Residential Loans at Fair Value (Tables)

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

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


	December 31,
	2013		2012
Reverse loans⁽¹⁾	$	8,738,503	$	6,047,108
Forward loans in Non-Residual Trusts		587,265		646,498
Forward loans held for sale		1,015,607		16,605

Residential loans at fair value	$	10,341,375	$	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 December 31, 2013.

Reconciliation of Changes in Residential Loans Held for Sale

A reconciliation of the changes in residential loans held for sale is presented in the following table (in thousands):


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	630,456		$	278,474		$	1,015,607		$	45,065
Purchases and originations of loans held for sale		4,453,761			4,848,332			8,037,309			5,281,349
Proceeds from sales of and payments on loans held for sale⁽¹⁾		(4,045,058	)		(3,522,518	)		(8,104,759	)		(3,749,979	)
Realized gains on sales of loans⁽²⁾		102,517			67,218			189,350			75,526
Change in unrealized gains (losses) on loans held for sale⁽²⁾		23,353			(15,897	)		19,177			(2,271	)
Interest income⁽²⁾		8,721			8,473			17,066			9,261
Transfers from loans held for investment		—			43			—			5,183
Other		(162	)		90			(162	)		81

Balance at end of period	$	1,173,588		$	1,664,215		$	1,173,588		$	1,664,215

⁽¹⁾	Excludes realized gains (losses) on freestanding derivatives.

⁽²⁾	Amount is a component of net gains on sales of loans on the consolidated statements of comprehensive income (loss). Refer to Note 6 for additional information.

A reconciliation of the changes in residential loans held for sale to the amounts presented on the consolidated statements of cash flows is presented in the following table (in thousands). There were no residential loans sold by the Company during the year ended December 31, 2011.


	For the Year Ended December 31,
	2013			2012
Balance at beginning of year	$	45,065		$	—
Purchases and originations of residential loans held for sale		16,141,573			22,259
Proceeds from sales of and payments on residential loans held for sale		(15,452,196	)		(15,985	)
Realized gains on sales of loans		218,504			537
Change in unrealized gains on loans held for sale		24,771			266
Interest income		32,625			16
Acquisition of S1L		—			37,972
Transfers from residential loans held for investment		5,183			—
Other		82			—

Balance at end of year	$	1,015,607		$	45,065

Schedule of Concentrations of Credit Risk

The table below provides the percentage of all residential loans (both those carried at fair value and amortized cost) on the Company’s consolidated balance sheets by the state in which the home securing the loan is located and is based on their unpaid principal balances. Other consists of loans in states in which concentration individually represents less than 5% of total unpaid principal balance.


	December 31,
	2013			2012
California		18	%		15	%
Texas		11	%		14	%
Florida		7	%		8	%
New York		5	%		5	%
Other		59	%		58	%

Total		100	%		100	%