Quarterly report pursuant to Section 13 or 15(d)

Other Assets (Notes)

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Other Assets (Notes)
 9 Months Ended
Sep. 30, 2013
Other Assets [Abstract]  
Other Assets Disclosure [Text Block]
Other Assets
Other assets as of September 30, 2013 and December 31, 2012 are summarized in the following table:
(in thousands)
September 30,
2013
 
December 31,
2012
Property and equipment at cost
$
2,073

 
$
1,034

Accumulated depreciation (1)
(675
)
 
(251
)
Net property and equipment
1,398

 
783

Mortgage servicing rights, at fair value
15,703

 
—

Prepaid expenses
974

 
1,411

Current income tax receivable
—

 
4,323

Deferred tax assets
—

 
44,184

Intangible assets
1,600

 
—

Servicing advances
5,368

 
—

Other receivables (2)
2,198

 
31,885

Total other assets
$
27,241

 
$
82,586

____________________
(1)
Depreciation expense for the three and nine months ended September 30, 2013 was $168,586 and $424,191, respectively.
(2)
The majority of other receivables at December 31, 2012 are amounts due from the Company’s transfer agent for cash proceeds received upon exercise of warrants by warrant holders on December 31, 2012.

Mortgage Servicing Rights
On April 30, 2013, one of the Company’s wholly owned subsidiaries acquired a company that has seller-servicer approvals from Fannie Mae, Freddie Mac and Ginnie Mae to hold and manage MSRs. The MSRs acquired in conjunction with this acquisition and those subsequently purchased represent the right to service mortgage loans. The Company and its subsidiaries do not originate or directly service mortgage loans, and instead contract with fully licensed subservicers to handle all servicing functions for the loans underlying the Company’s MSRs. The following table summarizes activity related to MSRs, for the three and nine months ended September 30, 2013.
(in thousands)
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
Balance at beginning of period
$
1,452

 
$
—

Additions
13,390

 
14,887

Changes in fair value due to:
 
 
 
Changes in fair value assumptions
—

 
—

Other changes in fair value
861

 
816

Balance at end of period
$
15,703

 
$
15,703



As of September 30, 2013, the MSR portfolio includes approximately 14,000 loans with unpaid principal balance of approximately $1.7 billion.
The following table presents the components of servicing revenue recorded within other income on the Company’s condensed consolidated statements of comprehensive income for the three and nine months ended September 30, 2013:
(in thousands)
Three Months Ended September 30, 2013
 
Nine Months Ended September 30, 2013
Servicing fee income
$
899

 
$
1,114

Ancillary fee income
90

 
120

 
$
989

 
$
1,234