Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 03, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'Walker & Dunlop, Inc. | ' | ' |
Entity Central Index Key | '0001497770 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 35,106,100 | ' |
Entity Public Float | ' | ' | $314.80 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $170,563 | $65,027 |
Restricted cash | 5,427 | 7,130 |
Pledged securities, at fair value | 49,651 | 33,481 |
Loans held for sale, at fair value | 281,477 | 1,101,561 |
Loans held for investment, net | 134,656 | 9,468 |
Servicing fees and other receivables, net | 27,592 | 40,933 |
Derivative assets | 19,563 | 21,258 |
Mortgage servicing rights | 353,024 | 315,524 |
Goodwill and other intangible assets | 61,777 | 64,379 |
Other assets | 25,236 | 29,872 |
Total assets | 1,128,966 | 1,688,633 |
Liabilities | ' | ' |
Accounts payable and other liabilities | 69,206 | 66,763 |
Performance deposits from borrowers | 5,234 | 9,503 |
Derivative liabilities | 222 | 867 |
Guaranty obligation, net of accumulated amortization | 23,489 | 21,155 |
Allowance for risk-sharing obligations | 7,363 | 15,670 |
Deferred tax liabilities, net | 74,246 | 56,035 |
Warehouse notes payable | 373,107 | 1,084,539 |
Notes payable | 173,258 | 80,925 |
Total liabilities | 726,125 | 1,335,457 |
Stockholders' equity: | ' | ' |
Preferred shares, 50,000,000 authorized, none issued. | ' | ' |
Common stock, $0.01 par value. Authorized 200,000,000; issued and outstanding 33,999,551 in 2013 and 33,567,730 in 2012. | 340 | 336 |
Additional paid-in capital | 244,954 | 236,823 |
Retained earnings | 157,547 | 116,017 |
Total stockholders' equity | 402,841 | 353,176 |
Commitments and contingencies (note 10) | ' | ' |
Total liabilities and stockholders' equity | $1,128,966 | $1,688,633 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Preferred shares, authorized | 50,000,000 | 50,000,000 |
Preferred shares, issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, Authorized | 200,000,000 | 200,000,000 |
Common stock, issued | 33,999,551 | 33,567,730 |
Common stock, outstanding | 33,999,551 | 33,567,730 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Gains from mortgage banking activities | $203,671 | $186,543 | $102,712 |
Servicing fees | 90,215 | 52,207 | 33,581 |
Net warehouse interest income | 7,445 | 4,668 | 4,198 |
Escrow earnings and other interest income | 4,008 | 2,965 | 1,474 |
Other | 13,700 | 10,387 | 10,385 |
Total revenues | 319,039 | 256,770 | 152,350 |
Expenses | ' | ' | ' |
Personnel | 133,667 | 109,037 | 51,162 |
Amortization and depreciation | 72,876 | 38,673 | 22,444 |
Amortization of intangible assets | 3,079 | 15,252 | 70 |
Provision for credit losses | 1,322 | 3,140 | 4,724 |
Interest expense on corporate debt | 3,743 | 1,649 | 823 |
Other operating expenses | 37,565 | 33,249 | 16,466 |
Total expenses | 252,252 | 201,000 | 95,689 |
Income from operations before income taxes | 66,787 | 55,770 | 56,661 |
Income tax expense | 25,257 | 21,998 | 21,797 |
Net income | $41,530 | $33,772 | $34,864 |
Basic earnings per share | $1.23 | $1.32 | $1.61 |
Diluted earnings per share | $1.21 | $1.31 | $1.60 |
Basic weighted average shares outstanding | 33,764,233 | 25,545,028 | 21,621,534 |
Diluted weighted average shares outstanding | 34,335,914 | 25,845,015 | 21,747,672 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
In Thousands, except Share data | ||||
Beginning Balances at Dec. 31, 2010 | $124,642 | $214 | $77,047 | $47,381 |
Beginning Balances (in shares) at Dec. 31, 2010 | ' | 21,408,171 | ' | ' |
Net income | 34,864 | ' | ' | 34,864 |
Issuance of common stock | 2,053 | 2 | 2,051 | ' |
Issuance of common stock (in shares) | ' | 221,292 | ' | ' |
Stock-based compensation | 2,422 | ' | 2,422 | ' |
Issuance of common stock in connection with equity compensation plans | 1 | 1 | ' | ' |
Issuance of common stock in connection with equity compensation plans (in shares) | ' | 157,608 | ' | ' |
Repurchase and retirement of common stock | -473 | ' | -473 | ' |
Repurchase and retirement of common stock (in shares) | ' | -38,473 | ' | ' |
Tax benefit from vesting of restricted shares | 143 | ' | 143 | ' |
Ending Balances at Dec. 31, 2011 | 163,652 | 217 | 81,190 | 82,245 |
Ending Balances (in shares) at Dec. 31, 2011 | ' | 21,748,598 | ' | ' |
Net income | 33,772 | ' | ' | 33,772 |
Stock-based compensation | 5,176 | ' | 5,176 | ' |
Issuance of common stock in connection with equity compensation plans | 375 | 2 | 373 | ' |
Issuance of common stock in connection with equity compensation plans (in shares) | ' | 220,236 | ' | ' |
Issuance of common stock in connection with the acquisition of CWCapital LLC | 150,698 | 117 | 150,581 | ' |
Issuance of common stock in connection with the acquisition of CWCapital LLC (in shares) | ' | 11,647,255 | ' | ' |
Repurchase and retirement of common stock | -741 | ' | -741 | ' |
Repurchase and retirement of common stock (in shares) | ' | -48,359 | ' | ' |
Tax benefit from vesting of restricted shares | 244 | ' | 244 | ' |
Ending Balances at Dec. 31, 2012 | 353,176 | 336 | 236,823 | 116,017 |
Ending Balances (in shares) at Dec. 31, 2012 | 33,567,730 | 33,567,730 | ' | ' |
Net income | 41,530 | ' | ' | 41,530 |
Stock-based compensation | 8,764 | ' | 8,764 | ' |
Issuance of common stock in connection with equity compensation plans | 1,139 | 6 | 1,133 | ' |
Issuance of common stock in connection with equity compensation plans (in shares) | ' | 593,115 | ' | ' |
Repurchase and retirement of common stock | -3,025 | -2 | -3,023 | ' |
Repurchase and retirement of common stock (in shares) | ' | -161,294 | ' | ' |
Tax benefit from vesting of restricted shares | 1,257 | ' | 1,257 | ' |
Ending Balances at Dec. 31, 2013 | $402,841 | $340 | $244,954 | $157,547 |
Ending Balances (in shares) at Dec. 31, 2013 | 33,999,551 | 33,999,551 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $41,530 | $33,772 | $34,864 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' | ' |
Gain attributable to fair value of future servicing rights, net of guaranty obligation | -91,972 | -92,594 | -54,301 |
Gain attributable to fair value of premiums and origination fees | 9,457 | -14,062 | -3,231 |
Amortization and depreciation | 75,955 | 53,925 | 22,514 |
Stock compensation | 9,194 | 5,176 | 2,422 |
Provision for credit losses | 1,322 | 3,140 | 4,724 |
Deferred tax expense | 18,211 | 16,286 | 9,523 |
Originations of loans held for sale | -5,818,792 | -5,590,067 | -3,271,731 |
Sales of loans to third parties | 6,616,515 | 4,768,155 | 3,311,383 |
Amortization of deferred loan fees and costs | -200 | -45 | ' |
Origination fees received from loans held for investment | 691 | ' | ' |
Tax benefit from vesting of equity awards | -1,257 | -244 | -143 |
Cash allowance received from landlord | 289 | 1,951 | ' |
Cash paid to settle risk-sharing obligations | -5,290 | -4,633 | -680 |
Cash received from the sale of assets acquired | ' | 6,828 | ' |
Changes in: | ' | ' | ' |
Restricted cash and pledged securities | -14,467 | -4,831 | -7,262 |
Servicing fees and other receivables | 9,457 | -14,550 | -5,179 |
Intangible and other assets | 9,791 | -13,596 | -117 |
Accounts payable and other liabilities | -19,257 | 7,128 | 10,820 |
Performance deposits from borrowers | -4,269 | -922 | 4,455 |
Net cash provided by (used in) operating activities | 836,908 | -839,183 | 58,061 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -4,519 | -4,599 | -3,758 |
Acquisition of CWCapital LLC, net of cash acquired and other assets | ' | -208,109 | ' |
Originations of loans held for investment | -147,820 | -19,400 | ' |
Principal collected on loans held for investment | 21,700 | 9,977 | ' |
Net cash used in investing activities | -130,639 | -222,131 | -3,758 |
Cash flows from financing activities: | ' | ' | ' |
(Repayments) borrowings of short-term warehouse notes payable, net | -797,275 | 858,988 | -29,993 |
Borrowings of interim warehouse notes payable | 102,755 | 12,375 | ' |
Repayments of interim warehouse notes payable | -16,912 | -5,250 | ' |
Borrowings of notes payable | 173,258 | 83,000 | ' |
Repayments of notes payable | -80,925 | -25,944 | -3,752 |
Secured borrowings | 22,050 | ' | ' |
Debt issuance costs | -3,055 | -1,221 | ' |
Distributions to former members | ' | ' | -1,750 |
Proceeds from issuance of common stock | 1,139 | 151,073 | 2,054 |
Repurchase of common stock | -3,025 | -741 | -473 |
Tax benefit from vesting of restricted shares | 1,257 | 244 | 143 |
Net cash (used in) provided by financing activities | -600,733 | 1,072,524 | -33,771 |
Net increase in cash and cash equivalents | 105,536 | 11,210 | 20,532 |
Cash and cash equivalents at beginning of year | 65,027 | 53,817 | 33,285 |
Cash and cash equivalents at end of year | 170,563 | 65,027 | 53,817 |
Supplemental Disclosure of Cash Flow Information: | ' | ' | ' |
Cash paid to third parties for interest | 14,813 | 11,922 | 4,662 |
Cash paid for taxes | $881 | $14,329 | $12,045 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
NOTE 1—ORGANIZATION | |
These financial statements represent the consolidated financial position and results of operations of Walker & Dunlop, Inc. and its subsidiaries. Unless the context otherwise requires, references to “we,” “us,” “our” “Walker & Dunlop” and the “Company” mean the Walker & Dunlop consolidated companies. | |
Walker & Dunlop is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. The Company originates, sells, and services a range of multifamily and other commercial real estate financing products. The Company’s clients are owners and developers of commercial real estate across the country. The Company originates and sells loans pursuant to the programs of the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, the government-sponsored enterprises, or the “GSEs”), the Government National Mortgage Association (“Ginnie Mae”) and the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (together with Ginnie Mae, “HUD”), with which Walker & Dunlop has long-established relationships. The Company retains servicing rights and asset management responsibilities on nearly all loans that it sells to the GSEs and HUD. Walker & Dunlop is approved as a Fannie Mae Delegated Underwriting and Servicing (“DUS”TM) lender nationally, a Freddie Mac Program Plus lender in 22 states and the District of Columbia, a Freddie Mac targeted affordable housing seller/servicer, a HUD Multifamily Accelerated Processing (“MAP”) lender nationally, a HUD Section 232 LEAN lender nationally, and a Ginnie Mae issuer. The Company also originates and services loans for a number of life insurance companies and other institutional investors, in which cases it does not fund the loan but rather acts as a loan broker. | |
The Company offers its borrowers an interim loan program offering floating-rate debt with original principal balances of generally up to $30.0 million, for terms of up to two years, to experienced borrowers seeking to acquire or reposition multifamily properties that do not currently qualify for permanent financing (the “Program”). The Company closed its first loans under the Program in 2012. The Company underwrites all loans originated through the Program using similar underwriting standards used to underwrite loans it originates and sells. During the time they are outstanding, the Company assumes the full risk of loss on the loans. In addition, the Company services and asset-manages loans originated through the Program, with the ultimate goal of providing permanent financing on the properties. These loans are classified as held for investment on the Company’s balance sheet during such time that they are outstanding. $126.1 million unpaid principal balance of the loans outstanding as of December 31, 2013 was originated in 2013, and all of the loans outstanding as of December 31, 2013 were originated within the past two years. As of December 31, 2013, none of the loans under the Program is delinquent. Additionally, the Company has not incurred a loss on any loans originated under the Program. | |
The Company offers a large loan bridge program (the “Bridge Program”). Similar to the Program, the Bridge Program offers floating-rate loans to experienced borrowers seeking to acquire or reposition multifamily properties that do not currently qualify for permanent financing but are good candidates for future permanent financing. The Bridge Program is offered for loans of $30.0 million or more and for terms of up to three years. The first loan under the Bridge Program originated during the fourth quarter of 2013. The Bridge Program was established through a partnership with third-party investors (“Bridge Partnership”). The loans in the Bridge Program are approved for funding by unanimous consent of the limited partners, funded by the Bridge Partnership, and underwritten by the Company pursuant to service agreements. The Company accounts for its five-percent ownership interest as an equity-method investment. The operations of the Bridge Program were immaterial for the year ended December 31, 2013. As of December 31, 2013, the partnership held one loan with an unpaid principal balance of $44.2 million originated under the Bridge Program. | |
On September 4, 2012, the Company closed its acquisition of CWCapital, LLC (“CWCapital”), at which time the total consideration transferred was valued at approximately $231.1 million, consisting of $80.0 million in cash and the Company’s issuance in a private placement to CW Financial Services, LLC (“CW Financial”) approximately 11.6 million shares of common stock valued at approximately $151.1 million (the “Acquisition”). Upon closing of the Acquisition, CWCapital became an indirect wholly owned subsidiary of the Company and was renamed Walker & Dunlop Capital, LLC. By virtue of the Company’s ownership of CWCapital, the Company also acquired a 50% ownership in ARA Finance LLC, a joint venture with ARA Finco LLC, in which ARA Finco LLC owns the remaining 50% of ARA Finance LLC. The Company does not have the ability to direct the activities of ARA Finance LLC; therefore, the Company accounts for its investment in ARA Finance LLC under the equity method of accounting. | |
The results of operations for the year ended December 31, 2013 reflect twelve months’ impact of the Acquisition while the results of operations for the year ended December 31, 2012 reflect only four months’ impact of the Acquisition, which materially affects the comparability of the results of operations from 2012 to 2013. | |
In the third quarter of 2013, the Company transferred a participating interest in a financial asset to a third party. The Company accounted for the transfer as a secured borrowing. The entire financial asset is presented as a component of the Loans held for investment line item within the Consolidated Balance Sheets, and the secured borrowing of $22.1 million is included within the Accounts payable and other liabilities line item in the Consolidated Balance Sheets. | |
During the fourth quarter of 2013, the Company formed a partnership with an affiliate of Fortress Investment Group, LLC, the Company’s largest stockholder, in which the Company owns a 20 percent interest (“CMBS Partnership”). The CMBS Partnership will operate a Commercial Mortgage Backed Securities (“CMBS”) program (“CMBS Program”). The CMBS program will offer financing for all commercial property types throughout the United States. The loans in the CMBS Program will be selected and funded by the CMBS Partnership and underwritten by the Company. The Company will receive a fee for servicing the loans. The CMBS Partnership will assume the full risk of loss on the loans while it holds the loans. The Company accounts for the 20 percent interest using the equity method of accounting. No loans have been originated yet through the CMBS Program, and the activities of the CMBS Program were immaterial during the year ended December 31, 2013. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||
NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||
Principles of Consolidation—The consolidated financial statements include the accounts of the Company as defined in Note 1. All material intercompany transactions have been eliminated. The Company has evaluated all subsequent events. | |||||||||||||
Use of Estimates—The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including guaranty obligations, capitalized mortgage servicing rights, derivative instruments and hedging relationships, and the disclosure of contingent assets and liabilities. Actual results may vary from these estimates. | |||||||||||||
Comprehensive Income—For the years ended December 31, 2013, 2012, and 2011, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. | |||||||||||||
Cash and Cash Equivalents—The term cash and cash equivalents, as used in the accompanying consolidated financial statements, includes currency on hand, demand deposits with financial institutions, and short-term, highly liquid investments purchased with a maturity of three months or less. The Company had no cash equivalents as of December 31, 2013 and 2012. | |||||||||||||
Restricted Cash—Restricted cash primarily represents good faith deposits. The composition of restricted cash at December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Good faith customer deposits | $ | 5,253 | $ | 6,990 | |||||||||
Sublease Deposits | 56 | 45 | |||||||||||
Employee flex deposits | 118 | 95 | |||||||||||
$ | 5,427 | $ | 7,130 | ||||||||||
Pledged Securities and Cash—As security for its GSE risk-sharing obligations (Notes 6 and 10), certain securities and cash have been pledged to the benefit of Fannie Mae and Freddie Mac, respectively, to secure the Company’s risk-sharing obligations. The balances for these pledged securities and cash at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
Investment | 2013 | 2012 | Maturity Date | ||||||||||
Fidelity Institutional Money Market Government | |||||||||||||
Portfolio—Class I | $ | 48,496 | $ | 32,326 | — | ||||||||
Pledged cash | 1,155 | 1,155 | — | ||||||||||
$ | 49,651 | $ | 33,481 | ||||||||||
The pledged securities as of December 31, 2013 consist of a highly liquid investment valued using quoted market prices from recent trades. | |||||||||||||
Servicing Fees and Other Receivables, net—Servicing fees and accounts receivable, net represents amounts currently due to the Company pursuant to contractual servicing agreements, investor good faith deposits held in escrow by others, general accounts receivable, and advances of principal and interest payments and tax and insurance escrow amounts up to 5% of the unpaid principal balance of a loan if the borrower is delinquent in making loan payments, to the extent such amounts are determined to be reimbursable and recoverable. These advances may be used to offset any losses incurred under the Company’s risk-sharing obligation with Fannie Mae. | |||||||||||||
Concentrations of Credit Risk—Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, loans held for sale, and derivative financial instruments. | |||||||||||||
The Company places the cash and temporary investments with high-credit-quality financial institutions and believes no significant credit risk exists. The counterparties to the loans held for sale and funding commitments are owners of residential multifamily properties located throughout the United States. Mortgage loans are generally transferred or sold within 60 days from the date that a mortgage loan is funded. There is no material counterparty risk with respect to the Company’s funding commitments as each potential borrower must make a non-refundable good faith deposit when the funding commitment is executed. The counterparty to the forward sale is generally an investment bank. There is a risk that the purchase price agreed to by the investor will be reduced in the event of a late delivery. The risk for non-delivery of a loan primarily results from the risk that a borrower does not close on the funding commitment in a timely manner. This risk is generally a risk mitigated by the non-refundable good faith deposit. | |||||||||||||
Business Combinations and Goodwill—The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. The Company recognizes identifiable assets acquired and liabilities (both specific and contingent) assumed at their fair values at the acquisition date. Furthermore, acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the acquired assets. The excess of the purchase price over the assets acquired, identifiable intangible assets and liabilities assumed is recognized as goodwill. During the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with corresponding adjustment to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statement of operations. | |||||||||||||
The Company does not amortize goodwill; instead, it evaluates goodwill for impairment annually. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing which indicate that it is more likely than not an impairment loss has occurred. We currently have only one reporting unit; therefore, all goodwill is allocated to that one reporting unit. The Company performed its annual impairment testing as of October 1, 2013. Our annual impairment analysis begins with comparing our market capitalization to our net assets. If the market capitalization exceeds the net asset value, further analysis is not required, and goodwill is not considered impaired. As of October 1, 2013, our market capitalization exceeded our net asset value by $60 million, or 15%. As of December 31, 2013, there have been no events subsequent to that analysis that are indicative of an impairment loss. | |||||||||||||
Derivative Assets and Liabilities—Certain loan commitments and forward sales commitments meet the definition of a derivative and are recorded at fair value in the consolidated balance sheets. The estimated fair value of loan commitments includes the value of loan origination fees and premiums on anticipated sale of the loan, net of co-broker fees, and the fair value of the expected net cash flows associated with the servicing of the loan, net of any estimated net future cash flows associated with the risk-sharing obligation. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Adjustments to fair value are reflected as a component of income. | |||||||||||||
Loans Held for Sale—Loans held for sale represent originated loans that are generally transferred or sold within 60 days from the date that a mortgage loan is funded. The Company initially measures all originated loans at fair value. Subsequent to initial measurement, the Company measures all mortgage loans at fair value, unless the Company documents at the time the loan is originated that it will measure the specific loan at the lower of cost or fair value for the life of the loan. Electing to use fair value allows a better offset of the change in fair value of the loan and the change in fair value of the derivative instruments used as economic hedges. During the period prior to its sale, interest income on a loan held for sale is calculated in accordance with the terms of the individual loan. There were no loans held for sale that were valued at the lower of cost or market or on a non-accrual status at December 31, 2013 and December 31, 2012. | |||||||||||||
Loans Held for Investment, net—Loans held for investment are multifamily interim loans originated by the Company through the Program for properties that currently do not qualify for permanent GSE or HUD financing. These loans typically have a maximum term of two years and original principal balances of $30.0 million or less. The loans are carried at their unpaid principal balances, adjusted for net unamortized loan fees and costs, and net of any allowance for loan losses. Interest income is accrued based on the actual coupon rate and is recognized as revenue when earned and deemed collectible. All loans held for investment are multifamily loans with similar risk characteristics. | |||||||||||||
The Company uses the interest method to determine an effective yield to amortize the loan fees and costs on real estate loans held for investment. All loans held for investment are floating-rate loans; therefore, the Company uses the initial coupon interest rate of the loans (without regard to future changes in the underlying indices) and anticipated principal payments, if any, to determine periodic amortization. As of December 31, 2013, the Loans held for investment, net balance consists of $135.6 million of unpaid principal balance, $0.5 million of net unamortized deferred fees and costs, and $0.4 million of allowance for loan losses. | |||||||||||||
The Company will reclassify loans held-for-investment as loans held-for-sale if it determines that the loans will be sold or transferred to third parties. | |||||||||||||
The allowance for loan losses is the Company’s estimate of credit losses inherent in the loan portfolio at the balance sheet date. The Company has established a process to determine the appropriateness of the allowance for loan losses that assesses the losses inherent in our portfolio, including monitoring the financial condition of the borrower and the financial trends of the underlying property for each of its loans held for investment to assess the credit quality of the loan. The allowance levels are influenced by loan volumes, delinquency status, historic loss experience, and other conditions influencing loss expectations, such as economic conditions. The allowance for loan losses is estimated collectively for loans with similar characteristics. The allowance for loans losses recorded as of December 31, 2013 is based on the Company’s collective assessment of the portfolio. No allowance for loan losses was necessary as of December 31, 2012. | |||||||||||||
Loans are placed on non-accrual status when collection of interest and principal is not probable. Loans held for investment are considered past due when contractually required principal or interest payments have not been made on the due dates and are charged off when the loan is considered uncollectible. The Company evaluates all loans held for investment for impairment. A loan is considered impaired when the Company believes that the facts and circumstances of the loan suggest that the Company will not be able to collect all contractually due principal and interest. Delinquency status and borrower financial condition are key components of the Company’s consideration of impairment status. | |||||||||||||
None of the loans held for investment was delinquent, impaired, or on non-accrual status as of December 31, 2013 or December 31, 2012. Additionally, we have not experienced any losses or delinquencies related to these loans or charged off any loan held for investment since the inception of the Program. | |||||||||||||
Guaranty Obligation and Allowance for Risk-sharing Obligations—When a loan is sold under the Fannie Mae DUS program, the Company undertakes an obligation to partially guarantee the performance of the loan. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. The fair value includes the Company’s obligation to stand ready to perform over the term of the guaranty (the non-contingent guaranty), and the Company’s obligation to make future payments should those triggering events or conditions occur (contingent guaranty). | |||||||||||||
Historically the contingent guaranty recognized at inception has been de minimis. In determining the fair value of the guaranty obligation, the Company considered the risk profile of the collateral, historical loss experience, and various market indicators. Generally, the estimated fair value of the guaranty obligation is based on the present value of the cash flows expected to be paid under the guaranty over the estimated life of the loan (historically three to five basis points per year) discounted using a 12-15 percent discount rate. The discount rate and estimated life used are consistent with those used for the calculation of the MSR for each loan. | |||||||||||||
