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Business Segment Reporting (Tables)
 6 Months Ended
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