MR. COOPER GROUP INC., 10-Q filed on 10/25/2023
Quarterly Report
v3.23.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2023
Oct. 20, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2023  
Document Transition Report false  
Entity File Number 001-14667  
Entity Registrant Name Mr. Cooper Group Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 91-1653725  
Entity Address, Address Line One 8950 Cypress Waters Blvd  
Entity Address, City or Town Coppell  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75019  
City Area Code 469  
Local Phone Number 549-2000  
Title of 12(b) Security Common stock, $0.01 par value per share  
Trading Symbol COOP  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   65,860,343
Entity Central Index Key 0000933136  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.23.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Assets    
Cash and cash equivalents $ 553 $ 527
Restricted cash 151 175
Mortgage servicing rights at fair value 8,504 6,654
Advances and other receivables, net of reserves of $164 and $137, respectively 758 1,019
Mortgage loans held for sale at fair value 893 893
Property and equipment, net of accumulated depreciation of $136 and $122, respectively 59 65
Deferred tax assets, net 499 703
Other assets 2,010 2,740
Total assets 13,427 12,776
Liabilities and Stockholders’ Equity    
Unsecured senior notes, net 3,147 2,673
Advance, warehouse and MSR facilities, net 3,545 2,885
Payables and other liabilities 1,964 2,633
MSR related liabilities - nonrecourse at fair value 467 528
Total liabilities 9,123 8,719
Commitments and contingencies (Note 16)
Common stock at $0.01 par value - 300 million shares authorized, 93.2 million shares issued 1 1
Additional paid-in-capital 1,081 1,104
Retained earnings 4,256 3,802
Treasury shares at cost - 27.4 million and 24.0 million shares, respectively (1,034) (850)
Total stockholders’ equity 4,304 4,057
Total liabilities and stockholders’ equity $ 13,427 $ 12,776
v3.23.3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Statement of Financial Position [Abstract]    
Advances and other receivables, reserves $ 164 $ 137
Accumulated depreciation $ 136 $ 122
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares, issued (in shares) 93,200,000 93,200,000
Treasury Stock, Common, Shares 27,400,000 24,000,000.0
v3.23.3
Unaudited Condensed Consolidated Statements of Operations - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Revenues:        
Service related, net $ 432 $ 395 $ 1,095 $ 1,610
Net gain on mortgage loans held for sale 142 115 295 551
Total revenues 574 510 1,390 2,161
Expenses:        
Salaries, wages and benefits 166 183 470 614
General and administrative 135 133 370 368
Total expenses 301 316 840 982
Interest income 167 83 369 169
Interest expense (146) (104) (378) (321)
Other income (expense), net 58 (20) 44 197
Total other income (expense), net 79 (41) 35 45
Income before income tax expense 352 153 585 1,224
Less: Income tax expense 77 40 131 302
Net income $ 275 $ 113 $ 454 $ 922
Earnings per share        
Basic $ 4.14 $ 1.59 $ 6.70 $ 12.71
Diluted $ 4.06 $ 1.55 $ 6.58 $ 12.37
v3.23.3
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Total Mr. Cooper Stockholders’ Equity
Non-controlling Interests
Treasury Share Amount
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Total stockholders’ equity $ 3,367 $ 1 $ 1,116 $ 2,879 $ 3,366 $ 1 $ (630)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2021   73,777          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued / (surrendered) under incentive compensation plan (in shares)   898          
Shares issued / (surrendered) under incentive compensation plan (22)   (41)   (22)   19
Share-based compensation 24   24   24    
Repurchase of common stock (in shares)   (4,118)          
Dividends paid to noncontrolling interests (1)         (1)  
Repurchase of common stock (185)       (185)   (185)
Net income 922     922 922 0  
Shares outstanding, ending balance (in shares) at Sep. 30, 2022   70,557          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Total stockholders’ equity 4,037 $ 1 1,094 3,688 4,036 1 (747)
Shares outstanding, beginning balance (in shares) at Jun. 30, 2022   71,651          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued / (surrendered) under incentive compensation plan (in shares)   42          
Shares issued / (surrendered) under incentive compensation plan (1)   (2)   (1)   1
Share-based compensation 7   7   7    
Repurchase of common stock (in shares)   (1,136)          
Dividends paid to noncontrolling interests (1)         (1)  
Repurchase of common stock (50)       (50)   (50)
Net income 113     113 113 0  
Shares outstanding, ending balance (in shares) at Sep. 30, 2022   70,557          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Total stockholders’ equity 4,105 $ 1 1,099 3,801 4,105 0 (796)
Total stockholders’ equity 4,057 $ 1 1,104 3,802 4,057 0 (850)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2022   69,266          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued / (surrendered) under incentive compensation plan (in shares)   902          
Shares issued / (surrendered) under incentive compensation plan (24)   (44)   (24)   20
Share-based compensation 21   21   21    
Repurchase of common stock (in shares)   (4,334)          
Repurchase of common stock (204)       (204)   (204)
Net income 454     454 454 0  
Shares outstanding, ending balance (in shares) at Sep. 30, 2023   65,834          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Total stockholders’ equity 4,079 $ 1 1,074 3,981 4,079 0 (977)
Shares outstanding, beginning balance (in shares) at Jun. 30, 2023   66,848          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued / (surrendered) under incentive compensation plan (in shares)   25          
Shares issued / (surrendered) under incentive compensation plan 0   (1)   0   1
Share-based compensation 8   8   8    
Repurchase of common stock (in shares)   (1,039)          
Repurchase of common stock (58)       (58)   (58)
Net income 275     275 275 0  
Shares outstanding, ending balance (in shares) at Sep. 30, 2023   65,834          
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Total stockholders’ equity $ 4,304 $ 1 $ 1,081 $ 4,256 $ 4,304 $ 0 $ (1,034)
v3.23.3
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Operating Activities    
Net income $ 454 $ 922
Adjustments to reconcile net income to net cash attributable to operating activities:    
Deferred tax expense 108 280
Net gain on mortgage loans held for sale (295) (551)
Provision for servicing and non-servicing reserves 26 22
Fair value changes in mortgage servicing rights 140 (719)
Fair value changes in MSR related liabilities (2) 134
Depreciation and amortization for property and equipment and intangible assets 28 29
Gain on disposition of assets 0 223
Bargain purchase gain (96) 0
Loss on MSR hedging activities 244 329
(Gain) loss on MSR sales (29) 1
Other operating activities 88 75
Repurchases of loan assets out of Ginnie Mae securitizations (984) (2,904)
Mortgage loans originated and purchased for sale, net of fees (10,104) (25,120)
Sales proceeds and loan payment proceeds for mortgage loans held for sale 11,187 30,438
Changes in assets and liabilities:    
Advances and other receivables 291 355
Other assets (137) 287
Payables and other liabilities (147) (211)
Net cash attributable to operating activities 772 3,144
Investing Activities    
Acquisitions of business, net of cash acquired (522) 0
Acquisition of assets (34) 0
Property and equipment additions, net of disposals (16) (14)
Purchase of mortgage servicing rights (1,073) (1,257)
Proceeds on sale of mortgage servicing rights and excess yield 560 284
Other investing activities (3) 0
Net cash attributable to investing activities (1,088) (987)
Financing Activities    
Increase (decrease) in advance, warehouse and MSR facilities 617 (1,933)
Settlements and repayment of excess spread financing (59) (373)
Repurchase of common stock (204) (185)
Other financing activities (36) (29)
Net cash attributable to financing activities 318 (2,520)
Net increase (decrease) in cash, cash equivalents, and restricted cash 2 (363)
Cash, cash equivalents, and restricted cash - beginning of period 702 1,041
Cash, cash equivalents, and restricted cash - end of period(1) [1] 704 678
Supplemental Disclosures of Non-cash Investing Activities    
Equity consideration received from disposition of assets 0 250
Purchase of mortgage servicing rights 40 7
Mortgage servicing rights sales price holdback $ 27 $ 15
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
September 30, 2023September 30, 2022
Cash and cash equivalents$553 $530 
Restricted cash151 148 
Total cash, cash equivalents, and restricted cash$704 $678 
v3.23.3
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2021
Statement of Cash Flows [Abstract]        
Cash and cash equivalents $ 553 $ 527 $ 530  
Restricted cash 151 175 148  
Total cash, cash equivalents, and restricted cash $ 704 [1] $ 702 $ 678 [1] $ 1,041
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
September 30, 2023September 30, 2022
Cash and cash equivalents$553 $530 
Restricted cash151 148 
Total cash, cash equivalents, and restricted cash$704 $678 
v3.23.3
Nature of Business and Basis of Presentation
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Basis of Presentation
1. Nature of Business and Basis of Presentation

Nature of Business
Mr. Cooper Group Inc., collectively with its consolidated subsidiaries, (“Mr. Cooper,” the “Company,” “we,” “us” or “our”) provides servicing, origination and transaction-based services related to single family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers and originators in the country focused on delivering a variety of servicing and lending products, services and technologies. The Company’s corporate website is located at www.mrcoopergroup.com. The Company has provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this Form 10-Q.

Basis of Presentation
The interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2022.

The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the results of the interim periods have been included. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted.

Basis of Consolidation
The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. These investments are initially measured at cost and subsequently adjusted for the Company’s proportionate share of earnings and losses in the investee. Investments in certain companies over which the Company does not exert significant influence are recorded at fair value, or at cost and updated for observable price changes upon election of measurement alternative, at the end of each reporting period. Intercompany balances and transactions on consolidated entities have been eliminated.

Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, macro-economic uncertainty, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers and such differences could be material.

Reclassifications
Certain reclassifications have been made in the 2022 condensed consolidated statement of cash flows to conform to 2023 presentation. Such reclassifications were not material and did not affect total revenues or net income.

Recent Accounting Guidance Adopted
The Company did not adopt any accounting guidance during the nine months ended September 30, 2023 that had a material impact on its condensed consolidated financial statements or disclosures.
v3.23.3
Business Combinations and Asset Acquisitions
 9 Months Ended
Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisitions
2. Acquisitions

Acquisition of Assets
During the second quarter of 2023, the Company acquired certain assets and liabilities of Rushmore Loan Management Services, LLC (“Rushmore”) for a total purchase price of $34 (the “Rushmore Transaction”). Assets acquired were recorded in the Servicing segment and primarily included subservicing contracts and related servicing advances and receivables. The Company accounted for the transaction as an asset acquisition in accordance with Accounting Standard Codification Topic 805, Business Combinations (“ASC 805”), whereby the purchase price represents relative fair value of assets and liabilities acquired.

Acquisition of Roosevelt Management Company and Affiliated Companies
In July 2023, the Company acquired all the equity interests of Roosevelt Management Company, LLC (“Roosevelt”), an investment management firm, and its affiliated subsidiaries including Rushmore Loan Management Services, LLC and other entities, for a total purchase price of $28 (“Roosevelt Transaction”). The Company accounted for the transaction as a business combination in accordance with ASC 805 using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess of the purchase price over those fair values allocated to goodwill. The Company recorded $4 of intangible assets and $21 of goodwill based on preliminary purchase price allocation. $5 and $16 of the goodwill is assigned to Servicing segment and Corporate/Other segment, respectively. The goodwill will be deductible for tax purposes. During the three and nine months ended September 30, 2023, the Company incurred $8 of acquisition costs related to the Roosevelt Transaction. The financial results of Rushmore and Roosevelt were included in Servicing segment and Corporate/Other segment, respectively.

