NATIONSTAR MORTGAGE HOLDINGS INC., 10-Q filed on 5/5/2016
Quarterly Report
v3.4.0.3
Document and Entity Information
 3 Months Ended
Mar. 31, 2016
shares
Document and Entity Information [Abstract]  
Entity Registrant Name Nationstar Mortgage Holdings Inc.
Entity Central Index Key 0001520566
Current Fiscal Year End Date --12-31
Entity Filer Category Accelerated Filer
Document Type 10-Q
Document Period End Date Mar. 31, 2016
Document Fiscal Year Focus 2016
Document Fiscal Period Focus Q1
Amendment Flag false
Entity Common Stock, Shares Outstanding 102,873,112
v3.4.0.3
Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Assets    
Cash and cash equivalents $ 460,951 $ 613,241
Restricted cash 307,564 332,105
Mortgage servicing rights, $3,088,123 and $3,358,327 at fair value, respectively 3,096,084 3,366,973
Advances, net 2,070,599 2,223,083
Reverse mortgage interests, net 7,584,086 7,514,323
Mortgage loans held for sale 1,880,654 1,429,691
Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,549, respectively 166,564 173,650
Property and equipment, net of accumulated depreciation of $106,797 and $92,834, respectively 142,155 142,836
Derivative financial instruments 109,168 99,699
Other assets 733,699 721,832
Total assets 16,551,524 16,617,433
Liabilities and stockholders' equity    
Unsecured senior notes, net of unamortized debt issuance costs $21,535 and $22,940, respectively 2,025,265 2,025,754
Advance facilities, net of unamortized debt issuance costs $3,409 and $6,433, respectively 1,563,750 1,639,690
Warehouse facilities, net of unamortized debt issuance costs $2,171 and $3,206, respectively 2,414,495 1,890,320
Payables and accrued liabilities 1,139,400 1,296,387
MSR related liabilities - nonrecourse 1,242,999 1,300,782
Mortgage servicing liabilities 18,065 25,260
Derivative financial instruments 20,835 5,823
Other nonrecourse debt, net of unamortized debt issuance costs $5,758 and $4,558, respectively (6,545,196) (6,666,040)
Total liabilities $ 14,970,005 $ 14,850,056
Commitments and contingencies (Note 15)
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding $ 0 $ 0
Common stock at $0.01 par value - 1,000,000 shares authorized, 109,909 shares and 109,826 shares issued, respectively 1,099 1,084
Additional paid-in-capital 1,109,005 1,104,972
Retained earnings 549,449 681,838
Treasury shares at cost; 7,036 and 989 shares, respectively (86,395) (29,780)
Total Nationstar stockholders' equity 1,573,158 1,758,114
Noncontrolling interest 8,361 9,263
Total stockholders' equity 1,581,519 1,767,377
Total liabilities and stockholders' equity $ 16,551,524 $ 16,617,433
v3.4.0.3
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mortgage servicing rights at fair value $ 3,088,123 $ 3,358,327
Allowance for loan losses 3,549 3,549
Accumulated depreciation 106,797 92,834
Unamortized debt issuance costs $ 5,915 $ 5,713
Preferred stock, par value (in dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 300,000,000 300,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 109,909,000 109,826,000
Treasury Shares 7,036,000 989,000
Unsecured Senior Notes    
Unamortized debt issuance costs $ 21,535 $ 22,940
Advance Facilities    
Unamortized debt issuance costs 3,409 6,433
Warehouse Facilities    
Unamortized debt issuance costs 2,171 3,206
Nonrecourse Debt    
Unamortized debt issuance costs $ 5,758 $ 4,559
v3.4.0.3
Unaudited Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Revenues:    
Service related $ 92,653 $ 215,123
Net gain on mortgage loans held for sale 171,116 166,994
Total revenues 263,769 382,117
Expenses:    
Salaries, wages and benefits 197,362 178,755
General and administrative 224,115 205,088
Total expenses 421,477 383,843
Other income (expenses):    
Interest income 102,843 43,774
Interest expense (160,776) (115,648)
Gain on repurchase of unsecured senior notes 77 0
Gain (loss) on interest rate swaps and caps 8 (767)
Total other expenses, net (57,848) (72,641)
Loss before income tax benefit (215,556) (74,367)
Income tax benefit (82,265) (27,525)
Net loss (133,291) (46,842)
Less: net income (loss) attributable to non-controlling interests (902) 1,473
Net loss attributable to Nationstar $ (132,389) $ (48,315)
Net loss per common share attributable to common stockholders:    
Basic and diluted loss per common share (in dollars per share) $ (1.28) $ (0.54)
Weighted average shares of common stock outstanding:    
Basic and diluted (in shares) 103,098 89,911
Dividends declared per share (in dollars per share) $ 0 $ 0
v3.4.0.3
Unaudited Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Treasury Share Amount
Total Nationstar Stockholders' Equity
Non-controlling Interests
Beginning of Period, shares at Dec. 31, 2014   90,357          
Beginning of Period at Dec. 31, 2014 $ 1,224,278 $ 910 $ 587,446 $ 643,059 $ (12,433) $ 1,218,982 $ 5,296
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued under incentive plan, shares   585          
Shares issued under incentive plan   $ (1) 1        
Acquisition on noncontrolling interest in subsidiaries (760)           (760)
Share-based compensation 5,524   5,524     5,524  
Stock offering, shares   17,500          
Stock offering 497,758 $ 175 497,583     497,758  
Excess tax benefit from share based compensation 1,095   1,095     1,095  
Shares acquired by Nationstar related to incentive compensation awards, shares   (188)          
Shares acquired by Nationstar related to incentive compensation awards (5,442)       (5,442) (5,442)  
Other, shares   (675)          
Net income (loss) (46,842)     (48,315)   (48,315) 1,473
Ending of Period at Mar. 31, 2015 1,675,611 $ 1,084 1,091,649 594,744 (17,875) 1,669,602 6,009
Ending of Period, shares at Mar. 31, 2015   107,579          
Beginning of Period, shares at Dec. 31, 2015   108,837          
Beginning of Period at Dec. 31, 2015 1,767,377 $ 1,084 1,104,972 681,838 (29,780) 1,758,114 9,263
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Shares issued under incentive plan, shares   489          
Share-based compensation 6,843   6,843     6,843  
Shares acquired by Nationstar related to incentive compensation awards, shares   (145)          
Shares acquired by Nationstar related to incentive compensation awards (1,564)       (1,564) (1,564)  
Excess tax deficiency from share-based compensation (2,795)   (2,795)     (2,795)  
Repurchase of common stock, shares   (5,522)          
Repurchase of common stock (55,051)       (55,051) (55,051)  
Other, shares   (786)          
Other   $ 15 (15)        
Net income (loss) (133,291)     (132,389)   (132,389) (902)
Ending of Period at Mar. 31, 2016 $ 1,581,519 $ 1,099 $ 1,109,005 $ 549,449 $ (86,395) $ 1,573,158 $ 8,361
Ending of Period, shares at Mar. 31, 2016   102,873          
v3.4.0.3
Unaudited Consolidated Statements of Cash Flows - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities    
Net loss attributable to Nationstar $ (132,389,000) $ (48,315,000)
Reconciliation of net loss to net cash attributable to operating activities:    
Noncontrolling interest (902,000) 1,473,000
Share-based compensation 6,843,000 5,524,000
Excess tax deficiency (benefit) from share-based compensation 2,795,000 (1,095,000)
Net gain on mortgage loans held for sale (171,116,000) (166,994,000)
Mortgage loans originated and purchased, net of fees (4,240,116,000) (4,209,078,000)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations (486,124,000) (405,893,000)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment 4,377,242,000 4,003,126,000
Gain on repurchase of unsecured senior notes (77,000) 0
(Gain) loss on interest rate swaps and caps (8,000) 767,000
Depreciation and amortization 23,144,000 18,119,000
Amortization (accretion) of premiums (discounts) 9,878,000 (7,062,000)
Fair value changes in excess spread financing (23,699,000) 13,114,000
Fair value changes and amortization/accretion of mortgage servicing rights 286,378,000 204,200,000
Fair value change in mortgage servicing rights financing liability 13,033,000 (4,386,000)
Changes in assets and liabilities:    
Advances 152,484,000 95,436,000
Reverse mortgage interests (14,998,000) (180,793,000)
Other assets 26,111,000 18,677,000
Payables and accrued liabilities (159,895,000) 2,873,000
Net cash attributable to operating activities (331,416,000) (660,307,000)
Investing Activities    
Property and equipment additions, net of disposals (13,104,000) (11,993,000)
Purchase of forward mortgage servicing rights, net of liabilities incurred (1,530,000) (196,081,000)
Proceeds from sale of forward mortgage servicing rights 18,361,000 0
Purchase of reverse mortgage interests (55,215,000) 0
Proceeds on sale of reverse mortgage interest 450,000 0
Acquisitions, net 0 (31,276,000)
Net cash attributable to investing activities (51,038,000) (239,350,000)
Financing Activities    
Transfers (to) from restricted cash, net 24,541,000 (73,012,000)
Issuance of common stock, net of issuance costs 0 497,758,000
Debt financing costs (2,497,000) (1,549,000)
Increase in warehouse facilities 522,893,000 904,850,000
Decrease in advance facilities (79,048,000) (18,471,000)
Proceeds from HECM securitizations 281,680,000 73,082,000
Repayment of HECM securitizations (285,985,000) (26,829,000)
Issuance of excess spread financing 0 52,957,000
Repayment of excess spread financing (47,117,000) (49,516,000)
Increase (decrease) in participating interest financing in reverse mortgage interests (120,362,000) 64,781,000
Repayment of nonrecourse debt – legacy assets (3,056,000) (3,273,000)
Repurchase of unsecured senior notes (1,475,000) 0
Excess tax (deficiency) benefit from share-based compensation (2,795,000) 1,095,000
Surrender of shares relating to stock vesting (1,564,000) (5,442,000)
Repurchase of common stock (55,051,000) 0
Net cash attributable to financing activities 230,164,000 1,416,431,000
Net increase (decrease) in cash and cash equivalents (152,290,000) 516,774,000
Cash and cash equivalents at beginning of period 613,241,000 299,002,000
Cash and cash equivalents at end of period 460,951,000 815,776,000
Supplemental disclosures of cash activities    
Cash paid for interest expense 166,898,000 110,144,000
Net cash (received from) paid for income taxes 15,365,000 (609,000)
Claims made to third parties    
Claims made to third parties $ (13,910,000) $ (22,116,000)
v3.4.0.3
Nature of Business and Basis of Presentation
 3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business and Basis of Presentation
Nature of Business and Basis of Presentation

Nature of Business
Nationstar Mortgage Holdings Inc., a Delaware corporation, including its consolidated subsidiaries (collectively, Nationstar or the Company), earns fees through the delivery of servicing, origination and transaction based services related principally to single-family residences throughout the United States.

Basis of Presentation
The consolidated interim financial statements of Nationstar have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim 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 (SEC). 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 Nationstar's Annual Report on Form 10-K for the year ended December 31, 2015. The Company describes its significant accounting policies in Note 2 of the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015. During the three month period ended March 31, 2016, there were no significant changes to those accounting policies.

The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar evaluated subsequent events through the date these interim consolidated financial statements were issued.

Basis of Consolidation
The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary.

Reclassifications
Certain prior-period amounts have been reclassified to conform to the current-period presentation. As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows:

 
As presented
 
 
 
As adjusted
 
December 31, 2015
 
Reclassification
 
December 31, 2015
Other assets
$
758,969

 
$
(37,137
)
 
$
721,832

Unsecured senior notes
2,048,694

 
(22,940
)
 
2,025,754

Advance facilities
1,646,123

 
(6,433
)
 
1,639,690

Warehouse facilities
1,893,526

 
(3,206
)
 
1,890,320

Other nonrecourse debt
6,670,598

 
(4,558
)
 
6,666,040





Recent Accounting Guidance Adopted
Effective January 1, 2016, the Company adopted Accounting Standards Update No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting that could be achieved after the requisite service period be treated as a performance condition. The adoption of ASU 2014-12 did not have a material impact on our financial condition, liquidity or results of operations.

Effective January 1, 2016, the Company retrospectively adopted Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs be included in the carrying value of the related debt liability, when recognized, on the face of the balance sheet. The adoption of ASU 2015-03 was limited to balance sheet reclassification of unamortized debt issuance costs, and did not impact the Company's financial condition, liquidity or results of operations. See Reclassifications section in Note 1 for further details. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 did not have a material impact on our financial condition, liquidity or results of operations.
 
Effective January 1, 2016, the Company prospectively adopted Accounting Standards Update 2015-05, Intangibles — Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05), which was created to eliminate diversity in the reporting of fees paid by a customer in a cloud computing arrangement caused by lack of guidance. This update provides that if a cloud computing arrangement includes a software license, the license element should be accounted for as other acquired software licenses. If the cloud computing arrangement does not include a software license, then the fees should be accounted for as a service contract. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results of operations.

Recent Accounting Guidance Not Yet Adopted
Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The ASU 2014-09 was postponed resulting in effective commencement with Nationstar's quarter ending March 31, 2018. The Company is currently assessing the potential impact of ASU 2014-09 on the consolidated financial statements.

Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), creates consistency in the disclosures made by an entity when there is doubt that the entity will continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Accounting Standards Update No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, calculation of earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the Financial Accounting Standards Board's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities
 3 Months Ended
Mar. 31, 2016
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights (MSRs) and Related Liabilities
Mortgage Servicing Rights (MSR) and Related Liabilities
MSRs and Related Liabilities
March 31, 2016
 
December 31, 2015
MSRs - fair value
$
3,088,123

 
$
3,358,327

MSRs - LOCOM
7,961

 
8,646

Mortgage servicing rights
$
3,096,084

 
$
3,366,973

 
 
 
 
Mortgage servicing liabilities - LOCOM
$
18,065

 
$
25,260

 
 
 
 
Excess spread financing - fair value
$
1,161,270

 
$
1,232,086

Mortgage servicing rights financing liability - fair value
81,729

 
68,696

MSR related liabilities (nonrecourse)
$
1,242,999

 
$
1,300,782



Mortgage Servicing Rights - Fair Value
MSRs - fair value consists of rights the Company owns and records as assets to service traditional residential mortgage loans for others either as a result of a purchase transaction or from the sale and securitization of loans originated. MSRs - fair value comprise rights related to both agency and non-agency loans. The Company segregates MSRs - fair value between credit sensitive and interest sensitive pools. Interest sensitive pools are primarily impacted by changes in forecasted interest rates, which in turn impact voluntary prepayment speeds. Credit sensitive pools are primarily impacted by borrower performance under specified repayment terms, which most directly impacts involuntary prepayments and delinquency rates.

The Company assesses whether acquired portfolios are more credit sensitive or interest sensitive in nature on the date of acquisition. The Company considers numerous factors in making this assessment, including loan-to-value ratios, FICO scores, percentage of portfolio previously modified, portfolio seasoning and similar criteria. Once the determination for a pool is made, it is not changed over time.

Interest sensitive portfolios generally consist of lower delinquency single-family conforming residential forward mortgage agency loans. Credit sensitive portfolios generally consist of higher delinquency single-family non-conforming residential forward mortgage loans serviced for agency and non-agency investors.

The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs that are carried at fair value.
 
March 31, 2016
 
December 31, 2015

UPB
 
Fair Value
 
UPB
 
Fair Value
Credit sensitive
$
214,623,983

 
$
1,918,310

 
$
224,334,415

 
$
2,016,617

Interest sensitive
118,036,249

 
1,169,813

 
121,341,842

 
1,341,710

             Total
$
332,660,232

 
$
3,088,123

 
$
345,676,257

 
$
3,358,327



The activity of MSRs carried at fair value is as follows for the dates indicated:
 
Three months ended March 31,
MSRs - Fair Value
2016
 
2015
Fair value at the beginning of the period
$
3,358,327

 
$
2,949,739

Additions:
 
 
 
Servicing resulting from transfers of financial assets
39,663

 
44,232

Purchases of servicing assets
1,643

 
238,413

Dispositions:
 
 
 
Dispositions
(18,621
)
 
—

Changes in fair value:
 
 
 
Due to changes in valuation inputs or assumptions used in the valuation model
(235,581
)
 
(109,684
)
Other changes in fair value
(57,308
)
 
(100,502
)
Fair value at the end of the period
$
3,088,123

 
$
3,022,198


Servicing resulting from transfers of financial assets comprises the fair value of the newly originated MSRs at the time the loan is funded and securitized.
During the first quarter of 2016, Nationstar sold MSRs with an unpaid principal balance of $1.9 billion and was retained as the subservicer for the sold assets. The Company evaluated the sale accounting requirements related to this transaction given the continued involvement as the subservicer and concluded that the transaction qualifies for sales accounting.

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:
Credit Sensitive
March 31, 2016
 
December 31, 2015
Discount rate
11.6
%
 
11.6
%
Total prepayment speeds
16.4
%
 
16.5
%
Expected weighted-average life
5.8 years

 
5.9 years

 
 
 
 
Interest Sensitive
March 31, 2016
 
December 31, 2015
Discount rate
9.2
%
 
9.1
%
Total prepayment speeds
14.1
%
 
12.4
%
Expected weighted-average life
5.6 years

 
6.1 years


The following table shows the hypothetical effect on the fair value of the MSRs using certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at March 31, 2016 and December 31, 2015:
 
Discount Rate
 
Total Prepayment
Speeds
 
100 bps
Adverse
Change
 
200 bps
Adverse
Change
 
10%
Adverse
Change
 
20%
Adverse
Change
March 31, 2016
 
 
 
 
 
 
 
Mortgage servicing rights
$
(105,221
)
 
$
(206,145
)
 
$
(132,489
)
 
$
(253,694
)
December 31, 2015
 
 
 
 
 
 
 
Mortgage servicing rights
$
(123,115
)
 
$
(237,779
)
 
$
(132,277
)
 
$
(253,028
)


These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation 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, the changes in the fair value of Nationstar's excess spread financing liability partially offsets the change in the fair value of Nationstar's mortgage servicing rights.

MSRs - Lower of Cost or Market (LOCOM)
Nationstar owns the right to service certain reverse mortgages with an unpaid principal balance of $29.0 billion and $29.9 billion as of March 31, 2016 and December 31, 2015, respectively. Nationstar carries these mortgage servicing rights at the lower of cost or market and performs an impairment analysis at the end of each reporting period. In determining fair value for the purpose of impairment, Nationstar utilizes a variety of assumptions, with the primary assumptions being discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At March 31, 2016 and December 31, 2015, no impairment was identified.

The activity of MSRs carried at amortized cost is as follows for the dates indicated:
 
Three months ended March 31,
 
2016
 
2015
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Activity of MSRs - LOCOM
 
 
 
 
 
 
 
Balance at the beginning of the period
$
8,646

 
$
25,260

 
$
11,582

 
$
65,382

Additions:
 
 
 
 
 
 
 
Purchase/assumptions of servicing rights/obligations
—

 
—

 
—

 
—

Deductions:
 
 
 
 
 
 
 
Amortization/accretion
(685
)
 
(7,195
)
 
(798
)
 
(6,783
)
Balance at end of the period
$
7,961

 
$
18,065

 
$
10,784

 
$
58,599

Fair value at end of period
$
28,129

 
$
2,416

 
$
32,618

 
$
55,579



For the three months ended March 31, 2016 and 2015, the Company accreted $7.2 million and $6.8 million, respectively, of the mortgage servicing liability. Issuers of HECMs are responsible for repurchasing any loans out of the HMBS pool when the outstanding principal balance of the related HECM loan is equal to or greater than 98% of the lesser of the appraised value of the underlying property at origination or $625 thousand.

Excess Spread Financing at Fair Value
In order to finance the acquisition of certain MSRs on various pools of residential mortgage loans (the Portfolios), Nationstar entered into multiple sale and assignment agreements with certain entities formed by New Residential Investment Corp. (New Residential) in which New Residential and/or certain funds managed by Fortress Investment Group LLC (Fortress) own an interest. Nationstar, in transactions accounted for as financing arrangements, sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan. Nationstar has elected fair value accounting for these financing agreements.

Servicing fees associated with a traditional MSR can be segregated into a base servicing fee and an excess servicing fee. The base servicing fee, along with ancillary income, is meant to cover costs incurred to service the specified pool plus a reasonable profit margin. The remaining servicing fee is considered excess.
Nationstar retains all the base servicing fee and ancillary revenues associated with servicing the Portfolios and retains a portion of the excess servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions.

Contemporaneous with the above, Nationstar entered into refinanced loan agreements with New Residential. Should Nationstar refinance any loan in the Portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above, which is the primary driver of the recapture rate assumption.

The range of various assumptions used in Nationstar's valuation of Excess Spread financing were as follows:
Excess Spread Financing
Prepayment Speeds
 
Average
Life (Years)
 
Discount
Rate
 
Recapture Rate
March 31, 2016
 
 
 
 
 
 
 
Low
8.5%
 
4.1
 
8.5%
 
6.7%
High
15.9%
 
7.2
 
14.1%
 
28.9%
Weighted-average
11.9%
 
5.8
 
11.0%
 
18.3%
December 31, 2015
 
 
 
 
 
 
 
Low
7.4%
 
4.2
 
8.5%
 
6.8%
High
17.1%
 
7.8
 
14.1%
 
30.0%
Weighted-average
11.6%
 
5.9
 
11.2%
 
17.7%

The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated:
 
Discount Rate
 
Total Prepayment
Speeds
 
100 bps
Adverse
Change
 
200 bps
Adverse
Change
 
10%
Adverse
Change
 
20%
Adverse
Change
March 31, 2016
 
 
 
 
 
 
 
Excess spread financing
$
43,552

 
$
90,412

 
$
42,394

 
$
88,488

December 31, 2015
 
 
 
 
 
 
 
Excess spread financing
$
41,806

 
$
86,791

 
$
36,530

 
$
76,373



As the cash flow assumptions utilized in determining the fair value amounts in the excess spread financing are based on the related cash flow assumptions utilized in the financed MSRs, any fair value changes recognized in the MSRs would inherently have an inverse impact on the carrying amount in the related excess spread financing. For example, while an increase in discount rates would negatively impact the value of the Company's MSRs, it would reduce the carrying value of the associated excess spread financing liability.

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation 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.
Mortgage Servicing Rights Financing
From December 2013 through June 2014, Nationstar entered into agreements to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms to New Residential and certain unaffiliated third-parties. Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. Consequently, Nationstar records a MSR financing liability associated with this financing transaction. See Note 18, Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC for additional information.

Nationstar elected to measure the mortgage servicing rights financings at fair value with all changes in fair value recorded as a charge or credit to servicing related revenue in the consolidated statements of operations. The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows:
 
March 31, 2016
 
December 31, 2015
Advance financing rates
3.1
%
 
3.0
%
Annual advance recovery rates
20.5
%
 
20.9
%


The following table provides a breakout of revenue associated with servicing assets and liabilities.
 
Three months ended March 31,
Service Fee Income (Loss)
2016
 
2015
Contractually specified servicing fees
$
281,088

 
$
276,444

Incentive and modification income
23,801

 
22,865

Late fees
18,523

 
17,583

Other service-related income
30,294

 
33,120

Remittances to counterparties for contractual transfer of servicing assets
(74,387
)
 
(74,657
)
Mark-to-market
(255,008
)
 
(112,443
)
Amortization
(48,662
)
 
(62,915
)
Total service fee income (loss)
$
(24,351
)
 
$
99,997
v3.4.0.3
Advances, Net
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Advances, Net
Advances, Net
 
March 31, 2016
 
December 31, 2015
Agency
$
1,280,744

 
$
1,396,176

Non-agency
789,855

 
826,907

Total advances, net
$
2,070,599

 
$
2,223,083



Servicing advances on agency securities represent a receivable from the respective agency and are recovered from cash collections in a securitization trust and/or a requested reimbursement from the agency.
Servicing advances on non-agency securities are typically recovered first at a loan-level from proceeds of the mortgage loans for which the advance was made, and then if loan-level funds are determined to be ultimately insufficient, from cash collected from all borrowers in a securitization trust.
As of March 31, 2016 and December 31, 2015, Nationstar carried an allowance for uncollectible servicer advances of $37.7 million and $29.9 million, respectively. Advance balances are reflected net of these reserves.
v3.4.0.3
Reverse Mortgage Interests
 3 Months Ended
Mar. 31, 2016
Reverse Mortgage Interests [Abstract]  
Reverse Mortgage Interests
Reverse Mortgage Interests

 
March 31, 2016
 
December 31, 2015
Participating Interests
$
5,752,917

 
$
5,864,329

Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively
682,797

 
682,137

Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively
1,093,157

 
967,857

Reverse mortgage loans held for sale
55,215

 
—

Total reverse mortgage interests
$
7,584,086

 
$
7,514,323



Participating interests
Participating interests consists of reverse mortgage interests which have been transferred to Ginnie Mae and subsequently securitized through the issuance of Home Equity Conversion Mortgage Backed Securities (HMBS).

Other interests securitized
Other interests securitized consists of reverse mortgage interests which have been transferred to private securitization trusts and are subject to nonrecourse debt. Nationstar evaluated these trusts and concluded that they meet the definition of a VIE and Nationstar is the primary beneficiary. Accordingly, these transactions are treated as secured borrowings and both the reverse mortgage interests and the related indebtedness are retained on Nationstar’s balance sheet. See Note 8, Indebtedness and Note 10, Securitizations and Financing for additional information.

Unsecuritized interests
Unsecuritized interests consist primarily of the following: (1) $747.5 million related to repurchased Ginnie Mae HECMs; (2) $135.0 million related to HECM-related receivables; (3) $99.9 million related to claims accounts receivable; (4) $85.4 million related to funded borrower draws not yet securitized; (5) $21.4 million related to participating interests and advance receivable on an acquired HECM portfolio; (6) $27.3 million related to foreclosed assets; and (7) $9.7 million related to the HECM service fees receivable.

Under the Ginnie Mae HMBS program, the Company is required to repurchase a HECM loan from the HMBS pool when the outstanding principal balance of the HECM loan is equal to or greater than 98% of the maximum claim amount. Nationstar routinely securitizes eligible reverse mortgage interests. These transactions are treated as secured borrowings with both the reverse mortgage interests and related indebtedness retained on Nationstar’s balance sheet. See Note 8, Indebtedness for additional information.

Reverse mortgage loans held for sale
During March 2016, Nationstar executed an option to purchase HECM loans related to a reverse mortgage loan trust, of which Nationstar was the master servicer and holder of clean-up call rights. The Company acquired reverse mortgage loans for $55.2 million with outstanding unpaid principal balance totaling $96.5 million, recorded at lower of cost or fair value. Nationstar plans to sell the loans acquired from the transaction and accordingly has classified as held for sale.

Reserves for servicing losses
Reserves for servicing losses are reflected through the Company's provision for losses and consist of (1) financial and (2) operational losses related to the servicing of HECM loans. Financial exposure is comprised of the cost of doing business related to servicing the HECM product and statutory items specific to investor types. Whereas operational losses are defined as un-reimbursable debenture interest curtailments imposed for missed servicing timelines. The Company assesses the reserve based on expected net realizable value of outstanding claims.
v3.4.0.3
Mortgage Loans Held for Sale and Investment
 3 Months Ended
Mar. 31, 2016
Mortgage Loans Held for Sale and Investment [Abstract]  
Mortgage Loans Held for Sale and Investment
Mortgage Loans Held for Sale and Investment

Mortgage Loans Held for Sale
Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to government-sponsored enterprises (GSEs) or other third-party investors in the secondary market. Nationstar focuses on assisting customers currently in the Company's servicing portfolio with refinances of loans or new home purchases (referred to as recapture). Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis.

Mortgage loans held for sale consist of the following for the dates indicated:
 
March 31, 2016
 
December 31, 2015
Mortgage loans held for sale – unpaid principal balance
$
1,792,620

 
$
1,373,607

Mark-to-market adjustment(1)
88,034

 
56,084

Total mortgage loans held for sale
$
1,880,654

 
$
1,429,691


(1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations.

Nationstar accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When a loan is placed on non-accrual status, Nationstar reverses the interest that had been accrued but not yet received.
The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated:
 
March 31, 2016
 
December 31, 2015
Mortgage Loans Held for Sale - Unpaid Principal Balance
UPB
 
Fair Value
 
UPB
 
Fair Value
Non-accrual
$
31,253

 
$
28,030

 
$
31,390

 
$
28,996

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated:
Mortgage Loans Held for Sale - Unpaid Principal Balance
March 31, 2016
 
December 31, 2015
Foreclosure
$
21,809

 
$
16,174


A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table:
 
 
Three months ended March 31,
 
2016
 
2015
Mortgage loans held for sale – beginning balance
$
1,429,691

 
$
1,277,931

Mortgage loans originated and purchased, net of fees
4,240,116

 
4,209,078

Repurchase of loans out of Ginnie Mae securitizations
222,712

 
393,550

Claims made to third parties(1)
(13,910
)
 
(22,116
)
Proceeds on sale of and payments of mortgage loans held for sale
(4,134,959
)
 
(3,976,647
)
Gain on sale of mortgage loans(2)
137,004

 
114,202

Mortgage loans held for sale – ending balance
$
1,880,654

 
$
1,995,998



(1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure.
(2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations.

Nationstar has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to re-pool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. For the three months ended March 31, 2016 and 2015, the Company repurchased a total of $222.7 million and $393.6 million loans, respectively, out of Ginnie Mae pools primarily in connection with loan modifications and loan resolution activity as part of Nationstar's contractual obligations as the servicer of the loans.

Mortgage Loans Held for Investment, Net
Mortgage loans held for investment, net as of the dates indicated include: 
 
March 31, 2016
 
December 31, 2015
Mortgage loans held for investment, net – unpaid principal balance
$
240,194

 
$
250,033

Transfer discount:
 
 
 
Accretable
(14,398
)
 
(14,631
)
Non-accretable
(55,683
)
 
(58,203
)
Allowance for loan losses
(3,549
)
 
(3,549
)
Total mortgage loans held for investment, net
$
166,564

 
$
173,650



The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: 
 
Three months ended March 31, 2016
 
Twelve months ended December 31, 2015
Accretable Yield
 
 
 
Balance at the beginning of the period
$
14,631

 
$
15,503

Accretion
(668
)
 
(2,727
)
Reclassifications from nonaccretable discount
435

 
1,855

Balance at the end of the period
$
14,398

 
$
14,631


Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or modified servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.4 million of transfer discount to non-accretable yield during the three months ended March 31, 2016 and $1.9 million of transfer discount from non-accretable yield during the year ended December 31, 2015. Further, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment.

