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Mortgage Banking Activities (Tables)
 6 Months Ended
Jun. 30, 2012
Mortgage Banking [Abstract]  
Mortgage Banking Revenue [Table Text Block]
Mortgage banking revenue was follows (in thousands):

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
2012
 
June 30,
2011
 
June 30,
2012
 
June 30,
2011
Originating and marketing revenue:
 
 
 
 
 
 
 
 
Residential mortgages loan held for sale
 
$
27,706

 
$
10,037

 
$
44,798

 
$
23,373

Residential mortgage loan commitments
 
6,900

 
(702
)
 
9,210

 
542

Forward sales contracts
 
(4,917
)
 
74

 
(1,238
)
 
(6,977
)
Total originating and marketing revenue
 
29,689

 
9,409

 
52,770

 
16,938

Servicing revenue
 
9,859

 
9,947

 
19,856

 
19,774

Total mortgage banking revenue
 
$
39,548

 
$
19,356

 
$
72,626

 
$
36,712
Components of Residential Mortgage Loans Held For Sale
The unpaid principal balance of residential mortgage loans held for sale, notional amounts of derivative contracts related to residential mortgage loans commitments and forward contract sales and their related fair values included in Mortgage loans held for sale on the Consolidated Balance Sheets were (in thousands):

 
 
June 30, 2012
 
December 31, 2011
 
June 30, 2011
 
 
Unpaid Principal Balance/
Notional
 
Fair Value
 
Unpaid Principal Balance/
Notional
 
Fair Value
 
Unpaid
Principal
 Balance/
Notional
 
Fair Value
Residential mortgage loans held for sale
 
$
236,160

 
$
247,893

 
$
177,319

 
$
184,816

 
$
162,579

 
$
167,300

Residential mortgage loan commitments
 
392,247

 
15,807

 
189,770

 
6,597

 
156,209

 
2,793

Forward sales contracts
 
605,856

 
(4,526
)
 
349,447

 
(3,288
)
 
302,526

 
(484
)
 
 
 

 
$
259,174

 
 

 
$
188,125

 
 

 
$
169,609
Summary of Mortgage Servicing Rights
The following represents a summary of mortgage servicing rights (Dollars in thousands):

 
 
June 30,
2012
 
December 31,
2011
 
June 30,
2011
Number of residential mortgage loans serviced for others
 
96,772

 
95,841

 
96,578

Outstanding principal balance of residential mortgage loans serviced for others
 
$
11,564,643

 
$
11,300,986

 
$
11,283,442

Weighted average interest rate
 
4.99
%
 
5.19
%
 
5.36
%
Remaining term (in months)
 
289

 
290

 
291
Activity in Capitalized Mortgage Servicing Rights

There is no active market for trading in mortgage servicing rights after origination. Fair value is determined by discounting the projected net cash flows. Significant assumptions considered significant unobservable inputs used to determine fair value are:

 
 
June 30, 2012
 
December 31,
2011
 
June 30,
2011
Discount rate – risk-free rate plus a market premium
 
10.33%
 
10.34%
 
10.4%
Prepayment rate – based upon loan interest rate, original term and loan type
 
11.44% - 53.10%
 
10.88% - 49.68%
 
10.26% - 38.37%
Loan servicing costs – annually per loan based upon loan type
 
$55 - $105
 
$55 - $105
 
$55 - $105
Escrow earnings rate – indexed to rates paid on deposit accounts with comparable average life
 
0.97%
 
1.21%
 
2.02%
Activity in capitalized mortgage servicing rights during the three months ended June 30, 2012 is as follows
(in thousands):
 
 
Purchased
 
Originated
 
Total
Balance at March 31, 2012
 
$
21,204

 
$
76,934

 
$
98,138

Additions, net
 
—

 
9,275

 
9,275

Change in fair value due to loan runoff
 
(950
)
 
(3,230
)
 
(4,180
)
Change in fair value due to market changes
 
(3,893
)
 
(7,557
)
 
(11,450
)
Balance, June 30, 2012
 
$
16,361

 
$
75,422

 
$
91,783


Activity in capitalized mortgage servicing rights during the six months ended June 30, 2012 is as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance, December 31, 2011
 
$
18,903

 
$
67,880

 
$
86,783

Additions, net
 
—

 
17,647

 
17,647

Change in fair value due to loan runoff
 
(1,960
)
 
(6,364
)
 
(8,324
)
Change in fair value due to market changes
 
(582
)
 
(3,741
)
 
(4,323
)
Balance, June 30, 2012
 
$
16,361

 
$
75,422

 
$
91,783


Activity in capitalized mortgage servicing rights during the three months ended June 30, 2011 is as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance at March 31, 2011
 
$
38,343

 
$
82,002

 
$
120,345

Additions, net
 
—

 
5,798

 
5,798

Change in fair value due to loan runoff
 
(1,218
)
 
(2,240
)
 
(3,458
)
Change in fair value due to market changes
 
(4,259
)
 
(9,234
)
 
(13,493
)
Balance, June 30, 2011
 
$
32,866

 
$
76,326

 
$
109,192


Activity in capitalized mortgage servicing rights during the six months ended June 30, 2011 is as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance, December 31, 2010
 
$
37,900

 
$
77,823

 
$
115,723

Additions, net
 
—

 
10,767

 
10,767

Change in fair value due to loan runoff
 
(2,551
)
 
(4,383
)
 
(6,934
)
Change in fair value due to market changes
 
(2,483
)
 
(7,881
)
 
(10,364
)
Balance, June 30, 2011
 
$
32,866

 
$
76,326

 
$
109,192
Stratification of Loan Servicing Portfolio
Stratification of the residential mortgage loan servicing portfolio and outstanding principal of loans serviced for others by interest rate at June 30, 2012 follows (in thousands):
 
 
< 5.00%
 
5.00% - 5.99%

 
6.00% - 6.99

 
> 6.99%
 
Total
Fair value
 
$
56,754

 
$
28,724

 
$
5,152

 
$
1,153

 
$
91,783

Outstanding principal of loans serviced for others
 
$
5,976,173

 
$
3,652,815

 
$
1,558,553

 
$
377,102

 
$
11,564,643

Weighted average prepayment rate1
 
11.44
%
 
23.88
%
 
20.00
%
 
46.08
%
 
21.50
%
1 
Annual prepayment estimates based upon loan interest rate, original term and loan type
Aging Status of Mortgage Loans Serviced For Others
The aging status of our mortgage loans serviced for others by investor at June 30, 2012 follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
Current
 
30 to 59
Days
 
60 to 89
Days
 
90 Days or More
 
Total
FHLMC
 
$
5,000,735

 
$
47,486

 
$
13,663

 
$
46,600

 
$
5,108,484

FNMA
 
1,961,099

 
21,050

 
5,632

 
20,711

 
2,008,492

GNMA
 
3,764,570

 
129,482

 
34,188

 
27,953

 
3,956,193

Other
 
464,850

 
9,930

 
3,056

 
13,638

 
491,474

Total
 
$
11,191,254

 
$
207,948

 
$
56,539

 
$
108,902

 
$
11,564,643
Activity in Allowance for Losses On Loans Sold With Recourse
The activity in the allowance for losses on loans sold with recourse included in Other liabilities in the Consolidated Balance Sheets is summarized as follows (in thousands):

 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
 
June 30,
 
 
2012
 
2011
 
2012
 
2011
Beginning balance
 
$
18,651

 
$
16,487

 
$
18,683

 
$
16,667

Provision for recourse losses
 
768

 
2,532

 
2,440

 
3,326

Loans charged off, net
 
(1,587
)
 
(1,479
)
 
(3,291
)
 
(2,453
)
Ending balance
 
$
17,832

 
$
17,540

 
$
17,832

 
$
17,540