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Indebtedness | 6 Months Ended
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Jun. 30, 2020
Debt Disclosure [Abstract] |
Indebtedness | 9. Indebtedness Notes Payable
|  |  |  |  |  |  |  |  |  | June 30, 2020 |  |  |  | December 31, 2019 |  |
Advance Facilities |  | Interest Rate |  | Maturity Date |  | Collateral |  | Capacity Amount |  | Outstanding |  | Collateral Pledged |  | Outstanding |  | Collateral pledged
$875 advance facility(1) |  | CP+2.5% to 6.5% |  | April 2021 |  | Servicing advance receivables |  | $ | 875 |  |  | $ | 193 |  |  | $ | 220 |  |  | $ | 37 |  |  | $ | 88 |
$425 advance facility(2) |  | LIBOR+2.8% to 6.5% |  | October 2021 |  | Servicing advance receivables |  | 425 |  |  | 211 |  |  | 273 |  |  | 224 |  |  | 285 |
$250 advance facility(3) |  | LIBOR+1.5% to 2.6% |  | December 2020 |  | Servicing advance receivables |  | 250 |  |  | — |  |  | — |  |  | 98 |  |  | 167 |
$200 advance facility |  | LIBOR+2.5% |  | January 2021 |  | Servicing advance receivables |  | 200 |  |  | 76 |  |  | 106 |  |  | 63 |  |  | 125 |
Advance facilities principal amount |  |  |  |  |  |  |  |  |  | 480 |  |  | $ | 599 |  |  | 422 |  |  | $ | 665 |
Unamortized debt issuance costs |  |  |  |  |  |  |  |  |  | (5) |  |  |  |  | — |  |  |
Advance facilities, net |  |  |  |  |  |  |  |  |  | $ | 475 |  |  |  |  | $ | 422 |  |  |
(1)The capacity amount for this advance facility increased from $125 to $875 in April 2020. (2)The capacity amount for this advance facility increased from $325 to $425 in April 2020. (3)This advance facility was terminated and transferred to another advance facility in April 2020.
|  |  |  |  |  |  |  |  |  | June 30, 2020 |  |  |  | December 31, 2019 |  |
Warehouse Facilities |  | Interest Rate |  | Maturity Date |  | Collateral |  | Capacity Amount |  | Outstanding |  | Collateral pledged |  | Outstanding |  | Collateral pledged
$1,500 warehouse facility |  | LIBOR+1.7% |  | June 2021 |  | Mortgage loans or MBS |  | $ | 1,500 |  |  | $ | 669 |  |  | $ | 637 |  |  | $ | 759 |  |  | $ | 733 |
$1,200 warehouse facility |  | LIBOR+1.5% to 3.0% |  | November 2020 |  | Mortgage loans or MBS |  | 1,200 |  |  | 568 |  |  | 606 |  |  | 683 |  |  | 724 |
$800 warehouse facility(1) |  | LIBOR+2.1% to 3.8% |  | April 2021 |  | Mortgage loans or MBS |  | 800 |  |  | 642 |  |  | 700 |  |  | 589 |  |  | 656 |
$750 warehouse facility |  | LIBOR+1.4% to 2.8% |  | September 2020 |  | Mortgage loans or MBS |  | 750 |  |  | 572 |  |  | 583 |  |  | 411 |  |  | 425 |
$700 warehouse facility |  | LIBOR+1.3% to 2.2% |  | November 2020 |  | Mortgage loans or MBS |  | 700 |  |  | 624 |  |  | 644 |  |  | 469 |  |  | 488 |
$600 warehouse facility |  | LIBOR+2.2% |  | February 2021 |  | Mortgage loans or MBS |  | 600 |  |  | 233 |  |  | 278 |  |  | 174 |  |  | 202 |
$500 warehouse facility |  | LIBOR+2.5% to 4.0% |  | May 2021 |  | Mortgage loans or MBS |  | 500 |  |  | — |  |  | 1 |  |  | 336 |  |  | 349 |
$250 warehouse facility(2) |  | LIBOR+1.4% to 2.3% |  | September 2020 |  | Mortgage loans or MBS |  | 250 |  |  | — |  |  | — |  |  | 762 |  |  | 783 |
$200 warehouse facility |  | LIBOR+1.4% |  | January 2021 |  | Mortgage loans or MBS |  | 200 |  |  | 175 |  |  | 175 |  |  | 136 |  |  | 136 |
$200 warehouse facility |  | LIBOR+2.5% |  | May 2021 |  | Mortgage loans or MBS |  | 200 |  |  | 50 |  |  | 74 |  |  | 54 |  |  | 78 |
$200 warehouse facility |  | LIBOR+1.8% |  | April 2021 |  | Mortgage loans or MBS |  | 200 |  |  | 19 |  |  | 19 |  |  | 27 |  |  | 27 |
$200 warehouse facility |  | LIBOR+1.3% |  | October 2020 |  | Mortgage loans or MBS |  | 200 |  |  | — |  |  | — |  |  | — |  |  | — |
