||||
Accrued expenses and other liabilities(A) | 917.0 | 1.6 | 918.6 | ||||||||||||||
Total Liabilities Assumed | $ | 9,796.2 | $ | 1.6 | $ | 9,797.8 | |||||||||||
Net Assets | $ | 1,321.8 | $ | 2.7 | $ | 1,324.5 | |||||||||||
Goodwill (bargain purchase gain) | $ | (3.3) | $ | (2.7) | $ | (6.0) |
Year Ended December 31, | ||||||||||||||
Pro Forma (in millions) | 2021 | 2020 | ||||||||||||
Revenues | $ | 5,422.7 | $ | 4,453.4 | ||||||||||
Income (loss) before income taxes | 1,258.6 | (529.9) |
Estimated Useful Life | Amount | ||||||||||
Customer relationships | 9 | $ | 44,700 | ||||||||
Trade name | 5 | 5,900 | |||||||||
License | Indefinite | 5,500 | |||||||||
Total identifiable intangible assets | $ | 56,100 |
Year Ended December 31, | ||||||||||||||
Pro Forma (in millions) | 2021 | 2020 | ||||||||||||
Revenues | $ | 3,643.4 | $ | 1,693.0 | ||||||||||
Income (loss) before income taxes | 981.8 | (1,316.1) |
Total Consideration (in millions) | Amount | |||||||
Cash consideration | $ | 1,213.3 | ||||||
Effective settlement of preexisting relationships(A) | 4.9 | |||||||
Total consideration | $ | 1,218.2 |
Pro Forma (in millions) | Amount | |||||||
Servicing and origination revenue | $ | 1,104.0 | ||||||
Income before income taxes | 552.8 |
Total Consideration (in millions) | Amount | |||||||
Cash consideration | $ | 7.6 | ||||||
Earnout payment(A) | 13.9 | |||||||
Total consideration | $ | 21.5 |
Pro Forma (in millions) | Amount | |||||||
Income before income taxes | $ | 651.5 |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | (4,089) | $ | 1,025,888 | $ | 537,755 | $ | 1,559,554 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,559,554 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables | — | (313,655) | (261,698) | (575,353) | — | — | — | — | — | (575,353) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | (4,089) | 712,233 | 276,057 | 984,201 | — | — | — | — | — | 984,201 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 188,053 | 20,629 | 49,162 | 257,844 | 293,989 | 139,658 | 93,847 | 4,219 | 21,339 | 810,896 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 1,704,363 | 101,764 | (138,505) | 1,781,204 | 9,878 | 35,827 | — | — | — | 1,826,909 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,888,327 | 834,626 | 186,714 | 3,023,249 | 303,867 | 175,485 | 93,847 | 4,219 | 21,339 | 3,622,006 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 121,392 | 97,696 | 104,838 | 323,926 | 47,037 | 76,273 | 10,999 | 1,000 | 38,073 | 497,308 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | 1,223,668 | 395,007 | 273,748 | 1,892,423 | 4,620 | 90,377 | 10,856 | 1,802 | 119,686 | 2,119,764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 1,345,060 | 492,703 | 378,586 | 2,216,349 | 51,657 | 166,650 | 21,855 | 2,802 | 157,759 | 2,617,072 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of investments | — | — | (22,336) | (22,336) | (101,566) | 155,758 | (20,133) | — | — | 11,723 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on settlement of investments, net | — | (4,766) | (35,116) | (39,882) | (254,672) | 60,164 | — | — | (171) | (234,561) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | 2,346 | 742 | 79,355 | 82,443 | (1,686) | 52,222 | 1,935 | — | (946) | 133,968 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | 2,346 | (4,024) | 21,903 | 20,225 | (357,924) | 268,144 | (18,198) | — | (1,117) | (88,870) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges (reversals) | — | — | — | — | (5,201) | (42,543) | — | — | — | (47,744) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 545,613 | 337,899 | (169,969) | 827,125 | (100,513) | 319,522 | 53,794 | 1,417 | (137,537) | 963,808 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | 115,289 | 17,828 | (26,553) | 106,564 | — | 51,579 | 83 | — | — | 158,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 430,324 | $ | 320,071 | $ | (143,416) | $ | 720,561 | $ | (100,513) | $ | 267,943 | $ | 53,711 | $ | 1,417 | $ | (137,537) | $ | 805,582 | ||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 11,298 | — | (1,800) | 9,498 | — | — | 23,858 | — | — | $ | 33,356 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | 66,744 | 66,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 419,026 | $ | 320,071 | $ | (141,616) | $ | 711,063 | $ | (100,513) | $ | 267,943 | $ | 29,853 | $ | 1,417 | $ | (204,281) | $ | 705,482 |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | 8,829,598 | $ | 5,439,613 | $ | 2,776,078 | $ | 17,045,289 | $ | 9,396,539 | $ | 3,099,294 | $ | 507,291 | $ | 1,515,762 | $ | — | $ | 31,564,175 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 587,685 | 250,294 | 288,900 | 1,126,879 | 197,559 | 22 | 1,437 | 5,653 | 1,025 | 1,332,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 32,803 | 95,785 | 27,182 | 155,770 | 15,342 | 2,482 | 21,961 | — | 312 | 195,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 969,338 | 2,728,253 | 1,926,482 | 5,624,073 | 389,309 | 125,647 | 39,662 | 106,615 | 279,068 | 6,564,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | 55,731 | — | 85,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 10,431,260 | $ | 8,526,485 | $ | 5,023,734 | $ | 23,981,479 | $ | 9,998,749 | $ | 3,227,445 | $ | 570,351 | $ | 1,683,761 | $ | 280,405 | $ | 39,742,190 | ||||||||||||||||||||||||||||||||||||||||||
Debt | $ | 8,251,702 | $ | 4,131,297 | $ | 3,561,342 | $ | 15,944,341 | $ | 9,040,309 | $ | 2,440,693 | $ | 460,314 | $ | 1,252,660 | $ | 642,670 | $ | 29,780,987 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 425,582 | 2,323,315 | 182,460 | 2,931,357 | 6,991 | 179,260 | 583 | 8,541 | 165,091 | 3,291,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 8,677,284 | 6,454,612 | 3,743,802 | 18,875,698 | 9,047,300 | 2,619,953 | 460,897 | 1,261,201 | 807,761 | 33,072,810 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 1,753,976 | 2,071,873 | 1,279,932 | 5,105,781 | 951,449 | 607,492 | 109,454 | 422,560 | (527,356) | 6,669,380 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 15,683 | — | 10,251 | 25,934 | — | — | 39,414 | — | — | 65,348 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total New Residential stockholders’ equity | $ | 1,738,293 | $ | 2,071,873 | $ | 1,269,681 | $ | 5,079,847 | $ | 951,449 | $ | 607,492 | $ | 70,040 | $ | 422,560 | $ | (527,356) | $ | 6,604,032 | ||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | — | $ | — | $ | 105,592 | $ | 105,592 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 105,592 |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | (11,519) | $ | 891,191 | $ | 762,600 | $ | 1,642,272 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,642,272 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables | — | (1,094,339) | (1,074,570) | (2,168,909) | — | — | — | — | — | (2,168,909) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | (11,519) | (203,148) | (311,970) | (526,637) | — | — | — | — | — | (526,637) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 63,160 | 16,897 | 58,517 | 138,574 | 355,916 | 175,963 | 124,512 | — | — | 794,965 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 1,289,584 | 47,277 | 23,860 | 1,400,552 | (13,398) | 11,938 | — | — | — | 1,399,092 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,341,225 | (138,974) | (229,593) | 1,012,489 | 342,518 | 187,901 | 124,512 | — | — | 1,667,420 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 45,676 | 76,884 | 157,230 | 279,790 | 157,371 | 87,958 | 22,587 | — | 36,763 | 584,469 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | 494,398 | 368,208 | 155,882 | 1,018,488 | 7,639 | 62,900 | 10,301 | — | 109,893 | 1,209,221 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 540,074 | 445,092 | 313,112 | 1,298,278 | 165,010 | 150,858 | 32,888 | — | 146,656 | 1,793,690 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of investments | — | — | (18,958) | (18,958) | (25,012) | (107,604) | 2,816 | — | — | (148,758) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on settlement of investments, net | — | (5,486) | (11,227) | (16,713) | (828,525) | (19,655) | (4,183) | — | (61,055) | (930,131) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | 433 | (1,738) | 39,690 | 38,385 | 2,333 | (3,220) | (8,386) | — | (41,109) | (11,997) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | 433 | (7,224) | 9,505 | 2,714 | (851,204) | (130,479) | (9,753) | — | (102,164) | (1,090,886) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges (reversals) | — | — | — | — | 13,404 | 110,208 | — | — | — | 123,612 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 801,584 | (591,290) | (533,200) | (283,075) | (687,100) | (203,644) | 81,871 | — | (248,820) | (1,340,768) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | 211,359 | (58,288) | (71,719) | 81,352 | — | (65,215) | 779 | — | — | 16,916 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 590,225 | $ | (533,002) | $ | (461,481) | $ | (364,427) | $ | (687,100) | $ | (138,429) | $ | 81,092 | $ | — | $ | (248,820) | $ | (1,357,684) | ||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 15,625 | — | 891 | 16,516 | — | — | 36,158 | — | — | 52,674 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | 54,295 | 54,295 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 574,600 | $ | (533,002) | $ | (462,372) | $ | (380,943) | $ | (687,100) | $ | (138,429) | $ | 44,934 | $ | — | $ | (303,115) | $ | (1,464,653) |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | $ | 2,947,113 | $ | 1,974,679 | $ | 3,560,073 | $ | 8,481,865 | $ | 14,244,558 | $ | 3,029,339 | $ | 685,575 | $ | — | $ | — | $ | 26,441,337 | ||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 123,124 | 59,798 | 412,578 | 595,500 | 222,372 | 7,472 | 3,182 | — | 116,328 | 944,854 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 14,826 | 53,438 | 24,603 | 92,867 | 15,652 | 96 | 27,004 | — | — | 135,619 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 551,910 | 2,338,837 | 2,405,854 | 5,296,601 | 232,837 | 86,762 | 38,465 | — | 46,171 | 5,700,836 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 11,836 | 12,540 | 5,092 | 29,468 | — | — | — | — | — | 29,468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 3,648,809 | $ | 4,439,292 | $ | 6,408,200 | $ | 14,496,301 | $ | 14,715,419 | $ | 3,123,669 | $ | 754,226 | $ | — | $ | 162,499 | $ | 33,252,114 | ||||||||||||||||||||||||||||||||||||||||||
Debt | $ | 2,700,962 | $ | 1,462,335 | $ | 4,539,661 | $ | 8,702,958 | $ | 13,473,239 | $ | 2,386,919 | $ | 628,759 | $ | — | $ | 541,516 | $ | 25,733,391 | ||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 298,106 | 1,552,793 | 57,879 | 1,908,778 | 20,863 | 28,577 | 622 | — | 130,199 | 2,089,039 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 2,999,068 | 3,015,128 | 4,597,540 | 10,611,736 | 13,494,102 | 2,415,496 | 629,381 | — | 671,715 | 27,822,430 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total equity | 649,741 | 1,424,164 | 1,810,660 | 3,884,565 | 1,221,317 | 708,173 | 124,845 | — | (509,216) | 5,429,684 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in equity of consolidated subsidiaries | 19,402 | — | 43,882 | 63,284 | — | — | 45,384 | — | — | 108,668 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total New Residential stockholders’ equity | $ | 630,339 | $ | 1,424,164 | $ | 1,766,778 | $ | 3,821,281 | $ | 1,221,317 | $ | 708,173 | $ | 79,461 | $ | — | $ | (509,216) | $ | 5,321,016 | ||||||||||||||||||||||||||||||||||||||||||
Investments in equity method investees | $ | — | $ | — | $ | 129,873 | $ | 129,873 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 129,873 |
Origination and Servicing | Residential Securities, Properties and Loans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination | Servicing | MSR Related Investments | Total Origination and Servicing(A) | Real Estate Securities | Properties and Residential Mortgage Loans | Consumer Loans | Mortgage Loans Receivable | Corporate | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | (1,605) | $ | 525,104 | $ | 1,010,626 | $ | 1,534,125 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,534,125 | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of MSRs and MSR financing receivables | — | (313,134) | (588,839) | (901,973) | — | — | — | — | — | (901,973) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing revenue, net | (1,605) | 211,970 | 421,787 | 632,152 | — | — | — | — | — | 632,152 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 42,166 | 31,846 | 96,376 | 170,388 | 744,145 | 249,673 | 165,877 | — | 31 | 1,330,114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | 390,981 | 1,029 | 43,914 | 384,564 | — | 75,543 | — | — | — | 460,107 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 431,542 | 244,845 | 562,077 | 1,187,104 | 744,145 | 325,216 | 165,877 | — | 31 | 2,422,373 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 41,949 | 32,735 | 214,602 | 289,286 | 453,609 | 158,298 | 32,558 | — | — | 933,751 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
G&A and other | 252,458 | 221,018 | 211,634 | 685,110 | 3,160 | 52,745 | 22,540 | — | 189,780 | 953,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 294,407 | 253,753 | 426,236 | 974,396 | 456,769 | 211,043 | 55,098 | — | 189,780 | 1,887,086 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of investments | — | — | 6,583 | 6,583 | (54,042) | (70,914) | — | — | — | (118,373) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (loss) on settlement of investments, net | — | — | 8,030 | 8,030 | 74,927 | 153,449 | (8,425) | — | — | 227,981 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (loss), net | 9,340 | 5,343 | 30,760 | 45,443 | 44 | (7,150) | (1,574) | — | 1,618 | 38,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (loss) | 9,340 | 5,343 | 45,373 | 60,056 | 20,929 | 75,385 | (9,999) | — | 1,618 | 147,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment charges (reversals) | — | — | — | — | 25,174 | (20,607) | 31,010 | — | — | 35,577 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 146,475 | (3,565) | 181,214 | 272,764 | 283,131 | 210,165 | 69,770 | — | (188,131) | 647,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | 39,768 | (874) | 31,835 | 70,729 | — | (28,461) | (502) | — | — | 41,766 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 106,707 | $ | (2,691) | $ | 149,379 | $ | 202,035 | $ | 283,131 | $ | 238,626 | $ | 70,272 | $ | — | $ | (188,131) | $ | 605,933 | ||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests in income (loss) of consolidated subsidiaries | 6,231 | — | 4,255 | 10,486 | — | — | 32,151 | — | — | 42,637 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends on preferred stock | — | — | — | — | — | — | — | — | 13,281 | 13,281 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 100,476 | $ | (2,691) | $ | 145,124 | $ | 191,549 | $ | 283,131 | $ | 238,626 | $ | 38,121 | $ | — | $ | (201,412) | $ | 550,015 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Base servicing | |||||||||||||||||
