Document and Entity Information

6 Months Ended

Jun. 30, 2015

Document and Entity Information [Abstract]

Entity Registrant Name

Nationstar Mortgage Holdings Inc.

Entity Central Index Key

0001520566

Document Type

10-Q

Document Period End Date

Jun. 30, 2015

Amendment Flag

false

Document Fiscal Year Focus

2015

Document Fiscal Period Focus

Q2

Current Fiscal Year End Date

--12-31

Entity Filer Category

Non-accelerated Filer

Entity Common Stock, Shares Outstanding

109,734,001

Consolidated Balance Sheets (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Assets

Cash and cash equivalents

$ 562,939

$ 299,002

Restricted cash

387,914

285,530

Mortgage servicing rights, $3,350,298 and $2,949,739 at fair value, respectively

3,360,322

2,961,321

Advances

2,348,114

2,546,362

Reverse mortgage interests

7,424,565

2,453,069

Mortgage loans held for sale

1,906,010

1,277,931

Mortgage loans held for investment, net of allowance for loan losses of $3,549 and $3,531, respectively

182,330

191,569

Property and equipment, net of accumulated depreciation of $87,468 and $69,721, respectively

134,155

129,611

Derivative financial instruments

108,265

91,051

Other assets

906,889

877,229

Total assets

17,321,503

11,112,675

Liabilities and equity

Unsecured senior notes

2,158,392

2,159,231

Advance facilities

1,826,452

1,901,783

Warehouse facilities

2,152,915

1,572,622

Payables and accrued liabilities

1,390,207

1,322,078

MSR related liabilities - nonrecourse

1,287,140

1,080,465

Mortgage servicing liabilities

47,775

65,382

Derivative financial instruments

7,859

18,525

Other nonrecourse debt

(6,693,772)

(1,768,311)

Total liabilities

15,564,512

9,888,397

Commitments and contingencies

0

Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding

0

Common stock at $0.01 par value - 1,000,000 shares authorized, 108,881 shares and 90,999 shares issued, respectively

1,084

910

Additional paid-in-capital

1,097,441

587,446

Retained earnings

669,303

643,059

Treasury shares; 858 shares and 602 shares at cost, respectively

(18,637)

(12,433)

Total Nationstar stockholders' equity

1,749,191

1,218,982

Noncontrolling interest

7,800

5,296

Total equity

1,756,991

1,224,278

Total liabilities and equity

$ 17,321,503

$ 11,112,675

Consolidated Balance Sheets (Parenthetical) (USD $)

In Thousands, except Share data, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Statement of Financial Position [Abstract]

Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt

$ 3,549

$ 3,531

Mortgage servicing rights at fair value

(3,350,298)

(2,949,739)

Accumulated depreciation of property and equipment

$ 87,468

$ 69,721

Preferred stock, par value

$ 0.01

Preferred stock, shares authorized

300,000,000

Preferred stock, shares issued

0

Preferred stock, shares outstanding

0

Common stock, par value

$ 0.01

Common stock, shares authorized

(1,000,000,000)

Common stock, shares issued

108,881,000

90,999,000

Treasury Shares

858,000

602,000

Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $)

In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Revenues:

Service related

$ 457,723

$ 376,817

$ 672,846

$ 718,528

Net gain on mortgage loans held for sale

163,886

172,916

330,880

300,852

Total revenues

621,609

549,733

1,003,726

1,019,380

Expenses:

Salaries, wages and benefits

(198,356)

(154,052)

(377,112)

(310,647)

General and administrative

242,629

192,659

447,716

357,197

Total expenses

440,985

346,711

824,828

667,844

Other income (expense):

Interest income

87,155

42,941

130,929

86,884

Interest expense

(147,863)

(139,422)

(263,511)

(296,022)

Gain (loss) on interest rate swaps and caps

95

(953)

(672)

1,868

Total other income (expense)

(60,613)

(97,434)

(133,254)

(207,270)

Income before taxes

120,011

105,588

45,644

144,266

Income tax expense

44,171

38,941

16,646

53,942

Net income

75,840

66,647

28,998

90,324

Less: Net gain (loss) attributable to noncontrolling interests

1,281

192

2,754

(167)

Net income attributable to Nationstar

74,559

66,455

26,244

90,491

Other comprehensive income, net of tax:

Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively

0

(1,963)

Comprehensive income

$ 74,559

$ 66,455

$ 26,244

$ 88,528

Earnings per share:

Basic earnings per share (in dollars per share)

$ 0.69

$ 0.74

$ 0.27

$ 1.01

Diluted earnings per share (in dollars per share)

$ 0.69

$ 0.74

$ 0.26

$ 1.01

Weighted average shares:

Basic (shares)

107,521

89,465

98,864

89,404

Dilutive effect of stock awards (shares)

368

729

548

592

Diluted (shares)

107,889

90,194

99,412

89,996

Dividends declared per share (in dollars per share)

$ 0

Unaudited Consolidated Statements of Operations Unaudited Consolidated Statements of Operations and Comprehensive Income (Parenthetical) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Income Statement [Abstract]

Tax on cash flow hedges

$ 0

$ (1,183)

Consolidated Statements of Shareholders' Equity (USD $)

In Thousands, unless otherwise specified

Total

Common Stock

Additional Paid-in Capital

Retained Earnings

Treasury shares

Accumulated Other Comprehensive Income

Total Nationstar Stockholders' Equity

Non-controlling interests

Beginning of Period at Dec. 31, 2013

$ 989,898

$ 906

$ 566,642

$ 422,341

$ (6,944)

$ 1,963

$ 984,908

$ 4,990

Beginning of Period, shares at Dec. 31, 2013

90,330

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Shares (including forfeitures) issued under incentive plan (shares)

1,271

Shares (including forfeitures) issued under incentive plan

4

(4)

Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively

(1,963)

Share-based compensation

18,565

Excess tax benefit from share-based compensation

2,243

Shares acquired by Nationstar related to incentive compensation awards

(5,489)

Net income

221,024

220,718

306

Ending of Period at Dec. 31, 2014

1,224,278

910

587,446

643,059

(12,433)

0

1,218,982

5,296

Ending of Period, shares at Dec. 31, 2014

91,601

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Shares (including forfeitures) issued under incentive plan (shares)

633

Shares (including forfeitures) issued under incentive plan

0

Change in value of designated cash flow hedge, net of tax of $0 and ($1,183), respectively

0

Share-based compensation

11,313

Excess tax benefit from share-based compensation

1,095

Shares acquired by Nationstar related to incentive compensation awards

(6,204)

Net income

28,998

26,244

2,754

Acquisition of non-controlling interest in subsidiaries

(250)

(1)

1

(250)

Issuance of common stock, net (shares)

17,500

Issuance of common stock, net

497,761

175

497,586

497,761

Tax on cash flow hedges

0

Ending of Period at Jun. 30, 2015

$ 1,756,991

$ 1,084

$ 1,097,441

$ 669,303

$ (18,637)

$ 0

$ 1,749,191

$ 7,800

Ending of Period, shares at Jun. 30, 2015

109,734

Unaudited Consolidated Statements of Cash Flows (USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Operating activities

Net income (loss) attributable to Nationstar

$ 26,244

$ 90,491

Adjustments to reconcile net income to net cash (used in) / provided by operating activities:

Share-based compensation

11,313

6,868

Excess tax benefit from share-based compensation

(1,095)

(2,189)

Net gain on mortgage loans held for sale

(330,880)

(300,852)

Mortgage loans originated and purchased, net of fees

(9,883,868)

(11,470,908)

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

(9,429,885)

(12,089,338)

Gain (loss) on interest rate swaps and caps

672

(1,868)

Cash settlement on derivative financial instruments

0

1,352

Depreciation and amortization

26,627

20,401

Amortization (accretion) of premiums/discounts

(5,190)

13,037

Fair value changes in excess spread financing

38,951

23,767

Fair value changes and amortization/accretion of mortgage servicing rights

(183,042)

(123,573)

Fair value change in mortgage servicing rights financing liability

9,640

(49,257)

Changes in assets and liabilities:

Advances

217,638

769,754

Reverse mortgage interests

(124,449)

(413,478)

Other assets

65,637

223,116

Payables and accrued liabilities

38,697

(260,566)

Net cash attributable to operating activities

(297,136)

862,579

Investing activities

Property and equipment additions, net of disposals

(27,051)

(23,678)

Purchase of forward mortgage servicing rights, net of liabilities incurred

(500,041)

(187,803)

Purchase of reverse mortgage interests, net of participations sold

(4,815,684)

0

Proceeds on sale of servicer advances

0

512,527

Acquisitions, net

(45,276)

(18,000)

Net cash attributable to investing activities

(5,388,052)

283,046

Financing activities

Transfers (to) / from restricted cash, net

102,384

(241,423)

Issuance of common stock, net of issuance costs

497,761

0

Debt financing costs

(10,639)

(9,153)

Increase (decrease) in warehouse facilities

580,293

(1,380,793)

Increase (decrease) in advance facilities

(75,331)

(76,148)

Proceeds from HECM securitizations

342,403

0

Repayment of HECM securitizations

(63,013)

0

Issuance of excess spread financing

258,196

111,118

Repayment of excess spread financing

(100,228)

(85,257)

Increase in participating interest financing in reverse mortgage interests

(4,633,093)

(192,355)

Proceeds from mortgage servicing rights financing

0

52,835

Repayment of nonrecourse debt – Legacy assets

(5,917)

(7,414)

Excess tax benefit from share-based compensation

1,095

2,189

Surrender of shares relating to stock vesting

(6,204)

(4,755)

Net cash attributable to financing activities

5,949,125

(963,600)

Net increase (decrease) in cash and cash equivalents

263,937

182,025

Cash and cash equivalents at beginning of period

299,002

441,902

Cash and cash equivalents at end of period

562,939

623,927

Supplemental disclosures of non-cash activities

Cash paid for interest expense

262,954

256,655

Net cash (received)/paid for income taxes

9,734

(25,540)

Supplemental disclosures of non-cash activities

1,465

2,125

Mortgage servicing rights resulting from sale or securitization of mortgage loans

105,506

120,212

Payable to seller of forward mortgage servicing rights

$ 13,492

$ 25,060

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 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 not 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 have been eliminated. 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.

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 consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles 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 accounting principles generally accepted in the United States (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 filed on February 27, 2015. 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.

Recent Accounting Developments

In 2015, Nationstar adopted ASU 2014-14. As a result of this adoption, the Company reclassified $22.3 million and $36.0 million of Real Estate Owned to Receivables from trusts, agencies and prior servicers, net, as of June 30, 2015 and December 31, 2014, respectively, both of which are a component of Other Assets on the consolidated balance sheet. Additionally, the Company reclassified $69.4 million of real estate owned (previously recorded as a component of other assets) to reverse mortgage interest as of December 31, 2014, on its consolidated balance sheet. Consequently, the presentation is consistent for all periods presented.

Accounting Standards Update 2015-02: Consolidation (Topic 810) - Amendments to the Consolidation Analysis (ASU 2015-02) changes the analysis that a reporting entity must perform when deciding to consolidate a legal entity. This amendment changes the evaluation of whether limited partnerships are variable interest entities or voting interest entities and eliminates the presumption that a general partner should consolidate a limited partnership. This amendment also changes the analysis for entities that are involved with variable interest entities and provides an exception for companies with interests in entities that are required to comply with requirements of the Investment Company Act of 1940 for registered money market funds. The amendment is effective for fiscal years and interim periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-02.

Accounting Standards Update 2015-03: Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03) 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. This amendment is effective for fiscal years beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-03.

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) 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. This amendment is effective for annual periods beginning after December 15, 2015. The Company is currently evaluating the impact of adopting ASU 2015-05.

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.

ASU 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), requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The adoption of ASU 2014-12 is not expected to have a material impact on our financial condition, liquidity or results of operation.

Accounting Standards Update 2015-01: Income Statement - Extraordinary and Unusual Items (Subtopic 225-20), Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items (ASU 2015-01) eliminates the concept of extraordinary items from GAAP. ASU 2015-01 is effective for fiscal years beginning after December 15, 2015. The adoption of

ASU 2015-01 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Classification of Certain Government-Guaranteed Loans Upon Foreclosure (ASU 2014-14). This update requires that foreclosed mortgage loans guaranteed by the government be derecognized and a separate other receivable recognized if certain conditions are met. Upon adoption of this ASU, foreclosed loans backed by government guarantees that were previously recorded as a component of Real Estate Owned in Other Assets were reclassified to Reverse Mortgage Interests on the Company's consolidated balance sheet. Consistent with the Company's adoption of ASU 2014-14, prior year amounts were reclassified to be in conformity with the current year presentation. The adoption of ASU 2014-14 did not have an impact to the Company's net income.

Effective January 1, 2015, the Company adopted Accounting Standards Update No. 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure (ASU 2014-04). This update requires disclosure of consumer mortgage loans collateralized by residential real estate for which formal foreclosure proceedings are in process. Consistent with the Company's adoption of ASU 2014-04, the Company made the required disclosure for the current and prior year in the Mortgage Loans Held for Sale and Investment footnote. The adoption of ASU 2014-04 did not have an impact to the Company's net income.

Mortgage Servicing Rights

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights and Related Liabilities



MSRs and Related Liabilities	June 30, 2015		December 31, 2014
MSRs - Fair Value	$	3,350,298	$	2,949,739
MSRs - LOCOM	10,024		11,582
Mortgage Servicing Rights	3,360,322		2,961,321

Mortgage Servicing Liabilities	47,775		65,382

Excess spread financing - fair value	1,228,070		1,031,035
Mortgage servicing rights financing liability - fair value	59,070		49,430
MSR Related Liabilities (nonrecourse)	$	1,287,140	$	1,080,465

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

The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs.



	June 30, 2015				December 31, 2014
	UPB		Fair Value		UPB		Fair Value
Credit Sensitive	$	247,720,305	$	2,171,954	241,769,601		1,919,290
Interest Sensitive	105,686,989		1,178,344		91,843,044		1,030,449
	$	353,407,294	$	3,350,298	$	333,612,645	$	2,949,739

The activity of MSRs carried at fair value is as follows for the dates indicated:



	For the six months ended June 30,
	2015			2014
Fair value at the beginning of the period	2,949,739			2,488,283
Additions:
Servicing resulting from transfers of financial assets	105,506			120,212
Purchases of servicing assets	494,145			193,677
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	18,347			24,821
Other changes in fair value	(217,439		)	(148,859		)
Fair value at the end of the period	$	3,350,298		$	2,678,134

In the fourth quarter of 2014, the Company revised its approach in calculating Other Changes in Fair Value in the above rollforward. Under the revised approach, Nationstar began incorporating scheduled principal payments, which were previously included as a component in the Due to changes in valuation inputs or assumptions line, as a component in Other changes in fair value. Nationstar has reclassified the amounts presented in the June 30, 2014 rollforward to conform to the current presentation. There was no impact to net income or to the total changes in fair value in the prior period as a result of the reclassified amounts.

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:



Credit Sensitive	June 30, 2015		December 31, 2014
Discount rate	11.66	%	11.96	%
Total prepayment speeds	17.05	%	18.58	%
Expected weighted-average life	5.91 years		5.39 years
Interest Sensitive	June 30, 2015		December 31, 2014
Discount rate	9.10	%	9.09	%
Total prepayment speeds	11.68	%	11.27	%
Expected weighted-average life	6.38 years		6.49 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 June 30, 2015 and December 31, 2014:



	Discount Rate						Total Prepayment Speeds
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change
June 30, 2015
Mortgage servicing rights	$	(135,060	)	$	(247,779	)	$	(130,260	)	$	(249,466	)
December 31, 2014
Mortgage servicing rights	$	(110,900	)	$	(207,295	)	$	(112,603	)	$	(199,078	)

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.

MSRs - LOCOM

Nationstar owns the right to service certain reverse mortgages with an unpaid principal balance of $31.8 billion and $28.0 billion as of June 30, 2015 and December 31, 2014, 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 including discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At June 30, 2015 and December 31, 2014, no impairment was identified. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest income or service related revenues based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related Home Equity Conversion Mortgages (HECMs) subsequent to the acquisition of the rights to service these loans.

The activity of MSRs carried at amortized cost is as follows for the dates indicated:



	For the six months ended June 30,
	2015						2014
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	11,582		$	65,382		$	14,879		$	82,521
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			—			—
Deductions:
Amortization/Accretion	(1,558		)	(17,607		)	(1,564		)	(2,029		)
Balance at end of the period	$	10,024		$	47,775		$	13,315		$	80,492
Fair value at end of period	$	31,636		$	39,042		$	36,997		$	62,680

For the six month periods ended June 30, 2015 and 2014, the Company accreted $17.6 million and $2.0 million, respectively, of the mortgage servicing liability as a result of increased HECM loan repurchase activity. 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 conjunction with Nationstar's acquisition of certain MSRs on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into 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 the retained portion of the excess servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. New Residential has no prior or ongoing obligations associated with the Portfolios.

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.

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
June 30, 2015
Low	7.2%	3.9 years	8.5%	6.8%
High	17.3%	8.6 years	14.2%	30.3%
December 31, 2014
Low	6.2%	4.0 years	8.5%	6.7%
High	19.4%	7.1 years	14.2%	31.3%

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
June 30, 2015
Excess spread financing	$	40,932	$	86,191	$	33,607	$	71,308
December 31, 2014
Excess spread financing	$	36,632	$	75,964	$	33,618	$	70,379

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. In addition, Nationstar records a MSRs 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 has 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 income and comprehensive income. The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows:



	June 30, 2015		December 31, 2014
Advance financing rates	2.79	%	2.79	%
Annual advance recovery rates	24.67	%	27.55	%

Advances

Accounts Receivable

Advances



	June 30, 2015		December 31, 2014

Advances	$	2,348,114	$	2,546,362

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. For advances on agency securities, servicing advances 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.

Nationstar accretes purchase discounts into interest income as the related servicer advances are recovered. During the three and six month period ended June 30, 2015, the Company accreted $0.0 million and $0.3 million, respectively, of the purchase discounts from recovered servicer advances. During the three and six month periods ended June 30, 2014, the Company accreted $3.4 million and $8.4 million respectively, of the purchase discounts from recovered servicer advanced into interest income.

As of June 30, 2015 and December 31, 2014, Nationstar carried an allowance for uncollectible servicer advances of $13.9 million and $9.2 million, respectively. Advances balances are reflected net of these reserves.

Reverse Mortgage Interests (Notes)

Reverse Mortgage Interests

Reverse mortgage interests



	June 30, 2015			December 31, 2014
Participating interests	$	6,015,287		$	1,363,225
Other interests securitized	548,276			341,268
Unsecuritized interests	874,388			752,801
Allowance for losses - reverse mortgage interests	(13,386		)	(4,225		)
Total reverse mortgage interests	$	7,424,565		$	2,453,069

Participating interests consists of Nationstar HECM loans and related advances that have been securitized through the issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) guaranteed by Ginnie Mae to third party security holders. In May, 2015, the Company paid $192 million funded from cash on hand to Generation Mortgage and received reverse mortgage net assets valued at $233 million, comprised of $4.9 billion of UPB assets and $4.6 billion of assumed liabilities.

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.

In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1Mortgage 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. In 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.

In the second quarter of 2015, the company issued $269.4 million of notes through a private mortgage-backed securities issuance; secured with non-performing HECM loans and REO properties acquired from a Ginnie Mae sponsored HECM mortgage-backed security. The notes have a final maturity date of May 2018. This transaction was accounted for as a secured borrowing, the related financial assets will continue to be recorded at lower of cost or market with a corresponding liability to other non-recourse debt. No portion of the notes were retained by the Company as of June 30, 2015.

Unsecuritized interests consist primarily of (1) recently funded borrower draws; (2) Ginnie Mae HECMs that have been repurchased out of a Ginnie Mae HECM securitization that have reached 98% or more of the maximum claim amount; (3) repurchased Ginnie Mae HECM interests that have been assigned to the FHA for reimbursement; (4) foreclosed assets; (5) advances made on inactive loans that cannot be securitized due to the delinquency status; and (6) accounts receivable related to FHA claims. 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. As stated above, these transactions are treated as secured borrowings with both the reverse mortgage interests and related indebtedness retained on Nationstar’s balance sheet.

Nationstar evaluates its reverse mortgage interests on a periodic basis. As of the three and six month periods ended June 30, 2015, no impairment was recorded.

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, primarily Ginnie Mae, in the secondary market. Nationstar primarily 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 delivered to third-party purchasers or securitized shortly after origination on a servicing-retained basis.

Mortgage loans held for sale consist of the following for the dates indicated:



	June 30, 2015		December 31, 2014
Mortgage loans held for sale – unpaid principal balance	$	1,854,736	$	1,218,596
Mark-to-market adjustment⁽¹⁾	51,274		59,335
Total mortgage loans held for sale	$	1,906,010	$	1,277,931

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

The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated:



	June 30, 2015				December 31, 2014
Mortgage loans held for sale - unpaid principal balance	UPB		Fair Value		UPB		Fair Value
Nonaccrual	$	27,381	$	24,812	$	31,968	$	26,022

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	June 30, 2015		December 31, 2014
Foreclosure	$	15,706	$	17,493

A reconciliation of the changes in mortgage loans held for sale for the dates indicated is presented in the following table:



	For the six months ended
	June 30, 2015			June 30, 2014
Mortgage loans held for sale – beginning balance	$	1,277,931		$	2,603,380
Mortgage loans originated and purchased, net of fees	9,854,949			11,470,908
Proceeds on sale of and payments of mortgage loans held for sale	(9,420,331		)	(12,089,338		)
Gain on Sale of Mortgage Loans⁽¹⁾	196,727			241,971
Transfer of mortgage loans held for sale to held for investment or other assets	(3,266		)	(2,100		)
Mortgage loans held for sale – ending balance	$	1,906,010		$	2,224,821

⁽¹⁾The gain on sale of mortgage loans is reflected in net gain on mortgage loans held for sale on our consolidated statements of income and comprehensive income.

Included in Mortgage loans originated and purchased, net of fees are loans repurchased out of Ginnie Mae pools where we are the named servicer. As named servicer, 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 repool into new Ginnie Mae securitizations or to otherwise sell to third-party investors. For the six months ended June 30, 2015 and June 30, 2014, Nationstar repurchased loans from Ginnie Mae securitization pools $0.9 billion and $2.3 billion of mortgage loans, respectively.

Mortgage loans held for investment, net

Mortgage loans held for investment, net as of the dates indicated include:



	June 30, 2015			December 31, 2014
Mortgage loans held for investment, net – unpaid principal balance	$	263,581		$	276,820
Transfer discount:
Accretable	(13,825		)	(15,503		)
Non-accretable	(63,877		)	(66,217		)
Allowance for loan losses	(3,549		)	(3,531		)
Total mortgage loans held for investment, net	$	182,330		$	191,569

The changes in accretable yield on loans transferred to mortgage loans held for investment, net were as follows:



	For the six months ended June 30, 2015			For the year ended December 31, 2014
Accretable Yield
Balance at the beginning of the period	$	15,503		$	17,362
Accretion	(1,406		)	(2,955		)
Reclassifications from (to) nonaccretable discount	(272		)	1,096
Balance at the end of the period	$	13,825		$	15,503

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 $0.3 million of transfer discount to non-accretable yield for the six months ended June 30, and $1.1 million for the year ended December 31, 2014. Furthermore, 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 LTV’s 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	June 30, 2015		December 31, 2014
Foreclosure	$	47,688	$	52,769

Other Assets

Other assets consisted of the following:



	June 30, 2015		December 31, 2014
Receivables from trusts, agencies and prior servicers, net	$	389,583	$	386,166
Accrued revenues	161,110		154,436
Loans subject to repurchase right from Ginnie Mae	133,928		131,592
Goodwill	68,479		54,701
Deferred financing costs	49,344		46,986
Intangible assets	46,633		19,622
Prepaid expenses	12,559		9,837
Accrued interest	1,644		1,890
Real estate owned (REO), net	1,713		1,625
Other	41,896		70,374
Total other assets	$	906,889	$	877,229

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 $133.9 million at June 30, 2015 and $131.6 million at December 31, 2014.