Subsequent to the initial measurement date, the liability is amortized over the life of the guaranty period using the straight-line method. The Company evaluates the allowance for risk-sharing obligations by monitoring the performance of each loan for events or conditions which may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a specific loan is determined to be probable and estimable, the Company would record a liability for the estimated allowance for risk-sharing through a charge to the provision for risk-sharing obligations, along with a write-off of the associated loan-specific MSR. The amount of the allowance considers the Company’s assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan’s risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the allowance for risk-sharing obligations on all applicable loans and update loss estimates as current information is received. | |||||||||||||
Gains from Mortgage Banking Activities—Mortgage banking activity income is recognized when the Company records a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value, which reflects the fair value of the contractual loan origination related fees and sale premiums, net of co-broker fees, and the estimated fair value of the expected net cash flows associated with the servicing of the loan net of the estimated net future cash flows associated with any risk-sharing obligations. Loan transactions in a brokerage capacity tend to have lower origination fees because they often require less time to execute, there is more competition for brokerage assignments and because the borrower will also have to pay an origination fee to the ultimate institutional lender. Also included in gains from mortgage banking activities are changes to the fair value of loan commitments, forward sale commitments, and loans held for sale that occur during their respective holding periods. Upon sale of the loans, no gains or losses are recognized as such loans are recorded at fair value during their holding periods. Mortgage servicing rights (“MSRs”) and guaranty obligations are recognized as assets or liabilities, respectively, upon the sale of the loans. | |||||||||||||
The co-broker fees for the years ended December 31, 2013, 2012, and 2011 were $23.0 million, $28.8 million and $22.9 million, respectively. | |||||||||||||
Transfer of financial assets is reported as a sale when (a) the transferor surrenders control over those assets, (b) the transferred financial assets have been legally isolated from the Company’s creditors, (c) the transferred assets can be pledged or exchanged by the transferee, and (d) consideration other than beneficial interests in the transferred assets is received in exchange. The transferor is considered to have surrendered control over transferred assets if, and only if, certain conditions are met. The Company has determined that all loans sold have met these specific conditions and accounts for all transfers of mortgage loans and mortgage participations as completed sales. | |||||||||||||
When a mortgage loan is sold, the Company retains the right to service the loan and initially recognizes the mortgage servicing right (“MSR”) at fair value. Subsequent to the initial measurement date, mortgage servicing assets are amortized using the interest method. | |||||||||||||
Amortization and Depreciation—Amortization expense principally relates to mortgage servicing rights (Note 5), which are amortized using the interest method over the period that servicing income is expected to be received. | |||||||||||||
Deferred Bonuses—Certain members of senior management are eligible to receive bonus compensation if certain financial performance targets are met over specified annual and multi-year periods and they are employed at the end of those respective periods. Compensation expense is recognized ratably over the vesting period. If the officer ceases to be employed by the Company, the accrued liability is reduced to zero and recorded as a reduction of current year compensation expense. | |||||||||||||
Share-Based Payment—The Company recognizes compensation costs for all share-based payment awards made to employees and directors, including restricted stock, employee stock options and other forms of equity compensation based on the grant date fair value. | |||||||||||||
Under the Walker & Dunlop, Inc. 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”), as amended, the Company granted restricted stock, unrestricted stock and stock option awards. Restricted stock awards were granted without cost to the Company’s officers, employees and non-employee directors, for which the fair value of the award was calculated as the difference between the market value of the Company’s common stock on the date of grant and the purchase price to be paid by the grantee. The Company’s stock option and restricted stock awards for its officers and employees vest, predicated on continued employment, satisfaction of performance conditions, or a combination of both. Restricted stock awards for non-employee directors fully vest after one year. | |||||||||||||
Stock option awards were granted to officers and certain other employees, with an exercise price equal to the closing price of the Company’s common stock on the date of the grant, and were granted for a ten-year term, vesting ratably over three years dependent solely on continued employment. To estimate the grant-date fair value of stock options, the Company uses the Black-Scholes pricing model. The Black-Scholes model estimates the per share fair value of an option on its date of grant based on the following inputs: the option’s exercise price, the price of the underlying stock on the date of the grant, the estimated option term, the estimated dividend yield, a “risk-free” interest rate and the expected volatility. The Company uses an estimated dividend yield of zero as the Company has not historically issued dividends and does not expect to issue dividends in the future. For the “risk-free” rate, the Company uses a U.S. Treasury strip due in a number of years equal to the option’s expected term. To determine the expected volatility, the Company has historically calculated the volatility of the common stock price of a group of peer companies, as the Company had insufficient historical data for its common stock to develop an expectation of volatility over the expected term of the options granted solely based on the historical volatility of its own common stock. For stock option awards granted in 2013, the Company used a blended volatility rate based on the historical volatility of its own common stock and common stock of a group of peer companies. The Company issues new shares from the pool of authorized but not yet issued shares when an employee exercises stock options. | |||||||||||||
Compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis, for the entire award, over the requisite service period of the award. Forfeiture assumptions are evaluated frequently and updated as necessary. Compensation is recognized within the income statement as Personnel expense, the same expense line as the cash compensation paid to the respective employees. | |||||||||||||
Income Taxes— The Company files income tax returns in the applicable U.S. federal, state and local jurisdictions and generally is subject to examination by the respective jurisdictions for three years from the filing of a tax return. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | |||||||||||||
Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. | |||||||||||||
The Company had no accruals for tax uncertainties as of December 31, 2013 and 2012. | |||||||||||||
Net Warehouse Interest Income— The Company presents warehouse interest income net of warehouse interest expense. Warehouse interest income is the interest earned from loans that are held for sale and those held for investment. Substantially all loans that are held for sale are financed with matched borrowings under our warehouse facilities incurred to fund a specific loan held for sale. Warehouse interest expense is incurred on borrowings used to fund loans solely while they are held for sale or for investment. Warehouse interest income and expense are earned or incurred on loans held for sale after a loan is closed and before a loan is sold. Warehouse interest income and expense are earned or incurred on loans held for investment after a loan is closed and before a loan is repaid. Included in net warehouse interest income for the three years ended December 31, 2013, 2012 and 2011 are the following components (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warehouse interest income—loans held for sale | $ | 17,576 | $ | 16,562 | $ | 10,198 | |||||||
Warehouse interest income—loans held for investment | 3,583 | 799 | — | ||||||||||
Warehouse interest expense—loans held for sale | (11,362 | ) | (12,201 | ) | (5,951 | ) | |||||||
Warehouse interest expense—loans held for investment | (2,352 | ) | (492 | ) | (49 | ) | |||||||
Warehouse interest income, net | $ | 7,445 | $ | 4,668 | $ | 4,198 | |||||||
Recently Issued Accounting Pronouncements—There were no accounting pronouncements issued during 2013 or 2014 that have the potential to impact the Company. All other recently issued accounting pronouncements and their expected impact to the Company have been disclosed previously. | |||||||||||||
Reclassifications—The Company has made certain immaterial reclassifications to prior-year balances to conform to current-year presentation. |
Acquisitions_and_Goodwill_and_
Acquisitions and Goodwill, and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Acquisitions and Goodwill, and Other Intangible Assets | ' | ||||||||||||||||||||||||
NOTE 3—ACQUISITIONS AND GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||
The Company acquired CWCapital on September 4, 2012 (the “Acquisition Date”). The consideration transferred at the close of the Acquisition totaled approximately $231.1 million, consisting of $80.0 million in cash and shares of the Company’s common stock with fair value of $151.1 million. | |||||||||||||||||||||||||
The Company allocated the purchase price to the assets acquired, separately identifiable intangible assets, and liabilities assumed based on their estimated Acquisition Date fair values, with the remaining unallocated amount recognized as goodwill. During the measurement period, the Company identified adjustments to the provisional amounts recorded at the Acquisition Date as shown in the table below. The measurement-period adjustments were recorded based on information obtained subsequent to the Acquisition Date that related to information that existed as of the Acquisition Date and were related primarily to the fair value of mortgage servicing rights acquired and working capital. | |||||||||||||||||||||||||
The recognized goodwill, all of which is tax deductible over 15 years, is attributed to the value of the assembled workforce, the broader scale of operations of the combined company’s national platform and the long-term expected synergies associated with the combination. | |||||||||||||||||||||||||
The following summarizes the Company’s goodwill activity for the years ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
As of and for the year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Beginning balance | $ | 59,735 | $ | — | |||||||||||||||||||||
CWCapital acquisition, as initially recorded | — | 53,401 | |||||||||||||||||||||||
Retrospective adjustments | 477 | 6,334 | |||||||||||||||||||||||
Impairment | — | — | |||||||||||||||||||||||
Ending balance | $ | 60,212 | $ | 59,735 | |||||||||||||||||||||
The following summarizes the Company’s other intangible assets, including those related to acquisition activity, as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net carrying | Gross | Accumulated | Net carrying | ||||||||||||||||||||
carrying | Amortization | value | carrying | Amortization | value | ||||||||||||||||||||
value | value | ||||||||||||||||||||||||
Mortgage pipeline intangible asset | $ | 18,700 | $ | (18,191 | ) | $ | 509 | $ | 18,700 | $ | (15,182 | ) | $ | 3,518 | |||||||||||
Acquired mortgage servicing rights | 124,629 | (34,779 | ) | 89,850 | 124,629 | (8,503 | ) | 116,126 | |||||||||||||||||
Originated mortgage servicing rights | 364,824 | (101,650 | ) | 263,174 | 277,328 | (77,930 | ) | 199,398 | |||||||||||||||||
Total | $ | 508,153 | $ | (154,620 | ) | $ | 353,533 | $ | 420,657 | $ | (101,615 | ) | $ | 319,042 | |||||||||||
The weighted average remaining lives of the Company’s intangible assets are as follows: | |||||||||||||||||||||||||
• | Mortgage pipeline: the mortgage pipeline is amortized ratably over the estimated lives of the underlying mortgage application contracts. As of December 31, 2013, the remaining term is estimated to be between 1 and 3 months. | ||||||||||||||||||||||||
• | Mortgage servicing rights: mortgage servicing rights acquired through the Acquisition are amortized using the effective yield method. The estimated lives of the mortgage servicing rights are derived based upon the stated yield maintenance and/or prepayment protection term of the underlying loans. The weighted average remaining life of the portfolio acquired is 6.2 years. | ||||||||||||||||||||||||
The Company expects to amortize in 2014 the entire December 31, 2013 net carrying value of the mortgage pipeline intangible asset. The expected amortization of MSRs, which includes the MSRs acquired from CWCapital shown above, is discussed in Note 5. |
Gains_from_Mortgage_Banking_Ac
Gains from Mortgage Banking Activities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Gains from Mortgage Banking Activities | ' | ||||||||||||
NOTE 4—GAINS FROM MORTGAGE BANKING ACTIVITIES | |||||||||||||
Gains from mortgage banking activities consist of the following activity for each of the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Contractual loan origination related fees, net | $ | 111,699 | $ | 93,949 | $ | 48,411 | |||||||
Fair value of expected net future cash flows from servicing recognized at commitment | 97,115 | 98,308 | 57,560 | ||||||||||
Fair value of expected guaranty obligation | (5,143 | ) | (5,714 | ) | (3,259 | ) | |||||||
Total gains from mortgage banking activities | $ | 203,671 | $ | 186,543 | $ | 102,712 | |||||||
Mortgage_Servicing_Rights
Mortgage Servicing Rights | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Transfers And Servicing [Abstract] | ' | ||||||||||||
Mortgage Servicing Rights | ' | ||||||||||||
NOTE 5—MORTGAGE SERVICING RIGHTS | |||||||||||||
Mortgage servicing rights (MSRs) represent the fair value of the servicing rights retained by the Company for mortgage loans originated and sold. The capitalized amount is equal to the estimated fair value of the expected net cash flows associated with the servicing rights. The following describes the key assumptions used in calculating each loan’s MSR: | |||||||||||||
Discount Rate—Depending upon loan type, the discount rate used is management’s best estimate of market discount rates. The rates used for loans originated were 10% to 15% for each of the three years presented. | |||||||||||||
Estimated Life— The estimated life of the MSRs is derived based upon the stated yield maintenance and/or prepayment protection term of the underlying loan and may be reduced by 6 to 12 months based upon the expiration of various types of prepayment penalty and/or lockout provisions prior to that stated maturity date. | |||||||||||||
Servicing Cost—The estimated future cost to service the loan for the estimated life of the MSR is subtracted from the expected cash flows. | |||||||||||||
The fair values of the MSRs at December 31, 2013 and 2012 were $414.9 million and $350.5 million, respectively. The fair value calculation is based on our total servicing portfolio less the portion of the servicing portfolio related to loans held for sale and loans held for investment, or $38.5 billion and $34.1 billion as of December 31, 2013 and 2012, respectively. The Company uses a discounted static cash flow valuation approach and the key economic assumption is the discount rate. For example, see the following sensitivities: | |||||||||||||
The impact of 100 basis point increase in the discount rate at December 31, 2013, is a decrease in the fair value of $13.2 million. | |||||||||||||
The impact of 200 basis point increase in the discount rate at December 31, 2013, is a decrease in the fair value of $25.4 million. | |||||||||||||
These sensitivities are hypothetical and should be used with caution. These estimates do not include interplay among assumptions and are estimated as a portfolio rather than individual assets. | |||||||||||||
Activity related to capitalized MSRs for each of the years ended December 31, 2013 and 2012 was as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 315,524 | $ | 137,079 | |||||||||
Additions, following sale of loan | 112,464 | 94,008 | |||||||||||
Additions, CWCapital acquisition | — | 124,629 | |||||||||||
Amortization | (64,443 | ) | (37,019 | ) | |||||||||
Prepayments and write-offs | (10,521 | ) | (3,173 | ) | |||||||||
Ending balance | $ | 353,024 | $ | 315,524 | |||||||||
The expected amortization of MSR balances recorded, as of December 31, 2013, is shown in the table below (in thousands). Actual amortization may vary from these estimates. | |||||||||||||
Originated MSRs | Acquired MSRs | Total MSRs | |||||||||||
Year Ending December 31, | Amortization | Amortization | Amortization | ||||||||||
2014 | $ | 45,746 | $ | 18,366 | $ | 64,112 | |||||||
2015 | 40,672 | 17,013 | 57,685 | ||||||||||
2016 | 37,628 | 15,758 | 53,386 | ||||||||||
2017 | 34,532 | 13,942 | 48,474 | ||||||||||
2018 | 30,117 | 10,118 | 40,235 | ||||||||||
Thereafter | 74,479 | 14,653 | 89,132 | ||||||||||
Total | $ | 263,174 | $ | 89,850 | $ | 353,024 | |||||||
The MSRs are amortized using the interest method over the period that servicing income is expected to be received. The Company reported write-offs of MSRs related to loans that were repaid prior to the expected maturity and loans that defaulted. These write offs are included as a component of the amortization and depreciation expense in the accompanying consolidated statements of income. Prepayment fees totaling $2.4 million, $1.7 million and $0.9 million were collected for 2013, 2012 and 2011, respectively, and are included as a component of the Other revenues line item in the Consolidated Statements of Income. | |||||||||||||
Management reviews the capitalized MSRs for temporary impairment quarterly by comparing the aggregate carrying value of the MSR portfolio to the aggregate estimated fair value of the portfolio. Additionally, MSRs are assessed for permanent impairment on an asset-by-asset basis, considering factors such as debt service coverage ratio, property location, loan-to-value ratio, and property type. No temporary impairment was recognized for the years ended December 31, 2013, 2012, and 2011. | |||||||||||||
The weighted average remaining life of the aggregate MSR portfolio is 6.6 years. |
Guaranty_Obligation_and_Allowa
Guaranty Obligation and Allowance for Risk-Sharing Obligations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Guaranty Obligation and Allowance for Risk-Sharing Obligations | ' | ||||||||
NOTE 6—GUARANTY OBLIGATION AND ALLOWANCE FOR RISK-SHARING OBLIGATIONS | |||||||||
When a loan is sold under the Fannie Mae DUS program, the Company typically agrees to guarantee a portion of the ultimate loss incurred on the loan, if any, should the borrower fail to perform. This guaranty is outstanding for the term of the loan. The compensation for this risk is a component of the servicing fee on the loan. No guaranty is provided for loans sold under the Freddie Mac or HUD loan program. | |||||||||
A summary of the Company’s guaranty obligation for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 21,155 | $ | 9,921 | |||||
Guaranty obligation recognized, following the sale of the loan | 6,136 | 5,718 | |||||||
Guaranty obligation assumed, CWCapital acquisition | — | 8,254 | |||||||
Amortization of guaranty obligation | (3,802 | ) | (2,738 | ) | |||||
Ending balance | $ | 23,489 | $ | 21,155 | |||||
The Company evaluates the allowance for risk-sharing obligations by monitoring the performance of each loan for triggering events or conditions that may signal a potential default. In situations where payment under the guaranty is probable and estimable on a specific loan, the Company records a liability for the estimated allowance for risk-sharing obligations through a charge to the provision for credit losses in the income statement, along with a write-off of the loan-specific MSR. The amount of the provision reflects the Company’s assessment of the likelihood of payment by the borrower, the estimated disposition value of the underlying collateral, and the level of risk-sharing. Historically, initial loss recognition occurs at or before the loan becomes 60 days delinquent. A summary of the Company’s allowance for risk-sharing obligations for the contingent portion of the guaranty obligation for each of the years ended December 31, 2013 and 2012 was as follows (in thousands): | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 15,670 | $ | 14,917 | |||||
Provision for risk-sharing obligations | 881 | 3,140 | |||||||
Allowance for risk-sharing obligations assumed, CWCapital acquisition | — | 4,063 | |||||||
Write offs | (9,188 | ) | (6,450 | ) | |||||
Ending balance | $ | 7,363 | $ | 15,670 | |||||
As of December 31, 2013 and 2012, the maximum quantifiable contingent liability associated with guarantees was $3.7 billion and $2.7 billion, respectively. The maximum quantifiable contingent liability is not representative of the actual loss the Company would incur. The Company would be liable for this amount only if all of the loans it services, for which the Company retains some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. |
Servicing
Servicing | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Servicing | ' | ||||||||
NOTE 7—SERVICING | |||||||||
The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows at December 31, 2013 and 2012 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Unpaid principal balance of loans (1) | $ | 38,937,027 | $ | 35,169,999 | |||||
-1 | The 2012 balance reflects the addition of $14.5 billion (unpaid principal balance) of loan servicing obtained through the Acquisition. | ||||||||
At December 31, 2013 and 2012, custodial escrow accounts relating to loans serviced by the Company totaled $687.1 million and $598.6 million, respectively. These amounts are not included in the accompanying consolidated balance sheets as such amounts are not Company assets. Certain cash deposits at other financial institutions exceed the Federal Deposit Insurance Corporation insured limits. The Company places these deposits with major financial institutions where it believes the risk of loss to be minimal. |
Notes_Payable
Notes Payable | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||
Notes Payable | ' | ||||||||||
NOTE 8—NOTES PAYABLE | |||||||||||
Warehouse Notes Payable—At December 31, 2013, to provide financing to borrowers under GSE and HUD programs, the Company has arranged for warehouse lines of credit in the amount of $1.4 billion with certain national banks and a $500.0 million uncommitted facility with Fannie Mae. In support of these credit facilities, the Company has pledged substantially all of its loans held for sale and loans held for investment under the Company’s approved programs. | |||||||||||
The maximum amount and outstanding borrowings under the warehouse notes payable at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||
December 31, 2013 | |||||||||||
Facility | Maximum | Outstanding | Interest rate | ||||||||
Amount | Balance | ||||||||||
Committed warehouse facility #1 | $ | 575,000 | $ | 119,874 | Average 30-day LIBOR plus 1.50% | ||||||
Committed warehouse facility #2 | 650,000 | 148,843 | Average 30-day LIBOR plus 1.50% | ||||||||
Committed warehouse facility #3 | 57,400 | 45,496 | Average 30-day LIBOR plus 2.00% | ||||||||
Committed warehouse facility #4 | 100,000 | 47,472 | Average 30-day LIBOR plus 2.00% | ||||||||
Fannie Mae Repurchase agreement, uncommited line and open maturity | 500,000 | 11,422 | Average 30-day LIBOR plus 1.15% | ||||||||
Total | $ | 1,882,400 | $ | 373,107 | |||||||
December 31, 2012 | |||||||||||
Facility | Maximum | Outstanding | Interest rate | ||||||||
Amount | Balance | ||||||||||
Committed warehouse facility #1 | $ | 975,000 | $ | 830,749 | Average 30-day LIBOR plus 1.85% | ||||||
Committed warehouse facility #2 | 350,000 | 109,329 | Average 30-day LIBOR plus 1.75% | ||||||||
Committed warehouse facility #3 | 35,000 | 7,125 | Average 30-day LIBOR plus 2.50% | ||||||||
Committed warehouse facility #4 | 50,000 | — | Average 30-day LIBOR plus 2.50% | ||||||||
Fannie Mae Repurchase agreement, uncommited line and open maturity | 500,000 | 137,336 | Average 30-day LIBOR plus 1.15% | ||||||||
Total | $ | 1,910,000 | $ | 1,084,539 | |||||||
The average 30-day LIBOR was 0.17% and 0.21% as of December 31, 2013 and 2012, respectively. Interest expense under the warehouse notes payable for the years ended December 31, 2013, 2012 and 2011 aggregated to $13.7 million, $12.7 million and $6.0 million, respectively. Included in interest expense in 2013, 2012 and 2011 are facility fees of $2.7 million, $2.0 million and $1.1 million, respectively. The warehouse notes payable are subject to various financial covenants and the Company was in compliance with all such covenants at December 31, 2013. | |||||||||||
Warehouse Facilities | |||||||||||
To provide financing to borrowers under GSE and HUD programs and to assist in funding loans held for investment under the interim loan program, the Company has five warehouse facilities that are used to fund substantially all of its loan originations. As of December 31, 2013, the Company had four committed warehouse lines of credit in the aggregate amount of $1.4 billion with certain national banks and a $500.0 million uncommitted facility with Fannie Mae. Consistent with industry practice, three of these facilities are revolving commitments that the Company expects to renew annually, one is a revolving commitment expected to renew every two years, and the last facility is provided on an uncommitted basis without a specific maturity date. The Company’s ability to originate mortgage loans depends upon our ability to secure and maintain these types of short-term financings on acceptable terms. | |||||||||||
Warehouse Facility #1: | |||||||||||
On September 4, 2012, contemporaneous with the closing of the Acquisition, the Company entered into the Warehousing Credit and Security Agreement with a national bank for a $500.0 million committed warehouse line that was scheduled to mature on September 3, 2013. The Warehousing Credit and Security Agreement provides the Company with the ability to fund its Fannie Mae, Freddie Mac, HUD, and FHA loans. Advances are made at 100% of the loan balance and borrowings under this line originally bore interest at the average 30-day London Interbank Offered Rate (“LIBOR”) plus 185 basis points. The Warehousing Credit and Security Agreement contains certain affirmative and negative covenants that are binding on our operating subsidiary (which are in some cases subject to exceptions), including, but not limited to, restrictions on its ability to assume guarantee or become contingently liable for the obligation of another person, to undertake certain fundamental changes such as reorganizations, mergers, amendments to our certificate of formation or operating agreement, liquidations, dissolutions or dispositions or acquisitions of assets or businesses, to cease to be directly or indirectly wholly owned by the Company, to pay any subordinated debt in advance of its stated maturity or to take any action that would cause Walker & Dunlop, LLC to lose all or any part of its status as an eligible lender, seller, servicer or issuer or any license or approval required for it to engage in the business of originating, acquiring or servicing mortgage loans. | |||||||||||
