Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Nov. 12, 2013 | Nov. 12, 2013 | |
Class A Common Stock | Class B Common Stock | ||
Entity Registrant Name | 'PENNYMAC FINANCIAL SERVICES, INC. | ' | ' |
Entity Central Index Key | '0001568669 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Non-accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 18,887,777 | 61 |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash | $56,398 | $12,323 |
Short-term investments at fair value | 127,487 | 53,164 |
Mortgage loans held for sale at fair value (includes $522,031 and $438,850 pledged to secure mortgage loans sold under agreements to repurchase) | 530,248 | 448,384 |
Servicing advances (includes $6,865 and $7,430 pledged to secure note payable) | 105,344 | 93,152 |
Derivative assets | 24,066 | 27,290 |
Carried Interest due from affiliates | 58,134 | 47,723 |
Mortgage servicing rights at lower of amortized cost or fair value (includes $216,463 and $88,587 pledged to secure note payable) | 226,090 | 89,177 |
Mortgage servicing rights at fair value (includes $10,125 and $12,370 pledged to secure note payable) | 26,768 | 19,798 |
Furniture, fixtures, equipment and building improvements, net | 8,498 | 5,065 |
Capitalized software, net | 743 | 795 |
Deferred tax asset | 54,530 | ' |
Other | 11,806 | 13,032 |
Total assets | 1,254,384 | 832,163 |
LIABILITIES | ' | ' |
Mortgage loans sold under agreements to repurchase | 387,883 | 393,534 |
Note payable | 56,775 | 53,013 |
Excess servicing spread financing at fair value | 2,857 | ' |
Derivative liabilities | 5,776 | 509 |
Accounts payable and accrued expenses | 53,355 | 36,279 |
Liability for losses under representations and warranties | 7,215 | 3,504 |
Total liabilities | 664,423 | 570,413 |
Commitments and contingencies | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Additional paid-in capital | 136,484 | ' |
Retained earnings | 7,990 | ' |
Total PennyMac Financial Services, Inc. stockholders' equity | 144,476 | ' |
Members' equity related to Private National Mortgage Acceptance Company, LLC | ' | 261,750 |
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC | 445,485 | ' |
Total equity | 589,961 | 261,750 |
Total liabilities and stockholders' equity | 1,254,384 | 832,163 |
PennyMac | ' | ' |
LIABILITIES | ' | ' |
Payable under the tax receivable agreement | 58,615 | ' |
Class A Common Stock | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | 2 | ' |
Class B Common Stock | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock | ' | ' |
Investment Funds | ' | ' |
ASSETS | ' | ' |
Carried Interest due from affiliates | 58,134 | 47,723 |
Receivable from affiliates | 2,541 | 3,672 |
LIABILITIES | ' | ' |
Payable to affiliates | 36,424 | 36,795 |
PennyMac Mortgage Investment Trust | ' | ' |
ASSETS | ' | ' |
Investment in affiliates, at fair value | 1,701 | 1,897 |
Receivable from affiliates | 20,030 | 16,691 |
LIABILITIES | ' | ' |
Payable to affiliates | $55,523 | $46,779 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Mortgage loans held for sale pledged to secure mortgage loans sold under agreements to repurchase at fair value | $522,031 | $438,850 |
Servicing advances pledged to secure note payable | 6,865 | 7,430 |
Mortgage servicing rights pledged to secure note payable at lower of amortized cost or fair value | 216,463 | 88,587 |
Mortgage servicing rights pledged to secure note payable at fair value | $10,125 | $12,370 |
Class A Common Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' |
Common stock, shares authorized | 200,000,000 | ' |
Common stock, shares issued | 18,887,777 | ' |
Common stock, shares outstanding | 18,887,777 | ' |
Class B Common Stock | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | ' |
Common stock, shares authorized | 1,000 | ' |
Common stock, shares issued | 61 | ' |
Common stock, shares outstanding | 61 | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenue | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | $25,949,000 | $39,760,000 | $108,560,000 | $68,487,000 |
Loan origination fees | 6,280,000 | 2,752,000 | 18,260,000 | 5,439,000 |
Loan servicing fees | ' | ' | ' | ' |
From non-affiliates | 14,596,000 | 2,154,000 | 35,397,000 | 8,776,000 |
Ancillary and other fees | 2,777,000 | 1,153,000 | 7,700,000 | 3,661,000 |
Net servicing income | 29,562,000 | 10,526,000 | 75,873,000 | 34,370,000 |
Amortization, impairment and change in estimated fair value of mortgage servicing rights | -8,163,000 | -4,414,000 | -16,363,000 | -9,024,000 |
Net servicing income | 21,399,000 | 6,112,000 | 59,510,000 | 25,346,000 |
Management fees: | ' | ' | ' | ' |
Management fees | 10,540,000 | 6,114,000 | 29,375,000 | 15,163,000 |
Net interest income (expense): | ' | ' | ' | ' |
Interest income | 5,093,000 | 1,914,000 | 11,310,000 | 4,491,000 |
Interest expense | 4,156,000 | 2,042,000 | 11,686,000 | 4,226,000 |
Net interest income (expense) | 937,000 | -128,000 | -376,000 | 265,000 |
Change in fair value of investment in and dividends received from affiliate | 950,000 | 1,009,000 | 1,774,000 | 2,515,000 |
Other | 785,000 | 695,000 | 1,842,000 | 1,886,000 |
Total net revenue | 87,194,000 | 76,232,000 | 296,139,000 | 155,567,000 |
Expenses | ' | ' | ' | ' |
Compensation | 35,830,000 | 31,856,000 | 113,850,000 | 77,756,000 |
Professional services | 2,831,000 | 1,287,000 | 7,901,000 | 3,538,000 |
Loan origination | 2,802,000 | 1,787,000 | 7,825,000 | 1,803,000 |
Technology | 2,587,000 | 1,057,000 | 6,203,000 | 3,161,000 |
Servicing | 1,931,000 | 999,000 | 5,072,000 | 2,438,000 |
Occupancy | 796,000 | 394,000 | 1,883,000 | 1,078,000 |
Other | 5,500,000 | 989,000 | 12,966,000 | 2,890,000 |
Total expenses | 52,277,000 | 38,369,000 | 155,700,000 | 92,664,000 |
Income before provision for income taxes | 34,917,000 | 37,863,000 | 140,439,000 | 62,903,000 |
Provision for income taxes | 3,493,000 | ' | 5,531,000 | ' |
Net income | 31,424,000 | 37,863,000 | 134,908,000 | 62,903,000 |
Less: Net income attributable to noncontrolling interest | 26,227,000 | ' | 126,918,000 | ' |
Net income attributable to PennyMac Financial Services, Inc. common stockholders | 5,197,000 | ' | 7,990,000 | ' |
Earnings per common share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.29 | ' | $0.50 | ' |
Diluted (in dollars per share) | $0.28 | ' | $0.50 | ' |
Weighted-average common shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 17,958 | ' | 16,042 | ' |
Diluted (in shares) | 75,876 | ' | 75,867 | ' |
PennyMac Mortgage Investment Trust | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' |
Fulfillment fees from affiliate | 18,327,000 | 17,258,000 | 68,625,000 | 31,097,000 |
Loan servicing fees | ' | ' | ' | ' |
From affiliates | 10,738,000 | 4,600,000 | 27,251,000 | 13,163,000 |
Management fees: | ' | ' | ' | ' |
Management fees | 8,539,000 | 3,672,000 | 23,486,000 | 7,964,000 |
Net interest income (expense): | ' | ' | ' | ' |
Change in fair value of investment in and dividends received from affiliate | 165,000 | 314,000 | -68,000 | 630,000 |
Investment Funds | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' |
From affiliates | 1,813,000 | 2,484,000 | 6,060,000 | 9,130,000 |
Mortgage servicing rebate (to) from Investment Funds | -362,000 | 135,000 | -535,000 | -360,000 |
Management fees: | ' | ' | ' | ' |
Management fees | 2,001,000 | 2,442,000 | 5,889,000 | 7,199,000 |
Carried Interest from Investment Funds | $2,812,000 | $3,355,000 | $10,411,000 | $7,254,000 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Class A Common Stock | Additional paid-in capital | Retained earnings | Members' equity | Non-controlling Interest |
In Thousands, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $123,915 | ' | ' | ' | $123,915 | ' |
Capital: | ' | ' | ' | ' | ' | ' |
Contributions | 15,058 | ' | ' | ' | 15,058 | ' |
Redemptions | -6 | ' | ' | ' | -6 | ' |
Distributions | -11,369 | ' | ' | ' | -11,369 | ' |
Unit-based compensation expense | 13,880 | ' | ' | ' | 13,880 | ' |
Net income | 62,903 | ' | ' | ' | 62,903 | ' |
Balance at Sep. 30, 2012 | 204,381 | ' | ' | ' | 204,381 | ' |
Balance at Dec. 31, 2012 | 261,750 | ' | ' | ' | 261,750 | ' |
Capital: | ' | ' | ' | ' | ' | ' |
Distributions | -19,623 | ' | ' | ' | -19,623 | ' |
Unit-based compensation expense | 238 | ' | ' | ' | 238 | ' |
Partner capital issuance costs | -3,745 | ' | ' | ' | -3,745 | ' |
Net income | 76,834 | ' | ' | ' | 76,834 | ' |
Exchange of existing member units to Class A units of Private National Mortgage Acceptance Company, LLC | ' | ' | ' | ' | -315,454 | 315,454 |
Balance post-reorganization | 315,454 | ' | ' | ' | ' | 315,454 |
Issuance of common shares in initial public offering, net of issuance costs | 230,000 | 1 | 229,999 | ' | ' | ' |
Issuance of common shares in initial public offering, net of issuance costs (in shares) | ' | 12,778,000 | ' | ' | ' | ' |
Underwriting and offering costs | -13,486 | ' | -13,290 | ' | ' | -196 |
Dilution assumed with IPO | ' | ' | -127,160 | ' | ' | 127,160 |
Stock-based compensation expense | 2,156 | ' | 891 | ' | ' | 1,265 |
Distributions | -3,395 | ' | ' | ' | ' | -3,395 |
Net income | 58,074 | ' | ' | 7,990 | ' | 50,084 |
Tax related impact to exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc | 1,158 | ' | 1,158 | ' | ' | ' |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. | ' | 1 | 44,886 | ' | ' | -44,887 |
Exchange of Class A units of Private National Mortgage Acceptance Company, LLC to Class A stock of PennyMac Financial Services, Inc. (in shares) | ' | 6,110,000 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $589,961 | $2 | $136,484 | $7,990 | ' | $445,485 |
Balance (in shares) at Sep. 30, 2013 | ' | 18,888,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flow from operating activities: | ' | ' |
Net income | $134,908,000 | $62,903,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Net gain on mortgage loans held for sale at fair value | -108,560,000 | -68,487,000 |
Amortization, impairment and change in fair value of mortgage servicing rights | 16,363,000 | 9,024,000 |
Change in fair value of real estate acquired in settlement of loans | 22,000 | ' |
Stock and unit-based compensation expense | 2,394,000 | 13,880,000 |
Amortization of debt issuance costs and commitment fees relating to financing facilities | 3,714,000 | 1,261,000 |
Depreciation and amortization | 594,000 | 389,000 |
Originations of mortgage loans held for sale | -895,405,000 | -304,402,000 |
Sale and principal payments of mortgage loans held for sale | 13,210,810,000 | 5,112,530,000 |
Increase in servicing advances | -12,192,000 | -12,989,000 |
Increase in prepaid expenses | -9,094,000 | -3,457,000 |
Repurchase of real estate acquired in settlement of loans subject to representations and warranties | -309,000 | ' |
Sale of real estate acquired in settlement of loans subject to representations and warranties | 287,000 | ' |
Decrease (increase) in other assets | 4,087,000 | -2,962,000 |
Increase in accounts payable and accrued expenses | 17,060,000 | 15,695,000 |
Net cash used in operating activities | -68,106,000 | -273,853,000 |
Cash flow from investing activities: | ' | ' |
Net (increase) decrease in short-term investment | -74,323,000 | 12,625,000 |
Purchase of mortgage servicing rights | -5,124,000 | ' |
Sale of mortgage servicing rights | 550,000 | ' |
Purchase of furniture, fixtures, equipment and building improvements | -4,719,000 | -2,495,000 |
Acquisition of capitalized software | -242,000 | -379,000 |
Increase in margin deposits and restricted cash | 5,349,000 | -27,524,000 |
Net cash used in investing activities | -78,509,000 | -17,773,000 |
Cash flow from financing activities: | ' | ' |
Sale of loans under agreements to repurchase | 12,225,201,000 | 4,924,895,000 |
Repurchase of loans sold under agreements to repurchase | -12,230,851,000 | -4,641,117,000 |
Increase in note payable | 3,762,000 | 15,433,000 |
Issuance of excess servicing spread financing | 2,828,000 | ' |
Issuance of common stock | 230,000,000 | ' |
Payment of common stock underwriting and offering costs | -13,486,000 | ' |
Payment by noncontrolling interest of common stock issuance costs | -3,745,000 | ' |
Noncontrolling interest repayments of partners' capital contributions | ' | 15,058,000 |
Noncontrolling interest collection of subscriptions receivable | ' | -6,000 |
Noncontrolling interest distributions | -23,019,000 | -11,368,000 |
Net cash provided by financing activities | 190,690,000 | 302,895,000 |
Net increase in cash | 44,075,000 | 11,269,000 |
Cash at beginning of period | 12,323,000 | 16,465,000 |
Cash at end of period | 56,398,000 | 27,734,000 |
Investment Funds | ' | ' |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Accrual of servicing rebate to affiliates | 535,000 | 360,000 |
Carried Interest from Investment Funds | -10,411,000 | -7,254,000 |
Decrease (increase) in receivable from affiliates | 596,000 | 3,674,000 |
Increase (decrease) in payable to affiliate | -371,000 | 4,821,000 |
PennyMac Mortgage Investment Trust | ' | ' |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Change in fair value of investment | 196,000 | -506,000 |
Purchase from affiliate of mortgage loans held for sale | -12,429,698,000 | -5,111,185,000 |
Decrease (increase) in receivable from affiliates | -1,790,000 | 2,528,000 |
Increase (decrease) in payable to affiliate | $8,158,000 | $10,325,000 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Organization and Basis of Presentation | ' |
Organization and Basis of Presentation | ' |
Note 1—Organization and Basis of Presentation | |
PennyMac Financial Services, Inc. (“PFSI” or the “Company”) was formed as a Delaware corporation on December 31, 2012. Pursuant to a reorganization, the Company became a holding corporation and its sole asset is an equity interest in Private National Mortgage Acceptance Company, LLC (“PennyMac”). The Company is the managing member of PennyMac and operates and controls all of the businesses and affairs of PennyMac subject to the consent rights of other members under certain circumstances and, through PennyMac and its subsidiaries, continues to conduct the business previously conducted by these subsidiaries. | |
PennyMac is a Delaware limited liability company which, through its subsidiaries, engages in mortgage banking and investment management activities. PennyMac’s mortgage banking activities consist of residential mortgage lending (including correspondent lending and retail lending) and loan servicing. The investment management activities and a portion of the loan servicing activities are conducted on behalf of investment vehicles that invest in residential mortgage loans and related assets. PennyMac’s primary wholly-owned subsidiaries are: | |
· PNMAC Capital Management, LLC (“PCM”) — a Delaware limited liability company registered with the Securities and Exchange Commission (“SEC”) as an investment adviser under the Investment Advisers Act of 1940, as amended. PCM enters into investment management agreements with entities that invest in residential mortgage loans and related assets. | |
Presently, PCM has management agreements with PennyMac Mortgage Investment Trust, a publicly held real estate investment trust (“PMT”), and three investment funds: PNMAC Mortgage Opportunity Fund, LLC and PNMAC Mortgage Opportunity Fund, L.P., (the “Master Fund”), both registered under the Investment Company Act of 1940, as amended; and PNMAC Mortgage Opportunity Fund Investors, LLC (collectively, “Investment Funds”). Together, the Investment Funds and PMT are referred to as the “Advised Entities.” | |
