UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2018
 
or
 
¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ________________to________________
 
Commission File Number: 001-35777
New Residential Investment Corp.
(Exact name of registrant as specified in its charter)
Delaware
 
45-3449660
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
1345 Avenue of the Americas, New York, NY
 
10105
(Address of principal executive offices)
 
(Zip Code)
 
(212) 798-3150
(Registrant’s telephone number, including area code)
 
(Former name, former address and former fiscal year, if changed since last report) 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x    No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x    No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer x  Accelerated filer ¨ Non-accelerated filer ¨ (Do not check if a smaller reporting company) 
Smaller reporting company ¨     Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨    No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date.
Common stock, $0.01 par value per share: 339,862,769 shares outstanding as of July 20, 2018.




CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
 
This report contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. Such forward-looking statements relate to, among other things, the operating performance of our investments, the stability of our earnings, our financing needs and the size and attractiveness of market opportunities. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue” or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations, cash flows or financial condition or state other forward-looking information. Our ability to predict results or the actual outcome of future plans or strategies is inherently uncertain. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to:
 
reductions in the value of, or cash flows received from, our investments;
the quality and size of the investment pipeline and our ability to take advantage of investment opportunities at attractive risk-adjusted prices;
the relationship between yields on assets which are paid off and yields on assets in which such monies can be reinvested;
our ability to deploy capital accretively and the timing of such deployment;
our counterparty concentration and default risks in Nationstar, Ocwen, OneMain, Ditech, PHH and other third parties;
events, conditions or actions that might occur at Nationstar, Ocwen, OneMain, Ditech, PHH and other third parties, as well as the continued effect of prior events;
a lack of liquidity surrounding our investments, which could impede our ability to vary our portfolio in an appropriate manner;
the impact that risks associated with subprime mortgage loans and consumer loans, as well as deficiencies in servicing and foreclosure practices, may have on the value of our MSRs, Excess MSRs, Servicer Advance Investments, RMBS, residential mortgage loans and consumer loan portfolios;
the risks related to the recently consummated acquisition of Shellpoint Partners LLC and ownership of entities that perform origination and servicing operations;
the risks that default and recovery rates on our MSRs, Excess MSRs, Servicer Advance Investments, RMBS, residential mortgage loans and consumer loans deteriorate compared to our underwriting estimates;
changes in prepayment rates on the loans underlying certain of our assets, including, but not limited to, our MSRs or Excess MSRs;
the risk that projected recapture rates on the loan pools underlying our MSRs or Excess MSRs are not achieved;
servicer advances may not be recoverable or may take longer to recover than we expect, which could cause us to fail to achieve our targeted return on our Servicer Advance Investments or MSRs;
impairments in the value of the collateral underlying our investments and the relation of any such impairments to our judgments as to whether changes in the market value of our securities or loans are temporary or not and whether circumstances bearing on the value of such assets warrant changes in carrying values;
the relative spreads between the yield on the assets in which we invest and the cost of financing;
adverse changes in the financing markets we access affecting our ability to finance our investments on attractive terms, or at all;
changing risk assessments by lenders that potentially lead to increased margin calls, not extending our repurchase agreements or other financings in accordance with their current terms or not entering into new financings with us;
changes in interest rates and/or credit spreads, as well as the success of any hedging strategy we may undertake in relation to such changes;
the availability and terms of capital for future investments;




changes in economic conditions generally and the real estate and bond markets specifically;
competition within the finance and real estate industries;
the legislative/regulatory environment, including, but not limited to, the impact of the Dodd-Frank Act, U.S. government programs intended to grow the economy, future changes to tax laws, the federal conservatorship of Fannie Mae and Freddie Mac and legislation that permits modification of the terms of residential mortgage loans;
the risk that Government Sponsored Enterprises or other regulatory initiatives or actions may adversely affect returns from investments in MSRs and Excess MSRs;
our ability to maintain our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes and the potentially onerous consequences that any failure to maintain such qualification would have on our business;
our ability to maintain our exclusion from registration under the Investment Company Act of 1940 (the “1940 Act”) and the fact that maintaining such exclusion imposes limits on our operations;
the risks related to Home Loan Servicing Solutions (“HLSS”) liabilities that we have assumed;
the impact of current or future legal proceedings and regulatory investigations and inquiries;
the impact of any material transactions with FIG LLC (the “Manager”) or one of its affiliates, including the impact of any actual, potential or perceived conflicts of interest; and
effects of the completed merger of Fortress Investment Group LLC with affiliates of SoftBank Group Corp.

We also direct readers to other risks and uncertainties referenced in this report, including those set forth under “Risk Factors.” We caution that you should not place undue reliance on any of our forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict those events or how they may affect us. Except as required by law, we are under no obligation (and expressly disclaim any obligation) to update or alter any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future events or otherwise.
 




SPECIAL NOTE REGARDING EXHIBITS
 
In reviewing the agreements included as exhibits to this Quarterly Report on Form 10-Q, please remember they are included to provide you with information regarding their terms and are not intended to provide any other factual or disclosure information about New Residential Investment Corp. (the “Company,” “New Residential” or “we,” “our” and “us”) or the other parties to the agreements. The agreements contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:
 
should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements proved to be inaccurate;
have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;
may apply standards of materiality in a way that is different from what may be viewed as material to you or other investors; and
were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. Additional information about the Company may be found elsewhere in this Quarterly Report on Form 10-Q and the Company’s other public filings, which are available without charge through the SEC’s website at http://www.sec.gov.
 
