XML 50 R36.htm IDEA: XBRL DOCUMENT v3.8.0.1
Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2017
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 as of September 30, 2017 and December 31, 2016.
Table 8.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans
 
 
September 30, 2017
 
December 31, 2016
(In Thousands)
 
MSR Fair Value
 
Associated Principal
 
MSR Fair Value
 
Associated Principal
Mortgage Servicing Rights
 
 
 
 
 
 
 
 
Conforming Loans
 
$
1,125

 
$
107,298

 
$
58,523

 
$
4,989,720

Jumbo Loans
 
61,803

 
5,639,708

 
60,003

 
5,467,169

Total Mortgage Servicing Rights
 
$
62,928

 
$
5,747,006

 
$
118,526

 
$
10,456,889
Activity for Mortgage Servicing Rights
The following table presents activity for MSRs for the three and nine months ended September 30, 2017 and 2016.
Table 8.2 – Activity for MSRs
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2017
 
2016
 
2017
 
2016
Balance at beginning of period
 
$
63,770

 
$
110,046

 
$
118,526

 
$
191,976

Additions
 
256

 
3,443

 
7,957

 
22,941

Sales
 
—

 
(8,860
)
 
(52,966
)
 
(38,419
)
Changes in fair value due to:
 
 
 
 
 
 
 
 
Changes in assumptions (1)
 
563

 
7,085

 
(3,450
)
 
(52,723
)
Other changes (2)
 
(1,661
)
 
(5,705
)
 
(7,139
)
 
(17,766
)
Balance at End of Period
 
$
62,928

 
$
106,009

 
$
62,928

 
$
106,009

(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, 2017.
Table 8.3 – MSR Additions
 
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2017
(In Thousands)
 
MSR Fair Value
 
Associated Principal
 
MSR Fair Value
 
Associated Principal
Jumbo MSR additions:
 
 
 
 
 
 
 
 
From securitization
 
$
—

 
$
—

 
$
7,123

 
$
654,605

From loan sales
 
—

 
—

 
263

 
31,658

Total jumbo MSR additions
 
—

 
—

 
7,386

 
686,263

Conforming MSR additions:
 
 
 
 
 
 
 
 
From purchases
 
256

 
41,263

 
571

 
95,595

Total MSR Additions
 
$
256

 
$
41,263

 
$
7,957

 
$
781,858
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, 2017 and 2016.
Table 8.4 – Components of MSR Income, net
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2017
 
2016
 
2017
 
2016
Servicing income
 
$
3,872

 
$
9,943

 
$
17,290

 
$
32,199

Cost of sub-servicer
 
(476
)
 
(1,217
)
 
(2,515
)
 
(4,958
)
Net servicing fee income
 
3,396

 
8,726

 
14,775

 
27,241

Market valuation changes of MSRs
 
(1,351
)
 
1,380

 
(10,842
)
 
(70,489
)
Market valuation changes of associated derivatives
 
(422
)
 
(6,336
)
 
1,869

 
55,874

MSR provision for repurchases
 
(8
)
 
—

 
304

 
208

MSR Income, Net
 
$
1,615

 
$
3,770

 
$
6,106

 
$
12,834