Annual report pursuant to Section 13 and 15(d)

SEGMENT REPORTING (Tables)

v3.20.4
SEGMENT REPORTING (Tables)
12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Summary of Segment Financial Data ummarize segment financial information, which in total reconciles to the same data for New Residential as a whole:
Servicing and Origination Residential Securities and Loans
Origination Servicing MSR Related Investments
Eliminations(A)
Total Servicing and Origination Real Estate
Securities
Residential Mortgage Loans Consumer
Loans
Corporate Total
Year Ended December 31, 2020
Interest income $ 63,160  $ 8,288  $ 374,698  $ —  $ 446,146  $ 355,916  $ 175,963  $ 124,512  $ —  $ 1,102,537 
Servicing revenue, net (11,519) 417,438  (743,987) (216,973) (555,041) —  —  —  —  (555,041)
Gain on originated mortgage loans, held-for-sale, net 1,289,584  1,722  69,714  39,532  1,400,552  (13,398) 11,938  —  —  1,399,092 
Total revenues 1,341,225  427,448  (299,575) (177,441) 1,291,657  342,518  187,901  124,512  —  1,946,588 
Interest expense 45,676  495  233,619  —  279,790  157,371  87,958  22,587  36,763  584,469 
G&A and other 494,398  294,594  446,469  (216,973) 1,018,488  7,639  62,900  10,301  109,893  1,209,221 
Total operating expenses 540,074  295,089  680,088  (216,973) 1,298,278  165,010  150,858  32,888  146,656  1,793,690 
Change in fair value of investments —  —  (298,126) —  (298,126) (25,012) (107,604) (6,384) —  (437,126)
Gain (loss) on settlement of investments, net —  —  (16,713) —  (16,713) (828,525) (19,655) (4,183) (61,055) (930,131)
Other income (loss), net 433  499  37,453  —  38,385  2,333  (3,220) 814  (41,109) (2,797)
Total other income (loss) 433  499  (277,386) —  (276,454) (851,204) (130,479) (9,753) (102,164) (1,370,054)
Impairment —  —  141  —  141  13,404  110,067  —  —  123,612 
Income (Loss) Before Income Taxes 801,584  132,858  (1,257,190) 39,532  (283,216) (687,100) (203,503) 81,871  (248,820) (1,340,768)
Income tax (benefit) expense 211,359  32,810  (162,817) —  81,352  —  (65,215) 779  —  16,916 
Net Income (Loss) $ 590,225  $ 100,048  $ (1,094,373) $ 39,532  $ (364,568) $ (687,100) $ (138,288) $ 81,092  $ (248,820) $ (1,357,684)
Noncontrolling interests in income (loss) of consolidated subsidiaries 15,625  —  891  —  16,516  —  —  36,158  —  $ 52,674 
Dividends on preferred stock —  —  —  —  —  —  —  —  54,295  54,295 
Net income (loss) attributable to common stockholders $ 574,600  $ 100,048  $ (1,095,264) $ 39,532  $ (381,084) $ (687,100) $ (138,288) $ 44,934  $ (303,115) $ (1,464,653)
Servicing and Origination Residential Securities
and Loans
Origination Servicing MSR Related Investments
Eliminations(A)
Total Servicing and Origination Real Estate
Securities
Residential Mortgage Loans Consumer
Loans
Corporate Total
December 31, 2020
Investments $ 2,947,113  $ —  $ 5,534,752  $ —  $ 8,481,865  $ 14,244,558  $ 3,029,339  $ 685,575  $ —  $ 26,441,337 
Cash and cash equivalents 123,124  59,798  412,578  —  595,500  222,372  7,472  3,182  116,328  944,854 
Restricted cash 14,826  49,913  28,128  —  92,867  15,652  96  27,004  —  135,619 
Other assets 551,910  206,646  4,538,045  —  5,296,601  232,837  86,762  38,465  46,171  5,700,836 
Goodwill 11,836  12,540  5,092  —  29,468  —  —  —  —  29,468 
Total assets $ 3,648,809  $ 328,897  $ 10,518,595  $ —  $ 14,496,301  $ 14,715,419  $ 3,123,669  $ 754,226  $ 162,499  $ 33,252,114 
Debt $ 2,700,962  $ 3,285  $ 5,998,711  $ —  $ 8,702,958  $ 13,473,239  $ 2,386,919  $ 628,759  $ 541,516  $ 25,733,391 
Other liabilities 298,106  89,713  1,520,959  —  1,908,778  20,863  28,577  622  130,199  2,089,039 
Total liabilities 2,999,068  92,998  7,519,670  —  10,611,736  13,494,102  2,415,496  629,381  671,715  27,822,430 
Total equity 649,741  235,899  2,998,925  —  3,884,565  1,221,317  708,173  124,845  (509,216) 5,429,684 
Noncontrolling interests in equity of consolidated subsidiaries 19,402  —  43,882  —  63,284  —  —  45,384  —  108,668 
Total New Residential stockholders’ equity $ 630,339  $ 235,899  $ 2,955,043  $ —  $ 3,821,281  $ 1,221,317  $ 708,173  $ 79,461  $ (509,216) $ 5,321,016 
Investments in equity method investees $ —  $ —  $ 129,873  $ —  $ 129,873  $ —  $ —  $ —  $ —  $ 129,873 
Servicing and Origination Residential Securities
and Loans
Origination Servicing MSR Related Investments
Eliminations(A)
Total Servicing and Origination Real Estate
Securities
Residential Mortgage Loans Consumer
Loans
Corporate Total
Year Ended December 31, 2019
Interest income $ 42,166  $ 34,013  $ 530,225  $ —  $ 606,404  $ 744,145  $ 249,673  $ 165,877  $ 31  $ 1,766,130 
Servicing revenue, net (1,605) 209,982  225,361  (48,579) 385,159  —  —  —  —  385,159 
Gain on originated mortgage loans, held-for-sale, net 390,981  1,029  43,914  (51,360) 384,564  —  75,543  —  —  460,107 
Total revenues 431,542  245,024  799,500  (99,939) 1,376,127  744,145  325,216  165,877  31  2,611,396 
Interest expense 41,949  1,043  246,294  —  289,286  453,609  158,298  32,558  —  933,751 
G&A and other 252,458  170,516  310,715  (48,579) 685,110  3,160  52,745  22,540  189,780  953,335 
Total operating expenses 294,407  171,559  557,009  (48,579) 974,396  456,769  211,043  55,098  189,780  1,887,086 
Change in fair value of investments —  —  (182,440) —  (182,440) (54,042) (70,914) —  —  (307,396)
Gain (loss) on settlement of investments, net —  —  8,030  —  8,030  74,927  153,449  (8,425) —  227,981 
Other income (loss), net 9,340  5,343  30,760  —  45,443  44  (7,150) (1,574) 1,618  38,381 
Total other income (loss) 9,340  5,343  (143,650) —  (128,967) 20,929  75,385  (9,999) 1,618  (41,034)
Impairment —  —  —  —  —  25,174  (20,607) 31,010  —  35,577 
Income (Loss) Before Income Taxes 146,475  78,808  98,841  (51,360) 272,764  283,131  210,165  69,770  (188,131) 647,699 
Income tax (benefit) expense(C)
39,768  21,396  9,565  —  70,729  —  (28,461) (502) —  41,766 
Net Income (Loss) $ 106,707  $ 57,412  $ 89,276  $ (51,360) $ 202,035  $ 283,131  $ 238,626  $ 70,272  $ (188,131) $ 605,933 
Noncontrolling interests in income (loss) of consolidated subsidiaries 6,231  —  4,255  —  10,486  —  —  32,151  —  42,637 
Dividends on Preferred Stock —  —  —  —  —  —  —  —  13,281  13,281 
Net income (loss) attributable to common stockholders $ 100,476  $ 57,412  $ 85,021  $ (51,360) $ 191,549  $ 283,131  $ 238,626  $ 38,121  $ (201,412) $ 550,015 
Servicing and Origination Residential Securities
and Loans
Origination Servicing MSR Related Investments
Eliminations(A)
Total Servicing and Origination Real Estate
Securities
Residential Mortgage Loans Consumer
Loans
Corporate Total
December 31, 2019
Investments $ 1,414,528  $ —  $ 6,773,353  $ —  $ 8,187,881  $ 19,477,728  $ 5,843,983  $ 827,545  $ —  $ 34,337,137 
Cash and cash equivalents 77,237  32,225  318,714  —  428,176  87,359  1,180  6,514  5,508  528,737 
Restricted cash 6,730  15,769  107,328  —  129,827  —  —  32,370  —  162,197 
Other assets 250,709  204,723  3,420,122  —  3,875,554  5,590,456  174,940  78,740  85,956  9,805,646 
Goodwill 11,836  12,809  5,092  —  29,737  —  —  —  —  29,737 
Total assets $ 1,761,040  $ 265,526  $ 10,624,609  $ —  $ 12,651,175  $ 25,155,543  $ 6,020,103  $ 945,169  $ 91,464  $ 44,863,454 