Acquisition of Home Point Capital Inc.
In May 2023, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) and a mortgage servicing rights purchase and sale agreement with Home Point Capital Inc.(“Home Point”), a Delaware corporation. Per the Merger Agreement, the Company agreed to commence a tender offer to acquire all of the outstanding shares of common stock of Home Point, other than certain excluded shares. The Home Point transaction closed in the third quarter of 2023 for total consideration of approximately $658. The transaction was executed in two steps. The first step was a bulk purchase of a portion of Home Point’s mortgage servicing rights (“MSR”) portfolio for $335. The second step of the transaction was the tender offer to acquire outstanding shares of common stock of Home Point, which included the benefit of the cash paid in the bulk purchase of Home Point’s MSR portfolio. The net consideration paid for the two steps of the transaction was $323, or $2.33 per share.
The Company accounted for the combined transaction as a business combination in accordance with ASC 805 using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the purchase price of the acquisition to identifiable assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The Company acquired $1.2 billion MSR and assumed a senior note with a principal balance of $500, among other acquired net assets. The Company recorded a preliminary bargain purchase gain of $96 in “other income (expense), net” within the condensed consolidated statements of operations and reported under Corporate/Other segment, which represents the excess of the estimated fair value of net assets acquired over the consideration transferred. The Company believes it was able to negotiate a bargain purchase price due to seller’s operational challenges from significant market volatility, as well as the seller’s desire to exit the business in an expedited manner. During the three and nine months ended September 30, 2023, the Company incurred $5 of acquisition costs related to the Home Point transaction.
v3.23.3
Discontinued Operations and Disposal Groups
 9 Months Ended
Sep. 30, 2023
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
3. Dispositions

Sale of Mortgage Servicing Platform
On March 31, 2022, the Company completed the sale of certain assets and liabilities of its servicing and subservicing technology platform for performing and non-performing mortgage loans (the “Mortgage Servicing Platform”) to Sagent M&C, LLC (“Sagent”), in exchange for Class A-1 Common Units equal to 19.9% ownership of Sagent, and the sale of certain tangible personal property of the Company used in the conduct of the Mortgage Servicing Platform in exchange for $9.9 in cash, for total consideration of $260 (the “Sagent Transaction”). In connection with the Sagent Transaction, the Company recorded a gain of $223, which was included in “other income (expense), net” within the condensed consolidated statements of operations, and recorded $4 transaction costs during the nine months ended September 30, 2022. No transaction costs were recorded in the three months ended September 30, 2022. The net carrying amount of assets and liabilities transferred in connection with the Sagent Transaction was $31 and reported under Corporate/Other.
The Company accounts for the equity interest under the equity method of accounting, as the Company has the ability to exercise significant influence over Sagent’s operating and financial decisions but does not own a majority equity interest or otherwise control the respective entity. Under the equity method of accounting, the investment is initially stated at cost and subsequently adjusted for additional investments and the Company’s proportionate share of Sagent’s earnings or losses and distributions. The initial cost of the equity interest recorded was $250, which represented the fair value as of March 31, 2022. The Company recorded a loss of $4 and $15 during the three and nine months ended September 30, 2023, respectively, related to the Company's proportionate share of net loss of Sagent. The Company recorded a $5 loss during the three and nine months ended September 30, 2022 related to the Company's proportionate share of net loss of Sagent. The Company’s investment in Sagent was $222 as of September 30, 2023.
v3.23.3
Mortgage Servicing Rights and Related Liabilities
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights and Related Liabilities
4. Mortgage Servicing Rights and Related Liabilities

The following table sets forth the carrying value of the Company’s MSR and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions.
MSRs and Related LiabilitiesSeptember 30, 2023December 31, 2022
MSRs - fair value$8,504 $6,654 
Excess spread financing at fair value$446 $509 
Mortgage servicing rights financing at fair value21 19 
MSR related liabilities - nonrecourse at fair value$467 $528 

Mortgage Servicing Rights
The following table sets forth the activities of MSRs:
Nine Months Ended September 30,
MSRs - Fair Value20232022
Fair value - beginning of period$6,654 $4,223 
Additions:
Servicing retained from mortgage loans sold219 481 
Purchases and acquisitions of servicing rights2,305 1,256 
Dispositions:
Sales of servicing assets and excess yield(555)(293)
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM)304 1,363 
Changes in valuation due to amortization(444)(644)
Other changes(1)
21 22 
Fair value - end of period$8,504 $6,408 

(1)Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments.

During the nine months ended September 30, 2023 and 2022, the Company sold $23,789 and $20,723 in unpaid principal balance (“UPB”) of MSRs, of which $22,640 and $19,692 were retained by the Company as subservicer, respectively.

During the nine months ended September 30, 2023, certain agencies entered into agreements with the Company to purchase excess servicing cash flows (“excess yield”) on certain agency loans with a total UPB of approximately $41,958 for total proceeds of $294. The Company recorded a gain of $33 through the mark-to-market adjustments within “revenues - service related, net” in the condensed consolidated statements of operations.
MSRs are segregated between investor type into agency and non-agency pools (referred to herein as “investor pools”) based upon contractual servicing agreements with investors at the respective balance sheet date to evaluate the MSR portfolio and fair value of the portfolio. Agency investors primarily consist of government sponsored enterprises (“GSE”), such as the Federal Home Loan Mortgage Corp (“Freddie Mac” or “FHLMC”), the Federal National Mortgage Association (“Fannie Mae” or “FNMA”), and the Government National Mortgage Association (“Ginnie Mae” or “GNMA”). Non-agency investors consist of investors in private-label securitizations.

The following table provides a breakdown of UPB and fair value for the Company’s MSRs:
September 30, 2023December 31, 2022
MSRs - UPB and Fair Value Breakdown by Investor PoolsUPBFair ValueUPBFair Value
Agency$501,315 $8,193 $380,502 $6,322 
Non-agency27,009 311 30,880 332 
Total$528,324 $8,504 $411,382 $6,654 

Refer to Note 14, Fair Value Measurements, for further discussion on key weighted-average inputs and assumptions used in estimating the fair value of MSRs.

The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
Option Adjusted Spread(1)
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2023
Mortgage servicing rights$(341)$(655)$(179)$(348)$(80)$(159)
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
December 31, 2022
Mortgage servicing rights$(266)$(511)$(136)$(264)$(61)$(122)

(1)Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (“OAS”) instead of a static discount rate. Refer to Note 14, Fair Value Measurements, for further discussion.

These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects.

Excess Spread Financing - Fair Value
The Company had excess spread financing liability of $446 and $509, with UPB of $76,732 and $83,706 as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 14, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of excess spread financing liability.
The following table shows the hypothetical effect on the Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated:
Option Adjusted Spread(1)
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2023
Excess spread financing$15 $32 $9 $17 
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
December 31, 2022
Excess spread financing$19 $40 $11 $22 

(1)Beginning in the second quarter of 2023, the Company valued excess spread financing using a stochastic OAS instead of a static discount rate. Refer to Note 14, Fair Value Measurements, for further discussion.

These hypothetical sensitivities should be evaluated with care. The effect on fair value of an adverse change in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing. Excess spread financing’s cash flow assumptions that are utilized in determining fair value are based on the related cash flow assumptions used in the financed MSRs. Any fair value change recognized in the financed MSRs attributable to related cash flows assumptions would inherently have an inverse impact on the carrying amount of the related excess spread financing.

Mortgage Servicing Rights Financing - Fair Value
The Company had MSR financing liability of $21 and $19 as of September 30, 2023 and December 31, 2022, respectively. Refer to Note 14, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of the MSR financing liability.
Revenues - Service Related, net
The following table sets forth the items comprising total “revenues - service related, net”:
Three Months Ended September 30,Nine Months Ended September 30,
Revenues - Service Related, net2023202220232022
Contractually specified servicing fees(1)
$440 $371 $1,231 $1,076 
Other service-related income(1)
25 22 58 94 
Incentive and modification income(1)
18 4 32 22 
Servicing late fees(1)
24 19 68 57 
Mark-to-market adjustments - Servicing
MSR MTM270 239 304 1,363 
Loss on MSR hedging activities(192)(100)(244)(329)
(Loss) gain on MSR sales(3)(2)29 (1)
Reclassifications(2)
(8)(10)(26)(22)
Excess spread / MSR financing MTM(4)(3)2 (134)
Total mark-to-market adjustments - Servicing63 124 65 877 
Amortization, net of accretion
MSR amortization(171)(183)(444)(644)
Excess spread accretion11 14 32 74 
Total amortization, net of accretion(160)(169)(412)(570)
Originations service fees(3)
18 20 45 86 
Corporate/Xome related service fees22 22 62 56 
Other(4)
(18)(18)(54)(88)
Total revenues - Service Related, net$432 $395 $1,095 $1,610 

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $175 and $172 for the three months ended September 30, 2023 and 2022, respectively, and $528 and $488 for the nine months ended September 30, 2023 and 2022, respectively.
(2)Reclassifications include the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio.
(3)Amounts include fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and include loan application, underwriting, and other similar fees.
(4)Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.
v3.23.3
Advances and Other Receivables
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Advances and Other Receivables
5. Advances and Other Receivables

Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetSeptember 30, 2023December 31, 2022
Servicing advances, net of $12 purchase discount
$813 $1,053 
Receivables from agencies, investors and prior servicers, net of $7 purchase discount
109 103 
Reserves(164)(137)
Total advances and other receivables, net$758 $1,019 
The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended September 30,Nine Months Ended September 30,
Reserves for Advances and Other Receivables2023202220232022
Balance - beginning of period$156 $150 $137 $167 
Provision8 10 26 22 
Reclassifications(1)
11 9 27 31 
Write-offs(11)(26)(26)(77)
Balance - end of period$164 $143 $164 $143 

(1)Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

Purchase Discount for Advances and Other Receivables
The following tables set forth the activities of the purchase discounts for advances and other receivables:
Three Months Ended September 30,
20232022
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$9 $7 $14 $8 
Addition from acquisition(1)
4 — — — 
Utilization of purchase discounts(1)— (2)(1)
Balance - end of period$12 $7 $12 $7 

Nine Months Ended September 30,
20232022
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period $12 $7 $19 $12 
Addition from acquisition(1)
4 — — — 
Utilization of purchase discounts(4)— (7)(5)
Balance - end of period$12 $7 $12 $7 

(1)In connection with the acquisition of Home Point during the third quarter of 2023, the Company recorded the acquired advances and other receivables at estimate fair value as of the acquisition date, which resulted in a purchase discount of $4. Refer to Note 2, Acquisitions, for discussion of the Home Point acquisition.

Credit Loss for Advances and Other Receivables
As of September 30, 2023, the total current expected credit loss (“CECL”) reserve was $36, of which $29 and $7 were recorded in reserves and purchase discount for advances and other receivables, respectively. As of September 30, 2022, the total CECL reserve was $34, of which $27 and $7 were recorded in reserves and purchase discount for advances and other receivables, respectively. There were no material changes to CECL reserves during the three and nine months ended September 30, 2023 and 2022.

The Company determined that the credit-related risk associated with applicable financial instruments typically increases with the passage of time. The CECL reserve methodology considers these financial instruments collectible to a point in time of 39 months. Any projected remaining balance at the end of the collection period is considered a loss and factors into the overall CECL loss rate required.
v3.23.3
Mortgage Loans Held for Sale
 9 Months Ended
Sep. 30, 2023
Mortgage Loans Held for Sale and Investment [Abstract]  
Mortgage Loans Held for Sale
6. Mortgage Loans Held for Sale

Mortgage loans held for sale are recorded at fair value as set forth below:
Mortgage Loans Held for SaleSeptember 30, 2023December 31, 2022
Mortgage loans held for sale – UPB$932 $921 
Mark-to-market adjustment(1)
(39)(28)
Total mortgage loans held for sale$893 $893 

(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in “revenues - net gain on mortgage loans held for sale” in the condensed consolidated statements of operations.

The following table sets forth the activities of mortgage loans held for sale:
Nine Months Ended September 30,
Mortgage Loans Held for Sale20232022
Balance - beginning of period$893 $4,381 
Loans sold and loan payments received(11,146)(30,648)
Mortgage loans originated and purchased, net of fees10,155 25,120 
Repurchase of loans out of Ginnie Mae securitizations(1)
984 2,904 
Net change in unrealized gain (loss) on retained loans held for sale10 (177)
Net transfers of mortgage loans held for sale(2)
(3)1 
Balance - end of period$893 $1,581 

(1)The Company has the optional right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.
(2)Amounts reflect transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.

