Quarterly report pursuant to Section 13 or 15(d)

OTHER INCOME, GENERAL AND ADMINSTRATIVE, OTHER ASSETS AND LIABILITIES (Tables)

v3.19.2
OTHER INCOME, GENERAL AND ADMINSTRATIVE, OTHER ASSETS AND LIABILITIES (Tables)
6 Months Ended
Jun. 30, 2019
Other Income Assets And Liabilities  
Schedule of Gain (Loss) on Settlement of Investments
Gain (loss) on settlement of investments, net is comprised of the following:
 
Three Months Ended 
 June 30,
 
Six Months Ended  
 June 30,
 
2019
 
2018
 
2019
 
2018
Gain (loss) on sale of real estate securities, net
$
41,023

 
$
(8,731
)
 
$
106,219

 
$
(37,958
)
Gain (loss) on sale of acquired residential mortgage loans, net
31,482

 
9,228

 
49,016

 
(5,423
)
Gain (loss) on settlement of derivatives
(45,201
)
 
19,270

 
(138,277
)
 
56,633

Gain (loss) on liquidated residential mortgage loans
(597
)
 
(769
)
 
(1,593
)
 
(1,154
)
Gain (loss) on sale of REO
(4,551
)
 
(4,343
)
 
(6,276
)
 
(7,143
)
Gains on settlement of investments in excess MSRs and servicer advance investments

 

 

 
113,002

Other gains (losses)
7,428

 

 
(6,828
)
 

 
$
29,584

 
$
14,655

 
$
2,261

 
$
117,957



Schedule of Other Income
Other income (loss), net, is comprised of the following:
 
Three Months Ended 
 June 30,
 
Six Months Ended  
 June 30,
 
2019
 
2018
 
2019
 
2018
Unrealized gain (loss) on other ABS
7,385

 
5,117

 
$
14,064

 
$
4,804

Unrealized gain (loss) on notes and bonds payable
(1,464
)
 

 
(2,601
)
 

Unrealized gain (loss) on contingent consideration
(2,682
)
 

 
(4,727
)
 

Gain (loss) on transfer of loans to REO
1,600

 
6,320

 
6,584

 
10,490

Gain (loss) on transfer of loans to other assets
244

 
(175
)
 
(277
)
 
(120
)
Gain (loss) on Excess MSR recapture agreements
935

 
1,365

 
1,242

 
4,270

Gain (loss) on Ocwen common stock
1,451

 
(972
)
 
4,237

 
4,800

Other income (loss)
(1,374
)
 
(2,918
)
 
246

 
(7,969
)
 
$
6,095

 
$
8,737

 
$
18,768

 
$
16,275


Schedule of General and Administrative Expenses
General and Administrative Expenses is comprised of the following:
 
Three Months Ended 
 June 30,
 
Six Months Ended  
 June 30,
 
2019
 
2018
 
2019
 
2018
Compensation and benefits expense
$
68,821

 
$

 
$
125,432

 
$

Legal and professional expense
16,618

 
11,719

 
29,910

 
23,629

Loan origination expense
14,198

 

 
24,467

 

Occupancy expense
4,786

 

 
8,965

 

Other(A)
14,483

 
8,856

 
29,072

 
16,953

 
$
118,906

 
$
20,575

 
$
217,846

 
$
40,582


(A)
Represents miscellaneous general and administrative expenses.
Schedule of Other Assets and Liabilities
Other assets and liabilities are comprised of the following:
 
Other Assets
 
 
 
Accrued Expenses
and Other Liabilities
 
June 30, 2019
 
December 31, 2018
 
 
 
June 30, 2019
 
December 31, 2018
Margin receivable, net(A)
$
102,542

 
$
145,857

 
MSR purchase price holdback
 
$
123,167

 
$
100,593

Servicing fee receivables
181,178

 
105,563

 
Accounts payable
 
71,114

 
75,591

Due from servicers
145,147

 
95,261

 
Derivative liabilities (Note 10)
 
18,980

 
29,389

Principal and interest receivable
123,460

 
76,015

 
Interest payable
 
61,953

 
49,352

Equity investments(B)
90,411

 
74,323

 
Due to servicers
 
143,605

 
95,419

Ditech deposit (Note 5)
70,000

 

 
Contingent Consideration
 
45,569

 
40,842

Other receivables
87,015

 
23,723

 
Excess spread financing, at fair value
 
28,078

 
39,304

Goodwill
24,645

 
24,645

 
Operating lease liability
 
26,157

 

Receivable from government agency(C)
18,379

 
20,795

 
Reserve for sales recourse
 
8,016

 
5,880

Intangible assets
19,065

 
18,708

 
Other liabilities
 
44,653

 
54,140

Prepaid expenses
18,795

 
29,165

 
 
 
$
571,292

 
$
490,510

Operating lease right-of-use asset
20,123

 

 
 
 

 

Derivative assets (Note 10)
23,129

 
10,893

 
 
 


 


Ocwen common stock, at fair value
12,015

 
7,778

 
 
 
 
 
 
Other assets
89,968

 
55,682

 
 
 
 
 
 
 
$
1,025,872

 
$
688,408

 
 
 
 
 
 


(A)
Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments.
(B)
Represents equity investments in funds that invest in 1) a commercial redevelopment project and 2) an operating company in the single family rental industry (acquired in May 2019). The indirect investments are accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment and as an equity method investment, respectively.
(C)
Represents claims receivable from the FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.

Schedule of Accretion and Other Amortization
As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following:
 
 
Six Months Ended  
 June 30,
 
 
2019
 
2018
Accretion of servicer advances receivable discount and servicer advance investments
 
$
12,957

 
$
146,024

Accretion of excess mortgage servicing rights income
 
11,830

 
20,743

Accretion of net discount on securities and loans(A)
 
235,003

 
197,331

Amortization of deferred financing costs
 
(1,925
)
 
(3,963
)
Amortization of discount on notes and bonds payable
 
(910
)
 
(1,030
)
 
 
$
256,955

 
$
359,105


(A)
Includes accretion of the accretable yield on PCD loans.