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(Tables)

3 Months Ended

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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