For the nine months ended September 30, 2023 and 2022, the Company recorded a total realized gain of $42 and loss of $208 from total sales proceeds of $10,990 and $30,185, respectively, on the sale of mortgage loans held for sale.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
September 30, 2023December 31, 2022
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$41 $32 $102 $87 

(1)Non-accrual UPB includes $32 and $90 of UPB related to Ginnie Mae repurchased loans as of September 30, 2023 and December 31, 2022, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $26 and $65 as of September 30, 2023 and December 31, 2022, respectively.
v3.23.3
Loans Subject to Repurchase from Ginnie Mae
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Loans Subject to Repurchase from Ginnie Mae 7. Loans Subject to Repurchase from Ginnie Mae Loans are sold to Ginnie Mae in conjunction with the issuance of mortgage-backed securities. The Company, as the issuer of the mortgage-backed securities, has the unilateral right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including payments not being received from borrowers for greater than 90 days. Once the Company has the unilateral right to repurchase a delinquent loan, it has effectively regained control over the loan and recognizes these rights to the loan on its condensed consolidated balance sheets and establishes a corresponding repurchase liability regardless of the Company’s intention to repurchase the loan. The Company had loans subject to repurchase from Ginnie Mae of $1,027 and $1,865 as of September 30, 2023 and December 31, 2022, respectively, which are included in both “other assets” and “payables and other liabilities” in the condensed consolidated balance sheets.
v3.23.3
Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets 8. Goodwill and Intangible Assets The Company had goodwill of $141 and $120, and intangible assets of $30 and $8 as of September 30, 2023 and December 31, 2022, respectively. In connection with the Rushmore Transaction during the second quarter of 2023, the Company recorded $23 of intangible assets, which primarily consist of subservicing customer relationships. In connection with the Roosevelt Transaction during the third quarter of 2023, the Company recorded $4 of intangible assets and $21 of goodwill. See Note 2, Acquisitions, for further details. Goodwill and intangible assets are included in “other assets” within the condensed consolidated balance sheets.
v3.23.3
Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
9. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to interest rate risks related to mortgage loans held for sale and IRLCs (“the pipeline”) and the MSR portfolio. The Company economically hedges the pipeline separately from the MSR portfolio primarily using third-party derivative instruments. Such derivative instruments utilized by the Company include IRLCs, LPCs, forward MBS and Treasury futures. The changes in value on the derivative instruments associated with pipeline hedging are recorded in earnings as a component of “revenues - net gain on mortgage loans held for sale” on the condensed consolidated statements of operations and condensed consolidated statement of cash flows, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in “revenues - service related, net” on the condensed consolidated statements of operations and in “(gain) loss on MSR hedging activities” on the condensed consolidated statements of cash flows.
The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
September 30, 2023Nine Months Ended September 30, 2023
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2023$304 $6 $(4)
Derivative financial instruments
IRLCs2023$813 $22 $— 
LPCs2023121 1 — 
Forward MBS trades20231,383 13 74 
Treasury futures20235 — — 
Total derivative financial instruments - assets$2,322 $36 $74 
Liabilities
Derivative financial instruments
IRLCs2023$40 $— $— 
LPCs2023288 2 — 
Forward MBS trades20231,249 28 (97)
Treasury futures20232,353 65 (196)
Total derivative financial instruments - liabilities$3,930 $95 $(293)

September 30, 2022Nine Months Ended September 30, 2022
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2022$439 $(3)$(28)
Derivative financial instruments
IRLCs2022$1,118 $21 $(113)
LPCs202253 1 (2)
Forward MBS trades20222,296 74 542 
Treasury futures2022— — 4 
Total derivative financial instruments - assets$3,467 $96 $431 
Liabilities
Derivative financial instruments
IRLCs2022$551 $8 $(8)
LPCs2022223 5 (2)
Forward MBS trades2022458 19 (72)
Treasury futures2022806 62 (262)
Total derivative financial instruments - liabilities$2,038 $94 $(344)
As of September 30, 2023, the Company held $135 and $8 in collateral deposits and collateral obligations on derivative instruments, respectively. As of December 31, 2022 the Company held $49 and $1 in collateral deposits and collateral obligations on derivative instruments, respectively. Collateral deposits and collateral obligations are recorded in “other assets” and “payables and other liabilities”, respectively, in the Company’s condensed consolidated balance sheets. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the condensed consolidated balance sheets.
v3.23.3
Indebtedness
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Indebtedness
10. Indebtedness

Advance, Warehouse and MSR Facilities
September 30, 2023December 31, 2022
Maturity DateCollateralCapacity AmountOutstandingCollateral PledgedOutstandingCollateral Pledged
Advance Facilities
$350 advance facilityOctober 2024Servicing advance receivables$350 $129 $166 $150 $189 
$250 advance facility(1)
November 2024Servicing advance receivables250 207 284 308 410 
$250 advance facilityJanuary 2024Servicing advance receivables250 177 200 171 209 
$75 advance facilityDecember 2023Servicing advance receivables75 35 52 40 45 
Advance facilities principal amount 548 702 669 853 
Warehouse Facilities
$1,500 warehouse facilityJune 2024Mortgage loans or MBS1,500 162 163 206 272 
$750 warehouse facilityJune 2024Mortgage loans or MBS750 115 150 135 133 
$750 warehouse facilityOctober 2024Mortgage loans or MBS750 124 130 202 209 
$500 warehouse facilityJune 2024Mortgage loans or MBS500 39 44 76 80 
$500 warehouse facility(2)
August 2024Mortgage loans or MBS500 88 90 31 32 
$300 warehouse facilityNovember 2023Mortgage loans or MBS300 137 141 115 117 
$250 warehouse facility(3)
September 2025Mortgage loans or MBS250 14 16 14 17 
$200 warehouse facilityDecember 2024Mortgage loans or MBS200 48 50 18 21 
$200 warehouse facilityJanuary 2024Mortgage loans or MBS200 45 70 — — 
$100 warehouse facilityApril 2024Mortgage loans or MBS100 40 51 19 28 
$100 warehouse facilityApril 2024Mortgage loans or MBS100 ————
$75 warehouse facilityDecember 2023Mortgage loans or MBS75 5511
$1 warehouse facilityDecember 2023Mortgage loans or MBS1 — — — — 
Warehouse facilities principal amount817 910 817 910 
MSR Facilities
$1,500 warehouse facility(1)
November 2024MSR1,500 250 2,303 260 2,284 
$1,500 warehouse facilityApril 2025MSR1,500 900 1,324 380 927 
$750 warehouse facility(3)
September 2025MSR750 3251,3913801,482
$500 warehouse facility June 2025MSR500 255705365732
$500 warehouse facilityApril 2025MSR500 210396——
$500 warehouse facilityJune 2025MSR500 225434——
$50 warehouse facilityNovember 2024MSR50 30672574
MSR facilities principal amount 2,1956,6201,4105,499
Advance, warehouse and MSR facilities principal amount 3,560 8,232 2,896 7,262 
Unamortized debt issuance costs(15)(11)
Advance, warehouse and MSR facilities, net$3,545$2,885

(1)Total capacity for this facility is $1,750, of which $250 is internally allocated for advance financing and $1,500 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations.
(2)In October 2023, the Company decreased the capacity to $350.
(3)The capacity amount for this facility is $1,000, of which $750 is a sublimit for MSR financing.
The weighted average interest rate for advance facilities was 7.8% and 4.5% for the three months ended September 30, 2023 and 2022, respectively, and 7.6% and 3.4% for the nine months ended September 30, 2023 and 2022, respectively. The weighted average interest rate for warehouse and MSR facilities was 7.8% and 4.6% for the three months ended September 30, 2023 and 2022, respectively, and 7.4% and 3.3% for the nine months ended September 30, 2023 and 2022, respectively.

Unsecured Senior Notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesSeptember 30, 2023December 31, 2022
$850 face value, 5.500% interest rate payable semi-annually, due August 2028
$850 $850 
$650 face value, 5.125% interest rate payable semi-annually, due December 2030
650 650 
$600 face value, 6.000% interest rate payable semi-annually, due January 2027
600 600 
$600 face value, 5.750% interest rate payable semi-annually, due November 2031
600 600 
$550 face value, 5.000% interest rate payable semi-annually, due February 2026(1)
500 — 
Unsecured senior notes principal amount3,200 2,700 
Purchase discount(1) and unamortized debt issuance costs
(53)(27)
Unsecured senior notes, net $3,147 $2,673 

(1)In connection with the Home Point transaction in the third quarter of 2023, the Company assumed an unsecured senior note with a principal balance of $500 and recorded a purchase discount of $32 on the acquisition date, of which $2 has been accreted in the nine months ended September 30, 2023. See Note 2, Acquisitions, for further details.

The indentures provide that on or before certain fixed dates, the Company may redeem up to 40% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased or redeemed during the nine months ended September 30, 2023 and 2022.

As of September 30, 2023, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2023 through 2025$— 
2026500 
2027600 
Thereafter2,100 
Total unsecured senior notes principal amount$3,200 

Interest Expense
Interest expense primarily includes interest incurred on advance, warehouse and MSR facilities, unsecured senior notes, excess spread financing and compensating bank balances, as well as bank fees. The Company incurred interest expense related to advance, warehouse and MSR facilities, unsecured senior notes and excess spread financing of $131 and $342 for the three and nine months ended September 30, 2023, respectively, and $90 and $266 for the three and nine months ended September 30, 2022, respectively.

Financial Covenants
The Company’s credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of September 30, 2023.
v3.23.3
Securitizations and Financings
 9 Months Ended
Sep. 30, 2023
Variable Interest Entities and Securitizations [Abstract]  
Securitizations and Financings
11. Securitizations and Financings

Variable Interest Entities
In the normal course of business, the Company enters into various types of on- and off-balance sheet transactions with special purpose entities (“SPEs”) determined to be VIEs, which primarily consist of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which the Company transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets.

The Company has determined that the SPEs created in connection with certain advance facilities trusts should be consolidated as the Company is the primary beneficiary of each of these entities.

A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s condensed consolidated balance sheets is presented below:
September 30, 2023December 31, 2022
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings		Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$92 $78 
Advances and other receivables, net366 398 
Total assets$458 $476 
Liabilities
Advance facilities, net(1)
$306 $321 
Payables and other liabilities1 1 
Total liabilities$307 $322 

(1)Refer to advance facilities in Note 10, Indebtedness, for additional information.

The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company:
Unconsolidated Securitization TrustsSeptember 30, 2023December 31, 2022
Total collateral balances - UPB$901 $976 
Total certificate balances$876 $949 

The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of September 30, 2023 and December 31, 2022. Therefore, it does not have a significant maximum exposure to loss related to these unconsolidated VIEs.

A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below:
Principal Amount of Transferred Loans 60 Days or More Past DueSeptember 30, 2023December 31, 2022
Unconsolidated securitization trusts$93 $119 
v3.23.3
Earnings Per Share
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Earnings Per Share
12. Earnings Per Share

Basic earnings per share of common stock is computed by dividing net income by the weighted average number of common stock outstanding during the period. Diluted earnings per share of common stock is computed by dividing net income by the sum of the weighted average number of shares of common stock and any dilutive securities outstanding during the period. The Company’s potentially dilutive securities are share-based awards. The Company applies the treasury stock method to determine the dilutive weighted average number of shares of common stock outstanding based on the outstanding share-based awards. As of September 30, 2023 and December 31, 2022, the Company had 10 million preferred shares authorized at par value of $0.00001 per share, with zero shares issued and outstanding and aggregate liquidation preference of zero dollars.

The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
Computation of Earnings Per Share2023202220232022
Net income$275 $113 $454 $922 
Weighted average shares of common stock outstanding (in thousands):
Basic66,424 71,175 67,719 72,569 
Dilutive effect of stock awards1,244 1,703 1,319 1,988 
Diluted67,668 72,878 69,038 74,557 
Earnings per common share
Basic$4.14 $1.59 $6.70 $12.71 
Diluted$4.06 $1.55 $6.58 $12.37 
v3.23.3
Income Taxes
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes
13. Income Taxes

The effective tax rate for operations was 21.7% and 22.3% for the three and nine months ended September 30, 2023, and 26.4% and 24.7% for the three and nine months ended September 30, 2022, respectively. The effective tax rates differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.

The change in effective rate during the three and nine months ended September 30, 2023 as compared to 2022 is primarily attributable to the impact of quarterly discrete tax items relative to income before taxes for the respective period, including the excess tax benefit from stock-based compensation.
v3.23.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements
14. Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement, and should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, a three-tiered fair value hierarchy has been established based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs).

There have been no significant changes to the valuation techniques and inputs used by the Company in estimating fair values of Level 2 and Level 3 assets and liabilities as disclosed in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2022, with the exception of the following:
Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. Beginning in the second quarter of 2023, the Company valued MSRs using a stochastic option adjusted spread (OAS) instead of a static discount rate. OAS is the incremental spread added to the risk-free rate to reflect embedded (prepayment) optionality and other risk inherent in the MSRs to discount cash flows. The cash flow assumptions used in the discounted cash flow model incorporate prepayment speeds, OAS, costs to service, delinquencies, ancillary revenues, recapture rates and other assumptions, with the key assumptions being mortgage prepayment speeds, OAS, and cost to service. The cash flow assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by the Company and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third-party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, the Company classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Mortgage Servicing Rights and Related Liabilities, for more information.

Excess Spread Financing (Level 3) – The Company estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. Beginning in the second quarter of 2023, the Company valued excess spread financing using a stochastic OAS instead of a static discount rate. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds and OAS. Quarterly, management obtains a third-party valuation to assess the reasonableness of the fair value calculations provided by the internal cash flow model. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, the Company classifies these valuations as Level 3 in the fair value disclosures. Excess spread financing is recorded in MSR related liabilities within the condensed consolidated balance sheets.