Loan delinquency and Loan-to-Value Ratio (LTV) are common credit quality indicators that Nationstar monitors and utilizes in its evaluation of the adequacy of the allowance for loan losses, of which the primary indicator of credit quality is loan delinquency status. LTV refers to the ratio of the loan’s unpaid principal balance to the property’s collateral value. Loan delinquencies and unpaid principal balances are updated monthly based upon collection activity. Collateral values are updated from third party providers on a periodic basis. The collateral values used to derive LTVs are obtained at various dates, but the majority were within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, the Company takes its last known value provided by a third party and then adjusts the value based on the applicable home price index. The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated:
Mortgage Loans Held for Investment - Unpaid Principal Balance
March 31, 2016
 
December 31, 2015
Foreclosure
$
40,532

 
$
41,406
v3.4.0.3
Other Assets
 3 Months Ended
Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets
Other Assets

Other assets consist of the following:
 
March 31, 2016
 
December 31, 2015
Receivables from trusts, agencies and prior servicers, net (1)
$
186,268

 
$
229,452

Accrued revenue
164,417

 
180,036

Loans subject to repurchase right from Ginnie Mae
179,881

 
117,163

Goodwill
71,141

 
71,141

Intangible assets
48,006

 
49,869

Deferred financing costs
5,915

 
5,713

Prepaid expenses
18,213

 
19,800

Receivables from affiliates, net
7,219

 
7,510

Real estate owned (REO), net
3,743

 
3,595

Other
48,896

 
37,553

Total other assets
$
733,699

 
$
721,832



(1) Net of reserves totaling of $167.7 million and $98.8 million as of March 31, 2016 and December 31, 2015, respectively. The increase in the reserves is primarily due to the movement of reserves from mortgage servicing rights attributable to liquidated loans that still have outstanding balances during the first quarter of 2016 in the amount of $64.7 million.

Receivables from trusts, agencies and prior services, net is primarily comprised of prior servicer receivables and custodial receivables acquired in asset acquisitions.

Accrued revenue is primarily comprised of service fees earned but not received.
For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer has the unilateral right to repurchase, without Ginnie Mae’s prior authorization, any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase a delinquent loan, Nationstar has effectively regained control over the loan and under GAAP, must re-recognize the loan on its consolidated balance sheets and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $179.9 million at March 31, 2016 and $117.2 million at December 31, 2015.

The increase in other is primarily due to $10.3 million that is expected to be received from counter parties on unsettled trades of securities at March 31, 2016.

Acquisitions
In January 2015, Xome Holdings LLC (Xome), a wholly owned subsidiary of Nationstar, acquired Experience 1, Inc., the holding company for Title365, Xome Signing (previously known as Trusted Signing), and technology subsidiaries Xome Labs (previously known as X1 Labs) and Xome Analytics (previously known as X1 Analytics) (collectively, Title365), a title agency and technology services provider for title insurance and escrow services. The total consideration was $35.9 million in cash. Related to the acquisition, the Company recorded $20.3 million in goodwill and $19.1 million in intangible assets as well as $3.5 million of other net liabilities. The recognized intangible assets primarily relate to customer relationships, trade names and technology.

In May 2015, Xome acquired Quantarium, LLC, a real estate analytics company that has developed industry-leading automated home valuation models utilizing advanced statistical methods and complex proprietary algorithms. Total consideration paid was $12.0 million. In June 2015, Xome acquired substantially all of the assets of GoPaperless Solutions, a leader in digital signature and document management Software-as-a-Service solutions. Total consideration paid was $2.0 million. Related to the acquisitions, the Company tentatively recorded an additional $3.4 million in goodwill and $10.4 million in intangible assets as well as $0.2 million of other net assets.
v3.4.0.3
Derivative Financial Instruments
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments

Derivatives instruments utilized by Nationstar primarily include interest rate lock commitments (IRLCs), Loan Purchase Commitments (LPCs), Forward MBS trades, Eurodollar futures, interest rate swap agreements and interest rate caps. Nationstar enters into IRLCs with prospective borrowers. These commitments are carried at fair value, with any changes in fair value recorded in earnings as a component of net gain on mortgage loans held for sale. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based on observable market data and is recorded in derivative financial instruments within the consolidated balance sheets. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded.

Nationstar actively manages the risk profiles of its IRLCs and mortgage loans held for sale on a daily basis. To manage the price risk associated with IRLCs, Nationstar enters into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, Nationstar enters into forward sale commitments to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of MBS and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of derivative financial instruments in the consolidated balance sheets. The changes in value on forward sales of MBS and forward sale commitments are recorded as a charge or credit to net gain on mortgage loans held for sale.

Associated with the Company's derivatives are $10.3 million and $3.9 million in collateral deposits on derivative instruments recorded in other assets and payables and accrued liabilities on the Company's balance sheets as of March 31, 2016 and December 31, 2015, respectively. The Company does not offset fair value amounts recognized for derivative instruments and the amounts collected and/or deposited on derivative instruments in its consolidated balance sheets.

Nationstar enters into contracts with other mortgage lenders to purchase residential mortgage loans at a future date, which are referred to as LPCs. LPCs are accounted for as derivatives and recorded at fair value in derivative financial instruments on Nationstar's consolidated balance sheet. Changes in LPCs are recorded as a charge or credit to net gain on mortgage loans held for sale.

In addition, Nationstar enters into Eurodollar futures contracts to replicate the economic hedging results achieved with interest rate swaps or offset the changes in value of its forward sales of certain agency securities. The Company has not designated its futures contracts as hedges for accounting purposes. Eurodollar futures are accounted for as derivatives and recorded at fair value in derivative financial instruments. Realized and unrealized changes in fair value are recorded as a charge or credit to net gain on mortgage loans held for sale.

Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and
securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Interest rate swaps are accounted for as derivative financial instruments. Unless designated as an accounting hedge, Nationstar records gains and losses on interest rate swaps as a component of gain/(loss) on interest rate swaps and caps in Nationstar’s consolidated statements of operations. Unrealized losses on designated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows.

During the second quarter of 2015, Nationstar entered into two interest rate caps with notional values of $800 million and $400 million, respectively, to mitigate interest rate risk associated with servicing advance facilities. Expenses associated with interest rate caps are recorded as a gain/(loss) on interest rate swaps and caps in Nationstar's consolidated statements of operations. During the fourth quarter of 2015, the Company entered into a $100 million interest rate cap. The Company did not elect hedge accounting related to these agreements and they expired during the first quarter of 2016.
The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated:
 
Expiration
Dates
 
Outstanding
Notional
 
Fair
Value
 
Recorded
Gains /
(Losses)
Three months ended March 31, 2016
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
Loan sale commitments
2016
 
$
123,810

 
$
(562
)
 
$
(814
)
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
3,272,423

 
99,462

 
10,324

Forward MBS trades
2016
 
350,830

 
346

 
(5,777
)
LPCs
2016
 
615,172

 
8,944

 
5,072

Eurodollar futures
2016-2021
 
6,000

 
11

 
(49
)
Interest rate swaps
2017
 
11,481

 
405

 
(102
)
Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
4,289

 
37

 
(32
)
       Forward MBS trades
2016
 
3,313,327

 
19,540

 
(15,794
)
LPCs
2016
 
68,933

 
233

 
1,221

Eurodollar futures
2016-2021
 
381,000

 
594

 
(518
)
Interest rate swaps
2017
 
11,481

 
431

 
110

 
 
 
 
 
 
 
 
Twelve months ended December 31, 2015
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
Loan sale commitments
2016
 
$
175,570

 
$
252

 
$
256

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
2,767,927

 
89,138

 
1,236

Forward MBS trades
2016
 
1,665,894

 
6,123

 
5,839

LPCs
2016
 
387,891

 
3,872

 
1,873

Eurodollar futures
2016-2021
 
176,000

 
60

 
59

Interest rate swaps and caps
2016-2017
 
845,876

 
506

 
(359
)
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
2,304

 
5

 
2

Forward MBS trades
2016
 
1,807,418

 
3,746

 
14,614

LPCs
2016
 
314,047

 
1,454

 
(1,406
)
Eurodollar futures
2016-2021
 
95,000

 
76

 
(69
)
Interest rate swaps and caps
2016-2017
 
12,543

 
542

 
(439
)
 
 
 
 
 
 
 
 
v3.4.0.3
Indebtedness
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Indebtedness
Indebtedness

Notes Payable
 
 
 
 
 
 
 
 
 
March 31, 2016
 
December 31, 2015
 
Interest Rate
 
Maturity Date
 
Collateral
 
Capacity Amount
 
Outstanding
 
Collateral Pledged
 
Outstanding
 
Collateral pledged
Advance Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS advance financing facility
LIBOR+2.50%
 
March
2017
 
Servicing advance receivables
 
$
130,000

 
$
71,661

 
$
65,022

 
$
82,208

 
$
89,221

Nationstar agency advance financing facility
LIBOR+2.00%
 
January
2017
 
Servicing advance receivables
 
400,000

 
302,386

 
319,398

 
310,316

 
364,352

MBS advance financing facility (2012)
LIBOR+5.00%
 
May 31, 2016
 
Servicing advance receivables
 
50,000

 
44,594

 
53,380

 
50,000

 
69,942

Nationstar mortgage advance receivable
trust
LIBOR+ 2.00%
 
June
2016
 
Servicing advance receivables
 
500,000

 
330,865

 
389,681

 
335,408

 
394,110

MBS servicer advance facility (2014)
LIBOR+3.50%
 
August
2016
 
Servicing advance receivables
 
125,000

 
121,893

 
191,473

 
105,657

 
185,392

Nationstar agency advance receivables trust
LIBOR+2.00%
 
October
2017
 
Servicing advance receivables
 
1,400,000

 
695,760

 
752,588

 
762,534

 
822,504

Advance facilities principal amount
 
 
 
 
 
 
 
 
1,567,159

 
1,771,542

 
1,646,123

 
1,925,521

Debt issuance costs
 
 
 
 
 
 
 
 
(3,409
)
 
—

 
(6,433
)
 
—

Advance facilities, net of unamortized debt issuance costs
 
 
 
 
 
 
 
 
$
1,563,750


$
1,771,542

 
$
1,639,690

 
$
1,925,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2016
 
December 31, 2015
 
Interest Rate
 
Maturity Date
 
Collateral
 
Capacity Amount
 
Outstanding
 
Collateral Pledged
 
Outstanding
 
Collateral pledged
Warehouse Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$1.3 billion warehouse facility
LIBOR+2.0% to 2.875%
 
October
2016
 
Mortgage loans or MBS
 
$
1,300,000

 
$
887,423

 
$
941,098

 
$
633,694

 
$
677,775

$1.0 billion warehouse facility
LIBOR+1.75% to 3.25%
 
June
2016
 
Mortgage loans or MBS
 
1,000,000

 
725,773

 
755,697

 
544,951

 
621,526

$500 million warehouse facility
LIBOR+1.75% to 2.75%
 
September
2016
 
Mortgage loans or MBS
 
500,000

 
271,662

 
277,933

 
174,702

 
178,923

$500 million warehouse facility
LIBOR+ 2.00% to 2.50%
 
November
2016
 
Mortgage loans or MBS
 
500,000

 
204,082

 
224,325

 
257,479

 
274,497

$350 million warehouse facility
LIBOR+2.20% to 4.50%
 
April
2017
 
Mortgage loans or MBS
 
350,000

 
21,485

 
29,359

 
97,790

 
111,541

$200 million warehouse facility
LIBOR+1.50%
 
April
2017
 
Mortgage loans or MBS
 
200,000

 
67,381

 
69,202

 
8,531

 
9,052

$300 million warehouse facility
LIBOR + 2.25%
 
December
2016
 
Mortgage loans or MBS
 
300,000

 
32,723

 
38,536

 
23,014

 
27,769

$200 million warehouse facility
LIBOR + 2.75% to 3.875%
 
November
2016
 
Mortgage loans or MBS
 
200,000

 
152,832

 
191,839

 
45,106

 
50,083

$75 million warehouse facility (HCM) (1)
LIBOR+ 2.25% to 2.875%
 
October
2016
 
Mortgage loans or MBS
 
75,000

 
24,913

 
29,547

 
53,102

 
59,563

$100 million warehouse facility (HCM)
LIBOR + 2.50% to 2.75%
 
November
2016
 
Mortgage loans or MBS
 
100,000

 
28,392

 
29,613

 
55,157

 
60,581

Warehouse facilities principal amount
 
 
 
 
 
 

 
2,416,666

 
2,587,149

 
1,893,526

 
2,071,310

Debt issuance costs
 
 
 
 
 
 
 
 
(2,171
)
 
—

 
(3,206
)
 
—

Warehouse facilities, net of unamortized debt issuance costs
 
 
 
 
 
 
 
 
$
2,414,495

 
$
2,587,149

 
$
1,890,320

 
$
2,071,310

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
Mortgage loans, net
 
 
 
 
 
 
 
 
$
1,782,803

 
$
1,867,637

 
$
1,539,457

 
$
1,681,352

Reverse mortgage interests, net
 
 
 
 
 
 
 
$
631,692

 
$
719,512

 
$
350,863

 
$
389,958



(1) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM).

Unsecured Senior Notes

A summary of the balances of unsecured senior notes is presented below:
 
March 31, 2016
 
December 31, 2015
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018
$
475,000

 
$
475,000

$375 million face value, 9.625% interest rate payable semi-annually, due May 2019
362,074

 
362,750

$400 million face value, 7.875% interest rate payable semi-annually, due October 2020
400,425

 
400,448

$600 million face value, 6.500% interest rate payable semi-annually, due July 2021
595,760

 
596,955

$300 million face value, 6.500% interest rate payable semi-annually, due June 2022
213,541

 
213,541

Unsecured senior notes principal amount, subtotal
2,046,800

 
2,048,694

Debt issuance costs
(21,535
)
 
(22,940
)
Unsecured senior notes, net of unamortized debt issuance costs
$
2,025,265

 
$
2,025,754




Nationstar repurchased $1,475 thousand in principal amount of outstanding notes during the first quarter of 2016 at a discount resulting in a gain of $77 thousand. The repurchase price included the principal amount of the note, plus accrued and unpaid interest.

The indentures for the unsecured senior notes contain various covenants and restrictions that limit the ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees.

The indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar 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 and additional interest, if any, to the redemption dates.

Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% 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 and additional interest, if any, to the redemption dates, subject to compliance with certain conditions.
The ratios included in the indentures for the unsecured senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio.
As of March 31, 2016, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows:
Year
Amount
2016
$
—

2017
—

2018
475,000

2019
362,074

2020
400,425

Thereafter
809,301

Unsecured senior notes principal amount
2,046,800

Unamortized debt issuance costs
(21,535
)
Unsecured senior notes, net of unamortized debt issuance costs
$
2,025,265


Other Nonrecourse Debt
A summary of the balances of other nonrecourse debt is presented below:
 
March 31, 2016
 
December 31, 2015
Participating interest financing
$
5,833,773

 
$
5,947,407

2014-1 HECM securitization
—

 
226,851

2015-1 HECM securitization
199,309

 
222,495

2015-2 HECM securitization
183,569

 
209,030

2016-1 HECM securitization
272,115

 
—

Nonrecourse debt - legacy assets
62,188

 
64,815

Other nonrecourse debt principal amount
6,550,954

 
6,670,598

Unamortized debt issuance costs
(5,758
)
 
(4,558
)
Other nonrecourse debt, net of unamortized debt issuance costs
$
6,545,196

 
$
6,666,040


Participating Interest Financing
Participating interest financing represents the obligation to Ginnie Mae related to the transfer of reverse mortgage interests and subsequent securitization through issuance of HMBS. Nationstar has accounted for these securitizations as secured borrowings, retaining the initial reverse mortgage interests on its consolidated balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s consolidated balance sheet. Monthly cash flows generated from the HECM loans are used to service the HMBS through securitization of advances on the HECM loans. The interest rate is based on the underlying HMBS rate with a range of 0.7% to 7.0%.

HECM Securitizations
From time to time, Nationstar securitizes its interests in reverse mortgages. These transactions provide investors with the ability to invest in a pool of non-performing Federal Housing Administration (FHA) insured HECM loans secured by one to four-family residential properties and a pool of REO properties acquired through foreclosure in connection with HECM loans. The transactions provide Nationstar with access to liquidity for the non-performing HECM loan portfolio, ongoing servicing fees, and potential residual returns. The transactions are structured as secured borrowings with the reverse mortgage loans included in the consolidated financial statements as reverse mortgage interests and the related financing included in other nonrecourse debt.

During December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1 Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. As part of the securitization, Nationstar retained a portion of the offered Class A notes of approximately $70.4 million as well as the Class M Notes with an outstanding note balance of $36.2 million. A portion of the notes retained by Nationstar represent subordinated beneficial interests. During the first quarter 2015, the Company sold the remaining retained portions of the Class A and the Class M notes for total proceeds of $73.1 million. During January 2016, Nationstar executed an optional redemption of the notes within HECM Loan Trust 2014-1.  The Company re-securitized the collateral from the transaction and achieved a lower cost of funds within HECM Loan Trust 2016-1.

During June 2015, Nationstar Mortgage LLC completed the securitization of approximately $269.4 million in Nationstar HECM Loan Trust 2015-1 Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of May 2018. No portion of the notes were retained by the Company as of March 31, 2016.

During November 2015, Nationstar Mortgage LLC completed the securitization of approximately $217.3 million in Nationstar HECM Loan Trust 2015-2 Mortgage Backed Securities. The notes were issued under three separate classes, comprised of Class A Notes, Class M1 Notes and Class M2 Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of November 2025. No portion of the notes were retained by the Company as of March 31, 2016.

During March 2016, Nationstar Mortgage LLC completed the securitization of approximately $281.7 million in Nationstar HECM Loan Trust 2016-1 Mortgage Backed Securities. The notes were issued as three separate classes, comprised of Class A Notes, Class M1 Notes and Class M2 Notes. This transaction was accounted for as a secured borrowing. The notes have a final maturity date of February 2026. No portion of the notes were retained by the Company as of March 31, 2016.

Nonrecourse Debt–Legacy Assets
During November 2009, Nationstar completed the securitization of approximately $222.0 million of Asset Backed Securities (ABS), which was accounted for as a secured borrowing. This structure resulted in Nationstar carrying the securitized mortgage loans on its consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt of $62.2 million at March 31, 2016 and $64.8 million at December 31, 2015. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.50%, which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $236.0 million and $242.4 million at March 31, 2016 and December 31, 2015, respectively. The timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The unpaid principal balance on the outstanding notes was $72.3 million and $75.4 million at March 31, 2016 and December 31, 2015, respectively.

Financial Covenants
The Company's borrowing arrangements and credit facilities contain various financial covenants which primarily relate to required tangible net worth amounts, liquidity reserves, leverage requirements, and profitability requirements. As a result of the decrease in interest rates during the three month period ended March 31, 2016, Nationstar recorded a charge to service related revenue for changes in fair value associated with the Company's MSRs recorded at fair value. As a result of the change, Nationstar was unable to meet the profitability requirement in one outstanding warehouse facility and one MBS facility. Nationstar received a waiver from these financial institutions on these profitability requirements for the period ended March 31, 2016. After giving effect to these waivers, the Company was in compliance with all required financial covenants as of March 31, 2016.

Nationstar is required to maintain a minimum tangible net worth of at least $681.7 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. At March 31, 2016, Nationstar was in compliance with these minimum tangible net worth requirements.
v3.4.0.3
Payables and Accrued Liabilities
 3 Months Ended
Mar. 31, 2016
Payables and Accruals [Abstract]  
Payables and Accrued Liabilities
Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following:
 
March 31, 2016
 
December 31, 2015
Payables to servicing and subservicing investors
$
447,996

 
$
483,535

Loans subject to repurchase from Ginnie Mae
179,881

 
117,163

Accrued bonus and payroll
68,700

 
96,381

Payables to GSEs
81,132

 
87,748

Payable to insurance carriers and insurance cancellation reserves
71,174

 
69,936

Accrued interest
63,675

 
61,071

Repurchase reserves
26,015

 
26,404

Payables to securitization trusts
20,450

 
24,910

MSR purchases payable including advances
9,702

 
21,851

Other
170,675

 
307,388

Total payables and accrued liabilities
$
1,139,400

 
$
1,296,387



Payables to Servicing and Subservicing Investors, Payables to GSEs, and Payables to Securitization Trusts
Payables to servicing and subservicing investors represent amounts due to investors in connection with loans serviced and that are paid from collections of the underlying loans, insurance proceeds or at time of property disposal.

Loans Subject to Repurchase from Ginnie Mae
See Note 6, Other Assets for a description of assets and liabilities related to Loans subject to repurchase from Ginnie Mae.

Payable to Insurance Carriers and Insurance Cancellation Reserves
Payable to insurance carriers and insurance cancellation reserves consist of insurance premiums received from borrower payments awaiting disbursement to the insurance carrier and/or amounts due to third party investors on liquidated loans.
v3.4.0.3
Securitizations and Financings
 3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Securitizations and Financings
Securitizations and Financings

Variable Interest Entities (VIEs)
In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs) determined to be a VIE, which primarily consists of securitization trusts established for a limited purpose. Generally, these SPEs are formed for the purpose of securitization transactions in which Nationstar transfers assets to an SPE, which then issues to investors various forms of debt obligations supported by those assets. In these securitization transactions, Nationstar typically receives cash and/or other interests in the SPE as proceeds for the transferred assets. Nationstar will typically retain the right to service the transferred receivables and to repurchase the transferred receivables from the SPE if the outstanding balance of the receivables falls to a level where the cost exceeds the benefits of servicing the transferred receivables. All debt obligations issued from the VIEs is non-recourse to Nationstar.

Nationstar evaluates its interest in certain entities to determine if these entities meet the definition of a VIE and whether the Company is the primary beneficiary and should consolidate the entity based on the variable interests it held both at inception and when there is a change in circumstances that require a reconsideration.

Nationstar has determined that the SPEs created in connection with the (i) Nationstar Home Equity Loan Trust 2009-A, (ii) Nationstar Mortgage Advance Receivables Trust (NMART), (iii) Nationstar Agency Advance Financing Trust (NAAFT), (iv) Nationstar Advance Agency Receivables Trust (NAART) should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidated three reverse mortgage SPEs which are (v) Nationstar HECM Loan Trust 2015-1, (vi) Nationstar HECM Loan Trust 2015-2, (vii) Nationstar HECM Loan Trust 2016-1 and it is the primary beneficiary.

A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated:
 
 
March 31, 2016
 
December 31, 2015
 
Transfers
Accounted for as
Secured
Borrowings
 
Reverse Secured Borrowings
 
Transfers
Accounted for as
Secured
Borrowings
 
Reverse Secured Borrowings
Assets
 
 
 
 
 
 
 
Restricted cash
$
107,176

 
$
24,962

 
$
94,361

 
$
36,089

Reverse mortgage interests, net
—

 
6,435,794

 
—

 
6,546,466

Advances
1,461,733

 
—

 
1,580,966

 
—

Mortgage loans held for investment, net
167,222

 
—

 
172,810

 
—

Derivative financial instruments
—

 
—

 
7

 
—

Other assets
4,639

 
—

 
4,538

 
—

Total assets
$
1,740,770

 
$
6,460,756

 
$
1,852,682

 
$
6,582,555

Liabilities
 
 
 
 
 
 
 
Advance facilities
$
1,329,011

 
$
—

 
$
1,408,258

 
$
—

Payables and accrued liabilities
2,173

 
498

 
2,116

 
665

Nonrecourse debt–legacy assets
62,188

 
—

 
64,815

 
—

2014-1 HECM securitization
—

 
—

 
—

 
226,851

2015-1 HECM securitization
—

 
199,309

 
—

 
222,495

2015-2 HECM securitization
—

 
183,569

 
—

 
209,030

2016-1 HECM securitization
—

 
272,116

 
—

 
—

Participating interest financing
—

 
5,833,773

 
—

 
5,947,407

Total liabilities
$
1,393,372

 
$
6,489,265

 
$
1,475,189

 
$
6,606,448




Securitizations Treated as Sales
When Nationstar sells mortgage loans in securitization transactions that are structured as sales, it may retain one or more bond classes and servicing rights in the securitization. Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date.

A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows:
 
March 31, 2016
 
December 31, 2015
Total collateral balances
$
3,020,839

 
$
3,113,784

Total certificate balances
2,726,618

 
2,810,903



Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2016 or December 31, 2015, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs.

A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below:
 
Principal Amount of Loans 60 Days or More Past Due
March 31, 2016
 
December 31, 2015
Unconsolidated securitization trusts
$
677,879

 
$
727,879

 
Three months ended March 31,
Credit Losses
2016
 
2015
Unconsolidated securitization trusts
$
32,100

 
$
57,461

Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows:
 
 
Three months ended March 31,
 
2016
 
2015
 
Servicing Fees
Received
 
Loan
Repurchases
 
Servicing Fees
Received
 
Loan
Repurchases
Unconsolidated securitization trusts
$
6,009

 
$
—

 
$
6,373

 
$
—
v3.4.0.3
Stockholders' Equity
 3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Stockholders' Equity
Stockholders' Equity

On December 17, 2015, Nationstar announced that its Board of Director's authorized the repurchase of up to $150.0 million of the registrant's outstanding common stock through December 16, 2016. On February 9, 2016, Nationstar’s Board of Directors authorized a $100.0 million increase to the original repurchase authorization for an aggregate repurchase authorization of $250.0 million under the Company’s share repurchase program. As of March 31, 2016, a total of 6,026 thousand shares have been repurchased since the inception of the plan.
On February 11, 2016, Nationstar announced a Board-authorized tender offer via a modified Dutch auction to repurchase up to $100.0 million of common stock. On March 15, 2016, Nationstar repurchased approximately 7 thousand shares at purchase price of $9.40 per share.

During the first quarter of 2016, certain employees of Nationstar were granted 1,470 thousand restricted stock units (RSUs). The RSUs generally vest in installments of 33.3%, 33.3% and 33.4% respectively on each of the first three anniversaries of the awards, provided that (i) the participant remains continuously employed with us during that time or (ii) the participant's employment has terminated by reason of retirement. In addition, upon death, disability or a change in control of the Company, the unvested shares of an award will vest. The ultimate value of the award, however, depends on the market value of Nationstar common stock on the vesting date. The Company recognized $6.8 million of expense related to the share-based awards during the three months ended March 31, 2016.
v3.4.0.3
Income Taxes
 3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes

The components of income tax benefit on continuing operations were as follows:
 
Three months ended March 31,
2016
 
2015
Income tax benefit
$
(82,265
)
 
$
(27,525
)
 
 
 
 
Effective tax rate
38.2
%
 
36.6
%


For the three months ended March 31, 2016 and March 31, 2015, the effective tax rates differed from the statutory federal rate of 35.0% primarily due to the elimination of the book income of a less-than-wholly-owned subsidiary, state taxes and certain other permanent differences. The relative impact of these permanent differences on the effective tax rate is based upon forecasted pre-tax income or loss for the year.

The elimination of the book income attributable to a less-than-wholly-owned subsidiary is treated as a permanent difference and reduces taxable income. When the Company is in a net income position, this adjustment reduces the effective tax rate and the corresponding income tax expense. When the Company is in a net loss position, this adjustment increases the effective tax rate and the corresponding income tax benefit. Because the Company is in a net loss position for the three months ended March 31, 2016, the book income attributable to a less-than-wholly-owned subsidiary increases the effective tax rate and the income tax benefit.
v3.4.0.3
Fair Value Measurements
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement 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).
The following describes the methods and assumptions used by Nationstar in estimating fair values:
Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value.
Mortgage Loans Held for Sale (Level 2) – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value.
Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Nationstar classifies these valuations as Level 2 in the fair value disclosures.