In addition, the Warehousing Credit and Security Agreement requires compliance with certain financial covenants, which are measured for the Company and its subsidiaries on a consolidated basis, as follows: | |||||||||||
• | tangible net worth of the Company of not less than (i) $200.0 million plus (ii) 75% of the net proceeds of any equity issuances by the Company or any of its subsidiaries after the closing date, | ||||||||||
• | compliance with the applicable net worth and liquidity requirements of Fannie Mae, Freddie Mac, Ginnie Mae, FHA, and HUD, | ||||||||||
• | liquid assets of the Company of not less than $15.0 million, | ||||||||||
• | maintenance of aggregate unpaid principal amount of all mortgage loans comprising the Company’s consolidated servicing portfolio of not less than $20.0 billion or (ii) all Fannie Mae DUS mortgage loans comprising the Company’s consolidated servicing portfolio of not less than $10.0 billion, exclusive in both cases of mortgage loans which are 60 or more days past due or are otherwise in default or have been transferred to Fannie Mae for resolution, | ||||||||||
• | aggregate unpaid principal amount of Fannie Mae DUS mortgage loans within the Company’s consolidated servicing portfolio which are 60 or more days past due or otherwise in default not to exceed 3.5% of the aggregate unpaid principal balance of all Fannie Mae DUS mortgage loans within the Company’s consolidated servicing portfolio, and | ||||||||||
• | maximum indebtedness (excluding warehouse lines) to tangible net worth of 2.25 to 1.0, | ||||||||||
The Warehousing Credit and Security Agreement contains customary events of default, which are in some cases subject to certain exceptions, thresholds, notice requirements and grace periods. | |||||||||||
On December 6, 2012, the Company executed an amendment that increased the commitment amount to $575.0 million, effective February 1, 2013. On April 12, 2013, the Company executed an amendment to the warehousing agreement, reducing the interest rate under the line to 30-day LIBOR plus 165 basis points. On June 13, 2013, the Company executed an amendment to the warehousing agreement, further reducing the interest rate under the line to 30-day LIBOR plus 150 basis points effective June 1, 2013. On August 30, 2013, the Company executed an amendment to the warehousing agreement, extending the maturity date of the warehouse line from September 3, 2013 to September 2, 2014. No other material modifications have been made to the agreement. | |||||||||||
Warehouse Facility #2: | |||||||||||
On September 4, 2012, contemporaneous with the closing of the Acquisition, the Company amended its $350.0 million committed warehouse agreement that was scheduled to mature on February 28, 2013. The committed warehouse facility provides the Company with the ability to fund its Fannie Mae, Freddie Mac, HUD and FHA loans. On January 25, 2013, the Company entered into an amendment to increase the borrowing capacity from $350.0 million to $450.0 million. On April 2, 2013, the Company executed an amendment to the warehouse agreement, reducing the interest rate under the line to 30-day LIBOR plus 150 basis points. On June 25, 2013 the Company executed an amendment to and restatement of the warehouse agreement that, among other things, increased the borrowing capacity to $650.0 million from $450.0 million and extended the maturity date from September 3, 2013 to June 24, 2014. No other material modifications have been made to the agreement. | |||||||||||
The negative and financial covenants of the warehouse agreement conform to those of the warehouse agreement for Warehouse Facility #1, described above, with the exception of the leverage ratio covenant, which is not included in the warehouse agreement for Warehouse Facility #2. | |||||||||||
Warehouse Facility #3: | |||||||||||
The Company had a $35.0 million committed warehouse line agreement that was scheduled to mature on July 21, 2013. The facility provides the Company with the ability to fund first mortgage loans on multifamily real estate properties for periods of up to two years, using available cash in combination with advances under the facility. All borrowings bore interest at the average 30-day LIBOR plus 250 basis points. Borrowings under the facility are full recourse to the Company. | |||||||||||
On July 19, 2013, the Company executed an amendment to the warehouse agreement, extending the maturity date from July 21, 2013 to September 19, 2013. On August 19, 2013, the Company executed an amendment to the warehouse agreement, extending the maturity date from September 19, 2013 to September 21, 2014. Additionally, the committed amount was increased from $35.0 million to $57.4 million. The interest rate for advances made on or after July 21, 2013 was reduced from 30-day LIBOR plus 250 basis points to 30-day LIBOR plus 200 basis points. On October 1, 2013, we executed an amendment to the warehouse agreement to reflect the change in our ownership in the borrower under this warehouse agreement from 100% ownership to 10% ownership and made conforming modifications to the financial covenants. No other material modifications were made to the agreement. | |||||||||||
The facility agreement requires the Company’s compliance with the following financial covenants: | |||||||||||
• | minimum tangible net worth of $100.0 million, | ||||||||||
• | maximum indebtedness (excluding warehouse lines) to tangible net worth of 2.25 to 1.0, | ||||||||||
• | minimum cash and cash equivalents of $10.0 million, | ||||||||||
• | minimum EBITDA to total debt service ratio of 2.00 to 1.0, and | ||||||||||
• | aggregate unpaid principal amount of Fannie Mae DUS mortgage loans which are 60 or more days past due or otherwise in default not to exceed 2% of the outstanding principal balance of all Fannie Mae DUS mortgage loans. | ||||||||||
Warehouse Facility #4: | |||||||||||
On October 5, 2012, the Company closed a $50.0 million committed warehouse line agreement that was scheduled to mature on October 4, 2013. The agreement provides the Company with the ability to fund first mortgage loans on multifamily real estate properties for periods of up to two years, using available cash in combination with advances under the facility. All borrowings originally bore interest at the average 30-day LIBOR plus 250 basis points. The lender retains a first priority security interest in all mortgages funded by such advances on a cross-collateralized basis. Repayments under the credit agreement are interest-only, with principal repayments made upon the earlier of the refinancing of an underlying mortgage or the maturity of an advance under the credit agreement. | |||||||||||
On September 24, 2013, the Company executed an amendment to the warehousing agreement. Among other things, the amendment extended the maturity date of the warehouse line from October 4, 2013 to December 4, 2013 and increased the commitment amount from $50.0 million to $60.0 million. On November 29, 2013, the Company executed an amendment to extend the maturity date to December 13, 2013. On December 13, 2013, the Company executed an amended and restated warehousing credit and security agreement that increased the borrowing capacity to $100.0 million, extended the maturity date to December 13, 2015, and reduced the borrowing rate to the average 30-day LIBOR plus 200 basis points. No other material modifications have been made to the agreement. | |||||||||||
The amended and restated agreement requires the borrower and the Company to abide by the following significant financial covenants: | |||||||||||
• | tangible net worth of the Company of not less than (i) $200.0 million plus (ii) 75% of the net proceeds of any equity issuances by the Company or any of its subsidiaries after the closing date, | ||||||||||
• | compliance with the applicable net worth and liquidity requirements of Fannie Mae, Freddie Mac, Ginnie Mae, FHA, and HUD, | ||||||||||
• | liquid assets of the Company of not less than $15.0 million, | ||||||||||
• | rolling four-quarter EBITDA of not less than $35 million, | ||||||||||
• | Maintenance of aggregate unpaid principal amount of all mortgage loans comprising the Company’s consolidated servicing portfolio of not less than $20.0 billion or (ii) all Fannie Mae DUS mortgage loans comprising the Company’s consolidated servicing portfolio of not less than $10.0 billion, exclusive in both cases of mortgage loans which are 60 or more days past due or are otherwise in default or have been transferred to Fannie Mae for resolution, | ||||||||||
• | debt service coverage ratio of not less than 2.75 to 1.0, and | ||||||||||
• | aggregate unpaid principal amount of Fannie Mae DUS mortgage loans within the Company’s consolidated servicing portfolio which are 60 or more days past due or otherwise in default not to exceed 3.5% of the aggregate unpaid principal balance of all Fannie Mae DUS mortgage loans within the Company’s consolidated servicing portfolio. | ||||||||||
Uncommitted Warehouse Facility: | |||||||||||
The Company has a $500.0 million uncommitted facility with Fannie Mae under its ASAP funding program. After approval of certain loan documents, Fannie Mae will fund loans after closing and the advances are used to repay the primary warehouse line. Fannie Mae will advance 99% of the loan balance and borrowings under this program bear interest at the average 30-day LIBOR, with a minimum LIBOR rate of 35 basis points, plus 115 basis points. As of December 31, 2013, the Company had $11.4 million of borrowings outstanding under this program. There is no expiration date for this facility. | |||||||||||
The agreements above contain cross-default provisions, such that if a default occurs under any of the Company’s debt agreements, generally the lenders under its other debt agreements could also declare a default. As of December 31, 2013, the Company was in compliance with all of its warehouse line covenants. | |||||||||||
Notes Payable—Borrowings for notes payable at December 31, 2013 and 2012, are as follows (in thousands, unless otherwise noted): | |||||||||||
December 31, | |||||||||||
Lender | 2013 | 2012 | Interest rate and repayments | ||||||||
Term Loan—$175.0 million term loan due December 20, 2020 | $ | 173,258 | $ | — | Interest rate varies—see below for further details; quarterly principal payments of $437.5 | ||||||
Prior Loan—$83.0 million note due August 31, 2017 | — | 80,925 | Average 30-day LIBOR plus 3.75% monthly interest, quarterly principal payments of $2,075.0 | ||||||||
Total | $ | 173,258 | $ | 80,925 | |||||||
On September 4, 2012, and substantially contemporaneously with the closing of the Acquisition, the Company entered into a senior secured term loan credit agreement (the “Credit Agreement”). The Credit Agreement provided for an $83.0 million term loan (the “Prior Loan”) that was scheduled to mature on August 31, 2017. The Company repaid in full the Prior Loan on December 20, 2013. In connection with the repayment, the Company recognized a $1.2 million loss on extinguishment of debt related to unamortized debt issuance costs, which is included in Other operating expenses in the Consolidated Statements of Income. | |||||||||||
On December 20, 2013, the Company entered into a senior secured term loan credit agreement (the “Term Loan Agreement”). The Term Loan Agreement provides for a $175.0 million term loan (the “Term Loan”). At any time, the Company may also elect to request the establishment of one or more incremental term loan commitments to make up to three additional term loans (any such additional term loan, an “Incremental Term Loan”) in an aggregate principal amount for all such Incremental Term Loans not to exceed $60.0 million. | |||||||||||
The Term Loan was issued at a discount of 1.0%, and the Company used approximately $77.5 million of the Term Loan proceeds to repay in full the Prior Credit Facility and to pay certain transaction costs incurred in connection with the Term Loan. | |||||||||||
The Company is obligated to repay the aggregate outstanding principal amount of the Term Loan in consecutive quarterly installments equal to $0.4 million on the last business day of each of March, June, September and December commencing on March 31, 2014. The term loan also requires certain other prepayments in certain circumstances pursuant to the terms of the Term Loan Agreement. The final principal installment of the Term Loan is required to be paid in full on December 20, 2020 (or, if earlier, the date of acceleration of the Term Loan pursuant to the terms of the Term Loan Agreement) and will be in an amount equal to the aggregate outstanding principal of the Term Loan on such date (together with all accrued interest thereon). | |||||||||||
At the Company’s election, the Term Loan will bear interest at either (i) the “Base Rate” plus an applicable margin or (ii) the London Interbank Offered Rate (“LIBOR Rate”) plus an applicable margin, subject to adjustment if an event of default under the Term Loan Agreement has occurred and is continuing with a minimum LIBOR Rate of 1.0%. The “Base Rate” means the highest of (a) the Agent’s “prime rate,” (b) the federal funds rate plus 0.50% and (c) LIBOR for an interest period of one month plus 1%. In each case, the applicable margin is determined by the Company’s Consolidated Corporate Leverage Ratio (as defined in the Term Loan Agreement). If such Consolidated Corporate Leverage Ratio is greater than 2.50 to 1.00, the applicable margin will be 4.50% for LIBOR Rate loans and 3.50% for Base Rate loans, and if such Consolidated Corporate Leverage Ratio is less than or equal to 2.50 to 1.00, the applicable margin will be 4.25% for LIBOR Rate loans and 3.25% for Base Rate loans. The Term Loan currently bears interest at the LIBOR Rate plus an applicable margin of 4.50%. | |||||||||||
The obligations of the Company under the Term Loan Agreement are guaranteed by Walker & Dunlop Multifamily, Inc., Walker & Dunlop, LLC, and Walker & Dunlop Capital, LLC, each of which is a direct or indirect wholly owned subsidiary of the Company (together with the Company, the “Loan Parties”), pursuant to a Guarantee and Collateral Agreement entered into on December 20, 2013 among the Loan Parties and the Agent (the “Guarantee and Collateral Agreement”). Subject to certain exceptions and qualifications contained in the Term Loan Agreement, the Company is required to cause any newly created or acquired subsidiary, unless such subsidiary has been designated as an Excluded Subsidiary (as defined in the Term Loan Agreement) by the Company in accordance with the terms of the Term Loan Agreement, to guarantee the obligations of the Company under the Term Loan Agreement and become a party to the Guarantee and Collateral Agreement. The Company may designate a newly created or acquired subsidiary as an Excluded Subsidiary so long as certain conditions and requirements provided for in the Term Loan Agreement are met. | |||||||||||
The Term Loan Agreement contains certain affirmative and negative covenants that are binding on the Loan Parties, including, but not limited to, restrictions (subject to specified exceptions and qualifications) on the ability of the Loan Parties to incur indebtedness, to create liens on their property, to make investments, to merge, consolidate or enter into any similar combination, or enter into any asset disposition of all or substantially all assets, or liquidate, wind-up or dissolve, to make asset dispositions, to declare or pay dividends or make related distributions, to enter into certain transactions with affiliates, to enter into any negative pledges or other restrictive agreements, to engage in any business other than the business of the Loan Parties as of the date of the Term Loan Agreement and business activities reasonably related or ancillary thereto, to amend certain material contracts or to enter into any sale leaseback arrangements. | |||||||||||
In addition, the Term Loan Agreement requires the Company to abide by certain financial covenants calculated for the Company and its subsidiaries on a consolidated basis as follows: | |||||||||||
• | As of the last day of any fiscal quarter ending during the periods specified below, permit the Consolidated Corporate Leverage Ratio (as defined in the Term Loan Agreement) to be greater than the corresponding ratio set forth below: | ||||||||||
Period | Maximum Ratio | ||||||||||
Closing Date through December 31, 2014 | 5.00 to 1.00 | ||||||||||
January 1, 2015 through December 31, 2015 | 4.75 to 1.00 | ||||||||||
January 1, 2016 to December 31, 2016 | 4.50 to 1.00 | ||||||||||
January 1, 2017 and thereafter | 4.25 to 1.00 | ||||||||||
• | As of the last day of any fiscal quarter permit the Consolidated Corporate Interest Coverage Ratio (as defined in the Term Loan Agreement) to be less than 2.75 to 1.00. | ||||||||||
• | As of the last day of any fiscal quarter permit the Asset Coverage Ratio (as defined in the Term Loan Agreement) to be less than 1.50 to 1.00. | ||||||||||
The Term Loan Agreement contains customary events of default (which are in some cases subject to certain exceptions, thresholds, notice requirements and grace periods), including, but not limited to, non-payment of principal or interest or other amounts, misrepresentations, failure to perform or observe covenants, cross-defaults with certain other indebtedness or material agreements, certain change in control events, voluntary or involuntary bankruptcy proceedings, failure of the Term Loan Agreement or other loan documents to be valid and binding, and certain ERISA events and judgments. | |||||||||||
All of the notes payable, including the warehouse facilities, are senior obligations of the Company. | |||||||||||
The scheduled maturities, as of December 31, 2013, for the aggregate of the warehouse notes payable and the notes payable is shown below. The warehouse notes payable obligations are incurred in support of the related loans held for sale. Amounts advanced under the warehouse notes payable are included in the current year as the amounts are usually drawn and repaid within 60 days (in thousands): | |||||||||||
Year Ending December 31, | Maturities | ||||||||||
2014 | $ | 317,417 | |||||||||
2015 | 59,310 | ||||||||||
2016 | 1,750 | ||||||||||
2017 | 1,750 | ||||||||||
2018 | 1,750 | ||||||||||
Thereafter | 166,250 | ||||||||||
Total | $ | 548,227 | |||||||||
All warehouse notes payable balances associated with loans held for sale and outstanding as of December 31, 2013 were repaid in 2014. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||||||||||
NOTE 9—FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||
The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach to measure assets and liabilities that are measured at fair value. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, accounting standards establish a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: | |||||||||||||||||||||||||||||
• | Level 1—Financial assets and liabilities whose values are based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. | ||||||||||||||||||||||||||||
• | Level 2—Financial assets and liabilities whose values are based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. | ||||||||||||||||||||||||||||
• | Level 3—Financial assets and liabilities whose values are based on inputs that are both unobservable and significant to the overall valuation. | ||||||||||||||||||||||||||||
The Company’s MSRs are measured at fair value on a nonrecurring basis. That is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The Company’s MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, precise terms and conditions vary with each transaction and are not readily available. Accordingly, the estimated fair value of MSRs was developed using discounted cash flow models that calculate the present value of estimated future net servicing income. The model considers contractually specified servicing fees, prepayment assumptions, delinquency rates, late charges, other ancillary revenue, costs to service and other economic factors. The Company reassesses and periodically adjusts the underlying inputs and assumptions used in the model to reflect observable market conditions and assumptions that a market participant would consider in valuing an MSR asset. MSRs are carried at the lower of amortized cost or estimated fair value. As of December 31, 2013 and 2012, the fair value of our MSR portfolio exceeded the amortized cost. | |||||||||||||||||||||||||||||
A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s assets and liabilities carried at fair value: | |||||||||||||||||||||||||||||
• | Derivative Instruments—The derivative positions consist of interest rate lock commitments and forward sale agreements. These instruments are valued using a discounted cash flow model developed based on changes in the U.S. Treasury rate and other observable market data. The value was determined after considering the potential impact of collateralization, adjusted to reflect nonperformance risk of both the counterparty and the Company and are classified within Level 3 of the valuation hierarchy. | ||||||||||||||||||||||||||||
• | Loans Held For Sale—The loans held for sale are reported at fair value. The Company determines the fair value of the loans held for sale using discounted cash flow models that incorporate quoted observable prices from market participants. Therefore, the Company classifies these loans held for sale as Level 2. | ||||||||||||||||||||||||||||
• | Pledged Securities and Cash—The pledged securities and cash are valued using quoted market prices from recent trades. Therefore, the Company classifies pledged securities and cash as Level 1. | ||||||||||||||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012, segregated by the level of the valuation inputs within the fair value hierarchy used to measure fair value (in thousands): | |||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Balance as of | ||||||||||||||||||||||||||
Active Markets | Other | Other | Period End | ||||||||||||||||||||||||||
For Identical | Observable | Unobservable | |||||||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held for sale | $ | — | $ | 281,477 | $ | — | $ | 281,477 | |||||||||||||||||||||
Pledged securities and cash | 49,651 | — | — | 49,651 | |||||||||||||||||||||||||
Derivative assets | — | — | 19,563 | 19,563 | |||||||||||||||||||||||||
Total | $ | 49,651 | $ | 281,477 | $ | 19,563 | $ | 350,691 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 222 | $ | 222 | |||||||||||||||||||||
Total | $ | — | $ | — | $ | 222 | $ | 222 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held for sale | $ | — | $ | 1,101,561 | $ | — | $ | 1,101,561 | |||||||||||||||||||||
Pledged securities and cash | 33,481 | — | — | 33,481 | |||||||||||||||||||||||||
Derivative assets | — | — | 21,258 | 21,258 | |||||||||||||||||||||||||
Total | $ | 33,481 | $ | 1,101,561 | $ | 21,258 | $ | 1,156,300 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 867 | $ | 867 | |||||||||||||||||||||
Total | $ | — | $ | — | $ | 867 | $ | 867 | |||||||||||||||||||||
There were no transfers between any of the levels within the fair value hierarchy during 2013 or 2012. | |||||||||||||||||||||||||||||
Derivative instruments (Level 3) are outstanding for short periods of time (generally less than 60 days) and are not outstanding for more than one period. A roll forward of derivative instruments which require valuations based upon significant unobservable inputs, is presented below (in thousands): | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Using Significant | |||||||||||||||||||||||||||||
Unobservable Inputs: | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Derivative assets and liabilities, net | |||||||||||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 20,391 | |||||||||||||||||||||||||||
Settlements | (204,721 | ) | |||||||||||||||||||||||||||
Realized gains (losses) recorded in earnings (1) | 184,330 | ||||||||||||||||||||||||||||
Unrealized gains (losses) recorded in earnings (1) | 19,341 | ||||||||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 19,341 | |||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Derivative assets and liabilities, net | |||||||||||||||||||||||||||||
Beginning balance, December 31, 2011 | $ | 5,415 | |||||||||||||||||||||||||||
Settlements | (171,567 | ) | |||||||||||||||||||||||||||
Realized gains (losses) recorded in earnings (1) | 166,152 | ||||||||||||||||||||||||||||
Unrealized gains (losses) recorded in earnings (1) | 20,391 | ||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 20,391 | |||||||||||||||||||||||||||
-1 | Realized and unrealized gains (losses) from derivatives are recognized in the Gains from mortgage banking activities line item in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
The following table presents information about significant unobservable inputs used in the measurement of the fair value of the Company’s Level 3 assets and liabilities (in thousands): | |||||||||||||||||||||||||||||
Quantitative Information about Level 3 Measurements | |||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Input Value (1) | ||||||||||||||||||||||||||
Technique | Input (1) | ||||||||||||||||||||||||||||
Derivative assets | $ | 19,563 | Discounted | Counterparty | — | ||||||||||||||||||||||||
cash flow | credit risk | ||||||||||||||||||||||||||||
Derivative liabilities | 222 | Discounted | Counterparty | — | |||||||||||||||||||||||||
cash flow | credit risk | ||||||||||||||||||||||||||||
-1 | Significant increases (decreases) in this input may lead to significantly lower (higher) fair value measurements. | ||||||||||||||||||||||||||||
The carrying amounts and the fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are presented below (in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 170,563 | $ | 170,563 | $ | 65,027 | $ | 65,027 | |||||||||||||||||||||
Restricted cash | 5,427 | 5,427 | 7,130 | 7,130 | |||||||||||||||||||||||||
Pledged securities and cash | 49,651 | 49,651 | 33,481 | 33,481 | |||||||||||||||||||||||||
Loans held for sale | 281,477 | 281,477 | 1,101,561 | 1,101,561 | |||||||||||||||||||||||||
Loans held for investment, net | 134,656 | 135,620 | 9,468 | 9,500 | |||||||||||||||||||||||||
Derivative assets | 19,563 | 19,563 | 21,258 | 21,258 | |||||||||||||||||||||||||
Total financial assets | $ | 661,337 | $ | 662,301 | $ | 1,237,925 | $ | 1,237,957 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 222 | $ | 222 | $ | 867 | $ | 867 | |||||||||||||||||||||
Warehouse notes payable | 373,107 | 373,107 | 1,084,539 | 1,084,539 | |||||||||||||||||||||||||
Notes payable | 173,258 | 173,258 | 80,925 | 80,925 | |||||||||||||||||||||||||
Total financial liabilities | $ | 546,587 | $ | 546,587 | $ | 1,166,331 | $ | 1,166,331 | |||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||||||||||||||
Cash and Cash Equivalents and Restricted Cash—The carrying amounts, at face value or cost plus accrued interest, approximate fair value because of the short maturity of these instruments (Level 1). | |||||||||||||||||||||||||||||
Pledged Securities and Cash—Consist of cash and investments in money market accounts invested in government securities. Investments typically have maturities of 90 days or less, and are valued using quoted market prices from recent trades. | |||||||||||||||||||||||||||||
Loans Held For Sale—Consist of originated loans that are generally transferred or sold within 60 days from the date that a mortgage loan is funded, and are valued using discounted cash flow models that incorporate observable inputs from market participants. | |||||||||||||||||||||||||||||
