Note 10 – Other Assets

Other assets consisted of the following at the dates indicated:



	September 30, 2015		December 31, 2014
Contingent loan repurchase asset (1)	$	310,373	$	274,265
Debt service accounts (2)	123,023		91,974
Prepaid expenses	57,572		17,957
Prepaid lender fees and debt issuance costs, net	51,937		31,337
Real estate	18,247		16,720
Prepaid income taxes	12,921		16,450
Derivatives, at fair value	10,010		6,065
Mortgage backed securities, at fair value	8,541		7,335
Other	16,655		28,708
	$	609,279	$	490,811

(1)

In connection with the Ginnie Mae EBO Transactions, our agreements provide either that: (a) we have the right, but not the obligation, to repurchase previously transferred mortgage loans under certain conditions, including the mortgage loans becoming eligible for pooling under a program sponsored by Ginnie Mae, or (b) we have the obligation to repurchase previously transferred mortgage loans that have been subject to a successful trial modification before any permanent modification is made. Once these conditions are met, we have effectively regained control over the mortgage loan(s) and under GAAP, must re-recognize the loan on our consolidated balance sheet and establish a corresponding repurchase liability. With respect to those loans that we have the right, but not the obligation, to repurchase under the applicable agreement, this requirement applies regardless of whether we have any intention to repurchase the loan. We re-recognized mortgage loans in Other assets and the corresponding liability in Other liabilities.

(2)

Under our advance funding financing facilities, we are contractually required to remit collections on pledged advances to the trustee within two days of receipt. The collected funds are not applied to reduce the related match funded debt until the payment dates specified in the indenture. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities and certain of our warehouse facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest. The funds related to match funded facilities are held in interest earning accounts in the name of the SPE created in connection with the facility.