Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2015

Rollforward of Mortgage Loans Held for Investment

The following table presents the rollforward of mortgage loans held for investment for the periods presented.  The Company did not invest in mortgage loans prior to 2014.

	Twelve Months Ended December 31
	2015			2014			2013
Fair value, beginning of period	$	31,460		$	-		$	-
Purchased		357,996			31,463			-
Repaid		(42,286	)		-			-
Sold to securitization trust		(223,278	)		-			-
Change in fair value		(7,035	)		(3	)		-
Fair value, end of period	$	116,857		$	31,460		$	-

Schedule of Unobservable Inputs Used in Level 3 Valuation of Mortgage Loans Held for Investment

The following table provides information about the significant unobservable inputs used in the Level 3 valuation of the Company’s mortgage loans held for investment at December 31, 2015 and 2014.

	December 31, 2015				December 31, 2014
		Weighted-				Weighted-
Unobservable Input	Range	Average			Range	Average
Discount rate	3.0% - 3.5%		3.3	%	3.6% - 3.9%		3.8	%
Conditional refinance rate	13.6% - 21.7%		16.4	%	12.4% - 19.3%		15.3	%
Default rate	0% - 2.1%		0.7	%	0% - 1.5%		0.4	%
Loss severity	10.5% - 22.2%		14.9	%	10.2% - 19.9%		13.8	%

Schedule of Mortgage Servicing Income and Mortgage Servicing Expenses

The Company’s mortgage servicing income consisted of the following for the years ended December 31, 2015:

Servicing income	$	19,897
Ancillary income		214
Servicing income	$	20,111

Mortgage Servicing Rights

Rollforward of Mortgage Loans Held for Investment

The following table presents the rollforward of MSR for the year ended December 31, 2015.

Fair value, beginning of period	$	-
Purchases		259,215
Change in fair value due to:
Changes in valuation inputs or assumptions		13,598
Other changes, including realization of cash flows		(2,887	)
Fair value, end of period	$	269,926

Schedule of Unobservable Inputs Used in Level 3 Valuation of Mortgage Loans Held for Investment

The following table provides information about the significant unobservable inputs used in the Level 3 valuation of the Company’s MSR at December 31, 2015 and December 31, 2014.

	December 31, 2015
		Weighted-
Unobservable Input	Range	Average
Discount rate	10%-15%		10.4	%
Prepayment rate	5.6%-30.7%		11.9	%
Delinquency rate	0%-6.03%		1.4	%
Annual cost to service	$80-$101	$	88