Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS (Tables)

v3.19.2
DEBT OBLIGATIONS (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
Activities related to the carrying value of New Residential’s debt obligations were as follows:
 
Excess MSRs
 
MSRs
 
Servicer Advances(A)
 
Real Estate Securities
 
Residential Mortgage Loans and REO
 
Consumer Loans
 
Total
Balance at December 31, 2018
$
297,563

 
$
2,360,856

 
$
3,382,455

 
$
11,780,855

 
$
3,898,059

 
$
936,447

 
$
22,656,235

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings(B)

 

 

 
86,038,561

 
11,513,395

 

 
97,551,956

Repayments

 

 

 
(81,777,620
)
 
(9,848,210
)
 

 
(91,625,830
)
Capitalized deferred financing costs, net of amortization

 

 

 
124

 
26

 

 
150

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 

Borrowings(B)
100,000

 
1,456,391

 
2,296,957

 

 
871,982

 
858,278

 
5,583,608

Repayments
(110,000
)
 
(1,639,389
)
 
(2,702,239
)
 

 
(14,180
)
 
(933,175
)
 
(5,398,983
)
Discount on borrowings, net of amortization

 

 
19

 

 

 
6,568

 
6,587

Unrealized gain on notes, fair value

 

 

 

 
2,601

 

 
2,601

Capitalized deferred financing costs, net of amortization
196

 
92

 
1,398

 

 

 

 
1,686

Balance at June 30, 2019
$
287,759

 
$
2,177,950

 
$
2,978,590

 
$
16,041,920

 
$
6,423,673

 
$
868,118

 
$
28,778,010


(A)
New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances.

The following table presents certain information regarding New Residential’s debt obligations:

 
June 30, 2019
 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
Debt Obligations/Collateral
 
Outstanding Face Amount
 
Carrying Value(A)
 
Final Stated Maturity(B)
 
Weighted Average Funding Cost
 
Weighted Average Life (Years)
 
Outstanding Face
 
Amortized Cost Basis
 
Carrying Value
 
Weighted Average Life (Years)
 
Carrying Value(A)
Repurchase Agreements(C)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency RMBS(D)
 
$
8,023,603

 
$
8,023,603

 
Jul-19 to May-20
 
2.60
%
 
0.1
 
$
8,092,018

 
$
8,270,539

 
$
8,334,665

 
2.1
 
$
4,346,070

Non-Agency RMBS (E)
 
8,018,358

 
8,018,317

 
Jul-19 to Sep-19
 
3.42
%
 
0.1
 
20,457,734

 
8,074,682

 
8,733,701

 
6.5
 
7,434,785

Residential Mortgage Loans(F)
 
5,365,278

 
5,364,296

 
Jul-19 to May-21
 
4.22
%
 
0.7
 
5,905,393

 
5,727,584

 
5,721,192

 
14.8
 
3,678,246

Real Estate Owned(G)(H)
 
74,046

 
74,029

 
Jul-19 to May-21
 
4.46
%
 
0.4
 
N/A

 
N/A

 
79,406

 
N/A
 
94,868

Total Repurchase Agreements
 
21,481,285

 
21,480,245

 
 
 
3.32
%
 
0.3
 
 
 
 
 
 
 
 
 
15,553,969

Notes and Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess MSRs(I)
 
287,759

 
287,759

 
Jan-20 to Nov-22
 
5.25
%
 
2.2
 
111,126,425

 
332,488

 
431,095

 
5.9
 
297,563

MSRs(J)
 
2,185,886

 
2,177,950

 
Mar-20 to Jul-24
 
4.32
%
 
2.5
 
429,678,985

 
4,378,609

 
4,826,580

 
5.8
 
2,360,856

Servicer Advances(K)
 
2,980,954

 
2,978,590

 
Sep-19 to Dec-21
 
3.57
%
 
1.6
 
3,473,192

 
3,661,779

 
3,685,115

 
1.6
 
3,382,455

Residential Mortgage Loans(L)
 
980,613

 
983,367

 
Apr-20 to Jul-43
 
4.03
%
 
3.0
 
1,202,743

 
1,170,746

 
1,148,931

 
8.9
 
122,465

Consumer Loans(M)
 