Acquisitions

In January 2015, Xome Holdings LLC (previously known as Solutionstar Holdings LLC hereafter referred to a Xome^SM), a wholly owned subsidiary of Nationstar, acquired Experience 1, Inc., the holding company for Title365, Trusted Signing, and technology subsidiaries X1 Labs and X1 Analytics (collectively, Title365), a technology services provider for title insurance and escrow services. The total consideration transferred for the acquisition was $36.0 million in cash. Related to the acquisition, the Company recorded an additional $16.8 million related to goodwill and $14.2 million in intangible assets. The recognized intangible assets primarily relate to customer relationships, trade names and technology.

In May 2015, Xome^SM 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. 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. GoPaperless will be integrated into the Xome.com platform during the third quarter. Related to the acquisitions, the company tentatively recorded an additional $4 million related to goodwill and $10 million in intangible assets pending a final valuation.

Derivative Financial Instruments

Derivatives instruments utilized by Nationstar primarily include interest rate lock commitments (IRLCs), Loan Purchase Commitments (LPCs), Forward MBS trades, Eurodollar futures and interest rate swap agreements.

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 and mortgage loans held for sale, respectively, in the consolidated balance sheets. The initial and subsequent changes in value on forward sales of MBS and forward sale commitments are a component of net gain on mortgage loans held for sale.

Nationstar may occasionally enter 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. Subsequent 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. As a result, realized and unrealized changes in fair value are recognized in net gain on mortgage loans held for sale in the period in which the changes occur.

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. 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 income (loss) and comprehensive income (loss). Unrealized losses on designated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows.

Historically, Nationstar has entered into interest rate swap agreements to hedge the interest payments associated with its outstanding floating rate financing servicer advance facilities. Prior to March 31, 2014, certain of these derivatives were designated as cash flow hedges and were recorded at fair value on Nationstar's balance sheet, with any change in fair value being recorded as an adjustment to other comprehensive income. On March 31, 2014, the Company designated the remainder of the interest rate swap agreements, with any further changes in fair value being recorded as a charge to gain or loss in interest rate swaps and caps in Nationstar's consolidated statements of income (loss) and comprehensive income (loss).

Associated with the Company's forward MBS trades are $13.9 million and $9.8 million in collateral deposits on derivative instruments recorded in payables and accrued liabilities and other assets, respectively, on the Company's balance sheets as of June 30, 2015 and December 31, 2014, 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.

During the six months ended June 30, 2015, Nationstar entered into two interest rate caps with notional values of $800 million and $400 million, respectively, to mitigate interest rate risk. The interest rate caps expire during 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)
For the six months ended June 30, 2015
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	1,000	$	37		$	41
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,998,234		81,205			(6,660		)
Forward MBS trades	2015	3,138,409		22,864			22,580
LPCs	2015	313,444		4,196			2,197
Interest rate and caps	2015-2016	1,200,000		—			—
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	43,129		206			(199		)
Forward MBS trades	2015	1,386,757		3,691			14,669
LPCs	2015	559,260		3,787			(3,739		)
Interest rate swaps and caps	2017	29,958		57			(672		)
Eurodollar futures	2015-2017	120,000		118			(111		)

For the year ended December 31, 2014
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	1,666	$	(4	)	$	(11	)
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,556,169		87,902			774
Forward MBS trades	2015	319,112		284			(31,982		)
LPCs	2015	287,089		1,999			1,206
Interest rate swaps and caps	2017	124,650		865			(1,673		)
Eurodollar futures	2015-2017	40,000		1			1
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	865		7			2,691
Interest rate swaps on ABS debt	2015-2017	105,681		103			731
Forward MBS trades	2015	2,958,700		18,360			(15,055		)
LPCs	2015	30,494		48			1,641
Eurodollar futures	2015-2017	80,000		7			(7		)

Indebtedness

Notes Payable



						June 30, 2015				December 31, 2014
	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral pledged
Advance Facilities
MBS advance financing facility	LIBOR+2.50% to 4.00%	March 2016	Servicing advance receivables	$	130,000	$	63,770	$	69,505	$	363,014	$	418,126
Securities repurchase facility (2011)	LIBOR +3.50%	90 day revolving	Nonrecourse debt - Legacy Assets	—		35,058		55,603		34,613		55,603
Nationstar agency advance financing facility ⁽¹⁾	LIBOR+1.20% to 3.75%	October 2015	Servicing advance receivables	1,300,000		1,061,500		1,195,152		805,706		885,115
MBS advance financing facility (2012)	LIBOR+5.00%	April 2016	Servicing advance receivables	50,000		45,510		54,441		42,472		50,758
Nationstar Mortgage Advance Receivable Trust	LIBOR+1.15% to 5.30%	June 2018	Servicing advance receivables	500,000		411,563		475,978		419,170		471,243
MBS servicer advance facility (2014)	LIBOR+3.50%	September 2015	Servicing advance receivables	100,000		99,820		166,954		79,084		138,010
Nationstar servicer advance receivables trust 2014 - BC	LIBOR+1.50% to 3.00%	November 2015	Servicing advance receivables	200,000		109,231		120,719		106,115		121,030
Securities repurchase facility (2014)	LIBOR+1.50% to 2.00%	November 2017	Securities	—		—		—		51,609		74,525
						$	1,826,452	$	2,138,352	$	1,901,783	$	2,214,410

						June 30, 2015				December 31, 2014
	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral pledged
Warehouse Facilities
$1.3 billion warehouse facility	LIBOR+2.00% to 2.875%	October 2015	Mortgage loans or MBS	$	1,300,000	$	710,840	$	757,426	$	663,167	$	697,257
$1.0 billion warehouse facility	LIBOR+1.75% to 3.25%	June 2016	Mortgage loans or MBS	1,000,000		619,540		675,637		307,294		320,285
$500 million warehouse facility	LIBOR+1.75% to 2.75%	September 2015	Mortgage loans or MBS	500,000		299,800		307,209		176,194		179,994
$500 million warehouse facility	LIBOR+ 1.50% to 2.00%	July 2015	Mortgage loans or MBS	500,000		292,608		310,047		183,290		192,990
$350 million warehouse facility	LIBOR+2.20% to 4.50%	March 2016	Mortgage loans or MBS	350,000		115,443		124,151		210,049		223,849
$200 million warehouse facility	LIBOR+1.50%	April 2016	Mortgage loans or MBS	200,000		40,029		42,560		—		—
$75 million warehouse facility (HCM) ⁽²⁾	LIBOR+ 2.25% to 2.875%	October 2015	Mortgage loans or MBS	75,000		49,337		51,944		23,949		29,324
$50 million warehouse facility (HCM)	LIBOR + 2.50% to 2.75%	November 2015	Mortgage loans or MBS	50,000		25,318		26,381		8,679		9,044
ASAP+ facility	LIBOR+1.50%	Up to 45 days	GSE mortgage loans or GSE MBS	—		—		—		—		—
						$	2,152,915	$	2,295,355	$	1,572,622	$	1,652,743

Mortgage loans						$	1,735,473	$	1,842,445	$	1,196,956	$	1,241.043
Reverse mortgage interests						$	417,442	$	452,910	$	375,666	$	411,700

⁽¹⁾ This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.20% and a weighted average term of 5 years.

⁽²⁾ 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:



	June 30, 2015		December 31, 2014
$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	378,153		378,555
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,495		400,541
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021	604,745		605,135
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022	300,000		300,000
Total	$	2,158,392	$	2,159,231

The indentures for the Unsecured Senior Notes contain various covenants and restrictions that limit Nationstar's ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of its 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 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 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 June 30, 2015, the expected maturities of Nationstar's Unsecured Senior Notes based on contractual maturities are as follows:



Year	Amount
2015	$	—
2016	—
2017	—
2018	475,000
2019	375,000
Thereafter	1,300,000
Total	$	2,150,000

Other Nonrecourse Debt

A summary of the balances of other nonrecourse debt is presented below:



	June 30, 2015		December 31, 2014
Participating interest financing	$	6,084,064	$	1,433,145
2014-1 HECM securitization	275,138		259,328
2015-1 HECM securitization	263,901		—
Nonrecourse debt - Legacy Assets	70,669		75,838
Total	$	6,693,772	$	1,768,311

Participating Interest Financing

Participating interest financing represents the issuance of pools of HMBS to third-party security holders which are guaranteed by certain GSEs. Nationstar has accounted for the securitization of these advances in the related HECM loans 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 increase in participating interest financing and related reverse mortgage interests for the period ending June 30, 2015 is due to the acquisition from Generations mortgage. The interest rate is based on the underlying HMBS rate with a range of 0.14% to 6.98%. The participating interest financing was $6.1 billion and $1.4 billion at June 30, 2015 and December 31, 2014, respectively.

HECM Securitizations

From time to time, Nationstar securitizes its interests in reverse mortgages. The transactions provide investors with the ability to invest in a pool of non-performing home equity conversion reverse mortgage loans that are covered by Federal Housing Administration (FHA) insurance and secured by one to four-family residential properties and a pool of REO properties acquired through foreclosure or grant of a deed in lieu of foreclosure in connection with reverse mortgage loans that are covered by FHA insurance. The transaction provides Nationstar with access to liquidity for the acquired 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. The nonrecourse debt totaled $539.0 million and $259.3 million at June 30, 2015 and December 31, 2014, respectively.

In December 2014, Nationstar Mortgage LLC completed the securitization of approximately $343.6 million in Nationstar HECM Loan Trust 2014-1Mortgage 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. In 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.

In June 2015, Nationstar Mortgage LLC completed the securitization of approximately $269.4 million in Nationstar HECM Loan Trust 2015-1Mortgage Backed Securities. The notes were issued under two separate classes, comprised of Class A Notes and Class M Notes. No portion of the notes were retained by the Company.

Nonrecourse Debt–Legacy Assets

In 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 Nationstar’s consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt of $70.7 million at June 30, 2015 and $75.8 million at June 30, 2014. 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 $262.1 million and $268.2 million at June 30, 2015 and December 31, 2014, 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 $82.3 million and $88.2 million at June 30, 2015 and December 31, 2014, 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 of June 30, 2015, management believes Nationstar was in compliance with its financial covenants.

Nationstar is required to maintain a minimum tangible net worth of at least $685 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of June 30, 2015, Nationstar was in compliance with these minimum tangible net worth requirements.

Accounts Payable

Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following:



	June 30, 2015		December 31, 2014
Payables to servicing and subservicing investors	$	416,383	$	329,306
Accrued interest	60,550		59,708
Loans subject to repurchase from Ginnie Mae	133,928		131,592
Taxes	101,810		96,237
Payable to insurance carriers and insurance cancellation reserves	104,749		163,381
Accrued bonus and payroll	74,923		85,366
Repurchase reserves	28,831		29,165
MSR purchases payable including advances	23,098		45,697
Other	445,935		381,626
Total payables and accrued liabilities	$	1,390,207	$	1,322,078

Payables to servicing and subservicing investors

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.

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.

Variable Interest Entities and Securitizations

Securitizations and Financings

Variable Interest Entities

In the normal course of business, Nationstar enters into various types of on- and off-balance sheet transactions with special purpose entities (SPEs), 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 interests in 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.

The Company evaluates its interests in each SPE for classification as a Variable Interest Entity (VIE). When an SPE meets the definition of a VIE and the Company determines that Nationstar is the primary beneficiary, the Company includes the SPE in its consolidated financial statements.

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, (iii) Nationstar Agency Advance Financing Facility, and (iv) Nationstar Servicer Advance Receivables Trust, 2014 BC should be consolidated as Nationstar is the primary beneficiary. Also, Nationstar consolidates two reverse mortgage SPE’s which are (v) Nationstar HECM Loan Trust 2014-1 and (vi) Nationstar HECM Loan Trust 2015-1 as Nationstar has determined that it is the primary beneficiary.

Nationstar evaluates its interests 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.

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:



	June 30, 2015				December 31, 2014
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
ASSETS
Restricted cash	$	169,827	$	11,956	$	90,068	$	15,578
Reverse mortgage interests	—		6,563,553		—		1,642,789
Advances	1,791,849		—		1,477,388		—
Mortgage loans held for investment, net	181,154		—		189,456		—
Derivative financial instruments	—		—		865		—
Other assets	2,726		—		2,678		—
Total Assets	$	2,145,556	$	6,575,509	$	1,760,455	$	1,658,367
LIABILITIES
Advance facilities	$	1,582,294	$	—	$	1,330,991	$	—
Payables and accrued liabilities	1,799		377		1,596		186
Nonrecourse debt–Legacy Assets	70,669		—		75,838		—
2014-1 HECM Securitization	—		275,138		—		259,328
2015-1 HECM Securitization	—		263,901		—		—
Participating interest financing	—		6,084,064		—		1,433,145
Total Liabilities	$	1,654,762	$	6,623,480	$	1,408,425	$	1,692,659

Securitizations Treated as Sales

When Nationstar sells mortgage loans in securitization transactions 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:



	June 30, 2015		December 31, 2014
Total collateral balances	$	3,027,803	$	3,258,472
Total certificate balances	3,062,887		3,297,256

Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of June 30, 2015 or December 31, 2014, 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	June 30, 2015		June 30, 2014
Unconsolidated securitization trusts	$	730,235	$	936,178



	For the three months ended June 30,				For the six months ended June 30,
Credit Losses	2015		2014		2015		2014
Unconsolidated securitization trusts	$	57,759	$	80,890	$	115,220	$	147,432

Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows:



	For the three months ended June 30,								For the six months ended June 30,
	2015				2014				2015				2014
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Unconsolidated securitization trusts	$	6,491	$	—	$	10,408	$	—	$	12,864	$	—	$	18,186	$	—

Stockholders' Equity (Notes)

Stockholders' Equity

In March 2015, Nationstar completed an equity offering of 17.5 million shares for a total of $497.8 million in cash proceeds. Nationstar intends to use the net proceeds from this offering for general corporate purposes, including acquisitions, transfers of servicing portfolios, funding of advances and repayment of obligations.

During the first and second quarters of 2015, certain employees of Xome were granted 948 thousand stock appreciation rights (SARs) which can be settled in cash or units of Xome Holdings LLC (at the election of Xome). The SARs generally vest over three years and have a ten year term. The SARs become exercisable upon a liquidity event at Xome which includes a change in control or an initial public offering of Xome. The Company did not recognize expense related to the share-based awards during the six months ended June 30, 2015.

Income Taxes

Income tax expense was as follows:



	For the three months ended June 30,						For the six months ended June 30,
	2015			2014			2015			2014
Tax expense	$	44,171		$	38,941		$	16,646		$	53,942

Effective tax rate	36.8		%	36.9		%	36.5		%	37.4		%

The Company had a net deferred tax liability of $107.0 million at June 30, 2015 and $109.8 million at December 31, 2014. A valuation allowance of $6.4 million was recorded against deferred tax assets at June 30, 2015 and December 31, 2014 as management believes that it is more likely than not that some of the deferred tax assets will not be realized.

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.

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, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

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.

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.

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.

Notes Payable (Level 2) – Notes payable consists of outstanding borrowings on Nationstar's warehouse and advance financing facilities. 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.

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.

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.

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 on a recurring basis for similar financial instruments. The cash flow assumptions and prepayment 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. Changes in fair value of the excess spread financing are recorded as a component of service related revenue in Nationstar's consolidated statements of income and comprehensive income. 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.

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 with the discount rate approximating current market value on a recurring basis for similar financial instruments. The cash flow assumptions and prepayment 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. Changes in fair value of the mortgage servicing rights financing liability are recorded as a component of service related revenues in Nationstar’s consolidated statements of income and comprehensive income . As these prices are derived from internally developed valuation models based on the value of the underlying MSRs.

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.

HECM Securitizations (Level 3) – Nationstar estimates fair value of the non-recourse debt related to HECM securitizations 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.

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:



			June 30, 2015
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale⁽¹⁾	$	1,906,010	$	—	$	1,906,010	$	—
Mortgage servicing rights⁽¹⁾	3,350,298		—		—		3,350,298
Derivative financial instruments:
IRLCs	81,205		—		81,205		—
Forward MBS trades	22,864		—		22,864		—
LPCs	4,196		—		4,196		—
Interest rate swaps and caps	—		—		—		—
Total assets	$	5,364,573	$	—	$	2,014,275	$	3,350,298
LIABILITIES
Derivative financial instruments
IRLCs	206		—		206		—
Interest rate swaps and caps	57		—		57		—
Forward MBS trades	3,691		—		3,691		—
LPCs	3,787		—		3,787		—
Eurodollar futures	118		—		118		—
Mortgage servicing rights financing	59,070		—		—		59,070
Excess spread financing	1,228,070		—		—		1,228,070
Total liabilities	$	1,294,999	$	—	$	7,859	$	1,287,140

			December 31, 2014
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale⁽¹⁾	$	1,277,931	$	—	$	1,277,931	$	—
Mortgage servicing rights⁽¹⁾	2,949,739		—		—		2,949,739
Derivative financial instruments:
IRLCs	87,902		—		87,902		—
Forward MBS trades	284		—		284		—
LPCs	1,999		—		1,999		—
Interest rate swaps and caps	865		—		865		—
Eurodollar futures	1		—		1		—
Total assets	$	4,318,721	$	—	$	1,368,982	$	2,949,739
LIABILITIES
Derivative financial instruments
IRLCs	$	7	$	—	$	7	$	—
Interest rate swaps and caps	103		—		103		—
Forward MBS trades	18,360		—		18,360		—
LPCs	48		—		48		—
Eurodollar futures	7		—		7		—
Mortgage servicing rights financing	49,430		—		—		49,430
Excess spread financing	1,031,035		—		—		1,031,035
Total liabilities	$	1,098,990	$	—	$	18,525	$	1,080,465


⁽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
For the six months ended June 30, 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	(199,092		)	38,951			9,640
Included in other comprehensive income	—			—			—
Purchases, issuances, sales and settlements
Purchases	494,145			—			—
Issuances	105,506			258,196			—
Sales	—			—			—
Settlements	—			(100,112		)	—
Ending balance	$	3,350,298		$	1,228,070		$	59,070



	ASSETS			LIABILITIES
For the year ended December 31, 2014	Mortgage servicing rights			Excess spread financing			Mortgage servicing rights financing
Beginning balance	$	2,488,283		$	986,410		$	29,874
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in earnings	(247,379		)	57,554			(33,279		)
Included in other comprehensive income	—			—			—
Purchases, issuances, sales and settlements
Purchases	470,543			—			—
Issuances	238,292			171,317			52,835
Sales	—			—			—
Settlements	—			(184,246		)	—
Ending balance	$	2,949,739		$	1,031,035		$	49,430

The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments.



	June 30, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	562,939	$	562,939	$	—	$	—
Restricted cash	387,914		387,914		—		—
Mortgage loans held for sale	1,906,010		—		1,906,010		—
Mortgage loans held for investment, net	182,330		—		—		181,820
Reverse mortgage interests	7,424,565		—		—		7,453,656
Derivative financial instruments	108,265		—		108,265		—
Financial liabilities:
Unsecured Senior Notes	2,158,392		2,127,684		—		—
Advance Facilities	1,826,452		—		1,826,452		—
Warehouse Facilities	2,152,915		—		2,152,915		—
Derivative financial instruments	7,859		—		7,859		—
Excess spread financing	1,228,070		—		—		1,228,070
Mortgage servicing rights financing liability	59,070		—		—		59,070
Nonrecourse debt - Legacy assets	70,669		—		—		81,335
Participating interest financing	6,084,064		—		6,073,412		—
2014-1 HECM Securitization	275,138		—		—		287,801
2015-1 HECM Securitization	263,901		—		—		256,988

	December 31, 2014
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	299,002	$	299,002	$	—	$	—
Restricted cash	285,530		285,530		—		—
Mortgage loans held for sale	1,277,931		—		1,277,931		—
Mortgage loans held for investment, net	191,569		—		—		192,865
Reverse mortgage interests	2,453,069		—		—		2,432,735
Derivative financial instruments	91,051		—		91,051		—
Financial liabilities:
Unsecured Senior Notes	2,159,231		2,057,038		—		—
Advance Facilities	1,901,783		—		1,901,783		—
Warehouse Facilities	1,572,622		—		1,572,622		—
Derivative financial instruments	18,525		—		18,525		—
Excess spread financing	1,031,035		—		—		1,031,035
Mortgage servicing rights financing liability	49,430		—		—		49,430
Nonrecourse debt - Legacy assets	75,838		—		—		86,570
Participating interest financing	1,433,145		—		1,423,291		—
2014-1 HECM Securitization	259,328		—		—		259,328

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 $1.0 billion. As of June 30, 2015 Nationstar was in compliance with its selling and servicing capital requirements.

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 putative class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws, including, without limitation, the Equal Credit Opportunity Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Real Estate Settlement Procedures Act, Service members 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 Exchange Act of 1934, as amended, the Home Mortgage Disclosure Act and the Bankruptcy Code and False Claims Act. Additionally, along with others in its industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, relating to the sale of mortgage loans and/or the servicing of mortgage loans and securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of its various acquisitions. Certain of the 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.

Further, in the ordinary course of business the Company and its subsidiaries can be or are involved in governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), regarding the Company’s business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Such inquiries may include those into servicer loan originations, servicing, bankruptcy, foreclosure processes and procedures and lender-placed insurance.

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 estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. Once the matter is deemed to be both probable and 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 the fees paid to external legal service providers, of $16.2 million and $23.4 million for the three and six months ended June 30, 2015, and $10.3 million and $15.2 million for the three and six months ended June 30, 2014, respectively, was included in general and administrative expenses on the consolidated statements of income and comprehensive income.

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 $8.3 million to $20.1 million in excess of the accrued liability (if any) related to those matters as of June 30, 2015. 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 effect on the financial statements of the Company, although the outcome of such proceedings could be material to the Company’s financial statements 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.

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 $31.5 billion of unpaid principal balance 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 June 30, 2015, the Company’s maximum unfunded advance obligation related to these MSRs was approximately$3.5 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.

Business Segment Reporting

Nationstar presents financial performance utilizing reportable segments aligned with how the operations are managed. The Servicing segment reflects the results of operations attributable to MSRs acquired from and loans subserviced for third-parties and originated loans. The Xome (formerly known as Solutionstar) segment reflects financial performance related to real estate services (e.g., collateral valuation, title, closing services) and real estate exchange, including our Xome.comend-to-end digital platform and HomeSearch.com residential auction portal. The Originations segment includes fees associated with loan originations and gains from the sale and securitization of loans. The Corporate and Other segment encompasses certain identified corporate costs as well as the 'Legacy' portfolio which includes primarily subprime mortgage loans originated in the latter portion of 2006 and 2007 or acquired from Nationstar's predecessor.

Nationstar’s segments are based upon an organizational structure that 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 on 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.

Effective April 1, 2015, we reclassified a small portion of Xome segment activity involved with loss recovery to the Servicing segment to better align with how our chief operating decision maker internally reviews and operates this business. All periods presented reflect this reclassification. For the three and six months ending June 30, 2105, $4.5 million and $7.7 million of net income was moved from our Xome segment to our Servicing segment, respectively. For the three and six months ending June 30, 2104, $2.1 million and $2.3 million of net income was moved from our Xome segment to our Servicing segment, respectively.