Loans Held For Investment—Consist of originated interim loans which the Company expects to hold for investment for periods of up to two years, and are valued using discounted cash flow models that incorporate primarily observable inputs from market participants and also credit-related adjustments, if applicable (Level 2). As of December 31, 2013 and 2012, no credit-related adjustments were required. | |||||||||||||||||||||||||||||
Derivative Instruments—Consist of interest rate lock commitments and forward sale agreements. These instruments are valued using discounted cash flow models developed based on changes in the U.S. Treasury rate and other observable market data. The value is determined after considering the potential impact of collateralization, adjusted to reflect nonperformance risk of both the counterparty and the Company. | |||||||||||||||||||||||||||||
Warehouse Notes Payable—Consist of borrowings outstanding under warehouse line agreements. The borrowing rates on the warehouse lines are based upon average 30-day LIBOR plus a margin. The carrying amounts approximate fair value because of the short maturity of these instruments and the monthly resetting of the index rate to prevailing market rates (Level 2). | |||||||||||||||||||||||||||||
Notes Payable—Consist of borrowings outstanding under term note agreements. The borrowing rates on the notes payable are based upon average 30-day LIBOR plus a margin. The Company estimates the fair value by discounting the future cash flows of each instrument at market rates (Level 2). | |||||||||||||||||||||||||||||
Fair Value of Derivative Instruments and Loans Held for Sale—In the normal course of business, the Company enters into contractual commitments to originate (purchase) and sell multifamily mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by the Company. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to an investor. | |||||||||||||||||||||||||||||
To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company’s policy is to enter into a sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The sale contract with the investor locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all respects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for the closing of the loan and processing of paperwork to deliver the loan into the sale commitment. | |||||||||||||||||||||||||||||
Both the rate lock commitments to borrowers and the forward sale contracts to buyers are undesignated derivatives and, accordingly, are marked to fair value through earnings. The fair value of the Company’s rate lock commitments to borrowers and loans held for sale and the related input levels includes, as applicable: | |||||||||||||||||||||||||||||
• | the assumed gain/loss of the expected resultant loan sale to the buyer; | ||||||||||||||||||||||||||||
• | the expected net cash flows associated with servicing the loan (Level 2); | ||||||||||||||||||||||||||||
• | the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and | ||||||||||||||||||||||||||||
• | the nonperformance risk of both the counterparty and the Company (Level 3). | ||||||||||||||||||||||||||||
The fair value of the Company’s forward sales contracts to investors considers effects of interest rate movements between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. | |||||||||||||||||||||||||||||
The assumed gain/loss considers the amount that the Company has discounted the price to the borrower from par for competitive reasons, if at all, and the expected net cash flows from servicing to be received upon securitization of the loan. The fair value of the expected net cash flows associated with servicing the loan is calculated pursuant to the valuation techniques described previously for mortgage servicing rights. | |||||||||||||||||||||||||||||
To calculate the effects of interest rate movements, the Company uses applicable published U.S. Treasury prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. | |||||||||||||||||||||||||||||
The fair value of the Company’s forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. | |||||||||||||||||||||||||||||
The fair value of the Company’s interest rate lock commitments and forward sales contracts is adjusted to reflect the risk that the agreement will not be fulfilled. The Company’s exposure to nonperformance in rate lock and forward sale contracts is represented by the contractual amount of those instruments. Given the credit quality of our counterparties, the short duration of interest rate lock commitments and forward sale contracts, and the Company’s historical experience with the agreements, the risk of nonperformance by the Company’s counterparties is not significant. | |||||||||||||||||||||||||||||
Fair Value Adjustment Components | Balance Sheet Location | ||||||||||||||||||||||||||||
In thousands | Notional or | Assumed | Interest Rate | Total | Derivative | Derivative | Fair Value | ||||||||||||||||||||||
Principal | Gain (Loss) | Movement | Fair Value | Contract | Contract | Adjustment | |||||||||||||||||||||||
Amount | on Sale | Effect | Adjustment | Assets | Liabilities | To Loans | |||||||||||||||||||||||
Held for Sale | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Rate lock commitments | $ | 235,616 | $ | 12,331 | $ | (6,253 | ) | $ | 6,078 | $ | 6,299 | $ | (221 | ) | $ | — | |||||||||||||
Forward sale contracts | 515,755 | — | 13,263 | 13,263 | 13,264 | (1 | ) | — | |||||||||||||||||||||
Loans held for sale | 280,139 | 8,348 | (7,010 | ) | 1,338 | — | — | 1,338 | |||||||||||||||||||||
Total | $ | 20,679 | $ | — | $ | 20,679 | $ | 19,563 | $ | (222 | ) | $ | 1,338 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Rate lock commitments | $ | 302,373 | $ | 11,953 | $ | (1,194 | ) | $ | 10,759 | $ | 10,759 | $ | — | $ | — | ||||||||||||||
Forward sale contracts | 1,380,235 | — | 9,756 | 9,756 | 10,499 | (867 | ) | — | |||||||||||||||||||||
Loans held for sale | 1,077,862 | 32,261 | (8,562 | ) | 23,699 | — | — | 23,699 | |||||||||||||||||||||
Total | $ | 44,214 | $ | — | $ | 44,214 | $ | 21,258 | $ | (867 | ) | $ | 23,699 | ||||||||||||||||
Litigation_Commitments_and_Con
Litigation, Commitments, and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Litigation, Commitments, and Contingencies | ' | ||||
NOTE 10—LITIGATION, COMMITMENTS, AND CONTINGENCIES | |||||
Fannie Mae DUS Related Commitments—Commitments for the origination and subsequent sale and delivery of loans to Fannie Mae represent those mortgage loan transactions where the borrower has locked an interest rate and scheduled closing and the Company has entered into a mandatory delivery commitment to sell the loan to Fannie Mae. As discussed in Note 9, the Company accounts for these commitments as derivatives recorded at fair value. | |||||
The Company is generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program (the DUS risk-sharing obligations). The Company is required to secure this obligation by assigning restricted cash balances and securities to Fannie Mae. On March 29, 2013, Fannie Mae announced changes to the DUS Capital Standards that were retroactive to January 1, 2013. These changes were as follows: | |||||
• | Restricted liquidity requirements for Tier 1 loans were immediately increased from 90 basis points to 110 basis points for all new and any existing Tier 1 loans. The Company has an insignificant number of Tier 1 loans in its portfolio; therefore, the incremental restrictive liquidity requirement did not have a material impact on the Company’s operations during 2013, and the Company does not expect it to have a material impact on future operations; | ||||
• | Restricted liquidity requirements for existing Tier 2 loans were increased from 60 basis points to 75 basis points. The restricted liquidity requirement on new Tier 2 loans will continue to be funded over a 48 month period that begins upon delivery of the loan to Fannie Mae. The restricted liquidity requirement on existing Tier 2 mortgage loans will increase gradually by three basis points per quarter for eight quarters through December 31, 2014. | ||||
• | Restricted liquidity held as collateral in the form of US Treasuries experienced a collateral reduction increasing from 0% to 3%, the discount on US Federal Agency Securities increased from 3% to 4%, and the discount on money market funds holding US Treasuries increased from 0% to 5%. As of December 31, 2013, the Company held all of its restricted liquidity in money market funds holding US Treasuries. | ||||
The Company is in compliance with the December 31, 2013 collateral requirements as outlined above. As of December 31, 2013, reserve requirements for the December 31, 2013 DUS loan portfolio will require the Company to fund $40.9 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at risk portfolio. Fannie Mae will reassess the DUS Capital Standards on or before June 30, 2014. The Company generates sufficient cash flow from its operations to meet these capital standards and does not expect these changes to have a material impact on its future operations; however, future changes to collateral requirements may adversely impact the Company’s available cash. | |||||
Under the provisions of the DUS agreement, the Company must also maintain a certain level of liquid assets referred to as the operational and unrestricted portions of the required reserves each year. These requirements were satisfied by the Company as of December 31, 2013. | |||||
For most loans serviced under the Fannie Mae DUS program, the Company is currently required to advance 100% of the principal and interest due to noteholders until foreclosure or up to 5% of the unpaid principal balance if the borrower is delinquent in making loan payments. Under the HUD program, the Company is required to advance 100% of the principal and interest payments due to noteholders if the borrower is delinquent in making loan payments. Advances are included in loan origination related fees and other receivables to the extent such amounts are recoverable. | |||||
Fannie Mae has established benchmark standards for capital adequacy, and reserves the right to terminate the Company’s servicing authority for all or some of the portfolio, if at any time it determines that the Company’s financial condition is not adequate to support its obligation under the DUS agreement. The Company is required to maintain acceptable net worth as defined in the standards, and the Company satisfied the requirements as of December 31, 2013 and 2012. The net worth requirement is derived primarily from unpaid balances on Fannie Mae loans and the level of risk-sharing. At December 31, 2013, the net worth requirement was $91.1 million and the Company’s net worth was $250.1 million, as measured at our wholly owned subsidiary. As of December 31, 2013, the Company was required to maintain at least $17.4 million of liquid assets to meet operational liquidity requirements for Fannie Mae, Freddie Mac, HUD and Ginnie Mae. As of December 31, 2013, the Company had operational liquidity of $166.9 million, as measured at our wholly owned subsidiary. | |||||
Litigation—Capital Funding Litigation—On February 17, 2010, Capital Funding Group, Inc. (“Capital Funding”) filed a lawsuit in the Circuit Court for Montgomery County, Maryland against Walker & Dunlop, LLC, our wholly owned subsidiary, for alleged breach of contract, unjust enrichment and unfair competition arising out of an alleged agreement that Capital Funding had with Column Guaranteed, LLC (“Column”) to refinance a large portfolio of senior healthcare facilities located throughout the United States (the “Golden Living Facilities”). Capital Funding alleges that a contract existed between it and Column (and its affiliates) whereby Capital Funding allegedly had the right to perform the HUD refinancing for the Golden Living Facilities and according to which Capital Funding provided certain alleged proprietary information to Column and its affiliates relating to the acquisition of the Golden Living Facilities on a confidential basis. Capital Funding further alleges that Walker & Dunlop, LLC, as the alleged successor by merger to Column, is bound by Column’s alleged agreement with Capital Funding, and breached the agreement by taking for itself the opportunity to perform the HUD refinancing for the Golden Living Facilities. | |||||
Capital Funding further claims that Column and its affiliates and Walker & Dunlop, LLC breached the contract, were unjustly enriched, and committed unfair competition by using Capital Funding’s alleged proprietary information for certain allegedly unauthorized purposes. Capital Funding also asserts a separate unfair competition claim against Walker & Dunlop, LLC in which it alleges that Walker & Dunlop, LLC is improperly “taking credit” on its website for certain work actually performed by Capital Funding. Capital Funding seeks damages in excess of $30 million on each of the three claims asserted against all defendants, and an unspecified amount of damages on the separate claim for unfair competition against Walker & Dunlop, LLC. Capital Funding also seeks injunctive relief in connection with its unjust enrichment and unfair competition claims. | |||||
Pursuant to an agreement, dated January 30, 2009 (the “Column Transaction Agreement”), among Column, Walker & Dunlop, LLC, W&D, Inc. and Green Park, Column generally agreed to indemnify Walker & Dunlop, LLC against liability arising from Column’s conduct prior to Column’s transfer of the assets to Walker & Dunlop, LLC. However, pursuant to the Column Transaction Agreement, Column’s indemnification obligation arises only after Column receives a claim notice following the resolution of the litigation that specifies the amount of Walker & Dunlop, LLC’s claim. | |||||
To provide for greater certainty regarding Column’s indemnification obligations before the resolution of this litigation and to cap our total loss exposure, the Company secured a further agreement from Column in November 2010 confirming that it will indemnify the Company for any liabilities that arise as a result of this litigation. As part of this further indemnification agreement, in the event Column is required to pay the Company for any liabilities under the Capital Funding litigation that it otherwise would not have been obligated to pay under the Column Transaction Agreement, the Company will indemnify Column for an amount up to $3.0 million. Also as part of this further indemnification agreement, William Walker, our Chairman, President and Chief Executive Officer, and Mallory Walker, former Chairman and current stockholder, in their individual capacities, agreed that if Column is required to indemnify the Company under this agreement and otherwise would not have been obligated to pay such amounts under the Column Transaction Agreement, Messrs. William Walker and Mallory Walker will pay any such amounts in excess of $3.0 million but equal to or less than $6.0 million. As a result of this agreement, the Company will have no liability or other obligation for any damage amounts in excess of $3.0 million arising out of this litigation. Although Column has assumed defense of the case for all defendants, and is paying applicable counsel fees, as a result of the indemnification claim procedures described above, the Company could be required to bear the significant costs of the litigation and any adverse judgment unless and until the Company is able to prevail on our indemnification claim. The Company believes that it will fully prevail on its indemnification claims against Column, and that the Company ultimately will incur no material loss as a result of this litigation, although there can be no assurance that this will be the case. Accordingly, we have not recorded a loss contingency for this litigation. | |||||
On July 19, 2011, the Circuit Court for Montgomery County, Maryland issued an order granting the defendants’ motion to dismiss the case without prejudice. After the initial case was dismissed without prejudice, Capital Funding filed an amended complaint. In November 2011, the Circuit Court for Montgomery County, Maryland rejected the Company’s motion to dismiss the amended complaint. Capital Funding filed a Second Amended Complaint that did not alter the claims at issue but revised their alleged damages. Defendants moved for summary judgment on all claims, including two counts of breach of contract, two counts of promissory estoppel, two counts of unjust enrichment, and two counts of unfair competition. On April 30, 2013, the Court issued an Opinion and Order which granted the motion as to the promissory estoppel counts and one count of unjust enrichment. The court denied the motion as to all remaining claims. | |||||
A two-week jury trial was held in July 2013. In the course of the trial, all but two of Capital Funding’s claims were dismissed. The jury awarded Capital Funding (i) a $1.75 million judgment against defendants on Capital Funding’s breach of contract claim and (ii) a $10.4 million judgment against Credit Suisse Securities (USA) LLC (“Credit Suisse”), Column’s parent, on Capital Funding’s unjust enrichment claim. Because the two claims arise from the same facts, Capital Funding agreed it may only collect on one of the judgments; following the verdict, Capital Funding “elected” to collect the $10.4 million judgment against Credit Suisse. The defendants filed a post judgment motion to reduce or set aside the judgment. On January 31, 2014 the Court ruled that the $10.4 million unjust enrichment judgment is vacated, and awarded Capital Funding the $1.8 million breach of contract judgment. On February 10, 2014, Capital Funding filed a motion with the Court seeking a new trial. The motion is opposed by the defendants. As a result of an indemnification arrangement, the Company’s loss exposure is limited to $3.0 million, and the Company believes that the indemnification fully covers the $1.8 million judgment. | |||||
Litigation—CA Funds Group Litigation—In March 2012, the Company’s wholly owned subsidiary, Walker & Dunlop Investment Advisory Services, LLC (“IA Services”) engaged CA Funds Group, Inc. (“CAFG”) to provide, among other things, consulting services in connection with expanding the Company’s investment advisory services business. The engagement letter was supplemented in June 2012 to retain CAFG to engage in certain capital raising activities, primarily with respect to a potential commingled, open-ended Fund (“Fund”). The Fund was never launched by the Company. However, the Company independently formed the Bridge Program, which is focused primarily on making floating-rate loans of up to two years of $30.0 million or more to experienced owners of multifamily properties. CAFG filed a breach of contract action captioned CA Funds Group, Inc. v. Walker & Dunlop Investment Advisory Services, LLC and Walker & Dunlop, LLC in the United States District Court for the Northern District of Illinois, Eastern Division, seeking a placement fee in the amount of $5.1 million (plus interest and the costs of the suit) based upon the $380.0 million allegedly obtained for the Bridge Program. The Company filed a motion to dismiss the complaint on January 3, 2014, CAFG filed a response to the motion on January 31, 2014, and a ruling on the motion is expected in March 2014. We intend to vigorously defend the matter. | |||||
The Company has not recorded a loss reserve for the aforementioned litigation as the Company does not believe that a loss is probable in either case. The Company cannot predict the outcome of any pending litigation and may be subject to consequences that could include fines, penalties, and other costs, and the Company’s reputation and business may be impacted. The Company’s management believes that any liability that could be imposed on the Company in connection with the disposition of any pending lawsuits would not have a material adverse effect on its business, results of operations, liquidity or financial condition. | |||||
In the normal course of business, the Company may be party to various other claims and litigation, none of which the Company believes is material. | |||||
Lease Commitments—The Company’s predecessor executed a lease agreement in October 2002 for its corporate headquarters, which was subsequently amended in November 2003, to increase the amount of space leased to a full floor (approximately 23,000 square feet). On July 1, 2011, the Company signed an amendment to acquire an additional approximately 23,000 square feet and extend the lease expiration date to November 20, 2023. Rent expense related to this lease is recognized on the straight-line basis over the term of the lease. Rent expense was approximately $6.1 million, $3.5 million and $1.9 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
Minimum cash basis operating lease commitments are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 4,367 | |||
2015 | 4,163 | ||||
2016 | 3,504 | ||||
2017 | 3,077 | ||||
2018 | 2,861 | ||||
Thereafter | 13,491 | ||||
Total | $ | 31,463 | |||
ShareBased_Payment
Share-Based Payment | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Share-Based Payment | ' | ||||||||||||||||
NOTE 11—SHARE-BASED PAYMENT | |||||||||||||||||
There are 5,510,000 shares of stock authorized for issuance under the 2010 Equity Incentive Plan to directors, officers and employees. | |||||||||||||||||
During 2013, the Company granted stock options, under the 2010 Equity Incentive Plan, as amended, to officers and certain employees, with an exercise price equal to the closing price of the Company’s common stock on the date of grant. The stock options have a 10 year term and vest ratably over periods of two to three years dependent solely on continued employment. In addition, the Company granted restricted shares, under the 2010 Equity Incentive Plan, to officers, employees and non-employee directors, without cost to the grantee. The restricted share awards granted to officers and employees vest ratably over three years dependent on continued employment, performance conditions, or some combination thereof. Restricted share awards to non-employee directors fully vest one year from the date of grant. | |||||||||||||||||
In addition, in 2013, the Company granted 275,038 restricted share units (“RSUs”) to officers and certain other employees. The RSUs cliff vest after three years based on continued employment and the Company’s achievement of specified performance targets. If either of the conditions is not met, the RSUs are forfeited. The Company recorded immaterial compensation expense related to these RSUs for the year ended December 31, 2013. As of December 31, 2013, all of the RSUs are unvested and outstanding. | |||||||||||||||||
At December 31, 2013, an additional 2,708,475 shares remain available for grant under the 2010 Equity Incentive Plan. | |||||||||||||||||
The following table provides additional information regarding the Company’s share-based payment plan for the year ended December 31, 2013 (dollars in thousands, except per share amounts): | |||||||||||||||||
Options / | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contract | ||||||||||||||||
Life | |||||||||||||||||
(Years) | |||||||||||||||||
Restricted Shares | |||||||||||||||||
Nonvested at beginning of period | 1,048,346 | ||||||||||||||||
Granted | 418,757 | ||||||||||||||||
Vested | (518,691 | ) | |||||||||||||||
Forfeited | (151,221 | ) | |||||||||||||||
Nonvested at end of period | 797,191 | $ | 12,891 | ||||||||||||||
Stock Options | |||||||||||||||||
Outstanding at beginning of period | 502,968 | ||||||||||||||||
Granted | 336,459 | ||||||||||||||||
Exercised | (74,425 | ) | |||||||||||||||
Forfeited | (6,666 | ) | |||||||||||||||
Expired | — | ||||||||||||||||
Outstanding at end of period | 758,336 | $ | 15.13 | 8.5 | $ | 787 | |||||||||||
Exercisable at end of period | 186,832 | $ | 12.71 | 7.6 | $ | 646 | |||||||||||
The fair value of stock option awards granted during 2013 and 2012 were estimated on the grant date using the Black-Scholes option pricing model, based on the following inputs: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Estimated option life | 6.00 years | 6.00 years | |||||||||||||||
Risk free interest rate | 1.01 | % | 1.09 | % | |||||||||||||
Expected volatility | 33.58 | % | 45.76 | % | |||||||||||||
Expected dividend rate | 0 | % | 0 | % | |||||||||||||
Weighted average grant date fair value per share of options granted | $ | 6.13 | $ | 5.79 | |||||||||||||
The fair value of restricted share awards granted during 2013 was estimated using the closing price on the date of grant. The weighted average grant date fair values of restricted shares granted in 2013, 2012, and 2011 were $18.40 per share, $12.74 per share, and $12.59 per share, respectively. | |||||||||||||||||
The fair values of the restricted shares and stock options that vested during the years ended December 31, 2013, 2012, and 2011 (in thousands) were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Restricted Shares | $ | 9,076 | $ | 3,327 | $ | 1,939 | |||||||||||
Stock Options | 3,489 | 897 | — | ||||||||||||||
Total | $ | 12,565 | $ | 4,224 | $ | 1,939 | |||||||||||
For the years ended December 31, 2013, 2012, and 2011, share based payment expense was $9.2 million, $5.2 million, and $2.4 million, respectively. For the years ended December 31, 2013, 2012, and 2011, the excess tax benefit recognized on the vesting events was $1.3 million, $0.2 million, and $0.1 million. As of December 31, 2013, the total unrecognized compensation cost for outstanding restricted shares and options was $11.1 million, net of estimated forfeitures. As of December 31, 2013, the weighted-average period over which the unrecognized compensation cost will be recognized is 2.4 years. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
NOTE 12—EARNINGS PER SHARE | |||||||||||||
The following weighted average shares and share equivalents are used to calculate basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average number of shares outstanding used to calculate basic earnings per share | 33,764,233 | 25,545,028 | 21,621,534 | ||||||||||
Dilutive securities: | |||||||||||||
Stock options and restricted shares | 571,681 | 299,987 | 126,138 | ||||||||||
Weighted average number of shares and share equivalentsoutstanding used to calculated diluted earnings per share | 34,335,914 | 25,845,015 | 21,747,672 | ||||||||||
The assumed proceeds used for calculating the dilutive impact of restricted stock awards under the treasury method includes the unrecognized compensation costs and excess tax benefits associated with the awards. Average options issued under the 2010 Equity Incentive Plan to purchase 81,781, 159,744, and 166,100 shares of common stock were outstanding during the years ended December 31, 2013, 2012, and 2011, respectively, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. During the year ended December 31, 2013, all of the outstanding restricted shares were included in the computation of diluted earnings per share. During the years ended December 31, 2012 and 2011, 9,421 and 103,672 average restricted shares were outstanding, respectively, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. | |||||||||||||
Under the 2010 Equity Incentive Plan, as amended, subject to the Company’s approval, grantees have the option of electing to satisfy tax withholding obligations at the time of vesting or exercise by allowing the Company to withhold and purchase the shares of stock otherwise issuable to the grantee. For the years ended December 31, 2013, 2012 and 2011, the Company repurchased and retired 161,294, 48,359, and 38,473 restricted shares at a weighted average market price of $17.64, $15.32, and $12.30, upon grantee vesting, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
NOTE 13—INCOME TAXES | |||||||||||||
Income Tax Provision | |||||||||||||