MSR assets | $ | 731,924 | $ | 611,669 | $ | 367,419 | |||||||||||
Residential whole loans | 16,448 | 16,081 | 8,074 | ||||||||||||||
Third party | 103,617 | 139,480 | 71,145 | ||||||||||||||
851,989 | 767,230 | 446,638 | |||||||||||||||
Other fees | |||||||||||||||||
Ancillary and other fees(A) | 173,899 | 123,961 | 78,466 | ||||||||||||||
Change in fair value due to: | |||||||||||||||||
Realization of cash flows | (783,349) | (792,680) | (243,147) | ||||||||||||||
Change in valuation inputs and assumptions and other | 469,694 | (301,659) | (69,987) | ||||||||||||||
Total servicing fees | $ | 712,233 | $ | (203,148) | $ | 211,970 | |||||||||||
Servicing Data (period end) (in millions) | |||||||||||||||||
UPB - MSR assets | $ | 389,852 | $ | 220,880 | $ | 140,244 | |||||||||||
UPB - Residential whole loans | 14,097 | 9,993 | 7,919 | ||||||||||||||
UPB - Third party | 78,814 | 66,892 | 71,264 |
Year Ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Direct investments in Excess MSRs | $ | 259,198 | $ | 310,938 | ||||||||||
Excess MSR Joint Ventures | 85,749 | 99,917 | ||||||||||||
Excess mortgage servicing rights assets, at fair value | $ | 344,947 | $ | 410,855 |
Servicer | ||||||||||||||||||||
Mr. Cooper | SLS(A) | Total | ||||||||||||||||||
Balance as of December 31, 2019 | $ | 377,692 | $ | 2,055 | $ | 379,747 | ||||||||||||||
Interest income | 28,217 | 135 | 28,352 | |||||||||||||||||
Other income | (12,123) | — | (12,123) | |||||||||||||||||
Proceeds from repayments | (67,340) | (405) | (67,745) | |||||||||||||||||
Proceeds from sales | (1,061) | — | (1,061) | |||||||||||||||||
Change in fair value | (16,376) | 144 | (16,232) | |||||||||||||||||
Balance as of December 31, 2020 | 309,009 | 1,929 | 310,938 | |||||||||||||||||
Interest income | 20,355 | (59) | 20,296 | |||||||||||||||||
Other income | 403 | (325) | 78 | |||||||||||||||||
Proceeds from repayments | (55,702) | (350) | (56,052) | |||||||||||||||||
Proceeds from sales | (984) | — | (984) | |||||||||||||||||
Change in fair value | (15,508) | 430 | (15,078) | |||||||||||||||||
Balance as of December 31, 2021 | $ | 257,573 | $ | 1,625 | $ | 259,198 |
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis(B) | Carrying Value(C) | |||||||||||||||||||||||||||||||||||||
New Residential(D) | Fortress-managed funds | Mr. Cooper | |||||||||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 26,856,946 | 32.5% - 66.7% (53.3%) | —% - 40.0% | 20.0% - 35.0% | 6.0 | $ | 118,631 | $ | 131,997 | |||||||||||||||||||||||||||||||
Non-Agency(E) | |||||||||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | 30,565,231 | 33.3% - 100.0% (59.4%) | —% - 50.0% | —% - 33.3% | 6.6 | 95,608 | 127,201 | ||||||||||||||||||||||||||||||||||
Total | $ | 57,422,177 | $ | 214,239 | $ | 259,198 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
UPB of Underlying Mortgages | Interest in Excess MSR | Weighted Average Life Years(A) | Amortized Cost Basis(B) | Carrying Value(C) | |||||||||||||||||||||||||||||||||||||
New Residential(D) | Fortress-managed funds | Mr. Cooper | |||||||||||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 34,593,406 | 32.5% - 66.7% (53.3)% | —% - 40.0% | 20.0% - 35.0% | 5.9 | $ | 141,204 | $ | 162,645 | |||||||||||||||||||||||||||||||
Non-Agency(E) | |||||||||||||||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | 38,095,499 | 33.3% - 100.0% (59.4)% | —% - 50.0% | —% - 33.3% | 6.5 | 109,697 | 148,293 | ||||||||||||||||||||||||||||||||||
Total | $ | 72,688,905 | $ | 250,901 | $ | 310,938 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Original and Recaptured Pools | $ | (15,078) | $ | (16,232) | $ | (10,505) |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Excess MSRs | $ | 152,383 | $ | 179,762 | |||||||
Other assets | 19,802 | 20,759 | |||||||||
Other liabilities | (687) | (687) | |||||||||
Equity | $ | 171,498 | $ | 199,834 | |||||||
New Residential’s investment | $ | 85,749 | $ | 99,917 | |||||||
New Residential’s percentage ownership | 50.0 | % | 50.0 | % |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Interest income | $ | 7,574 | $ | 22,507 | $ | 23,872 | |||||||||||
Other income (loss) | (3,906) | (29,461) | (10,208) | ||||||||||||||
Expenses | (32) | (24) | (64) | ||||||||||||||
Net income (loss) | $ | 3,636 | $ | (6,978) | $ | 13,600 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Balance at beginning of period | $ | 99,917 | $ | 125,596 | |||||||
Contributions to equity method investees | — | — | |||||||||
Distributions of earnings from equity method investees | — | (1,170) | |||||||||
Distributions of capital from equity method investees | (15,986) | (21,020) | |||||||||
Change in fair value of investments in equity method investees | 1,818 | (3,489) | |||||||||
Balance at end of period | $ | 85,749 | $ | 99,917 |
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Investee Interest in Excess MSR(A) | New Residential Interest in Investees | Amortized Cost Basis(B) | Carrying Value(C) | Weighted Average Life (Years)(D) | ||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 23,039,453 | 66.7% | 50.0% | $ | 112,840 | $ | 152,383 | 5.7 |
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Unpaid Principal Balance | Investee Interest in Excess MSR(A) | New Residential Interest in Investees | Amortized Cost Basis(B) | Carrying Value(C) | Weighted Average Life (Years)(D) | ||||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||||||||
Original and Recaptured Pools | $ | 28,453,512 | 66.7% | 50.0% | $ | 139,251 | $ | 179,762 | 5.8 | ||||||||||||||||||||||||||
Total | ||||||||
Balance as of December 31, 2019 | $ | 5,686,233 | ||||||
Purchases, net(A) | 431,608 | |||||||
Originations(B) | 666,414 | |||||||
Proceeds from sales | (15,341) | |||||||
Change in fair value due to: | ||||||||
Realization of cash flows(C) | (1,592,281) | |||||||
Change in valuation inputs and assumptions | (591,439) | |||||||
(Gain) loss realized | 647 | |||||||
Balance as of December 31, 2020 | $ | 4,585,841 | ||||||
Caliber acquisition (Note 3) | 1,507,524 | |||||||
Purchases, net(A) | 10,949 | |||||||
Originations(B) | 1,331,626 | |||||||
Proceeds from sales | (63,451) | |||||||
Change in fair value due to: | ||||||||
Realization of cash flows(C) | (1,196,527) | |||||||
Change in valuation inputs and assumptions | 680,431 | |||||||
(Gain) loss realized | 2,410 | |||||||
Balance as of December 31, 2021 | $ | 6,858,803 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables | $ | 1,446,509 | $ | 1,457,211 | $ | 1,216,069 | |||||||||||
Ancillary and other fees | 113,045 | 185,061 | 318,056 | ||||||||||||||
Servicing fee revenue and fees, net | 1,559,554 | 1,642,272 | 1,534,125 | ||||||||||||||
Change in fair value due to: | |||||||||||||||||
Realization of cash flows(A) | (1,192,646) | (1,583,628) | (733,763) | ||||||||||||||
Change in valuation inputs and assumptions(B) | 680,088 | (585,928) | (165,110) | ||||||||||||||
Change in fair value of derivative instruments | (30,481) | — | — | ||||||||||||||
(Gain) loss realized | 2,410 | 647 | (3,100) | ||||||||||||||
Gain (loss) on settlement of derivative instruments | (34,724) | — | — | ||||||||||||||
Servicing revenue, net | $ | 984,201 | $ | (526,637) | $ | 632,152 |
UPB of Underlying Mortgages | Weighted Average Life (Years)(A) | Carrying Value(B) | |||||||||||||||
2021 | |||||||||||||||||
Agency | $ | 374,815,579 | 6.1 | $ | 4,443,713 | ||||||||||||
Non-Agency | 63,851,154 | 8.3 | 943,210 | ||||||||||||||
Ginnie Mae(c) | 109,946,356 | 5.7 | 1,471,880 | ||||||||||||||
Total | $ | 548,613,089 | 6.3 | $ | 6,858,803 | ||||||||||||
2020 | |||||||||||||||||
Agency | $ | 305,718,556 | 5.1 | $ | 2,849,003 | ||||||||||||
Non-Agency | 72,610,446 | 7.9 | 1,064,403 | ||||||||||||||
Ginnie Mae(c) | 57,106,825 | 4.1 | 672,435 | ||||||||||||||
Total | $ | 435,435,827 | 5.4 | $ | 4,585,841 |
Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
State Concentration | December 31, 2021 | December 31, 2020 | ||||||||||||
California | 18.1 | % | 21.2 | % | ||||||||||
Florida | 8.6 | % | 7.4 | % | ||||||||||
Texas | 6.2 | % | 5.6 | % | ||||||||||
New York | 6.0 | % | 7.0 | % | ||||||||||
Washington | 5.6 | % | 2.9 | % | ||||||||||
New Jersey | 4.5 | % | 4.8 | % | ||||||||||
Virginia | 3.4 | % | 2.9 | % | ||||||||||
Illinois | 3.4 | % | 3.6 | % | ||||||||||
Maryland | 3.4 | % | 3.1 | % | ||||||||||
Georgia | 3.0 | % | 3.3 | % | ||||||||||
Other U.S. | 37.8 | % | 38.2 | % | ||||||||||
100.0 | % | 100.0 | % |
December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Principal and interest advances | $ | 562,418 | $ | 665,538 | ||||||||||
Escrow advances (taxes and insurance advances) | 1,523,154 | 1,547,796 | ||||||||||||
Foreclosure advances | 793,098 | 816,400 | ||||||||||||
Total(A)(B)(C) | $ | 2,878,670 | $ | 3,029,734 |
Balance as of December 31, 2019 | $ | 1,680 | ||||||
Provision | 21,619 | |||||||
Write-offs | (450) | |||||||
Balance as of December 31, 2020 | $ | 22,849 | ||||||
Caliber acquisition (Note 3) | 15,068 | |||||||
Provision | 11,560 | |||||||
Write-offs | (17,355) | |||||||
Balance as of December 31, 2021 | $ | 32,122 |
Amortized Cost Basis | Carrying Value(A) | Weighted Average Discount Rate | Weighted Average Yield | Weighted Average Life (Years)(B) | |||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Servicer Advance Investments | $ | 405,786 | $ | 421,807 | 5.2 | % | 5.5 | % | 6.9 | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Servicer Advance Investments | $ | 512,958 | $ | 538,056 | 5.2 | % | 5.7 | % | 6.0 |
Loan-to-Value (“LTV”)(A) | Cost of Funds(C) | ||||||||||||||||||||||||||||||||||||||||||||||
UPB of Underlying Residential Mortgage Loans | Outstanding Servicer Advances | Servicer Advances to UPB of Underlying Residential Mortgage Loans | Face Amount of Secured Notes and Bonds Payable | Gross | Net(B) | Gross | Net | ||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(D) | $ | 20,314,977 | $ | 369,440 | 1.8 | % | $ | 356,580 | 91.4 | % | 90.7 | % | 1.3 | % | 1.2 | % | |||||||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(D) | $ | 26,061,499 | $ | 449,150 | 1.7 | % | $ | 423,144 | 88.4 | % | 88.6 | % | 1.5 | % | 1.3 | % |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Principal and interest advances | $ | 67,014 | $ | 84,976 | |||||||
Escrow advances (taxes and insurance advances) | 174,681 | 186,426 | |||||||||
Foreclosure advances | 127,745 | 177,748 | |||||||||
Total | $ | 369,440 | $ | 449,150 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Interest income, gross of amounts attributable to servicer compensation | $ | 12,501 | $ | 34,262 | $ | 51,940 | |||||||||||
Amounts attributable to basic servicer compensation | (1,798) | (3,248) | (6,209) | ||||||||||||||
Amounts attributable to incentive servicer compensation | (9,025) | (12,832) | (18,065) | ||||||||||||||
Interest income from servicer advance investments | $ | 1,678 | $ | 18,182 | $ | 27,666 |
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon(C) | Yield | Life (Years)(D) | Principal Subordination(E) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS designated as available for sale (AFS): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F) | $ | 91,572 | $ | 7,008 | $ | — | $ | 98,367 | 1 | AAA | 3.50 | % | 3.50 | % | 4.4 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(G)(H) | 2,956,066 | 84,494 | (117) | 522,416 | 334 | AA | 3.29 | % | 3.18 | % | 3.4 | 26.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
RMBS measured at fair value through net income (FVO): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F) | 8,307,771 | 204 | (226,309) | 8,346,230 | 40 | AAA | 2.13 | % | 2.13 | % | 7.0 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(G)(H) | 12,958,891 | 32,814 | (51,892) | 429,526 | 271 | AA+ | 2.15 | % | 3.91 | % | 3.2 | 20.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total/ Weighted Average | $ | 24,314,300 | $ | 124,520 | $ | (278,318) | $ | 9,396,539 | 646 | AAA | 2.19 | % | 2.27 | % | 6.6 | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Gains | Losses | Carrying Value(A) | Number of Securities | Rating(B) | Coupon(C) | Yield | Life (Years)(D) | Principal Subordination(E) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RMBS designated as available for sale (AFS): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F) | $ | 110,360 | $ | 10,612 | $ | — | $ | 121,761 | 1 | AAA | 3.50 | % | 3.50 | % | 5.9 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(G)(H) | 3,628,870 | 62,890 | (7,394) | 752,004 | 364 | AA | 3.40 | % | 3.50 | % | 4.9 | 19.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
RMBS measured at fair value through net income (FVO): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agency(F) | 12,380,792 | 101,414 | — | 12,941,873 | 57 | AAA | 2.20 | % | 2.20 | % | 4.3 | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency(G)(H) | 15,749,660 | 25,208 | (53,423) | 428,920 | 225 | AA+ | 1.90 | % | 5.00 | % | 4.4 | 19.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total/ Weighted Average | $ | 31,869,682 | $ | 200,124 | $ | (60,817) | $ | 14,244,558 | 647 | AAA | 2.3 % | 2.4 % | 4.3 |
Gross Unrealized | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Gains | Losses | Carrying Value | Number of Securities | Rating | Coupon | Yield | Life (Years) | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 414 | $ | 9 | $ | — | $ | 423 | 1 | B- | 8.25 | % | 8.25 | % | 3.3 | |||||||||||||||||||||||||||||||||||||||||
Consumer loan bonds | 2,960 | 878 | — | 2,974 | 3 | N/A | N/A | N/A | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value option securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-only securities | 7,368,874 | 8,099 | (43,626) | 152,489 | 127 | AA+ | 1.19 | % | 1.54 | % | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||
Servicing strips | 4,413,700 | 6,869 | (7,758) | 59,120 | 59 | N/A | 1.40 | % | 13.12 | % | 2.6 | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate Debt | $ | 500 | $ | 23 | $ | — | $ | 523 | 1 | B- | 8.25 | % | 8.25 | % | 4.3 | |||||||||||||||||||||||||||||||||||||||||
Consumer loan bonds | 13,022 | 503 | — | 12,862 | 6 | N/A | N/A | N/A | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value option securities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-only securities | 9,457,488 | 6,600 | (43,781) | 211,073 | 124 | AA+ | 1.22 | % | 5.09 | % | 2.1 | |||||||||||||||||||||||||||||||||||||||||||||
Servicing strips | 4,979,723 | 5,865 | (9,476) | 46,378 | 58 | N/A | 0.42 | % | 8.38 | % | 3.9 |
Year Ended December 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(in millions) | Agency | Non-Agency | Agency | Non-Agency | |||||||||||||||||||
Purchases | |||||||||||||||||||||||
Face | $ | 5,907.2 | $ | 2,999.3 | $ | 21,593.3 | $ | 5,083.1 | |||||||||||||||
Purchase price | 6,098.8 | 174.3 | 22,290.3 | 575.0 | |||||||||||||||||||
Sales | |||||||||||||||||||||||
