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Fair Value (Tables)
 6 Months Ended
Jun. 30, 2017
Fair Value Disclosures [Abstract]  
Summary of Assets and Liabilities in Each Level of Fair Value Hierarchy
The following table summarizes the assets and liabilities in each level of the fair value hierarchy (in thousands). There was an insignificant amount of assets or liabilities measured at fair value on a recurring basis utilizing Level 1 assumptions.
 
 
June 30, 
 2017
 
December 31, 
 2016
Level 2
 
 
 
 
Assets
 
 
 
 
Mortgage loans held for sale
 
$
1,000,830

 
$
1,176,280

Servicing rights carried at fair value
 
6,650

 
13,170

Freestanding derivative instruments
 
8,835

 
34,543

Level 2 assets
 
$
1,016,315

 
$
1,223,993

Liabilities
 
 
 
 
Freestanding derivative instruments
 
$
3,749

 
$
7,611

Servicing rights related liabilities
 
1,314

 
1,902

Level 2 liabilities
 
$
5,063

 
$
9,513

 
 
 
 
 
Level 3
 
 
 
 
Assets
 
 
 
 
Reverse loans
 
$
10,440,669

 
$
10,742,922

Mortgage loans related to Non-Residual Trusts
 
406,006

 
450,377

Mortgage loans held for sale
 
8,738

 
—

Charged-off loans
 
49,626

 
46,963

Receivables related to Non-Residual Trusts
 
11,841

 
15,033

Servicing rights carried at fair value
 
864,108

 
936,423

Freestanding derivative instruments (IRLCs)
 
31,687

 
53,394

Level 3 assets
 
$
11,812,675

 
$
12,245,112

Liabilities
 
 
 
 
Freestanding derivative instruments (IRLCs)
 
$
2,175

 
$
4,193

Mortgage-backed debt related to Non-Residual Trusts
 
470,600

 
514,025

HMBS related obligations
 
9,986,409

 
10,509,449

Level 3 liabilities
 
$
10,459,184

 
$
11,027,667
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis Utilizing Significant Unobservable Inputs Reconciliation
The following assets and liabilities are measured on the consolidated balance sheets at fair value on a recurring basis utilizing significant unobservable inputs or Level 3 assumptions in their valuation. The following tables provide a reconciliation of the beginning and ending balances of these assets and liabilities (in thousands):

 
 
For the Three Months Ended June 30, 2017
 
 
Fair Value
April 1, 2017
 
Total
Gains (Losses)
Included in
Comprehensive Loss
 
Purchases
 
Sales and Other
 
Originations / Issuances
 
Settlements
 
Fair Value
June 30, 2017
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse loans
 
$
10,599,732

 
$
72,569

 
$
1,635

 
$
—

 
$
84,972

 
$
(318,239
)
 
$
10,440,669

Mortgage1loans related to Non-Residual Trusts (1)
 
440,219

 
(3,343
)
 
—

 
(8,890
)
 
—

 
(21,980
)
 
406,006

Mortgage loans held for sale (1)
 
—

 
6

 
—

 
8,890

 
—

 
(158
)
 
8,738

Charged-off loans (2)
 
52,071

 
8,161

 
—

 
—

 
—

 
(10,606
)
 
49,626

Receivables related to Non-Residual Trusts
 
13,848

 
533

 
—

 
—

 
—

 
(2,540
)
 
11,841

Servicing rights carried at fair value
 
909,270

 
(66,633
)
 
73

 
4,131

 
17,267

 
—

 
864,108

Freestanding derivative instruments (IRLCs)
 
45,347

 
(13,590
)
 
—

 
—

 
—

 
(70
)
 
31,687

Total assets
 
$
12,060,487

 
$
(2,297
)
 
$
1,708

 
$
4,131

 
$
102,239

 
$
(353,593
)
 
$
11,812,675

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freestanding derivative instruments (IRLCs)
 
$
(714
)
 
$
(1,461
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2,175
)
Mortgage-backed debt related to Non-Residual Trusts
 
(498,768
)
 
(5,406
)
 
—

 
—

 
—

 
33,574

 
(470,600
)
HMBS related obligations
 
(10,289,505
)
 
(64,697
)
 
—

 
—

 
(123,695
)
 
491,488

 
(9,986,409
)
Total liabilities
 
$
(10,788,987
)
 
$
(71,564
)
 
$
—

 
$
—

 
$
(123,695
)
 
$
525,062

 
$
(10,459,184
)
__________
(1)
During the three months ended June 30, 2017, $8.9 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 12 for additional information on the mandatory call obligations.
(2)
Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $1.7 million during the three months ended June 30, 2017.
 
