Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Cash Flows From Operating Activities      
Net income $ (1,357,684) $ 605,933 $ 1,004,531
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Change in fair value of Excess MSR 19,721 3,705 50,299
Change in fair value of MSR financing receivables 279,168 189,023 (31,550)
Change in fair value of servicer advance investments (763) (10,288) 89,332
Change in fair value of residential mortgage loans, at fair value 107,604 70,914 (69,820)
Change in fair value of secured notes and bonds payable 966 1,236 684
Change in fair value of real estate and other securities (28,455) (2,101) (10,283)
Change in fair value of consumer loans 6,384 0 0
(Gain) loss on settlement of investments, net 863,898 (236,513) (96,688)
Gain on sale of originated mortgage loans, held-for-sale, net (1,399,092) (460,107) (86,065)
Bargain purchase gain 0 (49,539) 0
Earnings from investments in consumer loans, equity method investees 0 1,438 (10,803)
(Gain) loss on extinguishment of debt 66,233 8,532 624
Change in fair value of derivative instruments 53,467 56,143 108,234
Change in fair value of contingent consideration 6,568 10,487 1,581
Change in fair value of equity investments 54,455 3,096 677
(Gain) loss on transfer of loans to REO (7,945) (11,842) (19,519)
(Gain) loss on transfer of loans to other assets 939 1,144 1,977
(Gain) loss on Ocwen common stock (3,235) (174) 10,860
Accretion and other amortization (151,540) (379,129) (701,967)
Provision for credit losses on securities 13,404 25,174 30,017
Valuation and credit loss provision (reversal) on loans and real estate owned (“REO”) 110,208 10,403 60,624
Non-cash portions of servicing revenue, net 1,889,741 712,950 191,245
Non-cash directors’ compensation 1,211 1,055 1,020
Deferred tax provision 15,029 38,207 (80,054)
Changes in:      
Servicer advances receivable, net 336,589 218,217 381,400
Other assets 73,139 (363,866) (204,231)
Due to affiliates (94,432) 2,411 12,510
Accrued expenses and other liabilities (86,543) 182,153 186,311
Other operating cash flows:      
Interest and distributions received from excess mortgage servicing rights assets 30,855 43,049 57,006
Interest received from servicer advance investments 19,322 28,437 33,821
Interest received from Non-Agency RMBS 170,151 264,694 219,704
Interest received from residential mortgage loans, held-for-investment 5,139 8,485 8,962
Interest received from consumer loans, held-for-investment 0 30,588 36,660
Purchases of residential mortgage loans, held-for-sale (3,433,110) (8,610,511) (5,767,172)
Origination of residential mortgage loans, held-for-sale (60,951,784) (19,411,150) (3,385,868)
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale 64,968,767 24,968,751 6,546,613
Principal repayments from purchased residential mortgage loans, held-for-sale 277,568 417,840 194,038
Net cash provided by (used in) operating activities 1,855,943 (1,622,548) (1,229,114)
Cash Flows From Investing Activities      
Business acquisitions, net of cash acquired 0 (1,223,233) (123,185)
Purchase of servicer advance investments (1,294,757) (1,622,808) (2,306,043)
Purchase of Non-Agency RMBS (56,515) (885,629) (2,969,308)
Purchase of REO and other assets (23,640) (68,024) (33,377)
Purchase of investment in consumer loans, equity method investees 0 (64,499) (308,050)
Purchase of commercial real estate, equity method investees 0 0 (75,000)
Draws on revolving consumer loans (33,041) (54,375) (63,971)
Payments for settlement of derivatives (214,747) (300,771) (172,152)
Return of investments in Excess MSRs 58,970 68,613 74,154
Return of investments in equity method investments 0 92,748 300,056
Principal repayments from servicer advance investments 1,338,101 1,786,394 2,421,334
Principal repayments from Agency RMBS 1,101,564 2,085,283 111,202
Principal repayments from Non-Agency RMBS 407,996 1,294,010 939,690
Principal repayments from residential mortgage loans 139,561 113,602 147,403
Proceeds from sale of residential mortgage loans 0 41,622 25,511
Principal repayments from consumer loans 229,218 261,456 311,222
Principal repayments from MSRs and MSR financing receivables 80,838 51,470 0
Proceeds from sale of mortgage servicing rights 15,341 24,528  
Proceeds from sale of Excess MSRs 1,142 10,095 19,064
Proceeds from sale of Agency RMBS 24,928,144 22,173,505 7,528,490
Proceeds from sale of Non-Agency RMBS 5,451,493 1,950,384 86,443
Proceeds from settlement of derivatives 164,417 108,472 242,422
Proceeds from sale of REO 79,108 138,910 140,301
Net cash provided by (used in) investing activities 8,645,441 (10,948,515) (5,171,090)
Cash Flows From Financing Activities      
Repayments of secured financing agreements (122,526,887) (196,120,793) (85,915,552)
Repayments of warehouse credit facilities (64,520,481) (34,833,314) (7,298,734)
