DISCONTINUED OPERATIONS (Tables)

6 Months Ended

Jun. 30, 2012

DISCONTINUED OPERATIONS

Schedule of loans held for sale by type of loan

 The following table represents the loans held for sale by type of loan as of June 30, 2012 and December 31, 2011 ($ amounts in thousands):

	June 30, 2012					December 31, 2011
	Amount		%			Amount		%
Conforming	$	917		87	%	$	171,375		79	%
FHA		137		13	%		40,433		18	%
Jumbo		—		—	%		5,659		3	%
Total	$	1,054		100	%	$	217,467		100	%

Schedule of difference between the aggregate principal balance of loans on nonaccrual status for which the fair value option has been elected and for loans measured at lower of cost or market valuation

The following presents the difference between the aggregate principal balance of loans on nonaccrual status for which the fair value option has been elected and for loans measured at lower of cost or market valuation as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012
	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	211		$	—	$	211
Difference between fair value and aggregate unpaid principal balance		(44	)		—		(44	)
Loans on nonaccrual	$	167		$	—	$	167

	As of December 31, 2011
	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	539		$	—	$	539
Difference between fair value and aggregate unpaid principal balance		(244	)		—		(244	)
Loans on nonaccrual	$	295		$	—	$	295

Schedule of assets and liabilities that are measured at fair value on a recurring basis

 The following presents our assets and liabilities that are measured at fair value on a recurring basis at June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012
	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	887		$	167	$	1,054
Forward delivery contracts		—		(2,192	)		—		(2,192	)
Total	$	—	$	(1,305	)	$	167	$	(1,138	)

	As of December 31, 2011
	Recurring Fair Value Measurements Using
	Quoted Market Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Total Fair Value Measurements
Loans held for sale	$	—	$	217,172		$	295	$	217,467
Interest rate lock commitments ("IRLCs")		—		—			9,122		9,122
Forward delivery contracts		—		(4,107	)		19		(4,088	)
Total	$	—	$	213,065		$	9,436	$	222,501

Schedule of changes in assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

 The following presents the changes in our assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2012 and 2011 (in thousands):

	Three Months Ended June 30, 2012
	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at April 1, 2012	$	9,849		$	132		$	412
Transfers into Level 3		—			—			211
Transfers out of Level 3		—			(329	)		—
Total net gains (losses) included in earnings (realized and unrealized)		30,991			218			215
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(766	)		—			(90	)
Transfers of IRLCs to closed loans		(34,434	)		—			—
Balance at June 30, 2012	$	—		$	—		$	167

	Six Months Ended June 30, 2012
	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2012	$	9,122		$	19		$	295
Transfers into Level 3		—			—			440
Transfers out of Level 3		—			(845	)		—
Total net gains (losses) included in earnings (realized and unrealized)		73,378			847			233
Purchases, sales, and settlements
Purchases		—			—			—
Sales		(5,640	)		(21	)		(581	)
Settlements		(3,401	)		—			(220	)
Transfers of IRLCs to closed loans		(73,459	)		—			—
Balance at June 30, 2012	$	—		$	—		$	167

	Three Months Ended June 30, 2011
	Interest Rate Lock Commitments			Forward Delivery Contracts		Loans Held for Sale
Balance at April 1, 2011	$	5,628		$	112	$	962
Transfers into Level 3		—			—		325
Transfers out of Level 3		—			70		—
Total net gains (losses) included in earnings (realized and unrealized)		25,226			38		29
Purchases, sales, and settlements
Purchases		—			—		—
Sales		—			—		(283	)
Settlements		(2,555	)		—		(172	)
Transfers of IRLCs to closed loans		(22,021	)		—		—
Balance at June 30, 2011	$	6,278		$	220	$	861

	Six Months Ended June 30, 2011
	Interest Rate Lock Commitments			Forward Delivery Contracts			Loans Held for Sale
Balance at January 1, 2011	$	5,986		$	3		$	884
Transfers into Level 3		—			—			660
Transfers out of Level 3		—			42			—
Total net gains (losses) included in earnings (realized and unrealized)		41,167			233			(3	)
Purchases, sales, and settlements
Purchases(a)		970			(58	)		—
Sales		—			—			(503	)
Settlements		(5,997	)		—			(177	)
Transfers of IRLCs to closed loans		(35,848	)		—			—
Balance at June 30, 2011	$	6,278		$	220		$	861

(a)

Purchased in conjunction with the acquisition of certain assets of SurePoint.

