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NOTE 18 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended
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Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of changes in notional balance of holdings of derivatives |
|  | IRLCs |  |  | U.S. Treasury Futures |  |  | Forward MBS Trades |  |  | Interest Rate Caps |  |  | Interest Rate Swaps |
Balance at December 31, 2012 |  | $ | 1,112,519 |  |  | $ | 109,000 |  |  | $ | 1,638,979 |  |  | $ | 1,025,000 |  |  | $ | 1,495,955 |
Additions |  |  | 1,468,218 |  |  |  | 85,000 |  |  |  | 4,479,506 |  |  |  | — |  |  |  | 1,280,000 |
Amortization |  |  | (227,171 | ) |  |  | — |  |  |  | — |  |  |  | (12,000 | ) |  |  | — |
Maturities |  |  | (1,651,514 | ) |  |  | — |  |  |  | (2,940,387 | ) |  |  | — |  |  |  | (232,174 | )
Terminations |  |  | (84,778 | ) |  |  | (194,000 | ) |  |  | (2,471,538 | ) |  |  | — |  |  |  | (105,000 | )
Balance at March 31, 2013 |  | $ | 617,274 |  |  | $ | — |  |  | $ | 706,560 |  |  | $ | 1,013,000 |  |  | $ | 2,438,781 |
Fair value of net derivative assets (liabilities) at: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2013 |  | $ | 4,652 |  |  | $ | — |  |  | $ | (1,108 | ) |  | $ | 123 |  |  | $ | (18,758 | )
December 31, 2012 |  | $ | 5,781 |  |  | $ | (1,258 | ) |  | $ | (1,719 | ) |  | $ | 168 |  |  | $ | (10,836 | )
Maturity |  |  | Apr. 2013 – Jun. 2013 |  |  |  | — |  |  |  | Mar. 2013 – May 2013 |  |  |  | Feb. 2015 – May 2016 |  |  |  | Mar. 2013 – May 2027 |
Schedule of gains (losses) on derivative |
Purpose |  | Expiration Date |  |  | Notional Amount |  |  | Fair Value (1) |  |  | Gains / (Losses) |  |  | Consolidated Statement of Operations Caption
Interest rate risk of borrowings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not designated as qualifying hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge the effects of a change in 1ML on borrowing under an advance funding facility (2) |  |  | 2013 |  |  | $ | 250,000 |  |  | $ | (1,569 | ) |  | $ | 1,143 |  |  | Other, net
Hedge the effects of a change in the lender’s CP rate and 1ML on borrowing under an advance funding facility (3) |  |  | 2013 |  |  |  | 297,180 |  |  |  | (1,917 | ) |  |  | 1,028 |  |  | Other, net
Total not designated as hedges |  |  |  |  |  |  | 547,180 |  |  |  | (3,486 | ) |  |  | 2,171 |  |  |
Designated as qualifying hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (4) |  |  | 2015 |  |  |  | 201,892 |  |  |  | (7,801 | ) |  |  | (55 | ) |  | AOCL
Hedge the effects of changes in 1ML or the lenders’ CP rate on advance funding facilities (5) |  |  | 2015 |  |  |  | 217,209 |  |  |  | (1,915 | ) |  |  | 285 |  |  | AOCL
Total designated as hedges |  |  |  |  |  |  | 419,101 |  |  |  | (9,716 | ) |  |  | 230 |  |  |
Total swaps |  |  |  |  |  |  | 966,281 |  |  |  | (13,202 | ) |  |  | 2,401 |  |  |
Interest rate caps |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not designated as hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedge the effects of changes in 1ML on advance funding facilities |  |  | 2015-2016 |  |  |  | 1,013,000 |  |  |  | 123 |  |  |  | 46 |  |  | Other, net
Total hedges of debt |  |  |  |  |  |  | 1,979,281 |  |  |  | (13,079 | ) |  |  | 2,447 |  |  |
Interest rate risk of MSRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not designated as qualifying hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  |  | 2014-2027 |  |  |  | 222,500 |  |  |  | 1,597 |  |  |  | (2,480 | ) |  | Other net; Servicing and origination
U.S. Treasury futures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (1,149 | ) |  | Other, net
Forward MBS trades |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,667 | ) |  | Other, net
Total hedges of MSRs |  |  |  |  |  |  | 222,500 |  |  |  | 1,597 |  |  |  | (6,296 | ) |  |
Risk of change in purchase price of MSRs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Designated as a qualifying hedge: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swap (6) |  |  | 2013 |  |  |  | 1,250,000 |  |  |  | (7,153 | ) |  |  | (7,153 | ) |  | AOCL
Interest rate risk of mortgage loans held for sale and IRLCs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Not designated as qualifying hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Forward MBS trades |  |  | 2013 |  |  |  | 706,560 |  |  |  | (1,108 | ) |  |  | 10,189 |  |  | Loss on loans held for sale, net
IRLCs |  |  | 2013 |  |  |  | 617,274 |  |  |  | 4,652 |  |  |  | (1,237 | ) |  | Loss on loans held for sale, net
Total derivatives |  |  |  |  |  | $ | 4,775,615 |  |  | $ | (15,091 | ) |  | $ | (2,050 | ) |  |
| (1) | Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities on our unaudited Consolidated Balance Sheets.
| (2) | We discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6.2 million of deferred losses in accumulated other comprehensive income. In September 2012, we repaid the advance facility and wrote-off the remaining $2.3 million of unamortized deferred losses in AOCL.
| (3) | The hedging relationship was terminated when the advance facility was assumed on March 5, 2012 by HLSS. At that time, we wrote-off the $6.0 million of deferred losses in AOCL. See Note 4 – Asset Sales and Financing and Note 14 – Match Funded Liabilities for additional information.
| (4) | Monthly settlements on this forward-starting swap begin June 2013.
| (5) | Projected net settlements on the swap for the next twelve months total approximately $5.3 million of payments to the counterparties.
| (6) | This swap was closed out on April 15, 2013 concurrent with the closing of the last stage of the MSR purchase.
Schedule of statements of operations include following related to derivative financial instrument |
|  | 2013 |  |  | 2012 |
Servicing and origination expense |  |  |  |  |  |  |  |
Gains on economic hedges |  | $ | 1,000 |  |  | $ | — |
Loss on loans held for resale, net |  |  |  |  |  |  |  |
Gains (losses) on economic hedges |  |  | 8,952 |  |  |  | — |
Other, net |  |  |  |  |  |  |  |
Gains (losses) on economic hedges (1) |  |  | (5,079 | ) |  |  | 3,405 |
Ineffectiveness of cash flow hedges |  |  | (657 | ) |  |  | 63 |
Write-off of losses in AOCL for a discontinued hedge relationship |  |  | — |  |  |  | (772 | )
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note 4 – Asset Sales and Financing) |  |  | — |  |  |  | (5,958 | )
|  | $ | 4,216 |  |  | $ | (3,262 | )
| (1) | Includes a gain of $3.4 million recognized during the three months ended March 31, 2012 from the termination of foreign exchange forward contracts.

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- Definition Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -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 Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph b -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 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
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