Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2013

VIE Primary Beneficiary [Member]

Summary of Carrying Amounts of Assets and Liabilities

tables below are summaries of the carrying amounts of the assets and liabilities of consolidated VIEs (in thousands):


	Carrying Amount of Assets and Liabilities of Consolidated VIEs
	June 30, 2013
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing		Total
Assets
Restricted cash and cash equivalents	$	43,153	$	14,125	$	—	$	57,278
Residential loans at amortized cost, net		1,427,715		—		—		1,427,715
Residential loans at fair value		—		613,627		—		613,627
Receivables at fair value		—		50,890		—		50,890
Servicer and protective advances, net		—		—		78,309		78,309
Other assets		56,559		1,715		—		58,274

Total assets	$	1,527,427	$	680,357	$	78,309	$	2,286,093

Liabilities
Payables and accrued liabilities	$	8,753	$	—	$	—	$	8,753
Servicing advance liabilities		—		—		65,505		65,505
Mortgage-backed debt		1,259,788		721,080		—		1,980,868

Total liabilities	$	1,268,541	$	721,080	$	65,505	$	2,055,126


	Carrying Amount of Assets and Liabilities of Consolidated VIEs
	December 31, 2012
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing		Total
Assets
Restricted cash and cash equivalents	$	43,856	$	14,397	$	—	$	58,253
Residential loans at amortized cost, net		1,475,782		—		—		1,475,782
Residential loans at fair value		—		646,498		—		646,498
Receivables at fair value		—		53,975		—		53,975
Servicer and protective advances, net		—		—		77,082		77,082
Other assets		60,669		2,014		—		62,683

Total assets	$	1,580,307	$	716,884	$	77,082	$	2,374,273

Liabilities
Payables and accrued liabilities	$	9,007	$	—	$	—	$	9,007
Servicing advance liabilities		—		—		64,552		64,552
Mortgage-backed debt		1,315,442		757,286		—		2,072,728

Total liabilities	$	1,324,449	$	757,286	$	64,552	$	2,146,287

VIE Not Primary Beneficiary [Member]

Summary of Carrying Amounts of Assets and Liabilities

The following table presents the carrying amounts of the Company’s assets that relate to its variable interests in the VIEs associated with letter of credit reimbursement obligations that are not consolidated, as well as its maximum exposure to loss and the unpaid principal balance of the total assets of these unconsolidated VIEs (in thousands):


	Carrying Value of Assets Recorded on the Consolidated Balance Sheets								Unpaid Principal Balance of Total Assets of Unconsolidated VIEs
Type of Involvement	Servicing Rights, Net		Servicer and Protective Advances, Net		Total		Maximum Exposure to Loss ⁽¹⁾
Servicing arrangements with letter of credit reimbursement obligation
June 30, 2013	$	2,075	$	2,631	$	4,706	$	169,706	$	210,362
December 31, 2012		2,319		2,691		5,010		170,010		223,251

(1)

The Company’s maximum exposure to loss related to these unconsolidated VIEs equals the carrying value of servicing rights, net and servicer and protective advances, net recognized on the Company’s consolidated balance sheets plus an obligation to reimburse a third party for the final $165.0 million drawn on LOCs discussed above.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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