Schedule of gains (losses) included in earnings relating to assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

 The following presents the gains (losses) included in earnings for the three and six months ended June 30, 2012 and 2011 relating to our assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Three Months Ended June 30, 2012							Six Months Ended June 30, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains included in earnings, which are included in discontinued operations	$	30,991	$	218	$	215		$	73,378	$	847	$	233
Change in unrealized losses relating to assets and liabilities still held at June 30, 2012, which are included in discontinued operations	$	—	$	—	$	(44	)	$	—	$	—	$	(44	)

	Three Months Ended June 30, 2011							Six Months Ended June 30, 2011
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale			Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains (losses) included in earnings, which are included in discontinued operations	$	25,226	$	38	$	29		$	41,167	$	233	$	(3	)
Change in unrealized gains (losses) relating to assets and liabilities still held at June 30, 2011, which are included in discontinued operations	$	6,278	$	220	$	(96	)	$	6,278	$	220	$	(95	)

Summary of derivative instruments not designated as hedging instruments

The following table summarizes our derivative instruments not designated as hedging instruments as of June 30, 2012 and December 31, 2011 (in thousands):

	June 30, 2012				December 31, 2011
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Interest Rate Lock Commitments	Current assets of discontinued operations	$	—		Current assets of discontinued operations	$	9,282
Forward Delivery Contracts	Current assets of discontinued operations		1,470		Current assets of discontinued operations		480
Interest Rate Lock Commitments	Current liabilities of discontinued operations		—		Current liabilities of discontinued operations		(160	)
Forward Delivery Contracts	Current liabilities of discontinued operations		(3,662	)	Current liabilities of discontinued operations		(4,568	)
Total Derivatives		$	(2,192	)		$	5,034

Schedule of gain/(loss) recognized in the consolidated statements of operations for derivatives

The gain (loss) recognized in the consolidated statements of operations for derivatives for the three and six months ended June 30, 2012 and 2011 was as follows (in thousands):

		Three Months Ended					Six Months Ended
	Location of Gain/(Loss) Recognized in Income on Derivative	June 30, 2012			June 30, 2011		June 30, 2012		June 30, 2011
Interest Rate Lock Commitments	Discontinued operations	$	30,991		$	25,226	$	73,378	$	41,166
Forward Delivery Contracts	Discontinued operations		(2,510	)		348		2,051		(556	)
Total		$	28,481		$	25,574	$	75,429	$	40,610

Schedule of difference between the aggregate principal balance of loans held for sale for which the fair value option has been elected and for loans measured at LOCOM

  The following presents the difference between the aggregate principal balance of loans held for sale for which the fair value option has been elected and for loans measured at LOCOM as of June 30, 2012 and December 31, 2011 (in thousands):

	As of June 30, 2012
	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	1,038	$	—	$	1,038
Difference between fair value and aggregate unpaid principal balance		16		—		16
Loans held for sale	$	1,054	$	—	$	1,054

	As of December 31, 2011
	Loans Held for Sale— Measured at Fair Value		Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	208,918	$	—	$	208,918
Difference between fair value and aggregate unpaid principal balance		8,549		—		8,549
Loans held for sale	$	217,467	$	—	$	217,467

Schedule of quantitative information about significant unobservable inputs for assets and liabilities measured at fair value on a recurring and non-recurring basis

