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Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2013

Schedule Of Changes In Mortgage Servicing Rights

The following table presents the changes in the Company’s mortgage servicing rights (“MSR”) for the three and nine months ended September 30, 2013 and 2012:

(in thousands)



	Three months ended						Nine months ended
	September 30,						September 30,
	2013			2012			2013			2012
Balance, beginning of period	$	38,192		$	22,513		$	27,428		$	18,184
Additions for new mortgage servicing rights capitalized	4,072			5,642			15,182			11,923
Changes in fair value:
Due to changes in model inputs or assumptions(1)	3,406			(2,770		)	3,739			(3,833		)
Other(2)	(3,817		)	(896		)	(4,496		)	(1,785		)
Balance, end of period	$	41,853		$	24,489		$	41,853		$	24,489


(1)	Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.


(2)	Represents changes due to collection/realization of expected cash flows over time.

Schedule Of Other Information Servicing Loan Portfolio

Information related to our serviced loan portfolio as of September 30, 2013 and December 31, 2012 is as follows:

(dollars in thousands)



	September 30, 2013			December 31, 2012
Balance of loans serviced for others	$	4,195,759		$	3,162,080
MSR as a percentage of serviced loans	1.00		%	0.87		%

Key Assumptions Used In Measuring The Fair Value of MSR

Key assumptions used in measuring the fair value of MSR as of September 30, 2013 and December 31, 2012 are as follows:



	September 30, 2013		December 31, 2012
Constant prepayment rate	16.04	%	21.39	%
Discount rate	8.69	%	8.65	%
Weighted average life (years)	4.9		4.7

Sensitivity Analysis of Current Fair Value to Changes in Discount and Prepayment Speed Assumptions

A sensitivity analysis of the current fair value to changes in discount and prepayment speed assumptions as of September 30, 2013 and December 31, 2012 is as follows:



	September 30, 2013			December 31, 2012
Constant prepayment rate
Effect on fair value of a 10% adverse change	$	(2,232	)	$	(1,445	)
Effect on fair value of a 20% adverse change	$	(4,268	)	$	(2,754	)

Discount rate
Effect on fair value of a 100 basis point adverse change	$	(1,561	)	$	(889	)
Effect on fair value of a 200 basis point adverse change	$	(3,017	)	$	(1,720	)

- Definition

Tabular disclosure of all information related to the key inputs and assumptions used in measuring the fair value of assets obtained or liabilities incurred, as the result of a sale of financial assets, relating to the transferor's continuing involvement, if any, at the time of securitization, asset-backed financing arrangement, or similar transfer (including at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses, including expected static pool losses).

+ References+ Details

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References+ Details

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References+ Details