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NOTE 19 DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended
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Dec. 31, 2011
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 19 DERIVATIVE FINANCIAL INSTRUMENTS Because our current derivative agreements are not exchange-traded, we are exposed to credit loss in the event of nonperformance by the counterparty to the agreements. We control this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of our contracts does not represent our exposure to credit loss. Foreign Currency Exchange Rate Risk Management In August and October 2011, we entered into foreign exchange forward contracts with a notional amount of $59,400 to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL, through February 2013. These contracts replaced those that expired in April 2011. We did not designate the foreign exchange contracts as hedges. Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant. Interest Rate Management In our Servicing segment, during 2010, we entered into three interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. In 2011, we entered into an additional four interest rate swaps and one interest rate cap. The cap was not designated as a hedge. The following summarizes our use of swaps at December 31, 2011 to hedge the effects of changes in the interest rate environment on borrowings under our advance funding facilities:
Purpose | Date Opened | Effective Date (1) | Maturity |  | We Pay |  | We Receive |  | Notional Amount |  |  | Fair Value |
Not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge the effects of a change in 1-Month LIBOR on borrowing under a $265,000 advance funding facility (2) | April 2010 | July 2010 | July 2013 |  |  | 2.0590% |  | 1-Month LIBOR |  | $ | 250,000 |  |  | $ | (6,329 | )
Designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge the effects of a change in the lender’s commercial paper rate and 1-Month LIBOR on borrowing under a $582,729 advance facility (3) | May 2010 and June 2010 | September 2010 | August 2013 |  | 1.5750% and 1.5275% |  | 1-Month LIBOR |  |  | 439,955 |  |  |  | (6,368 | )
Hedge the effects of changes in the lenders’ commercial paper rate on commercial paper-based advance funding facilities | October 2011 | June 2013 | January 2015 |  |  | 0.9275% |  | 1-Month LIBOR |  |  | 100,946 |  |  |  | (741 | )
Hedge the effects of changes in 1-Month LIBOR on LIBOR-based advance funding facilities | October 2011 | June 2013 | January 2015 |  |  | 0.9780% |  | 1-Month LIBOR |  |  | 100,946 |  |  |  | (759 | )
Hedge the effects of changes in the lenders’ commercial paper rate on commercial paper-based advance funding facilities (4) | December 2011 | February 2012 | January 2015 |  | 0.7000% and 0.6825% |  | 1-Month LIBOR |  |  | 501,838 |  |  |  | (294 | )
Total designated as hedges |  |  | 1,143,685 |  |  |  | (8,162 | )
Total |  | $ | 1,393,685 |  |  | $ | (14,491 | )
(1) | The effective date of the swap is the date from which monthly settlements begin to be computed.
(2) | We originally designated this swap as a cash flow hedge; however, the hedging relationship failed to meet the effectiveness criterion both for the third quarter of 2011 and on a prospective basis beyond the third quarter because declines in advances pledged as collateral to the hedged debt resulted in lower than anticipated borrowings. As a result, we discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization will continue until the related advance facility matures in July 2013. The balance outstanding under the advance facility at December 31, 2011 was $130,492.
(3) | Projected net interest settlements on the swaps for the next twelve months total approximately $4,263 of payments to the counterparty. The balance outstanding under the advance facility at December 31, 2011 was $382,729.
(4) | Projected net settlements on the swap for the next twelve months total approximately $869 of payments to the counterparties.
The following table summarizes the use of derivatives during 2011:
|  | Interest Rate Cap |  |  | Foreign Exchange Forwards |  |  | Interest Rate Swaps |
Notional balance at December 31, 2010 |  | $ | — |  |  | $ | 6,400 |  |  | $ | 846,888 |
Additions |  |  | 1,600,000 |  |  |  | 59,400 |  |  |  | 703,730 |
Maturities |  |  | — |  |  |  | (19,600 | ) |  |  | (156,933 | )
Terminations |  |  | — |  |  |  | — |  |  |  | — |
Notional balance at December 31, 2011 |  | $ | 1,600,000 |  |  | $ | 46,200 |  |  | $ | 1,393,685 |
Fair value of derivative assets (liabilities) at (1): |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2011 |  | $ | 3,600 |  |  | $ | (5,785 | ) |  | $ | (14,491 | )
December 31, 2010 |  | $ | — |  |  | $ | 319 |  |  | $ | (15.670 | )
Maturity |  | May 2014 |  |  | February 2012 to February 2013 |  |  | July 2013 to January 2015 |
(1) | Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.
Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31:
|  | 2011 |  |  | 2010 |  |  | 2009 |
Net realized and unrealized gains (losses) on derivative financial instruments that are not designated as hedges (1) |  | $ | (4,488 | ) |  | $ | 17 |  |  | $ | 588 |
Unrealized losses arising from ineffectiveness of interest rate swaps designated as cash flow hedges |  |  | (1,393 | ) |  |  | (150 | ) |  |  | — |
Amortization of deferred losses included in accumulated other comprehensive income related to a discontinued hedging relationship |  |  | (1,545 | ) |  |  | — |  |  |  | — |
|  | $ | (7,426 | ) |  | $ | (133 | ) |  | $ | 588 |
(1) | Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011.
Included in Accumulated other comprehensive loss at December 31, 2011 and December 31, 2010, respectively, were $12,114 and $14,435 of deferred unrealized losses, before taxes of $4,354 and $5,196, respectively, on the interest rate swaps that we designated as cash flow hedges.

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- Definition The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44 -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 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5580258-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(n)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5618551-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708773-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41638-113959 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41620-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41641-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579240-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41635-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624258-113959 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959 Reference 19: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 20: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -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 21: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708775-113959 Reference 22: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624177-113959 + Details
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