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Mortgage Servicing - Schedule of Activity Related to MSRs - Amortization Method (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Dec. 31, 2015
Dec. 31, 2014
Servicing Asset at Amortized Cost, Balance [Roll Forward]        
Fair value election - transfer of MSRs carried at fair value $ 0 $ (787,142)    
Estimated fair value at end of period 696,108 787,344 $ 761,190 $ 93,901
Mortgage Servicing Rights - Amortized Costs [Member]        
Servicing Asset at Amortized Cost, Balance [Roll Forward]        
Beginning balance 377,379 1,820,091    
Fair value election - transfer of MSRs carried at fair value [1] 0 (787,142)    
Additions recognized in connection with asset acquisitions 15,968 10,055    
Additions recognized on the sale of mortgage loans 26,494 27,791    
Sales (23,521) (591,605)    
Servicing asset at amortized value, gross 396,320 479,190    
Amortization [2] (18,595) (88,188)    
Increase in impairment valuation allowance [3] (37,164) (25,051)    
Ending balance 340,561 365,951    
Estimated fair value at end of period $ 357,817 $ 404,533    
[1] Effective January 1, 2015, we elected fair value accounting for a newly-created class of non-Agency MSRs, which were previously accounted for using the amortization method, based on a different strategy for managing the risks of the underlying portfolio compared to our other MSR classes. This irrevocable election applies to all subsequently acquired or originated servicing assets and liabilities that have characteristics consistent with this class. We recorded a cumulative-effect adjustment of $52.0 million (before deferred income taxes of $9.2 million) to retained earnings as of January 1, 2015 to reflect the excess of the fair value of these MSRs over their carrying amount. At December 31, 2014, the UPB of the loans related to the non-Agency MSRs for which the fair value election was made was $195.3 billion.
[2] During 2016, principally in the third quarter, we participated in HUD’s Aged Delinquent Portfolio Loan Sale (ADPLS) program, which accelerates FHA insurance claims for a population of significantly delinquent FHA loans. The expedited claim filing process allows a servicer to reduce significantly its standard claim losses on accepted loans by shortening the servicing timeline and related expenses, some of which are not reimbursed by FHA insurance. Our participation required that we recognize $23.1 million of life-to-date losses on the claims filed in the third quarter. This loss is reported in Servicing and origination expense in the Unaudited Consolidated Statements of Operations. Because the MSRs related to the loans that were assigned to HUD had negative carrying values, our recognition of the losses on the loans reduced the negative carrying value of the MSRs thereby generating negative amortization expense for this population of MSRs. In the third quarter, this ADPLS-related negative amortization expense of $18.1 million exceeded the positive amortization expense on the remaining MSRs, generating net negative amortization for the quarter.
[3] Impairment of MSRs is recognized in Servicing and origination expense. See Note 3 – Fair Value for additional information regarding impairment and the valuation allowance.