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Business Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Business Segment Reporting
Note 17 – Business Segment Reporting
Our business segments reflect the internal reporting that we use to evaluate our operating and financial performance and to assess the allocation of our resources. Our reportable business segments consist of Servicing, Originations, and Corporate Items and Other. During the nine months ended September 30, 2023, there have been no changes to our business segments as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.
Financial information for our segments is as follows:
Three Months Ended September 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Servicing and subservicing fees$236.9 $0.8 $— $— $237.8 
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net(6.1)5.7 — — (0.4)
Gain on loans held for sale, net (1)(0.8)9.0 — — 8.2 
Other revenue, net1.2 5.5 3.2 — 10.0 
Revenue231.3 21.0 3.2 — 255.5 
MSR valuation adjustments, net (1)(21.0)4.6 — — (16.4)
Operating expenses 71.2 22.3 16.5 — 110.0 
Other income (expense):
Interest income5.9 18.7 1.2 — 25.9 
Interest expense (43.3)(20.0)(11.0)— (74.3)
Pledged MSR liability expense(76.5)— — — (76.5)
Earnings of equity method investee2.8 — — — 2.8 
Gain on extinguishment of debt
— — 1.2 — 1.2 
Other 1.2 (0.1)0.2 — 1.3 
Other expense, net(109.9)(1.5)(8.3)— (119.7)
Income (loss) before income taxes$29.3 $1.9 $(21.6)$— $9.5 
Three Months Ended September 30, 2022
Results of Operations ServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Servicing and subservicing fees$215.0 $0.6 $— $— 215.6 
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net(3.6)10.5 — — 6.9 
Gain (loss) on loans held for sale, net (1)0.2 20.7 — (2.0)18.9 
Other revenue, net0.3 6.5 1.5 — 8.3 
Revenue 211.8 38.3 1.5 (2.0)249.7 
MSR valuation adjustments, net (1)22.3 3.6 — 2.0 27.9 
Operating expenses (2)86.1 33.3 22.1 — 141.4 
Other income (expense):
Interest income2.9 10.4 0.5 — 13.7 
Interest expense (30.9)(8.9)(10.6)— (50.4)
Pledged MSR liability expense(65.7)— — — (65.6)
Earnings of equity method investee3.3 — — — 3.3 
Gain (loss) on extinguishment of debt— — — — — 
Other (2.7)(0.6)(0.9)— (4.3)
Other income (expense), net
(93.1)0.8 (11.0)— (103.2)
Income (loss) before income taxes$55.0 $9.5 $(31.5)$— $33.0 
Nine Months Ended September 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Servicing and subservicing fees$705.9 $1.6 $— $— $707.5 
Gain on reverse loans held for investment and HMBS-related borrowings, net3.9 17.7 — — 21.5 
Gain on loans held for sale, net (1)13.0 23.3 — — 36.3 
Other revenue, net2.0 12.6 9.4 — 24.0 
Revenue 724.8 55.2 9.4 — 789.4 
MSR valuation adjustments, net (1)(142.4)8.2 — — (134.2)
Operating expenses230.5 62.1 15.8 — 308.4 
Other income (expense):
Interest income16.0 40.8 3.4 — 60.2 
Interest expense (128.2)(44.0)(32.6)— (204.8)
Pledged MSR liability expense(219.9)— 0.1 — (219.8)
Earnings of equity method investee5.9 — — — 5.9 
Gain on extinguishment of debt
— — 1.2 — 1.2 
Other (2.2)(0.1)0.5 — (1.9)
Other expense, net
(328.4)(3.4)(27.4)— (359.2)
Income (loss) before income taxes$23.5 $(2.2)$(33.8)$— $(12.5)
Nine months ended September 30, 2022
Results of Operations ServicingOriginationsCorporate Items and OtherCorporate Eliminations (1)Business Segments Consolidated
Servicing and subservicing fees$641.7 $1.6 $— $— $643.3 
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net(34.5)51.9 — — 17.4 
Gain (loss) on loans held for sale, net (1)(14.0)46.1 — (15.4)16.7 
Other revenue, net1.1 20.0 5.0 — 26.1 
Revenue594.3 119.6 5.0 (15.4)703.4 
MSR valuation adjustments, net (1)62.7 7.3 — 15.4 85.4 
Operating expenses (2)242.9 122.0 47.9 — 412.8 
Other income (expense):
Interest income9.9 19.9 0.7 — 30.6 
Interest expense (76.3)(18.3)(31.5)— (126.1)
Pledged MSR liability expense(188.4)— 0.1 — (188.3)
Earnings of equity method investee19.3 — — — 19.3 
Gain on extinguishment of debt
— — 0.9 — 0.9 
Other(6.3)(1.7)(0.6)— (8.6)
Other expense, net(241.8)(0.1)(30.5)— (272.3)
Income (loss) before income taxes$172.3 $4.8 $(73.4)$— $103.7 
(1)Corporate Eliminations includes inter-segment derivatives eliminations of $2.0 million and $15.4 million for the three and nine months ended September 30, 2022, respectively, reported as Gain on loans held for sale, net in Originations with a corresponding offset in MSR valuation adjustments, net in Servicing. No such derivatives eliminations were recognized during the three and nine months ended September 30, 2023.
(2)Included in Professional services expense are reimbursements received from mortgage loan investors related to prior year legal expenses and payments received following resolution of legacy litigation matters of $4.3 million (Servicing) and $25.3 million ($18.4 million Servicing and $6.9 million Corporate) during the three and nine months ended September 30, 2022, respectively.
Total AssetsServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
September 30, 2023$11,900.5 $842.5 $268.7 $13,011.7 
December 31, 2022$11,535.0 $570.5 $293.7 $12,399.2 
September 30, 2022$11,322.6 $731.1 $306.4 $12,360.1 
Depreciation and Amortization ExpenseServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Three months ended September 30, 2023
Depreciation expense$0.2 $— $1.3 $1.5 
Amortization of debt issuance costs and discount3.1 — 2.8 5.9 
Amortization of intangibles1.2 — — 1.2 
Three months ended September 30, 2022
Depreciation expense$0.2 $0.1 $2.1 $2.5 
Amortization of debt issuance costs and discount0.2 — 2.2 2.4 
Amortization of intangibles1.2 — — 1.2 
Nine months ended September 30, 2023
Depreciation expense$0.6 $0.2 $4.1 $4.9 
Amortization of debt issuance costs and discount3.8 — 8.2 12.0 
Amortization of intangibles4.2 — — 4.2 
Nine months ended September 30, 2022
Depreciation expense$0.7 $0.3 $6.7 $7.6 
Amortization of debt issuance costs and discount0.6 — 6.9 7.5 
Amortization of intangibles3.3 — — 3.3