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Acquisitions (Tables) | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Schedule of Business Acquisitions | The table below presents the calculation of aggregate purchase price:
Purchase Price |
Converted WMIH common shares in millions (prior to the 1-for-12 reverse stock split) | 394 |
Price per share, based on price of $1.398 for WMIH stock on July 31, 2018 | $ | 1.398 |
Purchase price from common stock issued | 551 |
Purchase price from cash payment | 1,226 |
Total purchase price | $ | 1,777 |
Schedule of Assets Acquired and Liabilities Assumed | The final allocation of the purchase price to the acquired assets and liabilities is as follows:
Final Estimated Fair Value of Net Assets Acquired |
Cash and cash equivalents | $ | 166 |
Restricted cash | 430 |
Mortgage servicing rights | 3,422 |
Advances and other receivables | 1,262 |
Reverse mortgage interests | 9,189 |
Mortgage loans held for sale | 1,514 |
Mortgage loans held for investment | 125 |
Property and equipment | 96 |
Other assets | 610 |
Fair value of assets acquired | 16,814 |
Unsecured senior notes | 1,830 |
Advance facilities | 551 |
Warehouse facilities | 2,701 |
Payables and accrued liabilities | 1,352 |
MSR related liabilities—nonrecourse | 1,065 |
Mortgage servicing liabilities | 123 |
Other nonrecourse debt | 7,583 |
Fair value of liabilities assumed | 15,205 |
Total fair value of net tangible assets acquired | 1,609 |
Intangible assets(1) | 103 |
Goodwill | 65 |
Purchase price | $ | 1,777 |
(1) | The following intangible assets were acquired in the Nationstar acquisition:
| Useful Life (Years) |  | Fair Value
Customer relationships (i) | 6 |  | $ | 61 |
Tradename (ii) | 5 |  | 8 |
Technology (ii) | 3-5 |  | 11 |
Internally developed software(iii) | 2 |  | 23 |
Total |  |  | $ | 103 |
(i) | The estimated fair values for customer relationships were measured using the excess earnings method.
(ii) | The estimated fair values for tradename and technology were measured using the relief-from-royalty method. This method assumes the tradename and technology have value to the extent the owner is relieved of the obligation to pay royalties for the benefits received from these assets.
(iii) | The estimated fair values for internally developed software were measured using the replacement cost method.
Final Estimated Fair Value of Net Assets Acquired: |
Cash and cash equivalents | $ | 37 |
Restricted cash | 2 |
Mortgage servicing rights | 271 |
Advances and other receivables | 84 |
Mortgage loans held for sale | 536 |
Mortgage loans held for investment | 1 |
Property and equipment | 8 |
Other assets | 483 |
Fair value of assets acquired | 1,422 |
Notes payable(1) | 294 |
Advance facilities | 13 |
Warehouse facilities | 393 |
Payables and other liabilities | 530 |
Other nonrecourse debt | 129 |
Fair value of liabilities assumed | 1,359 |
Total fair value of net tangible assets acquired | 63 |
Intangible assets: |
Customer relationships(2) | 13 |
Goodwill | 40 |
Final purchase price | $ | 116 |
(1) | Notes payable was subsequently paid off in February 2019 after the consummation of the acquisition.
(2) | The estimated fair values for customer relationships were measured using the excess earnings method and were determined to have a remaining useful life of 10 years.
Pro Forma Information | The following unaudited pro forma financial information presents the combined results of operations for the year ended December 31, 2018 as if the transaction had occurred on January 1, 2018:
| Year Ended December 31, 2018
| (unaudited)
Pro forma total revenues | $ | 1,790 |
Pro forma net income | $ | 16 |
The following unaudited pro forma financial information presents the combined results of operations for the year ended December 31, 2019, as if the acquisition had occurred on January 1, 2019.
| Year Ended December 31, 2019
| (unaudited)
Pro forma total revenues | $ | 2,026 |
Pro forma net income | $ | 273 |

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- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1486-128463 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116869197&loc=d3e4845-128472 + Details
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