Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2016

Rollforward of Mortgage Loans Held for Investment

The following table presents the rollforward of mortgage loans held for investment for the periods presented.  

	Three Months Ended March 31
	2016			2015
Fair value, beginning of period	$	116,857		$	31,460
Purchased		40,855			95,769
Repaid		(6,428	)		(4,172	)
Change in fair value		913			244
Fair value, end of period	$	152,197		$	123,301

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 March 31, 2016 and December 31, 2015.

	March 31, 2016				December 31, 2015
		Weighted-				Weighted-
Unobservable Input	Range	Average			Range	Average
Discount rate	2.8% - 3.1%		3.0	%	3.0% - 3.5%		3.3	%
Conditional refinance rate	14.6% - 21.5%		17.4	%	13.6% - 21.7%		16.4	%
Default rate	0% - 1.9%		0.4	%	0% - 2.1%		0.7	%
Loss severity	10.0% - 21.4%		13.3	%	10.5% - 22.2%		14.9	%

Schedule of Mortgage Servicing Income and Mortgage Servicing Expenses

The Company’s mortgage servicing income consisted of the following for the three months ended March 31, 2016:

	Three Months Ended March 31
	2016		2015
Servicing income	$	18,474	$	-
Ancillary income		408		-
Servicing income	$	18,882	$	-

Mortgage Servicing Rights

Rollforward of Mortgage Loans Held for Investment

The following table presents the rollforward of MSR for the three months ended March 31, 2016.

	Three Months Ended March 31
	2016			2015
Fair value, beginning of period	$	269,926		$	-
Purchases		84,361			-
Change in fair value due to:
Changes in valuation inputs or assumptions		(30,999	)		-
Other changes, including realization of cash flows		(7,112	)		-
Fair value, end of period	$	316,176		$	-

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 March 31, 2016 and December 31, 2015.

	March 31, 2016				December 31, 2015
		Weighted-				Weighted-
Unobservable Input	Range	Average			Range	Average
Discount rate	10%-15%		10.4	%	10%-15%		10.4	%
Prepayment rate	4.6%-29.6%		11.9	%	5.6%-30.7%		11.9	%
Delinquency rate	0.3%-13.4%		1.6	%	0%-6.03%		1.4	%
Annual cost to service	$77-$112	$	87		$80-$101	$	88