Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2013

The following tables set forth the changes in the balances of residential and securitized MSRs for the periods indicated below:


	For the Three Months Ended
	September 30, 2013				September 30, 2012
(in thousands)	Residential		Securitized		Residential		Securitized
Carrying value, beginning of year		$214,959		$ 97		$136,176		$386
Additions		18,725		--		28,178		--
Increase (decrease) in fair value:
Due to changes in valuation assumptions		6,589		--		(23,720)		--
Due to other changes⁽¹⁾		(12,168)		--		(18,394)		--
Amortization		--		(97)		--		(96)

Carrying value, end of period		$228,105		$ --		$122,240		$290

(1)	Includes net servicing cash flows, including loan payoffs, and the passage of time.


	For the Nine Months Ended
	September 30, 2013					September 30, 2012
(in thousands)	Residential			Securitized		Residential		Securitized
Carrying value, beginning of year		$144,520			$193		$116,416		$596
Additions		73,398			--		85,977		--
Increase (decrease) in fair value:
Due to changes in valuation assumptions		54,437			--		(31,255)		--
Due to other changes⁽¹⁾		(44,250	)		--		(48,898)		--
Amortization		--			(193)		--		(306)

Carrying value, end of period		$228,105			$ --		$122,240		$290

(1)	Includes net servicing cash flows, including loan payoffs, and the passage of time.

The following table presents the key assumptions used in calculating the fair value of the Company’s residential MSRs at the dates indicated:


	September 30, 2013			December 31, 2012
Expected Weighted Average Life		90 months			64 months
Constant Prepayment Speed		9.1	%		15.4	%
Discount Rate		10.5			10.5
Primary Mortgage Rate to Refinance		4.3			3.6
Cost to Service (per loan per year):
Current		$ 53			$ 53
30-59 days or less delinquent		103			103
60-89 days delinquent		203			203
90-119 days delinquent		303			303
120 days or more delinquent		553			553