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Fair Value (Tables)
 9 Months Ended
Sep. 30, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Fair Value Assets and Liabilities
The carrying amounts and the estimated fair values of our financial instruments and certain of our nonfinancial assets measured at fair value on a recurring or non-recurring basis or disclosed, but not carried, at fair value are as follows:
 
 
 
September 30, 2018
 
December 31, 2017
 
Level
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial assets
 
 
 

 
 

 
 

 
 

Loans held for sale
 
 
 
 
 
 
 
 
 
Loans held for sale, at fair value (a)
2
 
$
145,417

 
$
145,417

 
$
214,262

 
$
214,262

Loans held for sale, at lower of cost or fair value (b)
3
 
72,019

 
72,019

 
24,096

 
24,096

Total Loans held for sale
 
 
217,436

 
217,436

 
238,358

 
238,358

 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2018
 
December 31, 2017
 
Level
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Loans held for investment, at fair value
 
 
 
 
 
 
 
 
 
Loans held for investment - Reverse mortgages (a)
3
 
5,279,187

 
5,279,187

 
4,715,831

 
4,715,831

Loans held for investment - Restricted for securitization investors (a)
3
 
28,373

 
28,373

 
—

 
—

Total loans held for investment
 
 
5,307,560

 
5,307,560

 
4,715,831

 
4,715,831

 
 
 
 
 
 
 
 
 
 
Advances (including match funded) (c)
3
 
1,101,104

 
1,101,104

 
1,356,393

 
1,356,393

Automotive dealer financing notes (including match funded) (c)
3
 
—

 
—

 
32,757

 
32,590

Receivables, net (c)
3
 
155,937

 
155,937

 
199,529

 
199,529

Mortgage-backed securities, at fair value (a)
3
 
1,670

 
1,670

 
1,592

 
1,592

U.S. Treasury notes (a)
1
 
1,059

 
1,059

 
1,567

 
1,567

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 

 
 

 
 

 
 

Match funded liabilities (c)
3
 
$
714,246

 
$
710,303

 
$
998,618

 
$
992,698

Financing liabilities:
 
 
 
 
 
 
 
 
 
HMBS-related borrowings, at fair value (a)
3
 
5,184,227

 
5,184,227

 
4,601,556

 
4,601,556

Financing liability - MSRs pledged, at fair value (a)
3
 
620,199

 
620,199

 
508,291

 
508,291

Financing liability - Owed to securitization investors, at fair value (a)
3
 
26,643

 
26,643

 
—

 
—

Other (c)
3
 
72,477

 
57,984

 
85,227

 
65,202

Total Financing liabilities
 
 
$
5,903,546

 
$
5,889,053

 
$
5,195,074

 
$
5,175,049

Other secured borrowings:
 
 
 
 
 
 
 
 
 
Senior secured term loan (c) (d)
2
 
230,295

 
236,866

 
290,068

 
299,741

Other (c)
3
 
115,130

 
115,130

 
255,782

 
255,782

Total Other secured borrowings
 
 
345,425

 
351,996

 
545,850

 
555,523

 
 
 
 
 
 
 
 
 
 
Senior notes:
 
 
 
 
 
 
 
 
 
Senior unsecured notes (c) (d)
2
 
3,122

 
3,090

 
3,122

 
2,872

Senior secured notes (c) (d)
2
 
344,627

 
352,071

 
344,216

 
355,550

Total Senior notes
 
 
347,749

 
355,161

 
347,338

 
358,422

 
 
 
 
 
 
 
 
 
 
Derivative financial instrument assets (liabilities), at fair value (a)
 
 
 

 
 

 
 

 
 

Interest rate lock commitments
2
 
2,816

 
2,816

 
3,283

 
3,283

Forward mortgage-backed securities
1
 
(1,873
)
 
(1,873
)
 
(545
)
 
(545
)
Interest rate caps
3
 
1,211

 
1,211

 
2,056

 
2,056

 
 
