Quarterly report pursuant to Section 13 or 15(d)

Federal Home Loan Bank Advances (Notes)

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Federal Home Loan Bank Advances (Notes)
 9 Months Ended
Sep. 30, 2014
Advances from Federal Home Loan Banks [Abstract]  
Federal Home Loan Bank Advances, Disclosure [Text Block]
Federal Home Loan Bank of Des Moines Advances
In December 2013, the Company’s wholly owned subsidiary, TH Insurance Holdings, was accepted for membership in the FHLB. As a member of the FHLB, TH Insurance Holdings has access to a variety of products and services offered by the FHLB, including secured advances. As of September 30, 2014, TH Insurance Holdings had $1.5 billion in outstanding secured advances with a weighted average borrowing rate of 0.4%, and had an additional $1.0 billion of available uncommitted credit for borrowings due to an increase in capacity granted by the FHLB. To the extent TH Insurance Holdings has unused capacity, it may be adjusted at the sole discretion of the FHLB. As of December 31, 2013, TH Insurance Holdings had not requested any secured advances and had $1.0 billion of available uncommitted credit for borrowings.
The ability to borrow from the FHLB is subject to the Company’s continued creditworthiness, pledging of sufficient eligible collateral to secure advances, and compliance with certain agreements with the FHLB. Each advance requires approval by the FHLB and is secured by collateral in accordance with the FHLB’s credit and collateral guidelines, as may be revised from time to time by the FHLB. Eligible collateral may include conventional 1-4 family residential mortgage loans, Agency RMBS and certain non-Agency RMBS with an A rating and above.
At September 30, 2014, FHLB advances had the following remaining maturities:
(in thousands)
September 30,
2014
≤ 1 year
$
33,738

> 1 and ≤ 3 years
651,238

> 3 and ≤ 5 years
815,024

Total
$
1,500,000


The following table summarizes assets at carrying values that are pledged or restricted as collateral for the future payment obligations of FHLB advances:
(in thousands)
September 30,
2014
Available-for-sale securities, at fair value
$
1,221,412

Mortgage loans held-for-sale, at fair value
387,083

Net economic interests in consolidated securitization trusts (1)
85,782

Total
$
1,694,277

____________________
(1)
Includes the retained interests from the Company’s on-balance sheet securitizations, which are eliminated in consolidation in accordance with U.S. GAAP.

The FHLB retains the right to mark the underlying collateral for FHLB advances to fair value. A reduction in the value of pledged assets would require the Company to provide additional collateral. In addition, as a condition to membership in the FHLB, the Company is required to purchase and hold a certain amount of FHLB stock, which is based, in part, upon the outstanding principal balance of advances from the FHLB. At September 30, 2014 and December 31, 2013, the Company had stock in the FHLB totaling $60.0 million and $10,000, respectively, which is included in other assets on the condensed consolidated balance sheet at September 30, 2014 and December 31, 2013.