Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN SERVICER ADVANCES (Tables)

v2.4.0.8
INVESTMENTS IN SERVICER ADVANCES (Tables)
6 Months Ended
Jun. 30, 2014
Investments, All Other Investments [Abstract]  
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:
 
June 30, 2014
 
Six Months Ended June 30, 2014
 
Amortized Cost Basis
 
Carrying Value(A)
 
Weighted Average Discount Rate
 
Weighted Average Life (Years)(B)
 
Change in Fair Value Recorded in Other Income
Servicer advances
$
3,596,228

 
$
3,679,105

 
5.6
%
 
3.8
 
$
82,877

  
(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:
 
 
 
 
 
 
 
 
 
 
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
June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicer advances(C)
 
$
102,159,164

 
$
3,551,464

 
3.5
%
 
$
3,265,530

 
91.9
%
 
90.8
%
 
3.3
%
 
2.2
%
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Servicer advances(C)
 
$
43,444,216

 
$
2,661,130

 
6.1
%
 
$
2,390,778

 
89.8
%
 
88.6
%
 
4.0
%
 
2.3
%
 
(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:
    
 
 
June 30, 2014
 
December 31, 2013
Principal and interest advances
 
$
1,282,504

 
$
1,516,715

Escrow advances (taxes and insurance advances)
 
1,597,466

 
934,525

Foreclosure advances
 
671,494

 
209,890

  Total
 
$
3,551,464

 
$
2,661,130

Schedule of interest income - servicer advances
Interest income recognized by New Residential related to its investments in servicer advances was comprised of the following:
 
 
Six Months Ended 
 June 30, 2014
Interest income, gross of amounts attributable to servicer compensation
 
$
153,684

  Amounts attributable to base servicer compensation
 
(49,306
)
  Amounts attributable to incentive servicer compensation
 
(1,555
)
Interest income from investments in servicer advances
 
$
102,823