 
 
 
 
 
 
 
 
Mortgage servicing rights
 
 
 
 
 
 
 
 
 
Mortgage servicing rights, at fair value (a)
3
 
$
999,282

 
$
999,282

 
$
671,962

 
$
671,962

Mortgage servicing rights, at amortized cost (c) (e)
3
 
—

 
—

 
336,882

 
418,745

Total Mortgage servicing rights
 
 
$
999,282

 
$
999,282

 
$
1,008,844

 
$
1,090,707


(a)
Measured at fair value on a recurring basis.
(b)
Measured at fair value on a non-recurring basis.
(c)
Disclosed, but not carried, at fair value. 
(d)
The carrying values are net of unamortized debt issuance costs and discount. See Note 11 – Borrowings for additional information.
(e)
Effective January 1, 2018, we elected fair value accounting for our MSRs previously accounted for using the amortization method, which included Agency MSRs and government-insured MSRs. The balance at December 31, 2017 includes the impaired government-insured stratum of amortization method MSRs, which was measured at fair value on a non-recurring basis and reported net of the valuation allowance. At December 31, 2017, the carrying value of this stratum was $158.0 million before applying the valuation allowance of $24.8 million.
Schedule of Reconciliation of Changes in Fair Value of Level 3 Assets and Liabilities
The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis:
 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Loans Held for Inv. - Restricted for Securitiza-
tion Investors
 
Financing Liability - Owed to Securit -
ization Investors
 
Mortgage-Backed Securities
 
Financing Liability - MSRs Pledged
 
Derivatives
 
MSRs
Three months ended September 30, 2018
Beginning balance
$
5,143,758

 
$
(5,040,983
)
 
$
—

 
$
—

 
$
1,732

 
$
(672,619
)
 
$
1,657

 
$
1,043,995

Purchases, issuances, sales and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Purchases
—

 
—

 
—

 
—

 
—

 
—

 
—

 
2,924

Issuances
223,563

 
(229,169
)
 
—

 
—

 
—

 
—

 
—

 
1,930

Consolidation of mortgage-backed securitization trusts
—

 
—

 
28,373

 
(26,643
)
 
—

 
—

 
—

 
—

Sales
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(8,119
)
Settlements
(110,584
)
 
108,790

 
—

 
—

 
—

 
49,620

 
—

 
—

Transfers (to) from:
 
 
 
 


 


 
 
 
 
 
 
 
 
Loans held for sale, at fair value
(253
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other assets
(170
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Receivables, net
(20
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
112,536

 
(120,379
)
 
28,373

 
(26,643
)
 
—

 
49,620

 
—

 
(3,265
)
Total realized and unrealized gains (losses) included in earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value
22,893

 
(22,865
)
 
—

 
—

 
(62
)
 
2,681

 
(446
)
 
(41,448
)
Calls and other
—

 
—

 
—

 
—

 
—

 
119

 
—

 
—

 
22,893

 
(22,865
)
 
—

 
—

 
(62
)
 
2,800

 
(446
)
 
(41,448
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
5,279,187

 
$
(5,184,227
)
 
$
28,373

 
$
(26,643
)
 
$
1,670

 
$
(620,199
)
 
$
1,211

 
$
999,282

 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Mortgage-Backed Securities
 
Financing Liability - MSRs Pledged
 
Derivatives
 
MSRs
Three months ended September 30, 2017
Beginning balance
$
4,223,776

 
$
(4,061,626
)
 
$
8,986

 
$
(441,007
)
 
$
1,937

 
$
625,650

Purchases, issuances, sales and settlements
 
 
 
 
 
 
 
 
 
 
 
Purchases
—

 
—

 
—

 
—

 
655

 
—

Issuances
263,169

 
(317,277
)
 
—

 
(54,601
)
 
—

 
(715
)
Sales
—

 
—

 
—

 
—

 
—

 
(311
)
Settlements
(118,991
)
 