Face | $ | 7,830.8 | $ | 1,686.9 | $ | 19,321.7 | $ | 8,450.1 | |||||||||||||||
Amortized cost | 8,135.6 | 193.2 | 19,666.2 | 6,242.0 | |||||||||||||||||||
Sale price | 8,074.3 | 164.7 | 19,886.8 | 5,288.5 | |||||||||||||||||||
Gain (loss) on sale | (61.3) | (28.5) | 220.5 | (953.5) |
Amortized Cost Basis | Weighted Average | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities in an Unrealized Loss Position | Outstanding Face Amount | Before Credit Impairment | Credit Impairment(A) | After Credit Impairment | Gross Unrealized Losses | Carrying Value | Number of Securities | Rating | Coupon | Yield | Life (Years) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | $ | 3,755 | $ | 3,535 | $ | (20) | $ | 3,514 | $ | (24) | $ | 3,490 | 2 | AAA | 1.60 | % | 1.34 | % | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||
12 or More Months | 19,723 | 10,563 | (3,451) | 7,111 | (93) | 7,018 | 13 | AA+ | — | % | 0.89 | % | 0.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 23,478 | $ | 14,098 | $ | (3,471) | $ | 10,625 | $ | (117) | $ | 10,508 | 15 | AAA | 0.53 | % | 1.04 | % | 1.0 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gross Unrealized Losses | Gross Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||||||||||
RMBS Designated as AFS | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | Fair Value | Amortized Cost Basis After Credit Impairment | Credit(A) | Non-Credit(B) | ||||||||||||||||||||||||||||||||||||||||||
Securities New Residential intends to sell | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||||
Securities New Residential is more likely than not to be required to sell(C) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Securities New Residential has no intent to sell and is not more likely than not to be required to sell: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Credit impaired securities | 6,581 | 6,581 | (3,471) | — | 21,326 | 21,326 | (8,672) | — | ||||||||||||||||||||||||||||||||||||||||||
Non-credit impaired securities | 3,927 | 4,044 | — | (117) | 270,821 | 331,638 | — | (60,817) | ||||||||||||||||||||||||||||||||||||||||||
Total debt securities in an unrealized loss position | $ | 10,508 | $ | 10,625 | $ | (3,471) | $ | (117) | $ | 292,147 | $ | 352,964 | $ | (8,672) | $ | (60,817) |
RMBS Designated as AFS | Purchased Credit Deteriorated | Non-Purchased Credit Deteriorated | Total | |||||||||||||||||
Allowance for credit losses on available-for-sale debt securities at December 31, 2019 | $ | — | $ | — | $ | — | ||||||||||||||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | — | — | — | |||||||||||||||||
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | — | — | — | |||||||||||||||||
Reductions for securities sold during the period | — | — | — | |||||||||||||||||
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | — | — | |||||||||||||||||
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | 8,672 | — | 8,672 | |||||||||||||||||
Write-offs charged against the allowance | — | — | — | |||||||||||||||||
Recoveries of amounts previously written off | — | — | — | |||||||||||||||||
Allowance for credit losses on available-for-sale debt securities at December 31, 2020 | $ | 8,672 | $ | — | $ | 8,672 | ||||||||||||||
Additions to the allowance for credit losses on securities for which credit losses were not previously recorded | — | — | — | |||||||||||||||||
Additions to the allowance for credit losses arising from purchases of available-for-sale debt securities accounted for as purchased financial assets with credit deterioration | — | — | — | |||||||||||||||||
Reductions for securities sold during the period | (2,182) | — | (2,182) | |||||||||||||||||
Reductions in the allowance for credit losses because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | — | — | |||||||||||||||||
Additional increases (decreases) to the allowance for credit losses on securities that had credit losses or an allowance recorded in a previous period | (3,019) | — | (3,019) | |||||||||||||||||
Write-offs charged against the allowance | — | — | — | |||||||||||||||||
Recoveries of amounts previously written off | — | — | — | |||||||||||||||||
Allowance for credit losses on available-for-sale debt securities at December 31, 2021 | $ | 3,471 | $ | — | $ | 3,471 |
Year Ended December 31, 2019 | |||||
Beginning balance of credit losses on debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income | $ | 52,803 | |||
Increases to credit losses on securities for which an other-than-temporary impairment was previously recognized and a portion of an other-than-temporary impairment was recognized in other comprehensive income | 23,059 | ||||
Additions for credit losses on securities for which an other-than-temporary impairment was not previously recognized | 2,115 | ||||
Reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis | — | ||||
Reduction for credit losses on securities for which no other-than-temporary impairment was recognized in other comprehensive income at the current measurement date | — | ||||
Reduction for securities sold/paid off during the period | (18,914) | ||||
Ending balance of credit losses on debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income | $ | 59,063 |
Outstanding Face Amount | Carrying Value | ||||||||||
December 31, 2021 | $ | 512,731 | $ | 180,890 | |||||||
December 31, 2020 | 727,216 | 280,876 |
Year Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Beginning balance | $ | 189,562 | $ | 1,882,477 | |||||||
Additions | 8,324 | 76,960 | |||||||||
Accretion | (4,720) | (60,868) | |||||||||
Reclassifications from (to) non-accretable difference | (8,015) | (167,793) | |||||||||
Disposals | (149,058) | (1,541,214) | |||||||||
Ending balance | $ | 36,093 | $ | 189,562 |
December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Outstanding Face Amount | Carrying Value | Loan Count | Weighted Average Yield | Weighted Average Life (Years)(A) | Carrying Value | |||||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-investment, at fair value(B) | $ | 623,937 | $ | 569,933 | 9,718 | 7.1 | % | 5.1 | $ | 674,179 | ||||||||||||||||||||||||||||
Acquired reverse residential mortgage loans | $ | — | $ | — | — | — | % | 0.0 | $ | 5,884 | ||||||||||||||||||||||||||||
Acquired performing loans(C) | 142,142 | 130,634 | 2,839 | 6.6 | % | 4.6 | 129,345 | |||||||||||||||||||||||||||||||
Acquired non-performing loans(D) | 2,825 | 2,287 | 34 | 7.5 | % | 4.7 | 374,658 | |||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at lower of cost or market | $ | 144,967 | $ | 132,921 | 2,873 | 6.6 | % | 4.6 | $ | 509,887 | ||||||||||||||||||||||||||||
Acquired performing loans(C)(E) | $ | 2,046,945 | $ | 2,070,262 | 12,757 | 3.5 | % | 12.4 | $ | 1,423,159 | ||||||||||||||||||||||||||||
Acquired non-performing loans(D)(E) | 343,133 | 315,063 | 2,249 | 4.8 | % | 6.1 | 335,544 | |||||||||||||||||||||||||||||||
Originated loans | 8,565,456 | 8,829,599 | 12,479 | 3.2 | % | 28.0 | 2,947,113 | |||||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value | $ | 10,955,534 | $ | 11,214,924 | 27,485 | 3.3 | % | 24.4 | $ | 4,705,816 | ||||||||||||||||||||||||||||
Total residential mortgage loans, held-for-sale, at fair value/lower of cost or market | $ | 11,100,501 | $ | 11,347,845 | $ | 5,215,703 |
Percentage of Total Outstanding Unpaid Principal Amount | ||||||||||||||
December 31, | ||||||||||||||
State Concentration | 2021 | 2020 | ||||||||||||
California | 15.7 | % | 11.9 | % | ||||||||||
Florida | 10.1 | % | 7.1 | % | ||||||||||
Washington | 7.5 | % | 1.8 | % | ||||||||||
New York | 7.1 | % | 7.1 | % | ||||||||||
Texas | 6.7 | % | 10.1 | % | ||||||||||
New Jersey | 3.8 | % | 4.2 | % | ||||||||||
Virginia | 3.3 | % | 2.5 | % | ||||||||||
Georgia | 3.1 | % | 5.8 | % | ||||||||||
Maryland | 3.1 | % | 2.3 | % | ||||||||||
Illinois | 2.8 | % | 3.0 | % | ||||||||||
Other U.S. | 36.8 | % | 44.2 | % | ||||||||||
100.0 | % | 100.0 | % |
December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
Less than 120 | $ | 11,101,345 | $ | 11,323,443 | $ | 222,098 | $ | 5,131,755 | $ | 5,099,094 | $ | (32,661) | ||||||||||||||||||||||||||
120+ | 623,093 | 594,335 | (28,758) | 950,564 | 790,788 | (159,776) | ||||||||||||||||||||||||||||||||
$ | 11,724,438 | $ | 11,917,778 | $ | 193,340 | $ | 6,082,319 | $ | 5,889,882 | $ | (192,437) |
Loans Held-for-Investment | Loans Held-for-Sale, at Lower Cost or Fair Value | Loans Held-for-Sale, at Fair Value | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $ | 925,706 | $ | 1,429,052 | $ | 4,613,612 | $ | 6,968,370 | |||||||||||||||
Fair value adjustment due to fair value option | (6,020) | — | — | (6,020) | |||||||||||||||||||
Originations | — | — | 61,684,462 | 61,684,462 | |||||||||||||||||||
Sales | — | (791,974) | (64,692,996) | (65,484,970) | |||||||||||||||||||
Purchases/additional fundings | — | 110,741 | 3,322,369 | 3,433,110 | |||||||||||||||||||
Proceeds from repayments | (145,767) | (99,845) | (177,723) | (423,335) | |||||||||||||||||||
Transfer of loans to other assets(A) | — | (3,449) | (22,255) | (25,704) | |||||||||||||||||||
Transfer of loans to real estate owned | (6,754) | (21,681) | (7,035) | (35,470) | |||||||||||||||||||
Transfers of loans to held-for-sale | (62,274) | — | — | (62,274) | |||||||||||||||||||
Transfers of loans to from held-for-investment | — | — | 62,274 | 62,274 | |||||||||||||||||||
Valuation provision on loans | — | (112,957) | — | (112,957) | |||||||||||||||||||
Fair value adjustments due to: | |||||||||||||||||||||||
Changes in instrument-specific credit risk | 27,036 | — | (12,323) | 14,713 | |||||||||||||||||||
Other factors | (57,748) | — | (64,569) | (122,317) | |||||||||||||||||||
Balance at December 31, 2020 | $ | 674,179 | $ | 509,887 | $ | 4,705,816 | $ | 5,889,882 | |||||||||||||||
Caliber acquisition (Note 3) | — | — | 7,685,681 | 7,685,681 | |||||||||||||||||||
Originations | — | — | 123,059,895 | 123,059,895 | |||||||||||||||||||
Sales | — | (374,683) | (131,960,935) | (132,335,618) | |||||||||||||||||||
Purchases/additional fundings | — | — | 8,102,055 | 8,102,055 | |||||||||||||||||||
Proceeds from repayments | (120,247) | (32,826) | (520,334) | (673,407) | |||||||||||||||||||
Transfer of loans to other assets(A) | — | (585) | 22,112 | 21,527 | |||||||||||||||||||
Transfer of loans to real estate owned | (15,165) | (7,145) | (3,958) | (26,268) | |||||||||||||||||||
Valuation provision on loans | — | 38,273 | — | 38,273 | |||||||||||||||||||
Fair value adjustments due to: | |||||||||||||||||||||||
Changes in instrument-specific credit risk | (2,020) | — | (18,099) | (20,119) | |||||||||||||||||||
Other factors | 33,186 | — | 142,691 | 175,877 | |||||||||||||||||||
Balance at December 31, 2021 | $ | 569,933 | $ | 132,921 | $ | 11,214,924 | $ | 11,917,778 |
December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Interest income: | ||||||||||||||||||||
Loans held-for-investment, at fair value | $ | 44,369 | $ | 53,264 | $ | 60,301 | ||||||||||||||
Loans held-for-sale, at lower of cost or fair value | 23,280 | 50,130 | 65,926 | |||||||||||||||||
Loans held-for-sale, at fair value | 260,062 | 135,729 | 175,926 | |||||||||||||||||
Total interest income | 327,711 | 239,123 | 302,153 | |||||||||||||||||
Interest expense: | ||||||||||||||||||||
Loans held-for-investment, at fair value | 16,919 | 21,029 | 19,381 | |||||||||||||||||
Loans held-for-sale, at lower of cost or fair value | 21,333 | 22,541 | 40,067 | |||||||||||||||||
Loans held-for-sale, at fair value | 159,413 | 90,064 | 109,723 | |||||||||||||||||
Total interest expense | 197,665 | 133,634 | 169,171 | |||||||||||||||||
Net interest income | $ | 130,046 | $ | 105,489 | $ | 132,982 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Gain on residential mortgage loans originated and sold, net(A) | $ | 460,062 | $ | 811,288 | $ | 53,554 | ||||||||||||||
Gain (loss) on settlement of residential mortgage loan origination derivative instruments(B) | 240,610 | (361,755) | (53,374) | |||||||||||||||||
MSRs retained on transfer of residential mortgage loans(C) | 1,331,626 | 666,414 | 374,450 | |||||||||||||||||
Other(D) | 107,249 | 49,270 | 27,564 | |||||||||||||||||
Realized gain on sale of originated residential mortgage loans, net | $ | 2,139,547 | $ | 1,165,217 | $ | 402,194 | ||||||||||||||
Change in fair value of residential mortgage loans | (137,503) | 99,908 | 28,761 | |||||||||||||||||
Change in fair value of interest rate lock commitments (Note 12) | (293,699) | 249,183 | 26,151 | |||||||||||||||||
Change in fair value of derivative instruments (Note 12) | 118,564 | (115,216) | 3,001 | |||||||||||||||||
Gain on originated residential mortgage loans, held-for-sale, net | $ | 1,826,909 | $ | 1,399,092 | $ | 460,107 |
Unpaid Principal Balance | Interest in Consumer Loans | Carrying Value | Weighted Average Coupon | Weighted Average Expected Life (Years)(A) | Weighted Average Delinquency(B) | ||||||||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Performing | $ | 358,181 | 53.5 | % | $ | 413,377 | 18.5 | % | 3.2 | 3.6 | % | ||||||||||||||||||||||||
Purchased credit deteriorated(C) | 91,580 | 53.5 | % | 93,914 | 13.8 | % | 3.1 | 7.7 | % | ||||||||||||||||||||||||||
Other - performing | 114 | 100.0 | % | — | 15.5 | % | 0.3 | 28.4 | % | ||||||||||||||||||||||||||
Total consumer loans | $ | 449,875 | $ | 507,291 | 17.5 | % | 3.2 | 4.5 | % | ||||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||||||||
Performing | $ | 490,222 | 53.5 | % | $ | 553,419 | 18.3 | % | 3.6 | 3.7 | % | ||||||||||||||||||||||||
Purchased credit deteriorated(C) | 127,899 | 53.5 | % | 129,513 | 14.1 | % | 3.5 | 7.4 | % | ||||||||||||||||||||||||||
Other - performing | 2,862 | 100.0 | % | 2,643 | 15.3 | % | 0.4 | 4.3 | % | ||||||||||||||||||||||||||
Total consumer loans | $ | 620,983 | $ | 685,575 | 17.4 | % | 3.6 | 4.4 | % |
December 31, | ||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||
Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | ||||||||||||||||||||||||||||||||
Under 90 Days | $ | 442,481 | $ | 499,059 | $ | 56,578 | $ | 611,978 | $ | 675,691 | $ | 63,713 | ||||||||||||||||||||||||||
90+ | 7,394 | 8,232 | 838 | 9,005 | 9,884 | 879 | ||||||||||||||||||||||||||||||||
Total | $ | 449,875 | $ | 507,291 | $ | 57,416 | $ | 620,983 | $ | 685,575 | $ | 64,592 |
Balance at December 31, 2019 | $ | 827,545 | ||||||
Fair value adjustment due to fair value option | 36,472 | |||||||
Additional fundings(A) | 33,041 | |||||||
Proceeds from repayments | (229,218) | |||||||
Accretion of loan discount and premium amortization, net | 24,120 | |||||||
Fair value adjustments due to: | ||||||||
Changes in instrument-specific credit risk | 5,195 | |||||||
Other factors | (11,580) | |||||||
Balance at December 31, 2020 | $ | 685,575 | ||||||
Additional fundings(A) | 29,002 | |||||||
Proceeds from repayments | (206,078) | |||||||
Accretion of loan discount and premium amortization, net | 18,925 | |||||||
Fair value adjustments due to: | ||||||||