The Company acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this report not misleading.
 




NEW RESIDENTIAL INVESTMENT CORP.
FORM 10-Q
 
INDEX
 
PAGE
Part I. Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




 
 
 
 
 
 
 
 
 
 
 
 
 
 
Part II. Other Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
 
June 30, 2018
 
December 31, 2017
 
(Unaudited)
 
Assets
 
 
 
Investments in:
 
 
 
Excess mortgage servicing rights, at fair value
$
495,299

 
$
1,173,713

Excess mortgage servicing rights, equity method investees, at fair value
159,034

 
171,765

Mortgage servicing rights, at fair value
2,232,126

 
1,735,504

Mortgage servicing rights financing receivables, at fair value
1,904,919

 
598,728

Servicer advance investments, at fair value(A)
843,438

 
4,027,379

Real estate and other securities, available-for-sale
8,084,927

 
8,071,140

Residential mortgage loans, held-for-investment
690,771

 
691,155

Residential mortgage loans, held-for-sale
2,021,319

 
1,725,534

Real estate owned
125,701

 
128,295

Consumer loans, held-for-investment(A)
1,212,917

 
1,374,263

Consumer loans, equity method investees
57,820

 
51,412

Cash and cash equivalents(A)
193,236

 
295,798

Restricted cash
161,441

 
150,252

Servicer advances receivable
3,215,361

 
675,593

Trades receivable
1,076,626

 
1,030,850

Other assets
468,796

 
312,181

 
$
22,943,731

 
$
22,213,562

 
 
 
 
Liabilities and Equity
 
 
 
 
 
 
 
Liabilities
 
 
 
  Repurchase agreements
$
8,757,134

 
$
8,662,139

  Notes and bonds payable(A)
6,707,776

 
7,084,391

  Trades payable
1,168,865

 
1,169,896

  Due to affiliates
48,648

 
88,961

  Dividends payable
169,931

 
153,681

  Deferred tax liability, net
8,403

 
19,218

  Accrued expenses and other liabilities
284,050

 
239,114

 
17,144,807

 
17,417,400

 
 
 
 
Commitments and Contingencies


 


 
 
 
 
Equity
 
 
 
Common Stock, $0.01 par value, 2,000,000,000 shares authorized, 339,862,769 and 307,361,309 issued and outstanding at June 30, 2018 and December 31, 2017, respectively
3,399

 
3,074

  Additional paid-in capital
4,246,135

 
3,763,188

  Retained earnings
1,000,488

 
559,476

  Accumulated other comprehensive income (loss)
458,771

 
364,467

  Total New Residential stockholders’ equity
5,708,793

 
4,690,205

  Noncontrolling interests in equity of consolidated subsidiaries
90,131

 
105,957

    Total Equity
5,798,924

 
4,796,162

 
$
22,943,731

 
$
22,213,562


1



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS, CONTINUED
(dollars in thousands)

(A)
New Residential’s Condensed Consolidated Balance Sheets include the assets and liabilities of certain consolidated VIEs, Advance Purchaser LLC (the “Buyer”) (Note 6) and the Consumer Loan SPVs (Note 9), which primarily hold investments in Servicer Advance Investments and consumer loans, respectively, financed with notes and bonds payable. The balance sheets of the Buyer and the Consumer Loan SPVs are included in Notes 6 and 9, respectively. The creditors of the Buyer and the Consumer Loan SPVs do not have recourse to the general credit of New Residential and the assets of the Buyer and the Consumer Loan SPVs are not directly available to satisfy New Residential’s obligations. See Note 8 regarding deconsolidation of the RPL Borrowers.

See notes to condensed consolidated financial statements.

2



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands, except per share data)
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Interest income
$
403,805

 
$
471,952

 
$
787,378

 
$
764,490

Interest expense
133,916

 
115,157

 
258,303

 
213,386

Net Interest Income
269,889

 
356,795

 
529,075

 
551,104

 
 
 
 
 
 
 
 
Impairment
 
 
 
 
 
 
 
Other-than-temporary impairment (OTTI) on securities
12,631

 
5,115

 
19,301

 
7,227

Valuation and loss provision (reversal) on loans and real estate owned (REO)
3,658

 
20,771

 
22,665

 
38,681

 
16,289

 
25,886

 
41,966

 
45,908

 
 
 
 
 
 
 
 
  Net interest income after impairment
253,600

 
330,909

 
487,109

 
505,196

Servicing revenue, net
146,193

 
170,851

 
363,429

 
211,453

Other Income
 
 
 
 
 
 
 
Change in fair value of investments in excess mortgage servicing rights
(5,276
)
 
(19,180
)
 
(50,967
)
 
(18,359
)
Change in fair value of investments in excess mortgage servicing rights, equity method investees
1,705

 
4,246

 
2,228

 
4,002

Change in fair value of investments in mortgage servicing rights financing receivables
(119,103
)
 
5,596

 
151,973

 
5,596

Change in fair value of servicer advance investments
(1,752
)
 
56,969

 
(81,228
)
 
59,528

Gain (loss) on settlement of investments, net
14,655

 
13,371

 
117,957

 
(303
)
Earnings from investments in consumer loans, equity method investees
2,982

 
5,880

 
7,788

 
5,880

Other income (loss), net
9,977

 
(9,035
)
 
19,961

 
(2,191
)
 
(96,812
)
 
57,847

 
167,712

 
54,153

 
 
 
 
 
 
 
 
Operating Expenses
 
 
 
 
 
 
 
General and administrative expenses
20,575

 
16,042

 
40,582

 
27,869

Management fee to affiliate
15,453

 
14,186

 
30,563

 
27,260

Incentive compensation to affiliate
26,732

 
40,172

 
41,321

 
52,632

Loan servicing expense
11,035

 
13,002

 
22,549

 
26,378

Subservicing expense
45,958

 
55,958

 
92,555

 
73,662

 
119,753

 
139,360

 
227,570

 
207,801

 
 
 
 
 
 
 
 
Income Before Income Taxes
183,228

 
420,247

 
790,680

 
563,001

Income tax expense (benefit)
(2,608
)
 
82,844

 
(9,520
)
 
88,440

Net Income
$
185,836

 
$
337,403

 
$
800,200

 
$
474,561

Noncontrolling Interests in Income of Consolidated Subsidiaries
$
11,078

 
$
15,671

 
$
21,189

 
$
31,451

Net Income Attributable to Common Stockholders
$
174,758

 
$
321,732

 
$
779,011

 
$
443,110

 
 
 
 
 
 
 
 
Net Income Per Share of Common Stock
 
 
 
 
 
 
 
  Basic
$
0.52

 
$
1.05

 
$
2.34

 
$
1.49

  Diluted
$
0.51

 
$
1.04

 
$
2.32

 
$
1.48

 
 
 
 
 
 
 
 
Weighted Average Number of Shares of Common Stock Outstanding
 
 
 
 
 
 
 
  Basic
336,311,253

 
307,344,874

 
333,364,426

 
297,029,904

  Diluted
339,538,503

 
309,392,512

 
336,476,481

 
298,875,279

 
 
 
 
 
 
 
 
Dividends Declared per Share of Common Stock
$
0.50

 
$
0.50

 
$
1.00

 
$
0.98

 
See notes to condensed consolidated financial statements.


3



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(dollars in thousands)
 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
Comprehensive income (loss), net of tax
 
 
 
 
 
 
 
Net income
$
185,836

 
$
337,403

 
$
800,200

 
$
474,561

Other comprehensive income (loss)
 
 
 
 
 
 
 
Net unrealized gain (loss) on securities
18,069

 
170,322

 
37,045

 
201,960

Reclassification of net realized (gain) loss on securities into earnings
21,362

 
(16,142
)
 
57,259

 
(15,023
)
 
39,431

 
154,180

 
94,304

 
186,937

Total comprehensive income
$
225,267

 
$
491,583

 
$
894,504

 
$
661,498

Comprehensive income attributable to noncontrolling interests
$
11,078

 
$
15,671

 
$
21,189

 
$
31,451

Comprehensive income attributable to common stockholders
$
214,189

 
$
475,912

 
$
873,315

 
$
630,047

 
See notes to condensed consolidated financial statements.


4



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED) 
FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017
(dollars in thousands)
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Additional Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income
 
Total New Residential Stockholders’ Equity
 
Noncontrolling
Interests in Equity of Consolidated Subsidiaries
 
Total Equity
Equity - December 31, 2017
307,361,309

 
$
3,074

 
$
3,763,188

 
$
559,476

 
$
364,467

 
$
4,690,205

 
$
105,957

 
$
4,796,162

Dividends declared

 

 

 
(337,999
)
 

 
(337,999
)
 

 
(337,999
)
Capital contributions

 

 

 

 

 

 

 

Capital distributions

 

 

 

 

 

 
(37,015
)
 
(37,015
)
Issuance of common stock
28,750,000

 
288

 
481,965

 

 

 
482,253

 

 
482,253

Option exercise
3,694,228

 
36

 
(36
)
 

 

 

 

 

Director share grants
57,232

 
1

 
1,018

 

 

 
1,019

 

 
1,019

Comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)

 

 

 
779,011

 

 
779,011

 
21,189

 
800,200

Net unrealized gain (loss) on securities

 

 

 

 
37,045

 
37,045

 

 
37,045

Reclassification of net realized (gain) loss on securities into earnings

 

 

 

 
57,259

 
57,259

 

 
57,259

Total comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
873,315

 
21,189

 
894,504

Equity - June 30, 2018
339,862,769

 
$
3,399

 
$
4,246,135

 
$
1,000,488

 
$
458,771

 
$
5,708,793

 
$
90,131


$
5,798,924

 

5



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED), CONTINUED
FOR THE SIX MONTHS ENDED JUNE 30, 2018 AND 2017
(dollars in thousands)
 
