Quarterly report pursuant to Section 13 or 15(d)

SEGMENT REPORTING - Segment Financial Information (Details)

v3.21.2
SEGMENT REPORTING - Segment Financial Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2020
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables $ 398,645 $ 450,859 $ 1,168,431 $ 1,390,042        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) (195,623) (415,339) (421,332) (1,731,378)        
Servicing revenue, net 203,022 35,520 747,099 (341,336)        
Interest income 190,633 169,780 593,342 622,224        
Gain on originated mortgage loans, held-for-sale, net 566,761 488,253 1,257,094 966,813        
Total revenues 960,416 693,553 2,597,535 1,247,701        
Interest expense 129,928 130,528 355,372 463,786        
G&A and other 593,931 367,864 1,435,317 1,026,023        
Total operating expenses 723,859 498,392 1,790,689 1,489,809        
Change in fair value of investments 11,112 111,082 1,224 (123,314)        
Gain (loss) on settlement of investments, net (98,317) (94,457) (188,919) (968,995)        
Other income (loss), net 59,266 3,681 79,696 (39,766)        
Total other income (loss) (27,939) 20,306 (107,999) (1,132,075)        
Impairment 6,378 10,735 (47,637) 133,670        
Income (Loss) Before Income Taxes 202,240 204,732 746,484 (1,507,853)        
Income tax expense (benefit) 31,559 100,812 128,741 (48,647)        
Net income (loss) 170,681 103,920 617,743 (1,459,206)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 9,001 11,640 28,448 34,118        
Dividends on preferred stock 15,533 14,359 44,249 39,938        
Net income (loss) attributable to common stockholders - basic 146,147 77,921 545,046 (1,533,262)        
Investments 33,060,681   33,060,681          
Cash and cash equivalents 1,366,678   1,366,678          
Restricted cash [1] 194,745   194,745     $ 135,619    
Other assets 6,952,543   6,952,543          
Goodwill 29,468   29,468     29,468    
Total assets 41,604,115   41,604,115     33,252,114    
Debt 31,550,926   31,550,926          
Other liabilities 3,426,076   3,426,076          
Total liabilities 34,977,002   34,977,002     27,822,430    
Total equity 6,627,113 5,428,631 6,627,113 5,428,631 $ 6,166,151 5,429,684 $ 5,388,972 $ 7,236,260
Noncontrolling interests in equity of consolidated subsidiaries [1] 71,023   71,023     108,668    
Total New Residential stockholders’ equity 6,556,090   6,556,090     $ 5,321,016    
Investments in equity method investees 103,956   103,956          
Origination                
Segment Reporting Information [Line Items]                
Investments 11,714,006   11,714,006          
Cash and cash equivalents 768,301   768,301          
Restricted cash 35,284   35,284          
Other assets 1,484,399   1,484,399          
Goodwill 11,836   11,836          
Total assets 14,013,826   14,013,826          
Debt 11,390,069   11,390,069          
Other liabilities 583,220   583,220          
Total liabilities 11,973,289   11,973,289          
Total equity 2,040,537   2,040,537          
Noncontrolling interests in equity of consolidated subsidiaries 16,134   16,134          
Total New Residential stockholders’ equity 2,024,403   2,024,403          
Investments in equity method investees 0   0          
Servicing                
Segment Reporting Information [Line Items]                
Servicing revenue, net 138,579 42,641 517,513 (352,064)        
Investments 4,848,688   4,848,688          
Cash and cash equivalents 102,825   102,825          
Restricted cash 87,969   87,969          
Other assets 2,582,560   2,582,560          
Goodwill 12,540   12,540          
Total assets 7,634,582   7,634,582          
Debt 3,201,575   3,201,575          
Other liabilities 2,389,688   2,389,688          
Total liabilities 5,591,263   5,591,263          
Total equity 2,043,319   2,043,319          
Noncontrolling interests in equity of consolidated subsidiaries 0   0          
Total New Residential stockholders’ equity 2,043,319   2,043,319          
Investments in equity method investees 0   0          
MSR Related Investments                
Segment Reporting Information [Line Items]                
Investments 3,017,963   3,017,963          
Cash and cash equivalents 321,924   321,924          
Restricted cash 29,525   29,525          
Other assets 2,072,971   2,072,971          
Goodwill 5,092   5,092          
Total assets 5,447,475   5,447,475          
Debt 3,779,105   3,779,105          
Other liabilities 108,326   108,326          
Total liabilities 3,887,431   3,887,431          
Total equity 1,560,044   1,560,044          
Noncontrolling interests in equity of consolidated subsidiaries 13,283   13,283          
Total New Residential stockholders’ equity 1,546,761   1,546,761          
Investments in equity method investees 103,956   103,956          
Origination and Servicing                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 398,645 450,859 1,168,431 1,390,042        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) (195,623) (415,339) (421,332) (1,731,378)        
