Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS (Tables)

v3.2.0.727
DEBT OBLIGATIONS (Tables)
6 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
Activities related to the carrying value of New Residential’s debt obligations were as follows:
 
 
Servicer Advances
 
Real Estate Securities
 
Real Estate Loans
 
Consumer Loan Investment
 
Other
 
Total
Balance at December 31, 2014(A)
 
$
2,890,230

 
$
2,246,651

 
$
925,418

 
$

 
$

 
$
6,062,299

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
 

 
2,222,172

 
386,439

 
42,976

 

 
2,651,587

Modified retrospective adjustment for the adoption of ASU No. 2014-11
 

 
84,649

 
1,306

 

 

 
85,955

Repayments
 

 
(2,721,483
)
 
(759,298
)
 

 

 
(3,480,781
)
Adoption of ASU No. 2015-03
 

 

 
(1,090
)
 
(144
)
 

 
(1,234
)
Notes Payable:
 
 
 
 
 
 
 
 
 
 
 

Retrospective adjustment for the adoption of ASU No. 2015-03
 
(4,446
)
 

 

 

 

 
(4,446
)
Borrowings
 
7,210,317

 

 
1,632

 

 
852,419

 
8,064,368

Repayments
 
(2,412,975
)
 

 
(2,178
)
 

 
(658,810
)
 
(3,073,963
)
Adoption of ASU No. 2015-03
 
(16,059
)
 

 

 

 
(48
)
 
(16,107
)
Balance at June 30, 2015
 
$
7,667,067

 
$
1,831,989

 
$
552,229

 
$
42,832

 
$
193,561

 
$
10,287,678


(A)    Excludes debt related to linked transactions (Note 10).
The following table presents certain information regarding New Residential’s debt obligations:

 
June 30, 2015
 
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
Debt Obligations/Collateral
 
Month Issued
 
Outstanding Face Amount
 
Carrying Value(A)
 
Final Stated Maturity
 
Weighted Average Funding Cost
 
Weighted Average Life (Years)
 
Outstanding Face
 
Amortized Cost Basis
 
Carrying Value
 
Weighted Average Life (Years)
 
Carrying Value(A)
Repurchase Agreements(B)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency RMBS(C)
 
Various
 
$
1,172,422

 
$
1,172,422

 
Jul-15 to Aug-15
 
0.40
%
 
0.1

 
$
1,167,997

 
$
1,206,770

 
$
1,204,179

 
1.0
 
$
1,707,602

Non-Agency RMBS (D)
 
Various
 
659,567

 
659,567

 
Jul-15 to Sep-15
 
1.87
%
 
0.1

 
2,281,029

 
901,082

 
910,802

 
7.4
 
539,049

Residential Mortgage Loans(E)
 
Various
 
447,940

 
447,012

 
Aug-15 to Aug-16
 
2.95
%
 
0.6

 
618,216

 
543,131

 
540,415

 
2.7
 
867,334

Real Estate Owned(F)(G)
 
Various
 
82,946

 
82,784

 
Aug-15 to Aug-16
 
3.15
%
 
0.6

 
N/A

 
N/A

 
89,168

 
N/A
 
35,105

Consumer Loan Investment(H)
 
Apr-15
 
42,976

 
42,832

 
Oct-15
 
3.77
%
 
0.3

 
N/A

 
N/A

 

 
3.5
 

Total Repurchase Agreements
 
 
 
2,405,851

 
2,404,617

 

 
1.44
%
 
0.2

 
 
 
 
 
 
 
 
 
3,149,090

Notes Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured Corporate Note(I)
 
May-15
 
195,590

 
193,561

 
Apr-17
 
5.43
%
 
1.8

 
101,243,511

 
230,282

 
268,951

 
4.8
 

Servicer Advances(J)
 
Various
 
7,687,572

 
7,667,067

 
Oct-15 to Jun-18
 
2.88
%
 
1.1

 
8,278,685

 
8,081,258

 
8,182,400

 
4.3
 
2,885,784

Residential Mortgage Loans(K)
 
