Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS (Tables)

v3.19.3
DEBT OBLIGATIONS (Tables)
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
The following table presents certain information regarding New Residential’s debt obligations:

 
September 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)
 
$
10,733,236

 
$
10,733,236

 
Oct-19 to May-20
 
2.31
%
 
0.1
 
$
10,611,553

 
$
10,825,984

 
$
10,886,787

 
2.4
 
$
4,346,070

Non-Agency RMBS (E)
 
7,144,329

 
7,144,329

 
Oct-19 to Sep-20
 
3.08
%
 
0.1
 
21,021,981

 
7,113,471

 
7,786,425

 
6.3
 
7,434,785

Residential Mortgage Loans(F)
 
5,165,150

 
5,164,159

 
Oct-19 to May-21
 
3.74
%
 
0.6
 
5,960,958

 
6,025,596

 
5,805,242

 
13.9
 
3,678,246

Real Estate Owned(G)(H)
 
68,651

 
68,635

 
Oct-19 to May-21
 
3.85
%
 
0.4
 
N/A

 
N/A

 
95,410

 
N/A
 
94,868

Total Repurchase Agreements
 
23,111,366

 
23,110,359

 
 
 
2.87
%
 
0.3
 
 
 
 
 
 
 
 
 
15,553,969

Notes and Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess MSRs(I)
 
269,759

 
269,759

 
Feb-20 to Jul-22
 
4.95
%
 
1.9
 
103,514,484

 
315,847

 
416,899

 
5.8
 
297,563

MSRs(J)
 
2,360,182

 
2,352,961

 
Mar-20 to Jul-24
 
4.23
%
 
2.0
 
452,215,330

 
4,718,333

 
5,113,271

 
5.5
 
2,360,856

Servicer Advances(K)
 
2,903,093

 
2,896,819

 
Jan-20 to Aug-23
 
3.22
%
 
2.0
 
3,316,416

 
3,482,368

 
3,512,345

 
1.6
 
3,382,455

Residential Mortgage Loans(L)
 
1,012,342

 
1,015,360

 
Apr-20 to Jul-43
 
4.09
%
 
3.7
 
1,258,875

 
1,277,193

 
1,194,186

 
8.0
 
124,945

Consumer Loans(M)
 
868,214

 
870,973

 
Dec-21 to May-36
 
3.25
%
 
4.0
 
878,317

 
884,473

 
881,069

 
5.6
 
936,447

Total Notes and Bonds Payable
 
7,413,590

 
7,405,872

 
 
 
3.73
%
 
2.5
 
 
 
 
 
 
 
 
 
7,102,266

Total/ Weighted Average
 
$
30,524,956

 
$
30,516,231

 
 
 
3.08
%
 
0.8
 
 
 
 
 
 
 
 
 
$
22,656,235



(A)
Net of deferred financing costs.
(B)
All debt obligations with a stated maturity through October 31, 2019 were refinanced, extended or repaid.
(C)
These repurchase agreements had approximately $77.8 million of associated accrued interest payable as of September 30, 2019.
(D)
All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $4.4 billion of related trade and other receivables.
(E)
$6,585.6 million face amount of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates while the remaining $558.8 million face amount of the Non-Agency RMBS repurchase agreements have a fixed rate. This also includes repurchase agreements of $7.5 million on retained servicer advance and consumer loan bonds and of $671.3 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 $169.8 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: $940.2 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 $1,419.9 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 1.99%. 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 $6.0 million note payable to Nationstar which includes a $1.5 million receivable from government agency and bears interest equal to one-month LIBOR plus 2.88%, (ii) $109.9 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) $362.1 million of asset-backed notes held by third parties which bear interest equal to 4.59% (see Note 12 for details), and (iv) $535.1 million of asset-backed notes held by third parties which include $1.3 million of REO and 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: $787.9 million UPB of Class A notes with a coupon of 3.20% and a stated maturity date in May 2036, $70.4 million UPB of Class B notes with a coupon of 3.58% 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 $1.2 million face amount note which bears interest equal to 4.00%.
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

 

 

 
131,684,478

 
20,417,339

 

 
152,101,817

Repayments

 

 

 
(125,587,933
)
 
(18,957,675
)
 

 
(144,545,608
)
Capitalized deferred financing costs, net of amortization

 

 

 
165

 
17

 

 
182

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 

Borrowings
300,000

 
2,039,949

 
3,419,265

 

 
912,445

 
928,683

 
7,600,342

Repayments
(328,000
)
 
(2,048,653
)
 
(3,902,406
)
 

 
(27,279
)
 
(1,000,203
)
 
(7,306,541
)
Discount on borrowings, net of amortization

 

 
29

 

 

 
6,046

 
6,075

Unrealized gain on notes, fair value

 

 

 

 
5,248

 

 
5,248

Capitalized deferred financing costs, net of amortization
196

 
809

 
(2,524
)
 

 

 

 
(1,519
)
Balance at September 30, 2019
$
269,759

 
$
2,352,961

 
$
2,896,819

 
$
17,877,565

 
$
6,248,154

 
$
870,973

 
$
30,516,231


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

Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of September 30, 2019 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
October 1 through December 31, 2019
 
$
1,978

 
$
18,781,709

 
$
18,783,687

2020
 
615,733

 
5,480,786

 
6,096,519

2021
 
1,088,623

 
1,034,034

 
2,122,657

2022
 
1,162,067

 
169,759

 
1,331,826

2023
 
400,000

 
403,433

 
803,433

2024 and thereafter
 
976,300

 
410,534

 
1,386,834

 
 
$
4,244,701

 
$
26,280,255

 
$
30,524,956


Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of September 30, 2019:
Debt Obligations / Collateral
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
Residential mortgage loans and REO
 
$
9,112,297

 
$
5,233,801

 
$
3,878,496

Non-Agency RMBS
 
650,000

 
558,756

 
91,244

 
 
 
 
 
 
 
Notes and Bonds Payable
 
 
 
 
 
 
Excess MSRs
 
150,000

 
100,000

 
50,000

MSRs
 
1,375,000

 
940,188

 
434,812

Servicer advances(A)
 
1,204,660

 
1,053,127

 
151,533

Residential Mortgage Loans
 
650,000

 
535,063

 
114,937

Consumer loans
 
150,000

 
1,228

 
148,772

 
 
$
13,291,957

 
$
8,422,163

 
$
4,869,794



(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 0.02% fee on the unused borrowing capacity.