The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Nationstar may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has elected to carry these loans at fair value, which is a Level 2 fair value measurement. See Note 5, Mortgage Loan Held for Sale and Investment for more information.
Mortgage Loans Held for Investment, net (Level 3) – Nationstar determines the fair value of loans held for investment, net, using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from internally developed valuation models, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 5, Mortgage Loan Held for Sale and Investment for more information.
Mortgage Servicing Rights – Fair Value (Level 3) – Nationstar estimates the fair value of its forward MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary revenues and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Advances, net (Level 3) - We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally realized within a relatively short period of time and do not bear interest. See Note 3, Advances, Net for more information.
Reverse Mortgage Interests (Level 3) – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These interests are carried at lower of cost or market in the financial statements. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar reverse mortgage loans, adjusted for certain factors. As the adjustments to factors require the use of judgment, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Reverse Mortgage Interests for more information.
Derivative Financial Instruments (Level 2) – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the balance sheet. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of underlying mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. Nationstar has entered into Eurodollar futures contracts as part of its hedging strategy. The future contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. See Note 7, Derivative Financial Instruments for more information.
Advance Facilities and Warehouse Facilities (Level 2) – As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheets approximates fair value. See Note 8, Indebtedness for more information.
Unsecured Senior Notes (Level 1) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value. See Note 8, Indebtedness for more information.
Nonrecourse Debt – Legacy Assets (Level 3) – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. See Note 8, Indebtedness for more information.
Excess Spread Financing (Level 3) – Nationstar estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Mortgage Servicing Rights Financing Liability (Level 3) - Nationstar estimates fair value on a recurring basis based on the present value of future expected discounted cash flows. The cash flow assumptions used in the model are based on various factors, with the key assumptions being advance financing rates, annual advance recovery rates and working capital. As these prices are derived from a combination of internally developed valuation models based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Participating Interest Financing (Level 2) – Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. Nationstar classifies these valuations as Level 2 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities, and Note 8, Indebtedness for more information.
HECM Securitizations (Level 3) – Nationstar estimates fair value of the nonrecourse debt related to HECM securitization based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, Nationstar classifies this as Level 3 in the fair value disclosures. See Note 8, Indebtedness for more information.
The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated:
 
 
 
March 31, 2016
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,880,654

 
$
—

 
$
1,880,654

 
$
—

Mortgage servicing rights(1)
3,088,123

 
—

 
—

 
3,088,123

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
99,462

 
—

 
99,462

 
—

       Forward MBS trades
346

 
—

 
346

 
—

       LPCs
8,944

 
—

 
8,944

 
—

Interest rate swaps and caps
405

 
—

 
405

 
—

Eurodollar futures
11

 
—

 
11

 
—

Total assets
$
5,077,945

 
$
—

 
$
1,989,822

 
$
3,088,123

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
$
37

 
$
—

 
$
37

 
$
—

       Forward MBS trades
19,540

 
—

 
19,540

 
—

       LPCs
233

 
—

 
233

 
—

Interest rate swaps and caps
431

 
—

 
431

 
—

Eurodollar futures
594

 
—

 
594

 
—

Mortgage servicing rights financing
81,729

 
—

 
—

 
81,729

Excess spread financing
1,161,270

 
—

 
—

 
1,161,270

Total liabilities
$
1,263,834

 
$
—

 
$
20,835

 
$
1,242,999

 
 
 
December 31, 2015
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,429,691

 
$
—

 
$
1,429,691

 
$
—

Mortgage servicing rights(1)
3,358,327

 
—

 
—

 
3,358,327

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
89,138

 
—

 
89,138

 
—

       Forward MBS trades
6,123

 
—

 
6,123

 
—

       LPCs
3,872

 
—

 
3,872

 
—

Interest rate swaps and caps
506

 
—

 
506

 
—

Eurodollar futures
60

 
—

 
60

 
—

Total assets
$
4,887,717

 
$
—

 
$
1,529,390

 
$
3,358,327

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
$
5

 
$
—

 
$
5

 
$
—

       Forward MBS trades
3,746

 
—

 
3,746

 
—

       LPCs
1,454

 
—

 
1,454

 
—

Interest rate swaps and caps
542

 
—

 
542

 
—

Eurodollar futures
76

 
—

 
76

 
—

Mortgage servicing rights financing
68,696

 
—

 
—

 
68,696

Excess spread financing
1,232,086

 
—

 
—

 
1,232,086

Total liabilities
$
1,306,605

 
$
—

 
$
5,823

 
$
1,300,782


(1) Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated:
 
Assets
 
Liabilities
Three months ended March 31, 2016
Mortgage
servicing rights
 
Excess spread
financing
 
Mortgage servicing rights financing
Beginning balance
$
3,358,327

 
$
1,232,086

 
$
68,696

Transfers into Level 3
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

Total gains or losses
 
 
 
 
 
Included in earnings
(292,889
)
 
(23,699
)
 
13,033

Purchases, issuances, sales and settlements
 
 
 
 
 
Purchases
1,643

 
—

 
—

Issuances
39,663

 
—

 
—

Sales
—

 
—

 
—

Settlements
—

 
(47,117
)
 
—

Dispositions
(18,621
)
 
—

 
—

Ending balance
$
3,088,123

 
$
1,161,270

 
$
81,729


 
Assets
 
Liabilities
Twelve months ended December 31, 2015
Mortgage
servicing rights
 
Excess spread
financing
 
Mortgage servicing rights financing
Beginning balance
$
2,949,739

 
$
1,031,035

 
$
49,430

Transfers into Level 3
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

Total gains or losses
 
 
 
 
 
Included in earnings
(496,990
)
 
25,631

 
19,266

Purchases, issuances, sales and settlements
 
 
 
 
 
Purchases
729,984

 
—

 
—

Issuances
221,762

 
385,637

 
—

Sales
—

 
—

 
—

Settlements
—

 
(210,217
)
 
—

Dispositions
(46,168
)
 
—

 
—

Ending balance
$
3,358,327

 
$
1,232,086

 
$
68,696


The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments.
 
March 31, 2016
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
460,951

 
$
460,951

 
$
—

 
$
—

Restricted cash
307,564

 
307,564

 
—

 
—

Advances, net
2,070,599

 
—

 
—

 
2,070,599

Reverse mortgage interests, net
7,584,086

 
—

 
—

 
7,624,696

Mortgage loans held for sale
1,880,654

 
—

 
1,880,654

 
—

Mortgage loans held for investment, net
166,564

 
—

 
—

 
170,584

Derivative financial instruments
109,168

 
—

 
109,168

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
2,025,265

 
1,918,283

 
—

 
—

Advance facilities
1,563,750

 
—

 
1,563,750

 
—

Warehouse facilities
2,414,495

 
—

 
2,414,495

 
—

Mortgage servicing rights financing liability
81,729

 
—

 
—

 
81,729

Derivative financial instruments
20,835

 
—

 
20,835

 
—

Excess spread financing
1,161,270

 
—

 
—

 
1,161,270

Nonrecourse debt - legacy assets
62,188

 
—

 
—

 
61,466

Participating interest financing
5,833,773

 
—

 
5,809,749

 
—

2015-1 HECM securitization
199,309

 
—

 
—

 
208,201

2015-2 HECM securitization
183,569

 
—

 
—

 
208,619

2016-1 HECM securitization
272,115

 
—

 
—

 
290,125

 
 
 
 
 
 
 
 
 
December 31, 2015
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
613,241

 
$
613,241

 
$
—

 
$
—

Restricted cash
332,105

 
332,105

 
—

 
—

Mortgage loans held for sale
1,429,691

 
—

 
1,429,691

 
—

Mortgage loans held for investment, net
173,650

 
—

 
—

 
174,147

Advances, net
2,223,083

 
—

 
—

 
2,223,083

Reverse mortgage interests
7,514,323

 
—

 
—

 
7,705,475

Derivative financial instruments
99,699

 
—

 
99,699

 
—

Financial liabilities:
 
 
 
 
 
 
 
Unsecured senior notes
2,048,694

 
1,911,777

 
—

 
—

Advance facilities
1,646,123

 
—

 
1,646,123

 
—

Warehouse facilities
1,893,526

 
—

 
1,893,526

 
—

Derivative financial instruments
5,823

 
—

 
5,823

 
—

Excess spread financing
1,232,086

 
—

 
—

 
1,232,086

Mortgage servicing rights financing liability
68,696

 
—

 
—

 
68,696

Nonrecourse debt - legacy assets
64,815

 
—

 
—

 
74,264

Participating interest financing
5,947,407

 
—

 
6,091,285

 
—

2014-1 HECM securitization
226,851

 
—

 
—

 
298,048

2015-1 HECM securitization
222,495

 
—

 
—

 
275,223

2015-2 HECM securitization
209,030

 
—

 
—

 
249,507
v3.4.0.3
Capital Requirements
 3 Months Ended
Mar. 31, 2016
Mortgage Banking [Abstract]  
Capital Requirements
Capital Requirements

Certain of Nationstar'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, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer.
Among Nationstar's various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $1.2 billion. As of March 31, 2016, Nationstar was in compliance with its selling and servicing capital requirements.
v3.4.0.3
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies

Litigation and Regulatory Matters
Nationstar and its affiliates are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business, including punitive class actions and other litigation. These actions and proceedings 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, Servicemember’s Civil Relief Act, Telephone Consumer Protection Act, Truth in Lending Act, Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), unfair, deceptive or abusive acts or practices in violation of the Dodd-Frank Act, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the Home Mortgage Disclosure Act and the Bankruptcy Code, False Claims Act and Making Home Affordable (MHA) loan modification programs. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, including from its Legacy Portfolio regarding alleged breaches of representation and warranties relating to the sale of mortgage loans or 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 our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages. The outcome of such proceedings is difficult to predict or estimate until late in the proceedings, which may last several years. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to damages.

Nationstar’s business is subject to extensive regulation, investigations and reviews by various federal, state and local regulatory and enforcement agencies, including without limitation, the CFPB, the Securities and Exchange Commission, the Department of Justice, the US Trustee Program, the multistate coalition of mortgage banking regulators and the State Attorneys General. As a result, Nationstar is subject to various legal proceedings, regulatory examinations, inquiries and requests for documentation in the ordinary course of our business. Nationstar has historically had a number of open investigations with various State Attorneys General and other regulators. Nationstar expects this trend will continue due to interest in mortgage banking generally and non-bank mortgage lenders and servicers specifically. Nationstar has seen a significant increase in these activities in recent periods and believes that violations of law will more frequently be met with enforcement actions, including the imposition of significant monetary and other sanctions. Like many other companies in the mortgage industry, Nationstar is currently the subject of various regulatory investigations, subpoenas, examinations and inquiries related to its residential loan servicing and origination practices, bankruptcy and collections practices, its financial reporting and other aspects of its businesses. Several large mortgage originators or servicers have been subject to similar matters, which have resulted in the payment of fines and penalties, changes to business practices and which have resulted in the entry of consent decrees or settlements. Nationstar continues to manage its response to each matter, but it is not possible to confidently or reliably predict the outcome of any of them, including predicting any possible losses resulting from any judgments or fines. Responding to these matters requires Nationstar to devote substantial legal and regulatory resources, resulting in higher costs and lower net cash flows.

The Company seeks to resolve all litigation and regulatory 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. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory 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 litigation or regulatory 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 litigation 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. Litigation related expense, which includes legal settlements and the fees paid to external legal service providers, of $13.1 million and $7.3 million for the three months ended March 31, 2016 and 2015, respectively, was included in general and administrative expenses on the consolidated statements of operations.
For a number of 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 litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $17 million to $50 million in excess of the accrued liability (if any) related to those matters as of March 31, 2016. 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.
Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability 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 consolidated financial statements.

During the course of a routine regulatory examination during 2015, the Company agreed with a regulator to make refunds of approximately $16.2 million to certain borrowers related to delays in consummating their loan modifications that were transferred from prior servicers from 2012 through February 2015. The Company will be seeking recourse for some portion of these charges from various counterparties. While the Company has made changes to certain practices regarding the transfer of loan modifications, there can be no assurance that additional amounts will not be assessed as restitution to the borrowers or as a penalty.

Loan and Other Commitments
Nationstar 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. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value. See Note 7, Derivative Financial Instruments.

Nationstar has certain MSRs related to approximately $29.0 billion of UPB in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At March 31, 2016, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $3.0 billion. Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as a financing arrangement.
v3.4.0.3
Business Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Business Segment Reporting
Business Segment Reporting

Nationstar’s segments are based upon Nationstar’s organizational structure, which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting, and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties.

To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables.

The following tables are a presentation of financial information by segment for the periods indicated:
 
 
Three months ended March 31, 2016
 
 
Servicing
 
Originations
 
Xome
 
Total Operating Segments
 
Corporate and Other
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service related
 
$
(24,351
)
 
$
15,267

 
$
101,433

 
$
92,349

 
$
304

 
$
—


$
92,653

Net gain on mortgage loans held for sale
 
23,161

 
147,943

 
—

 
171,104

 
12

 
—


171,116

Total revenues
 
(1,190
)
 
163,210

 
101,433

 
263,453

 
316

 
—


263,769

Total expenses
 
184,356

 
124,838

 
89,994

 
399,188

 
22,289

 
—

 
421,477

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
84,633

 
14,561

 
3

 
99,197

 
3,646

 
—

 
102,843

Interest expense
 
(106,841
)
 
(13,142
)
 
(25
)
 
(120,008
)
 
(40,768
)
 
—

 
(160,776
)
Gain on repurchase of unsecured senior notes
 
—

 
—

 
—

 
—

 
77

 
—

 
77

Gain (loss) on interest rate swaps and caps
 
(7
)
 
—

 
—

 
(7
)
 
15

 
—

 
8

Total other income (expense)
 
(22,215
)
 
1,419

 
(22
)
 
(20,818
)
 
(37,030
)
 
—

 
(57,848
)
Income (loss) before taxes
 
$
(207,761
)
 
$
39,791

 
$
11,417

 
$
(156,553
)
 
$
(59,003
)
 
$
—

 
$
(215,556
)
Depreciation and amortization
 
$
6,189

 
$
2,632

 
$
5,934

 
$
14,755

 
$
8,389

 
$
—

 
$
23,144

Total assets
 
12,760,129

 
4,303,766

 
306,647

 
17,370,542

 
(819,018
)
 
—

 
16,551,524

  
 
 
Three months ended March 31, 2015
 
 
Servicing
 
Originations
 
Xome
 
Total Operating Segments
 
Corporate and Other
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service related
 
$
99,997

 
$
7,065

 
$
107,786

 
$
214,848

 
$
497

 
$
(222
)
 
$
215,123

Net gain on mortgage loans held for sale
 
14,013

 
151,281

 
—

 
$
165,294

 
1,700

 
—

 
$
166,994

Total revenues
 
114,010

 
158,346

 
107,786

 
380,142

 
2,197

 
(222
)
 
382,117

Total expenses
 
182,397

 
100,249

 
79,388

 
362,034

 
21,809

 
—

 
383,843

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
24,639

 
15,267

 
—

 
39,906

 
3,646

 
222

 
43,774

Interest expense
 
(57,974
)
 
(14,386
)
 
(35
)
 
(72,395
)
 
(43,253
)
 
—

 
(115,648
)
Gain (loss) on interest rate swaps and caps
 
(801
)
 
—

 
—

 
(801
)
 
34

 
—

 
(767
)
Total other income (expense)
 
(34,136
)
 
881

 
(35
)
 
(33,290
)
 
(39,573
)
 
222

 
(72,641
)
Income (loss) before taxes
 
$
(102,523
)
 
$
58,978

 
$
28,363

 
$
(15,182
)
 
$
(59,185
)
 
$
—

 
$
(74,367
)
Depreciation and amortization
 
$
5,870

 
$
3,700

 
$
3,364

 
$
12,934

 
$
5,185

 
$
—

 
$
18,119

Total assets
 
9,420,014

 
1,965,961

 
236,013

 
$
11,621,988

 
1,020,380

 
—

 
$
12,642,368
v3.4.0.3
Guarantor Financial Statement Information
 3 Months Ended
Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Guarantor Financial Statement Information
Guarantor Financial Statement Information

As of March 31, 2016, Nationstar Mortgage LLC and Nationstar Capital Corporation(1) (collectively, the Issuer), both wholly-owned subsidiaries of Nationstar, have issued $2.0 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022. The unsecured senior notes are unconditionally guaranteed, jointly and severally, by all of Nationstar Mortgage LLC’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries, excluded restricted subsidiaries and subsidiaries that in the future Nationstar Mortgage LLC designates as unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar Mortgage LLC. Nationstar and its two direct wholly-owned subsidiaries are guarantors of the unsecured senior notes as well. Presented below are the condensed consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated.

In the condensed consolidating financial statements presented below, Nationstar allocates income tax expense to Nationstar Mortgage LLC as if it were a separate tax payer entity pursuant to ASC 740, Income Taxes.

(1)Nationstar Capital Corporation has no assets, operations or liabilities other than being a co-obligor of the unsecured senior notes.

NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
 MARCH 31, 2016
 
Nationstar
Issuer
Guarantor (Subsidiaries)
Non-Guarantor (Subsidiaries)
Eliminations
Consolidated
Assets
 
 
 
 
 
 
Cash and cash equivalents
$
—

$
426,150

$
758

$
34,043

$
—

$
460,951

Restricted cash
—

172,453

3

135,108

—

307,564

Mortgage servicing rights
—

3,096,084

—

—

—

3,096,084

Advances
—

2,070,537

—

62

—

2,070,599

Reverse mortgage interests, net
—

6,901,208

—

682,878

—

7,584,086

Mortgage loans held for sale
—

1,816,028

—

64,626

—

1,880,654

Mortgage loans held for investment, net
—

(658
)
—

167,222

—

166,564

Property and equipment, net
—

113,745

865

27,545

—

142,155

Derivative financial instruments
—

105,527

—

3,641

—

109,168

Other assets
(57,595
)
603,109

311,701

1,431,086

(1,554,602
)
733,699

Investment in subsidiaries
1,639,114

572,217

—

—

(2,211,331
)
—

Total assets
$
1,581,519

$
15,876,400

$
313,327

$
2,546,211

$
(3,765,933
)
$
16,551,524

Liabilities and stockholders' equity
 
 
 
 
 
 
Unsecured senior notes
$
—

$
2,025,265

$
—

$
—

$
—

$
2,025,265

Advance facilities
—

234,739

—

1,329,011

—

1,563,750

Warehouse facilities
—

2,361,190

—

53,305

—

2,414,495

Payables and accrued liabilities
—

1,077,109

2,878

59,413

—

1,139,400

MSR related liabilities - nonrecourse
—

1,242,999

—

—

—

1,242,999

Mortgage servicing liabilities
—

18,065

—

—

—

18,065

Derivative financial instruments
—

20,835

—

—

—

20,835

Other nonrecourse debt
—

5,828,015

—

717,181

—

6,545,196

Payables to affiliates
—

1,429,069

4,731

120,802

(1,554,602
)
—

Total liabilities
—

14,237,286

7,609

2,279,712

(1,554,602
)
14,970,005

Total equity
1,581,519

1,639,114

305,718

266,499

(2,211,331
)
1,581,519

Total liabilities and equity
$
1,581,519

$
15,876,400

$
313,327

$
2,546,211

$
(3,765,933
)
$
16,551,524



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2016
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
Service related
$
—

 
$
(16,999
)
 
$
7,072

 
$
102,580

 
$
—

 
$
92,653

Net gain on mortgage loans held for sale
—

 
162,566

 
—

 
8,550

 
—

 
171,116

Total revenues
—

 
145,567

 
7,072

 
111,130

 
—

 
263,769

Expenses
 
 
 
 
 
 
 
 
 
 
 
Salaries wages benefits
—

 
144,238

 
1,162

 
51,962

 
—

 
197,362

General and administrative
—

 
169,535

 
3,115

 
51,465

 
—

 
224,115

Total expenses
—

 
313,773

 
4,277

 
103,427

 
—

 
421,477

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
91,080

 
—

 
11,763

 
—

 
102,843

Interest expense
—

 
(141,576
)
 
—

 
(19,200
)
 
—

 
(160,776
)
Gain on repurchase of unsecured senior notes
—

 
77


—

 
—

 
—

 
77

Gain (loss) on interest rate swaps and caps
—

 
15

 
—

 
(7
)
 
—

 
8

Gain (loss) from subsidiaries
(132,389
)
 
2,956

 
—

 
—

 
129,433

 
—

Total other income (expense)
(132,389
)
 
(47,448
)
 
—

 
(7,444
)
 
129,433

 
(57,848
)
Income (loss) before taxes
(132,389
)
 
(215,654
)
 
2,795

 
259

 
129,433

 
(215,556
)
Income tax expense
—

 
(82,265
)
 
—

 
—

 
—

 
(82,265
)
Net income (loss)
(132,389
)
 
(133,389
)
 
2,795

 
259

 
129,433

 
(133,291
)
Less: Net gain (loss) attributable to noncontrolling interests
—

 
(1,000
)
 
—

 
98

 
—

 
(902
)
Net income (loss) excluding noncontrolling interests
$
(132,389
)
 
$
(132,389
)
 
$
2,795

 
$
161

 
$
129,433

 
$
(132,389
)







NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(132,389
)
 
$
(132,389
)
 
$
2,795

 
$
161

 
$
129,433

 
$
(132,389
)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
—

 
(1,000
)
 
—

 
98

 
—

 
(902
)
(Gain) loss from subsidiaries
132,389

 
(2,956
)
 
—

 
—

 
(129,433
)
 
—

Share-based compensation
—

 
4,857

 
20

 
1,966

 
—

 
6,843

Gain on repurchase of unsecured senior notes
—

 
(77
)
 
—

 
—

 
—

 
(77
)
Excess tax deficiency from share-based compensation
—

 
2,795

 
—

 
—

 
—

 
2,795

Gain on mortgage loans held for sale
—

 
(162,566
)
 
—

 
(8,550
)
 
—

 
(171,116
)
Mortgage loans originated and purchased, net of fees
—

 
(4,006,685
)
 
—

 
(233,431
)
 
—

 
(4,240,116
)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
—

 
(486,124
)
 
—

 
—

 
—

 
(486,124
)
Proceeds on sale of and payments of mortgage loans held for sale
—

 
4,071,502

 
—

 
305,740

 
—

 
4,377,242

(Gain) loss on derivatives including ineffectiveness
—

 
(15
)
 
—

 
7

 
—

 
(8
)
Depreciation and amortization
—

 
17,210

 
—

 
5,934

 
—

 
23,144

Amortization (accretion) of premiums (discounts)
—

 
5,982

 
—

 
3,896

 
—

 
9,878

Fair value changes in excess spread financing
—

 
(23,699
)
 
—

 
—

 
—

 
(23,699
)
Fair value changes and amortization/accretion of mortgage servicing rights
—

 
286,378

 
—

 
—

 
—

 
286,378

Fair value change in mortgage servicing rights financing liability
—

 
13,033

 
—

 
—

 
—

 
13,033

Changes in assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 
Advances
—

 
152,502

 
—

 
(18
)
 
—

 
152,484

Reverse mortgage interests
—

 
(14,257
)
 
—

 
(741
)
 
—

 
(14,998
)
Other assets
56,615

 
(125,563
)
 
(4,569
)
 
99,628

 
—

 
26,111

Payables and accrued liabilities
—

 
(152,453
)
 
1,951

 
(9,393
)
 
—

 
(159,895
)
Net cash attributable to operating activities
56,615

 
(553,525
)
 
197

 
165,297

 
—

 
(331,416
)
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
(Continued)
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Investing activities
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions, net of disposals
—

 
(9,768
)
 
3

 
(3,339
)
 
—

 
(13,104
)
Purchase of forward mortgage servicing rights, net of liabilities incurred
—

 
(1,530
)
 
—

 
—

 
—

 
(1,530
)
Purchases of reverse mortgage servicing rights and interests
—

 
(55,215
)
 
—

 
—

 
—

 
(55,215
)
Proceeds on sale of forward service rights
—

 
18,361

 
—

 
—

 
—

 
18,361

Proceeds on sale of reverse mortgage interest
—

 
450

 
—

 
—

 
—

 
450

Net cash attributable to investing activities
—

 
(47,702
)
 
3

 
(3,339
)
 
—

 
(51,038
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Transfers (to) from restricted cash, net
—

 
26,273

 
—

 
(1,732
)
 
—

 
24,541

Debt financing costs
—

 
(2,497
)
 
—

 
—

 
—

 
(2,497
)
Increase (decrease) warehouse facilities
—

 
577,848

 
—

 
(54,955
)
 
—

 
522,893

Increase (decrease) advance facilities
—

 
199

 
—

 
(79,247
)
 
—

 
(79,048
)
Proceeds from HECM securitizations
—

 
—

 
—

 
281,680

 
—

 
281,680

Repayment of HECM securitizations
—

 
—

 
—

 
(285,985
)
 
—

 
(285,985
)
Repayment of excess spread financing
—

 
(47,117
)
 
—

 
—

 
—

 
(47,117
)
Increase in participating interest financing in reverse mortgage interests
—

 
(120,362
)
 
—

 
—

 
—

 
(120,362
)
Repayment of nonrecourse debt–legacy assets
—

 
—

 
—

 
(3,056
)
 
—

 
(3,056
)
Repurchase of unsecured senior notes
—

 
(1,475
)
 
—

 
—

 
—

 
(1,475
)
Excess tax deficiency from share-based compensation
—

 
(2,795
)
 
—

 
—

 
—

 
(2,795
)
Redemption of shares for stock vesting
(1,564
)
 
—

 
—

 
—

 
—

 
(1,564
)
Repurchase of treasury shares
(55,051
)
 
—

 
—

 
—

 
—

 
(55,051
)
Net cash attributable to financing activities
(56,615
)
 
430,074

 
—

 
(143,295
)
 
—

 
230,164

Net increase (decrease) in cash
—

 
(171,153
)
 
200

 
18,663

 
—

 
(152,290
)
Cash and cash equivalents at beginning of period
—

 
597,303

 
558

 
15,380

 
—

 
613,241

Cash and cash equivalents at end of period
$
—

 
$
426,150

 
$
758

 
$
34,043

 
$
—

 
$
460,951



NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
 DECEMBER 31, 2015
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
597,303

 
$
558

 
$
15,380

 
$
—

 
$
613,241

Restricted cash
—

 
198,726

 
3

 
133,376

 
—

 
332,105

Mortgage servicing rights
—

 
3,366,973

 
—

 
—

 
—

 
3,366,973

Advances
—

 
2,223,039

 
—

 
44

 
—

 
2,223,083

Reverse mortgage interests, net
—

 
6,832,186

 
—

 
682,137

 
—

 
7,514,323

Mortgage loans held for sale
—

 
1,304,219

 
—

 
125,472

 
—

 
1,429,691

Mortgage loans held for investment, net
—

 
840

 
—

 
172,810

 
—

 
173,650

Property and equipment, net
—

 
113,228

 
868

 
28,740

 
—

 
142,836

Derivative financial instruments
—

 
96,181

 
—

 
3,518

 
—

 
99,699

Other assets
3,444

 
799,567

 
303,452

 
1,496,640

 
(1,881,271
)
 
721,832

Investment in subsidiaries
1,768,319

 
509,475

 
—

 
—

 
(2,277,794
)
 
—

Total assets
$
1,771,763

 
$
16,041,737

 
$
304,881

 
$
2,658,117

 
$
(4,159,065
)
 
$
16,617,433

Liabilities and stockholders' equity
 
 
 
 
 
 
 
 
 
 
 
Unsecured senior notes
$
—

 
$
2,025,754

 
$
—

 
$
—

 
$
—

 
$
2,025,754

Advance facilities
—

 
231,432

 
—

 
1,408,258

 
—

 
1,639,690

Warehouse facilities
—

 
1,782,060

 
—

 
108,260

 
—

 
1,890,320

Payables and accrued liabilities
4,386

 
1,222,268

 
927

 
68,806

 
—

 
1,296,387

MSR related liabilities - nonrecourse
—

 
1,300,782

 
—

 
—

 
—

 
1,300,782

Mortgage servicing liabilities
—

 
25,260

 
—

 
—

 
—

 
25,260

Derivative financial instruments
—

 
5,823

 
—

 
—

 
—

 
5,823

Other nonrecourse debt
—

 
5,942,849

 
—

 
723,191

 
—

 
6,666,040

Payables to affiliates
—

 
1,737,190

 
1,031

 
143,050

 
(1,881,271
)
 
—

Total liabilities
4,386

 
14,273,418

 
1,958

 
2,451,565

 
(1,881,271
)
 
14,850,056

Total equity
1,767,377

 
1,768,319

 
302,923

 
206,552

 
(2,277,794
)
 
1,767,377

Total liabilities and equity
$
1,771,763

 
$
16,041,737

 
$
304,881

 
$
2,658,117

 
$
(4,159,065
)
 
$
16,617,433



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2015
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
Service related
$
—

 
$
102,179

 
$
(345
)
 
$
113,511

 
$
(222
)
 
$
215,123

Net gain on mortgage loans held for sale
—

 
156,847

 
—

 
10,147

 
—

 
166,994

Total revenues
—

 
259,026

 
(345
)
 
123,658

 
(222
)
 
382,117

Expenses
 
 
 
 
 
 
 
 
 
 
 
Salaries wages benefits
—

 
128,433

 
354

 
49,968

 
—

 
178,755

General and administrative
—

 
164,532

 
50

 
40,506

 
—

 
205,088

Total expenses
—

 
292,965

 
404

 
90,474

 
—

 
383,843

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
36,120

 
—

 
7,432

 
222

 
43,774

Interest expense
—

 
(99,867
)
 
—

 
(15,781
)
 
—

 
(115,648
)
Gain (loss) on interest rate swaps and caps
—

 
34

 
—

 
(801
)
 
—

 
(767
)
Gain (loss) from subsidiaries
(48,315
)
 
23,209

 
—

 
—

 
25,106

 
—

Total other income (expense)
(48,315
)
 
(40,504
)
 
—

 
(9,150
)
 
25,328

 
(72,641
)
Income (loss) before taxes
(48,315
)
 
(74,443
)
 
(749
)
 
24,034

 
25,106


(74,367
)
Income tax benefit
—

 
(27,525
)
 
—

 
—

 
—

 
(27,525
)
Net income (loss)
(48,315
)
 
(46,918
)
 
(749
)
 
24,034

 
25,106

 
(46,842
)
Less: Net gain attributable to noncontrolling interests
—

 
1,397

 
—

 
76

 
—

 
1,473

Net income (loss) excluding noncontrolling interests
$
(48,315
)
 
$
(48,315
)
 
$
(749
)
 
$
23,958

 
$
25,106

 
$
(48,315
)


 


NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2015
 
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Operating activities
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(48,315
)
 
$
(48,315
)
 
$
(749
)
 
$
23,958

 
$
25,106

 
$
(48,315
)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
 
—

 
1,473

 
—

 
—

 
—

 
1,473

(Gain) loss from subsidiaries
 
48,315

 
(23,209
)
 
—

 
—

 
(25,106
)
 
—

Share-based compensation
 
—

 
5,524

 
—

 
—

 
—

 
5,524

Excess tax benefit from share based compensation
 
—

 
(1,095
)
 
—

 
—

 
—

 
(1,095
)
Net gain on mortgage loans held for sale
 
—

 
(156,847
)
 
—

 
(10,147
)
 
—

 
(166,994
)
Mortgage loans originated and purchased, net of fees
 
—

 
(4,209,078
)
 
—

 
—

 
—

 
(4,209,078
)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
 
—

 
(405,893
)
 
—

 
—

 
—

 
(405,893
)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
 
—

 
3,998,101

 
—

 
5,025

 
—

 
4,003,126

Gain (loss) on interest rate swaps and caps
 
—

 
(34
)
 
—

 
801

 
—

 
767

Depreciation and amortization
 
—

 
14,758

 
—

 
3,361

 
—

 
18,119

Amortization (accretion) of premiums (discounts)
 
—

 
(6,759
)
 
—

 
(303
)
 
—

 
(7,062
)
Fair value changes in excess spread financing
 
—

 
13,114

 
—

 
—

 
—

 
13,114

Fair value changes and amortization of mortgage servicing rights
 
—

 
204,200

 
—

 
—

 
—

 
204,200

Fair value change in mortgage servicing rights financing liability
 
—

 
(4,386
)
 
—

 
—

 
—

 
(4,386
)
Changes in assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 


Advances
 
—

 
93,149

 
—

 
2,287

 
—

 
95,436

Reverse mortgage interests
 
—

 
(258,916
)
 
—

 
78,123

 
—

 
(180,793
)
Other assets
 
5,442

 
379,162

 
1,199

 
(367,126
)
 
—

 
18,677

Payables and accrued liabilities
 
—

 
7,233

 
14

 
(4,374
)
 
—

 
2,873

Net cash attributable to operating activities
 
5,442

 
(397,818
)
 
464

 
(268,395
)
 
—

 
(660,307
)
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2015
(Continued)
 
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Investing activities
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions, net of disposals
 
—

 
(7,243
)
 
—

 
(4,750
)
 
—

 
(11,993
)
Purchase of forward mortgage servicing rights, net of liabilities incurred
 
—

 
(196,081
)
 
—

 
—

 
—

 
(196,081
)
Acquisitions, net of cash acquired
 
—

 
—

 
—

 
(31,276
)
 
—

 
(31,276
)
Net cash attributable to investing activities
 
—

 
(203,324
)
 
—

 
(36,026
)
 
—

 
(239,350
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
 
Transfers to restricted cash, net
 
—

 
(24,925
)
 
—

 
(48,087
)
 
—

 
(73,012
)
Issuance of common stock, net of issuance cost
 
—

 
497,758

 
—

 
—

 
—

 
497,758

Debt financing costs
 
—

 
(1,549
)
 
—

 
—

 
—

 
(1,549
)
Increase (decrease) in advance facilities
 
—

 
(332,696
)
 
—

 
314,225

 
—

 
(18,471
)
Increase in warehouse facilities
 
—

 
899,756

 
—

 
5,094

 
—

 
904,850

Proceeds from HECM Securitization
 
—

 
—

 
—

 
73,082

 
—

 
73,082

Repayment of HECM Securitization
 
—

 
—

 
—

 
(26,829
)
 
—

 
(26,829
)
Issuance of excess spread financing
 
—

 
52,957

 
—

 
—

 
—

 
52,957

Repayment of excess spread financing
 
—

 
(49,516
)
 
—

 
—

 
—

 
(49,516
)
Increase in participating interest financing in reverse mortgage interests
 
—

 
64,781

 
—

 
—

 
—

 
64,781

Repayment of nonrecourse debt – legacy assets
 
—

 
(135
)
 
—

 
(3,138
)
 
—

 
(3,273
)
Excess tax benefit from share-based compensation
 
—

 
1,095

 
—

 
—

 
—

 
1,095

Redemption of shares for stock vesting
 
(5,442
)
 
—

 
—

 
—

 
—

 
(5,442
)
Net cash attributable to financing activities
 
(5,442
)
 
1,107,526

 
—

 
314,347

 
—

 
1,416,431

Net increase in cash and cash equivalents
 
—

 
506,384

 
464

 
9,926

 
—

 
516,774

Cash and cash equivalents at beginning of period
 
—

 
279,770

 
288

 
18,944

 
—

 
299,002

Cash and cash equivalents at end of period
 
$
—

 
$
786,154

 
$
752

 
$
28,870

 
$
—

 
$
815,776
v3.4.0.3
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC
 3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

Newcastle Investment Corp. (Newcastle)
Nationstar is the loan servicer for several securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $0.6 billion and $0.7 billion, at March 31, 2016 and December 31, 2015, respectively. For the three months ended March 31, 2016 and 2015, Nationstar received servicing fees and other performance incentive fees of $0.8 million and $0.9 million, respectively. The change is primarily due to a decrease in volume for the base service fees.