Oct-14
 
22,433

 
22,433

 
Oct-15
 
3.07
%
 
0.3

 
39,475

 
23,305

 
21,601

 
4.1
 
22,194

Real Estate Owned
 
N/A
 

 

 
 
 
%
 

 
N/A

 
N/A

 

 
N/A
 
785

Total Notes Payable
 
 
 
7,905,595

 
7,883,061

 
 
 
2.94
%
 
1.1

 
 
 
 
 
 
 
 
 
2,908,763

Total/ Weighted Average
 
 
 
$
10,311,446

 
$
10,287,678

 
 
 
2.59
%
 
0.9

 
 
 
 
 
 
 
 
 
$
6,057,853

 
(A)
Net of deferred financing costs associated with the adoption of ASU No. 2015-03.
(B)
These repurchase agreements had approximately $2.5 million of associated accrued interest payable as of June 30, 2015.
(C)
The counterparties of these repurchase agreements are Citibank ($232.2 million), Morgan Stanley ($77.0 million), Barclays ($96.8 million), Daiwa ($377.2 million) and Jefferies ($389.2 million) and were subject to customary margin call provisions. All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include related trade and other receivables.
(D)
The counterparties of these repurchase agreements are Barclays ($5.4 million), Credit Suisse ($263.7 million), Royal Bank of Canada ($10.2 million), Bank of America, N.A. ($88.7 million), Citibank ($60.6 million), Goldman Sachs ($70.1 million) and UBS ($160.8 million) and were subject to customary margin call provisions. All of the Non-Agency repurchase agreements have LIBOR-based floating interest rates.
(E)
The counterparties on these repurchase agreements are Barclays ($263.4 million maturing in January 2016), Bank of America N.A. ($61.4 million maturing in August 2016), Nomura ($60.5 million maturing in May 2016), Citibank ($2.7 million maturing in August 2015) and Credit Suisse ($60.0 million maturing in November 2015). All of these repurchase agreements have LIBOR-based floating interest rates.
(F)
The counterparties of these repurchase agreements are Barclays ($68.2 million), Credit Suisse ($0.9 million), Bank of America, N.A. ($3.5 million), Citibank ($0.6 million) and Nomura ($9.8 million). All of these repurchase agreements have LIBOR-based floating interest rates.
(G)
Includes financing collateralized by receivables including claims from FHA on GNMA EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.
(H)
The repurchase agreement is payable to Bank of America, N.A. and bears interest equal to three-month LIBOR plus 3.50% and is collateralized by New Residential’s interest in consumer loans (Note 9).
(I)
The loan bears interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 5.25%. The outstanding face of the collateral represents the UPB of the residential mortgage loans underlying the Excess MSRs that secure this corporate loan.
(J)
$3.1 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index rate equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.0% to 2.0%.
(K)
The note is payable to Nationstar and bears interest equal to one-month LIBOR plus 2.875%.
Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of June 30, 2015 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
July 1 through December 31, 2015
 
$
1,203,382

 
$
1,961,575

 
$
3,164,957

2016
 
4,386,775

 
396,462

 
4,783,237

2017
 
1,654,662

 
195,590

 
1,850,252

2018
 
513,000

 

 
513,000

 
 
$
7,757,819

 
$
2,553,627

 
$
10,311,446

Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of June 30, 2015:
Debt Obligations/ Collateral
 
Collateral Type
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
 
 
Residential Mortgage Loans
 
Real Estate Loans
 
$
2,275,000

 
$
465,992

 
$
1,809,008

Notes Payable
 
 
 
 
 
 
 
 
Servicer Advances(A)
 
Servicer Advances
 
11,163,000

 
7,687,572

 
3,475,428

 
 
 
 
$
13,438,000

 
$
8,153,564

 
$
5,284,436



(A)
New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.4% fee on the unused borrowing capacity.