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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | 17. Income Taxes The components of income tax expense for continuing operations were as follows:
| Year Ended December 31,
Total Income Tax Expense on continuing operations | 2023 |  | 2022 |  | 2021(1)
Current Income Taxes |  |  |  |  |
Federal | $ | 3 |  |  | $ | (6) |  |  | $ | 7 |
State | 16 |  |  | 8 |  |  | 113 |
Total current income taxes | 19 |  |  | 2 |  |  | 120 |
Deferred Income Taxes |  |  |  |  |
Federal | 110 |  |  | 245 |  |  | 376 |
State | 25 |  |  | 44 |  |  | (25) |
Total deferred income taxes | 135 |  |  | 289 |  |  | 351 |
Total income tax expense | $ | 154 |  |  | $ | 291 |  |  | $ | 471 |
(1)The provision for income taxes for 2021 does not reflect the tax effects of the sale of the Company’s reverse servicing portfolio reported as discontinued operations. The following table presents a reconciliation of the income tax provision computed at the U.S. federal statutory tax rate to the actual effective tax rate:
| Year Ended December 31,
Reconciliation of the Income Tax Provision | 2023 |  | 2022 |  | 2021
Tax Expense at Federal Statutory Rate | $ | 137 |  |  | $ | 255 |  |  | $ | 407 |
Effect of: |  |  |  |  |
State taxes, net of federal benefit | 32 |  |  | 39 |  |  | 70 |
Bargain purchase gain(1) | (20) |  |  | — |  |  | — |
Nondeductible executive compensation | 11 |  |  | 8 |  |  | 9 |
Share based compensation | (9) |  |  | (9) |  |  | (8) |
Other, net | 3 |  |  | (2) |  |  | (7) |
Total income tax expense | $ | 154 |  |  | $ | 291 |  |  | $ | 471 |
(1)Amount is related to preliminary bargain purchase gain recorded in connection with the Home Point Acquisition. Refer to Note 3, Acquisitions, for further details. Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following:
Deferred Tax Assets and Liabilities | December 31, 2023 |  | December 31, 2022
Deferred Tax Assets |  |  |
Effect of: |  |  |
Goodwill and intangible assets | $ | 585 |  |  | $ | 827 |
Loss reserves | 101 |  |  | 84 |
Loss carryforwards (federal, state & capital) | 85 |  |  | 104 |
Lease liability | 22 |  |  | 28 |
Accruals | 20 |  |  | 11 |
Depreciation and amortization, net | 8 |  |  | — |
Other, net | 12 |  |  | 19 |
Total deferred tax assets | 833 |  |  | 1,073 |
Deferred Tax Liabilities |  |  |
MSR amortization and mark-to-market, net | (282) |  |  | (269) |
Other investment assets | (53) |  |  | (67) |
Right-of-use assets | (18) |  |  | (24) |
Depreciation and amortization, net | — |  |  | (2) |
Prepaid assets | (1) |  |  | (1) |
Total deferred tax liabilities | (354) |  |  | (363) |
Valuation allowance | (7) |  |  | (7) |
Deferred tax assets, net(1) | $ | 472 |  |  | $ | 703 |
(1)The Company elected to account for the Global Intangible Low-Taxed Income (“GILTI”) tax expense in the period in which it is incurred. As a result, no deferred tax impact of GILTI has been provided in the consolidated financial statements. The Company has federal NOL carryforwards (pre-tax) of $354 and $484 as of December 31, 2023 and 2022, respectively. The Company believes it is more likely than not that its deferred tax assets will be realized except for certain federal Code Section 382 limited NOLs that begin to expire with the 2026 tax year, if unused, and immaterial state NOL carryforwards that begin to expire with the 2023 tax year, if unused. Accordingly, the Company has recorded a federal valuation allowance of $7 as of December 31, 2023 and 2022 related to these NOL carryforwards. The state valuation allowance was immaterial as of December 31, 2023 and 2022. The Company does not expect any future tax loss limitations under Sections 382 and 384 that would impact its utilization of remaining federal NOL carryforwards. The Company files income tax returns in the U.S. federal jurisdiction and numerous U.S. state jurisdictions. As of December 31, 2023, the Company is currently under examination by the Internal Revenue Service for tax years 2018, 2019, and 2020. The years open to examination by federal, state and local government authorities vary by jurisdiction. Below is a reconciliation of the changes in the federal and state uncertain tax position balances, exclusive of interest and penalties, for the year ended December 31, 2023.
Unrecognized Tax Benefits (exclusive of interest and penalties) | December 31, 2023
Balance - beginning of year | $ | — |
Additions for tax positions taken in prior years | 6 |
Balance - end of year | $ | 6 |

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