MR. COOPER GROUP INC., 10-Q filed on 7/29/2021
Quarterly Report
v3.21.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2021
Jul. 22, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2021  
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, $0.01 par value per share  
Trading Symbol COOP  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   86,148,567
Entity Central Index Key 0000933136  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.21.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Assets    
Cash and cash equivalents $ 716 $ 695
Restricted cash 113 135
Mortgage servicing rights at fair value 3,307 2,703
Advances and other receivables, net of reserves of $191 and $208, respectively 837 940
Mortgage loans held for sale at fair value 6,961 5,720
Property and equipment, net of accumulated depreciation of $108 and $96, respectively 110 113
Deferred tax assets, net 1,118 1,339
Other assets 5,211 7,173
Total assets of discontinues operations 4,935 5,347
Total assets 23,308 24,165
Liabilities and Stockholders’ Equity    
Unsecured senior notes, net 2,075 2,074
Advance and warehouse facilities, net 7,310 6,258
Payables and other liabilities 4,895 7,159
MSR related liabilities - nonrecourse at fair value 888 967
Liabilities of discontinued operations 4,790 5,203
Total liabilities 19,958 21,661
Commitments and contingencies (Note 15)
Preferred stock at $0.00001 - 10 million shares authorized, 1.0 million shares issued and outstanding, respectively; aggregate liquidation preference of ten dollars, respectively 0 0
Common stock at $0.01 par value - 300 million shares authorized, 93.2 million and 92.0 million shares issued, respectively 1 1
Additional paid-in-capital 1,120 1,126
Retained earnings 2,434 1,434
Treasury shares at cost - 7.1 million and 2.6 million shares, respectively (206) (58)
Total Mr. Cooper stockholders’ equity 3,349 2,503
Non-controlling interests 1 1
Total stockholders’ equity 3,350 2,504
Total liabilities and stockholders’ equity $ 23,308 $ 24,165
v3.21.2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Advances and other receivables, reserves $ 191,000,000 $ 208,000,000
Accumulated depreciation $ 108,000,000 $ 96,000,000
Preferred stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 1,000,000.0 1,000,000.0
Preferred stock, shares outstanding (in shares) 1,000,000.0 1,000,000.0
Preferred stock, liquidation preference $ 10 $ 10
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 92,000,000.0
Treasury stock (in shares) 7,100,000 2,600,000
v3.21.2
Unaudited Condensed Consolidated Statements of Operations - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Revenues:        
Service related, net $ (8) $ 0 $ 572 $ (67)
Net gain on mortgage loans held for sale 582 618 1,261 949
Total revenues 574 618 1,833 882
Expenses:        
Salaries, wages and benefits 277 238 554 472
General and administrative 148 160 325 350
Total expenses 425 398 879 822
Interest income 51 22 97 97
Interest expense (119) (127) (245) (266)
Other income, net 486 0 486 1
Total other income (expenses), net 418 (105) 338 (168)
Income (loss) from continuing operations before income tax expense (benefit) 567 115 1,292 (108)
Less: Income tax expense (benefit) 140 38 306 (26)
Net income (loss) from continuing operations 427 77 986 (82)
Net income (loss) from discontinued operations 12 (4) 14 (16)
Net income (loss) 439 73 1,000 (98)
Less: Net loss attributable to non-controlling interests 0 0 0 (3)
Net income (loss) attributable to Mr. Cooper 439 73 1,000 (95)
Less: Undistributed earnings attributable to participating stockholders 4 1 9 0
Net income (loss) attributable to common stockholders $ 435 $ 72 $ 991 $ (95)
Earnings Per Share [Abstract]        
Income (Loss) from Continuing Operations, Per Basic Share $ 4.91 $ 0.82 $ 11.13 $ (0.86)
Income (Loss) from Continuing Operations, Per Diluted Share 4.72 0.81 10.65 (0.86)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share 0.14 (0.04) 0.16 (0.18)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share 0.13 (0.04) 0.15 (0.18)
Basic (in dollars per share) 5.05 0.78 11.29 (1.04)
Diluted (in dollars per share) $ 4.85 $ 0.77 $ 10.80 $ (1.04)
v3.21.2
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Cumulative effect, period of adoption, adjustment
Preferred Stock
Common Stock
Additional Paid-in Capital
Retained Earnings
Retained Earnings
Cumulative effect, period of adoption, adjustment
Treasury Share Amount
Total Mr. Cooper Stockholders’ Equity
Total Mr. Cooper Stockholders’ Equity
Cumulative effect, period of adoption, adjustment
Non-controlling Interests
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019     1,000 91,118              
Stockholders' equity, beginning balance at Dec. 31, 2019 $ 2,231 $ 7 $ 0 $ 1 $ 1,109 $ 1,122 $ 7 $ 0 $ 2,232 $ 7 $ (1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Shares issued / (surrendered) under incentive compensation plan (in shares)       904              
Shares issued / (surrendered) under incentive compensation plan (5)       (5)       (5)    
Share-based compensation 10       10       10    
Net income (loss) (98)         (95)     (95)   (3)
Shares outstanding, ending balance (in shares) at Jun. 30, 2020     1,000 92,022              
Stockholders' equity, ending balance at Jun. 30, 2020 2,145   $ 0 $ 1 1,114 1,034   0 2,149   (4)
Shares outstanding, beginning balance (in shares) at Mar. 31, 2020     1,000 91,970              
Stockholders' equity, beginning balance at Mar. 31, 2020 2,066   $ 0 $ 1 1,108 961   0 2,070   (4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Shares issued / (surrendered) under incentive compensation plan (in shares)       52              
Shares issued / (surrendered) under incentive compensation plan 0       0       0    
Share-based compensation 6       6       6    
Net income (loss) 73         73     73   0
Shares outstanding, ending balance (in shares) at Jun. 30, 2020     1,000 92,022              
Stockholders' equity, ending balance at Jun. 30, 2020 2,145   $ 0 $ 1 1,114 1,034   0 2,149   (4)
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020     1,000 89,457              
Stockholders' equity, beginning balance at Dec. 31, 2020 2,504   $ 0 $ 1 1,126 1,434   (58) 2,503   1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Shares issued / (surrendered) under incentive compensation plan (in shares)       1,197              
Shares issued / (surrendered) under incentive compensation plan (20)       (20)       (20)    
Share-based compensation 14       14       14    
Repurchase of common stock (in shares)       (4,505)              
Repurchase of common stock (148)             (148) (148)    
Net income (loss) 1,000         1,000     1,000   0
Shares outstanding, ending balance (in shares) at Jun. 30, 2021     1,000 86,149              
Stockholders' equity, ending balance at Jun. 30, 2021 3,350   $ 0 $ 1 1,120 2,434   (206) 3,349   1
Shares outstanding, beginning balance (in shares) at Mar. 31, 2021     1,000 86,135              
Stockholders' equity, beginning balance at Mar. 31, 2021 2,904   $ 0 $ 1 1,113 1,995   (206) 2,903   1
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Shares issued / (surrendered) under incentive compensation plan (in shares)       14              
Shares issued / (surrendered) under incentive compensation plan (1)       (1)       (1)    
Share-based compensation 8       8       8    
Net income (loss) 439         439     439   0
Shares outstanding, ending balance (in shares) at Jun. 30, 2021     1,000 86,149              
Stockholders' equity, ending balance at Jun. 30, 2021 $ 3,350   $ 0 $ 1 $ 1,120 $ 2,434   $ (206) $ 3,349   $ 1
v3.21.2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Operating Activities    
Net income (loss) $ 1,000 $ (98)
Net income (loss) from discontinued operations 14 (16)
Net income (loss) from continuing operations 986 (82)
Adjustments to reconcile net income (loss) from continuing operations to net cash attributable to operating activities:    
Deferred tax expense (benefit) 220 (49)
Net gain on mortgage loans held for sale (1,261) (949)
Provision for servicing and non-servicing reserves 21 11
Fair value changes and amortization of mortgage servicing rights 190 1,055
Fair value changes in MSR related liabilities 2 (89)
Depreciation and amortization for property and equipment and intangible assets 31 36
Gain on sale of business (487) 0
Other operating activities 24 26
Repurchases of forward loan assets out of Ginnie Mae securitizations (5,812) (2,092)
Mortgage loans originated and purchased for sale, net of fees (47,560) (23,110)
Sales proceeds and loan payment proceeds for mortgage loans held for sale 52,923 26,606
Changes in assets and liabilities:    
Advances and other receivables 48 270
Other assets 101 (5)
Payables and other liabilities 13 (119)
Net cash attributable to operating activities - continuing operations (561) 1,509
Net cash attributable to operating activities - discontinued operations 447 557
Net cash attributable to operating activities (114) 2,066
Investing Activities    
Property and equipment additions, net of disposals (26) (26)
Purchase of forward mortgage servicing rights (217) (31)
Proceeds on sale of forward mortgage servicing rights 13 43
Other investing activities (17) 0
Net cash attributable to investing activities - continuing operations (247) (14)
Net cash attributable to investing activities - discontinued operations 0 0
Net cash attributable to investing activities (247) (14)
Financing Activities    
Increase in advance and warehouse facilities 1,047 (520)
Settlements and repayments of excess spread financing (81) (110)
Issuance of unsecured senior notes 0 600
Redemption and repayment of unsecured senior notes 0 (698)
Repurchase of common stock (148) 0
Other financing activities (24) (2)
Net cash attributable to financing activities - continuing operations 794 (730)
Net cash attributable to financing activities - discontinued operations (440) (633)
Net cash attributable to financing activities 354 (1,363)
Net (decrease) increase in cash, cash equivalents, and restricted cash (7) 689
Cash, cash equivalents, and restricted cash - beginning of period 913 612
Cash, cash equivalents, and restricted cash - end of period(1) [1] 906 1,301
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]    
Consideration from sale of business 499 0
Purchase of forward mortgage servicing rights $ 7 $ 0
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
June 30, 2021June 30, 2020
Cash and cash equivalents$716 $1,041 
Restricted cash113 178 
Restricted cash within assets of discontinued operations77 82 
Total cash, cash equivalents, and restricted cash$906 $1,301 
v3.21.2
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Millions
Jun. 30, 2021
Jun. 30, 2020
Statement of Cash Flows [Abstract]    
Cash and cash equivalents $ 716 $ 1,041
Restricted cash 113 178
Restricted cash within assets of discontinued operations 77 82
Total cash, cash equivalents, and restricted cash [1] $ 906 $ 1,301
[1] The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the condensed consolidated balance sheets.
June 30, 2021June 30, 2020
Cash and cash equivalents$716 $1,041 
Restricted cash113 178 
Restricted cash within assets of discontinued operations77 82 
Total cash, cash equivalents, and restricted cash$906 $1,301 
v3.21.2
Nature of Business and Basis of Presentation
 6 Months Ended
Jun. 30, 2021
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 originators and servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. Xome provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents and mortgage companies. 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.

On March 12, 2021, the Company entered into a Stock Purchase Agreement with Blend Labs, Inc. (“Blend Labs”), a Delaware corporation, pursuant to which Blend Labs will acquire the title business of the Company for a purchase price of approximately $500, consisting of approximately $450 in cash, subject to certain adjustments specified therein, and a retained interest of 9.9% for the Company (the “Title Transaction”). The Title Transaction was completed on June 30, 2021, with consideration received on July 1, 2021. A receivable for consideration was recorded in other assets in the Company’s condensed consolidated balance sheets as of June 30, 2021. Pursuant to the Stock Purchase Agreement, all cash generated, subject to certain adjustments, between March 13, 2021 and the closing date of the Title Transaction, were held for the benefit of Blend Labs. A $487 gain on the Title Transaction was recorded in the second quarter of 2021 upon closing of the Title Transaction, which was included in other income, net within the condensed consolidated statements of operations. In addition, the Company recorded total transaction costs of $2 and $5 for the three and six months ended June 30, 2021, respectively. The results of the title business were previously reported under the Xome segment. The carrying amounts of assets and liabilities associated with the title business were not material to the condensed consolidated balance sheets as of December 31, 2020.

On July 1, 2021, the Company entered into a definitive agreement for the sale of its reverse servicing portfolio, operating under the Champion Mortgage brand (“Champion”), to Mortgage Assets Management, LLC and its affiliates (“MAM”). The reverse servicing operation was previously reported in the Company’s Servicing segment. The Company determined the sale of the reverse servicing portfolio qualified for reporting as discontinued operations as of June 30, 2021. As a result, the reverse servicing operation is presented as discontinued operations in the Company’s condensed consolidated statements of operations and the assets and liabilities of the reverse servicing operation are presented as discontinued operations in the Company’s condensed consolidated balance sheets for all periods presented. Unless otherwise indicated, information in this report relates to the Company’s continuing operations. Refer to Note 2, Discontinued Operations for further details.

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, 2020.

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. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. 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, 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, uncertainties in the economy from the COVID-19 pandemic, and such differences could be material.

In the second quarter of 2021, the Company refined its estimation process for determining the fair value of forward MSRs by incorporating an estimate of future cash flows from existing loans that are expected to be recaptured, which is consistent with recent pricing observed from market participants. This refinement did not result in a significant change to the overall valuation of the Company’s mortgage servicing rights (“MSRs”) portfolio. See Note 3, Mortgage Servicing Rights and Related Liabilities and Note 13, Fair Value Measurements for further discussion. There were no other changes to the Company’s use of estimates for the period ended June 30, 2021.

Recent Accounting Guidance Adopted
Accounting Standards Update 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”) simplifies accounting for income taxes by removing certain exceptions from the general principles in Topic 740 including elimination of the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items such as other comprehensive income. ASU 2019-12 also clarifies and amends certain guidance in Topic 740. ASU 2019-12 is effective for the Company on January 1, 2021. The adoption of the standard did not have a material impact to the Company’s condensed consolidated financial statements.
v3.21.2
Discontinued Operations and Disposal Groups
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure
2. Discontinued Operations

On July 1, 2021, the Company entered into a definitive agreement for the sale of its reverse servicing portfolio, operating under Champion, to MAM. Upon close of the transaction, which is subject to regulatory approvals and other closing conditions, MAM will assume Champion’s reverse portfolio and related operations. The sale is expected to close prior to the end of 2021. The carrying amounts of assets and liabilities associated with the reverse servicing operation are reported under the Servicing segment. The Company determined reverse servicing operations met the criteria for classification as held for sale as of June 30, 2021 and represents a strategic shift in the Company’s operations. Therefore, the sale of the reverse servicing portfolio qualifies for reporting as discontinued operations, and the assets and liabilities of the reverse servicing portfolio are reported as discontinued operations in the condensed consolidated balance sheets and related results of operations are reported as discontinued operations in the condensed consolidated statements of operations for all periods presented.

As part of the transaction, the Company entered into a servicing agreement with MAM, under which the Company will be compensated for continuing to service these reverse loans through the date that the loans are transferred out of Company’s servicing system, which will be the date of close. In addition, the Company will retain certain loans related to the reverse servicing portfolio, primarily related to previously liquidated loans, with total assets of $112 and total liabilities of $88 as of June 30, 2021.
The following table sets forth the assets and liabilities included in discontinued operations:
June 30, 2021December 31, 2020
Carrying amounts of assets of discontinued operations
Restricted cash$77 $83 
Reverse mortgage interests, net4,910 5,253 
Other9 11 
Loss recognized on classification as discontinued operations(61)— 
Total assets of discontinues operations$4,935 $5,347 
Carrying amounts of liabilities of discontinued operations
Advances and warehouse facilities, net$525 $505 
Payables and other liabilities224 233 
Mortgage servicing liabilities42 41 
Other nonrecourse debt, net3,999 4,424 
Total liabilities of discontinued operations$4,790 $5,203 

The following table sets forth the condensed consolidated statements of operations data for discontinued operations:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenue - service related, net$1 $12 $9 $26 
Salaries, wages and benefits expense(8)(10)(16)(22)
General and administrative expense71 (10)64 (18)
Interest income43 53 87 96 
Interest expense(30)(50)(64)(103)
Loss on classification as discontinued operations(61)— (61)— 
Income (loss) from discontinued operations before income tax expense (benefit)16 (5)19 (21)
Less: Income tax expense (benefit)4 (1)5 (5)
Net income (loss) from discontinued operations$12 $(4)$14 $(16)
v3.21.2
Mortgage Servicing Rights and Related Liabilities
 6 Months Ended
Jun. 30, 2021
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights and Related Liabilities
3. Mortgage Servicing Rights and Related Liabilities

The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) 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 LiabilitiesJune 30, 2021December 31, 2020
Forward MSRs - fair value$3,307 $2,703 
Excess spread financing - fair value$867 $934 
Mortgage servicing rights financing - fair value21 33 
MSR related liabilities - nonrecourse at fair value$888 $967 
Forward Mortgage Servicing Rights
The following table sets forth the activities of forward MSRs:
Six Months Ended June 30,
Forward MSRs - Fair Value20212020
Fair value - beginning of period$2,703 $3,496 
Additions:
Servicing retained from mortgage loans sold554 249 
Purchases of servicing rights218 24 
Dispositions:
Sales of servicing assets(12)— 
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model270 (717)
Changes in valuation due to amortization(460)(338)
Other changes34 43 
Fair value - end of period$3,307 $2,757 

During the six months ended June 30, 2021 and 2020, the Company sold $1,076 and $71 in unpaid principal balance (“UPB”) of forward MSRs, of which $1,008 and none were retained by the Company as subservicer, respectively.

MSRs measured at fair value 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 National Mortgage Association (“Fannie Mae” or “FNMA”) and the Federal Home Loan Mortgage Corp (“Freddie Mac” or “FHLMC”), 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 forward MSRs:
June 30, 2021December 31, 2020
Forward MSRs - UPB and Fair Value BreakdownUPBFair ValueUPBFair Value
Investor Pools
Agency$248,799 $2,955 $227,136 $2,305 
Non-agency38,656 352 44,053 398 
Total$287,455 $3,307 $271,189 $2,703 

In the second quarter of 2021, the Company refined its estimate of the fair value of forward MSRs by incorporating an estimate of future cash flows from existing loans that are expected to be recaptured. The estimate of future cash flows related to recapture is consistent with recent pricing observed from various market participants, including the Company’s independent, third-party valuation firms. As a result of considering the recapture rate, the Company adjusted its discount rate assumption in order to ensure that the fair value of forward MSRs remains consistent with current market participant pricing and was also corroborated with valuations provided by independent, third parties. The net impact on the overall forward MSRs fair value was not significant during the three and six months ended June 30, 2021. Refer to Note 13, Fair Value Measurements, for further discussion on key weighted-average inputs and assumptions used in estimating the fair value of forward MSRs.
The following table shows the hypothetical effect on the fair value of the Company’s forward MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
Forward MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
June 30, 2021
Mortgage servicing rights$(112)$(216)$(139)$(268)$(43)$(87)
December 31, 2020
Mortgage servicing rights$(100)$(192)$(181)$(347)$(45)$(89)

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 $867 and $934 as of June 30, 2021 and December 31, 2020, respectively. Refer to Note 13, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of excess spread financing.

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:
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
June 30, 2021
Excess spread financing$30 $61 $34 $70 
December 31, 2020
Excess spread financing$30 $62 $41 $84 

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 $33 as of June 30, 2021 and December 31, 2020, respectively. Refer to Note 13, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of the MSR financing liability.
Servicing Segment Revenues
The following table sets forth the items comprising total revenues for the Servicing segment:
Three Months Ended June 30,Six Months Ended June 30,
Total Revenues - Servicing2021202020212020
Contractually specified servicing fees(1)
$275 $285 $551 $582 
Other service-related income(1)
214 62 359 111 
Incentive and modification income(1)
14 8 28 18 
Late fees(1)
16 20 34 47 
Mark-to-market adjustments(2)
(180)(261)174 (644)
Counterparty revenue share(3)
(76)(88)(159)(164)
Amortization, net of accretion(4)
(158)(107)(314)(191)
Total revenues - Servicing$105 $(81)$673 $(241)

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues.
(2)Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes 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. The impact of negative modeled cash flows was $8 and $3 for the three months ended June 30, 2021 and 2020 and $20 and $13 for the six months ended June 30, 2021 and 2020, respectively.
(3)Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSR financing arrangements.
(4)Amortization is net of excess spread accretion of $70 and $79 during the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, amortization is net of excess spread accretion of $146 and $147, respectively.
v3.21.2
Advances and Other Receivables
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Advances and Other Receivables
4. Advances and Other Receivables

Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetJune 30, 2021December 31, 2020
Servicing advances, net of $26 and $72 purchase discount, respectively
$856 $975 
Receivables from agencies, investors and prior servicers, net of $20 and $21 purchase discount, respectively
172 173 
Reserves(191)(208)
Total advances and other receivables, net$837 $940 

The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended June 30,Six Months Ended June 30,
Reserves for Advances and Other Receivables2021202020212020
Balance - beginning of period$206 $193 $208 $168 
Provision and other additions(1)
26 29 41 59 
Write-offs(41)(6)(58)(11)
Balance - end of period$191 $216 $191 $216 

(1)The Company recorded a provision of $8 and $3 through the MTM adjustments in revenues - service related, net, in the unaudited condensed consolidated statements of operations during the three months ended June 30, 2021 and 2020, respectively, and $20 and $13 during the six months ended June 30, 2021 and 2020, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of 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 June 30,
20212020
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$63 $20 $125 $21 
Utilization of purchase discounts(37)— (8)— 
Balance - end of period$26 $20 $117 $21 

Six Months Ended June 30,
20212020
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$72 $21 $131 $21 
Utilization of purchase discounts(46)(1)(14)— 
Balance - end of period$26 $20 $117 $21 

Credit Loss for Advances and Other Receivables
During the three and six months ended June 30, 2021, the Company increased the current expected credit loss (“CECL”) reserve by $3 and $4, respectively. During the three and six months ended June 30, 2020, the Company increased the CECL reserve by $8 and $14, respectively. As of June 30, 2021, the total CECL reserve was $42, of which $25 and $17 were recorded in reserves and purchase discount for advances and other receivables, respectively. As of June 30, 2020, the total CECL reserve was $31, of which $14 and $17 were recorded in reserves and purchase discount for advances and other receivables, respectively.

The Company determined that the credit-related risk associated with applicable financial instruments typically increase 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.
v3.21.2
Mortgage Loans Held for Sale
 6 Months Ended
Jun. 30, 2021
Mortgage Loans Held for Sale and Investment [Abstract]  
Mortgage Loans Held for Sale
5. Mortgage Loans Held for Sale

Mortgage loans held for sale are recorded at fair value as set forth below:
Mortgage Loans Held for SaleJune 30, 2021December 31, 2020
Mortgage loans held for sale – UPB$6,706 $5,438 
Mark-to-market adjustment(1)
255 282 
Total mortgage loans held for sale$6,961 $5,720 

(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 net gain on mortgage loans held for sale in the unaudited condensed consolidated statements of operations.
The following table sets forth the activities of mortgage loans held for sale:
Six Months Ended June 30,
Mortgage Loans Held for Sale20212020
Balance - beginning of period$5,720 $4,077 
Loans sold(52,128)(26,149)
Mortgage loans originated and purchased, net of fees47,560 23,110 
Repurchase of loans out of Ginnie Mae securitizations5,812 2,092 
Net change in unrealized (loss) gain on retained loans held for sale(5)42 
Net transfers of mortgage loans held for sale(1)
2 7 
Balance - end of period$6,961 $3,179 

(1)Amount reflects 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.

During the six months ended June 30, 2021 and 2020, the Company received proceeds of $52,923 and $26,606, respectively, on the sale of mortgage loans held for sale, resulting in gains of $795 and $457, respectively.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
June 30, 2021December 31, 2020
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$1,178 $1,216 $64 $54 

(1)Non-accrual UPB includes $1,149 and $48 of UPB related to Ginnie Mae repurchased loans as of June 30, 2021 and December 31, 2020, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $19 and $20 as of June 30, 2021 and December 31, 2020, respectively.
v3.21.2
Loans Subject to Repurchase from Ginnie Mae
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Loans Subject to Repurchase from Ginnie Mae
6. Loans Subject to Repurchase from Ginnie Mae

Forward 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 $4,057 and $6,159 as of June 30, 2021 and December 31, 2020, respectively, which are included in both other assets and payables and other liabilities in the condensed consolidated balance sheets. Loans subject to repurchase from Ginnie Mae as of June 30, 2021 and December 31, 2020 include $3,825 and $5,879 loans in forbearance related to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), respectively, whereby no payments have been received from borrowers for greater than 90 days.
v3.21.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets 7. Goodwill and Intangible Assets The Company had goodwill of $120 as of June 30, 2021 and December 31, 2020. The Company had intangible assets of $22 and $31 as of June 30, 2021 and December 31, 2020, respectively. Goodwill and intangible assets are included in other assets within the condensed consolidated balance sheets.
v3.21.2
Derivative Financial Instruments
 6 Months Ended
Jun. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
8. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap agreements. The changes in value on the derivative instruments are recorded in earnings as a component of net gain on mortgage loans held for sale on the condensed consolidated statements of operations and condensed consolidated statement of cash flows, except for a portion of forward MBS trades to hedge MSR pipelines and related fair value changes, which is recorded in service related, net on the condensed consolidated statements of operations and in changes in other assets or other liabilities 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:
June 30, 2021Six Months Ended June 30, 2021
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2021$1,514 $39 $(63)
Derivative financial instruments
IRLCs20216,730 204 (210)
LPCs20211,984 10 (28)
Forward MBS trades20219,749 27 (10)
Swap futures202160 — — 
Total derivative financial instruments - assets$18,523 $241 $(248)
Liabilities
Derivative financial instruments
IRLCs2021$9 $— $— 
LPCs2021708 1 — 
Forward MBS trades202111,747 25 (131)
Total derivative financial instruments - liabilities$12,464 $26 $(131)
June 30, 2020Six Months Ended June 30, 2020
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2020$1,673 $81 $48 
Derivative financial instruments
IRLCs20209,227 370 235 
LPCs20201,823 18 6 
Forward MBS trades20201,239 3 (3)
Eurodollar futures2020-20216 — — 
Total derivative financial instruments - assets$12,295 $391 $238 
Liabilities
Derivative financial instruments
LPCs2020$55 $— $(2)
Forward MBS trades202010,119 50 37 
Eurodollar futures2020-20215 — — 
Total derivative financial instruments - liabilities$10,179 $50 $35 
The Company held $2 and $61 in collateral deposits on derivative instruments as of June 30, 2021 and December 31, 2020, respectively, which are recorded in other assets 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.
v3.21.2
Indebtedness
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Indebtedness
9. Indebtedness

Advance and Warehouse Facilities
June 30, 2021December 31, 2020
Interest RateMaturity DateCollateralCapacity AmountOutstandingCollateral PledgedOutstandingCollateral Pledged
Advance Facilities
$875 advance facility
CP+2.0% to 6.5%
January 2022Servicing advance receivables$875 $143 $168 $168 $195 
$640 advance facility(1)
LIBOR+3.9%
August 2022Servicing advance receivables640 201 264 235 305 
$425 advance facility
LIBOR+1.7% to 6.5%
October 2021Servicing advance receivables425 167 219 192 246 
$100 advance facility
LIBOR+2.5%
January 2022Servicing advance receivables100 66 69 74 98 
Advance facilities principal amount 577 720 669 844 
Warehouse Facilities
$2,500 warehouse facility(2)
LIBOR+1.6% to 1.9%
October 2021Mortgage loans or MBS2,500 1,374 1,424 1,003 1,037 
$2,000 warehouse facility(3)
LIBOR+1.5% to 1.8%
February 2023Mortgage loans or MBS2,000 1,968 2,124 339 392 
$1,500 warehouse facility
LIBOR+1.5%
June 2022Mortgage loans or MBS1,500 607 584 1,081 1,028 
$1,350 warehouse facility(4)(5)
LIBOR+1.8% to 3.9%
September 2022Mortgage loans or MBS1,350 1,018 1,065 951 977 
$1,200 warehouse facility(5)
LIBOR+1.8% to 3.0%
November 2021Mortgage loans or MBS1,200 293 303 586 607 
$750 warehouse facility
LIBOR+1.8% to 2.3%
August 2021Mortgage loans or MBS750 400 412 477 492 
$750 warehouse facility
LIBOR+1.7% to 2.8%
October 2021Mortgage loans or MBS750 303 313 562 574 
$600 warehouse facility(5)
LIBOR+2.5%
February 2022Mortgage loans or MBS600 77 78 — — 
$500 warehouse facility
LIBOR+1.5% to 3.0%
June 2023Mortgage loans or MBS500 — — — — 
$500 warehouse facility(5)
LIBOR+1.5% to 4.0%
June 2022Mortgage loans or MBS500 146 145 — — 
$300 warehouse facility
LIBOR+1.4%
January 2022Mortgage loans or MBS300 93 94 163 164 
$200 warehouse facility
LIBOR+1.8%
August 2021Mortgage loans or MBS200 180 184 131 134 
$50 warehouse facility
LIBOR+1.8% to 4.8%
April 2022Mortgage loans or MBS50 11 15 37 42 
$30 warehouse facility(5)(6)
LIBOR+3.3%
January 2022Mortgage loans or MBS30 — — — — 
Warehouse facilities principal amount 6,470 6,741 5,330 5,447 
MSR Facilities
$260 warehouse facility(1)
LIBOR+3.9%
August 2022MSR260260865260668
$200 warehouse facility
LIBOR+3.5%
August 2021MSR200—517—247
$150 warehouse facility(4)
LIBOR+3.8%
September 2022MSR150—453—228
$50 warehouse facility
LIBOR+3.3%
November 2022MSR5010721074
MSR facilities principal amount 2701,9072701,217
Advance, warehouse and MSR facilities principal amount 7,317 $9,3686,269 $7,508 
Unamortized debt issuance costs(7)(11)
Advance and warehouse facilities, net$7,310$6,258
Pledged Collateral for warehouse and MSR facilities:
Mortgage loans held for sale$6,470 $6,741 $5,330 $5,447 
MSR 270 1,907 270 1,217 
(1)Total capacity for this facility is $900, of which $640 is internally allocated for advance financing and $260 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations.
(2)The capacity amount for this warehouse facility increased from $1,500 to $2,500 in 2021.
(3)The capacity amount for this warehouse facility subsequently increased from $2,000 to $4,000 in July 2021.
(4)Total capacity amount for this facility is $1,500, of which $150 is a sublimit for MSR financing.
(5)The outstanding and collateral pledged amounts excluded balances related to reverse mortgage interests, which are included in liabilities of discontinued operations. Refer to Note 2, Discontinued Operations for further details on liabilities of discontinued operations.
(6)The capacity amount for this warehouse facility decreased from $40 to $30 in 2021.

Unsecured Senior Notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesJune 30, 2021December 31, 2020
$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 
Unsecured senior notes principal amount2,100 2,100 
Unamortized debt issuance costs(25)(26)
Unsecured senior notes, net $2,075 $2,074 

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 six months ended June 30, 2021 and three months ended June 30, 2020. During the six months ended June 30, 2020, the Company repaid $100 in principal of outstanding notes, and redeemed $598 in principal of outstanding notes, resulting in a gain of $1.

As of June 30, 2021, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2021 through 2025$— 
Thereafter2,100 
Total unsecured senior notes principal amount$2,100 

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 June 30, 2021.
v3.21.2
Securitizations and Financings
 6 Months Ended
Jun. 30, 2021
Variable Interest Entities and Securitizations [Abstract]  
Securitizations and Financings
10. 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:
June 30, 2021December 31, 2020
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings		Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$44 $47 
Advances and other receivables, net387 441 
Total assets$431 $488 
Liabilities
Advance facilities(1)
$310 $358 
Payables and other liabilities— 1 
Total liabilities$310 $359 

(1)Refer to advance facilities in Note 9, 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 TrustsJune 30, 2021December 31, 2020
Total collateral balances - UPB$1,230 $1,326 
Total certificate balances$1,229 $1,329 

The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of June 30, 2021 and December 31, 2020. 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 DueJune 30, 2021December 31, 2020
Unconsolidated securitization trusts$141 $154 
v3.21.2
Earnings Per Share
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Earnings Per Share
11. Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and any participating securities according to dividends declared (whether paid or unpaid) and participation rights in undistributed earnings. The Series A Preferred Stock is considered participating securities because it has dividend rights determined on an as-converted basis in the event of Company’s declaration of a dividend or distribution for common shares. On March 26, 2021, the Company repurchased 3,700 thousand shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P., a related party of the Company, for a total cost of $119 or $32.25 per share.
The following table sets forth the computation of basic and diluted net income (loss) per common share (amounts in millions, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
Computation of Earnings Per Share2021202020212020
Net income (loss) from continuing operations$427 $77 $986 $(82)
Less: Net loss attributable to non-controlling interests— — — (3)
Less: Undistributed earnings from continuing operations attributable to participating stockholders4 1 9 — 
Net income (loss) from continuing operations attributable to Mr. Cooper common stockholders$423 $76 $977 $(79)
Net income (loss) from discontinued operations$12 $(4)$14 $(16)
Less: Undistributed earnings from discontinued operations attributable to participating stockholders— — — — 
Net income (loss) from discontinued operations attributable to Mr. Cooper common stockholders$12 $(4)$14 $(16)
Net income (loss)$439 $73 $1,000 $(98)
Less: Net loss attributable to non-controlling interests— — — (3)
Net income (loss) attributable to Mr. Cooper439 73 1,000 (95)
Less: Undistributed earnings attributable to participating stockholders4 1 9 — 
Net income (loss) attributable to common stockholders$435 $72 $991 $(95)
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$4.91 $0.82 $11.13 $(0.86)
Diluted$4.72 $0.81 $10.65 $(0.86)
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$0.14 $(0.04)$0.16 $(0.18)
Diluted$0.13 $(0.04)$0.15 $(0.18)
Earnings per common share attributable to Mr. Cooper:
Basic$5.05 $0.78 $11.29 $(1.04)
Diluted$4.85 $0.77 $10.80 $(1.04)
Weighted average shares of common stock outstanding (in thousands):
Basic86,142 91,997 87,791 91,691 
Dilutive effect of stock awards(1)
2,664 176 3,123 — 
Dilutive effect of participating securities(1)
839 839 839 — 
Diluted89,645 93,012 91,753 91,691 

(1)For periods with net loss, the Company excluded potential common shares from the computation of diluted EPS because inclusion would be antidilutive.
v3.21.2
Income Taxes
 6 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes
12. Income Taxes

For the three and six months ended June 30, 2021, the effective tax rate was 24.8% and 23.7%, respectively, which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation. The effective tax rate decreased during the six months ended June 30, 2021 compared to the same period in 2020, primarily due to quarterly discrete tax items related to the completion of the Title Transaction and excess tax benefit from stock-based compensation.

For the three and six months ended June 30, 2020, the effective tax rate was 33.0% and 24.2%, respectively, which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.
v3.21.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements
13. 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, 2020, with the exception of the following:

Mortgage Servicing Rights – Fair Value (Level 3) – The Company estimates the fair value of its forward 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. The cash flow assumptions and prepayment assumptions used in the model are based on a discounted cash flow model which incorporates prepayment speeds, delinquencies, discount rate, ancillary revenues, float earnings and other assumptions (including costs to service, recapture rates and forbearance rates), with the key assumptions being mortgage prepayment speeds, discount rates, and cost to service. In the second quarter of 2021, the Company refined its estimate of the fair value of forward MSRs by incorporating an estimate of future cash flows from loans that are expected to be recaptured. The estimate of future cash flows related to recapture is consistent with recent pricing observed from various market participants, including the Company’s independent third-party valuation firms As a result of considering the recapture rate, the Company adjusted its discount rate assumption in order to ensure that the fair value of forward MSRs remains consistent with current market participant pricing and is reflective of an exit price. The estimated fair value was also corroborated with valuations provided by independent third parties. The net impact on the overall forward MSRs fair value was not significant during the three and six months ended June 30, 2021. These 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 3, Mortgage Servicing Rights and Related Liabilities, for more information.
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:
 June 30, 2021
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$6,961 $— $6,961 $— 
Forward mortgage servicing rights3,307 — — 3,307 
Derivative financial instruments
IRLCs
204 — — 204 
LPCs
10 — — 10 
Forward MBS trades
27 — 27 — 
Liabilities
Derivative financial instruments
LPCs
1 — — 1 
Forward MBS trades25 — 25 — 
Mortgage servicing rights financing21 — — 21 
Excess spread financing867 — — 867 

 December 31, 2020
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$5,720 $— $5,720 $— 
Forward mortgage servicing rights2,703 — — 2,703 
Derivative financial instruments
IRLCs414 — — 414 
LPCs38 — — 38 
Forward MBS trades37 — 37 — 
Liabilities
Derivative financial instruments
LPCs1 — — 1 
Forward MBS trades156 — 156 — 
Mortgage servicing rights financing33 — — 33 
Excess spread financing934 — — 934 
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:
Six Months Ended June 30, 2021
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesForward mortgage servicing rightsIRLCsLPCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$2,703 $414 $38 $934 $33 
Changes in fair value included in earnings(190)(210)(28)14 (12)
Other changes34 — — — — 
Purchases, issuances, sales, repayments and settlements
Purchases218 — — — — 
Issuances554 — — — — 
Sales(12)— — — — 
Settlements and repayments— — — (81)— 
Balance - end of period$3,307 $204 $10 $867 $21 

Six Months Ended June 30, 2020
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesForward mortgage servicing rightsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$3,496 $135 $1,311 $37 
Changes in fair value included in earnings(1,055)235 (101)12 
Other changes43— — — 
Purchases, issuances, sales, repayments and settlements
Purchases24 — — — 
Issuances249 — 24 — 
Settlements and repayments— — (110)— 
Balance - end of period$2,757 $370 $1,124 $49 

No transfers were made in or out of Level 3 fair value assets and liabilities for the Company during the six months ended June 30, 2021 and 2020.
The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities:
June 30, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
Forward MSR
Discount rate9.5 %13.8 %11.0 %8.2 %12.0 %9.4 %
Prepayment speed12.4 %18.8 %13.6 %14.2 %21.3 %15.4 %
Cost to service per loan(1)
$63 $223 $86 $66 $257 $98 
Average life(2)
5.5 years5.0 years
IRLCs
Value of servicing (basis points per loan)(0.7)2.3 1.4 (1.0)2.2 1.2 
Excess spread financing
Discount rate9.5 %13.8 %11.2 %9.9 %15.7 %12.2 %
Prepayment speed12.6 %15.3 %13.5 %13.9 %15.0 %14.4 %
Recapture rate13.7 %29.5 %21.3 %17.7 %24.2 %19.5 %
Average life(2)
5.4 years5.1 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates5.3 %8.2 %6.9 %4.6 %8.5 %7.5 %
Annual advance recovery rates18.9 %22.7 %20.8 %18.3 %22.0 %19.9 %

(1)Presented in whole dollar amounts.
(2)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:
 June 30, 2021
 Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$716 $716 $— $— 
Restricted cash113 113 — — 
Advances and other receivables, net837 — — 837 
Loans subject to repurchase from Ginnie Mae4,057 — 4,057 — 
Financial liabilities
Unsecured senior notes, net2,075 2,117 — — 
Advance and warehouse facilities, net7,310 — 7,317 — 
Liability for loans subject to repurchase from Ginnie Mae4,057 — 4,057 — 
December 31, 2020
Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$695 $695 $— $— 
Restricted cash135 135 — — 
Advances and other receivables, net940 — — 940 
Loans subject to repurchase from Ginnie Mae6,159 — 6,159 — 
Financial liabilities
Unsecured senior notes, net2,074 2,208 — — 
Advance and warehouse facilities, net6,258 — 6,269 — 
Liability for loans subject to repurchase from Ginnie Mae6,159 — 6,159 — 
v3.21.2
Capital Requirements
 6 Months Ended
Jun. 30, 2021
Mortgage Banking [Abstract]  
Capital Requirements
14. Capital Requirements

Certain of the Company’s secondary market investors require 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 operating subsidiary, Nationstar Mortgage LLC. As of June 30, 2021, the Company was in compliance with its selling and servicing capital requirements.
v3.21.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
15. Commitments and Contingencies

Litigation and Regulatory
The Company and its subsidiaries are routinely and currently involved in a significant 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. The legal proceedings are at varying stages of adjudication, arbitration or investigation and are generally based on alleged violations of consumer protection, securities, employment, contract, tort, common law fraud and other numerous laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, National Housing Act, Homeowners Protection Act, Service Member’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989, unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, the Securities Exchange Act of 1934, the Home Mortgage Disclosure Act, Title 11 of the United States Code (aka the “Bankruptcy Code”), False Claims Act and Making Home Affordable loan modification programs.

In addition, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, regarding alleged breaches of representations and warranties relating to the sale of mortgage loans, the placement of mortgage loans into securitization trusts or the servicing of mortgage loans securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the pending or threatened legal proceedings include claims for substantial compensatory, punitive and/ or statutory damages or claims for an indeterminate amount of damages.
The Company operates within highly regulated industries on a federal, state and local level. In the normal and ordinary course of its business, the Company is routinely subject to extensive examinations, investigations, subpoenas, inquiries and reviews by various federal, state and local governmental, regulatory and enforcement agencies, including the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the Department of Justice, the Office of the Special Inspector General for the Troubled Asset Relief Program, the U.S. Department of Housing and Urban Development, various State mortgage banking regulators and various State Attorneys General, related to the Company’s residential loan servicing and origination practices, its financial reporting and other aspects of its businesses. Any pending or potential future investigations, subpoenas, examinations or inquiries may lead to administrative, civil or criminal proceedings or settlements, and possibly result in remedies including fines, penalties, restitution, or alterations in the Company’s business practices, and additional expenses and collateral costs. The Company is cooperating fully in these matters. Responding to these matters requires the Company to devote substantial resources, resulting in higher costs and lower net cash flows. Adverse results in any of these matters could further increase the Company’s operating expenses and reduce its revenues, require it to change business practices and limit its ability to grow and otherwise materially and adversely affect its business, reputation, financial condition and results of operation.

The Company seeks to resolve all legal proceedings and other matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. The Company has entered into agreements with a number of entities and regulatory agencies that toll applicable limitations periods with respect to their claims.

On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory and governmental proceedings utilizing the latest information available. Where available information indicates that it is probable, a liability has been incurred, and the Company can reasonably estimate the amount of the loss, an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued.

As a legal matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is both probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and reasonably estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and reasonably estimable. Once the matter is deemed to be both probable and reasonably estimable, the Company will establish an accrued liability and record a corresponding amount to legal-related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Legal-related expense for the Company, which includes legal settlements and the fees paid to external legal service providers, of $8 and $21 for three and six months ended June 30, 2021, respectively, and $12 and $27 for three and six months ended June 30, 2020, respectively, was included in general and administrative expenses on the unaudited condensed consolidated statements of operations.

For matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material legal matters on an ongoing basis, in conjunction with any outside counsel handling the matter. Management currently believes the aggregate range of reasonably possible loss is $2 to $17 in excess of the accrued liability (if any) related to those matters as of June 30, 2021. 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. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure and the Company cannot provide assurance that its litigations reserves will not need to be adjusted in the future. Thus, the Company’s exposure and ultimate losses may be higher, possibly significantly so, than the amounts accrued or this aggregate amount.    
In the Company’s experience, legal proceedings are inherently unpredictable. One or more of the following factors frequently contribute to this inherent unpredictability: the proceeding is in its early stages; the damages sought are unspecified, unsupported or uncertain; it is unclear whether a case brought as a class action will be allowed to proceed on that basis or, if permitted to proceed as a class action, how the class will be defined; the other party is seeking relief other than or in addition to compensatory damages (including, in the case of regulatory and governmental investigations and inquiries, the possibility of fines and penalties); the matter presents meaningful legal uncertainties, including novel issues of law; the Company has not engaged in meaningful settlement discussions; discovery has not started or is not complete; there are significant facts in dispute; predicting possible outcomes depends on making assumptions about future decisions of courts or governmental or regulatory bodies or the behavior of other parties; and there are a large number of parties named as defendants (including where it is uncertain how damages or liability, if any, will be shared among multiple defendants). Generally, the less progress that has been made in the proceedings or the broader the range of potential results, the harder it is for the Company to estimate losses or ranges of losses that is reasonably possible the Company could incur.

Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability within payables and accrued liabilities, is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s condensed consolidated financial statements.

Other Loss Contingencies
As part of the Company’s ongoing operations, it acquires servicing rights of forward 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. The Company believes all balances sought from sellers recorded in advances and other receivables represent valid claims. However, the Company acknowledges that the claims process can be prolonged due to the required time to perfect claims at the loan level. Because of the required time to perfect or remediate these claims, management relies on the sufficiency of documentation supporting the claim, current negotiations with the counterparty and other evidence to evaluate whether a reserve is required for non-recoverable balances. In the absence of successful negotiations with the seller, all amounts claimed may not be recovered. Balances may be written-off and charged against earnings when management identifies amounts where recoverability from the seller is not likely. As of June 30, 2021, 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.

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 8, Derivative Financial Instruments, for more information.
In the second quarter of 2021, the Company entered into an agreement, under which the Company committed a total of $83 over a period of 5 years in exchange for cloud platform service.
v3.21.2
Segment Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment Information
16. Segment Information

The Company’s segments are based upon the Company’s organizational structure, which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on the actual cost of services performed, direct resource utilization, estimate of percentage use for shared services or headcount percentage for certain functions. Facility costs are allocated to individual segments based on cost per headcount for specific facilities utilized. Group insurance costs are allocated to individual segments based on global cost per headcount. Non-allocated corporate expenses include the administrative costs of executive management and other corporate functions that are not directly attributable to Company’s operating segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.
On June 30, 2021, the Company closed the previously announced sale of title business to Blend Labs. Pursuant to the Stock Purchase Agreement, all cash generated, subject to certain adjustments, between March 13, 2021 and the closing date of the Title Transaction, were held for the benefit of Blend Labs. The title business was reported in the Company’s Xome segment. See Note 1, Nature of Business and Basis of Presentation for further details. The Company recorded a $487 gain in the second quarter of 2021 upon closing of the transaction. The gain was included in other income, net in the condensed statements of operations and reported under the Xome segment.

On July 1, 2021, the Company entered into a definitive agreement for the sale of its reverse servicing portfolio, operating under the Champion Mortgage brand, to Mortgage Assets Management, LLC and its affiliates. The reverse servicing operation was previously reported in the Company’s Servicing segment. The reverse servicing operation is presented as discontinued operations in Company’s condensed consolidated financial statements for all periods presented and as such is not included in the continuing operations of the Servicing segment. Refer to Note 2, Discontinued Operations for further details. As of June 30, 2021 and December 31, 2020, total assets of discontinued operations was $4,935 and $5,347, respectively.

The following tables present financial information by segment:
 Three Months Ended June 30, 2021
Financial Information by SegmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(92)$45 $39 $— $(8)
Net gain on mortgage loans held for sale197 385 — — 582 
Total revenues105 430 39 — 574 
Total expenses121 226 45 33 425 
Interest income25 26 — — 51 
Interest expense(65)(23)— (31)(119)
Other income, net— — 486 — 486 
Total other (expenses) income, net(40)3 486 (31)418 
(Loss) Income from continuing operations before income tax (benefit) expense$(56)$207 $480 $(64)$567 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$7 $6 $3 $— $16 
Total assets $15,973 $4,582 $573 $2,180 $23,308 

Three Months Ended June 30, 2020
Financial Information by SegmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(126)$21 $106 $(1)$— 
Net gain on mortgage loans held for sale45 573 — — 618 
Total revenues(81)594 106 (1)618 
Total expenses102 167 95 34 398 
Interest income3 19 — — 22 
Interest expense(67)(13)— (47)(127)
Other income (expense), net— — 1 (1)— 
Total other (expenses) income, net(64)6 1 (48)(105)
(Loss) income from continuing operations before income tax (benefit) expense$(247)$433 $12 $(83)$115 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$4 $4 $3 $6 $17 
Total assets $10,736 $3,592 $135 $2,837 $17,300 
Six Months Ended June 30, 2021
Financial information by segmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$349 $88 $135 $— $572 
Net gain on mortgage loans held for sale324 937 — — 1,261 
Total revenues673 1,025 135 — 1,833 
Total expenses231 457 132 59 879 
Interest income48 49 — — 97 
Interest expense(136)(48)— (61)(245)
Other income, net— — 486 — 486 
Total other (expenses) income, net(88)1 486 (61)338 
Income (loss) from continuing operations before income tax (benefit) expense$354 $569 $489 $(120)$1,292 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$12 $10 $6 $3 $31 
Total assets $15,973 $4,582 $573 $2,180 $23,308 

Six Months Ended June 30, 2020
Financial information by segmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(320)$41 $212 $— $(67)
Net gain on mortgage loans held for sale79 870 — — 949 
Total revenues(241)911 212 — 882 
Total expenses231 333 191 67 822 
Interest income43 53 — 1 97 
Interest expense(127)(40)— (99)(266)
Other income (expense), net— — 2 (1)1 
Total other (expenses) income, net(84)13 2 (99)(168)
(Loss) income from continuing operations before income tax expense (benefit)$(556)$591 $23 $(166)$(108)
Depreciation and amortization for property and equipment and intangible assets from continuing operations$8 $7 $6 $15 $36 
Total assets $10,736 $3,592 $135 $2,837 $17,300 
v3.21.2
Nature of Business and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2021
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, 2020.
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. Investments in certain companies over which the Company does not exert significant influence are accounted for as cost method investments. 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, 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, uncertainties in the economy from the COVID-19 pandemic, and such differences could be material.
In the second quarter of 2021, the Company refined its estimation process for determining the fair value of forward MSRs by incorporating an estimate of future cash flows from existing loans that are expected to be recaptured, which is consistent with recent pricing observed from market participants. This refinement did not result in a significant change to the overall valuation of the Company’s mortgage servicing rights (“MSRs”) portfolio. See Note 3, Mortgage Servicing Rights and Related Liabilities and Note 13, Fair Value Measurements for further discussion. There were no other changes to the Company’s use of estimates for the period ended June 30, 2021.
Recent accounting guidance adopted Recent Accounting Guidance AdoptedAccounting Standards Update 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes (“ASU 2019-12”) simplifies accounting for income taxes by removing certain exceptions from the general principles in Topic 740 including elimination of the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items such as other comprehensive income. ASU 2019-12 also clarifies and amends certain guidance in Topic 740. ASU 2019-12 is effective for the Company on January 1, 2021. The adoption of the standard did not have a material impact to the Company’s condensed consolidated financial statements.
v3.21.2
Discontinued Operations and Disposal Groups (Tables)
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
The following table sets forth the assets and liabilities included in discontinued operations:
June 30, 2021December 31, 2020
Carrying amounts of assets of discontinued operations
Restricted cash$77 $83 
Reverse mortgage interests, net4,910 5,253 
Other9 11 
Loss recognized on classification as discontinued operations(61)— 
Total assets of discontinues operations$4,935 $5,347 
Carrying amounts of liabilities of discontinued operations
Advances and warehouse facilities, net$525 $505 
Payables and other liabilities224 233 
Mortgage servicing liabilities42 41 
Other nonrecourse debt, net3,999 4,424 
Total liabilities of discontinued operations$4,790 $5,203 

The following table sets forth the condensed consolidated statements of operations data for discontinued operations:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenue - service related, net$1 $12 $9 $26 
Salaries, wages and benefits expense(8)(10)(16)(22)
General and administrative expense71 (10)64 (18)
Interest income43 53 87 96 
Interest expense(30)(50)(64)(103)
Loss on classification as discontinued operations(61)— (61)— 
Income (loss) from discontinued operations before income tax expense (benefit)16 (5)19 (21)
Less: Income tax expense (benefit)4 (1)5 (5)
Net income (loss) from discontinued operations$12 $(4)$14 $(16)
v3.21.2
Mortgage Servicing Rights and Related Liabilities (Tables)
 6 Months Ended
Jun. 30, 2021
Transfers and Servicing [Abstract]  
Schedule of servicing assets at fair value
The following table sets forth the carrying value of the Company’s mortgage servicing rights (“MSRs”) 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 LiabilitiesJune 30, 2021December 31, 2020
Forward MSRs - fair value$3,307 $2,703 
Excess spread financing - fair value$867 $934 
Mortgage servicing rights financing - fair value21 33 
MSR related liabilities - nonrecourse at fair value$888 $967 
The following table sets forth the activities of forward MSRs:
Six Months Ended June 30,
Forward MSRs - Fair Value20212020
Fair value - beginning of period$2,703 $3,496 
Additions:
Servicing retained from mortgage loans sold554 249 
Purchases of servicing rights218 24 
Dispositions:
Sales of servicing assets(12)— 
Changes in fair value:
Changes in valuation inputs or assumptions used in the valuation model270 (717)
Changes in valuation due to amortization(460)(338)
Other changes34 43 
Fair value - end of period$3,307 $2,757 
The following table provides a breakdown of UPB and fair value for the Company’s forward MSRs:
June 30, 2021December 31, 2020
Forward MSRs - UPB and Fair Value BreakdownUPBFair ValueUPBFair Value
Investor Pools
Agency$248,799 $2,955 $227,136 $2,305 
Non-agency38,656 352 44,053 398 
Total$287,455 $3,307 $271,189 $2,703 
Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets
The following table shows the hypothetical effect on the fair value of the Company’s forward MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
Discount Rate
Total Prepayment Speeds
Cost to Service per Loan
Forward MSRs - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
June 30, 2021
Mortgage servicing rights$(112)$(216)$(139)$(268)$(43)$(87)
December 31, 2020
Mortgage servicing rights$(100)$(192)$(181)$(347)$(45)$(89)
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:
Discount Rate
Prepayment Speeds
Excess Spread Financing - Hypothetical Sensitivities
100 bps
Adverse
Change
200 bps
Adverse
Change
10%
Adverse
Change
20%
Adverse
Change
June 30, 2021
Excess spread financing$30 $61 $34 $70 
December 31, 2020
Excess spread financing$30 $62 $41 $84 
Schedule of fees earned in exchange for servicing financial assets
The following table sets forth the items comprising total revenues for the Servicing segment:
Three Months Ended June 30,Six Months Ended June 30,
Total Revenues - Servicing2021202020212020
Contractually specified servicing fees(1)
$275 $285 $551 $582 
Other service-related income(1)
214 62 359 111 
Incentive and modification income(1)
14 8 28 18 
Late fees(1)
16 20 34 47 
Mark-to-market adjustments(2)
(180)(261)174 (644)
Counterparty revenue share(3)
(76)(88)(159)(164)
Amortization, net of accretion(4)
(158)(107)(314)(191)
Total revenues - Servicing$105 $(81)$673 $(241)

(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues.
(2)Mark-to-market (“MTM”) adjustments include fair value adjustments on MSR, excess spread financing and MSR financing liabilities. The amount of MSR MTM includes 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. The impact of negative modeled cash flows was $8 and $3 for the three months ended June 30, 2021 and 2020 and $20 and $13 for the six months ended June 30, 2021 and 2020, respectively.
(3)Counterparty revenue share represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements and the payments made associated with MSR financing arrangements.
(4)Amortization is net of excess spread accretion of $70 and $79 during the three months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 2021 and 2020, amortization is net of excess spread accretion of $146 and $147, respectively.
v3.21.2
Advances and Other Receivables (Tables)
 6 Months Ended
Jun. 30, 2021
Receivables [Abstract]  
Schedule of accounts receivable
Advances and other receivables, net, consists of the following:
Advances and Other Receivables, NetJune 30, 2021December 31, 2020
Servicing advances, net of $26 and $72 purchase discount, respectively
$856 $975 
Receivables from agencies, investors and prior servicers, net of $20 and $21 purchase discount, respectively
172 173 
Reserves(191)(208)
Total advances and other receivables, net$837 $940 

The following table sets forth the activities of the servicing reserves for advances and other receivables:
Three Months Ended June 30,Six Months Ended June 30,
Reserves for Advances and Other Receivables2021202020212020
Balance - beginning of period$206 $193 $208 $168 
Provision and other additions(1)
26 29 41 59 
Write-offs(41)(6)(58)(11)
Balance - end of period$191 $216 $191 $216 

(1)The Company recorded a provision of $8 and $3 through the MTM adjustments in revenues - service related, net, in the unaudited condensed consolidated statements of operations during the three months ended June 30, 2021 and 2020, respectively, and $20 and $13 during the six months ended June 30, 2021 and 2020, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of 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 June 30,
20212020
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$63 $20 $125 $21 
Utilization of purchase discounts(37)— (8)— 
Balance - end of period$26 $20 $117 $21 

Six Months Ended June 30,
20212020
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$72 $21 $131 $21 
Utilization of purchase discounts(46)(1)(14)— 
Balance - end of period$26 $20 $117 $21 
v3.21.2
Mortgage Loans Held for Sale (Tables)
 6 Months Ended
Jun. 30, 2021
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 SaleJune 30, 2021December 31, 2020
Mortgage loans held for sale – UPB$6,706 $5,438 
Mark-to-market adjustment(1)
255 282 
Total mortgage loans held for sale$6,961 $5,720 

(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 net gain on mortgage loans held for sale in the unaudited condensed consolidated statements of operations.
The following table sets forth the activities of mortgage loans held for sale:
Six Months Ended June 30,
Mortgage Loans Held for Sale20212020
Balance - beginning of period$5,720 $4,077 
Loans sold(52,128)(26,149)
Mortgage loans originated and purchased, net of fees47,560 23,110 
Repurchase of loans out of Ginnie Mae securitizations5,812 2,092 
Net change in unrealized (loss) gain on retained loans held for sale(5)42 
Net transfers of mortgage loans held for sale(1)
2 7 
Balance - end of period$6,961 $3,179 

(1)Amount reflects 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:
June 30, 2021December 31, 2020
Mortgage Loans Held for SaleUPBFair ValueUPBFair Value
Non-accrual(1)
$1,178 $1,216 $64 $54 

(1)Non-accrual UPB includes $1,149 and $48 of UPB related to Ginnie Mae repurchased loans as of June 30, 2021 and December 31, 2020, respectively.
v3.21.2
Derivative Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2021
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:
June 30, 2021Six Months Ended June 30, 2021
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2021$1,514 $39 $(63)
Derivative financial instruments
IRLCs20216,730 204 (210)
LPCs20211,984 10 (28)
Forward MBS trades20219,749 27 (10)
Swap futures202160 — — 
Total derivative financial instruments - assets$18,523 $241 $(248)
Liabilities
Derivative financial instruments
IRLCs2021$9 $— $— 
LPCs2021708 1 — 
Forward MBS trades202111,747 25 (131)
Total derivative financial instruments - liabilities$12,464 $26 $(131)
June 30, 2020Six Months Ended June 30, 2020
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2020$1,673 $81 $48 
Derivative financial instruments
IRLCs20209,227 370 235 
LPCs20201,823 18 6 
Forward MBS trades20201,239 3 (3)
Eurodollar futures2020-20216 — — 
Total derivative financial instruments - assets$12,295 $391 $238 
Liabilities
Derivative financial instruments
LPCs2020$55 $— $(2)
Forward MBS trades202010,119 50 37 
Eurodollar futures2020-20215 — — 
Total derivative financial instruments - liabilities$10,179 $50 $35 
v3.21.2
Indebtedness (Tables)
 6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Schedule of advance and warehouse facilities
Advance and Warehouse Facilities
June 30, 2021December 31, 2020
Interest RateMaturity DateCollateralCapacity AmountOutstandingCollateral PledgedOutstandingCollateral Pledged
Advance Facilities
$875 advance facility
CP+2.0% to 6.5%
January 2022Servicing advance receivables$875 $143 $168 $168 $195 
$640 advance facility(1)
LIBOR+3.9%
August 2022Servicing advance receivables640 201 264 235 305 
$425 advance facility
LIBOR+1.7% to 6.5%
October 2021Servicing advance receivables425 167 219 192 246 
$100 advance facility
LIBOR+2.5%
January 2022Servicing advance receivables100 66 69 74 98 
Advance facilities principal amount 577 720 669 844 
Warehouse Facilities
$2,500 warehouse facility(2)
LIBOR+1.6% to 1.9%
October 2021Mortgage loans or MBS2,500 1,374 1,424 1,003 1,037 
$2,000 warehouse facility(3)
LIBOR+1.5% to 1.8%
February 2023Mortgage loans or MBS2,000 1,968 2,124 339 392 
$1,500 warehouse facility
LIBOR+1.5%
June 2022Mortgage loans or MBS1,500 607 584 1,081 1,028 
$1,350 warehouse facility(4)(5)
LIBOR+1.8% to 3.9%
September 2022Mortgage loans or MBS1,350 1,018 1,065 951 977 
$1,200 warehouse facility(5)
LIBOR+1.8% to 3.0%
November 2021Mortgage loans or MBS1,200 293 303 586 607 
$750 warehouse facility
LIBOR+1.8% to 2.3%
August 2021Mortgage loans or MBS750 400 412 477 492 
$750 warehouse facility
LIBOR+1.7% to 2.8%
October 2021Mortgage loans or MBS750 303 313 562 574 
$600 warehouse facility(5)
LIBOR+2.5%
February 2022Mortgage loans or MBS600 77 78 — — 
$500 warehouse facility
LIBOR+1.5% to 3.0%
June 2023Mortgage loans or MBS500 — — — — 
$500 warehouse facility(5)
LIBOR+1.5% to 4.0%
June 2022Mortgage loans or MBS500 146 145 — — 
$300 warehouse facility
LIBOR+1.4%
January 2022Mortgage loans or MBS300 93 94 163 164 
$200 warehouse facility
LIBOR+1.8%
August 2021Mortgage loans or MBS200 180 184 131 134 
$50 warehouse facility
LIBOR+1.8% to 4.8%
April 2022Mortgage loans or MBS50 11 15 37 42 
$30 warehouse facility(5)(6)
LIBOR+3.3%
January 2022Mortgage loans or MBS30 — — — — 
Warehouse facilities principal amount 6,470 6,741 5,330 5,447 
MSR Facilities
$260 warehouse facility(1)
LIBOR+3.9%
August 2022MSR260260865260668
$200 warehouse facility
LIBOR+3.5%
August 2021MSR200—517—247
$150 warehouse facility(4)
LIBOR+3.8%
September 2022MSR150—453—228
$50 warehouse facility
LIBOR+3.3%
November 2022MSR5010721074
MSR facilities principal amount 2701,9072701,217
Advance, warehouse and MSR facilities principal amount 7,317 $9,3686,269 $7,508 
Unamortized debt issuance costs(7)(11)
Advance and warehouse facilities, net$7,310$6,258
Pledged Collateral for warehouse and MSR facilities:
Mortgage loans held for sale$6,470 $6,741 $5,330 $5,447 
MSR 270 1,907 270 1,217 
(1)Total capacity for this facility is $900, of which $640 is internally allocated for advance financing and $260 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations.
(2)The capacity amount for this warehouse facility increased from $1,500 to $2,500 in 2021.
(3)The capacity amount for this warehouse facility subsequently increased from $2,000 to $4,000 in July 2021.
(4)Total capacity amount for this facility is $1,500, of which $150 is a sublimit for MSR financing.
(5)The outstanding and collateral pledged amounts excluded balances related to reverse mortgage interests, which are included in liabilities of discontinued operations. Refer to Note 2, Discontinued Operations for further details on liabilities of discontinued operations.
(6)The capacity amount for this warehouse facility decreased from $40 to $30 in 2021.
Schedule of unsecured senior notes
Unsecured senior notes consist of the following:
Unsecured Senior NotesJune 30, 2021December 31, 2020
$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 
Unsecured senior notes principal amount2,100 2,100 
Unamortized debt issuance costs(25)(26)
Unsecured senior notes, net $2,075 $2,074 
Schedule of maturities of long-term debt
As of June 30, 2021, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Year Ending December 31,Amount
2021 through 2025$— 
Thereafter2,100 
Total unsecured senior notes principal amount$2,100 
v3.21.2
Securitizations and Financings (Tables)
 6 Months Ended
Jun. 30, 2021
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:
June 30, 2021December 31, 2020
Consolidated Transactions with VIEsTransfers
Accounted for as
Secured
Borrowings		Transfers
Accounted for as
Secured
Borrowings
Assets
Restricted cash$44 $47 
Advances and other receivables, net387 441 
Total assets$431 $488 
Liabilities
Advance facilities(1)
$310 $358 
Payables and other liabilities— 1 
Total liabilities$310 $359 

(1)Refer to advance facilities in Note 9, 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 TrustsJune 30, 2021December 31, 2020
Total collateral balances - UPB$1,230 $1,326 
Total certificate balances$1,229 $1,329 
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 DueJune 30, 2021December 31, 2020
Unconsolidated securitization trusts$141 $154 
v3.21.2
Earnings Per Share (Tables)
 6 Months Ended
Jun. 30, 2021
Earnings Per Share [Abstract]  
Schedule of earnings per share
The following table sets forth the computation of basic and diluted net income (loss) per common share (amounts in millions, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
Computation of Earnings Per Share2021202020212020
Net income (loss) from continuing operations$427 $77 $986 $(82)
Less: Net loss attributable to non-controlling interests— — — (3)
Less: Undistributed earnings from continuing operations attributable to participating stockholders4 1 9 — 
Net income (loss) from continuing operations attributable to Mr. Cooper common stockholders$423 $76 $977 $(79)
Net income (loss) from discontinued operations$12 $(4)$14 $(16)
Less: Undistributed earnings from discontinued operations attributable to participating stockholders— — — — 
Net income (loss) from discontinued operations attributable to Mr. Cooper common stockholders$12 $(4)$14 $(16)
Net income (loss)$439 $73 $1,000 $(98)
Less: Net loss attributable to non-controlling interests— — — (3)
Net income (loss) attributable to Mr. Cooper439 73 1,000 (95)
Less: Undistributed earnings attributable to participating stockholders4 1 9 — 
Net income (loss) attributable to common stockholders$435 $72 $991 $(95)
Earnings from continuing operations per common share attributable to Mr. Cooper:
Basic$4.91 $0.82 $11.13 $(0.86)
Diluted$4.72 $0.81 $10.65 $(0.86)
Earnings from discontinued operations per common share attributable to Mr. Cooper:
Basic$0.14 $(0.04)$0.16 $(0.18)
Diluted$0.13 $(0.04)$0.15 $(0.18)
Earnings per common share attributable to Mr. Cooper:
Basic$5.05 $0.78 $11.29 $(1.04)
Diluted$4.85 $0.77 $10.80 $(1.04)
Weighted average shares of common stock outstanding (in thousands):
Basic86,142 91,997 87,791 91,691 
Dilutive effect of stock awards(1)
2,664 176 3,123 — 
Dilutive effect of participating securities(1)
839 839 839 — 
Diluted89,645 93,012 91,753 91,691 

(1)For periods with net loss, the Company excluded potential common shares from the computation of diluted EPS because inclusion would be antidilutive.
v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2021
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:
 June 30, 2021
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$6,961 $— $6,961 $— 
Forward mortgage servicing rights3,307 — — 3,307 
Derivative financial instruments
IRLCs
204 — — 204 
LPCs
10 — — 10 
Forward MBS trades
27 — 27 — 
Liabilities
Derivative financial instruments
LPCs
1 — — 1 
Forward MBS trades25 — 25 — 
Mortgage servicing rights financing21 — — 21 
Excess spread financing867 — — 867 

