Annual report pursuant to Section 13 and 15(d)

Servicing Activities (Tables)

v2.4.1.9
Servicing Activities (Tables)
 12 Months Ended
Dec. 31, 2014
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, 2014 and 2013.
 
Year Ended December 31,
(in thousands)
2014
 
2013
Balance at beginning of period
$
514,402

 
$
—

Additions from purchases of servicing rights
67,533

 
500,521

Additions from sales of mortgage loans
288

 
—

Changes in fair value due to:
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
(73,573
)
 
20,651

Other changes in fair value (1)
(54,815
)
 
(6,770
)
Other changes (2)
(1,829
)
 
—

Balance at end of period
$
452,006

 
$
514,402


____________________
(1)
Other changes in fair value primarily represents changes due to the realization of expected cash flows.
(2)
Other changes includes purchase price adjustments, principally contractual prepayment protection, and changes due to the Company’s repurchase 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, 2014 and December 31, 2013, the Company’s key economic assumptions and the sensitivity of the fair value of its MSR to immediate 10% and 20% adverse changes in these assumptions were as follows:
(in thousands)
December 31, 2014
 
December 31, 2013
Weighted average prepayment speed:
11.9
%
 
9.5
%
Impact on fair value of 10% adverse change
$
(14,012
)
 
$
(19,305
)
Impact on fair value of 20% adverse change
$
(31,640
)
 
$
(37,187
)
Weighted average delinquency:
5.6
%
 
4.0
%
Impact on fair value of 10% adverse change
$
(3,616
)
 
$
(8,835
)
Impact on fair value of 20% adverse change
$
(6,780
)
 
$
(17,642
)
Weighted average discount rate:
9.5
%
 
9.0
%
Impact on fair value of 10% adverse change
$
(16,272
)
 
$
(21,037
)
Impact on fair value of 20% adverse change
$
(31,640
)
 
$
(40,642
)
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 for the years ended December 31, 2014 and 2013:
 
Year Ended December 31,
(in thousands)
2014
 
2013
Servicing fee income
$
125,061

 
$
11,807

Ancillary fee income
2,210

 
204

Float income
889

 
—

Total
$
128,160

 
$
12,011

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, 2014 and December 31, 2013:
 
December 31, 2014
 
December 31, 2013
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Mortgage loans held-for-sale
1,008

 
$
534,101

 
2,890

 
$
680,840

Mortgage loans held-for-investment in securitization trusts
487

 
358,458

 
537

 
425,209

Mortgage servicing rights (1)
224,073

 
44,949,061

 
210,441

 
42,324,328

Total serviced mortgage assets
225,568

 
$
45,841,620

 
213,868

 
$
43,430,377


____________________
(1)
Includes mortgage loans held-for-investment in securitization trusts for which the Company is the named servicing administrator.