XML 46 R34.htm IDEA: XBRL DOCUMENT v3.7.0.1
Mortgage Servicing (Tables)
 6 Months Ended
Jun. 30, 2017
Transfers and Servicing [Abstract]  
Schedule of Activity Related to MSRs - Amortization Method
The following table summarizes changes in the net carrying value of servicing assets that we account for using the amortization method:
Six months ended June 30,
2017
 
2016
Beginning balance
$
363,722

 
$
377,379

Additions recognized in connection with asset acquisitions
1,657

 
12,432

Additions recognized on the sale of mortgage loans
15,032

 
16,668

Sales
(1,066
)
 
178

Servicing transfers and adjustments
252

 
—

 
379,597

 
406,657

Amortization
(25,412
)
 
(21,153
)
Increase in impairment valuation allowance (1)
(4,650
)
 
(39,030
)
Ending balance
$
349,535

 
$
346,474

 
 
 
 
Estimated fair value at end of period
$
440,311

 
$
367,951


(1)
Impairment of MSRs is recognized in Servicing and origination expense in the unaudited consolidated statements of operations. See Note 3 – Fair Value for additional information regarding impairment and the valuation allowance.
Schedule of Activity Related to MSRs - Fair Value Measurement Method
The following table summarizes changes in the fair value of servicing assets that we account for at fair value on a recurring basis:
Six months ended June 30,
2017
 
2016
 
Agency
 
Non-Agency
 
Total
 
Agency
 
Non-Agency
 
Total
Beginning balance
$
13,357

 
$
665,899

 
$
679,256

 
$
15,071

 
$
746,119

 
$
761,190

Sales
—

 
(230
)
 
(230
)
 
—

 
(143
)
 
(143
)
Servicing transfers and adjustments
—

 
(1,417
)
 
(1,417
)
 
—

 
(1,275
)
 
(1,275
)
Changes in fair value (1):
 
 
 
 

 
 
 
 
 

Changes in valuation inputs or other assumptions
36

 
—

 
36

 
(5,033
)
 
—

 
(5,033
)
Realization of expected future cash flows and other changes
(950
)
 
(51,045
)
 
(51,995
)
 
(855
)
 
(53,216
)
 
(54,071
)
Ending balance
$
12,443

 
$
613,207

 
$
625,650

 
$
9,183

 
$
691,485

 
$
700,668

(1)
Changes in fair value are recognized in Servicing and origination expense in the unaudited consolidated statements of operations.
Schedule of Estimated Change in 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 June 30, 2017 given hypothetical shifts in lifetime prepayments and yield assumptions:
 
Adverse change in fair value
 
10%
 
20%
Weighted average prepayment speeds
$
(62,510
)
 
$
(126,738
)
Discount rate (option-adjusted spread)
(14,082
)
 
(25,421
)
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 servicing rights 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 June 30, 2017
 

 
 

 
 

Servicing
$
81,319,908

 
$
—

 
$
81,319,908

Subservicing
3,869,084

 
53,127

 
3,922,211

NRZ (1)
109,609,432

 
—

 
109,609,432

 
$
194,798,424

 
$
53,127

 
$
194,851,551

UPB at December 31, 2016
 

 
 

 
 

Servicing
$
86,049,298

 
$
—

 
$
86,049,298

Subservicing
4,330,084

 
92,933

 
4,423,017

NRZ (1)
118,712,748

 
—

 
118,712,748

 
$
209,092,130

 
$
92,933

 
$
209,185,063

UPB at June 30, 2016
 

 
 

 
 

Servicing
$
95,101,820

 
$
—

 
$
95,101,820

Subservicing
6,086,568

 
144,639

 
6,231,207

NRZ (1)
128,087,613

 
—

 
128,087,613

 
$
229,276,001

 
$
144,639

 
$
229,420,640

(1)
UPB of loans serviced for which the Rights to MSRs have been sold to NRZ.
Schedule of Components of Servicing and Subservicing Fees
The following table presents the components of servicing and subservicing fees:
Periods ended June 30,
Three Months
 
Six Months
2017
 
2016
 
2017
 
2016
Loan servicing and subservicing fees:
 
 
 
 
 
 
 
Servicing
$
66,018

 
$
77,083

 
$
134,640

 
$
155,581

Subservicing
1,964

 
3,197

 
4,118

 
8,447

NRZ
143,612

 
160,518

 
290,923

 
322,647

 
211,594

 
240,798

 
429,681

 
486,675

Late charges
15,610

 
17,474

 
32,394

 
36,076

Home Affordable Modification Program (HAMP) fees
10,506

 
33,493

 
31,489

 
56,111

Loan collection fees
5,936

 
6,985

 
12,255

 
14,114

Other
12,155

 
8,512

 
22,484

 
11,782

 
$
255,801

 
$
307,262

 
$
528,303

 
$
604,758