| Schedule of investments in excess mortgage servicing rights equity method investees |
The following tables
summarize the investments in Excess MSR joint ventures, accounted for as equity method investees held by New Residential:
| |
|
|
|
|
| |
|
December 31, 2013 |
|
| Excess MSR assets |
|
$ |
703,681 |
|
| Other assets |
|
|
5,534 |
|
| Debt |
|
|
— |
|
| Other liabilities |
|
|
(3,683 |
) |
| |
|
|
|
|
| Equity |
|
$ |
705,532 |
|
| |
|
|
|
|
| New Residential’s investment |
|
$ |
352,766 |
|
| |
|
|
|
|
| |
|
| New Residential’s ownership |
|
|
50.0 |
% |
| |
|
|
|
|
| |
|
Year Ended December 31,
2013 |
|
| Interest income |
|
$ |
50,306 |
|
| Other income |
|
|
53,964 |
|
| Expenses |
|
|
(3,585 |
) |
| |
|
|
|
|
| Net income |
|
$ |
100,685 |
|
| |
|
|
|
|
|
| Schedule of Excess Mortgage Servicing Rights (MSRs) investments made through equity method investees |
The following is a
summary of New Residential’s Excess MSR investments made through equity method investees:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
| |
|
Unpaid
Principal
Balance |
|
|
Investee
Interest in
Excess MSR |
|
|
New
Residential
Interest
in Investees |
|
|
Amortized
Cost Basis (A) |
|
|
Carrying Value
(B) |
|
|
Weighted
Average
Yield |
|
|
Weighted
Average
Life (Years)
(C) |
|
| MSR Pool 6 |
|
$ |
10,152,488 |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
$ |
38,488 |
|
|
$ |
47,144 |
|
|
|
12.5 |
% |
|
|
5.0 |
|
| MSR Pool 6 - Recapture Agreement |
|
|
— |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
7,666 |
|
|
|
9,969 |
|
|
|
12.5 |
% |
|
|
11.9 |
|
| MSR Pool 7 |
|
|
31,518,733 |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
99,743 |
|
|
|
102,947 |
|
|
|
12.5 |
% |
|
|
5.1 |
|
| MSR Pool 7 - Recapture Agreement |
|
|
— |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
16,706 |
|
|
|
26,388 |
|
|
|
12.5 |
% |
|
|
12.3 |
|
| MSR Pool 8 |
|
|
14,040,636 |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
55,905 |
|
|
|
54,759 |
|
|
|
12.5 |
% |
|
|
5.1 |
|
| MSR Pool 8 - Recapture Agreement |
|
|
— |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
7,542 |
|
|
|
14,713 |
|
|
|
12.5 |
% |
|
|
11.9 |
|
| MSR Pool 9 |
|
|
30,814,192 |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
103,713 |
|
|
|
127,646 |
|
|
|
12.5 |
% |
|
|
4.8 |
|
| MSR Pool 9 - Recapture Agreement |
|
|
— |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
33,905 |
|
|
|
34,154 |
|
|
|
12.5 |
% |
|
|
11.9 |
|
| MSR Pool 10 (D) |
|
|
68,890,509 |
|
|
|
66.7-77.0 |
% |
|
|
50.0 |
% |
|
|
205,975 |
|
|
|
208,055 |
|
|
|
12.5 |
% |
|
|
5.4 |
|
| MSR Pool 10 - Recapture Agreement |
|
|
— |
|
|
|
66.7-77.0 |
% |
|
|
50.0 |
% |
|
|
13,739 |
|
|
|
7,165 |
|
|
|
12.5 |
% |
|
|
13.4 |
|
| MSR Pool 11 |
|
|
18,202,920 |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
43,157 |
|
|
|
51,687 |
|
|
|
12.5 |
% |
|
|
5.5 |
|
| MSR Pool 11 - Recapture Agreement |
|
|
— |
|
|
|
66.7 |
% |
|
|
50.0 |
% |
|
|
23,178 |
|
|
|
19,054 |
|
|
|
12.5 |
% |
|
|
11.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
$ |
173,619,478 |
|
|
|
|
|
|
|
|
|
|
$ |
649,717 |
|
|
$ |
703,681 |
|
|
|
12.5 |
% |
|
|
6.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
| (A) |
Represents the amortized cost basis of the equity method investees in which New Residential holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired. |
| (B) |
Represents the carrying value of the Excess MSRs held in equity method investees, in which New Residential holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable. |
| (C) |
The weighted average life represents the weighted average expected timing of the receipt of cash flows of each investment. |
| (D) |
Pool in which New Residential also invested in related servicer advances, including the basic fee component of the related MSR as of December 31, 2013 (Note 6). | |