Variable Interest Entities (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Summary of Carrying Amounts of Assets and Liabilities

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


	June 30, 2014
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing Facilities		Total
Assets
Restricted cash and cash equivalents	$	46,571	$	13,291	$	11,263	$	71,125
Residential loans at amortized cost, net		1,339,634		—		—		1,339,634
Residential loans at fair value		—		557,786		—		557,786
Receivables at fair value		—		36,181		—		36,181
Servicer and protective advances, net		—		—		102,927		102,927
Other assets		44,186		1,081		229		45,496

Total assets	$	1,430,391	$	608,339	$	114,419	$	2,153,149

Liabilities
Payables and accrued liabilities	$	7,866	$	—	$	41	$	7,907
Servicing advance liabilities		—		—		101,323		101,323
Mortgage-backed debt		1,151,686		651,784		—		1,803,470

Total liabilities	$	1,159,552	$	651,784	$	101,364	$	1,912,700


	December 31, 2013
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing Facilities		Total
Assets
Restricted cash and cash equivalents	$	44,995	$	13,086	$	999	$	59,080
Residential loans at amortized cost, net		1,377,711		—		—		1,377,711
Residential loans at fair value		—		587,265		—		587,265
Receivables at fair value		—		43,545		—		43,545
Servicer and protective advances, net		—		—		75,481		75,481
Other assets		54,544		1,302		408		56,254

Total assets	$	1,477,250	$	645,198	$	76,888	$	2,199,336

Liabilities
Payables and accrued liabilities	$	8,391	$	—	$	81	$	8,472
Servicing advance liabilities		—		—		67,905		67,905
Mortgage-backed debt		1,203,084		684,778		—		1,887,862

Total liabilities	$	1,211,475	$	684,778	$	67,986	$	1,964,239

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


	December 31, 2013
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing Facility		Total
Assets
Restricted cash and cash equivalents	$	44,995	$	13,086	$	999	$	59,080
Residential loans at amortized cost, net		1,377,711		—		—		1,377,711
Residential loans at fair value		—		587,265		—		587,265
Receivables at fair value		—		43,545		—		43,545
Servicer and protective advances, net		—		—		75,481		75,481
Other assets		54,544		1,302		408		56,254

Total assets	$	1,477,250	$	645,198	$	76,888	$	2,199,336

Liabilities
Payables and accrued liabilities	$	8,391	$	—	$	81	$	8,472
Servicing advance liabilities		—		—		67,905		67,905
Mortgage-backed debt		1,203,084		684,778		—		1,887,862

Total liabilities	$	1,211,475	$	684,778	$	67,986	$	1,964,239


	December 31, 2012
	Residual Trusts		Non-Residual Trusts		Servicer and Protective Advance Financing Facility		Total
Assets
Restricted cash and cash equivalents	$	43,856	$	14,397	$	980	$	59,233
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		—		—		68,550		68,550
Other assets		60,669		2,014		657		63,340

Total assets	$	1,580,307	$	716,884	$	70,187	$	2,367,378

Liabilities
Payables and accrued liabilities	$	9,007	$	—	$	93	$	9,100
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	$	64,645	$	2,146,380

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 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		Receivables, Net		Total		Maximum Exposure to Loss⁽¹⁾
Servicing arrangements with letter of credit reimbursement obligation
December 31, 2013	$	1,845	$	2,500	$	160	$	4,505	$	169,505	$	197,338
December 31, 2012		2,319		2,691		180		5,190		170,190		223,251
Other servicing arrangements
December 31, 2013		—		—		181		181		181		430,013

⁽¹⁾

The Company’s maximum exposure to loss related to these unconsolidated VIEs equals the carrying value of assets recognized on the consolidated balance sheets plus the obligation to reimburse a third party for the final $165.0 million drawn on LOCs discussed above, in the case of servicing arrangements with letter of credit reimbursement obligation.

- 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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