Quarterly report pursuant to Section 13 or 15(d)

Condensed Consolidated Statements of Cash Flows (Unaudited)

v3.19.1
Condensed Consolidated Statements of Cash Flows (Unaudited)
$ in Thousands
3 Months Ended
Mar. 31, 2019
USD ($)
Mar. 31, 2018
USD ($)
Cash Flows From Operating Activities    
Net income (loss) $ 155,912 $ 614,364
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Change in fair value of investments in excess mortgage servicing rights (4,627) 45,691
Change in fair value of investments in excess mortgage servicing rights, equity method investees (2,612) (523)
Change in fair value of investments in mortgage servicing rights financing receivables 36,379 (271,076)
Change in fair value of servicer advance investments (7,903) 79,476
Change in fair value of residential mortgage loans, at fair value, and notes and bonds payable, at fair value (13,426) 0
(Gain) / loss on settlement of investments (net) 27,323 (103,302)
(Gain) / loss on sale of originated mortgage loans (net) (43,984) 0
Earnings from investments in consumer loans, equity method investees (4,311) (4,806)
Unrealized (gain) / loss on derivative instruments 23,767 (2,446)
Changes in fair value of contingent consideration 2,045 0
Unrealized (gain) / loss on other ABS (6,679) 313
(Gain) / loss on transfer of loans to REO (4,984) (4,170)
(Gain) / loss on transfer of loans to other assets 521 (55)
(Gain) / loss on Excess MSR recapture agreements (307) (2,905)
(Gain) / loss on Ocwen common stock (2,786) (5,772)
Accretion and other amortization (152,894) (177,371)
Other-than-temporary impairment 7,516 6,670
Valuation and loss provision on loans and real estate owned 5,280 19,007
Non-cash portions of servicing revenue, net 56,910 (74,666)
Non-cash directors’ compensation 400 420
Deferred tax provision 46,331 (9,056)
Changes in:    
Servicer advances receivable 241,531 189,207
Other assets (148,797) (19,593)
Due to affiliates (73,586) (68,669)
Accrued expenses and other liabilities (6,728) 25,590
Other operating cash flows:    
Interest received from excess mortgage servicing rights 5,327 9,702
Interest received from servicer advance investments 7,361 9,130
Interest received from Non-Agency RMBS 69,838 45,104
Interest received from residential mortgage loans 12,226 1,728
Interest received from PCD consumer loans, held-for-investment 8,329 7,190
Distributions of earnings from equity method investees 2,807 4,938
Purchases of residential mortgage loans, held-for-sale (1,328,148) (494,207)
Origination of residential mortgage loans, held-for-sale (2,010,029) 0
Proceeds from sales of purchased and originated residential mortgage loans, held-for-sale 2,727,071 659,559
Principal repayments from purchased residential mortgage loans, held-for-sale 73,982 32,738
Net cash provided by (used in) operating activities (300,393) 513,659
Cash Flows From Investing Activities    
Purchase of servicer advance investments (483,772) (853,672)
Purchase of MSRs, MSR financing receivables and servicer advances receivable (276,200)  
Purchase of Agency RMBS (6,971,839) (1,116,130)
Purchase of Non-Agency RMBS (249,520) (461,358)
Purchase of residential mortgage loans 0 (194)
Purchase of real estate owned and other assets (9,823) (4,160)
Purchase of investment in consumer loans, equity method investees (23,442) (83,227)
Draws on revolving consumer loans (15,241) (8,020)
Payments for settlement of derivatives (48,769) (32,487)
Return of investments in excess mortgage servicing rights 16,445 16,358
Principal repayments from servicer advance investments 529,616 752,663
Principal repayments from Agency RMBS 74,037 19,757
Principal repayments from Non-Agency RMBS 330,185 200,077
Principal repayments from residential mortgage loans 27,970 28,337
Proceeds from sale of residential mortgage loans 34,494 780
Principal repayments from consumer loans 68,948 62,805
Proceeds from sale of Agency RMBS 3,911,838 1,876,403
Proceeds from sale of Non-Agency RMBS 228,000 0
Proceeds from settlement of derivatives 36,362 77,165
Proceeds from sale of real estate owned 38,825 30,598
Net cash provided by (used in) investing activities (2,752,933) 216,242
Cash Flows From Financing Activities    
Repayments of repurchase agreements (40,803,763) (16,316,397)
Margin deposits under repurchase agreements and derivatives (841,807) (309,178)
Repayments of notes and bonds payable (2,210,352) (2,556,961)
Payment of deferred financing fees (115) (7,109)
Common stock dividends paid (184,552) (153,681)
Borrowings under repurchase agreements 43,688,820 15,286,068
Return of margin deposits under repurchase agreements and derivatives 701,370 321,626
Borrowings under notes and bonds payable 2,057,042 2,508,665
Issuance of common stock 752,112 482,696
Costs related to issuance of common stock (453) (442)
Noncontrolling interest in equity of consolidated subsidiaries - contributions 0 0
Noncontrolling interest in equity of consolidated subsidiaries - distributions (11,015) (18,317)
Purchase of noncontrolling interests 0 0
Net cash provided by (used in) financing activities 3,147,287 (763,030)
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash 93,961 (33,129)
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period 415,078 446,050
Cash, Cash Equivalents, and Restricted Cash, End of Period 509,039 412,921
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 194,241 124,748
Cash paid during the period for income taxes 79 335
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Dividends declared but not paid 207,715 168,068
Transfer from residential mortgage loans to real estate owned and other assets 29,058 18,228
Transfer from residential mortgage loans, held-for-investment to residential mortgage loans, held-for-sale 33,134 0
Real estate securities retained from loan securitizations 96,799 75,950
Residential mortgage loans subject to repurchase 140,135 0
Ocwen transaction (Note 5) - excess mortgage servicing rights 0 638,567
Ocwen transaction (Note 5) - servicer advance investments 0 3,175,891
Ocwen transaction (Note 5) - mortgage servicing rights financing receivables, at fair value 0 1,017,993
Shellpoint Acquisition    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
MSR purchase price holdback 0 0
Shellpoint Acquisition contingent consideration 0 0
Mortgage Servicing Rights and Servicer Advances    
Cash Flows From Investing Activities    
Purchase of MSRs, MSR financing receivables and servicer advances receivable (272,696) (371,165)
Supplemental Schedule of Non-Cash Investing and Financing Activities    
MSR purchase price holdback (289) 174
Agency RMBS    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Purchase of Agency and Non-Agency RMBS, settled after quarter end 206,638 1,116,948
Sale of investments, primarily Agency RMBS, settled after quarter end 7,049,723 1,083,558
Loans and Finance Receivables [Member]    
Cash Flows From Investing Activities    
Proceeds from sale of mortgage servicing rights financing receivables 6,913 0
Consumer Loans    
Other operating cash flows:    
Distributions of earnings from equity method investees 552 1,449
Cash Flows From Investing Activities    
Return of investments, equity method investees 13,967 79,248
Excess MSRs Investees    
Cash Flows From Investing Activities    
Return of investments, equity method investees 4,569 2,464
LoanCo    
Supplemental Schedule of Non-Cash Investing and Financing Activities    
Non-cash distributions from LoanCo $ 0 $ 12,613