v3.20.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash Flows From Operating Activities    
Net income $ (1,459,206) $ 375,552
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Change in fair value of investments in excess mortgage servicing rights assets (14,675) 2,666
Change in fair value of investments in mortgage servicing rights financing receivables 245,906 133,200
Change in fair value of servicer advance investments (431) (15,932)
Change in fair value of residential mortgage loans, at fair value 108,306 (75,095)
Change in fair value of secured notes and bonds payable (535) 0
Change in fair value of investments in real estate and other securities 531 (9,010)
(Gain) loss on settlement of investments, net 904,200 (104,917)
(Gain) loss on sale of originated mortgage loans, net (984,818) (294,935)
Earnings from investments in consumer loans, equity method investees 0 890
(Gain) loss on extinguishment of debt 64,795 8,532
Change in fair value of derivative instruments (4,213) 25,037
Change in fair value of contingent consideration 5,949 7,430
Change in fair value of investments in consumer loans, held-for-investment 9,634 0
Change in fair value of equity investments 52,413 659
(Gain) loss on transfer of loans to REO (5,010) (7,814)
(Gain) loss on transfer of loans to other assets 773 378
(Gain) loss on Excess MSR recapture agreements 12,191 (1,771)
(Gain) loss on Ocwen common stock (221) (3,134)
Accretion and other amortization (127,456) (298,933)
Provision for credit losses on securities 15,166 21,942
Valuation and credit loss provision on loans and real estate owned 118,504 8,042
Non-cash portions of servicing revenue, net 1,485,472 619,914
Non-cash directors’ compensation 1,211 1,055
Deferred tax provision (42,439) 18,080
Changes in:    
Servicer advances receivable 470,221 366,426
Other assets 154,969 (509,745)
Due to affiliates (94,337) (41,920)
Accrued expenses and other liabilities (186,705) 263,420
Other operating cash flows:    
Interest and distributions received from excess mortgage servicing rights assets 27,415 26,942
Interest received from servicer advance investments 14,183 22,212
Interest received from Non-Agency RMBS 137,000 203,309
Interest received from residential mortgage loans, held-for-investment 3,907 6,697
Interest received from consumer loans, held-for-investment 0 23,789
Purchases of residential mortgage loans, held-for-sale (2,390,498) (6,002,975)
Origination of residential mortgage loans, held-for-sale (36,801,062) (10,424,325)
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale 39,908,942 13,046,546
Principal repayments from purchased residential mortgage loans, held-for-sale 226,436 295,584
Net cash provided by (used in) operating activities 1,885,868 (2,316,358)
Cash Flows From Investing Activities    
Purchase of servicer advance investments (991,289) (1,255,306)
Purchase of Non-Agency RMBS (56,515) (689,308)
Purchase of real estate owned and other assets (5,347) (44,539)
Purchase of investment in consumer loans, equity method investees 0 (63,969)
Draws on revolving consumer loans (25,008) (42,231)
Payments for settlement of derivatives (160,465) (283,037)
Return of investments in excess mortgage servicing rights assets 40,101 55,968
Return of investments, equity method investees 0 55,848
Principal repayments from servicer advance investments 1,036,634 1,402,187
Principal repayments from Agency RMBS 838,200 987,523
Principal repayments from Non-Agency RMBS 358,322 996,396
Principal repayments from residential mortgage loans 100,433 83,483
Proceeds from sale of residential mortgage loans 0 41,308
Principal repayments from consumer loans 176,125 203,607
Proceeds from MSRs and MSR financing receivables 64,623 21,306
Proceeds from sale of mortgage servicing rights financing receivables 14,160  
Proceeds from sale of excess mortgage servicing rights 144 114
Proceeds from sale of Agency RMBS 23,249,507 17,998,736
Proceeds from sale of Non-Agency RMBS 5,292,717 1,664,017
Proceeds from settlement of derivatives 65,650 74,724
Proceeds from sale of real estate owned 84,733 103,258
Net cash provided by (used in) investing activities 10,967,711 (5,250,933)
Cash Flows From Financing Activities    
Repayments of secured financing agreements (113,038,497) (144,545,608)
Repayments of warehouse credit facilities (40,782,950) 0
Margin deposits under secured financing agreements and derivatives (3,519,989) (2,913,627)
Proceeds for issuance of term loan 544,400
Repayment of term loan (600,000) 0
Proceeds for issuance of unsecured senior notes 592,400 0
Repayments of secured notes and bonds payable (7,040,542) (7,306,541)
Deferred financing fees (31,863) (7,821)
Common stock dividends paid (270,117) (600,027)
Preferred Stock dividends paid (36,730) 0
Borrowings under secured financing agreements 101,149,869 152,101,817
Borrowings under warehouse credit facilities 39,427,045 0
Return of margin deposits under secured financing agreements and derivatives 3,717,645 2,589,160
Borrowings under secured notes and bonds payable 7,057,202 7,600,342
Issuance of preferred stock 389,548 423,444
Issuance of common stock 1,734 752,217
Costs related to issuance of common stock (72) (824)
Noncontrolling interests in equity of consolidated subsidiaries - contributions 1,818 0
Noncontrolling interests in equity of consolidated subsidiaries - distributions (31,844) (38,952)
Payment of contingent consideration (51,994) 0
Net cash provided by (used in) financing activities (12,522,937) 8,053,580
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 330,642 486,289
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 690,934 415,078
Cash, Cash Equivalents, and Restricted Cash, End of Period 1,021,576 901,367
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 450,792 643,349
Cash paid during the period for income taxes 105 1,208
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared by not paid 69,541  
Warrants issued with term loan 53,462 0
Purchase of investments, primarily Agency and Non-Agency RMBS, settled after quarter-end 210 2,536,188
Sale of investments, primarily Non-Agency RMBS, settled after quarter-end 946,321 4,487,772
Transfer from residential mortgage loans to real estate owned and other assets 56,297 70,080
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale 0 38,842
Real estate securities retained from loan securitizations 518,515 454,310
Residential mortgage loans subject to repurchase 1,458,325 [1] 168,532
Agency Residential Mortgage Backed Securities    
Cash Flows From Investing Activities    
Purchase of Agency RMBS (18,584,357) (25,212,307)
Mortgage Servicing Rights    
Cash Flows From Investing Activities    
Purchase of MSRs, MSR financing receivables and servicer advances receivable (530,657) (1,365,333)
Supplemental Schedule of Non-Cash Investing and Financing Activities    
MSR purchase price holdback (45,014) 1,963
Consumer Loans    
Other operating cash flows:    
Distributions of earnings from equity method investees 0 1,178
MSRs    
Cash Flows From Investing Activities    
Proceeds from sale of mortgage servicing rights financing receivables 10,452 1,047
LoanCo    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Non-cash distributions from LoanCo 0 21,314
New Residential Mortgage LLC | MSRs | Mortgage Servicing Rights Financing Receivable    
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Change in fair value of investments in mortgage servicing rights financing receivables 245,906 133,200
Cash Flows From Investing Activities    
Proceeds from sale of mortgage servicing rights financing receivables 3,708 15,575
Common Stock    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared by not paid 62,362 213,098
Preferred Stock    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared by not paid $ 14,359 $ 5,338
[1] See Note 8 for details.

Source