Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS EQUITY METHOD INVESTEES (Tables)

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INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS EQUITY METHOD INVESTEES (Tables)
3 Months Ended
Mar. 31, 2014
Investments In Excess Mortgage Servicing Rights Equity Method Investees Tables  
Schedule of investments in excess mortgage servicing rights equity method investees

The following tables summarize the investments in Excess MSR joint ventures, accounted for as equity method investees held by New Residential:

 

    March 31, 2014  
Excess MSR assets   $ 673,718  
Other assets     7,152  
Debt     —  
Other liabilities     (4,256 )
Equity   $ 676,614  
New Residential’s investment   $ 338,307  
New Residential’s ownership     50.0 %

 

    Three Months Ended March 31,  
    2014     2013  
Interest income   $ 18,493     $ 5,616  
Other income (loss)     (5,705 )     (3,154 )
Expenses     (40 )     (524 )
Net income   $ 12,748     $ 1,938  
Schedule of Excess Mortgage Servicing Rights (MSRs) investments made through equity method investees

The following is a summary of New Residential’s Excess MSR investments made through equity method investees:

 

    March 31, 2014  
    Unpaid Principal Balance     Investee  Interest in  Excess MSR     New Residential Interest in Investees     Amortized Cost Basis (A)     Carrying Value (B)     Weighted Average Yield     Weighted Average Life (Years) (C)  
MSR Pool 6   $ 9,628,238       66.7 %     50.0 %   $ 37,424     $ 46,261       12.5 %     5.1  
MSR Pool 6 - Recapture Agreement     —       66.7 %     50.0 %     6,922       9,165       12.5 %     12.1  
MSR Pool 7     30,574,186       66.7 %     50.0 %     97,392       99,290       12.5 %     5.2  
MSR Pool 7 - Recapture Agreement     —       66.7 %     50.0 %     14,156       24,498       12.5 %     12.4  
MSR Pool 8     13,547,232       66.7 %     50.0 %     55,107       54,406       12.5 %     5.1  
MSR Pool 8 - Recapture Agreement     —       66.7 %     50.0 %     5,836       13,050       12.5 %     12.1  
MSR Pool 9     29,704,976       66.7 %     50.0 %     100,528       125,876       12.5 %     4.8  
MSR Pool 9 - Recapture Agreement     —       66.7 %     50.0 %     32,271       31,743       12.5 %     12.1  
MSR Pool 10 (D)     66,582,388       66.7-77.0%       50.0 %     196,933       194,571       12.5 %     5.4  
MSR Pool 10 - Recapture Agreement     —       66.7-77.0%       50.0 %     13,658       7,304       12.5 %     13.3  
MSR Pool 11     17,322,366       66.7 %     50.0 %     41,804       51,216       12.5 %     5.7  
MSR Pool 11 - Recapture Agreement     —       66.7 %     50.0 %     22,849       16,338       12.5 %     11.4  
    $ 167,359,386                     $ 624,880     $ 673,718       12.5 %     6.3  

 

(A) Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired.
(B) Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable.
(C) The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment.
(D) Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of March 31, 2014 (Note 6).
Summary of the geographic distribution of the underlying residential mortgage loans of Excess MSRs made through equity method investees

The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees at March 31, 2014:

 

State Concentration   Percentage of UPB  
California     23.5 %
Florida     9.1 %
New York     5.4 %
Texas     4.9 %
Georgia     4.0 %
New Jersey     3.8 %
Illinois     3.5 %
Virginia     3.2 %
Maryland     3.1 %
Washington     2.8 %
Other U.S.     36.7 %
      100.0 %