DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2013

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 three months ended March 31, 2013 and 2012 were as follows (in thousands):

	Three Months Ended March 31,
	2013		2012
Revenue	$	1	$	41
Income (loss) before income taxes	$	7	$	(74	)
Income tax benefit (expense)	—		—
Net income (loss)	$	7	$	(74	)

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of Real Estate that are reported as discontinued operations as of March 31, 2013 and December 31, 2012 were as follows (in thousands):

	March 31, 2013			December 31, 2012
Current liabilities	(232		)	(206		)
Net liabilities	$	(232	)	$	(206	)

Lending Tree 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 three months ended March 31, 2013 and 2012 were as follows (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenue	$	(1,195	)	$	50,866
Income (loss) before income taxes	$	(2,498	)	$	19,722
Income tax expense	(51		)	(2,230		)
Gain from sale of discontinued operations, net of tax	98			—
Net income (loss)	$	(2,451	)	$	17,492

Schedule of assets and liabilities of the discontinued operations

The assets and liabilities of LendingTree Loans that are reported as discontinued operations as of March 31, 2013 and December 31, 2012 were as follows (in thousands):

	March 31, 2013			December 31, 2012
Current assets	$	433		$	407
Non-current assets	129			129
Current liabilities	(32,693		)	(30,811		)
Non-current liabilities	(236		)	(253		)
Net liabilities	$	(32,367	)	$	(30,528	)

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 March 31, 2013 and December 31, 2012 (in thousands):

	As of March 31, 2013
	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	412		$	—	$	412
Difference between fair value and aggregate unpaid principal balance	(412		)	—		(412		)
Loans on nonaccrual	$	—		$	—	$	—

	As of December 31, 2012
	Loans on Nonaccrual— Measured at Fair Value			Loans on Nonaccrual— Measured at LOCOM		Total Loans on Nonaccrual
Aggregate unpaid principal balance	$	412		$	—	$	412
Difference between fair value and aggregate unpaid principal balance	(412		)	—		(412		)
Loans on nonaccrual	$	—		$	—	$	—

Schedule of changes in assets and liabilities that were 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 were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended March 31, 2012 (in thousands):

	March 31, 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	—			—			229
Transfers out of Level 3	—			(516		)	—
Total net gains (losses) included in earnings (realized and unrealized)	42,387			629			18
Purchases, sales, and settlements
Purchases	—			—			—
Sales	—			—			—
Settlements	(2,634		)	—			(130		)
Transfers of IRLCs to closed loans	(39,026		)	—			—
Balance at March 31, 2012	$	9,849		$	132		$	412

Schedule of gains (losses) included in earnings relating to assets and liabilities that were 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 months ended March 31, 2012 relating to our assets and liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):

	Three Months Ended March 31, 2012
	Interest Rate Lock Commitments		Forward Delivery Contracts		Loans Held for Sale
Total net gains (losses) included in earnings, which are included in discontinued operations	$	42,387	$	629	$	18
Change in unrealized gains (losses) relating to assets and liabilities still held at March 31, 2012, which are included in discontinued operations	$	9,849	$	132	$	(23	)

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 months ended March 31, 2012 was as follows (in thousands):

	Location of Gain (Loss) Recognized in Income on Derivative	Three Months Ended March 31, 2012
Interest Rate Lock Commitments	Discontinued operations	$	42,387
Forward Delivery Contracts	Discontinued operations	4,561
Total		$	46,948

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 March 31, 2013 and December 31, 2012 (in thousands):

	As of March 31, 2013
	Loans Held for Sale— Measured at Fair Value			Loans Held for Sale— Measured at LOCOM		Total Loans Held For Sale
Aggregate unpaid principal balance	$	412		$	—	$	412
Difference between fair value and aggregate unpaid principal balance	(412		)	—		(412		)
Loans held for sale	$	—		$	—	$	—

	As of December 31, 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	$	412		$	—	$	412
Difference between fair value and aggregate unpaid principal balance	(412		)	—		(412		)
Loans held for sale	$	—		$	—	$	—

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

The following table represents the loans sold for the periods shown and the aggregate loan losses through March 31, 2013:

	As of March 31, 2013
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)
2013	—	$	—	—	$	—	$	—
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 months ended March 31, 2013 and 2012, is as follows (in thousands):

	March 31,
	2013		2012
Balance, beginning of period	$	27,182	$	31,512
Provisions	1,197		2,466
Charge-offs to reserves	—		(475		)
Balance, end of period	$	28,379	$	33,503