2.4.0.8019 - Disclosure - NOTE 9 MORTGAGE SERVICINGtruefalsefalse1false
falsefalseContext_6ME__30-Jun-2013http://www.sec.gov/CIK0000873860duration2013-01-01T00:00:002013-06-30T00:00:001true
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2ocn_MortgageServicingTextBlockocn_falsenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel| 1falsefalsefalse00<table style="font: bold 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 0pt; margin-bottom: 0px; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 156px; text-align: left;"><font style="text-transform: uppercase; font-size: 10pt;">NOTE 9</font></td>
<td style="text-align: justify;"><font style="text-transform: uppercase; font-size: 10pt;">MORTGAGE SERVICING</font></td>
</tr>
</table>
<p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Mortgage Servicing Rights – Amortization Method</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The following table summarizes our activity related to MSRs for the six months ended June 30:</font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-bottom: 1pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2013</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2012</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="width: 1179.46px; text-indent: -8.65pt; padding-left: 8.65pt;">Balance at December 31</td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">678,937</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 31px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">293,152</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 17.3pt;">Additions recognized in connection with business and asset acquisitions (1) (2)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,078,819</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">175,852</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 17.3pt;">Additions recognized on the sale of residential mortgage loans</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">46,892</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 17.3pt;">Servicing transfers, adjustments and other</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,970</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">(88</td>
<td style="text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-left: 17.3pt;">Amortization (3)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(118,580</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(34,348</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;">Balance at June 30</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">1,688,038</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">434,568</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-indent: -8.65pt; padding-left: 8.65pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;">Estimated fair value at June 30</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">2,269,985</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">470,974</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<table style="font: 10pt/normal 'times new roman', times, serif; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 10pt; margin-bottom: 0px; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in; text-align: left;"><font style="font-size: 10pt;">(1)</font></td>
<td style="text-align: left;"><font style="font-size: 10pt;">MSRs purchased during 2013 include $393.9 million acquired in the ResCap Acquisition. See Note 4</font> <font style="font-size: 10pt;">– Business Acquisitions for additional information.</font></td>
</tr>
</table>
<table style="font: 10pt/normal 'times new roman', times, serif; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 10pt; margin-bottom: 0px; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in; text-align: left;"><font style="font-size: 10pt;">(2)</font></td>
<td style="text-align: left;"><font style="font-size: 10pt;">MSRs purchased during 2013 also include $680.0 million of MSRs acquired in the Ally MSR Transaction. The acquired MSRs relate to mortgage loans with a UPB of approximately $87.0 billion owned by Freddie Mac and Fannie Mae. We also acquired servicing advance receivables of $73.5 million. We assumed the origination representation and warranty obligations of approximately $136.4 million in connection with a majority of the acquired MSRs. We had been subservicing these MSRs on behalf of Ally under a subservicing contract assumed by us in connection with the ResCap Acquisition.</font></td>
</tr>
</table>
<table style="font: 10pt/normal 'times new roman', times, serif; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 10pt; margin-bottom: 0px; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="text-align: justify; vertical-align: top;">
<td style="width: 0px;"></td>
<td style="width: 0.25in; text-align: left;"><font style="font-size: 10pt;">(3)</font></td>
<td style="text-align: left;"><font style="font-size: 10pt;">Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations.</font></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">As disclosed in Note 3 – Transfers of Financial Assets, we sold certain Rights to MSRs during 2012 and 2013 as part of the HLSS Transactions. The carrying value of the related MSRs which have not been derecognized at June 30, 2013 was $360.6 million.</font></p>
<p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Mortgage Servicing Rights—Fair Value Measurement Method</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">This portfolio comprises servicing rights for which we elected the fair value option and includes prime forward mortgage loans for which we hedged the related market risks. The following table summarizes the activity related to our fair value MSRs for the six months ended June 30, 2013:</font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="width: 1367.46px; text-indent: -8.65pt; padding-left: 8.65pt;">Balance at December 31, 2012</td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">85,213</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 17.3pt;">Changes in fair value:</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 25.95pt;">Due to changes in market valuation assumptions</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">20,680</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 25.95pt;">Realization of cash flows and other changes</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">(8,730</td>