New Residential Investment Corp. (New Residential)
Excess Spread Financing
Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"), where Nationstar sold to the related New Residential Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after receipt of a fixed base servicing fee per loan. Nationstar retains all ancillary revenues associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed base servicing fee. Nationstar is the servicer of the loans and provides all servicing and advancing functions for the portfolio. The related New Residential Entity does not have prior or ongoing obligations associated with these MSR portfolios. Further, should Nationstar refinance any loan in such portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above.

As of March 31, 2016 and December 31, 2015, Nationstar had recorded $24.7 million and $30.7 million of delinquent service fees that were paid to New Residential in advance of the contractual due date, respectively. This amount will be ultimately recuperated from borrowers or netted against future remittances as related to service fee amounts. This amount is recorded as a reduction to outstanding excess spread financing in our financial statements.

The fair value of the outstanding liability related to these agreements was $1.2 billion and $1.2 billion at March 31, 2016 and December 31, 2015, respectively.

Mortgage Servicing Rights Financing Liability
From December 2013 through June 2014, Nationstar entered into agreements to sell a contractually specified base fee component of certain MSRs and servicer advances under specified terms to New Residential and certain unaffiliated third-parties. Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. Consequently, Nationstar records a MSRs financing liability associated with this transaction.

Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes (the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors.
In December 2013, Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding liability related to the Sale Agreement was $81.7 million and $68.7 million at March 31, 2016 and December 31, 2015, respectively.
Nationstar did not enter into any additional supplemental agreements with the Purchaser in 2016 and 2015.

Other
In May 2014, Nationstar entered into a servicing arrangement with New Residential whereby Nationstar will service residential mortgage loans that New Residential and/or its various affiliates and trust entities acquire. For the three months ended March 31, 2016 and 2015, Nationstar recognized revenue of $1.0 million and $1.7 million related to these servicing arrangements, respectively. Nationstar also performed services as servicer or master servicer for New Residential for the termination of securitization trusts that New Residential collapsed pursuant to clean up call rights owned by New Residential. For the three months ended March 31, 2016 and 2015, Nationstar earned revenue of $0.2 million and $0 for these services, respectively.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of New Residential, to sell a participating interest amounting to 70% of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans, which totaled $0.07 million and $0.08 million for the three months ended March 31, 2016 and 2015, respectively. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheets.

Springleaf Home Equity, Inc.
In prior years, Nationstar entered into several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.0 billion for which Nationstar received a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. Springleaf Home Equity, Inc. was a subsidiary of Springleaf Holdings, Inc., which was primarily owned by certain private equity funds managed by an affiliate of Fortress.  On November 15, 2015, Springleaf Holdings, Inc. completed its acquisition of OneMain Financial Holdings, LLC, and has changed its corporate name from Springleaf Holdings, Inc. to OneMain Holdings, Inc. For the three months ended March 31, 2016 and 2015, Nationstar recognized revenue of $3.1 million and $0.2 million respectively, in additional servicing and other performance incentive fees related to these portfolios.
v3.4.0.3
Nature of Business and Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The consolidated interim financial statements of Nationstar have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim 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 (SEC). 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 Nationstar's Annual Report on Form 10-K for the year ended December 31, 2015. The Company describes its significant accounting policies in Note 2 of the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2015. During the three month period ended March 31, 2016, there were no significant changes to those accounting policies.

The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar evaluated subsequent events through the date these interim consolidated financial statements were issued.
Basis of Consolidation
Basis of Consolidation
The consolidated financial statements include the accounts of Nationstar, its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar's wholly-owned subsidiaries are the primary beneficiaries. Nationstar applies the equity method of accounting to investments when the entity is a VIE and Nationstar is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions on consolidated entities have been eliminated. Business combinations are included in the consolidated financial statements from their respective dates of acquisition. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar became the primary beneficiary through the date Nationstar ceases to be the primary beneficiary.
Reclassifications
Reclassifications
Certain prior-period amounts have been reclassified to conform to the current-period presentation. As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows:
Recent Accounting Guidance Adopted
Recent Accounting Guidance Adopted
Effective January 1, 2016, the Company adopted Accounting Standards Update No. 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASU 2014-12), which requires that a performance target that affects vesting that could be achieved after the requisite service period be treated as a performance condition. The adoption of ASU 2014-12 did not have a material impact on our financial condition, liquidity or results of operations.

Effective January 1, 2016, the Company retrospectively adopted Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs be included in the carrying value of the related debt liability, when recognized, on the face of the balance sheet. The adoption of ASU 2015-03 was limited to balance sheet reclassification of unamortized debt issuance costs, and did not impact the Company's financial condition, liquidity or results of operations. See Reclassifications section in Note 1 for further details. Also, ASU 2015-15 Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements further expands ASU 2015-03 for presentation and disclosure in the financial statements. ASU 2015-15 amends Subtopic 835-30 to include that the SEC would not object to the deferral and presentation of debt issuance costs as an asset and subsequent amortization of the deferred costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The adoption of ASU 2015-15 did not have a material impact on our financial condition, liquidity or results of operations.
 
Effective January 1, 2016, the Company prospectively adopted Accounting Standards Update 2015-05, Intangibles — Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (ASU 2015-05), which was created to eliminate diversity in the reporting of fees paid by a customer in a cloud computing arrangement caused by lack of guidance. This update provides that if a cloud computing arrangement includes a software license, the license element should be accounted for as other acquired software licenses. If the cloud computing arrangement does not include a software license, then the fees should be accounted for as a service contract. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results of operations.

Recent Accounting Guidance Not Yet Adopted
Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which provides guidance for revenue recognition. This ASU’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The ASU 2014-09 was postponed resulting in effective commencement with Nationstar's quarter ending March 31, 2018. The Company is currently assessing the potential impact of ASU 2014-09 on the consolidated financial statements.

Accounting Standards Update No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15), creates consistency in the disclosures made by an entity when there is doubt that the entity will continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016. The adoption of ASU 2014-15 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01), primarily impacts accounting for equity investments and financial liabilities under the fair value option, as well as the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments will generally be measured at fair value, with subsequent changes in fair value recognized in net income. ASU 2016-01 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on the Company’s financial position or results of operations.
Accounting Standards Update No. 2016-02, Leases (ASU 2016-02), primarily impacts lessee accounting by requiring the recognition of a right-of-use asset and a corresponding lease liability on the balance sheet for long-term lease agreements. The lease liability will be equal to the present value of all reasonably certain lease payments. The right-of-use asset will be based on the liability, subject to adjustment for initial direct costs. Lease agreements that are 12 months or less are permitted to be excluded from the balance sheet. In general, leases will be amortized on a straight-line basis with the exception of finance lease agreements. ASU 2016-02 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08), clarifies that the analysis must focus on whether the entity has control of the goods or services before they are transferred to the customer. ASU 2016-08 also provides additional guidance about how to apply the control principle when services are provided and when goods or services are combined with other goods or services. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Accounting Standards Update No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting (ASU 2016-09). The new guidance simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, calculation of earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.

Accounting Standards Update No. 2016-10, Identifying Performance Obligations and Licensing (ASU 2016-10) amends the revenue guidance in ASU 2014-09 on identifying performance obligations and accounting for licenses of intellectual property. ASU 2016-10 changed the Financial Accounting Standards Board's previous proposals on renewals of right-to-use licenses and contractual restrictions. The effective date of the standard for the Company will coincide with ASU 2014-09 during the first quarter 2018. The Company is currently assessing the impact the adoption of this guidance will have on the Company’s financial position or results of operations.
Fair Value
Fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement 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).
The following describes the methods and assumptions used by Nationstar in estimating fair values:
Cash and Cash Equivalents, Restricted Cash (Level 1) – The carrying amount reported in the consolidated balance sheets approximates fair value.
Mortgage Loans Held for Sale (Level 2) – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value.
Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued on a recurring basis using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, Nationstar classifies these valuations as Level 2 in the fair value disclosures.

The Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Nationstar may also purchase loans out of a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has elected to carry these loans at fair value, which is a Level 2 fair value measurement. See Note 5, Mortgage Loan Held for Sale and Investment for more information.
Mortgage Loans Held for Investment, net (Level 3) – Nationstar determines the fair value of loans held for investment, net, using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from internally developed valuation models, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 5, Mortgage Loan Held for Sale and Investment for more information.
Mortgage Servicing Rights – Fair Value (Level 3) – Nationstar estimates the fair value of its forward MSRs on a recurring basis using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, ancillary revenues and costs to service. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the fair value of the MSRs. Quarterly, management obtains third party valuations to assess the reasonableness of the fair value calculations provided by the internal cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Advances, net (Level 3) - We value advances at their net realizable value, which generally approximates fair value, because advances have no stated maturity, are generally realized within a relatively short period of time and do not bear interest. See Note 3, Advances, Net for more information.
Reverse Mortgage Interests (Level 3) – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These interests are carried at lower of cost or market in the financial statements. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar reverse mortgage loans, adjusted for certain factors. As the adjustments to factors require the use of judgment, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 4, Reverse Mortgage Interests for more information.
Derivative Financial Instruments (Level 2) – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the balance sheet. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of underlying mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. Nationstar has entered into Eurodollar futures contracts as part of its hedging strategy. The future contracts are measured at fair value on a recurring basis and classified as Level 2 in the fair value disclosures as the valuation is based on market observable data. See Note 7, Derivative Financial Instruments for more information.
Advance Facilities and Warehouse Facilities (Level 2) – As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheets approximates fair value. See Note 8, Indebtedness for more information.
Unsecured Senior Notes (Level 1) – The fair value of unsecured senior notes, which are carried at amortized cost, is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value. See Note 8, Indebtedness for more information.
Nonrecourse Debt – Legacy Assets (Level 3) – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3. See Note 8, Indebtedness for more information.
Excess Spread Financing (Level 3) – Nationstar estimates fair value on a recurring basis based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, average life, recapture rates and discount rate. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Mortgage Servicing Rights Financing Liability (Level 3) - Nationstar estimates fair value on a recurring basis based on the present value of future expected discounted cash flows. The cash flow assumptions used in the model are based on various factors, with the key assumptions being advance financing rates, annual advance recovery rates and working capital. As these prices are derived from a combination of internally developed valuation models based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities for more information.
Participating Interest Financing (Level 2) – Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. Nationstar classifies these valuations as Level 2 in the fair value disclosures. See Note 2, Mortgage Servicing Rights and Related Liabilities, and Note 8, Indebtedness for more information.
HECM Securitizations (Level 3) – Nationstar estimates fair value of the nonrecourse debt related to HECM securitization based on the present value of future expected discounted cash flows with the discount rate approximating that of similar financial instruments. As the prices are derived from both internal models and other observable inputs, Nationstar classifies this as Level 3 in the fair value disclosures. See Note 8, Indebtedness for more information.
v3.4.0.3
Nature of Business and Basis of Presentation (Tables)
 3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Error Corrections and Prior Period Adjustments
As shown in the table below, pursuant to the adoption of ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, the Company has reclassified unamortized debt issuance costs associated with its unsecured senior notes, advance facilities, warehouse facilities and other nonrecourse debt in its previously reported Consolidated Balance Sheet as of December 31, 2015 as follows:

 
As presented
 
 
 
As adjusted
 
December 31, 2015
 
Reclassification
 
December 31, 2015
Other assets
$
758,969

 
$
(37,137
)
 
$
721,832

Unsecured senior notes
2,048,694

 
(22,940
)
 
2,025,754

Advance facilities
1,646,123

 
(6,433
)
 
1,639,690

Warehouse facilities
1,893,526

 
(3,206
)
 
1,890,320

Other nonrecourse debt
6,670,598

 
(4,558
)
 
6,666,040
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities (Tables)
 3 Months Ended
Mar. 31, 2016
Transfers and Servicing [Abstract]  
Schedule of Servicing Assets at Fair Value
MSRs and Related Liabilities
March 31, 2016
 
December 31, 2015
MSRs - fair value
$
3,088,123

 
$
3,358,327

MSRs - LOCOM
7,961

 
8,646

Mortgage servicing rights
$
3,096,084

 
$
3,366,973

 
 
 
 
Mortgage servicing liabilities - LOCOM
$
18,065

 
$
25,260

 
 
 
 
Excess spread financing - fair value
$
1,161,270

 
$
1,232,086

Mortgage servicing rights financing liability - fair value
81,729

 
68,696

MSR related liabilities (nonrecourse)
$
1,242,999

 
$
1,300,782

The activity of MSRs carried at fair value is as follows for the dates indicated:
 
Three months ended March 31,
MSRs - Fair Value
2016
 
2015
Fair value at the beginning of the period
$
3,358,327

 
$
2,949,739

Additions:
 
 
 
Servicing resulting from transfers of financial assets
39,663

 
44,232

Purchases of servicing assets
1,643

 
238,413

Dispositions:
 
 
 
Dispositions
(18,621
)
 
—

Changes in fair value:
 
 
 
Due to changes in valuation inputs or assumptions used in the valuation model
(235,581
)
 
(109,684
)
Other changes in fair value
(57,308
)
 
(100,502
)
Fair value at the end of the period
$
3,088,123

 
$
3,022,198

The following table provides a breakdown of the total credit and interest sensitive unpaid principal balances (UPBs) for Nationstar's forward owned MSRs that are carried at fair value.
 
March 31, 2016
 
December 31, 2015

UPB
 
Fair Value
 
UPB
 
Fair Value
Credit sensitive
$
214,623,983

 
$
1,918,310

 
$
224,334,415

 
$
2,016,617

Interest sensitive
118,036,249

 
1,169,813

 
121,341,842

 
1,341,710

             Total
$
332,660,232

 
$
3,088,123

 
$
345,676,257

 
$
3,358,327
Schedule of Assumptions for Fair Value of Mortgage Service Rights
Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:
Credit Sensitive
March 31, 2016
 
December 31, 2015
Discount rate
11.6
%
 
11.6
%
Total prepayment speeds
16.4
%
 
16.5
%
Expected weighted-average life
5.8 years

 
5.9 years

 
 
 
 
Interest Sensitive
March 31, 2016
 
December 31, 2015
Discount rate
9.2
%
 
9.1
%
Total prepayment speeds
14.1
%
 
12.4
%
Expected weighted-average life
5.6 years

 
6.1 years

The range of various assumptions used in Nationstar's valuation of Excess Spread financing were as follows:
Excess Spread Financing
Prepayment Speeds
 
Average
Life (Years)
 
Discount
Rate
 
Recapture Rate
March 31, 2016
 
 
 
 
 
 
 
Low
8.5%
 
4.1
 
8.5%
 
6.7%
High
15.9%
 
7.2
 
14.1%
 
28.9%
Weighted-average
11.9%
 
5.8
 
11.0%
 
18.3%
December 31, 2015
 
 
 
 
 
 
 
Low
7.4%
 
4.2
 
8.5%
 
6.8%
High
17.1%
 
7.8
 
14.1%
 
30.0%
Weighted-average
11.6%
 
5.9
 
11.2%
 
17.7%
The weighted average assumptions used in the valuation of mortgage servicing rights financing liability were as follows:
 
March 31, 2016
 
December 31, 2015
Advance financing rates
3.1
%
 
3.0
%
Annual advance recovery rates
20.5
%
 
20.9
%
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]
The following table shows the hypothetical effect on the fair value of excess spread financing using certain unfavorable variations of the expected levels of key assumptions used in valuing these liabilities at the dates indicated:
 
Discount Rate
 
Total Prepayment
Speeds
 
100 bps
Adverse
Change
 
200 bps
Adverse
Change
 
10%
Adverse
Change
 
20%
Adverse
Change
March 31, 2016
 
 
 
 
 
 
 
Excess spread financing
$
43,552

 
$
90,412

 
$
42,394

 
$
88,488

December 31, 2015
 
 
 
 
 
 
 
Excess spread financing
$
41,806

 
$
86,791

 
$
36,530

 
$
76,373

The following table shows the hypothetical effect on the fair value of the MSRs using certain unfavorable variations of the expected levels of key assumptions used in valuing these assets at March 31, 2016 and December 31, 2015:
 
Discount Rate
 
Total Prepayment
Speeds
 
100 bps
Adverse
Change
 
200 bps
Adverse
Change
 
10%
Adverse
Change
 
20%
Adverse
Change
March 31, 2016
 
 
 
 
 
 
 
Mortgage servicing rights
$
(105,221
)
 
$
(206,145
)
 
$
(132,489
)
 
$
(253,694
)
December 31, 2015
 
 
 
 
 
 
 
Mortgage servicing rights
$
(123,115
)
 
$
(237,779
)
 
$
(132,277
)
 
$
(253,028
)
Activity of MSRs at Amortized Cost
The activity of MSRs carried at amortized cost is as follows for the dates indicated:
 
Three months ended March 31,
 
2016
 
2015
 
Assets
 
Liabilities
 
Assets
 
Liabilities
Activity of MSRs - LOCOM
 
 
 
 
 
 
 
Balance at the beginning of the period
$
8,646

 
$
25,260

 
$
11,582

 
$
65,382

Additions:
 
 
 
 
 
 
 
Purchase/assumptions of servicing rights/obligations
—

 
—

 
—

 
—

Deductions:
 
 
 
 
 
 
 
Amortization/accretion
(685
)
 
(7,195
)
 
(798
)
 
(6,783
)
Balance at end of the period
$
7,961

 
$
18,065

 
$
10,784

 
$
58,599

Fair value at end of period
$
28,129

 
$
2,416

 
$
32,618

 
$
55,579
Schedule of Fees Earned in Exchange for Servicing Financial Assets
The following table provides a breakout of revenue associated with servicing assets and liabilities.
 
Three months ended March 31,
Service Fee Income (Loss)
2016
 
2015
Contractually specified servicing fees
$
281,088

 
$
276,444

Incentive and modification income
23,801

 
22,865

Late fees
18,523

 
17,583

Other service-related income
30,294

 
33,120

Remittances to counterparties for contractual transfer of servicing assets
(74,387
)
 
(74,657
)
Mark-to-market
(255,008
)
 
(112,443
)
Amortization
(48,662
)
 
(62,915
)
Total service fee income (loss)
$
(24,351
)
 
$
99,997
v3.4.0.3
Advances, Net (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Schedule of Accounts Receivable
 
March 31, 2016
 
December 31, 2015
Agency
$
1,280,744

 
$
1,396,176

Non-agency
789,855

 
826,907

Total advances, net
$
2,070,599

 
$
2,223,083
v3.4.0.3
Reverse Mortgage Interests (Tables)
 3 Months Ended
Mar. 31, 2016
Reverse Mortgage Interests [Abstract]  
Reverse Mortgage Interest

 
March 31, 2016
 
December 31, 2015
Participating Interests
$
5,752,917

 
$
5,864,329

Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively
682,797

 
682,137

Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively
1,093,157

 
967,857

Reverse mortgage loans held for sale
55,215

 
—

Total reverse mortgage interests
$
7,584,086

 
$
7,514,323
v3.4.0.3
Mortgage Loans Held for Sale and Investment (Tables)
 3 Months Ended
Mar. 31, 2016
Mortgage Loans Held for Sale and Investment [Abstract]  
Schedule of Mortgage Loans Held-for-Sale
The total UPB of mortgage loans held for investment for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated:
Mortgage Loans Held for Investment - Unpaid Principal Balance
March 31, 2016
 
December 31, 2015
Foreclosure
$
40,532

 
$
41,406

Mortgage loans held for sale consist of the following for the dates indicated:
 
March 31, 2016
 
December 31, 2015
Mortgage loans held for sale – unpaid principal balance
$
1,792,620

 
$
1,373,607

Mark-to-market adjustment(1)
88,034

 
56,084

Total mortgage loans held for sale
$
1,880,654

 
$
1,429,691


(1) The mark-to-market adjustment is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations.

Nationstar accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. When a loan is placed on non-accrual status, Nationstar reverses the interest that had been accrued but not yet received.
The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated:
 
March 31, 2016
 
December 31, 2015
Mortgage Loans Held for Sale - Unpaid Principal Balance
UPB
 
Fair Value
 
UPB
 
Fair Value
Non-accrual
$
31,253

 
$
28,030

 
$
31,390

 
$
28,996

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was as follows for the dates indicated:
Mortgage Loans Held for Sale - Unpaid Principal Balance
March 31, 2016
 
December 31, 2015
Foreclosure
$
21,809

 
$
16,174
Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow
A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table:
 
 
Three months ended March 31,
 
2016
 
2015
Mortgage loans held for sale – beginning balance
$
1,429,691

 
$
1,277,931

Mortgage loans originated and purchased, net of fees
4,240,116

 
4,209,078

Repurchase of loans out of Ginnie Mae securitizations
222,712

 
393,550

Claims made to third parties(1)
(13,910
)
 
(22,116
)
Proceeds on sale of and payments of mortgage loans held for sale
(4,134,959
)
 
(3,976,647
)
Gain on sale of mortgage loans(2)
137,004

 
114,202

Mortgage loans held for sale – ending balance
$
1,880,654

 
$
1,995,998



(1) This is comprised of claims made on certain government guaranteed mortgage loans upon foreclosure.
(2) The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of operations.
Schedule of Loans Held for Investment
Mortgage loans held for investment, net as of the dates indicated include: 
 
March 31, 2016
 
December 31, 2015
Mortgage loans held for investment, net – unpaid principal balance
$
240,194

 
$
250,033

Transfer discount:
 
 
 
Accretable
(14,398
)
 
(14,631
)
Non-accretable
(55,683
)
 
(58,203
)
Allowance for loan losses
(3,549
)
 
(3,549
)
Total mortgage loans held for investment, net
$
166,564

 
$
173,650
Changes in Accretable Yield on Mortgage Loans Held for Investment
The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows: 
 
Three months ended March 31, 2016
 
Twelve months ended December 31, 2015
Accretable Yield
 
 
 
Balance at the beginning of the period
$
14,631

 
$
15,503

Accretion
(668
)
 
(2,727
)
Reclassifications from nonaccretable discount
435

 
1,855

Balance at the end of the period
$
14,398

 
$
14,631
v3.4.0.3
Other Assets (Tables)
 3 Months Ended
Mar. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets
Other assets consist of the following:
 
March 31, 2016
 
December 31, 2015
Receivables from trusts, agencies and prior servicers, net (1)
$
186,268

 
$
229,452

Accrued revenue
164,417

 
180,036

Loans subject to repurchase right from Ginnie Mae
179,881

 
117,163

Goodwill
71,141

 
71,141

Intangible assets
48,006

 
49,869

Deferred financing costs
5,915

 
5,713

Prepaid expenses
18,213

 
19,800

Receivables from affiliates, net
7,219

 
7,510

Real estate owned (REO), net
3,743

 
3,595

Other
48,896

 
37,553

Total other assets
$
733,699

 
$
721,832
v3.4.0.3
Derivative Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated:
 
Expiration
Dates
 
Outstanding
Notional
 
Fair
Value
 
Recorded
Gains /
(Losses)
Three months ended March 31, 2016
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
Loan sale commitments
2016
 
$
123,810

 
$
(562
)
 
$
(814
)
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
3,272,423

 
99,462

 
10,324

Forward MBS trades
2016
 
350,830

 
346

 
(5,777
)
LPCs
2016
 
615,172

 
8,944

 
5,072

Eurodollar futures
2016-2021
 
6,000

 
11

 
(49
)
Interest rate swaps
2017
 
11,481

 
405

 
(102
)
Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
4,289

 
37

 
(32
)
       Forward MBS trades
2016
 
3,313,327

 
19,540

 
(15,794
)
LPCs
2016
 
68,933

 
233

 
1,221

Eurodollar futures
2016-2021
 
381,000

 
594

 
(518
)
Interest rate swaps
2017
 
11,481

 
431

 
110

 
 
 
 
 
 
 
 
Twelve months ended December 31, 2015
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
 
 
 
 
 
 
 
Loan sale commitments
2016
 
$
175,570

 
$
252

 
$
256

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
2,767,927

 
89,138

 
1,236

Forward MBS trades
2016
 
1,665,894

 
6,123

 
5,839

LPCs
2016
 
387,891

 
3,872

 
1,873

Eurodollar futures
2016-2021
 
176,000

 
60

 
59

Interest rate swaps and caps
2016-2017
 
845,876

 
506

 
(359
)
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
2016
 
2,304

 
5

 
2

Forward MBS trades
2016
 
1,807,418

 
3,746

 
14,614

LPCs
2016
 
314,047

 
1,454

 
(1,406
)
Eurodollar futures
2016-2021
 
95,000

 
76

 
(69
)
Interest rate swaps and caps
2016-2017
 
12,543

 
542

 
(439
)
 
 
 
 
 
 
 
 
v3.4.0.3
Indebtedness (Tables)
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Notes Payable
Notes Payable
 
 
 
 
 
 
 
 
 
March 31, 2016
 
December 31, 2015
 
Interest Rate
 
Maturity Date
 
Collateral
 
Capacity Amount
 
Outstanding
 
Collateral Pledged
 
Outstanding
 
Collateral pledged
Advance Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MBS advance financing facility
LIBOR+2.50%
 
March
2017
 
Servicing advance receivables
 
$
130,000

 
$
71,661

 
$
65,022

 
$
82,208

 
$
89,221

Nationstar agency advance financing facility
LIBOR+2.00%
 
January
2017
 
Servicing advance receivables
 
400,000

 
302,386

 
319,398

 
310,316

 
364,352

MBS advance financing facility (2012)
LIBOR+5.00%
 
May 31, 2016
 
Servicing advance receivables
 
50,000

 
44,594

 
53,380

 
50,000

 
69,942

Nationstar mortgage advance receivable
trust
LIBOR+ 2.00%
 
June
2016
 
Servicing advance receivables
 
500,000

 
330,865

 
389,681

 
335,408

 
394,110

MBS servicer advance facility (2014)
LIBOR+3.50%
 
August
2016
 
Servicing advance receivables
 
125,000

 
121,893

 
191,473

 
105,657

 
185,392

Nationstar agency advance receivables trust
LIBOR+2.00%
 
October
2017
 
Servicing advance receivables
 
1,400,000

 
695,760

 
752,588

 
762,534

 
822,504

Advance facilities principal amount
 
 
 
 
 
 
 
 
1,567,159

 
1,771,542

 
1,646,123

 
1,925,521

Debt issuance costs
 
 
 
 
 
 
 
 
(3,409
)
 
—

 
(6,433
)
 
—

Advance facilities, net of unamortized debt issuance costs
 
 
 
 
 
 
 
 
$
1,563,750


$
1,771,542

 
$
1,639,690

 
$
1,925,521

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2016
 
December 31, 2015
 
Interest Rate
 
Maturity Date
 
Collateral
 
Capacity Amount
 
Outstanding
 
Collateral Pledged
 
Outstanding
 
Collateral pledged
Warehouse Facilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$1.3 billion warehouse facility
LIBOR+2.0% to 2.875%
 
