XML 52 R38.htm IDEA: XBRL DOCUMENT v3.20.2
Mortgage Servicing (Tables)
 6 Months Ended
Jun. 30, 2020
Transfers and Servicing [Abstract]  
Schedule of Activity Related to MSRs - Fair Value Measurement Method
MSRs – Fair Value Measurement Method
Three Months Ended June 30,
2020
 
2019
 
Agency
 
Non-Agency
 
Total
 
Agency
 
Non-Agency
 
Total
Beginning balance
$
294,227

 
$
756,001

 
$
1,050,228

 
$
825,692

 
$
574,499

 
$
1,400,191

Sales and other transfers
—

 
(51
)
 
(51
)
 
406

 
(409
)
 
(3
)
Additions:
 
 
 
 
 
 
 
 
 
 
 
Recognized on the sale of residential mortgage loans
9,128

 
—

 
9,128

 
1,188

 
—

 
1,188

Purchase of MSRs
15,255

 
—

 
15,255

 
59,892

 
87

 
59,979

Servicing transfers and adjustments (1)
11

 
1,296

 
1,307

 
—

 
(1,454
)
 
(1,454
)
Changes in fair value (2):
 
 
 
 
 
 
 
 
 
 
 
Changes in valuation inputs or other assumptions
3,711

 
(3,462
)
 
249

 
(107,559
)
 
12,739

 
(94,820
)
Realization of expected future cash flows and other changes
(17,247
)
 
(13,955
)
 
(31,202
)
 
(33,884
)
 
(18,564
)
 
(52,448
)
Ending balance
$
305,085

 
$
739,829

 
$
1,044,914

 
$
745,735

 
$
566,898

 
$
1,312,633

 
 
 
 
 
 
 
 
 
 
 
 
MSRs – Fair Value Measurement Method
Six months ended June 30,
2020
 
2019
 
Agency
 
Non-Agency
 
Total
 
Agency
 
Non-Agency
 
Total
Beginning balance
$
714,006

 
$
772,389

 
$
1,486,395

 
$
865,587

 
$
591,562

 
$
1,457,149

Sales and other transfers
—

 
(107
)
 
(107
)
 
(29
)
 
(541
)
 
(570
)
Additions:
 
 
 
 

 
 
 
 
 

Recognized on the sale of residential mortgage loans
15,689

 
—

 
15,689

 
2,698

 
—

 
2,698

Purchase of MSRs
46,745

 
—

 
46,745

 
114,302

 
87

 
114,389

Servicing transfers and adjustments (1)
(263,846
)
 
403

 
(263,443
)
 
—

 
(4,767
)
 
(4,767
)
Changes in fair value (2):
 
 
 
 

 
 
 
 
 

Changes in valuation inputs or other assumptions
(163,425
)
 
6,930

 
(156,495
)
 
(171,676
)
 
12,583

 
(159,093
)
Realization of expected future cash flows and other changes
(44,084
)
 
(39,786
)
 
(83,870
)
 
(65,147
)
 
(32,026
)
 
(97,173
)
Ending balance
$
305,085

 
$
739,829

 
$
1,044,914

 
$
745,735

 
$
566,898

 
$
1,312,633

(1)
Servicing transfers and adjustments include a $263.7 million derecognition of MSRs/Rights to MSRs effective with the February 20, 2020 notice of termination of the subservicing agreement between NRZ and PMC. See Note 8 — Rights to MSRs for further information.
(2)
Changes in fair value are recognized in MSR valuation adjustments, net in the unaudited consolidated statements of operations.
Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced
The following table presents the composition of our primary servicing and subservicing portfolios as measured by UPB. The UPB amounts in the table below are not included on our unaudited consolidated balance sheets, with the exception of the Reverse mortgage loans.
 
UPB at
 
June 30, 2020
 
December 31, 2019
 
June 30, 2019
Servicing
$
70,463,896

 
$
70,428,208

 
$
74,320,255

Reverse mortgage loan servicing (1)
6,521,219

 
6,229,724

 
5,820,873

Subservicing
20,007,180

 
17,120,905

 
27,432,019

NRZ (2) (3)
109,020,760

 
118,587,594

 
121,709,898

 
$
206,013,055

 
$
212,366,431

 
$
229,283,045


(1)
Reverse mortgage loans are reported on our unaudited consolidated balance sheets at fair value and are classified as loans held for investment. No separate MSRs are recognized in our unaudited consolidated balance sheets.
(2)
UPB of loans for which the Rights to MSRs have been sold to NRZ, including $54.0 billion for which third-party consents have been received and the MSRs have been transferred to NRZ (the MSRs remain on balance sheet as the transactions do not achieve sale accounting treatment).
(3)
Includes $37.1 billion of servicing UPB at June 30, 2020 pursuant to the subservicing agreement between NRZ and PMC for which we received a notice of termination from NRZ on February 20, 2020. While the MSRs and the Rights to MSRs associated with these loans are derecognized from our consolidated balance sheet, we continue to service these loans until deboarding. See Note 8 — Rights to MSRs.
Schedule of Components of Servicing and Subservicing Fees
Servicing Revenue
Three Months Ended June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Loan servicing and subservicing fees
 
 
 
 
 
 
 
Servicing
$
52,336

 
$
55,387

 
$
107,745

 
$
108,569

Subservicing
10,630

 
4,203

 
15,820

 
10,410

NRZ
88,405

 
141,091

 
208,073

 
296,938

 
151,371

 
200,681

 
331,638

 
415,917

Late charges
12,672

 
13,242

 
27,311

 
28,682

Custodial accounts (float earnings)
1,590

 
13,341

 
7,731

 
25,275

Loan collection fees
2,744

 
3,401

 
7,000

 
7,750

Home Affordable Modification Program (HAMP) fees (1)
20

 
1,565

 
428

 
3,342

Other, net
6,843

 
7,730

 
12,615

 
15,610

 
$
175,240

 
$
239,960

 
$
386,723

 
$
496,576


(1)
The HAMP expired on December 31, 2016. Borrowers who had requested assistance or to whom an offer of assistance had been extended as of that date had until September 30, 2017 to finalize their modification. We continue to earn HAMP success fees for HAMP modifications that remain less than 90 days delinquent at the first-, second- and third-year anniversary of the start of the trial modification.