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SEC Filings

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

27. Segment Reporting
Management has organized the Company into three reportable segments based primarily on its services as follows:
Servicing — performs servicing for the Company's mortgage loan portfolio and on behalf of third-party credit owners of mortgage loans for a fee and also performs subservicing for third-party owners of MSR. The Servicing segment also operates complementary businesses including a collections agency that performs collections of post charge-off deficiency balances for third parties and the Company. Commencing February 1, 2017, an insurance agency owned by the Company began to provide insurance marketing services to a third party with respect to voluntary insurance policies, including hazard insurance. In addition, the Servicing segment held the assets and mortgage-backed debt of the Residual Trusts until their sale and deconsolidation in November 2018.
Originations —originates and purchases mortgage loans that are intended for sale to third parties.
Reverse Mortgage — primarily focuses on the servicing of reverse loans for the Company's own reverse mortgage portfolio and subservicing on behalf of third-party credit owners of reverse loans. The Reverse Mortgage segment also provides complementary services for the reverse mortgage market, such as real estate owned property management and disposition, for a fee. Effective January 2017, the Company exited the reverse mortgage originations business. The Company no longer has any reverse loans remaining in its originations pipeline and has finalized the shutdown of the reverse mortgage originations business. The Company continues to fund undrawn Tails available to borrowers.
The following tables present select financial information for the reportable segments (in thousands). The Company has presented the revenue and expenses of the Non-Residual Trusts and other non-reportable operating segments, as well as corporate expenses, in the Corporate and Other non-reportable segment. Intersegment revenues and expenses have been eliminated. Effective January 1, 2018, the Company no longer allocates corporate overhead, including depreciation and amortization, to our operating segments. These amounts are now included in the Corporate and Other non-reportable segment. Prior year balances have been restated to conform to current year presentation.
 
 
Successor
 
 
For the Period From February 10, 2018 Through December 31, 2018
 
 
Servicing
 
Originations
 
Reverse
Mortgage
 
Corporate and Other
 
Eliminations
 
Total
Consolidated
Net servicing revenue and fees (1)(2)
 
$
321,833

 
$

 
$
22,361

 
$
55

 
$
(4,915
)
 
$
339,334

Net gains on sales of loans (2)
 
564

 
159,787

 

 

 
1,359

 
161,710

Net fair value gains on reverse loans and related HMBS obligations
 

 

 
46,833

 

 

 
46,833

Interest income on loans
 
1,792

 
40

 

 

 

 
1,832

Other revenues (3)
 
86,481

 
23,734

 
5,581

 
1,498

 
(8,063
)
 
109,231

Total revenues
 
410,670

 
183,561

 
74,775

 
1,553

 
(11,619
)
 
658,940

 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
15,356

 
29,445

 
52,824

 
111,696

 

 
209,321

Depreciation and amortization
 
14,062

 
15,691

 
1,632

 
973

 

 
32,358

Goodwill and intangible assets impairment
 
7,400

 
16,260

 

 

 

 
23,660

Other expenses, net (4)
 
296,439

 
156,534

 
64,832

 
107,578

 
(11,619
)
 
613,764

Total expenses
 
333,257

 
217,930

 
119,288

 
220,247

 
(11,619
)
 
879,103

 
 
 
 
 
 
 
 
 
 
 
 
 
Reorganization items
 

 

 

 
(2,726
)
 

 
(2,726
)
Other gains (losses) (6)
 
(6,878
)
 

 

 
22,022

 

 
15,144

 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
70,535

 
$
(34,369
)
 
$
(44,513
)
 
$
(199,398
)
 
$

 
$
(207,745
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2018
Total assets
 
$
1,900,630

 
$
1,017,847

 
$
8,460,374

 
$
212,761

 
$
(307,086
)
 
$
11,284,526


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