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Business Segment Reporting
 9 Months Ended
Sep. 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 September 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 nine months ended September 30, 2023 have been recast to conform to the current segment presentation.
Financial information for our segments is as follows:
Three Months Ended September 30, 2024
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$210.2 $1.0 $— $211.1 
Gain on reverse loans held for investment and HMBS-related borrowings, net
11.9 6.2 — 18.0 
Gain on loans held for sale, net
9.4 16.4 — 25.8 
Other revenue, net4.7 6.1 — 10.8 
Revenue236.1 29.6 — 265.7 
MSR valuation adjustments, net
(35.6)4.1 — (31.5)
Operating expenses
 
 
 
 
Compensation and benefits26.0 11.8 21.7 59.5 
Servicing and origination 8.9 1.8 0.4 11.1 
Technology and communications6.0 1.9 5.3 13.2 
Professional services9.6 0.6 7.2 17.3 
Occupancy, equipment and mailing6.7 0.7 0.5 7.9 
Corporate overhead allocations11.5 4.2 (15.7)— 
Other expenses 0.9 1.3 1.2 3.4 
Operating expenses69.6 22.2 20.6 112.4 
Other income (expense):
Interest income8.4 14.8 1.3 24.5 
Interest expense (46.6)(16.2)(11.4)(74.2)
Pledged MSR liability expense(42.3)— — (42.3)
Earnings of equity method investee0.8 — — 0.8 
Gain on extinguishment of debt— — 0.3 0.3 
Other, net
(3.4)— 0.2 (3.3)
Other income (expense), net
(83.2)(1.4)(9.6)(94.1)
Income (loss) before income taxes$47.7 $10.2 $(30.2)$27.6 
Three Months Ended September 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$236.9 $0.8 $— 237.8 
Gain on reverse loans held for investment and HMBS-related borrowings, net
(6.1)5.7 — (0.4)
Gain (loss) on loans held for sale, net
(0.8)9.0 — 8.2 
Other revenue, net4.4 5.5 — 10.0 
Revenue 234.5 21.0 — 255.5 
MSR valuation adjustments, net
(21.0)4.6 — (16.4)
Operating expenses
 
 
 
 
Compensation and benefits25.2 11.6 18.9 55.7 
Servicing and origination 13.2 2.0 0.3 15.5 
Technology and communications6.1 1.9 5.0 13.1 
Professional services8.2 0.7 4.7 13.5 
Occupancy, equipment and mailing6.8 0.6 0.3 7.7 
Corporate overhead allocations11.4 4.5 (15.9)— 
Other expenses 1.9 1.1 1.5 4.6 
Operating expenses
72.9 22.3 14.8 110.0 
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, net
1.2 (0.1)0.2 1.3 
Other income (expense), net(109.9)(1.5)(8.3)(119.7)
Income (loss) before income taxes$30.7 $1.9 $(23.1)$9.5 
Nine Months Ended September 30, 2024
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$624.5 $2.0 $— $626.5 
Gain on reverse loans held for investment and HMBS-related borrowings, net23.2 18.7 — 41.9 
Gain on loans held for sale, net
11.0 42.2 — 53.2 
Other revenue, net13.5 16.1 — 29.6 
Revenue 672.3 78.9 — 751.2 
MSR valuation adjustments, net
(83.9)8.1 — (75.8)
Operating expenses
Compensation and benefits75.8 33.3 59.1 168.1 
Servicing and origination 33.3 5.5 1.2 40.0 
Technology and communications18.4 5.3 15.3 38.9 
Professional services19.5 1.4 19.1 40.1 
Occupancy, equipment and mailing20.2 1.7 1.3 23.1 
Corporate overhead allocations33.2 12.4 (45.6)— 
Other expenses 2.9 3.7 4.0 10.6 
Operating expenses203.3 63.2 54.3 320.8 
Other income (expense):
Interest income22.3 38.6 3.6 64.5 
Interest expense (139.4)(41.4)(33.8)(214.6)
Pledged MSR liability expense(133.4)— 0.1 (133.3)
Earnings of equity method investee6.7 — — 6.7 
Gain on extinguishment of debt— — 1.8 1.8 
Other (6.9)(0.3)0.5 (6.7)
Other income (expense), net
(250.8)(3.1)(27.8)(281.7)
Income (loss) before income taxes$134.3 $20.7 $(82.1)$72.9 
Nine Months Ended September 30, 2023
Results of Operations ServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
Servicing and subservicing fees$705.9 $1.6 $— $707.5 
Gain (loss) on reverse loans held for investment and HMBS-related borrowings, net3.9 17.7 — 21.5 
Gain (loss) on loans held for sale, net
13.0 23.3 — 36.3 
Other revenue, net11.4 12.6 — 24.0 
Revenue734.3 55.2 — 789.4 
MSR valuation adjustments, net
(142.4)8.2 — (134.2)
Operating expenses
Compensation and benefits81.3 32.1 58.0 171.4 
Servicing and origination 44.8 3.1 0.8 48.8 
Technology and communications18.6 5.4 15.5 39.5 
Professional services27.5 1.4 (19.0)9.9 
Occupancy, equipment and mailing21.7 1.6 0.9 24.2 
Corporate overhead allocations34.0 14.4 (48.4)— 
Other expenses 6.4 4.1 4.2 14.7 
Operating expenses234.2 62.1 12.1 308.4 
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(3.8)(0.1)2.0 (1.9)
Other income (expense), net
(329.9)(3.4)(26.0)(359.2)
Income (loss) before income taxes$27.7 $(2.2)$(38.0)$(12.5)
Total AssetsServicingOriginationsCorporate Items and OtherBusiness Segments Consolidated
September 30, 2024$12,110.2 $856.6 $259.9 $13,226.7 
December 31, 202311,687.6 551.9 274.3 12,513.7