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NOTE 9 MORTGAGE SERVICING (Tables)

6 Months Ended

Jun. 30, 2013

Mortgage Servicing [Abstract]

Schedule of activity related to MSRs - Amortization method

		2013				2012
Balance at December 31		$	678,937			$	293,152
Additions recognized in connection with business and asset acquisitions (1) (2)			1,078,819				175,852
Additions recognized on the sale of residential mortgage loans			46,892				—
Servicing transfers, adjustments and other			1,970				(88	)
Amortization (3)			(118,580	)			(34,348	)
Balance at June 30		$	1,688,038			$	434,568
Estimated fair value at June 30		$	2,269,985			$	470,974

(1) MSRs purchased during 2013 include $393.9 million acquired in the ResCap Acquisition. See Note 4 – Business Acquisitions for additional information.

(2) MSRs purchased during 2013 also include $680.0 million of MSRs acquired in the Ally MSR Transaction. The acquired MSRs relate to mortgage loans with a UPB of approximately $87.0 billion owned by Freddie Mac and Fannie Mae. We also acquired servicing advance receivables of $73.5 million. We assumed the origination representation and warranty obligations of approximately $136.4 million in connection with a majority of the acquired MSRs. We had been subservicing these MSRs on behalf of Ally under a subservicing contract assumed by us in connection with the ResCap Acquisition.

(3) 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.

Schedule of activity related to MSRs - Fair value measurement method

Balance at December 31, 2012		$	85,213
Changes in fair value:
Due to changes in market valuation assumptions			20,680
Realization of cash flows and other changes			(8,730	)
Balance at June 30, 2013		$	97,163

Schedule of estimated change in the fair value of our MSRs

		Adverse change in fair value
		10%				20%
Weighted average prepayment speeds		$	(3,850	)		$	(7,459	)
Discount rate (Option-adjusted spread)		$	(4,143	)		$	(7,962	)

Schedule of components of servicing and subservicing fees

		Three Months								Six Months
		2013				2012				2013				2012
Loan servicing and subservicing fees		$	363,739			$	149,384			$	631,767			$	261,973
Home Affordable Modification Program (HAMP) fees			46,792				21,390				86,939				34,074
Late charges			29,589				17,676				55,485				36,521
Loan collection fees			7,755				3,830				14,137				7,169
Custodial accounts (float earnings)			2,110				663				3,790				1,450
Other			32,647				7,392				58,007				14,237
		$	482,632			$	200,335			$	850,125			$	355,424

Schedule of composition of servicing and subservicing portfolios by type of property serviced

		Residential				Commercial				Total
UPB at June 30, 2013
Servicing (1)		$	344,173,439			$	—			$	344,173,439
Subservicing			92,081,944				452,042				92,533,986
		$	436,255,383			$	452,042			$	436,707,425
UPB at December 31, 2012
Servicing (1)		$	175,762,161			$	—			$	175,762,161
Subservicing			27,903,555				401,031				28,304,586
		$	203,665,716			$	401,031			$	204,066,747

(1) Includes UPB of $99.8 billion and $79.4 billion at June 30, 2013 and December 31, 2012, respectively, for which the Rights to MSRs have been sold to HLSS.

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