 The table below presents quantitative information about the significant unobservable inputs for assets and liabilities measured at fair value on a recurring and non-recurring basis as of June 30, 2012 (dollars in thousands):

	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value as of June 30, 2012		Valuation Technique	Significant Unobservable Input	Range (Weighted Average)
Impaired loans—fair value option elected	$	167	Estimated Investor Bid	NA	NA

Schedule of loans sold for the period and the aggregate loan losses

 The following table represents the loans sold for the period shown and the aggregate loan losses through June 30, 2012:

	As of June 30, 2012
Period of Loan Sales	Number of loans sold		Original principal balance		Number of loans with losses		Original principal balance of loans with losses		Amount of aggregate losses
			(in billions)				(in millions)		(in millions)
Six months ended June 30, 2012		9,200	$	1.9		—	$	—	$	—
2011		12,500		2.7		1		0.3		0.1
2010		12,400		2.8		4		1.1		0.1
2009		12,800		2.8		4		0.9		0.1
2008		11,000		2.2		33		6.9		2.2
2007		36,300		6.1		160		22.1		8.2
2006		55,000		7.9		207		24.5		13.4
2005 and prior years		86,700		13.0		89		12.3		5.0
Total		235,900	$	39.4		498	$	68.1	$	29.1

Schedule of activity related to loss reserves on previously sold loans

 The activity related to loss reserves on previously sold loans for the three and six months ended June 30, 2012 and 2011, is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Balance, beginning of period	$	33,503		$	20,038		$	31,512		$	16,984
Provisions		3,918			4,312			6,384			7,562
Charge offs to reserves		(4,325	)		(33	)		(4,800	)		(229	)
Balance, end of period	$	33,096		$	24,317		$	33,096		$	24,317

RealEstate.com

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

The revenue and net loss for the Real Estate businesses that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,
	2012			2011
Revenue	$	34		$	1,121
Loss before income taxes	$	(86	)	$	(192	)
Income tax provision		—			—
Net loss	$	(86	)	$	(192	)

	Six Months Ended June 30,
	2012			2011
Revenue	$	75		$	3,118
Loss before income taxes	$	(160	)	$	(16,298	)
Income tax provision		—			—
Net loss	$	(160	)	$	(16,298	)

Schedule of assets and liabilities of the discontinued operations

 The assets and liabilities of Real Estate that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011
Current assets	$	18		$	33
Current liabilities		301			702
Non-current liabilities		—			54
Net liabilities	$	(283	)	$	(723	)

LendingTree Loans

DISCONTINUED OPERATIONS

Schedule of revenue and net income (loss) of the discontinued operations

 The revenue and net income (loss) for LendingTree Loans that are reported as discontinued operations for the applicable periods were as follows (in thousands):

	Three Months Ended June 30,
	2012			2011
Revenue	$	30,529		$	25,382
Income (loss) before income taxes	$	3,467		$	(9,197	)
Income tax provision		(166	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—
Net income (loss)	$	27,614		$	(9,197	)

	Six Months Ended June 30,
	2012			2011
Revenue	$	81,395		$	44,632
Income (loss) before income taxes	$	23,189		$	(16,499	)
Income tax provision		(2,396	)		—
Gain from sale of discontinued operations, net of tax of $1,267 and $-0-		24,313			—
Net income (loss)	$	45,106		$	(16,499	)

Schedule of assets and liabilities of the discontinued operations

 The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of June 30, 2012 and December 31, 2011 were as follows (in thousands):

	June 30, 2012			December 31, 2011
Loans held for sale	$	1,054		$	217,467
Other current assets		4,381			14,925
Current assets		5,435			232,392
Property and equipment		—			4,181
Goodwill		—			5,579
Other non-current assets		236			1,187
Non-current assets		236			10,947
Warehouse lines of credit		347			197,659
Other current liabilities		42,405			51,669
Current liabilities		42,752			249,328
Non-current liabilities		452			978
Net liabilities	$	(37,533	)	$	(6,967	)