Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN SERVICER ADVANCES (Tables)

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INVESTMENTS IN SERVICER ADVANCES (Tables)
3 Months Ended
Mar. 31, 2014
Investments In Servicer Advances Tables  
Schedule of investment in servicer advances

The following is a summary of the investments in servicer advances, including the right to the basic fee component of the related MSRs, made by the Buyer, which New Residential consolidates:

 

    March 31, 2014     Three Months Ended March 31, 2014  
    Amortized Cost Basis     Carrying Value (A)     Weighted Average Yield     Weighted Average Life (Years) (B)     Change in Fair Value Recorded in Other Income  
Servicer advances   $ 3,457,385     $ 3,457,385       5.8 %     3.2       —  

  

(A) Carrying value represents the fair value of the investments in servicer advances, including the basic fee component of the related MSRs.
(B) Weighted Average Life represents the weighted average expected timing of the receipt of expected net cash flows for this investment.

 

The following is additional information regarding the servicer advances, and related financing, of the Buyer, which New Residential consolidates as of March 31, 2014:

  

                      Loan-to-Value     Cost of Funds (B)  
    UPB of Underlying Residential Mortgage Loans     Outstanding Servicer Advances     Servicer Advances to UPB of Underlying Residential Mortgage Loans     Carrying Value of Notes Payable     Gross     Net (A)     Gross     Net  
Servicer advances (C)   $ 79,687,268     $ 3,430,473       4.3 %   $ 3,142,292       91.6 %     90.6 %     3.0 %     2.2 %

 

(A) Ratio of face amount of borrowings to par amount of servicer advance collateral, net of an interest reserve maintained by the Buyer.
(B) Annualized measure of the cost associated with borrowings. Gross Cost of Funds primarily includes interest expense and facility fees. Net Cost of Funds excludes facility fees.

(C) The following types of advances comprise the investments in servicer advances:

 

    March 31, 2014  
Principal and interest advances   $ 1,615,067  
Escrow advances (taxes and insurance advances)     1,393,014  
Foreclosure advances     422,392  
Total   $ 3,430,473  
Schedule of interest income - servicer advances

Interest income recognized by New Residential related to its investments in servicer advances for the three months ended March 31, 2014 was comprised of the following:

 

Interest income, gross of amounts attributable to servicer compensation   $ 67,138  
Amounts attributable to servicer compensation     (21,422 )
Interest income from investments in servicer advances   $ 45,716