Annual report pursuant to Section 13 and 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.19.3.a.u2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Schedule of Accretion and Other Amortization
Accretion and Other Amortization — As reflected on the consolidated statements of cash flows, this item is comprised of the following:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Accretion of net discount on securities and loans(A)
$
323,652

 
$
452,500

 
$
398,213

Accretion of servicer advances receivable discount and servicer advance investments
28,094

 
214,876

 
542,983

Accretion of excess mortgage servicing rights income
32,647

 
44,440

 
103,053

Amortization of deferred financing costs
(4,019
)
 
(7,795
)
 
(12,076
)
Amortization of discount on notes and bonds payable
(1,245
)
 
(2,054
)
 
(789
)
 
$
379,129

 
$
701,967

 
$
1,031,384



(A)    Includes accretion of the accretable yield on PCD loans.
Schedule of Other Income (Loss), Net This item is comprised of the following:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Unrealized gain (loss) on other ABS
$
2,101

 
$
10,283

 
$
2,883

Unrealized gain (loss) on notes and bonds payable
(1,236
)
 
(684
)
 

Unrealized gain (loss) on contingent consideration
(10,487
)
 
(1,581
)
 

Gain (loss) on transfer of loans to REO
11,842

 
19,519

 
22,938

Gain (loss) on transfer of loans to other assets
(1,144
)
 
(1,977
)
 
488

Gain (loss) on Excess MSR recapture agreements
2,294

 
979

 
2,384

Gain (loss) on Ocwen common stock
174

 
(10,860
)
 
5,346

Bargain Purchase Gain(A)
49,539

 

 

Rental and Ancillary Revenue
21,181

 

 

Other income (loss)
(30,115
)
 
(26,457
)
 
(27,741
)
 
$
44,149

 
$
(10,778
)
 
$
6,298



(A)    Partly driven by certain transition, integration, relocation and training costs incurred by the Ditech Acquisition (Note 3).

Schedule of Gain (Loss) on Settlement of Investments, Net
Gain (Loss) on Settlement of Investments, Net — This item is comprised of the following:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Gain (loss) on sale of real estate securities, net
$
205,989

 
$
(29,936
)
 
$
20,642

Gain (loss) on sale of acquired residential mortgage loans, net
153,174

 
(7,677
)
 
39,731

Gain (loss) on settlement of derivatives
(129,923
)
 
54,867

 
(39,214
)
Gain (loss) on liquidated residential mortgage loans
(4,872
)
 
(3,734
)
 
(10,201
)
Gain (loss) on sale of REO
(11,521
)
 
(12,424
)
 
(9,215
)
Gains on settlement of investments in excess MSRs and servicer advance investments

 
113,002

 
11,320

Other gains (losses)
12,840

 
(19,013
)
 
(2,753
)
 
$
225,687

 
$
95,085

 
$
10,310


Schedule Of General And Administrative Expenses General and Administrative Expenses is comprised of the following:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Compensation and benefits expense, servicing
$
121,004

 
$
47,084

 
$
184

Compensation and benefits expense, origination
164,485

 
62,786

 

Legal and professional expense
89,489

 
45,234

 
40,182

Loan origination expense
59,418

 
16,050

 

Occupancy expense
19,388

 
8,868

 

Other(A)
84,251

 
51,557

 
26,793

 
$
538,035

 
$
231,579

 
$
67,159


(A)    Represents miscellaneous general and administrative expenses.
Schedule of Other Assets and Other Liabilities
Other Assets and Other Liabilities — Other assets and liabilities are comprised of the following:
 
Other Assets
 
 
Accrued Expenses and Other Liabilities
 
December 31,
 
 
December 31,
 
2019
 
2018
 
 
2019
 
2018
Margin receivable, net(A)
$
280,176

 
$
145,857

 
MSRs purchase price holdback
75,348

 
100,593

Servicing fee receivables
159,607

 
105,563

 
Interest payable
68,668

 
49,352

Due from servicers
163,961

 
95,261

 
Accounts payable
119,771

 
75,591

Principal and interest receivable
85,191

 
76,015

 
Derivative liabilities (Note 11)
6,885

 
29,389

Equity investment(B)
114,763

 
74,323

 
Due to servicers
127,846

 
95,419

Other receivables
117,045

 
23,723

 
Residential mortgage loan repurchase liability
172,336

 
121,602

Real Estate Owned
93,672

 
113,410

 
Contingent Consideration
55,222

 
40,842

Single-family rental properties
24,133

 

 
Accrued Compensation and Benefits
41,228

 
17,656

Residential mortgage loans subject to repurchase
172,336

 
121,602

 
Excess spread financing, at fair value
31,777

 
39,304

Consumer loans, equity method investees (Note 10)

 
38,294

 
Operating lease liability
38,520

 

Goodwill
29,737

 
24,645

 
Reserve for sales recourse
12,549

 
5,880

Notes Receivable(D)
37,001

 

 
Other liabilities
22,976

 
36,484

Warrants
28,042

 

 
 
$
773,126

 
$
612,112

Recovery asset(E)
23,100

 

 
 
 
 
 
Property and equipment
18,018

 
11,263

 
 
 
 
 
Receivable from government agency(C)
19,670

 
20,795

 
 
 
 
 
Intangible assets
40,963

 
18,708

 
 
 
 
 
Prepaid expenses
19,249

 
29,165

 
 
 
 
 
Operating lease right-of-use asset
32,120

 

 
 
 
 
 
Derivative assets (Note 11)
41,501

 
10,893

 
 
 
 
 
Ocwen common stock, at fair value
7,952

 
7,778

 
 
 
 
 
Other assets
51,230

 
44,419

 
 
 
 
 
 
$
1,559,467

 
$
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)
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.
(D)
Represents a four-year subordinated debt facility to Covius (Note 3).
(E)
Represents post loan charge off deficiency balances acquired through the Ditech Acquisition (Note 3).