Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING (Tables)

v3.21.2
SEGMENT REPORTING (Tables)
9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Summary of Segment Financial Data The following tables summarize segment financial information, which in total reconciles to the same data for New Residential as a whole:
Origination and Servicing Residential Securities, Properties and Loans
Origination Servicing MSR Related Investments
Elimination(A)
Total Servicing and Origination Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Corporate Total
Three Months Ended September 30, 2021
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ (6,451) $ 257,520  $ 147,576  $ —  $ 398,645  $ —  $ —  $ —  $ —  $ 398,645 
Change in fair value of MSRs and MSR financing receivables —  (118,941) (76,682) —  (195,623) —  —  —  —  (195,623)
Servicing revenue, net (6,451) 138,579  70,894  —  203,022  —  —  —  —  203,022 
Interest income 54,851  (2,729) 11,385  —  63,507  52,489  37,490  22,708  14,439  190,633 
Gain on originated mortgage loans, held-for-sale, net 510,740  28,292  (44,235) 47,672  542,469  15,276  9,016  —  —  566,761 
Total revenues 559,140  164,142  38,044  47,672  808,998  67,765  46,506  22,708  14,439  960,416 
Interest expense 37,775  43,199  7,499  —  88,473  9,365  19,680  2,656  9,754  129,928 
G&A and other 344,198  102,602  87,927  —  534,727  1,753  23,901  2,553  30,997  593,931 
Total operating expenses 381,973  145,801  95,426  —  623,200  11,118  43,581  5,209  40,751  723,859 
Change in fair value of investments —  —  (7,675) —  (7,675) 50,927  (26,432) (5,708) —  11,112 
Gain (loss) on settlement of investments, net —  (989) (1,295) —  (2,284) (130,066) 34,033  —  —  (98,317)
Other income (loss), net 368  (11) 41,848  —  42,205  —  17,641  415  (995) 59,266 
Total other income (loss) 368  (1,000) 32,878  —  32,246  (79,139) 25,242  (5,293) (995) (27,939)
Impairment —  —  —  —  —  (2,370) 8,748  —  —  6,378 
Income (loss) before income taxes 177,535  17,341  (24,504) 47,672  218,044  (20,122) 19,419  12,206  (27,307) 202,240 
Income tax expense (benefit) 32,322  (3,125) (8,372) —  20,825  —  10,735  (1) —  31,559 
Net income (loss) 145,213  20,466  (16,132) 47,672  197,219  (20,122) 8,684  12,207  (27,307) 170,681 
Noncontrolling interests in income (loss) of consolidated subsidiaries 3,032  —  (280) —  2,752  —  —  6,249  —  9,001 
Dividends on preferred stock —  —  —  —  —  —  —  —  15,533  15,533 
Net income (loss) attributable to common stockholders $ 142,181  $ 20,466  $ (15,852) $ 47,672  $ 194,467  $ (20,122) $ 8,684  $ 5,958  $ (42,840) $ 146,147 
Origination and Servicing Residential Securities, Properties and Loans
Origination Servicing MSR Related Investments
Elimination(A)
Total Servicing and Origination Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Corporate Total
Nine months ended September 30, 2021
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ (19,638) $ 696,143  $ 491,926  $ —  $ 1,168,431  $ —  $ —  $ —  $ —  $ 1,168,431 
Change in fair value of MSRs and MSR financing receivables —  (178,630) (242,702) —  (421,332) —  —  —  —  (421,332)
Servicing revenue, net (19,638) 517,513  249,224  —  747,099  —  —  —  —  747,099 
Interest income 108,965  13,460  35,969  —  158,394  240,299  107,106  73,104  14,439  593,342 
Gain on originated mortgage loans, held-for-sale, net 1,163,702  53,103  (109,127) 85,390  1,193,068  25,036  38,990  —  —  1,257,094 
Total revenues 1,253,029  584,076  176,066  85,390  2,098,561  265,335  146,096  73,104  14,439  2,597,535 
Interest expense 74,798  130,191  17,013  —  222,002  38,715  58,419  8,547  27,689  355,372 
G&A and other 734,675  280,165  258,498  —  1,273,338  3,943  62,555  8,501  86,980  1,435,317 
Total operating expenses 809,473  410,356  275,511  —  1,495,340  42,658  120,974  17,048  114,669  1,790,689 
Change in fair value of investments —  —  (18,780) —  (18,780) (121,642) 154,984  (13,338) —  1,224 
Gain (loss) on settlement of investments, net —  (31,972) 15,873  —  (16,099) (234,692) 62,220  —  (348) (188,919)
Other income (loss), net 565  1,081  56,891  —  58,537  (1,686) 22,221  575  49  79,696 