$50 warehouse facility |  | LIBOR+1.8% to 4.8% |  | April 2021 |  | Mortgage loans or MBS |  | 50 |  |  | 31 |  |  | 36 |  |  | 11 |  |  | 15 |
$40 warehouse facility |  | LIBOR+3.3% |  | September 2020 |  | Mortgage loans or MBS |  | 40 |  |  | 4 |  |  | 4 |  |  | 5 |  |  | 6 |
Warehouse facilities principal amount |  |  |  |  |  |  |  |  |  | 3,587 |  |  | 3,757 |  |  | 4,416 |  |  | 4,622 |
MSR Facility |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
$450 warehouse facility(3) |  | LIBOR+5.1% |  | May 2021 |  | MSR |  | 450 |  |  | 300 |  |  | 628 |  |  | 150 |  |  | 945 |
$400 warehouse facility |  | LIBOR+2.3% |  | December 2020 |  | MSR |  | 400 |  |  | 75 |  |  | 176 |  |  | — |  |  | 200 |
$150 warehouse facility(1) |  | LIBOR+3.8% |  | April 2021 |  | MSR |  | 150 |  |  | 40 |  |  | 117 |  |  | — |  |  | 130 |
$50 warehouse facility |  | LIBOR+2.8% |  | August 2020 |  | MSR |  | 50 |  |  | 30 |  |  | 87 |  |  | 10 |  |  | 84 |
MSR facilities principal amount |  |  |  |  |  |  |  |  |  | 445 |  |  | 1,008 |  |  | 160 |  |  | 1,359 |
Warehouse and MSR facilities principal amount |  |  |  |  |  |  |  |  |  | 4,032 |  |  | $ | 4,765 |  |  | 4,576 |  |  | $ | 5,981 |
Unamortized debt issuance costs |  |  |  |  |  |  |  |  |  | (1) |  |  |  |  | (1) |  |  |
Warehouse facilities, net |  |  |  |  |  |  |  |  |  | $ | 4,031 |  |  |  |  | $ | 4,575 |  |  |
Pledged Collateral: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage loans held for sale |  |  |  |  |  |  |  |  |  | $ | 2,963 |  |  | $ | 3,016 |  |  | $ | 3,826 |  |  | $ | 3,931 |
Reverse mortgage interests |  |  |  |  |  |  |  |  |  | 624 |  |  | 741 |  |  | 590 |  |  | 691 |
MSR |  |  |  |  |  |  |  |  |  | 445 |  |  | 1,008 |  |  | 160 |  |  | 1,359 |
(1)Total capacity amount for this facility is $800 of which $150 is a sublimit for MSR financing. (2)The capacity amount for this warehouse facility decreased from $1,000 to $250 in May 2020. (3)The capacity amount for this MSR facility increased from $400 to $450 in May 2020. Unsecured Senior Notes Unsecured senior notes consist of the following:
Unsecured senior notes | June 30, 2020 |  | December 31, 2019
$950 face value, 8.125% interest rate payable semi-annually, due July 2023 | $ | 950 |  |  | $ | 950 |
$750 face value, 9.125% interest rate payable semi-annually, due July 2026 | 750 |  |  | 750 |
$600 face value, 6.000% interest rate payable semi-annually, due January 2027(1) | 600 |  |  | — |
$600 face value, 6.500% interest rate payable semi-annually, due July 2021(2) | — |  |  | 492 |
$300 face value, 6.500% interest rate payable semi-annually, due June 2022(2) | — |  |  | 206 |
Unsecured senior notes principal amount | 2,300 |  |  | 2,398 |
Unamortized debt issuance costs, premium and discount | (39) |  |  | (32) |
Unsecured senior notes, net | $ | 2,261 |  |  | $ | 2,366 |
(1)On January 16, 2020, the Company completed an offering of $600 aggregate principal amount of 6.000% Senior Notes due 2027 (the “2027 Notes”). (2)This note was redeemed in full on February 15, 2020 using the net proceeds of the 2027 Notes offering, together with cash on hand. The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio. The incurrence-based covenants limit the issuer(s) and restricted subsidiaries ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the applicable indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees. The indentures provide that on or before certain fixed dates, the Company may redeem up to 40% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased or redeemed during the three months ended June 30, 2020. During the six months ended June 30, 2020, the Company repaid $100 in principal of outstanding notes. Additionally, the Company redeemed $598 in principal of outstanding notes during the six months ended June 30, 2020, resulting in a gain of $1. No notes were repurchased or redeemed during the three and six months ended June 30, 2019. As of June 30, 2020, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31, |  | Amount
