Freestanding Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Freestanding Derivative Financial Instruments Disclosure

Freestanding Derivative Financial Instruments

The following table provides the total notional or contractual amounts and related fair values of derivative assets and liabilities as well as cash margin (in thousands):

	June 30, 2017						December 31, 2016
	Notional/ Contractual Amount		Fair Value				Notional/ Contractual Amount		Fair Value
			Derivative Assets		Derivative Liabilities				Derivative Assets		Derivative Liabilities
Interest rate lock commitments	$	2,215,331	$	31,687	$	2,175	$	3,046,549	$	53,394	$	4,193
Forward sales commitments	3,083,723		8,835		1,462		3,978,000		29,471		7,609
MBS purchase commitments	699,000		—		2,287		623,500		5,072		2
Total derivative instruments			$	40,522	$	5,924			$	87,937	$	11,804
Cash margin			$	865	$	2,387			$	—	$	30,941

Derivative positions subject to netting arrangements include all forward sale commitments, MBS purchase commitments, and cash margin, as reflected in the table above, and allow the Company to net settle asset and liability positions, as well as associated cash margin, with the same counterparty. After consideration of these netting arrangements and offsetting positions by counterparty, the total net settlement amount as it relates to these positions were asset positions of $4.9 million and $5.5 million, and liability positions of $1.5 million and $9.0 million, at June 30, 2017 and December 31, 2016, respectively. A master netting arrangement with one of the Company’s counterparties also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with that same counterparty. At June 30, 2017, the Company’s net derivative asset position with that counterparty of $0.5 million was comprised of a net derivative asset position of $0.8 million and $1.6 millionof over-collateralized positions, partially offset by a cash margin received of $1.9 million associated with the master repurchase agreement.

The Company also has a master netting arrangement with another of the Company’s counterparties, which also allows for offsetting derivative positions and margin against amounts associated with the master repurchase agreement with the same counterparty. At June 30, 2017, the Company’s net derivative asset position with that counterparty was $0.8 million. Under the master netting arrangement, the Company is able to utilize certain over-collateralized positions and excess cash deposited with the counterparty associated with the master repurchase agreement to reduce potential cash margin posting requirements on derivative transactions. At June 30, 2017, there were $14.6 million of over-collateralized positions and $23.5 million in excess cash deposited with the counterparty related to the master repurchase agreement. The master netting agreement does not obligate the counterparty to transfer cash margin to the Company related to the master repurchase agreement over-collateralization and excess cash positions.

Over collateralized positions on master repurchase agreements are not reflected as margin in the table above. Refer to Note 5 for a summary of the gains and losses on freestanding derivative instruments.