The following tables present the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis:
 September 30, 2023
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$893 $— $792 $101 
Mortgage servicing rights8,504 — — 8,504 
Equity investments9 1 — 8 
Derivative financial instruments
IRLCs22 — — 22 
LPCs1 — — 1 
Forward MBS trades13 — 13 — 
Liabilities
Derivative financial instruments
LPCs2 — — 2 
Forward MBS trades28 — 28 — 
Treasury futures65 — 65 — 
Mortgage servicing rights financing21 — — 21 
Excess spread financing446 — — 446 
 December 31, 2022
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$893 $— $819 $74 
Mortgage servicing rights6,654 — — 6,654 
Equity investments47 2 — 45 
Derivative financial instruments
IRLCs22 — — 22 
Forward MBS trades8 — 8 — 
LPCs1 — — 1 
Liabilities
Derivative financial instruments
Forward MBS trades9 — 9 — 
LPCs1 — — 1 
Treasury futures14 — 14 — 
Mortgage servicing rights financing19 — — 19 
Excess spread financing509 — — 509 

The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:
Nine Months Ended September 30, 2023
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsMortgage loans held for saleEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$6,654 $74 $45 $22 $509 $19 
Changes in fair value included in earnings(140)3 (37)— (4)2 
Purchases/additions (1)
2,305 130 — — — — 
Issuances219 — — — — — 
Sales/dispositions (2)
(555)(105)— — — — 
Repayments— (3)— — (5)— 
Settlements— — — — (54)— 
Other changes21 2 — — — — 
Balance - end of period$8,504 $101 $8 $22 $446 $21 
Nine Months Ended September 30, 2022
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$4,223 $54 $134 $768 $10 
Changes in fair value included in earnings719 (9)(113)124 10 
Purchases1,256 — — — — 
Issuances481 — — — — 
Sales(293)— — — — 
Repayments— — — (293)— 
Settlements— — — (80)— 
Other changes22 — — — — 
Balance - end of period$6,408 $45 $21 $519 $20 

(1)Additions for mortgages loans held for sale include loans that are purchased or transferred in.
(2)Dispositions for mortgage loans held for sales include loans that are sold or transferred out.

The Company had immaterial LPCs assets and liabilities as of September 30, 2023 and 2022. No transfers were made in or out of Level 3 fair value assets and liabilities for the Company during the nine months ended September 30, 2023 and 2022.
The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
September 30, 2023December 31, 2022
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
MSRs(1)
Option adjusted spread(2)
6.9 %12.3 %8.0 %N/AN/AN/A
Discount rateN/AN/AN/A10.4 %13.7 %11.4 %
Prepayment speed6.1 %9.8 %7.0 %6.3 %12.2 %7.2 %
Cost to service per loan(3)
$56 $151 $80 $54 $155 $80 
Average life(4)
8.2 years8.1 years
Mortgage loans held for sale
Market pricing45.0 %99.5 %88.3 %37.3 %114.7 %77.4 %
IRLCs
Value of servicing (reflected as a percentage of loan commitment)0.8 %4.6 %1.9 %(0.6)%3.9 %2.3 %
Excess spread financing(1)
Option adjusted spread(2)
7.0 %12.3 %8.8 %N/AN/AN/A
Discount rateN/AN/AN/A10.0 %13.8 %11.3 %
Prepayment speed7.5 %10.5 %8.5 %6.9 %13.3 %9.2 %
Average life(4)
6.7 years6.6 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates6.5 %8.8 %7.7 %5.2 %8.6 %7.1 %
Annual advance recovery rates12.6 %15.4 %13.5 %15.9 %20.6 %17.3 %

(1)The inputs are weighted by investor.
(2)OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. See discussion on methodology above.
(3)Presented in whole dollar amounts.
(4)Average life is included for informational purposes.
The tables below present a summary of the estimated carrying amount and fair value of the Company’s financial instruments not carried at fair value:
 September 30, 2023
 Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$553 $553 $— $— 
Restricted cash151 151 — — 
Advances and other receivables, net758 — — 758 
Loans subject to repurchase from Ginnie Mae1,027 — 1,027 — 
Financial liabilities
Unsecured senior notes, net3,147 — 2,815 — 
Advance, warehouse and MSR facilities, net3,545 — 3,560 — 
Liability for loans subject to repurchase from Ginnie Mae1,027 — 1,027 — 

December 31, 2022
Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$527 $527 $— $— 
Restricted cash175 175 — — 
Advances and other receivables, net1,019 — — 1,019 
Loans subject to repurchase from Ginnie Mae1,865 — 1,865 — 
Financial liabilities
Unsecured senior notes, net2,673 — 2,209 — 
Advance, warehouse and MSR facilities, net2,885 — 2,896 — 
Liability for loans subject to repurchase from Ginnie Mae1,865 — 1,865 — 
v3.23.3
Capital Requirements
 9 Months Ended
Sep. 30, 2023
Mortgage Banking [Abstract]  
Capital Requirements
15. Capital Requirements

Fannie Mae, Freddie Mac, Ginnie Mae and certain private label mortgage investors require the Company to maintain minimum net worth (“capital”) requirements, as specified in the respective selling and servicing agreements. In addition, these investors may require capital ratios in excess of the stated requirements to approve large servicing transfers. To the extent that these requirements are not met, the Company’s secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of the Company’s selling and servicing agreements, which would prohibit the Company from further originating or securitizing these specific types of mortgage loans or being an approved servicer. The Company’s various capital requirements related to its outstanding selling and servicing agreements are measured based on the Company’s primary operating subsidiary, Nationstar Mortgage LLC, as well as Rushmore Loan Management Services, LLC, which was acquired during the third quarter of 2023 in connection with the Roosevelt Transaction. As of September 30, 2023, the Company was in compliance with its selling and servicing capital requirements.
v3.23.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
16. Commitments and Contingencies

Litigation and Regulatory
The Company and its subsidiaries are routinely and currently involved in a number of legal proceedings, including, but not limited to, judicial, arbitration, regulatory and governmental proceedings related to matters that arise in connection with the conduct of the Company’s business. While it is not possible to predict the outcome of any of these matters, based on the Company’s assessment of the facts and circumstances, it does not believe any of these matters, individually or in the aggregate, will have a material adverse effect on the financial position, results of operations or cash flows of the Company. However, actual outcomes may differ from those expected and could have a material effect on our financial position, results of operations, or cash flows in a future period.

The Company will continue to monitor legal matters for further developments that could affect the amount of the accrued liability that has been previously established. Legal-related expenses for the Company include legal settlements and the fees paid to external legal service providers and are included in general and administrative expenses on the condensed consolidated statements of operations. The Company recorded legal-related expenses, net of recoveries, which includes legal settlements and fees paid to external legal service providers, of $8 and $29 during the three and nine months ended September 30, 2023, respectively, and $7 and $15 for the three and nine months ended September 30, 2022, respectively, which are included in “expenses - general and administrative” on the unaudited condensed consolidated statements of operations. Management currently believes the aggregate range of reasonably possible loss is $2 to $3 in excess of the accrued liability (if any) related to those matters as of September 30, 2023. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate.

Other Loss Contingencies
As part of the Company’s ongoing operations, it acquires servicing rights of mortgage loan portfolios that are subject to indemnification based on the representations and warranties of the seller. From time to time, the Company will seek recovery under these representations and warranties for incurred costs. As of September 30, 2023, the Company believes all recorded balances for which recovery is sought from the seller are valid claims, and no evidence suggests additional reserves are warranted.

As a seller of mortgage loans to Agencies and other third parties, the Company may be required to indemnify or repurchase mortgage loans that fail to meet certain customary representations and warranties made in conjunction with sales of mortgage loans. The repurchase reserve liability related to such customary representations and warranties was $81 and $22 as of September 30, 2023 and December 31, 2022, respectively, which are included in “payables and other liabilities” within the condensed consolidated balance sheets.

Loan and Other Commitments
The Company enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. The Company also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 9, Derivative Financial Instruments, for more information.
v3.23.3
Segment Information
 3 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information
17. Segment Information

The Company’s segments reflect the internal reporting the chief operating decision maker uses to evaluate operating performance and are based upon the Company’s organizational structure, which focuses primarily on the services offered. A brief description of our current business segments is as follows:

Servicing: This segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO.

During the three months ended September 30, 2023, the Company collapsed a securitization with a bond balance of $82, secured by mortgage loans with an approximate UPB of $207. The loans were sold to a third party. A net gain on sale of $67 was recorded on the transaction, which was included in “gain on mortgage loans held for sale”, within the condensed statements of operations and reported under Servicing.
Originations: This segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers.

Corporate/Other: Functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, or headcount percentage for shared services. During the fourth quarter of 2022, the Company began allocating shared services based on headcount instead of an estimate of percentage use as it changed its segment measures provided to and used by the chief operating decision maker. As a result, all costs for shared services are allocated to individual segments based on headcount. The Company recast segment information for the historical periods presented herein to reflect the allocation method change and to conform to the current presentation. The change affects total expenses for Servicing and Originations segments and Corporate/Other, but had no effect on condensed consolidated statements of operations. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to the Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties. Eliminations are included in Corporate/Other, including the eliminations related to intersegment hedge fair value changes.

The following tables present financial information by segment:
 Three Months Ended September 30, 2023
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$392 $18 $22 $432 
Net gain on mortgage loans held for sale72 70 — 142 
Total revenues464 88 22 574 
Total expenses172 58 71 301 
Interest income157 10 — 167 
Interest expense(88)(11)(47)(146)
Other income, net— — 58 58 
Total other income (expenses), net69 (1)11 79 
Income (loss) before income tax expense$361 $29 $(38)$352 
Depreciation and amortization for property and equipment and intangible assets$4 $2 $4 $10 
Total assets $10,916 $868 $1,643 $13,427 

Three Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$353 $20 $22 $395 
Net (loss) gain on mortgage loans held for sale(21)136 — 115 
Total revenues332 156 22 510 
Total expenses147 111 58 316 
Interest income71 12 — 83 
Interest expense(53)(11)(40)(104)
Other expense, net— — (20)(20)
Total other income (expenses), net18 1 (60)(41)
Income (loss) before income tax expense$203 $46 $(96)$153 
Depreciation and amortization for property and equipment and intangible assets$6 $5 $(2)$9 
Total assets $9,703 $1,252 $1,860 $12,815 
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Pay vs Performance Disclosure        
Net Income (Loss) $ 275 $ 113 $ 454 $ 922
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Nature of Business and Basis of Presentation (Policies)
 9 Months Ended
Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of presentation
Basis of Presentation
The interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2022.
The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, all adjustments, consisting of normal recurring items, considered necessary for a fair presentation of the results of the interim periods have been included. Dollar amounts are reported in millions, except per share data and other key metrics, unless otherwise noted
Basis of consolidation Basis of ConsolidationThe condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. These investments are initially measured at cost and subsequently adjusted for the Company’s proportionate share of earnings and losses in the investee. Investments in certain companies over which the Company does not exert significant influence are recorded at fair value, or at cost and updated for observable price changes upon election of measurement alternative, at the end of each reporting period. Intercompany balances and transactions on consolidated entities have been eliminated.
Use of estimates
Use of Estimates
The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, macro-economic uncertainty, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers and such differences could be material.
Reclassification
Reclassifications
Certain reclassifications have been made in the 2022 condensed consolidated statement of cash flows to conform to 2023 presentation. Such reclassifications were not material and did not affect total revenues or net income.
Recent accounting guidance adopted Recent Accounting Guidance AdoptedThe Company did not adopt any accounting guidance during the nine months ended September 30, 2023 that had a material impact on its condensed consolidated financial statements or disclosures.
v3.23.3
Mortgage Servicing Rights and Related Liabilities (Tables)
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
Schedule of servicing assets at fair value
The following table sets forth the carrying value of the Company’s MSR and the related liabilities. In estimating the fair value of all mortgage servicing rights and related liabilities, the impact of the current environment was considered in the determination of key assumptions.
MSRs and Related LiabilitiesSeptember 30, 2023December 31, 2022
MSRs - fair value$8,504 $6,654 
Excess spread financing at fair value$446 $509 
Mortgage servicing rights financing at fair value21 19 
MSR related liabilities - nonrecourse at fair value$467 $528 
The following table sets forth the activities of MSRs:
Nine Months Ended September 30,
MSRs - Fair Value20232022
Fair value - beginning of period$6,654 $4,223 
Additions:
Servicing retained from mortgage loans sold219 481 
Purchases and acquisitions of servicing rights2,305 1,256 
Dispositions:
Sales of servicing assets and excess yield(555)(293)
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM)304 1,363 
Changes in valuation due to amortization(444)(644)
Other changes(1)
21 22 
Fair value - end of period$8,504 $6,408 