· PennyMac Loan Services, LLC (“PLS”) — a Delaware limited liability company that services portfolios of residential mortgage loans on behalf of non-affiliates or the Advised Entities, originates new prime credit quality residential mortgage loans, and engages in other mortgage banking activities for its own account and the account of PMT. | |
PLS is approved as a seller/servicer of mortgage loans by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) and as an issuer of securities guaranteed by the Government National Mortgage Association (“Ginnie Mae”). PLS is a licensed Federal Housing Administration Nonsupervised Title II Lender with the U.S. Department of Housing and Urban Development (“HUD”) and a lender/servicer with the Veterans Administration (“VA”) (each an “Agency” and collectively the “Agencies “). | |
· PNMAC Opportunity Fund Associates, LLC (“PMOFA”) — a Delaware limited liability company and the general partner of the Master Fund. PMOFA is entitled to incentive fees representing allocations of profits (“Carried Interest”) from the Master Fund. | |
Initial Public Offering and Recapitalization | |
On May 14, 2013, PFSI completed an initial public offering (“IPO”) in which it sold approximately 12.8 million shares of its Class A common stock, at a public offering price of $18.00 per share. PFSI received net proceeds of $216.8 million, after deducting net underwriting discounts and commissions, from sales of its shares in the IPO. PFSI used these net proceeds to purchase approximately 12.8 million Class A Units of PennyMac. PFSI operates and controls all of the business and affairs and consolidates the financial results of PennyMac and its subsidiaries. The purchase of 12.8 million Class A Units of PennyMac has been accounted for as a transfer of interests under common control. Accordingly, the accompanying consolidated financial statements reflect a reclassification of members’ equity to noncontrolling interests in the Company of $315.5 million. This amount represents the carrying value in the Company of the existing owners of PennyMac that has been purchased for the Class A Units of PennyMac. | |
Before the IPO, PennyMac completed a reorganization by amending its limited liability company agreement to convert all classes of ownership interests held by its existing owners to a single class of common units. The conversion of existing interests was based on the various interests’ liquidation priorities as specified in PennyMac’s prior limited liability company agreement. In connection with that reorganization, PFSI became the sole managing member of PennyMac. | |
After the completion of the recapitalization and reorganization transactions, PennyMac is a consolidated subsidiary of the Company, accordingly, PennyMac’s consolidated financial statements are the Company’s historical financial statements. The historical consolidated financial statements of PennyMac are reflected herein based on the historical ownership interests of the existing owners of PennyMac. | |
Tax Receivable Agreement | |
As part of the IPO, PFSI entered into an Exchange Agreement with PennyMac’s existing owners whereby the existing owners may exchange their PennyMac units for PFSI stock. Before 2013, PennyMac made an election pursuant to Section 754 of the Internal Revenue Code which remains in effect. An exchange results in a special adjustment for PFSI that may increase PFSI’s tax basis of the assets of PennyMac that otherwise would not have been available. These increases in tax basis may reduce the amount of income tax that PFSI would otherwise be required to pay in the future. These increases in tax basis may also decrease gains (or increase losses) on future dispositions of certain assets to the extent tax basis is allocated to those assets. | |
PFSI entered into a tax receivable agreement with PennyMac’s existing unitholders that will provide for the payment by PFSI to PennyMac exchanged unitholders an amount equal to 85% of the amount of the benefits, if any, that PFSI is deemed to realize as a result of (i) increases in tax basis resulting from exchanges and (ii) certain other tax benefits related to PFSI entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. | |
The term of the tax receivable agreement will continue until all such tax benefits have been utilized or expired, unless PFSI exercises its right to terminate the tax receivable agreement. In the event of termination of the tax receivable agreement, the Company would be required to make an immediate payment equal to the present value of the anticipated future net tax benefits, which upfront payment may be made years in advance of the actual realization of such future benefits. | |
Basis of presentation | |
The Company’s unaudited consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. The information included in this quarterly report on Form 10-Q should be read with the financial statements and accompanying notes included herein. | |
The accompanying unaudited consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2013. | |
Reclassification of previously presented balances | |
Net interest income: | |
Interest expense is presented along with Interest income as a new caption of Net interest income to better reflect our results due to growth in the Company’s portfolio of interest-earning assets. Previously, Interest expenses were included within Total expenses whereby, the balance is presented within Total net revenue during the three and nine months ended September 30, 2013 and 2012. |
Concentration_of_Risk
Concentration of Risk | 9 Months Ended |
Sep. 30, 2013 | |
Concentration of Risk | ' |
Concentration of Risk | ' |
Note 2—Concentration of Risk | |
A substantial portion of the Company’s activities relate to the Advised Entities. Fees charged to these entities (comprised of management fees, loan servicing fees and loan servicing rebates, Carried Interest and fulfillment fees from PMT) totaled 50% and 45% of total net revenues for the quarters ended September 30, 2013 and 2012, respectively, and 48% for both the nine month periods ended September 30, 2013 and 2012. |
Significant_Accounting_Policie
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
Significant Accounting Policies | ' |
Note 3—Significant Accounting Policies | |
The Company’s updated accounting policies are summarized below. | |
Stock-Based Compensation | |
The Company’s 2013 Equity Incentive Plan provides for awards of nonstatutory and incentive stock options (“Stock Options”), time-based restricted stock units, performance-based restricted stock units, stock appreciation rights, performance units and stock grants. The Company estimates the value of the Stock Options, time-based restricted stock units and performance-based restricted stock units awarded with reference to the value of its underlying common stock on the date of the award. Compensation costs are fixed, except for performance-based restricted stock units, at the estimated fair value as of the award date as all grantees are employees and directors of the Company or PennyMac. The Company amortizes the cost of time-based restricted stock unit awards to compensation expense over the vesting period using the graded vesting method. The Company amortizes performance-based restricted stock unit awards on a straight-line basis over the vesting period. Expense relating to awards is included in Compensation in the consolidated statements of income. | |
Income Taxes | |
As a result of the PennyMac recapitalization and reorganization, the Company expects to benefit from amortization and other tax deductions due to an increase in tax basis due to the exchange of PennyMac Class A units. Those deductions will be allocated to the Company and will be taken into account in reporting the Company's taxable income. The Company has entered into an agreement with the unitholders of PennyMac that will provide for the additional payment by the Company to exchanging unitholders of PennyMac equal to 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that PFSI realizes due to (i) increases in tax basis resulting from exchanges of the then-existing unitholders and (ii) certain other tax benefits related to PFSI entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. | |
The Company is subject to federal and state income taxes. Income taxes are provided using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
The effect on deferred taxes of a change in tax rates is recognized as income in the period in which the change occurs. A valuation allowance is established if, in management’s judgment, it is not more likely than not that the deferred tax asset will be realized. | |
The Company recognizes tax benefits relating to its tax positions only if, in the opinion of management, it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this standard is recognized as the largest amount that is greater than 50% likely to be realized upon ultimate settlement with the appropriate taxing authority. The Company will classify any penalties and interest as a component of provision for income taxes. |
Transactions_with_Affiliates
Transactions with Affiliates | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Note 4—Transactions with Affiliates | ||||||||||||||
PennyMac Mortgage Investment Trust | ||||||||||||||
Management Fees | ||||||||||||||
Before February 1, 2013, under a management agreement, PennyMac received from PMT a base management fee. The base management fee was calculated at 1.5% per year of PMT’s shareholders’ equity. The management agreement also provided for a performance incentive fee, which was calculated at 20% per year of the amount by which PMT’s “core earnings,” on a rolling four-quarter basis and before the incentive fee, exceeded an 8% “hurdle rate” as defined in the management agreement. PennyMac did not earn a performance incentive fee before February 1, 2013. | ||||||||||||||
Effective February 1, 2013, the management agreement was amended to provide that: | ||||||||||||||
· The base management fee is calculated quarterly and is equal to the sum of (i) 1.5% per year of PMT’s shareholders’ equity up to $2 billion, (ii) 1.375% per year of shareholders’ equity in excess of $2 billion and up to $5 billion, and (iii) 1.25% per year of PMT’s shareholders’ equity in excess of $5 billion. | ||||||||||||||
· The performance incentive fee is calculated at a defined annualized percentage of the amount by which PMT’s “net income,” on a rolling four-quarter basis and before deducting the incentive fee, exceeds certain levels of return on “equity.” | ||||||||||||||
The performance incentive fee is calculated quarterly and is equal to the sum of: (a) 10% of the amount by which PMT’s net income for the quarter exceeds (i) an 8% return on equity plus the “high watermark,” up to (ii) a 12% return on PMT’s equity; plus (b) 15% of the amount by which PMT’s net income for the quarter exceeds (i) a 12% return on PMT’s equity plus the high watermark, up to (ii) a 16% return on PMT’s equity; plus (c) 20% of the amount by which PMT’s net income for the quarter exceeds a 16% return on equity plus the high watermark. | ||||||||||||||
For the purpose of determining the amount of the performance incentive fee: | ||||||||||||||
“Net income” is defined as net income or loss computed in accordance with U.S. GAAP and certain other non-cash charges determined after discussions between the Company and PMT’s independent trustees and approval by a majority of PMT’s independent trustees. | ||||||||||||||
“Equity” is the weighted average of the issue price per common share of all of PMT’s public offerings, multiplied by the weighted average number of common shares outstanding (including restricted share units) in the four-quarter period. | ||||||||||||||
The “high watermark” starts at zero and is adjusted quarterly. The quarterly adjustment reflects the amount by which the net income (stated as a percentage of return on equity) in that quarter exceeds or falls short of the lesser of 8% and the Fannie Mae Mortgage-Backed Security (“MBS”) yield (the target yield) for such quarter. If the net income is lower than the target yield, the high watermark is increased by the difference. If the net income is higher than the target yield, the high watermark is reduced by the difference. Each time a performance incentive fee is earned, the high watermark returns to zero. As a result, the threshold amounts required for the Company to earn a performance incentive fee are adjusted cumulatively based on the performance of PMT’s net income over (or under) the target yield, until the net income in excess of the target yield exceeds the then-current cumulative high watermark amount, and a performance incentive fee is earned. | ||||||||||||||
The base management fee and the performance incentive fee are both receivable quarterly in arrears. The performance incentive fee may be paid in cash or in PMT’s common shares (subject to a limit of no more than 50% paid in common shares), at PMT’s option. | ||||||||||||||
Following is a summary of the base management and performance incentive fees earned from PMT for the periods presented: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Base management fee | $ | 5,104 | $ | 3,672 | $ | 14,043 | $ | 7,964 | ||||||
Performance incentive fee | 3,435 | — | 9,443 | — | ||||||||||
$ | 8,539 | $ | 3,672 | $ | 23,486 | $ | 7,964 | |||||||
The term of the management agreement, as amended, expires on February 1, 2017, subject to automatic renewal for additional 18-month periods, unless terminated earlier in accordance with the terms of the management agreement. | ||||||||||||||
In the event of termination by PMT, the Company may be entitled to a termination fee in certain circumstances. The termination fee is equal to three times the sum of (a) the average annual base management fee, and (b) the average annual (or, if the period is than 24 months, annualized) performance incentive fee earned by the Company, in each case during the 24-month period before termination. | ||||||||||||||
Mortgage Loan Servicing | ||||||||||||||
The Company has a loan servicing agreement with PMT. Before February 1, 2013, the servicing fee rates were based on the risk characteristics of the mortgage loans serviced and total servicing compensation was established at levels that management believed were competitive with those charged by other servicers or specialty servicers, as applicable. | ||||||||||||||
· Servicing fee rates for nonperforming loans ranged between 50 and 100 basis points per year on the unpaid principal balance of the mortgage loans serviced on PMT’s behalf. PennyMac was also entitled to certain customary market-based fees and charges, including boarding and deboarding fees, liquidation and disposition fees, assumption, modification and origination fees and late charges, as well as interest on funds on deposit in custodial accounts. In the event PennyMac either effected a refinancing of a loan on PMT’s behalf and not through a third party lender and the resulting loan was readily saleable, or originated a loan to facilitate the disposition of real estate that PMT had acquired in settlement of a loan, PennyMac was entitled to receive from PMT market-based fees and compensation. | ||||||||||||||
· For mortgage loans serviced by PMT as a result of acquisitions and sales with servicing rights retained in connection with PMT’s correspondent lending business, PennyMac was entitled to base subservicing fees and other customary market-based fees and charges as described above. | ||||||||||||||