 
For the Three Months Ended June 30, 2016
 
 
Fair Value
April 1, 2016
 
Total
Gains (Losses)
Included in
Comprehensive Loss
 
Purchases and Other
 
Sales
 
Originations / Issuances
 
Settlements
 
Fair Value
June 30, 2016
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse loans
 
$
10,872,891

 
$
141,375

 
$
84,935

 
$
—

 
$
118,807

 
$
(307,771
)
 
$
10,910,237

Mortgage loans related to Non-Residual Trusts 
 
506,337

 
6,418

 
—

 
—

 
—

 
(24,576
)
 
488,179

Charged-off loans (1)
 
53,246

 
9,668

 
—

 
—

 
—

 
(11,852
)
 
51,062

Receivables related to Non-Residual Trusts
 
14,118

 
618

 
—

 
—

 
—

 
(2,055
)
 
12,681

Servicing rights carried at fair value (2)
 
1,427,331

 
(187,493
)
 
(2,531
)
 
(28,235
)
 
46,279

 
—

 
1,255,351

Freestanding derivative instruments (IRLCs)
 
64,407

 
11,304

 
—

 
—

 
—

 
(234
)
 
75,477

Total assets
 
$
12,938,330

 
$
(18,110
)
 
$
82,404

 
$
(28,235
)
 
$
165,086

 
$
(346,488
)
 
$
12,792,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freestanding derivative instruments (IRLCs)
 
$
(255
)
 
$
92

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(163
)
Servicing rights related liabilities
 
(105,559
)
 
1,903

 
—

 
—

 
(27,886
)
 
10,717

 
(120,825
)
Mortgage-backed debt related to Non-Residual Trusts
 
(564,832
)
 
(7,987
)
 
—

 
—

 
—

 
24,752

 
(548,067
)
HMBS related obligations
 
(10,697,435
)
 
(133,725
)
 
—

 
—

 
(207,160
)
 
321,172

 
(10,717,148
)
Total liabilities
 
$
(11,368,081
)
 
$
(139,717
)
 
$
—

 
$
—

 
$
(235,046
)
 
$
356,641

 
$
(11,386,203
)
__________
(1)
Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $3.4 million during the three months ended June 30, 2016.
(2)
During the three months ended June 30, 2016, the Company sold mortgage servicing rights with a fair value of $28.2 million and recognized a total net loss on sale of $0.5 million.

 
 
For the Six Months Ended June 30, 2017
 
 
Fair Value
January 1, 2017
 
Total
Gains (Losses)
Included in
Comprehensive Loss
 
Purchases
 
Sales and Other
 
Originations / Issuances
 
Settlements
 
Fair Value
June 30, 2017
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse loans
 
$
10,742,922

 
$
115,181

 
$
44,769

 
$
—

 
$
172,034

 
$
(634,237
)
 
$
10,440,669

Mortgage1loans related to Non-Residual Trusts (1)
 
450,377

 
9,159

 
—

 
(8,890
)
 
—

 
(44,640
)
 
406,006

Mortgage loans held for sale (1)
 
—

 
6

 
—

 
8,890

 
—

 
(158
)
 
8,738

Charged-off loans (2)
 
46,963

 
22,752

 
—

 
—

 
—

 
(20,089
)
 
49,626

Receivables related to Non-Residual Trusts
 
15,033

 
3,102

 
—

 
—

 
—

 
(6,294
)
 
11,841

Servicing rights carried at fair value
 
936,423

 
(119,112
)
 
519

 
4,207

 
42,071

 
—

 
864,108

Freestanding derivative instruments (IRLCs)
 
53,394

 
(21,596
)
 
—

 
—

 
—

 
(111
)
 
31,687

Total assets
 
$
12,245,112

 
$
9,492

 
$
45,288

 
$
4,207

 
$
214,105

 
$
(705,529
)
 
