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Business Segment Reporting | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
Business Segment Reporting |
Note 18 – Business Segment Reporting
Our business segments reflect the internal reporting that our Chief Executive Officer uses to evaluate our operating and financial performance and to assess the allocation of our resources. Our current reportable business segments consist of Servicing, Originations, and Corporate Items and Other. During the three months ended March 31, 2024, 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, 2023. Effective in the fourth quarter of 2023, the Servicing segment includes CR Limited (CRL), our wholly-owned captive reinsurance subsidiary previously included in the Corporate Items and Other segment. Segment results for the three months ended March 31, 2023 have been recast to conform to the current segment presentation. Financial information for our segments is as follows:
| Three Months Ended March 31, 2024
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  |  |  | Business Segments Consolidated
Servicing and subservicing fees | $ | 204.2 |  |  | $ | 0.3 |  |  | $ | — |  |  |  |  | $ | 204.5 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 8.6 |  |  | 6.8 |  |  | — |  |  |  |  | 15.4 |
Gain on loans held for sale, net | 1.8 |  |  | 9.1 |  |  | — |  |  |  |  | 10.9 |
Other revenue, net | 4.5 |  |  | 3.8 |  |  | — |  |  |  |  | 8.3 |
Revenue | 219.1 |  |  | 20.0 |  |  | — |  |  |  |  | 239.1 |
MSR valuation adjustments, net | (12.5) |  |  | 0.9 |  |  | — |  |  |  |  | (11.6) |
Operating expenses |  |  |  |  |  |  |  |  |
Compensation and benefits | 25.3 |  |  | 10.2 |  |  | 18.1 |  |  |  |  | 53.6 |
Servicing and origination | 13.3 |  |  | 1.4 |  |  | 0.3 |  |  |  |  | 15.0 |
Technology and communications | 6.1 |  |  | 1.7 |  |  | 4.9 |  |  |  |  | 12.7 |
Professional services | 7.1 |  |  | 0.3 |  |  | 4.6 |  |  |  |  | 12.0 |
Occupancy, equipment and mailing | 6.8 |  |  | 0.5 |  |  | 0.4 |  |  |  |  | 7.7 |
Corporate overhead allocations | 10.9 |  |  | 3.9 |  |  | (14.8) |  |  |  |  | — |
Other expenses | 1.1 |  |  | 1.0 |  |  | 1.3 |  |  |  |  | 3.4 |
Operating expenses | 70.6 |  |  | 19.0 |  |  | 14.8 |  |  |  |  | 104.4 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 6.7 |  |  | 9.7 |  |  | 1.1 |  |  |  |  | 17.5 |
Interest expense | (45.8) |  |  | (10.4) |  |  | (11.2) |  |  |  |  | (67.4) |
Pledged MSR liability expense | (44.9) |  |  | — |  |  | — |  |  |  |  | (44.9) |
Earnings of equity method investee | 2.7 |  |  | — |  |  | — |  |  |  |  | 2.7 |
Gain on extinguishment of debt | — |  |  | — |  |  | 1.4 |  |  |  |  | 1.4 |
Other, net | (0.5) |  |  | (0.1) |  |  | — |  |  |  |  | (0.6) |
Other income (expense), net | (81.8) |  |  | (0.8) |  |  | (8.6) |  |  |  |  | (91.3) |
Income (loss) before income taxes | $ | 54.2 |  |  | $ | 1.1 |  |  | $ | (23.4) |  |  |  |  | $ | 31.8 |
| Three Months Ended March 31, 2023
Results of Operations | Servicing |  | Originations |  | Corporate Items and Other |  |  |  | Business Segments Consolidated
Servicing and subservicing fees | $ | 231.8 |  |  | $ | 0.4 |  |  | $ | — |  |  |  |  | 232.2 |
Gain on reverse loans held for investment and HMBS-related borrowings, net | 14.0 |  |  | 7.2 |  |  | — |  |  |  |  | 21.2 |
Gain (loss) on loans held for sale, net | (1.3) |  |  | 4.1 |  |  | — |  |  |  |  | 2.8 |
Other revenue, net | 2.5 |  |  | 3.1 |  |  | — |  |  |  |  | 5.6 |
Revenue | 247.0 |  |  | 14.8 |  |  | — |  |  |  |  | 261.8 |
MSR valuation adjustments, net | (70.9) |  |  | 1.9 |  |  | — |  |  |  |  | (69.0) |
Operating expenses |  |  |  |  |  |  |  |  |
Compensation and benefits | 29.4 |  |  | 9.6 |  |  | 19.0 |  |  |  |  | 58.0 |
Servicing and origination | 15.2 |  |  | 0.2 |  |  | 0.3 |  |  |  |  | 15.7 |
Technology and communications | 6.3 |  |  | 1.7 |  |  | 5.4 |  |  |  |  | 13.4 |
Professional services | 7.9 |  |  | 0.4 |  |  | 4.9 |  |  |  |  | 13.3 |
Occupancy, equipment and mailing | 7.7 |  |  | 0.5 |  |  | 0.6 |  |  |  |  | 8.8 |
Corporate overhead allocations | 11.5 |  |  | 4.8 |  |  | (16.3) |  |  |  |  | — |
Other expenses | 2.3 |  |  | 1.5 |  |  | 1.2 |  |  |  |  | 4.9 |
Operating expenses | 80.3 |  |  | 18.7 |  |  | 15.1 |  |  |  |  | 114.1 |
Other income (expense): |  |  |  |  |  |  |  |  |
Interest income | 4.1 |  |  | 9.0 |  |  | 1.0 |  |  |  |  | 14.1 |
Interest expense | (41.6) |  |  | (9.9) |  |  | (10.8) |  |  |  |  | (62.3) |
Pledged MSR liability expense | (70.3) |  |  | — |  |  | — |  |  |  |  | (70.3) |
Earnings of equity method investee | 0.3 |  |  | — |  |  | — |  |  |  |  | 0.3 |
Gain on extinguishment of debt | — |  |  | — |  |  | — |  |  |  |  | — |
Other, net | (0.4) |  |  | 0.2 |  |  | 1.4 |  |  |  |  | 1.2 |
Other income (expense), net | (107.9) |  |  | (0.7) |  |  | (8.4) |  |  |  |  | (117.0) |
Income (loss) before income taxes | $ | (12.0) |  |  | $ | (2.7) |  |  | $ | (23.6) |  |  |  |  | $ | (38.3) |
Total Assets | Servicing |  | Originations |  | Corporate Items and Other |  |  |  | Business Segments Consolidated
March 31, 2024 | $ | 12,003.9 |  |  | $ | 835.2 |  |  | $ | 250.9 |  |  |  |  | $ | 13,090.1 |
December 31, 2023 | 11,687.6 |  |  | 551.9 |  |  | 274.3 |  |  |  |  | 12,513.7 |

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