The Company calculates its provision for federal and state income taxes based on current tax law. The reported tax provision differs from the amounts currently receivable or payable because some income and expense items are recognized in different time periods for financial reporting purposes than for income tax purposes. The following is a summary of our provision for income taxes (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal | $ | 5,144 | $ | 4,332 | $ | 10,434 | |||||||
State | 645 | 1,136 | 1,697 | ||||||||||
Total | $ | 5,789 | $ | 5,468 | $ | 12,131 | |||||||
Deferred | |||||||||||||
Federal | $ | 15,868 | $ | 14,068 | $ | 8,406 | |||||||
State | 2,343 | 2,218 | 1,117 | ||||||||||
Total | $ | 18,211 | $ | 16,286 | $ | 9,523 | |||||||
Items charged or credited directly to stockholders’ equity | |||||||||||||
Federal | $ | 1,091 | $ | 206 | $ | 123 | |||||||
State | 166 | 38 | 20 | ||||||||||
Total | $ | 1,257 | $ | 244 | $ | 143 | |||||||
Income tax provision | $ | 25,257 | $ | 21,998 | $ | 21,797 | |||||||
A reconciliation of the statutory federal tax provision to our income tax provision in the accompanying statements of income is as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal provision (35%) | $ | 23,376 | $ | 19,520 | $ | 19,831 | |||||||
Statutory state income tax provision, net of federal tax benefit | 2,195 | 2,174 | 1,983 | ||||||||||
Other | (314 | ) | 304 | (17 | ) | ||||||||
Income tax expense | $ | 25,257 | $ | 21,998 | $ | 21,797 | |||||||
Deferred Tax Assets/Liabilities | |||||||||||||
The tax effects of temporary differences between reported earnings and taxable earnings consisted of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets: | |||||||||||||
Compensation related | $ | 5,002 | $ | 7,665 | |||||||||
Credit losses | 2,789 | 4,470 | |||||||||||
Acquisition related (1) | 6,635 | 7,979 | |||||||||||
Other | 1,050 | 943 | |||||||||||
Total deferred tax assets | $ | 15,476 | $ | 21,057 | |||||||||
Deferred Tax Liabilities: | |||||||||||||
Mark-to-market of derivatives and loans held for sale | $ | (6,157 | ) | $ | (11,606 | ) | |||||||
Mortgage servicing rights related | (81,189 | ) | (63,584 | ) | |||||||||
Depreciation | (2,376 | ) | (1,902 | ) | |||||||||
Total deferred tax liabilities | $ | (89,722 | ) | $ | (77,092 | ) | |||||||
Deferred tax liabilities, net | $ | (74,246 | ) | $ | (56,035 | ) | |||||||
-1 | Acquisition-related deferred tax assets consist of book-to-tax differences associated with basis step ups related to the amortization of goodwill recorded from the Acquisition and an acquisition made by one of the Company’s predecessor entities, acquisition-related costs capitalized for tax purposes, and book-to-tax differences in intangible asset amortization. | ||||||||||||
The Company believes it is more likely than not that it will generate sufficient taxable income in future periods to realize the deferred tax assets. | |||||||||||||
Tax Uncertainties | |||||||||||||
The Company periodically assesses its liabilities and contingencies for all periods open to examination by tax authorities based on the latest available information. Where the Company believes there is more than a 50% chance that a tax position will not be sustained, management records its best estimate of the resulting tax liability, including interest, in the Consolidated Financial Statements. As of December 31, 2013, based on all known facts and circumstances and current tax law, management believes that there are no tax positions for which it is reasonably possible that the unrecognized tax benefits will significantly increase or decrease over the next 12 months, producing, individually or in the aggregate, a material effect on the Company’s results of operations, financial condition, or cash flows. |
Transactions_with_Related_Part
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Transactions with Related Parties | ' |
NOTE 14—TRANSACTIONS WITH RELATED PARTIES | |
A third party entity, Walker & Dunlop Multifamily Equity I, LLC (the “Managing Member”), in which Mr. Walker and other individuals hold ownership, is the managing member of an investment fund. The Company provides consulting and related services to the Managing Member pursuant to a corporate services agreement for a fee which approximates our cost for such services. The amount of such fees was approximately $0.4 million, $0.7 million and $0.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |
On September 4, 2012, the Company consummated the acquisition of CWCapital LLC and at such time, Fortress Investment Group LLC and its subsidiaries became a related party by virtue of its ownership of greater than 10% of the issued and outstanding common stock of the Company. Following the closing of the Acquisition, pursuant to a transition services agreement, the Company agreed to pay CW Financial $1.0 million per month for three months for support services during the integration period. For the year ended December 31, 2012, the amount of such fees paid to CW Financial was $3.0 million. |
Segments
Segments | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segments | ' | ||||||||||||
NOTE 15—SEGMENTS | |||||||||||||
The Company is one of the leading commercial real estate finance companies in the United States, with a primary focus on multifamily lending. The Company originates a range of multifamily and other commercial real estate loans that are sold to the GSEs or HUD or placed with institutional investors. The Company also services nearly all of the loans it sells to the GSEs or HUD and many of the loans that it places with institutional investors. Substantially all of its operations involve the delivery and servicing of loan products for its customers. Management makes operating decisions and assesses performance based on an ongoing review of these integrated operations, which constitute the Company’s only operating segment for financial reporting purposes. | |||||||||||||
The Company evaluates the performance of its business and allocates resources based on a single-segment concept. No one borrower/key principal accounts for more than 3% of our total risk-sharing loan portfolio. | |||||||||||||
An analysis of the investor concentrations and geographic dispersion of our servicing revenue is shown in the following tables. This information is based on the distribution of the loans serviced for others. The principal balance of the loans serviced for others, by investor, for the years ended December 31, 2013, 2012 and 2011 was as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fannie Mae | $ | 19,352,880 | $ | 18,854,611 | $ | 10,379,426 | |||||||
Freddie Mac | 10,271,732 | 9,114,221 | 3,189,565 | ||||||||||
Ginnie Mae-HUD | 5,044,193 | 4,642,380 | 1,359,166 | ||||||||||
Life insurance companies and other | 4,268,222 | 2,558,787 | 1,850,128 | ||||||||||
Total | $ | 38,937,027 | $ | 35,169,999 | $ | 16,778,285 | |||||||
The percentage of unpaid principal balance of the loans serviced for others as of December 31, 2013, 2012 and 2011 by geographical area, is as shown in the following table. No other state accounted for more than 5% unpaid principal balance and related servicing revenues in any of the three fiscal years presented. The Company does not have any operations outside of the United States. | |||||||||||||
Percent of Total UPB as of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
California | 17.1 | % | 18.6 | % | 14.6 | % | |||||||
Florida | 8.2 | % | 7 | % | 7.7 | % | |||||||
Maryland | 8.1 | % | 9.2 | % | 7.6 | % | |||||||
Texas | 7.1 | % | 7.5 | % | 8.3 | % | |||||||
Virginia | 5.7 | % | 5.6 | % | 9 | % | |||||||
All other states | 53.8 | % | 52.1 | % | 52.8 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
Other_Operating_Expenses
Other Operating Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Other Operating Expenses | ' | ||||||||||||
NOTE 16—OTHER OPERATING EXPENSES | |||||||||||||
The following is a summary of the major components of other operating expenses for each of the three years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Professional fees | $ | 7,242 | $ | 12,339 | $ | 3,979 | |||||||
Travel and entertainment | 4,442 | 4,967 | 2,416 | ||||||||||
Sub-servicing expense | 4,755 | 3,038 | 1,955 | ||||||||||
Rent | 6,072 | 3,537 | 1,944 | ||||||||||
Marketing and preferred broker | 3,873 | 2,755 | 1,937 | ||||||||||
Office expenses | 3,676 | 2,577 | 1,681 | ||||||||||
All other | 7,505 | 4,036 | 2,554 | ||||||||||
Total | $ | 37,565 | $ | 33,249 | $ | 16,466 | |||||||
Quarterly_Results_Unaudited
Quarterly Results (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Results (Unaudited) | ' | ||||||||||||||||
NOTE 17—QUARTERLY RESULTS (UNAUDITED) | |||||||||||||||||
The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||
As of and for the year ended December 31, 2013 | |||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||
Gains from mortgage banking activities | $ | 52,386 | $ | 45,278 | $ | 63,076 | $ | 42,931 | |||||||||
Servicing fees | 23,750 | 22,954 | 22,370 | 21,141 | |||||||||||||
Total revenues | 85,470 | 73,650 | 90,734 | 69,185 | |||||||||||||
Personnel | 36,985 | 31,091 | 37,308 | 28,283 | |||||||||||||
Amortization and depreciation | 18,451 | 19,441 | 17,728 | 17,256 | |||||||||||||
Total expenses | 67,519 | 60,946 | 66,932 | 56,855 | |||||||||||||
Operating income | 17,951 | 12,704 | 23,802 | 12,330 | |||||||||||||
Net income | 11,206 | 8,055 | 14,543 | 7,726 | |||||||||||||
Diluted earnings per share | 0.33 | 0.23 | 0.42 | 0.23 | |||||||||||||
Total originations | 2,340,782 | 1,763,489 | 2,559,414 | 1,731,352 | |||||||||||||
Servicing portfolio | $ | 38,937,027 | $ | 38,666,621 | $ | 37,885,270 | $ | 36,760,520 | |||||||||
As of and for the year ended December 31, 2012 | |||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||
Gains from mortgage banking activities | $ | 79,407 | $ | 53,400 | $ | 33,934 | $ | 19,802 | |||||||||
Servicing fees | 19,694 | 13,307 | 9,827 | 9,379 | |||||||||||||
Total revenues | 105,522 | 70,126 | 46,720 | 34,402 | |||||||||||||
Personnel | 47,860 | 32,173 | 17,363 | 11,641 | |||||||||||||
Amortization and depreciation | 15,076 | 9,595 | 6,743 | 7,259 | |||||||||||||
Total expenses | 86,133 | 58,348 | 31,611 | 24,908 | |||||||||||||
Operating income | 19,389 | 11,778 | 15,109 | 9,494 | |||||||||||||
Net income | 11,543 | 7,098 | 9,292 | 5,839 | |||||||||||||
Diluted earnings per share | 0.34 | 0.28 | 0.42 | 0.27 | |||||||||||||
Total originations | 2,909,952 | 2,180,795 | 1,336,982 | 674,456 | |||||||||||||
Servicing portfolio | $ | 35,169,999 | $ | 33,886,562 | $ | 17,562,832 | $ | 16,850,945 | |||||||||
As noted previously, the Company completed the Acquisition on September 4, 2012. The Acquisition impacts the comparability of the current year’s quarters to the prior year’s quarters. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Principles of Consolidation | ' | ||||||||||||
Principles of Consolidation—The consolidated financial statements include the accounts of the Company as defined in Note 1. All material intercompany transactions have been eliminated. The Company has evaluated all subsequent events. | |||||||||||||
Use of Estimates | ' | ||||||||||||
Use of Estimates—The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, including guaranty obligations, capitalized mortgage servicing rights, derivative instruments and hedging relationships, and the disclosure of contingent assets and liabilities. Actual results may vary from these estimates. | |||||||||||||
Comprehensive Income | ' | ||||||||||||
Comprehensive Income—For the years ended December 31, 2013, 2012, and 2011, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. | |||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||
Cash and Cash Equivalents—The term cash and cash equivalents, as used in the accompanying consolidated financial statements, includes currency on hand, demand deposits with financial institutions, and short-term, highly liquid investments purchased with a maturity of three months or less. The Company had no cash equivalents as of December 31, 2013 and 2012. | |||||||||||||
Restricted Cash | ' | ||||||||||||
Restricted Cash—Restricted cash primarily represents good faith deposits. The composition of restricted cash at December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Good faith customer deposits | $ | 5,253 | $ | 6,990 | |||||||||
Sublease Deposits | 56 | 45 | |||||||||||
Employee flex deposits | 118 | 95 | |||||||||||
$ | 5,427 | $ | 7,130 | ||||||||||
Pledged Securities and Cash | ' | ||||||||||||
Pledged Securities and Cash—As security for its GSE risk-sharing obligations (Notes 6 and 10), certain securities and cash have been pledged to the benefit of Fannie Mae and Freddie Mac, respectively, to secure the Company’s risk-sharing obligations. The balances for these pledged securities and cash at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
Investment | 2013 | 2012 | Maturity Date | ||||||||||
Fidelity Institutional Money Market Government Portfolio - Class I | $ | 48,496 | $ | 32,326 | — | ||||||||
Pledged cash | 1,155 | 1,155 | — | ||||||||||
$ | 49,651 | $ | 33,481 | ||||||||||
The pledged securities as of December 31, 2013 consist of a highly liquid investment valued using quoted market prices from recent trades. | |||||||||||||
Servicing Fees and Other Receivables, Net | ' | ||||||||||||
Servicing Fees and Other Receivables, net—Servicing fees and accounts receivable, net represents amounts currently due to the Company pursuant to contractual servicing agreements, investor good faith deposits held in escrow by others, general accounts receivable, and advances of principal and interest payments and tax and insurance escrow amounts up to 5% of the unpaid principal balance of a loan if the borrower is delinquent in making loan payments, to the extent such amounts are determined to be reimbursable and recoverable. These advances may be used to offset any losses incurred under the Company’s risk-sharing obligation with Fannie Mae. | |||||||||||||
Concentrations of Credit Risk | ' | ||||||||||||
Concentrations of Credit Risk—Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, loans held for sale, and derivative financial instruments. | |||||||||||||
The Company places the cash and temporary investments with high-credit-quality financial institutions and believes no significant credit risk exists. The counterparties to the loans held for sale and funding commitments are owners of residential multifamily properties located throughout the United States. Mortgage loans are generally transferred or sold within 60 days from the date that a mortgage loan is funded. There is no material counterparty risk with respect to the Company’s funding commitments as each potential borrower must make a non-refundable good faith deposit when the funding commitment is executed. The counterparty to the forward sale is generally an investment bank. There is a risk that the purchase price agreed to by the investor will be reduced in the event of a late delivery. The risk for non-delivery of a loan primarily results from the risk that a borrower does not close on the funding commitment in a timely manner. This risk is generally a risk mitigated by the non-refundable good faith deposit. | |||||||||||||
Business Combinations and Goodwill | ' | ||||||||||||
Business Combinations and Goodwill —The Company accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date. The Company recognizes identifiable assets acquired and liabilities (both specific and contingent) assumed at their fair values at the acquisition date. Furthermore, acquisition-related costs, such as due diligence, legal and accounting fees, are not capitalized or applied in determining the fair value of the acquired assets. The excess of the purchase price over the assets acquired, identifiable intangible assets and liabilities assumed is recognized as goodwill. During the measurement period, the Company records adjustments to the assets acquired and liabilities assumed with corresponding adjustment to goodwill. After the measurement period, which could be up to one year after the transaction date, subsequent adjustments are recorded to the Company’s consolidated statement of operations. | |||||||||||||
The Company does not amortize goodwill; instead, it evaluates goodwill for impairment annually. In addition to the annual impairment evaluation, the Company evaluates at least quarterly whether events or circumstances have occurred in the period subsequent to the annual impairment testing which indicate that it is more likely than not an impairment loss has occurred. We currently have only one reporting unit; therefore, all goodwill is allocated to that one reporting unit. The Company performed its annual impairment testing as of October 1, 2013. Our annual impairment analysis begins with comparing our market capitalization to our net assets. If the market capitalization exceeds the net asset value, further analysis is not required, and goodwill is not considered impaired. As of October 1, 2013, our market capitalization exceeded our net asset value by $60 million, or 15%. As of December 31, 2013, there have been no events subsequent to that analysis that are indicative of an impairment loss. | |||||||||||||
Derivative Assets and Liabilities | ' | ||||||||||||
Derivative Assets and Liabilities—Certain loan commitments and forward sales commitments meet the definition of a derivative and are recorded at fair value in the consolidated balance sheets. The estimated fair value of loan commitments includes the value of loan origination fees and premiums on anticipated sale of the loan, net of co-broker fees, and the fair value of the expected net cash flows associated with the servicing of the loan, net of any estimated net future cash flows associated with the risk-sharing obligation. The estimated fair value of forward sale commitments includes the effects of interest rate movements between the trade date and balance sheet date. Adjustments to fair value are reflected as a component of income. | |||||||||||||
Loans Held for Sale | ' | ||||||||||||
Loans Held for Sale—Loans held for sale represent originated loans that are generally transferred or sold within 60 days from the date that a mortgage loan is funded. The Company initially measures all originated loans at fair value. Subsequent to initial measurement, the Company measures all mortgage loans at fair value, unless the Company documents at the time the loan is originated that it will measure the specific loan at the lower of cost or fair value for the life of the loan. Electing to use fair value allows a better offset of the change in fair value of the loan and the change in fair value of the derivative instruments used as economic hedges. During the period prior to its sale, interest income on a loan held for sale is calculated in accordance with the terms of the individual loan. There were no loans held for sale that were valued at the lower of cost or market or on a non-accrual status at December 31, 2013 and December 31, 2012. | |||||||||||||
Loans Held for Investment, Net | ' | ||||||||||||
Loans Held for Investment, net—Loans held for investment are multifamily interim loans originated by the Company through the Program for properties that currently do not qualify for permanent GSE or HUD financing. These loans typically have a maximum term of two years and original principal balances of $30.0 million or less. The loans are carried at their unpaid principal balances, adjusted for net unamortized loan fees and costs, and net of any allowance for loan losses. Interest income is accrued based on the actual coupon rate and is recognized as revenue when earned and deemed collectible. All loans held for investment are multifamily loans with similar risk characteristics. | |||||||||||||
The Company uses the interest method to determine an effective yield to amortize the loan fees and costs on real estate loans held for investment. All loans held for investment are floating-rate loans; therefore, the Company uses the initial coupon interest rate of the loans (without regard to future changes in the underlying indices) and anticipated principal payments, if any, to determine periodic amortization. As of December 31, 2013, the Loans held for investment, net balance consists of $135.6 million of unpaid principal balance, $0.5 million of net unamortized deferred fees and costs, and $0.4 million of allowance for loan losses. | |||||||||||||
The Company will reclassify loans held-for-investment as loans held-for-sale if it determines that the loans will be sold or transferred to third parties. | |||||||||||||
The allowance for loan losses is the Company’s estimate of credit losses inherent in the loan portfolio at the balance sheet date. The Company has established a process to determine the appropriateness of the allowance for loan losses that assesses the losses inherent in our portfolio, including monitoring the financial condition of the borrower and the financial trends of the underlying property for each of its loans held for investment to assess the credit quality of the loan. The allowance levels are influenced by loan volumes, delinquency status, historic loss experience, and other conditions influencing loss expectations, such as economic conditions. The allowance for loan losses is estimated collectively for loans with similar characteristics. The allowance for loans losses recorded as of December 31, 2013 is based on the Company’s collective assessment of the portfolio. No allowance for loan losses was necessary as of December 31, 2012. | |||||||||||||
Loans are placed on non-accrual status when collection of interest and principal is not probable. Loans held for investment are considered past due when contractually required principal or interest payments have not been made on the due dates and are charged off when the loan is considered uncollectible. The Company evaluates all loans held for investment for impairment. A loan is considered impaired when the Company believes that the facts and circumstances of the loan suggest that the Company will not be able to collect all contractually due principal and interest. Delinquency status and borrower financial condition are key components of the Company’s consideration of impairment status. | |||||||||||||
None of the loans held for investment was delinquent, impaired, or on non-accrual status as of December 31, 2013 or December 31, 2012. Additionally, we have not experienced any losses or delinquencies related to these loans or charged off any loan held for investment since the inception of the Program. | |||||||||||||
Guaranty Obligation and Allowance for Risk-Sharing Obligations | ' | ||||||||||||
Guaranty Obligation and Allowance for Risk-sharing Obligations—When a loan is sold under the Fannie Mae DUS program, the Company undertakes an obligation to partially guarantee the performance of the loan. At inception, a liability for the fair value of the obligation undertaken in issuing the guaranty is recognized. The fair value includes the Company’s obligation to stand ready to perform over the term of the guaranty (the non-contingent guaranty), and the Company’s obligation to make future payments should those triggering events or conditions occur (contingent guaranty). | |||||||||||||
Historically the contingent guaranty recognized at inception has been de minimis. In determining the fair value of the guaranty obligation, the Company considered the risk profile of the collateral, historical loss experience, and various market indicators. Generally, the estimated fair value of the guaranty obligation is based on the present value of the cash flows expected to be paid under the guaranty over the estimated life of the loan (historically three to five basis points per year) discounted using a 12-15 percent discount rate. The discount rate and estimated life used are consistent with those used for the calculation of the MSR for each loan. | |||||||||||||
Subsequent to the initial measurement date, the liability is amortized over the life of the guaranty period using the straight-line method. The Company evaluates the allowance for risk-sharing obligations by monitoring the performance of each loan for events or conditions which may signal a potential default. Historically, initial loss recognition occurs at or before a loan becomes 60 days delinquent. In instances where payment under the guaranty on a specific loan is determined to be probable and estimable, the Company would record a liability for the estimated allowance for risk-sharing through a charge to the provision for risk-sharing obligations, along with a write-off of the associated loan-specific MSR. The amount of the allowance considers the Company’s assessment of the likelihood of repayment by the borrower or key principal(s), the risk characteristics of the loan, the loan’s risk rating, historical loss experience, adverse situations affecting individual loans, the estimated disposition value of the underlying collateral, and the level of risk sharing. We regularly monitor the allowance for risk-sharing obligations on all applicable loans and update loss estimates as current information is received. | |||||||||||||
Gains from Mortgage Banking Activities | ' | ||||||||||||
Gains from Mortgage Banking Activities—Mortgage banking activity income is recognized when the Company records a derivative asset upon the commitment to originate a loan with a borrower and sell the loan to an investor. This commitment asset is recognized at fair value, which reflects the fair value of the contractual loan origination related fees and sale premiums, net of co-broker fees, and the estimated fair value of the expected net cash flows associated with the servicing of the loan net of the estimated net future cash flows associated with any risk-sharing obligations. Loan transactions in a brokerage capacity tend to have lower origination fees because they often require less time to execute, there is more competition for brokerage assignments and because the borrower will also have to pay an origination fee to the ultimate institutional lender. Also included in gains from mortgage banking activities are changes to the fair value of loan commitments, forward sale commitments, and loans held for sale that occur during their respective holding periods. Upon sale of the loans, no gains or losses are recognized as such loans are recorded at fair value during their holding periods. Mortgage servicing rights (“MSRs”) and guaranty obligations are recognized as assets or liabilities, respectively, upon the sale of the loans. | |||||||||||||
The co-broker fees for the years ended December 31, 2013, 2012, and 2011 were $23.0 million, $28.8 million and $22.9 million, respectively. | |||||||||||||
Transfer of financial assets is reported as a sale when (a) the transferor surrenders control over those assets, (b) the transferred financial assets have been legally isolated from the Company’s creditors, (c) the transferred assets can be pledged or exchanged by the transferee, and (d) consideration other than beneficial interests in the transferred assets is received in exchange. The transferor is considered to have surrendered control over transferred assets if, and only if, certain conditions are met. The Company has determined that all loans sold have met these specific conditions and accounts for all transfers of mortgage loans and mortgage participations as completed sales. | |||||||||||||
When a mortgage loan is sold, the Company retains the right to service the loan and initially recognizes the mortgage servicing right (“MSR”) at fair value. Subsequent to the initial measurement date, mortgage servicing assets are amortized using the interest method. | |||||||||||||
Amortization and Depreciation | ' | ||||||||||||
