Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables)

v3.20.1
CONSOLIDATED VARIABLE INTEREST ENTITIES (Tables)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities The following table summarizes certain characteristics of the underlying residential mortgage loans, and related financing, in these securitizations:
 
 
Three Months Ended  
 March 31,
 
 
2020
 
2019
Residential mortgage loan UPB
 
$
14,932,876

 
$
9,399,416

Weighted average delinquency(A)
 
2.45
%
 
2.03
%
Net credit losses
 
$
13,898

 
$
3,562

Face amount of debt held by third parties(B)
 
$
12,907,495

 
$
8,306,631

 
 
 
 
 
Carrying value of bonds retained by New Residential(C) (D)
 
$
1,814,333

 
$
1,271,126

Cash flows received by New Residential on these bonds
 
$
79,250

 
$
62,845


(A)
Represents the percentage of the UPB that is 60+ days delinquent.
(B)
Excludes bonds retained by New Residential.
(C)
Includes bonds retained pursuant to required risk retention regulations.
(D)
Classified within Level 3 of the fair value hierarchy as the valuation is based on certain unobservable inputs including discount rate, prepayment rates and loss severity. See Note 12 for details on unobservable inputs.
The table below presents the carrying value and classification of the assets and liabilities of consolidated VIEs on New Residential’s consolidated balance sheets:
 
 
The Buyer
 
Shelter Joint Ventures
 
Residential Mortgage Loans
 
Consumer Loan SPVs
 
Total
March 31, 2020
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Servicer advance investments, at fair value
 
$
500,447

 
$

 
$

 
$

 
$
500,447

Residential mortgage loans, held-for-investment, at fair value
 

 

 
429,318

 

 
429,318

Consumer loans, held-for-investment, at fair value
 

 

 

 
774,607

 
774,607

Cash and cash equivalents
 
29,942

 
22,517

 

 

 
52,459

Restricted cash
 
4,808

 

 

 
8,825

 
13,633

Other assets
 
7

 
4,656

 
1,941

 
11,279

 
17,883

Total Assets
 
$
535,204

 
$
27,173

 
$
431,259

 
$
794,711

 
$
1,788,347

Liabilities
 
 
 
 
 
 
 
 
 
 
Notes and bonds payable(A)
 
$
415,036

 
$

 
$
272,293

 
$
771,232

 
$
1,458,561

Accrued expenses and other liabilities
 
1,581

 
4,481

 

 
3,885

 
9,947

Total Liabilities
 
$
416,617

 
$
4,481

 
$
272,293

 
$
775,117

 
$
1,468,508

March 31, 2019
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
Servicer advance investments, at fair value
 
$
674,607

 
$

 
$

 
$

 
$
674,607

Residential mortgage loans, held-for-investment, at fair value
 

 

 
429,229

 

 
429,229

Consumer loans, held-for-investment
 

 

 

 
981,931

 
981,931

Cash and cash equivalents
 
29,943

 
16,522

 

 

 
46,465

Restricted cash
 

 

 

 
9,899

 
9,899

Other assets
 
9,608

 
701

 

 
14,438

 
24,747

Total Assets
 
$
714,158

 
$
17,223

 
$
429,229

 
$
1,006,268

 
$
2,166,878

Liabilities
 


 


 


 


 

Notes and bonds payable(A)
 
$
514,246

 
$
2,225

 
$
377,382

 
$
973,158

 
$
1,867,011

Accrued expenses and other liabilities
 
2,343

 

 
2,635

 
4,106

 
9,084

Total Liabilities
 
$
516,589

 
$
2,225

 
$
380,017

 
$
977,264

 
$
1,876,095


(A)
The creditors of the VIEs do not have recourse to the general credit of New Residential, and the assets of the VIEs are not directly available to satisfy New Residential’s obligations.
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net
Others’ interests in the equity of New Residential’s consolidated subsidiaries is computed as follows:
 
March 31, 2020
 
December 31, 2019
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
Total consolidated equity
$
118,591

 
$
22,692

 
$
49,387

 
$
168,207

 
$
23,171

 
$
46,510

Others’ ownership interest
26.8
%
 
49.9
%
 
46.5
%
 
26.8
%
 
49.0
%
 
46.5
%
Others’ interest in equity of consolidated subsidiary
$
31,743

 
$
11,323

 
$
23,512

 
$
45,025

 
$
11,354

 
$
22,171


Others’ interests in the New Residential’s net income (loss) is computed as follows:
 
Three Months Ended March 31, 2020
 
Three Months Ended March 31, 2019
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
 
The Buyer(A)
 
Shelter Joint Ventures
 
Consumer Loan Companies
Net income
$
(42,015
)
 
$
2,571

 
$
(13,330
)
 
$
9,155

 
$
798

 
$
16,042

Others’ ownership interest as a percent of total
26.8
%
 
49.9
%
 
46.5
%
 
26.8
%
 
51.0
%
 
46.5
%
Others’ interest in net income of consolidated subsidiaries
$
(11,247
)
 
$
1,283

 
$
(6,198
)
 
$
2,451

 
$
407

 
$
7,460


(A)
As a result, New Residential owned 73.2% and 73.2% of the Buyer, on average during the three months ended March 31, 2020 and 2019, respectively. See Note 11 regarding the financing of Servicer Advance Investments.