Quarterly report pursuant to Section 13 or 15(d)

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

v2.4.0.8
INVESTMENTS IN EXCESS MORTGAGE SERVICING RIGHTS, EQUITY METHOD INVESTEES (Tables)
6 Months Ended
Jun. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]  
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:
 
 
June 30, 2014
 
December 31, 2013
Excess MSR assets
 
$
655,766

 
$
703,681

Other assets
 
8,451

 
5,534

Debt
 

 

Other liabilities
 
(3,777
)
 
(3,683
)
Equity
 
$
660,440

 
$
705,532

New Residential's investment
 
$
330,220

 
$
352,766

 
 
 
 
 
New Residential's ownership
 
50.0
%
 
50.0
%
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Interest income
 
$
17,292

 
$
8,140

 
$
35,785

 
$
13,756

Other income
 
8,194

 
34,528

 
2,489

 
31,374

Expenses
 
(1
)
 
(2,414
)
 
(41
)
 
(2,938
)
Net income
 
$
25,485

 
$
40,254

 
$
38,233

 
$
42,192

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:
 
June 30, 2014
 
Unpaid Principal Balance
 
Investee  Interest in  Excess MSR
 
New Residential Interest in Investees
 
Amortized Cost Basis(A)
 
Carrying Value(B)
 
Weighted Average Life (Years)(C)
MSR Pool 6
$
9,050,743

 
66.7
%
 
50.0
%
 
$
36,286

 
$
45,089

 
5.1
MSR Pool 6 - Recapture
    Agreement

 
66.7
%
 
50.0
%
 
5,951

 
8,551

 
12.2
MSR Pool 7
29,547,830

 
66.7
%
 
50.0
%
 
94,036

 
95,882

 
5.2
MSR Pool 7 - Recapture
    Agreement

 
66.7
%
 
50.0
%
 
12,209

 
24,136

 
12.4
MSR Pool 8
13,043,774

 
66.7
%
 
50.0
%
 
52,744

 
50,716

 
5.2
MSR Pool 8 - Recapture
    Agreement

 
66.7
%
 
50.0
%
 
4,707

 
12,630

 
12.1
MSR Pool 9
27,924,457

 
66.7
%
 
50.0
%
 
97,755

 
122,440

 
4.9
MSR Pool 9 - Recapture
    Agreement

 
66.7
%
 
50.0
%
 
29,343

 
30,134

 
12.1
MSR Pool 10(D)
63,763,048

 
66.7-77.0%

 
50.0
%
 
189,488

 
190,143

 
5.1
MSR Pool 10 - Recapture
    Agreement

 
66.7-77.0%

 
50.0
%
 
13,038

 
10,546

 
12.6
MSR Pool 11
16,491,872

 
66.7
%
 
50.0
%
 
41,115

 
55,440

 
5.6
MSR Pool 11 - Recapture
    Agreement

 
66.7
%
 
50.0
%
 
22,640

 
10,059

 
13.1
 
$
159,821,724

 
 

 
 

 
$
599,312

 
$
655,766

 
6.2
 
(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 June 30, 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:
 
 
Percentage of Total Outstanding Unpaid Principal Amount as of
State Concentration
 
June 30, 2014
 
December 31, 2013
California
 
23.5
%
 
23.5
%
Florida
 
9.1
%
 
9.2
%
New York
 
5.5
%
 
5.3
%
Texas
 
4.9
%
 
4.9
%
Georgia
 
4.0
%
 
4.0
%
New Jersey
 
3.8
%
 
3.7
%
Illinois
 
3.5
%
 
3.5
%
Maryland
 
3.2
%
 
3.1
%
Virginia
 
3.2
%
 
3.1
%
Washington
 
2.8
%
 
2.8
%
Other U.S.
 
36.5
%
 
36.9
%
 
 
100.0
%
 
100.0
%