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(Tables) | 3 Months Ended
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Mar. 31, 2014
Transfers and Servicing [Abstract] |
Schedule of Activity Related to MSRs - Amortization Method | The following tables summarize the activity in the carrying value of amortization method servicing assets for the three months ended March 31:
|  | 2014 |  | 2013
Beginning balance |  | $ | 1,953,352 |  |  | $ | 678,937 |
Additions recognized in connection with business acquisitions: |  |  |  |  |  |
OSI (1) |  | 8,954 |  |  | — |
ResCap Acquisition (1) |  | 11,370 |  |  | 393,891 |
Additions recognized in connection with asset acquisitions: |  |  |  |
OneWest MSR Transaction (2) |  | 1,516 |  |  | — |
Greenpoint MSR Transaction (3) |  | 3,700 |  |  | — |
Other |  | 1,481 |  |  | 972 |
Additions recognized on the sale of mortgage loans |  | 11,614 |  |  | 28,705 |
Servicing transfers and adjustments |  | (364 | ) |  | (124 | )
Amortization (4) |  | (62,094 | ) |  | (47,987 | )
Ending balance |  | $ | 1,929,529 |  |  | $ | 1,054,394 |
Estimated fair value at end of period |  | $ | 2,774,910 |  |  | $ | 1,288,732 |
(1) | See Note 3 — Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.
(2) | The acquired MSRs relate to mortgage loans with a UPB of $1.1 billion and related servicing advances of $34.3 million acquired in the final closing of the OneWest MSR Transaction. The OneWest MSR Transaction closed in stages, and the majority of loans were boarded onto our primary servicing platform as of December 31, 2013.
(3) | The acquired MSRs relate to mortgage loans with a UPB of $948.9 million and related servicing advances of $47.6 million.
(4) | In the unaudited Consolidated Statement of Operations, 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 Expected Amortization Expense | The estimated amortization expense for MSRs, calculated based on assumptions used at March 31, 2014, is projected as follows over the next five years (See Note 1 — Description of Business and Basis of Presentation regarding a change in accounting estimate applicable to MRS amortization.):
2015 | $ | 227,807 |
2016 | 193,589 |
2017 | 166,401 |
2018 | 143,094 |
2019 | 68,417 |
Schedule of Activity Related to MSRs - Fair Value Measurement Method | The following table summarizes the activity related to fair value servicing assets for the three months ended March 31:
| 2014 |  | 2013
Beginning balance | $ | 116,029 |  |  | $ | 85,213 |
Changes in fair value (1): |  |  |
Changes in market value assumptions | (3,155 | ) |  | 4,650 |
Realization of cash flows and other changes | (2,048 | ) |  | (5,329 | )
Ending balance | $ | 110,826 |  |  | $ | 84,534 |
(1) | Changes in fair value are recognized in Servicing and origination expense in the unaudited Consolidated Statement of Operations.
Schedule of Estimated Change in the Fair Value of Our MSRs | The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of March 31, 2014 given hypothetical instantaneous parallel shifts in the yield curve:
| Adverse change in fair value
| 10% |  | 20%
Weighted average prepayment speeds | $ | (8,475 | ) |  | $ | (16,635 | )
Discount rate (Option-adjusted spread) | $ | (4,881 | ) |  | $ | (9,371 | )
Schedule of Composition of Servicing and Subservicing Portfolios by Type of Property Serviced | The following table presents the composition of our primary servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents loans for which we own the MSRs while subservicing represents all other loans. The UPB of assets serviced for others are not included on our unaudited Consolidated Balance Sheets.
| Residential |  | Commercial |  | Total
UPB at March 31, 2014 |  |  |  |  |  |  |  |
Servicing (1) | $ | 391,701,237 |  |  | $ | — |  |  | $ | 391,701,237 |
Subservicing | 57,869,359 |  |  | 318,507 |  |  | 58,187,866 |
| $ | 449,570,596 |  |  | $ | 318,507 |  |  | $ | 449,889,103 |
UPB at December 31, 2013 |  |  |  |  |  |  |  |
Servicing (1) | $ | 397,546,635 |  |  | $ | — |  |  | $ | 397,546,635 |
Subservicing | 67,104,697 |  |  | 400,502 |  |  | 67,505,199 |
| $ | 464,651,332 |  |  | $ | 400,502 |  |  | $ | 465,051,834 |
UPB at March 31, 2013 |  |  |  |  |  |  |  |
Servicing (1) | $ | 272,252,405 |  |  | $ | — |  |  | $ | 272,252,405 |
Subservicing | 194,819,256 |  |  | 392,584 |  |  | 195,211,840 |
| $ | 467,071,661 |  |  | $ | 392,584 |  |  | $ | 467,464,245 |
(1) | Includes primary servicing UPB of $170.8 billion, $175.1 billion and $92.5 billion at March 31, 2014, December 31, 2013 and March 31, 2013, respectively, for which the Rights to MSRs have been sold to HLSS.
Schedule of Components of Servicing and Subservicing Fees | The following table presents the components of servicing and subservicing fees for the three months ended March 31:
| 2014 |  | 2013
Loan servicing and subservicing fees: |  |  |
Servicing | $ | 351,823 |  |  | $ | 235,156 |
Subservicing | 33,725 |  |  | 33,866 |
| 385,548 |  |  | 269,022 |
Home Affordable Modification Program (HAMP) fees | 36,699 |  |  | 40,147 |
Late charges | 36,835 |  |  | 25,896 |
Loan collection fees | 8,294 |  |  | 6,382 |
Custodial accounts (float earnings) | 1,721 |  |  | 1,680 |
Other | 21,362 |  |  | 26,182 |
| $ | 490,459 |  |  | $ | 369,309 |

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- Definition Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107314-111719 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 20 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=13989330&loc=d3e107314-111719 + Details
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