(1)Amounts primarily represent negative fair values reclassified from the MSR asset to reserves as underlying loans are removed from the MSR and other reclassification adjustments.
The following table provides a breakdown of UPB and fair value for the Company’s MSRs:
September 30, 2023December 31, 2022
MSRs - UPB and Fair Value Breakdown by Investor PoolsUPBFair ValueUPBFair Value
Agency$501,315 $8,193 $380,502 $6,322 
Non-agency27,009 311 30,880 332 
Total$528,324 $8,504 $411,382 $6,654 
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
Option Adjusted Spread(1)
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2023
Mortgage servicing rights$(341)$(655)$(179)$(348)$(80)$(159)
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
December 31, 2022
Mortgage servicing rights$(266)$(511)$(136)$(264)$(61)$(122)
The following table shows the hypothetical effect on the Company’s excess spread financing fair value when applying certain unfavorable variations of key assumptions to these liabilities for the dates indicated:
Option Adjusted Spread(1)
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
September 30, 2023
Excess spread financing$15 $32 $9 $17 
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
December 31, 2022
Excess spread financing$19 $40 $11 $22 
Schedule of fees earned in exchange for servicing financial assets
The following table sets forth the items comprising total “revenues - service related, net”:
Three Months Ended September 30,Nine Months Ended September 30,
Revenues - Service Related, net2023202220232022
Contractually specified servicing fees(1)
$440 $371 $1,231 $1,076 
Other service-related income(1)
25 22 58 94 
Incentive and modification income(1)
18 4 32 22 
Servicing late fees(1)
24 19 68 57 
Mark-to-market adjustments - Servicing
MSR MTM270 239 304 1,363 
Loss on MSR hedging activities(192)(100)(244)(329)
(Loss) gain on MSR sales(3)(2)29 (1)
Reclassifications(2)
(8)(10)(26)(22)
Excess spread / MSR financing MTM(4)(3)2 (134)
Total mark-to-market adjustments - Servicing63 124 65 877 
Amortization, net of accretion
MSR amortization(171)(183)(444)(644)
Excess spread accretion11 14 32 74 
Total amortization, net of accretion(160)(169)(412)(570)
Originations service fees(3)
18 20 45 86 
Corporate/Xome related service fees22 22 62 56 
Other(4)
(18)(18)(54)(88)
Total revenues - Service Related, net$432 $395 $1,095 $1,610 

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $175 and $172 for the three months ended September 30, 2023 and 2022, respectively, and $528 and $488 for the nine months ended September 30, 2023 and 2022, respectively.
(2)Reclassifications include the impact of negative modeled cash flows which have been transferred to reserves on advances and other receivables. The negative modeled cash flows relate to advances and other receivables associated with inactive and liquidated loans that are no longer part of the MSR portfolio.
(3)Amounts include fees collected from customers for originated loans and from other lenders for loans purchased through the correspondent channel, and include loan application, underwriting, and other similar fees.
(4)Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.
v3.23.3
Advances and Other Receivables (Tables)
 9 Months Ended
Sep. 30, 2023
Receivables [Abstract]  
Schedule of accounts receivable
Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetSeptember 30, 2023December 31, 2022
Servicing advances, net of $12 purchase discount
$813 $1,053 
Receivables from agencies, investors and prior servicers, net of $7 purchase discount
109 103 
Reserves(164)(137)
Total advances and other receivables, net$758 $1,019 
The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended September 30,Nine Months Ended September 30,
Reserves for Advances and Other Receivables2023202220232022
Balance - beginning of period$156 $150 $137 $167 
Provision8 10 26 22 
Reclassifications(1)
11 9 27 31 
Write-offs(11)(26)(26)(77)
Balance - end of period$164 $143 $164 $143 

(1)Reclassifications represent required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.
The following tables set forth the activities of the purchase discounts for advances and other receivables:
Three Months Ended September 30,
20232022
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period$9 $7 $14 $8 
Addition from acquisition(1)
4 — — — 
Utilization of purchase discounts(1)— (2)(1)
Balance - end of period$12 $7 $12 $7 

Nine Months Ended September 30,
20232022
Purchase Discount for Advances and Other ReceivablesServicing AdvancesReceivables from Agencies, Investors and Prior ServicersServicing AdvancesReceivables from Agencies, Investors and Prior Servicers
Balance - beginning of period $12 $7 $19 $12 
Addition from acquisition(1)
4 — — — 
Utilization of purchase discounts(4)— (7)(5)
Balance - end of period$12 $7 $12 $7 
v3.23.3
Mortgage Loans Held for Sale (Tables)
 9 Months Ended
Sep. 30, 2023
Mortgage Loans Held for Sale and Investment [Abstract]  
Schedule of mortgage loans held-for-sale
Mortgage loans held for sale are recorded at fair value as set forth below:
Mortgage Loans Held for SaleSeptember 30, 2023December 31, 2022
Mortgage loans held for sale – UPB$932 $921 
Mark-to-market adjustment(1)
(39)(28)
Total mortgage loans held for sale$893 $893 

(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in “revenues - net gain on mortgage loans held for sale” in the condensed consolidated statements of operations.

The following table sets forth the activities of mortgage loans held for sale:
Nine Months Ended September 30,
Mortgage Loans Held for Sale20232022
Balance - beginning of period$893 $4,381 
Loans sold and loan payments received(11,146)(30,648)
Mortgage loans originated and purchased, net of fees10,155 25,120 
Repurchase of loans out of Ginnie Mae securitizations(1)
984 2,904 
Net change in unrealized gain (loss) on retained loans held for sale10 (177)
Net transfers of mortgage loans held for sale(2)
(3)1 
Balance - end of period$893 $1,581 

(1)The Company has the optional right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.
(2)Amounts reflect transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.
The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
September 30, 2023December 31, 2022
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$41 $32 $102 $87 

(1)Non-accrual UPB includes $32 and $90 of UPB related to Ginnie Mae repurchased loans as of September 30, 2023 and December 31, 2022, respectively.
v3.23.3
Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of derivative instruments
The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
September 30, 2023Nine Months Ended September 30, 2023
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2023$304 $6 $(4)
Derivative financial instruments
IRLCs2023$813 $22 $— 
LPCs2023121 1 — 
Forward MBS trades20231,383 13 74 
Treasury futures20235 — — 
Total derivative financial instruments - assets$2,322 $36 $74 
Liabilities
Derivative financial instruments
IRLCs2023$40 $— $— 
LPCs2023288 2 — 
Forward MBS trades20231,249 28 (97)
Treasury futures20232,353 65 (196)
Total derivative financial instruments - liabilities$3,930 $95 $(293)

September 30, 2022Nine Months Ended September 30, 2022
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2022$439 $(3)$(28)
Derivative financial instruments
IRLCs2022$1,118 $21 $(113)
LPCs202253 1 (2)
Forward MBS trades20222,296 74 542 
Treasury futures2022— — 4 
Total derivative financial instruments - assets$3,467 $96 $431 
Liabilities
Derivative financial instruments
IRLCs2022$551 $8 $(8)
LPCs2022223 5 (2)
Forward MBS trades2022458 19 (72)
Treasury futures2022806 62 (262)
Total derivative financial instruments - liabilities$2,038 $94 $(344)
v3.23.3
Indebtedness (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of unsecured senior notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesSeptember 30, 2023December 31, 2022
$850 face value, 5.500% interest rate payable semi-annually, due August 2028
$850 $850 
$650 face value, 5.125% interest rate payable semi-annually, due December 2030
650 650 
$600 face value, 6.000% interest rate payable semi-annually, due January 2027
600 600 
$600 face value, 5.750% interest rate payable semi-annually, due November 2031
600 600 
$550 face value, 5.000% interest rate payable semi-annually, due February 2026(1)
500 — 
Unsecured senior notes principal amount3,200 2,700 
Purchase discount(1) and unamortized debt issuance costs
(53)(27)
Unsecured senior notes, net $3,147 $2,673 

(1)In connection with the Home Point transaction in the third quarter of 2023, the Company assumed an unsecured senior note with a principal balance of $500 and recorded a purchase discount of $32 on the acquisition date, of which $2 has been accreted in the nine months ended September 30, 2023. See Note 2, Acquisitions, for further details.
Schedule of maturities of long-term debt
As of September 30, 2023, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2023 through 2025$— 
2026500 
2027600 
Thereafter2,100 
Total unsecured senior notes principal amount$3,200 
v3.23.3
Securitizations and Financings (Tables)
 9 Months Ended
Sep. 30, 2023
Variable Interest Entities and Securitizations [Abstract]  
Schedule of assets and liabilities of VIEs included in financial statements
A summary of the assets and liabilities of the Company’s transactions with VIEs included in the Company’s condensed consolidated balance sheets is presented below:
September 30, 2023December 31, 2022
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings		Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$92 $78 
Advances and other receivables, net366 398 
Total assets$458 $476 
Liabilities
Advance facilities, net(1)
$306 $321 
Payables and other liabilities1 1 
Total liabilities$307 $322 

(1)Refer to advance facilities in Note 10, Indebtedness, for additional information.

The following table shows a summary of the outstanding collateral and certificate balances for securitization trusts for which the Company was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by the Company:
Unconsolidated Securitization TrustsSeptember 30, 2023December 31, 2022
Total collateral balances - UPB$901 $976 
Total certificate balances$876 $949 
A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below:
Principal Amount of Transferred Loans 60 Days or More Past DueSeptember 30, 2023December 31, 2022
Unconsolidated securitization trusts$93 $119 
v3.23.3
Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2023
Earnings Per Share [Abstract]  
Schedule of earnings per share
The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
Computation of Earnings Per Share2023202220232022
Net income$275 $113 $454 $922 
Weighted average shares of common stock outstanding (in thousands):
Basic66,424 71,175 67,719 72,569 
Dilutive effect of stock awards1,244 1,703 1,319 1,988 
Diluted67,668 72,878 69,038 74,557 
Earnings per common share
Basic$4.14 $1.59 $6.70 $12.71 
Diluted$4.06 $1.55 $6.58 $12.37 
v3.23.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value, assets and liabilities measured on recurring basis
The following tables present the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis:
 September 30, 2023
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$893 $— $792 $101 
Mortgage servicing rights8,504 — — 8,504 
Equity investments9 1 — 8 
Derivative financial instruments
IRLCs22 — — 22 
LPCs1 — — 1 
Forward MBS trades13 — 13 — 
Liabilities
Derivative financial instruments
LPCs2 — — 2 
Forward MBS trades28 — 28 — 
Treasury futures65 — 65 — 
Mortgage servicing rights financing21 — — 21 
Excess spread financing446 — — 446 
 December 31, 2022
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$893 $— $819 $74 
Mortgage servicing rights6,654 — — 6,654 
Equity investments47 2 — 45 
Derivative financial instruments
IRLCs22 — — 22 
Forward MBS trades8 — 8 — 
LPCs1 — — 1 
Liabilities
Derivative financial instruments
Forward MBS trades9 — 9 — 
LPCs1 — — 1 
Treasury futures14 — 14 — 
Mortgage servicing rights financing19 — — 19 
Excess spread financing509 — — 509 
Schedule of fair value, assets and liabilities measured on recurring basis, unobservable input reconciliation
The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:
Nine Months Ended September 30, 2023
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsMortgage loans held for saleEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$6,654 $74 $45 $22 $509 $19 
Changes in fair value included in earnings(140)3 (37)— (4)2 
Purchases/additions (1)
2,305 130 — — — — 
Issuances219 — — — — — 
Sales/dispositions (2)
(555)(105)— — — — 
Repayments— (3)— — (5)— 
Settlements— — — — (54)— 
Other changes21 2 — — — — 
Balance - end of period$8,504 $101 $8 $22 $446 $21 
Nine Months Ended September 30, 2022
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesMortgage servicing rightsEquity investmentsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$4,223 $54 $134 $768 $10 
Changes in fair value included in earnings719 (9)(113)124 10 
Purchases1,256 — — — — 
Issuances481 — — — — 
Sales(293)— — — — 
Repayments— — — (293)— 
Settlements— — — (80)— 
Other changes22 — — — — 
Balance - end of period$6,408 $45 $21 $519 $20 
Fair value measurement inputs and valuation techniques
The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
September 30, 2023December 31, 2022
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
MSRs(1)
Option adjusted spread(2)
6.9 %12.3 %8.0 %N/AN/AN/A
Discount rateN/AN/AN/A10.4 %13.7 %11.4 %
Prepayment speed6.1 %9.8 %7.0 %6.3 %12.2 %7.2 %
Cost to service per loan(3)
$56 $151 $80 $54 $155 $80 
Average life(4)
8.2 years8.1 years
Mortgage loans held for sale
Market pricing45.0 %99.5 %88.3 %37.3 %114.7 %77.4 %
IRLCs
Value of servicing (reflected as a percentage of loan commitment)0.8 %4.6 %1.9 %(0.6)%3.9 %2.3 %
Excess spread financing(1)
Option adjusted spread(2)
7.0 %12.3 %8.8 %N/AN/AN/A
Discount rateN/AN/AN/A10.0 %13.8 %11.3 %
Prepayment speed7.5 %10.5 %8.5 %6.9 %13.3 %9.2 %
Average life(4)
6.7 years6.6 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates6.5 %8.8 %7.7 %5.2 %8.6 %7.1 %
Annual advance recovery rates12.6 %15.4 %13.5 %15.9 %20.6 %17.3 %