The following tables are a presentation of financial information by segment for the periods indicated:



	For the three months ended June 30, 2015
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	320,654		$	13,428		$	122,004		$	456,086		$	1,855		$	(218	)	$	457,723
Net gain on mortgage loans held for sale	7,837			156,085			—			163,922			(36		)	—			163,886
Total revenues	328,491			169,513			122,004			620,008			1,819			(218		)	621,609
Total expenses	209,540			117,159			94,433			421,132			19,853			—			440,985
Other income (expense):
Interest income	66,922			16,862			—			83,784			3,153			218			87,155
Interest expense	(90,191		)	(14,854		)	(29		)	(105,074		)	(42,789		)	—			(147,863		)
Gain (loss) on interest rate swaps and caps	85			—			—			85			11			—			95
Total other income (expense)	(23,184		)	2,008			(29		)	(21,205		)	(39,625		)	218			(60,613		)
Income (loss) before taxes	$	95,767		$	54,362		$	27,542		$	177,671		$	(57,659	)	$	—		$	120,011
Depreciation and amortization	$	4,420		$	3,006		$	3,950		$	11,376		$	2,397		$	—		$	13,773
Total assets	14,423,073			1,879,284			271,056			16,573,413			748,090			—			17,321,503



	For the three months ended June 30, 2014
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	283,645		$	13,901		$	79,492		$	377,038		$	147		$	(368	)	$	376,817
Net gain on mortgage loans held for sale	22,094			151,201			—			173,295			(379		)	—			172,916
Total revenues	305,739			165,102			79,492			550,333			(232		)	(368		)	549,733
Total expenses	187,447			97,084			43,753			328,284			18,427			—			346,711
Other income (expense):
Interest income	22,158			17,327			—			39,485			3,088			368			42,941
Interest expense	(70,014		)	(16,711		)	(90		)	(86,815		)	(52,607		)	—			(139,422		)
Gain (loss) on interest rate swaps and caps	(953		)	—			—			(953		)	—			—			(953		)
Total other income (expense)	(48,809		)	616			(90		)	(48,283		)	(49,519		)	368			(97,434		)
Income (loss) before taxes	$	69,483		$	68,634		$	35,649		$	173,766		$	(68,178	)	$	—		$	105,588
Depreciation and amortization	$	4,513		$	3,469		$	1,078		$	9,060		$	2,549		—			$	11,609
Total assets	7,622,720			$	2,474,838		55,441			10,152,999			1,014,775			$	—		11,167,774



	For the six months ended June 30, 2015
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	420,649		$	20,490		$	229,790		$	670,929		$	2,358		$	(440	)	$	672,846
Net gain on mortgage loans held for sale	21,850			307,369			—			329,219			1,661			—			330,880
Total revenues	442,499			327,859			229,790			1,000,148			4,019			(440		)	1,003,726
Total expenses	391,936			217,409			173,821			783,166			41,662			—			824,828
Other income (expense):
Interest income	91,560			32,129			—			123,689			6,799			440			130,929
Interest expense	(148,166		)	(29,239		)	(64		)	(177,469		)	(86,042		)	—			(263,511		)
Gain (loss) on interest rate swaps and caps	(717		)	—			—			(717		)	45			—			(672		)
Total other income (expense)	(57,323		)	2,890			(64		)	(54,497		)	(79,198		)	440			(133,254		)
Income (loss) before taxes	$	(6,760	)	$	113,340		$	55,905		$	162,485		$	(116,841	)	$	—		$	45,644
Depreciation and amortization	7,939			5,161			7,314			$	20,414		6,213			—			$	26,627
Total assets	$	14,423,073		$	1,879,284		$	271,056		16,573,413			$	748,090		$	—		17,321,503



	For the six months ended June 30, 2014
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	547,043		$	27,949		$	143,140		$	718,132		$	1,142		$	(746	)	$	718,528
Net gain on mortgage loans held for sale	34,502			267,401			—			301,903			(1,051		)	—			300,852
Total revenues	581,545			295,350			143,140			1,020,035			91			(746		)	1,019,380
Total expenses	353,900			202,134			81,842			637,876			29,968			—			667,844
Other income (expense):
Interest income	40,822			38,848			—			79,670			6,468			746			86,884
Interest expense	(150,813		)	(39,248		)	(144		)	(190,205		)	(105,817		)	—			(296,022		)
Gain (loss) on interest rate swaps and caps	1,361			—			—			1,361			507			—			1,868
Total other income (expense)	(108,630		)	(400		)	(144		)	(109,174		)	(98,842		)	746			(207,270		)
Income (loss) before taxes	$	119,015		$	92,816		$	61,154		$	272,985		$	(128,719	)	$	—		$	144,266
Depreciation and amortization	8,587			6,705			1,822			$	17,114		3,287			—			$	20,401
Total assets	$	7,622,720		$	2,474,838		$	55,441		10,152,999			$	1,014,775		$	—		11,167,774

Guarantor Financial Statement Information

. Guarantor Financial Statement Information

As of June 30, 2015, Nationstar Mortgage LLC and Nationstar Capital Corporation⁽¹⁾(collectively, the Issuer), both wholly-owned subsidiaries of Nationstar, have issued $2.2 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 consolidating financial statements of Nationstar, Nationstar Mortgage LLC and the guarantor subsidiaries for the periods indicated.

In the 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-obliger of the Unsecured Senior Notes.

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET JUNE 30, 2015

	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	535,026		$	921	$	26,992	$	—		$	562,939
Restricted cash	—		197,842			—		190,072		—			387,914
Mortgage servicing rights	—		3,360,322			—		—		—			3,360,322
Advances	—		2,348,110			—		4		—			2,348,114
Reverse mortgage interests	—		6,876,290			—		548,275		—			7,424,565
Mortgage loans held for sale	—		1,827,592			—		78,418		—			1,906,010
Mortgage loans held for investment, net	—		1,176			—		181,154		—			182,330
Property and equipment, net	—		109,584			835		23,736		—			134,155
Derivative financial instruments	—		102,247			—		6,018		—			108,265
Other assets	10,180		(868,494		)	269,432		1,495,771		—			906,889
Investment in subsidiaries	1,746,811		497,118			—		—		(2,243,929		)	—
Total assets	$	1,756,991	$	14,986,813		$	271,188	$	2,550,440	$	(2,243,929	)	$	17,321,503
Liabilities and stockholders’ equity
Unsecured Senior Notes	$	—	$	2,158,392		$	—	$	—	$	—		$	2,158,392
Advance facilities	—		244,158			—		1,582,294		—			1,826,452
Warehouse facilities	—		2,078,260			—		74,655		—			2,152,915
Payables and accrued liabilities	—		1,332,354			1,559		56,294		—			1,390,207
MSR related liabilities - nonrecourse	—		1,287,140			—		—		—			1,287,140
Derivative financial instruments	—		7,859			—		—		—			7,859
Mortgage servicing liabilities	—		47,775			—		—		—			47,775
Payables to Affiliates			1,850,758			864		100,751		(1,952,373		)	—
Other nonrecourse debt	—		6,084,064			—		609,708		—			6,693,772
Total liabilities	—		15,090,760			2,423		2,423,702		(1,952,373		)	15,564,512
Total equity	1,756,991		(103,947		)	268,765		126,738		(291,556		)	1,756,991
Total liabilities and equity	$	1,756,991	$	14,986,813		$	271,188	$	2,550,440	$	(2,243,929	)	$	17,321,503



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2015
	Nationstar		Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	330,574		$	(2,294	)	$	129,221		$	222		$	457,723
Net gain on mortgage loans held for sale	—		152,948			—			10,938			—			163,886
Total Revenues	—		483,522			(2,294		)	140,159			222			621,609
Expenses:
Salaries, wages and benefits	—		141,329			73			56,954			—			198,356
General and administrative	—		193,416			144			49,069			—			242,629
Total expenses	—		334,745			217			106,023			—			440,985
Other income (expense):
Interest income	—		77,930			—			9,447			(222		)	87,155
Interest expense	—		(130,960		)	—			(16,903		)	—			(147,863		)
Gain on interest rate swaps and caps	—		11			—			84			—			95
Gain/(loss) from subsidiaries	74,563		23,165			—			—			(97,728		)	—
Total other income (expense)	74,563		(29,854		)	—			(7,372		)	(97,950		)	(60,613		)
Income/(loss) before taxes	74,563		118,923			(2,511		)	26,764			(97,728		)	120,011
Income tax expense (benefit)	—		42,840			1,323			8			—			44,171
Net income/(loss)	74,563		76,083			(3,834		)	26,756			(97,728		)	75,840
Less: Net gain attributable to noncontrolling interests	—		1,524			—			(243		)	—			1,281
Net income/(loss) excluding noncontrolling interests	$	74,563	$	74,559		$	(3,834	)	$	26,999		$	(97,728	)	$	74,559



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Nationstar		Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	432,753		$	(2,639	)	$	242,732		$	—		$	672,846
Net gain on mortgage loans held for sale	—		309,795			—			21,085			—			330,880
Total Revenues	—		742,548			(2,639		)	263,817			—			1,003,726
Expenses:
Salaries, wages and benefits	—		269,763			427			106,922			—			377,112
General and administrative	—		357,947			194			89,575			—			447,716
Total expenses	—		627,710			621			196,497			—			824,828
Other income (expense):
Interest income	—		114,050			—			16,879			—			130,929
Interest expense	—		(230,827		)	—			(32,684		)	—			(263,511		)
Gain on interest rate swaps and caps	—		45			—			(717		)	—			(672		)
Gain/(loss) from subsidiaries	26,244		46,374			—			—			(72,618		)	—
Total other income (expense)	26,244		(70,358		)	—			(16,522		)	(72,618		)	(133,254		)
Income/(loss) before taxes	26,244		44,480			(3,260		)	50,798			(72,618		)	45,644
Income tax expense (benefit)	—		15,315			1,323			8			—			16,646
Net income/(loss)	26,244		29,165			(4,583		)	50,790			(72,618		)	28,998
Less: Net gain attributable to noncontrolling interests	—		2,921			—			(167		)	—			2,754
Net income/(loss) excluding noncontrolling interests	$	26,244	$	26,244		$	(4,583	)	$	50,957		$	(72,618	)	$	26,244

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015

	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	26,244		$	26,244		$	(4,583	)	$	50,957		$	(72,618	)	$	26,244
Reconciliation of net income to net cash attributable to operating activities:
(Gain)/loss from subsidiaries	(26,244		)	(46,374		)	—			—			72,618			—
Share-based compensation	—			11,313			—			—			—			11,313
Excess tax benefit from share based compensation	—			(1,095		)	—			—			—			(1,095		)
Net (gain)/loss on mortgage loans held for sale	—			(309,795		)	—			(21,085		)	—			(330,880		)
Mortgage loans originated and purchased, net of fees	—			(9,883,868		)	—			—			—			(9,883,868		)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment	—			9,448,896			—			(19,011		)	—			9,429,885
Gain (loss) on swaps and caps	—			(45		)	—			717			—			672
Depreciation and amortization	—			19,314			—			7,313			—			26,627
Amortization/accretion of premiums/discounts	—			(4,574		)	—			(616		)	—			(5,190		)
Fair value changes in excess spread financing	—			38,951			—			—			—			38,951
Fair value changes and amortization/accretion of mortgage servicing rights	—			183,042			—			—			—			183,042
Fair value change in mortgage servicing rights financing liability	—			9,640			—			—			—			9,640
Changes in assets and liabilities:
Advances	—			215,345			—			2,293			—			217,638
Reverse mortgage interests	—			82,558			—			(207,007		)	—			(124,449		)
Other assets				293,481			3,682			(231,526		)	—			65,637
Payables and accrued liabilities	—			37,062			1,534			101			—			38,697
Net cash attributable to operating activities	—			120,095			633			(417,864		)	—			(297,136		)



	Nationstar		Issuer (Parent)			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—		(13,069		)	—		(13,982		)	—		(27,051		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—		(500,041		)	—		—			—		(500,041		)
Purchases of reverse mortgage servicing rights and interests	—		(4,815,684		)	—		—			—		(4,815,684		)
Proceeds from sale of servicer advances	—		—			—		—			—		—
Acquisitions, net	—		—			—		(45,276		)	—		(45,276		)
Net cash attributable to investing activities	—		(5,328,794		)	—		(59,258		)	—		(5,388,052		)
Financing activities:
Transfers to/from restricted cash	—		(20,751		)	—		(81,633		)	—		(102,384		)
Issuance of common stock, net of issuance costs	—		497,761			—		—			—		497,761
Debt financing costs	—		(10,639		)	—		—			—		(10,639		)
Increase (decrease) in advance facilities	—		538,266			—		42,027			—		580,293
Increase (decrease) in warehouse facilities	—		(326,634		)	—		251,303			—		(75,331		)
Proceeds from 2014-1 and 2015-1 HECM Securitization	—		—			—		342,403			—		342,403
Repayment of 2014-1 and 2015-1 HECM Securitization	—		—			—		(63,013		)	—		(63,013		)
Issuance of excess spread financing	—		258,196			—		—			—		258,196
Repayment of excess servicing spread financing	—		(100,228		)	—		—			—		(100,228		)
Increase in participating interest financing in reverse mortgage interests	—		4,633,093			—		—			—		4,633,093
Proceeds from mortgage servicing rights financing	—		—			—		—			—		—
Repayment of nonrecourse debt–Legacy assets	—		—			—		(5,917		)	—		(5,917		)
Excess tax benefit from share-based compensation	—		1,095			—		—			—		1,095
Surrender of shares relating to stock vesting			(6,204		)	—		—			—		(6,204		)
Net cash attributable to financing activities	—		5,463,955			—		485,170			—		5,949,125
Net increase in cash and cash equivalents	—		255,256			633		8,048			—		263,937
Cash and cash equivalents at beginning of period	—		279,770			288		18,944			—		299,002
Cash and cash equivalents at end of period	$	—	$	535,026		$	921	$	26,992		$	—	$	562,939

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014

	Nationstar		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	279,770	$	288	$	18,944	$	—		$	299,002
Restricted cash	—		177,090		—		108,440		—			285,530
Mortgage servicing rights	—		2,961,321		—		—		—			2,961,321
Advances	—		2,544,065		—		2,297		—			2,546,362
Reverse mortgage interests	—		2,111,801		—		341,268		—			2,453,069
Mortgage loans held for sale	—		1,243,700		—		34,231		—			1,277,931
Mortgage loans held for investment, net	—		1,945		—		189,624		—			191,569
Property and equipment, net	—		114,903		835		13,873		—			129,611
Derivative financial instruments	—		87,911		—		3,140		—			91,051
Other assets	16,383		1,069,061		272,654		1,328,078		(1,808,947		)	877,229
Investment in subsidiaries	1,207,895		450,363		—		—		(1,658,258		)	—
Total Assets	$	1,224,278	$	11,041,930	$	273,777	$	2,039,895	$	(3,467,205	)	$	11,112,675
Liabilities and members’ equity
Advance facilities	$	—	$	570,792	$	—	$	1,330,991	$	—		$	1,901,783
Warehouse facilities	—		1,539,994		—		32,628		—			1,572,622
Unsecured Senior Notes	—		2,159,231		—		—		—			2,159,231
Payables and accrued liabilities	—		1,282,895		25		39,158		—			1,322,078
Payables to affiliates	—		1,683,606		894		124,447		(1,808,947		)	—
Derivative financial instruments	—		18,525		—		—		—			18,525
MSR related liabilities - nonrecourse	—		1,080,465		—		—		—			1,080,465
Mortgage servicing liabilities	—		65,382		—		—		—			65,382
Other nonrecourse debt	—		1,433,145		—		335,166		—			1,768,311
Total liabilities	—		9,834,035		919		1,862,390		(1,808,947		)	9,888,397
Total equity	1,224,278		1,207,895		272,858		177,505		(1,658,258		)	1,224,278
Total liabilities and equity	$	1,224,278	$	11,041,930	$	273,777	$	2,039,895	$	(3,467,205	)	$	11,112,675



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	295,419		$	31,127	$	72,892		$	(22,621	)	$	376,817
Net gain on mortgage loans held for sale	—		150,660			—		3			22,253			172,916
Total Revenues	—		446,079			31,127		72,895			(368		)	549,733
Expenses:
Salaries, wages and benefits	—		139,146			1,811		13,095			—			154,052
General and administrative	—		156,752			3,805		32,102			—			192,659
Total expenses	—		295,898			5,616		45,197			—			346,711
Other income / (expense):
Interest income	—		38,145			—		4,428			368			42,941
Interest expense	—		(126,535		)	—		(12,887		)	—			(139,422		)
Gain/(loss) on interest rate swaps and caps	—		242			—		(1,195		)	—			(953		)
Gain / (loss) from subsidiaries	105,396		43,555			—		—			(148,951		)	—
Total other income / (expense)	105,396		(44,593		)	—		(9,654		)	(148,583		)	(97,434		)
Income before taxes	105,396		105,588			25,511		18,044			(148,951		)	105,588
Income tax expense/(benefit)	38,941		—			—		—			—			38,941
Net Income/(loss)	66,455		105,588			25,511		18,044			(148,951		)	66,647
Less: Net gain attributable to noncontrolling interests	—		192			—		—			—			192
Net income/(loss) excluding noncontrolling interests	$	66,455	$	105,396		$	25,511	$	18,044		$	(148,951	)	$	66,455



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	567,348		$	58,555	$	129,698		$	(37,073	)	$	718,528
Net gain on mortgage loans held for sale	—		264,549			—		(24		)	36,327			300,852
Total Revenues	—		831,897			58,555		129,674			(746		)	1,019,380
Expenses:
Salaries, wages and benefits	—		282,504			3,507		24,636			—			310,647
General and administrative	—		290,477			4,696		62,024			—			357,197
Total expenses	—		572,981			8,203		86,660			—			667,844
Other income / (expense):
Interest income	—		77,855			—		8,283			746			86,884
Interest expense	—		(261,013		)	—		(35,009		)	—			(296,022		)
Gain/(loss) on interest rate swaps and caps	—		507			—		1,361			—			1,868
Gain / (loss) from subsidiaries	144,433		68,001			—		—			(212,434		)	—
Total other income / (expense)	144,433		(114,650		)	—		(25,365		)	(211,688		)	(207,270		)
Income before taxes	144,433		144,266			50,352		17,649			(212,434		)	144,266
Income tax expense/(benefit)	53,942		—			—		—			—			53,942
Net Income/(loss)	90,491		144,266			50,352		17,649			(212,434		)	90,324
Less: Net gain attributable to noncontrolling interests	—		(167		)	—		—			—			(167		)
Net income/(loss) excluding noncontrolling interests	$	90,491	$	144,433		$	50,352	$	17,649		$	(212,434	)	$	90,491



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	90,491		$	144,433		$	50,352		$	17,649		$	(212,434	)	$	90,491
Reconciliation of net income to net cash attributable to operating activities:
(Gain)/loss from subsidiaries	(144,433		)	(68,001		)	—			—			212,434			—
Share-based compensation	—			6,868			—			—			—			6,868
Excess tax benefit from share based compensation	—			(2,189		)	—			—			—			(2,189		)
Net (gain)/loss on mortgage loans held for sale	—			(264,549		)	—			24			(36,327		)	(300,852		)
Mortgage loans originated and purchased, net of fees	—			(11,470,908		)	—			—			—			(11,470,908		)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment	—			12,043,737			—			9,274			36,327			12,089,338
Gain (loss) on swaps and caps	—			(507		)	—			(1,361		)	—			(1,868		)
Cash settlement on derivative financial instruments	—			—			—			1,352			—			1,352
Depreciation and amortization	—			18,577			84			1,740			—			20,401
Amortization/accretion of premiums/discounts	—			14,389			—			(1,352		)	—			13,037
Fair value changes in excess spread financing	—			23,767			—			—			—			23,767
Fair value changes and amortization/accretion of mortgage servicing rights	—			123,573			—			—			—			123,573
Fair value change in mortgage servicing rights financing liability	—			(49,257		)	—			—			—			(49,257		)
Changes in assets and liabilities:
Advances	—			(3,232,195		)	—			4,001,949			—			769,754
Reverse mortgage interests	—			(413,478		)	—			—			—			(413,478		)
Other assets	4,756			1,852,546			(48,708		)	(1,585,478		)	—			223,116
Payables and accrued liabilities	53,941			(320,185		)	(4,779		)	10,457			—			(260,566		)
Net cash attributable to operating activities	4,755			(1,593,379		)	(3,051		)	2,454,254			—			862,579



	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(14,175		)	(112		)	(9,391		)	—		(23,678		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(187,803		)	—			—			—		(187,803		)
Proceeds from sale of servicer advances	—			512,527			—			—			—		512,527
Acquisitions, net	—			(18,000		)	—			—			—		(18,000		)
Net cash attributable to investing activities	—			292,549			(112		)	(9,391		)	—		283,046
Financing activities:
Transfers to/from restricted cash	—			94,268			—			147,155			—		241,423
Issuance of common stock, net of issuance costs	—			—			—			—			—		—
Debt financing costs	—			(9,153		)	—			—			—		(9,153		)
Increase (decrease) in advance facilities	—			1,196,768			—			(2,577,561		)	—		(1,380,793		)
Increase (decrease) in warehouse facilities	—			(76,148		)	—			—			—		(76,148		)
Issuance of excess spread financing	—			111,118			—			—			—		111,118
Repayment of excess servicing spread financing	—			(85,257		)	—			—			—		(85,257		)
Increase in participating interest financing in reverse mortgage interests	—			192,355			—			—			—		192,355
Proceeds from mortgage servicing rights financing	—			52,835			—			—			—		52,835
Repayment of nonrecourse debt–Legacy assets	—			—			—			(7,414		)	—		(7,414		)
Excess tax benefit from share-based compensation	—			2,189			—			—			—		2,189
Surrender of shares relating to stock vesting	(4,755		)	—			—			—			—		(4,755		)
Net cash attributable to financing activities	(4,755		)	1,478,975			—			(2,437,820		)	—		(963,600		)
Net increase in cash and cash equivalents	—			178,145			(3,163		)	7,043			—		182,025
Cash and cash equivalents at beginning of period	—			422,268			3,907			15,727			—		441,902
Cash and cash equivalents at end of period	$	—		$	600,413		$	744		$	22,770		$	—	$	623,927

Affiliates of Fortress Investment Group

Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

Newcastle Investment Corp. (Newcastle)

Nationstar is the 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 $0.7 billion and $0.8 billion, as of June 30, 2015 and December 31, 2014, respectively. For the three months ended June 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $0.9 million and $1.0 million, respectively. For the six months ended June 30, 2015 and 2014, Nationstar received servicing fees and other performance incentive fees of $1.8 million and $2.1 million, respectively.

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 basic servicing fee per loan. Nationstar retains the fixed base servicing fee, all ancillary revenues associated with servicing such MSRs and the retained portion of the excess 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. Furthermore, 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.

In addition, during the six months ended June 30, 2015, Nationstar has paid $29.1 million to New Residential for delinquent service fees in advance of the contractual due date. This amount will be ultimately netted against future remittances as related to service fee amounts. This amount is recorded as an offset to outstanding excess spread financing in our financial statements.

The fair value on the outstanding liability related to these agreements was $1.2 billion and $1.0 billion at June 30, 2015 and December 31, 2014, respectively.

Mortgage Servicing Rights Financing Liability

In December 2013, Nationstar entered into a Master Servicing Rights Purchase Agreement and three related Sale Supplements (collectively, the Sale Agreement) with a joint venture entity (Purchaser) capitalized by New Residential in which New Residential and/or certain third party co-investors own an interest. Under the Sale Agreement, Nationstar sold to the Purchaser the right to repayment on certain outstanding servicer advances outstanding on non-Agency mortgage loans. In addition, Nationstar also sold the right to receive the base fee component on the related mortgage servicing rights, in exchange for the Purchaser remitting a portion of the base fee to Nationstar in exchange for Nationstar continuing to service the mortgage loans. Nationstar will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. Once the servicing is transferred under any servicing agreement to the Purchaser, Nationstar will subservice the applicable mortgage loans. While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of mortgage servicing rights, the Company accounts for the transactions as financings.