October
2016
 
Mortgage loans or MBS
 
$
1,300,000

 
$
887,423

 
$
941,098

 
$
633,694

 
$
677,775

$1.0 billion warehouse facility
LIBOR+1.75% to 3.25%
 
June
2016
 
Mortgage loans or MBS
 
1,000,000

 
725,773

 
755,697

 
544,951

 
621,526

$500 million warehouse facility
LIBOR+1.75% to 2.75%
 
September
2016
 
Mortgage loans or MBS
 
500,000

 
271,662

 
277,933

 
174,702

 
178,923

$500 million warehouse facility
LIBOR+ 2.00% to 2.50%
 
November
2016
 
Mortgage loans or MBS
 
500,000

 
204,082

 
224,325

 
257,479

 
274,497

$350 million warehouse facility
LIBOR+2.20% to 4.50%
 
April
2017
 
Mortgage loans or MBS
 
350,000

 
21,485

 
29,359

 
97,790

 
111,541

$200 million warehouse facility
LIBOR+1.50%
 
April
2017
 
Mortgage loans or MBS
 
200,000

 
67,381

 
69,202

 
8,531

 
9,052

$300 million warehouse facility
LIBOR + 2.25%
 
December
2016
 
Mortgage loans or MBS
 
300,000

 
32,723

 
38,536

 
23,014

 
27,769

$200 million warehouse facility
LIBOR + 2.75% to 3.875%
 
November
2016
 
Mortgage loans or MBS
 
200,000

 
152,832

 
191,839

 
45,106

 
50,083

$75 million warehouse facility (HCM) (1)
LIBOR+ 2.25% to 2.875%
 
October
2016
 
Mortgage loans or MBS
 
75,000

 
24,913

 
29,547

 
53,102

 
59,563

$100 million warehouse facility (HCM)
LIBOR + 2.50% to 2.75%
 
November
2016
 
Mortgage loans or MBS
 
100,000

 
28,392

 
29,613

 
55,157

 
60,581

Warehouse facilities principal amount
 
 
 
 
 
 

 
2,416,666

 
2,587,149

 
1,893,526

 
2,071,310

Debt issuance costs
 
 
 
 
 
 
 
 
(2,171
)
 
—

 
(3,206
)
 
—

Warehouse facilities, net of unamortized debt issuance costs
 
 
 
 
 
 
 
 
$
2,414,495

 
$
2,587,149

 
$
1,890,320

 
$
2,071,310

 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
Mortgage loans, net
 
 
 
 
 
 
 
 
$
1,782,803

 
$
1,867,637

 
$
1,539,457

 
$
1,681,352

Reverse mortgage interests, net
 
 
 
 
 
 
 
$
631,692

 
$
719,512

 
$
350,863

 
$
389,958



(1) This facility is a sublimit of the $1.3 billion facility specific to Home Community Mortgage (HCM).
A summary of the balances of other nonrecourse debt is presented below:
 
March 31, 2016
 
December 31, 2015
Participating interest financing
$
5,833,773

 
$
5,947,407

2014-1 HECM securitization
—

 
226,851

2015-1 HECM securitization
199,309

 
222,495

2015-2 HECM securitization
183,569

 
209,030

2016-1 HECM securitization
272,115

 
—

Nonrecourse debt - legacy assets
62,188

 
64,815

Other nonrecourse debt principal amount
6,550,954

 
6,670,598

Unamortized debt issuance costs
(5,758
)
 
(4,558
)
Other nonrecourse debt, net of unamortized debt issuance costs
$
6,545,196

 
$
6,666,040
Schedule of Unsecured Senior Notes
A summary of the balances of unsecured senior notes is presented below:
 
March 31, 2016
 
December 31, 2015
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018
$
475,000

 
$
475,000

$375 million face value, 9.625% interest rate payable semi-annually, due May 2019
362,074

 
362,750

$400 million face value, 7.875% interest rate payable semi-annually, due October 2020
400,425

 
400,448

$600 million face value, 6.500% interest rate payable semi-annually, due July 2021
595,760

 
596,955

$300 million face value, 6.500% interest rate payable semi-annually, due June 2022
213,541

 
213,541

Unsecured senior notes principal amount, subtotal
2,046,800

 
2,048,694

Debt issuance costs
(21,535
)
 
(22,940
)
Unsecured senior notes, net of unamortized debt issuance costs
$
2,025,265

 
$
2,025,754
Schedule of Maturities of Long-term Debt
As of March 31, 2016, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows:
Year
Amount
2016
$
—

2017
—

2018
475,000

2019
362,074

2020
400,425

Thereafter
809,301

Unsecured senior notes principal amount
2,046,800

Unamortized debt issuance costs
(21,535
)
Unsecured senior notes, net of unamortized debt issuance costs
$
2,025,265
v3.4.0.3
Payables and Accrued Liabilities (Tables)
 3 Months Ended
Mar. 31, 2016
Payables and Accruals [Abstract]  
Schedule of Payables and Accrued Liabilities
Payables and accrued liabilities consist of the following:
 
March 31, 2016
 
December 31, 2015
Payables to servicing and subservicing investors
$
447,996

 
$
483,535

Loans subject to repurchase from Ginnie Mae
179,881

 
117,163

Accrued bonus and payroll
68,700

 
96,381

Payables to GSEs
81,132

 
87,748

Payable to insurance carriers and insurance cancellation reserves
71,174

 
69,936

Accrued interest
63,675

 
61,071

Repurchase reserves
26,015

 
26,404

Payables to securitization trusts
20,450

 
24,910

MSR purchases payable including advances
9,702

 
21,851

Other
170,675

 
307,388

Total payables and accrued liabilities
$
1,139,400

 
$
1,296,387
v3.4.0.3
Securitizations and Financings (Tables)
 3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Assets and Liabilities of VIEs Included in Financial Statements
A summary of mortgage loans transferred by Nationstar to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below:
 
Principal Amount of Loans 60 Days or More Past Due
March 31, 2016
 
December 31, 2015
Unconsolidated securitization trusts
$
677,879

 
$
727,879

 
Three months ended March 31,
Credit Losses
2016
 
2015
Unconsolidated securitization trusts
$
32,100

 
$
57,461

Certain cash flows received from securitization trusts related to the transfer of mortgage loans accounted for as sales for the dates indicated were as follows:
 
 
Three months ended March 31,
 
2016
 
2015
 
Servicing Fees
Received
 
Loan
Repurchases
 
Servicing Fees
Received
 
Loan
Repurchases
Unconsolidated securitization trusts
$
6,009

 
$
—

 
$
6,373

 
$
—

A summary of the outstanding collateral and certificate balances for securitization trusts for which Nationstar was the transferor, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows:
 
March 31, 2016
 
December 31, 2015
Total collateral balances
$
3,020,839

 
$
3,113,784

Total certificate balances
2,726,618

 
2,810,903

A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements is presented below for the periods indicated:
 
 
March 31, 2016
 
December 31, 2015
 
Transfers
Accounted for as
Secured
Borrowings
 
Reverse Secured Borrowings
 
Transfers
Accounted for as
Secured
Borrowings
 
Reverse Secured Borrowings
Assets
 
 
 
 
 
 
 
Restricted cash
$
107,176

 
$
24,962

 
$
94,361

 
$
36,089

Reverse mortgage interests, net
—

 
6,435,794

 
—

 
6,546,466

Advances
1,461,733

 
—

 
1,580,966

 
—

Mortgage loans held for investment, net
167,222

 
—

 
172,810

 
—

Derivative financial instruments
—

 
—

 
7

 
—

Other assets
4,639

 
—

 
4,538

 
—

Total assets
$
1,740,770

 
$
6,460,756

 
$
1,852,682

 
$
6,582,555

Liabilities
 
 
 
 
 
 
 
Advance facilities
$
1,329,011

 
$
—

 
$
1,408,258

 
$
—

Payables and accrued liabilities
2,173

 
498

 
2,116

 
665

Nonrecourse debt–legacy assets
62,188

 
—

 
64,815

 
—

2014-1 HECM securitization
—

 
—

 
—

 
226,851

2015-1 HECM securitization
—

 
199,309

 
—

 
222,495

2015-2 HECM securitization
—

 
183,569

 
—

 
209,030

2016-1 HECM securitization
—

 
272,116

 
—

 
—

Participating interest financing
—

 
5,833,773

 
—

 
5,947,407

Total liabilities
$
1,393,372

 
$
6,489,265

 
$
1,475,189

 
$
6,606,448
v3.4.0.3
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2016
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
The components of income tax benefit on continuing operations were as follows:
 
Three months ended March 31,
2016
 
2015
Income tax benefit
$
(82,265
)
 
$
(27,525
)
 
 
 
 
Effective tax rate
38.2
%
 
36.6
%
v3.4.0.3
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated:
 
 
 
March 31, 2016
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,880,654

 
$
—

 
$
1,880,654

 
$
—

Mortgage servicing rights(1)
3,088,123

 
—

 
—

 
3,088,123

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
99,462

 
—

 
99,462

 
—

       Forward MBS trades
346

 
—

 
346

 
—

       LPCs
8,944

 
—

 
8,944

 
—

Interest rate swaps and caps
405

 
—

 
405

 
—

Eurodollar futures
11

 
—

 
11

 
—

Total assets
$
5,077,945

 
$
—

 
$
1,989,822

 
$
3,088,123

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
$
37

 
$
—

 
$
37

 
$
—

       Forward MBS trades
19,540

 
—

 
19,540

 
—

       LPCs
233

 
—

 
233

 
—

Interest rate swaps and caps
431

 
—

 
431

 
—

Eurodollar futures
594

 
—

 
594

 
—

Mortgage servicing rights financing
81,729

 
—

 
—

 
81,729

Excess spread financing
1,161,270

 
—

 
—

 
1,161,270

Total liabilities
$
1,263,834

 
$
—

 
$
20,835

 
$
1,242,999

 
 
 
December 31, 2015
 
 
 
Recurring Fair Value Measurements
 
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale(1)
$
1,429,691

 
$
—

 
$
1,429,691

 
$
—

Mortgage servicing rights(1)
3,358,327

 
—

 
—

 
3,358,327

Derivative financial instruments:
 
 
 
 
 
 
 
IRLCs
89,138

 
—

 
89,138

 
—

       Forward MBS trades
6,123

 
—

 
6,123

 
—

       LPCs
3,872

 
—

 
3,872

 
—

Interest rate swaps and caps
506

 
—

 
506

 
—

Eurodollar futures
60

 
—

 
60

 
—

Total assets
$
4,887,717

 
$
—

 
$
1,529,390

 
$
3,358,327

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
$
5

 
$
—

 
$
5

 
$
—

       Forward MBS trades
3,746

 
—

 
3,746

 
—

       LPCs
1,454

 
—

 
1,454

 
—

Interest rate swaps and caps
542

 
—

 
542

 
—

Eurodollar futures
76

 
—

 
76

 
—

Mortgage servicing rights financing
68,696

 
—

 
—

 
68,696

Excess spread financing
1,232,086

 
—

 
—

 
1,232,086

Total liabilities
$
1,306,605

 
$
—

 
$
5,823

 
$
1,300,782


(1) Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated:
 
Assets
 
Liabilities
Three months ended March 31, 2016
Mortgage
servicing rights
 
Excess spread
financing
 
Mortgage servicing rights financing
Beginning balance
$
3,358,327

 
$
1,232,086

 
$
68,696

Transfers into Level 3
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

Total gains or losses
 
 
 
 
 
Included in earnings
(292,889
)
 
(23,699
)
 
13,033

Purchases, issuances, sales and settlements
 
 
 
 
 
Purchases
1,643

 
—

 
—

Issuances
39,663

 
—

 
—

Sales
—

 
—

 
—

Settlements
—

 
(47,117
)
 
—

Dispositions
(18,621
)
 
—

 
—

Ending balance
$
3,088,123

 
$
1,161,270

 
$
81,729


 
Assets
 
Liabilities
Twelve months ended December 31, 2015
Mortgage
servicing rights
 
Excess spread
financing
 
Mortgage servicing rights financing
Beginning balance
$
2,949,739

 
$
1,031,035

 
$
49,430

Transfers into Level 3
—

 
—

 
—

Transfers out of Level 3
—

 
—

 
—

Total gains or losses
 
 
 
 
 
Included in earnings
(496,990
)
 
25,631

 
19,266

Purchases, issuances, sales and settlements
 
 
 
 
 
Purchases
729,984

 
—

 
—

Issuances
221,762

 
385,637

 
—

Sales
—

 
—

 
—

Settlements
—

 
(210,217
)
 
—

Dispositions
(46,168
)
 
—

 
—

Ending balance
$
3,358,327

 
$
1,232,086

 
$
68,696
Fair Value, by Balance Sheet Grouping
The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments.
 
March 31, 2016
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
460,951

 
$
460,951

 
$
—

 
$
—

Restricted cash
307,564

 
307,564

 
—

 
—

Advances, net
2,070,599

 
—

 
—

 
2,070,599

Reverse mortgage interests, net
7,584,086

 
—

 
—

 
7,624,696

Mortgage loans held for sale
1,880,654

 
—

 
1,880,654

 
—

Mortgage loans held for investment, net
166,564

 
—

 
—

 
170,584

Derivative financial instruments
109,168

 
—

 
109,168

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes
2,025,265

 
1,918,283

 
—

 
—

Advance facilities
1,563,750

 
—

 
1,563,750

 
—

Warehouse facilities
2,414,495

 
—

 
2,414,495

 
—

Mortgage servicing rights financing liability
81,729

 
—

 
—

 
81,729

Derivative financial instruments
20,835

 
—

 
20,835

 
—

Excess spread financing
1,161,270

 
—

 
—

 
1,161,270

Nonrecourse debt - legacy assets
62,188

 
—

 
—

 
61,466

Participating interest financing
5,833,773

 
—

 
5,809,749

 
—

2015-1 HECM securitization
199,309

 
—

 
—

 
208,201

2015-2 HECM securitization
183,569

 
—

 
—

 
208,619

2016-1 HECM securitization
272,115

 
—

 
—

 
290,125

 
 
 
 
 
 
 
 
 
December 31, 2015
 
Carrying
Amount
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
Financial assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
613,241

 
$
613,241

 
$
—

 
$
—

Restricted cash
332,105

 
332,105

 
—

 
—

Mortgage loans held for sale
1,429,691

 
—

 
1,429,691

 
—

Mortgage loans held for investment, net
173,650

 
—

 
—

 
174,147

Advances, net
2,223,083

 
—

 
—

 
2,223,083

Reverse mortgage interests
7,514,323

 
—

 
—

 
7,705,475

Derivative financial instruments
99,699

 
—

 
99,699

 
—

Financial liabilities:
 
 
 
 
 
 
 
Unsecured senior notes
2,048,694

 
1,911,777

 
—

 
—

Advance facilities
1,646,123

 
—

 
1,646,123

 
—

Warehouse facilities
1,893,526

 
—

 
1,893,526

 
—

Derivative financial instruments
5,823

 
—

 
5,823

 
—

Excess spread financing
1,232,086

 
—

 
—

 
1,232,086

Mortgage servicing rights financing liability
68,696

 
—

 
—

 
68,696

Nonrecourse debt - legacy assets
64,815

 
—

 
—

 
74,264

Participating interest financing
5,947,407

 
—

 
6,091,285

 
—

2014-1 HECM securitization
226,851

 
—

 
—

 
298,048

2015-1 HECM securitization
222,495

 
—

 
—

 
275,223

2015-2 HECM securitization
209,030

 
—

 
—

 
249,507
v3.4.0.3
Business Segment Reporting (Tables)
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information
The following tables are a presentation of financial information by segment for the periods indicated:
 
 
Three months ended March 31, 2016
 
 
Servicing
 
Originations
 
Xome
 
Total Operating Segments
 
Corporate and Other
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service related
 
$
(24,351
)
 
$
15,267

 
$
101,433

 
$
92,349

 
$
304

 
$
—


$
92,653

Net gain on mortgage loans held for sale
 
23,161

 
147,943

 
—

 
171,104

 
12

 
—


171,116

Total revenues
 
(1,190
)
 
163,210

 
101,433

 
263,453

 
316

 
—


263,769

Total expenses
 
184,356

 
124,838

 
89,994

 
399,188

 
22,289

 
—

 
421,477

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
84,633

 
14,561

 
3

 
99,197

 
3,646

 
—

 
102,843

Interest expense
 
(106,841
)
 
(13,142
)
 
(25
)
 
(120,008
)
 
(40,768
)
 
—

 
(160,776
)
Gain on repurchase of unsecured senior notes
 
—

 
—

 
—

 
—

 
77

 
—

 
77

Gain (loss) on interest rate swaps and caps
 
(7
)
 
—

 
—

 
(7
)
 
15

 
—

 
8

Total other income (expense)
 
(22,215
)
 
1,419

 
(22
)
 
(20,818
)
 
(37,030
)
 
—

 
(57,848
)
Income (loss) before taxes
 
$
(207,761
)
 
$
39,791

 
$
11,417

 
$
(156,553
)
 
$
(59,003
)
 
$
—

 
$
(215,556
)
Depreciation and amortization
 
$
6,189

 
$
2,632

 
$
5,934

 
$
14,755

 
$
8,389

 
$
—

 
$
23,144

Total assets
 
12,760,129

 
4,303,766

 
306,647

 
17,370,542

 
(819,018
)
 
—

 
16,551,524

  
 
 
Three months ended March 31, 2015
 
 
Servicing
 
Originations
 
Xome
 
Total Operating Segments
 
Corporate and Other
 
Eliminations
 
Consolidated
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service related
 
$
99,997

 
$
7,065

 
$
107,786

 
$
214,848

 
$
497

 
$
(222
)
 
$
215,123

Net gain on mortgage loans held for sale
 
14,013

 
151,281

 
—

 
$
165,294

 
1,700

 
—

 
$
166,994

Total revenues
 
114,010

 
158,346

 
107,786

 
380,142

 
2,197

 
(222
)
 
382,117

Total expenses
 
182,397

 
100,249

 
79,388

 
362,034

 
21,809

 
—

 
383,843

Other income (expense):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
24,639

 
15,267

 
—

 
39,906

 
3,646

 
222

 
43,774

Interest expense
 
(57,974
)
 
(14,386
)
 
(35
)
 
(72,395
)
 
(43,253
)
 
—

 
(115,648
)
Gain (loss) on interest rate swaps and caps
 
(801
)
 
—

 
—

 
(801
)
 
34

 
—

 
(767
)
Total other income (expense)
 
(34,136
)
 
881

 
(35
)
 
(33,290
)
 
(39,573
)
 
222

 
(72,641
)
Income (loss) before taxes
 
$
(102,523
)
 
$
58,978

 
$
28,363

 
$
(15,182
)
 
$
(59,185
)
 
$
—

 
$
(74,367
)
Depreciation and amortization
 
$
5,870

 
$
3,700

 
$
3,364

 
$
12,934

 
$
5,185

 
$
—

 
$
18,119

Total assets
 
9,420,014

 
1,965,961

 
236,013

 
$
11,621,988

 
1,020,380

 
—

 
$
12,642,368
v3.4.0.3
Guarantor Financial Statement Information (Tables)
 3 Months Ended
Mar. 31, 2016
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Consolidating Balance Sheets
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
 DECEMBER 31, 2015
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
—

 
$
597,303

 
$
558

 
$
15,380

 
$
—

 
$
613,241

Restricted cash
—

 
198,726

 
3

 
133,376

 
—

 
332,105

Mortgage servicing rights
—

 
3,366,973

 
—

 
—

 
—

 
3,366,973

Advances
—

 
2,223,039

 
—

 
44

 
—

 
2,223,083

Reverse mortgage interests, net
—

 
6,832,186

 
—

 
682,137

 
—

 
7,514,323

Mortgage loans held for sale
—

 
1,304,219

 
—

 
125,472

 
—

 
1,429,691

Mortgage loans held for investment, net
—

 
840

 
—

 
172,810

 
—

 
173,650

Property and equipment, net
—

 
113,228

 
868

 
28,740

 
—

 
142,836

Derivative financial instruments
—

 
96,181

 
—

 
3,518

 
—

 
99,699

Other assets
3,444

 
799,567

 
303,452

 
1,496,640

 
(1,881,271
)
 
721,832

Investment in subsidiaries
1,768,319

 
509,475

 
—

 
—

 
(2,277,794
)
 
—

Total assets
$
1,771,763

 
$
16,041,737

 
$
304,881

 
$
2,658,117

 
$
(4,159,065
)
 
$
16,617,433

Liabilities and stockholders' equity
 
 
 
 
 
 
 
 
 
 
 
Unsecured senior notes
$
—

 
$
2,025,754

 
$
—

 
$
—

 
$
—

 
$
2,025,754

Advance facilities
—

 
231,432

 
—

 
1,408,258

 
—

 
1,639,690

Warehouse facilities
—

 
1,782,060

 
—

 
108,260

 
—

 
1,890,320

Payables and accrued liabilities
4,386

 
1,222,268

 
927

 
68,806

 
—

 
1,296,387

MSR related liabilities - nonrecourse
—

 
1,300,782

 
—

 
—

 
—

 
1,300,782

Mortgage servicing liabilities
—

 
25,260

 
—

 
—

 
—

 
25,260

Derivative financial instruments
—

 
5,823

 
—

 
—

 
—

 
5,823

Other nonrecourse debt
—

 
5,942,849

 
—

 
723,191

 
—

 
6,666,040

Payables to affiliates
—

 
1,737,190

 
1,031

 
143,050

 
(1,881,271
)
 
—

Total liabilities
4,386

 
14,273,418

 
1,958

 
2,451,565

 
(1,881,271
)
 
14,850,056

Total equity
1,767,377

 
1,768,319

 
302,923

 
206,552

 
(2,277,794
)
 
1,767,377

Total liabilities and equity
$
1,771,763

 
$
16,041,737

 
$
304,881

 
$
2,658,117

 
$
(4,159,065
)
 
$
16,617,433

NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING BALANCE SHEET
 MARCH 31, 2016
 
Nationstar
Issuer
Guarantor (Subsidiaries)
Non-Guarantor (Subsidiaries)
Eliminations
Consolidated
Assets
 
 
 
 
 
 
Cash and cash equivalents
$
—

$
426,150

$
758

$
34,043

$
—

$
460,951

Restricted cash
—

172,453

3

135,108

—

307,564

Mortgage servicing rights
—

3,096,084

—

—

—

3,096,084

Advances
—

2,070,537

—

62

—

2,070,599

Reverse mortgage interests, net
—

6,901,208

—

682,878

—

7,584,086

Mortgage loans held for sale
—

1,816,028

—

64,626

—

1,880,654

Mortgage loans held for investment, net
—

(658
)
—

167,222

—

166,564

Property and equipment, net
—

113,745

865

27,545

—

142,155

Derivative financial instruments
—

105,527

—

3,641

—

109,168

Other assets
(57,595
)
603,109

311,701

1,431,086

(1,554,602
)
733,699

Investment in subsidiaries
1,639,114

572,217

—

—

(2,211,331
)
—

Total assets
$
1,581,519

$
15,876,400

$
313,327

$
2,546,211

$
(3,765,933
)
$
16,551,524

Liabilities and stockholders' equity
 
 
 
 
 
 
Unsecured senior notes
$
—

$
2,025,265

$
—

$
—

$
—

$
2,025,265

Advance facilities
—

234,739

—

1,329,011

—

1,563,750

Warehouse facilities
—

2,361,190

—

53,305

—

2,414,495

Payables and accrued liabilities
—

1,077,109

2,878

59,413

—

1,139,400

MSR related liabilities - nonrecourse
—

1,242,999

—

—

—

1,242,999

Mortgage servicing liabilities
—

18,065

—

—

—

18,065

Derivative financial instruments
—

20,835

—

—

—

20,835

Other nonrecourse debt
—

5,828,015

—

717,181

—

6,545,196

Payables to affiliates
—

1,429,069

4,731

120,802

(1,554,602
)
—

Total liabilities
—

14,237,286

7,609

2,279,712

(1,554,602
)
14,970,005

Total equity
1,581,519

1,639,114

305,718

266,499

(2,211,331
)
1,581,519

Total liabilities and equity
$
1,581,519

$
15,876,400

$
313,327

$
2,546,211

$
(3,765,933
)
$
16,551,524
Consolidating Statements of Operations
NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2016
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
Service related
$
—

 
$
(16,999
)
 
$
7,072

 
$
102,580

 
$
—

 
$
92,653

Net gain on mortgage loans held for sale
—

 
162,566

 
—

 
8,550

 
—

 
171,116

Total revenues
—

 
145,567

 
7,072

 
111,130

 
—

 
263,769

Expenses
 
 
 
 
 
 
 
 
 
 
 
Salaries wages benefits
—

 
144,238

 
1,162

 
51,962

 
—

 
197,362

General and administrative
—

 
169,535

 
3,115

 
51,465

 
—

 
224,115

Total expenses
—

 
313,773

 
4,277

 
103,427

 
—

 
421,477

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
91,080

 
—

 
11,763

 
—

 
102,843

Interest expense
—

 
(141,576
)
 
—

 
(19,200
)
 
—

 
(160,776
)
Gain on repurchase of unsecured senior notes
—

 
77


—

 
—

 
—

 
77

Gain (loss) on interest rate swaps and caps
—

 
15

 
—

 
(7
)
 
—

 
8

Gain (loss) from subsidiaries
(132,389
)
 
2,956

 
—

 
—

 
129,433

 
—

Total other income (expense)
(132,389
)
 
(47,448
)
 
—

 
(7,444
)
 
129,433

 
(57,848
)
Income (loss) before taxes
(132,389
)
 
(215,654
)
 
2,795

 
259

 
129,433

 
(215,556
)
Income tax expense
—

 
(82,265
)
 
—

 
—

 
—

 
(82,265
)
Net income (loss)
(132,389
)
 
(133,389
)
 
2,795

 
259

 
129,433

 
(133,291
)
Less: Net gain (loss) attributable to noncontrolling interests
—

 
(1,000
)
 
—

 
98

 
—

 
(902
)
Net income (loss) excluding noncontrolling interests
$
(132,389
)
 
$
(132,389
)
 
$
2,795

 
$
161

 
$
129,433

 
$
(132,389
)







NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2015
 
Nationstar
 
Issuer
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Revenues
 
 
 
 
 
 
 
 
 
 
 
Service related
$
—

 
$
102,179

 
$
(345
)
 
$
113,511

 
$
(222
)
 
$
215,123

Net gain on mortgage loans held for sale
—

 
156,847

 
—

 
10,147

 
—

 
166,994

Total revenues
—

 
259,026

 
(345
)
 
123,658

 
(222
)
 
382,117

Expenses
 
 
 
 
 
 
 
 
 
 
 
Salaries wages benefits
—

 
128,433

 
354

 
49,968

 
—

 
178,755

General and administrative
—

 
164,532

 
50

 
40,506

 
—

 
205,088

Total expenses
—

 
292,965

 
404

 
90,474

 
—

 
383,843

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
Interest income
—

 
36,120

 
—

 
7,432

 
222

 
43,774

Interest expense
—

 
(99,867
)
 
—

 
(15,781
)
 
—

 
(115,648
)
Gain (loss) on interest rate swaps and caps
—

 
34

 
—

 
(801
)
 
—

 
(767
)
Gain (loss) from subsidiaries
(48,315
)
 
23,209

 
—

 
—

 
25,106

 
—

Total other income (expense)
(48,315
)
 
(40,504
)
 
—

 
(9,150
)
 
25,328

 
(72,641
)
Income (loss) before taxes
(48,315
)
 
(74,443
)
 
(749
)
 
24,034

 
25,106


(74,367
)
Income tax benefit
—

 
(27,525
)
 
—

 
—

 
—

 
(27,525
)
Net income (loss)
(48,315
)
 
(46,918
)
 
(749
)
 
24,034

 
25,106

 
(46,842
)
Less: Net gain attributable to noncontrolling interests
—

 
1,397

 
—

 
76

 
—

 
1,473

Net income (loss) excluding noncontrolling interests
$
(48,315
)
 
$
(48,315
)
 
$
(749
)
 
$
23,958

 
$
25,106

 
$
(48,315
)


 
Consolidating Statements of Cash Flows

NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2015
 
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Operating activities
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(48,315
)
 
$
(48,315
)
 
$
(749
)
 
$
23,958

 
$
25,106

 
$
(48,315
)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
 
—

 
1,473

 
—

 
—

 
—

 
1,473

(Gain) loss from subsidiaries
 
48,315

 
(23,209
)
 
—

 
—

 
(25,106
)
 
—

Share-based compensation
 
—

 
5,524

 
—

 
—

 
—

 
5,524

Excess tax benefit from share based compensation
 
—

 
(1,095
)
 
—

 
—

 
—

 
(1,095
)
Net gain on mortgage loans held for sale
 
—

 
(156,847
)
 
—

 
(10,147
)
 
—

 
(166,994
)
Mortgage loans originated and purchased, net of fees
 
—

 
(4,209,078
)
 
—

 
—

 
—

 
(4,209,078
)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
 
—

 
(405,893
)
 
—

 
—

 
—

 
(405,893
)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment
 
—

 
3,998,101

 
—

 
5,025

 
—

 
4,003,126

Gain (loss) on interest rate swaps and caps
 
—

 
(34
)
 
—

 
801

 
—

 
767

Depreciation and amortization
 
—

 
14,758

 
—

 
3,361

 
—

 
18,119

Amortization (accretion) of premiums (discounts)
 
—

 
(6,759
)
 
—

 
(303
)
 
—

 
(7,062
)
Fair value changes in excess spread financing
 
—

 
13,114

 
—

 
—

 
—

 
13,114

Fair value changes and amortization of mortgage servicing rights
 
—

 
204,200

 
—

 
—

 
—

 
204,200

Fair value change in mortgage servicing rights financing liability
 
—

 
(4,386
)
 
—

 
—

 
—

 
(4,386
)
Changes in assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 


Advances
 
—

 
93,149

 
—

 
2,287

 
—

 
95,436

Reverse mortgage interests
 
—

 
(258,916
)
 
—

 
78,123

 
—

 
(180,793
)
Other assets
 
5,442

 
379,162

 
1,199

 
(367,126
)
 
—

 
18,677

Payables and accrued liabilities
 
—

 
7,233

 
14

 
(4,374
)
 
—

 
2,873

Net cash attributable to operating activities
 
5,442

 
(397,818
)
 
464

 
(268,395
)
 
—

 
(660,307
)
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2015
(Continued)
 
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Investing activities
 
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions, net of disposals
 
—

 
(7,243
)
 
—

 
(4,750
)
 
—

 
(11,993
)
Purchase of forward mortgage servicing rights, net of liabilities incurred
 
—

 
(196,081
)
 
—

 
—

 
—

 
(196,081
)
Acquisitions, net of cash acquired
 
—

 
—

 
—

 
(31,276
)
 
—

 
(31,276
)
Net cash attributable to investing activities
 
—

 
(203,324
)
 
—

 
(36,026
)
 
—

 
(239,350
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
 
Transfers to restricted cash, net
 
—

 
(24,925
)
 
—

 
(48,087
)
 
