Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables)

v3.19.3.a.u2
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables)
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities
The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on New Residential’s consolidated balance sheets:
 
 
The Buyer
 
Shelter Joint Ventures
 
Residential Mortgage Loans
 
Consumer Loan SPVs
 
Total
December 31, 2019
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Servicer advance investments, at fair value
 
$
565,271

 
$

 
$

 
$

 
$
565,271

Residential mortgage loans, held-for-investment, at fair value
 

 

 
913,030

 

 
913,030

Consumer loans, held-for-investment
 

 

 

 
818,943

 
818,943

Cash and cash equivalents
 
30,065

 
23,802

 

 

 
53,867

Restricted cash
 
5,350

 

 

 
9,073

 
14,423

Other assets
 
2,414

 
3,556

 
4,534

 
12,409

 
22,913

Total Assets
 
$
603,100

 
$
27,358

 
$
917,564

 
$
840,425

 
$
2,388,447

Liabilities
 
 
 
 
 
 
 
 
 
 
Notes and bonds payable(A)
 
$
433,300

 
$

 
$
659,738

 
$
820,658

 
$
1,913,696

Accrued expenses and other liabilities
 
1,593

 
4,187

 
10,132

 
4,126

 
20,038

Total Liabilities
 
$
434,893

 
$
4,187

 
$
669,870

 
$
824,784

 
$
1,933,734

December 31, 2018
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Servicer advance investments, at fair value
 
$
713,239

 
$

 
$

 
$

 
$
713,239

Residential mortgage loans, held-for-investment
 

 

 
121,319

 

 
121,319

Consumer loans, held-for-investments
 

 

 

 
1,039,480

 
1,039,480

Cash and cash equivalents
 
29,833

 
17,346

 

 

 
47,179

Restricted cash
 
7,809

 

 

 
10,186

 
17,995

Servicer advances receivable
 

 

 

 

 

Other assets
 
2,414

 
618

 

 
15,627

 
18,659

Total Assets
 
$
753,295

 
$
17,964

 
$
121,319

 
$
1,065,293

 
$
1,957,871

Liabilities
 
 
 
 
 
 
 
 
 
 
Notes and bonds payable(A)
 
$
556,340

 
$

 
$
117,048

 
$
1,030,096

 
$
1,703,484

Accrued expenses and other liabilities
 
2,442

 
2,282

 

 
3,814

 
8,538

Total Liabilities
 
$
558,782

 
$
2,282

 
$
117,048

 
$
1,033,910

 
$
1,712,022


(A)
The creditors of the VIEs do not have recourse to the general credit of New Residential, and the assets of the VIEs are not directly available to satisfy New Residential’s obligations.
The following table summarizes certain characteristics of the underlying residential mortgage loans, and related financing, in these securitizations as of December 31, 2019:
 
 
December 31,
 
 
2019
 
2018
Residential mortgage loan UPB
 
$
19,590,978

 
$
7,818,221

Weighted average delinquency(A)
 
1.25
%
 
1.97
%
Net credit losses
 
$
9,354

 
$
9,101

Face amount of debt held by third parties(B)
 
$
17,946,939

 
$
6,783,187

 
 
 
 
 
Carrying value of bonds retained by New Residential(C) (D)
 
$
1,656,712

 
$
1,206,402

Cash flows received by New Residential on these bonds
 
$
270,739

 
$
178,301


(A)
Represents the percentage of the UPB that is 60+ days delinquent.
(B)
Excludes bonds retained by New Residential.
(C)
Includes bonds retained pursuant to required risk retention regulations.
(D)
Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 13 for details on unobservable inputs.
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net
Others’ interests in the equity of New Residential’s consolidated subsidiaries is computed as follows:
 
December 31, 2019
 
December 31, 2018
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
Total consolidated equity
$
168,207

 
$
23,171

 
$
46,510

 
$
194,513

 
$
15,682

 
$
66,105

Others’ ownership interest
26.8
%
 
49.0
%
 
46.5
%
 
26.8
%
 
51.0
%
 
46.5
%
Others’ interest in equity of consolidated subsidiary
$
45,025

 
$
11,354

 
$
22,171

 
$
52,066

 
$
7,998

 
$
30,561


Others’ interests in the New Residential’s net income (loss) is computed as follows:
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2017
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
Net income
$
15,892

 
$
12,717

 
$
69,143

 
$
7,209

 
$
3,135

 
$
79,539

 
$
23,604

 
$

 
$
98,692

Others’ ownership interest as a percent of total
26.8
%
 
49.0
%
 
46.5
%
 
27.4
%
 
51.0
%
 
46.5
%
 
47.6
%
 
%
 
46.5
%
Others’ interest in net income of consolidated subsidiaries
$
4,255

 
$
6,231

 
$
32,151

 
$
1,978

 
$
1,599

 
$
36,987

 
$
11,227

 
$

 
$
45,892


(A)
As a result, New Residential owned 73.2%, 72.6% and 52.4% of the Buyer, on average during the years ended December 31, 2019, 2018 and 2017, respectively. See Note 12 regarding the financing of Servicer Advance Investments.