Investment In Equity Affiliate

12 Months Ended

Dec. 31, 2011

Investment In Equity Affiliate [Abstract]

INVESTMENT IN EQUITY AFFILIATE

9. INVESTMENT IN EQUITY AFFILIATE

Correspondent One S.A. (“Correspondent One™”) facilitates the purchase of closed conforming and government guaranteed residential mortgages from approved mortgage bankers. Correspondent One provides members of Lenders One additional avenues to sell loans beyond Lenders One’s preferred investor arrangements and the members’ own network of loan buyers. We have significant influence over the general operations of Correspondent One consistent with our 49% ownership level and therefore account for our investment under the equity method. As of December 31, 2011 we have no additional funding commitments to Correspondent One.

Correspondent One is in the initial phases of building its operations and therefore is expected to operate at a loss into 2012. The net loss on this investment using the equity method was $0.5 million for the year ended December 31, 2011. The following table presents summarized financial information for Correspondent One which had no revenues as of December 31, 2011 except for interest income as no loans were sold:

		September 30,
(in thousands)	Year Ended December 31, 2011
Net loss	$	(1,087	)
	As of December  31,2011
Current Assets	$	29,600
Non Current Assets		524
Current Liabilities		461
Equity		29,663