Residential Loans (Tables)

6 Months Ended

Jun. 30, 2013

Activity in Allowance for Loan Losses on Residential Loans at Amortized Cost

The following table summarizes the activity in the allowance for loan losses on residential loans at amortized cost, net (in thousands):


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2013			2012			2013			2012
Balance at beginning of period	$	19,932		$	13,784		$	20,435		$	13,824
Provision for loan losses		95			1,957			1,821			3,526
Charge-offs, net of recoveries ⁽¹⁾		(1,721	)		(1,411	)		(3,950	)		(3,020	)

Balance at end of period	$	18,306		$	14,330		$	18,306		$	14,330

(1)	Includes charge-offs recognized upon acquisition of real estate in satisfaction of residential loans of $2.0 million and $1.0 million for the three months ended June 30, 2013 and 2012, respectively, and $4.0 million and $2.2 million for the six months ended June 30, 2013 and 2012, respectively.

Schedule of Ending Balance of Allowance for Loan Losses and Recorded Investment in Residential Loans Carried at Amortized Cost by Basis of Impairment

The following table summarizes the ending balance of the allowance for loan losses and the recorded investment in residential loans at amortized cost by basis of impairment method (in thousands):


	June 30, 2013		December 31, 2012
Allowance for loan losses
Loans collectively evaluated for impairment	$	16,960	$	19,408
Loans collectively evaluated for impairment and acquired with deteriorated credit quality		1,346		1,027

Total	$	18,306	$	20,435

Recorded investment in residential loans at amortized cost
Loans collectively evaluated for impairment	$	1,435,108	$	1,483,389
Loans collectively evaluated for impairment and acquired with deteriorated credit quality		26,905		27,367

Total	$	1,462,013	$	1,510,756

Aging of Past Due Residential Loans Portfolio Accounted for Amortized Cost

The following table presents the aging of the residential loan portfolio accounted for at amortized cost, net (in thousands):


	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Residential Loans		Non- Accrual Loans
Recorded investment in residential loans at amortized cost
June 30, 2013	$	20,671	$	9,047	$	55,598	$	85,316	$	1,376,697	$	1,462,013	$	55,598
December 31, 2012		23,543		13,215		66,623		103,381		1,407,375		1,510,756		66,623

Recorded Investment in Residential Loans Accounted for Amortized Cost by Credit Quality Indicator

The following table presents the recorded investment in residential loans accounted for at amortized cost by credit quality indicator (in thousands):


	June 30, 2013		December 31, 2012
Performing	$	1,376,697	$	1,407,375
Non-performing		85,316		103,381

Total	$	1,462,013	$	1,510,756

Reconciliation of Changes in Residential Loans Held for Sale

A reconciliation of the changes in residential loans held for sale to the amounts presented in the consolidated statements of cash flows is presented in the following table (in thousands):


	For the Three Months Ended June 30, 2013			For the Six Months Ended June 30, 2013
Balance at beginning of period	$	278,474		$	45,065
Purchases and originations of residential loans held for sale		4,848,332			5,281,349
Proceeds from sales of and payments on residential loans held for sale		(3,522,518	)		(3,749,979	)
Realized gains on sales of residential loans		75,918			84,226
Change in unrealized gains on residential loans held for sale		(15,897	)		(2,271	)
Interest income		8,473			9,261
Transfers from residential loans held for investment		43			5,183
Other		(8,610	)		(8,619	)

Balance at end of period	$	1,664,215		$	1,664,215

Residential Loans at Amortized Cost Net [Member]

Summary of Residential Loans, Net

Residential loans at amortized cost, net are comprised of the following types of loans (in thousands):


	June 30,		December 31,
	2013		2012
Forward loans in Residual Trusts	$	1,427,715	$	1,475,782
Unencumbered forward loans		15,992		14,539

Residential loans at amortized cost, net	$	1,443,707	$	1,490,321

Residential loans at amortized cost, net are comprised of the following components (in thousands):


	June 30,			December 31,
	2013			2012
Residential loans, principal balance	$	1,602,614		$	1,662,183
Unamortized premiums (discounts) and other cost basis adjustments, net⁽¹⁾		(140,601	)		(151,427	)
Allowance for loan losses		(18,306	)		(20,435	)

Residential loans at amortized cost, net	$	1,443,707		$	1,490,321

(1)	Included in unamortized premiums (discounts) and other cost basis adjustments, net is $13.5 million in accrued interest receivable at June 30, 2013 and December 31, 2012.

Residential Loans At Fair Value [Member]

Summary of Residential Loans, Net

Residential loans at fair value are comprised of the following types of loans (in thousands):


	June 30, 2013		December 31, 2012
Reverse loans ⁽¹⁾	$	7,906,635	$	6,047,108
Forward loans in Non-Residual Trusts		613,627		646,498
Forward loans held for sale		1,664,215		16,605

Residential loans at fair value	$	10,184,477	$	6,710,211

(1)	Includes $28.5 million in reverse loans held for sale at December 31, 2012. There were no reverse loans held for sale at June 30, 2013.