Servicing revenue, net 203,022 35,520 747,099 (341,336)        
Interest income 63,507 45,288 158,394 105,200        
Gain on originated mortgage loans, held-for-sale, net 542,469 488,253 1,193,068 960,151        
Total revenues 808,998 569,061 2,098,561 724,015        
Interest expense 88,473 70,717 222,002 208,495        
G&A and other 534,727 325,506 1,273,338 876,881        
Total operating expenses 623,200 396,223 1,495,340 1,085,376        
Change in fair value of investments (7,675) 2,086 (18,780) (14,244)        
Gain (loss) on settlement of investments, net (2,284) (11,456) (16,099) (16,463)        
Other income (loss), net 42,205 10,026 58,537 10,315        
Total other income (loss) 32,246 656 23,658 (20,392)        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes 218,044 173,494 626,879 (381,753)        
Income tax expense (benefit) 20,825 93,030 85,336 15,724        
Net income (loss) 197,219 80,464 541,543 (397,477)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 2,752 7,452 8,985 10,498        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic 194,467 73,012 532,558 (407,975)        
Investments 19,580,657   19,580,657          
Cash and cash equivalents 1,193,050   1,193,050          
Restricted cash 152,778   152,778          
Other assets 6,139,930   6,139,930          
Goodwill 29,468   29,468          
Total assets 27,095,883   27,095,883          
Debt 18,370,749   18,370,749          
Other liabilities 3,081,234   3,081,234          
Total liabilities 21,451,983   21,451,983          
Total equity 5,643,900   5,643,900          
Noncontrolling interests in equity of consolidated subsidiaries 29,417   29,417          
Total New Residential stockholders’ equity 5,614,483   5,614,483          
Investments in equity method investees 103,956   103,956          
Residential Securities, Properties and Loans | Real Estate Securities                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 0 0 0 0        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net 0 0 0 0        
Interest income 52,489 61,034 240,299 278,702        
Gain on originated mortgage loans, held-for-sale, net 15,276 0 25,036 0        
Total revenues 67,765 61,034 265,335 278,702        
Interest expense 9,365 15,652 38,715 141,340        
G&A and other 1,753 930 3,943 8,128        
Total operating expenses 11,118 16,582 42,658 149,468        
Change in fair value of investments 50,927 50,752 (121,642) 3,682        
Gain (loss) on settlement of investments, net (130,066) (15,534) (234,692) (886,650)        
Other income (loss), net 0 1,723 (1,686) 1,707        
Total other income (loss) (79,139) 36,941 (358,020) (881,261)        
Impairment (2,370) (3,849) (5,020) 15,166        
Income (Loss) Before Income Taxes (20,122) 85,242 (130,323) (767,193)        
Income tax expense (benefit) 0 0 0 0        
Net income (loss) (20,122) 85,242 (130,323) (767,193)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 0 0 0 0        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic (20,122) 85,242 (130,323) (767,193)        
Investments 9,973,795   9,973,795          
Cash and cash equivalents 171,532   171,532          
Restricted cash 15,704   15,704          
Other assets 368,724   368,724          
Goodwill 0   0          
Total assets 10,529,755   10,529,755          
Debt 9,663,568   9,663,568          
Other liabilities (6,108)   (6,108)          
Total liabilities 9,657,460   9,657,460          
Total equity 872,295   872,295          
Noncontrolling interests in equity of consolidated subsidiaries 0   0          
Total New Residential stockholders’ equity 872,295   872,295          
Investments in equity method investees 0   0          
Residential Securities, Properties and Loans | Properties and Residential Mortgage Loans                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 0 0 0 0        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net 0 0 0 0        
Interest income 37,490 33,913 107,106 141,118        
Gain on originated mortgage loans, held-for-sale, net 9,016 0 38,990 6,662        
Total revenues 46,506 33,913 146,096 147,780        
Interest expense 19,680 19,326 58,419 67,570        
G&A and other 23,901 10,361 62,555 46,395        
Total operating expenses 43,581 29,687 120,974 113,965        
Change in fair value of investments (26,432) 56,940 154,984 (108,306)        
Gain (loss) on settlement of investments, net 34,033 (2,230) 62,220 (645)        
Other income (loss), net 17,641 (10,011) 22,221 (1,945)        
Total other income (loss) 25,242 44,699 239,425 (110,896)        
Impairment 8,748 14,584 (42,617) 118,504        
Income (Loss) Before Income Taxes 19,419 34,341 307,164 (195,585)        
Income tax expense (benefit) 10,735 7,783 43,326 (64,501)        
Net income (loss) 8,684 26,558 263,838 (131,084)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 0 0 0 0        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic 8,684 26,558 263,838 (131,084)        
