XML 71 R56.htm IDEA: XBRL DOCUMENT v3.22.4
Business Segment Reporting (Tables)
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information Financial information for our segments is as follows:
Results of OperationsServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Year Ended December 31, 2022
Servicing and subservicing fees$860.5 $2.1 $— $— $862.6 
Gain on reverse loans held for investment and HMBS-related borrowings, net
(25.1)61.2 — — 36.1 
Gain (loss) on loans held for sale, net (1)(15.1)52.9 — (15.7)22.0 
Other revenue, net1.4 24.9 6.9 — 33.2 
Revenue821.7 141.1 6.9 (15.7)953.9 
MSR valuation adjustments, net (1)(36.0)9.9 — 15.7 (10.4)
Operating expenses (2) 314.1 148.5 69.8 — 532.4 
Other income (expense):
Interest income12.9 31.2 1.5 — 45.6 
Interest expense (114.8)(29.0)(42.2)— (186.0)
Pledged MSR liability expense(255.0)— — — (255.0)
Gain on extinguishment of debt— — 0.9 — 0.9 
Equity in earnings of unconsolidated entity18.5 — — — 18.5 
Other, net (7.3)(1.8)(1.1)— (10.2)
Other income (expense), net(345.7)0.4 (40.9)— (386.2)
Income (loss) before income taxes$125.9 $2.9 $(103.8)$— $24.9 
Year Ended December 31, 2021
Servicing and subservicing fees$773.5 $8.5 $— $— $781.9 
Gain on reverse loans held for investment and HMBS-related borrowings, net
(2.3)82.0 — — 79.7 
Gain on loans held for sale, net (1)46.6 124.5 — (25.3)145.8 
Other revenue, net1.7 34.9 6.2 — 42.7 
Revenue 819.4 249.9 6.2 (25.3)1,050.1 
MSR valuation adjustments, net (1) (4)(143.4)19.6 — 25.3 (98.5)
Operating expenses (2)342.4 172.8 94.1 — 609.3 
Other income (expense):
Interest income8.2 17.7 0.5 — 26.4 
Interest expense (80.8)(22.3)(40.9)— (144.0)
Pledged MSR liability expense(221.3)— — — (221.3)
Loss on extinguishment of debt(15.5)(15.5)
Equity in earnings of unconsolidated entity3.6 3.6 
Other, net 5.2 (2.3)1.2 — 4.1 
Other expense, net(285.1)(6.9)(54.7)— (346.7)
Income (loss) before income taxes$48.5 $89.8 $(142.6)$— $(4.4)
Results of OperationsServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Year Ended December 31, 2020
Servicing and subservicing fees$731.2 $6.0 $0.1 $— $737.3 
Gain on reverse loans held for investment and HMBS-related borrowings, net
7.6 53.1 — — 60.7 
Gain on loans held for sale, net (1)14.7 105.2 — 17.4 137.2 
Other revenue, net4.2 14.9 6.5 — 25.6 
Revenue 757.7 179.3 6.6 17.4 960.9 
MSR valuation adjustments, net (1)(159.5)41.7 — (17.4)(135.2)
Operating expenses (2) (3)331.9 114.4 129.5 — 575.7 
Other income (expense):
Interest income7.1 7.0 1.9 — 16.0 
Interest expense (90.7)(9.8)(8.9)— (109.4)
Pledged MSR liability expense(269.1)— — — (269.1)
Other, net 10.8 0.4 (4.4)— 6.7 
Other expense, net(342.0)(2.5)(11.3)— (355.7)
Income (loss) before income taxes$(75.7)$104.2 $(134.2)$— $(105.7)
(1)Corporate Eliminations for 2022, 2021 and 2020 includes inter-segment derivatives eliminations of $15.7 million, $25.3 million and $17.4 million reported as Gain on loans held for sale, net, respectively, with a corresponding offset in MSR valuation adjustments, net.
(2)Included in Professional services expense for 2022 are reimbursements received from mortgage loan investors related to prior years legal expenses and payments received following resolution of legacy litigation matters of $27.6 million ($19.8 million Servicing and $7.8 million Corporate Items and Other). Professional services expense for 2021 (Servicing) includes $2.5 million reimbursements received from mortgage loan investors related to prior years legal expenses, and 2020 (Corporate Items and Other) includes an $8.0 million recovery of prior expenses received from a mortgage insurer.
(3)In 2020, we executed certain cost re-engineering initiatives to generate further cost savings, some of which qualify as restructuring charges under GAAP, including the partial abandonment of certain leased properties and additional severance costs. As a result of these initiatives, we accelerated the depreciation of facility lease ROU assets and leasehold improvements by $3.3 million, recorded $6.3 million of facility and other related exit costs, and accrued $3.4 million of employee severance costs. Employee-related costs and facility-related costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the consolidated statements of operations. Other costs are primarily reported in Professional services expense and Other expenses. The expenses were all incurred within the Corporate Items and Other segment.
(4)Effective in 2022, we recognize revaluation gains or losses on those Fannie Mae MSRs purchased through the Agency Cash Window Program that are sold to MAV within the Servicing segment (historically reported in the Originations segment). $5.6 million MSR valuation adjustments, net have been reclassified in 2021 from the Originations segment to the Servicing segment to conform to the current segment presentation.
Total AssetsServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
December 31, 2022$11,535.0 $570.5 $293.7 $12,399.2 
December 31, 202110,999.2 823.5 324.4 12,147.1 
December 31, 20209,847.6 379.2 424.3 10,651.1 
Depreciation and Amortization ExpenseServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Year Ended December 31, 2022:    
Depreciation expense$0.9 $0.4 $9.2 $10.5 
Amortization of debt discount and issuance costs0.8 — 9.3 10.1 
Amortization of intangible assets4.3 — — 4.3 
Year Ended December 31, 2021:    
Depreciation expense$0.7 $0.2 $9.3 $10.3 
Amortization of debt discount and issuance costs0.7 — 7.1 7.8 
Amortization of intangible assets0.7 — — 0.7 
Year Ended December 31, 2020:    
Depreciation expense$0.9 $0.1 $18.1 $19.1 
Amortization of debt discount and issuance costs0.5 — 6.5 7.0