 
Common Stock
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares
 
Amount
 
Additional Paid-in Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Income
 
Total New Residential Stockholders’ Equity
 
Noncontrolling
Interests in Equity of Consolidated Subsidiaries
 
Total Equity
Equity - December 31, 2016
250,773,117

 
$
2,507

 
$
2,920,730

 
$
210,500

 
$
126,363

 
$
3,260,100

 
$
208,077

 
$
3,468,177

Dividends declared

 

 

 
(301,196
)
 

 
(301,196
)
 

 
(301,196
)
Capital contributions

 

 

 

 

 

 

 

Capital distributions

 

 

 

 

 

 
(45,374
)
 
(45,374
)
Issuance of common stock
56,545,787

 
566

 
833,963

 

 

 
834,529

 

 
834,529

Other dilution

 

 
625

 

 

 
625

 

 
625

Director share grants
42,405

 
1

 
698

 

 

 
699

 

 
699

Comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)

 

 

 
443,110

 

 
443,110

 
31,451

 
474,561

Net unrealized gain (loss) on securities

 

 

 

 
201,960

 
201,960

 

 
201,960

Reclassification of net realized (gain) loss on securities into earnings

 

 

 

 
(15,023
)
 
(15,023
)
 

 
(15,023
)
Total comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
630,047

 
31,451

 
661,498

Equity - June 30, 2017
307,361,309

 
$
3,074

 
$
3,756,016

 
$
352,414

 
$
313,300

 
$
4,424,804

 
$
194,154

 
$
4,618,958


See notes to condensed consolidated financial statements.


6


NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(dollars in thousands)
 
Six Months Ended  
 June 30,
 
2018
 
2017
Cash Flows From Operating Activities
 
 
 
Net income
$
800,200

 
$
474,561

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
Change in fair value of investments in excess mortgage servicing rights
50,967

 
18,359

Change in fair value of investments in excess mortgage servicing rights, equity method investees
(2,228
)
 
(4,002
)
Change in fair value of investments in mortgage servicing rights financing receivables
(151,973
)
 
(5,596
)
Change in fair value of servicer advance investments
81,228

 
(59,528
)
(Gain) / loss on settlement of investments (net)
(117,957
)
 
303

Earnings from investments in consumer loans, equity method investees
(7,788
)
 
(5,880
)
Unrealized (gain) / loss on derivative instruments
(3,686
)
 
3,684

Unrealized (gain) / loss on other ABS
(4,804
)
 
(151
)
(Gain) / loss on transfer of loans to REO
(10,490
)
 
(11,612
)
(Gain) / loss on transfer of loans to other assets
120

 
(293
)
(Gain) / loss on Excess MSRs
(4,270
)
 
(1,342
)
(Gain) / loss on Ocwen common stock
(4,800
)
 

Accretion and other amortization
(359,105
)
 
(545,386
)
Other-than-temporary impairment
19,301

 
7,227

Valuation and loss provision on loans and real estate owned
22,665

 
38,681

Non-cash portions of servicing revenue, net
(61,859
)
 
1,618

Non-cash directors’ compensation
1,019

 
698

Deferred tax provision
(10,815
)
 
85,606

Changes in:
 
 
 
Servicer advances receivable
425,215

 
(7,780
)
Other assets
(79,511
)
 
(25,621
)
Due to affiliates
(40,313
)
 
17,465

Accrued expenses and other liabilities
39,032

 
12,985

Other operating cash flows:
 
 
 
Interest received from excess mortgage servicing rights
21,399

 
32,174

Interest received from servicer advance investments
17,826

 
96,639

Interest received from Non-Agency RMBS
98,268

 
118,339

Interest received from residential mortgage loans, held-for-investment
4,350

 
3,097

Interest received from PCD consumer loans, held-for-investment
17,858

 
28,262

Distributions of earnings from excess mortgage servicing rights, equity method investees
6,530

 
7,433

Distributions of earnings from consumer loan equity method investees
3,263

 
1,229

Purchases of residential mortgage loans, held-for-sale
(2,402,258
)
 
(3,193,841
)
Proceeds from sales of purchased residential mortgage loans, held-for-sale
1,776,239

 
2,523,335

Principal repayments from purchased residential mortgage loans, held-for-sale
73,153

 
45,867

Net cash provided by (used in) operating activities
196,776

 
(343,470
)

Continued on next page.

7


NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
(dollars in thousands)
 
Six Months Ended  
 June 30,
 
2018
 
2017
Cash Flows From Investing Activities
 
 
 
Purchase of servicer advance investments
(1,313,291
)
 
(6,341,861
)
Purchase of MSRs, MSR financing receivables and servicer advances receivable
(628,841
)
 
(1,177,658
)
Purchase of Agency RMBS
(2,210,812
)
 
(4,561,503
)
Purchase of Non-Agency RMBS
(947,955
)
 
(1,826,031
)
Purchase of residential mortgage loans
(85,778
)
 
(586,154
)
Purchase of derivatives

 

Purchase of real estate owned and other assets
(23,948
)
 
(19,168
)
Purchase of investment in consumer loans, equity method investees
(205,641
)
 
(192,467
)
Draws on revolving consumer loans
(20,636
)
 
(27,240
)
Payments for settlement of derivatives
(40,980
)
 
(98,399
)
Return of investments in excess mortgage servicing rights
31,097

 
95,144

Return of investments in excess mortgage servicing rights, equity method investees
8,429