—

 
(73,012
)
Issuance of common stock, net of issuance cost
 
—

 
497,758

 
—

 
—

 
—

 
497,758

Debt financing costs
 
—

 
(1,549
)
 
—

 
—

 
—

 
(1,549
)
Increase (decrease) in advance facilities
 
—

 
(332,696
)
 
—

 
314,225

 
—

 
(18,471
)
Increase in warehouse facilities
 
—

 
899,756

 
—

 
5,094

 
—

 
904,850

Proceeds from HECM Securitization
 
—

 
—

 
—

 
73,082

 
—

 
73,082

Repayment of HECM Securitization
 
—

 
—

 
—

 
(26,829
)
 
—

 
(26,829
)
Issuance of excess spread financing
 
—

 
52,957

 
—

 
—

 
—

 
52,957

Repayment of excess spread financing
 
—

 
(49,516
)
 
—

 
—

 
—

 
(49,516
)
Increase in participating interest financing in reverse mortgage interests
 
—

 
64,781

 
—

 
—

 
—

 
64,781

Repayment of nonrecourse debt – legacy assets
 
—

 
(135
)
 
—

 
(3,138
)
 
—

 
(3,273
)
Excess tax benefit from share-based compensation
 
—

 
1,095

 
—

 
—

 
—

 
1,095

Redemption of shares for stock vesting
 
(5,442
)
 
—

 
—

 
—

 
—

 
(5,442
)
Net cash attributable to financing activities
 
(5,442
)
 
1,107,526

 
—

 
314,347

 
—

 
1,416,431

Net increase in cash and cash equivalents
 
—

 
506,384

 
464

 
9,926

 
—

 
516,774

Cash and cash equivalents at beginning of period
 
—

 
279,770

 
288

 
18,944

 
—

 
299,002

Cash and cash equivalents at end of period
 
$
—

 
$
786,154

 
$
752

 
$
28,870

 
$
—

 
$
815,776

NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Operating Activities
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
(132,389
)
 
$
(132,389
)
 
$
2,795

 
$
161

 
$
129,433

 
$
(132,389
)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
—

 
(1,000
)
 
—

 
98

 
—

 
(902
)
(Gain) loss from subsidiaries
132,389

 
(2,956
)
 
—

 
—

 
(129,433
)
 
—

Share-based compensation
—

 
4,857

 
20

 
1,966

 
—

 
6,843

Gain on repurchase of unsecured senior notes
—

 
(77
)
 
—

 
—

 
—

 
(77
)
Excess tax deficiency from share-based compensation
—

 
2,795

 
—

 
—

 
—

 
2,795

Gain on mortgage loans held for sale
—

 
(162,566
)
 
—

 
(8,550
)
 
—

 
(171,116
)
Mortgage loans originated and purchased, net of fees
—

 
(4,006,685
)
 
—

 
(233,431
)
 
—

 
(4,240,116
)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations
—

 
(486,124
)
 
—

 
—

 
—

 
(486,124
)
Proceeds on sale of and payments of mortgage loans held for sale
—

 
4,071,502

 
—

 
305,740

 
—

 
4,377,242

(Gain) loss on derivatives including ineffectiveness
—

 
(15
)
 
—

 
7

 
—

 
(8
)
Depreciation and amortization
—

 
17,210

 
—

 
5,934

 
—

 
23,144

Amortization (accretion) of premiums (discounts)
—

 
5,982

 
—

 
3,896

 
—

 
9,878

Fair value changes in excess spread financing
—

 
(23,699
)
 
—

 
—

 
—

 
(23,699
)
Fair value changes and amortization/accretion of mortgage servicing rights
—

 
286,378

 
—

 
—

 
—

 
286,378

Fair value change in mortgage servicing rights financing liability
—

 
13,033

 
—

 
—

 
—

 
13,033

Changes in assets and liabilities:
 
 
 
 
 
 
 
 
 
 
 
Advances
—

 
152,502

 
—

 
(18
)
 
—

 
152,484

Reverse mortgage interests
—

 
(14,257
)
 
—

 
(741
)
 
—

 
(14,998
)
Other assets
56,615

 
(125,563
)
 
(4,569
)
 
99,628

 
—

 
26,111

Payables and accrued liabilities
—

 
(152,453
)
 
1,951

 
(9,393
)
 
—

 
(159,895
)
Net cash attributable to operating activities
56,615

 
(553,525
)
 
197

 
165,297

 
—

 
(331,416
)
NATIONSTAR MORTGAGE HOLDINGS INC.
CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2016
(Continued)
 
Nationstar
 
Issuer
(Parent)
 
Guarantor
(Subsidiaries)
 
Non-Guarantor
(Subsidiaries)
 
Eliminations
 
Consolidated
Investing activities
 
 
 
 
 
 
 
 
 
 
 
Property and equipment additions, net of disposals
—

 
(9,768
)
 
3

 
(3,339
)
 
—

 
(13,104
)
Purchase of forward mortgage servicing rights, net of liabilities incurred
—

 
(1,530
)
 
—

 
—

 
—

 
(1,530
)
Purchases of reverse mortgage servicing rights and interests
—

 
(55,215
)
 
—

 
—

 
—

 
(55,215
)
Proceeds on sale of forward service rights
—

 
18,361

 
—

 
—

 
—

 
18,361

Proceeds on sale of reverse mortgage interest
—

 
450

 
—

 
—

 
—

 
450

Net cash attributable to investing activities
—

 
(47,702
)
 
3

 
(3,339
)
 
—

 
(51,038
)
Financing activities
 
 
 
 
 
 
 
 
 
 
 
Transfers (to) from restricted cash, net
—

 
26,273

 
—

 
(1,732
)
 
—

 
24,541

Debt financing costs
—

 
(2,497
)
 
—

 
—

 
—

 
(2,497
)
Increase (decrease) warehouse facilities
—

 
577,848

 
—

 
(54,955
)
 
—

 
522,893

Increase (decrease) advance facilities
—

 
199

 
—

 
(79,247
)
 
—

 
(79,048
)
Proceeds from HECM securitizations
—

 
—

 
—

 
281,680

 
—

 
281,680

Repayment of HECM securitizations
—

 
—

 
—

 
(285,985
)
 
—

 
(285,985
)
Repayment of excess spread financing
—

 
(47,117
)
 
—

 
—

 
—

 
(47,117
)
Increase in participating interest financing in reverse mortgage interests
—

 
(120,362
)
 
—

 
—

 
—

 
(120,362
)
Repayment of nonrecourse debt–legacy assets
—

 
—

 
—

 
(3,056
)
 
—

 
(3,056
)
Repurchase of unsecured senior notes
—

 
(1,475
)
 
—

 
—

 
—

 
(1,475
)
Excess tax deficiency from share-based compensation
—

 
(2,795
)
 
—

 
—

 
—

 
(2,795
)
Redemption of shares for stock vesting
(1,564
)
 
—

 
—

 
—

 
—

 
(1,564
)
Repurchase of treasury shares
(55,051
)
 
—

 
—

 
—

 
—

 
(55,051
)
Net cash attributable to financing activities
(56,615
)
 
430,074

 
—

 
(143,295
)
 
—

 
230,164

Net increase (decrease) in cash
—

 
(171,153
)
 
