GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill primarily relates to the acquisitions of Equator, Owners.com and Mortgage Builder, discussed in Note 5, Springhouse, LLC and Tracmail acquired in 2011 and MPA acquired in 2010. Changes in goodwill during the years ended December 31, 2014 and 2013 are summarized below:



(in thousands)	Mortgage Services		Financial Services		Technology Services			Total

Balance, January 1, 2013	$	10,919	$	2,378	$	1,618		$	14,915
Acquisition of Equator	—		—		82,460			82,460
Acquisition of Homeward⁽¹⁾	2,039		—		—			2,039
Balance, December 31, 2013	12,958		2,378		84,078			99,414
Acquisition of Mortgage Builder	—		—		9,135			9,135
Acquisition of Owners.com	19,775		—		—			19,775
Impairment of Equator goodwill⁽²⁾	—		—		(37,473		)	(37,473		)

Balance, December 31, 2014	$	32,733	$	2,378	$	55,740		$	90,851

(1) December 31, 2013 goodwill has been revised to reflect a purchase accounting measurement period adjustment related to the

Homeward acquisition. See Note 5.

⁽²⁾See Note 5 for a discussion of the Equator goodwill impairment.

Intangible Assets, Net

Intangible assets relate to our acquisitions of the Homeward and ResCap fee-based businesses, Equator, Mortgage Builder, Owners.com, MPA and Nationwide Credit, Inc. (“NCI”). No impairment charges were taken during the periods presented.

Intangible assets, net consist of the following as of December 31, 2014 and 2013:



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	2014		2013		2014			2013			2014		2013

Definite lived intangible assets:
Trademarks and trade names	13	$	13,889	$	12,249	$	(5,016	)	$	(4,534	)	$	8,873	$	7,715
Customer related intangible assets	10	289,308		284,484		(79,606		)	(44,208		)	209,702		240,276
Operating agreement	20	35,000		35,000		(8,604		)	(6,854		)	26,396		28,146
Non-compete agreement	4	—		1,300		—			(1,275		)	—		25
Intellectual property	10	300		—		(25		)	—			275		—

Total		$	338,497	$	333,033	$	(93,251	)	$	(56,871	)	$	245,246	$	276,162

Amortization expense for definite lived intangible assets was $37.7 million, $28.2 million and $5.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. Expected annual definite lived intangible asset amortization for 2015 through 2019 is $39.4 million, $34.2 million, $30.0 million, $26.1 million and $23.0 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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