Changes in instrument-specific credit risk | 22,915 | |||||||
Other factors | (43,048) | |||||||
Balance at December 31, 2021 | $ | 507,291 |
Carrying Value(A) | % of Portfolio | Loan Count | % of Portfolio | Weighted Average Yield | Weighted Average Original Life (Months) | Weighted Average Committed Loan Balance to Value(B) | ||||||||||||||||||||||||||||||||||||||
Construction | $ | 610,446 | 40.3 | % | 486 | 33.2 | % | 8.3 | % | 16.0 | 75.6% / 65.0% | |||||||||||||||||||||||||||||||||
Bridge | 716,764 | 47.3 | % | 632 | 43.2 | % | 7.8 | % | 14.5 | 73.8 | % | |||||||||||||||||||||||||||||||||
Renovation | 188,552 | 12.4 | % | 346 | 23.6 | % | 8.1 | % | 13.4 | 78.5% / 67.1% | ||||||||||||||||||||||||||||||||||
$ | 1,515,762 | 100.0 | % | 1,464 | 100.0 | % | 8.1 | % | 15.2 |
Balance at December 31, 2020 | $ | — | ||||||
Genesis acquisition (Note 3) | 1,505,635 | |||||||
Initial loan advances | 60,125 | |||||||
Construction holdbacks and draws | 12,856 | |||||||
Paydowns and payoffs | (60,867) | |||||||
Fair value adjustments due to: | ||||||||
Changes in instrument-specific credit risk | — | |||||||
Other factors | (1,987) | |||||||
Balance at December 31, 2021 | $ | 1,515,762 |
Days Past Due | Unpaid Principal Balance | Fair Value | Fair Value Over (Under) Unpaid Principal Balance | |||||||||||||||||
Current | $ | 1,473,894 | $ | 1,515,762 | $ | 41,868 | ||||||||||||||
90+ | — | — | — | |||||||||||||||||
$ | 1,473,894 | $ | 1,515,762 | $ | 41,868 |
State Concentration | Percentage of Total Loan Commitment | |||||||
California | 58.9 | % | ||||||
Washington | 12.2 | % | ||||||
New York | 5.6 | % | ||||||
Other U.S. | 23.3 | % | ||||||
100.0 | % |
December 31, | |||||||||||||||||
Balance Sheet Location | 2021 | 2020 | |||||||||||||||
Derivative assets | |||||||||||||||||
Interest rate swaps(A) | Other assets | $ | 52 | $ | — | ||||||||||||
Interest rate lock commitments | Other assets | 114,871 | 289,355 | ||||||||||||||
Treasury futures and options on treasury futures | Other assets | 7,778 | — | ||||||||||||||
TBAs | Other assets | 15,472 | 789 | ||||||||||||||
$ | 138,173 | $ | 290,144 | ||||||||||||||
Derivative liabilities | |||||||||||||||||
Interest rate swaps(A) | Accrued expenses and other liabilities | $ | — | $ | 25 | ||||||||||||
Interest rate lock commitments | Accrued expenses and other liabilities | 3,093 | 281 | ||||||||||||||
TBAs | Accrued expenses and other liabilities | 31,490 | 119,456 | ||||||||||||||
$ | 34,583 | $ | 119,762 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Interest rate swaps(A) | $ | 11,490,000 | $ | 6,515,000 | |||||||
Interest rate lock commitments | 10,653,850 | 15,031,345 | |||||||||
TBAs, short position(B) | 22,697,706 | 23,529,408 | |||||||||
Treasury futures | 314,500 | — | |||||||||
Options on treasury futures | 3,200,000 | — |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Servicing revenue, net(A) | |||||||||||||||||
TBAs | $ | 10,483 | $ | — | $ | — | |||||||||||
Treasury futures | (23,961) | — | — | ||||||||||||||
Options on treasury futures | (17,003) | — | — | ||||||||||||||
(30,481) | — | — | |||||||||||||||
Gain on originated residential mortgage loans, held for sale, net(A) | |||||||||||||||||
Interest rate lock commitments | (293,699) | 249,183 | 26,151 | ||||||||||||||
TBAs | 118,564 | (115,243) | 3,067 | ||||||||||||||
Forward loan sale commitments | — | 27 | (66) | ||||||||||||||
(175,135) | 133,967 | 29,152 | |||||||||||||||
Change in fair value of investments(A) | |||||||||||||||||
Interest rate swaps | 298,803 | (53,467) | (58,918) | ||||||||||||||
Interest rate caps | — | — | (3) | ||||||||||||||
TBAs | — | — | 2,778 | ||||||||||||||
298,803 | (53,467) | (56,143) | |||||||||||||||
Gain (loss) on settlement of investments, net(B) | |||||||||||||||||
Interest rate swaps | (136,073) | (2,685) | (8,671) | ||||||||||||||
TBAs(C) | (36,508) | (72,127) | (121,252) | ||||||||||||||
(172,581) | (74,812) | (129,923) | |||||||||||||||
Total gain (loss) | $ | (79,394) | $ | 5,688 | $ | (156,914) |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations/Collateral | Outstanding Face Amount | Carrying Value(A) | Final Stated Maturity(B) | Weighted Average Funding Cost | Weighted Average Life (Years) | Outstanding Face | Amortized Cost Basis | Carrying Value | Weighted Average Life (Years) | Carrying Value(A) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Financing Agreements(C) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facilities-Residential Mortgage Loans(F) | $ | 10,135,658 | $ | 10,131,700 | Feb-22 to Sep-25 | 1.92 | % | 0.7 | $ | 10,904,545 | $ | 10,936,752 | $ | 10,977,338 | 23.0 | $ | 4,039,564 | |||||||||||||||||||||||||||||||||||||||||||||
Warehouse Credit Facility- Mortgage Loans Receivable(G) | 1,252,660 | 1,252,660 | Dec-23 | 2.15 | % | 2.0 | 1,473,894 | 1,473,894 | 1,515,762 | 1.3 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Agency RMBS(D) | 8,386,538 | 8,386,538 | Jan-22 to Apr-22 | 0.16 | % | 0.1 | 8,396,800 | 8,661,005 | 8,442,009 | 6.9 | 12,682,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS(E) | 656,874 | 656,874 | Jan-22 to Aug-22 | 2.43 | % | 0.1 | 13,370,966 | 869,226 | 924,948 | 3.3 | 817,209 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other(G)(H) | 165,112 | 165,112 | Mar-22 to Sep-25 | 2.95 | % | 1.0 | N/A | 234,501 | 230,062 | 4.4 | 8,480 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Financing Agreements | 20,596,842 | 20,592,884 | 1.25 | % | 0.6 | 17,547,680 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Excess MSRs(I) | 237,835 | 237,835 | Aug-25 | 3.74 | % | 3.7 | 80,461,630 | 268,102 | 333,845 | 6.3 | 275,088 | |||||||||||||||||||||||||||||||||||||||||||||||||||
MSRs(J) | 4,245,401 | 4,234,771 | Mar-22 to Dec-26 | 3.47 | % | 3.3 | 524,065,651 | 6,049,595 | 6,609,171 | 6.3 | 2,691,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advance Investments(K) | 356,580 | 355,722 | Apr-22 to Dec-22 | 1.27 | % | 0.9 | 369,440 | 405,786 | 421,807 | 6.9 | 423,144 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Servicer Advances(K) | 2,362,080 | 2,355,969 | Feb-22 to Nov-24 | 2.19 | % | 1.3 | 2,812,974 | 2,855,148 | 2,855,148 | 0.7 | 2,585,575 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Mortgage Loans(L) | 1,020,206 | 1,001,933 | Mar-23 to Jul-43 | 1.82 | % | 3.2 | 889,840 | 1,158,669 | 1,147,245 | 23.9 | 1,039,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer Loans(M) | 454,542 | 458,580 | Sep-37 | 2.05 | % | 8.6 | 449,713 | 461,026 | 507,242 | 3.3 | 628,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total Secured Notes and Bonds Payable | 8,676,644 | 8,644,810 | 2.77 | % | 2.9 | 7,644,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total/Weighted Average | $ | 29,273,486 | $ | 29,237,694 | 1.71 | % | 1.3 | $ | 25,191,875 |
Excess MSRs | MSRs | Servicer Advances(A) | Real Estate Securities | Residential Mortgage Loans and REO | Consumer Loans | Mortgage Loans Receivable | Total | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 217,300 | $ | 2,640,036 | $ | 3,181,672 | $ | 22,799,196 | $ | 5,981,480 | $ | 816,689 | $ | — | $ | 35,636,373 | ||||||||||||||||||||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | — | — | — | 113,228,180 | 63,453,603 | — | — | 176,681,783 | ||||||||||||||||||||||||||||||||||||||||||
Repayments | — | — | — | (122,526,887) | (64,520,481) | — | — | (187,047,368) | ||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | — | — | (853) | (2,107) | — | — | (2,960) | ||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | 193,357 | 3,575,811 | 4,072,560 | — | 875,758 | 663,047 | — | 9,380,533 | ||||||||||||||||||||||||||||||||||||||||||
Repayments | (135,569) | (3,517,429) | (4,245,295) | — | (697,789) | (851,688) | — | (9,447,770) | ||||||||||||||||||||||||||||||||||||||||||
Discount on borrowings, net of amortization | — | — | — | — | — | (2,882) | — | (2,882) | ||||||||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on notes, fair value | — | — | — | — | (2,627) | 3,593 | — | 966 | ||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | (6,627) | (218) | — | 45 | — | — | (6,800) | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 275,088 | $ | 2,691,791 | $ | 3,008,719 | $ | 13,499,636 | $ | 5,087,882 | $ | 628,759 | $ | — | $ | 25,191,875 | ||||||||||||||||||||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired borrowings, net of discount (Note 3) | — | — | — | — | 7,090,577 | — | — | 7,090,577 | ||||||||||||||||||||||||||||||||||||||||||
Borrowings | — | — | — | 64,749,425 | 129,876,689 | — | 1,278,647 | 195,904,761 | ||||||||||||||||||||||||||||||||||||||||||
Repayments | — | — | — | (69,206,600) | (130,719,004) | — | (25,987) | (199,951,591) | ||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | — | — | 951 | 506 | — | — | 1,457 | ||||||||||||||||||||||||||||||||||||||||||
Secured Notes and Bonds Payable | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquired borrowings, net of discount | — | 1,045,000 | 76,772 | — | — | — | — | 1,121,772 | ||||||||||||||||||||||||||||||||||||||||||
Borrowings | — | 4,042,325 | 2,971,974 | — | 949,778 | — | — | 7,964,077 | ||||||||||||||||||||||||||||||||||||||||||
Repayments | (37,253) | (3,549,148) | (3,346,873) | — | (974,176) | (170,623) | — | (8,078,073) | ||||||||||||||||||||||||||||||||||||||||||
Unrealized (gain) loss on notes, fair value | — | — | — | — | (13,435) | 444 | — | (12,991) | ||||||||||||||||||||||||||||||||||||||||||
Capitalized deferred financing costs, net of amortization | — | 4,803 | 1,099 | — | (72) | — | — | 5,830 | ||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 237,835 | $ | 4,234,771 | $ | 2,711,691 | $ | 9,043,412 | $ | 11,298,745 | $ | 458,580 | $ | 1,252,660 | $ | 29,237,694 |
Year Ending | Nonrecourse(A) | Recourse(B) | Total | |||||||||||||||||
2022 | $ | 1,088,882 | $ | 17,402,381 | $ | 18,491,263 | ||||||||||||||
2023 | 1,380,352 | 3,824,659 | 5,205,011 | |||||||||||||||||
2024 | 750,000 | 1,211,791 | 1,961,791 | |||||||||||||||||
2025 | — | 2,043,989 | 2,043,989 | |||||||||||||||||
2026 and thereafter | 525,036 | 1,596,396 | 2,121,432 | |||||||||||||||||
$ | 3,744,270 | $ | 26,079,216 | $ | 29,823,486 |
Debt Obligations/ Collateral | Borrowing Capacity | Balance Outstanding | Available Financing(A) | |||||||||||||||||
Secured Financing Agreements | ||||||||||||||||||||
Residential mortgage loans and REO | $ | 5,178,992 | $ | 3,478,514 | $ | 1,700,478 | ||||||||||||||
Loan originations | 21,564,856 | 8,824,916 | 12,739,940 | |||||||||||||||||
Secured Notes and Bonds Payable | ||||||||||||||||||||
Excess MSRs | 286,380 | 237,835 | 48,546 | |||||||||||||||||
MSRs | 4,999,244 | 4,245,401 | 753,843 | |||||||||||||||||
Servicer advances | 4,002,644 | 2,718,660 | 1,283,984 | |||||||||||||||||
Residential mortgage loans | 200,000 | 199,713 | 287 | |||||||||||||||||
$ | 36,232,116 | $ | 19,705,039 | $ | 16,527,078 |
Year | Price | |||||||
2022 | 103.125% | |||||||
2023 | 101.563% | |||||||
2024 and thereafter | 100.000% |
Fair Value | |||||||||||||||||||||||||||||||||||
Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Excess MSRs(A) | $ | 80,461,630 | $ | 344,947 | $ | — | $ | — | $ | 344,947 | $ | 344,947 | |||||||||||||||||||||||
MSRs and MSR financing receivables(A) | 548,613,089 | 6,858,803 | — | — | 6,858,803 | 6,858,803 | |||||||||||||||||||||||||||||
Servicer advance investments | 369,440 | 421,807 | — | — | 421,807 | 421,807 | |||||||||||||||||||||||||||||
Real estate and other securities | 24,314,300 | 9,396,539 | — | 8,444,597 | 951,942 | 9,396,539 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | 144,967 | 132,921 | — | — | 134,655 | 134,655 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | 10,955,534 | 11,214,924 | — | 9,361,520 | 1,853,404 | 11,214,924 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | 623,937 | 569,933 | — | — | 569,933 | 569,933 | |||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | 1,787,314 | 1,787,314 | — | 1,787,314 | — | 1,787,314 | |||||||||||||||||||||||||||||
Consumer loans | 449,875 | 507,291 | — | — | 507,291 | 507,291 | |||||||||||||||||||||||||||||
Derivative assets | 47,080,263 | 138,173 | — | 23,302 | 114,871 | 138,173 | |||||||||||||||||||||||||||||
Mortgage loans receivable | 1,473,894 | 1,515,762 | — | — | 1,515,762 | 1,515,762 | |||||||||||||||||||||||||||||
Note receivable | 60,373 | 60,549 | — | — | 60,549 | 60,549 | |||||||||||||||||||||||||||||
Loans receivable | 228,692 | 229,631 | — | — | 229,631 | 229,631 | |||||||||||||||||||||||||||||
Cash and cash equivalents | 1,332,575 | 1,332,575 | 1,332,575 | — | — | 1,332,575 | |||||||||||||||||||||||||||||
Restricted cash | 195,867 | 195,867 | 195,867 | — | — | 195,867 | |||||||||||||||||||||||||||||
Other assets(B) | N/A | 39,229 | 3,134 | — | 36,095 | 39,229 | |||||||||||||||||||||||||||||
$ | 34,746,265 | $ | 1,531,576 | $ | 19,616,733 | $ | 13,599,690 | $ | 34,747,999 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Secured financing agreements | $ | 20,596,842 | $ | 20,592,884 | $ | — | $ | 20,596,842 | $ | — | $ | 20,596,842 | |||||||||||||||||||||||
Secured notes and bonds payable(C) | 8,676,644 | 8,644,810 | — | — | 8,662,463 | 8,662,463 | |||||||||||||||||||||||||||||
Unsecured senior notes, net of issuance costs | 543,293 | 543,293 | — | — | 553,581 | 553,581 | |||||||||||||||||||||||||||||
Residential mortgage loan repurchase liability | 1,787,314 | 1,787,314 | — | 1,787,314 | — | 1,787,314 | |||||||||||||||||||||||||||||
Derivative liabilities | 1,275,793 | 34,583 | — | 31,490 | 3,093 | 34,583 | |||||||||||||||||||||||||||||
Contingent consideration | N/A | 4,951 | — | — | 4,951 | 4,951 | |||||||||||||||||||||||||||||
$ | 31,607,835 | $ | — | $ | 22,415,646 | $ | 9,224,088 | $ | 31,639,734 |
Fair Value | |||||||||||||||||||||||||||||||||||
Principal Balance or Notional Amount | Carrying Value | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||
Excess MSRs(A) | $ | 72,688,905 | $ | 310,938 | $ | — | $ | — | $ | 310,938 | $ | 310,938 | |||||||||||||||||||||||
Excess MSRs, equity method investees(A) | 28,453,512 | 99,917 | — | — | 99,917 | 99,917 | |||||||||||||||||||||||||||||
MSRs and MSR financing receivables(A) | 435,435,827 | 4,585,841 | — | — | 4,585,841 | 4,585,841 | |||||||||||||||||||||||||||||
Servicer advance investments | 449,150 | 538,056 | — | — | 538,056 | 538,056 | |||||||||||||||||||||||||||||
Real estate and other securities | 31,869,681 | 14,244,558 | — | 13,063,634 | 1,180,924 | 14,244,558 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | 637,138 | 509,887 | — | — | 509,887 | 509,887 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | 4,675,833 | 4,705,816 | — | 3,059,611 | 1,646,205 | 4,705,816 | |||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | 769,348 | 674,179 | — | — | 674,179 | 674,179 | |||||||||||||||||||||||||||||
Residential mortgage loans subject to repurchase | 1,452,005 | 1,452,005 | — | 1,452,005 | — | 1,452,005 | |||||||||||||||||||||||||||||
