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Business Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Financial information for our segments is as follows:

			Three Months Ended September 30, 2020
Results of Operations			Servicing						Originations						Corporate Items and Other												Business Segments Consolidated
Revenue (1)			$	185,892					$	53,755					$	9,388											$	249,035
MSR valuation adjustments, net (1)			(38,356)						12,375						(7,833)												(33,814)
Operating expenses (2)			79,522						35,421						34,579												149,522
Other (expense) income:
Interest income			872						2,717						212												3,801
Interest expense			(21,421)						(3,163)						(2,231)												(26,815)
Pledged MSR liability expense			(57,434)						—						30												(57,404)
Other			2,211						197						937												3,345
Other expense, net			(75,772)						(249)						(1,052)												(77,073)
Income (loss) before income taxes			$	(7,758)					$	30,460					$	(34,076)											$	(11,374)

			Three Months Ended September 30, 2019
Results of Operations			Servicing						Originations						Corporate Items and Other												Business Segments Consolidated
Revenue			$	250,224					$	29,502					$	3,789											$	283,515
MSR valuation adjustments, net			134,617						(56)						—												134,561
Operating expenses (2)			135,507						20,609						23,169												179,285
Other (expense) income:
Interest income			2,105						1,688						336												4,129
Interest expense			(26,087)						(2,133)						(1,286)												(29,506)
Pledged MSR liability expense			(256,499)						—						83												(256,416)
Gain on repurchase of senior secured notes			—						—						5,099												5,099
Other			3,917						498						(4,829)												(414)
Other (expense) income, net			(276,564)						53						(597)												(277,108)
Income (loss) before income taxes			$	(27,230)					$	8,890					$	(19,977)											$	(38,317)
			Nine Months Ended September 30, 2020
Results of Operations			Servicing						Originations						Corporate Items and Other												Business Segments Consolidated
Revenue (1)			$	579,883					$	136,947					$	13,071											$	729,901
MSR valuation adjustments, net (1)			(249,396)						25,861						(7,833)												(231,368)
Operating expenses (2)			242,735						91,129						97,681												431,545
Other (expense) income:
Interest income			4,196						6,857						1,709												12,762
Interest expense			(67,923)						(8,423)						(7,211)												(83,557)
Pledged MSR liability expense			(105,771)						—						87												(105,684)
Other			8,332						167						(3,883)												4,616
Other expense, net			(161,166)						(1,399)						(9,298)												(171,863)
Income (loss) before income taxes			$	(73,414)					$	70,280					$	(101,741)											$	(104,875)

			Nine Months Ended September 30, 2019
Results of Operations			Servicing						Originations						Corporate Items and Other												Business Segments Consolidated
Revenue			$	752,010					$	99,386					$	10,345											$	861,741
MSR valuation adjustments, net			(121,497)						(208)						—												(121,705)
Operating expenses (2) (3)			435,377						62,813						36,428												534,618
Other (expense) income:
Interest income			6,270						4,783						1,471												12,524
Interest expense			(77,328)						(5,200)						(2,108)												(84,636)
Pledged MSR liability expense			(303,385)						—						83												(303,302)
Gain on repurchase of senior secured notes			—						—						5,099												5,099
Other			6,332						1,161						(6,330)												1,163
Other (expense) income, net			(368,111)						744						(1,785)												(369,152)
Income (loss) before income taxes			$	(172,975)					$	37,109					$	(27,868)											$	(163,734)

(1)Revenue in the Corporate Items and Other segment for the three and nine months ended September 30, 2020 includes an inter-segment derivatives elimination of $7.8 million with a corresponding offset in MSR valuation adjustments, net.

(2)Compensation and benefits expense in the Corporate Items and Other segment for the three and nine months ended September 30, 2020 and 2019 includes $1.0 million and $2.6 million, and $(0.1) million and $19.1 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.

(3)Included in the Corporate Items and Other segment for the nine months ended September 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
September 30, 2020			$	2,694,561					$	7,259,257					$	470,033											$	10,423,851
December 31, 2019			$	3,378,515					$	6,459,367					$	568,317											$	10,406,199
September 30, 2019			$	3,227,245					$	6,225,394					$	504,014											$	9,956,653

Depreciation and Amortization Expense			Servicing						Originations						Corporate Items and Other						Business Segments Consolidated
Three months ended September 30, 2020
Depreciation expense			$	219					$	31					$	4,055					$	4,305
Amortization of debt issuance costs and discount			115						—						1,039						1,154
Three months ended September 30, 2019
Depreciation expense			$	105					$	(32)					$	6,386					$	6,459
Amortization of debt issuance costs and discount			—						—						1,146						1,146
Nine Months Ended September 30, 2020
Depreciation expense			$	652					$	102					$	14,644					$	15,398
Amortization of debt issuance costs and discount			343						—						4,992						5,335
Nine months ended September 30, 2019
Depreciation expense			$	1,674					$	49					$	24,297					$	26,020
Amortization of debt issuance costs and discount			—						—						3,299						3,299

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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

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No definition available.

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