Effective February 1, 2013, the servicing agreement was amended to provide for servicing fees payable to the Company that changed from being based on a percentage of the loan’s unpaid principal balance to fixed per-loan monthly amounts based on the delinquency, bankruptcy and/or foreclosure status of the serviced loan or the real estate acquired in settlement of loans (“REO”). The Company also remains entitled to market-based fees and charges including boarding and deboarding fees, liquidation and disposition fees, assumption, modification and origination fees and late charges relating to loans it services for PMT. | ||||||||||||||
· The base servicing fees for distressed whole loans are calculated based on a monthly per-loan dollar amount, with the actual dollar amount for each loan based on the delinquency, bankruptcy and/or foreclosure status of such loan or the related underlying real estate. Presently, the base servicing fees for distressed whole loans range from $30 per month for current loans up to $125 per month for loans that are severely delinquent and in foreclosure. | ||||||||||||||
· The base servicing fees for non-distressed loans subserviced by the Company on PMT’s behalf are also calculated through a monthly per-loan dollar amount, with the actual dollar amount for each loan based on whether the mortgage loan is a fixed-rate or adjustable-rate loan. The base servicing fees for loans subserviced on PMT’s behalf are $7.50 per month for fixed-rate loans and $8.50 per month for adjustable rate mortgage loans. To the extent that these loans become delinquent, the Company is entitled to an additional servicing fee per loan falling within a range of $10 to $75 per month based on the delinquency, bankruptcy and foreclosure status of the loan or the related underlying real estate. The Company is also entitled to customary ancillary income and certain market-based fees and charges, including boarding and deboarding fees, liquidation and disposition fees, assumption, modification and origination fees. | ||||||||||||||
· The Company is required to provide a range of services and activities significantly greater in scope than the services provided in connection with a customary servicing arrangement because PMT does not have any employees or infrastructure. For these services, the Company receives a supplemental fee of $25 per month for each distressed whole loan and $3.25 per month for each non-distressed subserviced loan. The Company is entitled to reimbursement for all customary, good faith reasonable and necessary out-of-pocket expenses incurred in performance of its servicing obligations. | ||||||||||||||
· The Company, on behalf of PMT, currently participates in the Home Affordable Modification Program (“HAMP”) of the U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (“HUD”) (and other similar mortgage loan modification programs). HAMP establishes standard loan modification guidelines for “at risk” homeowners and provides incentive payments to certain participants, including loan servicers, for achieving modifications and successfully remaining in the program. The loan servicing agreement entitles the Company to retain any incentive payments made to it and to which it is entitled under HAMP; provided, however, that with respect to any such incentive payments paid to the Company under HAMP in connection with a mortgage loan modification for which PMT previously paid the Company a modification fee, the Company shall reimburse PMT an amount equal to the incentive payments. | ||||||||||||||
Following is a summary of mortgage loan servicing fees earned from PMT for the periods presented: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Loan servicing fees: | ||||||||||||||
Base | $ | 7,139 | $ | 3,518 | $ | 19,005 | $ | 9,656 | ||||||
Activity-based | 3,599 | 1,082 | 8,246 | 3,507 | ||||||||||
$ | 10,738 | $ | 4,600 | $ | 27,251 | $ | 13,163 | |||||||
The term of the servicing agreement, as amended, expires on February 1, 2017, subject to automatic renewal for additional 18-month periods, unless terminated earlier in accordance with the terms of the servicing agreement. | ||||||||||||||
Correspondent Lending | ||||||||||||||
Before February 1, 2013, PMT paid PennyMac a fulfillment fee of 50 basis points of the unpaid principal balance of mortgage loans sold to non-affiliates where PMT is approved or licensed to sell to such non-affiliate. Effective February 1, 2013, the mortgage banking and warehouse services agreement provides for a fulfillment fee paid to the Company based on the type of mortgage loan that PMT acquires. The fulfillment fee is equal to a percentage of the unpaid principal balance of mortgage loans purchased by PMT, with the addition of potential fee rate discounts applicable to PMT’s monthly purchase volume in excess of designated thresholds. The Company has also agreed to provide such services exclusively for PMT’s benefit, and the Company and its affiliates are prohibited from providing such services for any other third party. | ||||||||||||||
The Company is entitled to a fulfillment fee based on the type of mortgage loan that PMT acquires and equal to a percentage of the unpaid principal balance of such mortgage loan. Presently, the applicable percentages are (i) 0.50% for conventional mortgage loans, (ii) 0.88% for loans salable in accordance with the Ginnie Mae Mortgage-Backed Securities Guide, (iii) 0.80% for the U.S. Department of the Treasury and HUD’s Home Affordable Refinance Program (“HARP”) mortgage loans with a loan-to-value ratio of 105% or less, (iv) 1.20% for HARP mortgage loans with a loan-to-value ratio of greater than 105%, and (v) 0.50% for all other mortgage loans not contemplated above; provided, however, that the Company may, in its sole discretion, reduce the amount of the applicable fulfillment fee and credit the amount of such reduction to the reimbursement otherwise due as described below. This reduction may only be credited to the reimbursement applicable to the month in which the related mortgage was funded. | ||||||||||||||
In the event that PMT purchases mortgage loans with an unpaid principal balance in any month totaling more than $2.5 billion and less than $5 billion, the Company has agreed to discount the amount of such fulfillment fees by reimbursing PMT an amount equal to the product of (i) 0.025%, (ii) the amount of unpaid principal balance in excess of $2.5 billion and (iii) the percentage of the total unpaid principal balance relating to mortgage loans for which the Company collected fulfillment fees in such month. In the event PMT purchases mortgage loans with an total unpaid principal balance in any month greater than $5 billion, the Company has agreed to further discount the amount of fulfillment fees by reimbursing PMT an amount equal to the product of (i) 0.05%, (ii) the amount of unpaid principal balance in excess of $5 billion and (iii) the percentage of the total unpaid principal balance relating to mortgage loans for which the Company collected fulfillment fees in such month. | ||||||||||||||
PMT does not hold the Ginnie Mae approval required to issue Ginnie Mae MBS and act as a servicer. Accordingly, under the mortgage banking and warehouse services agreement, the Company currently purchases loans salable in accordance with the Ginnie Mae Mortgage-Backed Securities Guide “as is” and without recourse of any kind to PMT at its cost less fees collected by PMT from the seller, plus accrued interest and a sourcing fee of three basis points. | ||||||||||||||
In consideration for the mortgage banking services provided by the Company with respect to PMT’s acquisition of mortgage loans under PLS’s early purchase program, the Company is entitled to fees (i) accruing at a rate equal to $25,000 per year per early purchase facility administered by the Company, and (ii) in the amount of $50 for each mortgage loan PMT acquires. In consideration for the warehouse services provided by the Company with respect to mortgage loans that PMT finances for its warehouse lending clients, with respect to each facility, the Company is entitled to fees (i) accruing at a rate equal to $25,000 per year, and (ii) in the amount of $50 for each mortgage loan that PMT finances thereunder. Where PMT has entered into both an early purchase agreement and a warehouse lending agreement with the same client, the Company shall only be entitled to one $25,000 per year fee and, with respect to any mortgage loan that becomes subject to both such agreements, only one $50 per loan fee. | ||||||||||||||
The term of the mortgage banking and warehouse services agreement expires on February 1, 2017, subject to automatic renewal for additional 18-month periods, unless terminated earlier in accordance with the terms of the agreement. | ||||||||||||||
Following is a summary of correspondent lending activity between the Company and PMT for the periods presented: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Sourcing fees paid | $ | 1,204 | $ | 747 | $ | 3,563 | $ | 1,448 | ||||||
Fulfillment fee revenue | $ | 18,327 | $ | 17,258 | $ | 68,625 | $ | 31,097 | ||||||
Unpaid principal balance of loans fulfilled for PMT | $ | 3,681,771 | $ | 2,488,443 | $ | 12,792,482 | $ | 4,828,117 | ||||||
Fair value of loans purchased from PMT | $ | 4,147,535 | $ | 2,650,097 | $ | 12,429,698 | $ | 5,111,185 | ||||||
Investment Activities | ||||||||||||||
Pursuant to the terms of a mortgage servicing rights (“MSR”) recapture agreement, as amended, if the Company refinances through its retail lending business loans for which PMT previously held the MSRs, the Company is generally required to transfer and convey to one of PMT’s wholly-owned subsidiaries, without cost to PMT, the MSRs with respect to new mortgage loans originated in those refinancings (or, under certain circumstances, other mortgage loans) that have a total unpaid principal balance that is not less than 30% of the total unpaid principal balance of all the loans so originated. Where the fair market value of the aggregate MSRs to be transferred for the applicable month is less than $200,000, the Company may, at its option, pay cash to PMT in an amount equal to such fair market value in lieu of transferring such MSRs. The MSR recapture agreement expires, unless terminated earlier in accordance with the agreement, on February 1, 2017, subject to automatic renewal for additional 18-month periods. The Company recorded MSR recapture totaling $86,000 and $586,000 for the quarter and nine months ended September 30, 2013, respectively, as a component of gain on mortgage loans held for sale. | ||||||||||||||
Pursuant to the terms of a master spread acquisition and MSR servicing agreement, as amended, PMT may acquire from the Company the rights to receive certain excess servicing spread arising from MSRs acquired by the Company, in which case the Company generally would be required to service or subservice the related mortgage loans. The terms of each transaction under the spread acquisition and MSR servicing agreement will be subject to the terms of such agreement as modified and supplemented by the terms of a confirmation executed in connection with such transaction. | ||||||||||||||
Payable to Exchanged Private National Mortgage Acceptance Company, LLC Unitholders Under Tax Receivable Agreement | ||||||||||||||
As discussed in Note 1, the Company entered into a tax receivable agreement with PennyMac’s existing unitholders on the date of the IPO that will provide for the payment by PFSI to PennyMac’s then-existing unitholders an amount equal to 85% of the amount of the benefits, if any, that PFSI is deemed to realize as a result of (i) increases in tax basis resulting from exchanges of the then-existing unitholders and (ii) certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. Based on the PennyMac unitholder exchange during the period, the Company has recorded a $58.6 million liability and has not made a payment under the tax sharing agreement as of September 30, 2013. | ||||||||||||||
Other Transactions | ||||||||||||||
In connection with the IPO of PMT’s common shares on August 4, 2009, the Company entered into an agreement with PMT pursuant to which PMT agreed to reimburse the Company for the $2.9 million payment that it made to the underwriters in such offering (the “Conditional Reimbursement”) if PMT satisfied certain performance measures over a specified period of time. Effective February 1, 2013, PMT amended the terms of the reimbursement agreement to provide for the reimbursement to the Company of the Conditional Reimbursement if PMT is required to pay the Company performance incentive fees under the management agreement at a rate of $10 in reimbursement for every $100 of performance incentive fees earned. The reimbursement of the Conditional Reimbursement is subject to a maximum reimbursement in any particular 12-month period of $1.0 million and the maximum amount that may be reimbursed under the agreement is $2.9 million. The Company received payments from PMT totaling $388,000 and $601,000 during the quarter and nine months ended September 30, 2013, respectively. | ||||||||||||||
In the event the termination fee is payable to the Company under the management agreement and the Company has not received the full amount of the reimbursements and payments under the reimbursement agreement, such amount will be paid in full. The term of the reimbursement agreement expires on February 1, 2019. | ||||||||||||||
PMT reimburses the Company for other expenses, including common overhead expenses incurred on its behalf by the Company, in accordance with the terms of its management agreement. Such amounts are summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Reimbursement of expenses incurred on PMT’s behalf | $ | 1,934 | $ | 555 | $ | 3,767 | $ | 2,420 | ||||||
Reimbursement of common overhead incurred by PCM and its affiliates | 2,552 | 1,244 | 8,359 | 2,474 | ||||||||||
$ | 4,486 | $ | 1,799 | $ | 12,126 | $ | 4,894 | |||||||
Payments and settlements during the period (1) | $ | 29,315 | $ | 12,239 | $ | 94,606 | $ | 28,896 | ||||||
(1) Payments and settlements include payments for management fees and correspondent lending activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT. | ||||||||||||||
Amounts due from PMT are summarized below as of the dates presented: | ||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||
(in thousands) | ||||||||||||||
Management fees | $ | 8,539 | $ | 4,473 | ||||||||||
Servicing fees | 5,152 | 3,670 | ||||||||||||
Underwriting fees | 2,131 | 2,941 | ||||||||||||
Allocated expenses | 4,208 | 1,132 | ||||||||||||
Loan purchases | — | 4,475 | ||||||||||||
$ | 20,030 | $ | 16,691 | |||||||||||
The Company also holds an investment in PMT in the form of 75,000 common shares of beneficial interest as of September 30, 2013 and December 31, 2012. The shares had fair values of $1.7 million and $1.9 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
Investment Funds | ||||||||||||||
Amounts due from the Investment Funds are summarized below for the dates presented: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Receivable from Investment Funds: | ||||||||||||||
Loan servicing fees | $ | 47 | $ | 1,052 | ||||||||||
Loan servicing rebate | (123 | ) | (239 | ) | ||||||||||
Management fees | 2,001 | 2,164 | ||||||||||||
Expense reimbursements | 616 | 695 | ||||||||||||