 
9,747

Return of investments in consumer loans, equity method investees
191,145

 
136,021

Principal repayments from servicer advance investments
1,326,252

 
7,491,101

Principal repayments from Agency RMBS
43,403

 
50,412

Principal repayments from Non-Agency RMBS
374,084

 
265,767

Principal repayments from residential mortgage loans
69,133

 
21,277

Proceeds from sale of residential mortgage loans
21,155

 

Principal repayments from consumer loans
152,512

 
212,883

Proceeds from sale of Agency RMBS
2,956,351

 
3,534,480

Proceeds from sale of Non-Agency RMBS
66,198

 
154,498

Proceeds from settlement of derivatives
110,467

 
44,764

Proceeds from sale of real estate owned
71,994

 
38,528

Net cash provided by (used in) investing activities
(55,662
)
 
(2,775,859
)

Continued on next page.

8


NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED), CONTINUED
(dollars in thousands)
 
 
Six Months Ended  
 June 30,
 
2018
 
2017
Cash Flows From Financing Activities
 
 
 
Repayments of repurchase agreements
(33,450,992
)
 
(20,745,543
)
Margin deposits under repurchase agreements and derivatives
(670,912
)
 
(550,012
)
Repayments of notes and bonds payable
(5,053,552
)
 
(4,947,215
)
Payment of deferred financing fees
(10,614
)
 
(5,325
)
Common stock dividends paid
(321,749
)
 
(262,874
)
Borrowings under repurchase agreements
33,542,060

 
23,815,777

Return of margin deposits under repurchase agreements and derivatives
604,930

 
547,290

Borrowings under notes and bonds payable
4,683,103

 
4,741,739

Issuance of common stock
482,696

 
835,465

Costs related to issuance of common stock
(442
)
 
(936
)
Noncontrolling interest in equity of consolidated subsidiaries - contributions

 

Noncontrolling interest in equity of consolidated subsidiaries - distributions
(37,015
)
 
(45,374
)
Purchase of noncontrolling interests in the Buyer

 

   Net cash provided by (used in) financing activities
(232,487
)
 
3,382,992

 
 
 
 
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash
(91,373
)
 
263,663

 
 
 
 
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period
446,050

 
453,697

 
 
 
 
Cash, Cash Equivalents, and Restricted Cash, End of Period
$
354,677

 
$
717,360

 
 
 
 
Supplemental Disclosure of Cash Flow Information
 
 
 
Cash paid during the period for interest
$
248,990

 
$
198,553

Cash paid during the period for income taxes
3,176

 
4,765

 
 
 
 
Supplemental Schedule of Non-Cash Investing and Financing Activities
 
 
 
Dividends declared but not paid
$
169,931

 
$
153,678

Purchase of Agency and Non-Agency RMBS, settled after quarter end
1,168,865

 
1,814,344

Sale of investments, primarily Agency RMBS, settled after quarter end
1,076,626

 
2,677,542

Transfer from residential mortgage loans to real estate owned and other assets
56,789

 
71,747

Non-cash distributions from LoanCo
12,613

 
16,062

MSR purchase price holdback
1,210

 
71,265

Real estate securities retained from loan securitizations
224,359

 
284,874

Ocwen transaction (Note 5) - excess mortgage servicing rights
638,567

 

Ocwen transaction (Note 5) - servicer advance investments
3,175,891

 

Ocwen transaction (Note 5) - mortgage servicing rights financing receivables
1,017,993

 

 
See notes to condensed consolidated financial statements.

9



NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2018
(dollars in tables in thousands, except share data) 
 
1.
ORGANIZATION AND BASIS OF PRESENTATION
 
New Residential Investment Corp. (together with its subsidiaries, “New Residential”) is a Delaware corporation that was formed as a limited liability company in September 2011 for the purpose of making real estate related investments and commenced operations on December 8, 2011. On December 20, 2012, New Residential was converted to a corporation. Drive Shack Inc. (“Drive Shack”), formerly Newcastle Investment Corp., was the sole stockholder of New Residential until the spin-off, which was completed on May 15, 2013. Following the spin-off, New Residential is an independent publicly traded real estate investment trust (“REIT”) primarily focused on investing in residential mortgage related assets. New Residential is listed on the New York Stock Exchange (“NYSE”) under the symbol “NRZ.”
 
New Residential has elected and intends to qualify to be taxed as a REIT for U.S. federal income tax purposes. As such, New Residential will generally not be subject to U.S. federal corporate income tax on that portion of its net income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements. See Note 17 regarding New Residential’s taxable REIT subsidiaries.
 
New Residential has entered into a management agreement (the “Management Agreement”) with FIG LLC (the “Manager”), an affiliate of Fortress Investment Group LLC (“Fortress”), pursuant to which the Manager provides a management team and other professionals who are responsible for implementing New Residential’s business strategy, subject to the supervision of New Residential’s board of directors. For its services, the Manager is entitled to management fees and incentive compensation, both defined in, and in accordance with the terms of, the Management Agreement. The Manager also managed Drive Shack and manages investment funds that until June 2018, owned a majority of the outstanding common stock of OneMain Holdings, Inc. (formerly Springleaf Holdings, Inc.) (together with its subsidiaries, “OneMain”), former managing member of the Consumer Loan Companies (Note 9). The Manager also manages investment funds that indirectly own approximately 40.5% of the outstanding interests in Nationstar Mortgage LLC (“Nationstar”), a leading residential mortgage servicer.

As of June 30, 2018, New Residential conducted its business through the following segments: (i) investments in excess mortgage servicing rights (“Excess MSRs”), (ii) investments in mortgage servicing rights (“MSRs”), (iii) Servicer Advance Investments (including the basic fee component of the related MSRs), (iv) investments in real estate securities, (v) investments in residential mortgage loans, (vi) investments in consumer loans and (vii) corporate.
 
Approximately 0.5 million shares of New Residential’s common stock were held by Fortress, through its affiliates, as of June 30, 2018. In addition, Fortress, through its affiliates, held options relating to approximately 4.0 million shares of New Residential’s common stock as of June 30, 2018.
 
Interim Financial Statements

The accompanying condensed consolidated financial statements and related notes of New Residential have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of New Residential’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with New Residential’s consolidated financial statements for the year ended December 31, 2017 and notes thereto included in New Residential’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). Capitalized terms used herein, and not otherwise defined, are defined in New Residential’s consolidated financial statements for the year ended December 31, 2017. Certain prior period amounts have been reclassified to conform to the current period’s presentation.
 
Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenues from Contracts with Customers (Topic 606). The standard’s core principle is that a company will recognize revenue

10

NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2018
(dollars in tables in thousands, except share data) 
 

when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In effect, companies are required to exercise further judgment and make more estimates prospectively. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. ASU No. 2014-09 was effective for New Residential in the first quarter of 2018. New Residential has evaluated the new guidance and determined that interest income, gains and losses on financial instruments and income from servicing residential mortgage loans are outside the scope of ASC No. 606. For income from servicing residential mortgage loans, New Residential considered that the FASB Transition Resource Group members generally agreed that an entity should look to ASC No. 860, Transfers and Servicing, to determine the appropriate accounting for these fees and ASC No. 606 contains a scope exception for contracts that fall under ASC No. 860. In addition, NRM determined that ancillary income generated from services for mortgage loans and REO properties represent servicing fees due to a servicer, through contractual terms, that would no longer be received by a servicer if the owners of the serviced loans were to exercise their authority to shift the servicing to another servicer and, therefore, similarly fall under ASC No. 860. As a result, the adoption of ASU No. 2014-09 did not have a material impact on the condensed consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities. The standard: (i) requires that certain equity investments be measured at fair value, and modifies the assessment of impairment for certain other equity investments, (ii) changes certain disclosure requirements related to the fair value of financial instruments measured at amortized cost, (iii) changes certain disclosure requirements related to liabilities measured at fair value, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. ASU No. 2016-01 was effective for New Residential in the first quarter of 2018. The adoption of ASU No. 2016-01 did not have a material impact on the condensed consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases. The standard requires that lessees recognize a right-of-use asset and corresponding lease liability on the balance sheet for most leases. The guidance applied by a lessor under ASU No. 2016-02 is substantially similar to existing GAAP. ASU No. 2016-02 is effective for New Residential in the first quarter of 2019. Early adoption is permitted upon issuance. An entity should apply ASU No. 2016-02 by means of a modified retrospective transition method for all leases existing at, or entered into after, the date of initial application. The adoption of ASU No. 2016-02 is not expected to have a material impact on the condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments. The standard requires that a financial asset measured at amortized cost basis be presented at the net amount expected to be collected, net of an allowance for all expected (rather than incurred) credit losses. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The standard also changes the accounting for purchased credit deteriorated assets and available-for-sale securities, which will require the recognition of credit losses through a valuation allowance when fair value is less than amortized cost, regardless of whether the impairment is considered to be other-than-temporary. ASU No. 2016-13 is effective for New Residential in the first quarter of 2020. Early adoption is permitted beginning in 2019. An entity should apply ASU No. 2016-13 by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. New Residential is currently evaluating the new guidance to determine the impact it may have on its condensed consolidated financial statements, which at the date of adoption is expected to increase the allowance for credit losses with a resulting negative adjustment to retained earnings.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory. The standard requires recognition of the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU No. 2016-16 was effective for New Residential in the first quarter of 2018. The adoption of ASU No. 2016-16 did not have a material impact on the condensed consolidated financial statements.

2.
OTHER INCOME, ASSETS AND LIABILITIES
 
Gain (loss) on settlement of investments, net is comprised of the following:
 
Three Months Ended 
 June 30,
 
Six Months Ended  
 June 30,
 
2018
 
2017
 
2018
 
2017
Gain (loss) on sale of real estate securities, net
$
(8,731
)
 
$
21,257

 
$
(37,958
)
 
$
22,250

Gain (loss) on sale of residential mortgage loans, net
9,228

 
26,373

 
(5,423
)
 
28,938

Gain (loss) on settlement of derivatives
19,270

 
(27,734
)
 
56,633

 
(39,570
)
Gain (loss) on liquidated residential mortgage loans
(769
)
 
(3,628
)
 
(1,154
)
 
(5,844
)
Gain (loss) on sale of REO
(4,343
)
 
(2,702
)
 
(7,143
)
 
(5,312
)
Gains reclassified from change in fair value of investments in excess MSRs and servicer advance investments

 

 
113,002

 

Other gains (losses)

 
(195
)
 

 
(765
)
 
$
14,655

 
$
13,371

 
$
117,957

 
$
(303
)

Other income (loss), net, is comprised of the following:
 
Three Months Ended 
 June 30,
 
Six Months Ended  
 June 30,
 
2018
 
2017
 
2018
 
2017
Unrealized gain (loss) on derivative instruments
$
1,240

 
$
(8,010
)
 
$
3,686

 
$
(3,684
)
Unrealized gain (loss) on other ABS
5,117

 
(607
)
 
4,804

 
151

Gain (loss) on transfer of loans to REO
6,320

 
4,978

 
10,490

 
11,612

Gain (loss) on transfer of loans to other assets
(175
)
 
81

 
(120
)
 
293

Gain (loss) on Excess MSRs
1,365

 
715

 
4,270

 
1,342

Gain (loss) on Ocwen common stock
(972
)
 

 
4,800

 

Other income (loss)
(2,918
)
 
(6,192
)
 
(7,969
)
 
(11,905
)
 
$
9,977

 
$
(9,035
)
 
$
19,961

 
$
(2,191
)


11

NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2018
(dollars in tables in thousands, except share data) 
 

Other assets and liabilities are comprised of the following:
 
Other Assets
 
 
 
Accrued Expenses
and Other Liabilities
 
June 30, 2018
 
December 31, 2017
 
 
 
June 30, 2018
 
December 31, 2017
Margin receivable, net
$
119,211

 
$
53,150

 
Interest payable
 
$
33,260

 
$
28,821

Other receivables
66,167

 
10,635

 
Accounts payable
 
45,030

 
73,017

Principal and interest receivable
53,576

 
48,373

 
Derivative liabilities (Note 10)
 
7,811

 
697

Receivable from government agency
25,020

 
41,429

 
Current taxes payable
 

 

Call rights
327

 
327

 
Due to servicers
 
76,749

 
24,571

Derivative assets (Note 10)
10

 
2,423

 
MSR purchase price holdback
 
100,080

 
101,290

Servicing fee receivables
74,095

 
60,520

 
Other liabilities
 
21,120

 
10,718

Ginnie Mae EBO servicer advances receivable, net
2,269

 
8,916

 
 
 
$
284,050

 
$
239,114

Due from servicers
58,181

 
38,601

 
 
 
 
 
 
Ocwen common stock, at fair value
24,059

 
19,259

 
 
 
 
 
 
Prepaid expenses
9,479

 
7,308

 
 
 
 
 
 
Other assets
36,402

 
21,240

 
 
 
 
 
 
 
$
468,796

 
$
312,181

 
 
 
 
 
 

As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following:
 
 
Six Months Ended  
 June 30,
 
 
2018
 
2017
Accretion of servicer advances receivable discount and servicer advance investments
 
$
146,024

 
$
316,512

Accretion of excess mortgage servicing rights income
 
20,743

 
49,546

Accretion of net discount on securities and loans(A)
 
197,331

 
187,039

Amortization of deferred financing costs
 
(3,963
)
 
(6,800
)
Amortization of discount on notes and bonds payable
 
(1,030
)
 
(911
)
 
 
$
359,105

 
$
545,386


(A)
Includes accretion of the accretable yield on PCD loans.

3.
SEGMENT REPORTING
 
New Residential conducts its business through the following segments: (i) investments in Excess MSRs, (ii) investments in MSRs, (iii) Servicer Advance Investments, (iv) investments in real estate securities, (v) investments in residential mortgage loans, (vi) investments in consumer loans, and (vii) corporate. The corporate segment consists primarily of (i) general and administrative expenses, (ii) the management fees and incentive compensation related to the Management Agreement and (iii) corporate cash and related interest income. Securities owned by New Residential (Note 7) that are collateralized by servicer advances and consumer loans are included in the Servicer Advances and Consumer Loans segments, respectively. Secured corporate loans effectively collateralized by Excess MSRs are included in the Excess MSRs segment.


12

NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2018
(dollars in tables in thousands, except share data) 
 

Summary financial data on New Residential’s segments is given below, together with a reconciliation to the same data for New Residential as a whole:
 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
11,384

 
$
167,754

 
$
12,494

 
$
115,592

 
$
40,685

 
$
55,022

 
$
874

 
$
403,805

Interest expense
2,470

 
46,834

 
6,431

 
48,548

 
18,614

 
11,019

 

 
133,916

Net interest income (expense)
8,914

 
120,920

 
6,063

 
67,044

 
22,071

 
44,003

 
874

 
269,889

Impairment

 

 

 
12,631

 
(9,430
)
 
13,088

 

 
16,289

Servicing revenue, net

 
146,193

 

 

 

 

 

 
146,193

Other income (loss)
(2,973
)
 
(118,334
)
 
(1,633
)
 
16,783

 
5,727

 
4,478

 
(860
)
 
(96,812
)
Operating expenses
14

 
50,111

 
267

 
643

 
10,275

 
8,839

 
49,604

 
119,753

Income (Loss) Before Income Taxes
5,927

 
98,668

 
4,163

 
70,553

 
26,953

 
26,554

 
(49,590
)
 
