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Business Segment Reporting (Tables) | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information | Financial information for our segments is as follows:
| Three Months Ended June 30, 2020
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
Revenue | $ | 180,436 |  |  | $ | 45,545 |  |  | $ | 1,043 |  |  | $ | 227,024 |
MSR valuation adjustments, net | (36,604 | ) |  | 13,170 |  |  | — |  |  | (23,434 | )
Operating expenses (1) | 82,740 |  |  | 28,750 |  |  | 33,319 |  |  | 144,809 |
Other (expense) income: |  |  |  |  |  |  |
Interest income | 1,438 |  |  | 1,874 |  |  | 254 |  |  | 3,566 |
Interest expense | (12,890 | ) |  | (2,399 | ) |  | (11,471 | ) |  | (26,760 | )
Pledged MSR liability expense | (41,714 | ) |  | — |  |  | 28 |  |  | (41,686 | )
Other | 2,459 |  |  | (1 | ) |  | (2,515 | ) |  | (57 | )
Other expense, net | (50,707 | ) |  | (526 | ) |  | (13,704 | ) |  | (64,937 | )
Income (loss) before income taxes | $ | 10,385 |  |  | $ | 29,439 |  |  | $ | (45,980 | ) |  | $ | (6,156 | )
| Three Months Ended June 30, 2019
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
Revenue | $ | 242,510 |  |  | $ | 28,794 |  |  | $ | 3,034 |  |  | $ | 274,338 |
MSR valuation adjustments, net | (147,199 | ) |  | (69 | ) |  | — |  |  | (147,268 | )
Operating expenses (1) | 142,888 |  |  | 20,957 |  |  | 20,381 |  |  | 184,226 |
Other (expense) income: |  |  |  |  |  |  |
Interest income | 1,872 |  |  | 1,546 |  |  | 419 |  |  | 3,837 |
Interest expense | (11,261 | ) |  | (1,399 | ) |  | (15,981 | ) |  | (28,641 | )
Pledged MSR liability expense | (2,930 | ) |  | — |  |  | — |  |  | (2,930 | )
Other | 890 |  |  | 444 |  |  | (777 | ) |  | 557 |
Other (expense) income, net | (11,429 | ) |  | 591 |  |  | (16,339 | ) |  | (27,177 | )
Income (loss) before income taxes | $ | (59,006 | ) |  | $ | 8,359 |  |  | $ | (33,686 | ) |  | $ | (84,333 | )
| Six Months Ended June 30, 2020
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
Revenue | $ | 393,991 |  |  | $ | 83,192 |  |  | $ | 3,683 |  |  | $ | 480,866 |
MSR valuation adjustments, net | (211,040 | ) |  | 13,486 |  |  | — |  |  | (197,554 | )
Expenses (1) | 163,213 |  |  | 55,708 |  |  | 63,102 |  |  | 282,023 |
Other (expense) income: |  |  |  |  |  |  |
Interest income | 3,324 |  |  | 4,140 |  |  | 1,497 |  |  | 8,961 |
Interest expense | (26,557 | ) |  | (5,260 | ) |  | (24,925 | ) |  | (56,742 | )
Pledged MSR liability expense | (48,337 | ) |  | — |  |  | 57 |  |  | (48,280 | )
Other | 6,121 |  |  | (30 | ) |  | (4,820 | ) |  | 1,271 |
Other expense, net | (65,449 | ) |  | (1,150 | ) |  | (28,191 | ) |  | (94,790 | )
Income (loss) before income taxes | $ | (45,711 | ) |  | $ | 39,820 |  |  | $ | (87,610 | ) |  | $ | (93,501 | )
| Six months ended June 30, 2019
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
Revenue | $ | 501,784 |  |  | $ | 69,885 |  |  | $ | 6,557 |  |  | 578,226 |
MSR valuation adjustments, net | (256,113 | ) |  | (153 | ) |  | — |  |  | (256,266 | )
Expenses (1) (2) | 299,871 |  |  | 42,204 |  |  | 13,258 |  |  | 355,333 |
Other (expense) income: |  |  |  |  |  |  |
Interest income | 4,165 |  |  | 3,095 |  |  | 1,135 |  |  | 8,395 |
Interest expense | (22,003 | ) |  | (3,067 | ) |  | (30,060 | ) |  | (55,130 | )
Pledged MSR liability expense | (46,886 | ) |  | — |  |  | — |  |  | (46,886 | )
Other | 2,416 |  |  | 663 |  |  | (1,502 | ) |  | 1,577 |
Other (expense) income, net | (62,308 | ) |  | 691 |  |  | (30,427 | ) |  | (92,044 | )
Income (loss) before income taxes | $ | (116,508 | ) |  | $ | 28,219 |  |  | $ | (37,128 | ) |  | $ | (125,417 | )
(1) | Compensation and benefits expense in the Corporate Items and Other segment for the three and six months ended June 30, 2020 and 2019 includes $1.3 million and $1.5 million, and $0.8 million and $19.2 million, respectively, of severance expense attributable to PHH integration-related headcount reductions of primarily U.S.-based employees in 2019, as well as our overall efforts to reduce costs.
(2) | Included in the Corporate Items and Other segment for the six months ended June 30, 2019, we recorded in Professional services expense a recovery from a service provider of $30.7 million during the first quarter of 2019 of amounts previously recognized as expense.
Total Assets | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
June 30, 2020 | $ | 2,835,486 |  |  | $ | 6,965,683 |  |  | $ | 509,269 |  |  | $ | 10,310,438 |
December 31, 2019 | $ | 3,378,515 |  |  | $ | 6,459,367 |  |  | $ | 568,317 |  |  | $ | 10,406,199 |
June 30, 2019 | $ | 3,195,218 |  |  | $ | 5,978,325 |  |  | $ | 454,250 |  |  | $ | 9,627,793 |
Depreciation and Amortization Expense | Servicing |  | Originations |  | Corporate Items and Other |  | Business Segments Consolidated
Three months ended June 30, 2020
Depreciation expense | $ | 218 |  |  | $ | 34 |  |  | $ | 6,844 |  |  | $ | 7,096 |
Amortization of debt discount | — |  |  | — |  |  | (286 | ) |  | (286 | )
Amortization of debt issuance costs | 116 |  |  | — |  |  | 1,689 |  |  | 1,805 |
Three months ended June 30, 2019
Depreciation expense | $ | 761 |  |  | $ | 46 |  |  | $ | 10,205 |  |  | $ | 11,012 |
Amortization of debt discount | — |  |  | — |  |  | 350 |  |  | 350 |
Amortization of debt issuance costs | — |  |  | — |  |  | 751 |  |  | 751 |
Six Months Ended June 30, 2020
Depreciation expense | $ | 433 |  |  | $ | 71 |  |  | $ | 10,589 |  |  | $ | 11,093 |
Amortization of debt discount | — |  |  | — |  |  | 643 |  |  | 643 |
Amortization of debt issuance costs | 228 |  |  | — |  |  | 3,310 |  |  | 3,538 |
Six months ended June 30, 2019
Depreciation expense | $ | 1,569 |  |  | $ | 81 |  |  | $ | 17,913 |  |  | $ | 19,563 |
Amortization of debt discount | — |  |  | — |  |  | 701 |  |  | 701 |
Amortization of debt issuance costs | — |  |  | — |  |  | 1,451 |  |  | 1,451 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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