Quarterly report pursuant to Section 13 or 15(d)

Servicing Activities (Tables)

v3.5.0.2
Servicing Activities (Tables)
6 Months Ended
Jun. 30, 2016
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 three and six months ended June 30, 2016 and 2015.
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands)
2016
 
2015
 
2016
 
2015
Balance at beginning of period
$
446,170

 
$
410,229

 
$
493,688

 
$
452,006

Additions from purchases of servicing rights
55,938

 
4,210

 
106,211

 
8,534

Additions from sales of residential mortgage loans
318

 
589

 
522

 
816

Changes in fair value due to:
 
 
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
(59,074
)
 
24,045

 
(143,433
)
 
(14,124
)
Other changes in fair value (1)
(17,461
)
 
(6,410
)
 
(34,542
)
 
(20,644
)
Other changes (2)
1,922

 
4,913

 
5,367

 
10,988

Balance at end of period
$
427,813

 
$
437,576

 
$
427,813

 
$
437,576

____________________
(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 June 30, 2016 and December 31, 2015, 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)
June 30,
2016
 
December 31,
2015
Weighted average prepayment speed:
18.3
%
 
11.8
%
Impact on fair value of 10% adverse change
$
(27,123
)
 
$
(20,093
)
Impact on fair value of 20% adverse change
$
(51,359
)
 
$
(38,656
)
Weighted average delinquency:
2.8
%
 
4.0
%
Impact on fair value of 10% adverse change
$
(3,123
)
 
$
(3,826
)
Impact on fair value of 20% adverse change
$
(6,246
)
 
$
(6,640
)
Weighted average discount rate:
8.5
%
 
10.1
%
Impact on fair value of 10% adverse change
$
(9,861
)
 
$
(16,316
)
Impact on fair value of 20% adverse change
$
(19,145
)
 
$
(31,522
)
Components of Servicing Revenue [Table Text Block]
The following table presents the components of servicing income recorded on the Company’s condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2016 and 2015:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands)
2016
 
2015
 
2016
 
2015
Servicing fee income
$
34,431

 
$
29,586

 
$
67,540

 
$
60,823

Ancillary fee income
488

 
551

 
973

 
1,115

Float income
897

 
379

 
1,436

 
665

Total
$
35,816

 
$
30,516

 
$
69,949

 
$
62,603

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 June 30, 2016 and December 31, 2015:
 
June 30, 2016
 
December 31, 2015
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Residential mortgage loans held-for-sale
1,226

 
$
602,854

 
1,415

 
$
812,661

Residential mortgage loans held-for-investment in securitization trusts
4,684

 
3,318,888

 
4,329

 
3,117,219

Mortgage servicing rights
271,122

 
55,622,035

 
241,228

 
48,566,301

Total serviced mortgage assets
277,032

 
$
59,543,777

 
246,972

 
$
52,496,181