$ | 2,541 | $ | 3,672 | |||||||||||
Carried Interest due from Investment Funds: | ||||||||||||||
PNMAC Mortgage Opportunity Fund, LLC | $ | 36,357 | $ | 29,785 | ||||||||||
PNMAC Mortgage Opportunity Fund Investors, LLC | 21,777 | 17,938 | ||||||||||||
$ | 58,134 | $ | 47,723 | |||||||||||
Amounts due to the Investment Funds totaling $36.4 million and $36.8 million represent amounts advanced by the Investment Funds to fund servicing advances made by the Company as of September 30, 2013 and December 31, 2012, respectively. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Common Share | ' | |||||||
Earnings Per Common Share | ' | |||||||
Note 5—Earnings Per Common Share | ||||||||
Basic earnings per common share is determined using net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share is determined by dividing net income attributable to common stockholders by the weighted-average of common shares outstanding, assuming all potentially dilutive common shares were issued. | ||||||||
The Company applies the treasury stock method to determine the dilutive weighted-average common shares represented by the unvested restricted stock units and the exchangeable PennyMac Class A units. The diluted earnings per share calculation assumes the exchange of these PennyMac Class A partnership units for shares of common stock. Accordingly, the numerator is also adjusted to include the earnings allocated to the PennyMac Class A units after taking into account the tax effect of such exchange. | ||||||||
The following table summarizes the basic and diluted earnings per share calculations: | ||||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands, except per share amounts) | ||||||||
Basic earnings per share of common stock: | ||||||||
Net income attributable to common stockholders | $ | 5,197 | $ | 7,990 | ||||
Weighted-average shares outstanding | 17,958 | 16,042 | ||||||
Basic earnings per share | $ | 0.29 | $ | 0.5 | ||||
Diluted earnings per share of common stock: | ||||||||
Net income | $ | 5,197 | $ | 7,990 | ||||
Effect of net income attributable to noncontrolling interest, net of tax | 15,685 | 29,595 | ||||||
Diluted net income attributable to common stockholders | $ | 20,882 | $ | 37,585 | ||||
Weighted-average common stock outstanding | 17,958 | 16,042 | ||||||
Dilutive potential exchangeable PennyMac Class A common units to common stock | 57,888 | 59,804 | ||||||
Dilutive potential common stock—issuable under stock-based compensation plans | 30 | 21 | ||||||
Diluted weighted-average common stock outstanding | 75,876 | 75,867 | ||||||
Diluted earnings per share of common stock | $ | 0.28 | $ | 0.5 | ||||
Loan_Sales_and_Servicing_Activ
Loan Sales and Servicing Activities | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Note 6—Loan Sales and Servicing Activities | ||||||||||||||
The Company purchases and sells mortgage loans to the secondary mortgage market without recourse for credit losses. However, the Company maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans. | ||||||||||||||
The following table summarizes cash flows between the Company and transferees upon sale of mortgage loans in transactions where the Company maintains continuing involvement with the mortgage loans (primarily the obligation to service the loans on behalf of the loans’ owners or owners’ agents): | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows: | ||||||||||||||
Sales proceeds | $ | 4,515,106 | $ | 2,654,125 | $ | 13,210,810 | $ | 5,112,530 | ||||||
Servicing fees received | $ | 16,403 | $ | 3,940 | $ | 38,104 | $ | 8,327 | ||||||
Net servicing advances | $ | (717 | ) | $ | 1,009 | $ | (4,375 | ) | $ | 2,191 | ||||
Quarter-end information: | ||||||||||||||
Unpaid principal balance of loans outstanding at period-end | $ | 22,776,613 | $ | 6,444,618 | $ | 22,776,613 | $ | 6,444,618 | ||||||
Loans delinquent 30-89 days | $ | 380,070 | $ | 93,069 | $ | 380,070 | $ | 93,069 | ||||||
Loans delinquent 90 or more days or in foreclosure or bankruptcy | $ | 247,269 | $ | 39,950 | $ | 247,269 | $ | 39,950 | ||||||
The Company’s mortgage servicing portfolio is summarized as follows: | ||||||||||||||
September 30, 2013 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Affiliated entities | $ | — | $ | 29,555,254 | $ | 29,555,254 | ||||||||
Agencies | 21,725,393 | — | 21,725,393 | |||||||||||
Private investors | 1,051,220 | 50,379 | 1,101,599 | |||||||||||
Mortgage loans held for sale | 490,088 | — | 490,088 | |||||||||||
$ | 23,266,701 | $ | 29,605,633 | $ | 52,872,334 | |||||||||
Amount subserviced for the Company | $ | 42,201 | $ | 554,070 | $ | 596,271 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 307,399 | $ | 265,806 | $ | 573,205 | ||||||||
60 days | 85,367 | 114,390 | 199,757 | |||||||||||
90 days or more | 168,468 | 1,422,071 | 1,590,539 | |||||||||||
561,234 | 1,802,267 | 2,363,501 | ||||||||||||
Loans pending foreclosure | 69,889 | 1,611,708 | 1,681,597 | |||||||||||
$ | 631,123 | $ | 3,413,975 | $ | 4,045,098 | |||||||||
Custodial funds managed by the Company (1) | $ | 389,267 | $ | 266,285 | $ | 655,552 | ||||||||
December 31, 2012 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Affiliated entities | $ | — | $ | 16,552,939 | $ | 16,552,939 | ||||||||
Agencies | 9,860,284 | — | 9,860,284 | |||||||||||
Private investors | 1,321,584 | — | 1,321,584 | |||||||||||
Mortgage loans held for sale | 417,742 | — | 417,742 | |||||||||||
$ | 11,599,610 | $ | 16,552,939 | $ | 28,152,549 | |||||||||
Amount subserviced for the Company | $ | 45,562 | $ | 375,818 | $ | 421,380 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 191,884 | $ | 187,653 | $ | 379,537 | ||||||||
60 days | 60,886 | 122,564 | 183,450 | |||||||||||
90 days or more | 112,847 | 851,851 | 964,698 | |||||||||||
365,617 | 1,162,068 | 1,527,685 | ||||||||||||
Loans pending foreclosure | 75,329 | 1,290,687 | 1,366,016 | |||||||||||
$ | 440,946 | $ | 2,452,755 | $ | 2,893,701 | |||||||||
Custodial funds managed by the Company (1) | $ | 263,562 | $ | 150,080 | $ | 413,642 | ||||||||
(1) Borrower and investor custodial cash accounts relate to loans serviced under the servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns interest on custodial funds it manages on behalf of the loans’ investors, which is recorded as part of the interest income in the Company’s consolidated statements of income. | ||||||||||||||
Following is a summary of the geographical distribution of loans included in the Company’s servicing portfolio for the top five and all other states as measured by the total unpaid principal balance: | ||||||||||||||
State | September 30, 2013 | December 31, 2012 | ||||||||||||
(in thousands) | ||||||||||||||
California | $ | 18,952,692 | $ | 10,696,508 | ||||||||||
Virginia | 2,984,671 | * | ||||||||||||
Texas | 2,962,697 | 1,223,382 | ||||||||||||
Florida | 2,395,337 | 1,385,286 | ||||||||||||
Colorado | 2,109,970 | 1,299,295 | ||||||||||||
Washington | * | 1,143,849 | ||||||||||||
All other states | 23,466,967 | 12,404,229 | ||||||||||||
$ | 52,872,334 | $ | 28,152,549 | |||||||||||
* State did not represent a top five state as of the respective date. | ||||||||||||||
Certain of the loans serviced by the Company are subserviced on the Company’s behalf by other mortgage loan servicers. Loans are subserviced for the Company when the loans are secured by property in the State of Massachusetts where the Company is not licensed and a license is required to perform such services, or on a transitional basis for loans where the Company has obtained the rights to service the loans but servicing of the loans has not yet transferred to the Company’s servicing system. |
Netting_of_Financial_Instrumen
Netting of Financial Instruments | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Netting of Financial Instruments | ' | ||||||||||||||||||||||||||
Netting of Financial Instruments | ' | ||||||||||||||||||||||||||
Note 7—Netting of Financial Instruments | |||||||||||||||||||||||||||
The Company uses derivative financial instruments to manage exposure to interest rate risk for the commitments it makes to purchase or originate mortgage loans at specified interest rates (interest rate lock commitments or “IRLCs”), its inventory of mortgage loans held for sale and MSRs. The Company has elected to net derivative asset and liability positions, and cash collateral obtained from (or posted to) its counterparties when subject to an enforceable master netting arrangement. In the event of default, all counterparties are subject to legally enforceable master netting agreements. The derivatives that are not subject to a master netting arrangement are IRLCs. | |||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company was not party to reverse repurchase agreements or securities lending transactions that are required to be disclosed in the following table. | |||||||||||||||||||||||||||
Offsetting of Derivative Assets | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount | Gross | Net | Gross amount | Gross | Net | ||||||||||||||||||||||
of | amount | amount | of | amount | amount | ||||||||||||||||||||||
recognized | offset | of assets in | recognized | offset | of assets | ||||||||||||||||||||||
assets | in the | the | assets | in the | in the | ||||||||||||||||||||||
balance | balance | balance | balance | ||||||||||||||||||||||||
sheet | sheet | sheet | sheet | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Derivatives subject to master netting arrangements: | |||||||||||||||||||||||||||
MBS put options | $ | — | $ | — | $ | — | $ | 967 | $ | — | $ | 967 | |||||||||||||||
Forward purchase contracts | 21,226 | — | 21,226 | 1,645 | — | 1,645 | |||||||||||||||||||||
Forward sale contracts | 505 | — | 505 | 1,818 | — | 1,818 | |||||||||||||||||||||
Netting | — | (19,382 | ) | (19,382 | ) | — | (1,091 | ) | (1,091 | ) | |||||||||||||||||
21,731 | (19,382 | ) | 2,349 | 4,430 | (1,091 | ) | 3,339 | ||||||||||||||||||||
Derivatives not subject to master netting arrangements - IRLCs | 21,717 | — | 21,717 | 23,951 | — | 23,951 | |||||||||||||||||||||
$ | 43,448 | $ | (19,382 | ) | $ | 24,066 | $ | 28,381 | $ | (1,091 | ) | $ | 27,290 | ||||||||||||||
Derivative Assets, Financial Assets, and Collateral Held by Counterparty | |||||||||||||||||||||||||||
The following table summarizes by significant counterparty the amount of derivative asset positions after considering master netting arrangements and financial instruments or cash pledged that do not meet the accounting guidance qualifying for setoff accounting. | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount not offfset in | Gross amount not offset in | ||||||||||||||||||||||||||
the | the | ||||||||||||||||||||||||||
Net amount | consolidated balance sheet | Net amount | consolidated balance sheet | ||||||||||||||||||||||||
of assets | Financial | Cash | Net | of assets | Financial | Cash | Net | ||||||||||||||||||||
in the balance | instruments | collateral | amount | in the balance | instruments | collateral | amount | ||||||||||||||||||||
sheet | received | sheet | received | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Interest rate lock commitments | $ | 21,717 | $ | — | $ | — | $ | 21,717 | $ | 23,951 | $ | — | $ | — | $ | 23,951 | |||||||||||
Nomura | 1,036 | — | — | 1,036 | — | — | — | — | |||||||||||||||||||
Goldman Sachs | 591 | — | — | 591 | — | — | — | — | |||||||||||||||||||
Bank of America, N.A. | — | — | — | — | 1,782 | — | — | 1,782 | |||||||||||||||||||
Citibank, N.A. | — | — | — | — | 522 | — | — | 522 | |||||||||||||||||||
Bank of NY Mellon | — | — | — | — | 311 | — | — | 311 | |||||||||||||||||||
Wells Fargo | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||
Other | 722 | — | — | 722 | 706 | — | — | 706 | |||||||||||||||||||
$ | 24,066 | $ | — | $ | — | $ | 24,066 | $ | 27,290 | $ | — | $ | — | $ | 27,290 | ||||||||||||
Offsetting of Derivative Liabilities and Financial Liabilities | |||||||||||||||||||||||||||
Following is a summary of net derivative liabilities and assets sold under agreements to repurchase. As discussed above, all derivatives with the exception of IRLCs are subject to master netting arrangements. The assets sold under agreements to repurchase do not qualify for setoff accounting. | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross | Gross amount | Net | Gross | Gross amount | Net | ||||||||||||||||||||||
amount of | offset | amount | amount of | offset | amount | ||||||||||||||||||||||
recognized | in the | of liabilities | recognized | in the | of liabilities | ||||||||||||||||||||||
liabilities | consolidated | in the | liabilities | consolidated | in the | ||||||||||||||||||||||
balance | consolidated | balance | consolidated | ||||||||||||||||||||||||
sheet | balance | sheet | balance | ||||||||||||||||||||||||
sheet | sheet | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||
Subject to a master netting arrangement: | |||||||||||||||||||||||||||
Forward purchase contracts | $ | 215 | $ | — | $ | 215 | $ | 389 | $ | — | $ | 389 | |||||||||||||||
Forward sale contracts | 48,069 | — | 48,069 | 1,894 | — | 1,894 | |||||||||||||||||||||
Netting | — | (42,667 | ) | (42,667 | ) | — | (1,785 | ) | (1,785 | ) | |||||||||||||||||
48,284 | (42,667 | ) | 5,617 | 2,283 | (1,785 | ) | 498 | ||||||||||||||||||||
Derivatives not subject to a master netting arrangement - IRLCs | 159 | — | 159 | 11 | — | 11 | |||||||||||||||||||||
Total derivatives | 48,443 | (42,667 | ) | 5,776 | 2,294 | (1,785 | ) | 509 | |||||||||||||||||||
Mortgage loans sold under agreements to repurchase | 387,883 | — | 387,883 | 393,534 | — | 393,534 | |||||||||||||||||||||
$ | 436,326 | $ | (42,667 | ) | $ | 393,659 | $ | 395,828 | $ | (1,785 | ) | $ | 394,043 | ||||||||||||||
Derivative Liabilities, Financial Liabilities, and Collateral Held by Counterparty | |||||||||||||||||||||||||||
The following table summarizes by significant counterparty the amount of derivative liabilities and assets sold under agreements to repurchase after considering master netting arrangements and financial instruments or cash pledged that does not qualify under the accounting guidance for setoff accounting. All assets sold under agreements to repurchase are secured by sufficient collateral or exceed the liability amount recorded on the consolidated balance sheets. | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount | Gross amount | ||||||||||||||||||||||||||
not offset in the | not offset in the | ||||||||||||||||||||||||||
consolidated | consolidated | ||||||||||||||||||||||||||
Net amount of | balance sheet | Net amount of | balance sheet | ||||||||||||||||||||||||
liabilities | Financial | Cash | Net | liabilities | Financial | Cash | Net | ||||||||||||||||||||
in the consolidated | instruments | collateral | amount | in the consolidated | instruments | collateral | amount | ||||||||||||||||||||
balance sheet | pledged | balance sheet | pledged | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Interest rate lock commitments | $ | 159 | $ | — | $ | — | $ | 159 | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||
Bank of America, N.A. | 200,074 | (199,423 | ) | — | 651 | 150,082 | (150,082 | ) | — | — | |||||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | 188,645 | (188,460 | ) | — | 185 | 122,443 | (122,252 | ) | — | 191 | |||||||||||||||||
Daiwa Capital Markets | 1,589 | — | — | 1,589 | 20 | — | — | 20 | |||||||||||||||||||
Morgan Stanley Bank, N.A. | 543 | — | — | 543 | 53 | — | — | 53 | |||||||||||||||||||
