Servicing Activities (Tables)
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9 Months Ended |
Sep. 30, 2016 |
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| Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract] |
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| Schedule of Servicing Assets at Fair Value [Table Text Block] |
The following table summarizes activity related to MSR for the three and nine months ended September 30, 2016 and 2015.
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Three Months Ended |
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Nine Months Ended |
|
September 30, |
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September 30, |
(in thousands) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Balance at beginning of period |
$ |
427,813 |
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|
$ |
437,576 |
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$ |
493,688 |
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|
$ |
452,006 |
|
Additions from purchases of servicing rights |
98,224 |
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|
67,175 |
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|
204,435 |
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|
75,709 |
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Additions from sales of residential mortgage loans |
242 |
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|
752 |
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|
764 |
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|
1,568 |
|
Subtractions from sales of servicing rights |
(60,910 |
) |
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— |
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(60,910 |
) |
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— |
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Changes in fair value due to: |
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Changes in valuation inputs or assumptions used in the valuation model |
3,846 |
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(49,449 |
) |
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(139,587 |
) |
|
(63,573 |
) |
Other changes in fair value (1)
|
(18,231 |
) |
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(12,100 |
) |
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(52,773 |
) |
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(32,744 |
) |
Other changes (2)
|
4,645 |
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|
3,391 |
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|
10,012 |
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|
14,379 |
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Balance at end of period |
$ |
455,629 |
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$ |
447,345 |
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$ |
455,629 |
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$ |
447,345 |
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____________________
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(1) |
Other changes in fair value primarily represents changes due to the realization of expected cash flows. |
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(2) |
Other changes includes purchase price adjustments, contractual prepayment protection, and changes due to the Company’s purchase of the underlying collateral. |
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| Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] |
As of September 30, 2016 and December 31, 2015, the key economic assumptions and sensitivity of the fair value of MSR to immediate 10% and 20% adverse changes in these assumptions were as follows:
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(in thousands) |
September 30,
2016 |
|
December 31,
2015 |
Weighted average prepayment speed: |
15.8 |
% |
|
11.8 |
% |
Impact on fair value of 10% adverse change |
$ |
(25,310 |
) |
|
$ |
(20,093 |
) |
Impact on fair value of 20% adverse change |
$ |
(48,388 |
) |
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$ |
(38,656 |
) |
Weighted average delinquency: |
2.1 |
% |
|
4.0 |
% |
Impact on fair value of 10% adverse change |
$ |
(1,549 |
) |
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$ |
(3,826 |
) |
Impact on fair value of 20% adverse change |
$ |
(4,237 |
) |
|
$ |
(6,640 |
) |
Weighted average discount rate: |
9.0 |
% |
|
10.1 |
% |
Impact on fair value of 10% adverse change |
$ |
(11,937 |
) |
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$ |
(16,316 |
) |
Impact on fair value of 20% adverse change |
$ |
(23,100 |
) |
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$ |
(31,522 |
) |
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| Components of Servicing Revenue [Table Text Block] |
The following table presents the components of servicing income recorded on the Company’s condensed consolidated statements of comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015:
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Three Months Ended |
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Nine Months Ended |
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September 30, |
|
September 30, |
(in thousands) |
2016 |
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2015 |
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2016 |
|
2015 |
Servicing fee income |
$ |
37,226 |
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$ |
31,073 |
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$ |
104,765 |
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$ |
91,896 |
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Ancillary fee income |
449 |
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|
535 |
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|
1,423 |
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|
1,650 |
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Float income |
1,033 |
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|
402 |
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|
2,469 |
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|
1,067 |
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Total |
$ |
38,708 |
|
|
$ |
32,010 |
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$ |
108,657 |
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$ |
94,613 |
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| Schedule of Total Serviced Mortgage Assets [Table Text Block] |
The following table presents the number of loans and unpaid principal balance of the mortgage assets for which the Company manages the servicing as of September 30, 2016 and December 31, 2015:
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September 30, 2016 |
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December 31, 2015 |
(dollars in thousands) |
Number of Loans |
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Unpaid Principal Balance |
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Number of Loans |
|
Unpaid Principal Balance |
Residential mortgage loans held-for-sale |
1,439 |
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$ |
720,609 |
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|
1,415 |
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$ |
812,661 |
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Residential mortgage loans held-for-investment in securitization trusts |
4,938 |
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|
3,499,285 |
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|
4,329 |
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|
3,117,219 |
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Mortgage servicing rights |
249,032 |
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|
55,080,859 |
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|
241,228 |
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|
48,566,301 |
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Total serviced mortgage assets |
255,409 |
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$ |
59,300,753 |
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|
246,972 |
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$ |
52,496,181 |
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