Investments 2,958,434   2,958,434          
Cash and cash equivalents 53   53          
Restricted cash 1,457   1,457          
Other assets 131,996   131,996          
Goodwill 0   0          
Total assets 3,091,940   3,091,940          
Debt 2,392,505   2,392,505          
Other liabilities 182,653   182,653          
Total liabilities 2,575,158   2,575,158          
Total equity 516,782   516,782          
Noncontrolling interests in equity of consolidated subsidiaries 0   0          
Total New Residential stockholders’ equity 516,782   516,782          
Investments in equity method investees 0   0          
Consumer Loans                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 0 0 0 0        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net 0 0 0 0        
Interest income 22,708 29,545 73,104 97,204        
Gain on originated mortgage loans, held-for-sale, net 0 0 0 0        
Total revenues 22,708 29,545 73,104 97,204        
Interest expense 2,656 5,809 8,547 18,691        
G&A and other 2,553 3,361 8,501 10,947        
Total operating expenses 5,209 9,170 17,048 29,638        
Change in fair value of investments (5,708) 1,304 (13,338) (4,446)        
Gain (loss) on settlement of investments, net 0 (4,183) 0 (4,183)        
Other income (loss), net 415 (2,361) 575 (7,378)        
Total other income (loss) (5,293) (5,240) (12,763) (16,007)        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes 12,206 15,135 43,293 51,559        
Income tax expense (benefit) (1) (1) 79 130        
Net income (loss) 12,207 15,136 43,214 51,429        
Noncontrolling interests in income (loss) of consolidated subsidiaries 6,249 4,188 19,463 23,620        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic 5,958 10,948 23,751 27,809        
Investments 547,795   547,795          
Cash and cash equivalents 1,778   1,778          
Restricted cash 24,806   24,806          
Other assets 38,987   38,987          
Goodwill 0   0          
Total assets 613,366   613,366          
Debt 499,669   499,669          
Other liabilities 746   746          
Total liabilities 500,415   500,415          
Total equity 112,951   112,951          
Noncontrolling interests in equity of consolidated subsidiaries 41,606   41,606          
Total New Residential stockholders’ equity 71,345   71,345          
Investments in equity method investees 0   0          
Corporate                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 0 0 0 0        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net 0 0 0 0        
Interest income 14,439 0 14,439 0        
Gain on originated mortgage loans, held-for-sale, net 0 0 0 0        
Total revenues 14,439 0 14,439 0        
Interest expense 9,754 19,024 27,689 27,690        
G&A and other 30,997 27,706 86,980 83,672        
Total operating expenses 40,751 46,730 114,669 111,362        
Change in fair value of investments 0 0 0 0        
Gain (loss) on settlement of investments, net 0 (61,054) (348) (61,054)        
Other income (loss), net (995) 4,304 49 (42,465)        
Total other income (loss) (995) (56,750) (299) (103,519)        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes (27,307) (103,480) (100,529) (214,881)        
Income tax expense (benefit) 0 0 0 0        
Net income (loss) (27,307) (103,480) (100,529) (214,881)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 0 0 0 0        
Dividends on preferred stock 15,533 14,359 44,249 39,938        
Net income (loss) attributable to common stockholders - basic (42,840) (117,839) (144,778) (254,819)        
Investments 0   0          
Cash and cash equivalents 265   265          
Restricted cash 0   0          
Other assets 272,906   272,906          
Goodwill 0   0          
Total assets 273,171   273,171          
Debt 624,435   624,435          
Other liabilities 167,551   167,551          
Total liabilities 791,986   791,986          
Total equity (518,815)   (518,815)          
Noncontrolling interests in equity of consolidated subsidiaries 0   0          
Total New Residential stockholders’ equity (518,815)   (518,815)          
Investments in equity method investees 0   0          
Operating | Origination                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables (6,451) (3,767) (19,638) (6,843)        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net (6,451) (3,767) (19,638) (6,843)        
Interest income 54,851 17,407 108,965 43,105        
Gain on originated mortgage loans, held-for-sale, net 510,740 445,578 1,163,702 885,730        
Total revenues 559,140 459,218 1,253,029 921,992        
Interest expense 37,775 10,977 74,798 30,071        
G&A and other 344,198 136,086 734,675 338,760        
Total operating expenses 381,973 147,063 809,473 368,831        
Change in fair value of investments 0 0 0 0        
Gain (loss) on settlement of investments, net 0 0 0 0        
Other income (loss), net 368 123 565 497        
