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Sales of Advances and MSRs | 12 Months Ended
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Dec. 31, 2013
Transfers and Servicing of Financial Assets [Abstract] |
Sales of Advances and MSRs | Note 4 — Sales of Advances and MSRs In order to efficiently finance our assets and operations and to create liquidity, we periodically sell MSRs, Rights to MSRs and servicing advances to market participants, including Home Loan Servicing Solutions, Ltd. and its wholly owned subsidiary, HLSS Holdings, LLC (collectively HLSS). We typically retain the right to subservice loans when we sell MSRs and Rights to MSRs. To the extent applicable, HLSS may also acquire advance SPEs and the related match funded liabilities (together with the purchase of Rights to MSRs and servicing advances, the HLSS Transactions). During the years ended December 31, 2013 and 2012, we completed HLSS Transactions relating to the Rights to MSRs for $119.7 billion and $82.7 billion of UPB, respectively. As part of the HLSS Transactions, we retain legal ownership of the MSRs and continue to service the related mortgage loans. We are obligated to transfer legal ownership of the MSRs to HLSS upon obtaining all required third party consents. At that time, we would subservice the loans pursuant to a subservicing agreement, as amended, with HLSS. See Note 26 — Related Party Transactions for additional information regarding this agreement. During 2013, we also sold MSRs to unaffiliated third parties in transactions accounted for as sales with subservicing retained. See Note 9 — Mortgage Servicing for additional information. The following table provides a summary of the assets and liabilities sold in connection with the HLSS Transactions during the years ended December 31:
| 2013 |  | 2012
Sale of MSRs accounted for as a financing | $ | 417,167 |  |  | 316,607 |
Sale of advances and match funded advances | 3,839,954 |  |  | 2,827,227 |
Sale of advance SPEs: |  |  |  |
Match funded advances | — |  |  | 413,374 |
Debt service account | — |  |  | 14,786 |
Prepaid lender fees and debt issuance costs | — |  |  | 5,422 |
Other prepaid expenses | — |  |  | 1,928 |
Match funded liabilities | — |  |  | (358,335 | )
Accrued interest payable and other accrued expenses | — |  |  | (841 | )
Net assets of advance SPEs | — |  |  | 76,334 |
Sales price, as adjusted | 4,257,121 |  |  | 3,220,168 |
Amount due to (from) HLSS for post-closing adjustments at December 31 | — |  |  | (1,410 | )
Cash received on current year sales | 4,257,121 |  |  | 3,218,758 |
Amount received from HLSS as settlement of post-closing adjustments outstanding at the end of the previous year | 1,410 |  |  | — |
Total cash received | $ | 4,258,531 |  |  | 3,218,758 |
Because we retain legal title to the MSRs, the sales of Rights to MSRs are accounted for as financings. To the extent that we obtain all the third party consents, we will derecognize the related MSRs. Upon derecognition, any resulting gain or loss will be deferred and amortized over the expected life of the related subservicing agreement. Until derecognition, we continue to recognize the full amount of servicing revenue and amortization of the MSRs. The related advance sales meet the requirements for sale accounting under GAAP. When HLSS acquired advance SPEs from Ocwen, we derecognized the consolidated assets and liabilities of the advance SPEs at the time of the sale. In subsequent sales of advances, HLSS acquired the advances directly and the transferred financial assets were accounted for as a sale and were derecognized from our financial statements. We have also evaluated our relationship with the financing SPEs to which HLSS has transferred the servicing advances that it has acquired from us and have determined that we are not required to consolidate these SPEs. We have determined that the HLSS Transactions do not constitute the disposal of a business. Therefore, there is no need to consider goodwill in determining the gain on the sale. Because the HLSS Transactions resulted in the sale of a portion of the assets within the Residential Servicing reporting unit, which is an indicator that goodwill for the reporting unit should be tested for impairment, we updated our qualitative assessment of whether it was more likely than not that the fair value of the Residential Servicing reporting unit was less than its carrying amount. Our updated assessment indicated that goodwill was not impaired.

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- Definition The entire disclosure for sales of assets and liabilities directly associated with those assets that will be transferred in the transaction. This may include a description of an asset sale (or series of individually immaterial assets sales) completed during the period, including background, timing, and assets and liabilities sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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- Details
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