XML 51 R39.htm IDEA: XBRL DOCUMENT v3.10.0.1
Other Assets and Liabilities (Tables)
 9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Components of Other Assets
Other assets at September 30, 2018 and December 31, 2017, are summarized in the following table.
Table 11.1 – Components of Other Assets
(In Thousands)
 
September 30, 2018
 
December 31, 2017
Mortgage servicing rights
 
$
63,785

 
$
63,598

Security purchase deposit
 
57,982

 
—

Margin receivable
 
48,655

 
85,044

FHLBC stock
 
43,393

 
43,393

Pledged collateral
 
42,127

 
42,615

Participation in loan warehouse facility
 
39,219

 
—

Investment receivable
 
36,463

 
1,147

Investment in 5 Arches
 
10,772

 
—

Fixed assets and leasehold improvements (1)
 
5,409

 
2,645

REO
 
2,915

 
3,354

Guarantee asset
 
2,885

 
2,869

Other
 
12,270

 
13,899

Total Other Assets
 
$
365,875

 
$
258,564

(1)
Fixed assets and leasehold improvements had a basis of $10 million and accumulated depreciation of $5 million at September 30, 2018.
Components of Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities at September 30, 2018 and December 31, 2017 are summarized in the following table.
Table 11.2 – Components of Accrued Expenses and Other Liabilities
(In Thousands)
 
September 30, 2018
 
December 31, 2017
Margin payable
 
$
33,950

 
$
390

Accrued compensation
 
18,485

 
24,025

Guarantee obligations
 
17,423

 
19,487

Deferred tax liabilities
 
11,764

 
11,764

Residential loan and MSR repurchase reserve
 
4,709

 
4,916

Unsettled trades
 
4,071

 
13

Accrued income taxes payable
 
3,313

 
—

Legal reserve
 
2,000

 
2,000

Other
 
6,563

 
5,134

Total Accrued Expenses and Other Liabilities
 
$
102,278

 
$
67,729
Activity for Mortgage Servicing Rights
The following table presents activity for MSRs for the three and nine months ended September 30, 2018 and 2017.
Table 11.3 – Activity for MSRs
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2018
 
2017
 
2018
 
2017
Balance at beginning of period
 
$
64,674

 
$
63,770

 
$
63,598

 
$
118,526

Additions
 
—

 
256

 
—

 
7,957

Sales
 
—

 
—

 
(1,077
)
 
(52,966
)
Changes in fair value due to:
 
 
 
 
 
 
 
 
Changes in assumptions (1)
 
1,099

 
563

 
6,388

 
(3,450
)
Other changes (2)
 
(1,988
)
 
(1,661
)
 
(5,124
)
 
(7,139
)
Balance at End of Period
 
$
63,785

 
$
62,928

 
$
63,785

 
$
62,928

(1)
Primarily reflects changes in prepayment assumptions due to changes in market interest rates.
(2)
Represents changes due to the realization of expected cash flows.
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, 2018 and 2017.
Table 11.4 – Components of MSR Income, net
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In Thousands)
 
2018
 
2017
 
2018
 
2017
Servicing income
 
$
4,004

 
$
3,872

 
$
11,601

 
$
17,290

Cost of sub-servicer
 
(324
)
 
(476
)
 
(1,254
)
 
(2,515
)
Net servicing fee income
 
3,680

 
3,396

 
10,347

 
14,775

Market valuation changes of MSRs
 
(823
)
 
(1,351
)
 
1,324

 
(10,842
)
Market valuation changes of associated derivatives
 
(890
)
 
(422
)
 
(7,151
)
 
1,869

MSR reversal of provision for repurchases
 
—

 
(8
)
 
277

 
304

MSR Income, Net (1)
 
$
1,967

 
$
1,615

 
$
4,797

 
$
6,106

(1)
MSR income, net is included in Other income, net on our consolidated statements of income.