Debt $ 1,304,621  $ 33,412  $ 6,646,159  $ —  $ 7,984,192  $ 22,151,110  $ 4,676,849  $ 824,222  $ —  $ 35,636,373 
Other liabilities 117,328  51,264  451,629  —  620,221  980,415  55,121  16,795  318,269  1,990,821 
Total liabilities 1,421,949  84,676  7,097,788  —  8,604,413  23,131,525  4,731,970  841,017  318,269  37,627,194 
Total equity 339,091  180,850  3,526,821  —  4,046,762  2,024,018  1,288,133  104,152  (226,805) 7,236,260 
Noncontrolling interests in equity of consolidated subsidiaries 11,354  —  45,025  —  56,379  —  —  22,171  —  78,550 
Total New Residential stockholders’ equity $ 327,737  $ 180,850  $ 3,481,796  $ —  $ 3,990,383  $ 2,024,018  $ 1,288,133  $ 81,981  $ (226,805) $ 7,157,710 
Investments in equity method investees $ —  $ —  $ 165,848  $ —  $ 165,848  $ —  $ —  $ —  $ —  $ 165,848 
Servicing and Origination(B)
Residential Securities
and Loans
Origination Servicing MSR Related Investments
Eliminations(A)
Total Servicing and Origination Real Estate
Securities
Residential Mortgage Loans Consumer
Loans
Corporate Total
Year Ended December 31, 2018
Interest income $ 12,430  $ 8,148  $ 703,387  $ —  $ 723,965  $ 573,539  $ 158,892  $ 206,321  $ 1,506  $ 1,664,223 
Servicing revenue, net (450) 75,388  463,842  (10,185) 528,595  —  —  —  —  528,595 
Gain on originated mortgage loans, held-for-sale, net 98,987  —  (4,511) (17,168) 77,308  —  8,757  —  —  86,065 
Total revenues 110,967  83,536  1,162,718  (27,353) 1,329,868  573,539  167,649  206,321  1,506  2,278,883 
Interest expense 10,018  264  232,063  —  242,345  240,615  80,910  42,563  —  606,433 
G&A and other 95,551  64,633  200,866  (10,185) 350,865  1,554  32,424  35,230  179,307  599,380 
Total operating expenses 105,569  64,897  432,929  (10,185) 593,210  242,169  113,334  77,793  179,307  1,205,813 
Change in fair value of investments —  —  (108,081) —  (108,081) (97,951) 69,820  —  —  (136,212)
Gain (loss) on settlement of investments, net —  —  121,814  —  121,814  25,497  (51,757) —  510  96,064 
Other income (loss), net 2,067  —  (1,461) —  606  (472) (10,364) 9,965  (10,916) (11,181)
Total other income (loss) 2,067  —  12,272  —  14,339  (72,926) 7,699  9,965  (10,406) (51,329)
Impairment —  —  —  —  —  30,017  12,061  48,563  —  90,641 
Income (Loss) Before Income Taxes 7,465  18,639  742,061  (17,168) 750,997  228,427  49,953  89,930  (188,207) 931,100 
Income tax (benefit) expense(C)
1,916  4,785  (15,065) —  (8,364) —  (65,279) 212  —  (73,431)
Net Income (Loss) $ 5,549  $ 13,854  $ 757,126  $ (17,168) $ 759,361  $ 228,427  $ 115,232  $ 89,718  $ (188,207) $ 1,004,531 
Noncontrolling interests in income (loss) of consolidated subsidiaries 1,599  —  1,978  —  3,577  —  —  36,987  —  40,564 
Dividends on Preferred Stock —  —  —  —  —  —  —  —  —  — 
Net income (loss) attributable to common stockholders $ 3,950  $ 13,854  $ 755,148  $ (17,168) $ 755,784  $ 228,427  $ 115,232  $ 52,731  $ (188,207) $ 963,967 
(A)Elimination of intercompany transactions related primarily to servicing fees, loan sales, and MSR recaptures.
(B)Includes results from July 3, 2018, the date of Shellpoint Acquisition (Note 3).
(C)In 2020, New Residential revised its methodology of allocating tax expense within the Servicing and Origination segments. Specifically, taxes are now allocated based on intercompany agreements rather than based on a more general pro rata approach, which better reflects the operating performance of each respective segment. The revised methodology has been applied consistently for all periods presented.