XML 35 R24.htm IDEA: XBRL DOCUMENT
v3.19.2

Mortgage Servicing Rights, Net | 6 Months Ended
--- | ---
Jun. 30, 2019
Transfers And Servicing [Abstract] |
Mortgage Servicing Rights, Net |
(1 5) | Mortgage Servicing Rights, Net (“MSR”)
The changes in the carrying amount of MSRs for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
Mortgage Servicing Rights |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Beginning Balance |  | $ | 413,004 |  |  | $ | 386,953 |  |  | $ | 416,131 |  |  | $ | 399,349 |
Additions |  |  | 21,433 |  |  |  | 25,342 |  |  |  | 38,687 |  |  |  | 31,731 |
Purchases from an affiliate |  |  | 424 |  |  |  | 1,099 |  |  |  | 722 |  |  |  | 1,608 |
Amortization |  |  | (21,436 | ) |  |  | (20,011 | ) |  |  | (42,115 | ) |  |  | (39,305 | )
Ending Balance |  | $ | 413,425 |  |  | $ | 393,383 |  |  | $ | 413,425 |  |  | $ | 393,383 |
Valuation Allowance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | (6,044 | ) |  | $ | (5,427 | ) |  | $ | (4,322 | ) |  | $ | (6,723 | )
Decrease |  |  | (6,598 | ) |  |  | 4,084 |  |  |  | (8,320 | ) |  |  | 5,380 |
Ending Balance |  | $ | (12,642 | ) |  | $ | (1,343 | ) |  | $ | (12,642 | ) |  | $ | (1,343 | )
Net balance |  | $ | 400,783 |  |  | $ | 392,040 |  |  | $ | 400,783 |  |  | $ | 392,040 |
Servicing fees are included in “Management services, servicing fees and other” in Newmark’s unaudited condensed consolidated statements of operations and are as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Servicing fees |  | $ | 25,977 |  |  | $ | 26,092 |  |  | $ | 51,608 |  |  | $ | 51,224 |
Escrow interest and placement fees |  |  | 5,624 |  |  |  | 3,867 |  |  |  | 10,987 |  |  |  | 6,834 |
Ancillary fees |  |  | 4,131 |  |  |  | 2,374 |  |  |  | 7,315 |  |  |  | 3,201 |
Total servicing fees and escrow interest |  | $ | 35,732 |  |  | $ | 32,333 |  |  | $ | 69,910 |  |  | $ | 61,259 |
Newmark’s primary servicing portfolio at June 30, 2019 and December 31, 2018 was approximately $58.1 billion and $57.1 billion, respectively. Also, Newmark is the named special servicer for a number of commercial mortgage-backed securitizations. Upon certain specified events (such as, but not limited to, loan defaults and loans assumptions), the administration of the loan is transferred to Newmark. Newmark’s special servicing portfolio at June 30, 2019 and December 31, 2018 was $2.7 billion and $2.9 billion, respectively. The estimated fair value of the MSRs at June 30, 2019 and December 31, 2018 was $431.5 million and $451.9 million, respectively. Fair values are estimated using a valuation model that calculates the present value of the future net servicing cash flows. The cash flows assumptions used are based on assumptions Newmark believes market participants would use to value the portfolio. Significant assumptions include estimates of the cost of servicing per loan, discount rate, earnings rate on escrow deposits and prepayment speeds. The discount rates used in measuring fair value for the six months ended June 30, 2019 and the year ended December 31, 2018 were between 3.0% and 13.5% and varied based on investor type. An increase in discount rate of 100 bps or 200 bps would result in a decrease in fair value by $11.7 million and $22.8 million, respectively, at June 30, 2019 and by $12.4 million and $24.4 million, respectively, at December 31, 2018.

X
- Definition The entire disclosure for mortgage servicing rights. + References No definition available. + Details
Name: | nmrk_MortgageServicingRightsTextBlock
Namespace Prefix: | nmrk_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration