Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
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Statement of Financial Position [Abstract] | ||
Advances and other receivables, reserves | $ 143,000,000 | $ 167,000,000 |
Accumulated depreciation | $ 116,000,000 | $ 122,000,000 |
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) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, liquidation preference | $ 0 | $ 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares, issued (in shares) | 93,200,000 | 93,200,000 |
Treasury stock (in shares) | 22,700,000 | 19,400,000 |
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Cash Flows [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ 530 | $ 731 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | 148 | 118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash within assets of discontinued operations | 0 | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash, cash equivalents, and restricted cash | [1] | $ 678 | $ 914 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nature of Business and Basis of Presentation |
9 Months Ended |
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Sep. 30, 2022 | |
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. The Company’s corporate website is located at www.mrcoopergroup.com. The Company has provided a glossary of terms, which defines certain industry-specific and other terms that are used herein, in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of this Form 10-Q. Basis of Presentation The interim condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Reports on Form 10-K for the year ended December 31, 2021. 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. Share-based compensation for restricted stock units granted to employees of the Company, consultants, and non-employee directors is based on the fair market value of the Company’s common stock on the grant date and recognized as an expense over the requisite employee service period on a straight-line basis using an accelerated attribution model. Shares for these awards are issued to employees from treasury stock. Basis of Consolidation The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. These investments are initially measured at cost and subsequently adjusted for Company’s proportionate share of earnings and losses in the investee. Investments in certain companies over which the Company does not exert significant influence are recorded at fair value, or at cost upon election of measurement alternative, at the end of each reporting period. Intercompany balances and transactions on consolidated entities have been eliminated. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, macro-economic uncertainty, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers and such differences could be material. Reclassifications Certain reclassifications have been made in the 2021 condensed consolidated statement of cash flows to conform to 2022 presentation. Such reclassifications were not material and did not affect total revenues or net income. Recent Accounting Guidance AdoptedThe Company did not adopt any accounting guidance during the nine months ended September 30, 2022 that had a material impact on its condensed consolidated financial statements or disclosures.
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Discontinued Operations and Disposal Groups |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure | 2. Dispositions Sale of Mortgage Servicing Platform On March 31, 2022, the Company completed the sale of certain assets and liabilities of its servicing and subservicing technology platform for performing and non-performing mortgage loans (the “Mortgage Servicing Platform”) to Sagent M&C, LLC (“Sagent”), in exchange for Class A-1 Common Units equal to 19.9% ownership of Sagent, and the sale of certain tangible personal property of the Company used in the conduct of the Mortgage Servicing Platform in exchange for $9.9 in cash, for total consideration of $260 (the “Sagent Transaction”). In connection with the Sagent Transaction, the Company recorded a gain of $223, which was included in “other income, net” within the condensed consolidated statements of operations, and recorded $4 transaction costs during the nine months ended September 30, 2022. No transaction costs were recorded in the three months ended September 30, 2022. The net carrying amount of assets and liabilities transferred in connection with the Sagent Transaction was $31 and reported under Corporate/Other. The Company accounted for the equity interest under the equity method of accounting, as the Company has the ability to exercise significant influence over Sagent’s operating and financial decisions but does not own a majority equity interest or otherwise control the respective entity. Under the equity method of accounting, the investment is initially stated at cost and subsequently adjusted for additional investments and the Company’s proportionate share of Sagent’s earnings or losses and distributions. The initial cost of the equity interest recorded was $250, which represented the fair value as of March 31, 2022. The Company recorded a $5 loss during the three and nine months ended September 30, 2022 related to the Company's proportionate share of net loss of Sagent. The Company’s investment in Sagent was $245 as of September 30, 2022. Sale of Reverse Servicing Portfolio In 2021, the Company completed the sale of its reverse servicing portfolio, operating under Champion Mortgage brand (“Champion”), to Mortgage Assets Management, LLC and its affiliates (“MAM”) for total consideration of $1,640. Upon close of the transaction, MAM assumed Champion’s reverse portfolio and related operations. The Company recorded transaction costs of $5 during the nine months ended September 30, 2021. There were no transaction costs recorded for the three months ended September 30, 2021. The carrying amounts of assets and liabilities associated with the reverse servicing operation were reported under the Servicing segment. The sale of business 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 related results of operations are reported as discontinued operations in the condensed consolidated statements of operations for prior periods presented. As part of the transaction, the Company entered into a transitional servicing agreement with MAM, under which the Company was compensated for continuing to subservice the reverse loans through the date that the loans were transferred out of Company’s servicing system. The transfer of the loans out of the Company’s servicing system was completed on April 1, 2022. In addition, the Company retained certain loans, primarily related to previously liquidated loans. As of September 30, 2022, the retained total assets and total liabilities were $38 and $27, respectively. As of December 31, 2021, the retained total assets and total liabilities were $55 and $39, respectively. The retained assets and liabilities are included in “other assets”, and “payables and other liabilities”, respectively, on the condensed consolidated balance sheets. The following table sets forth the condensed consolidated statements of operations data for discontinued operations for the three and nine months ended September 30, 2021:
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Mortgage Servicing Rights and Related Liabilities |
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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.
Mortgage Servicing Rights The following table sets forth the activities of MSRs:
During the nine months ended September 30, 2022 and 2021, the Company sold $20,723 and $1,266 in unpaid principal balance (“UPB”) of MSRs, of which $19,692 and $1,144 were retained by the Company as subservicer, respectively. MSRs are segregated between investor type into agency and non-agency pools (referred to herein as “investor pools”) based upon contractual servicing agreements with investors at the respective balance sheet date to evaluate the MSR portfolio and fair value of the portfolio. Agency investors primarily consist of government sponsored enterprises (“GSE”), such as the Federal 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 MSRs:
Refer to Note 13, Fair Value Measurements, for further discussion on key weighted-average inputs and assumptions used in estimating the fair value of MSRs. The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
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 $519 and $768 as of September 30, 2022 and December 31, 2021, respectively. Refer to Note 13, Fair Value Measurements, for key weighted-average inputs and assumptions used in the valuation of excess spread financing liability. In June 2022, the Company entered into an assignment agreement with an investor to repurchase excess spread liabilities for a total purchase price of $277. 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:
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 $20 and $10 as of September 30, 2022 and December 31, 2021, 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:
(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $172 and $488 for the three and nine months ended September 30, 2022 and $128 and $353 for three and nine months ended September 30, 2021, respectively. (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 $10 and $8 for the three months ended September 30, 2022 and 2021 and $22 and $28 for the nine months ended September 30, 2022 and 2021, respectively. (3)Amortization is net of excess spread accretion of $14 and $59 during the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, amortization is net of excess spread accretion of $74 and $205, respectively. (4)Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.
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Advances and Other Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances and Other Receivables | 4. Advances and Other Receivables Advances and other receivables, net, consists of the following:
The following table sets forth the activities of the servicing reserves for advances and other receivables:
(1)The Company recorded a provision of $10 and $8 through the MTM adjustments in “revenues - service related, net”, in the condensed consolidated statements of operations during the three months ended September 30, 2022 and 2021, respectively, and $22 and $28 during the nine months ended September 30, 2022 and 2021, 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:
Credit Loss for Advances and Other Receivables As of September 30, 2022, the total current expected credit loss (“CECL”) reserve was $34, of which $27 and $7 were recorded in reserves and purchase discount for advances and other receivables, respectively. There were no material changes to CECL reserves in 2022. As of September 30, 2021, the total CECL reserve was $29, of which $19 and $10 were recorded in reserves and purchase discount for advances and other receivables, respectively. There were no material changes to CECL reserves in 2021 except for a write-off of $16 in the three and nine months ended September 30, 2021. 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.
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Mortgage Loans Held for Sale |
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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:
(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 condensed consolidated statements of operations. The following table sets forth the activities of mortgage loans held for sale:
(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 nine months ended September 30, 2022, the Company received proceeds of $30,440 on the sale of mortgage loans held for sale, resulting in a loss of $562. During the nine months ended September 30, 2021, the Company received proceeds of $74,968 on the sale of mortgage loans held for sale, resulting in a gain of $1,146. The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:
(1)Non-accrual UPB includes $97 and $94 of UPB related to Ginnie Mae repurchased loans as of September 30, 2022 and December 31, 2021, respectively. The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $52 and $16 as of September 30, 2022 and December 31, 2021, respectively.
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Loans Subject to Repurchase from Ginnie Mae |
9 Months Ended |
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Sep. 30, 2022 | |
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 $1,575 and $1,496 as of September 30, 2022 and December 31, 2021, 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 September 30, 2022 and December 31, 2021 include $1,403 and $1,301 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.
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Goodwill and Intangible Assets |
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Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets The Company had goodwill of $120 as of September 30, 2022 and December 31, 2021, and intangible assets of $9 and $14 as of September 30, 2022 and December 31, 2021, respectively. Goodwill and intangible assets are included in “other assets” within the condensed consolidated balance sheets. |
Derivative Financial Instruments |
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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 the Originations and Servicing segments. 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 futures. The changes in value on the derivative instruments associated with hedging loans held for sale fair value 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, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in “service related, net” on the condensed consolidated statements of operations and in “loss on MSR hedging activities” on the condensed consolidated statements of cash flows. The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | 9. Indebtedness Advance and Warehouse Facilities
(1)Total capacity for this facility is $1,200, of which $300 is internally allocated for advance financing and $900 is internally allocated for MSR financing; capacity is fully fungible and is not restricted by these allocations. The capacity was increased in October 2022 to $1,400, with $300 internally allocated for advance financing and $1,100 internally allocated for MSR financing. (2)This facility was terminated in October 2022. (3)The capacity amount for this facility is $1,000, of which $500 is a sublimit for MSR financing. (4)This facility was terminated in January 2022. (5)The capacity was increased in October 2022 to $500. The weighted average interest rate for advance facilities was 4.5% and 2.7% for the three months ended September 30, 2022 and 2021, and 3.4% and 2.9% for the nine months ended September 30, 2022 and 2021, respectively. The weighted average interest rate for warehouse and MSR facilities was 4.6% and 1.9% for three months ended September 30, 2022 and 2021, and 3.3% and 2.0% for the nine months ended September 30, 2022 and 2021, respectively. Unsecured Senior Notes Unsecured senior notes consist of the following:
The indentures provide that on or before certain fixed dates, the Company may redeem up to 40% of the aggregate principal amount of the unsecured senior notes with the net proceeds of certain equity offerings at fixed redemption prices, plus accrued and unpaid interest, to the redemption dates, subject to compliance with certain conditions. In addition, the Company may redeem all or a portion of the unsecured senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest, to the redemption dates. No notes were repurchased or redeemed during the nine months ended September 30, 2022 and 2021. As of September 30, 2022, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
Interest Expense Interest expense primarily includes interest incurred on advance and warehouse facilities, unsecured senior notes, excess spread financing and compensating bank balances, as well as bank fees. The Company incurred interest expense related to advance and warehouse facilities, unsecured senior notes and excess spread financing of $90 and $266 for the three and nine months ended September 30, 2022, respectively, and $95 and $278 for the three and nine months ended September 30, 2021, respectively. Financial Covenants The Company’s credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements, which are measured at the Company’s operating subsidiary, Nationstar Mortgage LLC. The Company was in compliance with its required financial covenants as of September 30, 2022.
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Securitizations and Financings |
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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:
(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:
The Company has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of September 30, 2022 and December 31, 2021. 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:
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Earnings Per Share |
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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. In 2021, the Company repurchased a total of 14.8 million shares of its common stock from affiliates of Kohlberg Kravis Roberts & Co. L.P. (“KKR”), a related party of the Company. In addition, in August 2021, the Company repurchased 1.0 million shares of its preferred stock from affiliates of KKR. After giving effect to these transactions, KKR no longer held any equity interests in the Company. The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):
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Income Taxes |
9 Months Ended |
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Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes For the three and nine months ended September 30, 2022, the effective tax rate for continuing operations was 26.4% and 24.7%, respectively, which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation. The effective tax rate increased during the three and nine months ended September 30, 2022 compared to the same period in 2021, primarily due to the impact of quarterly discrete tax items relative to the income before taxes for the respective periods, including the excess tax benefit from stock-based compensation and prior period tax credits. For the three and nine months ended September 30, 2021, the effective tax rate for continuing operations was 25.0% and 24.0% which differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.
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Fair Value Measurements |
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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, 2021. 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:
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:
No transfers were made in or out of Level 3 fair value assets and liabilities for the Company during the nine months ended September 30, 2022 and 2021. The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
(1)The inputs are weighted by investor. (2)Presented in whole dollar amounts. (3)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:
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Capital Requirements |
9 Months Ended |
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Sep. 30, 2022 | |
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 September 30, 2022, the Company was in compliance with its selling and servicing capital requirements.
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
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. The Company recorded legal-related expenses, net of recoveries, which includes legal settlements and the fees paid to external legal service providers, of $7 and $15 for three and nine months ended September 30, 2022, respectively, and $10 and $31 for three and nine months ended September 30, 2021, respectively, which are 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 $9 in excess of the accrued liability (if any) related to those matters as of September 30, 2022. 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 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, net” 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 September 30, 2022, 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.
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Segment Information |
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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. The Servicing segment performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans where appropriate to help borrowers stay current, and when necessary performing collections, foreclosures, and the sale of REO. The Originations segment originates residential mortgage loans through our direct-to-consumer channel, which provides refinance options for our existing customers, and through our correspondent channel, which purchases or originates loans from mortgage bankers. Corporate 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 December 1, 2021, the Company completed the sale of its reverse servicing portfolio, operating under the Champion Mortgage brand, to MAM 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 financial statements for all periods presented and, as such, is not included in the continuing operations of the Servicing segment. On March 31, 2022, the Company completed the sale of its Mortgage Servicing Platform to Sagent and recorded a gain of $223, which was included in “other income, net” within the condensed statements of operations and reported under Corporate/Other. Refer to Note 2, Dispositions for further details. The following tables present financial information by segment:
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Nature of Business and Basis of Presentation (Policies) |
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Sep. 30, 2022 | |
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, 2021. 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
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Share-based Payment Arrangement | .Share-based compensation for restricted stock units granted to employees of the Company, consultants, and non-employee directors is based on the fair market value of the Company’s common stock on the grant date and recognized as an expense over the requisite employee service period on a straight-line basis using an accelerated attribution model. Shares for these awards are issued to employees from treasury stock. |
Basis of consolidation | Basis of ConsolidationThe condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, other entities in which the Company has a controlling financial interest and those variable interest entities (“VIE”) where the Company’s wholly-owned subsidiaries are the primary beneficiaries. Assets and liabilities of VIEs and their respective results of operations are consolidated from the date that the Company became the primary beneficiary through the date the Company ceases to be the primary beneficiary. The Company applies the equity method of accounting to investments where it is able to exercise significant influence, but not control, over the policies and procedures of the entity and owns less than 50% of the voting interests. These investments are initially measured at cost and subsequently adjusted for Company’s proportionate share of earnings and losses in the investee. Investments in certain companies over which the Company does not exert significant influence are recorded at fair value, or at cost upon election of measurement alternative, at the end of each reporting period. Intercompany balances and transactions on consolidated entities have been eliminated. |
Use of estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates due to factors such as adverse changes in the economy, macro-economic uncertainty, changes in interest rates, secondary market pricing for loans held for sale and derivatives, strength of underwriting and servicing practices, changes in prepayment assumptions, declines in home prices or discrete events adversely affecting specific borrowers and such differences could be material.
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Reclassification | Reclassifications Certain reclassifications have been made in the 2021 condensed consolidated statement of cash flows to conform to 2022 presentation. Such reclassifications were not material and did not affect total revenues or net income.
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Recent accounting guidance adopted | Recent Accounting Guidance AdoptedThe Company did not adopt any accounting guidance during the nine months ended September 30, 2022 that had a material impact on its condensed consolidated financial statements or disclosures. |
Discontinued Operations and Disposal Groups (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations | The following table sets forth the condensed consolidated statements of operations data for discontinued operations for the three and nine months ended September 30, 2021:
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Mortgage Servicing Rights and Related Liabilities (Tables) |
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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.
The following table sets forth the activities of MSRs:
The following table provides a breakdown of UPB and fair value for the Company’s MSRs:
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Schedule of sensitivity analysis of fair value, transferor's interests in transferred financial assets | The following table shows the hypothetical effect on the fair value of the Company’s MSRs when applying certain unfavorable variations of key assumptions to these assets for the dates indicated:
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:
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Schedule of fees earned in exchange for servicing financial assets | The following table sets forth the items comprising total revenues for the Servicing segment:
(1)The Company recognizes revenue on an earned basis for services performed. Amounts include subservicing related revenues. Amounts also include servicing fees from loans sold with servicing retained of $172 and $488 for the three and nine months ended September 30, 2022 and $128 and $353 for three and nine months ended September 30, 2021, respectively. (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 $10 and $8 for the three months ended September 30, 2022 and 2021 and $22 and $28 for the nine months ended September 30, 2022 and 2021, respectively. (3)Amortization is net of excess spread accretion of $14 and $59 during the three months ended September 30, 2022 and 2021, respectively. For the nine months ended September 30, 2022 and 2021, amortization is net of excess spread accretion of $74 and $205, respectively. (4)Other represents the excess servicing fee that the Company pays to the counterparties under the excess spread financing arrangements, portfolio runoff and the payments made associated with MSR financing arrangements.
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Advances and Other Receivables (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accounts receivable | Advances and other receivables, net, consists of the following:
The following table sets forth the activities of the servicing reserves for advances and other receivables:
(1)The Company recorded a provision of $10 and $8 through the MTM adjustments in “revenues - service related, net”, in the condensed consolidated statements of operations during the three months ended September 30, 2022 and 2021, respectively, and $22 and $28 during the nine months ended September 30, 2022 and 2021, 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:
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Mortgage Loans Held for Sale (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
(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 condensed consolidated statements of operations. The following table sets forth the activities of mortgage loans held for sale:
(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:
(1)Non-accrual UPB includes $97 and $94 of UPB related to Ginnie Mae repurchased loans as of September 30, 2022 and December 31, 2021, respectively.
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Derivative Financial Instruments (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
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Indebtedness (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of unsecured senior notes | Unsecured senior notes consist of the following:
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Schedule of maturities of long-term debt | As of September 30, 2022, the expected maturities of the Company’s unsecured senior notes based on contractual maturities are as follows:
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Securitizations and Financings (Tables) |
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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:
(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:
A summary of mortgage loans transferred by the Company to unconsolidated securitization trusts that are 60 days or more past due are presented below:
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Earnings Per Share (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of earnings per share | The following table sets forth the computation of basic and diluted net income per common share (amounts in millions, except per share amounts):
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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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:
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Fair value measurement inputs and valuation techniques | The table below presents the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities.
(1)The inputs are weighted by investor. (2)Presented in whole dollar amounts. (3)Average life is included for informational purposes.
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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:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information | The following tables present financial information by segment:
|
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Jun. 30, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
Dec. 01, 2021 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Net (loss) income from discontinued operations | $ 0.0 | $ (11.0) | $ 0.0 | $ 3.0 | ||||
Discontinued Operation, Loan Asset Retained | 38.0 | 38.0 | $ 55.0 | |||||
Discontinued Operation, Loan Liability Retained | 27.0 | 27.0 | $ 39.0 | |||||
Sagent M&C, LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Income (Loss) from Equity Method Investments | (5.0) | 5.0 | ||||||
Equity Method Investments | 245.0 | 245.0 | $ 250.0 | |||||
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] | ||||||||
Revenue - service related, net | 4.0 | 13.0 | ||||||
Salaries, wages and benefits expense | (7.0) | (23.0) | ||||||
General and administrative expense | (14.0) | 50.0 | ||||||
Interest income | 31.0 | 118.0 | ||||||
Interest expense | (26.0) | (90.0) | ||||||
Loss on classification as discontinued operations | (3.0) | (64.0) | ||||||
(Loss) income from discontinued operations before income tax (benefit) expense | (15.0) | 4.0 | ||||||
Less: Income tax (benefit) expense | (4.0) | 1.0 | ||||||
Net (loss) income from discontinued operations | (11.0) | $ 3.0 | ||||||
Disposal Group, Discontinued Operation, Transaction Cost | $ 0.0 | 5.0 | ||||||
Purchase price | $ 1,640.0 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Discontinued Operation, Transaction Cost | $ 0.0 | 4.0 | ||||||
Purchase price | 260.0 | |||||||
Disposal Group, Including Discontinued Operation, Assets, Noncurrent | $ 31.0 | |||||||
Cash received from disposal | $ 9.9 | |||||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 223.0 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Mortgage Servicing Platform | Sagent M&C, LLC | Mr. Cooper Group Inc. | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership interest percentage | 19.90% |
Mortgage Servicing Rights and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Mortgage Servicing Rights [Line Items] | ||
Excess spread financing - fair value | $ 519 | $ 768 |
Mortgage servicing rights financing - fair value | 20 | 10 |
MSR related liabilities - nonrecourse at fair value | 539 | 778 |
Mortgage servicing rights | ||
Mortgage Servicing Rights [Line Items] | ||
MSRs - fair value | $ 6,408 | $ 4,223 |
Mortgage Servicing Rights and Related Liabilities - MSR's at Fair Value (Details) - Mortgage servicing rights - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Fair value - beginning of period | $ 4,223 | $ 2,703 |
Servicing retained from mortgage loans sold | 481 | 790 |
Purchases of servicing rights | 1,256 | 438 |
Sales of servicing assets | (293) | (13) |
Changes in valuation inputs or assumptions used in the valuation model (MSR MTM) | 1,363 | 476 |
Changes in valuation due to amortization | (644) | (772) |
Other changes | 22 | 44 |
Fair value - end of period | $ 6,408 | $ 3,666 |
Mortgage Servicing Rights and Related Liabilities - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|---|
Servicing Asset at Amortized Cost [Line Items] | ||||
Excess spread financing - fair value | $ 519 | $ 768 | ||
Mortgage servicing rights financing - fair value | 20 | $ 10 | ||
Excess Spread Financing Repurchase, Purchase Price | $ 277 | |||
Forward MSRs Sold | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB | 20,723 | $ 1,266 | ||
Forward MSRs Sold, Subservicing Retained | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
UPB | $ 19,692 | $ 1,144 |
Mortgage Servicing Rights and Related Liabilities - UPB related to owned MSRs (Details) - Mortgage servicing rights - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Owned Service Loans [Line Items] | ||
UPB | $ 395,406 | $ 339,208 |
Fair Value | 6,408 | 4,223 |
Agency | ||
Owned Service Loans [Line Items] | ||
UPB | 363,637 | 302,851 |
Fair Value | 6,068 | 3,859 |
Non-agency | ||
Owned Service Loans [Line Items] | ||
UPB | 31,769 | 36,357 |
Fair Value | $ 340 | $ 364 |
Mortgage Servicing Rights and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Mortgage servicing rights | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Total prepayment speeds, 10% Adverse Change | $ (142) | $ (148) |
Total prepayment speeds, 20% Adverse Change | (276) | (286) |
Cost to Service per Loan, 10% Adverse Change | (66) | (46) |
Cost to Service per Loan, 20% Adverse Change | (132) | (93) |
Excess spread financing | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Total prepayment speeds, 10% Adverse Change | 12 | 28 |
Total prepayment speeds, 20% Adverse Change | 24 | 58 |
100 bps Adverse Change | Mortgage servicing rights | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Discount Rate | (266) | (141) |
100 bps Adverse Change | Excess spread financing | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Discount Rate | 20 | 26 |
200 bps Adverse Change | Mortgage servicing rights | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Discount Rate | (512) | (272) |
200 bps Adverse Change | Excess spread financing | ||
Excess Spread Financing - Hypothetical Sensitivities | ||
Discount Rate | $ 41 | $ 54 |
Mortgage Servicing Rights and Related Liabilities - Servicing Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Transfers and Servicing [Abstract] | ||||
Contractually specified servicing fees(1) | $ 371 | $ 280 | $ 1,076 | $ 831 |
Other service-related income(1) | 0 | 158 | 68 | 517 |
Incentive and modification income(1) | 5 | 10 | 23 | 38 |
Late fees(1) | 19 | 19 | 57 | 53 |
Mark-to-market adjustments(2) | 124 | 151 | 877 | 376 |
Amortization, net of accretion(3) | (169) | (202) | (570) | (567) |
Other(4) | (18) | (65) | (88) | (224) |
Total revenues - Servicing | 332 | 351 | 1,443 | 1,024 |
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | 10 | 8 | 22 | 28 |
Servicing fee income accretion expense | 14 | 59 | 74 | 205 |
Cash Flows Between Transferor and Transferee, Servicing Fees | $ 172 | $ 128 | $ 488 | $ 353 |
Advances and Other Receivables - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|---|---|
Receivables [Abstract] | ||||||
Servicing advances, net of $12 and $19 purchase discount, respectively | $ 854 | $ 1,263 | ||||
Receivables from agencies, investors and prior servicers, net of $7 and $12 purchase discount, respectively | 120 | 132 | ||||
Reserves | (143) | (167) | ||||
Total advances and other receivables, net | 831 | 1,228 | ||||
Servicing advances discount | 12 | $ 14 | 19 | $ 30 | $ 31 | $ 72 |
Receivables discount | $ 7 | $ 8 | $ 12 | $ 13 | $ 20 | $ 21 |
Advances and Other Receivables - Advances and Other Receivables Roll Forward (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Advances And Other Receivables, Reserves [Roll Forward] | ||||
Balance - beginning of period | $ 150 | $ 191 | $ 167 | $ 208 |
Provision and other additions(1) | 19 | 18 | 53 | 59 |
Write-offs | (26) | (37) | (77) | (95) |
Balance - end of period | 143 | 172 | 143 | 172 |
Cumulative incurred losses related to advances and other receivables associated with inactive and liquidated loans | $ 10 | $ 8 | $ 22 | $ 28 |
Advances and Other Receivables - Purchase Discount (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Servicing Advances | ||||
Servicing Advances, Discount | $ 14 | $ 31 | $ 19 | $ 72 |
Accretion of Service Advances Discount | (2) | (1) | (7) | (42) |
Servicing Advances, Discount | 12 | 30 | 12 | 30 |
Receivables from Agencies, Investors and Prior Servicers | ||||
Receivable with Imputed Interest, Discount | 7 | 13 | 7 | 13 |
Receivable Discount, Accretion Expense | (1) | (7) | (5) | (8) |
Receivable with Imputed Interest, Discount | $ 8 | $ 20 | $ 12 | $ 21 |
Advances and Other Receivables - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, allowance for credit loss | $ 29 | $ 34 | $ 29 |
Financial instruments collection period | 39 months | ||
Advances and other receivables reserve | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Other Credit Losses, Write-off | (16) | (16) | |
Financing receivable, allowance for credit loss | 19 | $ 27 | 19 |
Purchase Discount | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Financing receivable, allowance for credit loss | $ 10 | $ 7 | $ 10 |
Mortgage Loans Held for Sale - Mortgage Loans Held for Sale (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage loans held for sale – UPB | $ 1,670 | $ 4,257 |
Mark-to-market adjustment(1) | (89) | 124 |
Total mortgage loans held for sale | 1,581 | 4,381 |
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance | 108 | 104 |
Fair Value, Mortgage Loans Held for Sale non-accrual status | 93 | 94 |
Ginnie mae repurchased loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgage Loans Held for Sale, Nonaccrual Basis Unpaid Principal Balance | $ 97 | $ 94 |
Mortgage Loans Held for Sale - Reconciliation to Cash Flow (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward] | ||
Balance - beginning of period | $ 4,381 | $ 5,720 |
Loans sold | (30,648) | (73,822) |
Mortgage loans originated and purchased, net of fees | 25,120 | 67,507 |
Repurchase of loans out of Ginnie Mae securitizations | 2,904 | 8,530 |
Net change in unrealized (loss) gain on retained loans held for sale | (177) | 1 |
Net transfers of mortgage loans held for sale(1) | 1 | 3 |
Balance - end of period | $ 1,581 | $ 7,939 |
Mortgage Loans Held for Sale - Narrative (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Mortgage Loans Held for Sale and Investment [Abstract] | |||
Sale of mortgage loans held for sale | $ 30,440 | $ 74,968 | |
Gain (Loss) on Sale of Mortgage Loans | (562) | $ 1,146 | |
Mortgage loans held for sale in foreclosure | $ 52 | $ 16 |
Loans Subject to Repurchase from Ginnie Mae (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans subject to repurchase from Ginnie Mae | $ 1,575 | $ 1,496 |
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 | $ 1,403 | $ 1,301 |
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 120 | $ 120 |
Intangible assets | $ 9 | $ 14 |
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ (62) | |
Assets | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 3,467 | $ 19,824 |
Fair Value | 96 | 234 |
Gains/(Losses) | 431 | (39) |
Assets | Loan sale commitments | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 439 | 1,435 |
Fair Value | 29 | |
Fair Value | (3) | |
Gains/(Losses) | (28) | (73) |
Assets | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 1,118 | 6,167 |
Fair Value | 21 | 167 |
Gains/(Losses) | (113) | (247) |
Assets | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 53 | 887 |
Fair Value | 1 | 6 |
Gains/(Losses) | (2) | (33) |
Assets | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 2,296 | 12,770 |
Fair Value | 74 | 61 |
Gains/(Losses) | 542 | 240 |
Assets | Swap futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 0 | |
Fair Value | 0 | |
Gains/(Losses) | 1 | |
Assets | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 0 | |
Fair Value | 0 | |
Gains/(Losses) | 4 | |
Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 2,038 | 9,486 |
Fair Value | (94) | (48) |
Gains/(Losses) | (344) | (152) |
Liabilities | IRLCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 551 | 25 |
Fair Value | (8) | 0 |
Gains/(Losses) | (8) | 0 |
Liabilities | LPCs | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 223 | 2,208 |
Fair Value | (5) | (13) |
Gains/(Losses) | (2) | (12) |
Liabilities | Forward MBS trades | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 458 | 6,553 |
Fair Value | (19) | (23) |
Gains/(Losses) | (72) | (122) |
Liabilities | Swap futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 700 | |
Fair Value | (12) | |
Gains/(Losses) | $ (18) | |
Liabilities | Treasury futures | ||
Derivatives, Fair Value [Line Items] | ||
Outstanding Notional | 806 | |
Gains/(Losses) | $ (262) |
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Collateral deposit assets (liabilities) | $ (23) | $ (27) |
Indebtedness - Advance and Warehouse Facilities Summary (Details) - USD ($) |
Oct. 01, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Advance and warehouse facilities, net | $ 3,070,000,000 | $ 4,997,000,000 | |
Advance Facilities | Servicing | Loans payable | $350 advance facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 350,000,000 | ||
Debt outstanding, gross | 150,000,000 | 160,000,000 | |
Collateral Pledged | 182,000,000 | 197,000,000 | |
Advance Facilities | Servicing | Loans payable | $350 advance facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 350,000,000 | ||
Debt outstanding, gross | 130,000,000 | 162,000,000 | |
Collateral Pledged | 154,000,000 | 190,000,000 | |
Advance Facilities | Servicing | Notes payable to banks | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 532,000,000 | 614,000,000 | |
Collateral Pledged | 674,000,000 | 794,000,000 | |
Advance Facilities | Servicing | Notes payable to banks | $75 advance facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 75,000,000 | ||
Debt outstanding, gross | 46,000,000 | 58,000,000 | |
Collateral Pledged | 48,000,000 | 89,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 1,504,000,000 | 4,125,000,000 | |
Collateral Pledged | 1,676,000,000 | 4,327,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,500,000,000 | ||
Debt outstanding, gross | 427,000,000 | 1,224,000,000 | |
Collateral Pledged | 531,000,000 | 1,341,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $1,500 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,500,000,000 | ||
Debt outstanding, gross | 328,000,000 | 356,000,000 | |
Collateral Pledged | 341,000,000 | 345,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $1,000 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,000,000,000 | ||
Debt outstanding, gross | 235,000,000 | 991,000,000 | |
Collateral Pledged | 244,000,000 | 1,024,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $750 warehouse facility(2) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 750,000,000 | ||
Debt outstanding, gross | 258,000,000 | 256,000,000 | |
Collateral Pledged | 274,000,000 | 270,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility(3) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 500,000,000 | ||
Debt outstanding, gross | 144,000,000 | 409,000,000 | |
Collateral Pledged | 157,000,000 | 425,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 500,000,000 | ||
Debt outstanding, gross | 24,000,000 | 39,000,000 | |
Collateral Pledged | 30,000,000 | 39,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $500 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 500,000,000 | ||
Debt outstanding, gross | 12,000,000 | 38,000,000 | |
Collateral Pledged | 13,000,000 | 39,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $450 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 450,000,000 | ||
Debt outstanding, gross | 0 | 87,000,000 | |
Collateral Pledged | 0 | 89,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $300 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 300,000,000 | ||
Debt outstanding, gross | 55,000,000 | 419,000,000 | |
Collateral Pledged | 58,000,000 | 430,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $250 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 250,000,000 | ||
Debt outstanding, gross | 0 | 5,000,000 | |
Collateral Pledged | 0 | 6,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 200,000,000 | ||
Debt outstanding, gross | 5,000,000 | 188,000,000 | |
Collateral Pledged | 8,000,000 | 194,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $200 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 200,000,000 | ||
Debt outstanding, gross | 13,000,000 | 46,000,000 | |
Collateral Pledged | 17,000,000 | 58,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $125 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 125,000,000 | ||
Debt outstanding, gross | 3,000,000 | 67,000,000 | |
Collateral Pledged | 3,000,000 | 67,000,000 | |
Warehouse Facilities | Originations | Notes payable to banks | $30 warehouse facility(4) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 0 | ||
Debt outstanding, gross | 0 | 0 | |
Collateral Pledged | 0 | 0 | |
Warehouse Facilities | Originations | Notes payable to banks | $1,000 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,000,000,000 | ||
MSR Facilities | Servicing | Notes payable to banks | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 1,040,000,000 | 270,000,000 | |
Collateral Pledged | 5,154,000,000 | 2,814,000,000 | |
MSR Facilities | Servicing | Notes payable to banks | $900 warehouse facility(1) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 900,000,000 | ||
Debt outstanding, gross | 260,000,000 | 260,000,000 | |
Collateral Pledged | 2,028,000,000 | 1,107,000,000 | |
MSR Facilities | Servicing | Notes payable to banks | $600 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 600,000,000 | ||
Debt outstanding, gross | 325,000,000 | 0 | |
Collateral Pledged | 911,000,000 | 838,000,000 | |
MSR Facilities | Servicing | Notes payable to banks | $500 warehouse facility(3) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 500,000,000 | ||
Debt outstanding, gross | 180,000,000 | 0 | |
Collateral Pledged | 1,435,000,000 | 745,000,000 | |
MSR Facilities | Servicing | Notes payable to banks | $400 warehouse facility(5) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 400,000,000 | ||
Debt outstanding, gross | 250,000,000 | 0 | |
Collateral Pledged | 705,000,000 | 0 | |
MSR Facilities | Servicing | Notes payable to banks | $50 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 50,000,000 | ||
Debt outstanding, gross | 25,000,000 | 10,000,000 | |
Collateral Pledged | 75,000,000 | 124,000,000 | |
MSR Facilities | Servicing | Notes payable to banks | $1,200 warehouse facility | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,200,000,000 | ||
MSR Facilities | Servicing | Notes payable to banks | $1,200 warehouse facility | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Capacity Amount | $ 1,400,000,000 | ||
Advance Financing, Internally Allocated | Servicing | Loans payable | $300 advance facility(1) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 300,000,000 | ||
Debt outstanding, gross | 206,000,000 | 234,000,000 | |
Collateral Pledged | 290,000,000 | 318,000,000 | |
Advance Financing, Internally Allocated | Servicing | Loans payable | $300 advance facility(1) | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 300,000,000 | ||
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $900 warehouse facility(1) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 900,000,000 | ||
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $900 warehouse facility(1) | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 1,100,000,000 | ||
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $500 warehouse facility(3) | |||
Debt Instrument [Line Items] | |||
Capacity Amount | 500,000,000 | ||
MSR Financing, Internally Allocated | Servicing | Notes payable to banks | $400 warehouse facility(5) | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Capacity Amount | $ 500,000,000 | ||
Advance, Warehouse and MSR Facilities | |||
Debt Instrument [Line Items] | |||
Debt outstanding, gross | 3,076,000,000 | 5,009,000,000 | |
Collateral Pledged | 7,504,000,000 | 7,935,000,000 | |
Unamortized debt issuance costs | (6,000,000) | (12,000,000) | |
Advance and warehouse facilities, net | $ 3,070,000,000 | $ 4,997,000,000 |
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Unsecured senior notes, net | $ 2,673,000,000 | $ 2,670,000,000 |
Unsecured Senior Notes | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | 2,700,000,000 | 2,700,000,000 |
Unamortized debt issuance costs | (27,000,000) | (30,000,000) |
Unsecured senior notes, net | 2,673,000,000 | 2,670,000,000 |
Unsecured Senior Notes | $850 face value, 5.500% interest rate payable semi-annually, due August 2028 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | 850,000,000 | 850,000,000 |
Face value | $ 850,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | |
Unsecured Senior Notes | $650 face value, 5.125% interest rate payable semi-annually, due December 2030 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | $ 650,000,000 | 650,000,000 |
Face value | $ 650,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |
Unsecured Senior Notes | $600 face value, 6.000% interest rate payable semi-annually, due January 2027 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | $ 600,000,000 | 600,000,000 |
Face value | $ 600,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Unsecured Senior Notes | $600 face value, 5.750% interest rate payable semi-annually, due November 2031 | ||
Debt Instrument [Line Items] | ||
Unsecured senior notes principal amount | $ 600,000,000 | $ 600,000,000 |
Face value | $ 600,000,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.75% |
Indebtedness - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Debt Instrument [Line Items] | ||||
Interest Expense | $ 104 | $ 118 | $ 321 | $ 363 |
Advance Facilities | Servicing | ||||
Debt Instrument [Line Items] | ||||
Short-Term Debt, Weighted Average Interest Rate, over Time | 4.50% | 2.70% | 3.40% | 2.90% |
Warehouse & MSR Facilities | ||||
Debt Instrument [Line Items] | ||||
Short-Term Debt, Weighted Average Interest Rate, over Time | 4.60% | 1.90% | 3.30% | 2.00% |
Debt | ||||
Debt Instrument [Line Items] | ||||
Interest Expense | $ 90 | $ 95 | $ 266 | $ 278 |
Unsecured Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Maximum percentage redeemable on unsecured debt | 40.00% | |||
Repayments of debt | $ 0 | 0 | ||
Amount of principal amount outstanding repaid | $ 0 | $ 0 |
Indebtedness - Schedule of Notes Maturity (Details) - Unsecured Senior Notes - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
2022 through 2026 | $ 0 | |
Thereafter | 2,700 | |
Total unsecured senior notes principal amount | $ 2,700 | $ 2,700 |
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - Residential mortgage - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets - transfers accounted for as secured borrowings | $ 398 | $ 437 |
Liabilities - transfers accounted for as secured borrowings | 281 | 323 |
Restricted cash | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Assets - transfers accounted for as secured borrowings | 62 | 50 |
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 | 336 | 387 |
Advance facilities, net(1) | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities - transfers accounted for as secured borrowings | 280 | 322 |