(1)The inputs are weighted by investor.
(2)OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. See discussion on methodology above.
(3)Presented in whole dollar amounts.
(4)Average life is included for informational purposes.
Schedule of fair value, by balance sheet grouping
The tables below present a summary of the estimated carrying amount and fair value of the Company’s financial instruments not carried at fair value:
 September 30, 2023
 Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$553 $553 $— $— 
Restricted cash151 151 — — 
Advances and other receivables, net758 — — 758 
Loans subject to repurchase from Ginnie Mae1,027 — 1,027 — 
Financial liabilities
Unsecured senior notes, net3,147 — 2,815 — 
Advance, warehouse and MSR facilities, net3,545 — 3,560 — 
Liability for loans subject to repurchase from Ginnie Mae1,027 — 1,027 — 

December 31, 2022
Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$527 $527 $— $— 
Restricted cash175 175 — — 
Advances and other receivables, net1,019 — — 1,019 
Loans subject to repurchase from Ginnie Mae1,865 — 1,865 — 
Financial liabilities
Unsecured senior notes, net2,673 — 2,209 — 
Advance, warehouse and MSR facilities, net2,885 — 2,896 — 
Liability for loans subject to repurchase from Ginnie Mae1,865 — 1,865 — 
v3.23.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Schedule of segment reporting information
The following tables present financial information by segment:
 Three Months Ended September 30, 2023
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$392 $18 $22 $432 
Net gain on mortgage loans held for sale72 70 — 142 
Total revenues464 88 22 574 
Total expenses172 58 71 301 
Interest income157 10 — 167 
Interest expense(88)(11)(47)(146)
Other income, net— — 58 58 
Total other income (expenses), net69 (1)11 79 
Income (loss) before income tax expense$361 $29 $(38)$352 
Depreciation and amortization for property and equipment and intangible assets$4 $2 $4 $10 
Total assets $10,916 $868 $1,643 $13,427 

