Annual report pursuant to Section 13 and 15(d)

Servicing Activities (Tables)

v3.8.0.1
Servicing Activities (Tables)
 12 Months Ended
Dec. 31, 2017
Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]  
Schedule of Servicing Assets at Fair Value
The following table summarizes activity related to MSR for the years ended December 31, 2017, 2016 and 2015.
 
Year Ended
 
December 31,
(in thousands)
2017
 
2016
 
2015
Balance at beginning of period
$
693,815

 
$
493,688

 
$
452,006

Additions from purchases of mortgage servicing rights
499,866

 
312,580

 
124,261

Additions from sales of residential mortgage loans
20

 
924

 
1,844

Subtractions from sales of mortgage servicing rights
(946
)
 
(61,511
)
 
—

Changes in fair value due to:
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
6,339

 
16,572

 
(51,634
)
Other changes in fair value (1)
(96,781
)
 
(78,729
)
 
(47,950
)
Other changes (2)
(15,596
)
 
10,291

 
15,161

Balance at end of period
$
1,086,717

 
$
693,815

 
$
493,688

____________________
(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
As of December 31, 2017 and December 31, 2016, 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,
2017
 
December 31,
2016
Weighted average prepayment speed:
9.8
%
 
9.2
%
Impact on fair value of 10% adverse change
$
(40,100
)
 
$
(25,012
)
Impact on fair value of 20% adverse change
$
(27,421
)
 
$
(48,602
)
Weighted average delinquency:
1.7
%
 
1.9
%
Impact on fair value of 10% adverse change
$
(4,274
)
 
$
(1,908
)
Impact on fair value of 20% adverse change
$
(8,875
)
 
$
(3,816
)
Weighted average discount rate:
9.9
%
 
9.4
%
Impact on fair value of 10% adverse change
$
(35,137
)
 
$
(23,590
)
Impact on fair value of 20% adverse change
$
(68,246
)
 
$
(45,861
)
Components of Servicing Revenue
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, 2017, 2016 and 2015:
 
Year Ended
 
December 31,
(in thousands)
2017
 
2016
 
2015
Servicing fee income
$
197,902

 
$
138,430

 
$
123,834

Ancillary and other fee income
1,009

 
1,631

 
2,130

Float income
10,154

 
3,518

 
1,434

Total
$
209,065

 
$
143,579

 
$
127,398

Schedule of Total Serviced Mortgage Assets
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, 2017 and December 31, 2016:
 
December 31, 2017
 
December 31, 2016
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Mortgage servicing rights
454,028

 
$
101,344,054

 
280,185

 
$
62,827,975

Residential mortgage loans in securitization trusts
3,845

 
2,618,016

 
—

 
—

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

 
—

 
4,604

 
3,234,044

Residential mortgage loans held-for-sale
236

 
37,632

 
333

 
49,986

Total serviced mortgage assets
458,109

 
$
103,999,702

 
285,122

 
$
66,112,005