The fair value of the outstanding liability related to the Sale Agreement was $59.1 million and $49.4 million at June 30, 2015 and December 31, 2014, respectively.

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. The terms and fees of this servicing arrangement generally conform with industry standards for stand-alone residential mortgage loan servicing. For the three and six months ended June 30, 2015, Nationstar recognized revenue of $0.4 million and $2.1 million, respectively, related to these servicing arrangements.

Subsequent Events

We evaluated subsequent events through the issuance of these consolidated financial statements and determined that no other material subsequent events have occurred.

Nature of Business and Basis of Presentation (Policies)

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 not 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 have been eliminated. 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.

Basis of Accounting

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 consolidated interim financial statements of Nationstar have been prepared in accordance with generally accepted accounting principles 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 accounting principles generally accepted in the United States (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 filed on February 27, 2015. 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.

Mortgage Servicing Rights (Tables)

Schedule of Servicing Assets at Fair Value

The following table provides a breakdown of the total credit and interest sensitive UPBs for Nationstar's owned MSRs.



	June 30, 2015				December 31, 2014
	UPB		Fair Value		UPB		Fair Value
Credit Sensitive	$	247,720,305	$	2,171,954	241,769,601		1,919,290
Interest Sensitive	105,686,989		1,178,344		91,843,044		1,030,449
	$	353,407,294	$	3,350,298	$	333,612,645	$	2,949,739

The activity of MSRs carried at fair value is as follows for the dates indicated:



	For the six months ended June 30,
	2015			2014
Fair value at the beginning of the period	2,949,739			2,488,283
Additions:
Servicing resulting from transfers of financial assets	105,506			120,212
Purchases of servicing assets	494,145			193,677
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	18,347			24,821
Other changes in fair value	(217,439		)	(148,859		)
Fair value at the end of the period	$	3,350,298		$	2,678,134



MSRs and Related Liabilities	June 30, 2015		December 31, 2014
MSRs - Fair Value	$	3,350,298	$	2,949,739
MSRs - LOCOM	10,024		11,582
Mortgage Servicing Rights	3,360,322		2,961,321

Mortgage Servicing Liabilities	47,775		65,382

Excess spread financing - fair value	1,228,070		1,031,035
Mortgage servicing rights financing liability - fair value	59,070		49,430
MSR Related Liabilities (nonrecourse)	$	1,287,140	$	1,080,465

Schedule of Assumptions for Fair Value of Mortgage Service Rights

The weighted average assumptions used in Nationstar's valuation of Mortgage Servicing Rights Financing were as follows:



	June 30, 2015		December 31, 2014
Advance financing rates	2.79	%	2.79	%
Annual advance recovery rates	24.67	%	27.55	%

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
June 30, 2015
Low	7.2%	3.9 years	8.5%	6.8%
High	17.3%	8.6 years	14.2%	30.3%
December 31, 2014
Low	6.2%	4.0 years	8.5%	6.7%
High	19.4%	7.1 years	14.2%	31.3%

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:



Credit Sensitive	June 30, 2015		December 31, 2014
Discount rate	11.66	%	11.96	%
Total prepayment speeds	17.05	%	18.58	%
Expected weighted-average life	5.91 years		5.39 years
Interest Sensitive	June 30, 2015		December 31, 2014
Discount rate	9.10	%	9.09	%
Total prepayment speeds	11.68	%	11.27	%
Expected weighted-average life	6.38 years		6.49 years

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
June 30, 2015
Excess spread financing	$	40,932	$	86,191	$	33,607	$	71,308
December 31, 2014
Excess spread financing	$	36,632	$	75,964	$	33,618	$	70,379

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 June 30, 2015 and December 31, 2014:



	Discount Rate						Total Prepayment Speeds
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change
June 30, 2015
Mortgage servicing rights	$	(135,060	)	$	(247,779	)	$	(130,260	)	$	(249,466	)
December 31, 2014
Mortgage servicing rights	$	(110,900	)	$	(207,295	)	$	(112,603	)	$	(199,078	)

Activity of MSRs at Amortized Cost

The activity of MSRs carried at amortized cost is as follows for the dates indicated:



	For the six months ended June 30,
	2015						2014
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	11,582		$	65,382		$	14,879		$	82,521
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			—			—
Deductions:
Amortization/Accretion	(1,558		)	(17,607		)	(1,564		)	(2,029		)
Balance at end of the period	$	10,024		$	47,775		$	13,315		$	80,492
Fair value at end of period	$	31,636		$	39,042		$	36,997		$	62,680

Advances (Tables)

Schedule of Accounts Receivable



	June 30, 2015		December 31, 2014

Advances	$	2,348,114	$	2,546,362

Reverse Mortgage Interests (Tables)

Reverse Mortgage Interest



	June 30, 2015			December 31, 2014
Participating interests	$	6,015,287		$	1,363,225
Other interests securitized	548,276			341,268
Unsecuritized interests	874,388			752,801
Allowance for losses - reverse mortgage interests	(13,386		)	(4,225		)
Total reverse mortgage interests	$	7,424,565		$	2,453,069

Mortgage Loans Held for Sale and Investment (Tables)

Schedule of Mortgage Loans Held-for-Sale

Mortgage loans held for sale consist of the following for the dates indicated:



	June 30, 2015		December 31, 2014
Mortgage loans held for sale – unpaid principal balance	$	1,854,736	$	1,218,596
Mark-to-market adjustment⁽¹⁾	51,274		59,335
Total mortgage loans held for sale	$	1,906,010	$	1,277,931

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

The total UPB of mortgage loans held for sale on nonaccrual status was as follows for the dates indicated:



	June 30, 2015				December 31, 2014
Mortgage loans held for sale - unpaid principal balance	UPB		Fair Value		UPB		Fair Value
Nonaccrual	$	27,381	$	24,812	$	31,968	$	26,022

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	June 30, 2015		December 31, 2014
Foreclosure	$	15,706	$	17,493

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	June 30, 2015		December 31, 2014
Foreclosure	$	47,688	$	52,769

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:



	For the six months ended
	June 30, 2015			June 30, 2014
Mortgage loans held for sale – beginning balance	$	1,277,931		$	2,603,380
Mortgage loans originated and purchased, net of fees	9,854,949			11,470,908
Proceeds on sale of and payments of mortgage loans held for sale	(9,420,331		)	(12,089,338		)
Gain on Sale of Mortgage Loans⁽¹⁾	196,727			241,971
Transfer of mortgage loans held for sale to held for investment or other assets	(3,266		)	(2,100		)
Mortgage loans held for sale – ending balance	$	1,906,010		$	2,224,821

Schedule of Loans Held for Investment

Mortgage loans held for investment, net as of the dates indicated include:



	June 30, 2015			December 31, 2014
Mortgage loans held for investment, net – unpaid principal balance	$	263,581		$	276,820
Transfer discount:
Accretable	(13,825		)	(15,503		)
Non-accretable	(63,877		)	(66,217		)
Allowance for loan losses	(3,549		)	(3,531		)
Total mortgage loans held for investment, net	$	182,330		$	191,569

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:



	For the six months ended June 30, 2015			For the year ended December 31, 2014
Accretable Yield
Balance at the beginning of the period	$	15,503		$	17,362
Accretion	(1,406		)	(2,955		)
Reclassifications from (to) nonaccretable discount	(272		)	1,096
Balance at the end of the period	$	13,825		$	15,503

Other Assets (Tables)

Schedule of Other Assets

Other assets consisted of the following:



	June 30, 2015		December 31, 2014
Receivables from trusts, agencies and prior servicers, net	$	389,583	$	386,166
Accrued revenues	161,110		154,436
Loans subject to repurchase right from Ginnie Mae	133,928		131,592
Goodwill	68,479		54,701
Deferred financing costs	49,344		46,986
Intangible assets	46,633		19,622
Prepaid expenses	12,559		9,837
Accrued interest	1,644		1,890
Real estate owned (REO), net	1,713		1,625
Other	41,896		70,374
Total other assets	$	906,889	$	877,229

Derivative Financial Instruments (Tables)

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)
For the six months ended June 30, 2015
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	1,000	$	37		$	41
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,998,234		81,205			(6,660		)
Forward MBS trades	2015	3,138,409		22,864			22,580
LPCs	2015	313,444		4,196			2,197
Interest rate and caps	2015-2016	1,200,000		—			—
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	43,129		206			(199		)
Forward MBS trades	2015	1,386,757		3,691			14,669
LPCs	2015	559,260		3,787			(3,739		)
Interest rate swaps and caps	2017	29,958		57			(672		)
Eurodollar futures	2015-2017	120,000		118			(111		)

For the year ended December 31, 2014
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	1,666	$	(4	)	$	(11	)
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,556,169		87,902			774
Forward MBS trades	2015	319,112		284			(31,982		)
LPCs	2015	287,089		1,999			1,206
Interest rate swaps and caps	2017	124,650		865			(1,673		)
Eurodollar futures	2015-2017	40,000		1			1
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	865		7			2,691
Interest rate swaps on ABS debt	2015-2017	105,681		103			731
Forward MBS trades	2015	2,958,700		18,360			(15,055		)
LPCs	2015	30,494		48			1,641
Eurodollar futures	2015-2017	80,000		7			(7		)

Indebtedness (Tables)

Schedule of Notes Payable

Notes Payable



						June 30, 2015				December 31, 2014
	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral pledged
Advance Facilities
MBS advance financing facility	LIBOR+2.50% to 4.00%	March 2016	Servicing advance receivables	$	130,000	$	63,770	$	69,505	$	363,014	$	418,126
Securities repurchase facility (2011)	LIBOR +3.50%	90 day revolving	Nonrecourse debt - Legacy Assets	—		35,058		55,603		34,613		55,603
Nationstar agency advance financing facility ⁽¹⁾	LIBOR+1.20% to 3.75%	October 2015	Servicing advance receivables	1,300,000		1,061,500		1,195,152		805,706		885,115
MBS advance financing facility (2012)	LIBOR+5.00%	April 2016	Servicing advance receivables	50,000		45,510		54,441		42,472		50,758
Nationstar Mortgage Advance Receivable Trust	LIBOR+1.15% to 5.30%	June 2018	Servicing advance receivables	500,000		411,563		475,978		419,170		471,243
MBS servicer advance facility (2014)	LIBOR+3.50%	September 2015	Servicing advance receivables	100,000		99,820		166,954		79,084		138,010
Nationstar servicer advance receivables trust 2014 - BC	LIBOR+1.50% to 3.00%	November 2015	Servicing advance receivables	200,000		109,231		120,719		106,115		121,030
Securities repurchase facility (2014)	LIBOR+1.50% to 2.00%	November 2017	Securities	—		—		—		51,609		74,525
						$	1,826,452	$	2,138,352	$	1,901,783	$	2,214,410

						June 30, 2015				December 31, 2014
	Interest Rate	Maturity Date	Collateral	Capacity Amount		Outstanding		Collateral Pledged		Outstanding		Collateral pledged
Warehouse Facilities
$1.3 billion warehouse facility	LIBOR+2.00% to 2.875%	October 2015	Mortgage loans or MBS	$	1,300,000	$	710,840	$	757,426	$	663,167	$	697,257
$1.0 billion warehouse facility	LIBOR+1.75% to 3.25%	June 2016	Mortgage loans or MBS	1,000,000		619,540		675,637		307,294		320,285
$500 million warehouse facility	LIBOR+1.75% to 2.75%	September 2015	Mortgage loans or MBS	500,000		299,800		307,209		176,194		179,994
$500 million warehouse facility	LIBOR+ 1.50% to 2.00%	July 2015	Mortgage loans or MBS	500,000		292,608		310,047		183,290		192,990
$350 million warehouse facility	LIBOR+2.20% to 4.50%	March 2016	Mortgage loans or MBS	350,000		115,443		124,151		210,049		223,849
$200 million warehouse facility	LIBOR+1.50%	April 2016	Mortgage loans or MBS	200,000		40,029		42,560		—		—
$75 million warehouse facility (HCM) ⁽²⁾	LIBOR+ 2.25% to 2.875%	October 2015	Mortgage loans or MBS	75,000		49,337		51,944		23,949		29,324
$50 million warehouse facility (HCM)	LIBOR + 2.50% to 2.75%	November 2015	Mortgage loans or MBS	50,000		25,318		26,381		8,679		9,044
ASAP+ facility	LIBOR+1.50%	Up to 45 days	GSE mortgage loans or GSE MBS	—		—		—		—		—
						$	2,152,915	$	2,295,355	$	1,572,622	$	1,652,743

Mortgage loans						$	1,735,473	$	1,842,445	$	1,196,956	$	1,241.043
Reverse mortgage interests						$	417,442	$	452,910	$	375,666	$	411,700

⁽¹⁾ This facility has both variable funding notes (VFN) and term notes. Nationstar issued $300.0 million in term notes to institutional investors of which $100.0 million remains outstanding. The notes have a weighted average interest rate of 2.20% and a weighted average term of 5 years.

⁽²⁾ 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:



	June 30, 2015		December 31, 2014
Participating interest financing	$	6,084,064	$	1,433,145
2014-1 HECM securitization	275,138		259,328
2015-1 HECM securitization	263,901		—
Nonrecourse debt - Legacy Assets	70,669		75,838
Total	$	6,693,772	$	1,768,311

Schedule of Unsecured Senior Notes

A summary of the balances of Unsecured Senior Notes is presented below:



	June 30, 2015		December 31, 2014
$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	378,153		378,555
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,495		400,541
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021	604,745		605,135
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022	300,000		300,000
Total	$	2,158,392	$	2,159,231

Schedule of Maturities of Long-term Debt

As of June 30, 2015, the expected maturities of Nationstar's Unsecured Senior Notes based on contractual maturities are as follows:



Year	Amount
2015	$	—
2016	—
2017	—
2018	475,000
2019	375,000
Thereafter	1,300,000
Total	$	2,150,000

Accounts Payable (Tables)

Schedule of Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following:



	June 30, 2015		December 31, 2014
Payables to servicing and subservicing investors	$	416,383	$	329,306
Accrued interest	60,550		59,708
Loans subject to repurchase from Ginnie Mae	133,928		131,592
Taxes	101,810		96,237
Payable to insurance carriers and insurance cancellation reserves	104,749		163,381
Accrued bonus and payroll	74,923		85,366
Repurchase reserves	28,831		29,165
MSR purchases payable including advances	23,098		45,697
Other	445,935		381,626
Total payables and accrued liabilities	$	1,390,207	$	1,322,078

Variable Interest Entities and Securitizations (Tables)

Schedule of Assets and Liabilities of VIEs Included in Financial Statements

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:



	June 30, 2015		December 31, 2014
Total collateral balances	$	3,027,803	$	3,258,472
Total certificate balances	3,062,887		3,297,256

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:



	June 30, 2015				December 31, 2014
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
ASSETS
Restricted cash	$	169,827	$	11,956	$	90,068	$	15,578
Reverse mortgage interests	—		6,563,553		—		1,642,789
Advances	1,791,849		—		1,477,388		—
Mortgage loans held for investment, net	181,154		—		189,456		—
Derivative financial instruments	—		—		865		—
Other assets	2,726		—		2,678		—
Total Assets	$	2,145,556	$	6,575,509	$	1,760,455	$	1,658,367
LIABILITIES
Advance facilities	$	1,582,294	$	—	$	1,330,991	$	—
Payables and accrued liabilities	1,799		377		1,596		186
Nonrecourse debt–Legacy Assets	70,669		—		75,838		—
2014-1 HECM Securitization	—		275,138		—		259,328
2015-1 HECM Securitization	—		263,901		—		—
Participating interest financing	—		6,084,064		—		1,433,145
Total Liabilities	$	1,654,762	$	6,623,480	$	1,408,425	$	1,692,659

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	June 30, 2015		June 30, 2014
Unconsolidated securitization trusts	$	730,235	$	936,178



	For the three months ended June 30,				For the six months ended June 30,
Credit Losses	2015		2014		2015		2014
Unconsolidated securitization trusts	$	57,759	$	80,890	$	115,220	$	147,432

Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows:



	For the three months ended June 30,								For the six months ended June 30,
	2015				2014				2015				2014
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Unconsolidated securitization trusts	$	6,491	$	—	$	10,408	$	—	$	12,864	$	—	$	18,186	$	—

Income Taxes (Tables)

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income tax expense was as follows:



	For the three months ended June 30,						For the six months ended June 30,
	2015			2014			2015			2014
Tax expense	$	44,171		$	38,941		$	16,646		$	53,942

Effective tax rate	36.8		%	36.9		%	36.5		%	37.4		%

Fair Value Measurements (Tables)

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:



			June 30, 2015
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale⁽¹⁾	$	1,906,010	$	—	$	1,906,010	$	—
Mortgage servicing rights⁽¹⁾	3,350,298		—		—		3,350,298
Derivative financial instruments:
IRLCs	81,205		—		81,205		—
Forward MBS trades	22,864		—		22,864		—
LPCs	4,196		—		4,196		—
Interest rate swaps and caps	—		—		—		—
Total assets	$	5,364,573	$	—	$	2,014,275	$	3,350,298
LIABILITIES
Derivative financial instruments
IRLCs	206		—		206		—
Interest rate swaps and caps	57		—		57		—
Forward MBS trades	3,691		—		3,691		—
LPCs	3,787		—		3,787		—
Eurodollar futures	118		—		118		—
Mortgage servicing rights financing	59,070		—		—		59,070
Excess spread financing	1,228,070		—		—		1,228,070
Total liabilities	$	1,294,999	$	—	$	7,859	$	1,287,140

			December 31, 2014
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale⁽¹⁾	$	1,277,931	$	—	$	1,277,931	$	—
Mortgage servicing rights⁽¹⁾	2,949,739		—		—		2,949,739
Derivative financial instruments:
IRLCs	87,902		—		87,902		—
Forward MBS trades	284		—		284		—
LPCs	1,999		—		1,999		—
Interest rate swaps and caps	865		—		865		—
Eurodollar futures	1		—		1		—
Total assets	$	4,318,721	$	—	$	1,368,982	$	2,949,739
LIABILITIES
Derivative financial instruments
IRLCs	$	7	$	—	$	7	$	—
Interest rate swaps and caps	103		—		103		—
Forward MBS trades	18,360		—		18,360		—
LPCs	48		—		48		—
Eurodollar futures	7		—		7		—
Mortgage servicing rights financing	49,430		—		—		49,430
Excess spread financing	1,031,035		—		—		1,031,035
Total liabilities	$	1,098,990	$	—	$	18,525	$	1,080,465


⁽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
For the six months ended June 30, 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	(199,092		)	38,951			9,640
Included in other comprehensive income	—			—			—
Purchases, issuances, sales and settlements
Purchases	494,145			—			—
Issuances	105,506			258,196			—
Sales	—			—			—
Settlements	—			(100,112		)	—
Ending balance	$	3,350,298		$	1,228,070		$	59,070



	ASSETS			LIABILITIES
For the year ended December 31, 2014	Mortgage servicing rights			Excess spread financing			Mortgage servicing rights financing
Beginning balance	$	2,488,283		$	986,410		$	29,874
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in earnings	(247,379		)	57,554			(33,279		)
Included in other comprehensive income	—			—			—
Purchases, issuances, sales and settlements
Purchases	470,543			—			—
Issuances	238,292			171,317			52,835
Sales	—			—			—
Settlements	—			(184,246		)	—
Ending balance	$	2,949,739		$	1,031,035		$	49,430

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.



	June 30, 2015
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	562,939	$	562,939	$	—	$	—
Restricted cash	387,914		387,914		—		—
Mortgage loans held for sale	1,906,010		—		1,906,010		—
Mortgage loans held for investment, net	182,330		—		—		181,820
Reverse mortgage interests	7,424,565		—		—		7,453,656
Derivative financial instruments	108,265		—		108,265		—
Financial liabilities:
Unsecured Senior Notes	2,158,392		2,127,684		—		—
Advance Facilities	1,826,452		—		1,826,452		—
Warehouse Facilities	2,152,915		—		2,152,915		—
Derivative financial instruments	7,859		—		7,859		—
Excess spread financing	1,228,070		—		—		1,228,070
Mortgage servicing rights financing liability	59,070		—		—		59,070
Nonrecourse debt - Legacy assets	70,669		—		—		81,335
Participating interest financing	6,084,064		—		6,073,412		—
2014-1 HECM Securitization	275,138		—		—		287,801
2015-1 HECM Securitization	263,901		—		—		256,988

	December 31, 2014
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	299,002	$	299,002	$	—	$	—
Restricted cash	285,530		285,530		—		—
Mortgage loans held for sale	1,277,931		—		1,277,931		—
Mortgage loans held for investment, net	191,569		—		—		192,865
Reverse mortgage interests	2,453,069		—		—		2,432,735
Derivative financial instruments	91,051		—		91,051		—
Financial liabilities:
Unsecured Senior Notes	2,159,231		2,057,038		—		—
Advance Facilities	1,901,783		—		1,901,783		—
Warehouse Facilities	1,572,622		—		1,572,622		—
Derivative financial instruments	18,525		—		18,525		—
Excess spread financing	1,031,035		—		—		1,031,035
Mortgage servicing rights financing liability	49,430		—		—		49,430
Nonrecourse debt - Legacy assets	75,838		—		—		86,570
Participating interest financing	1,433,145		—		1,423,291		—
2014-1 HECM Securitization	259,328		—		—		259,328

Business Segment Reporting (Tables)

Schedule of Segment Reporting Information

The following tables are a presentation of financial information by segment for the periods indicated:



	For the three months ended June 30, 2015
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	320,654		$	13,428		$	122,004		$	456,086		$	1,855		$	(218	)	$	457,723
Net gain on mortgage loans held for sale	7,837			156,085			—			163,922			(36		)	—			163,886
Total revenues	328,491			169,513			122,004			620,008			1,819			(218		)	621,609
Total expenses	209,540			117,159			94,433			421,132			19,853			—			440,985
Other income (expense):
Interest income	66,922			16,862			—			83,784			3,153			218			87,155
Interest expense	(90,191		)	(14,854		)	(29		)	(105,074		)	(42,789		)	—			(147,863		)
Gain (loss) on interest rate swaps and caps	85			—			—			85			11			—			95
Total other income (expense)	(23,184		)	2,008			(29		)	(21,205		)	(39,625		)	218			(60,613		)
Income (loss) before taxes	$	95,767		$	54,362		$	27,542		$	177,671		$	(57,659	)	$	—		$	120,011
Depreciation and amortization	$	4,420		$	3,006		$	3,950		$	11,376		$	2,397		$	—		$	13,773
Total assets	14,423,073			1,879,284			271,056			16,573,413			748,090			—			17,321,503



	For the three months ended June 30, 2014
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	283,645		$	13,901		$	79,492		$	377,038		$	147		$	(368	)	$	376,817
Net gain on mortgage loans held for sale	22,094			151,201			—			173,295			(379		)	—			172,916
Total revenues	305,739			165,102			79,492			550,333			(232		)	(368		)	549,733
Total expenses	187,447			97,084			43,753			328,284			18,427			—			346,711
Other income (expense):
Interest income	22,158			17,327			—			39,485			3,088			368			42,941
Interest expense	(70,014		)	(16,711		)	(90		)	(86,815		)	(52,607		)	—			(139,422		)
Gain (loss) on interest rate swaps and caps	(953		)	—			—			(953		)	—			—			(953		)
Total other income (expense)	(48,809		)	616			(90		)	(48,283		)	(49,519		)	368			(97,434		)
Income (loss) before taxes	$	69,483		$	68,634		$	35,649		$	173,766		$	(68,178	)	$	—		$	105,588
Depreciation and amortization	$	4,513		$	3,469		$	1,078		$	9,060		$	2,549		—			$	11,609
Total assets	7,622,720			$	2,474,838		55,441			10,152,999			1,014,775			$	—		11,167,774



	For the six months ended June 30, 2015
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	420,649		$	20,490		$	229,790		$	670,929		$	2,358		$	(440	)	$	672,846
Net gain on mortgage loans held for sale	21,850			307,369			—			329,219			1,661			—			330,880
Total revenues	442,499			327,859			229,790			1,000,148			4,019			(440		)	1,003,726
Total expenses	391,936			217,409			173,821			783,166			41,662			—			824,828
Other income (expense):
Interest income	91,560			32,129			—			123,689			6,799			440			130,929
Interest expense	(148,166		)	(29,239		)	(64		)	(177,469		)	(86,042		)	—			(263,511		)
Gain (loss) on interest rate swaps and caps	(717		)	—			—			(717		)	45			—			(672		)
Total other income (expense)	(57,323		)	2,890			(64		)	(54,497		)	(79,198		)	440			(133,254		)
Income (loss) before taxes	$	(6,760	)	$	113,340		$	55,905		$	162,485		$	(116,841	)	$	—		$	45,644
Depreciation and amortization	7,939			5,161			7,314			$	20,414		6,213			—			$	26,627
Total assets	$	14,423,073		$	1,879,284		$	271,056		16,573,413			$	748,090		$	—		17,321,503



	For the six months ended June 30, 2014
	Servicing			Originations			Xome			Total Operating Segments			Corporate and Other			Eliminations			Consolidated
REVENUES:
Service related	$	547,043		$	27,949		$	143,140		$	718,132		$	1,142		$	(746	)	$	718,528
Net gain on mortgage loans held for sale	34,502			267,401			—			301,903			(1,051		)	—			300,852
Total revenues	581,545			295,350			143,140			1,020,035			91			(746		)	1,019,380
Total expenses	353,900			202,134			81,842			637,876			29,968			—			667,844
Other income (expense):
Interest income	40,822			38,848			—			79,670			6,468			746			86,884
Interest expense	(150,813		)	(39,248		)	(144		)	(190,205		)	(105,817		)	—			(296,022		)
Gain (loss) on interest rate swaps and caps	1,361			—			—			1,361			507			—			1,868
Total other income (expense)	(108,630		)	(400		)	(144		)	(109,174		)	(98,842		)	746			(207,270		)
Income (loss) before taxes	$	119,015		$	92,816		$	61,154		$	272,985		$	(128,719	)	$	—		$	144,266
Depreciation and amortization	8,587			6,705			1,822			$	17,114		3,287			—			$	20,401
Total assets	$	7,622,720		$	2,474,838		$	55,441		10,152,999			$	1,014,775		$	—		11,167,774

Guarantor Financial Statement Information (Tables)

Consolidating Balance Sheets

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2014

	Nationstar		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	279,770	$	288	$	18,944	$	—		$	299,002
Restricted cash	—		177,090		—		108,440		—			285,530
Mortgage servicing rights	—		2,961,321		—		—		—			2,961,321
Advances	—		2,544,065		—		2,297		—			2,546,362
Reverse mortgage interests	—		2,111,801		—		341,268		—			2,453,069
Mortgage loans held for sale	—		1,243,700		—		34,231		—			1,277,931
Mortgage loans held for investment, net	—		1,945		—		189,624		—			191,569
Property and equipment, net	—		114,903		835		13,873		—			129,611
Derivative financial instruments	—		87,911		—		3,140		—			91,051
Other assets	16,383		1,069,061		272,654		1,328,078		(1,808,947		)	877,229
Investment in subsidiaries	1,207,895		450,363		—		—		(1,658,258		)	—
Total Assets	$	1,224,278	$	11,041,930	$	273,777	$	2,039,895	$	(3,467,205	)	$	11,112,675
Liabilities and members’ equity
Advance facilities	$	—	$	570,792	$	—	$	1,330,991	$	—		$	1,901,783
Warehouse facilities	—		1,539,994		—		32,628		—			1,572,622
Unsecured Senior Notes	—		2,159,231		—		—		—			2,159,231
Payables and accrued liabilities	—		1,282,895		25		39,158		—			1,322,078
Payables to affiliates	—		1,683,606		894		124,447		(1,808,947		)	—
Derivative financial instruments	—		18,525		—		—		—			18,525
MSR related liabilities - nonrecourse	—		1,080,465		—		—		—			1,080,465
Mortgage servicing liabilities	—		65,382		—		—		—			65,382
Other nonrecourse debt	—		1,433,145		—		335,166		—			1,768,311
Total liabilities	—		9,834,035		919		1,862,390		(1,808,947		)	9,888,397
Total equity	1,224,278		1,207,895		272,858		177,505		(1,658,258		)	1,224,278
Total liabilities and equity	$	1,224,278	$	11,041,930	$	273,777	$	2,039,895	$	(3,467,205	)	$	11,112,675

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET JUNE 30, 2015

	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	535,026		$	921	$	26,992	$	—		$	562,939
Restricted cash	—		197,842			—		190,072		—			387,914
Mortgage servicing rights	—		3,360,322			—		—		—			3,360,322
Advances	—		2,348,110			—		4		—			2,348,114
Reverse mortgage interests	—		6,876,290			—		548,275		—			7,424,565
Mortgage loans held for sale	—		1,827,592			—		78,418		—			1,906,010
Mortgage loans held for investment, net	—		1,176			—		181,154		—			182,330
Property and equipment, net	—		109,584			835		23,736		—			134,155
Derivative financial instruments	—		102,247			—		6,018		—			108,265
Other assets	10,180		(868,494		)	269,432		1,495,771		—			906,889
Investment in subsidiaries	1,746,811		497,118			—		—		(2,243,929		)	—
Total assets	$	1,756,991	$	14,986,813		$	271,188	$	2,550,440	$	(2,243,929	)	$	17,321,503
Liabilities and stockholders’ equity
Unsecured Senior Notes	$	—	$	2,158,392		$	—	$	—	$	—		$	2,158,392
Advance facilities	—		244,158			—		1,582,294		—			1,826,452
Warehouse facilities	—		2,078,260			—		74,655		—			2,152,915
Payables and accrued liabilities	—		1,332,354			1,559		56,294		—			1,390,207
MSR related liabilities - nonrecourse	—		1,287,140			—		—		—			1,287,140
Derivative financial instruments	—		7,859			—		—		—			7,859
Mortgage servicing liabilities	—		47,775			—		—		—			47,775
Payables to Affiliates			1,850,758			864		100,751		(1,952,373		)	—
Other nonrecourse debt	—		6,084,064			—		609,708		—			6,693,772
Total liabilities	—		15,090,760			2,423		2,423,702		(1,952,373		)	15,564,512
Total equity	1,756,991		(103,947		)	268,765		126,738		(291,556		)	1,756,991
Total liabilities and equity	$	1,756,991	$	14,986,813		$	271,188	$	2,550,440	$	(2,243,929	)	$	17,321,503

Consolidating Statements of Operations



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2014
	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	295,419		$	31,127	$	72,892		$	(22,621	)	$	376,817
Net gain on mortgage loans held for sale	—		150,660			—		3			22,253			172,916
Total Revenues	—		446,079			31,127		72,895			(368		)	549,733
Expenses:
Salaries, wages and benefits	—		139,146			1,811		13,095			—			154,052
General and administrative	—		156,752			3,805		32,102			—			192,659
Total expenses	—		295,898			5,616		45,197			—			346,711
Other income / (expense):
Interest income	—		38,145			—		4,428			368			42,941
Interest expense	—		(126,535		)	—		(12,887		)	—			(139,422		)
Gain/(loss) on interest rate swaps and caps	—		242			—		(1,195		)	—			(953		)
Gain / (loss) from subsidiaries	105,396		43,555			—		—			(148,951		)	—
Total other income / (expense)	105,396		(44,593		)	—		(9,654		)	(148,583		)	(97,434		)
Income before taxes	105,396		105,588			25,511		18,044			(148,951		)	105,588
Income tax expense/(benefit)	38,941		—			—		—			—			38,941
Net Income/(loss)	66,455		105,588			25,511		18,044			(148,951		)	66,647
Less: Net gain attributable to noncontrolling interests	—		192			—		—			—			192
Net income/(loss) excluding noncontrolling interests	$	66,455	$	105,396		$	25,511	$	18,044		$	(148,951	)	$	66,455



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Nationstar		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	567,348		$	58,555	$	129,698		$	(37,073	)	$	718,528
Net gain on mortgage loans held for sale	—		264,549			—		(24		)	36,327			300,852
Total Revenues	—		831,897			58,555		129,674			(746		)	1,019,380
Expenses:
Salaries, wages and benefits	—		282,504			3,507		24,636			—			310,647
General and administrative	—		290,477			4,696		62,024			—			357,197
Total expenses	—		572,981			8,203		86,660			—			667,844
Other income / (expense):
Interest income	—		77,855			—		8,283			746			86,884
Interest expense	—		(261,013		)	—		(35,009		)	—			(296,022		)
Gain/(loss) on interest rate swaps and caps	—		507			—		1,361			—			1,868
Gain / (loss) from subsidiaries	144,433		68,001			—		—			(212,434		)	—
Total other income / (expense)	144,433		(114,650		)	—		(25,365		)	(211,688		)	(207,270		)
Income before taxes	144,433		144,266			50,352		17,649			(212,434		)	144,266
Income tax expense/(benefit)	53,942		—			—		—			—			53,942
Net Income/(loss)	90,491		144,266			50,352		17,649			(212,434		)	90,324
Less: Net gain attributable to noncontrolling interests	—		(167		)	—		—			—			(167		)
Net income/(loss) excluding noncontrolling interests	$	90,491	$	144,433		$	50,352	$	17,649		$	(212,434	)	$	90,491



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE THREE MONTHS ENDED JUNE 30, 2015
	Nationstar		Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	330,574		$	(2,294	)	$	129,221		$	222		$	457,723
Net gain on mortgage loans held for sale	—		152,948			—			10,938			—			163,886
Total Revenues	—		483,522			(2,294		)	140,159			222			621,609
Expenses:
Salaries, wages and benefits	—		141,329			73			56,954			—			198,356
General and administrative	—		193,416			144			49,069			—			242,629
Total expenses	—		334,745			217			106,023			—			440,985
Other income (expense):
Interest income	—		77,930			—			9,447			(222		)	87,155
Interest expense	—		(130,960		)	—			(16,903		)	—			(147,863		)
Gain on interest rate swaps and caps	—		11			—			84			—			95
Gain/(loss) from subsidiaries	74,563		23,165			—			—			(97,728		)	—
Total other income (expense)	74,563		(29,854		)	—			(7,372		)	(97,950		)	(60,613		)
Income/(loss) before taxes	74,563		118,923			(2,511		)	26,764			(97,728		)	120,011
Income tax expense (benefit)	—		42,840			1,323			8			—			44,171
Net income/(loss)	74,563		76,083			(3,834		)	26,756			(97,728		)	75,840
Less: Net gain attributable to noncontrolling interests	—		1,524			—			(243		)	—			1,281
Net income/(loss) excluding noncontrolling interests	$	74,563	$	74,559		$	(3,834	)	$	26,999		$	(97,728	)	$	74,559



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF INCOME (LOSS) FOR THE SIX MONTHS ENDED JUNE 30, 2015
	Nationstar		Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Service related	$	—	$	432,753		$	(2,639	)	$	242,732		$	—		$	672,846
Net gain on mortgage loans held for sale	—		309,795			—			21,085			—			330,880
Total Revenues	—		742,548			(2,639		)	263,817			—			1,003,726
Expenses:
Salaries, wages and benefits	—		269,763			427			106,922			—			377,112
General and administrative	—		357,947			194			89,575			—			447,716
Total expenses	—		627,710			621			196,497			—			824,828
Other income (expense):
Interest income	—		114,050			—			16,879			—			130,929
Interest expense	—		(230,827		)	—			(32,684		)	—			(263,511		)
Gain on interest rate swaps and caps	—		45			—			(717		)	—			(672		)
Gain/(loss) from subsidiaries	26,244		46,374			—			—			(72,618		)	—
Total other income (expense)	26,244		(70,358		)	—			(16,522		)	(72,618		)	(133,254		)
Income/(loss) before taxes	26,244		44,480			(3,260		)	50,798			(72,618		)	45,644
Income tax expense (benefit)	—		15,315			1,323			8			—			16,646
Net income/(loss)	26,244		29,165			(4,583		)	50,790			(72,618		)	28,998
Less: Net gain attributable to noncontrolling interests	—		2,921			—			(167		)	—			2,754
Net income/(loss) excluding noncontrolling interests	$	26,244	$	26,244		$	(4,583	)	$	50,957		$	(72,618	)	$	26,244

Consolidating Statements of Cash Flows

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015

	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	26,244		$	26,244		$	(4,583	)	$	50,957		$	(72,618	)	$	26,244
Reconciliation of net income to net cash attributable to operating activities:
(Gain)/loss from subsidiaries	(26,244		)	(46,374		)	—			—			72,618			—
Share-based compensation	—			11,313			—			—			—			11,313
Excess tax benefit from share based compensation	—			(1,095		)	—			—			—			(1,095		)
Net (gain)/loss on mortgage loans held for sale	—			(309,795		)	—			(21,085		)	—			(330,880		)
Mortgage loans originated and purchased, net of fees	—			(9,883,868		)	—			—			—			(9,883,868		)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment	—			9,448,896			—			(19,011		)	—			9,429,885
Gain (loss) on swaps and caps	—			(45		)	—			717			—			672
Depreciation and amortization	—			19,314			—			7,313			—			26,627
Amortization/accretion of premiums/discounts	—			(4,574		)	—			(616		)	—			(5,190		)
Fair value changes in excess spread financing	—			38,951			—			—			—			38,951
Fair value changes and amortization/accretion of mortgage servicing rights	—			183,042			—			—			—			183,042
Fair value change in mortgage servicing rights financing liability	—			9,640			—			—			—			9,640
Changes in assets and liabilities:
Advances	—			215,345			—			2,293			—			217,638
Reverse mortgage interests	—			82,558			—			(207,007		)	—			(124,449		)
Other assets				293,481			3,682			(231,526		)	—			65,637
Payables and accrued liabilities	—			37,062			1,534			101			—			38,697
Net cash attributable to operating activities	—			120,095			633			(417,864		)	—			(297,136		)



	Nationstar		Issuer (Parent)			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—		(13,069		)	—		(13,982		)	—		(27,051		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—		(500,041		)	—		—			—		(500,041		)
Purchases of reverse mortgage servicing rights and interests	—		(4,815,684		)	—		—			—		(4,815,684		)
Proceeds from sale of servicer advances	—		—			—		—			—		—
Acquisitions, net	—		—			—		(45,276		)	—		(45,276		)
Net cash attributable to investing activities	—		(5,328,794		)	—		(59,258		)	—		(5,388,052		)
Financing activities:
Transfers to/from restricted cash	—		(20,751		)	—		(81,633		)	—		(102,384		)
Issuance of common stock, net of issuance costs	—		497,761			—		—			—		497,761
Debt financing costs	—		(10,639		)	—		—			—		(10,639		)
Increase (decrease) in advance facilities	—		538,266			—		42,027			—		580,293
Increase (decrease) in warehouse facilities	—		(326,634		)	—		251,303			—		(75,331		)
Proceeds from 2014-1 and 2015-1 HECM Securitization	—		—			—		342,403			—		342,403
Repayment of 2014-1 and 2015-1 HECM Securitization	—		—			—		(63,013		)	—		(63,013		)
Issuance of excess spread financing	—		258,196			—		—			—		258,196
Repayment of excess servicing spread financing	—		(100,228		)	—		—			—		(100,228		)
Increase in participating interest financing in reverse mortgage interests	—		4,633,093			—		—			—		4,633,093
Proceeds from mortgage servicing rights financing	—		—			—		—			—		—
Repayment of nonrecourse debt–Legacy assets	—		—			—		(5,917		)	—		(5,917		)
Excess tax benefit from share-based compensation	—		1,095			—		—			—		1,095
Surrender of shares relating to stock vesting			(6,204		)	—		—			—		(6,204		)
Net cash attributable to financing activities	—		5,463,955			—		485,170			—		5,949,125
Net increase in cash and cash equivalents	—		255,256			633		8,048			—		263,937
Cash and cash equivalents at beginning of period	—		279,770			288		18,944			—		299,002
Cash and cash equivalents at end of period	$	—	$	535,026		$	921	$	26,992		$	—	$	562,939



NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2014
	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	90,491		$	144,433		$	50,352		$	17,649		$	(212,434	)	$	90,491
Reconciliation of net income to net cash attributable to operating activities:
(Gain)/loss from subsidiaries	(144,433		)	(68,001		)	—			—			212,434			—
Share-based compensation	—			6,868			—			—			—			6,868
Excess tax benefit from share based compensation	—			(2,189		)	—			—			—			(2,189		)
Net (gain)/loss on mortgage loans held for sale	—			(264,549		)	—			24			(36,327		)	(300,852		)
Mortgage loans originated and purchased, net of fees	—			(11,470,908		)	—			—			—			(11,470,908		)
Proceeds on sale of and payments of mortgage loans held for sale and held for investment	—			12,043,737			—			9,274			36,327			12,089,338
Gain (loss) on swaps and caps	—			(507		)	—			(1,361		)	—			(1,868		)
Cash settlement on derivative financial instruments	—			—			—			1,352			—			1,352
Depreciation and amortization	—			18,577			84			1,740			—			20,401
Amortization/accretion of premiums/discounts	—			14,389			—			(1,352		)	—			13,037
Fair value changes in excess spread financing	—			23,767			—			—			—			23,767
Fair value changes and amortization/accretion of mortgage servicing rights	—			123,573			—			—			—			123,573
Fair value change in mortgage servicing rights financing liability	—			(49,257		)	—			—			—			(49,257		)
Changes in assets and liabilities:
Advances	—			(3,232,195		)	—			4,001,949			—			769,754
Reverse mortgage interests	—			(413,478		)	—			—			—			(413,478		)
Other assets	4,756			1,852,546			(48,708		)	(1,585,478		)	—			223,116
Payables and accrued liabilities	53,941			(320,185		)	(4,779		)	10,457			—			(260,566		)
Net cash attributable to operating activities	4,755			(1,593,379		)	(3,051		)	2,454,254			—			862,579



	Nationstar			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(14,175		)	(112		)	(9,391		)	—		(23,678		)
Purchase of forward mortgage servicing rights, net of liabilities incurred	—			(187,803		)	—			—			—		(187,803		)
Proceeds from sale of servicer advances	—			512,527			—			—			—		512,527
Acquisitions, net	—			(18,000		)	—			—			—		(18,000		)
Net cash attributable to investing activities	—			292,549			(112		)	(9,391		)	—		283,046
Financing activities:
Transfers to/from restricted cash	—			94,268			—			147,155			—		241,423
Issuance of common stock, net of issuance costs	—			—			—			—			—		—
Debt financing costs	—			(9,153		)	—			—			—		(9,153		)
Increase (decrease) in advance facilities	—			1,196,768			—			(2,577,561		)	—		(1,380,793		)
Increase (decrease) in warehouse facilities	—			(76,148		)	—			—			—		(76,148		)
Issuance of excess spread financing	—			111,118			—			—			—		111,118
Repayment of excess servicing spread financing	—			(85,257		)	—			—			—		(85,257		)
Increase in participating interest financing in reverse mortgage interests	—			192,355			—			—			—		192,355
Proceeds from mortgage servicing rights financing	—			52,835			—			—			—		52,835
Repayment of nonrecourse debt–Legacy assets	—			—			—			(7,414		)	—		(7,414		)
Excess tax benefit from share-based compensation	—			2,189			—			—			—		2,189
Surrender of shares relating to stock vesting	(4,755		)	—			—			—			—		(4,755		)
Net cash attributable to financing activities	(4,755		)	1,478,975			—			(2,437,820		)	—		(963,600		)
Net increase in cash and cash equivalents	—			178,145			(3,163		)	7,043			—		182,025
Cash and cash equivalents at beginning of period	—			422,268			3,907			15,727			—		441,902
Cash and cash equivalents at end of period	$	—		$	600,413		$	744		$	22,770		$	—	$	623,927

Nature of Business and Basis of Presentation - Narrative (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Real estate owned (REO), net

$ 1,713

$ 1,625

Other Assets |
Accounting Standards Update 2014-14

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Real estate owned (REO), net

22,300

36,000

Reverse Mortgage Interest |
Accounting Standards Update 2014-14

New Accounting Pronouncements or Change in Accounting Principle [Line Items]

Real estate owned (REO), net

$ 69,400

Mortgage Servicing Rights - MSRs and Related Liabilities (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2014

Dec. 31, 2013

Mortgage Servicing Rights [Line Items]

MSRs - Fair Value

$ 3,350,298

$ 2,949,739

Mortgage servicing rights

3,360,322

2,961,321

Mortgage servicing liabilities

47,775

65,382

Excess spread financing - fair value

1,228,070

Mortgage servicing rights financing liability - fair value

59,070

49,430

MSR related liabilities - nonrecourse

1,287,140

1,080,465

Mortgage servicing rights

Mortgage Servicing Rights [Line Items]

MSRs - Fair Value

3,350,298

2,949,739

MSRs - LOCOM

10,024

11,582

13,315

14,879

Mortgage servicing liabilities

$ 47,775

$ 65,382

$ 80,492

$ 82,521

Mortgage Servicing Rights - UPB related to owned MSRs (Details) (USD $)

Jun. 30, 2015

Dec. 31, 2014

Owned Service Loans [Line Items]

MSRs - Fair Value

$ 3,350,298,000

$ 2,949,739,000

Mortgage servicing rights

Owned Service Loans [Line Items]

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

353,407,000

333,612,645,000

MSRs - Fair Value

3,350,298,000

2,949,739,000

Credit Sensitive |
Mortgage servicing rights

Owned Service Loans [Line Items]

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

247,720,000

241,769,601,000

MSRs - Fair Value

2,171,954,000

1,919,290,000

Interest Rate Sensitive |
Mortgage servicing rights

Owned Service Loans [Line Items]

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

105,687,000

91,843,044,000

MSRs - Fair Value

$ 1,178,344,000

$ 1,030,449,000

Mortgage Servicing Rights - MSR's at Fair Value (Details) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Servicing Asset at Fair Value, Amount [Roll Forward]

Fair value at the end of the period

$ 3,350,298

$ 2,949,739

Mortgage servicing rights

Servicing Asset at Fair Value, Amount [Roll Forward]

Fair value at the beginning of the period

2,949,739

2,488,283

Servicing resulting from transfers of financial assets

105,506

120,212

238,292

Purchases of servicing assets

494,145

193,677

470,543

Due to changes in valuation inputs or assumptions used in the valuation model

18,347

24,821

Other changes in fair value

(217,439)

(148,859)

Fair value at the end of the period

$ 3,350,298

$ 2,678,134

$ 2,949,739

Mortgage Servicing Rights - Fair Value Assumptions (Details)

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Mortgage servicing rights |
Credit Sensitive

Assumption for Fair Value of Mortgage Servicing Rights

Discount rate

11.66%

11.96%

Total prepayment speeds

17.05%

18.58%

Expected weighted-average life

5 years 10 months 27 days

5 years 4 months 20 days

Mortgage servicing rights |
Interest Rate Sensitive

Assumption for Fair Value of Mortgage Servicing Rights

Discount rate

9.10%

9.09%

Total prepayment speeds

11.68%

11.27%

Expected weighted-average life

6 years 4 months 17 days

6 years 5 months 25 days

Excess spread financing |
Minimum

Assumption for Fair Value of Mortgage Servicing Rights

Mortgage prepayment speeds

7.20%

6.20%

Average life

3 years 10 months 24 days

4 years

Discount rate

8.50%

Recapture Rate

6.80%

6.70%

Excess spread financing |
Maximum

Assumption for Fair Value of Mortgage Servicing Rights

Mortgage prepayment speeds

17.30%

19.40%

Average life

8 years 7 months 6 days

7 years 1 month 6 days

Discount rate

14.20%

Recapture Rate

30.30%

31.30%

MSR Financing Liability |
Financing rates

Assumption for Fair Value of Mortgage Servicing Rights

Other Key Assumption Rate or Value

0.0279

MSR Financing Liability |
Recovery rates

Assumption for Fair Value of Mortgage Servicing Rights

Other Key Assumption Rate or Value

0.2467

0.2755

Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

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

$ (130,260)

