XML 35 R23.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Business Segment Reporting | 6 Months Ended
--- | ---
Jun. 30, 2017
Segment Reporting [Abstract] |
Business Segment Reporting | Note 16 – Business Segment Reporting Our business segments reflect the internal reporting that we use to evaluate operating performance of services and to assess the allocation of our resources. While our expense allocation methodology for the current period is consistent with that used in prior periods presented, during the first quarter of 2017, we moved certain functions which had been associated with corporate cost centers to our Lending and Servicing segments because these functions align more closely with those segments. As applicable, the results of operations for the three and six months ended June 30, 2016 have been recast to conform to the current period presentation. As a result of these changes, income before income taxes for the Lending segment for the three and six months ended June 30, 2016 decreased by $2.5 million and $5.1 million, respectively, while loss before income taxes for the Servicing segment decreased by the same amounts for the same periods. A brief description of our current business segments is as follows: Servicing. This segment is primarily comprised of our core residential servicing business. We provide residential and commercial mortgage loan servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. In most cases, we provide these services either because we purchased the MSRs from the owner of the mortgage, retained the MSRs on the sale of residential mortgage loans or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Our residential servicing portfolio includes conventional, government-insured and non-Agency loans. Non-Agency loans include subprime loans, which represent residential loans that generally did not qualify under GSE guidelines or have subsequently become delinquent. Lending. The Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans mainly through our broker relationships and directly with mortgage customers. The loans are typically sold shortly after origination into a liquid market on a servicing retained (securitization) or servicing released (sale to a third party) basis. Corporate Items and Other. Corporate Items and Other includes revenues and expenses of ACS and CR Limited (CRL), our wholly-owned captive reinsurance subsidiary, and our other business activities that are individually insignificant, revenues and expenses that are not directly related to other reportable segments, interest income on short-term investments of cash, interest expense on corporate debt and certain corporate expenses. Our cash balances are included in Corporate Items and Other. ACS provides short-term inventory-secured loans to independent used car dealers to finance their inventory. We allocate a portion of interest income to each business segment, including interest earned on cash balances and short-term investments. We also allocate expenses incurred by corporate support services to each business segment. Financial information for our segments is as follows:
| Servicing |  | Lending |  | Corporate Items and Other |  | Corporate Eliminations |  | Business Segments Consolidated
Results of Operations |  |  |  |  |  |  |  |  |
Three months ended June 30, 2017
Revenue | $ | 271,784 |  |  | $ | 32,776 |  |  | $ | 6,740 |  |  | $ | — |  |  | $ | 311,300 |
Expenses | 201,928 |  |  | 32,886 |  |  | 45,666 |  |  | — |  |  | 280,480 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 174 |  |  | 3,007 |  |  | 1,058 |  |  | — |  |  | 4,239 |
Interest expense | (63,903 | ) |  | (3,383 | ) |  | (13,842 | ) |  | — |  |  | (81,128 | )
Gain on sale of mortgage servicing rights, net | 1,034 |  |  | — |  |  | (1 | ) |  | — |  |  | 1,033 |
Other | 2,057 |  |  | (128 | ) |  | 1,499 |  |  | — |  |  | 3,428 |
Other expense, net | (60,638 | ) |  | (504 | ) |  | (11,286 | ) |  | — |  |  | (72,428 | )
Income (loss) before income taxes | $ | 9,218 |  |  | $ | (614 | ) |  | $ | (50,212 | ) |  | $ | — |  |  | $ | (41,608 | )
Three months ended June 30, 2016
Revenue | $ | 325,120 |  |  | $ | 35,376 |  |  | $ | 12,558 |  |  | $ | — |  |  | $ | 373,054 |
Expenses | 257,751 |  |  | 31,181 |  |  | 96,086 |  |  | — |  |  | 385,018 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | (15 | ) |  | 4,204 |  |  | 951 |  |  | — |  |  | 5,140 |