Amortization and Depreciation—Amortization expense principally relates to mortgage servicing rights (Note 5), which are amortized using the interest method over the period that servicing income is expected to be received. | |||||||||||||
Deferred Bonuses | ' | ||||||||||||
Deferred Bonuses—Certain members of senior management are eligible to receive bonus compensation if certain financial performance targets are met over specified annual and multi-year periods and they are employed at the end of those respective periods. Compensation expense is recognized ratably over the vesting period. If the officer ceases to be employed by the Company, the accrued liability is reduced to zero and recorded as a reduction of current year compensation expense. | |||||||||||||
Share-Based Payment | ' | ||||||||||||
Share-Based Payment—The Company recognizes compensation costs for all share-based payment awards made to employees and directors, including restricted stock, employee stock options and other forms of equity compensation based on the grant date fair value. | |||||||||||||
Under the Walker & Dunlop, Inc. 2010 Equity Incentive Plan (the “2010 Equity Incentive Plan”), as amended, the Company granted restricted stock, unrestricted stock and stock option awards. Restricted stock awards were granted without cost to the Company’s officers, employees and non-employee directors, for which the fair value of the award was calculated as the difference between the market value of the Company’s common stock on the date of grant and the purchase price to be paid by the grantee. The Company’s stock option and restricted stock awards for its officers and employees vest, predicated on continued employment, satisfaction of performance conditions, or a combination of both. Restricted stock awards for non-employee directors fully vest after one year. | |||||||||||||
Stock option awards were granted to officers and certain other employees, with an exercise price equal to the closing price of the Company’s common stock on the date of the grant, and were granted for a ten-year term, vesting ratably over three years dependent solely on continued employment. To estimate the grant-date fair value of stock options, the Company uses the Black-Scholes pricing model. The Black-Scholes model estimates the per share fair value of an option on its date of grant based on the following inputs: the option’s exercise price, the price of the underlying stock on the date of the grant, the estimated option term, the estimated dividend yield, a “risk-free” interest rate and the expected volatility. The Company uses an estimated dividend yield of zero as the Company has not historically issued dividends and does not expect to issue dividends in the future. For the “risk-free” rate, the Company uses a U.S. Treasury strip due in a number of years equal to the option’s expected term. To determine the expected volatility, the Company has historically calculated the volatility of the common stock price of a group of peer companies, as the Company had insufficient historical data for its common stock to develop an expectation of volatility over the expected term of the options granted solely based on the historical volatility of its own common stock. For stock option awards granted in 2013, the Company used a blended volatility rate based on the historical volatility of its own common stock and common stock of a group of peer companies. The Company issues new shares from the pool of authorized but not yet issued shares when an employee exercises stock options. | |||||||||||||
Compensation expense is adjusted for estimated forfeitures and is recognized on a straight-line basis, for the entire award, over the requisite service period of the award. Forfeiture assumptions are evaluated frequently and updated as necessary. Compensation is recognized within the income statement as Personnel expense, the same expense line as the cash compensation paid to the respective employees. | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes— The Company files income tax returns in the applicable U.S. federal, state and local jurisdictions and generally is subject to examination by the respective jurisdictions for three years from the filing of a tax return. The Company accounts for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. | |||||||||||||
Deferred tax assets are recognized only to the extent that it is more likely than not that they will be realizable based on consideration of available evidence, including future reversals of existing taxable temporary differences, projected future taxable income and tax planning strategies. | |||||||||||||
The Company had no accruals for tax uncertainties as of December 31, 2013 and 2012. | |||||||||||||
Net Warehouse Interest Income | ' | ||||||||||||
Net Warehouse Interest Income— The Company presents warehouse interest income net of warehouse interest expense. Warehouse interest income is the interest earned from loans that are held for sale and those held for investment. Substantially all loans that are held for sale are financed with matched borrowings under our warehouse facilities incurred to fund a specific loan held for sale. Warehouse interest expense is incurred on borrowings used to fund loans solely while they are held for sale or for investment. Warehouse interest income and expense are earned or incurred on loans held for sale after a loan is closed and before a loan is sold. Warehouse interest income and expense are earned or incurred on loans held for investment after a loan is closed and before a loan is repaid. Included in net warehouse interest income for the three years ended December 31, 2013, 2012 and 2011 are the following components (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warehouse interest income - loans held for sale | $ | 17,576 | $ | 16,562 | $ | 10,198 | |||||||
Warehouse interest income - loans held for investment | 3,583 | 799 | — | ||||||||||
Warehouse interest expense - loans held for sale | (11,362 | ) | (12,201 | ) | (5,951 | ) | |||||||
Warehouse interest expense - loans held for investment | (2,352 | ) | (492 | ) | (49 | ) | |||||||
Warehouse interest income, net | $ | 7,445 | $ | 4,668 | $ | 4,198 | |||||||
Recently Issued Accounting Pronouncements | ' | ||||||||||||
Recently Issued Accounting Pronouncements—There were no accounting pronouncements issued during 2013 or 2014 that have the potential to impact the Company. All other recently issued accounting pronouncements and their expected impact to the Company have been disclosed previously. | |||||||||||||
Reclassifications | ' | ||||||||||||
Reclassifications—The Company has made certain immaterial reclassifications to prior-year balances to conform to current-year presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Schedule of Restricted Cash | ' | ||||||||||||
The composition of restricted cash at December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Good faith customer deposits | $ | 5,253 | $ | 6,990 | |||||||||
Sublease Deposits | 56 | 45 | |||||||||||
Employee flex deposits | 118 | 95 | |||||||||||
$ | 5,427 | $ | 7,130 | ||||||||||
Schedule of Pledged Securities and Cash Balances | ' | ||||||||||||
The balances for these pledged securities and cash at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
Investment | 2013 | 2012 | Maturity Date | ||||||||||
Fidelity Institutional Money Market Government | |||||||||||||
Portfolio—Class I | $ | 48,496 | $ | 32,326 | — | ||||||||
Pledged cash | 1,155 | 1,155 | — | ||||||||||
$ | 49,651 | $ | 33,481 | ||||||||||
Schedule of Net Warehouse Interest Income | ' | ||||||||||||
Included in net warehouse interest income for the three years ended December 31, 2013, 2012 and 2011 are the following components (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Warehouse interest income—loans held for sale | $ | 17,576 | $ | 16,562 | $ | 10,198 | |||||||
Warehouse interest income—loans held for investment | 3,583 | 799 | — | ||||||||||
Warehouse interest expense—loans held for sale | (11,362 | ) | (12,201 | ) | (5,951 | ) | |||||||
Warehouse interest expense—loans held for investment | (2,352 | ) | (492 | ) | (49 | ) | |||||||
Warehouse interest income, net | $ | 7,445 | $ | 4,668 | $ | 4,198 | |||||||
Acquisitions_and_Goodwill_and_1
Acquisitions and Goodwill, and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Goodwill Activity | ' | ||||||||||||||||||||||||
The following summarizes the Company’s goodwill activity for the years ended December 31, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
As of and for the year ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Beginning balance | $ | 59,735 | $ | — | |||||||||||||||||||||
CWCapital acquisition, as initially recorded | — | 53,401 | |||||||||||||||||||||||
Retrospective adjustments | 477 | 6,334 | |||||||||||||||||||||||
Impairment | — | — | |||||||||||||||||||||||
Ending balance | $ | 60,212 | $ | 59,735 | |||||||||||||||||||||
Schedule of Other Intangible Assets Related to Acquisition | ' | ||||||||||||||||||||||||
The following summarizes the Company’s other intangible assets, including those related to acquisition activity, as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||
Gross | Accumulated | Net carrying | Gross | Accumulated | Net carrying | ||||||||||||||||||||
carrying | Amortization | value | carrying | Amortization | value | ||||||||||||||||||||
value | value | ||||||||||||||||||||||||
Mortgage pipeline intangible asset | $ | 18,700 | $ | (18,191 | ) | $ | 509 | $ | 18,700 | $ | (15,182 | ) | $ | 3,518 | |||||||||||
Acquired mortgage servicing rights | 124,629 | (34,779 | ) | 89,850 | 124,629 | (8,503 | ) | 116,126 | |||||||||||||||||
Originated mortgage servicing rights | 364,824 | (101,650 | ) | 263,174 | 277,328 | (77,930 | ) | 199,398 | |||||||||||||||||
Total | $ | 508,153 | $ | (154,620 | ) | $ | 353,533 | $ | 420,657 | $ | (101,615 | ) | $ | 319,042 | |||||||||||
Gains_from_Mortgage_Banking_Ac1
Gains from Mortgage Banking Activities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Text Block [Abstract] | ' | ||||||||||||
Schedule of Gains from Mortgage Banking Activities | ' | ||||||||||||
Gains from mortgage banking activities consist of the following activity for each of the years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Contractual loan origination related fees, net | $ | 111,699 | $ | 93,949 | $ | 48,411 | |||||||
Fair value of expected net future cash flows from servicing recognized at commitment | 97,115 | 98,308 | 57,560 | ||||||||||
Fair value of expected guaranty obligation | (5,143 | ) | (5,714 | ) | (3,259 | ) | |||||||
Total gains from mortgage banking activities | $ | 203,671 | $ | 186,543 | $ | 102,712 | |||||||
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Transfers And Servicing [Abstract] | ' | ||||||||||||
Schedule of Activity Related to Capitalized MSRs | ' | ||||||||||||
Activity related to capitalized MSRs for each of the years ended December 31, 2013 and 2012 was as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 315,524 | $ | 137,079 | |||||||||
Additions, following sale of loan | 112,464 | 94,008 | |||||||||||
Additions, CWCapital acquisition | — | 124,629 | |||||||||||
Amortization | (64,443 | ) | (37,019 | ) | |||||||||
Prepayments and write-offs | (10,521 | ) | (3,173 | ) | |||||||||
Ending balance | $ | 353,024 | $ | 315,524 | |||||||||
Schedule of Expected Amortization of MSR | ' | ||||||||||||
The expected amortization of MSR balances recorded, as of December 31, 2013, is shown in the table below (in thousands). Actual amortization may vary from these estimates. | |||||||||||||
Originated MSRs | Acquired MSRs | Total MSRs | |||||||||||
Year Ending December 31, | Amortization | Amortization | Amortization | ||||||||||
2014 | $ | 45,746 | $ | 18,366 | $ | 64,112 | |||||||
2015 | 40,672 | 17,013 | 57,685 | ||||||||||
2016 | 37,628 | 15,758 | 53,386 | ||||||||||
2017 | 34,532 | 13,942 | 48,474 | ||||||||||
2018 | 30,117 | 10,118 | 40,235 | ||||||||||
Thereafter | 74,479 | 14,653 | 89,132 | ||||||||||
Total | $ | 263,174 | $ | 89,850 | $ | 353,024 | |||||||
Guaranty_Obligation_and_Allowa1
Guaranty Obligation and Allowance for Risk-Sharing Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Summary of Guaranty Obligation | ' | ||||||||
A summary of the Company’s guaranty obligation for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 21,155 | $ | 9,921 | |||||
Guaranty obligation recognized, following the sale of the loan | 6,136 | 5,718 | |||||||
Guaranty obligation assumed, CWCapital acquisition | — | 8,254 | |||||||
Amortization of guaranty obligation | (3,802 | ) | (2,738 | ) | |||||
Ending balance | $ | 23,489 | $ | 21,155 | |||||
Summary of Allowance for Risk-sharing Obligations | ' | ||||||||
A summary of the Company’s allowance for risk-sharing obligations for the contingent portion of the guaranty obligation for each of the years ended December 31, 2013 and 2012 was as follows (in thousands): | |||||||||
For the year ended December 31, | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 15,670 | $ | 14,917 | |||||
Provision for risk-sharing obligations | 881 | 3,140 | |||||||
Allowance for risk-sharing obligations assumed, CWCapital acquisition | — | 4,063 | |||||||
Write offs | (9,188 | ) | (6,450 | ) | |||||
Ending balance | $ | 7,363 | $ | 15,670 | |||||
Servicing_Tables
Servicing (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Text Block [Abstract] | ' | ||||||||
Schedule of Total Unpaid Principal Balance of Loans that the Company was Servicing for Various Institutional Investors | ' | ||||||||
The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows at December 31, 2013 and 2012 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Unpaid principal balance of loans (1) | $ | 38,937,027 | $ | 35,169,999 | |||||
-1 | The 2012 balance reflects the addition of $14.5 billion (unpaid principal balance) of loan servicing obtained through the Acquisition. |
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of Debt Obligations | ' | ||||||||||
Notes Payable—Borrowings for notes payable at December 31, 2013 and 2012, are as follows (in thousands, unless otherwise noted): | |||||||||||
December 31, | |||||||||||
Lender | 2013 | 2012 | Interest rate and repayments | ||||||||
Term Loan—$175.0 million term loan due December 20, 2020 | $ | 173,258 | $ | — | Interest rate varies—see below for further details; quarterly principal payments of $437.5 | ||||||
Prior Loan—$83.0 million note due August 31, 2017 | — | 80,925 | Average 30-day LIBOR plus 3.75% monthly interest, quarterly principal payments of $2,075.0 | ||||||||
Total | $ | 173,258 | $ | 80,925 | |||||||
Schedule of Consolidated Corporate Leverage Ratio | ' | ||||||||||
As of the last day of any fiscal quarter ending during the periods specified below, permit the Consolidated Corporate Leverage Ratio (as defined in the Term Loan Agreement) to be greater than the corresponding ratio set forth below: | |||||||||||
Period | Maximum Ratio | ||||||||||
Closing Date through December 31, 2014 | 5.00 to 1.00 | ||||||||||
January 1, 2015 through December 31, 2015 | 4.75 to 1.00 | ||||||||||
January 1, 2016 to December 31, 2016 | 4.50 to 1.00 | ||||||||||
January 1, 2017 and thereafter | 4.25 to 1.00 | ||||||||||
Schedule of Notes Payable Maturities | ' | ||||||||||
Amounts advanced under the warehouse notes payable are included in the current year as the amounts are usually drawn and repaid within 60 days (in thousands): | |||||||||||
Year Ending December 31, | Maturities | ||||||||||
2014 | $ | 317,417 | |||||||||
2015 | 59,310 | ||||||||||
2016 | 1,750 | ||||||||||
2017 | 1,750 | ||||||||||
2018 | 1,750 | ||||||||||
Thereafter | 166,250 | ||||||||||
Total | $ | 548,227 | |||||||||
Warehouse Notes Payable [Member] | ' | ||||||||||
Schedule of Debt Obligations | ' | ||||||||||
The maximum amount and outstanding borrowings under the warehouse notes payable at December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||
December 31, 2013 | |||||||||||
Facility | Maximum | Outstanding | Interest rate | ||||||||
Amount | Balance | ||||||||||
Committed warehouse facility #1 | $ | 575,000 | $ | 119,874 | Average 30-day LIBOR plus 1.50% | ||||||
Committed warehouse facility #2 | 650,000 | 148,843 | Average 30-day LIBOR plus 1.50% | ||||||||
Committed warehouse facility #3 | 57,400 | 45,496 | Average 30-day LIBOR plus 2.00% | ||||||||
Committed warehouse facility #4 | 100,000 | 47,472 | Average 30-day LIBOR plus 2.00% | ||||||||
Fannie Mae Repurchase agreement, uncommited line and open maturity | 500,000 | 11,422 | Average 30-day LIBOR plus 1.15% | ||||||||
Total | $ | 1,882,400 | $ | 373,107 | |||||||
December 31, 2012 | |||||||||||
Facility | Maximum | Outstanding | Interest rate | ||||||||
Amount | Balance | ||||||||||
Committed warehouse facility #1 | $ | 975,000 | $ | 830,749 | Average 30-day LIBOR plus 1.85% | ||||||
Committed warehouse facility #2 | 350,000 | 109,329 | Average 30-day LIBOR plus 1.75% | ||||||||
Committed warehouse facility #3 | 35,000 | 7,125 | Average 30-day LIBOR plus 2.50% | ||||||||
Committed warehouse facility #4 | 50,000 | — | Average 30-day LIBOR plus 2.50% | ||||||||
Fannie Mae Repurchase agreement, uncommited line and open maturity | 500,000 | 137,336 | Average 30-day LIBOR plus 1.15% | ||||||||
Total | $ | 1,910,000 | $ | 1,084,539 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||
The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of December 31, 2013 and 2012, segregated by the level of the valuation inputs within the fair value hierarchy used to measure fair value (in thousands): | |||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Balance as of | ||||||||||||||||||||||||||
Active Markets | Other | Other | Period End | ||||||||||||||||||||||||||
For Identical | Observable | Unobservable | |||||||||||||||||||||||||||
Assets | Inputs | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held for sale | $ | — | $ | 281,477 | $ | — | $ | 281,477 | |||||||||||||||||||||
Pledged securities and cash | 49,651 | — | — | 49,651 | |||||||||||||||||||||||||
Derivative assets | — | — | 19,563 | 19,563 | |||||||||||||||||||||||||
Total | $ | 49,651 | $ | 281,477 | $ | 19,563 | $ | 350,691 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 222 | $ | 222 | |||||||||||||||||||||
Total | $ | — | $ | — | $ | 222 | $ | 222 | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Loans held for sale | $ | — | $ | 1,101,561 | $ | — | $ | 1,101,561 | |||||||||||||||||||||
Pledged securities and cash | 33,481 | — | — | 33,481 | |||||||||||||||||||||||||
Derivative assets | — | — | 21,258 | 21,258 | |||||||||||||||||||||||||
Total | $ | 33,481 | $ | 1,101,561 | $ | 21,258 | $ | 1,156,300 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | — | $ | 867 | $ | 867 | |||||||||||||||||||||
Total | $ | — | $ | — | $ | 867 | $ | 867 | |||||||||||||||||||||
Schedule of Roll Forward of Derivative Instruments Which Require Valuations Based upon Significant Unobservable Inputs | ' | ||||||||||||||||||||||||||||
A roll forward of derivative instruments which require valuations based upon significant unobservable inputs, is presented below (in thousands): | |||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
Using Significant | |||||||||||||||||||||||||||||
Unobservable Inputs: | |||||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Derivative assets and liabilities, net | |||||||||||||||||||||||||||||
Beginning balance, December 31, 2012 | $ | 20,391 | |||||||||||||||||||||||||||
Settlements | (204,721 | ) | |||||||||||||||||||||||||||
Realized gains (losses) recorded in earnings (1) | 184,330 | ||||||||||||||||||||||||||||
Unrealized gains (losses) recorded in earnings (1) | 19,341 | ||||||||||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 19,341 | |||||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||
Derivative assets and liabilities, net | |||||||||||||||||||||||||||||
Beginning balance, December 31, 2011 | $ | 5,415 | |||||||||||||||||||||||||||
Settlements | (171,567 | ) | |||||||||||||||||||||||||||
Realized gains (losses) recorded in earnings (1) | 166,152 | ||||||||||||||||||||||||||||
Unrealized gains (losses) recorded in earnings (1) | 20,391 | ||||||||||||||||||||||||||||
Ending balance, December 31, 2012 | $ | 20,391 | |||||||||||||||||||||||||||
-1 | Realized and unrealized gains (losses) from derivatives are recognized in the Gains from mortgage banking activities line item in the Consolidated Statements of Income. | ||||||||||||||||||||||||||||
Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities | ' | ||||||||||||||||||||||||||||
The following table presents information about significant unobservable inputs used in the measurement of the fair value of the Company’s Level 3 assets and liabilities (in thousands): | |||||||||||||||||||||||||||||
Quantitative Information about Level 3 Measurements | |||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Input Value (1) | ||||||||||||||||||||||||||
Technique | Input (1) | ||||||||||||||||||||||||||||
Derivative assets | $ | 19,563 | Discounted | Counterparty | — | ||||||||||||||||||||||||
cash flow | credit risk | ||||||||||||||||||||||||||||
Derivative liabilities | 222 | Discounted | Counterparty | — | |||||||||||||||||||||||||
cash flow | credit risk | ||||||||||||||||||||||||||||
-1 | Significant increases (decreases) in this input may lead to significantly lower (higher) fair value measurements. | ||||||||||||||||||||||||||||
Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments | ' | ||||||||||||||||||||||||||||
The carrying amounts and the fair values of the Company’s financial instruments as of December 31, 2013 and 2012 are presented below (in thousands): | |||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | ||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||
Financial Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 170,563 | $ | 170,563 | $ | 65,027 | $ | 65,027 | |||||||||||||||||||||
Restricted cash | 5,427 | 5,427 | 7,130 | 7,130 | |||||||||||||||||||||||||
Pledged securities and cash | 49,651 | 49,651 | 33,481 | 33,481 | |||||||||||||||||||||||||
Loans held for sale | 281,477 | 281,477 | 1,101,561 | 1,101,561 | |||||||||||||||||||||||||
Loans held for investment, net | 134,656 | 135,620 | 9,468 | 9,500 | |||||||||||||||||||||||||
Derivative assets | 19,563 | 19,563 | 21,258 | 21,258 | |||||||||||||||||||||||||
Total financial assets | $ | 661,337 | $ | 662,301 | $ | 1,237,925 | $ | 1,237,957 | |||||||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||||||||||
Derivative liabilities | $ | 222 | $ | 222 | $ | 867 | $ | 867 | |||||||||||||||||||||
Warehouse notes payable | 373,107 | 373,107 | 1,084,539 | 1,084,539 | |||||||||||||||||||||||||
Notes payable | 173,258 | 173,258 | 80,925 | 80,925 | |||||||||||||||||||||||||
Total financial liabilities | $ | 546,587 | $ | 546,587 | $ | 1,166,331 | $ | 1,166,331 | |||||||||||||||||||||
Schedule of Fair Value of Derivative Instruments and Loans Held for Sale | ' | ||||||||||||||||||||||||||||
Fair Value Adjustment Components | Balance Sheet Location | ||||||||||||||||||||||||||||
In thousands | Notional or | Assumed | Interest Rate | Total | Derivative | Derivative | Fair Value | ||||||||||||||||||||||
Principal | Gain (Loss) | Movement | Fair Value | Contract | Contract | Adjustment | |||||||||||||||||||||||
Amount | on Sale | Effect | Adjustment | Assets | Liabilities | To Loans | |||||||||||||||||||||||
Held for Sale | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
Rate lock commitments | $ | 235,616 | $ | 12,331 | $ | (6,253 | ) | $ | 6,078 | $ | 6,299 | $ | (221 | ) | $ | — | |||||||||||||
Forward sale contracts | 515,755 | — | 13,263 | 13,263 | 13,264 | (1 | ) | — | |||||||||||||||||||||
Loans held for sale | 280,139 | 8,348 | (7,010 | ) | 1,338 | — | — | 1,338 | |||||||||||||||||||||
Total | $ | 20,679 | $ | — | $ | 20,679 | $ | 19,563 | $ | (222 | ) | $ | 1,338 | ||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
Rate lock commitments | $ | 302,373 | $ | 11,953 | $ | (1,194 | ) | $ | 10,759 | $ | 10,759 | $ | — | $ | — | ||||||||||||||
Forward sale contracts | 1,380,235 | — | 9,756 | 9,756 | 10,499 | (867 | ) | — | |||||||||||||||||||||
Loans held for sale | 1,077,862 | 32,261 | (8,562 | ) | 23,699 | — | — | 23,699 | |||||||||||||||||||||
Total | $ | 44,214 | $ | — | $ | 44,214 | $ | 21,258 | $ | (867 | ) | $ | 23,699 | ||||||||||||||||
Litigation_Commitments_and_Con1
Litigation, Commitments, and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments | ' | ||||
Minimum cash basis operating lease commitments are as follows (in thousands): | |||||
Year ending December 31, | |||||
2014 | $ | 4,367 | |||
2015 | 4,163 | ||||
2016 | 3,504 | ||||
2017 | 3,077 | ||||
2018 | 2,861 | ||||
Thereafter | 13,491 | ||||
Total | $ | 31,463 | |||
ShareBased_Payment_Tables
Share-Based Payment (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Equity Compensation | ' | ||||||||||||||||
The following table provides additional information regarding the Company’s share-based payment plan for the year ended December 31, 2013 (dollars in thousands, except per share amounts): | |||||||||||||||||
Options / | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contract | ||||||||||||||||
Life | |||||||||||||||||
(Years) | |||||||||||||||||
Restricted Shares | |||||||||||||||||
Nonvested at beginning of period | 1,048,346 | ||||||||||||||||
Granted | 418,757 | ||||||||||||||||
Vested | (518,691 | ) | |||||||||||||||
Forfeited | (151,221 | ) | |||||||||||||||
Nonvested at end of period | 797,191 | $ | 12,891 | ||||||||||||||
Stock Options | |||||||||||||||||
Outstanding at beginning of period | 502,968 | ||||||||||||||||
Granted | 336,459 | ||||||||||||||||
Exercised | (74,425 | ) | |||||||||||||||
Forfeited | (6,666 | ) | |||||||||||||||
Expired | — | ||||||||||||||||
Outstanding at end of period | 758,336 | $ | 15.13 | 8.5 | $ | 787 | |||||||||||
Exercisable at end of period | 186,832 | $ | 12.71 | 7.6 | $ | 646 | |||||||||||
Schedule of Stock Options Valuation Assumptions | ' | ||||||||||||||||
The fair value of stock option awards granted during 2013 and 2012 were estimated on the grant date using the Black-Scholes option pricing model, based on the following inputs: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Estimated option life | 6.00 years | 6.00 years | |||||||||||||||
Risk free interest rate | 1.01 | % | 1.09 | % | |||||||||||||
Expected volatility | 33.58 | % | 45.76 | % | |||||||||||||
Expected dividend rate | 0 | % | 0 | % | |||||||||||||
Weighted average grant date fair value per share of options granted | $ | 6.13 | $ | 5.79 | |||||||||||||
Schedule of Fair Values of the Restricted Stock that Vested | ' | ||||||||||||||||
The fair values of the restricted shares and stock options that vested during the years ended December 31, 2013, 2012, and 2011 (in thousands) were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Restricted Shares | $ | 9,076 | $ | 3,327 | $ | 1,939 | |||||||||||
Stock Options | 3,489 | 897 | — | ||||||||||||||
Total | $ | 12,565 | $ | 4,224 | $ | 1,939 | |||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Weighted Average Shares and Share Equivalents that are Used to Calculate Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following weighted average shares and share equivalents are used to calculate basic and diluted earnings per share for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average number of shares outstanding used to calculate basic earnings per share | 33,764,233 | 25,545,028 | 21,621,534 | ||||||||||
Dilutive securities: | |||||||||||||
Stock options and restricted shares | 571,681 | 299,987 | 126,138 | ||||||||||
Weighted average number of shares and share equivalentsoutstanding used to calculated diluted earnings per share | 34,335,914 | 25,845,015 | 21,747,672 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Summary of the Entity's Provision for Income Taxes | ' | ||||||||||||
