Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2014

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


	For the Three Months Ended June 30, 2014				For the Three Months Ended June 30, 2013
(in thousands)	Residential		Securitized		Residential		Securitized
Carrying value, beginning of period		$238,004		$ --		$172,849		$129
Additions		7,175		--		23,072		--
Increase (decrease) in fair value:
Due to changes in valuation assumptions		(535)		--		34,754		--
Due to other changes ⁽¹⁾		(15,829)		--		(15,716)		--
Amortization		--		--		--		(33)

Carrying value, end of period		$228,815		$ --		$214,959		$ 96

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


	For the Six Months Ended June 30, 2014				For the Six Months Ended June 30, 2013
(in thousands)	Residential		Securitized		Residential		Securitized
Carrying value, beginning of year		$241,018		$ --		$144,520		$193
Additions		13,983		--		54,673		--
Increase (decrease) in fair value:
Due to changes in valuation assumptions		(492)		--		47,848		--
Due to other changes⁽¹⁾		(25,694)		--		(32,082)		--
Amortization		--		--		--		(97)

Carrying value, end of period		$228,815		$ --		$214,959		$ 96

(1)	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:


	June 30, 2014			December 31, 2013
Expected weighted average life		87 months			93 months
Constant prepayment speed		8.7	%		8.3	%
Discount rate		10.0			10.5
Primary mortgage rate to refinance		4.2			4.5
Cost to service (per loan per year):
Current		$ 63			$ 53
30-59 days or less delinquent		213			103
60-89 days delinquent		313			203
90-119 days delinquent		413			303
120 days or more delinquent		563			553