Quarterly report pursuant to Section 13 or 15(d)

TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES

v2.4.0.8
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES
9 Months Ended
Sep. 30, 2014
Transactions With Affiliates And Affiliated Entities  
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES
 
Due to affiliates is comprised of the following amounts:
 
September 30, 2014
 
December 31, 2013
Management fees
$
1,709

 
$
1,495

Incentive compensation
33,111

 
16,847

Expense reimbursements and other
321

 
827

 
$
35,141

 
$
19,169

 
Affiliate expenses and fees were comprised of:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Management fees
$
5,124

 
$
4,484

 
$
14,525

 
$
6,747

Incentive compensation
10,910

 
4,470

 
33,111

 
5,348

Expense reimbursements(A)
125

 
267

 
375

 
267

   Total
$
16,159

 
$
9,221

 
$
48,011

 
$
12,362

 
(A)
Included in General and Administrative Expenses in the Condensed Consolidated Statements of Income.
 
New Residential's board of directors approved a change in the computation of incentive compensation to exclude unrealized gains (or losses) on investments and debt (and any deferred tax impact thereof) as of June 30, 2014. The impact of this change on the six months ended June 30, 2014 was to reduce incentive compensation by $5.5 million.

See Notes 4, 5, 6, 7, 8, 11, 14 and 18 for a discussion of transactions with Nationstar. As of September 30, 2014, a total face amount of $412.8 million of New Residential’s Non-Agency RMBS portfolio and approximately $41.5 million of New Residential's Agency portfolio was serviced or master serviced by Nationstar. The total UPB of the loans underlying these Nationstar serviced Non-Agency RMBS was approximately $4.0 billion as of September 30, 2014. New Residential holds a limited right to cleanup call options with respect to certain securitization trusts master serviced by Nationstar with an aggregate UPB of underlying mortgage loans of approximately $99.3 billion, whereby, when the outstanding balance falls below a pre-determined threshold, it can effectively purchase the underlying mortgage loans by repaying all of the outstanding securitization financing at par, in exchange for a fee paid to Nationstar. As of September 30, 2014, $601.2 million UPB of New Residential's residential mortgage loans were being serviced by Nationstar. Subsequent to September 30, 2014, $111.8 million UPB of New Residential's residential mortgage loans has transferred to be serviced by Nationstar. As of September 30, 2014, $11.3 million UPB of REO was being serviced by Nationstar.
 
See Note 9 for a discussion of a transaction with Springleaf.