$
11,812,675

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freestanding derivative instruments (IRLCs)
 
$
(4,193
)
 
$
2,018

 
$
—

 
$
—

 
$
—

 
$
—

 
$
(2,175
)
Mortgage-backed debt related to Non-Residual Trusts
 
(514,025
)
 
(13,965
)
 
—

 
—

 
—

 
57,390

 
(470,600
)
HMBS related obligations
 
(10,509,449
)
 
(92,607
)
 
—

 
—

 
(278,010
)
 
893,657

 
(9,986,409
)
Total liabilities
 
$
(11,027,667
)
 
$
(104,554
)
 
$
—

 
$
—

 
$
(278,010
)
 
$
951,047

 
$
(10,459,184
)
__________
(1)
During the six months ended June 30, 2017, $8.9 million of loans transferred from mortgage loans related to Non-Residual Trusts to mortgage loans held for sale upon exercising a mandatory call obligation. See Note 12 for additional information on the mandatory call obligations.
(2)
Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $11.9 million during the six months ended June 30, 2017.
 
 
For the Six Months Ended June 30, 2016
 
 
Fair Value
January 1, 2016
 
Total
Gains (Losses)
Included in
Comprehensive Loss
 
Purchases and Other
 
Sales
 
Originations / Issuances
 
Settlements
 
Fair Value
June 30, 2016
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reverse loans
 
$
10,763,816

 
$
296,209

 
$
138,955

 
—

 
$
245,958

 
$
(534,701
)
 
$
10,910,237

Mortgage loans related to Non-Residual Trusts 
 
526,016

 
11,581

 
—

 
—

 
—

 
(49,418
)
 
488,179

Charged-off loans (1)
 
49,307

 
24,044

 
—

 
—

 
—

 
(22,289
)
 
51,062

Receivables related to Non-Residual Trusts
 
16,542

 
151

 
—

 
—

 
—

 
(4,012
)
 
12,681

Servicing rights carried at fair value (2)
 
1,682,016

 
(514,073
)
 
17,106

 
(28,235
)
 
98,537

 
—

 
1,255,351

Freestanding derivative instruments (IRLCs)
 
51,519

 
24,406

 
—

 
—

 
—

 
(448
)
 
75,477

Total assets
 
$
13,089,216

 
$
(157,682
)
 
$
156,061

 
$
(28,235
)
 
$
344,495

 
$
(610,868
)
 
$
12,792,987

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freestanding derivative instruments (IRLCs)
 
$
(1,070
)
 
$
907

 
$
—

 
—

 
$
—

 
$
—

 
$
(163
)
Servicing rights related liabilities
 
(117,000
)
 
5,197

 
—

 
—

 
(27,886
)
 
18,864

 
(120,825
)
Mortgage-backed debt related to Non-Residual Trusts
 
(582,340
)
 
(14,919
)
 
—

 
—

 
—

 
49,192

 
(548,067
)
HMBS related obligations
 
(10,647,382
)
 
(253,351
)
 
—

 
—

 
(410,107
)
 
593,692

 
(10,717,148
)
Total liabilities
 
$
(11,347,792
)
 
$
(262,166
)
 
$
—

 
$
—

 
$
(437,993
)
 
$
661,748

 
$
(11,386,203
)
__________
(1)
Included in gains on charged-off loans are gains from instrument-specific credit risk, which primarily result from changes in assumptions related to collection rates and discount rates, of $14.3 million during the six months ended June 30, 2016.
(2)
During the six months ended June 30, 2016, the Company sold mortgage servicing rights with a fair value of $28.2 million and recognized a total net loss on sale of $0.5 million.
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities on Recurring Basis
The following tables present the significant unobservable inputs used in the fair value measurement of the assets and liabilities described above. The Company utilizes a discounted cash flow model to estimate the fair value of all Level 3 assets and liabilities included on the Consolidated Financial Statements at fair value on a recurring basis, with the exception of IRLCs for which the Company utilizes a market approach. Significant increases or decreases in any of the inputs disclosed below could result in a significantly lower or higher fair value measurement.
 
