XML 28 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
MORTGAGE SERVICING RIGHTS
 9 Months Ended
Sep. 30, 2017
Transfers and Servicing [Abstract]  
MORTGAGE SERVICING RIGHTS
7.   MORTGAGE SERVICING RIGHTS
 
The Company invests in MSRs and elected to carry them at fair value. The following table presents activity related to MSRs for the three and nine months ended September 30, 2017:
 
 
Three Months Ended
  
Nine Months Ended
 
September 30, 2017
  
September 30, 2016
  
September 30, 2017
  
September 30, 2016
 
(dollars in thousands)
Fair value, beginning of period
$
605,653
    
$
—
    
$
652,216
    
$
—
  
Obtained through Hatteras Acquisition
—
    
355,820
    
—
    
355,820
  
Purchases (1)
(30
)
  
131,729
    
(27
)
  
131,729
  
Other
10
    
—
    
10
    
—
  
Change in fair value due to:
              
Changes in valuation inputs or assumptions (2)
(19,207
)
  
26,254
    
(34,645
)
  
26,254
  
Other changes, including realization of expected cash flows
(16,208
)
  
(21,634
)
  
(47,336
)
  
(21,634
)
Fair value, end of period
$
570,218
    
$
492,169
    
$
570,218
    
$
492,169
  
 
(1)
Includes adjustments to original purchase price from early payoffs, defaults, or loans that were delivered but were deemed to not be acceptable.
(2)
Principally represents changes in discount rates and prepayment speed inputs used in valuation model, primarily due to changes in interest rates.

 
For the three and nine months ended September 30, 2017, the Company recognized $31.9 million and $99.7 million, respectively, of net servicing income from MSRs in Other income (loss) in the Consolidated Statements of Comprehensive Income (Loss). For the three and nine months ended September 30, 2016, the Company recognized $26.2 million of net servicing income from MSRs in Other income (loss) in the Consolidated Statements of Comprehensive Income (Loss).