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SECURITIZATIONS
 6 Months Ended
Jun. 30, 2012
SECURITIZATIONS  
SECURITIZATIONS

7.   SECURITIZATIONS

 

In prior years, we securitized certain residential mortgage loans with a U.S. Government sponsored entity and continue to service the residential mortgage loans. The servicing assets were recorded at their respective fair values at the time of securitization. The fair value of the servicing assets was determined using a discounted cash flow model based on market value assumptions at the time of securitization and is amortized in proportion to and over the period of net servicing income.

 

All unsold mortgage-backed securities were categorized as available for sale securities and were therefore recorded at their fair value of $8.6 million and $9.9 million at June 30, 2012 and December 31, 2011, respectively. The fair values of these mortgage-backed securities were based on quoted prices of similar instruments in active markets. Unrealized gains of $0.5 million on unsold mortgage-backed securities were recorded in accumulated other comprehensive income (“AOCI”) at June 30, 2012 and December 31, 2011.