Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash Flows From Operating Activities    
Net income $ 121,075 $ 239,073
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 1,405 (12,104)
Change in fair value of investments in excess mortgage servicing rights, equity method investees (8,016) (19,117)
Change in fair value of investments in servicer advances (16,893) (82,877)
Earnings from consumer loan equity method investees 0 (37,695)
Unrealized gain (loss) on derivative investments 8,259 2,444
Accretion and other amortization (209,137) (138,733)
(Gain) / loss on settlement of investments (net) (15,968) (56,896)
(Gain) / loss on transfer of loans to REO 197 (6,694)
(Gain) / loss on mortgage servicing rights recapture agreement (1,577) 0
Other-than-temporary impairment (OTTI) 1,720 943
Valuation provision on loans and real estate owned 5,749 457
Unrealized loss on other ABS 368 0
Non-cash directors' compensation 300 329
Deferred tax provision 11,341 17,645
Changes in:    
Restricted cash (32,737) (3,989)
Other assets 145,461 (3,213)
Due to affiliates (47,754) 6,963
Accrued expenses and other liabilities 31,288 1,800
Other operating cash flows:    
Interest received from excess mortgage servicing rights 43,367 25,509
Interest received from servicer advance investments 73,480 65,321
Interest received from Non-Agency RMBS 16,657 4,394
Interest payments from residential mortgage loans, held-for-investment 0 1,223
Distributions of earnings from consumer loan equity method investees 0 2,152
Purchases of residential mortgage loans, held-for-sale (388,805) (247,097)
Proceeds from sales of purchased residential mortgage loans, held-for-sale 722,961 249,690
Principal repayments from purchased residential mortgage loans, held-for-sale 34,614 0
Net cash provided by (used in) operating activities 517,275 30,028
Cash Flows From Investing Activities    
Acquisition of investments in excess mortgage servicing rights (129,098) (55,289)
Acquisition of HLSS, net of cash acquired (959,616) 0
Purchase of servicer advance investments (6,306,745) (3,955,602)
Purchase of Agency RMBS (1,026,586) (354,838)
Purchase of Non-Agency RMBS (468,197) (1,057,464)
Purchase of residential mortgage loans 0 (486,596)
Purchase of derivative assets (2,877) (70,027)
Purchase of real estate owned (1,289) (3,391)
Payments for settlement of derivatives (36,212) (17,273)
Return of investments in excess mortgage servicing rights 66,400 19,421
Principal repayments from servicer advance investments 6,587,781 3,062,259
Principal repayments from Agency RMBS 85,369 143,735
Principal repayments from Non-Agency RMBS 34,687 49,175
Principal repayments from residential mortgage loans, held-for-investment and held-for-sale 11,085 8,289
Proceeds from sale of residential mortgage loans 646,436 0
Proceeds from sale of Agency RMBS 1,455,221 324,379
Proceeds from sale of Non-Agency RMBS 389,719 1,273,190
Proceeds from settlement of derivatives 22,406 13,271
Proceeds from sale of real estate owned 46,341 2,880
Net cash provided by (used in) investing activities 419,427 (1,082,718)
Cash Flows From Financing Activities    
Repayments of repurchase agreements (3,480,781) (2,274,155)
Margin deposits under repurchase agreements and derivatives (284,389) (115,961)
Repayments of notes payable (3,073,963) (4,216,985)
Payment of deferred financing fees (34,096) (6,530)
Common stock dividends paid (107,490) (107,609)
Borrowings under repurchase agreements 2,651,587 2,473,920
Return of margin deposits under repurchase agreements and derivatives 288,880 152,936
Borrowings under notes payable 2,481,379 5,017,812
Issuance of common stock 882,099 173,201
Costs related to issuance of common stock (3,580) (2,693)
Noncontrolling interest in equity of consolidated subsidiaries - contributions 0 142,082
Noncontrolling interest in equity of consolidated subsidiaries - distributions (37,326) (144,196)
Net cash provided by (used in) financing activities (717,680) 1,091,822
Net Increase (Decrease) in Cash and Cash Equivalents 219,022 39,132
Cash and Cash Equivalents, Beginning of Period 212,985 271,994
Cash and Cash Equivalents, End of Period 432,007 311,126
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 103,548 72,100
Cash paid during the period for income taxes 535 3,510
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared but not paid 89,521 70,553
Non-cash contingent consideration 50,000 0
Transfer from residential mortgage loans, held-for-sale to real estate owned 19,875 0
Non-cash distribution from Consumer Loan Companies 585 557
Portion of HLSS Acquisition (Note 1) paid in common stock 434,092 0
Real estate securities retained from loan securitizations 14,990 0
Agency RMBS [Member]    
Cash Flows From Investing Activities    
Purchase of Agency RMBS (1,800,000)  
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase of RMBS settled after quarter end 771,276 0
Sale of RMBS settled after quarter end 986,532 $ 0
Non-Agency RMBS [Member]    
Cash Flows From Investing Activities    
Purchase of Non-Agency RMBS (490,400)  
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase of RMBS settled after quarter end 7,252  
Excess MSRs Investees [Member]    
Other operating cash flows:    
Distributions of earnings from consumer loan equity method investees 19,920 $ 20,500
Cash Flows From Investing Activities    
Return of investments in excess mortgage servicing rights, equity method investees 4,602 21,163
Accounting Standards Update 2014-11 [Member]    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Reclassification resulting from the application of ASU No. 2014-11 $ 85,955 $ 0