Quarterly report pursuant to Section 13 or 15(d)

OTHER INCOME, GENERAL AND ADMINISTRATIVE, OTHER ASSETS AND LIABILITIES

v3.19.1
OTHER INCOME, GENERAL AND ADMINISTRATIVE, OTHER ASSETS AND LIABILITIES
3 Months Ended
Mar. 31, 2019
Other Income Assets And Liabilities  
OTHER INCOME, GENERAL AND ADMINISTRATIVE, OTHER ASSETS AND LIABILITIES OTHER INCOME, GENERAL AND ADMINISTRATIVE, OTHER ASSETS AND LIABILITIES
 
Gain (loss) on settlement of investments, net is comprised of the following:
 
 
Three Months Ended  
 March 31,
 
 
2019
 
2018
Gain (loss) on sale of real estate securities, net
 
$
65,196

 
$
(29,227
)
Gain (loss) on sale of acquired residential mortgage loans, net
 
17,534

 
(14,651
)
Gain (loss) on settlement of derivatives
 
(93,076
)
 
37,363

Gain (loss) on liquidated residential mortgage loans
 
(996
)
 
(385
)
Gain (loss) on sale of REO
 
(1,725
)
 
(2,800
)
Gains on settlement of investments in excess MSRs and servicer advance investments
 

 
113,002

Other gains (losses)
 
(14,256
)
 

 
 
$
(27,323
)
 
$
103,302



Other income (loss), net, is comprised of the following:
 
 
Three Months Ended  
 March 31,
 
 
2019
 
2018
Unrealized gain (loss) on other ABS
 
$
6,679

 
$
(313
)
Unrealized gain (loss) on notes and bonds payable
 
(1,137
)
 

Unrealized gain (loss) on contingent consideration
 
(2,045
)
 

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

Other income (loss)
 
1,620

 
(5,051
)
 
 
$
12,673

 
$
7,538



General and Administrative Expenses is comprised of the following:
 
 
Three Months Ended  
 March 31,
 
 
2019
 
2018
Compensation and benefits expense
 
$
56,611

 
$

Legal and professional expense
 
13,292

 
11,910

Loan origination expense
 
10,269

 

Occupancy expense
 
4,179

 

Other(A)
 
14,589

 
8,097

 
 
$
98,940

 
$
20,007


(A)
Represents miscellaneous general and administrative expenses.

Other assets and liabilities are comprised of the following:
 
Other Assets
 
 
 
Accrued Expenses
and Other Liabilities
 
March 31, 2019
 
December 31, 2018
 
 
 
March 31, 2019
 
December 31, 2018
Margin receivable, net(A)
$
219,670

 
$
145,857

 
MSR purchase price holdback
 
$
100,304

 
$
100,593

Servicing fee receivables
124,695

 
105,563

 
Accounts payable
 
69,929

 
75,591

Due from servicers
110,940

 
95,261

 
Derivative liabilities (Note 10)
 
69,382

 
29,389

Principal and interest receivable
83,399

 
76,015

 
Interest payable
 
66,510

 
49,352

Equity investment(B)
74,249

 
74,323

 
Due to servicers
 
64,790

 
95,419

Other receivables
43,164

 
23,723

 
Contingent Consideration
 
42,887

 
40,842

Goodwill
24,645

 
24,645

 
Excess spread financing, at fair value
 
37,787

 
39,304

Receivable from government agency(C)
19,011

 
20,795

 
Operating lease liability
 
17,975

 

Intangible assets
18,866

 
18,708

 
Reserve for sales recourse
 
6,641

 
5,880

Prepaid expenses
18,786

 
29,165

 
Other liabilities
 
44,873

 
54,140

Operating lease right-of-use asset
17,975

 

 
 
 
$
521,078

 
$
490,510

Derivative assets (Note 10)
14,783

 
10,893

 
 
 


 


Ocwen common stock, at fair value
10,564

 
7,778

 
 
 
 
 
 
Other assets
75,595

 
55,682

 
 
 
 
 
 
 
$
856,342

 
$
688,408

 
 
 
 
 
 


(A)
Represents collateral posted primarily as a result of changes in fair value of our 1) real estate securities securing our repurchase agreements and 2) derivative instruments.
(B)
Represents an indirect equity investment in a commercial redevelopment project. The investment is accounted for at fair value based on the net asset value (“NAV”) of New Residential’s investment.
(C)
Represents claims receivable from the FHA on EBO and reverse mortgage loans for which foreclosure has been completed and for which New Residential has made or intends to make a claim on the FHA guarantee.

As reflected on the Condensed Consolidated Statements of Cash Flows, accretion and other amortization is comprised of the following:
 
 
Three Months Ended  
 March 31,
 
 
2019
 
2018
Accretion of servicer advances receivable discount and servicer advance investments
 
$
7,511

 
$
77,640

Accretion of excess mortgage servicing rights income
 
5,115

 
9,359

Accretion of net discount on securities and loans(A)
 
141,586

 
92,708

Amortization of deferred financing costs
 
(863
)
 
(1,874
)
Amortization of discount on notes and bonds payable
 
(455
)
 
(462
)
 
 
$
152,894

 
$
177,371


(A)
Includes accretion of the accretable yield on PCD loans.