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Mortgage Servicing Rights (Tables) | 9 Months Ended
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Sep. 30, 2016
Transfers and Servicing [Abstract] |
Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans | The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans at September 30, 2016 and December 31, 2015. Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans
|  | September 30, 2016 |  | December 31, 2015
(In Thousands) |  | MSR Fair Value |  | Associated Principal |  | MSR Fair Value |  | Associated Principal
Mortgage Servicing Rights |  |  |  |  |  |  |  |
Conforming Loans |  | $ | 69,578 |  |  | $ | 8,422,222 |  |  | $ | 133,838 |  |  | $ | 12,560,533 |
Jumbo Loans |  | 36,431 |  |  | 5,494,950 |  |  | 58,138 |  |  | 5,705,939 |
Total Mortgage Servicing Rights |  | $ | 106,009 |  |  | $ | 13,917,172 |  |  | $ | 191,976 |  |  | $ | 18,266,472 |
Activity for Mortgage Servicing Rights | The following table presents activity for MSRs for the three and nine months ended September 30, 2016 and 2015. Table 9.2 – Activity for MSRs
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Balance at beginning of period |  | $ | 110,046 |  |  | $ | 168,462 |  |  | $ | 191,976 |  |  | $ | 139,293 |
Additions |  | 3,443 |  |  | 22,760 |  |  | 22,941 |  |  | 73,976 |
Sales |  | (8,860 | ) |  | — |  |  | (38,419 | ) |  | (18,206 | )
Changes in fair value due to: |  |  |  |  |  |  |  |
Changes in assumptions (1) |  | 7,085 |  |  | (23,786 | ) |  | (52,723 | ) |  | (18,653 | )
Other changes (2) |  | (5,705 | ) |  | (4,710 | ) |  | (17,766 | ) |  | (13,684 | )
Balance at End of Period |  | $ | 106,009 |  |  | $ | 162,726 |  |  | $ | 106,009 |  |  | $ | 162,726 |
(1) | Primarily reflects changes in prepayment assumptions due to changes in market interest rates.
(2) | Represents changes due to receipt of expected cash flows.
MSR Additions | The following table details the retention and purchase of MSRs during the three and nine months ended September 30, 2016. Table 9.3 – MSR Additions
(In Thousands) |  | Three Months Ended September 30, 2016 |  | Nine Months Ended September 30, 2016
|  | MSR Fair Value |  | Associated Principal |  | MSR Fair Value |  | Associated Principal
Jumbo MSR additions: |  |  |  |  |  |  |  |
From securitization |  | $ | 1,971 |  |  | $ | 328,227 |  |  | $ | 4,102 |  |  | $ | 638,469 |
From loan sales |  | 21 |  |  | 3,510 |  |  | 145 |  |  | 21,002 |
Total jumbo MSR additions |  | 1,992 |  |  | 331,737 |  |  | 4,247 |  |  | 659,471 |
Conforming MSR additions: |  |  |  |  |  |  |  |
From loan sales |  | $ | — |  |  | $ | — |  |  | $ | 3,380 |  |  | $ | 316,290 |
From purchases |  | 1,451 |  |  | 216,544 |  |  | 15,314 |  |  | 1,629,762 |
Total conforming MSR additions |  | 1,451 |  |  | 216,544 |  |  | 18,694 |  |  | 1,946,052 |
Total MSR Additions |  | $ | 3,443 |  |  | $ | 548,281 |  |  | $ | 22,941 |  |  | $ | 2,605,523 |
Components of Mortgage Servicing Rights Income (Loss), net | The following table presents the components of our MSR income for the three and nine months ended September 30, 2016 and 2015. Table 9.4 – Components of MSR Income (Loss), net
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In Thousands) |  | 2016 |  | 2015 |  | 2016 |  | 2015
Servicing income |  |  |  |  |  |  |  |
Income |  | $ | 9,943 |  |  | $ | 10,028 |  |  | $ | 32,199 |  |  | $ | 28,199 |
Cost of sub-servicer |  | (1,217 | ) |  | (1,313 | ) |  | (4,958 | ) |  | (3,704 | )
Net servicing income |  | 8,726 |  |  | 8,715 |  |  | 27,241 |  |  | 24,495 |
Market valuation changes of MSRs |  | 1,380 |  |  | (28,496 | ) |  | (70,489 | ) |  | (32,337 | )
Market valuation changes of associated derivatives (1) |  | (6,336 | ) |  | 23,551 |  |  | 55,874 |  |  | 1,736 |
MSR provision for repurchases |  | — |  |  | (221 | ) |  | 208 |  |  | (439 | )
MSR Income (Loss), Net |  | $ | 3,770 |  |  | $ | 3,549 |  |  | $ | 12,834 |  |  | $ | (6,545 | )
(1) | In the second quarter of 2015, we began to identify specific derivatives used to hedge the exposure of our MSRs to changes in market interest rates. See Note 2 for additional detail.

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- 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 Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=56950315&loc=d3e122625-111746 + Details
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