XML 46 R47.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2014
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 six months ended June 30, 2014: 
 
IRLCs
 
Forward MBS Trades
 
Interest Rate Caps
Beginning notional balance
$
751,436

 
$
950,648

 
$
1,868,000

Additions
2,511,371

 
4,225,373

 
100,000

Amortization
94,571

 
—

 
(221,000
)
Maturities
(2,233,309
)
 
(1,887,517
)
 
—

Terminations
(714,928
)
 
(2,389,060
)
 
—

Ending notional balance
$
409,141

 
$
899,444

 
$
1,747,000

 
 
 
 
 
 
Fair value of derivative assets (liabilities) at:
 

 
 

 
 

June 30, 2014
$
10,307

 
$
(5,710
)
 
$
97

December 31, 2013
$
8,433

 
$
6,905

 
$
442

 
 
 
 
 
 
Maturity
July 2014 - Oct. 2014
 
July 2014 - Sept. 2014
 
Nov. 2016
Schedule of Gains (Losses) on Derivatives
The following summarizes our open derivative positions at June 30, 2014 and the gains (losses) on all derivatives used in each of the identified hedging programs for the year to date period then ended. None of the derivatives was designated as a hedge for accounting purposes at June 30, 2014:
Purpose
 
Expiration Date
 
Notional Amount
 
Fair Value (1)
 
Gains / (Losses)
 
Consolidated Statements 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

Nov. 2016

$
1,747,000

 
$
97

 
$
(368
)
 
Other, net
Interest rate risk of mortgage loans held for sale and of IRLCs
 
 
 
 
 
 
 
 
 
 
Forward MBS trades
 
July 2014 - Sept. 2014
 
899,444

 
(5,710
)
 
(31,038
)
 
Gain on loans held for sale, net
IRLCs
 
July 2014 - Oct. 2014
 
409,141

 
10,307

 
1,874

 
Gain on loans held for sale, net
Total derivatives
 
 
 


 
$
4,694

 
$
(29,532
)
 
 

(1)
Derivatives are reported at fair value in Receivables, Other assets and Other liabilities on our unaudited Consolidated Balance Sheet.
Schedule of Changes in the Losses on Cash Flow Hedges Included in AOCL
Changes in AOCL during the six months ended June 30 were as follows:
 
2014
 
2013
Beginning balance
$
10,151


$
6,441

Additional net losses on cash flow hedges
—


12,363

Ineffectiveness of cash flow hedges reclassified to earnings
—


(657
)
Losses on terminated hedging relationships amortized to earnings
(1,171
)

(1,654
)
Net increase (decrease) in accumulated losses on cash flow hedges
(1,171
)
 
10,052

Decrease (increase) in deferred taxes on accumulated losses on cash flow hedges
193

 
(3,999
)
(Decrease) increase in accumulated losses on cash flow hedges, net of taxes
(978
)
 
6,053

Other, net of income taxes
(2
)
 
(680
)
Ending balance
$
9,171

 
$
11,814
Schedule of Statements of Operations Related to Derivative Financial Instruments
Other income (expense), net, includes the following related to derivative financial instruments for the three and six months ended June 30:
 
Three Months
 
Six Months
 
2014

2013

2014
 
2013
Losses on economic hedges
$
(227
)

$
2,742


$
(368
)
 
$
(2,429
)
Ineffectiveness of cash flow hedges
—


—


—

 
(657
)
Write-off of losses in AOCL for a discontinued hedge relationship
(392
)

(1,654
)

(1,171
)
 
(1,654
)
 
$
(619
)

$
1,088


$
(1,539
)
 
$
(4,740
)