XML 107 R16.htm IDEA: XBRL DOCUMENT

NOTE 6 LOANS HELD FOR SALE, AT FAIR VALUE

9 Months Ended

Sep. 30, 2013

Loans Held For Sale At Fair Value [Abstract]

Note 6

Loans Held for Sale, at Fair Value

Loans held for sale, at fair value, represent residential forward and reverse mortgage loans originated or purchased and held until sold to secondary market investors, such as GSEs or other third party investors. The following table summarizes the activity in the balance of Loans held for sale during the nine months ended September 30, 2013:

Balance at December 31, 2012	$	426,480
Originations and purchases (1)		5,988,501
Proceeds from sale		(6,033,785	)
Loss on sale of loans (2)		(46,962	)
Other		868
Balance at September 30, 2013	$	335,102

(1)

Purchases include $60.0 million of reverse mortgages acquired in the Liberty Acquisition.

(2)

Includes gains of $14.5 million and $20.6 million recorded during the three and nine months ended September 30, 2013, respectively, to adjust Loans – Restricted for Securitization Investors to fair value.

The following table summarizes the activity in Gain on loans held for sale, net, during the periods ended September 30:

	Three Months					Nine Months
	2013			2012		2013			2012
Gain on sales of loans (1)	$	4,622		$	—	$	36,156		$	—
Change in fair value of IRLCs		18,912			—		5,918			—
Change in fair value of loans held for sale		14,362			—		1,452			—
Gain (loss) on hedge instruments		(9,408	)		—		30,989			—
Other		(226	)		—		(1,603	)		—
	$	28,262		$	—	$	72,912		$	—

(1)

Includes gains of $16.3 million and $63.2 million for the three and nine months ended September 30, 2013, respectively, representing the value assigned to MSRs retained on sales of loans. Also includes gains of $4.1 million and $20.3 million recorded during the three and nine months ended September 30, 2013, respectively, on sales of repurchased loans into Ginnie Mae guaranteed securitizations. These loans are classified as held for sale at the lower of cost or fair value. See Note 13 – Other Assets.