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Mortgage Banking Operations (Tables)
 3 Months Ended
Mar. 31, 2015
Mortgage Banking [Abstract]  
Loans held for sale and sold
Loans held for sale consisted of the following.
 
(in thousands)
At March 31,
2015
 
At December 31,
2014
 
 
 
 
Single family
$
856,123

 
$
610,350

Multifamily
9,199

 
10,885

 
$
865,322

 
$
621,235



Loans sold consisted of the following.
 
 
Three Months Ended March 31,
(in thousands)
2015
 
2014
 
 
 
 
Single family
$
1,316,959

 
$
619,913

Multifamily
26,173

 
6,263

 
$
1,343,132

 
$
626,176
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 March 31,
(in thousands)
2015
 
2014
 
 
 
 
Single family:
 
 
 
Servicing value and secondary market gains(1)
$
56,289

 
$
19,559

Loan origination and funding fees
4,455

 
4,761

Total single family
60,744

 
24,320

Multifamily
939

 
396

Other
204

 
794

Total net gain on mortgage loan origination and sale activities
$
61,887

 
$
25,510

 
(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 changes in the Company's repurchase liability for loans that have been sold.

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 March 31,
2015
 
At December 31,
2014
 
 
 
 
Single family
 
 
 
U.S. government and agency
$
11,275,491

 
$
10,630,864

Other
634,763

 
585,344

 
11,910,254

 
11,216,208

Commercial
 
 
 
Multifamily
773,092

 
752,640

Other
83,574

 
82,354

 
856,666

 
834,994

Total loans serviced for others
$
12,766,920

 
$
12,051,202
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 March 31,
(in thousands)
2015
 
2014
 
 
 
 
Balance, beginning of period
$
1,956

 
$
1,260

Additions (1)
487

 
239

Realized losses (2)
(332
)
 
(357
)
Balance, end of period
$
2,111

 
$
1,142

 
(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.
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 March 31,
(in thousands)
2015
 
2014
 
 
 
 
Servicing income, net:
 
 
 
Servicing fees and other
$
9,063

 
$
9,849

Changes in fair value of single family MSRs due to modeled amortization (1)
(9,235
)
 
(5,968
)
Amortization of multifamily MSRs
(454
)
 
(424
)
 
(626
)
 
3,457

Risk management, single family MSRs:
 
 
 
Changes in fair value due to changes in model inputs and/or assumptions (2)
(7,311
)

(5,409
)
Net gain (loss) from derivatives economically hedging MSR
12,234

 
9,897

 
4,923

 
4,488

Mortgage servicing income
$
4,297

 
$
7,945

 
(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 March 31,
(rates per annum) (1)
2015
 
2014
 
 
 
 
Constant prepayment rate ("CPR") (2)
16.13
%
 
11.39
%
Discount rate
10.32
%
 
10.42
%
 
(1)
Weighted average rates for sales during the period for sales of loans with similar characteristics.
(2)
Represents the expected lifetime average.
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 March 31, 2015
 
 
Fair value of single family MSR
$
110,709

Expected weighted-average life (in years)
4.15

Constant prepayment rate (1)
20.23
%
Impact on 25 basis points adverse change
$
(8,686
)
Impact on 50 basis points adverse change
$
(17,112
)
Discount rate
10.60
%
Impact on fair value of 100 basis points increase
$
(2,885
)
Impact on fair value of 200 basis points increase
$
(5,628
)
 
(1)
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 March 31,
(in thousands)
2015
 
2014
 
 
 
 
Beginning balance
$
112,439

 
$
153,128

Originations
14,813

 
7,893

Purchases
3

 
2

Changes due to modeled amortization(1)
(9,235
)
 
(5,968
)
Net additions and amortization
5,581

 
1,927

Changes in fair value due to changes in model inputs and/or assumptions (2)
(7,311
)
 
(5,409
)
Ending balance
$
110,709

 
$
149,646

 
(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 March 31,
(in thousands)
2015
 
2014
 
 
 
 
Beginning balance
$
10,885

 
$
9,335

Origination
582

 
183

Amortization
(454
)
 
(423
)
Ending balance
$
11,013

 
$
9,095
Projected amortization expense for the gross carrying value of multifamily MSRs
Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows.
 
(in thousands)
At March 31, 2015
 
 
Remainder of 2015
$
1,354

2016
1,709

2017
1,586

2018
1,429

2019
1,319

2020 and thereafter
3,616

Carrying value of multifamily MSR
$
11,013