XML 56 R38.htm IDEA: XBRL DOCUMENT v3.6.0.2
Mortgage Servicing Rights (Tables)
 12 Months Ended
Dec. 31, 2016
Transfers and Servicing [Abstract]  
Schedule of Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans
The following table presents the fair value of MSRs and the aggregate principal amounts of associated loans as of December 31, 2016 and December 31, 2015.
Table 9.1 – Fair Value of MSRs and Aggregate Principal Amounts of Associated Loans
 
 
December 31, 2016
 
December 31, 2015
(In Thousands)
 
MSR Fair Value
 
Associated Principal
 
MSR Fair Value
 
Associated Principal
Mortgage Servicing Rights
 
 
 
 
 
 
 
 
Conforming Loans
 
$
58,523

 
$
4,989,720

 
$
133,838

 
$
12,560,533

Jumbo Loans
 
60,003

 
5,467,169

 
58,138

 
5,705,939

Total Mortgage Servicing Rights
 
$
118,526

 
$
10,456,889

 
$
191,976

 
$
18,266,472
Activity for Residential First-Lien Mortgage Servicing Rights
The following table presents activity for MSRs for the years ended December 31, 2016, 2015, and 2014.
Table 9.2 – Activity for MSRs
 
 
Years Ended December 31,
(In Thousands)
 
2016
 
2015
 
2014
Balance at beginning of period
 
$
191,976

 
$
139,293

 
$
64,824

Additions
 
25,362

 
95,281

 
95,550

Sales
 
(62,440
)
 
(18,206
)
 
—

Changes in fair value due to:
 
 
 
 
 
 
Changes in assumptions (1)
 
(14,512
)
 
(5,453
)
 
(12,467
)
Other changes (2)
 
(21,860
)
 
(18,939
)
 
(8,614
)
Balance at End of Period
 
$
118,526

 
$
191,976

 
$
139,293


(1)
Primarily reflects changes in prepayment assumptions due to changes in market interest rates.
(2)
Represents changes due to receipt of expected cash flows.
Details of Retention and Purchase of MSRs
The following table details the retention and purchase of MSRs during the years ended December 31, 2016 and 2015.
Table 9.3 – MSR Additions
 
 
Years Ended December 31,
(In Thousands)
 
2016
 
2015
 
 
MSR Fair Value
 
Associated Principal
 
MSR Fair Value
 
Associated Principal
Jumbo MSR additions:
 
 
 
 
 
 
 
 
   From securitization
 
$
6,451

 
$
939,861

 
$
8,202

 
$
882,860

   From loan sales
 
177

 
26,844

 
352

 
33,022

Total jumbo MSR additions
 
6,628

 
966,705

 
8,554

 
915,882

Conforming MSR additions:
 
 
 
 
 
 
 
 
   From loan sales
 
3,380

 
316,290

 
55,954

 
5,251,537

   From purchases
 
15,354

 
1,643,577

 
30,773

 
2,952,345

Total conforming MSR additions
 
18,734

 
1,959,867

 
86,727

 
8,203,882

Total MSR Additions
 
$
25,362

 
$
2,926,572

 
$
95,281

 
$
9,119,764
Income from Mortgage Servicing Rights, Net
The following table presents the components of our MSR income for the ended December 31, 2016, 2015, and 2014.
Table 9.4 – Components of MSR Income (Loss), net
 
 
Years Ended December 31,
(In Thousands)
 
2016
 
2015
 
2014
Servicing income
 
 
 
 
 
 
Income
 
$
41,152

 
$
38,964

 
$
19,362

Cost of sub-servicer
 
(6,281
)
 
(5,079
)
 
(1,834
)
Net servicing income
 
34,871

 
33,885

 
17,528

Market valuation changes of MSRs
 
(36,372
)
 
(24,392
)
 
(21,081
)
Market valuation changes of associated derivatives (1)
 
15,584

 
(12,708
)
 
—

MSR reversal of (provision for) repurchases
 
270

 
(707
)
 
(708
)
MSR Income (Loss), Net
 
$
14,353

 
$
(3,922
)
 
$
(4,261
)
(1)
In the second quarter of 2015, we began to identify specific derivatives used to hedge the exposure of our MSRs to changes in market interest rates. See Note 2 for additional detail.