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Mortgage Servicing (Tables) | 9 Months Ended
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Sep. 30, 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 nine months ended September 30. 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, if any.
|  | 2014 |  | 2013
Beginning balance |  | $ | 1,953,352 |  |  | $ | 678,937 |
Additions recognized in connection with business acquisitions: |  |  |  |  |  |
OSI (1) |  | 9,008 |  |  | — |
ResCap Acquisition (1) |  | 11,370 |  |  | 391,853 |
Liberty Acquisition (1) |  | — |  |  | 2,532 |
Additions recognized in connection with asset acquisitions: |  |  |  |
Ally MSR Transaction |  | — |  |  | 683,787 |
OneWest MSR Transaction (2) |  | 1,516 |  |  | 127,047 |
Greenpoint MSR Transaction (3) |  | 3,690 |  |  | — |
Other |  | 14,132 |  |  | 3,003 |
Additions recognized on the sale of mortgage loans |  | 50,480 |  |  | 63,154 |
Sales |  | (137 | ) |  | (17,523 | )
Servicing transfers and adjustments |  | (518 | ) |  | 2,052 |
Amortization |  | (186,075 | ) |  | (197,899 | )
Ending balance |  | $ | 1,856,818 |  |  | $ | 1,736,943 |
Estimated fair value at end of period |  | $ | 2,364,393 |  |  | $ | 2,532,239 |
(1) | See Note 3 – Business Acquisitions for additional information regarding MSRs recognized in connection with business acquisitions.
(2) | The acquired MSRs in 2014 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. As of September 30, 2013, we had acquired MSRs of $127.0 million with a UPB of $30.5 billion and related servicing advance receivables of $371.6 million.
(3) | The acquired MSRs relate to mortgage loans with a UPB of $948.9 million and related servicing advances of $47.6 million.
Schedule of Activity Related to MSRs - Fair Value Measurement Method | The following table summarizes the activity related to fair value servicing assets for the nine months ended September 30:
| 2014 |  | 2013
Beginning balance | $ | 116,029 |  |  | $ | 85,213 |
Servicing transfers | (934 | ) |  | — |
Changes in fair value (1): |  |  |
Changes in assumptions | (12,217 | ) |  | 19,800 |
Realization of cash flows and other changes | (930 | ) |  | (8,075 | )
Ending balance | $ | 101,948 |  |  | $ | 96,938 |
(1) | Changes in fair value are recognized in Servicing and origination expense in the unaudited Consolidated Statements of Operations.
Schedule of Estimated Change in the Fair Value of MSRs | The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of September 30, 2014 given hypothetical instantaneous parallel shifts in the yield curve:
| Adverse change in fair value
| 10% |  | 20%
Weighted average prepayment speeds | $ | (8,245 | ) |  | $ | (16,137 | )
Discount rate (Option-adjusted spread) | $ | (4,100 | ) |  | $ | (7,905 | )
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 September 30, 2014 |  |  |  |  |  |  |  |
Servicing (1) | $ | 360,919,248 |  |  | $ | — |  |  | $ | 360,919,248 |
Subservicing | 50,360,366 |  |  | 216,111 |  |  | 50,576,477 |
| $ | 411,279,614 |  |  | $ | 216,111 |  |  | $ | 411,495,725 |
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 September 30, 2013 |  |  |  |  |  |  |  |
Servicing (1) | $ | 362,792,312 |  |  | $ | — |  |  | $ | 362,792,312 |
Subservicing | 72,027,114 |  |  | 495,312 |  |  | 72,522,426 |
| $ | 434,819,426 |  |  | $ | 495,312 |  |  | $ | 435,314,738 |
(1) | Includes primary servicing UPB of $160.8 billion, $175.1 billion and $177.1 billion at September 30, 2014, December 31, 2013 and September 30, 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 and nine months ended September 30:
| Three Months |  | Nine Months
| 2014 |  | 2013 |  | 2014 |  | 2013
Loan servicing and subservicing fees: |  |  |  |  |  |  |
Servicing | $ | 331,794 |  |  | $ | 335,884 |  |  | $ | 1,039,033 |  |  | $ | 887,500 |
Subservicing | 30,926 |  |  | 35,286 |  |  | 95,509 |  |  | 115,437 |
| 362,720 |  |  | 371,170 |  |  | 1,134,542 |  |  | 1,002,937 |
Home Affordable Modification Program (HAMP) fees | 37,644 |  |  | 40,213 |  |  | 111,000 |  |  | 118,412 |
Late charges | 27,634 |  |  | 30,445 |  |  | 97,002 |  |  | 85,930 |
Loan collection fees | 8,655 |  |  | 8,387 |  |  | 25,573 |  |  | 22,524 |
Custodial accounts (float earnings) | 1,831 |  |  | 743 |  |  | 5,235 |  |  | 4,533 |
Other | 27,480 |  |  | 32,309 |  |  | 74,744 |  |  | 99,056 |
| $ | 465,964 |  |  | $ | 483,267 |  |  | $ | 1,448,096 |  |  | $ | 1,333,392 |

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- Definition Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -SubTopic 50 -Section 50 -Paragraph 3 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=7882072&loc=d3e122625-111746 + Details
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