183,228

Income tax expense (benefit)

 

 
203

 

 
(2,811
)
 

 

 
(2,608
)
Net Income (Loss)
$
5,927

 
$
98,668

 
$
3,960

 
$
70,553

 
$
29,764

 
$
26,554

 
$
(49,590
)
 
$
185,836

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$

 
$
1,056

 
$

 
$

 
$
10,022

 
$

 
$
11,078

Net income (loss) attributable to common stockholders
$
5,927

 
$
98,668

 
$
2,904

 
$
70,553

 
$
29,764

 
$
16,532

 
$
(49,590
)
 
$
174,758


 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
20,743

 
$
334,272

 
$
31,385

 
$
216,725

 
$
75,077

 
$
107,670

 
$
1,506

 
$
787,378

Interest expense
6,959

 
90,945

 
12,861

 
90,078

 
34,925

 
22,535

 

 
258,303

Net interest income (expense)
13,784

 
243,327

 
18,524

 
126,647

 
40,152

 
85,135

 
1,506

 
529,075

Impairment

 

 

 
19,301

 
(4,247
)
 
26,912

 

 
41,966

Servicing revenue, net

 
363,429

 

 

 

 

 

 
363,429

Other income (loss)
(4,862
)
 
153,443

 
(8,210
)
 
27,352

 
(14,490
)
 
9,568

 
4,911

 
167,712

Operating expenses
75

 
102,389

 
411

 
940

 
19,222

 
18,276

 
86,257

 
227,570

Income (Loss) Before Income Taxes
8,847

 
657,810

 
9,903

 
133,758

 
10,687

 
49,515

 
(79,840
)
 
790,680

Income tax expense (benefit)

 
(6,729
)
 
(224
)
 

 
(2,811
)
 
244

 

 
(9,520
)
Net Income (Loss)
$
8,847

 
$
664,539

 
$
10,127

 
$
133,758

 
$
13,498

 
$
49,271

 
$
(79,840
)
 
$
800,200

Noncontrolling interests in income (loss) of consolidated subsidiaries
$

 
$

 
$
2,439

 
$

 
$

 
$
18,750

 
$

 
$
21,189

Net income (loss) attributable to common stockholders
$
8,847

 
$
664,539

 
$
7,688

 
$
133,758

 
$
13,498

 
$
30,521

 
$
(79,840
)
 
$
779,011


13

NEW RESIDENTIAL INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
June 30, 2018
(dollars in tables in thousands, except share data) 
 

 
Servicing Related Assets
 
Residential Securities and Loans
 
 
 
 
 
 
 
Excess MSRs
 
MSRs
 
Servicer Advances
 
Real Estate Securities
 
Residential Mortgage Loans
 
Consumer Loans
 
Corporate
 
Total
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments
$
654,333

 
$
4,137,045

 
$
843,438

 
$
8,084,927

 
$
2,837,791

 
$
1,270,737

 
$

 
$
17,828,271

Cash and cash equivalents
489

 
120,857

 
32,154

 
4,885

 
10,403

 
17,283

 
7,165

 
193,236

Restricted cash
3,718

 
104,677

 
9,441

 

 

 
43,605

 

 
161,441

Other assets
3,617

 
3,306,219

 
3,749

 
1,211,807

 
116,590

 
39,167

 
79,634

 
4,760,783

Total assets
$
662,157

 
$
7,668,798

 
$
888,782

 
$
9,301,619

 
$
2,964,784

 
$
1,370,792

 
$
86,799

 
$
22,943,731

Debt
$
197,563

 
$
4,845,717

 
$
639,252

 
$
6,365,317

 
$
2,237,388

 
$
1,179,673

 
$

 
$
15,464,910

Other liabilities
1,140

 
208,277

 
(14,004
)
 
1,195,845

 
48,873

 
15,199

 
224,567

 
1,679,897

Total liabilities
198,703

 
5,053,994

 
625,248

 
7,561,162

 
2,286,261

 
1,194,872

 
224,567

 
17,144,807

Total equity
463,454

 
2,614,804

 
263,534

 
1,740,457

 
678,523

 
175,920

 
(137,768
)
 
5,798,924

Noncontrolling interests in equity of consolidated subsidiaries

 

 
58,286

 

 

 
31,845

 

 
90,131

Total New Residential stockholders’ equity
$
463,454

 
$
2,614,804

 
$
205,248

 
$
1,740,457

 
$
678,523

 
$
144,075

 
$
(137,768
)
 
$
5,708,793

Investments in equity method investees
$
159,034

 
$

 
$

 
$

 
$

 
$
57,820

 
$

 
$
216,854

 

Servicing Related Assets

Residential Securities and Loans







Excess MSRs

MSRs
 
Servicer Advances

Real Estate Securities

Residential Mortgage Loans

Consumer Loans

Corporate

Total
Three Months Ended June 30, 2017


 
 











Interest income
$
18,128


$
2,535

 
$
244,308


$
113,475


$
25,638


$
67,698


$
170


$
471,952

Interest expense
9,005


10,600

 
40,720


29,571


11,628


13,633




115,157