GOODWILL AND INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following is a summary of goodwill by segment:



(in thousands)	Mortgage Services		Financial Services		Technology Services		Total

Balance, December 31, 2014	$	32,733	$	2,378	$	55,740	$	90,851
Acquisition of CastleLine	30,240		—		—		30,240

Balance, September 30, 2015	$	62,973	$	2,378	$	55,740	$	121,091

During the second quarter of 2014, management evaluated and determined that the Equator goodwill should be tested for impairment as a result of the decline in the fair value of the Equator Earn Out (see Note 5). Consequently, we initiated a quantitative two-step goodwill impairment test by comparing the carrying value of the net assets of Equator to its fair value based on a discounted cash flow analysis. Based on our assessment, we determined that the fair value of Equator was less than its carrying value and goodwill was impaired. Consequently, we recorded an impairment loss of $37.5 million in the second quarter of 2014, which is reflected as a component of selling, general and administrative expenses in the condensed consolidated statements of operations for the nine months ended September 30, 2014 (see Note 17).

Intangible Assets, net

Intangible assets, net consist of the following:



	Weighted average estimated useful life (in years)	Gross carrying amount				Accumulated amortization						Net book value
(in thousands)	Weighted average estimated useful life (in years)	September 30, 2015		December 31, 2014		September 30, 2015			December 31, 2014			September 30, 2015		December 31, 2014

Definite lived intangible assets:
Trademarks and trade names	13	$	13,889	$	13,889	$	(6,240	)	$	(5,016	)	$	7,649	$	8,873
Customer related intangible assets	10	289,308		289,308		(105,041		)	(79,606		)	184,267		209,702
Operating agreement	20	35,000		35,000		(9,917		)	(8,604		)	25,083		26,396
Intellectual property	10	300		300		(48		)	(25		)	252		275

Total		$	338,497	$	338,497	$	(121,246	)	$	(93,251	)	$	217,251	$	245,246

Amortization expense for definite lived intangible assets was $28.0 million and $29.3 million for the nine months ended September 30, 2015 and 2014, respectively ($10.1 million and $9.7 million for the third quarter of 2015 and 2014, respectively). Expected annual definite lived intangible asset amortization for 2015 through 2019 is $39.2 million, $34.4 million, $27.9 million, $24.6 million and $22.3 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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