Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES (Tables)

v3.2.0.727
INVESTMENTS IN CONSUMER LOANS, EQUITY METHOD INVESTEES (Tables)
6 Months Ended
Jun. 30, 2015
Investments In Consumer Loans Equity Method Investees [Abstract]  
Summary of the Investment in Consumer Loan Companies
The following tables summarize the investment in the Consumer Loan Companies held by New Residential:
 
 
June 30, 2015
 
December 31, 2014
Consumer loan assets (amortized cost basis)
 
$
1,880,054

 
$
2,088,330

Other assets
 
78,643

 
92,051

Debt
 
(2,145,948
)
 
(2,411,421
)
Other liabilities
 
(5,479
)
 
(12,340
)
Equity
 
$
(192,730
)
 
$
(243,380
)
New Residential’s investment
 
$

 
$

New Residential’s ownership
 
30.0
%
 
30.0
%


 
 
Three Months Ended June 30,

Six Months Ended June 30,
 
 
2015
 
2014
 
2015
 
2014
Interest income
 
$
116,271

 
$
135,629

 
$
238,140

 
$
278,444

Interest expense
 
(22,188
)
 
(18,106
)
 
(45,295
)
 
(40,301
)
Provision for finance receivable losses
 
(17,719
)
 
(27,663
)
 
(37,355
)
 
(61,819
)
Other expenses, net
 
(14,798
)
 
(19,279
)
 
(30,762
)
 
(39,731
)
Change in fair value of debt
 

 
535

 

 
(16,332
)
Net income
 
$
61,566

 
$
71,116

 
$
124,728

 
$
120,261

New Residential’s equity in net income (through October 3, 2014)
 
$

 
$
21,335

 
$

 
$
37,695

New Residential’s ownership
 
30.0
%
 
30.0
%
 
30.0
%
 
30.0
%
Summary of Consumer Loan Investments made through Equity Method Investees
The following is a summary of New Residential’s consumer loan investments made through equity method investees:
 
Unpaid Principal Balance(A)

Interest in  Consumer Loan Companies

Carrying Value(B)

Weighted Average Coupon(C)

Weighted Average Yield

Weighted Average Expected Life (Years)(D)
June 30, 2015
$
2,329,736

 
30.0
%
 
$
1,880,054

 
18.2
%
 
17.8
%
 
3.5
December 31, 2014
$
2,589,748

 
30.0
%
 
$
2,088,330

 
18.1
%
 
16.1
%
 
3.6

(A)
Represents the May 31, 2015 and November 30, 2014 balances, respectively.
(B)
Represents the carrying value of the consumer loans held by the Consumer Loan Companies.
(C)
Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above.
(D)
Weighted Average Expected Life represents the weighted average expected timing of the receipt of expected cash flows for this investment.