 
 
 
June 30, 2017
 
December 31, 2016
 
 
Significant
Unobservable Input (1) (2)
 
Range of Input (3)
 
Weighted
Average of Input (3)
 
Range of Input (3)
 
Weighted
Average of Input (3)
Assets
 
 
 
 
 
 
 
 
 
 
Reverse loans
 
Weighted-average remaining life in years (4)
 
0.3 - 10.2
 
3.6

 
0.6 - 10.2
 
3.8

 
 
Conditional repayment rate
 
12.81% - 70.80%
 
30.91
%
 
13.23% - 55.32%
 
28.48
%
 
 
Discount rate
 
1.81% - 3.65%
 
3.05
%
 
1.93% - 3.69%
 
2.93
%
Mortgage loans related to Non-Residual Trusts
 
Conditional prepayment rate
 
1.97% - 2.52%
 
2.28
%
 
1.98% - 2.67%
 
2.27
%
 
 
Conditional default rate
 
1.06% - 5.17%
 
2.87
%
 
1.02% - 4.25%
 
2.61
%
 
 
Loss severity
 
87.95% - 100.00%
 
99.04
%
 
79.98% - 100.00%
 
96.61
%
 
 
Discount rate
 
8.00%
 
8.00
%
 
8.00%
 
8.00
%
Mortgage loans held for sale
 
Conditional prepayment rate
 
2.10%
 
2.10
%
 
—
 
—

 
 
Conditional default rate
 
1.49%
 
1.49
%
 
—
 
—

 
 
Loss severity
 
85.57%
 
85.57
%
 
—
 
—

 
 
Discount rate
 
8.00%
 
8.00
%
 
—
 
—

Charged-off loans
 
Collection rate
 
3.04% - 5.15%
 
3.15
%
 
2.69% - 3.55%
 
2.74
%
 
 
Discount rate
 
28.00%
 
28.00
%
 
28.00%
 
28.00
%
Receivables related to Non-Residual Trusts
 
Conditional prepayment rate
 
2.37% - 3.23%
 
2.83
%
 
2.22% - 3.17%
 
2.65
%
 
 
Conditional default rate
 
2.60% - 5.87%
 
3.78
%
 
2.32% - 4.66%
 
3.34
%
 
 
Loss severity
 
86.18% - 100.00%
 
97.41
%
 
77.88% - 100.00%
 
94.51
%
 
 
Discount rate
 
0.50%
 
0.50
%
 
0.50%
 
0.50
%
Servicing rights carried at fair value
 
Weighted-average remaining life in years (4)
 
2.5 - 7.1
 
5.9

 
2.6 - 7.4
 
6.0

 
 
Discount rate
 
10.62% - 15.22%
 
11.97
%
 
10.68% - 14.61%
 
11.56
%
 
 
Conditional prepayment rate
 
6.08% - 23.87%
 
9.82
%
 
5.76% - 21.67%
 
9.09
%
 
 
Conditional default rate
 
0.02% - 3.21%
 
0.85
%
 
0.04% - 2.97%
 
0.88
%
 
 
Cost to service
 
$62 - $1,260
 
$132
 
$62 - $1,260
 
$128
Interest rate lock commitments
 
Loan funding probability
 
1.00% - 100.00%
 
64.94
%
 
16.00% - 100.00%
 
75.86
%
 
 
Fair value of initial servicing rights multiple (5) 
 
0.01 - 5.16
 
2.67

 
0.01 - 5.98
 
3.06

 
 
 
 
June 30, 2017
 
December 31, 2016
 
 
Significant
Unobservable Input (1) (2)
 
Range of Input (3)
 
Weighted
Average of Input (3)
 
Range of Input (3)
 
Weighted
Average of Input (3)
Liabilities
 
 
 
 
 
 
 
 
 
 
Interest rate lock commitments
 
Loan funding probability
 
21.18% - 100.00%
 
83.12
%
 
34.40% - 100.00%
 
83.36
%
 
 
Fair value of initial servicing rights multiple (5)
 