Bank of NY Mellon | 524 | — | — | 524 | — | — | — | — | |||||||||||||||||||
Citibank, N.A. | 34 | — | — | 34 | 121,200 | (121,200 | ) | — | — | ||||||||||||||||||
Other | 2,091 | — | — | 2,091 | 234 | — | — | ,234 | |||||||||||||||||||
$ | 393,659 | $ | (387,883 | ) | $ | — | $ | 5,776 | $ | 394,043 | $ | (393,534 | ) | $ | — | $ | 509 | ||||||||||
Fair_Value
Fair Value | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Note 8—Fair Value | ||||||||||||||||||||
The Company’s consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. The application of fair value estimates may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability and whether management has elected to carry the item at its estimated fair value as discussed in the following paragraphs. | ||||||||||||||||||||
Fair Value Accounting Elections | ||||||||||||||||||||
Management identified all of its non-cash financial assets and its originated MSRs relating to loans with initial interest rates of more than 4.5% to be accounted for at estimated fair value so changes in fair value will be reflected in results of operations as they occur and more timely reflect the results of the Company’s performance. The Company’s financial assets subject to this election include the short-term investments and mortgage loans held for sale. | ||||||||||||||||||||
For originated MSRs relating to mortgage loans with initial interest rates of less than or equal to 4.5%, management has concluded that such assets present different risks to the Company than originated MSRs relating to mortgage loans with initial interest rates of more than 4.5% and therefore require a different risk management approach. Management’s risk management efforts relating to these assets are aimed at mainly moderating the effects of non-interest rate risks on fair value, such as the effect of changes in home prices on the assets’ values. Management has identified these assets for accounting using the amortization method. | ||||||||||||||||||||
Management’s risk management efforts in connection with MSRs relating to mortgage loans with initial interest rates of more than 4.5% are aimed at mainly moderating the effects of changes in interest rates on the assets’ values. At times during the nine months ended September 30, 2013, a portion of the IRLCs, the fair value of which typically increases when prepayment speeds increase, were used to moderate the effect of changes in fair value of MSRs, which typically decreases as prepayment speeds increase. | ||||||||||||||||||||
Financial Statement Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
Following is a summary of financial statement items that are measured at estimated fair value on a recurring basis: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investment | $ | 127,487 | $ | — | $ | — | $ | 127,487 | ||||||||||||
Mortgage loans held for sale at fair value | — | 526,063 | 4,185 | 530,248 | ||||||||||||||||
Investment in PMT | 1,701 | — | — | 1,701 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 26,768 | 26,768 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 21,717 | 21,717 | ||||||||||||||||
Forward purchase contracts | — | 21,226 | — | 21,226 | ||||||||||||||||
Forward sales contracts | — | 505 | — | 505 | ||||||||||||||||
Total derivative assets before netting | — | 21,731 | 21,717 | 43,448 | ||||||||||||||||
Netting (1) | — | — | — | (19,382 | ) | |||||||||||||||
Total derivative assets | — | 21,731 | 21,717 | 24,066 | ||||||||||||||||
$ | 129,188 | $ | 547,794 | $ | 52,670 | $ | 710,270 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | — | $ | 2,857 | $ | 2,857 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 159 | 159 | ||||||||||||||||
Forward purchase contracts | — | 215 | — | 215 | ||||||||||||||||
Forward sales contracts | — | 48,069 | — | 48,069 | ||||||||||||||||
Total derivative liabilities before netting | — | 48,284 | 159 | 48,443 | ||||||||||||||||
Netting (1) | — | — | — | (42,667 | ) | |||||||||||||||
Total derivative liabilities | — | 48,284 | 159 | 5,776 | ||||||||||||||||
$ | — | $ | 48,284 | $ | 3,016 | $ | 8,633 | |||||||||||||
(1) Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investment | $ | 53,164 | $ | — | $ | — | $ | 53,164 | ||||||||||||
Mortgage loans held for sale at fair value | — | 448,384 | — | 448,384 | ||||||||||||||||
Investment in PMT | 1,897 | — | — | 1,897 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 19,798 | 19,798 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 23,951 | 23,951 | ||||||||||||||||
Forward purchase contracts | — | 1,645 | — | 1,645 | ||||||||||||||||
Forward sales contracts | — | 1,818 | — | 1,818 | ||||||||||||||||
MBS put options | — | 967 | — | 967 | ||||||||||||||||
Total derivative assets before netting | — | 4,430 | 23,951 | 28,381 | ||||||||||||||||
Netting (1) | — | — | — | (1,091 | ) | |||||||||||||||
Total derivative assets | — | 4,430 | 23,951 | 27,290 | ||||||||||||||||
$ | 55,061 | $ | 452,814 | $ | 43,749 | $ | 550,533 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | — | $ | 11 | $ | 11 | ||||||||||||
Forward purchase contracts | — | 389 | — | 389 | ||||||||||||||||
Forward sales contracts | — | 1,894 | — | 1,894 | ||||||||||||||||
Total derivative liabilities before netting | — | 2,283 | 11 | 2,294 | ||||||||||||||||
Netting (1) | — | — | — | (1,785 | ) | |||||||||||||||
Net derivative liabilities | $ | — | $ | 2,283 | $ | 11 | $ | 509 | ||||||||||||
(1) Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the setoff of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | ||||||||||||||||||||
As shown above, certain of the Company’s mortgage loans held for sale, MSRs at fair value, IRLCs, and excess servicing spread financing at fair value are measured using Level 3 inputs. Following is a roll forward of these items for the quarters and nine month periods ended September 30, 2013 and 2012 where Level 3 significant inputs were used on a recurring basis: | ||||||||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Mortgage servicing | Net interest | Total | |||||||||||||||||
loans held | rights | rate lock | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | 4,525 | $ | 23,070 | $ | (16,210 | ) | $ | 11,385 | |||||||||||
Repayments | (436 | ) | — | — | (436 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | — | 23,788 | 23,788 | ||||||||||||||||
Purchases of MSR | — | 1,116 | — | 1,116 | ||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | — | 4,157 | — | 4,157 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | — | ||||||||||||||||
Other factors | 96 | (1,575 | ) | 10,585 | 9,106 | |||||||||||||||
96 | (1,575 | ) | 10,585 | 9,106 | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | — | 3,395 | 3,395 | ||||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 26,768 | $ | 21,558 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | 16 | $ | (1,575 | ) | $ | 21,558 | |||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2013 | $ | 96 | $ | 21,558 | ||||||||||||||||
(1) For the purpose of this table, the interest rate lock asset and liability positions are shown net. | ||||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Quarter ended September 30, 2012 | ||||||||||||||||||||
Mortgage servicing | Net interest | Total | ||||||||||||||||||
rights | rate lock | |||||||||||||||||||
commitments | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance, June 30, 2012 | $ | 23,449 | $ | 12,710 | $ | 36,159 | ||||||||||||||
Interest rate lock commitments issued, net | — | 48,044 | 48,044 | |||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | 30 | — | 30 | |||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | |||||||||||||||||
Other factors | (2,239 | ) | 128 | (2,111 | ) | |||||||||||||||
(2,239 | ) | 128 | (2,111 | ) | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | (27,449 | ) | (27,449 | ) | |||||||||||||||
Balance, September 30, 2012 | $ | 21,240 | $ | 33,433 | $ | 54,673 | ||||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2012 | $ | (2,239 | ) | $ | 33,433 | |||||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2012 | $ | 33,433 | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Mortgage servicing | Net interest | Total | |||||||||||||||||
loans held | rights | rate lock | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | $ | 19,798 | $ | 23,940 | $ | 43,738 | ||||||||||||
Repurchases | 5,529 | — | — | 5,529 | ||||||||||||||||
Repayments | (1,059 | ) | — | — | (1,059 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | — | 78,722 | 78,722 | ||||||||||||||||
Purchases of MSR | — | 5,124 | — | 5,124 | ||||||||||||||||
Sales of MSR | — | (550 | ) | — | (550 | ) | ||||||||||||||
Servicing received as proceeds from sales of mortgage loans | — | 4,177 | — | 4,177 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | — | ||||||||||||||||
Other factors | (285 | ) | (1,781 | ) | (15,289 | ) | (17,355 | ) | ||||||||||||
(285 | ) | (1,781 | ) | (15,289 | ) | (17,355 | ) | |||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | — | (65,815 | ) | (65,815 | ) | ||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 26,768 | $ | 21,558 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | (344 | ) | $ | (1,781 | ) | $ | 21,558 | ||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2013 | $ | (285 | ) | $ | 21,558 | |||||||||||||||
(1) For the purpose of this table, the interest rate lock asset and liability positions are shown net. | ||||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Mortgage servicing | Net interest | Total | ||||||||||||||||||
rights | rate lock commitments | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance, December 31, 2011 | $ | 25,698 | $ | 7,905 | $ | 33,603 | ||||||||||||||
Interest rate lock commitments issued, net | — | 65,192 | 65,192 | |||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | 772 | — | 772 | |||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | |||||||||||||||||
Other factors | (5,230 | ) | — | (5,230 | ) | |||||||||||||||
(5,230 | ) | — | (5,230 | ) | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | (39,664 | ) | (39,664 | ) | |||||||||||||||
Balance, September 30, 2012 | $ | 21,240 | $ | 33,433 | $ | 54,673 | ||||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2012 | $ | (5,230 | ) | $ | 33,433 | |||||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2012 | $ | 33,433 | ||||||||||||||||||
The information used in the preceding roll forwards represents activity for any financial statement items identified as using Level 3 significant inputs at either the beginning or the end of the periods presented. The Company had no transfers in or out among the levels other than transfers of IRLCs to mortgage loans held for sale at fair value upon funding of the respective mortgage loans. | ||||||||||||||||||||
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value as a result of management’s election of the fair value option are summarized below: | ||||||||||||||||||||
Quarter ended September 30, 2013 | Quarter ended September 30, 2012 | |||||||||||||||||||
Change in fair value of | Net | Total | Change in fair value of | Net | Total | |||||||||||||||
mortgage loans held | servicing | mortgage loans held | servicing | |||||||||||||||||
for sale at fair value | income | for sale at fair value | income | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | (6,060 | ) | $ | — | $ | (6,060 | ) | $ | 56,079 | $ | — | $ | 56,079 | ||||||
Mortgage servicing rights at fair value | — | (1,575 | ) | (1,575 | ) | — | (2,239 | ) | (2,239 | ) | ||||||||||
$ | (6,060 | ) | $ | (1,575 | ) | $ | (7,635 | ) | $ | 56,079 | $ | (2,239 | ) | $ | 53,840 | |||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | ||||||
$ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | |||||||
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | |||||||||||||||||||
Change in fair value of | Net | Total | Change in fair value of | Net | Total | |||||||||||||||
mortgage loans held | servicing | mortgage loans held | servicing | |||||||||||||||||
for sale at fair value | income | for sale at fair value | income | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 12,428 | $ | — | $ | 12,428 | $ | 108,205 | $ | — | $ | 108,205 | ||||||||
Mortgage servicing rights at fair value | — | (1,781 | ) | (1,781 | ) | — | (5,230 | ) | (5,230 | ) | ||||||||||
$ | 12,428 | $ | (1,781 | ) | $ | 10,647 | $ | 108,205 | $ | (5,230 | ) | $ | 102,975 | |||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | ||||||
$ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | |||||||
Following are the fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option as of the dates presented: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair | Principal amount due | Difference | ||||||||||||||||||
value | upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 529,244 | $ | 496,853 | $ | 32,391 | ||||||||||||||
90 or more days delinquent | 1,004 | 1,297 | (293 | ) | ||||||||||||||||
$ | 530,248 | $ | 498,150 | $ | 32,098 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Fair | Principal amount due | Difference | ||||||||||||||||||
value | upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 447,889 | $ | 418,650 | $ | 29,239 | ||||||||||||||
90 or more days delinquent | 495 | 623 | (128 | ) | ||||||||||||||||
$ | 448,384 | $ | 419,273 | $ | 29,111 | |||||||||||||||
Financial Statement Items Measured at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||
Following is a summary of financial statement items that are measured at estimated fair value on a nonrecurring basis as of the dates presented: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 102,116 | $ | 102,116 | ||||||||||||
$ | — | $ | — | $ | 102,116 | $ | 102,116 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 51,180 | $ | 51,180 | ||||||||||||
$ | — | $ | — | $ | 51,180 | $ | 51,180 | |||||||||||||
The following table summarizes the total gains (losses) on assets measured at estimated fair values on a nonrecurring basis: | ||||||||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | (1,164 | ) | $ | (1,000 | ) | $ | (521 | ) | $ | (1,784 | ) | ||||||||
$ | (1,164 | ) | $ | (1,000 | ) | $ | (521 | ) | $ | (1,784 | ) | |||||||||
The Company evaluates its MSRs at lower of amortized cost or fair value for impairment with reference to the assets’ fair values. For purposes of performing its MSR impairment evaluation, the Company stratifies its MSRs at lower of amortized cost or fair value based on the interest rates borne by the mortgage loans underlying the MSRs. Mortgage loans are grouped into note rate pools of 50 basis points for fixed-rate mortgage loans with note rates between 3% and 4.5% and a single pool for mortgage loans with note rates below 3%. MSRs relating to adjustable rate mortgage loans with initial interest rates of 4.5% or less are evaluated in a single pool. If the fair value of MSRs in any of the note rate pools is below the amortized cost of the MSRs for that pool reduced by any existing valuation allowance, those MSRs are impaired. | ||||||||||||||||||||
When MSRs are impaired, the impairment is recognized in current period income and the carrying value of the MSRs is adjusted using a valuation allowance. If the value of the MSRs subsequently increases, the increase in value is recognized in current period income only to the extent of the valuation allowance. | ||||||||||||||||||||