Consumer loans | 620,983 | 685,575 | — | — | 685,575 | 685,575 | |||||||||||||||||||||||||||||
Derivative assets | 38,427,601 | 290,144 | — | 789 | 289,355 | 290,144 | |||||||||||||||||||||||||||||
Note receivable | 51,575 | 52,389 | — | — | 49,889 | 49,889 | |||||||||||||||||||||||||||||
Cash and cash equivalents | 944,854 | 944,854 | 944,854 | — | — | 944,854 | |||||||||||||||||||||||||||||
Restricted cash | 135,619 | 135,619 | 135,619 | — | — | 135,619 | |||||||||||||||||||||||||||||
Other assets(B) | N/A | 48,032 | 11,187 | — | 36,845 | 48,032 | |||||||||||||||||||||||||||||
$ | 29,277,810 | $ | 1,091,660 | $ | 17,576,039 | $ | 10,607,611 | $ | 29,275,310 | ||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Secured financing agreements | $ | 17,552,126 | $ | 17,547,680 | $ | — | $ | 17,552,126 | $ | — | $ | 17,552,126 | |||||||||||||||||||||||
Secured notes and bonds payable(C) | 7,667,239 | 7,644,195 | — | — | 7,651,325 | 7,651,325 | |||||||||||||||||||||||||||||
Unsecured senior notes, net of issuance costs | 541,516 | 541,516 | — | — | 541,516 | 541,516 | |||||||||||||||||||||||||||||
Residential mortgage loan repurchase liability | 1,452,005 | 1,452,005 | — | 1,452,005 | — | 1,452,005 | |||||||||||||||||||||||||||||
Derivative liabilities | 6,648,152 | 119,762 | — | 119,481 | 281 | 119,762 | |||||||||||||||||||||||||||||
Excess spread financing | 2,190,991 | 18,420 | — | — | 18,420 | 18,420 | |||||||||||||||||||||||||||||
Contingent consideration | N/A | 14,247 | — | — | 14,247 | 14,247 | |||||||||||||||||||||||||||||
$ | 27,337,825 | $ | — | $ | 19,123,612 | $ | 8,225,789 | $ | 27,349,401 |
Level 3 | ||||||||||||||||||||||||||||||||
Excess MSRs(A)(B) | MSRs and MSR Financing Receivables(A) | Servicer Advance Investments | Non-Agency RMBS | Derivatives(C) | Residential Mortgage Loans | Consumer Loans | Notes and Loans Receivable | Mortgage Loans Receivable | Total | |||||||||||||||||||||||
Balance at December 31, 2019 | $ | 505,343 | $ | 5,686,233 | $ | 581,777 | $ | 7,957,785 | $ | 39,891 | $ | 3,998,825 | $ | 827,545 | $ | 37,001 | $ | — | $ | 20,139,743 | ||||||||||||
Transfers | ||||||||||||||||||||||||||||||||
Transfers from Level 3 | — | — | — | — | — | (718,892) | — | — | — | (718,892) | ||||||||||||||||||||||
Transfers to Level 3 | — | — | — | — | — | 445,040 | — | — | — | 445,040 | ||||||||||||||||||||||
Gains (losses) included in net income | ||||||||||||||||||||||||||||||||
Reversal (provision) for credit losses on securities(D) | — | — | — | (13,404) | — | — | — | — | — | (13,404) | ||||||||||||||||||||||
Change in fair value of Excess MSRs(D) | (16,232) | — | — | — | — | — | — | — | — | (32,464) | ||||||||||||||||||||||
Change in fair value of Excess MSRs, equity method investees(D) | (3,489) | — | — | — | — | — | — | — | — | (6,978) | ||||||||||||||||||||||
Servicing revenue, net(E) | — | (2,183,073) | — | — | — | — | — | — | — | (2,183,073) | ||||||||||||||||||||||
Change in fair value of servicer advance investments | — | — | 763 | — | — | — | — | — | — | 763 | ||||||||||||||||||||||
Change in fair value of residential mortgage loans | — | — | — | — | — | (107,604) | — | — | — | (107,604) | ||||||||||||||||||||||
Gain (loss) on settlement of investments, net | 67 | — | — | (953,541) | — | — | — | — | — | (953,407) | ||||||||||||||||||||||
Other income (loss), net(D) | (12,190) | — | — | (42,506) | — | (8,276) | (6,385) | 814 | — | (80,733) | ||||||||||||||||||||||
Gains (losses) included in other comprehensive income(F) | — | — | — | (580,102) | 249,183 | (6,020) | 36,472 | — | — | (300,467) | ||||||||||||||||||||||
Interest income | 28,352 | — | 18,182 | 105,373 | — | — | 24,120 | 3,074 | — | 207,453 | ||||||||||||||||||||||
Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases, net(G) | — | 431,608 | 1,294,757 | 575,030 | — | 2,415,084 | 33,041 | 11,500 | — | 4,761,020 | ||||||||||||||||||||||
Proceeds from sales | (1,061) | (15,341) | — | (5,288,480) | — | (3,391,887) | — | — | — | (8,697,830) | ||||||||||||||||||||||
Proceeds from repayments | (89,935) | — | (1,357,423) | (577,543) | — | (305,886) | (229,218) | — | — | (2,649,940) | ||||||||||||||||||||||
Originations and other | — | 666,414 | — | (1,688) | — | — | — | — | — | 664,726 | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | 410,855 | $ | 4,585,841 | $ | 538,056 | $ | 1,180,924 | $ | 289,074 | $ | 2,320,384 | $ | 685,575 | $ | 52,389 | $ | — | $ | 10,473,953 | ||||||||||||
Transfers | ||||||||||||||||||||||||||||||||
Transfers from Level 3 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to Level 3 | — | — | — | — | — | 2,386 | — | — | — | 2,386 | ||||||||||||||||||||||
Acquisitions (Note 3) | — | 1,507,524 | — | — | 116,403 | — | — | — | 1,505,635 | 3,129,562 | ||||||||||||||||||||||
Gains (losses) included in net income | ||||||||||||||||||||||||||||||||
Reversal (provision) for credit losses on securities(D) | — | — | — | 5,201 | — | — | — | — | — | 5,201 | ||||||||||||||||||||||
Change in fair value of excess MSRs(D) | (15,078) | — | — | — | — | — | — | — | — | (15,078) | ||||||||||||||||||||||
Change in fair value of excess MSRs, equity method investees(D) | 1,818 | — | — | — | — | — | — | — | — | 1,818 | ||||||||||||||||||||||
Servicing revenue, net(E) | — | (513,686) | — | — | — | — | — | — | — | (513,686) | ||||||||||||||||||||||
Change in fair value of servicer advance investments | — | — | (9,076) | — | — | — | — | — | — | (9,076) | ||||||||||||||||||||||
Change in fair value of residential mortgage loans | — | — | — | — | — | 155,758 | — | — | — | 155,758 | ||||||||||||||||||||||
Gain (loss) on settlement of investments, net | 404 | — | — | (28,550) | — | — | — | — | — | (28,146) | ||||||||||||||||||||||
Included in other income (loss), net(D) | (326) | — | — | 9,136 | (293,699) | (1,357) | (20,133) | 301 | — | (306,078) | ||||||||||||||||||||||
Gains (losses) included in other comprehensive income(F) | — | — | — | 28,882 | — | — | — | — | — | 28,882 | ||||||||||||||||||||||
Interest income | 20,296 | — | 1,678 | 13,740 | — | — | 18,925 | 9,433 | — | 64,072 | ||||||||||||||||||||||
Purchases, sales and repayments | ||||||||||||||||||||||||||||||||
Purchases, net(G) | — | 10,949 | 1,286,526 | 174,340 | — | 4,128,097 | 29,002 | 6,688 | — | 5,635,602 | ||||||||||||||||||||||
Proceeds from sales | (984) | (63,451) | — | (164,630) | — | (3,675,071) | — | — | — | (3,904,136) | ||||||||||||||||||||||
Proceeds from repayments | (72,038) | — | (1,395,377) | (267,101) | — | (487,830) | (206,078) | (28,631) | (60,867) | (2,517,922) | ||||||||||||||||||||||
Originations and other | — | 1,331,626 | — | — | — | (19,030) | — | 250,000 | 70,994 | 1,633,590 | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | 344,947 | $ | 6,858,803 | $ | 421,807 | $ | 951,942 | $ | 111,778 | $ | 2,423,337 | $ | 507,291 | $ | 290,180 | $ | 1,515,762 | $ | 13,425,847 |
Level 3 | ||||||||||||||||||||||||||
Excess Spread Financing | Mortgage-Backed Securities Issued | Contingent Consideration | ||||||||||||||||||||||||
Total | ||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 31,777 | $ | 659,738 | $ | 55,222 | $ | 746,737 | ||||||||||||||||||
Gains (losses) included in net income | ||||||||||||||||||||||||||
Included in servicing revenue, net(A) | (14,164) | — | — | (14,164) | ||||||||||||||||||||||
Included in other income(B) | — | 966 | 4,844 | 5,810 | ||||||||||||||||||||||
Purchases, sales and payments | — | |||||||||||||||||||||||||
Purchases | — | 1,520,382 | — | 1,520,382 | ||||||||||||||||||||||
Payments | — | (516,769) | (45,819) | (562,588) | ||||||||||||||||||||||
Other | 807 | (1,465) | — | (658) | ||||||||||||||||||||||
Balance at December 31, 2020 | $ | 18,420 | $ | 1,662,852 | $ | 14,247 | $ | 1,695,519 | ||||||||||||||||||
Gains (losses) included in net income | ||||||||||||||||||||||||||
Included in servicing revenue, net(A) | (3,538) | — | — | (3,538) | ||||||||||||||||||||||
Included in other income(B) | — | (12,991) | 1,037 | (11,954) | ||||||||||||||||||||||
Interest income | — | — | — | — | ||||||||||||||||||||||
Purchases, sales and payments | ||||||||||||||||||||||||||
Purchases | — | — | — | — | ||||||||||||||||||||||
Proceeds from sales | (15,378) | — | — | (15,378) | ||||||||||||||||||||||
Payments | — | (1,138,754) | (10,333) | (1,149,087) | ||||||||||||||||||||||
Other | 496 | — | — | 496 | ||||||||||||||||||||||
Balance at December 31, 2021 | $ | — | $ | 511,107 | $ | 4,951 | $ | 516,058 |
December 31, 2021 | |||||||||||||||||||||||||||||
Significant Inputs(A) | |||||||||||||||||||||||||||||
Prepayment Rate(B) | Delinquency(C) | Recapture Rate(D) | Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps)(E) | Collateral Weighted Average Maturity (Years)(F) | |||||||||||||||||||||||||
Excess MSRs Directly Held (Note 5) | |||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||
Original Pools | 5.1% - 8.7% (6.7%) | 0.2% - 6.9% (0.9%) | 3.2% - 20.6% (6.4%) | 15 - 32 (21) | 11 - 21 (18) | ||||||||||||||||||||||||
Recaptured Pools | 4.5% - 9.4% (6.5%) | 0.1% - 2.2% (0.8%) | —% - 25.2% (9.3%) | 20 - 27 (23) | 19 - 24 (22) | ||||||||||||||||||||||||
4.5% - 9.4% (6.6%) | 0.1% - 6.9% (0.9%) | —% - 25.2% (7.7%) | 15 - 32 (22) | 11 - 24 (20) | |||||||||||||||||||||||||
Non-Agency(G) | |||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||
Original Pools | 5.8% - 12.4% (7.7%) | 5.5% - 9.6% (7) | —% - 11.3% (7.2%) | 6 - 25 (15) | 18 - 28 (23) | ||||||||||||||||||||||||
Recaptured Pools | 3.6% - 4.9% (4%) | 0.1% - 0.3 (0.2) | 4% - 10.1% (5.5%) | 22 - 25 (24) | 21 - 23 (23) | ||||||||||||||||||||||||
3.6% - 12.4% (7%) | 0.1% - 9.6% (7) | —% - 11.3% (6.9%) | 6 - 25 (17) | 18 - 28 (23) | |||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs Directly Held | 3.6% - 12.4% (6.8%) | 0.1% - 9.6% (3.2%) | —% - 25.2% (7.3%) | 6 - 32 (19) | 11 - 28 (21) | ||||||||||||||||||||||||
Excess MSRs Held through Equity Method Investees (Note 5) | |||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||
Original Pools | 6.6% - 8.5% (7%) | 0.6% - 1.5% (0.9%) | 3.2% - 9.5% (5.1%) | 15 - 25 (19) | 16 - 18 (17) | ||||||||||||||||||||||||
Recaptured Pools | 5.4% - 7.5% (6.5%) | 0.3% - 1.6% (0.8%) | 3% - 9.2% (6.2%) | 22 - 26 (24) | 20 - 23 (21) | ||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs Held through Investees | 5.4% - 8.5% (6.7%) | 0.3% - 1.6% (0.9%) | 3.0% - 9.5% (5.7%) | 15 - 26 (22) | 16 - 23 (19) | ||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs All Pools | 3.6% - 12.4% (6.8%) | 0.1% - 9.6% (2.4%) | —% - 25.2% (6.7%) | 6 - 32 (20) | 11 - 28 (21) | ||||||||||||||||||||||||
MSRs and MSR Financing Receivables (Note 6)(H) | |||||||||||||||||||||||||||||
Agency | 6.0% - 14.6% (10.2%) | 0.1% - 2.2% (0.9%) | —% - 31.4% (10.7%) | 25 - 30 (28) | 0 - 40 (23) | ||||||||||||||||||||||||
Non-Agency | 6.7% - 50.4% (6.7%) | 0.7% - 64.6% (11.8%) | 4.0% - 27.0% (6.8%) | 26 - 86 (48) | 0 - 30 (24) | ||||||||||||||||||||||||
Ginnie Mae | 5.3% - 14.3% (12.6%) | 1.4% - 6.3% (4.1%) | 4.8% - 24.5% (12.7%) | 31 - 45 (39) | 0 - 30 (28) | ||||||||||||||||||||||||
Total/Weighted Average—MSRs and MSR Financing Receivables | 5.3% - 50.4% (10.2%) | 0.1% - 64.6% (3.1%) | —% - 31.4% (10.0%) | 25 - 86 (33) | 0 - 40 (24) |
December 31, 2020 | |||||||||||||||||||||||||||||
Significant Inputs(A) | |||||||||||||||||||||||||||||
Prepayment Rate(B) | Delinquency(C) | Recapture Rate(D) | Mortgage Servicing Amount or Excess Mortgage Servicing Amount (bps)(E) | Collateral Weighted Average Maturity (Years)(F) | |||||||||||||||||||||||||
Excess MSRs Directly Held (Note 5) | |||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||
Original Pools | 7.1% - 10.9% (7.8%) | —% - 3.5% (1.4%) | 4.4% - 23.3% (10.3%) | 15 - 31 (21) | 13 - 21 (19) | ||||||||||||||||||||||||
Recaptured Pools | 7.0% - 11.9% (9.6%) | —% - 4.0% (0.9%) | —% - 35.0% (20.4%) | 21 - 29 (24) | 19 - 19 (22) | ||||||||||||||||||||||||
7.0% - 11.9% (8.4%) | —% - 4.0% (1.2%) | —% - 35.0% (13.8%) | 15 - 31 (22) | 13 - 24 (20) | |||||||||||||||||||||||||
Non-Agency(G) | |||||||||||||||||||||||||||||
Mr. Cooper and SLS Serviced: | |||||||||||||||||||||||||||||
Original Pools | 6.6% - 11.9% (9.0%) | 2.6% - 13.9% (10.2%) | —% - 13.1% (10.0%) | 5 - 25 (15) | 18 - 29 (23) | ||||||||||||||||||||||||
Recaptured Pools | 5.6% - 7.4% (6.1%) | 0.2% - 0.5% (0.4%) | 12.1% - 21.4% (14.2%) | 23 - 27 (25) | 21 - 23 (23) | ||||||||||||||||||||||||
5.6% - 11.9% (8.5%) | 0.2% - 13.9% (10.2%) | —% - 21.4% (10.7%) | 5 - 27 (17) | 18 - 29 (23) | |||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs Directly Held | 5.6% - 11.9% (8.5%) | —% - 13.9% (4.8%) | —% - 35.0% (12.3%) | 5 - 31 (19) | 13 - 29 (21) | ||||||||||||||||||||||||
Excess MSRs Held through Equity Method Investees (Note 5) | |||||||||||||||||||||||||||||
Agency | |||||||||||||||||||||||||||||
Original Pools | 7.1% - 10.2% (8.0%) | 1.2% - 2.5% (1.6%) | 5.2% - 23.3% (8.9%) | 15 - 25 (19) | 18 - 19 (18) | ||||||||||||||||||||||||
Recaptured Pools | 8.6% - 10.5% (9.3%) | 0.6% - 1.7% (1.2%) | 11.7% - 28.9% (15.0%) | 22 - 28 (25) | 20 - 23 (22) | ||||||||||||||||||||||||
Total/Weighted Average- Excess MSRs Held through Investees | 7.5% - 10.7% (9.0%) | 0.6% - 2.2% (1.2%) | 5.5% - 29.8% (12.9%) | 15 - 28 (22) | 18 - 23 (20) | ||||||||||||||||||||||||
Total/Weighted Average—Excess MSRs All Pools | 5.6% - 11.9% (8.5%) | —% - 13.9% (3.6%) | —% - 35.0% (12.2%) | 5 - 31 (20) | 13 - 29 (21) | ||||||||||||||||||||||||
MSRs and MSR Financing Receivables (Note 6)(H) | |||||||||||||||||||||||||||||
Agency | 7.9% - 23.3% (13.1%) | 0.4% - 2.1% (0.9%) | 2.5% - 35.5% (20.5%) | 25 - 31 (28) | 0 - 30 (22) | ||||||||||||||||||||||||
Non-Agency | 7.6% - 16.4% (7.7%) | 0.9% - 13.0% (12.9%) | 4.3% - 31.6% (8.1%) | 26 - 88 (48) | 0 - 30 (25) | ||||||||||||||||||||||||
Ginnie Mae | 9.0% - 24.1% (20.3%) | 2.3% - 5.6% (4.7%) | 16.2% - 35.0% (24.9%) | 32 - 50 (45) | 0 - 30 (27) | ||||||||||||||||||||||||
Total/Weighted Average—MSRs and MSR Financing Receivables | 7.6% - 24.1% (12.9%) | 0.4% - 13.0% (4.2%) | 2.5% - 35.5% (20.0%) | 25 - 88 (35) | 0 - 30 (23) |
Significant Inputs | |||||||||||||||||||||||||||||||||||
Outstanding Servicer Advances to UPB of Underlying Residential Mortgage Loans | Prepayment Rate(A) | Delinquency | Mortgage Servicing Amount(B) | Discount Rate | Collateral Weighted Average Maturity (Years)(C) | ||||||||||||||||||||||||||||||
December 31, 2021 | 0.7% - 1.8% (1.7%) | 6.5% - 7.7% (7.7%) | 8.2% - 15.0% (14.8%) | 17.6 - 19.8 (19.7) bps | 5.2% - 5.7% (5.2%) | 22.1 | |||||||||||||||||||||||||||||
December 31, 2020 | 1.1% - 1.7% (1.7%) | 9.3% - 9.3% (9.3%) | 6.9% - 9.1% (9.0%) | 17.1 - 19.8 (19.7) bps | 5.2% - 5.7% (5.2%) | 22.3 |
Fair Value | ||||||||||||||||||||||||||||||||||||||
Asset Type | Outstanding Face Amount | Amortized Cost Basis | Multiple Quotes(A) | Single Quote(B) | Total | Level | ||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 8,399,343 | $ | 8,663,693 | $ | 8,444,597 | $ | — | $ | 8,444,597 | 2 | |||||||||||||||||||||||||||
