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Business Segment Reporting
 6 Months Ended
Jun. 30, 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 June 30, 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 and six months ended June 30, 2023 have been recast to conform to the current segment presentation.
Financial information for our segments is as follows:
Three Months Ended June 30, 2024
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$210.1 $0.7 $— $210.8 
Gain on reverse loans held for investment and HMBS-related borrowings, net
2.8 5.7 — 8.5 
Gain on loans held for sale, net
(0.2)16.7 — 16.5 
Other revenue, net4.4 6.2 — 10.6 
Revenue217.2 29.2 — 246.4 
MSR valuation adjustments, net
(35.8)3.1 — (32.7)
Operating expenses
 
 
 
 
Compensation and benefits24.5 11.3 19.2 55.0 
Servicing and origination 11.2 2.3 0.5 13.9 
Technology and communications6.2 1.7 5.0 13.0 
Professional services2.8 0.5 7.4 10.7 
Occupancy, equipment and mailing6.6 0.5 0.4 7.5 
Corporate overhead allocations10.8 4.3 (15.0)— 
Other expenses 0.9 1.4 1.5 3.9 
Operating expenses63.1 22.0 18.9 104.0 
Other income (expense):
Interest income7.2 14.2 1.1 22.5 
Interest expense (47.0)(14.9)(11.2)(73.1)
Pledged MSR liability expense(46.1)— — (46.1)
Earnings of equity method investee3.1 — — 3.1 
Gain on extinguishment of debt— — — — 
Other, net
(2.9)(0.2)0.4 (2.7)
Other income (expense), net
(85.7)(0.9)(9.6)(96.2)
Income (loss) before income taxes$32.6 $9.4 $(28.5)$13.5 
Three Months Ended June 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$237.2 $0.4 $— 237.6 
Gain on reverse loans held for investment and HMBS-related borrowings, net
(4.1)4.8 — 0.7 
Gain (loss) on loans held for sale, net
15.1 10.2 — 25.3 
Other revenue, net4.5 4.0 — 8.5 
Revenue 252.7 19.3 — 272.0 
MSR valuation adjustments, net
(50.5)1.6 — (48.9)
Operating expenses
 
 
 
 
Compensation and benefits26.7 10.9 20.1 57.7 
Servicing and origination 16.4 1.0 0.2 17.6 
Technology and communications6.1 1.8 5.1 13.0 
Professional services11.3 0.4 (28.6)(16.9)
Occupancy, equipment and mailing7.2 0.5 — 7.7 
Corporate overhead allocations11.1 5.0 (16.2)— 
Other expenses 2.2 1.5 1.4 5.1 
Operating expenses
81.1 21.1 (17.8)84.3 
Other income (expense):
Interest income5.9 13.1 1.2 20.3 
Interest expense (43.3)(14.1)(10.9)(68.3)
Pledged MSR liability expense(73.1)— — (73.0)
Earnings of equity method investee2.9 — — 2.9 
Gain on extinguishment of debt
— — — — 
Other, net
(4.5)(0.2)0.4 (4.4)
Other income (expense), net(112.1)(1.2)(9.2)(122.5)
Income (loss) before income taxes$9.0 $(1.3)$8.7 $16.3 
Six Months Ended June 30, 2024
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$414.3 $1.0 $— $415.3 
Gain on reverse loans held for investment and HMBS-related borrowings, net11.4 12.5 — 23.9 
Gain on loans held for sale, net (1)1.7 25.7 — 27.4 
Other revenue, net8.8 10.0 — 18.8 
Revenue 436.2 49.3 — 485.5 
MSR valuation adjustments, net (1)(48.3)4.0 — (44.3)
Operating expenses
Compensation and benefits49.8 21.5 37.3 108.6 
Servicing and origination 24.4 3.7 0.8 29.0 
Technology and communications12.3 3.4 9.9 25.7 
Professional services9.9 0.8 12.0 22.8 
Occupancy, equipment and mailing13.5 1.0 0.8 15.2 
Corporate overhead allocations21.7 8.2 (29.9)— 
Other expenses 2.0 2.4 2.8 7.2 
Operating expenses133.6 41.0 33.7 208.4 
Other income (expense):
Interest income13.9 23.8 2.3 40.0 
Interest expense (92.8)(25.3)(22.4)(140.5)
Pledged MSR liability expense(91.1)— 0.1 (91.0)
Earnings of equity method investee5.8 — — 5.8 
Gain on extinguishment of debt— — 1.4 1.4 
Other (3.4)(0.3)0.4 (3.4)
Other income (expense), net
(167.6)(1.7)(18.2)(187.5)
Income (loss) before income taxes$86.7 $10.5 $(51.9)$45.3 
Six months ended June 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$469.0 $0.8 $— $469.7 
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net9.9 12.0 — 21.9 
Gain (loss) on loans held for sale, net (1)13.8 14.3 — 28.1 
Other revenue, net7.0 7.1 — 14.1 
Revenue499.8 34.1 — 533.9 
MSR valuation adjustments, net (1)(121.4)3.5 — (117.9)
Operating expenses
Compensation and benefits56.1 20.5 39.2 115.7 
Servicing and origination 31.6 1.1 0.5 33.3 
Technology and communications12.5 3.5 10.5 26.4 
Professional services19.3 0.8 (23.7)(3.6)
Occupancy, equipment and mailing14.9 1.0 0.6 16.5 
Corporate overhead allocations22.6 9.9 (32.4)— 
Other expenses 4.5 3.0 2.7 10.1 
Operating expenses161.4 39.8 (2.7)198.4 
Other income (expense):
Interest income10.1 22.1 2.2 34.4 
Interest expense (84.8)(24.0)(21.7)(130.5)
Pledged MSR liability expense(143.4)— 0.1 (143.3)
Earnings of equity method investee3.1 — — 3.1 
Gain on extinguishment of debt— — — — 
Other(4.9)— 1.8 (3.2)
Other income (expense), net
(220.0)(1.9)(17.6)(239.5)
Income (loss) before income taxes$(3.0)$(4.0)$(15.0)$(22.0)
Total AssetsServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
June 30, 2024$11,904.4 $913.5 $266.8 $13,084.7 
December 31, 202311,687.6 551.9 274.3 12,513.7