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Mortgage Servicing (Tables)

9 Months Ended

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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