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Mortgage Banking Operations (Tables)
 6 Months Ended
Jun. 30, 2013
Mortgage Banking [Abstract]  
Net gain on mortgage loan origination and sale activity
Net gain on mortgage loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Single family:
 
 
 
 
 
 
 
Servicing value and secondary marketing gains(1)
$
43,448

 
$
40,548

 
$
87,683

 
$
64,328

Provision for repurchase losses(2)
—

 
(1,930
)
 
—

 
(2,320
)
Net gain from secondary marketing activities
43,448

 
38,618

 
87,683

 
62,008

Loan origination and funding fees
8,267

 
7,142

 
16,062

 
12,138

Total single family
51,715

 
45,760

 
$
103,745

 
$
74,146

Multifamily
709

 
1,039

 
2,634

 
$
2,201

Total net gain on mortgage loan origination and sale activities
$
52,424

 
$
46,799

 
$
106,379

 
$
76,347

 
(1)
Comprised of gains and losses on interest rate lock commitments (which considers the value of servicing), single family loans held for sale, forward sale commitments used to economically hedge secondary market activities, and the estimated fair value of the repurchase or indemnity obligation recognized on new loan sales.
(2)
Represents changes in estimated probable future repurchase losses on previously sold loans.
Loans held for sale and sold
Loans held for sale consisted of the following.
 
(in thousands)
At June 30,
2013
 
At December 31,
2012
 
 
 
 
Single family
$
459,981

 
$
607,578

Multifamily
11,210

 
13,221

 
$
471,191

 
$
620,799

Loans sold consisted of the following.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Single family
$
1,229,686

 
$
962,704

 
$
2,590,030

 
$
1,497,015

Multifamily
15,386

 
27,178

 
65,973

 
58,601

 
$
1,245,072

 
$
989,882

 
$
2,656,003

 
$
1,555,616
Company's portfolio of loans serviced for others
The composition of loans serviced for others is presented below at the unpaid principal balance.

(in thousands)
At June 30,
2013
 
At December 31,
2012
 
 
 
 
Single family
 
 
 
U.S. government and agency MBS
$
10,063,558

 
$
8,508,458

Other
341,055

 
362,230

 
10,404,613

 
8,870,688

Commercial
 
 
 
Multifamily
720,368

 
727,118

Other
51,058

 
53,235

 
771,426

 
780,353

Total loans serviced for others
$
11,176,039

 
$
9,651,041
Revenue from mortgage servicing, including the effects of derivative risk management instruments
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Servicing income, net:
 
 
 
 
 
 
 
Servicing fees and other
$
7,955

 
$
6,705

 
$
15,562

 
$
13,142

Changes in fair value of single family MSRs due to modeled amortization (1)
(6,569
)
 
(4,052
)
 
(11,675
)
 
(9,022
)
Amortization of multifamily MSRs
(423
)
 
(462
)
 
(913
)
 
(953
)
 
963

 
2,191

 
2,974

 
3,167

Risk management, single family MSRs:
 
 
 
 
 
 
 
Changes in fair value due to changes in model inputs and/or assumptions (2)
14,725

 
(15,354
)
 
18,304

 
(7,942
)
Net gain (loss) from derivatives economically hedging MSR
(13,505
)
 
20,254

 
(16,023
)
 
19,739

 
1,220

 
4,900

 
2,281

 
11,797

Mortgage servicing income
$
2,183

 
$
7,091

 
$
5,255

 
$
14,964

 
(1)
Represents changes due to collection/realization of expected cash flows and curtailments.
(2)
Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
Key economic assumptions used in measuring the initial value of capitalized single family MSRs created from loan sales with retained servicing Key economic assumptions used in measuring the initial value of capitalized single family MSRs created from loan sales with retained servicing.
Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(rates per annum) (1)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Constant prepayment rate ("CPR") (2)
8.77
%
 
11.36
%
 
9.12
%
 
10.68
%
Discount rate
10.28
%
 
10.28
%
 
10.27
%
 
10.33
%
 
(1)
Weighted average rates for sales during the period for sales of loans with similar characteristics.
(2)
Represents the expected lifetime average.
Changes in single family MSRs measured at fair value
The changes in single family MSRs measured at fair value are as follows.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Beginning balance
$
102,678

 
$
79,381

 
$
87,396

 
$
70,169

Additions and amortization:
 
 
 
 
 
 
 
Originations
17,306

 
10,598

 
34,112

 
17,321

Purchases
6

 
12

 
9

 
59

Changes due to modeled amortization(1)
(6,569
)
 
(4,052
)
 
(11,675
)
 
(9,022
)
Net additions and amortization
10,743

 
6,558

 
22,446

 
8,358

Changes in fair value due to changes in model inputs and/or assumptions (2)
14,725

 
(15,354
)
 
18,304

 
(7,942
)
Ending balance
$
128,146

 
$
70,585

 
$
128,146

 
$
70,585

 
(1)
Represents changes due to collection/realization of expected cash flows and curtailments.
(2)
Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
Changes in multifamily MSRs measured at the lower of amortized cost or fair value
The changes in multifamily MSRs measured at the lower of amortized cost or fair value were as follows.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Beginning balance
$
9,150

 
$
7,420

 
$
8,097

 
$
7,112

Origination
512

 
697

 
2,055

 
1,496

Amortization
(423
)
 
(462
)
 
(913
)
 
(953
)
Ending balance
$
9,239

 
$
7,655

 
$
9,239

 
$
7,655
Projected amortization expense for the gross carrying value of multifamily MSRs
At June 30, 2013, the expected weighted-average life of the Company’s multifamily MSRs was 9.06 years. Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows.
 
(in thousands)
At June 30, 2013
 
 
Remainder of 2013
$
823

2014
1,509

2015
1,340

2016
1,226

2017
1,101

2018 and thereafter
3,240

Carrying value of multifamily MSR
$
9,239
Mortgage Repurchase Losses [Table Text Block]
The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses.

 
Three Months Ended June 30,
 
Six Months Ended June 30,
(in thousands)
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
Beginning balance
$
1,975

 
$
861

 
$
1,955

 
$
471

Additions (1)
472

 
2,215

 
1,008

 
2,605

Realized losses (2)
(637
)
 
(957
)
 
(1,153
)
 
(957
)
Balance, end of period
$
1,810

 
$
2,119

 
$
1,810

 
$
2,119

 
(1)
Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2)
Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expense.
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]
Key economic assumptions and the sensitivity of the current fair value for single family MSRs to immediate adverse changes in those assumptions were as follows.

(dollars in thousands)
At June 30, 2013
 
 
Fair value of single family MSR
$
128,146

Expected weighted-average life (in years)
6.58

Constant prepayment rate (1)
12.48
%
Impact on 10% adverse change
$
(5,361
)
Impact on 25% adverse change
$
(11,042
)
Discount rate
10.50
%
Impact on fair value of 100 basis points increase
$
(4,665
)
Impact on fair value of 200 basis points increase
$
(9,011
)
 
(1)
Represents the expected lifetime average.