Management periodically reviews the various impairment strata to determine whether the value of the impaired MSRs in a given stratum is likely to recover. When management concludes that recovery of the value is unlikely in the foreseeable future, a write-down of the cost of the MSRs for that note rate pool to its estimated fair value is charged to the valuation allowance. | ||||||||||||||||||||
Fair Value of Financial Instruments Carried at Amortized Cost | ||||||||||||||||||||
The Company’s Cash as well as its Mortgage loans sold under agreements to repurchase, Note payable, Carried Interest due from Investment Funds, and amounts receivable from and payable to the Advised Entities are carried at amortized cost. | ||||||||||||||||||||
Cash is measured using “Level 1” significant inputs. The Company’s borrowings carried at amortized cost do not have active markets or observable inputs and the fair value is measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The Company has classified these financial instruments as “Level 3” financial statement items as of September 30, 2013 and December 31, 2012 due to the lack of current market activity and the Company’s reliance on unobservable inputs to estimate the fair value. | ||||||||||||||||||||
Management has concluded that the carrying value of the Carried Interest due from Investment Funds approximates its fair value as the balance represents the amount distributable to the Company at the balance sheet date assuming liquidation of the Investment Funds. Management has concluded that the estimated fair value of the Note payable approximates the agreements’ carrying value due to the agreements’ short term and variable interest rates. | ||||||||||||||||||||
The Company also carries the receivable from and payable to the Advised Entities at cost. Management has concluded that the estimated fair value of such balances approximates the carrying value due to the short terms of such balances. | ||||||||||||||||||||
Valuation Techniques and Assumptions | ||||||||||||||||||||
Most of the Company’s financial assets are carried at fair value with changes in fair value recognized in current period income. Certain of the Company’s financial assets and all of its MSRs are “Level 3” financial statement items which require the use of significant unobservable inputs in the estimation of the assets’ values. Unobservable inputs reflect the Company’s own assumptions about the factors that market participants use in pricing an asset or liability, and are based on the best information available under the circumstances. | ||||||||||||||||||||
The Company has assigned the responsibility for estimating the fair values of “Level 3” financial statement items to its Financial Analysis and Valuation group (the “FAV group”), which is responsible for valuing and monitoring the Company’s investment portfolios and maintenance of its valuation policies and procedures. | ||||||||||||||||||||
The FAV group reports to the Company’s senior management valuation committee, which oversees and approves the valuations. The FAV group monitors the models used for valuation of the Company’s “Level 3” financial statement items, including the models’ performance versus actual results and reports those results to the Company’s senior management valuation committee. The results developed in the FAV group’s monitoring activities may be used to calibrate subsequent projections used for valuation. | ||||||||||||||||||||
The FAV group is responsible for reporting to the Company’s senior management valuation committee on a monthly basis on the changes in the valuation of the portfolio, including major factors affecting the valuation and any changes in model methods and assumptions. To assess the reasonableness of its valuations, the FAV group presents an analysis of the effect on the valuation of changes to the significant inputs to the models. | ||||||||||||||||||||
Following is a description of the techniques and assumptions used in estimating the fair values of “Level 2” and “Level 3” fair value financial statement items: | ||||||||||||||||||||
Mortgage Loans Held for Sale | ||||||||||||||||||||
Most of the Company’s mortgage loans held for sale at fair value are salable into active markets and are therefore categorized as “Level 2” fair value financial statement items and their fair values are estimated using their quoted market or contracted price or market price equivalent. | ||||||||||||||||||||
Certain of the Company’s mortgage loans may become non-salable into active markets due to identification of a defect by the Company or to the repurchase of a mortgage loan with an identified defect. Because such loans are generally not salable into active mortgage markets, they are classified as “Level 3” financial statement items. The significant unobservable inputs used in the fair value measurement of the Company’s “non-salable” mortgage loans held for sale at fair value are discount rates, home price projections, voluntary prepayment speeds and default speeds. Significant changes in any of those inputs in isolation could result in a significant change to the loans’ fair value measurement. Increases in home price projections are generally accompanied by an increase in voluntary prepayment speeds. | ||||||||||||||||||||
The Company did not hold “Level 3” mortgage loans held for sale before 2013. Following is a quantitative summary of key inputs used in the valuation of “Level 3” mortgage loans held for sale at fair value: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Discount rate | 7.8% - 13.4% | |||||||||||||||||||
-9.20% | ||||||||||||||||||||
Twelve-month projected housing price index change | 6.7% - 7.3% | |||||||||||||||||||
-6.80% | ||||||||||||||||||||
Prepayment speed (1) | 2.1% - 5.6% | |||||||||||||||||||
-4.80% | ||||||||||||||||||||
Total prepayment speed (2) | 3.4% - 5.7% | |||||||||||||||||||
-5.10% | ||||||||||||||||||||
(1) Prepayment speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). | ||||||||||||||||||||
(2) Total prepayment speed is measured using Life Total CPR. | ||||||||||||||||||||
Changes in fair value attributable to changes in instrument-specific credit risk are measured by the change in the respective loan’s delinquency status at period-end from the later of the beginning of the period or acquisition date. | ||||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
The Company categorizes IRLCs as a “Level 3” financial statement item. The Company estimates the fair value of an IRLC based on quoted Agency MBS prices, its estimate of the fair value of the MSRs it expects to receive in the sale of the loans and the probability that the mortgage loan will fund or be purchased as a percentage of the commitment it has made (the “pull-through rate”). | ||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the Company’s IRLCs are the pull-through rate and the MSR component of the Company’s estimate of the value of the mortgage loans it has committed to purchase. Significant changes in the pull-through rate and the MSR component of the IRLCs, in isolation, could result in a significant change in fair value measurement. The financial effects of changes in these assumptions are generally inversely correlated as increasing interest rates have a positive effect on the fair value of the MSR component of IRLC value, but increase the pull-through rate for loans that have decreased in fair value in comparison to the agreed-upon purchase price. | ||||||||||||||||||||
Following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Pull-through rate | 56.6% - 98.0% | 61.6% – 98.1% | ||||||||||||||||||
-78.30% | -79.10% | |||||||||||||||||||
MSR value expressed as: | ||||||||||||||||||||
Servicing fee multiple | 2.1 - 5.0 | 3.2 – 4.2 | ||||||||||||||||||
-4 | -4 | |||||||||||||||||||
Percentage of unpaid principal balance | 0.4% - 2.6% | 0.6% – 2.2% | ||||||||||||||||||
-1.10% | -0.90% | |||||||||||||||||||
The Company estimates the fair value of commitments to sell loans based on quoted MBS prices. The Company estimates the fair value of the MBS options and futures it purchases and sells based on observed interest rate volatilities in the MBS market. | ||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||
MSRs are categorized as “Level 3” fair value financial statement items. The Company uses a discounted cash flow approach to estimate the fair value of MSRs. This approach consists of projecting servicing cash flows discounted at a rate that management believes market participants would use in their determinations of value. The key assumptions used in the estimation of the fair value of MSRs include prepayment rates of the underlying loans, the applicable discount rate or pricing spread, and the cost to service loans. | ||||||||||||||||||||
The results of the estimates of fair value of MSRs are reported to the Company’s senior management valuation committee as part of their review and approval of monthly valuation results. Changes in the fair value of MSRs are included in the consolidated statements of income under the caption Net servicing income — Amortization, impairment and change in estimated fair value of mortgage servicing rights. | ||||||||||||||||||||
Key assumptions used in determining the fair value of MSRs at the time of initial recognition are as follows: | ||||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
Unpaid principal balance of underlying loans | $315,869 | $4,120,962 | $4,217 | $2,485,982 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 30 | 27 | 27 | ||||||||||||||||
Pricing spread (1) | 7.4% - 13.1% | 5.4% - 15.9% | 7.5% - 9.9% | 7.5% - 9.9% | ||||||||||||||||
-9.90% | -8.20% | -7.80% | -9.80% | |||||||||||||||||
Annual total prepayment speed (2) | 8.8% - 17.2% | 8.5% - 14.7% | 8.4% - 9.5% | 8.4% - 9.5% | ||||||||||||||||
-9.20% | -8.80% | -9.20% | -8.40% | |||||||||||||||||
Life (in years) | 3.6 – 7.0 | 2.9 – 6.9 | 6.4 – 6.7 | 6.4 – 6.7 | ||||||||||||||||
-6.9 | -6.7 | -6.4 | -6.7 | |||||||||||||||||
Cost of servicing | $68 – $120 | $68 – $120 | $68 – $100 | $68 – $100 | ||||||||||||||||
($101) | ($104) | ($71) | ($99) | |||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
Unpaid principal balance of underlying loans | $318,066 | $12,350,104 | $17,504 | $4,811,328 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 29 | 28 | 27 | ||||||||||||||||
Pricing spread (1) | 7.4% - 13.1% | 5.4% - 15.9% | 7.5% - 9.9% | 7.5% - 9.9% | ||||||||||||||||
-9.90% | -8.20% | -8.40% | -9.80% | |||||||||||||||||
Annual total prepayment speed (2) | 8.8% - 17.2% | 8.5% - 18.5% | 7.8% - 9.5% | 7.8% - 9.5% | ||||||||||||||||
-9.20% | -8.80% | -8.60% | -8.30% | |||||||||||||||||
Life (in years) | 3.6 – 7.0 | 2.9 – 6.9 | 5.9 – 6.9 | 5.9 – 6.9 | ||||||||||||||||
-6.9 | -6.7 | -6.4 | -6.7 | |||||||||||||||||
Cost of servicing | $68 – $120 | $68 – $120 | $68 – $100 | $68 – $100 | ||||||||||||||||
($101) | ($102) | ($77) | ($99) | |||||||||||||||||
(1) Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | ||||||||||||||||||||
(2) Prepayment speed is measured using CPR. | ||||||||||||||||||||
Following is a quantitative summary of key inputs used in the valuation of the Company’s MSRs at period end and the effect on the estimated fair value from adverse changes in those assumptions (weighted averages are based upon unpaid principal balance): | ||||||||||||||||||||
Purchased MSRs backed by distressed mortgage loans | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Unpaid principal balance of underlying loans and effect on value amounts | ||||||||||||||||||||
in thousands) | ||||||||||||||||||||
Carrying value | $10,125 | — | $12,370 | — | ||||||||||||||||
Unpaid principal balance of underlying loans | $1,051,220 | — | $1,271,478 | — | ||||||||||||||||
Weighted-average note rate | 5.88% | — | 6.01% | — | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 50 | — | 50 | — | ||||||||||||||||
Discount rate | 15.3% – 15.3% | — | 15.3% – 15.3% | — | ||||||||||||||||
-15.30% | — | -15.30% | — | |||||||||||||||||
Effect on value of 5% adverse change | ($252) | — | ($302) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($494) | — | ($590) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($945) | — | ($1,130) | — | ||||||||||||||||
Life (in years) | 4.8 – 4.8 | — | 5.0 – 5.0 | — | ||||||||||||||||
-4.8 | — | -5 | — | |||||||||||||||||
Prepayment speed (1) | 11.7% – 11.7% | — | 10.7% – 10.7% | — | ||||||||||||||||
-11.70% | — | -10.70% | — | |||||||||||||||||
Effect on value of 5% adverse change | ($252) | — | ($273) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($492) | — | ($529) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($951) | — | ($1,040) | — | ||||||||||||||||
Per-loan cost of servicing | $250 – $250 | — | $270 – $270 | — | ||||||||||||||||
($250) | — | ($270) | — | |||||||||||||||||
Effect on value of 5% adverse change | ($223) | — | ($290) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($447) | — | ($580) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($893) | — | ($1,159) | — | ||||||||||||||||
(1) Prepayment speed is measured using Life Voluntary CPR. | ||||||||||||||||||||
All other MSRs | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Unpaid principal balance of underlying loans and | ||||||||||||||||||||
effect on value amounts in thousands) | ||||||||||||||||||||
Carrying value | $16,643 | $226,090 | $7,428 | $89,177 | ||||||||||||||||
Unpaid principal balance of underlying loans | $1,700,612 | $20,024,781 | $1,166,765 | $8,730,686 | ||||||||||||||||
Weighted-average note rate | 4.68% | 3.57% | 5.22% | 3.65% | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 27 | 28 | 26 | 28 | ||||||||||||||||
Pricing spread (1) | 6.4% – 17.5% | 5.4% – 15.9% | 7.5% – 19.5% | 7.5% – 16.5% | ||||||||||||||||
-8.90% | -7.60% | -10.60% | -9.80% | |||||||||||||||||
Effect on value of 5% adverse change | ($303) | ($4,833) | ($113) | ($1,814) | ||||||||||||||||
Effect on value of 10% adverse change | ($596) | ($9,488) | ($222) | ($3,562) | ||||||||||||||||
Effect on value of 20% adverse change | ($1,153) | ($18,303) | ($430) | ($6,870) | ||||||||||||||||
Average life (in years) | 0.2 – 14.4 | 2.6 – 6.9 | 0.2 – 14.4 | 2.5 – 6.9 | ||||||||||||||||
-6.6 | -6.7 | -5 | -6.6 | |||||||||||||||||
Prepayment speed (2) | 8.7% – 72.8% | 8.5% – 16.0% | 9.0% – 84.2% | 8.7% – 28.3% | ||||||||||||||||
-10.60% | -9.00% | -19.20% | -9.20% | |||||||||||||||||
Effect on value of 5% adverse change | ($376) | ($4,696) | ($238) | ($1,751) | ||||||||||||||||
Effect on value of 10% adverse change | ($738) | ($9,238) | ($462) | ($3,446) | ||||||||||||||||
Effect on value of 20% adverse change | ($1,423) | ($17,891) | ($877) | ($6,674) | ||||||||||||||||
Per-loan cost of servicing | $68 – $120 | $68 – $120 | $68 – $140 | $68 – $140 | ||||||||||||||||
($77) | ($102) | ($76) | ($99) | |||||||||||||||||
Effect on value of 5% adverse change | ($150) | ($2,383) | ($77) | ($963) | ||||||||||||||||
Effect on value of 10% adverse change | ($300) | ($4,766) | ($153) | ($1,926) | ||||||||||||||||
Effect on value of 20% adverse change | ($601) | ($9,531) | ($307) | ($3,852) | ||||||||||||||||
(1) Pricing spread represents a margin that is applied to a reference interest rate’s forward curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans and purchased MSRs not backed by pools of distressed mortgage loans. | ||||||||||||||||||||
(2) Prepayment speed is measured using CPR. | ||||||||||||||||||||
