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NOTE 21 BUSINESS SEGMENT REPORTING | 3 Months Ended
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Mar. 31, 2013
Segment Reporting [Abstract] |
BUSINESS SEGMENT REPORTING |
| Note 21 | Business Segment Reporting
Our business segments reflect the internal reporting that we use to evaluate operating performance of services and to assess the allocation of our resources. A brief description of our current business segments is as follows: Servicing. This segment is primarily comprised of our core residential servicing business. 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, retained the MSRs on the sale of residential mortgage loans or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Our residential servicing portfolio includes both agency and non-agency loans. Non-agency loans include prime and subprime loans which represent residential loans that generally did not qualify under GSE guidelines or have subsequently become delinquent. Lending. The Lending segment is focused on originating and purchasing agency-conforming residential mortgage loans mainly through our correspondent lending business. We also commenced a direct lending business to pursue refinancing opportunities from our existing portfolio, where permitted. The loans are typically sold shortly after origination into a liquid market on a servicing retained basis. 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, corporate debt and certain corporate expenses. Business activities that are not considered to be of continuing significance include subprime loans held for sale (at lower of cost or fair value), investments in unconsolidated entities and affordable housing investment activities. Corporate Items and Other also included the diversified fee-based businesses that we acquired as part of the Homeward Acquisition and the ResCap Acquisition and subsequently sold. 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 |  |  | Lending |  |  | Corporate Items and Other |  |  | Corporate Eliminations |  |  | Business Segments Consolidated |
Results of Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Three Months Ended March 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 376,084 |  |  | $ | 13,908 |  |  | $ | 16,712 |  |  | $ | (45 | ) |  | $ | 406,659 |
Operating expenses (1) |  |  | 211,505 |  |  |  | 11,098 |  |  |  | 20,968 |  |  |  | (45 | ) |  |  | 243,526 |
Income (loss) from operations |  |  | 164,579 |  |  |  | 2,810 |  |  |  | (4,256 | ) |  |  | — |  |  |  | 163,133 |
Other income (expense), net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | (614 | ) |  |  | 4,780 |  |  |  | 1,019 |  |  |  | — |  |  |  | 5,185 |
Interest expense (1) |  |  | (90,460 | ) |  |  | (2,829 | ) |  |  | (127 | ) |  |  | — |  |  |  | (93,416 | )
Other |  |  | (26,085 | ) |  |  | 267 |  |  |  | 2,251 |  |  |  | — |  |  |  | (23,567 | )
Other income (expense), net |  |  | (117,159 | ) |  |  | 2,218 |  |  |  | 3,143 |  |  |  | — |  |  |  | (111,798 | )
Income (loss) before income taxes |  | $ | 47,420 |  |  | $ | 5,028 |  |  | $ | (1,113 | ) |  | $ | — |  |  | $ | 51,335 |
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 income (expense), net |  |  | (46,836 | ) |  |  | — |  |  |  | (1,621 | ) |  |  | 157 |  |  |  | (48,300 | )
Income (loss) before income taxes |  | $ | 34,477 |  |  | $ | — |  |  | $ | (4,358 | ) |  | $ | — |  |  | $ | 30,119 |
Total Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2013 |  | $ | 5,713,500 |  |  | $ | 430,915 |  |  | $ | 1,103,600 |  |  | $ | — |  |  | $ | 7,248,015 |
December 31, 2012 |  | $ | 4,461,755 |  |  | $ | 551,733 |  |  | $ | 658,394 |  |  | $ | — |  |  | $ | 5,671,882 |
March 31, 2012 |  | $ | 3,530,184 |  |  | $ | — |  |  | $ | 964,327 |  |  | $ | — |  |  | $ | 4,494,511 |
| (1) | Depreciation and amortization expense are as follows:
|  | Servicing |  |  | Lending |  |  | Corporate Items and Other |  |  | Business Segments Consolidated |
Three Months Ended March 31, 2013: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation expense |  | $ | 2,699 |  |  | $ | 234 |  |  | $ | 1,580 |  |  | $ | 4,513 |
Amortization of MSRs |  |  | 47,883 |  |  |  | — |  |  |  | — |  |  |  | 47,883 |
Amortization of debt discount |  |  | 424 |  |  |  | — |  |  |  | — |  |  |  | 424 |
Amortization of debt issuance costs – SSTL |  |  | 894 |  |  |  | — |  |  |  | — |  |  |  | 894 |
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 – SSTL |  |  | 920 |  |  |  | — |  |  |  | — |  |  |  | 920 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -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 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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