0.21 - 5.08
 
3.39

 
0.04 - 6.04
 
3.69

Mortgage-backed debt related to Non-Residual Trusts
 
Conditional prepayment rate
 
2.37% - 3.23%
 
2.83
%
 
2.22% - 3.17%
 
2.65
%
 
 
Conditional default rate
 
2.60% - 5.87%
 
3.78
%
 
2.32% - 4.66%
 
3.34
%
 
 
Loss severity
 
86.18% - 100.00%
 
97.41
%
 
77.88% - 100.00%
 
94.51
%
 
 
Discount rate
 
6.00%
 
6.00
%
 
6.00%
 
6.00
%
HMBS related obligations
 
Weighted-average remaining life in years (4)
 
0.2 - 7.6
 
3.2

 
0.4 - 7.2
 
3.2

 
 
Conditional repayment rate
 
11.10% - 76.13%
 
30.09
%
 
11.49% - 57.76%
 
27.74
%
 
 
Discount rate
 
1.47% - 3.12%
 
2.70
%
 
1.50% - 3.17%
 
2.56
%
__________
(1)
Conditional repayment rate includes assumptions for both voluntary and involuntary rates as well as assumptions for the assignment of HECMs to HUD, in accordance with obligations as servicer.
(2)
Voluntary and involuntary prepayment rates have been presented as conditional prepayment rate and conditional default rate, respectively.
(3)
With the exception of loss severity, fair value of initial servicing rights embedded in IRLCs and discount rate on charged-off loans, all significant unobservable inputs above are based on the related unpaid principal balance of the underlying collateral, or in the case of HMBS related obligations, the balance outstanding. Loss severity is based on projected liquidations. Fair value of servicing rights embedded in IRLCs represents a multiple of the annual servicing fee. The discount rate on charged-off loans is based on the loan balance at fair value.
(4)
Represents the remaining weighted-average life of the related unpaid principal balance or balance outstanding of the underlying collateral adjusted for assumptions for conditional repayment rate, conditional prepayment rate and conditional default rate, as applicable.
(5)
Fair value of servicing rights embedded in IRLCs, which represents a multiple of the annual servicing fee, excludes the impact of certain IRLCs identified as servicing released for which the Company does not ultimately realize the benefits.
Schedule of Estimated Fair Value and Unpaid Principal Balance, Fair Value Option
Presented in the table below is the estimated fair value and unpaid principal balance of loans and debt instruments that have contractual principal amounts and for which the Company has elected the fair value option (in thousands):
 
 
June 30, 2017
 
December 31, 2016
 
 
Estimated
Fair Value
 
Unpaid Principal
Balance
 
Estimated
Fair Value
 
Unpaid Principal
Balance
Loans at fair value under the fair value option
 
 
 
 
 
 
 
 
Reverse loans (1)
 
$
10,440,669

 
$
10,018,774

 
$
10,742,922

 
$
10,218,007

Mortgage loans held for sale (1)
 
1,009,568

 
969,551

 
1,176,280

 
1,148,897

Mortgage loans related to Non-Residual Trusts
 
406,006

 
469,429

 
450,377

 
513,545

Charged-off loans
 
49,626

 
2,391,064

 
46,963

 
2,439,318

Total
 
$
11,905,869

 
$
13,848,818

 
$
12,416,542

 
$
14,319,767


 
 
 
 
 
 
 
 
Debt instruments at fair value under the fair value option
 
 
 
 
 
 
 
 
Mortgage-backed debt related to Non-Residual Trusts
 
$
470,600

 
$
474,980

 
$
514,025

 
$
518,317

HMBS related obligations (2)
 
9,986,409

 
9,481,428

 
10,509,449

 
9,916,383

Total
 
$
10,457,009

 
$
9,956,408

 
$
11,023,474

 
$
10,434,700

__________
(1)
Includes loans that collateralize master repurchase agreements. Refer to Note 9 for additional information.
(2)
For HMBS related obligations, the unpaid principal balance represents the balance outstanding.
Schedule of Significant Unobservable Inputs Used in Fair Value Measurement of Real Estate Owned
The following table presents the significant unobservable input used in the fair value measurement of real estate owned, net:
 
 
 
 
June 30, 2017
 
December 31, 2016
 
 
Significant
Unobservable Input
 
Range of Input
 
Weighted
Average of Input
 
Range of Input
 
Weighted
Average of Input
Real estate owned, net
 
Loss severity (1)
 
0.00% - 85.91%
 
6.80
%
 
0.00% - 61.61%
 
7.30
%

__________
(1)
Loss severity is based on the unpaid principal balance of the related loan at the time of foreclosure.
Schedule of Carrying Amounts and Estimated Fair Values of Financial Assets and Liabilities Not Recorded at Fair Value
The following table presents the carrying amounts and estimated fair values of financial assets and liabilities that are not recorded at fair value on a recurring or non-recurring basis and their respective levels within the fair value hierarchy (in thousands). This table excludes cash and cash equivalents, restricted cash and cash equivalents, servicer payables and warehouse borrowings as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value.
 
