v3.19.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2019
Jun. 30, 2018
Cash Flows From Operating Activities    
Net income (loss) $ 130,892 $ 800,200
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 3,828 50,967
Change in fair value of investments in excess mortgage servicing rights, equity method investees 664 (2,228)
Change in fair value of investments in mortgage servicing rights financing receivables 91,790 (151,973)
Change in fair value of servicer advance investments (9,291) 81,228
Change in fair value of residential mortgage loans, at fair value, and notes and bonds payable, at fair value (107,832) 0
(Gain) / loss on settlement of investments (net) (2,261) (117,957)
(Gain) / loss on sale of originated mortgage loans (net) (93,488) 0
Earnings from investments in consumer loans, equity method investees (1,657) (7,788)
Unrealized (gain) / loss on derivative instruments 60,496 (3,686)
Changes in fair value of contingent consideration 4,727 0
Unrealized (gain) / loss on other ABS (14,064) (4,804)
(Gain) / loss on transfer of loans to REO (6,584) (10,490)
(Gain) / loss on transfer of loans to other assets 277 120
(Gain) / loss on Excess MSR recapture agreements (1,242) (4,270)
(Gain) / loss on Ocwen common stock (4,237) (4,800)
Accretion and other amortization (256,955) (359,105)
Other-than-temporary impairment 16,375 19,301
Valuation and loss provision on loans and real estate owned 18,732 22,665
Non-cash portions of servicing revenue, net 391,509 (61,859)
Non-cash directors’ compensation 1,055 1,019
Deferred tax provision 24,733 (10,815)
Changes in:    
Servicer advances receivable 231,023 425,215
Other assets (371,166) (79,511)
Due to affiliates (73,694) (40,313)
Accrued expenses and other liabilities 75,747 39,032
Other operating cash flows:    
Interest received from excess mortgage servicing rights 12,568 21,399
Interest received from servicer advance investments 15,251 17,826
Interest received from Non-Agency RMBS 137,729 98,268
Interest received from residential mortgage loans 37,253 4,350
Interest received from PCD consumer loans, held-for-investment 16,437 17,858
Purchases of residential mortgage loans, held-for-sale (4,220,239) (2,402,258)
Origination of residential mortgage loans, held-for-sale (5,537,689) 0
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale 6,473,386 1,776,239
Principal repayments from purchased residential mortgage loans, held-for-sale 165,931 73,153
Net cash provided by (used in) operating activities (2,783,183) 196,776
Cash Flows From Investing Activities    
Purchase of servicer advance investments (865,350) (1,313,291)
Purchase of MSRs, MSR financing receivables and servicer advances receivable (841,600)  
Purchase of Agency RMBS (14,883,418) (2,210,812)
Purchase of Non-Agency RMBS (651,001) (947,955)
Purchase of residential mortgage loans 0 (85,778)
Purchase of real estate owned and other assets (16,426) (23,948)
Purchase of investment in consumer loans, equity method investees (63,875) (205,641)
Draws on revolving consumer loans (28,871) (20,636)
Payments for settlement of derivatives (191,527) (40,980)
Return of investments in excess mortgage servicing rights 30,342 31,097
Principal repayments from servicer advance investments 969,851 1,326,252
Principal repayments from Agency RMBS 314,623 43,403
Principal repayments from Non-Agency RMBS 605,874 374,084
Principal repayments from residential mortgage loans 57,168 69,133
Proceeds from sale of residential mortgage loans 34,682 21,155
Principal repayments from consumer loans 139,846 152,512
Proceeds from sale of Agency RMBS 10,889,487 2,956,351
Proceeds from sale of Non-Agency RMBS 752,026 66,198
Proceeds from settlement of derivatives 57,240 110,467
Proceeds from sale of real estate owned 74,976 71,994
Net cash provided by (used in) investing activities (3,477,068) (55,662)
Cash Flows From Financing Activities    
Repayments of repurchase agreements (91,625,830) (33,450,992)
Margin deposits under repurchase agreements and derivatives (1,637,846) (670,912)
Repayments of notes and bonds payable (4,540,705) (5,053,552)
Payment of deferred financing fees (2,868) (10,614)
Common stock dividends paid (392,267) (321,749)
Borrowings under repurchase agreements 97,551,956 33,542,060
Return of margin deposits under repurchase agreements and derivatives 1,606,200 604,930
Borrowings under notes and bonds payable 4,725,330 4,683,103
Issuance of common stock 752,217 482,696
Costs related to issuance of common stock (824) (442)
Noncontrolling interest in equity of consolidated subsidiaries - contributions 0 0
Noncontrolling interest in equity of consolidated subsidiaries - distributions (25,001) (37,015)
Purchase of noncontrolling interests 0 0
Net cash provided by (used in) financing activities 6,410,362 (232,487)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 150,111 (91,373)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 415,078 446,050
Cash, Cash Equivalents, and Restricted Cash, End of Period 565,189 354,677
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 417,974 248,990
Cash paid during the period for income taxes 1,194 3,176
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared but not paid 207,760 169,931
Transfer from residential mortgage loans to real estate owned and other assets 48,449 56,789
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale 36,331 0
Real estate securities retained from loan securitizations 232,050 224,359
Residential mortgage loans subject to repurchase 141,581 0
Ocwen transaction (Note 5) - excess mortgage servicing rights 0 638,567
Ocwen transaction (Note 5) - servicer advance investments 0 3,175,891
Ocwen transaction (Note 5) - mortgage servicing rights financing receivables, at fair value 0 1,017,993
Shellpoint Acquisition    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase price holdback 0 0
Shellpoint Acquisition contingent consideration 0 0
Financing Receivables    
Cash Flows From Investing Activities    
Proceeds from sale of mortgage servicing rights financing receivables 9,113 0
Agency RMBS    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase of Agency and Non-Agency RMBS, settled after quarter end 265,125 1,168,865
Sale of investments, primarily Agency RMBS, settled after quarter end 5,307,642 1,076,626
Mortgage Servicing Rights    
Cash Flows From Investing Activities    
Purchase of MSRs, MSR financing receivables and servicer advances receivable (775,873) (628,841)
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase price holdback 22,574 1,210
Consumer Loans    
Other operating cash flows:    
Distributions of earnings from equity method investees 1,178 3,263
Cash Flows From Investing Activities    
Return of investments, equity method investees 55,848 191,145
Excess MSRs Investees    
Other operating cash flows:    
Distributions of earnings from equity method investees 5,635 6,530
Cash Flows From Investing Activities    
Return of investments, equity method investees 8,197 8,429
LoanCo    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Non-cash distributions from LoanCo $ 21,314 $ 12,613

Source