Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following components (in thousands):

	For the Years Ended December 31,
	2014			2013		2012
Current
Federal	$	25,417		$	54,093	$	8,376
State and local	979			7,840		680
Current income tax expense	26,396			61,933		9,056
Deferred
Federal	(33,788		)	84,974		(20,695		)
State and local	(1,620		)	12,444		(1,678		)
Deferred income tax expense (benefit)	(35,408		)	97,418		(22,373		)
Total income tax expense (benefit)	$	(9,012	)	$	159,351	$	(13,317	)

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense (benefit) at the Company’s effective tax rate differed from the statutory tax rate as follows (in thousands):

	For the Years Ended December 31,
	2014			2013		2012
Income (loss) before income taxes	$	(119,340	)	$	412,818	$	(35,451	)
Tax provision at statutory tax rate of 35%	(41,769		)	144,486		(12,408		)
Effect of:
Goodwill impairment	28,794			—		—
State and local income tax	(1,649		)	12,828		(1,266		)
Permanent acquisition costs	—			—		610
Contingent earn-out payments	—			1,680		—
Penalties	5,140			202		(89		)
Other	472			155		(164		)
Total income tax expense (benefit)	$	(9,012	)	$	159,351	$	(13,317	)

Schedule of Deferred Tax Assets and Liabilities

The following table summarizes the components of deferred tax assets and liabilities (in thousands):

	December 31,
	2014			2013
Deferred tax assets
Reverse loans	$	43,285		$	41,330
Intangible assets	30,701			19,929
Accrued legal fees	28,916			—
Excess servicing spread liability	26,610			—
Accrued expenses	26,202			26,260
Servicer and protective advances	24,580			7,940
Curtailment liability	24,173			21,635
Mandatory call obligation	20,596			20,169
Other	39,283			43,859
Total deferred tax assets	264,346			181,122
Valuation allowance	(3,096		)	(7,453		)
Total deferred tax assets, net of valuation allowance	261,250			173,669
Deferred tax liabilities
Servicing rights	(182,560		)	(143,087		)
Net investment in residential loans	(57,906		)	(53,715		)
Goodwill	(48,130		)	(35,080		)
Discount on Convertible Notes	(24,799		)	(27,969		)
Intangible assets	(14,480		)	(12,369		)
Other	(19,992		)	(23,056		)
Total deferred tax liabilities	(347,867		)	(295,276		)
Deferred tax liability, net	$	(86,617	)	$	(121,607	)

Summary of Valuation Allowance

The following table summarizes the activity in the valuation allowance on deferred tax assets (in thousands):

	For the Years Ended December 31,
	2014			2013			2012
Balance at beginning of year	$	7,453		$	30,712		$	29,899
Charges to income tax expense	24			72			894
Deductions	(4,381		)	(23,331		)	(81		)
Balance at end of year	$	3,096		$	7,453		$	30,712

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of the total liability for unrecognized tax benefits is as follows (in thousands):

	For the Years Ended December 31,
	2014		2013			2012
Gross unrecognized tax benefits at the beginning of the year	12,523		$	17,537		$	9,026
Increases (reductions) related to prior year tax positions	(1,571	)	(5,921		)	8,602
Increases related to current year tax positions	1,377		2,044			1,255
Reductions as a result of a lapse of the statute of limitations	(3,624	)	(1,137		)	(1,346		)
Gross unrecognized tax benefits at the end of the year	8,705		$	12,523		$	17,537