XML 116 R41.htm IDEA: XBRL DOCUMENT v2.4.0.8
Mortgage Servicing (Tables)
6 Months Ended
Jun. 30, 2014
Transfers and Servicing [Abstract]  
Schedule of Activity Related to MSRs - Amortization Method
The following tables summarize the activity in the carrying value of amortization method servicing assets for the six months ended June 30:
 
 
2014
 
2013
Beginning balance
 
$
1,953,352

 
$
678,937

Additions recognized in connection with business acquisitions:
 
 

 
 

OSI (1)
 
9,008

 

ResCap Acquisition (1)
 
11,370

 
393,891

Liberty Acquisition (1)
 

 
2,532

Additions recognized in connection with asset acquisitions:
 
 
 
 
Ally MSR Transaction
 

 
679,974

OneWest MSR Transaction (2)
 
1,516

 

Greenpoint MSR Transaction (3)
 
3,689

 

Other
 
4,489

 
2,422

Additions recognized on the sale of mortgage loans
 
39,802

 
46,892

Servicing transfers and adjustments
 
(434
)
 
1,970

Amortization (4)
 
(125,292
)
 
(118,580
)
Ending balance
 
$
1,897,500

 
$
1,688,038

 
 
 
 
 
Estimated fair value at end of period
 
$
2,391,873

 
$
2,269,985

(1)
See Note 3 – Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.
(2)
The acquired MSRs relate to mortgage loans with a UPB of $1.1 billion and related servicing advances of $34.3 million acquired in the final closing of the OneWest MSR Transaction. The OneWest MSR Transaction closed in stages, and the majority of loans were boarded onto our primary servicing platform as of December 31, 2013.
(3)
The acquired MSRs relate to mortgage loans with a UPB of $948.9 million and related servicing advances of $47.6 million.
(4)
In the unaudited Consolidated Statements of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations, if any.
Schedule of Activity Related to MSRs - Fair Value Measurement Method
The following table summarizes the activity related to fair value servicing assets for the six months ended June 30:
 
2014
 
2013
Beginning balance
$
116,029

 
$
85,213

Changes in fair value (1):
 
 
 
Changes in assumptions
(9,014
)
 
20,680

Realization of cash flows and other changes
(2,795
)
 
(8,730
)
Ending balance
$
104,220

 
$
97,163

(1)
Changes in fair value are recognized in Servicing and origination expense in the unaudited Consolidated Statements of Operations.
Schedule of Estimated Change in the Fair Value of Our MSRs
The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of June 30, 2014 given hypothetical instantaneous parallel shifts in the yield curve:
 
Adverse change in fair value
 
10%
 
20%
Weighted average prepayment speeds
$
(8,680
)
 
$
(16,967
)
Discount rate (Option-adjusted spread)
$
(4,138
)
 
$
(7,979
)
Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced
The following table presents the composition of our primary servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents loans for which we own the MSRs while subservicing represents all other loans. The UPB of assets serviced for others are not included on our unaudited Consolidated Balance Sheets.
 
Residential
 
Commercial
 
Total
UPB at June 30, 2014
 

 
 

 
 

Servicing (1)
$
379,570,649

 
$

 
$
379,570,649

Subservicing
55,549,199

 
286,546

 
55,835,745

 
$
435,119,848

 
$
286,546

 
$
435,406,394

UPB at December 31, 2013
 

 
 

 
 

Servicing (1)
$
397,546,635

 
$

 
$
397,546,635

Subservicing
67,104,697

 
400,502

 
67,505,199

 
$
464,651,332

 
$
400,502

 
$
465,051,834

UPB at June 30, 2013
 

 
 

 
 

Servicing (1)
$
344,173,439

 
$

 
$
344,173,439

Subservicing
92,081,944

 
452,042

 
92,533,986

 
$
436,255,383

 
$
452,042

 
$
436,707,425

(1)
Includes primary servicing UPB of $166.1 billion, $175.1 billion and $99.8 billion at June 30, 2014, December 31, 2013 and June 30, 2013, respectively, for which the Rights to MSRs have been sold to HLSS.
Schedule of Components of Servicing and Subservicing Fees
The following table presents the components of servicing and subservicing fees for the three and six months ended June 30:
 
Three Months
 
Six Months
 
2014
 
2013
 
2014
 
2013
Loan servicing and subservicing fees:
 
 
 
 
 
 
 
Servicing
$
355,665

 
$
318,149

 
$
707,487

 
$
551,620

Subservicing
30,609

 
45,590

 
64,334

 
80,147

 
386,274

 
363,739

 
771,821

 
631,767

Home Affordable Modification Program (HAMP) fees
36,657

 
38,051

 
73,356

 
78,198

Late charges
32,533

 
29,589

 
69,368

 
55,485

Loan collection fees
8,624

 
7,755

 
16,918

 
14,137

Custodial accounts (float earnings)
1,683

 
2,110

 
3,404

 
3,790

Other
25,902

 
41,388

 
47,265

 
66,748

 
$
491,673

 
$
482,632

 
$
982,132

 
$
850,125