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Derivative Financial Instruments and Hedging Activities (Tables)
 12 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Changes in Notional Balance of Holdings of Derivatives
The following table summarizes the changes in the notional balances of our holdings of derivatives during the year ended December 31, 2013: 
 
IRLCs
 
U.S. Treasury Futures
 
Forward MBS Trades
 
Interest Rate Caps
 
Interest Rate Swaps
Beginning notional balance
$
1,112,519

 
$
109,000

 
$
1,638,979

 
$
1,025,000

 
$
1,495,955

Additions
5,887,759

 
85,000

 
10,578,176

 
1,900,000

 
1,280,000

Amortization
(228,806
)
 
—

 
(33,372
)
 
(56,000
)
 
—

Maturities
(5,124,849
)
 
—

 
(4,156,314
)
 
—

 
(295,604
)
Terminations
(895,187
)
 
(194,000
)
 
(7,076,821
)
 
(1,001,000
)
 
(2,480,351
)
Ending notional balance
$
751,436

 
$
—

 
$
950,648

 
$
1,868,000

 
$
—

 
 
 
 
 
 
 
 
 
 
Fair value of derivative assets (liabilities) at:
 

 
 

 
 

 
 

 
 

December 31, 2013
$
8,433

 
$
—

 
$
6,905

 
$
442

 
$
—

December 31, 2012
$
5,781

 
$
(1,258
)
 
$
(1,719
)
 
$
168

 
$
(10,836
)
 
 
 
 
 
 
 
 
 
 
Maturity
Jan. 2014 - Apr. 2014
 
N/A
 
Jan. 2014 - Feb. 2014
 
Nov. 2016
 
N/A
Schedule of Gains (Losses) on Derivatives
The following summarizes our open derivative positions at December 31, 2013 and the gains (losses) on those derivatives for the year then ended. None of the derivatives was designated as a hedge for accounting purposes at December 31, 2013:
Purpose
 
Expiration Date
 
Notional Amount
 
Fair Value (1)
 
Gains / (Losses)
 
Consolidated Statement of Operations Caption
Hedge the effect of changes in interest rates on interest expense on borrowings













Interest rate caps













Hedge the effect of changes in 1ML on advance funding facilities

2016

$
1,868,000

 
$
442

 
$
56

 
Other, net
 
 
 
 
 
 
 
 
 
 
 
Interest rate risk of mortgage loans held for sale and of IRLCs
 
 
 
 

 
 

 
 

 
 
Forward MBS trades
 
2014
 
950,648

 
6,905

 
42,732

 
Gain on loans held for sale, net
 
 
 
 
 
 
 
 
 
 
 
IRLCs
 
2014
 
751,436

 
8,433

 
523

 
Gain on loans held for sale, net
Total derivatives
 
 
 


 
$
15,780

 
$
43,311

 
 

(1)
Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities.
Schedule of Changes in the Losses on Cash Flow Hedges Included in AOCL
Changes in AOCL during the years ended December 31 were as follows:
 
2013
 
2012
 
2011
Beginning balance
$
6,441


$
7,896


$
9,392

 
 
 
 
 
 
Additional net losses on cash flow hedges
12,363


8,315


615

Ineffectiveness of cash flow hedges reclassified to earnings
(657
)

41


(1,393
)
Losses on terminated hedging relationships amortized to
earnings
(10,816
)

(10,592
)

(1,544
)
Net increase (decrease) in accumulated losses on cash flow hedges
890

 
(2,236
)
 
(2,322
)
(Increase) decrease in deferred taxes on accumulated losses on cash flow hedges
2,825

 
786

 
843

Increase (decrease) in accumulated losses on cash flow hedges, net of taxes
3,715

 
(1,450
)
 
(1,479
)
 
 
 
 
 
 
Other
(5
)
 
(5
)
 
(17
)
 
 
 
 
 
 
Ending balance
$
10,151

 
$
6,441

 
$
7,896
Schedule of Statements of Operations Related to Derivative Financial Instruments
Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31:
 
2013

2012

2011
Gains (losses) on economic hedges
(2,861
)

7,331


(4,488
)
Ineffectiveness of cash flow hedges
(657
)

41


(1,393
)
Write-off of losses in AOCL for a discontinued hedge relationship (1)
(10,816
)

(4,633
)

(1,545
)
Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (2)
—


(5,958
)

—

 
$
(14,334
)

$
(3,219
)

$
(7,426
)

(1)
Includes the write off in 2012 and 2013 of the remaining of unamortized losses when a borrowing under the related advance financing facility was repaid in full, and the facility was terminated.
(2)
See Note 4 — Sales of Advances and MSRs.