Annual report pursuant to Section 13 and 15(d)

Servicing Activities (Tables)

v3.3.1.900
Servicing Activities (Tables)
 12 Months Ended
Dec. 31, 2015
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, 2015, 2014 and 2013.
 
Year Ended
 
December 31,
(in thousands)
2015
 
2014
 
2013
Balance at beginning of period
$
452,006

 
$
514,402

 
$
—

Additions from purchases of servicing rights
124,261

 
67,533

 
500,521

Additions from sales of residential mortgage loans
1,844

 
288

 
—

Changes in fair value due to:
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
(51,634
)
 
(73,573
)
 
20,651

Other changes in fair value (1)
(47,950
)
 
(54,815
)
 
(6,770
)
Other changes (2)
15,161

 
(1,829
)
 
—

Balance at end of period
$
493,688

 
$
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, 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, 2015 and December 31, 2014, 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:
(in thousands)
December 31, 2015
 
December 31, 2014
Weighted average prepayment speed:
11.8
%
 
11.9
%
Impact on fair value of 10% adverse change
$
(20,093
)
 
$
(14,012
)
Impact on fair value of 20% adverse change
$
(38,656
)
 
$
(31,640
)
Weighted average delinquency:
4.0
%
 
5.6
%
Impact on fair value of 10% adverse change
$
(3,826
)
 
$
(3,616
)
Impact on fair value of 20% adverse change
$
(6,640
)
 
$
(6,780
)
Weighted average discount rate:
10.1
%
 
9.5
%
Impact on fair value of 10% adverse change
$
(16,316
)
 
$
(16,272
)
Impact on fair value of 20% adverse change
$
(31,522
)
 
$
(31,640
)
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 (loss) income for the years ended December 31, 2015, 2014 and 2013:
 
Year Ended
 
December 31,
(in thousands)
2015
 
2014
 
2013
Servicing fee income
$
123,834

 
$
125,061

 
$
11,807

Ancillary fee income
2,144

 
2,210

 
204

Float income
1,434

 
889

 
—

Total
$
127,412

 
$
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, 2015 and December 31, 2014:
 
December 31, 2015
 
December 31, 2014
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Residential mortgage loans held-for-sale
1,415

 
$
812,661

 
1,008

 
$
534,101

Residential mortgage loans held-for-investment in securitization trusts
413

 
297,379

 
487

 
358,458

Mortgage servicing rights (1)
245,144

 
51,386,141

 
224,073

 
44,949,061

Total serviced mortgage assets
246,972

 
$
52,496,181

 
225,568

 
$
45,841,620


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