Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN EQUITY METHOD INVESTEES (Tables)

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INVESTMENTS IN EQUITY METHOD INVESTEES (Tables)
 3 Months Ended
Mar. 31, 2013
Investments In Equity Method Investees Tables  
Schedule of investments in equity method investees
The following table summarizes the investments in equity method investees held by Newcastle at March 31, 2013:
 
   
Newcastle’s Investment
    
Newcastle’s
Ownership Percentage
 
             
Excess MSR Joint Ventures
   $ 102,588       50 %
 
Summarized financial information related to Newcastle’s equity-method investees was as follows:
 
   
March 31, 2013
  
Assets (A)
   $ 275,779  
Debt
     —  
Other Liabilities
     (70,603 )
Equity
   $ 205,176  
Newcastle’s Investment
   $ 102,588  
Ownership
     50.0 %
 
(A)
Includes $20.8 million of deposits related to investments which have not closed at March 31, 2013.
 
   
Three Months
Ended March 31,
2013
  
Interest income
   $ 5,616  
Other income
     (3,154 )
Expenses
     (524 )
Net Income (Loss)
   $ 1,938  
Schedule of Excess Mortgage Servicing Rights (MSRs) - Equity Method Investments
The following is a summary of Newcastle’s Excess MSR investments made through equity method investees:
 
   
March 31, 2013
                
March 31, 2013
  
   
Unpaid
Principal
Balance(A)
    
Investee
 Interest in
 Excess MSR
    
Newcastle Interest
in Investees
    
Amortized
Cost Basis (B)
    
Carrying
Value (C)
    
Weighted Average
Yield
    
Weighted Average
Maturity
(Years) (D)
  
MSR Pool 6
   $ 11,821,572       66.7 %     50.0 %   $ 42,388     $ 41,453       17.4 %     4.9  
MSR Pool 6 - Recapture Agreement
     —       66.7 %     50.0 %     10,954       10,972       17.4 %     10.7  
MSR Pool 7
     37,234,201       66.7 %     50.0 %     109,420       109,048       15.2 %     5.1  
MSR Pool 7 - Recapture Agreement
     —       66.7 %     50.0 %     23,296       23,164       15.2 %     12.0  
MSR Pool 8
     17,104,429       66.7 %     50.0 %     58,748       57,177       15.0 %     5.0  
MSR Pool 8 - Recapture Agreement
     —       66.7 %     50.0 %     13,312       13,150       15.0 %     11.7  
    $ 66,160,202                     $ 258,118     $ 254,964       15.6 %     6.3  
 
(A)
 
(B)
Pool 6 unpaid principal balance is as of March 31, 2013. Pools 7 and 8 unpaid principal balances are as of February 28, 2013. 
Represents the amortized cost basis of the equity method investees in which Newcastle holds a 50% interest. The amortized cost basis of the Recapture Agreements is determined based on the relative fair values of the Recapture Agreements and related Excess MSRs at the time they were acquired.
(C)
Represents the carrying value of the equity method investees in which Newcastle holds a 50% interest. Carrying value represents the fair value of the pools or Recapture Agreements, as applicable.
(D)
The weighted average maturity represents the weighted average expected timing of the receipt of cash flows of each investment.
Schedule of the Geographic Distribution of the Residential Mortgage Loans for which Excess MSRs are held - Equity Method Investments
The table below summarizes the geographic distribution of the underlying residential mortgage loans of the Excess MSR investments made through equity method investees at March 31, 2013:
 
State Concentration
  
Percentage of Total
Outstanding
  
California
     15.2 %
Florida
     7.9 %
New York
     7.6 %
Texas
     5.9 %
New Jersey
     4.8 %
Washington
     3.4 %
Virginia
     3.0 %
Maryland
     2.8 %
Arizona
     2.5 %
Colorado
     2.4 %
Other U.S.
     44.5 %
      100.0 %
 
(A)
Based on the information provided by the loan servicer as of the most recent remittance.