Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Excess Mortgage Servicing Rights Investees
Jun. 30, 2013
Excess Mortgage Servicing Rights Investees
Cash Flows From Operating Activities        
Net income (loss) $ 239,073 $ 122,297    
Adjustments to reconcile net income to net cash provided by (used in) operating activities (inclusive of amounts related to discontinued operations):        
Change in fair value of investments in excess mortgage servicing rights (12,104) (43,691)    
Change in fair value of investments in excess mortgage servicer rights, equity method investees (19,117) (21,096)    
Change in fair value of investments in servicer advances (82,877) 0    
Earnings from consumer loan equity method investees (37,695) (36,164)    
Change in fair value of investments in derivative assets (2,444) 0    
Accretion and other amortization (134,339) (27,377)    
(Gain) / loss on settlement of investments (net) (56,896) (58)    
(Gain) / loss on transfer of loans to REO (6,694) 0    
Other-than-temporary impairment (“OTTI”) 943 3,756    
Valuation provision on loans 457 0    
Non-cash directors’ compensation 329 0    
Deferred tax liability 17,645 0    
Changes in:        
Restricted cash (3,989) 0    
Other assets (3,213) (3,907)    
Due to affiliates 6,963 (2,715)    
Accrued expenses and other liabilities 1,800 574    
Reduction of liability deemed as capital contribution by Newcastle 0 11,515    
Other operating cash flows:        
Interest received from excess mortgage servicing rights 25,509 3,464    
Interest received from servicer advance investments 65,321 0    
Interest received from residential mortgage loans, held-for-investment 1,223 0    
Distributions of earnings, equity method investees     20,500 4,822
Cash proceeds from investments, in excess of interest income 0 41,435    
Net cash proceeds deemed as capital distributions to Newcastle 0 (35,571)    
Net cash provided by (used in) operating activities 27,435 18,053    
Cash Flows From Investing Activities        
Acquisition of investments in excess mortgage servicing rights (55,289) (2,391)    
Acquisition of investments in excess mortgage servicing rights, equity method investees 0 (53,766)    
Purchase of servicer advance investments (3,955,602) 0    
Purchase of Agency ARM RMBS (354,838) (140,924)    
Purchase of Non-Agency RMBS (1,057,464) (124,176)    
Purchase of residential mortgage loans, held-for-investment (733,693) 0    
Purchase of derivative assets (70,027) 0    
Purchase of real estate owned (3,391) 0    
Payment for settlement of derivatives at a loss (17,273) 0    
Return of investments in excess mortgage servicing rights 19,421 6,600    
Return of investments in excess mortgage servicing rights, equity method investees 21,163 4,018    
Principal repayments from servicing advance investments 3,062,259 0    
Principal repayments from Agency ARM RMBS 143,735 102,553    
Principal repayments from Non-Agency RMBS 49,175 23,592    
Principal repayments from residential mortgage loans, held-for-investment 8,289 1,789    
Proceeds from sale of Agency ARM RMBS 324,379 0    
Proceeds from sale of Non-Agency RMBS 1,273,190 4,421    
Proceeds from settlement of derivatives 13,271 0    
Proceeds from sale of residential mortgage loans 249,690 0    
Proceeds from sale of real estate owned 2,880 0    
Net cash provided by (used in) investing activities (1,080,125) (178,284)    
Cash Flows From Financing Activities        
Repayments of repurchase agreements (2,274,155) (290,747)    
Margin deposits under repurchase agreements (115,961) (87,579)    
Repayments of notes payable (4,216,985) 0    
Payment of deferred financing fees (6,530) 0    
Common stock dividends paid (107,609) 0    
Borrowings under repurchase agreements 2,473,920 415,982    
Return of margin deposits under repurchase agreements 152,936 87,216    
Borrowings under notes payable 5,017,812 0    
Issuance of common stock 173,201 0    
Costs related to issuance of common stock (2,693) 0    
Capital contributions 0 0    
Contributions in kind 0 245,058    
Noncontrolling interest in equity of consolidated subsidiaries - contributions 142,082 0    
Noncontrolling interest in equity of consolidated subsidiaries - distributions (144,196) 0    
Net cash provided by (used in) financing activities 1,091,822 369,930    
Net Increase (Decrease) in Cash and Cash Equivalents 39,132 209,699    
Cash and Cash Equivalents, Beginning of Period 271,994 0    
Cash and Cash Equivalents, End of Period 311,126 209,699    
Supplemental Disclosure of Cash Flow Information        
Cash paid during the period for interest 72,100 3,029    
Cash paid during the period for income taxes 3,510 0    
Supplemental Schedule of Non-Cash Investing and Financing Activities Prior to Date of Cash Contribution by Newcastle        
Cash proceeds from investments, in excess of interest income 0 41,435    
Acquisition of real estate securities 0 242,750    
Acquisition of investments in excess mortgage servicing rights, equity method investees at fair value 0 125,099    
Acquisition of residential mortgage loans, held-for-investment 0 35,138    
Acquisition of investments in consumer loan equity method investees 0 245,421    
Borrowings under repurchase agreements 0 (1,179,068)    
Repayments of repurchase agreements 0 3,902    
Capital contributions by Newcastle 0 648,408    
Contributions in-kind by Newcastle 0 1,093,684    
Capital distributions to Newcastle 0 1,228,054    
Supplemental Schedule of Non-Cash Investing and Financing Activities Subsequent to Date of Cash Contribution by Newcastle        
Dividends payable 70,553 17,712    
Equity Method Investments, Non-Cash Distribution $ 557 $ 0