The preceding sensitivity analyses are limited in that they were performed at a particular point in time; only contemplate the movements in the indicated variables; do not incorporate changes in the variables in relation to other variables; are subject to the accuracy of various models and assumptions used; and do not incorporate other factors that would affect the Company’s overall financial performance in such scenarios, including operational adjustments made by management to account for changing circumstances. For these reasons, the preceding estimates should not be viewed as an earnings forecast. | ||||||||||||||||||||
Excess Servicing Spread Financing at Fair Value | ||||||||||||||||||||
The Company categorizes excess servicing spread financing as a “Level 3” financial statement item. The Company uses a discounted cash flow approach to estimate the fair value of excess servicing spread financing. The key assumptions used in the fair value estimate of excess servicing spread financing include pricing spread, average life, and prepayment speed. Significant changes to any of those inputs in isolation could result in a significant change in the excess servicing spread financing fair value measurement. Changes in these key assumptions are not necessarily directly related. | ||||||||||||||||||||
Excess servicing spread is generally subject to loss in value when mortgage rates decrease. Decreasing mortgage rates normally encourage increased mortgage refinancing activity. Increased refinancing activity reduces the life of the loans underlying the excess servicing spread, thereby reducing excess servicing spread financing’s value. Reductions in the value of excess servicing spread financing affect income primarily through change in fair value. | ||||||||||||||||||||
Interest expense for excess servicing spread financing is accrued using the interest method based upon the expected income from the excess servicing spread through the expected life of the underlying mortgages. Changes to expected cash flows result in a change in fair value which is recorded in Amortization, impairment and change in estimated fair value of mortgage servicing rights. | ||||||||||||||||||||
Following are the key inputs used in determining the fair value of excess servicing spread financing at the time of initial recognition: | ||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Pricing spread | 6.8 | % | — | |||||||||||||||||
Average life | 6.7 | — | ||||||||||||||||||
Prepayment speed | 9.1 | % | — | |||||||||||||||||
Mortgage_Loans_Held_for_Sale_a
Mortgage Loans Held for Sale at Fair Value | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Note 9—Mortgage Loans Held for Sale at Fair Value | ||||||||
Mortgage loans held for sale at fair value include the following: | ||||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | ||||||||
Conforming | $ | 57,651 | $ | 50,003 | ||||
Government-insured or guaranteed | 468,412 | 398,381 | ||||||
Repurchased mortgage loans | 4,185 | — | ||||||
$ | 530,248 | $ | 448,384 | |||||
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | $ | 522,031 | $ | 438,850 | ||||
Derivative_Instruments
Derivative Instruments | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Note 10—Derivative Instruments | ||||||||||||||||||
The Company is exposed to price risk relative to its mortgage loans held for sale as well as to its IRLCs. The Company bears price risk from the time an IRLC is made to PMT or a loan applicant to the time the mortgage loan is sold. The Company is exposed to loss in value of its IRLCs and mortgage loans held for sale when mortgage rates increase. The Company is also exposed to loss in value of its MSRs when interest rates decrease. | ||||||||||||||||||
The Company engages in interest rate risk management activities in an effort to reduce the variability of earnings caused by changes in market interest rates. To manage this price risk resulting from interest rate risk, the Company uses derivative financial instruments acquired with the intention of moderating the risk that changes in market interest rates will result in unfavorable changes in the value of the Company’s IRLCs, inventory of mortgage loans held for sale and MSRs. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. | ||||||||||||||||||
The Company had the following derivative financial instruments recorded on its consolidated balance sheets: | ||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||
Fair value | Fair value | |||||||||||||||||
Instrument | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||
amount | assets | liabilities | amount | assets | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Free-standing derivatives: | ||||||||||||||||||
Interest rate lock commitments | 1,163,531 | $ | 21,717 | $ | 159 | 1,576,174 | $ | 23,951 | $ | 11 | ||||||||
Forward purchase contracts | 1,580,434 | 21,226 | 215 | 1,021,981 | 1,645 | 389 | ||||||||||||
Forward sales contracts | 3,086,889 | 505 | 48,069 | 2,621,948 | 1,818 | 1,894 | ||||||||||||
MBS put options | — | — | — | 500,000 | 967 | — | ||||||||||||
Total derivatives before netting | 43,448 | 48,443 | 28,381 | 2,294 | ||||||||||||||
Netting | (19,382 | ) | (42,667 | ) | (1,091 | ) | (1,785 | ) | ||||||||||
$ | 24,066 | $ | 5,776 | $ | 27,290 | $ | 509 | |||||||||||
The following table summarizes the activity for derivative contracts used to hedge the Company’s IRLCs and inventory of mortgage loans held for sale at notional value: | ||||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||
Forward purchase contracts | 2,071,590 | 13,386,366 | (13,877,522 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 4,226,940 | 18,727,428 | (19,867,479 | ) | 3,086,889 | |||||||||||||
MBS call options | 625,000 | 300,000 | (925,000 | ) | — | |||||||||||||
MBS put options | 260,000 | 50,000 | (310,000 | ) | — | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Quarter ended September 30, 2012 | ||||||||||||||||||
Forward purchase contracts | 545,175 | 5,707,334 | (5,351,309 | ) | 901,200 | |||||||||||||
Forward sales contracts | 1,522,674 | 8,324,782 | (7,336,268 | ) | 2,511,188 | |||||||||||||
MBS call options | 5,000 | 5,000 | (10,000 | ) | — | |||||||||||||
MBS put options | 210,000 | 512,000 | (387,000 | ) | 335,000 | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Forward purchase contracts | 1,021,981 | 35,012,198 | (34,453,745 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 2,621,948 | 51,199,986 | (50,735,045 | ) | 3,086,889 | |||||||||||||
MBS call options | — | 2,100,000 | (2,100,000 | ) | — | |||||||||||||
MBS put options | 500,000 | 2,210,000 | (2,710,000 | ) | — | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||
Forward purchase contracts | 130,900 | 10,197,428 | (9,427,128 | ) | 901,200 | |||||||||||||
Forward sales contracts | 510,569 | 16,424,121 | (14,423,502 | ) | 2,511,188 | |||||||||||||
MBS call options | 3,000 | 168,000 | (171,000 | ) | — | |||||||||||||
MBS put options | 29,000 | 885,000 | (579,000 | ) | 335,000 | |||||||||||||
The Company recorded net losses on derivative financial instruments used to hedge the Company’s IRLCs and mortgage loans held for sale at fair value totaling $4.6 million and $39.0 million for the quarters ended September 30, 2013 and September 30, 2012, respectively. The Company recorded net gains on derivative financial instruments totaling $101.9 million for the nine months ended September 30, 2013 and net losses totaling $64.5 million for the nine months ended September 30, 2012. Derivative gains and losses are included in Net gains on mortgage loans held for sale at fair value in the Company’s consolidated statements of income. | ||||||||||||||||||
The Company did not record any net gains or losses on derivative financial instruments used as economic hedges of MSRs for the quarter ended September 30, 2013. The Company recorded net losses on derivative financial instruments used as economic hedges of MSRs totaling $1.3 million for the nine months ended September 30, 2013. The derivative losses are included in Amortization, impairment and change in estimated fair value of mortgage servicing rights in the Company’s consolidated statements of income. | ||||||||||||||||||
Mortgage_Servicing_Rights
Mortgage Servicing Rights | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Mortgage Servicing Rights | ' | |||||||||||||
Mortgage Servicing Rights | ' | |||||||||||||
Note 11—Mortgage Servicing Rights | ||||||||||||||
Carried at Fair Value: | ||||||||||||||
The activity in MSRs carried at fair value is as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 23,070 | $ | 23,449 | $ | 19,798 | $ | 25,698 | ||||||
Additions: | ||||||||||||||
Servicing resulting from MSR purchases | 1,116 | — | 5,124 | — | ||||||||||
Servicing resulting from loan sales | 4,157 | 30 | 4,177 | 772 | ||||||||||
Sales | — | — | (550 | ) | — | |||||||||
Change in fair value: | ||||||||||||||
Due to changes in valuation inputs or assumptions used in valuation model (1) | (635 | ) | (882 | ) | 1,233 | (1,218 | ) | |||||||
Other changes in fair value (2) | (940 | ) | (1,357 | ) | (3,014 | ) | (4,012 | ) | ||||||
Total change in fair value | (1,575 | ) | (2,239 | ) | (1,781 | ) | (5,230 | ) | ||||||
Balance at end of period | $ | 26,768 | $ | 21,240 | $ | 26,768 | $ | 21,240 | ||||||
(1) Principally reflects changes in discount rates and prepayment speed assumptions, primarily due to changes in interest rates. | ||||||||||||||
(2) Represents changes due to realization of cash flows. | ||||||||||||||
Carried at Lower of Amortized Cost or Fair Value: | ||||||||||||||
The activity in MSRs carried at the lower of amortized cost or fair value is summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 179,003 | $ | 30,305 | $ | 92,155 | $ | 6,496 | ||||||
Additions: | ||||||||||||||
Servicing resulting from loan sales | 55,981 | 25,590 | 150,175 | 50,234 | ||||||||||
Amortization | (5,367 | ) | (1,127 | ) | (12,713 | ) | (1,962 | ) | ||||||
Application of valuation allowance to write down MSRs with other-than-temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | 229,617 | 54,768 | 229,617 | 54,768 | ||||||||||
Valuation allowance for impairment of MSRs: | ||||||||||||||
Balance at beginning of period | (2,335 | ) | (854 | ) | (2,978 | ) | (70 | ) | ||||||
Additions | (1,192 | ) | (1,000 | ) | (549 | ) | (1,784 | ) | ||||||
Application of valuation allowance to write down MSRs with other-than-temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | (3,527 | ) | (1,854 | ) | (3,527 | ) | (1,854 | ) | ||||||
MSRs, net | $ | 226,090 | $ | 52,914 | $ | 226,090 | $ | 52,914 | ||||||
Estimated fair value of MSRs at end of period | $ | 239,326 | $ | 53,419 | $ | 239,326 | $ | 53,419 | ||||||
The following table summarizes the Company’s estimate of future amortization of its existing MSRs. This projection was developed using the assumptions made by management in its September 30, 2013 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. | ||||||||||||||
Estimated MSR | ||||||||||||||
12-month period ending September 30, | amortization | |||||||||||||
(in thousands) | ||||||||||||||
2014 | $ | 22,633 | ||||||||||||
2015 | 21,637 | |||||||||||||
2016 | 20,658 | |||||||||||||
2017 | 19,910 | |||||||||||||
2018 | 18,859 | |||||||||||||
Thereafter | 125,920 | |||||||||||||
Total | $ | 229,617 | ||||||||||||
Servicing fees relating to MSRs are recorded in Net servicing income—Loan servicing fees—From non-affiliates on the consolidated statements of income; late charges, ancillary and other fees are recorded in Net servicing income—Loan servicing fees—Ancillary and other fees on the consolidated statements of income and are summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Contractual servicing fees | $ | 14,596 | $ | 2,154 | $ | 35,397 | $ | 8,776 | ||||||
Late charges | 527 | 209 | 1,336 | 682 | ||||||||||
Ancillary and other fees | 140 | 72 | 374 | 194 | ||||||||||
$ | 15,263 | $ | 2,435 | $ | 37,107 | $ | 9,652 | |||||||
Carried_Interest_Due_from_Inve
Carried Interest Due from Investment Funds | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Note 12—Carried Interest Due from Investment Funds | ||||||||||||||
The activity in the Company’s Carried Interest due from Investment Funds is summarized as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 55,322 | $ | 41,149 | $ | 47,723 | $ | 37,250 | ||||||
Carried Interest recognized during the period | 2,812 | 3,355 | 10,411 | 7,254 | ||||||||||
Proceeds received during the period | — | — | — | — | ||||||||||
Balance at end of period | $ | 58,134 | $ | 44,504 | $ | 58,134 | $ | 44,504 | ||||||
The amount of the Carried Interest received by the Company depends on the Investment Funds’ future performance. As a result, the amount of Carried Interest recorded by the Company at period end is subject to adjustment based on future results of the Investment Funds and may be reduced in future periods. However, the Company is not required to pay guaranteed returns to the Investment Funds and the amount of Carried Interest will only be reduced to the extent of amounts previously recognized. | ||||||||||||||
Management expects the Carried Interest to be collected by the Company when the Investment Funds liquidate. The investment period for the Investment Funds ended on December 31, 2011. The Investment Funds will continue in existence through December 31, 2016, subject to three one-year extensions by PCM at its discretion as specified in the limited liability company and limited partnership agreements that govern the Investment Funds. |
Investment_in_PennyMac_Mortgag
Investment in PennyMac Mortgage Investment Trust at Fair Value | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Note 13—Investment in PennyMac Mortgage Investment Trust at Fair Value | ||||||||||||||
Following is a summary of Change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Dividends | $ | 43 | $ | 41 | $ | 128 | $ | 124 | ||||||
Change in fair value | 122 | 273 | (196 | ) | 506 | |||||||||
$ | 165 | $ | 314 | $ | (68 | ) | $ | 630 | ||||||
Fair value of PMT shares at period end | $ | 1,701 | $ | 1,753 | $ | 1,701 | $ | 1,753 | ||||||
Borrowings
Borrowings | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Borrowings | ' | |||||||||||||
Borrowings | ' | |||||||||||||
Note 14—Borrowings | ||||||||||||||
As of September 30, 2013, the Company maintained four borrowing facilities: three facilities that provide for sales of mortgage loans under agreements to repurchase; and one note payable secured by MSRs and servicing advances made relating to loans in the Company’s loan servicing portfolio. | ||||||||||||||
Mortgage Loans Sold Under Agreement to Repurchase | ||||||||||||||
The borrowing facilities secured by mortgage loans held for sale are in the form of loan sale and repurchase agreements. Eligible loans are sold under advance rates based on the loan type. Interest is charged at a rate based on the buyer’s overnight cost-of funds rate for one agreement and based on LIBOR for the other two agreements. Loans sold under these agreements may be re-pledged by the lenders. | ||||||||||||||
Financial data pertaining to mortgage loans sold under agreements to repurchase are as follows: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(dollar amounts in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Balance | $ | 387,883 | $ | 361,478 | $ | 387,883 | $ | 361,478 | ||||||
Unused amount (1) | $ | 612,117 | $ | 88,522 | $ | 612,117 | $ | 88,522 | ||||||
Weighted-average interest rate | 1.82 | % | 2.38 | % | 1.82 | % | 2.38 | % | ||||||
Fair value of loans securing agreements to repurchase | $ | 522,031 | $ | 408,415 | $ | 522,031 | $ | 408,415 | ||||||
During the period: | ||||||||||||||