 December 31, 2020
  Recurring Fair Value Measurements
Fair Value - Recurring BasisTotal Fair ValueLevel 1Level 2Level 3
Assets
Mortgage loans held for sale$5,720 $— $5,720 $— 
Forward mortgage servicing rights2,703 — — 2,703 
Derivative financial instruments
IRLCs414 — — 414 
LPCs38 — — 38 
Forward MBS trades37 — 37 — 
Liabilities
Derivative financial instruments
LPCs1 — — 1 
Forward MBS trades156 — 156 — 
Mortgage servicing rights financing33 — — 33 
Excess spread financing934 — — 934 
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:
Six Months Ended June 30, 2021
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesForward mortgage servicing rightsIRLCsLPCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$2,703 $414 $38 $934 $33 
Changes in fair value included in earnings(190)(210)(28)14 (12)
Other changes34 — — — — 
Purchases, issuances, sales, repayments and settlements
Purchases218 — — — — 
Issuances554 — — — — 
Sales(12)— — — — 
Settlements and repayments— — — (81)— 
Balance - end of period$3,307 $204 $10 $867 $21 

Six Months Ended June 30, 2020
 AssetsLiabilities
Fair Value - Level 3 Assets and LiabilitiesForward mortgage servicing rightsIRLCsExcess spread financingMortgage servicing rights financing
Balance - beginning of period$3,496 $135 $1,311 $37 
Changes in fair value included in earnings(1,055)235 (101)12 
Other changes43— — — 
Purchases, issuances, sales, repayments and settlements
Purchases24 — — — 
Issuances249 — 24 — 
Settlements and repayments— — (110)— 
Balance - end of period$2,757 $370 $1,124 $49 
Fair value measurement inputs and valuation techniques
The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities:
June 30, 2021December 31, 2020
RangeWeighted AverageRangeWeighted Average
Level 3 InputsMinMaxMinMax
Forward MSR
Discount rate9.5 %13.8 %11.0 %8.2 %12.0 %9.4 %
Prepayment speed12.4 %18.8 %13.6 %14.2 %21.3 %15.4 %
Cost to service per loan(1)
$63 $223 $86 $66 $257 $98 
Average life(2)
5.5 years5.0 years
IRLCs
Value of servicing (basis points per loan)(0.7)2.3 1.4 (1.0)2.2 1.2 
Excess spread financing
Discount rate9.5 %13.8 %11.2 %9.9 %15.7 %12.2 %
Prepayment speed12.6 %15.3 %13.5 %13.9 %15.0 %14.4 %
Recapture rate13.7 %29.5 %21.3 %17.7 %24.2 %19.5 %
Average life(2)
5.4 years5.1 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates5.3 %8.2 %6.9 %4.6 %8.5 %7.5 %
Annual advance recovery rates18.9 %22.7 %20.8 %18.3 %22.0 %19.9 %

(1)Presented in whole dollar amounts.
(2)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:
 June 30, 2021
 Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$716 $716 $— $— 
Restricted cash113 113 — — 
Advances and other receivables, net837 — — 837 
Loans subject to repurchase from Ginnie Mae4,057 — 4,057 — 
Financial liabilities
Unsecured senior notes, net2,075 2,117 — — 
Advance and warehouse facilities, net7,310 — 7,317 — 
Liability for loans subject to repurchase from Ginnie Mae4,057 — 4,057 — 
December 31, 2020
Carrying
Amount		Fair Value
Financial InstrumentsLevel 1Level 2Level 3
Financial assets
Cash and cash equivalents$695 $695 $— $— 
Restricted cash135 135 — — 
Advances and other receivables, net940 — — 940 
Loans subject to repurchase from Ginnie Mae6,159 — 6,159 — 
Financial liabilities
Unsecured senior notes, net2,074 2,208 — — 
Advance and warehouse facilities, net6,258 — 6,269 — 
Liability for loans subject to repurchase from Ginnie Mae6,159 — 6,159 — 
v3.21.2
Segment Information (Tables)
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Schedule of segment reporting information
The following tables present financial information by segment:
 Three Months Ended June 30, 2021
Financial Information by SegmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(92)$45 $39 $— $(8)
Net gain on mortgage loans held for sale197 385 — — 582 
Total revenues105 430 39 — 574 
Total expenses121 226 45 33 425 
Interest income25 26 — — 51 
Interest expense(65)(23)— (31)(119)
Other income, net— — 486 — 486 
Total other (expenses) income, net(40)3 486 (31)418 
(Loss) Income from continuing operations before income tax (benefit) expense$(56)$207 $480 $(64)$567 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$7 $6 $3 $— $16 
Total assets $15,973 $4,582 $573 $2,180 $23,308 

Three Months Ended June 30, 2020
Financial Information by SegmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(126)$21 $106 $(1)$— 
Net gain on mortgage loans held for sale45 573 — — 618 
Total revenues(81)594 106 (1)618 
Total expenses102 167 95 34 398 
Interest income3 19 — — 22 
Interest expense(67)(13)— (47)(127)
Other income (expense), net— — 1 (1)— 
Total other (expenses) income, net(64)6 1 (48)(105)
(Loss) income from continuing operations before income tax (benefit) expense$(247)$433 $12 $(83)$115 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$4 $4 $3 $6 $17 
Total assets $10,736 $3,592 $135 $2,837 $17,300 
Six Months Ended June 30, 2021
Financial information by segmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$349 $88 $135 $— $572 
Net gain on mortgage loans held for sale324 937 — — 1,261 
Total revenues673 1,025 135 — 1,833 
Total expenses231 457 132 59 879 
Interest income48 49 — — 97 
Interest expense(136)(48)— (61)(245)
Other income, net— — 486 — 486 
Total other (expenses) income, net(88)1 486 (61)338 
Income (loss) from continuing operations before income tax (benefit) expense$354 $569 $489 $(120)$1,292 
Depreciation and amortization for property and equipment and intangible assets from continuing operations$12 $10 $6 $3 $31 
Total assets $15,973 $4,582 $573 $2,180 $23,308 

