Annual report pursuant to Section 13 and 15(d)

Variable Interest Entities

v3.20.4
Variable Interest Entities
 12 Months Ended
Dec. 31, 2020
Variable Interest Entities [Abstract]  
Variable Interest Entities Variable Interest Entities
The trusts that were formed for the purpose of financing MSR through securitization and servicing advances through revolving credit facilities (see discussion in Note 2 - Basis of Presentation and Significant Accounting Policies) are considered VIEs for financial reporting purposes and, thus, were reviewed for consolidation under the applicable consolidation guidance. As the Company has both the power to direct the activities of the trusts that most significantly impact the entities’ performance, and the obligation to absorb losses or the right to receive benefits of the entities that could be significant, the Company consolidates the trusts. Additionally, in accordance with arrangements entered into in connection with the securitization transaction and the servicing advance revolving credit facility, the Company has direct financial obligations payable to both the MSR Issuer Trust and the Servicing Advance Receivables Issuer Trust, which, in turn, support the MSR Issuer Trust’s obligations to noteholders under the securitization transaction and the Servicing Advance Receivables Issuer Trust’s obligations to the financing counterparty.
The following table presents a summary of the assets and liabilities of all consolidated trusts as reported on the consolidated balance sheets as of December 31, 2020 and December 31, 2019:
(in thousands) December 31,
2020		 December 31,
2019
Note receivable (1)
$ 395,609  $ 394,502 
Cash and cash equivalents —  200 
Restricted cash 72,530  — 
Accrued interest receivable (1)
131  306 
Other assets 28,540  — 
Total Assets $ 496,810  $ 395,008 
Term notes payable $ 395,609  $ 394,502 
Revolving credit facilities 9,000  — 
Accrued interest payable 156  306 
Other liabilities 72,505  200 
Total Liabilities $ 477,270  $ 395,008 
____________________
(1)Receivables due from a wholly owned subsidiary of the Company to the trusts are eliminated in consolidation in accordance with U.S. GAAP.