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Note 19 BUSINESS SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2012
Segment Reporting Disclosure [Text Block]

Note 19       Business Segment Reporting


Our business segments reflect the internal reporting that we use to evaluate operating performance of products and services and to assess the allocation of our resources.


A brief description of our current business segments is as follows:


Servicing. Through this segment, we provide residential and commercial mortgage loan servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. In most cases, we provide these services either because we purchased the MSRs from the owner of the mortgage or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Subprime loans represent the largest category, or strata of the residential loans that we service. Subprime loans represent residential loans that were made to borrowers who generally did not qualify under guidelines of Fannie Mae and Freddie Mac (nonconforming loans) or have subsequently become delinquent. This segment is primarily comprised of our core residential servicing business.


Corporate Items and Other. Corporate Items and Other includes items of revenue and expense that are not directly related to a business, business activities that are individually insignificant, interest income on short-term investments of cash and certain corporate expenses. Loans held for resale, Investments in unconsolidated entities and Debt securities are also included in Corporate Items and Other. Other business activities included in Corporate Items and Other that are not considered to be of continuing significance include our affordable housing investment activities


We allocate interest income and expense to each business segment for funds raised or for funding of investments made, including interest earned on cash balances and short-term investments and interest incurred on corporate debt. We also allocate expenses generated by corporate support services to each business segment.


Financial information for our segments is as follows:


    Servicing   Corporate Items and Other   Corporate Eliminations   Business Segments Consolidated
Results of Operations                
                 
For the three months ended March 31, 2012                
                                 
Revenue   $ 164,192     $ 658     $ (304 )   $ 164,546  
Operating expenses (1)     82,879       3,395       (147 )     86,127  
Income (loss) from operations     81,313       (2,737 )     (157 )     78,419  
Other income (expense), net:                                
Interest income     —       2,312       —       2,312  
Interest expense (1)     (46,526 )     (398 )     —       (46,924 )
Other     (310 )     (3,535 )     157       (3,688 )
Other expense, net     (46,836 )     (1,621 )     157       (48,300 )
Income (loss) before income taxes   $ 34,477     $ (4,358 )   $ —     $ 30,119  
                                 
For the three months ended March 31, 2011                                
                                 
Revenue   $ 110,869     $ 471     $ (334 )   $ 111,006  
Operating expenses (1)     39,783       1,570       (154 )     41,199  
Income (loss) from operations     71,086       (1,099 )     (180 )     69,807  
Other income (expense), net:                                
Interest income     47       2,122       —       2,169  
Interest expense (1)     (37,501 )     (42 )     —       (37,543 )
Other     1,148       (1,272 )     180       56  
Other income (expense), net     (36,306 )     808       180       (35,318 )
Income (loss) before income taxes   $ 34,780     $ (291 )   $ —     $ 34,489  
                                 
Total Assets                                
March 31, 2012   $ 3,530,184     $ 964,327     $ —     $ 4,494,511  
December 31, 2011   $ 4,310,354     $ 426,803     $ —     $ 4,737,157  
March 31, 2011   $ 2,153,047     $ 412,740     $ —     $ 2,565,787  

(1) Depreciation and amortization expense are as follows:

    Servicing   Corporate Items and Other   Business Segments Consolidated
For the three months ended March 31, 2012:            
Depreciation expense   $ 255     $ 578     $ 833  
Amortization of MSRs     14,314       —       14,314  
Amortization of debt discount     745       —       745  
Amortization of debt issuance costs – senior secured term loan     920       —       920  
                         
For the three months ended March 31, 2011:                        
Depreciation expense   $ 25     $ 725     $ 750  
Amortization of MSRs     8,923       —       8,923  
Amortization of debt discount     6,046       —       6,046  
Amortization of debt issuance costs – senior secured term loan     7,771       —       7,771