$ (112,603)

Total Prepayment Speeds, 20% Adverse Change

(249,466)

(199,078)

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

(33,607)

(33,618)

Total Prepayment Speeds, 20% Adverse Change

(71,308)

(70,379)

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

(135,060)

(110,900)

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

(40,932)

(36,632)

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

(247,779)

(207,295)

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

$ (86,191)

$ (75,964)

Mortgage Servicing Rights - MSR's at Amortized Cost (Details) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2014

Jun. 30, 2015

Mortgage servicing rights

Jun. 30, 2014

Mortgage servicing rights

Servicing Asset at Amortized Value, Balance [Roll Forward]

Balance at the beginning of the period

$ 11,582

$ 14,879

Purchase /Assumptions of servicing rights/obligations

0

Amortization/Accretion

(1,558)

(1,564)

Balance at end of the period

10,024

13,315

Fair value at end of period

31,636

36,997

Servicing Liability at Amortized Value [Roll Forward]

Balance at the beginning of the period

47,775

65,382

82,521

Purchase /Assumptions of servicing rights/obligations

0

Amortization/Accretion

17,607

2,029

Balance at end of the period

47,775

65,382

47,775

80,492

Fair value at end of period

$ 39,042

$ 62,680

Mortgage Servicing Rights - Narrative (Details) (USD $)

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Jun. 30, 2015

Reverse mortgage interests

Mar. 31, 2015

Reverse mortgage interests

Dec. 31, 2014

Reverse mortgage interests

Jun. 30, 2015

Mortgage servicing rights

Jun. 30, 2014

Mortgage servicing rights

Dec. 31, 2014

Mortgage servicing rights

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

$ 31,800,000,000

$ 31,500,000,000.0

$ 28,000,000,000

$ 353,407,000

$ 333,612,645,000

Impairment of Intangible Assets, Finite-lived

0

Amortization/Accretion

17,607,000

2,029,000

Factor in repurchasing loans out of HMBS pools

625,000

MSRs - Fair Value

3,350,298,000

2,949,739,000

3,350,298,000

2,949,739,000

Payments to Acquire Mortgage Servicing Rights (MSR)

$ 500,041,000

$ 187,803,000

Advances - Schedule of Accounts Receivable (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Receivables [Abstract]

Servicer advances, net of purchase discount

$ 2,348,114

$ 2,546,362

Advances - Narrative (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Receivables [Abstract]

Accretion of Service Advances Discount

$ 0

$ 3.4

$ 0.3

$ 8.4

Allowance for Doubtful Accounts Receivable

$ 13.9

$ 9.2

Reverse Mortgage Interests - Schedule of Reverse Mortgage Interest (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Accounts, Notes, Loans and Financing Receivable [Line Items]

Unsecuritized interests

$ 874,388

$ 752,801

Allowance for losses - reverse mortgage interests

13,386

4,225

Reverse mortgage interests

7,424,565

2,453,069

HMBS Securitized HECM

Accounts, Notes, Loans and Financing Receivable [Line Items]

Reverse Mortgage Interest Subject to Non-Recourse Debt

6,015,287

1,363,225

2014-1 HECM securitization

Accounts, Notes, Loans and Financing Receivable [Line Items]

Reverse Mortgage Interest Subject to Non-Recourse Debt

$ 548,276

$ 341,268

Reverse Mortgage Interests - Narrative (Details) (USD $)

6 Months Ended

1 Months Ended

6 Months Ended

3 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Nov. 30, 2009

May 31, 2015

Generation Mortgage

Jun. 30, 2015

Mortgage servicing rights

Jun. 30, 2014

Mortgage servicing rights

Dec. 31, 2014

Mortgage servicing rights

Jun. 30, 2015

2014-1 HECM securitization

Dec. 31, 2014

2014-1 HECM securitization

Jun. 30, 2015

2015-1 HECM Securitization

Dec. 31, 2014

2015-1 HECM Securitization

Mar. 31, 2015

Securities Repurchase Facility Class A and Class M

Dec. 31, 2014

Notes Payable, Other

2014-1 HECM securitization

Dec. 31, 2014

Notes Payable, Other

Securities Repurchase Facility Class A

Dec. 31, 2014

Notes Payable, Other

Securities Repurchase Facility Class M

Accounts, Notes, Loans and Financing Receivable [Line Items]

Amortization/Accretion

$ 17,607,000

$ 2,029,000

Purchase of reverse mortgage interests, net of participations sold

4,815,684,000

0

192,000,000

Acquisition of Reverse Mortgage Interest, Net Assets Acquired

233,000,000

Reverse Mortgage Interest Subject to Non-Recourse Debt

4,900,000,000

548,276,000

341,268,000

Non-Recourse Debt

6,693,772,000

1,768,311,000

4,600,000,000

275,138,000

259,328,000

263,901,000

0

MSRs - Fair Value

3,350,298,000

2,949,739,000

3,350,298,000

2,949,739,000

Payments to Acquire Mortgage Servicing Rights (MSR)

500,041,000

187,803,000

Securitized unpaid principal balance

269,400,000

Principal amount outstanding on securitized financing

222,000,000

343,600,000

Advance facilities

1,826,452,000

1,901,783,000

70,400,000

36,200,000

Proceeds from sale of notes

$ 73,100,000

Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Mortgage Loans Held for Sale and Investment [Abstract]

Mortgage loans held for sale – unpaid principal balance

$ 1,854,736

$ 1,218,596

Mark-to-market adjustment(1)

51,274

59,335

Total mortgage loans held for sale

1,906,010

1,277,931

UPB

27,381

31,968

Fair Value

24,812

26,022

Foreclosure

$ 15,706

$ 17,493

Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]

Mortgage loans held for sale – beginning balance

$ 1,277,931

$ 2,603,380

Mortgage loans originated and purchased, net of fees

9,854,949

11,470,908

Proceeds on sale of and payments of mortgage loans held for sale

9,420,331

12,089,338

Net gain on mortgage loans held for sale

196,727

241,971

Transfer of mortgage loans held for sale to held for investment or other assets

3,266

2,100

Mortgage loans held for sale – ending balance

$ 1,906,010

$ 2,224,821

Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Dec. 31, 2013

Accounts, Notes, Loans and Financing Receivable [Line Items]

Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net

$ 182,330

$ 191,569

Mortgage Loans Held for Investment

Accounts, Notes, Loans and Financing Receivable [Line Items]

Unpaid principal balance

263,581

276,820

Transfer discount - accretable

(13,825)

(15,503)

(17,362)

Transfer discount - non-accretable

(63,877)

(66,217)

Allowance for loan losses

(3,549)

(3,531)

Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net

$ 182,330

$ 191,569

Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) (Mortgage Loans Held for Investment, USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Mortgage Loans Held for Investment

Accretable Yield Movement Schedule [Roll Forward]

Balance at the beginning of the period

$ 15,503

$ 17,362

Accretion

(1,406)

(2,955)

Reclassifications from (to) nonaccretable discount

(272)

1,096

Balance at the end of the period

$ 13,825

$ 15,503

Mortgage Loans Held for Sale and Investment - Foreclosure (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Mortgage Loans Held for Sale and Investment [Abstract]

Mortgage Loans Held for Investment in foreclosure, amount

$ 47,688

$ 52,769

Mortgage Loans Held for Sale and Investment - Narrative (Details) (USD $)

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Mortgage Loans Held for Investment

Dec. 31, 2014

Mortgage Loans Held for Investment

Servicing Assets at Fair Value [Line Items]

Reclassifications from (to) nonaccretable discount

$ 272,000

$ (1,096,000)

Loans repurchased from securitization pool, during the period

$ 900,000,000

$ 2,300,000,000

Other Assets - Schedule of Others Assets (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Receivables from trusts, agencies and prior servicers, net

$ 389,583

$ 386,166

Accrued revenues

161,110

154,436

Loans subject to repurchase right from Ginnie Mae

133,928

131,592

Goodwill

68,479

54,701

Deferred financing costs

49,344

46,986

Intangible assets

46,633

19,622

Prepaid expenses

12,559

9,837

Accrued interest

1,644

1,890

Real estate owned (REO), net

1,713

1,625

Other

41,896

70,374

Total other assets

$ 906,889

$ 877,229

Other Assets - Narrative (Details) (USD $)

1 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Jan. 31, 2015

Experience 1, Inc

Jun. 30, 2015

GoPaperless Solutions

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Loans subject to repurchase right from Ginnie Mae

$ 133,928,000

$ 131,592,000

Business Acquisition [Line Items]

Cash payment to acquire business

36,000,000

Goodwill acquired

16,800,000

4,000,000

Intangible assets acquired

$ 14,200,000

$ 10,000,000

Derivative Financial Instruments - Narrative (Details) (USD $)

Jun. 30, 2015

Dec. 31, 2014

Other Assets

Derivative Instruments, Gain (Loss) [Line Items]

Collateral deposits on derivative instruments

$ 13,900,000

$ 9,800,000

Interest Rate Cap 1 |
Interest Rate Cap

Derivative Instruments, Gain (Loss) [Line Items]

Derivative, Notional Amount

800,000,000

Interest Rate Cap 2 |
Interest Rate Cap

Derivative Instruments, Gain (Loss) [Line Items]

Derivative, Notional Amount

$ 400,000,000

Derivative Financial Instruments - Derivative Instruments (Details) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Loan Sale Commitment

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

$ 1,000

$ 1,666

Interest Rate Lock Commitments

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

2,998,234

2,556,169

Outstanding Notional - Liability

43,129

865

Forward Contracts

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

3,138,409

319,112

Outstanding Notional - Liability

1,386,757

2,958,700

Loan Purchase Commitments

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

313,444

287,089

Outstanding Notional - Liability

559,260

30,494

Interest Rate Swap

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

1,200,000

124,650

Outstanding Notional - Liability

29,958

105,681

Future

Derivatives, Fair Value [Line Items]

Outstanding Notional - Asset

40,000

Outstanding Notional - Liability

120,000

80,000

Fair Value, Measurements, Recurring |
Loan Sale Commitment

Derivatives, Fair Value [Line Items]

Fair Value - Asset

37

(4)

Fair Value, Measurements, Recurring |
Interest Rate Lock Commitments

Derivatives, Fair Value [Line Items]

Fair Value - Asset

81,205

87,902

Fair Value - Liability

206

7

Fair Value, Measurements, Recurring |
Forward Contracts

Derivatives, Fair Value [Line Items]

Fair Value - Asset

22,864

284

Fair Value - Liability

3,691

18,360

Fair Value, Measurements, Recurring |
Loan Purchase Commitments

Derivatives, Fair Value [Line Items]

Fair Value - Asset

4,196

1,999

Fair Value - Liability

3,787

48

Fair Value, Measurements, Recurring |
Interest Rate Swap

Derivatives, Fair Value [Line Items]

Fair Value - Asset

0

865

Fair Value - Liability

57

103

Fair Value, Measurements, Recurring |
Future

Derivatives, Fair Value [Line Items]

Fair Value - Asset

1

Fair Value - Liability

118

7

Derivative Assets |
Loan Sale Commitment

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

41

(11)

Derivative Assets |
Interest Rate Lock Commitments

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

(6,660)

774

Derivative Assets |
Forward Contracts

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

22,580

(31,982)

Derivative Assets |
Loan Purchase Commitments

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

2,197

1,206

Derivative Assets |
Interest Rate Swap

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

0

(1,673)

Derivative Assets |
Future

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

1

Derivative Liabilities |
Interest Rate Lock Commitments

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

(199)

2,691

Derivative Liabilities |
Forward Contracts

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

14,669

(15,055)

Derivative Liabilities |
Loan Purchase Commitments

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

(3,739)

1,641

Derivative Liabilities |
Interest Rate Swap

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

(672)

731

Derivative Liabilities |
Future

Derivatives, Fair Value [Line Items]

Recorded Gains / (Losses)

$ (111)

$ (7)

Indebtedness - Notes Payable Summary (Details) (USD $)

6 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

MBS advance financing facility

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

MBS advance financing facility

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2011)

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2011)

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Nationstar agency advance financing facility (1)

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Nationstar agency advance financing facility (1)

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

MBS advance financing facility (2012)

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

MBS advance financing facility (2012)

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Nationstar Mortgage Advance Receivable Trust

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Nationstar Mortgage Advance Receivable Trust

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

MBS servicer advance facility (2014)

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

MBS servicer advance facility (2014)

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Nationstar servicer advance receivables trust 2014 - BC

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Nationstar servicer advance receivables trust 2014 - BC

Jun. 30, 2015

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2014)

Dec. 31, 2014

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2014)

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$1.3 billion warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$1.3 billion warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$1.0 billion warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$1.0 billion warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$350 million warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$350 million warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$200 million warehouse facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$200 million warehouse facility

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$75 million warehouse facility (HCM) (2)

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$75 million warehouse facility (HCM) (2)

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

$50 million warehouse facility (HCM)

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

$50 million warehouse facility (HCM)

Jun. 30, 2015

Originations Segment

Notes Payable to Banks

ASAP facility

Dec. 31, 2014

Originations Segment

Notes Payable to Banks

ASAP facility

Jun. 30, 2015

Mortgage loans

Originations Segment

Dec. 31, 2014

Mortgage loans

Originations Segment

Jun. 30, 2015

Reverse mortgage interests

Originations Segment

Dec. 31, 2014

Reverse mortgage interests

Originations Segment

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2011)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Servicing Segment

Notes Payable, Other

MBS advance financing facility (2012)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Servicing Segment

Notes Payable, Other

MBS servicer advance facility (2014)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Originations Segment

Notes Payable to Banks

$200 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Originations Segment

Notes Payable to Banks

ASAP facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Servicing Segment

Notes Payable, Other

MBS advance financing facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Servicing Segment

Notes Payable, Other

Nationstar agency advance financing facility (1)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Servicing Segment

Notes Payable, Other

Nationstar Mortgage Advance Receivable Trust

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Servicing Segment

Notes Payable, Other

Nationstar servicer advance receivables trust 2014 - BC

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2014)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$1.3 billion warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$1.0 billion warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$350 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$75 million warehouse facility (HCM) (2)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Minimum

Originations Segment

Notes Payable to Banks

$50 million warehouse facility (HCM)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Servicing Segment

Notes Payable, Other

MBS advance financing facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Servicing Segment

Notes Payable, Other

Nationstar agency advance financing facility (1)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Servicing Segment

Notes Payable, Other

Nationstar Mortgage Advance Receivable Trust

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Servicing Segment

Notes Payable, Other

Nationstar servicer advance receivables trust 2014 - BC

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Servicing Segment

Notes Payable, Other

Securities repurchase facility (2014)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$1.3 billion warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$1.0 billion warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$500 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$350 million warehouse facility

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$75 million warehouse facility (HCM) (2)

Jun. 30, 2015

London Interbank Offered Rate (LIBOR) [Member]

Maximum

Originations Segment

Notes Payable to Banks

$50 million warehouse facility (HCM)

Jun. 30, 2015

Secured Debt

Servicing Segment

Notes Payable to Banks

Nationstar agency advance financing facility (1)

Debt Instrument [Line Items]

Line of Credit Facility, Maximum Borrowing Capacity

$ 130,000,000

$ 0

$ 1,300,000,000

$ 50,000,000

$ 500,000,000

$ 100,000,000

$ 200,000,000

$ 1,300,000,000

$ 1,000,000,000

$ 500,000,000

$ 350,000,000

$ 200,000,000

$ 75,000,000

$ 50,000,000

$ 0

Advance facilities

1,826,452,000

1,901,783,000

1,826,452,000

1,901,783,000

63,770,000

363,014,000

35,058,000

34,613,000

1,061,500,000

805,706,000

45,510,000

42,472,000

411,563,000

419,170,000

99,820,000

79,084,000

109,231,000

106,115,000

0

51,609,000

2,152,915,000

1,572,622,000

710,840,000

663,167,000

619,540,000

307,294,000

299,800,000

176,194,000

292,608,000

183,290,000

115,443,000

210,049,000

40,029,000

0

49,337,000

23,949,000

25,318,000

8,679,000

0

1,735,473,000

1,196,956,000

417,442,000

375,666,000

Debt Instrument, Collateral Amount

2,138,352,000

2,214,410,000

69,505,000

418,126,000

55,603,000

1,195,152,000

885,115,000

54,441,000

50,758,000

475,978,000

471,243,000

166,954,000

138,010,000

120,719,000

121,030,000

0

74,525,000

2,295,355,000

1,652,743,000

757,426,000

697,257,000

675,637,000

320,285,000

307,209,000

179,994,000

310,047,000

192,990,000

124,151,000

223,849,000

42,560,000

0

51,944,000

29,324,000

26,381,000

9,044,000

0

1,842,445,000

1,241,043

452,910,000

411,700,000

Debt issued

300,000,000

Debt Instrument, Basis Spread on Variable Rate

3.50%

5.00%

3.50%

1.50%

2.50%

1.20%

1.15%

1.50%

2.00%

1.75%

1.50%

2.20%

2.25%

2.50%

4.00%

3.75%

5.30%

3.00%

2.00%

2.875%

3.25%

2.75%

2.25%

4.50%

2.875%

2.75%

Long-term Line of Credit

$ 100,000,000

Long-term Debt, Weighted Average Interest Rate

2.20%

Debt Instrument, Term

5 years 0 months

Indebtedness - Summary of Unsecured Senior Notes (Details) (USD $)

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2014

Debt Instrument [Line Items]

Total

$ 2,158,392,000

$ 2,159,231,000

Unsecured Senior Notes

Debt Instrument [Line Items]

Debt issued

2,150,000,000

Unsecured Senior Notes |
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018

Debt Instrument [Line Items]

Total

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]

Total

378,153,000

378,555,000

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]

Total

400,495,000

400,541,000

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]

Total

604,745,000

605,135,000

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]

Total

300,000,000

Debt issued

$ 300,000,000

Interest Rate

6.50%

Indebtedness - Schedule of Notes Maturity (Details) (Unsecured Senior Notes, USD $)

Jun. 30, 2015

Unsecured Senior Notes

Expected maturities of long-term debt

2015

$ 0

2016

0

2017

0

2018

475,000,000

2019

375,000,000

Thereafter

1,300,000,000

Total

$ 2,150,000,000

Indebtedness - Summary of Other Non-Recourse Debt (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2014

Debt Instrument [Line Items]

Non-Recourse Debt

$ 6,693,772

$ 1,768,311

Participating Interest Financing

Debt Instrument [Line Items]

Non-Recourse Debt

6,084,064

1,433,145

2014-1 HECM securitization

Debt Instrument [Line Items]

Non-Recourse Debt

275,138

259,328

2015-1 HECM Securitization

Debt Instrument [Line Items]

Non-Recourse Debt

263,901

0

Legacy Asset

Debt Instrument [Line Items]

Non-Recourse Debt

$ 70,669

$ 75,838

$ 75,800

Indebtedness - Narrative (Details) (USD $)

6 Months Ended

3 Months Ended

Jun. 30, 2015

Dec. 31, 2014

Nov. 30, 2009

Jun. 30, 2015

Notes Payable, MBS

Jun. 30, 2015

HMBS Securitized HECM

Dec. 31, 2014

HMBS Securitized HECM

Jun. 30, 2015

Participating Interest Financing

Dec. 31, 2014

Participating Interest Financing

Jun. 30, 2015

Nonrecourse Debt

Dec. 31, 2014

Nonrecourse Debt

Jun. 30, 2015

Nonrecourse Debt

Secured Debt

Jun. 30, 2015

Legacy Asset

Dec. 31, 2014

Legacy Asset

Jun. 30, 2014

Legacy Asset

Jun. 30, 2015

2014-1 HECM securitization

Dec. 31, 2014

2014-1 HECM securitization

Dec. 31, 2014

2014-1 HECM securitization

Notes Payable, Other

Dec. 31, 2014

Securities Repurchase Facility Class A

Notes Payable, Other

Dec. 31, 2014

Securities Repurchase Facility Class M

Notes Payable, Other

Mar. 31, 2015

Securities Repurchase Facility Class A and Class M

Jun. 30, 2015

2015-1 HECM Securitization

Dec. 31, 2014

2015-1 HECM Securitization

Jun. 30, 2015

Securities Pledged as Collateral

Dec. 31, 2014

Securities Pledged as Collateral

May 31, 2015

Generation Mortgage

Debt Instrument [Line Items]

Maximum percentage redeemable on unsecured debt

35.00%

Minimum interest rate

0.14%

Maximum interest rate

6.98%

Non-Recourse Debt

$ 6,693,772,000

$ 1,768,311,000

$ 539,000,000

$ 259,300,000

$ 6,084,064,000

$ 1,433,145,000

$ 70,669,000

$ 75,838,000

$ 75,800,000

$ 275,138,000

$ 259,328,000

$ 263,901,000

$ 0

$ 4,600,000,000

Securitized unpaid principal balance

269,400,000

Advance facilities

1,826,452,000

1,901,783,000

70,400,000

36,200,000

Proceeds from sale of notes

73,100,000

Principal amount outstanding on securitized financing

222,000,000

343,600,000

262,100,000

268,200,000

Interest Rate

7.50%

Principal Amount Outstanding

$ 82,300,000

$ 88,200,000

Accounts Payable - Schedule of Accounts Payable (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Payables and Accruals [Abstract]

Payables to servicing and subservicing investors

$ 416,383

$ 329,306

Accrued interest

60,550

59,708

Loans subject to repurchase from Ginnie Mae

133,928

131,592

Taxes

101,810

96,237

Payable to insurance carriers and insurance cancellation reserves

104,749

163,381

Accrued bonus and payroll

74,923

85,366

Repurchase reserves

28,831

29,165

MSR purchases payable including advances

23,098

45,697

Other

445,935

381,626

Total payables and accrued liabilities

$ 1,390,207

$ 1,322,078

Variable Interest Entities and Securitizations - Assets and Liabilities of Consolidated VIEs (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

$ 2,145,556

$ 1,760,455

Reverse Secured Borrowings, Assets, Carrying Amount

6,575,509

1,658,367

Liabilities

1,654,762

1,408,425

Reverse Secured Borrowings, Liabilities, Carrying Amount

6,623,480

1,692,659

Residential Mortgage |
Restricted Cash

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

169,827

90,068

Reverse Secured Borrowings, Assets, Carrying Amount

11,956

15,578

Residential Mortgage |
Reverse mortgage interests

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

0

Reverse Secured Borrowings, Assets, Carrying Amount

6,563,553

1,642,789

Residential Mortgage |
Accounts Receivable

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

1,791,849

1,477,388

Reverse Secured Borrowings, Assets, Carrying Amount

0

Residential Mortgage |
Mortgage Loans Held for Investment

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

181,154

189,456

Reverse Secured Borrowings, Assets, Carrying Amount

0

Residential Mortgage |
Derivative Assets

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

0

865

Reverse Secured Borrowings, Assets, Carrying Amount

0

Residential Mortgage |
Other Assets

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Assets

2,726

2,678

Reverse Secured Borrowings, Assets, Carrying Amount

0

Residential Mortgage |
Notes Payable

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

1,582,294

1,330,991

Reverse Secured Borrowings, Liabilities, Carrying Amount

0

Residential Mortgage |
Payables and Accrued Liabilities

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

1,799

1,596

Reverse Secured Borrowings, Liabilities, Carrying Amount

377

186

Residential Mortgage |
Nonrecourse Debt

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

70,669

75,838

Reverse Secured Borrowings, Liabilities, Carrying Amount

0

2014-1 HECM securitization |
Residential Mortgage |
Other Non-Recourse Debt

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

0

Reverse Secured Borrowings, Liabilities, Carrying Amount

275,138

259,328

2015-1 HECM Securitization |
Residential Mortgage |
Other Non-Recourse Debt

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

0

Reverse Secured Borrowings, Liabilities, Carrying Amount

263,901

0

HMBS Securitized HECM |
Residential Mortgage |
Participating Mortgages

Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]

