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

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
2012
 
September 30,
2011
 
September 30,
2012
 
September 30,
2011
Originating and marketing revenue:
 
 
 
 
 
 
 
 
Residential mortgages loan held for sale
 
$
40,463

 
$
16,142

 
$
85,261

 
$
39,515

Residential mortgage loan commitments
 
6,512

 
8,383

 
15,722

 
8,925

Forward sales contracts
 
(6,618
)
 
(4,822
)
 
(7,856
)
 
(11,799
)
Total originating and marketing revenue
 
40,357

 
19,703

 
93,127

 
36,641

Servicing revenue
 
9,909

 
9,790

 
29,765

 
29,564

Total mortgage banking revenue
 
$
50,266

 
$
29,493

 
$
122,892

 
$
66,205
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):

 
 
September 30, 2012
 
December 31, 2011
 
September 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
 
$
294,794

 
$
313,927

 
$
177,319

 
$
184,816

 
$
239,439

 
$
250,527

Residential mortgage loan commitments
 
452,129

 
22,319

 
189,770

 
6,597

 
313,574

 
11,176

Forward sales contracts
 
722,043

 
(11,144
)
 
349,447

 
(3,288
)
 
541,764

 
(5,306
)
 
 
 

 
$
325,102

 
 

 
$
188,125

 
 

 
$
256,397
Summary of Mortgage Servicing Rights
The following represents a summary of mortgage servicing rights (Dollars in thousands):

 
 
September 30,
2012
 
December 31,
2011
 
September 30,
2011
Number of residential mortgage loans serviced for others
 
97,465

 
95,841

 
95,831

Outstanding principal balance of residential mortgage loans serviced for others
 
$
11,756,350

 
$
11,300,986

 
$
11,249,503

Weighted average interest rate
 
4.85
%
 
5.19
%
 
5.29
%
Remaining term (in months)
 
289

 
290

 
286
Activity in Capitalized Mortgage Servicing Rights
Activity in capitalized mortgage servicing rights during the three months ended September 30, 2012 is as follows
(in thousands):
 
 
Purchased
 
Originated
 
Total
Balance at June 30, 2012
 
$
16,361

 
$
75,422

 
$
91,783

Additions, net
 
—

 
12,107

 
12,107

Change in fair value due to loan runoff
 
(998
)
 
(3,663
)
 
(4,661
)
Change in fair value due to market changes
 
(2,648
)
 
(6,928
)
 
(9,576
)
Balance, September 30, 2012
 
$
12,715

 
$
76,938

 
$
89,653


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

 
$
67,880

 
$
86,783

Additions, net
 
—

 
29,754

 
29,754

Change in fair value due to loan runoff
 
(2,958
)
 
(10,027
)
 
(12,985
)
Change in fair value due to market changes
 
(3,230
)
 
(10,669
)
 
(13,899
)
Balance, September 30, 2012
 
$
12,715

 
$
76,938

 
$
89,653


Activity in capitalized mortgage servicing rights during the three months ended September 30, 2011 is as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance at June 30, 2011
 
$
32,866

 
$
76,326

 
$
109,192

Additions, net
 
—

 
7,199

 
7,199

Change in fair value due to loan runoff
 
(1,034
)
 
(2,587
)
 
(3,621
)
Change in fair value due to market changes
 
(10,395
)
 
(14,427
)
 
(24,822
)
Balance, September 30, 2011
 
$
21,437

 
$
66,511

 
$
87,948


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

 
$
77,823

 
$
115,723

Additions, net
 
—

 
17,966

 
17,966

Change in fair value due to loan runoff
 
(3,585
)
 
(6,970
)
 
(10,555
)
Change in fair value due to market changes
 
(12,878
)
 
(22,308
)
 
(35,186
)
Balance, September 30, 2011
 
$
21,437

 
$
66,511

 
$
87,948


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 used to determine fair value considered to be significant unobservable input were as follows:

 
 
September 30,
2012
 
December 31,
2011
 
September 30,
2011
Discount rate – risk-free rate plus a market premium
 
10.32%
 
10.34%
 
10.3%
Prepayment rate – based upon loan interest rate, original term and loan type
 
9.14% - 46.42%
 
10.88% - 49.68%
 
11.33% - 47.70%
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
 
0.77%
 
1.21%
 
1.26%
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 September 30, 2012 follows (in thousands):
 
 
< 4.00%
 
4.00% - 4.99%

 
5.00% - 5.99%

 
> 5.99%
 
Total
Fair value
 
$
22,949

 
$
40,754

 
$
20,473

 
$
5,477

 
$
89,653

Outstanding principal of loans serviced for others
 
$
2,418,398

 
$
4,250,803

 
$
3,329,014

 
$
1,758,135

 
$
11,756,350

Weighted average prepayment rate1
 
9.14
%
 
12.02
%
 
28.94
%
 
46.42
%
 
21.36
%
1 
Annual prepayment estimates based upon loan interest rate, original term and loan type. Weighted average prepayment rate is determined by weighting the prepayment speed for each loan by its unpaid principal balance.
Aging Status of Mortgage Loans Serviced For Others
The aging status of our mortgage loans serviced for others by investor at September 30, 2012 follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
Current
 
30 to 59
Days
 
60 to 89
Days
 
90 Days or More
 
Total
FHLMC
 
$
4,783,550

 
$
56,493

 
$
12,786

 
$
42,081

 
$
4,894,910

FNMA
 
2,301,369

 
26,034

 
6,524

 
20,044

 
2,353,971

GNMA
 
3,774,396

 
155,146

 
35,604

 
19,349

 
3,984,495

Other
 
457,172

 
9,839

 
2,611

 
53,352

 
522,974

Total
 
$
11,316,487

 
$
247,512

 
$
57,525

 
$
134,826

 
$
11,756,350
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
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
Beginning balance
 
$
17,832

 
$
17,540

 
$
18,683

 
$
16,667

Provision for recourse losses
 
1,055

 
3,246

 
3,495

 
6,572

Loans charged off, net
 
(1,255
)
 
(2,264
)
 
(4,546
)
 
(4,717
)
Ending balance
 
$
17,632

 
$
18,522

 
$
17,632

 
$
18,522