2020 |  | $ | — |
2021 |  | — |
2022 |  | — |
2023 |  | 950 |
2024 |  | — |
Thereafter |  | 1,350 |
Total unsecured senior notes principal amount |  | $ | 2,300 |
Other Nonrecourse Debt Other nonrecourse debt consists of the following:
|  |  |  |  |  |  |  |  | June 30, 2020 |  | December 31, 2019
Other nonrecourse debt | Issue Date |  | Maturity Date |  | Class of Note |  | Collateral Amount |  | Outstanding |  | Outstanding
Participating interest financing(1) | — |  | — |  | — |  | $ | — |  |  | $ | 3,875 |  |  | $ | 4,284 |
Securitization of nonperforming HECM loans |  |  |  |  |  |  |  |  |  |  |
Trust 2019-2 | November 2019 |  | November 2029 |  | A, M1, M2, M3, M4, M5 |  | 287 |  |  | 274 |  |  | 333 |
Trust 2019-1 | June 2019 |  | June 2029 |  | A, M1, M2, M3, M4, M5 |  | 264 |  |  | 244 |  |  | 302 |
Trust 2018-3 | November 2018 |  | November 2028 |  | A, M1, M2, M3, M4, M5 |  | 200 |  |  | 179 |  |  | 209 |
Trust 2018-2 | July 2018 |  | July 2028 |  | A, M1, M2, M3, M4, M5 |  | 149 |  |  | 127 |  |  | 148 |
Other nonrecourse debt principal amount |  |  |  |  |  |  |  |  | 4,699 |  |  | 5,276 |
Unamortized debt issuance costs, premium and discount |  |  |  |  |  |  |  |  | 8 |  |  | 10 |
Other nonrecourse debt, net |  |  |  |  |  |  |  |  | $ | 4,707 |  |  | $ | 5,286 |
(1)Amounts represent the Company’s participating interest in GNMA HMBS securitized portfolios. Participating Interest Financing Participating interest financing represents the obligation of HMBS pools to third-party security holders. The Company issues HMBS in connection with the securitization of borrower draws and accrues interest on HECM loans. Proceeds are received in exchange for securitized advances on the HECM loan amounts transferred to GNMA, and the Company retains a beneficial interest (referred to as a “participating interest”) in the securitization trust in which the HECM loans and HMBS obligations are held and assume both issuer and servicer responsibilities in accordance with GNMA HMBS program guidelines. Monthly cash flows generated from the HECM loans are used to service the HMBS obligations. The interest rate is based on the underlying HMBS rate with a range of 0.6% to 5.6%. Securitizations of Nonperforming HECM Loans From time to time, the Company securitizes its interests in non-performing reverse mortgages. The transactions provide investors with the ability to invest in a pool of both non-performing HECM loans secured by one-to-four-family residential properties and a pool of REO properties acquired through foreclosure of a deed in lieu of foreclosure in connection with HECM loans that are covered by FHA insurance. The transactions provide the Company with access to liquidity for the non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as reverse mortgage interests and the related financing included in other nonrecourse debt. Interest is accrued at a rate of 2.3% to 6.0% on the outstanding securitized notes and recorded as interest expense in consolidated statements of operations. The HECM securitizations are callable with expected weighted average lives of less than one to three years. The Company may re-securitize the previously called loans from earlier HECM securitizations to achieve a lower cost of funds. Financial Covenants The Company’s credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of June 30, 2020.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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