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NOTE 8 MORTGAGE SERVICING | 12 Months Ended
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Dec. 31, 2011
Schedule of Servicing Assets at Amortized Value [Table Text Block] | NOTE 8 MORTGAGE SERVICING Servicing Assets. Servicing assets, or MSRs, are comprised of a single residential class. We no longer own commercial servicing assets following the sale of those assets in 2008. The following table summarizes the activity in the carrying value of residential servicing assets for the years ended December 31, 2009, 2010 and 2011:
Balance at December 31, 2008 |  | $ | 139,500 |
Purchases |  |  | 10,241 |
Servicing transfers and adjustments |  |  | (20 | )
Decrease in impairment valuation allowance |  |  | 670 |
Amortization (1) |  |  | (32,589 | )
Balance at December 31, 2009 |  |  | 117,802 |
Purchases (2) |  |  | 107,749 |
Servicing transfers and adjustments |  |  | (29 | )
Decrease in impairment valuation allowance |  |  | 90 |
Amortization (1) |  |  | (31,627 | )
Balance at December 31, 2010 |  |  | 193,985 |
Purchases (3) |  |  | 144,314 |
Decrease in impairment valuation allowance |  |  | 574 |
Amortization (1) |  |  | (45,721 | )
Balance at December 31, 2011 |  | $ | 293,152 |
(1) | In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations.
(2) | Purchases for 2010 include $84,324 of residential MSRs acquired as part of the HomEq Acquisition.
(3) | Purchases for 2011 represent the residential MSRs acquired as a part of the Litton Acquisition.
The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2011, is projected as follows over the next five years:
2012 |  | $ | 57,148 |
2013 |  |  | 46,094 |
2014 |  |  | 37,178 |
2015 |  |  | 29,986 |
2016 |  |  | 24,186 |
The following table presents the composition of our servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents purchased MSRs while subservicing generally represents all other MSRs.
UPB of Assets Serviced: |  | Residential |  |  | Commercial |  |  | Total |
Balance at December 31, 2009 |  |  |  |  |  |  |  |  |
Servicing |  | $ | 27,408,436 |  |  | $ | — |  |  | $ | 27,408,436 |
Subservicing |  |  | 22,571,641 |  |  |  | 211,603 |  |  |  | 22,783,244 |
|  | $ | 49,980,077 |  |  | $ | 211,603 |  |  | $ | 50,191,680 |
Balance at December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |
Servicing |  | $ | 51,252,380 |  |  | $ | — |  |  | $ | 51,252,380 |
Subservicing |  |  | 22,634,011 |  |  |  | 434,305 |  |  |  | 23,068,316 |
|  | $ | 73,886,391 |  |  | $ | 434,305 |  |  | $ | 74,320,696 |
Balance at December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |
Servicing |  | $ | 78,675,160 |  |  | $ | — |  |  | $ | 78,675,160 |
Subservicing |  |  | 23,524,062 |  |  |  | 290,863 |  |  |  | 23,814,925 |
|  | $ | 102,199,222 |  |  | $ | 290,863 |  |  | $ | 102,490,085 |
(1) | Residential assets serviced consist principally of mortgage loans, primarily subprime, but also include foreclosed real estate. Commercial assets subserviced consist of foreclosed real estate.
At December 31, 2011, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:
|  | Amount |  |  | Count |
California |  | $ | 20,605,264 |  |  |  | 74,944 |
Florida |  |  | 11,338,397 |  |  |  | 72,393 |
New York |  |  | 9,204,876 |  |  |  | 37,687 |
Texas |  |  | 5,341,919 |  |  |  | 63,003 |
Illinois |  |  | 4,547,186 |  |  |  | 30,658 |
Other (1) |  |  | 51,161,580 |  |  |  | 392,938 |
|  | $ | 102,199,222 |  |  |  | 671,623 |
(1) | Consisted of loans and properties in 45 other states, the District of Columbia and two U.S. territories. No other single location had aggregate loans and properties over $3,700,655.
Valuation Allowance for Impairment. During 2008, we established a valuation allowance for impairment of $3,624 on the high-loan-to-value stratum of our mortgage servicing rights as the estimated fair value was less than the carrying value. Changes in the valuation allowance for impairment are reflected in Servicing and origination expenses in the Consolidated Statement of Operations. Net of the valuation allowance of $2,290 and $2,864, the carrying value of this stratum was $214 and $334 at December 31, 2011 and 2010, respectively. For all other strata, the fair value exceeded the carrying value. The estimated fair value of residential MSRs at December 31, 2011, 2010 and 2009 was $340,015, $237,407 and $127,268, respectively. Servicing Liabilities. Servicing liabilities are included in Other liabilities. See Note 17 for additional information.

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- Definition Tabular disclosure of the activity in the balance of servicing assets subsequently measured at amortized value (including a description of where changes in carrying 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 (through purchases of servicing assets and servicing assets that result from transfers of financial assets), disposals, amortization, application of valuation allowances, other-than-temporary impairments, 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 FASB Staff Position (FSP) -Number FAS140-4/FIN46(R)-8 -Paragraph B10 -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 Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 17 -Subparagraph g -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 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6863725&loc=d3e122739-111746 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6863725&loc=SL6227155-111746 + Details
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