Three Months Ended September 30, 2022
Financial Information by SegmentServicingOriginationsCorporate/OtherConsolidated
Revenues
Service related, net$353 $20 $22 $395 
Net (loss) gain on mortgage loans held for sale(21)136 — 115 
Total revenues332 156 22 510 
Total expenses147 111 58 316 
Interest income71 12 — 83 
Interest expense(53)(11)(40)(104)
Other expense, net— — (20)(20)
Total other income (expenses), net18 1 (60)(41)
Income (loss) before income tax expense$203 $46 $(96)$153 
Depreciation and amortization for property and equipment and intangible assets$6 $5 $(2)$9 
Total assets $9,703 $1,252 $1,860 $12,815 
v3.23.3
Business Combinations and Asset Acquisitions (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended 9 Months Ended
Jul. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Sep. 30, 2023
Sep. 30, 2022
Aug. 01, 2023
Business Combination, Description [Abstract]            
Asset Acquisition, Consideration Transferred     $ 34      
Bargain purchase gain       $ 96 $ 0  
Business Combination, Bargain Purchase, Gain, Statement of Income or Comprehensive Income [Extensible Enumeration]       Other income, net    
Home Point Capital Inc [Member]            
Business Combination, Description [Abstract]            
Business Combination, Consideration Transferred   $ 658        
Acquisition costs   5   $ 5    
Business Combination, Consideration Transferred for MSRs   335        
Business Combination, Consideration Transferred for Tender Offer   323        
Price per share (in dollars per share)           $ 2.33
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Mortgage Servicing Rights           $ 1,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Senior Note           $ 500
Business Combination, Bargain Purchase, Gain Recognized, Description       The Company believes it was able to negotiate a bargain purchase price due to seller’s operational challenges from significant market volatility, as well as the seller’s desire to exit the business in an expedited manner.    
Business Combination, Bargain Purchase, Gain Recognized, Description       The Company believes it was able to negotiate a bargain purchase price due to seller’s operational challenges from significant market volatility, as well as the seller’s desire to exit the business in an expedited manner.    
Home Point Capital Inc [Member] | Corporate and other            
Business Combination, Description [Abstract]            
Bargain purchase gain   96   $ 96    
Roosevelt            
Business Combination, Description [Abstract]            
Business Combination, Consideration Transferred $ 28          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles $ 4          
Goodwill acquired   21        
Acquisition costs   8   $ 8    
Roosevelt | Servicing            
Business Combination, Description [Abstract]            
Goodwill acquired   5        
Roosevelt | Corporate and other            
Business Combination, Description [Abstract]            
Goodwill acquired   $ 16        
v3.23.3
Discontinued Operations and Disposal Groups (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Mar. 31, 2022
Sagent M&C, LLC          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Income (Loss) from Equity Method Investments $ (4.0) $ (5.0) $ (15.0) $ (5.0)  
Equity Method Investments $ 222.0   $ 222.0   $ 250.0
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Disposal Group, Discontinued Operation, Transaction Cost   $ 0.0   4.0  
Purchase price         260.0
Disposal Group, Including Discontinued Operation, Assets, Noncurrent         31.0
Cash received from disposal         $ 9.9
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal       $ 223.0  
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | Sagent M&C, LLC | Mr. Cooper Group Inc.          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Ownership interest percentage         19.90%
v3.23.3
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Mortgage Servicing Rights [Line Items]    
Excess spread financing at fair value $ 446 $ 509
Mortgage servicing rights financing at fair value 21 19
MSR related liabilities - nonrecourse at fair value 467 528
Mortgage servicing rights    
Mortgage Servicing Rights [Line Items]    
MSRs - fair value $ 8,504 $ 6,654
v3.23.3
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - Mortgage servicing rights - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Servicing Asset at Fair Value, Amount [Roll Forward]    
Fair value - beginning of period $ 6,654 $ 4,223
Servicing retained from mortgage loans sold 219 481
Purchases and acquisitions of servicing rights 2,305 1,256
Sales of servicing assets and excess yield (555) (293)
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) 304 1,363
Changes in valuation due to amortization (444) (644)
Other changes(1) 21 22
Fair value - end of period $ 8,504 $ 6,408
v3.23.3
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Servicing Asset at Amortized Cost [Line Items]      
Excess spread financing - fair value $ 446 $ 509  
Forward MSRs Sold      
Servicing Asset at Amortized Cost [Line Items]      
UPB 23,789   $ 20,723
Forward MSRs Sold, Subservicing Retained      
Servicing Asset at Amortized Cost [Line Items]      
UPB 22,640   $ 19,692
Excess spread financing      
Servicing Asset at Amortized Cost [Line Items]      
UPB $ 76,732 $ 83,706  
v3.23.3
Mortgage Servicing Rights and Related Liabilities - UPB related to owned MSRs (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Owned Service Loans [Line Items]      
Gain on Sale of Excess Yield $ 33    
Sale of Excess Yield, Total Proceeds 294    
Sale of Excess Yield, UPB 41,958    
Mortgage servicing rights      
Owned Service Loans [Line Items]      
UPB 528,324 $ 411,382  
Fair Value 8,504 6,654  
Forward MSRs Sold      
Owned Service Loans [Line Items]      
UPB 23,789   $ 20,723
Forward MSRs Sold, Subservicing Retained      
Owned Service Loans [Line Items]      
UPB 22,640   $ 19,692
Agency | Mortgage servicing rights      
Owned Service Loans [Line Items]      
UPB 501,315 380,502  
Fair Value 8,193 6,322  
Non-agency | Mortgage servicing rights      
Owned Service Loans [Line Items]      
UPB 27,009 30,880  
Fair Value $ 311 $ 332  
v3.23.3
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change $ (179) $ (136)
Total prepayment speeds, 20% Adverse Change (348) (264)
Cost to Service per Loan, 10% Adverse Change (80) (61)
Cost to Service per Loan, 20% Adverse Change (159) (122)
Mortgage servicing rights | 100 bps Adverse Change    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1) (341)  
Mortgage servicing rights | 200 bps Adverse Change    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1) (655)  
Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change 9 11
Total prepayment speeds, 20% Adverse Change 17 22
Excess spread financing | 100 bps Adverse Change    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1) 15  
Excess spread financing | 200 bps Adverse Change    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1) $ 32  
100 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1)   (266)
100 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1)   19
200 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1)   (511)
200 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Option Adjusted Spread(1)   $ 40
v3.23.3
Mortgage Servicing Rights and Related Liabilities - Servicing Revenue (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Transfers and Servicing [Abstract]        
Contractually specified servicing fees(1) $ 440,000,000 $ 371,000,000 $ 1,231,000,000 $ 1,076,000,000
Other service-related income(1) 25,000,000 22,000,000 58,000,000 94,000,000
Incentive and modification income(1) 18,000,000 4,000,000 32,000,000 22,000,000
Servicing late fees(1) 24,000,000 19,000,000 68,000,000 57,000,000
MSR MTM (270,000,000) (239,000,000) (304,000,000) (1,363,000,000)
Loss on MSR hedging activities (192,000,000) (100,000,000) (244,000,000) (329,000,000)
(Gain) loss on MSR sales (3,000,000) (2,000,000) 29,000,000 (1,000,000)
Reclassifications(2) (8,000,000) (10,000,000) (26,000,000) (22,000,000)
Excess spread / MSR financing MTM (4,000,000) (3,000,000) 2,000,000 (134,000,000)
Total mark-to-market adjustments - Servicing (63,000,000) (124,000,000) (65,000,000) (877,000,000)
MSR amortization 171,000,000 183,000,000 444,000,000 644,000,000
Excess spread accretion (11,000,000) (14,000,000) (32,000,000) (74,000,000)
Total amortization, net of accretion 160,000,000 169,000,000 412,000,000 570,000,000
Originations service fees(3) 18,000,000 20,000,000 45,000,000 86,000,000
Corporate/Xome related service fees 22,000,000 22,000,000 62,000,000 56,000,000
Other(4) 18,000,000 18,000,000 54,000,000 88,000,000
Total revenues - Service Related, net 432,000,000 395,000,000 1,095,000,000 1,610,000,000
Cash Flows Between Transferor and Transferee, Servicing Fees $ 175,000,000 $ 172,000,000 $ 528,000,000 $ 488,000,000
v3.23.3
Advances and Other Receivables - Schedule of Accounts Receivable (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Jun. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Receivables [Abstract]            
Servicing advances, net of $12 purchase discount $ 813   $ 1,053      
Receivables from agencies, investors and prior servicers, net of $7 purchase discount 109   103      
Reserves (164)   (137)      
Total advances and other receivables, net 758   1,019      
Servicing advances discount 12 $ 9 12 $ 12 $ 14 $ 19
Receivables discount $ 7 $ 7 $ 7 $ 7 $ 8 $ 12
v3.23.3
Advances and Other Receivables - Advances and Other Receivables Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Reserves for Advances and Other Receivables        
Advances and Other Receivables, Servicing Reserves $ 156 $ 150 $ 137 $ 167
Provision 8 10 26 22
Reclassifications(1) 11 9 27 31
Write-offs (11) (26) (26) (77)
Advances and Other Receivables, Servicing Reserves $ 164 $ 143 $ 164 $ 143
v3.23.3
Advances and Other Receivables - Purchase Discount (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Servicing Advances        
Servicing Advances, Discount $ 9 $ 14 $ 12 $ 19
Utilization of purchase discounts (1) (2) (4) (7)
Servicing Advances, Discount 12 12 12 12
Receivables from Agencies, Investors and Prior Servicers        
Receivable with Imputed Interest, Discount 7 7 7 7
Utilization of purchase discounts 0 (1) 0 (5)
Receivable with Imputed Interest, Discount 7 8 7 12
Home Point Capital Inc [Member]        
Servicing Advances        
Addition from acquisition(1) 0 0 0 0
Addition from acquisition(1) 4 0 4 0
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Addition from acquisition(1) 4 0 4 0
Addition from acquisition(1) $ 0 $ 0 $ 0 $ 0
v3.23.3
Advances and Other Receivables - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivable, allowance for credit loss $ 36 $ 34
Financial instruments collection period 39 months  
Advances and other receivables reserve    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivable, allowance for credit loss $ 29 27
Purchase Discount    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivable, allowance for credit loss $ 7 $ 7
v3.23.3
Mortgage Loans Held for Sale - Mortgage Loans Held for Sale (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Mortgage loans held for sale – UPB $ 932 $ 921
Mark-to-market adjustment(1) (39) (28)
Total mortgage loans held for sale 893 893
UPB 41 102
Fair Value 32 87
Ginnie mae repurchased loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
UPB $ 32 $ 90
v3.23.3
Mortgage Loans Held for Sale - Reconciliation to Cash Flow (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Mortgage Loans Held for Sale    
Balance - beginning of period $ 893 $ 4,381
Loans sold and loan payments received (11,146) (30,648)
Mortgage loans originated and purchased, net of fees 10,155 25,120
Repurchase of loans out of Ginnie Mae securitizations(1) 984 2,904
Net change in unrealized gain (loss) on retained loans held for sale 10 (177)
Net transfers of mortgage loans held for sale(2) (3) 1
Balance - end of period $ 893 $ 1,581
v3.23.3
Mortgage Loans Held for Sale - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Mortgage Loans Held for Sale and Investment [Abstract]      
Gain (Loss) on Sale of Mortgage Loans $ 42 $ (208)  
Sale of mortgage loans held for sale 10,990 $ 30,185  
Mortgage loans held for sale in foreclosure $ 26   $ 65
v3.23.3
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]      
Goodwill $ 141 $ 141 $ 120
Intangible assets 30 30 $ 8
Intangible assets acquired   23  
Business Acquisition [Line Items]      
Intangible assets acquired   $ 23  
Roosevelt      
Goodwill and Intangible Assets Disclosure [Abstract]      
Intangible assets acquired 4    
Business Acquisition [Line Items]      
Goodwill acquired 21    
Intangible assets acquired $ 4    
v3.23.3
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Treasury futures    
Derivatives, Fair Value [Line Items]    
Fair Value   $ (62)
Assets    
Derivatives, Fair Value [Line Items]    
Outstanding Notional $ 2,322 3,467
Fair Value 36 96
Gains/(Losses) 74 431
Assets | Loan sale commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 304 439
Fair Value 6  
Fair Value   (3)
Gains/(Losses) (4) (28)
Assets | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 813 1,118
Fair Value 22 21
Gains/(Losses) 0 (113)
Assets | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 121 53
Fair Value 1 1
Gains/(Losses) 0 (2)
Assets | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 1,383 2,296
Fair Value 13 74
Gains/(Losses) 74 542
Assets | Treasury futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 5 0
Fair Value 0 0
Gains/(Losses) 0 4
Liabilities    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 3,930 2,038
Fair Value (95) (94)
Gains/(Losses) (293) (344)
Liabilities | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 40 551
Fair Value 0 (8)
Gains/(Losses) 0 (8)
Liabilities | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 288 223
Fair Value (2) (5)
Gains/(Losses) 0 (2)
Liabilities | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 1,249 458
Fair Value (28) (19)
Gains/(Losses) (97) (72)
Liabilities | Treasury futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 2,353 806
Fair Value (65)  
Gains/(Losses) $ (196) $ (262)
v3.23.3
Derivative Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Margin Deposit Assets $ 135 $ 49
Payables and other liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Margin Deposit Liability $ 8 $ 1
v3.23.3
Indebtedness - Advance and Warehouse Facilities Summary (Details) - USD ($)
Oct. 01, 2023
Sep. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Advance, warehouse and MSR facilities, net   $ 3,545,000,000 $ 2,885,000,000
Advance Facilities | Servicing | Loans payable | $350 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   350,000,000  
Outstanding   129,000,000 150,000,000
Collateral Pledged   166,000,000 189,000,000
Advance Facilities | Servicing | Loans payable | $250 advance facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   250,000,000  
Outstanding   207,000,000 308,000,000
Collateral Pledged   284,000,000 410,000,000
Advance Facilities | Servicing | Loans payable | $250 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   250,000,000  
Outstanding   177,000,000 171,000,000
Collateral Pledged   200,000,000 209,000,000
Advance Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Outstanding   548,000,000 669,000,000
Collateral Pledged   702,000,000 853,000,000
Advance Facilities | Servicing | Notes payable to banks | $75 advance facility      
Debt Instrument [Line Items]      
Capacity Amount   75,000,000  
Outstanding   35,000,000 40,000,000
Collateral Pledged   52,000,000 45,000,000
Warehouse Facilities | Originations      
Debt Instrument [Line Items]      
Outstanding   817,000,000 817,000,000
Warehouse Facilities | Originations | Notes payable to banks      
Debt Instrument [Line Items]      
Collateral Pledged   910,000,000 910,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
Outstanding   162,000,000 206,000,000
Collateral Pledged   163,000,000 272,000,000
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   750,000,000  
Outstanding   115,000,000 135,000,000
Collateral Pledged   150,000,000 133,000,000
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   750,000,000  
Outstanding   124,000,000 202,000,000
Collateral Pledged   130,000,000 209,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Outstanding   39,000,000 76,000,000
Collateral Pledged   44,000,000 80,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(2)      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Outstanding   88,000,000 31,000,000
Collateral Pledged   90,000,000 32,000,000
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(2) | Subsequent Event      
Debt Instrument [Line Items]      
Capacity Amount $ 350,000,000    
Warehouse Facilities | Originations | Notes payable to banks | $300 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   300,000,000  
Outstanding   137,000,000 115,000,000
Collateral Pledged   141,000,000 117,000,000
Warehouse Facilities | Originations | Notes payable to banks | $250 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount   250,000,000  
Outstanding   14,000,000 14,000,000
Collateral Pledged   16,000,000 17,000,000
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   200,000,000  
Outstanding   48,000,000 18,000,000
Collateral Pledged   50,000,000 21,000,000
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   200,000,000  
Outstanding   45,000,000 0
Collateral Pledged   70,000,000 0
Warehouse Facilities | Originations | Notes payable to banks | $100 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   100,000,000  
Outstanding   40,000,000 19,000,000
Collateral Pledged   51,000,000 28,000,000
Warehouse Facilities | Originations | Notes payable to banks | $100 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   100,000,000  
Outstanding   0 0
Collateral Pledged   0 0
Warehouse Facilities | Originations | Notes payable to banks | $75 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   75,000,000  
Outstanding   5,000,000 1,000,000
Collateral Pledged   5,000,000 1,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,000,000  
Outstanding   0 0
Collateral Pledged   0 0
Warehouse Facilities | Originations | Notes payable to banks | $1,000 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,000,000,000  
MSR Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Outstanding   2,195,000,000 1,410,000,000
Collateral Pledged   6,620,000,000 5,499,000,000
MSR Facilities | Servicing | Notes payable to banks | $1,500 warehouse facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
Outstanding   250,000,000 260,000,000
Collateral Pledged   2,303,000,000 2,284,000,000
MSR Facilities | Servicing | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
Outstanding   900,000,000 380,000,000