Total other income (loss) 565  (30,891) 53,984  —  23,658  (358,020) 239,425  (12,763) (299) (107,999)
Impairment —  —  —  —  —  (5,020) (42,617) —  —  (47,637)
Income (loss) before income taxes 444,121  142,829  (45,461) 85,390  626,879  (130,323) 307,164  43,293  (100,529) 746,484 
Income tax expense (benefit) 87,738  14,804  (17,206) —  85,336  —  43,326  79  —  128,741 
Net income (loss) 356,383  128,025  (28,255) 85,390  541,543  (130,323) 263,838  43,214  (100,529) 617,743 
Noncontrolling interests in income (loss) of consolidated subsidiaries 9,782  —  (797) —  8,985  —  —  19,463  —  28,448 
Dividends on preferred stock —  —  —  —  —  —  —  —  44,249  44,249 
Net income (loss) attributable to common stockholders $ 346,601  $ 128,025  $ (27,458) $ 85,390  $ 532,558  $ (130,323) $ 263,838  $ 23,751  $ (144,778) $ 545,046 
Origination and Servicing Residential Securities, Properties and Loans
Origination Servicing MSR Related Investments Total Servicing and Origination Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Corporate Total
September 30, 2021
Investments $ 11,714,006  $ 4,848,688  $ 3,017,963  $ 19,580,657  $ 9,973,795  $ 2,958,434  $ 547,795  $ —  $ 33,060,681 
Cash and cash equivalents 768,301  102,825  321,924  1,193,050  171,532  53  1,778  265  1,366,678 
Restricted cash 35,284  87,969  29,525  152,778  15,704  1,457  24,806  —  194,745 
Other assets 1,484,399  2,582,560  2,072,971  6,139,930  368,724  131,996  38,987  272,906  6,952,543 
Goodwill 11,836  12,540  5,092  29,468  —  —  —  —  29,468 
Total assets $ 14,013,826  $ 7,634,582  $ 5,447,475  $ 27,095,883  $ 10,529,755  $ 3,091,940  $ 613,366  $ 273,171  $ 41,604,115 
Debt $ 11,390,069  $ 3,201,575  $ 3,779,105  $ 18,370,749  $ 9,663,568  $ 2,392,505  $ 499,669  $ 624,435  $ 31,550,926 
Other liabilities 583,220  2,389,688  108,326  3,081,234  (6,108) 182,653  746  167,551  3,426,076 
Total liabilities 11,973,289  5,591,263  3,887,431  21,451,983  9,657,460  2,575,158  500,415  791,986  34,977,002 
Total equity 2,040,537  2,043,319  1,560,044  5,643,900  872,295  516,782  112,951  (518,815) 6,627,113 
Noncontrolling interests in equity of consolidated subsidiaries 16,134  —  13,283  29,417  —  —  41,606  —  71,023 
Total New Residential stockholders’ equity $ 2,024,403  $ 2,043,319  $ 1,546,761  $ 5,614,483  $ 872,295  $ 516,782  $ 71,345  $ (518,815) $ 6,556,090 
Investments in equity method investees $ —  $ —  $ 103,956  $ 103,956  $ —  $ —  $ —  $ —  $ 103,956 

Origination and Servicing Residential Securities, Properties and Loans
Origination Servicing MSR Related Investments
Elimination(A)
Total Servicing and Origination Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Corporate Total
Three Months Ended September 30, 2020
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ (3,767) $ 232,599  $ 222,027  $ —  $ 450,859  $ —  $ —  $ —  $ —  $ 450,859 
Change in fair value of MSRs and MSR financing receivables —  (189,958) (225,381) —  (415,339) —  —  —  —  (415,339)
Servicing revenue, net (3,767) 42,641  (3,354) —  35,520  —  —  —  —  35,520 
Interest income 17,407  2,392  25,489  —  45,288  61,034  33,913  29,545  —  169,780 
Gain on originated mortgage loans, held-for-sale, net 445,578  18,979  (1,332) 25,028  488,253  —  —  —  —  488,253 
Total revenues 459,218  64,012  20,803  25,028  569,061  61,034  33,913  29,545  —  693,553 
Interest expense 10,977  51,012  8,728  —  70,717  15,652  19,326  5,809  19,024  130,528 
G&A and other 136,086  109,147  80,273  —  325,506  930  10,361  3,361  27,706  367,864 
Total operating expenses 147,063  160,159  89,001  —  396,223  16,582  29,687  9,170  46,730  498,392 
Change in fair value of investments —  —  2,086  —  2,086  50,752  56,940  1,304  —  111,082 
Gain (loss) on settlement of investments, net —  (3,873) (7,583) —  (11,456) (15,534) (2,230) (4,183) (61,054) (94,457)
Other income (loss), net 123  1,563  8,340  —  10,026  1,723  (10,011) (2,361) 4,304  3,681 
Total other income (loss) 123  (2,310) 2,843  —  656  36,941  44,699  (5,240) (56,750) 20,306 
Impairment —  —  —  —  —  (3,849) 14,584  —  —  10,735 
