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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2014
Fair Value Disclosures [Abstract]  
Schedule of Fair Value Assets and Liabilities
The carrying amounts and the estimated fair values of our financial instruments and our nonfinancial assets measured at fair value on a recurring or non-recurring basis are as follows at the dates indicated:
 
 
 
June 30, 2014
 
December 31, 2013
 
Level
 
Carrying Value
 
Fair Value
 
Carrying Value
 
Fair Value
Financial assets:
 
 
 

 
 

 
 

 
 

Loans held for sale:
 
 
 
 
 
 
 
 
 
Loans held for sale, at fair value (a)
2
 
$
410,335

 
$
410,335

 
$
503,753

 
$
503,753

Loans held for sale, at lower of cost or fair value (b)
3
 
91,508

 
91,508

 
62,907

 
62,907

Total Loans held for sale
 
 
$
501,843

 
$
501,843

 
$
566,660

 
$
566,660

Loans held for investment - Reverse mortgages, at fair value (a)
3
 
$
1,107,626

 
$
1,107,626

 
$
618,018

 
$
618,018

Advances and match funded advances (c)
3
 
3,463,386

 
3,463,386

 
3,443,215

 
3,443,215

Receivables, net (c)
3
 
239,748

 
239,748

 
152,516

 
152,516

 
 
 
 
 
 
 
 
 
 
Financial liabilities:
 
 
 

 
 

 
 

 
 

Match funded liabilities (c)
3
 
$
2,072,517

 
$
2,072,517

 
$
2,364,814

 
$
2,364,814

Financing liabilities:
 
 
 
 
 
 
 
 
 
HMBS-related borrowings, at fair value (a)
3
 
$
1,033,712

 
$
1,033,712

 
$
615,576

 
$
615,576

Other (c)
3
 
829,864

 
834,657

 
651,397

 
651,397

Total Financing liabilities
 
 
$
1,863,576

 
$
1,868,369

 
$
1,266,973

 
$
1,266,973

Other secured borrowings:
 
 
 
 
 
 
 
 
 
Senior secured term loan (c)
3
 
$
1,279,062

 
$
1,269,171

 
$
1,284,901

 
$
1,270,108

Other (c)
3
 
406,684

 
406,684

 
492,768

 
492,768

Total Other secured borrowings
 
 
$
1,685,746

 
$
1,675,855

 
$
1,777,669

 
$
1,762,876

 
 
 
 
 
 
 
 
 
 
Senior unsecured notes
2
 
$
350,000

 
$
361,375

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Derivative financial instruments (a):
 
 
 

 
 

 
 

 
 

IRLCs
2
 
$
10,307

 
$
10,307

 
$
8,433

 
$
8,433

Forward MBS trades
1
 
(5,710
)
 
(5,710
)
 
6,905

 
6,905

Interest rate caps
3
 
97

 
97

 
442

 
442

 
 
 
 
 
 
 
 
 
 
MSRs:
 
 
 
 
 
 
 
 
 
MSRs, at fair value (a)
3
 
$
104,220

 
$
104,220

 
$
116,029

 
$
116,029

MSRs, at amortized cost (c)
3
 
1,897,500

 
2,391,873

 
1,953,352

 
2,441,719

Total MSRs
 
 
$
2,001,720

 
$
2,496,093

 
$
2,069,381

 
$
2,557,748

 
(a)
Measured at fair value on a recurring basis.
(b)
Measured at fair value on a non-recurring basis.
(c)
Disclosed, but not carried, at fair value.
Reconciliation of Level 3 Assets
The following tables present a reconciliation of the changes in fair value of Level 3 assets and liabilities that we measure at fair value on a recurring basis:
 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Derivative Financial Instruments, net
 
MSRs
 
Total
For the three months ended June 30, 2014
 
 
 
 
 
 
 
 
 
Fair value at April 1, 2014
$
923,464

 
$
(870,462
)
 
$
324

 
$
110,826

 
$
164,152

Purchases, issuances, sales and settlements:
 
 
 
 
 

 
 

 
 

Purchases
—

 
—

 
—

 
—

 
—

Issuances
180,445

 
(154,952
)
 
—

 
—

 
25,493

Transfer from loans held for sale, at fair value
—

 
—

 
—

 
—

 
—

Sales
—

 
—

 
—

 
—

 
—

Settlements
(14,572
)
 
7,648

 
—

 
—

 
(6,924
)
 
165,873

 
(147,304
)
 
—

 
—

 
18,569

Total realized and unrealized gains and (losses): (1)
 
 
 
 
 

 
 

 
 

Included in earnings
18,289

 
(15,946
)
 
(227
)
 
(6,606
)
 