200

 
18,663

 
—

 
(152,290
)
Cash and cash equivalents at beginning of period
—

 
597,303

 
558

 
15,380

 
—

 
613,241

Cash and cash equivalents at end of period
$
—

 
$
426,150

 
$
758

 
$
34,043

 
$
—

 
$
460,951
v3.4.0.3
Nature of Business and Basis of Presentation - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs $ 5,915 $ 5,713
Unsecured Senior Notes    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs 21,535 22,940
Advance Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs 3,409 6,433
Warehouse Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs 2,171 3,206
Nonrecourse Debt    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs $ 5,758 4,559
As Presented | Unsecured Senior Notes    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   2,048,694
As Presented | Advance Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   1,646,123
As Presented | Warehouse Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   1,893,526
As Presented | Nonrecourse Debt    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   6,670,598
As Presented | Other Assets    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   758,969
Reclassification | Unsecured Senior Notes    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   (22,940)
Reclassification | Advance Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   (6,433)
Reclassification | Warehouse Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   (3,206)
Reclassification | Nonrecourse Debt    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   (4,558)
Reclassification | Other Assets    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   (37,137)
As Adjusted | Unsecured Senior Notes    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   2,025,754
As Adjusted | Advance Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   1,639,690
As Adjusted | Warehouse Facilities    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   1,890,320
As Adjusted | Nonrecourse Debt    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   6,666,040
As Adjusted | Other Assets    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Unamortized debt issuance costs   $ 721,832
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - MSRs and Related Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Mortgage Servicing Rights [Line Items]        
Mortgage servicing rights at fair value $ 3,088,123 $ 3,358,327    
Mortgage servicing rights 3,096,084 3,366,973    
Mortgage servicing liabilities 18,065 25,260    
Excess spread financing - fair value 1,161,270 1,232,086    
Mortgage servicing rights financing liability - fair value 81,729 68,696    
MSR related liabilities (nonrecourse) 1,242,999 1,300,782    
Mortgage servicing rights        
Mortgage Servicing Rights [Line Items]        
Mortgage servicing rights at fair value 3,088,123 3,358,327    
MSRs - LOCOM 7,961 8,646 $ 10,784 $ 11,582
Mortgage servicing liabilities $ 18,065 $ 25,260 $ 58,599 $ 65,382
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - UPB related to owned MSRs (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Owned Service Loans [Line Items]    
Principal amount outstanding on mortgage servicing rights $ 1,900,000  
Mortgage servicing rights at fair value 3,088,123 $ 3,358,327
Mortgage servicing rights    
Owned Service Loans [Line Items]    
Principal amount outstanding on mortgage servicing rights 332,660,232 345,676,257
Mortgage servicing rights at fair value 3,088,123 3,358,327
Credit Sensitive | Mortgage servicing rights    
Owned Service Loans [Line Items]    
Principal amount outstanding on mortgage servicing rights 214,623,983 224,334,415
Mortgage servicing rights at fair value 1,918,310 2,016,617
Interest Rate Sensitive | Mortgage servicing rights    
Owned Service Loans [Line Items]    
Principal amount outstanding on mortgage servicing rights 118,036,249 121,341,842
Mortgage servicing rights at fair value $ 1,169,813 $ 1,341,710
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Fair Value (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Servicing Asset at Fair Value, Amount [Roll Forward]      
Fair value at the beginning of the period $ 3,358,327    
Fair value at the end of the period 3,088,123   $ 3,358,327
Mortgage servicing rights      
Servicing Asset at Fair Value, Amount [Roll Forward]      
Fair value at the beginning of the period 3,358,327 $ 2,949,739 2,949,739
Servicing resulting from transfers of financial assets 39,663 44,232 221,762
Purchases of servicing assets 1,643 238,413 729,984
Dispositions (18,621) 0 (46,168)
Due to changes in valuation inputs or assumptions used in the valuation model (235,581) (109,684)  
Other changes in fair value (57,308) (100,502)  
Fair value at the end of the period $ 3,088,123 $ 3,022,198 $ 3,358,327
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Assumptions (Details)
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mortgage servicing rights | Credit Sensitive    
Assumption for Fair Value of Mortgage Servicing Rights    
Discount rate percent 11.60% 11.60%
Total prepayment speeds percent 16.40% 16.50%
Expected weighted-average life (in years) 5 years 9 months 18 days 5 years 10 months 24 days
Mortgage servicing rights | Interest Rate Sensitive    
Assumption for Fair Value of Mortgage Servicing Rights    
Discount rate percent 9.20% 9.10%
Total prepayment speeds percent 14.10% 12.40%
Expected weighted-average life (in years) 5 years 7 months 6 days 6 years 1 month 6 days
Excess spread financing | Minimum    
Assumption for Fair Value of Mortgage Servicing Rights    
Mortgage prepayment speeds percent 8.50% 7.40%
Average life (in years) 4 years 1 month 6 days 4 years 2 months 12 days
Discount rate percent 8.50% 8.50%
Recapture Rate percent 6.70% 6.80%
Excess spread financing | Maximum    
Assumption for Fair Value of Mortgage Servicing Rights    
Mortgage prepayment speeds percent 15.90% 17.10%
Average life (in years) 7 years 2 months 12 days 7 years 9 months 18 days
Discount rate percent 14.10% 14.10%
Recapture Rate percent 28.90% 30.00%
Excess spread financing | Weighted Average    
Assumption for Fair Value of Mortgage Servicing Rights    
Mortgage prepayment speeds percent 11.90% 11.60%
Average life (in years) 5 years 9 months 18 days 5 years 10 months 24 days
Discount rate percent 11.00% 11.20%
Recapture Rate percent 18.30% 17.70%
MSR Financing Liability | Financing rates    
Assumption for Fair Value of Mortgage Servicing Rights    
Advance financing rates 3.10% 3.00%
MSR Financing Liability | Recovery rates    
Assumption for Fair Value of Mortgage Servicing Rights    
Annual advance recovery rates 20.50% 20.90%
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - Fair Value Sensitivity Analysis (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mortgage servicing rights    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Total Prepayment Speeds, 10% Adverse Change $ (132,489) $ (132,277)
Total Prepayment Speeds, 20% Adverse Change (253,694) (253,028)
Excess spread financing    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Total Prepayment Speeds, 10% Adverse Change (42,394) (36,530)
Total Prepayment Speeds, 20% Adverse Change (88,488) (76,373)
100 Basis Points | Mortgage servicing rights    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Discount Rate, Adverse Change (105,221) (123,115)
100 Basis Points | Excess spread financing    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Discount Rate, Adverse Change (43,552) (41,806)
200 Basis Points | Mortgage servicing rights    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Discount Rate, Adverse Change (206,145) (237,779)
200 Basis Points | Excess spread financing    
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]    
Discount Rate, Adverse Change $ (90,412) $ (86,791)
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - MSR's at Amortized Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Servicing Asset at Amortized Value, Balance [Roll Forward]    
Fair value at end of period $ 28,129 $ 32,618
Servicing Liability at Amortized Value [Roll Forward]    
Balance at the beginning of the period 25,260  
Balance at end of the period 18,065  
Fair value at end of period 2,416 55,579
Mortgage servicing rights    
Servicing Asset at Amortized Value, Balance [Roll Forward]    
Balance at the beginning of the period 8,646 11,582
Purchase/assumptions of servicing rights/obligations 0 0
Amortization/accretion (685) (798)
Balance at end of the period 7,961 10,784
Servicing Liability at Amortized Value [Roll Forward]    
Balance at the beginning of the period 25,260 65,382
Purchase/assumptions of servicing rights/obligations 0 0
Amortization/accretion (7,195) (6,783)
Balance at end of the period $ 18,065 $ 58,599
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - Servicing Fees (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Transfers and Servicing [Abstract]    
Contractually specified servicing fees $ 281,088 $ 276,444
Incentive and modification income 23,801 22,865
Late fees 18,523 17,583
Other service-related income 30,294 33,120
Remittances to counterparties for contractual transfer of servicing assets (74,387) (74,657)
Mark-to-market (255,008) (112,443)
Amortization (48,662) (62,915)
Total service fee income (loss) $ (24,351) $ 99,997
v3.4.0.3
Mortgage Servicing Rights (MSR) and Related Liabilities - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Feb. 28, 2013
Principal amount outstanding on mortgage servicing rights $ 1,900,000,000      
Factor in repurchasing loans out of HMBS pools 625,000      
Mortgage servicing rights at fair value 3,088,123,000   $ 3,358,327,000  
Reverse mortgage interests, net        
Principal amount outstanding on mortgage servicing rights 29,000,000,000   29,900,000,000 $ 83,100,000
Mortgage servicing rights        
Principal amount outstanding on mortgage servicing rights 332,660,232,000   345,676,257,000  
Impairment 0   0  
Amortization/Accretion 7,195,000 $ 6,783,000    
Mortgage servicing rights at fair value $ 3,088,123,000   $ 3,358,327,000  
v3.4.0.3
Advances, Net - Schedule of Accounts Receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Receivables [Abstract]    
Agency $ 1,280,744 $ 1,396,176
Non-agency 789,855 826,907
Total advances, net $ 2,070,599 $ 2,223,083
v3.4.0.3
Advances, Net - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2016
Dec. 31, 2015
Receivables [Abstract]    
Allowance for uncollectible servicer advances $ 37.7 $ 29.9
v3.4.0.3
Reverse Mortgage Interests - Schedule of Reverse Mortgage Interest (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Unsecuritized interests, net of reserves of $33,091 and $20,133, respectively $ 1,093,157 $ 967,857
Reverse mortgage loans held for sale 55,215 0
Reverse mortgage interests, net 7,584,086 7,514,323
Unsecuritized interests, reserves 33,091 20,133
HMBS Securitized HECM    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Participating Interests 5,752,917 5,864,329
2014-1 HECM Securitization    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Other interests securitized, net of reserves of $ 27,626 and $32,780, respectively 682,797 682,137
Other interest securitized, reserves $ 27,626 $ 32,780
v3.4.0.3
Reverse Mortgage Interests - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 51 Months Ended
Mar. 31, 2016
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Claims accounts receivable $ 99,900 $ 99,900  
Funded borrower draws not yet securitized 85,400    
Servicing fees receivable 164,417 164,417 $ 180,036
Ginnie Mae HECM, FHA Reimbursement      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Proceeds from of securities sold under agreements to repurchase 747,500    
Ginnie Mae HECM      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Proceeds from of securities sold under agreements to repurchase 135,000    
HECM Scratch and Dent Portfolio      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Participating interests 21,400    
HECM      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Foreclosed assets 27,300 27,300  
Servicing fees receivable 9,700 9,700  
Acquired reverse mortgage loans   55,200  
Outstanding unpaid principal balance $ 96,500 $ 96,500  
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mortgage Loans Held for Sale and Investment [Abstract]    
Mortgage loans held for sale – unpaid principal balance $ 1,792,620 $ 1,373,607
Mark-to-market adjustment 88,034 56,084
Total mortgage loans held for sale 1,880,654 1,429,691
UPB 31,253 31,390
Fair Value 28,030 28,996
Foreclosure $ 21,809 $ 16,174
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]    
Mortgage loans held for sale – beginning balance $ 1,429,691 $ 1,277,931
Mortgage loans originated and purchased, net of fees 4,240,116 4,209,078
Repurchase of loans out of Ginnie Mae securitizations 222,712 393,550
Claims made to third parties (13,910) (22,116)
Proceeds on sale of and payments of mortgage loans held for sale (4,134,959) (3,976,647)
Gain on sale of mortgage loans 137,004 114,202
Mortgage loans held for sale – ending balance $ 1,880,654 $ 1,995,998
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total mortgage loans held for investment, net $ 166,564 $ 173,650  
Mortgage Loans Held for Investment      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Mortgage loans held for investment, net – unpaid principal balance 240,194 250,033  
Transfer discount - accretable (14,398) (14,631) $ (15,503)
Transfer discount - non-accretable (55,683) (58,203)  
Allowance for loan losses (3,549) (3,549)  
Total mortgage loans held for investment, net $ 166,564 $ 173,650  
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) - Mortgage Loans Held for Investment - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Accretable Yield Movement Schedule [Roll Forward]    
Balance at the beginning of the period $ 14,631 $ 15,503
Accretion 668 2,727
Reclassifications from nonaccretable discount (435) (1,855)
Balance at the end of the period $ 14,398 $ 14,631
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Foreclosure (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mortgage Loans Held for Sale and Investment [Abstract]    
Mortgage Loans Held for Investment in foreclosure, amount $ 40,532 $ 41,406
v3.4.0.3
Mortgage Loans Held for Sale and Investment - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Mortgage Loans Held for Investment    
Servicing Assets at Fair Value [Line Items]    
Reclassifications from (to) nonaccretable discount $ 435 $ 1,855
v3.4.0.3
Other Assets - Schedule of Others Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Receivables from trusts, agencies and prior servicers, net $ 186,268 $ 229,452
Accrued revenue 164,417 180,036
Loans subject to repurchase right from Ginnie Mae 179,881 117,163
Goodwill 71,141 71,141
Intangible assets 48,006 49,869
Deferred financing costs 5,915 5,713
Prepaid expenses 18,213 19,800
Receivables from affiliates, net 7,219 7,510
Real estate owned (REO), net 3,743 3,595
Other 48,896 37,553
Total other assets $ 733,699 $ 721,832
v3.4.0.3
Other Assets - Narrative (Details) - USD ($)
$ in Thousands
 1 Months Ended
Jun. 30, 2015
May. 31, 2015
Jan. 31, 2015
Mar. 31, 2016
Dec. 31, 2015
Business Acquisition [Line Items]          
Accounts Receivable from Securitization Valuation Reserves       $ 167,700 $ 98,800
Reclassification of mortgage servicing rights for liquidated loans       64,700  
Loans subject to repurchase right from Ginnie Mae       179,881 117,163
Unsettled trades of securities receivable       10,300  
Other net assets       $ 733,699 $ 721,832
Experience 1, Inc          
Business Acquisition [Line Items]          
Cash payment to acquire business     $ 35,900    
Goodwill acquired     20,300    
Intangible assets acquired     19,100    
Other assets acquired     $ 3,500    
Quantarium, LLC          
Business Acquisition [Line Items]          
Cash payment to acquire business   $ 12,000      
GoPaperless Solutions          
Business Acquisition [Line Items]          
Cash payment to acquire business $ 2,000        
Goodwill acquired 3,400        
Intangible assets acquired 10,400        
Other net assets $ 200        
v3.4.0.3
Derivative Financial Instruments - Narrative (Details)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Jun. 30, 2015
USD ($)
derivative_instrument
Derivative Instruments, Gain (Loss) [Line Items]      
Collateral deposits $ 10,300,000 $ 3,900,000  
Interest Rate Cap      
Derivative Instruments, Gain (Loss) [Line Items]      
Notional value   $ 100,000,000  
Interest Rate Cap 1 | Interest Rate Cap      
Derivative Instruments, Gain (Loss) [Line Items]      
Number of derivative instruments | derivative_instrument     2
Notional value     $ 800,000,000
Interest Rate Cap 2 | Interest Rate Cap      
Derivative Instruments, Gain (Loss) [Line Items]      
Notional value     $ 400,000,000
v3.4.0.3
Derivative Financial Instruments - Derivative Instruments (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Derivative financial instruments | Loan Sale Commitment    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset $ 123,810 $ 175,570
Recorded Gains / (Losses) (814) 256
Derivative financial instruments | Interest Rate Lock Commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset 3,272,423 2,767,927
Recorded Gains / (Losses) 10,324 1,236
Derivative financial instruments | Forward Contracts    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset 350,830 1,665,894
Recorded Gains / (Losses) (5,777) 5,839
Derivative financial instruments | Loan Purchase Commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset 615,172 387,891
Recorded Gains / (Losses) 5,072 1,873
Derivative financial instruments | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset 6,000 176,000
Recorded Gains / (Losses) (49) 59
Derivative financial instruments | Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Asset 11,481 845,876
Recorded Gains / (Losses) (102) (359)
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Sale Commitment    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset (562) 252
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset 99,462 89,138
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward Contracts    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset 346 6,123
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Purchase Commitments    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset 8,944 3,872
Derivative financial instruments | Fair Value, Measurements, Recurring | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset 405 60
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Fair Value - Asset 11 506
Derivative Liabilities | Interest Rate Lock Commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Liability 4,289 2,304
Recorded Gains / (Losses) (32) 2
Derivative Liabilities | Forward Contracts    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Liability 3,313,327 1,807,418
Recorded Gains / (Losses) (15,794) 14,614
Derivative Liabilities | Loan Purchase Commitments    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Liability 68,933 314,047
Recorded Gains / (Losses) 1,221 (1,406)
Derivative Liabilities | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Liability 381,000 95,000
Recorded Gains / (Losses) (518) (69)
Derivative Liabilities | Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Outstanding Notional - Liability 11,481 12,543
Recorded Gains / (Losses) 110 (439)
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments    
Derivatives, Fair Value [Line Items]    
Fair Value - Liability 37 5
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward Contracts    
Derivatives, Fair Value [Line Items]    
Fair Value - Liability 19,540 3,746
Derivative Liabilities | Fair Value, Measurements, Recurring | Loan Purchase Commitments    
Derivatives, Fair Value [Line Items]    
Fair Value - Liability 233 1,454
Derivative Liabilities | Fair Value, Measurements, Recurring | Eurodollar futures    
Derivatives, Fair Value [Line Items]    
Fair Value - Liability 594 76
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Fair Value - Liability $ 431 $ 542
v3.4.0.3
Indebtedness - Notes Payable Summary (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]      
Debt Outstanding $ 1,563,750 $ 1,639,690  
Debt issuance costs (5,915) (5,713)  
Advance Facilities      
Debt Instrument [Line Items]      
Debt issuance costs (3,409) (6,433)  
Warehouse Facilities      
Debt Instrument [Line Items]      
Debt issuance costs (2,171) (3,206)  
Servicing Segment      
Debt Instrument [Line Items]      
Debt Outstanding 1,563,750 1,639,690  
Pledged collateral 1,771,542 1,925,521  
Servicing Segment | Notes Payable, Other      
Debt Instrument [Line Items]      
Debt outstanding, gross 1,567,159 1,646,123  
Servicing Segment | Notes Payable, Other | MBS advance financing facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity 130,000    
Debt outstanding, gross   71,661 $ 82,208
Pledged collateral $ 65,022 89,221  
Servicing Segment | Notes Payable, Other | MBS advance financing facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.50%    
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 400,000    
Debt outstanding, gross   302,386 310,316
Pledged collateral $ 319,398 364,352  
Servicing Segment | Notes Payable, Other | Nationstar agency advance financing facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012)      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 50,000    
Debt outstanding, gross   44,594 50,000
Pledged collateral $ 53,380 69,942  
Servicing Segment | Notes Payable, Other | MBS advance financing facility (2012) | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 5.00%    
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 500,000    
Debt outstanding, gross   330,865 335,408
Pledged collateral $ 389,681 394,110  
Servicing Segment | Notes Payable, Other | Nationstar mortgage advance receivable trust | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014)      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 125,000    
Debt outstanding, gross   121,893 105,657
Pledged collateral $ 191,473 185,392  
Servicing Segment | Notes Payable, Other | MBS servicer advance facility (2014) | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 3.50%    
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 1,400,000    
Debt outstanding, gross   695,760 762,534
Pledged collateral $ 752,588 822,504  
Servicing Segment | Notes Payable, Other | Nationstar agency advance receivables trust | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Originations Segment | Mortgage loans, net      
Debt Instrument [Line Items]      
Debt Outstanding $ 1,782,803   1,539,457
Pledged collateral 1,867,637   1,681,352
Originations Segment | Reverse mortgage interests, net      
Debt Instrument [Line Items]      
Debt Outstanding 631,692   350,863
Pledged collateral 719,512   389,958
Originations Segment | Notes Payable to Banks      
Debt Instrument [Line Items]      
Debt outstanding, gross 2,416,666 1,893,526  
Debt Outstanding 2,414,495   1,890,320
Pledged collateral 2,587,149   2,071,310
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity 1,300,000    
Debt outstanding, gross   887,423 633,694
Pledged collateral $ 941,098   677,775
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Originations Segment | Notes Payable to Banks | $1.3 billion warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.875%    
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 1,000,000    
Debt outstanding, gross   725,773 544,951
Pledged collateral $ 755,697   621,526
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.75%    
Originations Segment | Notes Payable to Banks | $1.0 billion warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 3.25%    
Originations Segment | Notes Payable to Banks | $500 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 500,000    
Debt outstanding, gross   271,662 174,702
Pledged collateral $ 277,933   178,923
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 1.75%    
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.75%    
Originations Segment | Notes Payable to Banks | $500 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 500,000    
Debt outstanding, gross   204,082 257,479
Pledged collateral $ 224,325   274,497
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.00%    
Originations Segment | Notes Payable to Banks | $500 million warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.50%    
Originations Segment | Notes Payable to Banks | $350 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 350,000    
Debt outstanding, gross   21,485 97,790
Pledged collateral $ 29,359   111,541
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.20%    
Originations Segment | Notes Payable to Banks | $350 million warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 4.50%    
Originations Segment | Notes Payable to Banks | $200 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 200,000    
Debt outstanding, gross   67,381 8,531
Pledged collateral $ 69,202   9,052
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 1.50%    
Originations Segment | Notes Payable to Banks | $300 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 300,000    
Debt outstanding, gross   32,723 23,014
Pledged collateral $ 38,536   27,769
Originations Segment | Notes Payable to Banks | $300 million warehouse facility | LIBOR      
Debt Instrument [Line Items]      
Basis spread on rate 2.25%    
Originations Segment | Notes Payable to Banks | $200 million warehouse facility      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 200,000    
Debt outstanding, gross   152,832 45,106
Pledged collateral $ 191,839   50,083
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.75%    
Originations Segment | Notes Payable to Banks | $200 million warehouse facility | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 3.875%    
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM)      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 75,000    
Debt outstanding, gross   24,913 53,102
Pledged collateral $ 29,547   59,563
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.25%    
Originations Segment | Notes Payable to Banks | $75 million warehouse facility (HCM) | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.875%    
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM)      
Debt Instrument [Line Items]      
Maximum borrowing capacity $ 100,000    
Debt outstanding, gross   $ 28,392 55,157
Pledged collateral $ 29,613   $ 60,581
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM) | LIBOR | Minimum      
Debt Instrument [Line Items]      
Basis spread on rate 2.50%    
Originations Segment | Notes Payable to Banks | $100 million warehouse facility (HCM) | LIBOR | Maximum      
Debt Instrument [Line Items]      
Basis spread on rate 2.75%    
v3.4.0.3
Indebtedness - Summary of Unsecured Senior Notes (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   $ 2,046,800,000 $ 2,048,694,000
Debt issuance costs $ (5,915,000) (5,713,000)  
Unsecured senior notes, net of unamortized debt issuance costs 2,025,265,000 2,025,754,000  
Unsecured Senior Notes      
Debt Instrument [Line Items]      
Debt issuance costs (21,535,000) (22,940,000)  
Unsecured senior notes, net of unamortized debt issuance costs 2,025,265,000    
Debt issued 2,046,800,000    
Unsecured Senior Notes | $475 million face value, 6.500% interest rate payable semi-annually, due August 2018      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   475,000,000 475,000,000
Debt issued $ 475,000,000    
Interest Rate 6.50%    
Unsecured Senior Notes | $375 million face value, 9.625% interest rate payable semi-annually, due May 2019      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   362,074,000 362,750,000
Debt issued $ 375,000,000    
Interest Rate 9.625%    
Unsecured Senior Notes | $400 million face value, 7.875% interest rate payable semi-annually, due October 2020      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   400,425,000 400,448,000
Debt issued $ 400,000,000    
Interest Rate 7.875%    
Unsecured Senior Notes | $600 million face value, 6.500% interest rate payable semi-annually, due July 2021      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   595,760,000 596,955,000
Debt issued $ 600,000,000    
Interest Rate 6.50%    
Unsecured Senior Notes | $300 million face value, 6.500% interest rate payable semi-annually, due June 2022      
Debt Instrument [Line Items]      
Unsecured senior notes principal amount, subtotal   $ 213,541,000 $ 213,541,000
Debt issued $ 300,000,000    
Interest Rate 6.50%    
v3.4.0.3
Indebtedness - Schedule of Notes Maturity (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]    
Unamortized debt issuance costs $ (5,915) $ (5,713)
Unsecured senior notes, net of unamortized debt issuance costs 2,025,265 2,025,754
Unsecured Senior Notes    
Debt Instrument [Line Items]    
2016   0
2017 0  
2018 475,000  
2019 362,074  
2020 400,425  
Thereafter 809,301  
Unsecured senior notes principal amount 2,046,800  
Unamortized debt issuance costs (21,535) $ (22,940)
Unsecured senior notes, net of unamortized debt issuance costs $ 2,025,265  
v3.4.0.3
Indebtedness - Summary of Other Non-Recourse Debt (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]    
Non-Recourse Debt $ 6,545,196 $ 6,666,040
Unamortized debt issuance costs (5,915) (5,713)
Nonrecourse Debt    
Debt Instrument [Line Items]    
Unamortized debt issuance costs (5,758) (4,559)
Fair Value, Measurements, Recurring | Participating Interest Financing    
Debt Instrument [Line Items]    
Non-Recourse Debt 5,833,773  
Fair Value, Measurements, Recurring | Reported Value Measurement | Participating Interest Financing    
Debt Instrument [Line Items]    
Non-Recourse Debt 5,833,773 5,947,407
Fair Value, Measurements, Recurring | Reported Value Measurement | 2014-1 HECM Securitization    
Debt Instrument [Line Items]    
Non-Recourse Debt 0 226,851
Fair Value, Measurements, Recurring | Reported Value Measurement | 2015-1 HECM Securitization    
Debt Instrument [Line Items]    
Non-Recourse Debt 199,309 222,495
Fair Value, Measurements, Recurring | Reported Value Measurement | 2015-2 HECM Securitization    
Debt Instrument [Line Items]    
Non-Recourse Debt 183,569 209,030
Fair Value, Measurements, Recurring | Reported Value Measurement | 2016-1 HECM Securitization    
Debt Instrument [Line Items]    
Non-Recourse Debt 272,115 0
Fair Value, Measurements, Recurring | Reported Value Measurement | Legacy Asset    
Debt Instrument [Line Items]    
Non-Recourse Debt 62,188 64,815
Fair Value, Measurements, Recurring | Reported Value Measurement | Other    
Debt Instrument [Line Items]    
Non-Recourse Debt $ 6,550,954 $ 6,670,598
v3.4.0.3
Indebtedness - Narrative (Details)
 3 Months Ended 12 Months Ended
Mar. 31, 2016
USD ($)
credit_facility
Mar. 31, 2015
USD ($)
Dec. 31, 2015
USD ($)
Mar. 30, 2016
USD ($)
Nov. 30, 2015
USD ($)
Jun. 30, 2015
USD ($)
Dec. 31, 2014
USD ($)
Nov. 30, 2009
USD ($)
Debt Instrument [Line Items]                
Repurchase of unsecured senior notes $ 1,475,000 $ 0            
Gain on repurchase of unsecured senior notes 77,000 0            
Maximum percentage redeemable on unsecured debt     35.00%          
Non-Recourse Debt 6,545,196,000   $ 6,666,040,000          
Principal amount outstanding on securitized financing               $ 222,000,000
Debt Outstanding 1,563,750,000   1,639,690,000          
Minimum tangible net worth 681,700,000              
Securities Pledged as Collateral                
Debt Instrument [Line Items]                
Principal amount outstanding on securitized financing 236,000,000   242,400,000          
Securities Repurchase Facility Class A and Class M                
Debt Instrument [Line Items]                
Proceeds from sale of notes   $ 73,100,000            
2015-1 HECM Securitization                
Debt Instrument [Line Items]                
Securitized unpaid principal balance 0         $ 269,400,000    
2015-2 HECM Securitization                
Debt Instrument [Line Items]                
Securitized unpaid principal balance 0       $ 217,300,000      
2016-1 HECM Securitization                
Debt Instrument [Line Items]                
Securitized unpaid principal balance 0     $ 281,700,000        
Nonrecourse Debt                
Debt Instrument [Line Items]                
Principal Amount Outstanding $ 72,300,000   75,400,000          
Notes Payable, MBS                
Debt Instrument [Line Items]                
Minimum interest rate 0.70%              
Maximum interest rate 7.00%              
Notes Payable, Other | 2014-1 HECM Securitization                
Debt Instrument [Line Items]                
Principal amount outstanding on securitized financing             $ 343,600,000  
Notes Payable, Other | Securities Repurchase Facility Class A                
Debt Instrument [Line Items]                
Debt Outstanding             70,400,000  
Notes Payable, Other | Securities Repurchase Facility Class M                
Debt Instrument [Line Items]                
Debt Outstanding             $ 36,200,000  
Secured Debt | Nonrecourse Debt                
Debt Instrument [Line Items]                
Interest Rate 7.50%              
Fair Value, Measurements, Recurring                
Debt Instrument [Line Items]                
Debt Outstanding $ 1,563,750,000              
Fair Value, Measurements, Recurring | Participating Interest Financing                
Debt Instrument [Line Items]                
Non-Recourse Debt 5,833,773,000              
Reported Value Measurement | Fair Value, Measurements, Recurring                
Debt Instrument [Line Items]                
Debt Outstanding     1,646,123,000          
Reported Value Measurement | Fair Value, Measurements, Recurring | Participating Interest Financing                
Debt Instrument [Line Items]                
Non-Recourse Debt 5,833,773,000   5,947,407,000          
Reported Value Measurement | Fair Value, Measurements, Recurring | 2014-1 HECM Securitization                
Debt Instrument [Line Items]                
Non-Recourse Debt 0   226,851,000          
Reported Value Measurement | Fair Value, Measurements, Recurring | 2015-1 HECM Securitization                
Debt Instrument [Line Items]                
Non-Recourse Debt 199,309,000   222,495,000          
Reported Value Measurement | Fair Value, Measurements, Recurring | 2015-2 HECM Securitization                
Debt Instrument [Line Items]                
Non-Recourse Debt 183,569,000   209,030,000          
Reported Value Measurement | Fair Value, Measurements, Recurring | 2016-1 HECM Securitization                
Debt Instrument [Line Items]                
Non-Recourse Debt 272,115,000   0          
Reported Value Measurement | Fair Value, Measurements, Recurring | Legacy Asset                
Debt Instrument [Line Items]                
Non-Recourse Debt $ 62,188,000   $ 64,815,000          
Warehouse Facilities                
Debt Instrument [Line Items]                
Line of Credit Facility, Covenant Compliance, Number of Facilities Covenant Was Not Met | credit_facility 1              
MBS Facility                
Debt Instrument [Line Items]                
Line of Credit Facility, Covenant Compliance, Number of Facilities Covenant Was Not Met | credit_facility 1              
v3.4.0.3
Payables and Accrued Liabilities - Schedule of Accounts Payable (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]    
Payables to servicing and subservicing investors $ 447,996 $ 483,535
Loans subject to repurchase from Ginnie Mae 179,881 117,163
Accrued bonus and payroll 68,700 96,381
Payables to GSEs 81,132 87,748
Payable to insurance carriers and insurance cancellation reserves 71,174 69,936
Accrued interest 63,675 61,071
Repurchase reserves 26,015 26,404
Payables to securitization trusts 20,450 24,910
MSR purchases payable including advances 9,702 21,851
Other 170,675 307,388
Total payables and accrued liabilities $ 1,139,400 $ 1,296,387
v3.4.0.3
Securitizations and Financings - Assets and Liabilities of Consolidated VIEs (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets $ 1,740,770 $ 1,852,682
Reverse Secured Borrowings, Assets, Carrying Amount 6,460,756 6,582,555
Liabilities 1,393,372 1,475,189
Reverse Secured Borrowings, Liabilities, Carrying Amount 6,489,265 6,606,448
Residential Mortgage | Restricted Cash    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 107,176 94,361
Reverse Secured Borrowings, Assets, Carrying Amount 24,962 36,089
Residential Mortgage | Reverse mortgage interests, net    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 0 0
Reverse Secured Borrowings, Assets, Carrying Amount 6,435,794 6,546,466
Residential Mortgage | Advances    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 1,461,733 1,580,966
Reverse Secured Borrowings, Assets, Carrying Amount 0 0
Residential Mortgage | Mortgage Loans Held for Investment    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 167,222 172,810
Reverse Secured Borrowings, Assets, Carrying Amount 0 0
Residential Mortgage | Derivative financial instruments    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 0 7
Reverse Secured Borrowings, Assets, Carrying Amount 0 0
Residential Mortgage | Other Assets    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Assets 4,639 4,538
Reverse Secured Borrowings, Assets, Carrying Amount 0 0
Residential Mortgage | Advance Facilities    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 1,329,011 1,408,258
Reverse Secured Borrowings, Liabilities, Carrying Amount 0 0
Residential Mortgage | Payables and Accrued Liabilities    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 2,173 2,116
Reverse Secured Borrowings, Liabilities, Carrying Amount 498 665
Residential Mortgage | Nonrecourse Debt    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 62,188 64,815
Reverse Secured Borrowings, Liabilities, Carrying Amount 0 0
Residential Mortgage | Other Non-Recourse Debt | 2014-1 HECM Securitization    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 0 0
Reverse Secured Borrowings, Liabilities, Carrying Amount 0 226,851
Residential Mortgage | Other Non-Recourse Debt | 2015-1 HECM Securitization    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 0 0
Reverse Secured Borrowings, Liabilities, Carrying Amount 199,309 222,495
Residential Mortgage | Other Non-Recourse Debt | 2015-2 HECM Securitization    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 0 0
Reverse Secured Borrowings, Liabilities, Carrying Amount 183,569 209,030
Residential Mortgage | Other Non-Recourse Debt | 2016-1 HECM Securitization    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 0 0
Reverse Secured Borrowings, Liabilities, Carrying Amount 272,116 0
Residential Mortgage | Participating Mortgages | HMBS Securitized HECM    
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]    
Liabilities 0 0
Reverse Secured Borrowings, Liabilities, Carrying Amount $ 5,833,773 $ 5,947,407
v3.4.0.3
Securitizations and Financings - Securitization Trusts (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Total collateral balances $ 3,020,839   $ 3,113,784
Total certificate balances 2,726,618   2,810,903
Unconsolidated securitization trusts 677,879   $ 727,879
Unconsolidated securitization trusts $ 32,100 $ 57,461  
v3.4.0.3
Securitizations and Financings - Cash Flows from Securitization Trust (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Servicing Fees Received $ 6,009 $ 6,373
Loan Repurchases $ 0 $ 0
v3.4.0.3
Stockholders' Equity - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 15, 2016
Mar. 31, 2016
Feb. 11, 2016
Feb. 09, 2016
Dec. 17, 2015
Common Stock          
Class of Stock [Line Items]          
Amount authorized to be repurchased     $ 100,000,000.0   $ 150,000,000.0
Additional amount authorized to be repurchased       $ 100,000,000.0  
Aggregate amount authorized to be repurchased       $ 250,000,000.0  
Number of shares repurchased (in shares) 7,000 6,026,000      
Purchase price per share (in dollars per share) $ 9.40        
Certain Employees | RSUs          
Class of Stock [Line Items]          
Shares granted (in shares)   1,470,000      
Compensation expense   $ 6,800,000      
Tranche One | Certain Employees | RSUs          
Class of Stock [Line Items]          
Vesting percentage   33.30%      
Tranche Two | Certain Employees | RSUs          
Class of Stock [Line Items]          
Vesting percentage   33.30%      
Tranche Three | Certain Employees | RSUs          
Class of Stock [Line Items]          
Vesting percentage   33.40%      
v3.4.0.3
Income Taxes - Schedule of Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Tax Disclosure [Abstract]    
Income tax benefit $ (82,265) $ (27,525)
Effective tax rate 38.20% 36.60%
v3.4.0.3
Income Taxes - Narrative (Details)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Income Tax Disclosure [Abstract]    
Statutory federal rate percentage 35.00% 35.00%
v3.4.0.3
Fair Value Measurements - Measured on a Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
ASSETS    
Mortgage servicing rights $ 3,088,123 $ 3,358,327
LIABILITIES    
Mortgage servicing rights financing liability - fair value 81,729 68,696
Excess spread financing (at fair value) 1,161,270 1,232,086
Fair Value, Measurements, Recurring    
ASSETS    
Mortgage loans held for sale 1,880,654  
Total assets 5,077,945 4,887,717
LIABILITIES    
Mortgage servicing rights financing liability - fair value 81,729  
Excess spread financing 1,161,270  
Excess spread financing (at fair value) 1,200,000 1,200,000
Total liabilities 1,263,834 1,306,605
Fair Value, Measurements, Recurring | Level 1    
ASSETS    
Mortgage loans held for sale 0 0
Mortgage servicing rights 0 0
Total assets 0 0
LIABILITIES    
Mortgage servicing rights financing liability - fair value 0 0
Excess spread financing 0 0
Excess spread financing (at fair value) 0 0
Total liabilities 0 0
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Lock Commitments    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 1 | Forward Contracts    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 1 | Loan Purchase Commitments    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 1 | Interest Rate Swap    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 1 | Future    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 2    
ASSETS    
Mortgage loans held for sale 1,880,654 1,429,691
Mortgage servicing rights 0 0
Total assets 1,989,822 1,529,390
LIABILITIES    
Mortgage servicing rights financing liability - fair value 0 0
Excess spread financing 0 0
Excess spread financing (at fair value) 0 0
Total liabilities 20,835 5,823
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Lock Commitments    
ASSETS    
Fair Value - Asset 99,462 89,138
LIABILITIES    
Fair Value - Liability 37 5
Fair Value, Measurements, Recurring | Level 2 | Forward Contracts    
ASSETS    
Fair Value - Asset 346 6,123
LIABILITIES    
Fair Value - Liability 19,540 3,746
Fair Value, Measurements, Recurring | Level 2 | Loan Purchase Commitments    
ASSETS    
Fair Value - Asset 8,944 3,872
LIABILITIES    
Fair Value - Liability 233 1,454
Fair Value, Measurements, Recurring | Level 2 | Interest Rate Swap    
ASSETS    
Fair Value - Asset 405 506
LIABILITIES    
Fair Value - Liability 431 542
Fair Value, Measurements, Recurring | Level 2 | Future    
ASSETS    
Fair Value - Asset 11 60
LIABILITIES    
Fair Value - Liability 594 76
Fair Value, Measurements, Recurring | Level 3    
ASSETS    
Mortgage loans held for sale 0 0
Mortgage servicing rights 3,088,123 3,358,327
Total assets 3,088,123 3,358,327
LIABILITIES    
Mortgage servicing rights financing liability - fair value 81,729 68,696
Excess spread financing 1,161,270 1,232,086
Excess spread financing (at fair value) 1,161,270 1,232,086
Total liabilities 1,242,999 1,300,782
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Lock Commitments    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 3 | Forward Contracts    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 3 | Loan Purchase Commitments    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 3 | Interest Rate Swap    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Level 3 | Future    
ASSETS    
Fair Value - Asset 0 0
LIABILITIES    
Fair Value - Liability 0 0
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member]    
ASSETS    
Mortgage loans held for sale   1,429,691
Mortgage servicing rights   3,358,327
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Interest Rate Lock Commitments    
ASSETS    
Fair Value - Asset   89,138
LIABILITIES    
Fair Value - Liability   5
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Forward Contracts    
ASSETS    
Fair Value - Asset   6,123
LIABILITIES    
Fair Value - Liability   3,746
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Loan Purchase Commitments    
ASSETS    
Fair Value - Asset   3,872
LIABILITIES    
Fair Value - Liability   1,454