Six Months Ended June 30, 2020
Financial information by segmentServicingOriginationsXomeCorporate/OtherConsolidated
Revenues
Service related, net$(320)$41 $212 $— $(67)
Net gain on mortgage loans held for sale79 870 — — 949 
Total revenues(241)911 212 — 882 
Total expenses231 333 191 67 822 
Interest income43 53 — 1 97 
Interest expense(127)(40)— (99)(266)
Other income (expense), net— — 2 (1)1 
Total other (expenses) income, net(84)13 2 (99)(168)
(Loss) income from continuing operations before income tax expense (benefit)$(556)$591 $23 $(166)$(108)
Depreciation and amortization for property and equipment and intangible assets from continuing operations$8 $7 $6 $15 $36 
Total assets $10,736 $3,592 $135 $2,837 $17,300 
v3.21.2
Nature of Business and Basis of Presentation - Additional Information (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - Title Business - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2021
Mar. 12, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Purchase price     $ 500
Cash received from disposal     $ 450
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal $ 487    
Disposal Group, Not Discontinued Operation, Transaction Cost $ 2 $ 5  
Mr. Cooper Group Inc. | Blend Labs, Inc.      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Ownership interest percentage     9.90%
v3.21.2
Discontinued Operations and Disposal Groups (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Total assets of discontinues operations $ 4,935   $ 4,935   $ 5,347
Liabilities of discontinued operations 4,790   4,790   5,203
Net income (loss) from discontinued operations 12 $ (4) 14 $ (16)  
Discontinued Operation, Loan Asset Retained 112   112    
Discontinued Operation, Loan Liability Retained 88   88    
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Champion Mortgage [Member]          
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]          
Restricted cash 77   77   83
Reverse mortgage interests, net 4,910   4,910   5,253
Other 9   9   11
Loss recognized on classification as discontinued operations (61)   (61)   0
Total assets of discontinues operations 4,935   4,935   5,347
Advances and warehouse facilities, net 525   525   505
Payables and other liabilities 224   224   233
Mortgage servicing liabilities 42   42   41
Other nonrecourse debt, net 3,999   3,999   4,424
Liabilities of discontinued operations 4,790   4,790   $ 5,203
Revenue - service related, net 1 12 9 26  
Salaries, wages and benefits expense (8) (10) (16) (22)  
General and administrative expense 71 (10) 64 (18)  
Interest income 43 53 87 96  
Interest expense (30) (50) (64) (103)  
Loss on classification as discontinued operations (61) 0 (61) 0  
Income (loss) from discontinued operations before income tax expense (benefit) 16 (5) 19 (21)  
Less: Income tax expense (benefit) 4 (1) 5 (5)  
Net income (loss) from discontinued operations $ 12 $ (4) $ 14 $ (16)  
v3.21.2
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Mortgage Servicing Rights [Line Items]    
Excess spread financing - fair value $ 867 $ 934
Mortgage servicing rights financing - fair value 21 33
MSR related liabilities - nonrecourse at fair value 888 967
Mortgage servicing rights    
Mortgage Servicing Rights [Line Items]    
Forward MSRs - fair value $ 3,307 $ 2,703
v3.21.2
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - Mortgage servicing rights - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Servicing Asset at Fair Value, Amount [Roll Forward]    
Fair value - beginning of period $ 2,703 $ 3,496
Servicing retained from mortgage loans sold 554 249
Purchases of servicing rights 218 24
Sales of servicing assets (12) 0
Changes in valuation inputs or assumptions used in the valuation model 270 (717)
Changes in valuation due to amortization (460) (338)
Other changes 34 43
Fair value - end of period $ 3,307 $ 2,757
v3.21.2
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Servicing Asset at Amortized Cost [Line Items]      
Excess spread financing - fair value $ 867 $ 934  
Mortgage servicing rights financing - fair value 21 $ 33  
Forward MSRs Sold      
Servicing Asset at Amortized Cost [Line Items]      
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement 1,076   $ 71
Forward MSRs Sold, Subservicing Retained      
Servicing Asset at Amortized Cost [Line Items]      
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement $ 1,008   $ 0
v3.21.2
Mortgage Servicing Rights and Related Liabilities - UPB related to owned MSRs (Details) - Mortgage servicing rights - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Owned Service Loans [Line Items]    
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement $ 287,455 $ 271,189
Fair Value 3,307 2,703
Agency    
Owned Service Loans [Line Items]    
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement 248,799 227,136
Fair Value 2,955 2,305
Non-agency    
Owned Service Loans [Line Items]    
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement 38,656 44,053
Fair Value $ 352 $ 398
v3.21.2
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change $ (139) $ (181)
Total prepayment speeds, 20% Adverse Change (268) (347)
Cost to Service per Loan, 10% Adverse Change (43) (45)
Cost to Service per Loan, 20% Adverse Change (87) (89)
Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Total prepayment speeds, 10% Adverse Change 34 41
Total prepayment speeds, 20% Adverse Change 70 84
100 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate (112) (100)
100 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate 30 30
200 bps Adverse Change | Mortgage servicing rights    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate (216) (192)
200 bps Adverse Change | Excess spread financing    
Excess Spread Financing - Hypothetical Sensitivities    
Discount Rate $ 61 $ 62
v3.21.2
Mortgage Servicing Rights and Related Liabilities - Servicing Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Transfers and Servicing [Abstract]        
Contractually specified servicing fees(1) $ 275 $ 285 $ 551 $ 582
Other service-related income(1) 214 62 359 111
Incentive and modification income(1) 14 8 28 18
Late fees(1) 16 20 34 47
Mark-to-market adjustments(2) (180) (261) 174 (644)
Counterparty revenue share(3) (76) (88) (159) (164)
Amortization, net of accretion(4) (158) (107) (314) (191)
Total revenues - Servicing 105 (81) 673 (241)
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans 8 3 20 13
Servicing fee income accretion expense $ 70 $ 79 $ 146 $ 147
v3.21.2
Advances and Other Receivables - Schedule of Accounts Receivable (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Receivables [Abstract]            
Servicing advances, net of $26 and $72 purchase discount, respectively $ 856   $ 975      
Receivables from agencies, investors and prior servicers, net of $20 and $21 purchase discount, respectively 172   173      
Reserves (191)   (208)      
Total advances and other receivables, net 837   940      
Servicing advances discount 26 $ 63 72 $ 117 $ 125 $ 131
Receivables discount $ 20 $ 20 $ 21 $ 21 $ 21 $ 21
v3.21.2
Advances and Other Receivables - Advances and Other Receivables Roll Forward (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Advances And Other Receivables, Reserves [Roll Forward]        
Balance - beginning of period $ 206 $ 193 $ 208 $ 168
Provision and other additions(1) 26 29 41 59
Write-offs (41) (6) (58) (11)
Balance - end of period 191 216 191 216
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans $ 8 $ 3 $ 20 $ 13
v3.21.2
Advances and Other Receivables - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Financing receivable, allowance for credit loss $ 42 $ 31 $ 42 $ 31
Financial instruments collection period     39 months  
Advances and other receivables reserve        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Provision for credit loss 3 8 $ 4 14
Financing receivable, allowance for credit loss 25 14 25 14
Purchase Discount        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Financing receivable, allowance for credit loss $ 17 $ 17 $ 17 $ 17
v3.21.2
Advances and Other Receivables - Purchase Discount (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Servicing Advances        
Balance - beginning of period $ 63 $ 125 $ 72 $ 131
Utilization of purchase discounts (37) (8) (46) (14)
Balance - end of period 26 117 26 117
Receivables from Agencies, Investors and Prior Servicers        
Balance - beginning of period 20 21 20 21
Utilization of purchase discounts 0 0 (1) 0
Balance - end of period $ 20 $ 21 $ 21 $ 21
v3.21.2
Mortgage Loans Held for Sale - Mortgage Loans Held for Sale (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Mortgage loans held for sale – UPB $ 6,706 $ 5,438
Mark-to-market adjustment(1) 255 282
Total mortgage loans held for sale 6,961 5,720
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance 1,178 64
Fair Value, Mortgage Loans Held for Sale non-accrual status 1,216 54
Ginnie mae repurchased loans    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance $ 1,149 $ 48
v3.21.2
Mortgage Loans Held for Sale - Reconciliation to Cash Flow (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]    
Balance - beginning of period $ 5,720 $ 4,077
Loans sold (52,128) (26,149)
Mortgage loans originated and purchased, net of fees 47,560 23,110
Repurchase of loans out of Ginnie Mae securitizations 5,812 2,092
Net change in unrealized (loss) gain on retained loans held for sale (5) 42
Net transfers of mortgage loans held for sale(1) 2 7
Balance - end of period $ 6,961 $ 3,179
v3.21.2
Mortgage Loans Held for Sale - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Mortgage Loans Held for Sale and Investment [Abstract]      
Sale of mortgage loans held for sale $ 52,923 $ 26,606  
Gain on sale of mortgage loans held for sale 795 $ 457  
Mortgage loans held for sale in foreclosure $ 19   $ 20
v3.21.2
Loans Subject to Repurchase from Ginnie Mae (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans subject to repurchase from Ginnie Mae $ 4,057 $ 6,159
Financial Asset, Equal to or Greater than 90 Days Past Due | Payment Deferral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans subject to repurchase from Ginnie Mae $ 3,825 $ 5,879
v3.21.2
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill $ 120 $ 120
Intangible assets $ 22 $ 31
v3.21.2
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Assets    
Derivatives, Fair Value [Line Items]    
Outstanding Notional $ 18,523 $ 12,295
Fair Value 241 391
Gains/(Losses) (248) 238
Assets | Loan sale commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 1,514 1,673
Fair Value 39 81
Gains/(Losses) (63) 48
Assets | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 6,730 9,227
Fair Value 204 370
Gains/(Losses) (210) 235
Assets | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 1,984 1,823
Fair Value 10 18
Gains/(Losses) (28) 6
Assets | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 9,749 1,239
Fair Value 27 3
Gains/(Losses) (10) (3)
Assets | Swap futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 60  
Fair Value 0  
Gains/(Losses) 0  
Assets | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional   6
Fair Value   0
Gains/(Losses)   0
Liabilities    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 12,464 10,179
Derivative financial instruments 26 50
Gains/(Losses) (131) 35
Liabilities | IRLCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 9  
Derivative financial instruments 0  
Gains/(Losses) 0  
Liabilities | LPCs    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 708 55
Derivative financial instruments 1 0
Gains/(Losses) 0 (2)
Liabilities | Forward MBS trades    
Derivatives, Fair Value [Line Items]    
Outstanding Notional 11,747 10,119
Derivative financial instruments 25 50
Gains/(Losses) $ (131) 37
Liabilities | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional   5
Derivative financial instruments   0
Gains/(Losses)   $ 0
v3.21.2
Derivative Financial Instruments - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Other assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Collateral deposit assets (liabilities) $ 2 $ 61
v3.21.2
Indebtedness - Advance and Warehouse Facilities Summary (Details) - USD ($)
 6 Months Ended
Jun. 30, 2021
Jul. 01, 2021
Dec. 31, 2020
Debt Instrument [Line Items]      
Advance and warehouse facilities, net $ 7,310,000,000   $ 6,258,000,000
Servicing | MSR      
Debt Instrument [Line Items]      
Collateral Pledged 1,907,000,000   1,217,000,000
Advance and warehouse facilities, net 270,000,000   270,000,000
Originations | Mortgage loans held for sale      
Debt Instrument [Line Items]      
Collateral Pledged 6,741,000,000   5,447,000,000
Advance and warehouse facilities, net 6,470,000,000   5,330,000,000
Advance Facilities | Servicing | Loans payable | $875 advance facility      
Debt Instrument [Line Items]      
Capacity Amount 875,000,000    
Debt outstanding, gross 143,000,000   168,000,000
Collateral Pledged $ 168,000,000   195,000,000
Advance Facilities | Servicing | Loans payable | $875 advance facility | CP rate | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Advance Facilities | Servicing | Loans payable | $875 advance facility | CP rate | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 6.50%    
Advance Facilities | Servicing | Loans payable | $425 advance facility      
Debt Instrument [Line Items]      
Capacity Amount $ 425,000,000    
Debt outstanding, gross 167,000,000   192,000,000
Collateral Pledged $ 219,000,000   246,000,000
Advance Facilities | Servicing | Loans payable | $425 advance facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.70%    
Advance Facilities | Servicing | Loans payable | $425 advance facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 6.50%    
Advance Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross $ 577,000,000   669,000,000
Collateral Pledged 720,000,000   844,000,000
Advance Facilities | Servicing | Notes payable to banks | $100 advance facility      
Debt Instrument [Line Items]      
Capacity Amount 100,000,000    
Debt outstanding, gross 66,000,000   74,000,000
Collateral Pledged $ 69,000,000   98,000,000
Advance Facilities | Servicing | Notes payable to banks | $100 advance facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.50%    
Warehouse Facilities | Originations | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross $ 6,470,000,000   5,330,000,000
Collateral Pledged 6,741,000,000   5,447,000,000
Warehouse Facilities | Originations | Notes payable to banks | $2,000 warehouse facility(3)      
Debt Instrument [Line Items]      
Capacity Amount 2,000,000,000 $ 4,000,000,000  
Debt outstanding, gross 1,968,000,000   339,000,000
Collateral Pledged $ 2,124,000,000   392,000,000
Warehouse Facilities | Originations | Notes payable to banks | $2,000 warehouse facility(3) | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.50%    
Warehouse Facilities | Originations | Notes payable to banks | $2,000 warehouse facility(3) | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 1,500,000,000    
Debt outstanding, gross 607,000,000   1,081,000,000
Collateral Pledged $ 584,000,000   1,028,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 1.50%    
Warehouse Facilities | Originations | Notes payable to banks | $2,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 2,500,000,000   1,500,000,000
Debt outstanding, gross 1,374,000,000   1,003,000,000
Collateral Pledged $ 1,424,000,000   1,037,000,000
Warehouse Facilities | Originations | Notes payable to banks | $2,500 warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.60%    
Warehouse Facilities | Originations | Notes payable to banks | $2,500 warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 1.90%    
Warehouse Facilities | Originations | Notes payable to banks | $1,350 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 1,350,000,000    
Debt outstanding, gross 1,018,000,000   951,000,000
Collateral Pledged $ 1,065,000,000   977,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,350 warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $1,350 warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 3.90%    
Warehouse Facilities | Originations | Notes payable to banks | $1,200 warehouse facility(5)      
Debt Instrument [Line Items]      
Capacity Amount $ 1,200,000,000    
Debt outstanding, gross 293,000,000   586,000,000
Collateral Pledged $ 303,000,000   607,000,000
Warehouse Facilities | Originations | Notes payable to banks | $1,200 warehouse facility(5) | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $1,200 warehouse facility(5) | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 3.00%    
Warehouse Facilities | Originations | Notes payable to banks | $750 million warehouse      
Debt Instrument [Line Items]      
Capacity Amount $ 750,000,000    
Debt outstanding, gross 303,000,000   562,000,000
Collateral Pledged $ 313,000,000   574,000,000
Warehouse Facilities | Originations | Notes payable to banks | $750 million warehouse | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.70%    
Warehouse Facilities | Originations | Notes payable to banks | $750 million warehouse | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.80%    
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 750,000,000    
Debt outstanding, gross 400,000,000   477,000,000
Collateral Pledged $ 412,000,000   492,000,000
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.30%    
Warehouse Facilities | Originations | Notes payable to banks | $600 warehouse facility(5)      
Debt Instrument [Line Items]      
Capacity Amount $ 600,000,000    
Debt outstanding, gross 77,000,000   0
Collateral Pledged $ 78,000,000   0
Warehouse Facilities | Originations | Notes payable to banks | $600 warehouse facility(5) | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.50%    
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(5)      
Debt Instrument [Line Items]      
Capacity Amount $ 500,000,000    
Debt outstanding, gross 146,000,000   0
Collateral Pledged $ 145,000,000   0
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(5) | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.50%    
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(5) | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 4.00%    
Warehouse Facilities | Originations | Notes payable to banks | $300 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 300,000,000    
Debt outstanding, gross 93,000,000   163,000,000
Collateral Pledged $ 94,000,000   164,000,000
Warehouse Facilities | Originations | Notes payable to banks | $300 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 1.40%    
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 200,000,000    
Debt outstanding, gross 180,000,000   131,000,000
Collateral Pledged $ 184,000,000   134,000,000
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $50 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 50,000,000    
Debt outstanding, gross 11,000,000   37,000,000
Collateral Pledged $ 15,000,000   42,000,000
Warehouse Facilities | Originations | Notes payable to banks | $50 warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.80%    
Warehouse Facilities | Originations | Notes payable to banks | $50 warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 4.80%    
Warehouse Facilities | Originations | Notes payable to banks | $30 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 30,000,000   40,000,000
Debt outstanding, gross 0   0
Collateral Pledged $ 0   0
Warehouse Facilities | Originations | Notes payable to banks | $30 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.30%    
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 1,500,000,000    
Warehouse Facilities | Originations | Notes payable to banks | $500 Million Warehouse Facility Due June 2023      
Debt Instrument [Line Items]      
Capacity Amount 500,000,000    
Debt outstanding, gross 0   0
Collateral Pledged $ 0   0