864,837

 
868,118

 
Dec-21 to May-36
 
3.23
%
 
3.2
 
937,497

 
942,696

 
938,821

 
3.7
 
936,447

Receivable from government agency(L)
 
1,981

 
1,981

 
Apr-20
 
4.98
%
 
0.8
 
N/A

 
N/A

 
1,387

 
N/A
 
2,480

Total Notes and Bonds Payable
 
7,302,030

 
7,297,765

 
 
 
3.88
%
 
2.3
 
 
 
 
 
 
 
 
 
7,102,266

Total/ Weighted Average
 
$
28,783,315

 
$
28,778,010

 
 
 
3.46
%
 
0.8
 
 
 
 
 
 
 
 
 
$
22,656,235



(A)
Net of deferred financing costs.
(B)
All debt obligations with a stated maturity through July 31, 2019 were refinanced, extended or repaid.
(C)
These repurchase agreements had approximately $85.6 million of associated accrued interest payable as of June 30, 2019.
(D)
All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $5.3 billion of related trade and other receivables.
(E)
$7,417.6 million face amount of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates while the remaining $600.7 million face amount of the Non-Agency RMBS repurchase agreements have a fixed rate. This also includes repurchase agreements of $136.4 million on retained servicer advance and consumer loan bonds and of $741.1 million on retained bonds collateralized by Agency MSRs.
(F)
All of these repurchase agreements have LIBOR-based floating interest rates.
(G)
All of these repurchase agreements have LIBOR-based floating interest rates.
(H)
Includes financing collateralized by receivables including claims from FHA on Ginnie Mae 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.
(I)
Includes $187.8 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.00%, and $100.0 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the interests in MSRs that secure these notes.
(J)
Includes: $675.2 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin ranging from 2.25% to 2.75%; and $1,510.7 million of public notes with fixed interest rates ranging from 3.55% to 4.62%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and mortgage servicing rights financing receivables that secure these notes.
(K)
$2.6 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 equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 1.15% to 2.15%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and mortgage servicing rights financing receivables owned by NRM.
(L)
Represents: (i) a $6.3 million note payable to Nationstar that bears interest equal to one-month LIBOR plus 2.88%, (ii) $113.9 million fair value of SAFT 2013-1 mortgage-backed securities issued with fixed interest rates ranging from 3.50% to 3.76% (see Note 12 for details), (iii) $369.7 million of asset-backed notes held by third parties which bear interest equal to 4.59% (see Note 12 for details), and (iv) $494.6 million of asset-backed notes held by third parties which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 1.25%.
(M)
Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $822.8 million UPB of Class A notes with a coupon of 3.20% and a stated maturity date in May 2036, and $8.7 million UPB of Class C notes with a coupon of 5.06% and a stated maturity date in May 2036. Also includes a $6.6 million face amount note which bears interest equal to 4.00%.
Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of June 30, 2019 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
July 1 through December 31, 2019
 
$
28,316

 
$
18,599,728

 
$
18,628,044

2020
 
1,101,534

 
3,748,583

 
4,850,117

2021
 
1,859,567

 
1,054,834

 
2,914,401

2022
 
369,715

 
187,759

 
557,474

2023
 

 
425,379

 
425,379

2024 and thereafter
 
970,205

 
437,695

 
1,407,900

 
 
$
4,329,337

 
$
24,453,978

 
$
28,783,315


Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of June 30, 2019:
Debt Obligations / Collateral
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
Residential mortgage loans and REO
 
$
7,646,297

 
$
5,439,324

 
$
2,206,973

Non-Agency RMBS
 
650,000

 
600,737

 
49,263

 
 
 
 
 
 
 
Notes and Bonds Payable
 
 
 
 
 
 
Excess MSRs
 
150,000

 
100,000

 
50,000

MSRs
 
1,275,000

 
675,188

 
599,812

Servicer advances(A)
 
1,519,679

 
1,217,295

 
302,384

Consumer loans
 
150,000

 
6,559

 
143,441

 
 
$
11,390,976

 
$
8,039,103

 
$
3,351,873



(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 0.05% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained Non-Agency bonds collateralized by servicer advances with a current face amount of $86.3 million.