XML 67 R43.htm IDEA: XBRL DOCUMENT v3.10.0.1
Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)
 12 Months Ended
Dec. 31, 2018
Mortgage Servicing Rights and Mortgage Servicing Liabilities  
Schedule of activity in MSRs carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

 

2018

 

2017

 

2016

 

 

 

(in thousands)

 

Balance at beginning of year

    

$

638,010

    

$

515,925

    

$

660,247

 

Reclassification of mortgage servicing rights previously accounted for under the amortization method pursuant to adoption of the fair value method of accounting

 

 

1,482,426

 

 

 —

 

 

 —

 

Balance after reclassification

 

 

2,120,436

 

 

515,925

 

 

660,247

 

Additions:

 

 

 

 

 

 

 

 

 

 

Purchases

 

 

237,803

 

 

183,850

 

 

146

 

Resulting from mortgage loan sales

 

 

591,757

 

 

24,471

 

 

17,319

 

 

 

 

829,560

 

 

208,321

 

 

17,465

 

Change in fair value due to:

 

 

 

 

 

 

 

 

 

 

Changes in inputs used in valuation model (1)

 

 

174,458

 

 

(4,771)

 

 

(80,244)

 

Other changes in fair value (2) 

 

 

(303,842)

 

 

(81,465)

 

 

(81,543)

 

Total change in fair value

 

 

(129,384)

 

 

(86,236)

 

 

(161,787)

 

Balance at end of year

 

$

2,820,612

 

$

638,010

 

$

515,925

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

2018

 

2017

 

 

 

 

 

 

(in thousands)

 

 

 

 

Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable

 

$

2,807,333

 

$

630,711

 

 

 

 

(1)

Principally reflects changes in discount rate and prepayment speed inputs, primarily due to changes in market interest rates, and changes in expected borrower performance and servicer losses given default.

 

(2)

Represents changes due to realization of cash flows.
Schedule of activity in MSRs carried at lower of amortized cost or fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

 

    

2018

    

2017

    

2016

    

 

 

 

  (in thousands)

 

 

Amortized cost:

 

 

                  

 

 

 

 

 

 

 

 

Balance at beginning of year

 

$

1,583,378

 

$

1,206,694

 

$

798,925

 

 

Transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to adoption of the fair value method of accounting

 

 

(1,583,378)

 

 

 —

 

 

 —

 

 

Balance after reclassification

 

 

 —

 

 

1,206,694

 

 

798,925

 

 

Mortgage servicing rights resulting from mortgage loan sales

 

 

 —

 

 

556,630

 

 

560,212

 

 

Amortization

 

 

 —

 

 

(179,946)

 

 

(139,666)

 

 

Application of valuation allowance to recognize other-than-temporary impairment

 

 

 

 

 

 —

 

 

(12,777)

 

 

Balance at end of year

 

 

 —

 

 

1,583,378

 

 

1,206,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of year

 

 

(101,800)

 

 

(94,947)

 

 

(47,237)

 

 

Reduction resulting from transfer of mortgage servicing rights to mortgage servicing rights carried at fair value pursuant to adoption of the fair value method of accounting

 

 

101,800

 

 

 —

 

 

 —

 

 

Balance after reclassification

 

 

 —

 

 

(94,947)

 

 

(47,237)

 

 

Increase in valuation allowance

 

 

 —

 

 

(6,853)

 

 

(60,487)

 

 

Application of valuation allowance to recognize other-than-temporary impairment

 

 

 —

 

 

 —

 

 

12,777

 

 

Balance at end of year

 

 

 —

 

 

(101,800)

 

 

(94,947)

 

 

Mortgage servicing rights, net at end of year

 

$

 —

 

$

1,481,578

 

$

1,111,747

 

 

Fair value of mortgage servicing rights at:

 

 

 

 

 

 

 

 

 

 

 

Beginning of year

 

 

 

 

$

1,112,302

 

$

766,345

 

 

End of year

 

 

 

 

$

1,482,426

 

$

1,112,302

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

Fair value of mortgage servicing rights pledged to secure assets sold under agreements to repurchase and note payable

 

 

 

 

$

1,467,356

 

 

 

 

 

 

Schedule of activity in mortgage servicing liability carried at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31, 

 

 

    

2018

    

2017

    

2016

 

 

 

(in thousands)

 

Balance at beginning of year

 

$

14,120

 

$

15,192

 

$

1,399

 

Mortgage servicing liabilities resulting from mortgage loan sales

 

 

7,601

 

 

17,229

 

 

14,991

 

Mortgage servicing liabilities assumed

 

 

 —

 

 

 —

 

 

10,139

 

Changes in fair value due to:

 

 

 

 

 

 

 

 

 

 

Changes in valuation inputs used in valuation model (1)

 

 

10,787

 

 

6,526

 

 

5,264

 

Other changes in fair value (2) 

 

 

(23,827)

 

 

(24,827)

 

 

(16,601)

 

Total change in fair value

 

 

(13,040)

 

 

(18,301)

 

 

(11,337)

 

Balance at end of year

 

$

8,681

 

$

14,120

 

$

15,192

 

 

 

 

 

 

 

(1)

Principally reflects changes in expected borrower performance and servicer losses given default.

 

(2)

Represents changes due to realization of cash flows.

 

Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income

 

 

 

 

 

 

 

 

 

 

 

 

Year ended December 31,

 

 

2018

    

2017

    

2016

 

 

(in thousands)

Contractual servicing fees

 

$

585,101

 

$

475,848

 

$

385,633

Ancillary and other fees:

 

 

                  

 

 

                  

 

 

                  

Late charges

 

 

27,940

 

 

25,097

 

 

19,341

Other

 

 

6,276

 

 

4,603

 

 

4,706

 

 

$

619,317

 

$

505,548

 

$

409,680