111,677

 
—

 
19,770

 
(403
)
 
—

Transfers (to) from:
 
 
 
 
 
 
 
 
 
 
 
Other assets
88

 
—

 
—

 
—

 
—

 
—

 
144,266

 
(205,600
)
 
—

 
(34,831
)
 
252

 
(1,026
)
Total realized and unrealized gains (losses) included in earnings
 
 
 
 
 
 
 
 
 
 
 
Change in fair value
91,718

 
(91,051
)
 
341

 
27,024

 
(350
)
 
(26,477
)
Calls and other
—

 
—

 
—

 
971

 
—

 
—

 
91,718

 
(91,051
)
 
341

 
27,995

 
(350
)
 
(26,477
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
4,459,760

 
$
(4,358,277
)
 
$
9,327

 
$
(447,843
)
 
$
1,839

 
$
598,147

 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Loans Held for Inv. - Restricted for Securitiza-
tion Investors
 
Financing Liability - Owed to Securiti-
zation Investors
 
Mortgage-backed Securities
 
Financing Liability - MSRs Pledged
 
Derivatives
 
MSRs
Nine months ended September 30, 2018
Beginning balance
$
4,715,831

 
$
(4,601,556
)
 
$
—

 
$
—

 
$
1,592

 
$
(508,291
)
 
$
2,056

 
$
671,962

Purchases, issuances, sales and settlements
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

Purchases
—

 
—

 
—

 
—

 
—

 
—

 
95

 
8,809

Issuances
711,035

 
(728,745
)
 
—

 
—

 
—

 
(279,586
)
 
—

 
(445
)
Consolidation of mortgage-backed securitization trusts
—

 
—

 
28,373

 
(26,643
)
 
—

 
—

 
—

 
—

Sales
—

 
—

 
—

 
—

 
—

 
—

 
—

 
(8,274
)
Settlements
(296,800
)
 
290,338

 
—

 
—

 
—

 
154,129

 
(371
)
 
—

Transfers (to) from:
 
 
 
 

 

 
 
 
 
 
 
 
 
MSRs carried at amortized cost, net of valuation allowance
—

 
—

 
—

 
—

 
—

 
—

 
—

 
418,925

Loans held for sale, at fair value
(694
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other assets
(307
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Receivables, net
(92
)
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
413,142

 
(438,407
)
 
28,373

 
(26,643
)
 
—

 
(125,457
)
 
(276
)
 
419,015

Total realized and unrealized gains (losses) included in earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Included in earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in fair value
150,214

 
(144,264
)
 
—

 
—

 
78

 
11,323

 
(569
)
 
(91,695
)
Calls and other
—

 
—

 
—

 
—

 
—

 
2,226

 
—

 
—

 
150,214

 
(144,264
)
 
—

 
—

 
78

 
13,549

 
(569
)
 
(91,695
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending Balance
$
5,279,187

 
$
(5,184,227
)
 
$
28,373

 
$
(26,643
)
 
$
1,670

 
$
(620,199
)
 
$
1,211

 
$
999,282

 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Mortgage-backed Securities
 
Financing Liability - MSRs Pledged
 
Derivatives
 
MSRs
Nine months ended September 30, 2017
Beginning balance
$
3,565,716

 
$
(3,433,781
)
 
$
8,342

 
$
(477,707
)
 
$
1,836

 
$
679,256

Purchases, issuances, sales and settlements
 
 
 
 
 
 
 
 
 

 
 

Purchases
—

 
—

 
—

 
—

 
655

 
—

Issuances
961,642

 
(981,730
)
 
—

 
(54,601
)
 
—

 
(2,131
)
Sales
—

 
—

 
—

 
—

 
—

 
(541
)
Settlements
(311,560
)
 
287,908

 
—

 
52,963

 
(445
)
 
—

Transfers (to) from:
 
 
 
 
 
 
 
 
 
 
 
