XML 53 R26.htm IDEA: XBRL DOCUMENT

NOTE 16 OTHER LIABILITIES

6 Months Ended

Jun. 30, 2013

NOTE 16

OTHER LIABILITIES

Other liabilities are comprised of the following at the dates indicated:

	June 30, 2013		December 31, 2012
Liability for indemnification obligations (1)	$	220,041	$	38,140
Accrued expenses		103,742		70,831
Amount due seller for purchase price adjustments – ResCap Acquisition		69,696		—
Liability for certain foreclosure matters (2)		66,431		13,602
Checks held for escheat		25,448		33,225
Payable to servicing and subservicing investors (3)		23,545		9,973
Liability for selected tax items		22,338		22,702
Due to related parties (4)		19,132		45,034
Servicing liabilities (5)		11,704		9,830
Accrued interest payable		8,874		5,410
Derivatives, at fair value (6)		7,064		18,658
Other		58,613		23,861
	$	636,628	$	291,266

(1)

The balance includes origination representation and warranty obligations and compensatory fees for foreclosures that may ultimately exceed investor timelines. These obligations were primarily assumed in connection with the Ally MSR Transaction, the ResCap Acquisition and the Homeward Acquisition. See Note 4 – Business Acquisitions and Note 9 – Mortgage Servicing for additional information.

(2)

The balance represents a liability established in connection with our ongoing discussions with the Multi-State Mortgage Committee of the Conferences of State Bank Supervisors (MMC), Consumer Finance Protection Bureau (CFPB) and state Attorneys General in connection with certain foreclosure related matters. We recognized $52.8 million of expense in Professional services in the second quarter of 2013 in establishing the liability. We recognized the remaining $13.6 million of the liability as an adjustment to the initial purchase price allocation related to the Homeward Acquisition. We applied this measurement period adjustment retrospectively to our Consolidated Balance Sheet at December 31, 2012 with an offsetting increase in goodwill. See Note 24 – Commitments and Contingencies for additional information.

(3)

The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements.

(4)

See Note 22 – Related Party Transactions for additional information.

(5)

During the six months ended June 30, 2013 and 2012, amortization of servicing liabilities exceeded the amount of charges we recognized to increase our servicing liability obligations by $0.3 million and $0.9 million, respectively. Amortization of mortgage servicing rights is reported net of this amount in the unaudited Consolidated Statement of Operations.

(6)

See Note 18 – Derivative Financial Instruments and Hedging Activities for additional information.