Interest expense | (81,197 | ) |  | (3,697 | ) |  | (6,139 | ) |  | — |  |  | (91,033 | )
Gain on sale of mortgage servicing rights, net | 853 |  |  | — |  |  | — |  |  | — |  |  | 853 |
Other | 806 |  |  | 308 |  |  | (508 | ) |  | — |  |  | 606 |
Other income (expense), net | (79,553 | ) |  | 815 |  |  | (5,696 | ) |  | — |  |  | (84,434 | )
Income (loss) before income taxes | $ | (12,184 | ) |  | $ | 5,010 |  |  | $ | (89,224 | ) |  | $ | — |  |  | $ | (96,398 | )
| Servicing |  | Lending |  | Corporate Items and Other |  | Corporate Eliminations |  | Business Segments Consolidated
Six months ended June 30, 2017
Revenue | $ | 555,802 |  |  | $ | 63,522 |  |  | $ | 13,840 |  |  | $ | — |  |  | $ | 633,164 |
Expenses | 418,842 |  |  | 62,217 |  |  | 75,804 |  |  | — |  |  | 556,863 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 261 |  |  | 5,754 |  |  | 1,987 |  |  | — |  |  | 8,002 |
Interest expense | (131,254 | ) |  | (6,667 | ) |  | (27,269 | ) |  | — |  |  | (165,190 | )
Gain on sale of mortgage servicing rights, net | 1,320 |  |  | — |  |  | — |  |  | — |  |  | 1,320 |
Other | 5,060 |  |  | 103 |  |  | 2,298 |  |  | — |  |  | 7,461 |
Other expense, net | (124,613 | ) |  | (810 | ) |  | (22,984 | ) |  | — |  |  | (148,407 | )
Income (loss) before income taxes | $ | 12,347 |  |  | $ | 495 |  |  | $ | (84,948 | ) |  | $ | — |  |  | $ | (72,106 | )
Six months ended June 30, 2016
Revenue | $ | 632,547 |  |  | $ | 58,660 |  |  | $ | 12,604 |  |  | $ | — |  |  | $ | 703,811 |
Expenses | 532,070 |  |  | 55,558 |  |  | 126,047 |  |  | — |  |  | 713,675 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | (161 | ) |  | 7,815 |  |  | 1,676 |  |  | — |  |  | 9,330 |
Interest expense | (177,670 | ) |  | (7,145 | ) |  | (12,307 | ) |  | — |  |  | (197,122 | )
Gain on sale of mortgage servicing rights, net | 2,028 |  |  | — |  |  | — |  |  | — |  |  | 2,028 |
Other | (2,537 | ) |  | 659 |  |  | (1,017 | ) |  | — |  |  | (2,895 | )
Other income (expense), net | (178,340 | ) |  | 1,329 |  |  | (11,648 | ) |  | — |  |  | (188,659 | )
Income (loss) before income taxes | $ | (77,863 | ) |  | $ | 4,431 |  |  | $ | (125,091 | ) |  | $ | — |  |  | $ | (198,523 | )
| Servicing |  | Lending |  | Corporate Items and Other |  | Corporate Eliminations |  | Business Segments Consolidated
Total Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
June 30, 2017 | $ | 2,975,458 |  |  | $ | 4,483,652 |  |  | $ | 473,282 |  |  | $ | — |  |  | $ | 7,932,392 |
December 31, 2016 | $ | 3,312,371 |  |  | $ | 3,863,862 |  |  | $ | 479,430 |  |  | $ | — |  |  | $ | 7,655,663 |
June 30, 2016 | $ | 3,630,933 |  |  | $ | 3,424,808 |  |  | $ | 432,511 |  |  | $ | — |  |  | $ | 7,488,252 |
| Servicing |  | Lending |  | Corporate Items and Other |  | Business Segments Consolidated
Depreciation and Amortization Expense |  |  |  |  |  |  |
Three months ended June 30, 2017
Depreciation expense | $ | 1,466 |  |  | $ | 55 |  |  | $ | 4,835 |  |  | $ | 6,356 |
Amortization of mortgage servicing rights | 12,627 |  |  | 70 |  |  | — |  |  | 12,697 |
Amortization of debt discount | — |  |  | — |  |  | 268 |  |  | 268 |
Amortization of debt issuance costs | — |  |  | — |  |  | 661 |  |  | 661 |
Three months ended June 30, 2016
Depreciation expense | $ | 1,206 |  |  | $ | 65 |  |  | $ | 5,539 |  |  | $ | 6,810 |
Amortization of mortgage servicing rights | 8,269 |  |  | 78 |  |  | — |  |  | 8,347 |
Amortization of debt discount | 178 |  |  | — |  |  | — |  |  | 178 |
Amortization of debt issuance costs | 2,889 |  |  | — |  |  | 332 |  |  | 3,221 |
Six months ended June 30, 2017
Depreciation expense | $ | 2,869 |  |  | $ | 105 |  |  | $ | 10,465 |  |  | $ | 13,439 |
Amortization of mortgage servicing rights | 25,271 |  |  | 141 |  |  | — |  |  | 25,412 |
Amortization of debt discount | — |  |  | — |  |  | 539 |  |  | 539 |
Amortization of debt issuance costs | — |  |  | — |  |  | 1,334 |  |  | 1,334 |
Six months ended June 30, 2016
Depreciation expense | $ | 2,340 |  |  | $ | 136 |  |  | $ | 9,374 |  |  | $ | 11,850 |
Amortization of mortgage servicing rights | 20,994 |  |  | 159 |  |  | — |  |  | 21,153 |
Amortization of debt discount | 383 |  |  | — |  |  | — |  |  | 383 |
Amortization of debt issuance costs | 5,822 |  |  | — |  |  | 676 |  |  | 6,498 |

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

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration