Representation and Warranty Reserve

12 Months Ended

Dec. 31, 2011

Secondary Market Reserve [Abstract]

Representation and Warranty Reserve

Note 21 — Representation and Warranty Reserve

The following table shows the activity in the representation and warranty reserve.

	For the Years Ended December 31,
	2011			2010			2009
	(Dollars in thousands)
Balance, beginning of period,	$	79,400		$	66,000		$	42,500
Provision
Charged to gain on sale for current loan sales		8,993			35,200			26,470
Charged to representation and warranty reserve — change in estimate		150,055			61,523			75,627
Total		159,048			96,723			102,097
Charge-offs, net		(118,448	)		(83,323	)		(78,597	)
Balance, end of period	$	120,000		$	79,400		$	66,000

Reserve levels are a function of expected losses based on actual pending and expected claims and repurchase requests, historical experience and loan volume. To the extent actual outcomes differ from management estimates, additional provisions could be required that could adversely affect operations or financial position in future periods.