(4,490
)
Included in Other comprehensive income (loss)
—

 
—

 
—

 
—

 
—

 
18,289

 
(15,946
)
 
(227
)
 
(6,606
)
 
(4,490
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

Fair value at June 30, 2014
$
1,107,626

 
$
(1,033,712
)
 
$
97

 
$
104,220

 
$
178,231

 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Derivative Financial Instruments, net
 
MSRs
 
Total
For the three months ended June 30, 2013
 
 
 
 
 
 
 
 
 
Fair value at April 1, 2013
$
—

 
$
—

 
$
(18,635
)
 
$
84,534

 
$
65,899

Purchases, issuances, sales and settlements:
 
 
 
 
 

 
 

 
 

Purchases
10,251

 
(10,179
)
 
—

 
—

 
72

Issuances
63,029

 
(65,938
)
 
—

 
—

 
(2,909
)
Sales
—

 
—

 
24,156

 
—

 
24,156

Settlements
(871
)
 
867

 
(1,375
)
 
—

 
(1,379
)
 
72,409

 
(75,250
)
 
22,781

 
—

 
19,940

Total realized and unrealized gains and (losses): (1)


 


 
 

 
 

 
 

Included in earnings
4,240

 
1,609

 
1,469

 
12,629

 
19,947

Included in Other comprehensive income (loss)
—

 
—

 
(5,439
)
 
—

 
(5,439
)
 
4,240

 
1,609

 
(3,970
)
 
12,629

 
14,508

Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

Fair value at June 30, 2013
$
76,649

 
$
(73,641
)
 
$
176

 
$
97,163

 
$
100,347

 
(1)
Total net gains (losses) attributable to derivative financial instruments still held at June 30, 2014 and June 30, 2013 were $(0.2) million and $0.1 million, respectively, for the three months ended June 30, 2014 and 2013.
 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Derivative Financial Instruments, net
 
MSRs
 
Total
For the six months ended June 30, 2014
 
 
 
 
 
 
 
 
 
Fair value at January 1, 2014
$
618,018

 
$
(615,576
)
 
$
442

 
$
116,029

 
$
118,913

Purchases, issuances, sales and settlements:
 
 
 
 
 

 
 

 
 

Purchases
—

 
—

 
23

 
—

 
23

Issuances
357,104

 
(381,579
)
 
—

 
—

 
(24,475
)
Transfer from loans held for sale, at fair value
110,874

 
—

 
—

 
—

 
110,874

Sales
—

 
—

 
—

 
—

 
—

Settlements
(28,601
)
 
13,035

 
—

 
—

 
(15,566
)
 
439,377

 
(368,544
)
 
23

 
—

 
70,856

Total realized and unrealized gains and (losses): (2)
 
 
 
 
 

 
 

 
 

Included in earnings
50,231

 
(49,592
)
 
(368
)
 
(11,809
)
 
(11,538
)
Included in Other comprehensive income (loss)
—

 
—

 
—

 
—

 
—

 
50,231

 
(49,592
)
 
(368
)
 
(11,809
)
 
(11,538
)
Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

Fair value at June 30, 2014
$
1,107,626

 
$
(1,033,712
)
 
$
97

 
$
104,220

 
$
178,231

 
Loans Held for Investment - Reverse Mortgages
 
HMBS-Related Borrowings
 
Derivative Financial Instruments, net
 
MSRs
 
Total
For the six months ended June 30, 2013
 
 
 
 
 
 
 
 
 
Fair value at January 1, 2013
$
—

 
$
—

 
$
(10,668
)
 
$
85,213

 
$
74,545

Purchases, issuances, sales and settlements:
 
 
 
 
 

 
 

 
 

Purchases
10,251

 
(10,179
)
 
—

 
—

 
72

Issuances
63,029

 
(65,938
)
 
—

 
—

 
(2,909
)
Sales
—

 
—

 
24,156

 
—

 
24,156

Settlements
(871
)
 
867

 
(1,066
)
 
—

 
(1,070
)
 
72,409

 
(75,250
)
 
23,090

 
—

 
20,249

Total realized and unrealized gains and (losses):
 
 
 
 
 

 
 

 
 

Included in earnings
4,240

 
1,609

 
117

 
11,950

 
17,916

Included in Other comprehensive income (loss)
—

 
—

 
(12,363
)
 
—

 
(12,363
)
 
4,240

 
1,609

 
(12,246
)
 
11,950

 
5,553

Transfers in and / or out of Level 3
—

 
—

 
—

 
—

 
—

Fair value at June 30, 2013
$
76,649

 
$
(73,641
)
 
$
176

 
$
97,163

 
$
100,347

(2)
Total losses attributable to derivative financial instruments still held at June 30, 2014 were $0.4 million for the six months ended June 30, 2014.