Loans Held-for-Sale

12 Months Ended

Dec. 31, 2011

Loans Held-for-Sale and Loans Held-for-Investment [Abstract]

Loans Held-for-Sale

Note 6 — Loans Held-for-Sale

Total loans held-for-sale were $1.8 billion and $2.6 billion at December 31, 2011 and 2010, respectively, and were comprised primarily of residential first mortgage loans. During the year ended December 31, 2011, the Company sold $80.3 million the net of non-performing residential first mortgage loans in the held-for-sale category at a sale price which approximated carrying value.

At December 31, 2011 and 2010, $1.6 billion and $2.3 billion of loans held-for-sale were recorded at fair value, respectively. The Company estimates the fair value of mortgage loans based on quoted market prices for securities backed by similar types of loans for which quoted market prices were available. Otherwise, the fair values of loans were estimated by discounting estimated cash flows using management’s best estimate of market interest rates for similar collateral.