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SEC Filings

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

Net Servicing Revenue and Fees
The Company earns servicing income from its third-party servicing portfolio. The following table presents the components of net servicing revenue and fees, which includes revenues earned by the Servicing and Reverse Mortgage segments and, beginning in March 2018, the Corporate and Other non-reportable segment (in thousands):
 
 
Successor
 
 
Predecessor
 
 
For the Period From February 10, 2018 Through December 31, 2018
 
 
For the Period From January 1, 2018 Through February 9, 2018
 
For the Year Ended 
 December 31, 2017
Servicing fees
 
$
335,718

 
 
$
52,855

 
$
491,531

Incentive and performance fees
 
42,513

 
 
6,019

 
59,660

Ancillary and other fees (1)
 
65,641

 
 
7,335

 
83,753

Servicing revenue and fees
 
443,872

 
 
66,209


634,944

Change in fair value of servicing rights
 
(97,007
)
 
 
64,663

 
(266,246
)
Amortization of servicing rights (2)(3)
 
(7,531
)
 
 
(2,187
)
 
(21,954
)
Change in fair value of servicing rights related liabilities
 

 
 

 
(62
)
Net servicing revenue and fees
 
$
339,334

 
 
$
128,685


$
346,682

__________
(1)
Includes late fees of $45.4 million, $5.1 million and $56.8 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively.
(2)
Includes amortization of a servicing liability of $7.6 million, $0.6 million and $4.1 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively.
(3)
Includes impairment of servicing rights and a servicing liability of $4.9 million, $1.6 million and $16.1 million for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017, respectively.
Servicing revenue and fees for the period from February 10, 2018 through December 31, 2018, the period from January 1, 2018 through February 9, 2018 and the year ended December 31, 2017 included $239.0 million, $33.8 million and $306.9 million, respectively, from servicing Fannie Mae residential loans and $87.6 million, $14.2 million and $96.9 million, respectively, from servicing Ginnie Mae loans. In addition, servicing revenue and fees for the year ended December 31, 2017 included $67.5 million from servicing Freddie Mac loans.
Servicing Rights
Servicing Rights Carried at Amortized Cost
The following table summarizes the activity in the carrying value of servicing rights carried at amortized cost by class (in thousands):
 
 
Successor
 
 
Predecessor
 
 
For the Period From  
February 10, 2018 Through  
December 31, 2018
 
 
For the Period From January 1, 2018 Through February 9, 2018
 
For the Year Ended 
 December 31, 2017
 
 
Mortgage Loan
 
Reverse Loan
 
 
Mortgage Loan
 
Reverse Loan
 
Mortgage Loan
 
Reverse Loan
Balance at beginning of the period
 
$
57,148

 
$
4,542

 
 
$
54,466

 
$
4,011

 
$
74,621


$
5,505

Fresh start accounting adjustments
 

 

 
 
4,221

 
1,211

 

 

Amortization
 
(9,022
)
 
(1,201
)
 
 
(944
)
 
(148
)
 
(8,423
)
 
(1,494
)
Impairment
 
(3,167
)
 
(346
)
 
 
(595
)
 
(532
)
 
(11,732
)
 

Disposals
 
(3,744
)
 
(133
)
 
 

 

 

 

Balance at end of the period
 
$
41,215


$
2,862



$
57,148


$
4,542


$
54,466


$
4,011


F-49