Other assets
(1,335
)
 
—

 
—

 
—

 
—

 
—

 
648,747

 
(693,822
)
 
—

 
(1,638
)
 
210

 
(2,672
)
Total realized and unrealized gains (losses) included in earnings
 
 
 
 
 
 
 
 
 
 
 
Change in fair value
245,297

 
(230,674
)
 
985

 
27,024

 
(207
)
 
(78,437
)
Calls and other
—

 
—

 
—

 
4,478

 
—

 
—

 
245,297

 
(230,674
)
 
985

 
31,502

 
(207
)
 
(78,437
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
4,459,760

 
$
(4,358,277
)
 
$
9,327

 
$
(447,843
)
 
$
1,839

 
$
598,147
Schedule of Significant Assumptions used in Valuation
Significant valuation assumptions
September 30,
2018
 
December 31, 2017
Life in years
 
 
 
Range
2.8 to 7.6

 
4.4 to 8.1

Weighted average
5.8

 
6.4

Conditional repayment rate
 
 
 
Range
6.3% to 41.3%

 
5.4% to 51.9%

Weighted average
14.7
%
 
13.1
%
Discount rate
3.7
%
 
3.2
%
Mortgage Servicing Rights - Fair Value [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Significant Assumptions used in Valuation
Significant valuation assumptions
September 30, 2018
 
December 31, 2017
Agency (1)
 
Non-Agency
 
Agency
 
Non-Agency
Weighted average prepayment speed
8.1
%
 
15.7
%
 
8.1
%
 
16.6
%
Weighted average delinquency rate
9.9
%
 
27.6
%
 
1.0
%
 
28.5
%
Advance financing cost
5-year swap

 
5-yr swap plus 2.75%

 
5-year swap

 
5-yr swap plus 2.75%

Interest rate for computing float earnings
5-year swap

 
5-yr swap minus 0.50%

 
5-year swap

 
5-yr swap minus 0.50%

Weighted average discount rate
9.0
%
 
12.7
%
 
9.0
%
 
13.0
%
Weighted average cost to service (in dollars)
$
105

 
$
301

 
$
64

 
$
305

(1)
Valuation assumptions for Agency MSRs at September 30, 2018 include assumptions for MSRs we carried at amortized cost at December 31, 2017. Effective January 1, 2018, we elected fair value accounting for our remaining MSRs that we had previously carried at amortized cost.
Mortgage Servicing Rights - Amortized Costs [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Significant Assumptions used in Valuation
Significant valuation assumptions
December 31, 2017
Weighted average prepayment speed
8.8
%
Weighted average delinquency rate
10.9
%
Advance financing cost
5-year swap

Interest rate for computing float earnings
5-year swap

Weighted average discount rate
9.2
%
Weighted average cost to service (in dollars)
$
108
HMBS - Related Borrowings [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Significant Assumptions used in Valuation
Significant valuation assumptions
September 30,
2018
 
December 31, 2017
Life in years
 
 
 
Range
2.8 to 7.6

 
4.4 to 8.1

Weighted average
5.8

 
6.4

Conditional repayment rate
 
 
 
Range
6.3% to 41.3%

 
5.4% to 51.9%

Weighted average
14.7
%
 
13.1
%
Discount rate
3.7
%
 
3.1
%
Mortgage Servicing Rights Pledged [Member]  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Schedule of Significant Assumptions used in Valuation
Significant valuation assumptions
September 30, 2018
 
December 31, 2017
Weighted average prepayment speed
16.1
%
 
17.0
%
Weighted average delinquency rate
28.1
%
 
28.9
%
Advance financing cost
5-yr swap plus 2.75%

 
5-year swap plus 2.75%

Interest rate for computing float earnings
5-yr swap minus 0.50%

 
5-year swap minus 0.50%

Weighted average discount rate
13.7
%
 
13.7
%
Weighted average cost to service (in dollars)
$
307

 
$
311