Quarterly report pursuant to Section 13 or 15(d)

DEBT OBLIGATIONS (Tables)

v3.10.0.1
DEBT OBLIGATIONS (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Debt Obligations
The following table presents certain information regarding New Residential’s debt obligations:

 
June 30, 2018
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Collateral
 
 
Debt Obligations/Collateral
 
Outstanding Face Amount
 
Carrying Value(A)
 
Final Stated Maturity(B)
 
Weighted Average Funding Cost
 
Weighted Average Life (Years)
 
Outstanding Face
 
Amortized Cost Basis
 
Carrying Value
 
Weighted Average Life (Years)
 
Carrying Value(A)
Repurchase Agreements(C)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency RMBS(D)
 
$
1,122,411

 
$
1,122,411

 
Jul-18
 
2.18
%
 
0.1
 
$
1,190,879

 
$
1,182,808

 
$
1,174,578

 
0.4
 
$
1,974,164

Non-Agency RMBS (E)
 
5,405,096

 
5,405,096

 
Jul-18 to Sep-18
 
3.39
%
 
0.1
 
13,216,453

 
6,096,983

 
6,565,322

 
7.3
 
4,720,290

Residential Mortgage Loans(F)
 
2,126,086

 
2,125,071

 
Jul-18 to Dec-19
 
4.09
%
 
0.5
 
2,676,421

 
2,459,100

 
2,434,254

 
4.5
 
1,849,004

Real Estate Owned(G)(H)
 
104,606

 
104,556

 
Jul-18 to Dec-19
 
4.16
%
 
0.2
 
N/A

 
N/A

 
133,504

 
N/A
 
118,681

Total Repurchase Agreements
 
8,758,199

 
8,757,134

 
 
 
3.42
%
 
0.2
 
 
 
 
 
 
 
 
 
8,662,139

Notes and Bonds Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Excess MSRs(I)
 
197,759

 
197,563

 
Feb-20 to Jul-22
 
4.97
%
 
4.1
 
150,771,743

 
408,244

 
522,540

 
5.7
 
483,978

MSRs(J)
 
1,896,688

 
1,888,618

 
Feb-19 to May-23
 
4.14
%
 
3.3
 
340,548,316

 
3,191,130

 
4,001,757

 
6.5
 
1,157,179

Servicer Advances(K)
 
3,539,105

 
3,532,641

 
Mar-19 to Dec-21
 
3.48
%
 
2.2
 
3,946,804

 
4,028,735

 
4,050,884

 
1.4
 
4,060,156

Residential Mortgage Loans(L)
 
6,110

 
6,110

 
Oct-18
 
4.33
%
 
0.3
 
8,323

 
4,706

 
4,706

 
6.2
 
137,196

Consumer Loans(M)
 
1,085,465

 
1,081,193

 
Dec-21 to Mar-24
 
3.38
%
 
3.0
 
1,216,194

 
1,218,423

 
1,212,761

 
3.5
 
1,242,756

Receivable from government agency(L)
 
1,651

 
1,651

 
Oct-18
 
4.30
%
 
0.3
 
N/A

 
N/A

 
1,156

 
N/A
 
3,126

Total Notes and Bonds Payable
 
6,726,778

 
6,707,776

 
 
 
3.69
%
 
2.7
 
 
 
 
 
 
 
 
 
7,084,391

Total/ Weighted Average
 
$
15,484,977

 
$
15,464,910

 
 
 
3.54
%
 
1.3
 
 
 
 
 
 
 
 
 