Non-Agency RMBS(C) | 15,914,957 | 886,643 | 951,942 | — | 951,942 | 3 | ||||||||||||||||||||||||||||||||
Total | $ | 24,314,300 | $ | 9,550,336 | $ | 9,396,539 | $ | — | $ | 9,396,539 | ||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | $ | 12,491,152 | $ | 12,951,608 | $ | 13,063,634 | $ | — | $ | 13,063,634 | 2 | |||||||||||||||||||||||||||
Non-Agency RMBS(C) | 19,378,530 | 1,153,643 | 1,171,209 | 9,715 | 1,180,924 | 3 | ||||||||||||||||||||||||||||||||
Total | $ | 31,869,682 | $ | 14,105,251 | $ | 14,234,843 | $ | 9,715 | $ | 14,244,558 |
Fair Value | Discount Rate | Prepayment Rate(a) | CDR(b) | Loss Severity(c) | ||||||||||||||||||||||||||||
Non-Agency RMBS | $ | 945,168 | 1.0% - 15.0% (5.8%) | —% - 25.0% (10.3%) | —% - 12.0% (0.9%) | —% - 100.0% (13.9%) |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Acquired | $ | 1,713,662 | 2.2% - 7.5% (3.7%) | 1.7% - 18.6% (11.3%) | —% - 16.7% (1.2%) | 3.1% - 67.2% (37.7%) | ||||||||||||||||||||||||||
Originated | 139,742 | 4.0% | 6.0% | 3.0% | 50.0% | |||||||||||||||||||||||||||
Residential mortgage loans held-for-sale, at fair value | $ | 1,853,404 |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Residential mortgage loans held-for-investment, at fair value | $ | 569,933 | 3.3% - 7.5% (7.2%) | 1.7% - 20.0% (9.7%) | 0.3% - 16.7% (4.8%) | 20.0% - 95.4% (71.5%) |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Consumer loans held-for-investment, at fair value | $ | 507,291 | (7.5%) | (22.9%) | (4.1%) | (64.0%) |
Fair Value | Loan Funding Probability | Fair Value of initial servicing rights (bps) | ||||||||||||||||||
IRLCs, net | $ | 111,778 | 0.0% - 100.0% (80.9%) | 1.2 - 311.0 (160.1) |
Fair Value | Discount Rate | Prepayment Rate | CDR | Loss Severity | ||||||||||||||||||||||||||||
Asset-backed securities issued | $ | 511,107 | 1.7% - 7.5% (2.0%) | 13.2% - 40.0% (23.4%) | 0.3% - 5.4% (4.0%) | 20.0% - 95.4% (90.3%) |
Fair Value and Carrying Value | Discount Rate | Weighted Average Life (Years)(A) | Prepayment Rate | CDR(B) | Loss Severity(C) | |||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Performing | $ | 113,196 | 3.8% - 7.0% (6.8%) | 4.8 - 8.8 (4.9) | 4.8% - 7.4% (6.0%) | 0.9% - 9.4% (5.9%) | 40.9% - 54.7% (45.5%) | |||||||||||||||||||||||||||||||
Non-performing | 2,287 | 7.5% - 7.5% (7.5%) | 4.7 - 4.7 (4.7) | 1.7% - 1.7% (1.7%) | 16.7% - 16.7% (16.7%) | 41.9% - 41.9% (41.9%) | ||||||||||||||||||||||||||||||||
Total/weighted average | $ | 115,483 | 6.8% | 4.9 | 5.9% | 6.1% | 45.4% | |||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Performing | $ | 129,345 | 4.8% - 8.5% (6.7%) | 3.1 - 9.1 (4.5) | 5.1% - 9.9% (8.8%) | 0.2% - 7.8% (2.0%) | 28.7% - 100.0% (46.2%) | |||||||||||||||||||||||||||||||
Non-performing | 380,542 | 7.5% - 9.0% (7.5%) | 2.9 - 3.8 (3.3) | 2.0% - 2.0% (2.0%) | 2.9% - 2.9% (2.9%) | 8.5% - 30.0% (29.5%) | ||||||||||||||||||||||||||||||||
Total/weighted average | $ | 509,887 | 7.3% | 3.6 | 3.7% | 2.6% | 33.7% |
The Buyer | Shelter Joint Ventures | Residential Mortgage Loans | Consumer Loan SPVs | Servicer Advance Facilities | MSR Financing Facilities | Total | ||||||||||||||||||||||||||||||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage servicing rights, at fair value | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 403,301 | $ | 403,301 | ||||||||||||||||||||||||||||||
Servicer advance investments, at fair value | 409,475 | — | — | — | — | — | 409,475 | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | — | — | 93,226 | — | — | — | 93,226 | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | — | — | 798,644 | — | — | — | 798,644 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | 507,291 | — | — | 507,291 | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 33,777 | 37,369 | 2,882 | — | — | — | 74,028 | |||||||||||||||||||||||||||||||||||||
Restricted cash | 2,210 | — | 171 | 7,249 | — | — | 9,630 | |||||||||||||||||||||||||||||||||||||
Servicer advance facilities | — | — | — | — | 94,306 | — | 94,306 | |||||||||||||||||||||||||||||||||||||
Other assets | 9 | 903 | 2,902 | 6,851 | 24,699 | 332,521 | 367,885 | |||||||||||||||||||||||||||||||||||||
Total Assets | 445,471 | 38,272 | 897,825 | 521,391 | 119,005 | 735,822 | 2,757,786 | |||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Secured financing agreements(A) | — | — | 24,683 | — | — | — | 24,683 | |||||||||||||||||||||||||||||||||||||
Secured notes and bonds payable(A) | 348,670 | — | 802,526 | 458,580 | 93,145 | 367,871 | 2,070,792 | |||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 806 | 6,588 | 10,163 | 862 | 27,771 | 134 | 46,324 | |||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 349,476 | $ | 6,588 | $ | 837,372 | $ | 459,442 | $ | 120,916 | $ | 368,005 | $ | 2,141,799 | ||||||||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Servicer advance investments, at fair value | $ | 522,901 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 522,901 | ||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-investment, at fair value | — | — | 358,629 | — | — | — | 358,629 | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale | — | — | 346,250 | — | — | — | 346,250 | |||||||||||||||||||||||||||||||||||||
Residential mortgage loans, held-for-sale, at fair value | — | — | 614,868 | — | — | — | 614,868 | |||||||||||||||||||||||||||||||||||||
Consumer loans | — | — | — | 682,932 | — | — | 682,932 | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 53,012 | 39,031 | — | — | — | — | 92,043 | |||||||||||||||||||||||||||||||||||||
Restricted cash | 2,808 | — | — | 8,090 | — | — | 10,898 | |||||||||||||||||||||||||||||||||||||
Other assets | 5 | 9,151 | 30,621 | 9,201 | — | — | 48,978 | |||||||||||||||||||||||||||||||||||||
Total Assets | 578,726 | 48,182 | 1,350,368 | 700,223 | — | — | 2,677,499 | |||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Secured notes and bonds payable(A) | 413,701 | — | 1,034,093 | 628,759 | — | — | 2,076,553 | |||||||||||||||||||||||||||||||||||||
Accrued expenses and other liabilities | 1,081 | 9,455 | 1,661 | 764 | — | — | 12,961 | |||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | 414,782 | $ | 9,455 | $ | 1,035,754 | $ | 629,523 | $ | — | $ | — | $ | 2,089,514 |
As of and for the Year Ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Residential mortgage loan UPB | $ | 10,752,079 | $ | 14,211,351 | ||||||||||
Weighted average delinquency(A) | 4.45% | 10.06% | ||||||||||||
Net credit losses | $ | 130,392 | $ | 76,725 | ||||||||||
Face amount of debt held by third parties(B) | $ | 9,897,879 | $ | 12,671,168 | ||||||||||
Carrying value of bonds retained by New Residential(C)(D) | $ | 927,490 | $ | 1,361,624 | ||||||||||
Cash flows received by New Residential on these bonds | $ | 330,197 | $ | 315,939 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | ||||||||||||||||||||||||||||||
Total consolidated equity | $ | 95,995 | $ | 31,684 | $ | 83,597 | $ | 163,944 | $ | 38,727 | $ | 96,418 | |||||||||||||||||||||||
Others’ ownership interest | 10.7 | % | 49.5 | % | 46.5 | % | 26.8 | % | 50.1 | % | 46.5 | % | |||||||||||||||||||||||
Others’ interest in equity of consolidated subsidiary | $ | 10,251 | $ | 15,683 | $ | 39,414 | $ | 43,882 | $ | 19,402 | $ | 45,384 |
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||
The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | The Buyer(A) | Shelter Joint Ventures | Consumer Loan Companies | |||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | (13,937) | $ | 22,839 | $ | 51,307 | $ | 3,326 | $ | 31,188 | $ | 77,760 | $ | 15,892 | $ | 12,717 | $ | 69,143 | |||||||||||||||||||||||||||||||||||
Others’ ownership interest as a percent of total | 12.9 | % | 49.5 | % | 46.5 | % | 26.8 | % | 50.1 | % | 46.5 | % | 26.8 | % | 49.0 | % | 46.5 | % | |||||||||||||||||||||||||||||||||||
Others’ interest in net income of consolidated subsidiaries | $ | (1,800) | $ | 11,298 | $ | 23,858 | $ | 891 | $ | 15,625 | $ | 36,158 | $ | 4,255 | $ | 6,231 | $ | 32,151 |
Number of Shares | Liquidation Preference(A) | Dividends Declared per Share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Series | 2021 | 2020 | 2021 | 2020 | Issuance Discount | Carrying Value(B) | 2021 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Series A, 7.50% issued July 2019(C) | $ | 6,210 | $ | 6,210 | $ | 155,250 | $ | 155,250 | 3.15 | % | $ | 150,026 | $ | 1.88 | $ | 1.88 | $ | 1.16 | ||||||||||||||||||||||||||||||||||||||
Series B, 7.125% issued August 2019(C) | 11,300 | 11,300 | 282,500 | 282,500 | 3.15 | % | 273,418 | 1.78 | 1.78 | 0.89 | ||||||||||||||||||||||||||||||||||||||||||||||
Series C, 6.375% issued February 2020(C) | 16,100 | 16,100 | 402,500 | 402,500 | 3.15 | % | 389,548 | 1.59 | 1.60 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Series D, 7.00% issued September 2021(D) | 18,600 | — | 465,000 | — | 3.15 | % | 449,489 | 0.72 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 52,210 | $ | 33,610 | $ | 1,305,250 | $ | 840,250 | $ | 1,262,481 | $ | 5.97 | $ | 5.26 | $ | 2.05 |
Per Share | ||||||||||||||||||||
Declaration Date | Payment Date | Quarterly Dividend | Total Amounts Distributed (millions) | |||||||||||||||||
March 25, 2019 | April 2019 | $ | 0.50 | $ | 207.7 | |||||||||||||||
June 18, 2019 | July 2019 | 0.50 | 207.8 | |||||||||||||||||
September 23, 2019 | October 2019 | 0.50 | 207.8 | |||||||||||||||||
December 16, 2019 | January 2020 | 0.50 | 207.8 | |||||||||||||||||
March 31, 2020 | April 2020 | 0.05 | 20.8 | |||||||||||||||||
June 22, 2020 | July 2020 | 0.10 | 41.6 | |||||||||||||||||
September 23, 2020 | October 2020 | 0.15 | 62.4 | |||||||||||||||||
December 16, 2020 | January 2021 | 0.20 | 82.9 | |||||||||||||||||
March 24, 2021 | April 2021 | 0.20 | 82.9 | |||||||||||||||||
June 16, 2021 | August 2021 | 0.20 | 93.3 | |||||||||||||||||
August 23, 2021 | October 2021 | 0.25 | 116.6 | |||||||||||||||||
December 15, 2021 | January 2022 | 0.25 | 116.7 |
Number of Warrants (in millions) | Weighted Average Exercise Price (per share) | |||||||||||||
Outstanding warrants - December 31, 2020 | 43.4 | $ | 6.79 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | — | — | ||||||||||||
Expired | — | — | ||||||||||||
Outstanding warrants - December 31, 2021 | 43.4 | $ | 6.49 | (A) |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Held by the Manager | 19,877,843 | 11,991,622 | |||||||||
Issued to the Manager and subsequently assigned to certain of the Manager’s employees | 1,594,147 | 2,430,033 | |||||||||
Issued to the independent directors | 7,000 | 7,000 | |||||||||
Total | 21,478,990 | 14,428,655 |
Recipient | Date of Grant/ Exercise(A) | Number of Unexercised Options | Options Exercisable as of December 31, 2021 | Weighted Average Exercise Price(B) | Intrinsic Value of Exercisable Options as of December 31, 2021 | ||||||||||||||||||||||||
Directors | Various | 7,000 | 7,000 | $ | 13.08 | $ | — | ||||||||||||||||||||||
Manager(C) | 2017 | 1,130,916 | 1,130,916 | 13.78 | — | ||||||||||||||||||||||||
Manager(C) | 2018 | 5,320,000 | 5,320,000 | 16.50 | — | ||||||||||||||||||||||||
Manager(C) | 2019 | 6,351,000 | 6,000,800 | 15.93 | — | ||||||||||||||||||||||||
Manager(C) | 2020 | 1,619,739 | 1,187,809 | 17.23 | — | ||||||||||||||||||||||||
Manager(C) | 2021 | 7,050,335 | 1,565,928 | 10.19 | 810 | ||||||||||||||||||||||||
Outstanding | 21,478,990 | 15,212,453 | 14.17 |
Date of Grant to Manager | Range of Exercise Prices | Total Unexercised Inception to Date | ||||||||||||
2019 | $14.96 to $16.50 | 1,270,200 | ||||||||||||
2020 | $16.84 to $17.23 | 323,947 | ||||||||||||
2021 | $10.10 to $11.51 | — | ||||||||||||
Total | 1,594,147 |
Amount | Weighted Average Exercise Price | |||||||||||||
Outstanding options - December 31, 2019 | 12,808,916 | |||||||||||||
Granted | 1,619,739 | $ | 17.41 | |||||||||||
Exercised | — | — | ||||||||||||
Expired | — | — | ||||||||||||
Outstanding options - December 31, 2020 | 14,428,655 | |||||||||||||
Granted | 7,051,335 | 10.31 | ||||||||||||
Exercised | — | — | ||||||||||||
Expired | (1,000) | 12.36 | ||||||||||||
Outstanding options - December 31, 2021 | 21,478,990 | See table above |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Net income (loss) | $ | 805,582 | $ | (1,357,684) | $ | 605,933 | ||||||||||||||
Noncontrolling interests in income of consolidated subsidiaries | 33,356 | 52,674 | 42,637 | |||||||||||||||||
Dividends on preferred stock | 66,744 | 54,295 | 13,281 | |||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 705,482 | $ | (1,464,653) | $ | 550,015 | ||||||||||||||
Basic weighted average shares of common stock outstanding | 451,276,742 | 415,513,187 | 408,789,642 | |||||||||||||||||
Dilutive effect of stock options and common stock purchase warrants(A) | 16,388,264 | — | 200,465 | |||||||||||||||||
Diluted weighted average shares of common stock outstanding | 467,665,006 | 415,513,187 | 408,990,107 | |||||||||||||||||
Basic earnings per share attributable to common stockholders | $ | 1.56 | $ | (3.52) | $ | 1.35 | ||||||||||||||
Diluted earnings per share attributable to common stockholders | $ | 1.51 | $ | (3.52) | $ | 1.34 |
Year Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||
Stock options and common stock purchase warrants | — | 7,328,961 | — |
Year Ending | Amount | |||||||
2022 | $ | 42,018 | ||||||
2023 | 31,169 | |||||||
2024 | 23,881 | |||||||
2025 | 18,470 | |||||||
2026 | 10,933 | |||||||
2027 and thereafter | 34,661 | |||||||
Total remaining undiscounted lease payments | 161,132 | |||||||
Less: imputed interest | 18,512 | |||||||
Total remaining discounted lease payments | $ | 142,620 |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Weighted-average remaining lease term (years) | 5.5 | 3.2 | |||||||||
Weighted-average discount rate | 4.1 | % | 4.5 | % |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Management fees | $ | 95,926 | $ | 89,134 | |||||||
Expense reimbursements and other | 500 | 500 | |||||||||
Total | $ | 96,426 | $ | 89,634 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Management fees | $ | 17,188 | $ | 7,478 | $ | 7,076 | |||||||||||
Incentive compensation | — | — | 91,892 | ||||||||||||||
Expense reimbursements(A) | 631 | 1,972 | 4,914 | ||||||||||||||
Total | $ | 17,819 | $ | 9,450 | $ | 103,882 |
Year Ended December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 5,556 | $ | (2,197) | $ | 148 | |||||||||||
State and Local | 1,470 | 4,084 | 3,411 | ||||||||||||||
Total Current Income Tax Expense (Benefit) | 7,026 | 1,887 | 3,559 | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | 130,696 | 17,516 | 28,939 | ||||||||||||||
State and Local | 20,504 | (2,487) | 9,268 | ||||||||||||||
Total Deferred Income Tax Expense (Benefit) | 151,200 | 15,029 | 38,207 | ||||||||||||||
Total Income Tax (Benefit) Expense | $ | 158,226 | $ | 16,916 | $ | 41,766 |
December 31, | |||||||||||||||||
2021 | 2020 | 2019 | |||||||||||||||