The following is a summary of our provision for income taxes (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal | $ | 5,144 | $ | 4,332 | $ | 10,434 | |||||||
State | 645 | 1,136 | 1,697 | ||||||||||
Total | $ | 5,789 | $ | 5,468 | $ | 12,131 | |||||||
Deferred | |||||||||||||
Federal | $ | 15,868 | $ | 14,068 | $ | 8,406 | |||||||
State | 2,343 | 2,218 | 1,117 | ||||||||||
Total | $ | 18,211 | $ | 16,286 | $ | 9,523 | |||||||
Items charged or credited directly to stockholders’ equity | |||||||||||||
Federal | $ | 1,091 | $ | 206 | $ | 123 | |||||||
State | 166 | 38 | 20 | ||||||||||
Total | $ | 1,257 | $ | 244 | $ | 143 | |||||||
Income tax provision | $ | 25,257 | $ | 21,998 | $ | 21,797 | |||||||
Schedule of Reconciliation of the Statutory Federal Tax Provision to Income Tax Provision | ' | ||||||||||||
A reconciliation of the statutory federal tax provision to our income tax provision in the accompanying statements of income is as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal provision (35%) | $ | 23,376 | $ | 19,520 | $ | 19,831 | |||||||
Statutory state income tax provision, net of federal tax benefit | 2,195 | 2,174 | 1,983 | ||||||||||
Other | (314 | ) | 304 | (17 | ) | ||||||||
Income tax expense | $ | 25,257 | $ | 21,998 | $ | 21,797 | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
The tax effects of temporary differences between reported earnings and taxable earnings consisted of the following (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets: | |||||||||||||
Compensation related | $ | 5,002 | $ | 7,665 | |||||||||
Credit losses | 2,789 | 4,470 | |||||||||||
Acquisition related (1) | 6,635 | 7,979 | |||||||||||
Other | 1,050 | 943 | |||||||||||
Total deferred tax assets | $ | 15,476 | $ | 21,057 | |||||||||
Deferred Tax Liabilities: | |||||||||||||
Mark-to-market of derivatives and loans held for sale | $ | (6,157 | ) | $ | (11,606 | ) | |||||||
Mortgage servicing rights related | (81,189 | ) | (63,584 | ) | |||||||||
Depreciation | (2,376 | ) | (1,902 | ) | |||||||||
Total deferred tax liabilities | $ | (89,722 | ) | $ | (77,092 | ) | |||||||
Deferred tax liabilities, net | $ | (74,246 | ) | $ | (56,035 | ) | |||||||
-1 | Acquisition-related deferred tax assets consist of book-to-tax differences associated with basis step ups related to the amortization of goodwill recorded from the Acquisition and an acquisition made by one of the Company’s predecessor entities, acquisition-related costs capitalized for tax purposes, and book-to-tax differences in intangible asset amortization. |
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of Principal Balance of the Loans Serviced for Others, by Investor | ' | ||||||||||||
The principal balance of the loans serviced for others, by investor, for the years ended December 31, 2013, 2012 and 2011 was as follows (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Fannie Mae | $ | 19,352,880 | $ | 18,854,611 | $ | 10,379,426 | |||||||
Freddie Mac | 10,271,732 | 9,114,221 | 3,189,565 | ||||||||||
Ginnie Mae-HUD | 5,044,193 | 4,642,380 | 1,359,166 | ||||||||||
Life insurance companies and other | 4,268,222 | 2,558,787 | 1,850,128 | ||||||||||
Total | $ | 38,937,027 | $ | 35,169,999 | $ | 16,778,285 | |||||||
Schedule of the Percentage of Unpaid Principal Balance of Loans Serviced for Others by Geographical Area | ' | ||||||||||||
The percentage of unpaid principal balance of the loans serviced for others as of December 31, 2013, 2012 and 2011 by geographical area, is as shown in the following table. No other state accounted for more than 5% unpaid principal balance and related servicing revenues in any of the three fiscal years presented. The Company does not have any operations outside of the United States. | |||||||||||||
Percent of Total UPB as of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
California | 17.1 | % | 18.6 | % | 14.6 | % | |||||||
Florida | 8.2 | % | 7 | % | 7.7 | % | |||||||
Maryland | 8.1 | % | 9.2 | % | 7.6 | % | |||||||
Texas | 7.1 | % | 7.5 | % | 8.3 | % | |||||||
Virginia | 5.7 | % | 5.6 | % | 9 | % | |||||||
All other states | 53.8 | % | 52.1 | % | 52.8 | % | |||||||
Total | 100 | % | 100 | % | 100 | % | |||||||
Other_Operating_Expenses_Table
Other Operating Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income And Expenses [Abstract] | ' | ||||||||||||
Summary of Major Components of Other Operating Expenses | ' | ||||||||||||
The following is a summary of the major components of other operating expenses for each of the three years ended December 31, 2013, 2012 and 2011 (in thousands): | |||||||||||||
For the year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Professional fees | $ | 7,242 | $ | 12,339 | $ | 3,979 | |||||||
Travel and entertainment | 4,442 | 4,967 | 2,416 | ||||||||||
Sub-servicing expense | 4,755 | 3,038 | 1,955 | ||||||||||
Rent | 6,072 | 3,537 | 1,944 | ||||||||||
Marketing and preferred broker | 3,873 | 2,755 | 1,937 | ||||||||||
Office expenses | 3,676 | 2,577 | 1,681 | ||||||||||
All other | 7,505 | 4,036 | 2,554 | ||||||||||
Total | $ | 37,565 | $ | 33,249 | $ | 16,466 | |||||||
Quarterly_Results_Unaudited_Ta
Quarterly Results (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Unaudited Selected Financial Data and Operating Information on a Quarterly Basis | ' | ||||||||||||||||
The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||
As of and for the year ended December 31, 2013 | |||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||
Gains from mortgage banking activities | $ | 52,386 | $ | 45,278 | $ | 63,076 | $ | 42,931 | |||||||||
Servicing fees | 23,750 | 22,954 | 22,370 | 21,141 | |||||||||||||
Total revenues | 85,470 | 73,650 | 90,734 | 69,185 | |||||||||||||
Personnel | 36,985 | 31,091 | 37,308 | 28,283 | |||||||||||||
Amortization and depreciation | 18,451 | 19,441 | 17,728 | 17,256 | |||||||||||||
Total expenses | 67,519 | 60,946 | 66,932 | 56,855 | |||||||||||||
Operating income | 17,951 | 12,704 | 23,802 | 12,330 | |||||||||||||
Net income | 11,206 | 8,055 | 14,543 | 7,726 | |||||||||||||
Diluted earnings per share | 0.33 | 0.23 | 0.42 | 0.23 | |||||||||||||
Total originations | 2,340,782 | 1,763,489 | 2,559,414 | 1,731,352 | |||||||||||||
Servicing portfolio | $ | 38,937,027 | $ | 38,666,621 | $ | 37,885,270 | $ | 36,760,520 | |||||||||
As of and for the year ended December 31, 2012 | |||||||||||||||||
4th Quarter | 3rd Quarter | 2nd Quarter | 1st Quarter | ||||||||||||||
Gains from mortgage banking activities | $ | 79,407 | $ | 53,400 | $ | 33,934 | $ | 19,802 | |||||||||
Servicing fees | 19,694 | 13,307 | 9,827 | 9,379 | |||||||||||||
Total revenues | 105,522 | 70,126 | 46,720 | 34,402 | |||||||||||||
Personnel | 47,860 | 32,173 | 17,363 | 11,641 | |||||||||||||
Amortization and depreciation | 15,076 | 9,595 | 6,743 | 7,259 | |||||||||||||
Total expenses | 86,133 | 58,348 | 31,611 | 24,908 | |||||||||||||
Operating income | 19,389 | 11,778 | 15,109 | 9,494 | |||||||||||||
Net income | 11,543 | 7,098 | 9,292 | 5,839 | |||||||||||||
Diluted earnings per share | 0.34 | 0.28 | 0.42 | 0.27 | |||||||||||||
Total originations | 2,909,952 | 2,180,795 | 1,336,982 | 674,456 | |||||||||||||
Servicing portfolio | $ | 35,169,999 | $ | 33,886,562 | $ | 17,562,832 | $ | 16,850,945 |
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 04, 2012 | Sep. 04, 2012 | Sep. 04, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
State | CW Capital LLC [Member] | CW Capital LLC [Member] | CW Capital LLC [Member] | Maximum [Member] | Minimum [Member] | Interim Loan Program [Member] | Bridge Loan [Member] | Bridge Loan [Member] | ||
ARA Finco LLC [Member] | ARA Finance LLC [Member] | Maximum [Member] | Maximum [Member] | |||||||
Organization [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states in which the entity is approved as a Freddie Mac Program Plus lender | ' | 22 | ' | ' | ' | ' | ' | ' | ' | ' |
Interim loans principal balances | ' | ' | ' | ' | ' | ' | ' | $30,000,000 | ' | ' |
Loan term (in years) | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '3 years |
Loans originated during the period | 126,100,000 | 126,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Origination period for all interim loans outstanding | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' |
Loan for bridge program | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' |
Percentage of ownership | 20.00% | 20.00% | ' | 50.00% | ' | ' | ' | ' | 5.00% | ' |
Unpaid principal balance of loan originated under the bridge program | 44,200,000 | 44,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Total consideration transferred | ' | ' | 231,100,000 | ' | ' | ' | ' | ' | ' | ' |
Purchase consideration paid in cash | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' |
Shares issuable under purchase consideration | ' | ' | 11.6 | ' | ' | ' | ' | ' | ' | ' |
Purchase consideration paid through the issuance of shares | ' | ' | 151,100,000 | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership by joint venture | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Secured Borrowings | 22,100,000 | 22,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial mortgage loan receivable originated during period | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 02, 2013 | |
Reporting_Unit | ||||
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Cash and cash equivalent maturity period | 'Three months or less | ' | ' | ' |
Cash equivalents | $0 | $0 | ' | ' |
Unpaid principal balance advanced to lender, if the borrower is delinquent in making loan payments (as a percent) | 5.00% | ' | ' | ' |
Period of mortgage loans within which they are transferred or sold | '60 days | ' | ' | ' |
Measurement period | '1 year | ' | ' | ' |
Number of reporting units | 1 | ' | ' | ' |
Market capitalization in excess net asset value | ' | ' | ' | 60,000,000 |
Market capitalization in excess net asset value, percentage | ' | ' | ' | 15.00% |
Maximum term of interim loans | '2 years | ' | ' | ' |
Loan held for Investment Original principal balances Maximum | 30,000,000 | ' | ' | ' |
Loans held for investment, net | 135,600,000 | ' | ' | ' |
Unamortized deferred fees and costs | 500,000 | ' | ' | ' |
Allowance for loan losses | 400,000 | 0 | ' | ' |
Discount rate low end (as a percent) | 12.00% | ' | ' | ' |
Discount rate high end (as a percent) | 15.00% | ' | ' | ' |
Gains or loss recognized on sale of loan | 0 | ' | ' | ' |
Co-broker fees from mortgage banking activities | 23,000,000 | 28,800,000 | 22,900,000 | ' |
Estimated dividend yield | 0.00% | ' | ' | ' |
Accruals for tax uncertainties | $0 | $0 | ' | ' |
Stock Option [Member] | Officers and Employees [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Vesting period | '3 years | ' | ' | ' |
Term for which awards were granted | '10 years | ' | ' | ' |
Restricted Stock [Member] | Officers and Employees [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Vesting period | '3 years | ' | ' | ' |
Restricted Stock [Member] | Non-Employee Directors [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Vesting period | '1 year | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Basis point expected to be paid per year under guaranty obligation | 0.03% | ' | ' | ' |
Minimum [Member] | Stock Option [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Vesting period | '2 years | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Basis point expected to be paid per year under guaranty obligation | 0.05% | ' | ' | ' |
Maximum [Member] | Stock Option [Member] | ' | ' | ' | ' |
Significant Accounting Policies [Line Items] | ' | ' | ' | ' |
Vesting period | '3 years | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Restricted Cash (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $5,427 | $7,130 |
Good Faith Customer Deposits [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 5,253 | 6,990 |
Sublease Deposits [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 56 | 45 |
Employee Flex Deposits [Member] | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $118 | $95 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Pledged Securities and Cash Balances (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pledged Securities and Cash Balances [Abstract] | ' | ' |
Portfolio-Class I | $48,496 | $32,326 |
Pledged cash | 1,155 | 1,155 |
Total pledged securities and cash | $49,651 | $33,481 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Schedule of Net Warehouse Interest Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of Significant Accounting Policies | ' | ' | ' |
Warehouse interest income, net | $7,445 | $4,668 | $4,198 |
Loans Held for Sale [Member] | ' | ' | ' |
Summary of Significant Accounting Policies | ' | ' | ' |
Warehouse interest income | 17,576 | 16,562 | 10,198 |
Warehouse interest expense | -11,362 | -12,201 | -5,951 |
Loans Held for Investment [Member] | ' | ' | ' |
Summary of Significant Accounting Policies | ' | ' | ' |
Warehouse interest income | 3,583 | 799 | ' |
Warehouse interest expense | ($2,352) | ($492) | ($49) |
Acquisitions_and_Goodwill_and_2
Acquisitions and Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 04, 2012 | Dec. 31, 2013 |
Mortgage Servicing Rights [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Weighted average remaining lives | ' | '6 years 2 months 12 days |
CW Capital LLC [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Total consideration transferred | $231.10 | ' |
Purchase consideration paid in cash | 80 | ' |
Purchase consideration paid through the issuance of shares | $151.10 | ' |
Expected tax deductible term for goodwill | ' | '15 years |
Minimum [Member] | Mortgage Pipeline Intangible Asset [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Weighted average remaining lives | ' | '1 month |
Maximum [Member] | Mortgage Pipeline Intangible Asset [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Weighted average remaining lives | ' | '3 months |
Acquisitions_and_Goodwill_and_3
Acquisitions and Goodwill and Other Intangible Assets - Schedule of Goodwill Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Abstract] | ' | ' |
Beginning balance | $59,735 | ' |
CWCapital acquisition, as initially recorded | ' | 53,401 |
Retrospective adjustments | 477 | 6,334 |
Impairment | ' | ' |
Ending balance | $60,212 | $59,735 |
Acquisitions_and_Goodwill_and_4
Acquisitions and Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets Related to Acquisition (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | $508,153 | $420,657 |
Accumulated Amortization | -154,620 | -101,615 |
Net carrying value | 353,533 | 319,042 |
Mortgage Pipeline Intangible Asset [Member] | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 18,700 | 18,700 |
Accumulated Amortization | -18,191 | -15,182 |
Net carrying value | 509 | 3,518 |
Acquired Mortgage Servicing Rights [Member] | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 124,629 | 124,629 |
Accumulated Amortization | -34,779 | -8,503 |
Net carrying value | 89,850 | 116,126 |
Originated Mortgage Servicing Rights [Member] | ' | ' |
Acquired Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying value | 364,824 | 277,328 |
Accumulated Amortization | -101,650 | -77,930 |
Net carrying value | $263,174 | $199,398 |
Gain_from_Mortgage_Banking_Act
Gain from Mortgage Banking Activities - Schedule of Gains from Mortgage Banking Activities (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Mortgage Banking [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual loan origination related fees, net | ' | ' | ' | ' | ' | ' | ' | ' | $111,699 | $93,949 | $48,411 |
Fair value of expected net future cash flows from servicing recognized at commitment | ' | ' | ' | ' | ' | ' | ' | ' | 97,115 | 98,308 | 57,560 |
Fair value of expected guaranty obligation | ' | ' | ' | ' | ' | ' | ' | ' | -5,143 | -5,714 | -3,259 |
Total gains from mortgage banking activities | $52,386 | $45,278 | $63,076 | $42,931 | $79,407 | $53,400 | $33,934 | $19,802 | $203,671 | $186,543 | $102,712 |
Mortgage_Servicing_Rights_Addi
Mortgage Servicing Rights - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Fair value of the MSRs | $414,900,000 | $350,500,000 | ' |
Servicing portfolio less portion related to loans held for sale | 38,500,000,000 | 34,100,000,000 | ' |
Decrease in fair value as a result of 100 basis point increase in discount rate | 13,200,000 | ' | ' |
Sensitivity Analysis of Fair Value, example 1, impact of percent adverse change in discount rate, percent | 0.01 | ' | ' |
Decrease in fair value as a result of 200 basis point increase in discount rate | 25,400,000 | ' | ' |
Sensitivity Analysis of Fair Value, example 2, impact of percent adverse change in discount rate, percent | 0.02 | ' | ' |
Temporary impairment recognized | 0 | 0 | 0 |
Weighted average remaining life of the aggregate MSRs | '6 years 7 months 6 days | ' | ' |
Other Revenues [Member] | ' | ' | ' |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Prepayment fees | $2,400,000 | $1,700,000 | $900,000 |
Minimum [Member] | ' | ' | ' |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Discount rate used for loans originated (as a percent) | 10.00% | 10.00% | 10.00% |
Reduction in estimated life | '6 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Discount rate used for loans originated (as a percent) | 15.00% | 15.00% | 15.00% |
Reduction in estimated life | '12 months | ' | ' |
Mortgage_Servicing_Rights_Sche
Mortgage Servicing Rights - Schedule of Activity Related to Capitalized MSRs (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Servicing Asset At Amortized Value Additional Disclosures [Abstract] | ' | ' |
Beginning balance | $315,524 | $137,079 |
Additions, following sale of loan | 112,464 | 94,008 |
Additions, CWCapital acquisition | ' | 124,629 |
Amortization | -64,443 | -37,019 |
Prepayments and write-offs | -10,521 | -3,173 |
Ending balance | $353,024 | $315,524 |
Mortgage_Servicing_Rights_Sche1
Mortgage Servicing Rights - Schedule of Expected Amortization of MSR (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Year ending December 31, 2014 | $64,112 | ' | ' |
Year ending December 31, 2015 | 57,685 | ' | ' |
Year ending December 31, 2016 | 53,386 | ' | ' |
Year ending December 31, 2017 | 48,474 | ' | ' |
Year ending December 31, 2018 | 40,235 | ' | ' |
Thereafter | 89,132 | ' | ' |
Total | 353,024 | 315,524 | 137,079 |
Originated MSRs [Member] | ' | ' | ' |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Year ending December 31, 2014 | 45,746 | ' | ' |
Year ending December 31, 2015 | 40,672 | ' | ' |
Year ending December 31, 2016 | 37,628 | ' | ' |
Year ending December 31, 2017 | 34,532 | ' | ' |
Year ending December 31, 2018 | 30,117 | ' | ' |
Thereafter | 74,479 | ' | ' |
Total | 263,174 | ' | ' |
Acquired MSRs [Member] | ' | ' | ' |
Servicing Assets At Amortized Value [Line Items] | ' | ' | ' |
Year ending December 31, 2014 | 18,366 | ' | ' |
Year ending December 31, 2015 | 17,013 | ' | ' |
Year ending December 31, 2016 | 15,758 | ' | ' |
Year ending December 31, 2017 | 13,942 | ' | ' |
Year ending December 31, 2018 | 10,118 | ' | ' |
Thereafter | 14,653 | ' | ' |
Total | $89,850 | ' | ' |
Guaranty_Obligation_and_Allowa2
Guaranty Obligation and Allowance for Risk-Sharing Obligations - Summary of Guaranty Obligation (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | ' | ' |
Beginning balance | $21,155 | $9,921 |
Guaranty obligation recognized, following the sale of the loan | 6,136 | 5,718 |
Guaranty obligation assumed, CWCapital acquisition | ' | 8,254 |
Amortization of guaranty obligation | -3,802 | -2,738 |
Ending balance | $23,489 | $21,155 |
Guaranty_Obligation_and_Allowa3
Guaranty Obligation and Allowance for Risk-Sharing Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Billions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | ' | ' |
Maximum delinquency period of loans at which initial loss recognition occurs | '60 days | ' |
Maximum quantifiable contingent liability associated with guarantees | $3.70 | $2.70 |
Guaranty_Obligation_and_Allowa4
Guaranty Obligation and Allowance for Risk-Sharing Obligations - Summary of Allowance for Risk-sharing Obligations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | ' | ' |
Beginning balance | $15,670 | $14,917 |
Provision for risk-sharing obligations | 881 | 3,140 |
Allowance for risk-sharing obligations assumed, CWCapital acquisition | ' | 4,063 |
Write offs | -9,188 | -6,450 |
Ending balance | $7,363 | $15,670 |
Servicing_Schedule_of_Total_Un
Servicing - Schedule of Total Unpaid Principal Balance of Loans that the Company was Servicing for Various Institutional Investors (Detail) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||||||
Transfers And Servicing [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans | $38,937,027 | $38,666,621 | $37,885,270 | $36,760,520 | $35,169,999 | $33,886,562 | $17,562,832 | $16,850,945 | $16,778,285 |
Servicing_Schedule_of_Total_Un1
Servicing - Schedule of Total Unpaid Principal Balance of Loans that the Company was Servicing for Various Institutional Investors (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2012 |
Transfers And Servicing [Abstract] | ' |
Addition to unpaid principal balance of loans in servicing portfolio through the acquisition | $14.50 |
Servicing_Additional_Informati
Servicing - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Transfers And Servicing [Abstract] | ' | ' |
Custodial escrow accounts | $687.10 | $598.60 |
Notes_Payable_Additional_Infor
Notes Payable - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 2 Months Ended | 7 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 04, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 20, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 01, 2013 | Sep. 04, 2012 | Aug. 19, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Oct. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 25, 2013 | Jan. 25, 2013 | Sep. 04, 2012 | Dec. 31, 2013 | Sep. 24, 2013 | Oct. 05, 2012 | Dec. 31, 2013 | |
London Interbank Offered Rate [Member] | Federal Funds Rate [Member] | Prior Loan [Member] | Prior Loan [Member] | Prior Loan [Member] | Term Loan [Member] | Term Loan [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Fannie Mae Repurchase Agreement, Uncommitted Line and Open Maturity [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | ||||
Operating Expense [Member] | Loans | London Interbank Offered Rate [Member] | Base Rate [Member] | Term Loan [Member] | London Interbank Offered Rate [Member] | Base Rate [Member] | Facility | Maximum [Member] | Warehouse Facility Number Four Amended Agreement [Member] | ||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $1,400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000,000 | $1,400,000,000 | ' | ' | ' | ' | ' | $575,000,000 | $500,000,000 | $35,000,000 | $57,400,000 | $57,400,000 | ' | ' | ' | $650,000,000 | $450,000,000 | $350,000,000 | $100,000,000 | $60,000,000 | $50,000,000 | ' |
Average 30-day LIBOR (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.17% | 0.21% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | 13,700,000 | 12,700,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Facility fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,700,000 | 2,000,000 | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lines of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of committed warehouse facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of revolving commitments expected to renew annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of revolving commitments expected to renew every two years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected renewal term of one of the revolving commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances made as a percentage of the loan balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate for variable interest on the line of credit | ' | ' | ' | ' | ' | ' | '30-day LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | '30-day LIBOR | ' | ' | ' | ' | ' | '30-day LIBOR | ' | ' | ' | ' | '30-day LIBOR | ' | ' | '30-day LIBOR | ' | ' | ' | '30-day LIBOR | ' | ' | ' |
Basis points added to reference rate (as a percent) | ' | ' | ' | 1.00% | 0.50% | ' | 3.75% | ' | ' | ' | 4.50% | 3.50% | ' | 4.25% | 3.25% | 1.15% | ' | ' | ' | 1.65% | 1.50% | 1.85% | ' | ' | ' | 2.00% | 2.50% | ' | ' | 1.50% | ' | ' | ' | 2.50% | ' | ' | 2.00% |
Minimum tangible net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | 200,000,000 | ' | ' | ' | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' |
Percentage of equity issued by the company or its subsidiaries added to base amount to determine compliance with tangible net worth covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' |
Minimum liquid asset to be maintained under financial covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' |
Debt covenant, aggregate minimum unpaid principal amount of all mortgage loans comprising the company's consolidated servicing portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000,000 | ' | ' | ' |
Debt covenant, aggregate minimum unpaid principal amount of all Fannie Mae DUS mortgage loans comprising the company's consolidated servicing portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000,000 | ' | ' | ' |
Debt covenant, exclusion from servicing portfolio measure of loans past due period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' |
Minimum period of past due to include Fannie Mae DUS mortgage loans into aggregate unpaid principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' |
Debt covenant, maximum percentage of Fannie Mae DUS loans 60 days past due to total servicing portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' |
Maximum indebtedness to tangible net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25 | ' | ' | ' | ' | 2.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Agreement maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3-Sep-13 | ' | ' | 19-Sep-13 | ' | 21-Jul-13 | ' | ' | 28-Feb-13 | ' | ' | ' | 13-Dec-15 | ' | ' | ' |
Agreement extended maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2-Sep-14 | ' | ' | ' | 21-Sep-14 | ' | ' | ' | 24-Jun-14 | ' | ' | ' | ' | ' | ' | ' |
Funding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of subsidiary owned by entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of subsidiary owned by entity after amendment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum cash and cash equivalents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum EBITDA to total debt service ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduced variable borrowing rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'average 30-day LIBOR | ' | ' | ' |
Minimum EBITDA to be maintained under financial covenants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 | ' | ' | ' |
Debt service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75 | ' | ' | ' |
LIBOR floor related to the uncommitted warehouse facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.35% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | 373,107,000 | 1,084,539,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loan agreement | ' | ' | ' | ' | ' | 83,000,000 | 83,000,000 | ' | 175,000,000 | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument maturity date | ' | ' | ' | ' | ' | 31-Aug-17 | ' | ' | ' | 20-Dec-20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of all incremental term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional term loans | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount on issue of term loan | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term Loan proceeds used to repay certain existing indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | 77,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly principal payments | ' | ' | ' | ' | ' | ' | $2,075,000 | ' | ' | $437,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest rate | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated corporate leverage ratio | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated corporate interest coverage ratio | 2.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset coverage ratio | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Withdrawal and repayment period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes_Payable_Schedule_of_Debt
