XML 41 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

NOTE 11 INVESTMENT IN UNCONSOLIDATED ENTITIES | 12 Months Ended
--- | ---
Dec. 31, 2011
Equity Method Investments Disclosure [Text Block] | NOTE 11 INVESTMENT IN UNCONSOLIDATED ENTITIES Investment in unconsolidated entities consisted of the following at December 31:
|  | 2011 |  |  | 2010 |
Asset Management Vehicles: |  |  |  |  |  |
Investment in OSI (1) |  | $ | 7,561 |  |  | $ | 7,572 |
Investment in ONL and affiliates (2) |  |  | 1,475 |  |  |  | 4,420 |
|  |  | 9,036 |  |  |  | 11,992 |
Corporate Items and Other: |  |  |  |  |  |  |  |
Investment in Correspondent One (3) |  |  | 14,470 |  |  |  | — |
Other |  |  | 1 |  |  |  | 80 |
|  |  | 14,471 |  |  |  | 80 |
|  | $ | 23,507 |  |  | $ | 12,072 |
Equity in earnings (losses) of unconsolidated entities was as follows for the years ended December 31:
|  | 2011 |  |  | 2010 |  |  | 2009 |
OSI (1) (4) |  | $ | 1,001 |  |  | $ | 1,195 |  |  | $ | (1,756 | )
ONL and affiliates (2) (4) |  |  | (1,217 | ) |  |  | 176 |  |  |  | (1,177 | )
Correspondent One (3) |  |  | (530 | ) |  |  | — |  |  |  | — |
|  | $ | (746 | ) |  | $ | 1,371 |  |  | $ | (2,933 | )
(1) | Our investment in OSI represents a 27% equity interest. OSI invests in the lower tranches and residuals of residential mortgage-backed securities, the related mortgage servicing rights and other similar assets. During 2011, we received distributions from OSI totaling $750. We have no remaining commitment to invest in OSI. On December 22, 2011, we acquired a 2% ownership interest held by another investor in OSI.
(2) | Our investment in ONL and affiliates represent equity interests of approximately 25%. ONL resolves non-performing loans purchased at a discount. An affiliate purchases real estate for sale, including real estate that ONL may obtain through foreclosure. During 2011, we received distributions totaling $1,665 from ONL and affiliates. We have no remaining commitment to invest in ONL.
(3) | In March 2011, we acquired a 50% interest in Correspondent One. Correspondent One facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. During 2011, we funded all of our committed $15,000 investment. Subsequent investments in Correspondent One by unrelated third parties reduced our interest to 49% as of December 31, 2011.
(4) | We earn loan servicing and management fees from OSI and from ONL and affiliates. In determining the amount of consolidated equity in earnings to recognize, we add back our share of the loan servicing and management fee expense recognized by OSI, ONL and affiliates. During 2011, 2010, 2009, OLS earned fees of $2,645, $3,064 and $4,481, respectively, from OSI and from ONL and affiliates. On a consolidated basis, we have recognized approximately 75% of the loan servicing and management fee revenue.
Summarized combined financial information of our unconsolidated entities at and for the years ended December 31 is as follows:
|  | 2011 |  |  | 2010 |  |  | 2009 (1) |
Operations |  |  |  |  |  |  |  |  |
Revenues, net, and investment income, net |  | $ | 4,892 |  |  | $ | 7,287 |  |  | $ | (9,641 | )
Losses on investments and derivatives, net |  |  | (8,458 | ) |  |  | (4,470 | ) |  |  | (10,611 | )
Net income (loss) |  |  | (4,651 | ) |  |  | 2,817 |  |  |  | (42,206 | )
Financial Condition |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 66,405 |  |  | $ | 49,354 |  |  | $ | 1,001,751 |
Total liabilities |  |  | 1,915 |  |  |  | 1,245 |  |  |  | 987,784 |
Total equity |  |  | 64,490 |  |  |  | 48,109 |  |  |  | 13,967 |
(1) | For 2009, the amounts presented include BHI Liquidation, Inc. (formerly BMS Holdings, Inc.), in which we have an equity interest of approximately 45%. BMS Holdings, Inc. had total assets of $940,618, total liabilities of $986,592, equity of $(45,974), net revenues of $(17,625), income on investments and derivatives of $13,642 and a net loss of $25,937. As a result of accumulated losses, we reduced our investment in BHI Liquidation, Inc. to zero in the second quarter of 2008 and have not recognized any equity in its income or losses since that time. Effective October 1, 2010, BHI Liquidation, Inc. transferred its interests in Bankruptcy Management Solutions, Inc. (the operating entity) to debt holders as part of a restructuring plan and no longer has any assets or operations.

X
- Definition The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32787-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32847-111569 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration