Annual report pursuant to Section 13 and 15(d)

Servicing Activities (Tables)

v3.6.0.2
Servicing Activities (Tables)
 12 Months Ended
Dec. 31, 2016
Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]  
Schedule of Servicing Assets at Fair Value [Table Text Block]
The following table summarizes activity related to MSR for the years ended December 31, 2016, 2015 and 2014.
 
Year Ended
 
December 31,
(in thousands)
2016
 
2015
 
2014
Balance at beginning of period
$
493,688

 
$
452,006

 
$
514,402

Additions from purchases of mortgage servicing rights
312,580

 
124,261

 
67,533

Additions from sales of residential mortgage loans
924

 
1,844

 
288

Subtractions from sales of mortgage servicing rights
(61,511
)
 
—

 
—

Changes in fair value due to:
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
16,572

 
(51,634
)
 
(73,573
)
Other changes in fair value (1)
(78,729
)
 
(47,950
)
 
(54,815
)
Other changes (2)
10,291

 
15,161

 
(1,829
)
Balance at end of period
$
693,815

 
$
493,688

 
$
452,006

____________________
(1)
Other changes in fair value primarily represents changes due to the realization of expected cash flows.
(2)
Other changes includes purchase price adjustments, contractual prepayment protection, and changes due to the Company’s purchase of the underlying collateral.

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]
As of December 31, 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:
(dollars in thousands)
December 31,
2016
 
December 31,
2015
Weighted average prepayment speed:
9.2
%
 
11.8
%
Impact on fair value of 10% adverse change
$
(25,012
)
 
$
(20,093
)
Impact on fair value of 20% adverse change
$
(48,602
)
 
$
(38,656
)
Weighted average delinquency:
1.9
%
 
4.0
%
Impact on fair value of 10% adverse change
$
(1,908
)
 
$
(3,826
)
Impact on fair value of 20% adverse change
$
(3,816
)
 
$
(6,640
)
Weighted average discount rate:
9.4
%
 
10.1
%
Impact on fair value of 10% adverse change
$
(23,590
)
 
$
(16,316
)
Impact on fair value of 20% adverse change
$
(45,861
)
 
$
(31,522
)
Components of Servicing Revenue [Table Text Block]
The following table presents the components of servicing income recorded on the Company’s consolidated statements of comprehensive income (loss) for the years ended December 31, 2016, 2015 and 2014:
 
Year Ended
 
December 31,
(in thousands)
2016
 
2015
 
2014
Servicing fee income
$
138,430

 
$
123,834

 
$
125,061

Ancillary fee income
1,668

 
2,144

 
2,210

Float income
3,518

 
1,434

 
889

Total
$
143,616

 
$
127,412

 
$
128,160

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 December 31, 2016 and December 31, 2015:
 
December 31, 2016
 
December 31, 2015
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Residential mortgage loans held-for-sale
333

 
$
49,986

 
1,415

 
$
812,661

Residential mortgage loans held-for-investment in securitization trusts
4,604

 
3,234,044

 
4,358

 
3,143,515

Mortgage servicing rights
280,185

 
62,827,975

 
241,199

 
48,540,005

Total serviced mortgage assets
285,122

 
$
66,112,005

 
246,972

 
$
52,496,181