 
 
 
June 30, 2017
 
December 31, 2016
 
 
Fair Value
Hierarchy
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Financial assets
 
 
 
 
 
 
 
 
 
 
Residential loans at amortized cost, net (1)
 
Level 3
 
$
709,080

 
$
712,776

 
$
665,209

 
$
674,851

Servicer and protective advances, net
 
Level 3
 
915,185

 
864,023

 
1,195,380

 
1,147,155

 
 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
 
Servicing advance liabilities (2)
 
Level 3
 
543,391

 
543,869

 
781,734

 
782,570

Corporate debt (3)
 
Level 2
 
2,114,857

 
1,715,781

 
2,126,176

 
1,967,518

Mortgage-backed debt carried at amortized cost
 
Level 3
 
407,175

 
417,212

 
429,931

 
435,679

__________
(1)
Includes loans subject to repurchase from Ginnie Mae.
(2)
The carrying amounts of servicing advance liabilities are net of deferred issuance costs, including those relating to line-of-credit arrangements, which are recorded in other assets.
(3)
The carrying amounts of corporate debt are net of the 2013 Revolver deferred issuance costs, which are recorded in other assets on the consolidated balance sheets.
Schedule of Net Gains on Sales of Loans
Provided in the table below is a summary of the components of net gains on sales of loans (in thousands):
 
 
For the Three Months 
 Ended June 30,
 
For the Six Months 
 Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
Realized gains on sales of loans
 
$
82,683

 
$
79,999

 
$
108,768

 
$
160,079

Change in unrealized gains on loans held for sale
 
(6,046
)
 
2,548

 
13,612

 
12,839

Gains (losses) on interest rate lock commitments
 
(15,052
)
 
11,395

 
(19,578
)
 
25,312

Losses on forward sales commitments
 
(2,858
)
 
(43,384
)
 
(23,406
)
 
(110,337
)
Losses on MBS purchase commitments
 
(14,102
)
 
(2,477
)
 
(2,218
)
 
(13,273
)
Capitalized servicing rights
 
19,006

 
46,279

 
51,390

 
98,537

Provision for repurchases
 
(2,003
)
 
(3,724
)
 
(3,798
)
 
(8,437
)
Interest income
 
9,222

 
9,540

 
20,425

 
19,933

Other
 
(305
)
 
—

 
(294
)
 
—

Net gains on sales of loans
 
$
70,545

 
$
100,176

 
$
144,901

 
$
184,653
Schedule of Net Fair Value Gains on Reverse Loans and Related HMBS Obligations
Provided in the table below is a summary of the components of net fair value gains on reverse loans and related HMBS obligations (in thousands):
 
 
For the Three Months 
 Ended June 30,
 
For the Six Months 
 Ended June 30,
 
 
2017
 
2016
 
2017
 
2016
Interest income on reverse loans
 
$
113,644

 
$
113,631

 
$
226,946

 
$
224,225

Change in fair value of reverse loans
 
(41,075
)
 
27,744

 
(111,765
)
 
71,984

Net fair value gains on reverse loans
 
72,569

 
141,375

 
115,181

 
296,209

 
 
 
 
 
 
 
 
 
Interest expense on HMBS related obligations
 
(101,290
)
 
(103,368
)
 
(203,726
)
 
(206,622
)
Change in fair value of HMBS related obligations
 
36,593

 
(30,357
)
 
111,119

 
(46,729
)
Net fair value losses on HMBS related obligations
 
(64,697
)
 
(133,725
)
 
(92,607
)
 
(253,351
)
Net fair value gains on reverse loans and related HMBS obligations
 
$
7,872

 
$
7,650

 
$
22,574

 
$
42,858