Transfers of financial assets and mortgage servicing assets (Tables)

6 Months Ended

Jun. 30, 2011

Initial Fair Value of Assets Obtained as Proceeds from Residential Mortgage Loans Securitized

The following tables present the initial fair value of the assets obtained as proceeds from residential mortgage loans securitized during the quarters and six months ended June 30, 2011 and 2010:

	Proceeds Obtained During the Quarter Ended June 30, 2011
(In thousands)	Level 1		Level 2		Level 3		Initial Fair Value
Assets
Trading account securities:
Mortgage-backed securities - GNMA		—	$	217,296		—	$	217,296
Mortgage-backed securities - FNMA		—		48,229		—		48,229
Total trading account securities		—	$	265,525		—	$	265,525
Mortgage servicing rights		—		—	$	4,890	$	4,890
Total		—	$	265,525	$	4,890	$	270,415
	Proceeds Obtained During the Six Months Ended June 30,  2011
(In thousands)	Level 1		Level 2		Level 3		Initial Fair Value
Assets
Trading account securities:
Mortgage-backed securities - GNMA		—	$	472,870		—	$	472,870
Mortgage-backed securities - FNMA		—		121,247		—		121,247
Total trading account securities		—	$	594,117		—	$	594,117
Mortgage servicing rights		—		—	$	10,839	$	10,839
Total		—	$	594,117	$	10,839	$	604,956

	Proceeds Obtained During the Quarter Ended June 30, 2010
(In thousands)	Level 1		Level 2		Level 3		Initial Fair Value
Assets
Trading account securities:
Mortgage-backed securities - GNMA		—	$	165,675	$	2,518	$	168,193
Mortgage-backed securities - FNMA		—		37,814		—		37,814
Total trading account securities		—	$	203,489	$	2,518	$	206,007
Mortgage servicing rights		—		—	$	3,794	$	3,794
Total		—	$	203,489	$	6,312	$	209,801
	Proceeds Obtained During the Six Months Ended June 30,  2010
(In thousands)	Level 1		Level 2		Level 3		Initial Fair Value
Assets
Investments securities available for sale:
Mortgage-backed securities - GNMA		—		—	$	2,810	$	2,810
Mortgage-backed securities - FNMA		—		—		—		—
Total investment securities available-for-sale		—		—	$	2,810	$	2,810
Trading account securities:
Mortgage-backed securities - GNMA		—	$	327,600	$	4,147	$	331,747
Mortgage-backed securities - FNMA		—		76,506		—		76,506
Total trading account securities		—	$	404,106	$	4,147	$	408,253
Mortgage servicing rights		—		—	$	7,535	$	7,535
Total		—	$	404,106	$	14,492	$	418,598

Changes in MSRs Measured Using the Fair Value Method

The following table presents the changes in MSRs measured using the fair value method for the six months ended June 30, 2011 and 2010.

Residential MSRs
(In thousands)	June 30, 2011			June 30, 2010
Fair value at beginning of period	$	166,907		$	169,747
Purchases		860			4,015
Servicing from securitizations or asset transfers		11,292			7,809
Changes due to payments on loans [1]		(8,397	)		(7,932	)
Changes in fair value due to changes in valuation model inputs or assumptions		(7,852	)		(1,645	)
Other disposals		(191	)		—
Fair value at end of period	$	162,619		$	171,994

[1] Represents the change in the market value of the MSR asset principally due to the impact of portfolio principal runoff during the period. It is computed as the sum of the monthly loan principal collections, curtailments, cancellations and repurchases multiplied by the MSR fair value percentage. A reduction in the loan portfolio balance causes a reduction in the contractual servicing fees for future periods.

Key Economic Assumptions Used in measuring the Servicing Rights Retained at the Date of the Residential Mortgage Loan Securitizations and Whole Loan Sales by the Banking Subsidiaries

Key economic assumptions used in measuring the servicing rights retained at the date of the residential mortgage loan securitizations and whole loan sales by the banking subsidiaries during the quarter ended June 30, 2011 and the year ended December 31, 2010 were as follows:

	June 30, 2011			December 31, 2010
Prepayment speed		4.9	%		5.9	%
Weighted average life		20.3 years			17.1 years
Discount rate (annual rate)		11.5	%		11.4	%

Originated Mortgage Servicing Rights MSR

Fair Value of Purchased MSRs, Their Related Valuation Assumptions and Sensitivity to Immediate Changes in Those Assumptions

Key economic assumptions used to estimate the fair value of MSRs derived from sales and securitizations of mortgage loans performed by the banking subsidiaries and the sensitivity to immediate changes in those assumptions at June 30, 2011 and December 31, 2010 were as follows:

Originated MSRs

(In thousands)	June 30, 2011			December 31, 2010
Fair value of retained interests	$	102,427		$	101,675
Weighted average life		11.7 years			12.5 years
Weighted average prepayment speed (annual rate)		8.6	%		8.0	%
Impact on fair value of 10% adverse change	$	(3,671	)	$	(3,413	)
Impact on fair value of 20% adverse change	$	(7,113	)	$	(6,651	)
Weighted average discount rate (annual rate)		12.6	%		12.8	%
Impact on fair value of 10% adverse change	$	(4,541	)	$	(4,479	)
Impact on fair value of 20% adverse change	$	(8,690	)	$	(8,605	)

Purchased Mortgage Servicing Rights MSR

Fair Value of Purchased MSRs, Their Related Valuation Assumptions and Sensitivity to Immediate Changes in Those Assumptions

The banking subsidiaries also own servicing rights purchased from other financial institutions. The fair value of purchased MSRs, their related valuation assumptions and the sensitivity to immediate changes in those assumptions at June 30, 2011 and December 31, 2010 were as follows:

Purchased MSRs

(In thousands)	June 30, 2011			December 31, 2010
Fair value of retained interests	$	60,192		$	65,232
Weighted average life		11.7 years			12.7 years
Weighted average prepayment speed (annual rate)		8.6	%		7.9	%
Impact on fair value of 10% adverse change	$	(2,502	)	$	(1,963	)
Impact on fair value of 20% adverse change	$	(4,417	)	$	(3,956	)
Weighted average discount rate (annual rate)		11.5	%		11.5	%
Impact on fair value of 10% adverse change	$	(2,789	)	$	(2,353	)
Impact on fair value of 20% adverse change	$	(4,935	)	$	(4,671	)