Excess Servicing Spread Liability Excess Servicing Spread Liability

12 Months Ended

Dec. 31, 2014

Transfers and Servicing [Abstract]

Excess Servicing Spread Liability

Excess Servicing Spread Liability

On July 1, 2014, the Company sold to WCO a portion of the excess servicing spread associated with certain mortgage loans serviced by the Company for $75.4 million. The Company retains all ancillary income associated with servicing the portfolio in addition to the receipt of a base servicing fee. The Company continues to be the servicer of the residential loans and provides all servicing functions, including responsibility to make advances. At December 31, 2014, the carrying value of the excess servicing spread liability was $66.3 million, the repayment of which is based on future servicing fees received from residential loans underlying the servicing rights. Interest expense on the excess servicing spread liability, which represents the accretion of fair value, was $4.9 million for the year ended December 31, 2014. There is no contractual interest rate on the excess servicing spread liability.