Payables and other liabilities | ||
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items] | ||
Liabilities - transfers accounted for as secured borrowings | $ 1 | $ 1 |
Securitizations and Financings - Securitization Trusts (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Variable Interest Entities and Securitizations [Abstract] | ||
Total collateral balances - UPB | $ 1,002 | $ 1,122 |
Total certificate balances | 975 | 1,112 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Unconsolidated securitization trusts | $ 120 | $ 138 |
Earnings Per Share - Narrative (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Common Stock | ||||||
Stock Repurchased and Retired [Line Items] | ||||||
Repurchase of common stock (in shares) | 1,136 | 11,073 | 4,118 | 15,578 | (14,800) | |
Preferred Stock | ||||||
Stock Repurchased and Retired [Line Items] | ||||||
Stock Repurchased and Retired During Period, Shares | 1,000 | (1,000) | 1,000 |
Earnings Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Earnings Per Share [Abstract] | ||||
Net income from continuing operations | $ 113 | $ 310 | $ 922 | $ 1,296 |
Less: Undistributed earnings from continuing operations attributable to participating stockholders | 0 | 1 | 0 | 9 |
Net income from continuing operations attributable to Mr. Cooper common stockholders | 113 | 281 | 922 | 1,259 |
Net (loss) income from discontinued operations | 0 | (11) | 0 | 3 |
Less: Undistributed earnings from discontinued operations attributable to participating stockholders | 0 | 0 | 0 | 0 |
Net (loss) income from discontinued operations attributable to Mr. Cooper common stockholders | 0 | (11) | 0 | 3 |
Net income | 113 | 299 | 922 | 1,299 |
Less: Undistributed earnings attributable to participating stockholders | 0 | 1 | 0 | 9 |
Net income attributable to common stockholders | $ 113 | $ 270 | $ 922 | $ 1,262 |
Earnings Per Share, Basic [Abstract] | ||||
Income (Loss) from Continuing Operations, Per Basic Share | $ 1.59 | $ 3.56 | $ 12.71 | $ 14.85 |
Income (Loss) from Continuing Operations, Per Diluted Share | 1.55 | 3.42 | 12.37 | 14.20 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0 | (0.14) | 0 | 0.04 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0 | (0.13) | 0 | 0.03 |
Basic (in dollars per share) | 1.59 | 3.42 | 12.71 | 14.89 |
Diluted (in dollars per share) | $ 1.55 | $ 3.29 | $ 12.37 | $ 14.23 |
Weighted average shares of common stock outstanding (in thousands): | ||||
Basic | 71,175 | 78,944 | 72,569 | 84,809 |
Dilutive effect of stock awards | 1,703 | 2,826 | 1,988 | 3,176 |
Dilutive effect of participating securities | 0 | 301 | 0 | 658 |
Diluted | 72,878 | 82,071 | 74,557 | 88,643 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 26.40% | 25.00% | 24.70% | 24.00% |
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets | ||
Mortgage loans held for sale | $ 1,581 | $ 4,381 |
Liabilities | ||
Mortgage servicing rights financing | 20 | 10 |
Treasury futures | ||
Assets | ||
Fair Value | 62 | |
Recurring Fair Value Measurements | ||
Assets | ||
Mortgage loans held for sale | 1,581 | 4,381 |
Mortgage servicing rights | 6,408 | 4,223 |
Equity investments | 48 | 63 |
Liabilities | ||
Mortgage servicing rights financing | 20 | 10 |
Excess spread financing | 519 | 768 |
Recurring Fair Value Measurements | IRLCs | ||
Assets | ||
Fair Value | 21 | 134 |
Fair Value | 8 | |
Recurring Fair Value Measurements | LPCs | ||
Assets | ||
Fair Value | 1 | 3 |
Fair Value | 5 | 2 |
Recurring Fair Value Measurements | Forward MBS trades | ||
Assets | ||
Fair Value | 74 | 7 |
Fair Value | 19 | 8 |
Recurring Fair Value Measurements | Swap futures | ||
Assets | ||
Fair Value | 6 | |
Recurring Fair Value Measurements | Level 1 | ||
Assets | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Equity investments | 3 | 9 |
Liabilities | ||
Mortgage servicing rights financing | 0 | 0 |
Excess spread financing | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | IRLCs | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | |
Recurring Fair Value Measurements | Level 1 | LPCs | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Forward MBS trades | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Recurring Fair Value Measurements | Level 1 | Swap futures | ||
Assets | ||
Fair Value | 0 | |
Recurring Fair Value Measurements | Level 1 | Treasury futures | ||
Assets | ||
Fair Value | 0 | |
Recurring Fair Value Measurements | Level 2 | ||
Assets | ||
Mortgage loans held for sale | 1,581 | 4,381 |
Mortgage servicing rights | 0 | 0 |
Equity investments | 0 | 0 |
Liabilities | ||
Mortgage servicing rights financing | 0 | 0 |
Excess spread financing | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | IRLCs | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | |
Recurring Fair Value Measurements | Level 2 | LPCs | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Recurring Fair Value Measurements | Level 2 | Forward MBS trades | ||
Assets | ||
Fair Value | 74 | 7 |
Fair Value | 19 | 8 |
Recurring Fair Value Measurements | Level 2 | Swap futures | ||
Assets | ||
Fair Value | 6 | |
Recurring Fair Value Measurements | Level 2 | Treasury futures | ||
Assets | ||
Fair Value | 62 | |
Recurring Fair Value Measurements | Level 3 | ||
Assets | ||
Mortgage loans held for sale | 0 | 0 |
Mortgage servicing rights | 6,408 | 4,223 |
Equity investments | 45 | 54 |
Liabilities | ||
Mortgage servicing rights financing | 20 | 10 |
Excess spread financing | 519 | 768 |
Recurring Fair Value Measurements | Level 3 | IRLCs | ||
Assets | ||
Fair Value | 21 | 134 |
Fair Value | 8 | |
Recurring Fair Value Measurements | Level 3 | LPCs | ||
Assets | ||
Fair Value | 1 | 3 |
Fair Value | 5 | 2 |
Recurring Fair Value Measurements | Level 3 | Forward MBS trades | ||
Assets | ||
Fair Value | 0 | 0 |
Fair Value | 0 | 0 |
Recurring Fair Value Measurements | Level 3 | Swap futures | ||
Assets | ||
Fair Value | $ 0 | |
Recurring Fair Value Measurements | Level 3 | Treasury futures | ||
Assets | ||
Fair Value | $ 0 |
Fair Value Measurements - Level 3 Reconciliation (Details) - Recurring Fair Value Measurements - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Excess spread financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | $ 768 | $ 934 |
Changes in fair value included in earnings | 124 | 6 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Repayments | 293 | |
Settlements | (80) | (118) |
Other changes | 0 | 0 |
Balance - end of period | 519 | 822 |
Mortgage servicing rights financing | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 10 | 33 |
Changes in fair value included in earnings | 10 | (13) |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Repayments | 0 | |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of period | 20 | 20 |
Mortgage servicing rights | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 4,223 | 2,703 |
Changes in fair value included in earnings | 719 | (296) |
Purchases | 1,256 | 438 |
Issuances | 481 | 790 |
Sales | (293) | (13) |
Repayments | 0 | |
Settlements | 0 | 0 |
Other changes | 22 | 44 |
Balance - end of period | 6,408 | 3,666 |
Equity investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 54 | 0 |
Changes in fair value included in earnings | (9) | 0 |
Purchases | 0 | 50 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Repayments | 0 | |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of period | 45 | 50 |
IRLCs | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance - beginning of period | 134 | 414 |
Changes in fair value included in earnings | (113) | (247) |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Repayments | 0 | |
Settlements | 0 | 0 |
Other changes | 0 | 0 |
Balance - end of period | $ 21 | $ 167 |
Fair Value Measurements - Unobservable Inputs (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2022 |
Dec. 31, 2021 |
|
MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Average life(3) | 8 years | 5 years 9 months 18 days |
Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Average life(3) | 6 years 7 months 6 days | 5 years 4 months 24 days |
Min | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 10.40% | 9.50% |
Prepayment speed | 6.60% | 11.70% |
Cost to service per loan(2) | $ 59 | $ 59 |
Min | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | (0.003) | (0.007) |
Min | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 10.00% | 9.50% |
Prepayment speed | 6.60% | 12.80% |
Min | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 5.00% | 4.50% |
Annual advance recovery rates | 16.90% | 19.20% |
Max | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 13.70% | 13.70% |
Prepayment speed | 13.30% | 16.40% |
Cost to service per loan(2) | $ 128 | $ 168 |
Max | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | 0.044 | 0.024 |
Max | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 13.80% | 13.80% |
Prepayment speed | 13.50% | 15.20% |
Max | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 8.70% | 7.90% |
Annual advance recovery rates | 22.90% | 23.00% |
Weighted Average | MSR(1) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 11.40% | 10.90% |
Prepayment speed | 7.40% | 13.00% |
Cost to service per loan(2) | $ 78 | $ 77 |
Weighted Average | IRLCs | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Value of servicing (reflected as a percentage of loan commitment) | 0.021 | 0.014 |
Weighted Average | Excess spread financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Discount rate | 11.30% | 11.20% |
Prepayment speed | 9.50% | 13.40% |
Weighted Average | Mortgage servicing rights financing | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Advance financing and counterparty fee rates | 7.30% | 6.50% |
Annual advance recovery rates | 18.50% | 21.30% |
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($) $ in Millions |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
---|---|---|---|
Financial assets | |||
Restricted cash | $ 148 | $ 146 | $ 118 |
Loans subject to repurchase from Ginnie Mae | 1,575 | 1,496 | |
Financial liabilities | |||
Unsecured senior notes, net | 2,673 | 2,670 | |
Advance and warehouse facilities, net | 3,070 | 4,997 | |
Nonrecurring Fair Value Measurements | |||
Financial assets | |||
Cash and cash equivalents | 530 | 895 | |
Restricted cash | 148 | 146 | |
Advances and other receivables, net | 831 | 1,228 | |
Loans subject to repurchase from Ginnie Mae | 1,575 | 1,496 | |
Financial liabilities | |||
Unsecured senior notes, net | 2,673 | 2,670 | |
Advance and warehouse facilities, net | 3,070 | 4,997 | |
Liability for loans subject to repurchase from Ginnie Mae | 1,575 | 1,496 | |
Nonrecurring Fair Value Measurements | Level 1 | |||
Financial assets | |||
Cash and cash equivalents | 530 | 895 | |
Restricted cash | 148 | 146 | |
Advances and other receivables, net | 0 | 0 | |
Loans subject to repurchase from Ginnie Mae | 0 | 0 | |
Financial liabilities | |||
Unsecured senior notes, net | 2,085 | 2,737 | |
Advance and warehouse facilities, net | 0 | 0 | |
Liability for loans subject to repurchase from Ginnie Mae | 0 | 0 | |
Nonrecurring Fair Value Measurements | Level 2 | |||
Financial assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Advances and other receivables, net | 0 | 0 | |
Loans subject to repurchase from Ginnie Mae | 1,575 | 1,496 | |
Financial liabilities | |||
Unsecured senior notes, net | 0 | 0 | |
Advance and warehouse facilities, net | 3,076 | 5,009 | |
Liability for loans subject to repurchase from Ginnie Mae | 1,575 | 1,496 | |
Nonrecurring Fair Value Measurements | Level 3 | |||
Financial assets | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Advances and other receivables, net | 831 | 1,228 | |
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 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Loss Contingencies [Line Items] | ||||
Legal Fees (Recoveries), net | $ 7 | $ 10 | $ 15 | $ 31 |
Litigation and regulatory matters | Min | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | 2 | 2 | ||
Litigation and regulatory matters | Max | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 9 | $ 9 |
Segment Information - Financial Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Revenues: | |||||
Service related, net | $ 395 | $ 288 | $ 1,610 | $ 860 | |
Net (loss) gain on mortgage loans held for sale | 115 | 572 | 551 | 1,833 | |
Total revenues | 510 | 860 | 2,161 | 2,693 | |
Total expenses | 316 | 402 | 982 | 1,281 | |
Other income (expenses) | |||||
Interest income | 83 | 66 | 169 | 163 | |
Interest expense | (104) | (118) | (321) | (363) | |
Other expense, net | (20) | 8 | 197 | 494 | |
Total other (expenses) income, net | (41) | (44) | 45 | 294 | |
Income from continuing operations before income tax expense | 153 | 414 | 1,224 | 1,706 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 9 | 14 | 29 | 45 | |
Total assets | 12,815 | 21,661 | 12,815 | 21,661 | $ 14,204 |
Gain (Loss) on Disposition of Assets | (223) | ||||
Operating Segments | Servicing | |||||
Revenues: | |||||
Service related, net | 353 | 209 | 1,468 | 558 | |
Net (loss) gain on mortgage loans held for sale | (21) | 142 | (25) | 466 | |
Total revenues | 332 | 351 | 1,443 | 1,024 | |
Total expenses | 147 | 128 | 413 | 359 | |
Other income (expenses) | |||||
Interest income | 71 | 39 | 125 | 87 | |
Interest expense | (53) | (65) | (168) | (201) | |
Other expense, net | 0 | 0 | 0 | 0 | |
Total other (expenses) income, net | 18 | (26) | (43) | (114) | |
Income from continuing operations before income tax expense | 203 | 197 | 987 | 551 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 6 | 11 | 16 | 23 | |
Total assets | 9,703 | 14,560 | 9,703 | 14,560 | |
Operating Segments | Originations | |||||
Revenues: | |||||
Service related, net | 20 | 44 | 86 | 132 | |
Net (loss) gain on mortgage loans held for sale | 136 | 430 | 576 | 1,367 | |
Total revenues | 156 | 474 | 662 | 1,499 | |
Total expenses | 112 | 208 | 412 | 665 | |
Other income (expenses) | |||||
Interest income | 12 | 27 | 44 | 76 | |
Interest expense | (11) | (22) | (33) | (70) | |
Other expense, net | 0 | 0 | 0 | 0 | |
Total other (expenses) income, net | 1 | 5 | 11 | 6 | |
Income from continuing operations before income tax expense | 45 | 271 | 261 | 840 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | 5 | 8 | 14 | 18 | |
Total assets | 1,252 | 4,949 | 1,252 | 4,949 | |
Corporate/Other | |||||
Revenues: | |||||
Service related, net | 22 | 35 | 56 | 170 | |
Net (loss) gain on mortgage loans held for sale | 0 | 0 | 0 | 0 | |
Total revenues | 22 | 35 | 56 | 170 | |
Total expenses | 57 | 66 | 157 | 257 | |
Other income (expenses) | |||||
Interest income | 0 | 0 | 0 | 0 | |
Interest expense | (40) | (31) | (120) | (92) | |
Other expense, net | (20) | 8 | 197 | 494 | |
Total other (expenses) income, net | (60) | (23) | 77 | 402 | |
Income from continuing operations before income tax expense | (95) | (54) | (24) | 315 | |
Depreciation and amortization for property and equipment and intangible assets from continuing operations | (2) | (5) | (1) | 4 | |
Total assets | $ 1,860 | $ 2,152 | $ 1,860 | $ 2,152 |