Collateral Pledged   1,324,000,000 927,000,000
MSR Facilities | Servicing | Notes payable to banks | $750 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount   750,000,000  
Outstanding   325,000,000 380,000,000
Collateral Pledged   1,391,000,000 1,482,000,000
MSR Facilities | Servicing | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Outstanding   255,000,000 365,000,000
Collateral Pledged   705,000,000 732,000,000
MSR Facilities | Servicing | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Outstanding   210,000,000 0
Collateral Pledged   396,000,000 0
MSR Facilities | Servicing | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   500,000,000  
Outstanding   225,000,000 0
Collateral Pledged   434,000,000 0
MSR Facilities | Servicing | Notes payable to banks | $50 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   50,000,000  
Outstanding   30,000,000 25,000,000
Collateral Pledged   67,000,000 74,000,000
MSR Facilities | Servicing | Notes payable to banks | $1750 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   1,750,000,000  
Advance Financing, Internally Allocated | Servicing | Loans payable | $250 advance facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   250,000,000  
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $1,500 warehouse facility(1)      
Debt Instrument [Line Items]      
Capacity Amount   1,500,000,000  
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount   750,000,000  
Advance, Warehouse and MSR Facilities      
Debt Instrument [Line Items]      
Outstanding   3,560,000,000 2,896,000,000
Collateral Pledged   8,232,000,000 7,262,000,000
Unamortized debt issuance costs   (15,000,000) (11,000,000)
Advance, warehouse and MSR facilities, net   $ 3,545,000,000 $ 2,885,000,000
v3.23.3
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Aug. 01, 2023
Dec. 31, 2022
Debt Instrument [Line Items]      
Unsecured senior notes, net $ 3,147,000,000   $ 2,673,000,000
Amortization of Debt Discount (Premium) 2,000,000    
Home Point Capital Inc [Member]      
Debt Instrument [Line Items]      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Senior Note   $ 500,000,000  
Debt Instrument, Unamortized Discount   $ 32,000,000  
Unsecured Senior Notes      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount 3,200,000,000   2,700,000,000
Purchase discount(1) and unamortized debt issuance costs (53,000,000)   (27,000,000)
Unsecured senior notes, net 3,147,000,000   2,673,000,000
Unsecured Senior Notes | $850 face value, 5.500% interest rate payable semi-annually, due August 2028      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount 850,000,000   850,000,000
Face value $ 850,000,000    
Debt Instrument, Interest Rate, Stated Percentage 5.50%    
Unsecured Senior Notes | $650 face value, 5.125% interest rate payable semi-annually, due December 2030      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount $ 650,000,000   650,000,000
Face value $ 650,000,000    
Debt Instrument, Interest Rate, Stated Percentage 5.125%    
Unsecured Senior Notes | $600 face value, 6.000% interest rate payable semi-annually, due January 2027      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount $ 600,000,000   600,000,000
Face value $ 600,000,000    
Debt Instrument, Interest Rate, Stated Percentage 6.00%    
Unsecured Senior Notes | $600 face value, 5.750% interest rate payable semi-annually, due November 2031      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount $ 600,000,000   600,000,000
Face value $ 600,000,000    
Debt Instrument, Interest Rate, Stated Percentage 5.75%    
Unsecured Senior Notes | $550 face value, 5.000% interest rate payable semi-annually, due February 2026(1)      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount $ 500,000,000   $ 0
Face value $ 550,000,000    
Debt Instrument, Interest Rate, Stated Percentage 5.00%    
v3.23.3
Indebtedness - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Debt Instrument [Line Items]        
Interest Expense $ 146 $ 104 $ 378 $ 321
Advance Facilities        
Debt Instrument [Line Items]        
Short-Term Debt, Weighted Average Interest Rate, over Time     7.60% 3.40%
Advance Facilities | Servicing        
Debt Instrument [Line Items]        
Short-Term Debt, Weighted Average Interest Rate, over Time 7.80% 4.50%    
Warehouse & MSR Facilities        
Debt Instrument [Line Items]        
Short-Term Debt, Weighted Average Interest Rate, over Time 7.80% 4.60% 7.40% 3.30%
Debt        
Debt Instrument [Line Items]        
Interest Expense $ 131 $ 90 $ 342 $ 266
Unsecured Senior Notes        
Debt Instrument [Line Items]        
Maximum percentage redeemable on unsecured debt     40.00%  
Repayments of debt     $ 0 0
Amount of principal amount outstanding repaid     $ 0 $ 0
v3.23.3
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
2023 through 2025 $ 0  
2026 500  
2027 600  
Thereafter 2,100  
Total unsecured senior notes principal amount $ 3,200 $ 2,700
v3.23.3
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - Residential mortgage - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings $ 458 $ 476
Liabilities - transfers accounted for as secured borrowings 307 322
Restricted cash    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings 92 78
Advances and other receivables, net    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings 366 398
Advance facilities, net(1)    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings 306 321
Payables and other liabilities    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings $ 1 $ 1
v3.23.3
Securitizations and Financings - Securitization Trusts (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Variable Interest Entities and Securitizations [Abstract]    
Total collateral balances - UPB $ 901 $ 976
Total certificate balances 876 949
Financial Asset, Past Due    
Financing Receivable, Past Due [Line Items]    
Unconsolidated securitization trusts $ 93 $ 119
v3.23.3
Earnings Per Share - Narrative (Details) - USD ($)
$ / shares in Units, $ in Millions
Sep. 30, 2023
Dec. 31, 2022
Preferred Shares [Abstract]    
Preferred Stock, Shares Authorized 10,000,000 10,000,000
Preferred Stock, Par or Stated Value Per Share $ 0.00001 $ 0.00001
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Preferred stock, liquidation preference $ 0 $ 0
v3.23.3
Earnings Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Earnings Per Share [Abstract]        
Net income $ 275 $ 113 $ 454 $ 922
Weighted average shares of common stock outstanding (in thousands):        
Basic 66,424 71,175 67,719 72,569
Dilutive effect of stock awards 1,244 1,703 1,319 1,988
Diluted 67,668 72,878 69,038 74,557
Earnings Per Share, Basic [Abstract]        
Basic $ 4.14 $ 1.59 $ 6.70 $ 12.71
Diluted $ 4.06 $ 1.55 $ 6.58 $ 12.37
v3.23.3
Income Taxes (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Tax Disclosure [Abstract]        
Effective tax rate 21.70% 26.40% 22.30% 24.70%
v3.23.3
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Assets      
Mortgage loans held for sale $ 893 $ 893  
Liabilities      
Mortgage servicing rights financing 21 19  
Treasury futures      
Assets      
Fair Value     $ 62
Recurring Fair Value Measurements      
Assets      
Mortgage loans held for sale 893 893  
Mortgage servicing rights 8,504 6,654  
Equity investments 9 47  
Liabilities      
Mortgage servicing rights financing 21 19  
Excess spread financing 446 509  
Recurring Fair Value Measurements | IRLCs      
Assets      
Fair Value 22 22  
Recurring Fair Value Measurements | LPCs      
Assets      
Fair Value 1 1  
Fair Value 2 1  
Recurring Fair Value Measurements | Forward MBS trades      
Assets      
Fair Value 13 8  
Fair Value 28 9  
Recurring Fair Value Measurements | Treasury futures      
Assets      
Fair Value 65 14  
Recurring Fair Value Measurements | Level 1      
Assets      
Mortgage loans held for sale 0 0  
Mortgage servicing rights 0 0  
Equity investments 1 2  
Liabilities      
Mortgage servicing rights financing 0 0  
Excess spread financing 0 0  
Recurring Fair Value Measurements | Level 1 | IRLCs      
Assets      
Fair Value 0 0  
Recurring Fair Value Measurements | Level 1 | LPCs      
Assets      
Fair Value 0 0  
Fair Value 0 0  
Recurring Fair Value Measurements | Level 1 | Forward MBS trades      
Assets      
Fair Value 0 0  
Fair Value 0 0  
Recurring Fair Value Measurements | Level 1 | Treasury futures      
Assets      
Fair Value 0 0  
Recurring Fair Value Measurements | Level 2      
Assets      
Mortgage loans held for sale 792 819  
Mortgage servicing rights 0 0  
Equity investments 0 0  
Liabilities      
Mortgage servicing rights financing 0 0  
Excess spread financing 0 0  
Recurring Fair Value Measurements | Level 2 | IRLCs      
Assets      
Fair Value 0 0  
Recurring Fair Value Measurements | Level 2 | LPCs      
Assets      
Fair Value 0 0  
Fair Value 0 0  
Recurring Fair Value Measurements | Level 2 | Forward MBS trades      
Assets      
Fair Value 13 8  
Fair Value 28 9  
Recurring Fair Value Measurements | Level 2 | Treasury futures      
Assets      
Fair Value 65 14  
Recurring Fair Value Measurements | Level 3      
Assets      
Mortgage loans held for sale 101 74  
Mortgage servicing rights 8,504 6,654  
Equity investments 8 45  
Liabilities      
Mortgage servicing rights financing 21 19  
Excess spread financing 446 509  
Recurring Fair Value Measurements | Level 3 | IRLCs      
Assets      
Fair Value 22 22  
Recurring Fair Value Measurements | Level 3 | LPCs      
Assets      
Fair Value 1 1  
Fair Value 2 1  
Recurring Fair Value Measurements | Level 3 | Forward MBS trades      
Assets      
Fair Value 0 0  
Fair Value 0 0  
Recurring Fair Value Measurements | Level 3 | Treasury futures      
Assets      
Fair Value $ 0 $ 0  
v3.23.3
Fair Value Measurements - Level 3 Reconciliation (Details) - Recurring Fair Value Measurements - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Excess spread financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period $ 509 $ 768
Changes in fair value included in earnings (4) 124
Purchases/additions (1) 0 0
Issuances 0 0
Sales/dispositions (2) 0 0
Repayments 5 (293)
Settlements (54) (80)
Other changes 0 0
Balance - end of period 446 519
Mortgage servicing rights financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 19 10
Changes in fair value included in earnings 2 10
Purchases/additions (1) 0 0
Issuances 0 0
Sales/dispositions (2) 0 0
Repayments 0 0
Settlements 0 0
Other changes 0 0
Balance - end of period 21 20
Mortgage servicing rights    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 6,654 4,223
Changes in fair value included in earnings (140) 719
Purchases/additions (1) 2,305 1,256
Issuances 219 481
Sales/dispositions (2) (555) (293)
Repayments 0 0
Settlements 0 0
Other changes 21 22
Balance - end of period 8,504 6,408
Mortgage loans held for sale    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 74  
Changes in fair value included in earnings 3  
Purchases/additions (1) 130  
Issuances 0  
Sales/dispositions (2) (105)  
Repayments 3  
Settlements 0  
Other changes (2)  
Balance - end of period 101  
Equity investments    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 45 54
Changes in fair value included in earnings (37) (9)
Purchases/additions (1) 0 0
Issuances 0 0
Sales/dispositions (2) 0 0
Repayments 0 0
Settlements 0 0
Other changes 0 0
Balance - end of period 8 45
IRLCs    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 22 134
Changes in fair value included in earnings 0 (113)
Purchases/additions (1) 0 0
Issuances 0 0
Sales/dispositions (2) 0 0
Repayments 0 0
Settlements 0 0
Other changes 0 0
Balance - end of period $ 22 $ 21
v3.23.3
Fair Value Measurements - Unobservable Inputs (Details) - USD ($)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
MSRs(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Average life(4) 8 years 2 months 12 days 8 years 1 month 6 days
Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Average life(4) 6 years 8 months 12 days 6 years 7 months 6 days
Min | MSRs(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 6.90%  
Discount rate   10.40%
Prepayment speed 6.10% 6.30%
Cost to service per loan(3) $ 56 $ 54
Min | Mortgage loans held for sale    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Market pricing $ 0.450 $ 0.373
Min | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) 0.008 (0.006)
Min | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 7.00%  
Discount rate   10.00%
Prepayment speed 7.50% 6.90%
Min | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 6.50% 5.20%
Annual advance recovery rates 12.60% 15.90%
Max | MSRs(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 12.30%  
Discount rate   13.70%
Prepayment speed 9.80% 12.20%
Cost to service per loan(3) $ 151 $ 155
Max | Mortgage loans held for sale    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Market pricing $ 0.995 $ 1.147
Max | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) 0.046 0.039
Max | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 12.30%  
Discount rate   13.80%
Prepayment speed 10.50% 13.30%
Max | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 8.80% 8.60%
Annual advance recovery rates 15.40% 20.60%
Weighted Average | MSRs(1)    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 8.00%  
Discount rate   11.40%
Prepayment speed 7.00% 7.20%
Cost to service per loan(3) $ 80 $ 80
Weighted Average | Mortgage loans held for sale    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Market pricing $ 0.883 $ 0.774
Weighted Average | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (reflected as a percentage of loan commitment) 0.019 0.023
Weighted Average | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Option adjusted spread(2) 8.80%  
Discount rate   11.30%
Prepayment speed 8.50% 9.20%
Weighted Average | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 7.70% 7.10%
Annual advance recovery rates 13.50% 17.30%
v3.23.3
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($)
$ in Millions
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Financial assets      
Restricted cash $ 151 $ 175 $ 148
Loans subject to repurchase from Ginnie Mae 1,027 1,865  
Financial liabilities      
Unsecured senior notes, net 3,147 2,673  
Advance, warehouse and MSR facilities, net 3,545 2,885  
Nonrecurring Fair Value Measurements      
Financial assets      
Cash and cash equivalents 553 527  
Restricted cash 151 175  
Advances and other receivables, net 758 1,019  
Loans subject to repurchase from Ginnie Mae 1,027 1,865  
Financial liabilities      
Unsecured senior notes, net 3,147 2,673  
Advance, warehouse and MSR facilities, net 3,545 2,885  
Liability for loans subject to repurchase from Ginnie Mae 1,027 1,865  
Nonrecurring Fair Value Measurements | Level 1      
Financial assets      
Cash and cash equivalents 553 527  
Restricted cash 151 175  
Advances and other receivables, net 0 0  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance, warehouse and MSR facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae 0 0  
Nonrecurring Fair Value Measurements | Level 2      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Advances and other receivables, net 0 0  
Loans subject to repurchase from Ginnie Mae 1,027 1,865  
Financial liabilities      
Unsecured senior notes, net 2,815 2,209  
Advance, warehouse and MSR facilities, net 3,560 2,896  
Liability for loans subject to repurchase from Ginnie Mae 1,027 1,865  
Nonrecurring Fair Value Measurements | Level 3      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Advances and other receivables, net 758 1,019  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance, warehouse and MSR facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae $ 0 $ 0  
v3.23.3
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Loss Contingencies [Line Items]          
Legal Fees (Recoveries), net $ 8 $ 7 $ 29 $ 15  
Repurchase Reserve 81   81   $ 22
Litigation and regulatory matters | Min          
Loss Contingencies [Line Items]          
Estimate of possible loss 2   2    
Litigation and regulatory matters | Max          
Loss Contingencies [Line Items]          
Estimate of possible loss $ 3   $ 3    
v3.23.3
Segment Information - Financial Information (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Revenues:          
Service related, net $ 432 $ 395 $ 1,095 $ 1,610  
Net gain on mortgage loans held for sale 142 115 295 551  
Total revenues 574 510 1,390 2,161  
Total expenses 301 316 840 982  
Other income (expenses)          
Interest income 167 83 369 169  
Interest expense (146) (104) (378) (321)  
Other income, net 58 (20) 44 197  
Total other income (expenses), net 79 (41) 35 45  
Income before income tax expense 352 153 585 1,224  
Depreciation and amortization for property and equipment and intangible assets 10 9 28 29  
Total assets 13,427 12,815 13,427 12,815 $ 12,776
2023 Trust Collapse          
Other income (expenses)          
Payments to Acquire Retained Interest in Securitized Receivables 82        
Proceeds from Sale, Loan, Held-for-Sale 67        
UPB 207   207    
Operating Segments | Servicing          
Revenues:          
Service related, net 392 353 988 1,468  
Net gain on mortgage loans held for sale 72 (21) 75 (25)  
Total revenues 464 332 1,063 1,443  
Total expenses 172 147 484 412  
Other income (expenses)          
Interest income 157 71 343 125  
Interest expense (88) (53) (224) (168)  
Other income, net 0 0 0 0  
Total other income (expenses), net 69 18 119 (43)  
Income before income tax expense 361 203 698 988  
Depreciation and amortization for property and equipment and intangible assets 4 6 9 16  
Total assets 10,916 9,703 10,916 9,703  
Operating Segments | Originations          
Revenues:          
Service related, net 18 20 45 86  
Net gain on mortgage loans held for sale 70 136 220 576  
Total revenues 88 156 265 662  
Total expenses 58 111 173 410  
Other income (expenses)          
Interest income 10 12 26 44  
Interest expense (11) (11) (28) (33)  
Other income, net 0 0 0 0  
Total other income (expenses), net (1) 1 (2) 11  
Income before income tax expense 29 46 90 263  
Depreciation and amortization for property and equipment and intangible assets 2 5 6 14  
Total assets 868 1,252 868 1,252  
Corporate/Other          
Revenues:          
Service related, net 22 22 62 56  
Net gain on mortgage loans held for sale 0 0 0 0  
Total revenues 22 22 62 56  
Total expenses 71 58 183 160  
Other income (expenses)          
Interest income 0 0 0 0  
Interest expense (47) (40) (126) (120)  
Other income, net 58 (20) 44 197  
Total other income (expenses), net 11 (60) (82) 77  
Income before income tax expense (38) (96) (203) (27)  
Depreciation and amortization for property and equipment and intangible assets 4 (2) 13 (1)  
Total assets $ 1,643 $ 1,860 $ 1,643 $ 1,860