XML 49 R38.htm IDEA: XBRL DOCUMENT v3.8.0.1
SERVICING RIGHTS (Tables)
 9 Months Ended
Sep. 30, 2017
Transfers and Servicing [Abstract]  
Schedule of Income (Loss) from Servicing Rights
The following table presents a composition of total income (loss) from servicing rights, which is reported in Loan Servicing Income (Loss) in the Consolidated Statements of Operations, on a consolidated operations basis, for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Servicing fees for sold loans with servicing retained
$
4,521

 
$
6,286

 
$
15,352

 
$
16,372

Losses on the fair value and runoff of servicing rights
(3,968
)
 
(4,190
)
 
(10,360
)
 
(22,911
)
Total income (loss) from servicing rights
$
553

 
$
2,096

 
$
4,992

 
$
(6,539
)
Servicing Rights
The following table presents a composition of servicing rights, on a consolidated operations basis, as of the dates indicated:
 
September 30,
2017
 
December 31,
2016
 
(In thousands)
Mortgage servicing rights, at fair value
$
38,715

 
$
76,121

SBA servicing rights, at amortized cost
1,733

 
1,496

Total
$
40,448

 
$
77,617
Mortgage Servicing Rights Fair Value and Weighted Average Life
The following table presents the key characteristics, inputs and economic assumptions used to estimate the Level 3 fair value of the MSRs, on a consolidated operations basis, as of the dates indicated:
 
September 30,
2017
 
December 31,
2016
 
($ in thousands)
Fair value of retained MSRs
$
38,715

 
$
76,121

Discount rate
10.96
%
 
10.18
%
Constant prepayment rate
14.49
%
 
11.84
%
Weighted-average life
5.64 years

 
6.50 years
Mortgage Servicing Rights
The following table presents activity in the MSRs, on a consolidated operations basis, for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Balance at beginning of period
$
42,109

 
$
52,567

 
$
76,121

 
$
49,939

Additions
574

 
14,300

 
12,126

 
35,648

Sales of servicing rights (1)
—

 
—

 
(39,186
)
 
(3
)
Changes in fair value resulting from valuation inputs or assumptions
(1,905
)
 
(465
)
 
(4,984
)
 
(14,497
)
Other
(2,063
)
 
(3,726
)
 
(5,362
)
 
(8,411
)
Balance at end of period
$
38,715

 
$
62,676

 
$
38,715

 
$
62,676


(1) Includes $37.8 million of MSRs sold as a part of discontinued operations for the nine months ended September 30, 2017.
Small Business Administration Servicing Rights
The following table presents activity in the SBA servicing rights for the periods indicated:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(In thousands)
Balance at beginning of period
$
1,725

 
$
1,083

 
$
1,496

 
$
788

Additions
133

 
122

 
479

 
505

Amortization, including prepayments
(59
)
 
(38
)
 
(159
)
 
(126
)
Impairment
(66
)
 
—

 
(83
)
 
—

Balance at end of period
$
1,733

 
$
1,167

 
$
1,733

 
$
1,167