Income (loss) before income taxes 312,278  (98,457) (65,355) 25,028  173,494  85,242  34,341  15,135  (103,480) 204,732 
Income tax expense (benefit) 71,304  16,446  5,280  —  93,030  —  7,783  (1) —  100,812 
Net income (loss) 240,974  (114,903) (70,635) 25,028  80,464  85,242  26,558  15,136  (103,480) 103,920 
Noncontrolling interests in income (loss) of consolidated subsidiaries 4,840  —  2,612  —  7,452  —  —  4,188  —  11,640 
Dividends on preferred stock —  —  —  —  —  —  —  —  14,359  14,359 
Net income (loss) attributable to common stockholders $ 236,134  $ (114,903) $ (73,247) $ 25,028  $ 73,012  $ 85,242  $ 26,558  $ 10,948  $ (117,839) $ 77,921 
Origination and Servicing Residential Securities, Properties and Loans
Origination Servicing MSR Related Investments
Elimination(A)
Total Servicing and Origination Real Estate Securities Properties and Residential Mortgage Loans Consumer Loans Corporate Total
Nine Months Ended September 30, 2020
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ (6,843) $ 432,960  $ 963,925  $ —  $ 1,390,042  $ —  $ —  $ —  $ —  $ 1,390,042 
Change in fair value of MSRs and MSR financing receivables —  (785,024) (946,354) —  (1,731,378) —  —  —  —  (1,731,378)
Servicing revenue, net (6,843) (352,064) 17,571  —  (341,336) —  —  —  —  (341,336)
Interest income 43,105  16,280  45,815  —  105,200  278,702  141,118  97,204  —  622,224 
Gain on originated mortgage loans, held-for-sale, net 885,730  43,026  5,293  26,102  960,151  —  6,662  —  —  966,813 
Total revenues 921,992  (292,758) 68,679  26,102  724,015  278,702  147,780  97,204  —  1,247,701 
Interest expense 30,071  102,319  76,105  —  208,495  141,340  67,570  18,691  27,690  463,786 
G&A and other 338,760  240,175  297,946  —  876,881  8,128  46,395  10,947  83,672  1,026,023 
Total operating expenses 368,831  342,494  374,051  —  1,085,376  149,468  113,965  29,638  111,362  1,489,809 
Change in fair value of investments —  —  (14,244) —  (14,244) 3,682  (108,306) (4,446) —  (123,314)
Gain (loss) on settlement of investments, net —  (3,873) (12,590) —  (16,463) (886,650) (645) (4,183) (61,054) (968,995)
Other income (loss), net 497  (1,716) 11,534  —  10,315  1,707  (1,945) (7,378) (42,465) (39,766)
Total other income (loss) 497  (5,589) (15,300) —  (20,392) (881,261) (110,896) (16,007) (103,519) (1,132,075)
Impairment —  —  —  —  —  15,166  118,504  —  —  133,670 
Income (loss) before income taxes 553,658  (640,841) (320,672) 26,102  (381,753) (767,193) (195,585) 51,559  (214,881) (1,507,853)
Income tax expense (benefit) 138,304  (67,019) (55,561) —  15,724  —  (64,501) 130  —  (48,647)
Net income (loss) 415,354  (573,822) (265,111) 26,102  (397,477) (767,193) (131,084) 51,429  (214,881) (1,459,206)
Noncontrolling interests in income (loss) of consolidated subsidiaries 10,542  —  (44) —  10,498  —  —  23,620  —  34,118 
Dividends on preferred stock —  —  —  —  —  —  —  —  39,938  39,938 
Net income (loss) attributable to common stockholders $ 404,812  $ (573,822) $ (265,067) $ 26,102  $ (407,975) $ (767,193) $ (131,084) $ 27,809  $ (254,819) $ (1,533,262)
(A)Elimination of intercompany transactions primarily relate to loan sales.

Servicing Segment Revenues

The table below summarizes the components of servicing segment revenues:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021 2020 2021 2020
Base servicing
MSR assets $ 174,220  $ 172,906  $ 477,020  $ 258,311 
Residential whole loans 11,281  4,729  13,518  10,938 
Third party 24,245  23,858  77,051  83,468 
209,746  201,493  567,589  352,717 
Other fees
Ancillary and other fees(A)
47,774  31,106  128,554  80,243 
Change in fair value due to:
Realization of cash flows (207,184) (253,670) (610,433) (539,264)
Change in valuation inputs and assumptions and other 88,243  63,712  431,803  (245,760)
Total servicing fees
$ 138,579  $ 42,641  $ 517,513  $ (352,064)
Servicing Data (period end) (in millions)
UPB - MSR assets $ 385,166  $ 199,839  $ 385,166  $ 199,839 
UPB - Residential whole loans 14,898  10,233  14,898  10,233 
UPB - Third party 75,768  77,131  75,768  77,131 
(A)Includes incentive, boarding and other fees.