Notes Payable - Schedule of Debt Obligations (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 01, 2013 | Sep. 04, 2012 | Dec. 31, 2013 | Jun. 25, 2013 | Jan. 25, 2013 | Sep. 04, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 19, 2013 | Dec. 31, 2013 | Sep. 24, 2013 | Oct. 05, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | Fannie Mae Repurchase Agreement, Uncommitted Line and Open Maturity [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | Warehouse Notes Payable [Member] | ||
Warehouse Facility #1 [Member] | Warehouse Facility #1 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #2 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #3 [Member] | Warehouse Facility #4 [Member] | Warehouse Facility #4 [Member] | Fannie Mae Repurchase Agreement, Uncommitted Line and Open Maturity [Member] | Fannie Mae Repurchase Agreement, Uncommitted Line and Open Maturity [Member] | |||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Amount | $1,400,000 | ' | ' | ' | ' | $575,000 | $500,000 | ' | $650,000 | $450,000 | $350,000 | $57,400 | $57,400 | $35,000 | $100,000 | $60,000 | $50,000 | $500,000 | $1,882,400 | $1,910,000 | $575,000 | $975,000 | $650,000 | $350,000 | $57,400 | $35,000 | $100,000 | $50,000 | $500,000 | $500,000 |
Outstanding Balance | $373,107 | $1,084,539 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $11,400 | $373,107 | $1,084,539 | $119,874 | $830,749 | $148,843 | $109,329 | $45,496 | $7,125 | $47,472 | ' | $11,422 | $137,336 |
Reference rate for variable interest on the line of credit | ' | ' | ' | ' | '30-day LIBOR | ' | ' | '30-day LIBOR | ' | ' | ' | ' | '30-day LIBOR | ' | '30-day LIBOR | ' | ' | '30-day LIBOR | ' | ' | 'Average 30-day LIBOR plus 1.50% | 'Average 30-day LIBOR plus 1.85% | 'Average 30-day LIBOR plus 1.50% | 'Average 30-day LIBOR plus 1.75% | 'Average 30-day LIBOR plus 2.00% | 'Average 30-day LIBOR plus 2.50% | 'Average 30-day LIBOR plus 2.00% | 'Average 30-day LIBOR plus 2.50% | 'Average 30-day LIBOR plus 1.15% | 'Average 30-day LIBOR plus 1.15% |
Basis points added to reference rate | ' | ' | 1.65% | 1.50% | 1.85% | ' | ' | 1.50% | ' | ' | ' | 2.00% | 2.50% | ' | 2.50% | ' | ' | 1.15% | ' | ' | 1.50% | 1.85% | 1.50% | 1.75% | 2.00% | 2.50% | 2.00% | 2.50% | 1.15% | 1.15% |
Notes_Payable_Schedule_of_Outs
Notes Payable - Schedule of Outstanding Borrowings (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Term Loan [Member] | Prior Loan [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Total | $173,258,000 | $80,925,000 | $173,258,000 | $80,925,000 |
Reference rate for variable interest on the line of credit | ' | ' | ' | '30-day LIBOR |
Basis points added to reference rate (as a percent) | ' | ' | ' | 3.75% |
Frequency of installment payments | ' | ' | 'quarterly | 'quarterly |
Quarterly equal installments | ' | ' | $437,500 | $2,075,000 |
Notes_Payable_Schedule_of_Outs1
Notes Payable - Schedule of Outstanding Borrowings (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 20, 2013 | Dec. 31, 2012 | Sep. 04, 2012 |
In Millions, unless otherwise specified | Term Loan [Member] | Term Loan [Member] | Prior Loan [Member] | Prior Loan [Member] |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amount of loan agreement | $175 | $175 | $83 | $83 |
Notes_Payable_Schedule_of_Cons
Notes Payable - Schedule of Consolidated Corporate Leverage Ratio (Detail) | Dec. 31, 2013 |
Schedule Of Maximum Leverage Ratio [Line Items] | ' |
Consolidated corporate leverage ratio | 2.5 |
Year One [Member] | ' |
Schedule Of Maximum Leverage Ratio [Line Items] | ' |
Consolidated corporate leverage ratio | 5 |
Year Two [Member] | ' |
Schedule Of Maximum Leverage Ratio [Line Items] | ' |
Consolidated corporate leverage ratio | 4.75 |
Year Three [Member] | ' |
Schedule Of Maximum Leverage Ratio [Line Items] | ' |
Consolidated corporate leverage ratio | 4.5 |
Thereafter [Member] | ' |
Schedule Of Maximum Leverage Ratio [Line Items] | ' |
Consolidated corporate leverage ratio | 4.25 |
Notes_Payable_Schedule_of_Note
Notes Payable - Schedule of Notes Payable Maturities (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $317,417 |
2015 | 59,310 |
2016 | 1,750 |
2017 | 1,750 |
2018 | 1,750 |
Thereafter | 166,250 |
Total | $548,227 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Pledged securities and cash | $49,651 | $33,481 |
Derivative assets | 19,563 | 21,258 |
Liabilities | ' | ' |
Derivative liabilities | 222 | 867 |
Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | Recurring Basis [Member] | ' | ' |
Assets | ' | ' |
Pledged securities and cash | 49,651 | 33,481 |
Total financial assets | 49,651 | 33,481 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring Basis [Member] | ' | ' |
Assets | ' | ' |
Loans held for sale | 281,477 | 1,101,561 |
Total financial assets | 281,477 | 1,101,561 |
Significant Other Unobservable Inputs (Level 3) [Member] | Recurring Basis [Member] | ' | ' |
Assets | ' | ' |
Derivative assets | 19,563 | 21,258 |
Total financial assets | 19,563 | 21,258 |
Liabilities | ' | ' |
Derivative liabilities | 222 | 867 |
Total financial liabilities | 222 | 867 |
Fair Value [Member] | Recurring Basis [Member] | ' | ' |
Assets | ' | ' |
Loans held for sale | 281,477 | 1,101,561 |
Pledged securities and cash | 49,651 | 33,481 |
Derivative assets | 19,563 | 21,258 |
Total financial assets | 350,691 | 1,156,300 |
Liabilities | ' | ' |
Derivative liabilities | 222 | 867 |
Total financial liabilities | $222 | $867 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Period | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Amount of transfers between any of the levels within the fair value hierarchy | $0 | $0 |
Higher maturity term | '60 days | ' |
Maximum number of period for which derivative is outstanding | 1 | ' |
Period of originated loans within which they are transferred or sold | '60 days | ' |
Maximum term of interim loans | '2 years | ' |
Maximum [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Term of maturity of investments | '90 days | ' |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Roll Forward of Derivative Instruments Which Require Valuations Based upon Significant Unobservable Inputs (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative assets and liabilities, net | ' | ' |
Beginning balance | $20,391 | $5,415 |
Settlements | -204,721 | -171,567 |
Realized gains (losses) recorded in earnings | 184,330 | 166,152 |
Unrealized gains (losses) recorded in earnings | 19,341 | 20,391 |
Ending balance | $19,341 | $20,391 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ' | ' |
Derivative assets | $19,563 | $21,258 |
Derivative liabilities | 222 | 867 |
Significant Other Unobservable Inputs (Level 3) [Member] | Derivative Assets [Member] | Discounted Cash Flow [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ' | ' |
Derivative assets | 19,563 | ' |
Significant Other Unobservable Inputs (Level 3) [Member] | Derivative Liabilities [Member] | Discounted Cash Flow [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ' | ' |
Derivative liabilities | $222 | ' |
Fair_Value_Measurements_Schedu2
Fair Value Measurements - Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financial Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $170,563 | $65,027 | $53,817 | $33,285 |
Restricted cash | 5,427 | 7,130 | ' | ' |
Pledged securities and cash | 49,651 | 33,481 | ' | ' |
Derivative assets | 19,563 | 21,258 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Derivative liabilities | 222 | 867 | ' | ' |
Warehouse notes payable | 373,107 | 1,084,539 | ' | ' |
Notes payable | 173,258 | 80,925 | ' | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Financial Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 170,563 | 65,027 | ' | ' |
Restricted cash | 5,427 | 7,130 | ' | ' |
Pledged securities and cash | 49,651 | 33,481 | ' | ' |
Loans held for sale | 281,477 | 1,101,561 | ' | ' |
Loans held for investment, net | 134,656 | 9,468 | ' | ' |
Derivative assets | 19,563 | 21,258 | ' | ' |
Total financial assets | 661,337 | 1,237,925 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Derivative liabilities | 222 | 867 | ' | ' |
Warehouse notes payable | 373,107 | 1,084,539 | ' | ' |
Notes payable | 173,258 | 80,925 | ' | ' |
Total financial liabilities | 546,587 | 1,166,331 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Financial Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 170,563 | 65,027 | ' | ' |
Restricted cash | 5,427 | 7,130 | ' | ' |
Pledged securities and cash | 49,651 | 33,481 | ' | ' |
Loans held for sale | 281,477 | 1,101,561 | ' | ' |
Loans held for investment, net | 135,620 | 9,500 | ' | ' |
Derivative assets | 19,563 | 21,258 | ' | ' |
Total financial assets | 662,301 | 1,237,957 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Derivative liabilities | 222 | 867 | ' | ' |
Warehouse notes payable | 373,107 | 1,084,539 | ' | ' |
Notes payable | 173,258 | 80,925 | ' | ' |
Total financial liabilities | $546,587 | $1,166,331 | ' | ' |
Fair_Value_Measurements_Schedu3
Fair Value Measurements - Schedule of Fair Value of Derivative Instruments and Loans Held for Sale (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Fair Value Of Derivative Instruments And Loans Held For Sale [Line Items] | ' | ' |
Assumed Gain (Loss) on Sale | $20,679 | $44,214 |
Total Fair Value Adjustment | 20,679 | 44,214 |
Derivative Contract Assets | 19,563 | 21,258 |
Derivative Contract Liabilities | -222 | -867 |
Fair Value Adjustment To Loans Held for Sale | 1,338 | 23,699 |
Rate Lock Commitments [Member] | ' | ' |
Schedule Of Fair Value Of Derivative Instruments And Loans Held For Sale [Line Items] | ' | ' |
Notional or Principal Amount | 235,616 | 302,373 |
Assumed Gain (Loss) on Sale | 12,331 | 11,953 |
Interest Rate Movement Effect | -6,253 | -1,194 |
Total Fair Value Adjustment | 6,078 | 10,759 |
Derivative Contract Assets | 6,299 | 10,759 |
Derivative Contract Liabilities | -221 | ' |
Forward Sale Contracts [Member] | ' | ' |
Schedule Of Fair Value Of Derivative Instruments And Loans Held For Sale [Line Items] | ' | ' |
Notional or Principal Amount | 515,755 | 1,380,235 |
Interest Rate Movement Effect | 13,263 | 9,756 |
Total Fair Value Adjustment | 13,263 | 9,756 |
Derivative Contract Assets | 13,264 | 10,499 |
Derivative Contract Liabilities | -1 | -867 |
Loans Held for Sale [Member] | ' | ' |
Schedule Of Fair Value Of Derivative Instruments And Loans Held For Sale [Line Items] | ' | ' |
Notional or Principal Amount | 280,139 | 1,077,862 |
Assumed Gain (Loss) on Sale | 8,348 | 32,261 |
Interest Rate Movement Effect | -7,010 | -8,562 |
Total Fair Value Adjustment | 1,338 | 23,699 |
Fair Value Adjustment To Loans Held for Sale | $1,338 | $23,699 |
Litigation_Commitments_and_Con2
Litigation, Commitments, and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 01, 2011 | Nov. 30, 2003 | Jan. 10, 2014 | Feb. 10, 2014 | Apr. 30, 2013 | Jul. 31, 2013 | Nov. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
sqft | sqft | Subsequent Event [Member] | Subsequent Event [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | Capital Funding Litigation [Member] | CA Fund Group Litigation [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | DUS Risk-Sharing Obligations [Member] | ||||
Counts | Claim | Counts | Claim | Maximum [Member] | Minimum [Member] | All Defendants [Member] | Credit Suisse [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | Fannie Mae DUS Program [Member] | HUD Program [Member] | Maximum [Member] | |||||||||
US Treasuries [Member] | US Treasuries [Member] | US Federal Agency Securities [Member] | US Federal Agency Securities [Member] | Money Market Funds Holding US Treasuries [Member] | Money Market Funds Holding US Treasuries [Member] | Tier 1 Loans [Member] | Tier 1 Loans [Member] | New Tier 2 loans [Member] | New Tier 2 loans [Member] | Existing Tier 2 loans [Member] | Fannie Mae DUS Program [Member] | |||||||||||||||||||
Item | ||||||||||||||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral requirements percentage (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | 1.10% | 0.60% | 0.75% | ' | ' | ' |
Period of funding for collateral requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '48 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | '48 months | ' | ' | ' |
Collateral requirements percentage by lender, quarterly increase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03% | ' | ' |
Number of quarters for the funding of the increased collateral requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Restricted liquidity collateral reduction percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 3.00% | 3.00% | 4.00% | 0.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' |
Amount of additional capital required to be funded over the next 48 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Requirement to advance principal and interest due to noteholders, if the borrower is delinquent in making loan payments (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' |
Unpaid principal balance advanced to lender, if the borrower is delinquent in making loan payments (as a percent) | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Net worth requirement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum liquid assets to be maintained to meet operational liquidity requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operational liquidity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 166,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of damages sought by plaintiff | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claims asserted against all defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount up to which the entity will be indemnifying Column | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount agreed to be paid by William Walker and Mallory Walker to Column | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counts of breach of contract filed for summary judgment by defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counts of promissory estoppel filed for summary judgment by defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counts of unjust enrichment filed for summary judgment by defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counts of unfair competition filed for summary judgment by defendants | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Counts of unjust enrichment for which court issued Opinion and Order which granted the motion | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount awarded by jury to Capital Funding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,750,000 | 10,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of jury trial | ' | ' | ' | ' | ' | ' | ' | ' | '14 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claims not dismissed | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unjust enrichment judgment amount | ' | ' | ' | ' | ' | 10,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Damages awarded upon breach of contract judgment | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss exposure amount | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Indemnification of judgment amount | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum floating rate loan under bridge program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum floating rate loan period under bridge program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount raised in separate account | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of leased property (in square feet) | ' | ' | ' | ' | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional area of leased property acquired on lease (in square feet) | ' | ' | ' | 23,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rent expense | $6,072,000 | $3,537,000 | $1,944,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation_Commitments_and_Con3
Litigation, Commitments, and Contingencies - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $4,367 |
2015 | 4,163 |
2016 | 3,504 |
2017 | 3,077 |
2018 | 2,861 |
Thereafter | 13,491 |
Total | $31,463 |
ShareBased_Payment_Additional_
Share-Based Payment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of shares of stock authorized and available for issuance | 5,510,000 | ' | ' |
Number of shares remaining available for grant | 2,708,475 | ' | ' |
Share based payment expense | $9.20 | $5.20 | $2.40 |
Tax benefit recognized | 1.3 | 0.2 | 0.1 |
Cost of outstanding restricted shares and options | $11.10 | ' | ' |
Unrecognized compensation cost, period for recognition | '2 years 4 months 24 days | ' | ' |
Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Term for which awards were granted | '10 years | ' | ' |
Stock Option [Member] | Officers and Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Stock Option [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '2 years | ' | ' |
Stock Option [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Granted (in shares) | 418,757 | ' | ' |
Weighted average grant date fair value (in dollars per share) | $18.40 | $12.74 | $12.59 |
Restricted Stock [Member] | Officers and Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Restricted Stock [Member] | Non-Employee Directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Restricted Stock Units (RSUs) [Member] | Officers and Employees [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Granted (in shares) | 275,038 | ' | ' |
ShareBased_Payment_Schedule_of
Share-Based Payment - Schedule of Share-based Equity Compensation (Detail) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Nonvested at beginning of period (in shares) | 1,048,346 |
Granted (in shares) | 418,757 |
Vested (in shares) | -518,691 |
Forfeited (in shares) | -151,221 |
Nonvested at end of period (in shares) | 797,191 |
Nonvested at end of period | $12,891 |
Stock Option [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Outstanding at beginning of period (in shares) | 502,968 |
Granted (in shares) | 336,459 |
Exercised (in shares) | -74,425 |
Forfeited (in shares) | -6,666 |
Expired (in shares) | ' |
Outstanding at end of period (in shares) | 758,336 |
Exercisable at end of period (in shares) | 186,832 |
Outstanding at end of period (in dollars per share) | $15.13 |
Exercisable at end of period (in dollars per share) | $12.71 |
Outstanding at end of period | '8 years 6 months |
Exercisable at end of period | '7 years 7 months 6 days |
Outstanding at end of period | 787 |
Exercisable at end of period | $646 |
ShareBased_Payment_Schedule_of1
Share-Based Payment - Schedule of Stock Options Valuation Assumptions (Detail) (Stock Option [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Option [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Estimated option life | '6 years | '6 years |
Risk free interest rate | 1.01% | 1.09% |
Expected volatility | 33.58% | 45.76% |
Expected dividend rate | 0.00% | 0.00% |
Weighted average grant date fair value per share of options granted | $6.13 | $5.79 |
ShareBased_Payment_Schedule_of2
Share-Based Payment - Schedule of Fair Values of the Restricted Stock that Vested (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Restricted Shares | $9,076 | $3,327 | $1,939 |
Stock Options | 3,489 | 897 | ' |
Total | $12,565 | $4,224 | $1,939 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Weighted Average Shares and Share Equivalents that are Used to Calculate Basic and Diluted Earnings Per Share (Details) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings per Share | ' | ' | ' |
Weighted average number of shares outstanding used to calculate basic earnings per share | 33,764,233 | 25,545,028 | 21,621,534 |
Dilutive securities: | ' | ' | ' |
Stock options and restricted shares | 571,681 | 299,987 | 126,138 |
Weighted average number of shares and share equivalents outstanding used to calculated diluted earnings per share | 34,335,914 | 25,845,015 | 21,747,672 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Option [Member] | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Shares outstanding excluded from computation of earnings per share | 81,781 | 159,744 | 166,100 |
Restricted Stock [Member] | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Shares outstanding excluded from computation of earnings per share | ' | 9,421 | 103,672 |
Repurchased and retired | 161,294 | 48,359 | 38,473 |
Weighted average market price of shares repurchased and retired | 17.64 | 15.32 | 12.3 |
Income_Taxes_Summary_of_the_En
Income Taxes - Summary of the Entity's Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $5,144 | $4,332 | $10,434 |
State | 645 | 1,136 | 1,697 |
Total | 5,789 | 5,468 | 12,131 |
Deferred | ' | ' | ' |
Federal | 15,868 | 14,068 | 8,406 |
State | 2,343 | 2,218 | 1,117 |
Total | 18,211 | 16,286 | 9,523 |
Items charged or credited directly to stockholders' equity | ' | ' | ' |
Federal | 1,091 | 206 | 123 |
State | 166 | 38 | 20 |
Total | 1,257 | 244 | 143 |
Income tax expense | $25,257 | $21,998 | $21,797 |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of the Statutory Federal Tax Provision to Income Tax Provision (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory federal provision (35%) | $23,376 | $19,520 | $19,831 |
Statutory state income tax provision, net of federal tax benefit | 2,195 | 2,174 | 1,983 |
Other | -314 | 304 | -17 |
Income tax expense | $25,257 | $21,998 | $21,797 |
Income_Taxes_Schedule_of_Recon1
Income Taxes - Schedule of Reconciliation of the Statutory Federal Tax Provision to Income Tax Provision (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory tax rate (as a percentage) | 35.00% | 35.00% | 35.00% |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets: | ' | ' |
Compensation-related | $5,002 | $7,665 |
Credit losses | 2,789 | 4,470 |
Acquisition-related | 6,635 | 7,979 |
Other | 1,050 | 943 |
Total deferred tax assets | 15,476 | 21,057 |
Deferred Tax Liabilities: | ' | ' |
Mark-to-market of derivatives and loans held for sale | -6,157 | -11,606 |
Mortgage servicing rights related | -81,189 | -63,584 |
Depreciation | -2,376 | -1,902 |
Total deferred tax liabilities | -89,722 | -77,092 |
Deferred tax liabilities, net | ($74,246) | ($56,035) |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Chance for tax position sustained | 'More than a 50% |
Tax positions for unrecognized tax benefits | 'There are no tax positions for which it is reasonably possible that the unrecognized tax benefits will significantly increase or decrease over the next 12 months |
Transactions_with_Related_Part1
Transactions with Related Parties - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 04, 2012 | Nov. 30, 2012 | Dec. 31, 2012 |
Managing Member [Member] | Managing Member [Member] | Managing Member [Member] | Fortress Investment Group LLC and its Subsidiaries [Member] | CW Financial [Member] | CW Financial [Member] | |
Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' |
Fees earned | $0.40 | $0.70 | $0.80 | ' | ' | ' |
Percentage of ownership interest of related party in the entity | ' | ' | ' | 10.00% | ' | ' |
Fees payable per month | ' | ' | ' | ' | 1 | ' |
Minimum period for which fees are payable for support services | ' | ' | ' | ' | '3 months | ' |
Fees paid | ' | ' | ' | ' | ' | $3 |
Segments_Additional_Informatio
Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Threshold percentage, borrower/key principal accounts related to the risk-sharing loan portfolio | 3.00% |
Threshold percentage, unpaid principal balance and related servicing revenues by geographical area | 5.00% |
Segments_Schedule_of_Principal
Segments - Schedule of Principal Balance of the Loans Serviced for Others, by Investor (Detail) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of the loans serviced for others, by investor, total | $38,937,027 | $38,666,621 | $37,885,270 | $36,760,520 | $35,169,999 | $33,886,562 | $17,562,832 | $16,850,945 | $16,778,285 |
Fannie Mae DUS Program [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of the loans serviced for others, by investor, total | 19,352,880 | ' | ' | ' | 18,854,611 | ' | ' | ' | 10,379,426 |
Freddie Mac [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of the loans serviced for others, by investor, total | 10,271,732 | ' | ' | ' | 9,114,221 | ' | ' | ' | 3,189,565 |
Ginnie Mae-HUD [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of the loans serviced for others, by investor, total | 5,044,193 | ' | ' | ' | 4,642,380 | ' | ' | ' | 1,359,166 |
Life Insurance Companies and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balance of the loans serviced for others, by investor, total | $4,268,222 | ' | ' | ' | $2,558,787 | ' | ' | ' | $1,850,128 |
Segments_Schedule_of_the_Perce
Segments - Schedule of the Percentage of Unpaid Principal Balance of Loans Serviced for Others by Geographical Area (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 100.00% | 100.00% | 100.00% |
California [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 17.10% | 18.60% | 14.60% |
Florida [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 8.20% | 7.00% | 7.70% |
Maryland [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 8.10% | 9.20% | 7.60% |
Texas [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 7.10% | 7.50% | 8.30% |
Virginia [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 5.70% | 5.60% | 9.00% |
All Other States [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of unpaid principal balance of the loans serviced for others | 53.80% | 52.10% | 52.80% |
Other_Operating_Expenses_Summa
Other Operating Expenses - Summary of Major Components of Other Operating Expenses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Income And Expenses [Abstract] | ' | ' | ' |
Professional fees | $7,242 | $12,339 | $3,979 |
Travel and entertainment | 4,442 | 4,967 | 2,416 |
Sub-servicing expense | 4,755 | 3,038 | 1,955 |
Rent | 6,072 | 3,537 | 1,944 |
Marketing and preferred broker | 3,873 | 2,755 | 1,937 |
Office expenses | 3,676 | 2,577 | 1,681 |
All other | 7,505 | 4,036 | 2,554 |
Total | $37,565 | $33,249 | $16,466 |
Quarterly_Results_Schedule_of_
Quarterly Results - Schedule of Unaudited Selected Financial Data and Operating Information on a Quarterly Basis (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains from mortgage banking activities | $52,386 | $45,278 | $63,076 | $42,931 | $79,407 | $53,400 | $33,934 | $19,802 | $203,671 | $186,543 | $102,712 |
Servicing fees | 23,750 | 22,954 | 22,370 | 21,141 | 19,694 | 13,307 | 9,827 | 9,379 | 90,215 | 52,207 | 33,581 |
Total revenues | 85,470 | 73,650 | 90,734 | 69,185 | 105,522 | 70,126 | 46,720 | 34,402 | 319,039 | 256,770 | 152,350 |
Personnel | 36,985 | 31,091 | 37,308 | 28,283 | 47,860 | 32,173 | 17,363 | 11,641 | 133,667 | 109,037 | 51,162 |
Amortization and depreciation | 18,451 | 19,441 | 17,728 | 17,256 | 15,076 | 9,595 | 6,743 | 7,259 | 75,955 | 53,925 | 22,514 |
Total expenses | 67,519 | 60,946 | 66,932 | 56,855 | 86,133 | 58,348 | 31,611 | 24,908 | 252,252 | 201,000 | 95,689 |
Operating income | 17,951 | 12,704 | 23,802 | 12,330 | 19,389 | 11,778 | 15,109 | 9,494 | 66,787 | 55,770 | 56,661 |
Net income | 11,206 | 8,055 | 14,543 | 7,726 | 11,543 | 7,098 | 9,292 | 5,839 | 41,530 | 33,772 | 34,864 |
Diluted earnings per share | $0.33 | $0.23 | $0.42 | $0.23 | $0.34 | $0.28 | $0.42 | $0.27 | $1.21 | $1.31 | $1.60 |
Total originations | 2,340,782 | 1,763,489 | 2,559,414 | 1,731,352 | 2,909,952 | 2,180,795 | 1,336,982 | 674,456 | ' | ' | ' |
Servicing portfolio | $38,937,027 | $38,666,621 | $37,885,270 | $36,760,520 | $35,169,999 | $33,886,562 | $17,562,832 | $16,850,945 | $38,937,027 | $35,169,999 | $16,778,285 |