<td style="text-align: left; padding-bottom: 1pt;">)</td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;">Balance at June 30, 2013</td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">97,163</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px; text-align: left; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). The following table summarizes the estimated change in the value of the MSRs that we carry at fair value as of June 30, 2013 given hypothetical instantaneous parallel shifts in the yield curve:</font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-left: 8.65pt;" nowrap="nowrap"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6" nowrap="nowrap">Adverse change in fair value</td>
<td style="padding-bottom: 1pt; font-weight: bold;" nowrap="nowrap"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">10%</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: center; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">20%</td>
<td style="padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="width: 1179.46px; text-align: justify; text-indent: -8.65pt; padding-left: 8.65pt;">Weighted average prepayment speeds</td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">(3,850</td>
<td style="width: 16px; text-align: left;">)</td>
<td style="width: 31px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">(7,459</td>
<td style="width: 15px; text-align: left;">)</td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: justify; text-indent: -8.65pt; padding-left: 8.65pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: justify; text-indent: -8.65pt; padding-left: 8.65pt;">Discount rate (Option-adjusted spread)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(4,143</td>
<td style="text-align: left;">)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">(7,962</td>
<td style="text-align: left;">)</td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The sensitivity analysis measures the potential impact on fair values based on hypothetical changes (increases and decreases) in interest rates.</font></p>
<p style="font: bold 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px 0.5in; color: #000000; text-transform: none; text-indent: -0.5in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Servicing Revenue</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The following table presents the components of servicing and subservicing fees for the periods ended June 30:</font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-bottom: 1pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Three Months</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="6">Six Months</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-bottom: 1pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2013</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2012</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2013</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">2012</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="width: 803.46px; text-align: left; text-indent: -8.65pt; padding-left: 8.65pt;">Loan servicing and subservicing fees</td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">363,739</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">149,384</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 31px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">631,767</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 31px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">261,973</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt;">Home Affordable Modification Program (HAMP) fees</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">46,792</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">21,390</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">86,939</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">34,074</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt;">Late charges</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">29,589</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">17,676</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">55,485</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">36,521</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt;">Loan collection fees</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,755</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,830</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">14,137</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">7,169</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-align: left; text-indent: -8.65pt; padding-left: 8.65pt;">Custodial accounts (float earnings)</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">2,110</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">663</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">3,790</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;">1,450</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -8.65pt; padding-left: 8.65pt;">Other</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">32,647</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">7,392</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">58,007</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">14,237</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">482,632</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">200,335</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">850,125</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">355,424</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px; color: #000000; text-transform: none; text-indent: 0in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;"><b>Portfolio of Assets Serviced</b></font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">The following table presents the composition of our servicing and subservicing portfolios by type of asset serviced as measured by UPB. The servicing portfolio represents loans for which we own the MSRs while subservicing represents all other loans.</font></p>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; border-collapse: collapse; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="vertical-align: bottom;">
<td style="text-align: center; text-indent: -8.65pt; padding-bottom: 1pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Residential</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Commercial</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
<td style="text-align: center; font-weight: bold; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;" colspan="2">Total</td>
<td style="padding-bottom: 1pt; font-weight: bold;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-left: 8.65pt;">UPB at June 30, 2013</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="width: 979.93px; text-indent: -8.65pt; padding-left: 17.3pt;">Servicing (1) </td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 126px; text-align: right;">344,173,439</td>
<td style="width: 16px; text-align: left;"> </td>
<td style="width: 32px;"> </td>
<td style="width: 16px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">—</td>
<td style="width: 15px; text-align: left;"> </td>
<td style="width: 31px;"> </td>
<td style="width: 15px; text-align: left;">$</td>
<td style="width: 125px; text-align: right;">344,173,439</td>
<td style="width: 15px; text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-left: 17.3pt;">Subservicing</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">92,081,944</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">452,042</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">92,533,986</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">436,255,383</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">452,042</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">436,707,425</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
<tr style="vertical-align: bottom;">
<td style="text-indent: -8.65pt; padding-left: 8.65pt;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-left: 8.65pt;">UPB at December 31, 2012</td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;"> </td>
<td style="text-align: right;"> </td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -8.65pt; padding-left: 17.3pt;">Servicing (1)</td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">175,762,161</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">—</td>
<td style="text-align: left;"> </td>
<td> </td>
<td style="text-align: left;">$</td>
<td style="text-align: right;">175,762,161</td>
<td style="text-align: left;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: #cceecc;">
<td style="text-indent: -8.65pt; padding-left: 17.3pt;">Subservicing</td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">27,903,555</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">401,031</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
<td style="padding-bottom: 1pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;"> </td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 1pt; border-bottom-style: solid;">28,304,586</td>
<td style="text-align: left; padding-bottom: 1pt;"> </td>
</tr>
<tr style="vertical-align: bottom; background-color: white;">
<td style="text-indent: -8.65pt; padding-bottom: 2.5pt; padding-left: 8.65pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">203,665,716</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">401,031</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
<td style="padding-bottom: 2.5pt;"> </td>
<td style="text-align: left; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">$</td>
<td style="text-align: right; border-bottom-color: black; border-bottom-width: 2.5pt; border-bottom-style: double;">204,066,747</td>
<td style="text-align: left; padding-bottom: 2.5pt;"> </td>
</tr>
</table>
<table style="font: 10pt/normal 'times new roman', times, serif; width: 100%; text-transform: none; text-indent: 0px; letter-spacing: normal; margin-top: 10pt; margin-bottom: 0px; word-spacing: 0px; font-size-adjust: none; font-stretch: normal; -webkit-text-stroke-width: 0px;" cellspacing="0" cellpadding="0">
<tr style="font: 10pt/normal 'times new roman', times, serif; vertical-align: top;">
<td style="font: 10pt/normal 'times new roman', times, serif; width: 0px;"></td>
<td style="font: 10pt/normal 'times new roman', times, serif; width: 0.25in;"><font style="font-size: 10pt;">(1)</font></td>
<td style="font: 10pt/normal 'times new roman', times, serif;"><font style="font-size: 10pt;">Includes UPB of $99.8 billion and $79.4 billion at June 30, 2013 and December 31, 2012, respectively, for which the Rights to MSRs have been sold to HLSS.</font></td>
</tr>
</table>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Residential assets serviced consist principally of residential mortgage loans, but also include foreclosed real estate. Residential assets serviced also include small-balance commercial assets with a UPB of $1.9 billion and $2.1 billion at June 30, 2013 and December 31, 2012, respectively, that are managed using the REALServicing™ application. Commercial assets consist of large-balance foreclosed real estate. The UPB of assets serviced for others are not included on our unaudited Consolidated Balance Sheets.</font></p>
<p style="font: 10pt/normal 'times new roman', times, serif; margin: 10pt 0px 0px; color: #000000; text-transform: none; text-indent: 0.25in; letter-spacing: normal; word-spacing: 0px; white-space: normal; -webkit-text-stroke-width: 0px;"><font style="font-size: 10pt;">Custodial accounts, which hold funds representing collections of principal and interest that we receive from borrowers, are held in escrow by an unaffiliated bank and are excluded from our unaudited Consolidated Balance Sheets. Custodial accounts amounted to $7.6 billion and $1.3 billion at June 30, 2013 and December 31, 2012, respectively.</font></p>falsefalsefalse | nonnum:textBlockItemTypenaThe entire disclosure for mortgage servicing rights acquired in business or assets acquisitions, including assets that are retained through a securitization or asset-backed financing arrangement.No definition available.false0
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