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Loan Servicing
9 Months Ended
Mar. 31, 2015
Loan Servicing  
Loan Servicing

Note 6.Loan Servicing

 

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets.  The unpaid principal balances of these loans were approximately $87,003,000 and $83,808,000 at March 31, 2015 and June 30, 2014, respectively.

 

During the three months ended March 31, 2015 and 2014, the Company sold approximately $3,205,000 and $2,897,000, respectively, of fixed-rate loans secured by one-to-four family residential real estate, which resulted in a pre-tax gain on the sale of approximately $71,000 and $160,000 for the three months ended March 31, 2015 and 2014, respectively.  During the nine months ended March 31, 2015 and 2014, the Company sold approximately $18,912,000 and $13,047,000, respectively, of fixed-rate loans secured by one-to-four family residential real estate, which resulted in a pre-tax gain on the sale of approximately $488,000 and $387,000 for the nine months ended March 31, 2015 and 2014, respectively.

 

The Company entered into an agreement with the FHLB to originate mortgage loans on behalf of the FHLB and to sell closed loans to the FHLB under the FHLB Mortgage Partnership Finance (“MPF”) program.  Under the terms of the agreement, the Company retains a portion of the credit risk associated with each conventional loan pool under a risk-sharing agreement.  The Company’s credit losses are capped by the credit enhancement amount established for each pool of loans.  Losses beyond that cap are absorbed by the FHLB.   At March 31, 2015 and June 30, 2014, the amount of conventional loans outstanding that were originated and sold to the FHLB in the MPF was $19,237,457 and $19,652,262, respectively, with possible credit enhancement losses capped at $1,135,566 and $1,109,788 at March 31, 2015 and June 30, 2014, respectively.  The Company has no history of losses, however as of March 31, 2015 accrued losses were $17,062.