Quarterly report pursuant to Section 13 or 15(d)

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

v3.19.3
OTHER INCOME, GENERAL AND ADMINSTRATIVE, OTHER ASSETS AND LIABILITIES (Tables)
9 Months Ended
Sep. 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 
 September 30,
 
Nine Months Ended  
 September 30,
 
2019
 
2018
 
2019
 
2018
Gain (loss) on sale of real estate securities, net
$
95,003

 
$
(28,737
)
 
$
201,222

 
$
(66,695
)
Gain (loss) on sale of acquired residential mortgage loans, net
43,648

 
4,065

 
53,405

 
(1,358
)
Gain (loss) on settlement of derivatives
(14,147
)
 
19,459

 
(152,424
)
 
76,092

Gain (loss) on liquidated residential mortgage loans
(198
)
 
(1,113
)
 
(3,320
)
 
(2,267
)
Gain (loss) on sale of REO
(3,169
)
 
(4,971
)
 
(9,445
)
 
(12,114
)
Gains on settlement of investments in excess MSRs and servicer advance investments

 

 

 
113,002

Gain (loss) on sale or securitization of originated mortgage loans(A)
21,611

 

 
62,399

 

Other gains (losses)
12,004

 
(596
)
 
5,176

 
(596
)
 
$
154,752

 
$
(11,893
)
 
$
157,013

 
$
106,064



(A)
Represents gains on securitizations of Non-QM residential mortgage loans originated by NewRez.
Schedule of Other Income
Other income (loss), net, is comprised of the following:
 
Three Months Ended 
 September 30,
 
Nine Months Ended  
 September 30,
 
2019
 
2018
 
2019
 
2018
Unrealized gain (loss) on other ABS
$
(5,054
)
 
$
7,197

 
$
9,010

 
$
12,001

Unrealized gain (loss) on notes and bonds payable
(2,647
)
 
900

 
(5,248
)
 
900

Unrealized gain (loss) on contingent consideration
(2,703
)
 

 
(7,430
)
 

Gain (loss) on transfer of loans to REO
1,230

 
6,119

 
7,814

 
16,609

Gain (loss) on transfer of loans to other assets
(101
)
 
(1,528
)
 
(378
)
 
(1,648
)
Gain (loss) on Excess MSR recapture agreements
529

 
987

 
1,771

 
5,257

Gain (loss) on Ocwen common stock
(1,103
)
 
(145
)
 
3,134

 
4,655

Other income (loss)
(25,370
)
 
(19,390
)
 
(25,124
)
 
(27,359
)
 
$
(35,219
)
 
$
(5,860
)
 
$
(16,451
)
 
$
10,415


Schedule of General and Administrative Expenses
General and Administrative Expenses is comprised of the following:
 
Three Months Ended 
 September 30,
 
Nine Months Ended  
 September 30,
 
2019
 
2018
 
2019
 
2018
Compensation and benefits expense, servicing
$
30,494

 
$
22,498

 
$
87,219

 
$
22,498

Compensation and benefits expense, origination
44,270

 
32,822

 
112,977

 
32,822

Legal and professional expense
16,442

 
11,749

 
46,352

 
35,378

Loan origination expense
17,882

 
7,801

 
42,349

 
7,801

Occupancy expense
5,114

 
4,394

 
14,079

 
4,394

Other(A)
19,311

 
19,323

 
48,383

 
36,276

 
$
133,513

 
$
98,587

 
$
351,359

 
$
139,169


(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
 
September 30, 2019
 
December 31, 2018
 
 
 
September 30, 2019
 
December 31, 2018
Margin receivable, net(A)
$
409,526

 
$
145,857

 
MSR purchase price holdback
 
$
102,556

 
$
100,593

Servicing fee receivables
144,550

 
105,563

 
Accounts payable
 
89,372

 
75,591

Due from servicers
171,916

 
95,261

 
Derivative liabilities (Note 10)
 
1,842

 
29,389

Principal and interest receivable
98,067

 
76,015

 
Interest payable
 
80,892

 
49,352

Equity investments(B)
117,375

 
74,323

 
Due to servicers
 
144,156

 
95,419

Ditech deposit
70,000

 

 
Residential mortgage loan repurchase liability
 
168,532

 
121,602

Other receivables
103,933

 
23,723

 
Due to affiliates
 
59,551

 
101,471

Real Estate Owned
105,968

 
113,410

 
Contingent Consideration
 
52,761

 
40,842

Residential mortgage loans subject to repurchase
168,532

 
121,602

 
Excess spread financing, at fair value
 
30,377

 
39,304

Consumer loans, equity method investees (Note 9)
23,033

 
38,294

 
Operating lease liability
 
24,532

 

Goodwill(C)
41,986

 
24,645

 
Reserve for sales recourse
 
9,173

 
5,880

Receivable from government agency(D)
20,505

 
20,795

 
Other liabilities
 
56,547

 
54,140

Intangible assets
19,346

 
18,708

 
 
 
$
820,291

 
$
713,583

Prepaid expenses
33,120

 
29,165

 
 
 
 
 
 
Operating lease right-of-use asset
18,773

 

 
 
 

 

Derivative assets (Note 10)
36,712

 
10,893

 
 
 


 


Ocwen common stock, at fair value
10,912

 
7,778

 
 
 
 
 
 
Other assets
130,265

 
55,682

 
 
 
 
 
 
 
$
1,724,519

 
$
961,714

 
 
 
 
 
 


(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) operating companies in the single family housing industry. 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)
Includes goodwill derived from the Shellpoint Acquisition (see Note 1 for details) and the Company’s acquisition of Guardian Asset Management, a leading national provider of field services and property management to government agencies, financial institutions and asset management firms.
(D)
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:
 
 
Nine Months Ended  
 September 30,
 
 
2019
 
2018
Accretion of net discount on securities and loans(A)
 
$
266,467

 
$
296,961

Accretion of servicer advances receivable discount and servicer advance investments
 
18,290

 
207,428

Accretion of excess mortgage servicing rights income
 
18,203

 
32,371

Amortization of deferred financing costs
 
(2,984
)
 
(6,180
)
Amortization of discount on notes and bonds payable
 
(1,043
)
 
(1,599
)
 
 
$
298,933

 
$
528,981


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