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Interest Rate Swap    
ASSETS    
Fair Value - Asset   506
LIABILITIES    
Fair Value - Liability   542
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement [Member] | Future    
ASSETS    
Fair Value - Asset   60
LIABILITIES    
Fair Value - Liability   76
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments    
ASSETS    
Fair Value - Asset 99,462 89,138
Derivative financial instruments | Fair Value, Measurements, Recurring | Forward Contracts    
ASSETS    
Fair Value - Asset 346 6,123
Derivative financial instruments | Fair Value, Measurements, Recurring | Loan Purchase Commitments    
ASSETS    
Fair Value - Asset 8,944 3,872
Derivative financial instruments | Fair Value, Measurements, Recurring | Interest Rate Swap    
ASSETS    
Fair Value - Asset 11 506
Derivative financial instruments | Fair Value, Measurements, Recurring | Future    
ASSETS    
Fair Value - Asset 405 60
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Lock Commitments    
LIABILITIES    
Fair Value - Liability 37 5
Derivative Liabilities | Fair Value, Measurements, Recurring | Forward Contracts    
LIABILITIES    
Fair Value - Liability 19,540 3,746
Derivative Liabilities | Fair Value, Measurements, Recurring | Loan Purchase Commitments    
LIABILITIES    
Fair Value - Liability 233 1,454
Derivative Liabilities | Fair Value, Measurements, Recurring | Interest Rate Swap    
LIABILITIES    
Fair Value - Liability 431 542
Derivative Liabilities | Fair Value, Measurements, Recurring | Future    
LIABILITIES    
Fair Value - Liability $ 594 $ 76
v3.4.0.3
Fair Value Measurements - Level 3 Reconciliation (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Excess spread financing      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance $ 1,232,086 $ 1,031,035 $ 1,031,035
Transfers into Level 3 0   0
Transfers out of Level 3 0   0
Total gains or losses included in earnings (23,699)   25,631
Purchases 0   0
Issuances 0   385,637
Sales 0   0
Settlements (47,117)   (210,217)
Dispositions 0   0
Ending balance 1,161,270   1,232,086
Mortgage servicing rights financing      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 68,696 49,430 49,430
Transfers into Level 3 0   0
Transfers out of Level 3 0   0
Total gains or losses included in earnings 13,033   19,266
Purchases 0   0
Issuances 0   0
Sales 0   0
Settlements 0   0
Dispositions 0   0
Ending balance 81,729   68,696
Mortgage servicing rights      
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning balance 3,358,327 2,949,739 2,949,739
Transfers into Level 3 0   0
Transfers out of Level 3 0   0
Total gains or losses included in earnings (292,889)   (496,990)
Purchases of servicing assets 1,643 238,413 729,984
Servicing resulting from transfers of financial assets 39,663 44,232 221,762
Sales 0   0
Settlements 0   0
Dispositions (18,621) $ 0 (46,168)
Ending balance $ 3,088,123   $ 3,358,327
v3.4.0.3
Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Financial assets:    
Restricted cash $ 307,564 $ 332,105
Reverse mortgage interests, net 7,584,086 7,514,323
Total mortgage loans held for investment, net 166,564 173,650
Derivative instruments 109,168 99,699
Financial liabilities:    
Unsecured senior notes 2,025,265 2,025,754
Advance facilities 1,563,750 1,639,690
Warehouse facilities 2,414,495 1,890,320
Mortgage servicing rights financing liability - fair value 81,729 68,696
Derivative financial instruments 20,835 5,823
Other nonrecourse debt 6,545,196 6,666,040
Level 1    
Financial assets:    
Advances, net   0
Level 2    
Financial assets:    
Advances, net   0
Fair Value, Measurements, Recurring    
Financial assets:    
Cash and cash equivalents 460,951  
Restricted cash 307,564  
Advances, net 2,070,599  
Reverse mortgage interests, net 7,584,086  
Mortgage loans held for sale 1,880,654  
Total mortgage loans held for investment, net 166,564  
Derivative instruments 109,168  
Financial liabilities:    
Unsecured senior notes 2,025,265  
Advance facilities 1,563,750  
Warehouse facilities 2,414,495  
Mortgage servicing rights financing liability - fair value 81,729  
Derivative financial instruments 20,835  
Excess spread financing 1,161,270  
Fair Value, Measurements, Recurring | Level 1    
Financial assets:    
Cash and cash equivalents 460,951 613,241
Restricted cash 307,564 332,105
Advances, net 0  
Reverse mortgage interests, net 0 0
Mortgage loans held for sale 0 0
Total mortgage loans held for investment, net 0 0
Derivative instruments 0 0
Financial liabilities:    
Unsecured senior notes 1,918,283 1,911,777
Advance facilities 0 0
Warehouse facilities 0 0
Mortgage servicing rights financing liability - fair value 0 0
Derivative financial instruments 0 0
Excess spread financing 0 0
Fair Value, Measurements, Recurring | Level 2    
Financial assets:    
Cash and cash equivalents 0 0
Restricted cash 0 0
Advances, net 0  
Reverse mortgage interests, net 0 0
Mortgage loans held for sale 1,880,654 1,429,691
Total mortgage loans held for investment, net 0 0
Derivative instruments 109,168 99,699
Financial liabilities:    
Unsecured senior notes 0 0
Advance facilities 1,563,750 1,646,123
Warehouse facilities 2,414,495 1,893,526
Mortgage servicing rights financing liability - fair value 0 0
Derivative financial instruments 20,835 5,823
Excess spread financing 0 0
Fair Value, Measurements, Recurring | Level 3    
Financial assets:    
Cash and cash equivalents 0 0
Restricted cash 0 0
Advances, net 2,070,599 2,223,083
Reverse mortgage interests, net 7,624,696 7,705,475
Mortgage loans held for sale 0 0
Total mortgage loans held for investment, net 170,584 174,147
Derivative instruments 0 0
Financial liabilities:    
Unsecured senior notes 0 0
Advance facilities 0 0
Warehouse facilities 0 0
Mortgage servicing rights financing liability - fair value 81,729 68,696
Derivative financial instruments 0 0
Excess spread financing 1,161,270 1,232,086
Legacy Asset | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt 0 0
Legacy Asset | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt 0 0
Legacy Asset | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt 61,466 74,264
Participating Interest Financing | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 5,833,773  
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt 0 0
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt 5,809,749 6,091,285
Participating Interest Financing | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt 0 0
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt   0
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt   0
2014-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt   298,048
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt 0 0
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt 0 0
2015-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt 208,201 275,223
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt 0 0
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt 0 0
2015-2 HECM Securitization | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt 208,619 249,507
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 1    
Financial liabilities:    
Other nonrecourse debt 0  
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 2    
Financial liabilities:    
Other nonrecourse debt 0  
2016-1 HECM Securitization | Fair Value, Measurements, Recurring | Level 3    
Financial liabilities:    
Other nonrecourse debt 290,125  
Reported Value Measurement | Fair Value, Measurements, Recurring    
Financial assets:    
Cash and cash equivalents   613,241
Restricted cash   332,105
Advances, net   2,223,083
Reverse mortgage interests, net   7,514,323
Mortgage loans held for sale   1,429,691
Total mortgage loans held for investment, net   173,650
Derivative instruments   99,699
Financial liabilities:    
Unsecured senior notes   2,048,694
Advance facilities   1,646,123
Warehouse facilities   1,893,526
Mortgage servicing rights financing liability - fair value   68,696
Derivative financial instruments   5,823
Excess spread financing   1,232,086
Reported Value Measurement | Legacy Asset | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 62,188 64,815
Reported Value Measurement | Participating Interest Financing | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 5,833,773 5,947,407
Reported Value Measurement | 2014-1 HECM Securitization | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 0 226,851
Reported Value Measurement | 2015-1 HECM Securitization | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 199,309 222,495
Reported Value Measurement | 2015-2 HECM Securitization | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt 183,569 209,030
Reported Value Measurement | 2016-1 HECM Securitization | Fair Value, Measurements, Recurring    
Financial liabilities:    
Other nonrecourse debt $ 272,115 $ 0
v3.4.0.3
Capital Requirements - Narrative (Details)
$ in Billions
Mar. 31, 2016
USD ($)
Mortgage Banking [Abstract]  
Minimum Net Worth Required for Compliance $ 1.2
v3.4.0.3
Commitments and Contingencies - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Feb. 28, 2013
Loss Contingencies [Line Items]        
Legal Fees $ 13,100,000 $ 7,300,000    
Principal amount outstanding on mortgage servicing rights 1,900,000,000      
Regulatory settlement        
Loss Contingencies [Line Items]        
Settlement amount     $ 16,200,000  
Reverse mortgage interests, net        
Loss Contingencies [Line Items]        
Principal amount outstanding on mortgage servicing rights 29,000,000,000   $ 29,900,000,000 $ 83,100,000
Unfunded advance obligations 3,000,000,000      
Minimum        
Loss Contingencies [Line Items]        
Estimate of possible loss 17,000,000      
Maximum        
Loss Contingencies [Line Items]        
Estimate of possible loss $ 50,000,000      
v3.4.0.3
Business Segment Reporting - Financial Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Revenues:      
Service related $ 92,653 $ 215,123  
Net gain on mortgage loans held for sale 171,116 166,994  
Total revenues 263,769 382,117  
Total expenses 421,477 383,843  
Other income (expense):      
Interest income 102,843 43,774  
Interest expense (160,776) (115,648)  
Gain on repurchase of unsecured senior notes 77 0  
Gain (loss) on interest rate swaps and caps 8 (767)  
Total other income (expense) (57,848) (72,641)  
Income (loss) before taxes (215,556) (74,367)  
Depreciation and amortization 23,144 18,119  
Total assets 16,551,524 12,642,368 $ 16,617,433
Eliminations      
Revenues:      
Service related 0 (222)  
Net gain on mortgage loans held for sale 0 0  
Total revenues 0 (222)  
Total expenses 0 0  
Other income (expense):      
Interest income 0 222  
Interest expense 0 0  
Gain on repurchase of unsecured senior notes 0    
Gain (loss) on interest rate swaps and caps 0 0  
Total other income (expense) 0 222  
Income (loss) before taxes 0 0  
Depreciation and amortization 0 0  
Total assets 0 0  
Operating Segments      
Revenues:      
Service related 92,349 214,848  
Net gain on mortgage loans held for sale 171,104 165,294  
Total revenues 263,453 380,142  
Total expenses 399,188 362,034  
Other income (expense):      
Interest income 99,197 39,906  
Interest expense (120,008) (72,395)  
Gain on repurchase of unsecured senior notes 0    
Gain (loss) on interest rate swaps and caps (7) (801)  
Total other income (expense) (20,818) (33,290)  
Income (loss) before taxes (156,553) (15,182)  
Depreciation and amortization 14,755 12,934  
Total assets 17,370,542 11,621,988  
Servicing Segment      
Revenues:      
Service related (24,351) 99,997  
Net gain on mortgage loans held for sale 23,161 14,013  
Total revenues (1,190) 114,010  
Total expenses 184,356 182,397  
Other income (expense):      
Interest income 84,633 24,639  
Interest expense (106,841) (57,974)  
Gain on repurchase of unsecured senior notes 0    
Gain (loss) on interest rate swaps and caps (7) (801)  
Total other income (expense) (22,215) (34,136)  
Income (loss) before taxes (207,761) (102,523)  
Depreciation and amortization 6,189 5,870  
Total assets 12,760,129 9,420,014  
Originations Segment      
Revenues:      
Service related 15,267 7,065  
Net gain on mortgage loans held for sale 147,943 151,281  
Total revenues 163,210 158,346  
Total expenses 124,838 100,249  
Other income (expense):      
Interest income 14,561 15,267  
Interest expense (13,142) (14,386)  
Gain on repurchase of unsecured senior notes 0    
Gain (loss) on interest rate swaps and caps 0 0  
Total other income (expense) 1,419 881  
Income (loss) before taxes 39,791 58,978  
Depreciation and amortization 2,632 3,700  
Total assets 4,303,766 1,965,961  
Xome      
Revenues:      
Service related 101,433 107,786  
Net gain on mortgage loans held for sale 0 0  
Total revenues 101,433 107,786  
Total expenses 89,994 79,388  
Other income (expense):      
Interest income 3 0  
Interest expense (25) (35)  
Gain on repurchase of unsecured senior notes 0    
Gain (loss) on interest rate swaps and caps 0 0  
Total other income (expense) (22) (35)  
Income (loss) before taxes 11,417 28,363  
Depreciation and amortization 5,934 3,364  
Total assets 306,647 236,013  
Corporate and Other      
Revenues:      
Service related 304 497  
Net gain on mortgage loans held for sale 12 1,700  
Total revenues 316 2,197  
Total expenses 22,289 21,809  
Other income (expense):      
Interest income 3,646 3,646  
Interest expense (40,768) (43,253)  
Gain on repurchase of unsecured senior notes 77    
Gain (loss) on interest rate swaps and caps 15 34  
Total other income (expense) (37,030) (39,573)  
Income (loss) before taxes (59,003) (59,185)  
Depreciation and amortization 8,389 5,185  
Total assets $ (819,018) $ 1,020,380  
v3.4.0.3
Guarantor Financial Statement Information - Narrative (Details)
$ in Thousands
Mar. 31, 2016
USD ($)
subsidiary
Dec. 31, 2015
USD ($)
Condensed Financial Information of Parent Company Only Disclosure [Abstract]    
Unsecured senior notes | $ $ 2,025,265 $ 2,025,754
Guarantor Subsidiary, Ownership Percentage 100.00%  
Number of Subsidiaries as Guarantors of Unsecured Debt | subsidiary 2  
v3.4.0.3
Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Assets          
Cash and cash equivalents $ 460,951 $ 613,241 $ 815,776 $ 299,002 $ 815,776
Restricted cash 307,564 332,105      
Mortgage servicing rights 3,096,084 3,366,973      
Advances, net 2,070,599 2,223,083      
Reverse mortgage interests 7,584,086 7,514,323      
Mortgage loans held for sale 1,880,654 1,429,691 1,995,998 1,277,931  
Total mortgage loans held for investment, net 166,564 173,650      
Property and equipment, net 142,155 142,836      
Derivative financial instruments 109,168 99,699      
Other assets 733,699 721,832      
Investment in subsidiaries 0 0      
Total assets 16,551,524 16,617,433 12,642,368    
Liabilities and shareholders' equity          
Unsecured senior notes 2,025,265 2,025,754      
Advance facilities 1,563,750 1,639,690      
Warehouse facilities 2,414,495 1,890,320      
Payables and accrued liabilities 1,139,400 1,296,387      
MSR related liabilities - nonrecourse 1,242,999 1,300,782      
Mortgage servicing liabilities 18,065 25,260      
Derivative financial instruments 20,835 5,823      
Other nonrecourse debt 6,545,196 6,666,040      
Payables to affiliates 0 0      
Total liabilities 14,970,005 14,850,056      
Total equity 1,581,519 1,767,377 1,675,611 1,224,278  
Total liabilities and equity 16,551,524 16,617,433      
Eliminations          
Assets          
Cash and cash equivalents 0 0 0 0  
Restricted cash 0 0      
Mortgage servicing rights 0 0      
Advances, net 0 0      
Reverse mortgage interests 0 0      
Mortgage loans held for sale 0 0      
Total mortgage loans held for investment, net 0 0      
Property and equipment, net 0 0      
Derivative financial instruments 0 0      
Other assets (1,554,602) (1,881,271)      
Investment in subsidiaries (2,211,331) (2,277,794)      
Total assets (3,765,933) (4,159,065)      
Liabilities and shareholders' equity          
Unsecured senior notes 0 0      
Advance facilities 0 0      
Warehouse facilities 0 0      
Payables and accrued liabilities 0 0      
MSR related liabilities - nonrecourse 0 0      
Mortgage servicing liabilities 0 0      
Derivative financial instruments 0 0      
Other nonrecourse debt 0 0      
Payables to affiliates (1,554,602) (1,881,271)      
Total liabilities (1,554,602) (1,881,271)      
Total equity (2,211,331) (2,277,794)      
Total liabilities and equity (3,765,933) (4,159,065)      
Nationstar          
Assets          
Cash and cash equivalents 0 0 0 0  
Restricted cash 0 0      
Mortgage servicing rights 0 0      
Advances, net 0 0      
Reverse mortgage interests 0 0      
Mortgage loans held for sale 0 0      
Total mortgage loans held for investment, net 0 0      
Property and equipment, net 0 0      
Derivative financial instruments 0 0      
Other assets (57,595) 3,444      
Investment in subsidiaries 1,639,114 1,768,319      
Total assets 1,581,519 1,771,763      
Liabilities and shareholders' equity          
Unsecured senior notes 0 0      
Advance facilities 0 0      
Warehouse facilities 0 0      
Payables and accrued liabilities 0 4,386      
MSR related liabilities - nonrecourse 0 0      
Mortgage servicing liabilities 0 0      
Derivative financial instruments 0 0      
Other nonrecourse debt 0 0      
Payables to affiliates 0 0      
Total liabilities 0 4,386      
Total equity 1,581,519 1,767,377      
Total liabilities and equity 1,581,519 1,771,763      
Issuer (Parent)          
Assets          
Cash and cash equivalents 426,150 597,303 786,154 279,770  
Restricted cash 172,453 198,726      
Mortgage servicing rights 3,096,084 3,366,973      
Advances, net 2,070,537 2,223,039      
Reverse mortgage interests 6,901,208 6,832,186      
Mortgage loans held for sale 1,816,028 1,304,219      
Total mortgage loans held for investment, net (658) 840      
Property and equipment, net 113,745 113,228      
Derivative financial instruments 105,527 96,181      
Other assets 603,109 799,567      
Investment in subsidiaries 572,217 509,475      
Total assets 15,876,400 16,041,737      
Liabilities and shareholders' equity          
Unsecured senior notes 2,025,265 2,025,754      
Advance facilities 234,739 231,432      
Warehouse facilities 2,361,190 1,782,060      
Payables and accrued liabilities 1,077,109 1,222,268      
MSR related liabilities - nonrecourse 1,242,999 1,300,782      
Mortgage servicing liabilities 18,065 25,260      
Derivative financial instruments 20,835 5,823      
Other nonrecourse debt 5,828,015 5,942,849      
Payables to affiliates 1,429,069 1,737,190      
Total liabilities 14,237,286 14,273,418      
Total equity 1,639,114 1,768,319      
Total liabilities and equity 15,876,400 16,041,737      
Guarantor (Subsidiaries)          
Assets          
Cash and cash equivalents 758 558 752 288  
Restricted cash 3 3      
Mortgage servicing rights 0 0      
Advances, net 0 0      
Reverse mortgage interests 0 0      
Mortgage loans held for sale 0 0      
Total mortgage loans held for investment, net 0 0      
Property and equipment, net 865 868      
Derivative financial instruments 0 0      
Other assets 311,701 303,452      
Investment in subsidiaries 0 0      
Total assets 313,327 304,881      
Liabilities and shareholders' equity          
Unsecured senior notes 0 0      
Advance facilities 0 0      
Warehouse facilities 0 0      
Payables and accrued liabilities 2,878 927      
MSR related liabilities - nonrecourse 0 0      
Mortgage servicing liabilities 0 0      
Derivative financial instruments 0 0      
Other nonrecourse debt 0 0      
Payables to affiliates 4,731 1,031      
Total liabilities 7,609 1,958      
Total equity 305,718 302,923      
Total liabilities and equity 313,327 304,881      
Non-Guarantor (Subsidiaries)          
Assets          
Cash and cash equivalents 34,043 15,380 $ 28,870 $ 18,944  
Restricted cash 135,108 133,376      
Mortgage servicing rights 0 0      
Advances, net 62 44      
Reverse mortgage interests 682,878 682,137      
Mortgage loans held for sale 64,626 125,472      
Total mortgage loans held for investment, net 167,222 172,810      
Property and equipment, net 27,545 28,740      
Derivative financial instruments 3,641 3,518      
Other assets 1,431,086 1,496,640      
Investment in subsidiaries 0 0      
Total assets 2,546,211 2,658,117      
Liabilities and shareholders' equity          
Unsecured senior notes 0 0      
Advance facilities 1,329,011 1,408,258      
Warehouse facilities 53,305 108,260      
Payables and accrued liabilities 59,413 68,806      
MSR related liabilities - nonrecourse 0 0      
Mortgage servicing liabilities 0 0      
Derivative financial instruments 0 0      
Other nonrecourse debt 717,181 723,191      
Payables to affiliates 120,802 143,050      
Total liabilities 2,279,712 2,451,565      
Total equity 266,499 206,552      
Total liabilities and equity $ 2,546,211 $ 2,658,117      
v3.4.0.3
Guarantor Financial Statement Information - Consolidating Statements of Operations (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Revenues:    
Service related $ 92,653 $ 215,123
Net gain on mortgage loans held for sale 171,116 166,994
Total revenues 263,769 382,117
Expenses:    
Salaries, wages and benefits 197,362 178,755
General and administrative 224,115 205,088
Total expenses 421,477 383,843
Other income (expenses):    
Interest income 102,843 43,774
Interest expense (160,776) (115,648)
Gain on repurchase of unsecured senior notes 77  
Gain/(Loss) on interest rate swaps and caps 8 (767)
Gain (loss) from subsidiaries 0 0
Total other expenses, net (57,848) (72,641)
Income (loss) before taxes (215,556) (74,367)
Income tax (benefit) expense (82,265) (27,525)
Net income (loss) (133,291) (46,842)
Less: Net gain (loss) attributable to noncontrolling interests (902) 1,473
Net income (loss) excluding noncontrolling interests (132,389) (48,315)
Eliminations    
Revenues:    
Service related 0 (222)
Net gain on mortgage loans held for sale 0 0
Total revenues 0 (222)
Expenses:    
Salaries, wages and benefits 0 0
General and administrative 0 0
Total expenses 0 0
Other income (expenses):    
Interest income 0 222
Interest expense 0 0
Gain on repurchase of unsecured senior notes 0  
Gain/(Loss) on interest rate swaps and caps 0 0
Gain (loss) from subsidiaries 129,433 25,106
Total other expenses, net 129,433 25,328
Income (loss) before taxes 129,433 25,106
Income tax (benefit) expense 0 0
Net income (loss) 129,433 25,106
Less: Net gain (loss) attributable to noncontrolling interests 0 0
Net income (loss) excluding noncontrolling interests 129,433 25,106
Nationstar    
Revenues:    
Service related 0 0
Net gain on mortgage loans held for sale 0 0
Total revenues 0 0
Expenses:    
Salaries, wages and benefits 0 0
General and administrative 0 0
Total expenses 0 0
Other income (expenses):    
Interest income 0 0
Interest expense 0 0
Gain on repurchase of unsecured senior notes 0  
Gain/(Loss) on interest rate swaps and caps 0 0
Gain (loss) from subsidiaries (132,389) (48,315)
Total other expenses, net (132,389) (48,315)
Income (loss) before taxes (132,389) (48,315)
Income tax (benefit) expense 0 0
Net income (loss) (132,389) (48,315)
Less: Net gain (loss) attributable to noncontrolling interests 0 0
Net income (loss) excluding noncontrolling interests (132,389) (48,315)
Issuer (Parent)    
Revenues:    
Service related (16,999) 102,179
Net gain on mortgage loans held for sale 162,566 156,847
Total revenues 145,567 259,026
Expenses:    
Salaries, wages and benefits 144,238 128,433
General and administrative 169,535 164,532
Total expenses 313,773 292,965
Other income (expenses):    
Interest income 91,080 36,120
Interest expense (141,576) (99,867)
Gain on repurchase of unsecured senior notes 77  
Gain/(Loss) on interest rate swaps and caps 15 34
Gain (loss) from subsidiaries 2,956 23,209
Total other expenses, net (47,448) (40,504)
Income (loss) before taxes (215,654) (74,443)
Income tax (benefit) expense (82,265) (27,525)
Net income (loss) (133,389) (46,918)
Less: Net gain (loss) attributable to noncontrolling interests (1,000) 1,397
Net income (loss) excluding noncontrolling interests (132,389) (48,315)
Guarantor (Subsidiaries)    
Revenues:    
Service related 7,072 (345)
Net gain on mortgage loans held for sale 0 0
Total revenues 7,072 (345)
Expenses:    
Salaries, wages and benefits 1,162 354
General and administrative 3,115 50
Total expenses 4,277 404
Other income (expenses):    
Interest income 0 0
Interest expense 0 0
Gain on repurchase of unsecured senior notes 0  
Gain/(Loss) on interest rate swaps and caps 0 0
Gain (loss) from subsidiaries 0 0
Total other expenses, net 0 0
Income (loss) before taxes 2,795 (749)
Income tax (benefit) expense 0 0
Net income (loss) 2,795 (749)
Less: Net gain (loss) attributable to noncontrolling interests 0 0
Net income (loss) excluding noncontrolling interests 2,795 (749)
Non-Guarantor (Subsidiaries)    
Revenues:    
Service related 102,580 113,511
Net gain on mortgage loans held for sale 8,550 10,147
Total revenues 111,130 123,658
Expenses:    
Salaries, wages and benefits 51,962 49,968
General and administrative 51,465 40,506
Total expenses 103,427 90,474
Other income (expenses):    
Interest income 11,763 7,432
Interest expense (19,200) (15,781)
Gain on repurchase of unsecured senior notes 0  
Gain/(Loss) on interest rate swaps and caps (7) (801)
Gain (loss) from subsidiaries 0 0
Total other expenses, net (7,444) (9,150)
Income (loss) before taxes 259 24,034
Income tax (benefit) expense 0 0
Net income (loss) 259 24,034
Less: Net gain (loss) attributable to noncontrolling interests 98 76
Net income (loss) excluding noncontrolling interests $ 161 $ 23,958
v3.4.0.3
Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) - USD ($)
 3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Operating activities    
Net income (loss) $ (132,389,000) $ (48,315,000)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest (902,000) 1,473,000
(Gain) loss from subsidiaries 0 0
Share-based compensation 6,843,000 5,524,000
Gain on repurchase of unsecured senior notes (77,000)  
Excess tax deficiency (benefit) from share-based compensation 2,795,000 (1,095,000)
Net (gain) loss on mortgage loans held for sale (171,116,000) (166,994,000)
Mortgage loans originated and purchased, net of fees (4,240,116,000) (4,209,078,000)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations (486,124,000) (405,893,000)
Proceeds on sale of and payments of mortgage loans held for sale 4,377,242,000 4,003,126,000
(Gain) loss on derivatives including ineffectiveness (8,000) 767,000
Depreciation and amortization 23,144,000 18,119,000
Amortization (accretion) of premiums (discounts) 9,878,000 (7,062,000)
Fair value changes in excess spread financing (23,699,000) 13,114,000
Fair value changes and amortization/accretion of mortgage servicing rights 286,378,000 204,200,000
Fair value change in mortgage servicing rights financing liability 13,033,000 (4,386,000)
Changes in assets and liabilities:    
Advances 152,484,000 95,436,000
Reverse mortgage interests (14,998,000) (180,793,000)
Other assets 26,111,000 18,677,000
Payables and accrued liabilities (159,895,000) 2,873,000
Net cash attributable to operating activities (331,416,000) (660,307,000)
Investing Activities    
Property and equipment additions, net of disposals (13,104,000) (11,993,000)
Purchase of forward mortgage servicing rights, net of liabilities incurred (1,530,000) (196,081,000)
Purchase of reverse mortgage interests (55,215,000) 0
Proceeds from sale of forward mortgage servicing rights 18,361,000 0
Proceeds on sale of reverse mortgage interest 450,000 0
Acquisitions, net 0 (31,276,000)
Net cash attributable to investing activities (51,038,000) (239,350,000)
Financing Activities    
Transfers (to) from restricted cash, net 24,541,000 (73,012,000)
Issuance of common stock, net of issuance costs 0 497,758,000
Debt financing costs (2,497,000) (1,549,000)
Increase/(decrease) in advance facilities (79,048,000) (18,471,000)
Increase/(decrease) in warehouse facilities 522,893,000 904,850,000
Proceeds from HECM securitizations 281,680,000 73,082,000
Repayment of HECM securitizations (285,985,000) (26,829,000)
Issuance of excess spread financing 0 52,957,000
Repayment of excess spread financing (47,117,000) (49,516,000)
Increase (decrease) in participating interest financing in reverse mortgage interests (120,362,000) 64,781,000
Repayment of nonrecourse debt–legacy assets (3,056,000) (3,273,000)
Repurchase of unsecured senior notes (1,475,000) 0
Excess tax (deficiency) benefit from share-based compensation (2,795,000) 1,095,000
Redemption of shares relating to stock vesting (1,564,000) (5,442,000)
Repurchase of treasury shares (55,051,000) 0
Net cash attributable to financing activities 230,164,000 1,416,431,000
Net increase (decrease) in cash and cash equivalents (152,290,000) 516,774,000
Cash and cash equivalents at beginning of period 613,241,000 299,002,000
Cash and cash equivalents at end of period 460,951,000 815,776,000
Eliminations    
Operating activities    
Net income (loss) 129,433,000 25,106,000
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest 0 0
(Gain) loss from subsidiaries (129,433,000) (25,106,000)
Share-based compensation 0 0
Gain on repurchase of unsecured senior notes 0  
Excess tax deficiency (benefit) from share-based compensation 0 0
Net (gain) loss on mortgage loans held for sale 0 0
Mortgage loans originated and purchased, net of fees 0 0
Repurchases of loans and foreclosures out of Ginnie Mae securitizations 0 0
Proceeds on sale of and payments of mortgage loans held for sale 0 0
(Gain) loss on derivatives including ineffectiveness 0 0
Depreciation and amortization 0 0
Amortization (accretion) of premiums (discounts) 0 0
Fair value changes in excess spread financing 0 0
Fair value changes and amortization/accretion of mortgage servicing rights 0 0
Fair value change in mortgage servicing rights financing liability 0 0
Changes in assets and liabilities:    
Advances 0 0
Reverse mortgage interests 0 0
Other assets 0 0
Payables and accrued liabilities 0 0
Net cash attributable to operating activities 0 0
Investing Activities    
Property and equipment additions, net of disposals 0 0
Purchase of forward mortgage servicing rights, net of liabilities incurred 0 0
Purchase of reverse mortgage interests 0  
Proceeds from sale of forward mortgage servicing rights 0  
Proceeds on sale of reverse mortgage interest 0  
Acquisitions, net   0
Net cash attributable to investing activities 0 0
Financing Activities    
Transfers (to) from restricted cash, net 0 0
Issuance of common stock, net of issuance costs   0
Debt financing costs 0 0
Increase/(decrease) in advance facilities 0 0
Increase/(decrease) in warehouse facilities 0 0
Proceeds from HECM securitizations 0 0
Repayment of HECM securitizations 0 0
Issuance of excess spread financing   0
Repayment of excess spread financing 0 0
Increase (decrease) in participating interest financing in reverse mortgage interests 0 0
Repayment of nonrecourse debt–legacy assets 0 0
Repurchase of unsecured senior notes 0  
Excess tax (deficiency) benefit from share-based compensation 0 0
Redemption of shares relating to stock vesting 0 0
Repurchase of treasury shares 0  
Net cash attributable to financing activities 0 0
Net increase (decrease) in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Nationstar    
Operating activities    
Net income (loss) (132,389,000) (48,315,000)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest 0 0
(Gain) loss from subsidiaries 132,389,000 48,315,000
Share-based compensation 0 0
Gain on repurchase of unsecured senior notes 0  
Excess tax deficiency (benefit) from share-based compensation 0 0
Net (gain) loss on mortgage loans held for sale 0 0
Mortgage loans originated and purchased, net of fees 0 0
Repurchases of loans and foreclosures out of Ginnie Mae securitizations 0 0
Proceeds on sale of and payments of mortgage loans held for sale 0 0
(Gain) loss on derivatives including ineffectiveness 0 0
Depreciation and amortization 0 0
Amortization (accretion) of premiums (discounts) 0 0
Fair value changes in excess spread financing 0 0
Fair value changes and amortization/accretion of mortgage servicing rights 0 0
Fair value change in mortgage servicing rights financing liability 0 0
Changes in assets and liabilities:    
Advances 0 0
Reverse mortgage interests 0 0
Other assets 56,615,000 5,442,000
Payables and accrued liabilities 0 0
Net cash attributable to operating activities 56,615,000 5,442,000
Investing Activities    
Property and equipment additions, net of disposals 0 0
Purchase of forward mortgage servicing rights, net of liabilities incurred 0 0
Purchase of reverse mortgage interests 0  
Proceeds from sale of forward mortgage servicing rights 0  
Proceeds on sale of reverse mortgage interest 0  
Acquisitions, net   0
Net cash attributable to investing activities 0 0
Financing Activities    
Transfers (to) from restricted cash, net 0 0
Issuance of common stock, net of issuance costs   0
Debt financing costs 0 0
Increase/(decrease) in advance facilities 0 0
Increase/(decrease) in warehouse facilities 0 0
Proceeds from HECM securitizations 0 0
Repayment of HECM securitizations 0 0
Issuance of excess spread financing   0
Repayment of excess spread financing 0 0
Increase (decrease) in participating interest financing in reverse mortgage interests 0 0
Repayment of nonrecourse debt–legacy assets 0 0
Repurchase of unsecured senior notes 0  
Excess tax (deficiency) benefit from share-based compensation 0 0
Redemption of shares relating to stock vesting (1,564,000) (5,442,000)
Repurchase of treasury shares (55,051,000)  
Net cash attributable to financing activities (56,615,000) (5,442,000)
Net increase (decrease) in cash and cash equivalents 0 0
Cash and cash equivalents at beginning of period 0 0
Cash and cash equivalents at end of period 0 0
Issuer (Parent)    
Operating activities    
Net income (loss) (132,389,000) (48,315,000)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest (1,000,000) 1,473,000
(Gain) loss from subsidiaries (2,956,000) (23,209,000)
Share-based compensation 4,857,000 5,524,000
Gain on repurchase of unsecured senior notes (77,000)  
Excess tax deficiency (benefit) from share-based compensation 2,795,000 (1,095,000)
Net (gain) loss on mortgage loans held for sale (162,566,000) (156,847,000)
Mortgage loans originated and purchased, net of fees (4,006,685,000) (4,209,078,000)
Repurchases of loans and foreclosures out of Ginnie Mae securitizations (486,124,000) (405,893,000)
Proceeds on sale of and payments of mortgage loans held for sale 4,071,502,000 3,998,101,000
(Gain) loss on derivatives including ineffectiveness (15,000) (34,000)
Depreciation and amortization 17,210,000 14,758,000
Amortization (accretion) of premiums (discounts) 5,982,000 (6,759,000)
Fair value changes in excess spread financing (23,699,000) 13,114,000
Fair value changes and amortization/accretion of mortgage servicing rights 286,378,000 204,200,000
Fair value change in mortgage servicing rights financing liability 13,033,000 (4,386,000)
Changes in assets and liabilities:    
Advances 152,502,000 93,149,000
Reverse mortgage interests (14,257,000) (258,916,000)
Other assets (125,563,000) 379,162,000
Payables and accrued liabilities (152,453,000) 7,233,000
Net cash attributable to operating activities (553,525,000) (397,818,000)
Investing Activities    
Property and equipment additions, net of disposals (9,768,000) (7,243,000)
Purchase of forward mortgage servicing rights, net of liabilities incurred (1,530,000) (196,081,000)
Purchase of reverse mortgage interests (55,215,000)  
Proceeds from sale of forward mortgage servicing rights 18,361,000  
Proceeds on sale of reverse mortgage interest 450,000  
Acquisitions, net   0
Net cash attributable to investing activities (47,702,000) (203,324,000)
Financing Activities    
Transfers (to) from restricted cash, net 26,273,000 (24,925,000)
Issuance of common stock, net of issuance costs   497,758,000
Debt financing costs (2,497,000) (1,549,000)
Increase/(decrease) in advance facilities 199,000 (332,696,000)
Increase/(decrease) in warehouse facilities 577,848,000 899,756,000
Proceeds from HECM securitizations 0 0
Repayment of HECM securitizations 0 0
Issuance of excess spread financing   52,957,000
Repayment of excess spread financing (47,117,000) (49,516,000)
Increase (decrease) in participating interest financing in reverse mortgage interests (120,362,000) 64,781,000
Repayment of nonrecourse debt–legacy assets 0 (135,000)
Repurchase of unsecured senior notes (1,475,000)  
Excess tax (deficiency) benefit from share-based compensation (2,795,000) 1,095,000
Redemption of shares relating to stock vesting 0 0
Repurchase of treasury shares 0  
Net cash attributable to financing activities 430,074,000 1,107,526,000
Net increase (decrease) in cash and cash equivalents (171,153,000) 506,384,000
Cash and cash equivalents at beginning of period 597,303,000 279,770,000
Cash and cash equivalents at end of period 426,150,000 786,154,000
Guarantor (Subsidiaries)    
Operating activities    
Net income (loss) 2,795,000 (749,000)
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest 0 0
(Gain) loss from subsidiaries 0 0
Share-based compensation 20,000 0
Gain on repurchase of unsecured senior notes 0  
Excess tax deficiency (benefit) from share-based compensation 0 0
Net (gain) loss on mortgage loans held for sale 0 0
Mortgage loans originated and purchased, net of fees 0 0
Repurchases of loans and foreclosures out of Ginnie Mae securitizations 0 0
Proceeds on sale of and payments of mortgage loans held for sale 0 0
(Gain) loss on derivatives including ineffectiveness 0 0
Depreciation and amortization 0 0
Amortization (accretion) of premiums (discounts) 0 0
Fair value changes in excess spread financing 0 0
Fair value changes and amortization/accretion of mortgage servicing rights 0 0
Fair value change in mortgage servicing rights financing liability 0 0
Changes in assets and liabilities:    
Advances 0 0
Reverse mortgage interests 0 0
Other assets (4,569,000) 1,199,000
Payables and accrued liabilities 1,951,000 14,000
Net cash attributable to operating activities 197,000 464,000
Investing Activities    
Property and equipment additions, net of disposals 3,000 0
Purchase of forward mortgage servicing rights, net of liabilities incurred 0 0
Purchase of reverse mortgage interests 0  
Proceeds from sale of forward mortgage servicing rights 0  
Proceeds on sale of reverse mortgage interest 0  
Acquisitions, net   0
Net cash attributable to investing activities 3,000 0
Financing Activities    
Transfers (to) from restricted cash, net 0 0
Issuance of common stock, net of issuance costs   0
Debt financing costs 0 0
Increase/(decrease) in advance facilities 0 0
Increase/(decrease) in warehouse facilities 0 0
Proceeds from HECM securitizations 0 0
Repayment of HECM securitizations 0 0
Issuance of excess spread financing   0
Repayment of excess spread financing 0 0
Increase (decrease) in participating interest financing in reverse mortgage interests 0 0
Repayment of nonrecourse debt–legacy assets 0 0
Repurchase of unsecured senior notes 0  
Excess tax (deficiency) benefit from share-based compensation 0 0
Redemption of shares relating to stock vesting 0 0
Repurchase of treasury shares 0  
Net cash attributable to financing activities 0 0
Net increase (decrease) in cash and cash equivalents 200,000 464,000
Cash and cash equivalents at beginning of period 558,000 288,000
Cash and cash equivalents at end of period 758,000 752,000
Non-Guarantor (Subsidiaries)    
Operating activities    
Net income (loss) 161,000 23,958,000
Reconciliation of net income to net cash attributable to operating activities, net of effect of acquisitions:    
Noncontrolling interest 98,000 0
(Gain) loss from subsidiaries 0 0
Share-based compensation 1,966,000 0
Gain on repurchase of unsecured senior notes 0  
Excess tax deficiency (benefit) from share-based compensation 0 0
Net (gain) loss on mortgage loans held for sale (8,550,000) (10,147,000)
Mortgage loans originated and purchased, net of fees (233,431,000) 0
Repurchases of loans and foreclosures out of Ginnie Mae securitizations 0 0
Proceeds on sale of and payments of mortgage loans held for sale 305,740,000 5,025,000
(Gain) loss on derivatives including ineffectiveness 7,000 801,000
Depreciation and amortization 5,934,000 3,361,000
Amortization (accretion) of premiums (discounts) 3,896,000 (303,000)
Fair value changes in excess spread financing 0 0
Fair value changes and amortization/accretion of mortgage servicing rights 0 0
Fair value change in mortgage servicing rights financing liability 0 0
Changes in assets and liabilities:    
Advances (18,000) 2,287,000
Reverse mortgage interests (741,000) 78,123,000
Other assets 99,628,000 (367,126,000)
Payables and accrued liabilities (9,393,000) (4,374,000)
Net cash attributable to operating activities 165,297,000 (268,395,000)
Investing Activities    
Property and equipment additions, net of disposals (3,339,000) (4,750,000)
Purchase of forward mortgage servicing rights, net of liabilities incurred 0 0
Purchase of reverse mortgage interests 0  
Proceeds from sale of forward mortgage servicing rights 0  
Proceeds on sale of reverse mortgage interest 0  
Acquisitions, net   (31,276,000)
Net cash attributable to investing activities (3,339,000) (36,026,000)
Financing Activities    
Transfers (to) from restricted cash, net (1,732,000) (48,087,000)
Issuance of common stock, net of issuance costs   0
Debt financing costs 0 0
Increase/(decrease) in advance facilities (79,247,000) 314,225,000
Increase/(decrease) in warehouse facilities (54,955,000) 5,094,000
Proceeds from HECM securitizations 281,680,000 73,082,000
Repayment of HECM securitizations (285,985,000) (26,829,000)
Issuance of excess spread financing   0
Repayment of excess spread financing 0 0
Increase (decrease) in participating interest financing in reverse mortgage interests 0 0
Repayment of nonrecourse debt–legacy assets (3,056,000) (3,138,000)
Repurchase of unsecured senior notes 0  
Excess tax (deficiency) benefit from share-based compensation 0 0
Redemption of shares relating to stock vesting 0 0
Repurchase of treasury shares 0  
Net cash attributable to financing activities (143,295,000) 314,347,000
Net increase (decrease) in cash and cash equivalents 18,663,000 9,926,000
Cash and cash equivalents at beginning of period 15,380,000 18,944,000
Cash and cash equivalents at end of period $ 34,043,000 $ 28,870,000
v3.4.0.3
Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC - Narrative (Details)
 3 Months Ended
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Mar. 31, 2016
USD ($)
servicer_advance_facility
special_purpose_entity
Mar. 31, 2015
USD ($)
Dec. 31, 2013
USD ($)
Feb. 28, 2013
USD ($)
Related Party Transaction [Line Items]            
Principal amount outstanding on mortgage servicing rights $ 1,900,000,000   $ 1,900,000,000      
Outstanding liability 1,161,270,000 $ 1,232,086,000 1,161,270,000      
Proceeds from sale agreement         $ 307,300,000  
Mortgage servicing rights financing liability - fair value 81,729,000 68,696,000 $ 81,729,000      
Purchase price paid reverse mortgage           $ 50,200,000
Percentage of aquired reverse loans, sold to co-investor           70.00%
Newcastle            
Related Party Transaction [Line Items]            
Servicing fee, percentage of unpaid principal balance     0.50%      
Principal amount outstanding on mortgage servicing rights 600,000,000 700,000,000 $ 600,000,000      
Servicing fees and other performance incentive fees received     800,000 $ 900,000    
Delinquent service fees recorded 24,700,000 30,700,000        
New Residential            
Related Party Transaction [Line Items]            
Servicing fees and other performance incentive fees received     200,000.0 0    
Nonrecourse variable funding notes     $ 2,100,000,000      
Number of Wholly Owned Special Purpose Entities | special_purpose_entity     2      
Number of Servicer Advance Facilities | servicer_advance_facility     2      
Revenue recognized from servicing agreements     $ 1,000,000 1,700,000    
Fair Value, Measurements, Recurring            
Related Party Transaction [Line Items]            
Outstanding liability 1,200,000,000 1,200,000,000 1,200,000,000      
Mortgage servicing rights financing liability - fair value 81,729,000   81,729,000      
Reverse Mortgages            
Related Party Transaction [Line Items]            
Principal amount outstanding on mortgage servicing rights 29,000,000,000 $ 29,900,000,000 29,000,000,000     $ 83,100,000
Loan Subservicing Agreement | NIC Reverse Loan LLC            
Related Party Transaction [Line Items]            
Related party transaction amount     0 0    
Loan Subservicing Agreement | Springleaf            
Related Party Transaction [Line Items]            
Related party transaction amount     2,000,000,000      
Recognized revenue from related party $ 3,100,000   $ 3,100,000 $ 200,000