$
15,746,530



(A)
Net of deferred financing costs.
(B)
All debt obligations with a stated maturity through July 30, 2018 were refinanced, extended or repaid.
(C)
These repurchase agreements had approximately $22.1 million of associated accrued interest payable as of June 30, 2018.
(D)
All of the Agency RMBS repurchase agreements have a fixed rate. Collateral amounts include approximately $1.1 billion of related trade and other receivables.
(E)
All of the Non-Agency RMBS repurchase agreements have LIBOR-based floating interest rates. This includes repurchase agreements of $162.2 million on retained servicer advance and consumer loan bonds.
(F)
All of these repurchase agreements have LIBOR-based floating interest rates.
(G)
All of these repurchase agreements have LIBOR-based floating interest rates.
(H)
Includes financing collateralized by receivables including claims from FHA on Ginnie Mae EBO loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.
(I)
Includes $197.8 million of corporate loans which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.00%, and includes corporate loans with no balance currently outstanding which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the interests in MSRs that secure these notes.
(J)
Includes: $205.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.25%; $230.0 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 3.00%; $73.4 million of MSR notes which bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR and (ii) a margin of 2.50%; and $1,388.2 million of public notes with fixed interest rates ranging from 3.55% to 4.45%. The outstanding face amount of the collateral represents the UPB of the residential mortgage loans underlying the MSRs and mortgage servicing rights financing receivables that secure these notes.
(K)
$3.3 billion face amount of the notes have a fixed rate while the remaining notes bear interest equal to the sum of (i) a floating rate index equal to one-month LIBOR or a cost of funds rate, as applicable, and (ii) a margin ranging from 2.0% to 2.2%. Collateral includes Servicer Advance Investments, as well as servicer advances receivable related to the mortgage servicing rights and mortgage servicing rights financing receivables owned by NRM.
(L)
Represents: (i) a $7.8 million note payable to Nationstar that bears interest equal to one-month LIBOR plus 2.88%.
(M)
Includes the SpringCastle debt, which is comprised of the following classes of asset-backed notes held by third parties: $796.4 million UPB of Class A notes with a coupon of 3.05% and a stated maturity date in November 2023; $210.8 million UPB of Class B notes with a coupon of 4.10% and a stated maturity date in March 2024; $18.3 million UPB of Class C-1 notes with a coupon of 5.63% and a stated maturity date in March 2024; $18.3 million UPB of Class C-2 notes with a coupon of 5.63% and a stated maturity date in March 2024. Also includes a $41.7 million face amount note which bears interest equal to 4.00%.
Activities related to the carrying value of New Residential’s debt obligations were as follows:
 
Excess MSRs
 
MSRs
 
Servicer Advances(A)
 
Real Estate Securities
 
Residential Mortgage Loans and REO
 
Consumer Loans
 
Total
Balance at December 31, 2017
$
483,978

 
$
1,157,179

 
$
4,060,156

 
$
6,694,454

 
$
2,108,007

 
$
1,242,756

 
$
15,746,530

Repurchase Agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings

 

 

 
32,519,734

 
1,022,326

 

 
33,542,060

Repayments

 

 

 
(32,686,681
)
 
(760,928
)
 

 
(33,447,609
)
Capitalized deferred financing costs, net of amortization

 

 

 

 
544

 

 
544

Notes and Bonds Payable:
 
 
 
 
 
 
 
 
 
 
 
 

Borrowings

 
2,088,834

 
2,594,269

 

 

 

 
4,683,103

Repayments
(286,440
)
 
(1,350,230
)
 
(3,121,736
)
 

 
(132,561
)
 
(162,585
)
 
(5,053,552
)
Discount on borrowings, net of amortization

 

 
21

 

 

 
742

 
763

Capitalized deferred financing costs, net of amortization
25

 
(7,165
)
 
(68
)
 

 

 
280

 
(6,928
)
Balance at June 30, 2018
$
197,563

 
$
1,888,618

 
$
3,532,641

 
$
6,527,507

 
$
2,237,388

 
$
1,081,193

 
$
15,464,910


(A)
New Residential net settles daily borrowings and repayments of the Notes and Bonds Payable on its servicer advances.

Schedule of Contractual Maturities of Debt Obligations
New Residential’s debt obligations as of June 30, 2018 had contractual maturities as follows:
Year
 
Nonrecourse
 
Recourse
 
Total
July 1 through December 31, 2018
 
$

 
$
8,252,495

 
$
8,252,495

2019
 
931,902

 
718,465

 
1,650,367

2020
 
824,179

 

 
824,179

2021
 
1,824,701

 
833,977

 
2,658,678

2022
 
73,442

 
427,778

 
501,220

2023 and thereafter
 
1,043,790

 
554,248

 
1,598,038

 
 
$
4,698,014

 
$
10,786,963

 
$
15,484,977

Schedule of Borrowing Capacity
The following table represents New Residential’s borrowing capacity as of June 30, 2018:
Debt Obligations / Collateral
 
Borrowing Capacity
 
Balance Outstanding
 
Available Financing
Repurchase Agreements
 
 
 
 
 
 
Residential mortgage loans and REO
 
$
3,541,961

 
$
2,230,692

 
$
1,311,269

Notes and Bonds Payable
 
 
 
 
 
 
Excess MSRs
 
150,000

 

 
150,000

MSRs
 
975,000

 
278,442

 
696,558

Servicer advances(A)
 
1,745,000

 
1,275,406

 
469,594

Consumer loans
 
150,000

 
41,676

 
108,324

 
 
$
6,561,961

 
$
3,826,216

 
$
2,735,745



(A)
New Residential’s unused borrowing capacity is available if New Residential has additional eligible collateral to pledge and meets other borrowing conditions as set forth in the applicable agreements, including any applicable advance rate. New Residential pays a 0.1% fee on the unused borrowing capacity. Excludes borrowing capacity and outstanding debt for retained Non-Agency bonds collateralized by servicer advances with a current face amount of $86.3 million.