Acquisitions (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Pro Forma Combined Revenues and Net Income (Loss)

The following table presents the pro forma combined revenues and net income as if the ResCap net assets and the Ally Bank net assets had been acquired on January 1, 2012 and RMS and S1L on January 1, 2011 (in thousands, except per share data):

	For the Years Ended December 31,
	2013		2012
Revenues	$	1,842,699	$	953,624
Net income (loss)		259,281		(49,205	)
Net income (loss) per share — basic		7.01		(1.33	)
Net income (loss) per share — diluted		6.88		(1.33	)

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below presents the purchase price allocation of the estimated acquisition date fair values of the assets acquired and the liabilities assumed (in thousands):

	Amount
Assets
Servicer and protective advances	$	163,160
Servicing rights		58,680
Premises and equipment		1,866
Total assets acquired		223,706
Liabilities
Payables and accrued liabilities		924
Total liabilities assumed		924
Fair value of net assets acquired	$	222,782

ResCap Acquisition [Member]

Estimated Purchase Price Allocation of Assets Acquired and Liabilities Assumed

The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded, and the adjusted preliminary purchase price allocation of assets acquired and liabilities assumed (in thousands):

	Originally Reported		Measurement Period Adjustments			Adjusted
Assets
Servicer and protective advances	$	186,241	$	(11,168	)	$	175,073
Servicing rights(1)		242,604		—			242,604
Goodwill		52,548		(4,900	)		47,648
Intangible assets(1)		8,000		—			8,000
Premises and equipment		18,102		—			18,102
Total assets acquired		507,495		(16,068	)		491,427
Liabilities
Payables and accrued liabilities		20,270		(8,031	)		12,239
Total liabilities assumed		20,270		(8,031	)		12,239
Fair value of net assets acquired	$	487,225	$	(8,037	)	$	479,188

⁽¹⁾  The originally reported amounts for servicing rights and intangible assets were revised during the second quarter of 2013. Refer to the Accounting for Certain Purchased Servicing Rights section of Note 1 for further discussion.

Estimate of Identifiable Intangible Assets Recognized at Acquisition with Corresponding Weighted-Average Amortization Periods

The following table presents the estimate of identifiable intangible assets and capitalized software recognized at acquisition of the ResCap net assets with the corresponding weighted-average amortization periods at the acquisition date (dollars in thousands):

	Estimated Fair Value		Weighted- Average Amortization Period (in years)
Intangible assets — trade name	$	8,000		8.0
Capitalized software(1)		17,100		3.0
Total intangible assets and capitalized software	$	25,100		4.6

⁽¹⁾  Capitalized software is included in premises and equipment, net on the consolidated balance sheets.

Reverse Mortgage Solutions, Inc. [Member]

Estimated Purchase Price Allocation of Assets Acquired and Liabilities Assumed

The table below summarizes the originally reported estimated acquisition date fair values, measurement period adjustments recorded, and the adjusted final purchase price allocation of assets acquired and liabilities assumed (in thousands):

	Originally Reported		Measurement Period Adjustments		Adjusted
Assets
Cash	$	19,683	$	—	$	19,683
Restricted cash		1,401		—		1,401
Residential loans		5,331,989		—		5,331,989
Receivables		11,832		—		11,832
Servicer and protective advances		17,615		—		17,615
Servicing rights		15,916		—		15,916
Goodwill		101,199		28,800		129,999
Intangible assets		20,800		—		20,800
Premises and equipment		15,633		—		15,633
Deferred tax asset, net		19,052		17,159		36,211
Other assets		13,245		—		13,245
Total assets acquired		5,568,365		45,959		5,614,324
Liabilities
Payables and accrued liabilities		29,357		45,959		75,316
Debt		148,431		—		148,431
HMBS related obligations		5,254,231		—		5,254,231
Total liabilities assumed		5,432,019		45,959		5,477,978
Fair value of net assets acquired	$	136,346	$	—	$	136,346

Estimate of Identifiable Intangible Assets Recognized at Acquisition with Corresponding Weighted-Average Amortization Periods

The following table presents the estimate of identifiable intangible assets recognized upon the acquisition of S1L with the corresponding weighted-average amortization periods at the acquisition date (dollars in thousands):

	Estimated Fair Value		Weighted- Average Amortization Period (in years)
Intangible assets:
Licenses	$	5,000		25.0
Institutional relationships		4,700		1.6
Trademarks and trade name		800		4.4
Non-compete agreement		500		1.8
Total intangible assets	$	11,000		12.4

Estimated Fair Value of Consideration Transferred in Connection with Acquisition

The table below details the estimated fair value of the consideration transferred in connection with the acquisition of RMS (in thousands, except shares and per share data):

	Amount
Cash to owners of RMS(1)	$	95,000
Company common stock (891,265 shares at $46.39 per share)(2)		41,346
Total consideration	$	136,346

⁽¹⁾ The cash portion of the acquisition of RMS was funded with proceeds from the issuance of common stock. This amount included $9.0 million in restricted cash that is payable to the sellers of RMS and is recorded in payables and accrued liabilities on the consolidated balance sheet at December 31, 2013.

⁽²⁾ The fair value of the $46.39 per share for the 891,265 common shares issued was based on an average of the high and low prices of the Company’s shares on November 1, 2012.

Security One Lending [Member]

Estimated Purchase Price Allocation of Assets Acquired and Liabilities Assumed

The table below presents the final purchase price allocation of the estimated acquisition date fair values of the assets acquired and the liabilities assumed (in thousands):

	Amount
Assets
Cash and cash equivalents	$	6,725
Restricted cash		822
Residential loans		98,441
Receivables		1,179
Servicing rights		378
Goodwill		8,809
Intangible assets		11,000
Premises and equipment		530
Other assets		500
Total assets acquired		128,384
Liabilities
Payables and accrued liabilities		8,252
Debt		89,434
Deferred tax liability, net		4,598
Total liabilities assumed		102,284
Fair value of net assets acquired	$	26,100

Estimate of Identifiable Intangible Assets Recognized at Acquisition with Corresponding Weighted-Average Amortization Periods

The following table presents the estimate of identifiable intangible assets and capitalized software recognized upon the acquisition of RMS with the corresponding weighted-average amortization periods at the acquisition date (dollars in thousands):

	Estimated Fair Value		Weighted- Average Amortization Period (in years)
Intangible assets:
Institutional relationships	$	11,900		10.0
Customer relationships		6,700		1.8
Trade name		1,200		4.7
Non-compete agreement		1,000		1.5
Total intangible assets		20,800		6.6
Capitalized software(1)		13,100		4.0
Total intangible assets and capitalized software	$	33,900		5.6

⁽¹⁾  Capitalized software is included in premises and equipment, net on the consolidated balance sheet.