Warehouse Facilities | Originations | Notes payable to banks | $500 Million Warehouse Facility Due June 2023 | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.50%    
Warehouse Facilities | Originations | Notes payable to banks | $500 Million Warehouse Facility Due June 2023 | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 3.00%    
MSR Facilities | Servicing | Notes payable to banks      
Debt Instrument [Line Items]      
Debt outstanding, gross $ 270,000,000   270,000,000
Collateral Pledged 1,907,000,000   1,217,000,000
MSR Facilities | Servicing | Notes payable to banks | $200 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount 200,000,000    
Debt outstanding, gross 0   0
Collateral Pledged $ 517,000,000   247,000,000
MSR Facilities | Servicing | Notes payable to banks | $200 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.50%    
MSR Facilities | Servicing | Notes payable to banks | $150 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 150,000,000    
Debt outstanding, gross 0   0
Collateral Pledged $ 453,000,000   228,000,000
MSR Facilities | Servicing | Notes payable to banks | $150 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.80%    
MSR Facilities | Servicing | Notes payable to banks | $50 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 50,000,000    
Debt outstanding, gross 10,000,000   10,000,000
Collateral Pledged $ 72,000,000   74,000,000
MSR Facilities | Servicing | Notes payable to banks | $50 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.30%    
MSR Facilities | Originations | Notes payable to banks | $900 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 900,000,000    
Advance Financing, Internally Allocated | Servicing | Loans payable | $640 advance facility      
Debt Instrument [Line Items]      
Capacity Amount 640,000,000    
Debt outstanding, gross 201,000,000   235,000,000
Collateral Pledged $ 264,000,000   305,000,000
Advance Financing, Internally Allocated | Servicing | Loans payable | $640 advance facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.90%    
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $260 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 260,000,000    
Debt outstanding, gross 260,000,000   260,000,000
Collateral Pledged $ 865,000,000   668,000,000
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $260 warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.90%    
MSR Financing, Internally Allocated | Originations | Notes payable to banks | $260 warehouse facility      
Debt Instrument [Line Items]      
Capacity Amount $ 260,000,000    
Advance, Warehouse and MSR Facilities      
Debt Instrument [Line Items]      
Debt outstanding, gross 7,317,000,000   6,269,000,000
Collateral Pledged 9,368,000,000   7,508,000,000
Unamortized debt issuance costs (7,000,000)   (11,000,000)
Advance and warehouse facilities, net $ 7,310,000,000   $ 6,258,000,000
v3.21.2
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($)
Jun. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Unsecured senior notes, net $ 2,075,000,000 $ 2,074,000,000
Unsecured Senior Notes    
Debt Instrument [Line Items]    
Unsecured senior notes principal amount 2,100,000,000 2,100,000,000
Unamortized debt issuance costs (25,000,000) (26,000,000)
Unsecured senior notes, net 2,075,000,000 2,074,000,000
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%  
v3.21.2
Indebtedness - Narrative (Details) - Unsecured Senior Notes - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Debt Instrument [Line Items]      
Maximum percentage redeemable on unsecured debt   40.00%  
Repayments of debt $ 0 $ 0 $ 100
Amount of principal amount outstanding repaid $ 0 $ 0 598
Gain on redemption of unsecured senior notes     $ 1
v3.21.2
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
2021 through 2025 $ 0  
Thereafter 2,100  
Total unsecured senior notes principal amount $ 2,100 $ 2,100
v3.21.2
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - Residential mortgage - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings $ 431 $ 488
Liabilities - transfers accounted for as secured borrowings 310 359
Restricted cash    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets - transfers accounted for as secured borrowings 44 47
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 387 441
Advance facilities(1)    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings 310 358
Payables and other liabilities    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities - transfers accounted for as secured borrowings $ 0 $ 1
v3.21.2
Securitizations and Financings - Securitization Trusts (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Variable Interest Entities and Securitizations [Abstract]    
Total collateral balances - UPB $ 1,230 $ 1,326
Total certificate balances 1,229 1,329
Financial Asset, Past Due    
Financing Receivable, Past Due [Line Items]    
Unconsolidated securitization trusts $ 141 $ 154
v3.21.2
Earnings Per Share - Narrative (Details)
$ / shares in Units, shares in Thousands, $ in Millions
Mar. 26, 2021
USD ($)
$ / shares
shares
Earnings Per Share [Abstract]  
Shares repurchased (in shares) | shares 3,700
Value of shares repurchased | $ $ 119
Value of shares repurchased (in dollars per share) | $ / shares $ 32.25
v3.21.2
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 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Earnings Per Share [Abstract]        
Net income (loss) from continuing operations $ 427 $ 77 $ 986 $ (82)
Less: Net loss attributable to non-controlling interests 0 0 0 (3)
Less: Undistributed earnings from continuing operations attributable to participating stockholders 4 1 9 0
Net income (loss) from continuing operations attributable to Mr. Cooper common stockholders 423 76 977 (79)
Net income (loss) from discontinued operations 12 (4) 14 (16)
Less: Undistributed earnings from discontinued operations attributable to participating stockholders 0 0 0 0
Net income (loss) from discontinued operations attributable to Mr. Cooper common stockholders 12 (4) 14 (16)
Net income 439 73 1,000 (98)
Less: Net loss attributable to non-controlling interests 0 0 0 (3)
Net income (loss) attributable to Mr. Cooper 439 73 1,000 (95)
Less: Undistributed earnings attributable to participating stockholders 4 1 9 0
Net income (loss) attributable to common stockholders $ 435 $ 72 $ 991 $ (95)
Earnings Per Share, Basic [Abstract]        
Income (Loss) from Continuing Operations, Per Basic Share $ 4.91 $ 0.82 $ 11.13 $ (0.86)
Income (Loss) from Continuing Operations, Per Diluted Share 4.72 0.81 10.65 (0.86)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share 0.14 (0.04) 0.16 (0.18)
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share 0.13 (0.04) 0.15 (0.18)
Basic (in dollars per share) 5.05 0.78 11.29 (1.04)
Diluted (in dollars per share) $ 4.85 $ 0.77 $ 10.80 $ (1.04)
Weighted average shares of common stock outstanding (in thousands):        
Basic (in shares) 86,142 91,997 87,791 91,691
Dilutive effect of stock awards (in shares) 2,664 176 3,123 0
Dilutive effect of participating securities (in shares) 839 839 839 0
Diluted (in shares) 89,645 93,012 91,753 91,691
v3.21.2
Income Taxes (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Income Tax Disclosure [Abstract]        
Effective tax rate 24.80% 33.00% 23.70% 24.20%
v3.21.2
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Assets    
Mortgage loans held for sale $ 6,961 $ 5,720
Liabilities    
Mortgage servicing rights financing 21 33
Recurring Fair Value Measurements    
Assets    
Mortgage loans held for sale 6,961 5,720
Forward mortgage servicing rights 3,307 2,703
Liabilities    
Mortgage servicing rights financing 21 33
Excess spread financing 867 934
Recurring Fair Value Measurements | IRLCs    
Assets    
Derivative asset, fair value 204 414
Recurring Fair Value Measurements | Forward MBS trades    
Assets    
Derivative asset, fair value 27 37
Liabilities    
Derivative financial instruments 25 156
Recurring Fair Value Measurements | LPCs    
Assets    
Derivative asset, fair value 10 38
Liabilities    
Derivative financial instruments 1 1
Recurring Fair Value Measurements | Level 1    
Assets    
Mortgage loans held for sale 0 0
Forward mortgage servicing rights 0 0
Liabilities    
Mortgage servicing rights financing 0 0
Excess spread financing 0 0
Recurring Fair Value Measurements | Level 1 | IRLCs    
Assets    
Derivative asset, fair value 0 0
Recurring Fair Value Measurements | Level 1 | Forward MBS trades    
Assets    
Derivative asset, fair value 0 0
Liabilities    
Derivative financial instruments 0 0
Recurring Fair Value Measurements | Level 1 | LPCs    
Assets    
Derivative asset, fair value 0 0
Liabilities    
Derivative financial instruments 0 0
Recurring Fair Value Measurements | Level 2    
Assets    
Mortgage loans held for sale 6,961 5,720
Forward mortgage servicing rights 0 0
Liabilities    
Mortgage servicing rights financing 0 0
Excess spread financing 0 0
Recurring Fair Value Measurements | Level 2 | IRLCs    
Assets    
Derivative asset, fair value 0 0
Recurring Fair Value Measurements | Level 2 | Forward MBS trades    
Assets    
Derivative asset, fair value 27 37
Liabilities    
Derivative financial instruments 25 156
Recurring Fair Value Measurements | Level 2 | LPCs    
Assets    
Derivative asset, fair value 0 0
Liabilities    
Derivative financial instruments 0 0
Recurring Fair Value Measurements | Level 3    
Assets    
Mortgage loans held for sale 0 0
Forward mortgage servicing rights 3,307 2,703
Liabilities    
Mortgage servicing rights financing 21 33
Excess spread financing 867 934
Recurring Fair Value Measurements | Level 3 | IRLCs    
Assets    
Derivative asset, fair value 204 414
Recurring Fair Value Measurements | Level 3 | Forward MBS trades    
Assets    
Derivative asset, fair value 0 0
Liabilities    
Derivative financial instruments 0 0
Recurring Fair Value Measurements | Level 3 | LPCs    
Assets    
Derivative asset, fair value 10 38
Liabilities    
Derivative financial instruments $ 1 $ 1
v3.21.2
Fair Value Measurements - Level 3 Reconciliation (Details) - Recurring Fair Value Measurements - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Excess spread financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period $ 934 $ 1,311
Changes in fair value included in earnings 14 (101)
Other changes 0 0
Purchases 0 0
Issuances 0 24
Sales 0  
Settlements and repayments (81) (110)
Balance - end of period 867 1,124
Mortgage servicing rights financing    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 33 37
Changes in fair value included in earnings (12) 12
Other changes 0 0
Purchases 0 0
Issuances 0 0
Sales 0  
Settlements and repayments 0 0
Balance - end of period 21 49
Forward mortgage servicing rights    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 2,703 3,496
Changes in fair value included in earnings (190) (1,055)
Other changes 34 43
Purchases 218 24
Issuances 554 249
Sales (12)  
Settlements and repayments 0 0
Balance - end of period 3,307 2,757
IRLCs    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 414 135
Changes in fair value included in earnings (210) 235
Other changes 0 0
Purchases 0 0
Issuances 0 0
Sales 0  
Settlements and repayments 0 0
Balance - end of period 204 $ 370
LPCs    
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Balance - beginning of period 38  
Changes in fair value included in earnings (28)  
Other changes 0  
Purchases 0  
Issuances 0  
Sales 0  
Settlements and repayments 0  
Balance - end of period $ 10  
v3.21.2
Fair Value Measurements - Unobservable Inputs (Details) - USD ($)
 6 Months Ended 12 Months Ended
Jun. 30, 2021
Dec. 31, 2020
Forward MSR    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted average life 5 years 6 months 5 years
Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Weighted average life 5 years 4 months 24 days 5 years 1 month 6 days
Minimum | Forward MSR    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 9.50% 8.20%
Prepayment speed 12.40% 14.20%
Cost to service per loan(1) $ 63 $ 66
Minimum | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (basis points per loan) (0.00007) (0.00010)
Minimum | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 9.50% 9.90%
Prepayment speed 12.60% 13.90%
Recapture rate 13.70% 17.70%
Minimum | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 5.30% 4.60%
Annual advance recovery rates 18.90% 18.30%
Maximum | Forward MSR    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 13.80% 12.00%
Prepayment speed 18.80% 21.30%
Cost to service per loan(1) $ 223 $ 257
Maximum | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (basis points per loan) 0.00023 0.00022
Maximum | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 13.80% 15.70%
Prepayment speed 15.30% 15.00%
Recapture rate 29.50% 24.20%
Maximum | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 8.20% 8.50%
Annual advance recovery rates 22.70% 22.00%
Weighted-average | Forward MSR    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 11.00% 9.40%
Prepayment speed 13.60% 15.40%
Cost to service per loan(1) $ 86 $ 98
Weighted-average | IRLCs    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Value of servicing (basis points per loan) 0.00014 0.00012
Weighted-average | Excess spread financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Discount rate 11.20% 12.20%
Prepayment speed 13.50% 14.40%
Recapture rate 21.30% 19.50%
Weighted-average | Mortgage servicing rights financing    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Advance financing and counterparty fee rates 6.90% 7.50%
Annual advance recovery rates 20.80% 19.90%
v3.21.2
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($)
$ in Millions
Jun. 30, 2021
Dec. 31, 2020
Jun. 30, 2020
Financial assets      
Restricted cash $ 113 $ 135 $ 178
Loans subject to repurchase from Ginnie Mae 4,057 6,159  
Financial liabilities      
Unsecured senior notes, net 2,075 2,074  
Advance and warehouse facilities, net 7,310 6,258  
Recurring Fair Value Measurements      
Financial assets      
Cash and cash equivalents 716 695  
Restricted cash 113 135  
Loans subject to repurchase from Ginnie Mae 4,057 6,159  
Financial liabilities      
Unsecured senior notes, net 2,075 2,074  
Advance and warehouse facilities, net 7,310 6,258  
Liability for loans subject to repurchase from Ginnie Mae 4,057 6,159  
Recurring Fair Value Measurements | Level 1      
Financial assets      
Cash and cash equivalents 716 695  
Restricted cash 113 135  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 2,117 2,208  
Advance and warehouse facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae 0 0  
Recurring Fair Value Measurements | Level 2      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Loans subject to repurchase from Ginnie Mae 4,057 6,159  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance and warehouse facilities, net 7,317 6,269  
Liability for loans subject to repurchase from Ginnie Mae 4,057 6,159  
Recurring Fair Value Measurements | Level 3      
Financial assets      
Cash and cash equivalents 0 0  
Restricted cash 0 0  
Loans subject to repurchase from Ginnie Mae 0 0  
Financial liabilities      
Unsecured senior notes, net 0 0  
Advance and warehouse facilities, net 0 0  
Liability for loans subject to repurchase from Ginnie Mae 0 0  
Nonrecurring Fair Value Measurements      
Financial assets      
Advances and other receivables, net 837 940  
Nonrecurring Fair Value Measurements | Level 1      
Financial assets      
Advances and other receivables, net 0 0  
Nonrecurring Fair Value Measurements | Level 2      
Financial assets      
Advances and other receivables, net 0 0  
Nonrecurring Fair Value Measurements | Level 3      
Financial assets      
Advances and other receivables, net $ 837 $ 940  
v3.21.2
Commitments and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Loss Contingencies [Line Items]        
Legal fees $ 8 $ 12 $ 21 $ 27
Contractual Obligation $ 83   $ 83  
Contractual Obligation, Term of Contract 5 years   5 years  
Litigation and regulatory matters | Minimum        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 2   $ 2  
Litigation and regulatory matters | Maximum        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 17   $ 17  
v3.21.2
Segment Information - Financial Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2021
Jun. 30, 2020
Jun. 30, 2021
Jun. 30, 2020
Dec. 31, 2020
Revenues:          
Service related, net $ (8) $ 0 $ 572 $ (67)  
Net gain on mortgage loans held for sale 582 618 1,261 949  
Total revenues 574 618 1,833 882  
Total expenses 425 398 879 822  
Other income (expenses)          
Interest income 51 22 97 97  
Interest expense (119) (127) (245) (266)  
Other income (expense), net 486 0 486 1  
Total other income (expenses), net 418 (105) 338 (168)  
Income (loss) from continuing operations before income tax expense (benefit) 567 115 1,292 (108)  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 16 17 31 36  
Total assets 23,308 17,300 23,308 17,300 $ 24,165
Total assets of discontinues operations 4,935   4,935   5,347
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Title Business          
Other income (expenses)          
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal 487        
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Champion Mortgage [Member]          
Other income (expenses)          
Total assets of discontinues operations 4,935   4,935   $ 5,347
Operating Segments | Servicing          
Revenues:          
Service related, net (92) (126) 349 (320)  
Net gain on mortgage loans held for sale 197 45 324 79  
Total revenues 105 (81) 673 (241)  
Total expenses 121 102 231 231  
Other income (expenses)          
Interest income 25 3 48 43  
Interest expense (65) (67) (136) (127)  
Other income (expense), net 0 0 0 0  
Total other income (expenses), net (40) (64) (88) (84)  
Income (loss) from continuing operations before income tax expense (benefit) (56) (247) 354 (556)  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 7 4 12 8  
Total assets 15,973 10,736 15,973 10,736  
Operating Segments | Originations          
Revenues:          
Service related, net 45 21 88 41  
Net gain on mortgage loans held for sale 385 573 937 870  
Total revenues 430 594 1,025 911  
Total expenses 226 167 457 333  
Other income (expenses)          
Interest income 26 19 49 53  
Interest expense (23) (13) (48) (40)  
Other income (expense), net 0 0 0 0  
Total other income (expenses), net 3 6 1 13  
Income (loss) from continuing operations before income tax expense (benefit) 207 433 569 591  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 6 4 10 7  
Total assets 4,582 3,592 4,582 3,592  
Operating Segments | Xome          
Revenues:          
Service related, net 39 106 135 212  
Net gain on mortgage loans held for sale 0 0 0 0  
Total revenues 39 106 135 212  
Total expenses 45 95 132 191  
Other income (expenses)          
Interest income 0 0 0 0  
Interest expense 0 0 0 0  
Other income (expense), net 486 1 486 2  
Total other income (expenses), net 486 1 486 2  
Income (loss) from continuing operations before income tax expense (benefit) 480 12 489 23  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 3 3 6 6  
Total assets 573 135 573 135  
Corporate/Other          
Revenues:          
Service related, net 0 (1) 0 0  
Net gain on mortgage loans held for sale 0 0 0 0  
Total revenues 0 (1) 0 0  
Total expenses 33 34 59 67  
Other income (expenses)          
Interest income 0 0 0 1  
Interest expense (31) (47) (61) (99)  
Other income (expense), net 0 (1) 0 (1)  
Total other income (expenses), net (31) (48) (61) (99)  
Income (loss) from continuing operations before income tax expense (benefit) (64) (83) (120) (166)  
Depreciation and amortization for property and equipment and intangible assets from continuing operations 0 6 3 15  
Total assets $ 2,180 $ 2,837 $ 2,180 $ 2,837