Provision at the statutory rate | 21.00 | % | 21.00 | % | 21.00 | % | |||||||||||
Non-taxable REIT income | (7.38) | % | (26.44) | % | (16.26) | % | |||||||||||
State and local taxes | 3.86 | % | 3.70 | % | 2.36 | % | |||||||||||
Return to provision | (1.10) | % | 0.12 | % | 0.57 | % | |||||||||||
Other | 0.04 | % | 0.45 | % | 0.09 | % | |||||||||||
Total provision | 16.42 | % | (1.17) | % | 7.76 | % |
December 31, | |||||||||||
2021 | 2020 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating losses and tax credit carryforwards(A) | $ | 76,642 | $ | 5,636 | |||||||
Basis differences related to assets and investments | 85,104 | 18,868 | |||||||||
Goodwill | 30,485 | — | |||||||||
Accrued Expenses | 20,171 | — | |||||||||
Other | 4,632 | 705 | |||||||||
Total deferred tax assets | 217,034 | 25,209 | |||||||||
Less valuation allowance | — | — | |||||||||
Net deferred tax assets | $ | 217,034 | $ | 25,209 | |||||||
Deferred tax liabilities: | |||||||||||
Mortgage servicing rights | $ | (594,801) | $ | (16,189) | |||||||
Basis differences related to assets and investments | (21,672) | (12,539) | |||||||||
Fixed asset depreciation | (14,495) | (1,231) | |||||||||
Unrealized mark to market | (26,021) | — | |||||||||
Other | (735) | (3,109) | |||||||||
Total deferred tax (liability) | $ | (657,724) | $ | (33,068) | |||||||
Net deferred tax assets (liability) | $ | (440,690) | $ | (7,859) |
Year | Dividends per Share | Ordinary Income | Long-term Capital Gain | Return of Capital | |||||||||||||||||||
2021(A) | $ | 0.50 | 58.84 | % | — | % | 41.16 | % | |||||||||||||||
2020(B) | $ | 0.62 | 78.01 | % | — | % | 21.99 | % | |||||||||||||||
2019(C) | $ | 1.87 | 77.53 | % | 15.82 | % | 6.65 | % |
Year | Dividends per Share | Ordinary Income | Long-term Capital Gain | Return of Capital | |||||||||||||||||||
2021(A) | $ | 1.88 | 100 | % | — | % | — | % | |||||||||||||||
2020(B) | $ | 1.88 | 100 | % | — | % | — | % |
Year | Dividends per Share | Ordinary Income | Long-term Capital Gain | Return of Capital | |||||||||||||||||||
2021(A) | $ | 1.78 | 100 | % | — | % | — | % | |||||||||||||||
2020(B) | $ | 1.78 | 100 | % | — | % | — | % |
Year | Dividends per Share | Ordinary Income | Long-term Capital Gain | Return of Capital | |||||||||||||||||||
2021(A) | $ | 1.59 | 100 | % | — | % | — | % | |||||||||||||||
2020(B) | $ | 1.20 | 100 | % | — | % | — | % |
Year | Dividends per Share | Ordinary Income | Long-term Capital Gain | Return of Capital | |||||||||||||||||||
2021(A) | $ | 0.28 | 100 | % | — | % | — | % |
Exhibit Number | Exhibit Description | |||||||
2.1† | Separation and Distribution Agreement, dated as of April 26, 2013, by and between New Residential Investment Corp. and Newcastle Investment Corp. (incorporated by reference to Exhibit 2.1 to Amendment No. 6 of New Residential Investment Corp.’s Registration Statement on Form 10, filed April 29, 2013) | |||||||
2.2† | Purchase Agreement, dated as of March 5, 2013, by and among the Sellers listed therein, HSBC Finance Corporation and SpringCastle Acquisition LLC (incorporated by reference to Exhibit 99.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed March 11, 2013) | |||||||
2.3† | Master Servicing Rights Purchase Agreement, dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.4† | Sale Supplement (Shuttle 1), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.5† | Sale Supplement (Shuttle 2), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.3 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.6† | Sale Supplement (First Tennessee), dated as of December 17, 2013, by and between Nationstar Mortgage LLC and Advance Purchaser LLC (incorporated by reference to Exhibit 2.4 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 23, 2013) | |||||||
2.7† | Purchase Agreement, dated as of March 31, 2016, by and among SpringCastle Holdings, LLC, Springleaf Acquisition Corporation, Springleaf Finance, Inc., NRZ Consumer LLC, NRZ SC America LLC, NRZ SC Credit Limited, NRZ SC Finance I LLC, NRZ SC Finance II LLC, NRZ SC Finance III LLC, NRZ SC Finance IV LLC, NRZ SC Finance V LLC, BTO Willow Holdings II, L.P. and Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P., and solely with respect to Section 11(a) and Section 11(g), NRZ SC America Trust 2015-1, NRZ SC Credit Trust 2015-1, NRZ SC Finance Trust 2015-1, and BTO Willow Holdings, L.P. (incorporated by reference to Exhibit 2.10 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016, filed on May 4, 2016) | |||||||
2.8† | Securities Purchase Agreement, dated as of November 29, 2017, by and among NRM Acquisition LLC, Shellpoint Partners LLC, the Sellers party thereto and Shellpoint Services LLC, as original representative of the Seller (incorporated by reference to Exhibit 2.8 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 15, 2018) | |||||||
2.9† | Amendment No. 1 to the Securities Purchase Agreement, dated as of July 3, 2018, by and among NRM Acquisition LLC, Shellpoint Partners LLC, the Sellers party thereto and Shellpoint Representative LLC, as replacement representative of the Sellers (incorporated by reference to Exhibit 2.9 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018) | |||||||
Asset Purchase Agreement among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company, dated June 17, 2019 (incorporated by reference to Exhibit 2.10 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019) | ||||||||
Amendment No. 1 to the Asset Purchase Agreement, dated as of July 9, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.11 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 2 to the Asset Purchase Agreement, dated as of August 30, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.12 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 3 to the Asset Purchase Agreement, dated as of September 4, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.13 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 4 to the Asset Purchase Agreement, dated as of September 5, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.14 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 5 to the Asset Purchase Agreement, dated as of September 6, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.15 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 6 to the Asset Purchase Agreement, dated as of September 9, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.16 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 7 to the Asset Purchase Agreement, dated as of September 17, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.17 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 8 to the Asset Purchase Agreement, dated as of September 30, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.18 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2019) | ||||||||
Amendment No. 9 to the Asset Purchase Agreement, dated as of November 27, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.19 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
Amendment No. 10 to the Asset Purchase Agreement, dated as of December 12, 2019, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.20 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
Amendment No. 11 to the Asset Purchase Agreement, dated as of January 17, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.21 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
Amendment No. 12 to the Asset Purchase Agreement, dated as of January 24, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.22 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
Settlement and Release Agreement, dated as of January 27, 2020, among New Residential Investment Corp., Ditech Holding Corporation, a Maryland corporation, and Ditech Financial LLC, a Delaware limited liability company (incorporated by reference to Exhibit 2.23 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2019, filed on February 19, 2020) | ||||||||
Stock Purchase Agreement, dated April 14, 2021, by and between LSF Pickens Holdings, LLC, Caliber Home Loans, Inc., and New Residential Investment Corp. (incorporated by reference to Exhibit 2.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed April 14, 2021) | ||||||||
Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to Exhibit 3.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||||||||
Amended and Restated Bylaws of New Residential Investment Corp. (incorporated by reference to Exhibit 3.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||||||||
Certificate of Amendment to the Amended and Restated Certificate of Incorporation of New Residential Investment Corp. (incorporated by reference to Exhibit 3.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed October 17, 2014) | ||||||||
Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.4 to New Residential Investment Corp.’s Form 8-A, filed July 2, 2019) | ||||||||
Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.5 to New Residential Investment Corp.’s Form 8-A, filed August 15, 2019) | ||||||||
Certificate of Designations of New Residential Investment Corp., designating the Company’s 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.6 to New Residential Investment Corp.’s Form 8-A, filed February 14, 2020) | ||||||||
Certificate of Designations of New Residential Investment Corp., designating the Company’s 7.00% Fixed-Rate Reset Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share (incorporated by reference to Exhibit 3.7 to New Residential Investment Corp.’s Form 8-A, filed September 17, 2021) | ||||||||
Specimen Series A Preferred Stock Certificate (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A filed July 2, 2019) | ||||||||
Specimen Series B Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed August 15, 2019) | ||||||||
Specimen Series C Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed February 14, 2020) | ||||||||
Specimen Series D Preferred Stock Certificate of New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-A, filed September 17, 2021) | ||||||||
Second Amended and Restated Indenture, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
Omnibus Amendment to Term Note Indenture Supplements, dated as of August 17, 2017, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed August 22, 2017) | ||||||||
Series 2016-T2 Indenture Supplement, dated as of October 25, 2016, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed October 31, 2016) | ||||||||
Series 2016-T3 Indenture Supplement, dated as of October 25, 2016, to the Indenture, dated as of August 28, 2015, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed October 31, 2016) | ||||||||
Series 2016-T4 Indenture Supplement, dated as of December 15, 2016, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 16, 2016) | ||||||||
Series 2016-T5 Indenture Supplement, dated as of December 15, 2016, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed December 16, 2016) | ||||||||
Series 2017-T1 Indenture Supplement, dated as of February 7, 2017, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K filed February 7, 2017) | ||||||||
Series 2018-VF1 Indenture Supplement, dated as of March 22, 2018, to the Amended and Restated Indenture, dated as of August 17, 2017, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.'s Current Report on Form 8-K, filed March 28, 2018) | ||||||||
Omnibus Amendment to Certain Agreements Relating to the NRZ Advance Receivables Trust 2015-ON1, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Credit Suisse AG, New York Branch, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
Amendment No. 1 to Series 2018-VF1 Indenture Supplement, dated as of September 7, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.3 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 7, 2018) | ||||||||
Amendment No. 2 to Series 2018-VF1 Indenture Supplement, dated as of September 28, 2018, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.11 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q, filed May 2, 2019) | ||||||||
Amendment No. 3 to Series 2018-VF1 Indenture Supplement, dated as of March 11, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, JPMorgan Chase Bank, N.A. and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed March 15, 2019) | ||||||||
Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC, d/b/a Shellpoint Mortgage Servicing and Credit Suisse AG, New York Branch (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed July 26, 2019) | ||||||||
Series 2019-T1 Indenture Supplement, dated as of July 25, 2019, to the Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.2 to New Residential Investment Corp.’s Form 8-K, filed July 26, 2019) | ||||||||
Series 2019-T2 Indenture Supplement, dated as of August 15, 2019, to the Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed August 16, 2019) | ||||||||
Series 2019-T3 Indenture Supplement, dated as of September 20, 2019, to the Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed September 20, 2019) | ||||||||
Series 2019-T4 Indenture Supplement, dated as of October 15, 2019, to the Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed October 18, 2019) | ||||||||
Series 2019-T5 Indenture Supplement, dated as of October 31, 2019, to the Third Amended and Restated Indenture, dated as of July 25, 2019, by and among NRZ Advance Receivables Trust 2015-ON1, Deutsche Bank National Trust Company, PHH Mortgage Corporation, HLSS Holdings, LLC, New Residential Mortgage LLC, Newrez LLC d/b/a Shellpoint Mortgage Servicing, Credit Suisse AG, New York Branch and New Residential Investment Corp. (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Form 8-K, filed November 6, 2019) | ||||||||
Form of Debt Securities Indenture (including Form of Debt Security) (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Registration Statement on Form S-3, filed May 16, 2014) | ||||||||
Indenture, dated as of September 16, 2020, between New Residential Investment Corp. and U.S. Bank National Association (incorporated by reference to Exhibit 4.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed September 16, 2020) | ||||||||
Description of Securities Registered under Section 12 of the Exchange Act | ||||||||
Third Amended and Restated Management and Advisory Agreement, dated as of May 7, 2015, by and between New Residential Investment Corp. and FIG LLC (incorporated by reference to Exhibit 10.4 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015) | ||||||||
Form of Indemnification Agreement by and between New Residential Investment Corp. and its directors and officers (incorporated by reference to Exhibit 10.2 to Amendment No. 3 to New Residential Investment Corp.’s Registration Statement on Form 10, filed March 27, 2013) | ||||||||
New Residential Investment Corp. Nonqualified Stock Option and Incentive Award Plan, adopted as of April 29, 2013 (incorporated by reference to Exhibit 10.1 to New Residential Investment Corp.’s Current Report on Form 8-K, filed May 3, 2013) | ||||||||