Margin deposits under secured financing agreements and derivatives (4,092,498) (4,567,677) (1,934,868)
Proceeds from issuance of term loan 592,400 0 0
Repayment of term loan (600,000) 0 0
Proceeds from issuance of unsecured senior notes 544,400 0 0
Repayments of secured notes and bonds payable (9,452,948) (9,307,033) (9,892,659)
Deferred financing fees (43,705) (6,705) (12,498)
Common stock dividends paid (332,479) (807,788) (661,859)
Preferred stock dividends paid (51,088) (9,334) 0
Borrowings under secured financing agreements 113,228,180 207,138,969 90,996,778
Borrowings under warehouse credit facilities 63,453,603 36,177,659 8,665,900
Return of margin deposits under secured financing agreements and derivatives 4,016,721 4,365,946 1,733,387
Borrowings under secured notes and bonds payable 9,380,533 9,706,864 9,770,909
Issuance of preferred stock 389,548 423,444 0
Issuance of common stock 1,735 752,217 983,149
Repurchase of common stock (7,462) 0 0
Costs related to issuance of common stock (72) (824) (1,087)
Noncontrolling interest in equity of consolidated subsidiaries - contributions 2,449 0 0
Noncontrolling interest in equity of consolidated subsidiaries - distributions (41,800) (54,712) (64,559)
Payment of contingent consideration (51,994) (10,000) 0
Purchase of noncontrolling interests in the Buyer 0 0 925
Net cash provided by (used in) financing activities (10,111,845) 12,846,919 6,369,232
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 389,539 275,856 (30,972)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 690,934 415,078 446,050
Cash, Cash Equivalents, and Restricted Cash, End of Period 1,080,473 690,934 415,078
Supplemental Disclosure of Cash Flow Information      
Cash paid during the period for interest 512,139 902,466 564,722
Cash paid during the period for income taxes 3,629 1,479 5,012
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Dividends declared but not paid 90,128 211,732  
Warrants issued with term loan 53,462 0 0
Purchase of investments, primarily Agency and Non-Agency RMBS, settled after year end 154 902,081 2,048,348
Sale of investments, primarily Agency RMBS, settled after year end 4,180 5,256,014 3,925,198
Transfer from residential mortgage loans to real estate owned and other assets 69,812 95,640 109,527
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale 0 9,136 23,080
Non-cash distributions from LoanCo 0 0 25,739
Purchase price holdback (45,013) (25,245) (697)
Contingent consideration 14,247 55,222  
Ditech effective settlement of Preexisting Relationships 0 4,919 0
Real estate securities retained from loan securitizations 518,515 1,171,959 900,491
Residential mortgage loans subject to repurchase 1,452,005 [1] 172,336 [1] 121,602
Ocwen transaction - Excess MSRs 0 0 638,567
Ocwen transaction - servicer advance investments 0 0 3,175,891
Ocwen transaction - MSR financing receivables 0 0 1,017,993
MSRs, MSR financing receivables and servicer advance receivables      
Cash Flows From Investing Activities      
Purchase of MSRs, MSR financing receivables and servicer advance receivables (539,889) (1,450,375) (1,194,467)
Agency RMBs      
Cash Flows From Investing Activities      
Purchase of Agency RMBS (23,187,216) (35,479,893) (10,200,299)
Residential Mortgage Loans      
Cash Flows From Investing Activities      
Purchase of residential mortgage loans 0 0 (85,778)
MSRs      
Cash Flows From Investing Activities      
Proceeds from sale of mortgage servicing rights 11,282 1,539  
Consumer Loans      
Other operating cash flows:      
Distributions of earnings, equity method investees 0 8,607 6,176
MSRs      
Cash Flows From Investing Activities      
Proceeds from sale of mortgage servicing rights 8,886 1,539 5,776
Shellpoint Acquisition      
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Contingent consideration 0 0 39,300
Shellpoint Acquisition | MSRs      
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Purchase price holdback 0 0 8,173
Guardian Acquisition      
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Contingent consideration 0 13,893 0
New Residential Mortgage LLC | Mortgage Servicing Rights Financing Receivable      
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Change in fair value of MSR financing receivables 279,168 189,023 (31,550)
Cash Flows From Investing Activities      
Proceeds from sale of mortgage servicing rights 4,059 22,989  
New Residential Mortgage LLC | MSRs | Mortgage Servicing Rights Financing Receivable      
Cash Flows From Investing Activities      
Proceeds from sale of mortgage servicing rights 5,808 22,989 7,472
Common Stock      
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Dividends declared but not paid 82,949 207,761 184,552
Preferred Stock      
Supplemental Schedule of Non-Cash Investing and Financing Activities      
Dividends declared but not paid $ 14,357 $ 3,971 $ 0
[1] See Note 6 for details.