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Loans Held for Sale (Tables)
 9 Months Ended 12 Months Ended
Sep. 30, 2015
Dec. 31, 2014
Receivables [Abstract]    
Summary of Activity in the Balance of Loans Held for Sale, at Fair Value
The following table summarizes the activity in the balance during the nine months ended September 30:
 
2015
 
2014
Beginning balance
$
401,120

 
$
503,753

Originations and purchases
3,119,457

 
3,923,870

Proceeds from sales
(3,306,180
)
 
(4,010,644
)
Principal collections
(6,512
)
 
(9,156
)
Transfers to loans held for investment - reverse mortgages
—

 
(110,874
)
Gain on sale of loans
37,580

 
39,486

Other (1)
(9,556
)
 
(485
)
Ending balance
$
235,909

 
$
335,950
The following table summarizes the activity in the balance of Loans held for sale, at fair value, during the years ended December 31:
 
2014
 
2013
 
2012
Beginning balance
$
503,753

 
$
426,480

 
$
—

Originations and purchases (1)
4,967,767

 
8,106,742

 
670,147

Proceeds from sales
(5,015,235
)
 
(7,999,235
)
 
(241,960
)
Transfers to loans held for investment - reverse mortgages
(110,874
)
 
—

 
—

Gain (loss) on sale of loans
49,533

 
(26,981
)
 
3,889

Other
6,176

 
(3,253
)
 
(5,596
)
Ending balance
$
401,120

 
$
503,753

 
$
426,480

(1)
Purchases include $60.0 million of reverse mortgages acquired in the Liberty Acquisition in 2013 and $558.7 million of forward mortgages acquired in the Homeward Acquisition in 2012.
Summary of Activity in the Balance of Loans Held for Sale, at Lower of Cost or Fair Value
The following table summarizes the activity in the balance during the nine months ended September 30:
 
2015
 
2014
Beginning balance
$
87,492

 
$
62,907

Purchases
769,631

 
2,083,282

Proceeds from sales
(577,591
)
 
(1,744,273
)
Principal collections
(45,137
)
 
(248,552
)
Transfers to accounts receivable
(4,811
)
 
(96,257
)
Transfers to real estate owned
(18,479
)
 
(4,575
)
Gain on sale of loans
38,327

 
32,471

Decrease (increase) in valuation allowance
37,998

 
(16,282
)
Other
3,633

 
3,216

Ending balance (1) (2)
$
291,063

 
$
71,937


(1)
At September 30, 2015 and September 30, 2014, the balances are net of valuation allowances of $15.4 million and $47.0 million, respectively. The decrease in the valuation allowance for the nine months ended September 30, 2015 resulted principally from the reversal of $37.8 million of the allowance that was associated with loans that were sold to unrelated third parties during the six months ended June 30, 2015. This decrease was partly offset by an increase of $1.1 million in the allowance resulting from transfers from the liability for indemnification obligations for the initial valuation adjustment that we recognized on certain loans that we repurchased from Fannie Mae and Freddie Mac guaranteed securitizations. For the nine months ended September 30, 2014, the increase in the allowance was principally the result of $15.3 million of such transfers from the liability for indemnification obligations.
(2)
At September 30, 2015 and September 30, 2014, the balances include $98.7 million and $24.1 million, respectively, of loans that we were required to repurchase from Ginnie Mae guaranteed securitizations as part of our servicing obligations. Repurchased loans are modified or otherwise remediated through loss mitigation activities or are reclassified to receivables.
The following table summarizes the activity in the balance of Loans held for sale, at lower of cost or fair value, during the years ended December 31:
 
2014
 
2013
 
2012
Beginning balance
$
62,907

 
$
82,866

 
$
20,633

Purchases
2,462,573

 
1,632,390

 
65,756

Proceeds from sales
(2,067,965
)
 
(1,036,316
)
 
—

Principal payments
(262,196
)
 
(432,423
)
 
(1,474
)
Transfers to accounts receivable
(114,675
)
 
(218,629
)
 
—

Transfers to real estate owned
(8,808
)
 
(4,775
)
 
(999
)
Gain on sale of loans
31,853

 
35,087

 
—

Decrease (increase) in valuation allowance
(18,965
)
 
(10,644
)
 
568

Other
2,768

 
15,351

 
(1,618
)
Ending balance (1) (2) (3)
$
87,492

 
$
62,907

 
$
82,866


(1)
The balances at December 31, 2014 and 2013 includes $42.0 million and $43.1 million, respectively, of loans that we were required to repurchase from Ginnie Mae guaranteed securitizations as part of our contractual obligations as the servicer of the loans. Repurchased loans are modified or otherwise remediated through loss mitigation activities or are reclassified to receivables.
(2)
The balances at December 31, 2014, 2013 and 2012 are net of valuation allowances of $49.7 million, $30.7 million and $14.7 million, respectively. The change in the valuation allowance for the years ended December 31, 2014 and 2013 includes adjustments of $20.4 million and $15.7 million, respectively, from the liability for indemnification obligations for the initial valuation adjustment that we recognized on certain loans that we repurchased from Fannie Mae and Freddie Mac guaranteed securitizations.
(3)
The balance at December 31, 2012 includes non-performing mortgage loans with a carrying value of $65.4 million that we acquired in December 2012 and sold to Altisource Residential, LP in February 2013 for an insignificant gain.
Summary of Activity in Gain on Loans Held for Sale, Net
The following table summarizes the activity in Gain on loans held for sale, net, during the three and nine months ended September 30:
 
Three Months
 
Nine Months
 
2015
 
2014
 
2015
 
2014
Gain on sales of loans
$
34,038

 
$
42,185

 
$
130,425

 
$
145,455

Change in fair value of IRLCs
4,956

 
(4,188
)
 
3,944

 
(2,315
)
Change in fair value of loans held for sale
915

 
(9,348
)
 
(5,893
)
 
(97
)
Loss on economic hedge instruments
(12,416
)
 
(1,145
)
 
(10,878
)
 
(32,183
)
Other losses
(195
)
 
(286
)
 
(664
)
 
(819
)
 
$
27,298

 
$
27,218

 
$
116,934

 
$
110,041
The following table summarizes the activity in Gain on loans held for sale, net, during the years ended December 31:
 
2014
 
2013
 
2012
Gain on sales of loans
$
168,449

 
$
82,518

 
$
6,797

Change in fair value of IRLCs
(25,822
)
 
523

 
2

Change in fair value of loans held for sale
10,489

 
(1,709
)
 
(5,462
)
Gain (loss) on economic hedge instruments
(17,214
)
 
42,732

 
(1,075
)
Other
(1,605
)
 
(2,370
)
 
(47
)
 
$
134,297

 
$
121,694

 
$
215