Other Assets (Tables)

3 Months Ended

Mar. 31, 2012

Other assets at March 31, 2012 and December 31, 2011, are summarized in the following table.

Other Assets


(In Thousands)	March 31, 2012		December 31, 2011
REO	$	5,498	$	5,669
Fixed assets and leasehold improvements		1,104		2,048
Margin posted, net		52,072		71,976
Mortgage servicing rights		1,562		-
Investment receivable		7,478		1,741
Income tax receivables		4,684		4,741
Prepaid expenses		1,179		1,706
Other		2,568		381

Total Other Assets	$	76,145	$	88,262

Activity for Residential First-Lien MSRs

The following table presents activity for residential first-lien MSRs for the three months ended March 31, 2012.


(In Thousands)	Three Months Ended March 31, 2012
Balance at beginning of period	$	-
Additions:
Servicing from securitizations		1,579
Changes in fair value:
Due to changes in assumptions ⁽¹⁾		-
Other changes in fair value ⁽²⁾		(17)

Balance at End of Period	$	1,562

(1)	Principally reflects changes in discount rates and prepayment assumptions, mostly due to changes in interest rates.

(2)	Reflects the changes in fair value due to the impact (collection) of expected cash flows (customer payments) received during the period.

Income and Expense Associated with MSRs, as well as Additional Items that Compose Mortgage Banking Activities, Net

The following table presents the income and expense associated with our MSRs, as well as the additional items that compose Mortgage Banking Activities, net on our consolidated income statement for the three months ended March 31, 2012.


(In Thousands)	Three Months Ended March 31, 2012
Servicing income, net:
Contractually specified servicing fees	$	14
Servicing expense		(4)

Servicing income, net		10

Net valuation losses from MSRs		(17)
Net valuation losses from economic hedges		(3,056)
Net gains on mortgage loan securitizations		7,365

Mortgage Banking Activities, Net	$	4,302

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References+ Details