XML 40 R26.htm IDEA: XBRL DOCUMENT
v3.21.2

Mortgage Servicing Rights and Related Liabilities (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Transfers and Servicing [Abstract] |
Schedule of servicing assets at fair value | The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions.
MSRs and Related Liabilities | September 30, 2021 |  | December 31, 2020
Forward MSRs - fair value | $ | 3,666 |  |  | $ | 2,703 |
Excess spread financing - fair value | $ | 822 |  |  | $ | 934 |
Mortgage servicing rights financing - fair value | 20 |  |  | 33 |
MSR related liabilities - nonrecourse at fair value | $ | 842 |  |  | $ | 967 |
The following table sets forth the activities of forward MSRs:
| Nine Months Ended September 30, |  |  |
Forward MSRs - Fair Value | 2021 |  | 2020 |  |  |
Fair value - beginning of period | $ | 2,703 |  |  | $ | 3,496 |  |  |  |
Additions: |  |  |  |  |  |
Servicing retained from mortgage loans sold | 790 |  |  | 412 |  |  |  |
Purchases of servicing rights | 438 |  |  | 30 |  |  |  |
Dispositions: |  |  |  |  |  |
Sales of servicing assets | (13) |  |  | — |  |  |  |
Changes in fair value: |  |  |  |  |  |
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 476 |  |  | (727) |  |  |  |
Changes in valuation due to amortization | (772) |  |  | (605) |  |  |  |
Other changes | 44 |  |  | 57 |  |  |  |
Fair value - end of period | $ | 3,666 |  |  | $ | 2,663 |  |  |  |
The following table provides a breakdown of UPB and fair value for the Company’s forward MSRs:
| September 30, 2021 |  | December 31, 2020
Forward MSRs - UPB and Fair Value Breakdown | UPB |  | Fair Value |  | UPB |  | Fair Value
Investor Pools |  |  |  |  |  |  |
Agency | $ | 266,588 |  |  | $ | 3,329 |  |  | $ | 227,136 |  |  | $ | 2,305 |
Non-agency | 36,503 |  |  | 337 |  |  | 44,053 |  |  | 398 |
Total | $ | 303,091 |  |  | $ | 3,666 |  |  | $ | 271,189 |  |  | $ | 2,703 |
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | The following table shows the hypothetical effect on the fair value of the Company’s forward MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
| Discount Rate |  | Total Prepayment Speeds |  | Cost to Service per Loan
Forward MSRs - Hypothetical Sensitivities | 100 bps Adverse Change |  | 200 bps Adverse Change |  | 10% Adverse Change |  | 20% Adverse Change |  | 10% Adverse Change |  | 20% Adverse Change
September 30, 2021 |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing rights | $ | (133) |  |  | $ | (257) |  |  | $ | (145) |  |  | $ | (279) |  |  | $ | (45) |  |  | $ | (89) |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Mortgage servicing rights | $ | (100) |  |  | $ | (192) |  |  | $ | (181) |  |  | $ | (347) |  |  | $ | (45) |  |  | $ | (89) |
The following table shows the hypothetical effect on the Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated:
| Discount Rate |  | Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities | 100 bps Adverse Change |  | 200 bps Adverse Change |  | 10% Adverse Change |  | 20% Adverse Change
September 30, 2021 |  |  |  |  |  |  |
Excess spread financing | $ | 28 |  |  | $ | 58 |  |  | $ | 30 |  |  | $ | 63 |
December 31, 2020 |  |  |  |  |  |  |
Excess spread financing | $ | 30 |  |  | $ | 62 |  |  | $ | 41 |  |  | $ | 84 |
Schedule of fees earned in exchange for servicing financial assets | The following table sets forth the items comprising total revenues for the Servicing segment:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
Total Revenues - Servicing | 2021 |  | 2020 |  | 2021 |  | 2020
Contractually specified servicing fees(1) | $ | 280 |  |  | $ | 282 |  |  | $ | 831 |  |  | $ | 864 |
Other service-related income(1) | 158 |  |  | 60 |  |  | 517 |  |  | 171 |
Incentive and modification income(1) | 10 |  |  | 12 |  |  | 38 |  |  | 30 |
Late fees(1) | 19 |  |  | 18 |  |  | 53 |  |  | 65 |
Mark-to-market adjustments(2) | 151 |  |  | (16) |  |  | 376 |  |  | (618) |
Amortization, net of accretion(3) | (202) |  |  | (129) |  |  | (567) |  |  | (362) |
Other(4) | (65) |  |  | (104) |  |  | (224) |  |  | (268) |
Total revenues - Servicing | $ | 351 |  |  | $ | 123 |  |  | $ | 1,024 |  |  | $ | (118) |
(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. (2)Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio. The impact of negative modeled cash flows was $8 and $7 for the three months ended September 30, 2021 and 2020 and $28 and $20 for the nine months ended September 30, 2021 and 2020, respectively. (3)Amortization is net of excess spread accretion of $59 and $96 during the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, amortization is net of excess spread accretion of $205 and $243, respectively. (4)Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.

X
- Definition Schedule of Fees Earned in Exchange for Servicing Financial Assets [Table Text Block] + References No definition available. + Details
Name: | nsm_ScheduleofFeesEarnedinExchangeforServicingFinancialAssetsTableTextBlock
Namespace Prefix: | nsm_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121570589&loc=d3e107314-111719 + Details
Name: | us-gaap_ScheduleOfSensitivityAnalysisOfFairValueOfInterestsContinuedToBeHeldByTransferorServicingAssetsOrServicingLiabilitiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=125521744&loc=d3e122625-111746 + Details
Name: | us-gaap_ScheduleOfServicingAssetsAtFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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