INVESTMENTS IN CONSUMER LOANS EQUITY METHOD INVESTEES (Tables)
 12 Months Ended
Dec. 31, 2013
Investments In Consumer Loans Equity Method Investees Tables  
Schedule of investments in consumer loan equity method investees

The following tables summarize the investment in the Consumer Loan Companies held by New Residential:

 

         
    December 31, 2013  
Consumer Loan Assets   $ 2,572,577  
Other Assets     192,830  
Debt (A)     (2,010,433 ) 
Other Liabilities     (32,712 ) 
         
Equity   $ 722,262  
         
New Residential’s investment   $ 215,062  
         
New Residential’s ownership     30.0 % 

 

(A) Represents the Class A asset-backed notes with a face amount of $1.7 billion, an interest rate of 3.75% and a maturity of April 2021 and the Class B asset-backed notes with a face amount of $0.4 billion, an interest rate of 4.0%, and a maturity of December 2024. Substantially all of the net cash flow generated by the Consumer Loan Companies is required to be used to pay down the Class A notes. When the balance of the outstanding Class A notes is reduced to 50% of the outstanding UPB of the performing consumer loans, 70% of the net cash flow generated is required to be used to pay down the Class A notes and the equity holders of the Consumer Loan Companies and holders of the Class B notes will each be entitled to receive 15% of the net cash flow of the Consumer Loan Companies on a periodic basis.

  

         
    Year Ended
December 31, 2013		  
Interest income   $ 481,056  
Interest expense     (71,639 ) 
Provision for finance receivable losses     (60,619 ) 
Other expenses, net     (67,225 ) 
         
Net income   $ 281,573  
         
New Residential’s equity in net income   $ 82,856  
         
New Residential’s ownership     30.0 % 
Schedule of consumer loan investments made through equity method investees

The following is a summary of New Residential’s consumer loan investments made through equity method investees:

 

                                                 
    December 31, 2013  
    Unpaid
Principal
Balance		     Interest in
Consumer
Loan
Companies		     Carrying Value
(A)		     Weighted
Average
Coupon (B)		     Weighted
Average
Asset Yield		     Weighted
Average
Expected Life
(Years) (C)		  
Consumer Loans   $ 3,298,769       30.0 %    $ 2,572,577       18.3 %      15.9 %      3.2  

 

(A) Represents the carrying value of the consumer loans held by the Consumer Loan Companies.
(B) Substantially all of the cash flows received on the loans is required to be used to make payments on the notes described above.
(C) Weighted Average Life represents the weighted average expected timing of the receipt of expected cash flows for this investment.
Schedule of change in investments in consumer loan equity method investees

New Residential’s investments in consumer loans, equity method investees changed during the year ended December 31, 2013 as follows:

 

         
    Year Ended
December 31, 2013		  
Balance as of December 31, 2012   $ —    
Contributions to equity method investees     245,421  
Distributions of earnings from equity method investees     (82,856 ) 
Distributions of capital from equity method investees     (30,359 ) 
Earnings from investments in consumer loan equity method investees     82,856  
         
Balance as of December 31, 2013   $ 215,062