XML 34 R18.htm IDEA: XBRL DOCUMENT
v3.19.1

Payables and Other Liabilities | 3 Months Ended
--- | ---
Mar. 31, 2019
Payables and Accruals [Abstract] |
Payables and Other Liabilities | 11. Payables and Other Liabilities Payables and other liabilities consist of the following:
| Successor
| March 31, 2019 |  | December 31, 2018
Loans subject to repurchase from Ginnie Mae | $ | 774 |  |  | $ | 266 |
Payables to servicing and subservicing investors | 483 |  |  | 494 |
Operating lease liability | 142 |  |  | — |
Payables to GSEs and securitized trusts | 57 |  |  | 105 |
MSR purchases payable including advances | 30 |  |  | 182 |
Other Liabilities | 489 |  |  | 496 |
Total payables and other liabilities | $ | 1,975 |  |  | $ | 1,543 |
Loans Subject to Repurchase from Ginnie Mae See Note 8, Other Assets, for a description of assets and liabilities related to loans subject to repurchase from Ginnie Mae. The amount as of March 31, 2019 includes $510 related to Pacific Union. Payables to Servicing and Subservicing Investors and Payables to GSEs and Securitized Trusts Payables to servicing and subservicing investors, GSEs and securitized trusts represent amounts due to investors, GSEs and securitized trusts in connection with loans serviced that are paid from collections of the underlying loans, insurance proceeds or proceeds from property disposal. Operating lease liabilities Operating lease liabilities are recognized as a result of adoption of ASC 842. See Note 7, Leases for additional information. MSR purchases payable including advances MSR purchases payable including advances represents the amounts owed to the seller in connection with the purchase of MSRs. Other Liabilities Other liabilities primarily include accrued bonus and payroll, accrued interest, accrued legal expenses, payable to insurance carriers and insurance cancellation reserves, derivative financial instruments, repurchase reserves, accounts payable and other accrued liabilities. Payables to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third-party investors on liquidated loans. See Note 9, Derivative Financial Instrument, for further details on derivative financial instruments.
| Successor |  |  | Predecessor
Repurchase Reserves | Three Months Ended March 31, 2019 |  |  | Three Months Ended March 31, 2018
Balance - beginning of period | $ | 8 |  |  |  | $ | 9 |
Provisions(1) | 8 |  |  |  | 1 |
Releases | — |  |  |  | (1 | )
Charge-offs | — |  |  |  | — |
Balance - end of period | $ | 16 |  |  |  | $ | 9 |
(1) | Provision for the three months ended March 31, 2019 is primarily due to repurchase reserve liability assumed in connection with the acquisition of Pacific Union. See Note 2, Acquisitions for further information.
The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser’s losses related to forward loans. Certain sale contracts and GSE standards require the Predecessor and subsequently the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties, such as the manner of origination, the nature and extent of underwriting standards. In the event of a breach of the representations and warranties, the Predecessor and subsequently the Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that the Predecessor and subsequently the Company refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. The Predecessor and the Company record a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against net gain on mortgage loans held for sale. A release of repurchase reserves is recorded when the Predecessor and Company’s assessment reveals that previously recorded reserves are no longer needed. A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, a GSE will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for Home Affordable Refinance Program (“HARP”) loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months. The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. Current loss rates have significantly declined attributable to stronger underwriting standards and due to the falloff of loans underwritten prior to mortgage loan crisis period prior to 2008. The Company believes its reserve balance as of March 31, 2019 is sufficient to cover loss exposure associated with repurchase contingencies.

X
- Definition The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19(a),20,24) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
Name: | us-gaap_AccountsPayableAndAccruedLiabilitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

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