Liabilities

0

Reverse Secured Borrowings, Liabilities, Carrying Amount

$ 6,084,064

$ 1,433,145

Variable Interest Entities and Securitizations - Securitization Trusts (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Variable Interest Entities and Securitizations [Abstract]

Total collateral balances

$ 3,027,803

$ 3,258,472

Total certificate balances

3,062,887

3,297,256

Unconsolidated securitization trusts

730,235

936,178

Unconsolidated securitization trusts

$ 57,759

$ 80,890

$ 115,220

$ 147,432

Variable Interest Entities and Securitizations - Cash Flows from Securitization Trust (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Variable Interest Entities and Securitizations [Abstract]

Servicing Fees Received

$ 6,491

$ 10,408

$ 12,864

$ 18,186

Loan Repurchases

$ 0

Stockholders' Equity - Narrative (Details) (USD $)

Share data in Thousands, unless otherwise specified

6 Months Ended

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Solutionstar Segment

Jun. 30, 2015

Solutionstar Segment

Jun. 30, 2015

Stock Appreciation Rights (SARs)

Solutionstar Segment

Class of Stock [Line Items]

Issuance of common stock, net (shares)

17,500

Issuance of common stock, net of issuance costs

$ 497,761,000

$ 0

Grants in Period

948

Award Vesting Period

3 years

Terms of Award

P10Y

Share-based compensation

$ 11,313,000

$ 6,868,000

$ 0

Income Taxes - Schedule of Income Taxes (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income tax expense

$ 44,171

$ 38,941

$ 16,646

$ 53,942

Effective tax rate

36.80%

36.90%

36.50%

37.40%

Income Taxes - Narrative (Details) (USD $)

In Millions, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Net deferred tax liability

$ 107.0

$ 109.8

Valuation allowance on deferred tax asset

$ 6.4

Fair Value Measurements - Measured on a Recurring Basis (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

ASSETS

Mortgage loans held for sale

$ 1,906,010

$ 1,277,931

Mortgage servicing rights

3,350,298

2,949,739

LIABILITIES

Mortgage servicing rights financing liability - fair value

59,070

49,430

Excess spread financing (at fair value)

1,228,070

Fair Value, Measurements, Recurring

ASSETS

Mortgage loans held for sale

1,906,010

1,277,931

Mortgage servicing rights

2,949,739

Total assets

5,364,573

4,318,721

LIABILITIES

Mortgage servicing rights financing liability - fair value

59,070

49,430

Excess spread financing (at fair value)

1,228,070

1,031,035

Total liabilities

1,294,999

1,098,990

Fair Value, Measurements, Recurring |
Level 1

ASSETS

Mortgage loans held for sale

0

Mortgage servicing rights

0

Total assets

0

LIABILITIES

Mortgage servicing rights financing liability - fair value

0

Excess spread financing (at fair value)

0

Total liabilities

0

Fair Value, Measurements, Recurring |
Level 2

ASSETS

Mortgage loans held for sale

1,906,010

1,277,931

Mortgage servicing rights

0

Total assets

2,014,275

1,368,982

LIABILITIES

Mortgage servicing rights financing liability - fair value

0

Excess spread financing (at fair value)

0

Total liabilities

7,859

18,525

Fair Value, Measurements, Recurring |
Level 3

ASSETS

Mortgage loans held for sale

0

Mortgage servicing rights

2,949,739

Total assets

3,350,298

2,949,739

LIABILITIES

Mortgage servicing rights financing liability - fair value

59,070

49,430

Excess spread financing (at fair value)

1,228,070

1,031,035

Total liabilities

1,287,140

1,080,465

Interest Rate Lock Commitments |
Fair Value, Measurements, Recurring

ASSETS

Fair Value - Asset

81,205

87,902

LIABILITIES

Fair Value - Liability

206

7

Interest Rate Lock Commitments |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Interest Rate Lock Commitments |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Fair Value - Asset

81,205

87,902

LIABILITIES

Fair Value - Liability

206

7

Interest Rate Lock Commitments |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Forward Contracts |
Fair Value, Measurements, Recurring

ASSETS

Fair Value - Asset

22,864

284

LIABILITIES

Fair Value - Liability

3,691

18,360

Forward Contracts |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Forward Contracts |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Fair Value - Asset

22,864

284

LIABILITIES

Fair Value - Liability

3,691

18,360

Forward Contracts |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Loan Purchase Commitments |
Fair Value, Measurements, Recurring

ASSETS

Fair Value - Asset

4,196

1,999

LIABILITIES

Fair Value - Liability

3,787

48

Loan Purchase Commitments |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Loan Purchase Commitments |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Fair Value - Asset

4,196

1,999

LIABILITIES

Fair Value - Liability

3,787

48

Loan Purchase Commitments |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Interest Rate Swap |
Fair Value, Measurements, Recurring

ASSETS

Fair Value - Asset

0

865

LIABILITIES

Fair Value - Liability

57

103

Interest Rate Swap |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Interest Rate Swap |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Fair Value - Asset

0

865

LIABILITIES

Fair Value - Liability

57

103

Interest Rate Swap |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Future |
Fair Value, Measurements, Recurring

ASSETS

Fair Value - Asset

1

LIABILITIES

Fair Value - Liability

118

7

Future |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Future |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Fair Value - Asset

1

LIABILITIES

Fair Value - Liability

118

7

Future |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Fair Value - Asset

0

LIABILITIES

Fair Value - Liability

0

Mortgage servicing rights

ASSETS

Mortgage servicing rights

3,350,298

2,949,739

Mortgage servicing rights |
Fair Value, Measurements, Recurring

ASSETS

Mortgage servicing rights

3,350,298

Mortgage servicing rights |
Fair Value, Measurements, Recurring |
Level 1

ASSETS

Mortgage servicing rights

0

Mortgage servicing rights |
Fair Value, Measurements, Recurring |
Level 2

ASSETS

Mortgage servicing rights

0

Mortgage servicing rights |
Fair Value, Measurements, Recurring |
Level 3

ASSETS

Mortgage servicing rights

$ 3,350,298

Fair Value Measurements - Level 3 Reconciliation (Details) (USD $)

In Thousands, unless otherwise specified

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Excess spread financing

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Beginning balance

$ 1,031,035

$ 986,410

Transfers into Level 3

0

Transfers out of Level 3

0

Total gains or losses included in earnings

38,951

57,554

Total gains or losses included in other comprehensive income

0

Purchases

0

Issuances

258,196

171,317

Sales

0

Settlements

(100,112)

(184,246)

Ending balance

1,228,070

1,031,035

Mortgage servicing rights financing

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Beginning balance

49,430

29,874

Transfers into Level 3

0

Transfers out of Level 3

0

Total gains or losses included in earnings

9,640

(33,279)

Total gains or losses included in other comprehensive income

0

Purchases

0

Issuances

0

52,835

Sales

0

Settlements

0

Ending balance

59,070

49,430

Mortgage servicing rights

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]

Beginning balance

2,949,739

2,488,283

Transfers into Level 3

0

Transfers out of Level 3

0

Total gains or losses included in earnings

(199,092)

(247,379)

Total gains or losses included in other comprehensive income

0

Purchases of servicing assets

494,145

193,677

470,543

Servicing resulting from transfers of financial assets

105,506

120,212

238,292

Sales

0

Settlements

0

Ending balance

$ 3,350,298

$ 2,949,739

Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2014

Financial assets:

Cash and cash equivalents

$ 562,939

$ 299,002

Restricted Cash and Cash Equivalents

387,914

285,530

Mortgage loans held for sale

1,906,010

1,277,931

Mortgage loans held for investment, net

182,330

191,569

Reverse mortgage interests

7,424,565

2,453,069

Derivative instruments

108,265

91,051

Financial liabilities:

Total

2,158,392

2,159,231

Advance facilities

1,826,452

1,901,783

Warehouse facilities

2,152,915

1,572,622

Derivative financial instruments

7,859

18,525

Excess spread financing

1,031,035

Mortgage servicing rights financing liability - fair value

59,070

49,430

Other nonrecourse debt

6,693,772

1,768,311

Fair Value, Measurements, Recurring

Financial assets:

Mortgage loans held for sale

1,906,010

1,277,931

Financial liabilities:

Mortgage servicing rights financing liability - fair value

59,070

49,430

Fair Value, Measurements, Recurring |
Level 1

Financial assets:

Cash and cash equivalents

562,939

299,002

Restricted Cash and Cash Equivalents

387,914

285,530

Mortgage loans held for sale

0

Mortgage loans held for investment, net

0

Reverse mortgage interests

0

Derivative instruments

0

Financial liabilities:

Total

2,127,684

2,057,038

Advance facilities

0

Warehouse facilities

0

Derivative financial instruments

0

Excess spread financing

0

Mortgage servicing rights financing liability - fair value

0

Fair Value, Measurements, Recurring |
Level 2

Financial assets:

Cash and cash equivalents

0

Restricted Cash and Cash Equivalents

0

Mortgage loans held for sale

1,906,010

1,277,931

Mortgage loans held for investment, net

0

Reverse mortgage interests

0

Derivative instruments

108,265

91,051

Financial liabilities:

Total

0

Advance facilities

1,826,452

1,901,783

Warehouse facilities

2,152,915

1,572,622

Derivative financial instruments

7,859

18,525

Excess spread financing

0

Mortgage servicing rights financing liability - fair value

0

Fair Value, Measurements, Recurring |
Level 3

Financial assets:

Cash and cash equivalents

0

Restricted Cash and Cash Equivalents

0

Mortgage loans held for sale

0

Mortgage loans held for investment, net

181,820

192,865

Reverse mortgage interests

7,453,656

2,432,735

Derivative instruments

0

Financial liabilities:

Total

0

Advance facilities

0

Warehouse facilities

0

Derivative financial instruments

0

Excess spread financing

1,031,035

Mortgage servicing rights financing liability - fair value

59,070

49,430

Legacy Asset

Financial liabilities:

Other nonrecourse debt

70,669

75,838

75,800

Legacy Asset |
Fair Value, Measurements, Recurring |
Level 1

Financial liabilities:

Other nonrecourse debt

0

Legacy Asset |
Fair Value, Measurements, Recurring |
Level 2

Financial liabilities:

Other nonrecourse debt

0

Legacy Asset |
Fair Value, Measurements, Recurring |
Level 3

Financial liabilities:

Other nonrecourse debt

81,335

86,570

Participating Interest Financing

Financial liabilities:

Other nonrecourse debt

6,084,064

1,433,145

Participating Interest Financing |
Fair Value, Measurements, Recurring |
Level 1

Financial liabilities:

Other nonrecourse debt

0

Participating Interest Financing |
Fair Value, Measurements, Recurring |
Level 2

Financial liabilities:

Other nonrecourse debt

6,073,412

1,423,291

Participating Interest Financing |
Fair Value, Measurements, Recurring |
Level 3

Financial liabilities:

Other nonrecourse debt

0

2014-1 HECM securitization

Financial liabilities:

Other nonrecourse debt

275,138

259,328

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

287,801

259

2015-1 HECM Securitization

Financial liabilities:

Other nonrecourse debt

263,901

0

2015-1 HECM Securitization |
Fair Value, Measurements, Recurring |
Level 1

Financial liabilities:

Other nonrecourse debt

0

2015-1 HECM Securitization |
Fair Value, Measurements, Recurring |
Level 2

Financial liabilities:

Other nonrecourse debt

0

2015-1 HECM Securitization |
Fair Value, Measurements, Recurring |
Level 3

Financial liabilities:

Other nonrecourse debt

$ 256,988

Capital Requirements - Narrative (Details) (USD $)

In Billions, unless otherwise specified

Jun. 30, 2015

Mortgage Banking [Abstract]

Minimum Net Worth Required for Compliance

$ 1.0

Commitments and Contingencies - Narrative (Details) (USD $)

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Litigation and Regulatory Matters

Jun. 30, 2015

Reverse mortgage interests

Mar. 31, 2015

Reverse mortgage interests

Dec. 31, 2014

Reverse mortgage interests

Loss Contingencies [Line Items]

Legal Fees

$ 16,200,000

$ 10,300,000

$ 23,400,000

$ 15,200,000

Loss Contingency, Range of Possible Loss, Minimum

8,300,000

Loss Contingency, Range of Possible Loss, Maximum

20,100,000

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

31,800,000,000

31,500,000,000.0

28,000,000,000

Unfunded advance obligations

$ 3,500,000,000

Business Segment Reporting - Financial Information (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Segment Reporting Information [Line Items]

Service related

$ 457,723

$ 376,817

$ 672,846

$ 718,528

Gain/(loss) on mortgage loans held for sale

163,886

172,916

330,880

300,852

Total revenues

621,609

549,733

1,003,726

1,019,380

Total expenses and impairments

440,985

346,711

824,828

667,844

Interest income

87,155

42,941

130,929

86,884

Interest expense

(147,863)

(139,422)

(263,511)

(296,022)

Gain/(Loss) on interest rate swaps and caps

95

(953)

(672)

1,868

Total other income (expense)

(60,613)

(97,434)

(133,254)

(207,270)

Income before taxes

120,011

105,588

45,644

144,266

Depreciation and amortization

13,773

11,609

26,627

20,401

Assets

17,321,503

11,167,774

17,321,503

11,167,774

11,112,675

Operating Segments

Segment Reporting Information [Line Items]

Service related

456,086

377,038

670,929

718,132

Gain/(loss) on mortgage loans held for sale

163,922

173,295

329,219

301,903

Total revenues

620,008

550,333

1,000,148

1,020,035

Total expenses and impairments

421,132

328,284

783,166

637,876

Interest income

83,784

39,485

123,689

79,670

Interest expense

(105,074)

(86,815)

(177,469)

(190,205)

Gain/(Loss) on interest rate swaps and caps

85

(953)

(717)

1,361

Total other income (expense)

(21,205)

(48,283)

(54,497)

(109,174)

Income before taxes

177,671

173,766

162,485

272,985

Depreciation and amortization

11,376

9,060

20,414

17,114

Assets

16,573,413

10,152,999

16,573,413

10,152,999

Servicing Segment

Segment Reporting Information [Line Items]

Service related

320,654

283,645

420,649

547,043

Gain/(loss) on mortgage loans held for sale

7,837

22,094

21,850

34,502

Total revenues

328,491

305,739

442,499

581,545

Total expenses and impairments

209,540

187,447

391,936

353,900

Interest income

66,922

22,158

91,560

40,822

Interest expense

(90,191)

(70,014)

(148,166)

(150,813)

Gain/(Loss) on interest rate swaps and caps

85

(953)

(717)

1,361

Total other income (expense)

(23,184)

(48,809)

(57,323)

(108,630)

Income before taxes

95,767

69,483

(6,760)

119,015

Depreciation and amortization

4,420

4,513

7,939

8,587

Assets

14,423,073

7,622,720

14,423,073

7,622,720

Originations Segment

Segment Reporting Information [Line Items]

Service related

13,428

13,901

20,490

27,949

Gain/(loss) on mortgage loans held for sale

156,085

151,201

307,369

267,401

Total revenues

169,513

165,102

327,859

295,350

Total expenses and impairments

117,159

97,084

217,409

202,134

Interest income

16,862

17,327

32,129

38,848

Interest expense

(14,854)

(16,711)

(29,239)

(39,248)

Gain/(Loss) on interest rate swaps and caps

0

Total other income (expense)

2,008

616

2,890

(400)

Income before taxes

54,362

68,634

113,340

92,816

Depreciation and amortization

3,006

3,469

5,161

6,705

Assets

1,879,284

2,474,838

1,879,284

2,474,838

Solutionstar Segment

Segment Reporting Information [Line Items]

Service related

122,004

79,492

229,790

143,140

Gain/(loss) on mortgage loans held for sale

0

Total revenues

122,004

79,492

229,790

143,140

Total expenses and impairments

94,433

43,753

173,821

81,842

Interest income

0

Interest expense

(29)

(90)

(64)

(144)

Gain/(Loss) on interest rate swaps and caps

0

Total other income (expense)

(29)

(90)

(64)

(144)

Income before taxes

27,542

35,649

55,905

61,154

Depreciation and amortization

3,950

1,078

7,314

1,822

Assets

271,056

55,441

271,056

55,441

Legacy Portfolio and Other

Segment Reporting Information [Line Items]

Service related

1,855

147

2,358

1,142

Gain/(loss) on mortgage loans held for sale

(36)

(379)

1,661

(1,051)

Total revenues

1,819

(232)

4,019

91

Total expenses and impairments

19,853

18,427

41,662

29,968

Interest income

3,153

3,088

6,799

6,468

Interest expense

(42,789)

(52,607)

(86,042)

(105,817)

Gain/(Loss) on interest rate swaps and caps

11

0

45

507

Total other income (expense)

(39,625)

(49,519)

(79,198)

(98,842)

Income before taxes

(57,659)

(68,178)

(116,841)

(128,719)

Depreciation and amortization

2,397

2,549

6,213

3,287

Assets

748,090

1,014,775

748,090

1,014,775

Intersegment Eliminations

Segment Reporting Information [Line Items]

Service related

(218)

(368)

(440)

(746)

Gain/(loss) on mortgage loans held for sale

0

Total revenues

(218)

(368)

(440)

(746)

Total expenses and impairments

0

Interest income

218

368

440

746

Interest expense

0

Gain/(Loss) on interest rate swaps and caps

0

Total other income (expense)

218

368

440

746

Income before taxes

0

Depreciation and amortization

0

Assets

$ 0

Business Segment Reporting - Narrative (Details) (Servicing Segment, USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Servicing Segment

Segment Reporting Information [Line Items]

Adjustment between segments, net income (loss)

$ 4.5

$ 2.1

$ 7.7

$ 2.3

Guarantor Financial Statement Information - Narrative (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

subsidiary

Dec. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Total

$ 2,158,392

$ 2,159,231

Guarantor Subsidiary, Ownership Percentage

100.00%

Number of Subsidiaries as Guarantors of Unsecured Debt

2

Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) (USD $)

In Thousands, unless otherwise specified

Jun. 30, 2015

Dec. 31, 2014

Jun. 30, 2014

Dec. 31, 2013

Assets

Cash and cash equivalents

$ 562,939

$ 299,002

$ 623,927

$ 441,902

Restricted cash

387,914

285,530

Mortgage servicing rights

3,360,322

2,961,321

Advances

2,348,114

2,546,362

Reverse mortgage interests

7,424,565

2,453,069

Mortgage loans held for sale

1,906,010

1,277,931

2,224,821

2,603,380

Mortgage loans held for investment, net

182,330

191,569

Property and equipment, net

134,155

129,611

Derivative financial instruments

108,265

91,051

Other assets

906,889

877,229

Investment in subsidiaries

0

Total assets

17,321,503

11,112,675

11,167,774

Liabilities and shareholders' equity

Unsecured senior notes

2,158,392

2,159,231

Advance facilities

1,826,452

1,901,783

Warehouse facilities

2,152,915

1,572,622

Payables and accrued liabilities

1,390,207

1,322,078

MSR related liabilities - nonrecourse

1,287,140

1,080,465

Derivative financial instruments

7,859

18,525

Mortgage servicing liabilities

47,775

65,382

Other nonrecourse debt

(6,693,772)

(1,768,311)

Payables to affiliates

0

Reverse Secured Borrowings, Liabilities, Carrying Amount

6,623,480

1,692,659

Total liabilities

15,564,512

9,888,397

Total equity

1,756,991

1,224,278

989,898

Total liabilities and equity

17,321,503

11,112,675

Nationstar

Assets

Cash and cash equivalents

0

Restricted cash

0

Mortgage servicing rights

0

Advances

0

Reverse mortgage interests

0

Mortgage loans held for sale

0

Mortgage loans held for investment, net

0

Property and equipment, net

0

Derivative financial instruments

0

Other assets

10,180

16,383

Investment in subsidiaries

1,746,811

1,207,895

Total assets

1,756,991

1,224,278

Liabilities and shareholders' equity

Unsecured senior notes

0

Advance facilities

0

Warehouse facilities

0

Payables and accrued liabilities

0

MSR related liabilities - nonrecourse

0

Derivative financial instruments

0

Mortgage servicing liabilities

0

Other nonrecourse debt

0

Payables to affiliates

0

Total liabilities

0

Total equity

1,756,991

1,224,278

Total liabilities and equity

1,756,991

1,224,278

Issuer (Parent)

Assets

Cash and cash equivalents

535,026

279,770

600,413

422,268

Restricted cash

197,842

177,090

Mortgage servicing rights

3,360,322

2,961,321

Advances

2,348,110

2,544,065

Reverse mortgage interests

6,876,290

2,111,801

Mortgage loans held for sale

1,827,592

1,243,700

Mortgage loans held for investment, net

1,176

1,945

Property and equipment, net

109,584

114,903

Derivative financial instruments

102,247

87,911

Other assets

(868,494)

1,069,061

Investment in subsidiaries

497,118

450,363

Total assets

14,986,813

11,041,930

Liabilities and shareholders' equity

Unsecured senior notes

2,158,392

2,159,231

Advance facilities

244,158

570,792

Warehouse facilities

2,078,260

1,539,994

Payables and accrued liabilities

1,332,354

1,282,895

MSR related liabilities - nonrecourse

1,287,140

1,080,465

Derivative financial instruments

7,859

18,525

Mortgage servicing liabilities

47,775

65,382

Other nonrecourse debt

(6,084,064)

(1,433,145)

Payables to affiliates

1,850,758

1,683,606

Total liabilities

15,090,760

9,834,035

Total equity

(103,947)

1,207,895

Total liabilities and equity

14,986,813

11,041,930

Guarantor (Subsidiaries)

Assets

Cash and cash equivalents

921

288

744

3,907

Restricted cash

0

Mortgage servicing rights

0

Advances

0

Reverse mortgage interests

0

Mortgage loans held for sale

0

Mortgage loans held for investment, net

0

Property and equipment, net

835

Derivative financial instruments

0

Other assets

269,432

272,654

Investment in subsidiaries

0

Total assets

271,188

273,777

Liabilities and shareholders' equity

Unsecured senior notes

0

Advance facilities

0

Warehouse facilities

0

Payables and accrued liabilities

1,559

25

MSR related liabilities - nonrecourse

0

Derivative financial instruments

0

Mortgage servicing liabilities

0

Other nonrecourse debt

0

Payables to affiliates

864

894

Total liabilities

2,423

919

Total equity

268,765

272,858

Total liabilities and equity

271,188

273,777

Non-Guarantor (Subsidiaries)

Assets

Cash and cash equivalents

26,992

18,944

22,770

15,727

Restricted cash

190,072

108,440

Mortgage servicing rights

0

Advances

4

2,297

Reverse mortgage interests

548,275

341,268

Mortgage loans held for sale

78,418

34,231

Mortgage loans held for investment, net

181,154

189,624

Property and equipment, net

23,736

13,873

Derivative financial instruments

6,018

3,140

Other assets

1,495,771

1,328,078

Investment in subsidiaries

0

Total assets

2,550,440

2,039,895

Liabilities and shareholders' equity

Unsecured senior notes

0

Advance facilities

1,582,294

1,330,991

Warehouse facilities

74,655

32,628

Payables and accrued liabilities

56,294

39,158

MSR related liabilities - nonrecourse

0

Derivative financial instruments

0

Mortgage servicing liabilities

0

Other nonrecourse debt

(609,708)