Total other income (loss) 368 123 565 497        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes 177,535 312,278 444,121 553,658        
Income tax expense (benefit) 32,322 71,304 87,738 138,304        
Net income (loss) 145,213 240,974 356,383 415,354        
Noncontrolling interests in income (loss) of consolidated subsidiaries 3,032 4,840 9,782 10,542        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic 142,181 236,134 346,601 404,812        
Operating | Servicing                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 257,520 232,599 696,143 432,960        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) (118,941) (189,958) (178,630) (785,024)        
Servicing revenue, net 138,579 42,641 517,513 (352,064)        
Interest income (2,729) 2,392 13,460 16,280        
Gain on originated mortgage loans, held-for-sale, net 28,292 18,979 53,103 43,026        
Total revenues 164,142 64,012 584,076 (292,758)        
Interest expense 43,199 51,012 130,191 102,319        
G&A and other 102,602 109,147 280,165 240,175        
Total operating expenses 145,801 160,159 410,356 342,494        
Change in fair value of investments 0 0 0 0        
Gain (loss) on settlement of investments, net (989) (3,873) (31,972) (3,873)        
Other income (loss), net (11) 1,563 1,081 (1,716)        
Total other income (loss) (1,000) (2,310) (30,891) (5,589)        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes 17,341 (98,457) 142,829 (640,841)        
Income tax expense (benefit) (3,125) 16,446 14,804 (67,019)        
Net income (loss) 20,466 (114,903) 128,025 (573,822)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 0 0 0 0        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic 20,466 (114,903) 128,025 (573,822)        
Operating | MSR Related Investments                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 147,576 222,027 491,926 963,925        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) (76,682) (225,381) (242,702) (946,354)        
Servicing revenue, net 70,894 (3,354) 249,224 17,571        
Interest income 11,385 25,489 35,969 45,815        
Gain on originated mortgage loans, held-for-sale, net (44,235) (1,332) (109,127) 5,293        
Total revenues 38,044 20,803 176,066 68,679        
Interest expense 7,499 8,728 17,013 76,105        
G&A and other 87,927 80,273 258,498 297,946        
Total operating expenses 95,426 89,001 275,511 374,051        
Change in fair value of investments (7,675) 2,086 (18,780) (14,244)        
Gain (loss) on settlement of investments, net (1,295) (7,583) 15,873 (12,590)        
Other income (loss), net 41,848 8,340 56,891 11,534        
Total other income (loss) 32,878 2,843 53,984 (15,300)        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes (24,504) (65,355) (45,461) (320,672)        
Income tax expense (benefit) (8,372) 5,280 (17,206) (55,561)        
Net income (loss) (16,132) (70,635) (28,255) (265,111)        
Noncontrolling interests in income (loss) of consolidated subsidiaries (280) 2,612 (797) (44)        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic (15,852) (73,247) (27,458) (265,067)        
Eliminations | Origination and Servicing                
Segment Reporting Information [Line Items]                
Servicing fee revenue, net and interest income from MSRs and MSR financing receivables 0 0 0 0        
Change in fair value of MSRs and MSR financing receivables (includes realization of cash flows of $(287,318), $(509,624), $(924,766) and $(1,135,515), respectively) 0 0 0 0        
Servicing revenue, net 0 0 0 0        
Interest income 0 0 0 0        
Gain on originated mortgage loans, held-for-sale, net (47,672) (25,028) (85,390) (26,102)        
Total revenues (47,672) (25,028) (85,390) (26,102)        
Interest expense 0 0 0 0        
G&A and other 0 0 0 0        
Total operating expenses 0 0 0 0        
Change in fair value of investments 0 0 0 0        
Gain (loss) on settlement of investments, net 0 0 0 0        
Other income (loss), net 0 0 0 0        
Total other income (loss) 0 0 0 0        
Impairment 0 0 0 0        
Income (Loss) Before Income Taxes (47,672) (25,028) (85,390) (26,102)        
Income tax expense (benefit) 0 0 0 0        
Net income (loss) (47,672) (25,028) (85,390) (26,102)        
Noncontrolling interests in income (loss) of consolidated subsidiaries 0 0 0 0        
Dividends on preferred stock 0 0 0 0        
Net income (loss) attributable to common stockholders - basic $ (47,672) $ (25,028) $ (85,390) $ (26,102)        
[1] The Company's Consolidated Balance Sheets include assets of consolidated variable interest entities (“VIEs”) that can only be used to settle obligations and liabilities of the VIE for which creditors do not have recourse to the primary beneficiary (New Residential). As of September 30, 2021, and December 31, 2020, total assets of consolidated VIEs were $3.1 billion and $2.7 billion, respectively, and total liabilities of consolidated VIEs were $2.4 billion and $2.1 billion, respectively. See Note 13 for further details.