XML 75 R26.htm IDEA: XBRL DOCUMENT v2.4.0.8
Mortgage Banking Activities (Tables)
 3 Months Ended
Mar. 31, 2014
Mortgage Banking [Abstract]  
Components of Residential Mortgage Loans Held For Sale [Table Text Block]
 
 
March 31, 2014
 
December 31, 2013
 
March 31, 2013
 
 
Unpaid Principal Balance/
Notional
 
Fair Value
 
Unpaid Principal Balance/
Notional
 
Fair Value
 
Unpaid
Principal
 Balance/
Notional
 
Fair Value
Residential mortgage loans held for sale
 
$
215,959

 
$
220,074

 
$
192,266

 
$
193,584

 
$
264,608

 
$
274,710

Residential mortgage loan commitments
 
387,755

 
6,035

 
258,873

 
2,656

 
466,571

 
13,343

Forward sales contracts
 
571,458

 
403

 
435,867

 
4,306

 
712,144

 
(1,842
)
 
 
 

 
$
226,512

 
 

 
$
200,546

 
 

 
$
286,211
Mortgage Banking Revenue [Table Text Block]
Mortgage banking revenue was as follows (in thousands):
 
 
Three Months Ended
 
 
 
March 31,
2014
 
March 31,
2013
 
Production revenue:
 
 
 
 
 
Residential mortgages loan held for sale
 
$
11,968

 
$
30,235

 
Residential mortgage loan commitments
 
3,387

 
610

 
Forward sales contracts
 
(3,903
)
 
(935
)
 
Total production revenue
 
11,452

 
29,910

 
Servicing revenue
 
11,392

 
10,066

 
Total mortgage banking revenue
 
$
22,844

 
$
39,976

 
Summary of Mortgage Servicing Rights [Table Text Block]
The following represents a summary of mortgage servicing rights (Dollars in thousands):
 
 
March 31,
2014
 
December 31,
2013
 
March 31,
2013
Number of residential mortgage loans serviced for others
 
107,660

 
106,137

 
99,438

Outstanding principal balance of residential mortgage loans serviced for others
 
$
14,045,642

 
$
13,718,942

 
$
12,272,691

Weighted average interest rate
 
4.38
%
 
4.40
%
 
4.59
%
Remaining term (in months)
 
292

 
292

 
290
Activity in Capitalized Mortgage Servicing Rights [Table Text Block]
Activity in capitalized mortgage servicing rights during the three months ended March 31, 2014 was as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance, December 31, 2013
 
$
15,935

 
$
137,398

 
$
153,333

Additions, net
 
—

 
8,644

 
8,644

Change in fair value due to loan runoff
 
(515
)
 
(3,227
)
 
(3,742
)
Change in fair value due to market changes
 
(630
)
 
(3,831
)
 
(4,461
)
Balance, March 31, 2014
 
$
14,790

 
$
138,984

 
$
153,774


Activity in capitalized mortgage servicing rights during the three months ended March 31, 2013 was as follows (in thousands):
 
 
Purchased
 
Originated
 
Total
Balance, December 31, 2012
 
$
12,976

 
$
87,836

 
$
100,812

Additions, net
 
—

 
11,433

 
11,433

Change in fair value due to loan runoff
 
(871
)
 
(4,192
)
 
(5,063
)
Change in fair value due to market changes
 
1,098

 
1,560

 
2,658

Balance, March 31, 2013
 
$
13,203

 
$
96,637

 
$
109,840
Assumptions to Value Mortgage Servicing Rights [Table Text Block]

There is no active market for trading in mortgage servicing rights after origination. Fair value is determined by discounting the projected net cash flows. Significant assumptions used to determine fair value based on significant unobservable inputs were as follows:

 
 
March 31,
2014
 
December 31,
2013
 
March 31,
2013
Discount rate – risk-free rate plus a market premium
 
10.21%
 
10.21%
 
10.27%
Loan servicing costs – annually per loan based upon loan type:
 
 
 
 
 
 
    Performing loans
 
$60 - $105
 
$60 - $105
 
$55 - $105
    Delinquent loans
 
$150 - $500
 
$150 - $500
 
$135 - $500
    Loans in foreclosure
 
$1,000 - $4,250
 
$1,000 - $4,250
 
$875 - $4,250
Escrow earnings rate – indexed to rates paid on deposit accounts with comparable average life
 
1.81%
 
1.80%
 
0.97%
Stratification of Loan Servicing Portfolio [Table Text Block]
Stratification of the residential mortgage loan servicing portfolio and outstanding principal of loans serviced for others by interest rate at March 31, 2014 follows (in thousands):
 
 
< 4.00%
 
4.00% - 4.99%

 
5.00% - 5.99%

 
> 5.99%
 
Total
Fair value
 
$
62,501

 
$
59,449

 
$
25,394

 
$
6,430

 
$
153,774

Outstanding principal of loans serviced for others
 
$
5,536,840

 
$
5,101,982

 
$
2,272,475

 
$
1,134,345

 
$
14,045,642

Weighted average prepayment rate1
 
6.85
%
 
7.98
%
 
10.55
%
 
26.17
%
 
9.42
%
1 
Annual prepayment estimates based upon loan interest rate, original term and loan type. Weighted average prepayment rate is determined by weighting the prepayment speed for each loan by its unpaid principal balance.
Aging Status of Mortgage Loans Serviced For Others [Table Text Block]
The aging status of our mortgage loans serviced for others by investor at March 31, 2014 follows (in thousands):
 
 
 
 
Past Due
 
 
 
 
Current
 
30 to 59
Days
 
60 to 89
Days
 
90 Days or More
 
Total
FHLMC
 
$
4,572,606

 
$
30,870

 
$
11,860

 
$
31,729

 
$
4,647,065

FNMA
 
4,338,847

 
19,954

 
6,469

 
21,933

 
4,387,203

GNMA
 
4,475,395

 
99,668

 
26,366

 
12,616

 
4,614,045

Other
 
384,507

 
5,849

 
1,877

 
5,096

 
397,329

Total
 
$
13,771,355

 
$
156,341

 
$
46,572

 
$
71,374

 
$
14,045,642
Activity in Allowance for Losses On Loans Sold With Recourse [Table Text Block]
 
Three Months Ended
 
 
March 31,
 
 
2014
 
2013
 
Beginning balance
$
9,041

 
$
11,359

 
Provision for recourse losses
(14
)
 
(761
)
 
Loans charged off, net
(224
)
 
(523
)
 
Ending balance
$
8,803

 
$
10,075

 
Summary of Unresolved Deficiency Requests and Related Accrual for Credit Losses [Table Text Block]
A summary of unresolved deficiency requests from the agencies follows (in thousands, except for number of unresolved deficiency requests):
 
March 31,
2014
 
March 31,
2013
Number of unresolved deficiency requests
647

 
430

Aggregate outstanding principal balance subject to unresolved deficiency requests
$
81,909

 
$
50,861

Unpaid principal balance subject to indemnification by the Company
1,561

 
1,414



The activity in the accrual for credit losses related to potential loan repurchases and indemnifications under representations and warranties is summarized as follows (in thousands).
 
Three Months Ended
 
March 31,
 
2014
 
2013
Beginning balance
$
8,845

 
$
5,291

Provision for repurchase losses
(842
)
 
976

Losses on repurchases and indemnifications, net
(126
)
 
(390
)
Ending balance
$
7,877

 
$
5,877