Amended and Restated New Residential Investment Corp. Nonqualified Stock Option and Incentive Plan, adopted as of November 4, 2014 (incorporated by reference to Exhibit 10.6 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014) | ||||||||
Investment Guidelines (incorporated by reference to Exhibit 10.4 to Amendment No. 4 to New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||||||||
Excess Servicing Spread Sale and Assignment Agreement, dated as of December 8, 2011, by and between Nationstar Mortgage LLC and NIC MSR I LLC (incorporated by reference to Exhibit 10.5 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011) | ||||||||
Excess Spread Refinanced Loan Replacement Agreement, dated as of December 8, 2011, by and between Nationstar Mortgage LLC and NIC MSR I LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011) | ||||||||
Future Spread Agreement for FHLMC Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR IV LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
Future Spread Agreement for FNMA Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR V LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
Future Spread Agreement for Non-Agency Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR VI LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
Future Spread Agreement for GNMA Mortgage Loans, dated as of May 13, 2012, by and between Nationstar Mortgage LLC and NIC MSR VII, LLC (incorporated by reference to Exhibit 10.8 to Drive Shack Inc.’s Current Report on Form 8-K, filed May 15, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of May 31, 2012, by and between Nationstar Mortgage LLC and NIC MSR III LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 6, 2012) | ||||||||
Future Spread Agreement for FHLMC Mortgage Loans, dated as of May 31, 2012, by and between Nationstar Mortgage LLC and NIC MSR III LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 6, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
Amended and Restated Future Spread Agreement for FNMA Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.3 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
Amended and Restated Future Spread Agreement for FHLMC Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) |
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.5 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
Amended and Restated Future Spread Agreement for Non-Agency Mortgage Loans, dated as of June 7, 2012, by and between Nationstar Mortgage LLC and NIC MSR II LLC (incorporated by reference to Exhibit 10.6 to Drive Shack Inc.’s Current Report on Form 8-K, filed June 7, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR V LLC (incorporated by reference to Exhibit 10.1 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR IV LLC (incorporated by reference to Exhibit 10.2 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR VI LLC (incorporated by reference to Exhibit 10.3 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
Amended and Restated Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of June 28, 2012, by and between Nationstar Mortgage LLC and NIC MSR VII LLC (incorporated by reference to Exhibit 10.4 to Drive Shack Inc.’s Current Report on Form 8-K, filed July 5, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of December 31, 2012, by and between Nationstar Mortgage LLC and MSR VIII LLC (incorporated by reference to Exhibit 10.35 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for GNMA Mortgage Loans, dated as of December 31, 2012, by and between Nationstar Mortgage LLC and MSR VIII LLC (incorporated by reference to Exhibit 10.36 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR IX LLC (incorporated by reference to Exhibit 10.37 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR IX LLC (incorporated by reference to Exhibit 10.38 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR X LLC (incorporated by reference to Exhibit 10.39 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR X LLC (incorporated by reference to Exhibit 10.40 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XI LLC (incorporated by reference to Exhibit 10.41 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XI LLC (incorporated by reference to Exhibit 10.42 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XII LLC (incorporated by reference to Exhibit 10.43 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XII LLC (incorporated by reference to Exhibit 10.44 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XIII LLC (incorporated by reference to Exhibit 10.45 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, by and between Nationstar Mortgage LLC and MSR XIII LLC (incorporated by reference to Exhibit 10.46 to Drive Shack Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012) | ||||||||
Interim Servicing Agreement, dated as of April 1, 2013, by and among the Interim Servicers listed therein, HSBC Finance Corporation, as Interim Servicer Representative, HSBC Bank USA, National Association, SpringCastle America, LLC, SpringCastle Credit, LLC, SpringCastle Finance, LLC, Wilmington Trust, National Association, as Loan Trustee, and SpringCastle Finance LLC, as Owner Representative (incorporated by reference to Exhibit 10.35 to Amendment No. 4 to New Residential Investment Corp.’s Registration Statement on Form 10, filed April 9, 2013) | ||||||||
Second Amended and Restated Limited Liability Company Agreement of SpringCastle Acquisition LLC, dated as of March 31, 2016 (incorporated by reference to Exhibit 10.37 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016) | ||||||||
Services Agreement, dated as of April 6, 2015, by and between HLSS Advances Acquisition Corp. and Home Loan Servicing Solutions, Ltd. (incorporated by reference to Exhibit 2.4 to New Residential Investment Corp.’s Current Report on Form 8-K, filed April 10, 2015) | ||||||||
Receivables Sale Agreement, dated as of August 28, 2015, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC and NRZ Advance Facility Transferor 2015-ON1 LLC (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||||||||
Receivables Pooling Agreement, dated as of August 28, 2015, by and between NRZ Advance Facility Transferor 2015-ON1 LLC and NRZ Advance Receivables Trust 2015-ON1 (incorporated by reference to Exhibit 10.48 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2015) | ||||||||
Master Agreement, dated as July 23, 2017, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.41 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
Amendment No. 1 to Master Agreement, dated as of October 12, 2017, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.42 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
Transfer Agreement, dated as of July 23, 2017, by and among Ocwen Loan Servicing, LLC, New Residential Mortgage LLC, Ocwen Financial Corporation and New Residential Investment Corp. (incorporated by reference to Exhibit 10.43 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
Amendment No. 1 to the Transfer Agreement, dated January 18, 2018, by and among Ocwen Loan Servicing, LLC, New Residential Mortgage LLC, Ocwen Financial Corporation and New Residential Investment Corp. (incorporated by reference to Exhibit 10.44 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
Subservicing Agreement, dated as of July 23, 2017, by and between New Residential Mortgage LLC and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.44 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
Amendment No. 1 to Subservicing Agreement, dated as of August 17, 2018, by and between New Residential Mortgage LLC and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Amendment No. 2 to Subservicing Agreement, dated as of October 5, 2020, by and between New Residential Mortgage LLC and PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC) (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Cooperative Brokerage Agreement, dated as of August 28, 2017, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.45 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
First Amendment to Cooperative Brokerage Agreement, dated as of November 16, 2017, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 14, 2018) | ||||||||
Second Amendment to Cooperative Brokerage Agreement, dated as of January 18, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.47 to New Residential Investment Corp.’s Annual Report on Form 10-K for the year ended December 31, 2017, filed on February 14, 2018) | ||||||||
Third Amendment to Cooperative Brokerage Agreement, dated as of March 23, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.49 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
Fourth Amendment to Cooperative Brokerage Agreement, dated as of September 11, 2018, by and among REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and New Residential Sales Corp. (incorporated by reference to Exhibit 10.51 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Letter Agreement, dated as of August 28, 2017, by and among New Residential Investment Corp., New Residential Mortgage LLC, REALHome Services and Solutions, Inc., REALHome Services and Solutions - CT, Inc. and Altisource Solutions S.a.r.l. (incorporated by reference to Exhibit 10.46 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017) | ||||||||
New RMSR Agreement, dated as of January 18, 2018, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.51 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018) | ||||||||
Amendment No. 1 to New RMSR Agreement, dated as of August 17, 2018, by and among Ocwen Loan Servicing, LLC, HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.54 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Amendment No. 2 to New RMSR Agreement, dated as of October 5, 2020, by and among PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC), HLSS Holdings, LLC, HLSS MSR - EBO Acquisition LLC, and New Residential Mortgage LLC (incorporated by reference to Exhibit 10.56 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Subservicing Agreement, dated as of August 17, 2018, by and between New Penn Financial, LLC, d/b/a Shellpoint Mortgage Servicing and Ocwen Loan Servicing, LLC (incorporated by reference to Exhibit 10.55 to New Residential Investment Coop.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2018) | ||||||||
Amendment No. 1 to Subservicing Agreement, dated as of October 5, 2020, by and between Newrez, LLC (as successor-in-interest to New Penn Financial, LLC) d/b/a Shellpoint Mortgage Servicing and PHH Mortgage Corporation (as successor by merger to Ocwen Loan Servicing, LLC) (incorporated by reference to Exhibit 10.58 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Call Rights Letter Agreement, dated as of March 31, 2020, between New Residential Investment Corp. and Fortress Credit Opportunities V Advisors LLC (incorporated by reference to Exhibit 10.56 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020) | ||||||||
Senior Secured Term Loan Facility Agreement, dated as of May 19, 2020, among New Residential Investment Corp., as Parent and the Borrower, and Certain Subsidiaries of New Residential Investment Corp., as Subsidiary Guarantors, the Lenders Party thereto and Cortland Capital Market Services LLC, as Administrative Agent and Collateral Agent (incorporated by reference to Exhibit 10.60 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Pledge and Security Agreement, dated as of May 19, 2020, among each of the Pledgors Party thereto and Cortland Capital Market Services LLC, as Collateral Agent (incorporated by reference to Exhibit 10.61 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Form of Common Stock Purchase Warrant No. S1, dated May 19, 2020, between New Residential Investment Corp. and Canyon Finance (Cayman) Limited or its permitted assigns (incorporated by reference to Exhibit 10.62 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) |
Form of Common Stock Purchase Warrant No. S2, dated May 19, 2020, between New Residential Investment Corp. and Canyon Finance (Cayman) Limited or its permitted assigns (incorporated by reference to Exhibit 10.63 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Form of Common Stock Purchase Warrant No. S1, dated May 27, 2020, between New Residential Investment Corp. and CF NRS-E LLC or its permitted assigns (incorporated by reference to Exhibit 10.64 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Form of Common Stock Purchase Warrant No. S2, dated May 27, 2020, between New Residential Investment Corp. and CF NRS-E LLC or its permitted assigns (incorporated by reference to Exhibit 10.65 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
Registration Rights Agreement, dated May 19, 2020, by and among New Residential Investment Corp. and the Investors set forth on Schedule 1 thereto (incorporated by reference to Exhibit 10.66 to New Residential Investment Corp.’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020) | ||||||||
List of Subsidiaries of New Residential Investment Corp. | ||||||||
Consent of Ernst & Young LLP, independent registered public accounting firm. | ||||||||
Certification of Chief Executive Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
101 | The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Comprehensive Income; (iii) Consolidated Statements of Changes in Stockholders’ Equity; (iv) Consolidated Statements of Cash Flows; and (v) Notes to Consolidated Financial Statements | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
† | Portions of this exhibit have been omitted. | |||||||
# | Portions of this exhibit have been omitted pursuant to a request for confidential treatment. |
NEW RESIDENTIAL INVESTMENT CORP. | ||||||||
By: | /s/ Michael Nierenberg | |||||||
Michael Nierenberg | ||||||||
Chairman of the Board | ||||||||
February 16, 2022 |
By: | /s/ Michael Nierenberg | By: | /s/ Nicola Santoro, Jr. | |||||||||||||||||
Michael Nierenberg | Nicola Santoro, Jr. | |||||||||||||||||||
Chairman of the Board, Chief Executive Officer and President | Chief Financial Officer, Chief Accounting Officer and Treasurer | |||||||||||||||||||
(Principal Executive Officer) | (Principal Financial Officer) | |||||||||||||||||||
February 16, 2022 | February 16, 2022 | |||||||||||||||||||
By: | /s/ Kevin J. Finnerty | By: | /s/ David Saltzman | |||||||||||||||||
Kevin J. Finnerty | David Saltzman | |||||||||||||||||||
Director | Director | |||||||||||||||||||
February 16, 2022 | February 16, 2022 | |||||||||||||||||||
By: | /s/ Pamela F. Lenehan | By: | /s/ Andrew Sloves | |||||||||||||||||
Pamela F. Lenehan | Andrew Sloves | |||||||||||||||||||
Director | Director | |||||||||||||||||||
February 16, 2022 | February 16, 2022 | |||||||||||||||||||
By: | /s/ Robert J. McGinnis | By: | /s/ Patrice M. Le Melle | |||||||||||||||||
Robert J. McGinnis | Patrice M. Le Melle | |||||||||||||||||||
Director | Director | |||||||||||||||||||
February 16, 2022 | February 16, 2022 |