Print Page  Close Window

SEC Filings

10-K
DITECH HOLDING CORP filed this Form 10-K on 04/16/2019
Entire Document
 

Credit Risk
The Company is subject to credit risk associated with mortgage loans that it purchases and originates during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be insignificant as it holds the loans for a short period of time, which is, on average, approximately 20 days from the date of borrowing, and the market for these loans continues to be highly liquid. The Company is also subject to credit risk associated with mortgage loans it has repurchased as a result of breaches of representations and warranties during the period of time between repurchase and resale. At December 31, 2018, the Company held $3.8 million in repurchased loans.
11. Receivables, Net
Receivables, net consist of the following (in thousands):
 
 
Successor
 
 
Predecessor
 
 
December 31, 2018
 
 
December 31, 2017
Servicing fee receivables
 
$
25,158

 
 
$
24,838

Income tax receivables
 
17,639

 
 
17,477

Servicing rights holdback receivable (1)
 
14,050

 
 
31,336

Receivables related to Non-Residual Trusts
 
1,945

 
 
5,608

Other receivables
 
59,611

 
 
49,829

Total receivables
 
118,403

 
 
129,088

Less: Allowance for uncollectible receivables
 
(1,587
)
 
 
(4,744
)
Receivables, net
 
$
116,816

 
 
$
124,344

__________
(1)
Servicing rights holdback receivable relates primarily to sales of MSR to NRM. Refer to Note 4 for further information regarding transactions with NRM.
In connection with the adoption of fresh start accounting at February 9, 2018, the Company adjusted receivables to fair value, which included an adjustment to decrease the servicing rights holdback receivable by $1.7 million. With the exception of the servicing rights holdback receivable, the net carrying value of the receivables approximated fair value. Accordingly, the allowance for uncollectible accounts for each receivable was netted against the gross receivable amount to arrive at the gross receivable balances under fresh start accounting. Refer to Note 2 for additional information regarding fresh start accounting adjustments.
12. Servicer and Protective Advances, Net
Servicer advances consist of principal and interest advances to certain unconsolidated securitization trusts to meet contractual payment requirements to credit owners. Protective advances consist of advances to protect the collateral being serviced by the Company and primarily include payments made for property taxes, insurance and foreclosure costs. Servicer and protective advances, net consist of the following (in thousands):
 
 
Successor
 
 
Predecessor
 
 
December 31, 2018
 
 
December 31, 2017
Protective advances
 
$
446,556

 
 
$
928,552

Servicer advances
 
35,629

 
 
49,106

Total servicer and protective advances
 
482,185

 
 
977,658

Less: Allowance for uncollectible advances
 
(41,688
)
 
 
(164,225
)
Servicer and protective advances, net
 
$
440,497

 
 
$
813,433

In connection with the adoption of fresh start accounting, the Company recorded adjustments resulting in a decrease to servicer and protective advances totaling $24.4 million at February 9, 2018, as further described in Note 2.

F-47