(335,166)

Payables to affiliates

100,751

124,447

Total liabilities

2,423,702

1,862,390

Total equity

126,738

177,505

Total liabilities and equity

2,550,440

2,039,895

Eliminations

Assets

Cash and cash equivalents

0

Restricted cash

0

Mortgage servicing rights

0

Advances

0

Reverse mortgage interests

0

Mortgage loans held for sale

0

Mortgage loans held for investment, net

0

Property and equipment, net

0

Derivative financial instruments

0

Other assets

0

(1,808,947)

Investment in subsidiaries

(2,243,929)

(1,658,258)

Total assets

(2,243,929)

(3,467,205)

Liabilities and shareholders' equity

Unsecured senior notes

0

Advance facilities

0

Warehouse facilities

0

Payables and accrued liabilities

0

MSR related liabilities - nonrecourse

0

Derivative financial instruments

0

Mortgage servicing liabilities

0

Other nonrecourse debt

0

Payables to affiliates

(1,952,373)

(1,808,947)

Total liabilities

(1,952,373)

(1,808,947)

Total equity

(291,556)

(1,658,258)

Total liabilities and equity

(2,243,929)

(3,467,205)

Legacy Asset

Liabilities and shareholders' equity

Other nonrecourse debt

(70,669)

(75,838)

(75,800)

2014-1 HECM securitization

Liabilities and shareholders' equity

Other nonrecourse debt

(275,138)

(259,328)

2015-1 HECM Securitization

Liabilities and shareholders' equity

Other nonrecourse debt

$ (263,901)

$ 0

Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) (USD $)

In Thousands, unless otherwise specified

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Condensed Financial Statements

Service related

$ 457,723

$ 376,817

$ 672,846

$ 718,528

Revenues:

Net gain on mortgage loans held for sale

163,886

172,916

330,880

300,852

Total revenues

621,609

549,733

1,003,726

1,019,380

Expenses:

Salaries, wages and benefits

198,356

154,052

377,112

310,647

General and administrative

242,629

192,659

447,716

357,197

Total expenses

440,985

346,711

824,828

667,844

Other income (expense):

Interest income

87,155

42,941

130,929

86,884

Interest expense

(147,863)

(139,422)

(263,511)

(296,022)

Gain/(Loss) on interest rate swaps and caps

95

(953)

(672)

1,868

Income (Loss) from Subsidiaries, Net of Tax

0

Total other income (expense)

(60,613)

(97,434)

(133,254)

(207,270)

Income before taxes

120,011

105,588

45,644

144,266

Income Tax Expense (Benefit)

44,171

38,941

16,646

53,942

Net income

75,840

66,647

28,998

90,324

221,024

Less: Net gain (loss) attributable to noncontrolling interests

1,281

192

2,754

(167)

Net income attributable to Nationstar

74,559

66,455

26,244

90,491

Nationstar

Condensed Financial Statements

Service related

0

Revenues:

Net gain on mortgage loans held for sale

0

Total revenues

0

Expenses:

Salaries, wages and benefits

0

General and administrative

0

Total expenses

0

Other income (expense):

Interest income

0

Interest expense

0

Gain/(Loss) on interest rate swaps and caps

0

Income (Loss) from Subsidiaries, Net of Tax

74,563

105,396

26,244

144,433

Total other income (expense)

74,563

105,396

26,244

144,433

Income before taxes

74,563

105,396

26,244

144,433

Income Tax Expense (Benefit)

0

38,941

0

53,942

Net income

74,563

66,455

26,244

90,491

Less: Net gain (loss) attributable to noncontrolling interests

0

Net income attributable to Nationstar

74,563

66,455

26,244

90,491

Issuer (Parent)

Condensed Financial Statements

Service related

330,574

295,419

432,753

567,348

Revenues:

Net gain on mortgage loans held for sale

152,948

150,660

309,795

264,549

Total revenues

483,522

446,079

742,548

831,897

Expenses:

Salaries, wages and benefits

141,329

139,146

269,763

282,504

General and administrative

193,416

156,752

357,947

290,477

Total expenses

334,745

295,898

627,710

572,981

Other income (expense):

Interest income

77,930

38,145

114,050

77,855

Interest expense

(130,960)

(126,535)

(230,827)

(261,013)

Gain/(Loss) on interest rate swaps and caps

11

242

45

507

Income (Loss) from Subsidiaries, Net of Tax

23,165

43,555

46,374

68,001

Total other income (expense)

(29,854)

(44,593)

(70,358)

(114,650)

Income before taxes

118,923

105,588

44,480

144,266

Income Tax Expense (Benefit)

42,840

0

15,315

0

Net income

76,083

105,588

29,165

144,266

Less: Net gain (loss) attributable to noncontrolling interests

1,524

192

2,921

(167)

Net income attributable to Nationstar

74,559

105,396

26,244

144,433

Guarantor (Subsidiaries)

Condensed Financial Statements

Service related

(2,294)

31,127

(2,639)

58,555

Revenues:

Net gain on mortgage loans held for sale

0

Total revenues

(2,294)

31,127

(2,639)

58,555

Expenses:

Salaries, wages and benefits

73

1,811

427

3,507

General and administrative

144

3,805

194

4,696

Total expenses

217

5,616

621

8,203

Other income (expense):

Interest income

0

Interest expense

0

Gain/(Loss) on interest rate swaps and caps

0

Income (Loss) from Subsidiaries, Net of Tax

0

Total other income (expense)

0

Income before taxes

(2,511)

25,511

(3,260)

50,352

Income Tax Expense (Benefit)

1,323

0

1,323

0

Net income

(3,834)

25,511

(4,583)

50,352

Less: Net gain (loss) attributable to noncontrolling interests

0

Net income attributable to Nationstar

(3,834)

25,511

(4,583)

50,352

Non-Guarantor (Subsidiaries)

Condensed Financial Statements

Service related

129,221

72,892

242,732

129,698

Revenues:

Net gain on mortgage loans held for sale

10,938

3

21,085

(24)

Total revenues

140,159

72,895

263,817

129,674

Expenses:

Salaries, wages and benefits

56,954

13,095

106,922

24,636

General and administrative

49,069

32,102

89,575

62,024

Total expenses

106,023

45,197

196,497

86,660

Other income (expense):

Interest income

9,447

4,428

16,879

8,283

Interest expense

(16,903)

(12,887)

(32,684)

(35,009)

Gain/(Loss) on interest rate swaps and caps

84

(1,195)

(717)

1,361

Income (Loss) from Subsidiaries, Net of Tax

0

Total other income (expense)

(7,372)

(9,654)

(16,522)

(25,365)

Income before taxes

26,764

18,044

50,798

17,649

Income Tax Expense (Benefit)

8

0

8

0

Net income

26,756

18,044

50,790

17,649

Less: Net gain (loss) attributable to noncontrolling interests

(243)

0

(167)

0

Net income attributable to Nationstar

26,999

18,044

50,957

17,649

Eliminations

Condensed Financial Statements

Service related

222

(22,621)

0

(37,073)

Revenues:

Net gain on mortgage loans held for sale

0

22,253

0

36,327

Total revenues

222

(368)

0

(746)

Expenses:

Salaries, wages and benefits

0

General and administrative

0

Total expenses

0

Other income (expense):

Interest income

(222)

368

0

746

Interest expense

0

Gain/(Loss) on interest rate swaps and caps

0

Income (Loss) from Subsidiaries, Net of Tax

(97,728)

(148,951)

(72,618)

(212,434)

Total other income (expense)

(97,950)

(148,583)

(72,618)

(211,688)

Income before taxes

(97,728)

(148,951)

(72,618)

(212,434)

Income Tax Expense (Benefit)

0

Net income

(97,728)

(148,951)

(72,618)

(212,434)

Less: Net gain (loss) attributable to noncontrolling interests

0

Net income attributable to Nationstar

$ (97,728)

$ (148,951)

$ (72,618)

$ (212,434)

Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) (USD $)

6 Months Ended

12 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Operating activities

Net income attributable to Nationstar

$ 26,244,000

$ 90,491,000

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

0

Share-based compensation

11,313,000

6,868,000

Excess tax benefit from share-based compensation

(1,095,000)

(2,189,000)

Net (gain)/loss on mortgage loans held for sale

(330,880,000)

(300,852,000)

Mortgage loans originated and purchased, net of fees

(9,883,868,000)

(11,470,908,000)

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

9,429,885,000

12,089,338,000

Gain (loss) on swaps and caps

672,000

(1,868,000)

Cash settlement on derivative financial instruments

0

1,352,000

Depreciation and amortization

26,627,000

20,401,000

Amortization/accretion of premiums/discounts

(5,190,000)

13,037,000

Fair value changes in excess spread financing

38,951,000

23,767,000

Fair value changes and amortization/accretion of mortgage servicing rights

183,042,000

123,573,000

Fair value change in mortgage servicing rights financing liability

9,640,000

(49,257,000)

Changes in assets and liabilities:

Advances

217,638,000

769,754,000

Reverse mortgage interests

(124,449,000)

(413,478,000)

Other assets

65,637,000

223,116,000

Payables and accrued liabilities

38,697,000

(260,566,000)

Net cash attributable to operating activities

(297,136,000)

862,579,000

Investing activities

Payments for (Proceeds from) Productive Assets

(27,051,000)

(23,678,000)

Payments to Acquire Mortgage Servicing Rights (MSR)

(500,041,000)

(187,803,000)

Purchase of reverse mortgage interests, net of participations sold

(4,815,684,000)

0

Proceeds on sale of servicer advances

0

512,527,000

Acquisitions, net

(45,276,000)

(18,000,000)

Net cash attributable to investing activities

(5,388,052,000)

283,046,000

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

(102,384,000)

241,423,000

Issuance of common stock, net of issuance costs

497,761,000

0

Payments of Financing Costs

(10,639,000)

(9,153,000)

Proceeds from (Repayments of) Secured Debt

580,293,000

(1,380,793,000)

Proceeds from (Repayments of) Lines of Credit

(75,331,000)

(76,148,000)

Proceeds from HECM securitizations

342,403,000

0

Repayment of HECM securitizations

(63,013,000)

0

Issuance of excess spread financing

258,196,000

111,118,000

Repayment of excess spread financing

(100,228,000)

(85,257,000)

Proceeds from Mortgage Backed Securities Notes Payable

4,633,093,000

192,355,000

Proceeds from mortgage servicing rights financing

0

52,835,000

Repayment of Nonrecourse Debt Legacy Assets

(5,917,000)

(7,414,000)

Excess tax benefit from share-based compensation

1,095,000

2,189,000

2,243,000

Redemption of shares for stock vesting

(6,204,000)

(4,755,000)

Net cash attributable to financing activities

5,949,125,000

(963,600,000)

Net increase (decrease) in cash and cash equivalents

263,937,000

182,025,000

Cash and cash equivalents at beginning of period

299,002,000

441,902,000

Cash and cash equivalents at end of period

562,939,000

623,927,000

299,002,000

Nationstar

Operating activities

Net income attributable to Nationstar

26,244,000

90,491,000

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

(26,244,000)

(144,433,000)

Share-based compensation

0

Excess tax benefit from share-based compensation

0

Net (gain)/loss on mortgage loans held for sale

0

Mortgage loans originated and purchased, net of fees

0

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

0

Gain (loss) on swaps and caps

0

Cash settlement on derivative financial instruments

0

Depreciation and amortization

0

Amortization/accretion of premiums/discounts

0

Fair value changes in excess spread financing

0

Fair value changes and amortization/accretion of mortgage servicing rights

0

Fair value change in mortgage servicing rights financing liability

0

Changes in assets and liabilities:

Advances

0

Reverse mortgage interests

0

Other assets

4,756,000

Payables and accrued liabilities

0

53,941,000

Net cash attributable to operating activities

0

4,755,000

Investing activities

Payments for (Proceeds from) Productive Assets

0

Payments to Acquire Mortgage Servicing Rights (MSR)

0

Purchase of reverse mortgage interests, net of participations sold

0

Proceeds on sale of servicer advances

0

Acquisitions, net

0

Net cash attributable to investing activities

0

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

0

Issuance of common stock, net of issuance costs

0

Payments of Financing Costs

0

Proceeds from (Repayments of) Secured Debt

0

Proceeds from (Repayments of) Lines of Credit

0

Issuance of excess spread financing

0

Repayment of excess spread financing

0

Proceeds from Mortgage Backed Securities Notes Payable

0

Proceeds from mortgage servicing rights financing

0

Repayment of Nonrecourse Debt Legacy Assets

0

Excess tax benefit from share-based compensation

0

Redemption of shares for stock vesting

(4,755,000)

Net cash attributable to financing activities

0

(4,755,000)

Net increase (decrease) in cash and cash equivalents

0

Cash and cash equivalents at beginning of period

0

Cash and cash equivalents at end of period

0

Issuer (Parent)

Operating activities

Net income attributable to Nationstar

26,244,000

144,433,000

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

(46,374,000)

(68,001,000)

Share-based compensation

11,313,000

6,868,000

Excess tax benefit from share-based compensation

(1,095,000)

(2,189,000)

Net (gain)/loss on mortgage loans held for sale

(309,795,000)

(264,549,000)

Mortgage loans originated and purchased, net of fees

(9,883,868,000)

(11,470,908,000)

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

9,448,896,000

12,043,737,000

Gain (loss) on swaps and caps

(45,000)

(507,000)

Cash settlement on derivative financial instruments

0

Depreciation and amortization

19,314,000

18,577,000

Amortization/accretion of premiums/discounts

(4,574,000)

14,389,000

Fair value changes in excess spread financing

38,951,000

23,767,000

Fair value changes and amortization/accretion of mortgage servicing rights

183,042,000

123,573,000

Fair value change in mortgage servicing rights financing liability

9,640,000

(49,257,000)

Changes in assets and liabilities:

Advances

215,345,000

(3,232,195,000)

Reverse mortgage interests

82,558,000

(413,478,000)

Other assets

293,481,000

1,852,546,000

Payables and accrued liabilities

37,062,000

(320,185,000)

Net cash attributable to operating activities

120,095,000

(1,593,379,000)

Investing activities

Payments for (Proceeds from) Productive Assets

(13,069,000)

(14,175,000)

Payments to Acquire Mortgage Servicing Rights (MSR)

(500,041,000)

(187,803,000)

Purchase of reverse mortgage interests, net of participations sold

(4,815,684,000)

Proceeds on sale of servicer advances

0

512,527,000

Acquisitions, net

0

(18,000,000)

Net cash attributable to investing activities

(5,328,794,000)

292,549,000

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

(20,751,000)

94,268,000

Issuance of common stock, net of issuance costs

497,761,000

0

Payments of Financing Costs

(10,639,000)

(9,153,000)

Proceeds from (Repayments of) Secured Debt

538,266,000

1,196,768,000

Proceeds from (Repayments of) Lines of Credit

(326,634,000)

(76,148,000)

Issuance of excess spread financing

258,196,000

111,118,000

Repayment of excess spread financing

(100,228,000)

(85,257,000)

Proceeds from Mortgage Backed Securities Notes Payable

4,633,093,000

192,355,000

Proceeds from mortgage servicing rights financing

0

52,835,000

Repayment of Nonrecourse Debt Legacy Assets

0

Excess tax benefit from share-based compensation

1,095,000

2,189,000

Redemption of shares for stock vesting

(6,204,000)

0

Net cash attributable to financing activities

5,463,955,000

1,478,975,000

Net increase (decrease) in cash and cash equivalents

255,256,000

178,145,000

Cash and cash equivalents at beginning of period

279,770,000

422,268,000

Cash and cash equivalents at end of period

535,026,000

600,413,000

Guarantor (Subsidiaries)

Operating activities

Net income attributable to Nationstar

(4,583,000)

50,352,000

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

0

Share-based compensation

0

Excess tax benefit from share-based compensation

0

Net (gain)/loss on mortgage loans held for sale

0

Mortgage loans originated and purchased, net of fees

0

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

0

Gain (loss) on swaps and caps

0

Cash settlement on derivative financial instruments

0

Depreciation and amortization

0

84,000

Amortization/accretion of premiums/discounts

0

Fair value changes in excess spread financing

0

Fair value changes and amortization/accretion of mortgage servicing rights

0

Fair value change in mortgage servicing rights financing liability

0

Changes in assets and liabilities:

Advances

0

Reverse mortgage interests

0

Other assets

3,682,000

(48,708,000)

Payables and accrued liabilities

1,534,000

(4,779,000)

Net cash attributable to operating activities

633,000

(3,051,000)

Investing activities

Payments for (Proceeds from) Productive Assets

0

(112,000)

Payments to Acquire Mortgage Servicing Rights (MSR)

0

Purchase of reverse mortgage interests, net of participations sold

0

Proceeds on sale of servicer advances

0

Acquisitions, net

0

Net cash attributable to investing activities

0

(112,000)

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

0

Issuance of common stock, net of issuance costs

0

Payments of Financing Costs

0

Proceeds from (Repayments of) Secured Debt

0

Proceeds from (Repayments of) Lines of Credit

0

Issuance of excess spread financing

0

Repayment of excess spread financing

0

Proceeds from Mortgage Backed Securities Notes Payable

0

Proceeds from mortgage servicing rights financing

0

Repayment of Nonrecourse Debt Legacy Assets

0

Excess tax benefit from share-based compensation

0

Redemption of shares for stock vesting

0

Net cash attributable to financing activities

0

Net increase (decrease) in cash and cash equivalents

633,000

(3,163,000)

Cash and cash equivalents at beginning of period

288,000

3,907,000

Cash and cash equivalents at end of period

921,000

744,000

Non-Guarantor (Subsidiaries)

Operating activities

Net income attributable to Nationstar

50,957,000

17,649,000

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

0

Share-based compensation

0

Excess tax benefit from share-based compensation

0

Net (gain)/loss on mortgage loans held for sale

(21,085,000)

24,000

Mortgage loans originated and purchased, net of fees

0

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

(19,011,000)

9,274,000

Gain (loss) on swaps and caps

717,000

(1,361,000)

Cash settlement on derivative financial instruments

1,352,000

Depreciation and amortization

7,313,000

1,740,000

Amortization/accretion of premiums/discounts

(616,000)

(1,352,000)

Fair value changes in excess spread financing

0

Fair value changes and amortization/accretion of mortgage servicing rights

0

Fair value change in mortgage servicing rights financing liability

0

Changes in assets and liabilities:

Advances

2,293,000

4,001,949,000

Reverse mortgage interests

(207,007,000)

0

Other assets

(231,526,000)

(1,585,478,000)

Payables and accrued liabilities

101,000

10,457,000

Net cash attributable to operating activities

(417,864,000)

2,454,254,000

Investing activities

Payments for (Proceeds from) Productive Assets

(13,982,000)

(9,391,000)

Payments to Acquire Mortgage Servicing Rights (MSR)

0

Purchase of reverse mortgage interests, net of participations sold

0

Proceeds on sale of servicer advances

0

Acquisitions, net

(45,276,000)

0

Net cash attributable to investing activities

(59,258,000)

(9,391,000)

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

(81,633,000)

147,155,000

Issuance of common stock, net of issuance costs

0

Payments of Financing Costs

0

Proceeds from (Repayments of) Secured Debt

42,027,000

(2,577,561,000)

Proceeds from (Repayments of) Lines of Credit

251,303,000

0

Issuance of excess spread financing

0

Repayment of excess spread financing

0

Proceeds from Mortgage Backed Securities Notes Payable

0

Proceeds from mortgage servicing rights financing

0

Repayment of Nonrecourse Debt Legacy Assets

(5,917,000)

(7,414,000)

Excess tax benefit from share-based compensation

0

Redemption of shares for stock vesting

0

Net cash attributable to financing activities

485,170,000

(2,437,820,000)

Net increase (decrease) in cash and cash equivalents

8,048,000

7,043,000

Cash and cash equivalents at beginning of period

18,944,000

15,727,000

Cash and cash equivalents at end of period

26,992,000

22,770,000

Eliminations

Operating activities

Net income attributable to Nationstar

(72,618,000)

(212,434,000)

Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:

(Gain)/loss from subsidiaries

72,618,000

212,434,000

Share-based compensation

0

Excess tax benefit from share-based compensation

0

Net (gain)/loss on mortgage loans held for sale

0

(36,327,000)

Mortgage loans originated and purchased, net of fees

0

Proceeds on sale of and payments of mortgage loans held for sale and held for investment

0

36,327,000

Gain (loss) on swaps and caps

0

Cash settlement on derivative financial instruments

0

Depreciation and amortization

0

Amortization/accretion of premiums/discounts

0

Fair value changes in excess spread financing

0

Fair value changes and amortization/accretion of mortgage servicing rights

0

Fair value change in mortgage servicing rights financing liability

0

Changes in assets and liabilities:

Advances

0

Reverse mortgage interests

0

Other assets

0

Payables and accrued liabilities

0

Net cash attributable to operating activities

0

Investing activities

Payments for (Proceeds from) Productive Assets

0

Payments to Acquire Mortgage Servicing Rights (MSR)

0

Purchase of reverse mortgage interests, net of participations sold

0

Proceeds on sale of servicer advances

0

Acquisitions, net

0

Net cash attributable to investing activities

0

Financing activities

Proceeds from (Repayments of) Restricted Cash, Financing Activities

0

Issuance of common stock, net of issuance costs

0

Payments of Financing Costs

0

Proceeds from (Repayments of) Secured Debt

0

Proceeds from (Repayments of) Lines of Credit

0

Issuance of excess spread financing

0

Repayment of excess spread financing

0

Proceeds from Mortgage Backed Securities Notes Payable

0

Proceeds from mortgage servicing rights financing

0

Repayment of Nonrecourse Debt Legacy Assets

0

Excess tax benefit from share-based compensation

0

Redemption of shares for stock vesting

0

Net cash attributable to financing activities

0

Net increase (decrease) in cash and cash equivalents

0

Cash and cash equivalents at beginning of period

0

Cash and cash equivalents at end of period

0

2014-1 HECM securitization

Financing activities

Proceeds from HECM securitizations

342,403,000

Repayment of HECM securitizations

(63,013,000)

2014-1 HECM securitization |
Nationstar

Financing activities

Proceeds from HECM securitizations

0

Repayment of HECM securitizations

0

2014-1 HECM securitization |
Issuer (Parent)

Financing activities

Proceeds from HECM securitizations

0

Repayment of HECM securitizations

0

2014-1 HECM securitization |
Guarantor (Subsidiaries)

Financing activities

Proceeds from HECM securitizations

0

Repayment of HECM securitizations

0

2014-1 HECM securitization |
Non-Guarantor (Subsidiaries)

Financing activities

Proceeds from HECM securitizations

342,403,000

Repayment of HECM securitizations

(63,013,000)

2014-1 HECM securitization |
Eliminations

Financing activities

Proceeds from HECM securitizations

0

Repayment of HECM securitizations

$ 0

Affiliates of Fortress Investment Group - Narrative (Details) (USD $)

3 Months Ended

6 Months Ended

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Related Party Transaction [Line Items]

Excess Spread Financing, Fair Value Disclosure

$ 1,228,070,000

Mortgage servicing rights financing liability - fair value

59,070,000

49,430,000

Newcastle

Related Party Transaction [Line Items]

Servicing fee, percentage of unpaid principal balance

0.50%

Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement

700,000,000

800,000,000

Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets

900,000

1,000,000

1,800,000

2,100,000

New Residential

Related Party Transaction [Line Items]

Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets

400,000

2,100,000

Payment of Servicing Fees in Excess of Contractually Specified Amount

29,100,000

Fair Value, Measurements, Recurring

Related Party Transaction [Line Items]

Excess Spread Financing, Fair Value Disclosure

1,228,070,000

1,031,035,000

Mortgage servicing rights financing liability - fair value

$ 59,070,000

$ 49,430,000