Average balance of loans sold under agreements to repurchase | $ | 373,386 | $ | 219,047 | $ | 354,125 | $ | 146,425 | ||||||
Weighted-average interest rate (2) | 1.89 | % | 2.23 | % | 2.02 | % | 2.18 | % | ||||||
Total interest expense | $ | 2,920 | $ | 1,682 | $ | 8,251 | $ | 3,583 | ||||||
Maximum daily amount outstanding | $ | 588,494 | $ | 361,588 | $ | 623,523 | $ | 361,588 | ||||||
(1) The amount the Company is able to borrow under loan repurchase agreements is tied to the fair value of unencumbered mortgage loans eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the mortgage loans sold. | ||||||||||||||
(2) Excludes the effect of amortization of commitment fees totaling $1.1 million and $423,000 for the quarters ended September 30, 2013 and September 30, 2012, respectively, and $2.8 million and $1.1 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. | ||||||||||||||
Following is a summary of maturities of outstanding advances under repurchase agreements by maturity date: | ||||||||||||||
Remaining maturity at September 30, 2013 | Balance | |||||||||||||
(in thousands) | ||||||||||||||
Within 30 days | $ | 423 | ||||||||||||
Over 30 to 90 days | 387,460 | |||||||||||||
Over 90 days to 180 days | — | |||||||||||||
Over 180 days to 1 year | — | |||||||||||||
$ | 387,883 | |||||||||||||
Weighted-average maturity (in months) | 2.6 | |||||||||||||
The amount at risk (the fair value of the assets pledged plus the related margin deposit, less the amount advanced by the counterparty and accrued interest) relating to the Company’s mortgage loans held for sale sold under agreements to repurchase is summarized by counterparty below as of September 30, 2013: | ||||||||||||||
Counterparty | Amount at risk | Weighted-average | Facility maturity | |||||||||||
maturity of advances under | ||||||||||||||
repurchase agreement | ||||||||||||||
(in thousands) | ||||||||||||||
Bank of America, N.A. | $ | 45,516 | December 16, 2013 | January 2, 2014 | ||||||||||
Credit Suisse First Boston Mortgage Capital LLC | $ | 89,917 | December 18, 2013 | -1 | ||||||||||
(1) The earlier to occur of October 31, 2014 or the rolling maturity date that is 364 days from any particular date of determination. | ||||||||||||||
The Company is subject to margin calls during the period the agreements are outstanding and therefore may be required to repay a portion of the borrowings before the respective agreements mature if the value (as determined by the applicable lender) of the mortgage loans securing those agreements decreases. As of September 30, 2013, the Company had $1.5 million on deposit with its mortgage loan repurchase agreement counterparties. Such amounts are included in Other assets on the consolidated balance sheets. | ||||||||||||||
Excess Servicing Spread Financing | ||||||||||||||
In August 2013, the Company acquired MSRs on a pool of agency residential mortgage loans. In connection with such acquisition, the Company, in September 2013, sold to PMT the right to receive the excess cash flow generated from the related mortgage loans after receipt of a fixed base servicing fee per loan. The Company retained all ancillary income associated with servicing the loans and the fixed base servicing fee. The Company continues to be the servicer of the loan pool and provides all servicing and advancing functions. PMT has no prior or continuing involvement with the loans. The Company accounts for the transaction as a financing and the total proceeds received was $2.8 million. | ||||||||||||||
The carrying amount of the financing was $2.9 million at September 30, 2013. | ||||||||||||||
Note Payable | ||||||||||||||
The note payable is summarized below: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Note payable secured by: | ||||||||||||||
Servicing advances | $ | 3,823 | $ | 4,905 | ||||||||||
MSRs | 52,952 | 48,108 | ||||||||||||
$ | 56,775 | $ | 53,013 | |||||||||||
Assets pledged to secure note: | ||||||||||||||
Servicing advances | $ | 6,865 | $ | 7,430 | ||||||||||
MSRs | $ | 226,588 | $ | 100,957 | ||||||||||
The note payable matures on the earlier to occur of October 31, 2014 or the rolling maturity date that is 364 days from any particular date of determination. Interest is charged at a rate based on the lender’s overnight cost of funds. The note payable is secured by servicing advances and MSRs relating to certain loans in the Company’s servicing portfolio, and provides for advance rates ranging from 50% to 85% of the amount of the servicing advances or the carrying value of the MSR pledged, up to a maximum of $17 million in the case of servicing advances and $100 million in the case of MSRs. | ||||||||||||||
The borrowing facilities contain various covenants, including financial covenants governing the Company’s net worth, debt-to-equity ratio, profitability and liquidity. Management believes the Company was in compliance with these requirements as of September 30, 2013. |
Liability_for_Losses_Under_Rep
Liability for Losses Under Representations and Warranties | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Note 15—Liability for Losses Under Representations and Warranties | ||||||||||||||
The Company’s agreements with Fannie Mae and Freddie Mac include representations and warranties related to the loans the Company sells to those Agencies. The representations and warranties require adherence to Agency origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. | ||||||||||||||
In the event of a breach of its representations and warranties, the Company may be required to either repurchase the mortgage loans with the identified defects or indemnify the investor or insurer. In such cases, the Company bears any subsequent credit loss on the mortgage loans. The Company’s credit loss may be reduced by any recourse it has to correspondent lenders that, in turn, had sold such mortgage loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from the correspondent lender. | ||||||||||||||
The Company records a provision for losses relating to the representations and warranties it makes as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of estimated future defaults, loan repurchase rates, the potential severity of loss in the event of defaults and, for loans purchased from correspondent lenders, the probability of reimbursement by the correspondent lenders. The Company establishes a liability at the time loans are sold and continually updates its liability estimate. | ||||||||||||||
Following is a summary of the Company’s liability for representations and warranties: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 6,185 | $ | 1,387 | $ | 3,504 | $ | 449 | ||||||
Provisions for losses on loans sold | 1,069 | 918 | 3,766 | 1,856 | ||||||||||
Incurred losses | (39 | ) | — | (55 | ) | — | ||||||||
Balance at end of period | $ | 7,215 | $ | 2,305 | $ | 7,215 | $ | 2,305 | ||||||
Unpaid principal balance of mortgage loans subject to representations and warranties | $ | 20,428,213 | $ | 6,444,618 | $ | 20,428,213 | $ | 6,444,618 | ||||||
Following is a summary of the Company’s repurchase activity: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
During the period: | ||||||||||||||
Unpaid balance of mortgage loans repurchased | $ | 1,973 | $ | — | $ | 6,840 | $ | — | ||||||
Unpaid principal balance of mortgage loans put to correspondent lenders | $ | 357 | $ | — | $ | 1,410 | $ | — | ||||||
At period end: | ||||||||||||||
Unpaid principal balance of mortgage loans subject to pending claims for repurchase | $ | 1,249 | $ | 3,459 | $ | 1,249 | $ | 3,459 | ||||||
The Company’s representations and warranties are generally not subject to stated limits of exposure. However, management believes that the current unpaid principal balance of loans sold by the Company to date represents the maximum exposure to repurchases related to representations and warranties. | ||||||||||||||
The level of the liability for representations and warranties is difficult to estimate and requires considerable management judgment. The level of mortgage loan repurchase losses is dependent on economic factors, investor demand strategies, and other external conditions that will change over the lives of the underlying loans. However, management believes the amount and range of reasonably possible losses in relation to the recorded liability is not material to the Company’s financial condition or results of operations. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
Note 16—Income Taxes | ||||||||
The Company files U.S. federal and state corporate income tax returns for PFSI and partnership return for PennyMac. Before the IPO, the Company did not have a provision for income taxes as PennyMac is a pass-through taxable entity. PFSI’s tax returns are subject to examination for 2012 and forward. In March 2013, the IRS concluded its audit of the partnership return of PennyMac and its subsidiaries for the tax year ended December 31, 2010 and proposed no changes to the return as originally filed. No returns are currently under examination. PennyMac’s federal partnership returns are subject to examination for 2011 and forward. PennyMac’s primary state tax return is generally subject to examination for 2009 and forward. | ||||||||
The following table details the Company’s income tax expense (benefit). | ||||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands) | ||||||||
Current expense: | ||||||||
Federal | $ | — | $ | — | ||||
State | — | — | ||||||
Total current expense | — | — | ||||||
Deferred expense: | ||||||||
Federal | 2,823 | 4,339 | ||||||
State | 670 | 1,192 | ||||||
Total deferred expense | 3,493 | 5,531 | ||||||
Total provision for income taxes | $ | 3,493 | $ | 5,531 | ||||
The provision for deferred income taxes for the quarter and nine months ended September 30, 2013 primarily relates to its investment in PennyMac partially offset by a net operating loss carryforward. The portion attributable to its investment in PennyMac primarily relates to MSRs that PennyMac received pursuant to sales of mortgage loans held for sale at fair value and Carried Interest from the Investment Funds. | ||||||||
The following table is a reconciliation of the Company’s provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate: | ||||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Federal income tax statutory rate | 35 | % | 35 | % | ||||
Less: Rate attributable to non-controlling members | (26.3 | )% | (31.6 | )% | ||||
State income taxes, net of federal benefit | 1.2 | % | 0.6 | % | ||||
Other | 0 | % | 0 | % | ||||
Valuation allowance | 0 | % | 0 | % | ||||
Effective tax rate | 9.9 | % | 4 | % | ||||
The components of the Company’s provision for deferred income taxes are as follows: | ||||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands) | ||||||||
Investment in PennyMac | $ | 5,491 | $ | 7,762 | ||||
Net operating loss carryforward | (1,998 | ) | (2,231 | ) | ||||
Other | — | — | ||||||
Valuation allowance | — | — | ||||||
Total provision for deferred income taxes | $ | 3,493 | $ | 5,531 | ||||
The components of Deferred tax asset are as follows: | ||||||||
September 30, 2013 | ||||||||
(in thousands) | ||||||||
Taxes currently receivable | $ | 7 | ||||||
Deferred income tax asset, net | 54,523 | |||||||
Deferred tax asset | $ | 54,530 | ||||||
The tax effects of temporary differences that gave rise to deferred income tax assets and liabilities are presented below: | ||||||||
September 30, 2013 | ||||||||
(in thousands) | ||||||||
Deferred income tax assets: | ||||||||
Investment in PennyMac | $ | 52,292 | ||||||
Net operating loss carryforward | $ | 2,231 | ||||||
Other | — | |||||||
Gross deferred tax assets | 54,523 | |||||||
Deferred income tax liabilities: | ||||||||
Other | — | |||||||
Gross deferred tax liabilities | — | |||||||
Net deferred income tax asset | $ | 54,523 | ||||||
The Company’s deferred income tax is recorded in Deferred tax asset in the consolidated balance sheets as of September 30, 2013. There was no income tax asset or liability as of December 31, 2012 since PennyMac is a pass-through taxable entity and PFSI had no activity in 2012. Increases in deferred tax assets are primarily due to the increase in the Company’s ownership of PennyMac as a result of a member exchanging its PennyMac Class A units for PFSI stock. As existing members exchange their units, the Company records a deferred tax asset related to PennyMac’s election pursuant to Section 754 of the Internal Revenue Code. The investment in PennyMac deferred tax asset is reflected net of the investment in PennyMac deferred tax liabilities primarily related to deferred income from MSRs and accrued Carried Interest from the Investment Funds. | ||||||||
The Company’s net operating loss carryforward of $2.2 million generally expires in 2033. | ||||||||
At September 30, 2013 and December 31, 2012, the Company had no unrecognized tax benefits and does not anticipate any increase in unrecognized tax benefits. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is the Company’s policy to record such accruals in the Company’s income tax accounts. No such accruals existed at September 30, 2013 and December 31, 2012. |
Stockholders_Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity. | ' |
Stockholders' Equity | ' |
Note 17—Stockholders’ Equity | |
During the quarter ended September 30, 2013, a PennyMac unitholder exchanged 6,110,000 Class A Units for PFSI Class A common stock. The impact of the exchange reduced the percentage of the Noncontrolling interest in Private National Mortgage Acceptance Company, LLC from 83.16% to 75.11%. |
Net_Gain_on_Mortgage_Loans_Hel
Net Gain on Mortgage Loans Held for Sale | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Gain on Mortgage Loans Held for Sale | ' | |||||||||||||
Net Gain on Mortgage Loans Held for Sale | ' | |||||||||||||
Note 18—Net Gain on Mortgage Loans Held for Sale | ||||||||||||||
Net gain on mortgage loans held for sale at fair value is summarized below: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Cash (loss) gain: | ||||||||||||||
Sales proceeds | $ | (93,725 | ) | $ | 26,676 | $ | (148,866 | ) | $ | 49,695 | ||||
Hedging activities | 88,789 | (19,574 | ) | 128,670 | (40,276 | ) | ||||||||
(4,936 | ) | 7,102 | (20,196 | ) | 9,419 | |||||||||
Non-cash gain: | ||||||||||||||
Receipt of MSRs in loan sale transactions | 60,137 | 25,620 | 154,352 | 51,006 | ||||||||||
MSR recapture payable to affiliate | (86 | ) | — | (586 | ) | — | ||||||||
Provision for losses relating to representations and warranties provided in loan sales | (1,069 | ) | (918 | ) | (3,766 | ) | (1,856 | ) | ||||||
Change in fair value relating to loans and hedging derivatives held at period end: | ||||||||||||||
IRLCs | 37,768 | 20,723 | (2,382 | ) | 25,528 | |||||||||
Mortgage loans | 27,510 | 6,693 | 7,876 | 8,636 | ||||||||||
Hedging derivatives | (93,375 | ) | (19,460 | ) | (26,738 | ) | (24,246 | ) | ||||||
$ | 25,949 | $ | 39,760 | $ | 108,560 | $ | 68,487 |
Net_Interest_Income_Expense
Net Interest Income (Expense) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Interest Income (Expense) | ' | |||||||||||||
Net Interest Income (Expense) | ' | |||||||||||||
Note 19—Net Interest Income (Expense) | ||||||||||||||
Net interest income (expense) is summarized for the periods presented below: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Interest income: | ||||||||||||||
Short-term investments | $ | 432 | $ | 11 | $ | 635 | $ | 54 | ||||||
Mortgage loans at fair value | 4,661 | 1,903 | 10,675 | 4,437 | ||||||||||
5,093 | 1,914 | 11,310 | 4,491 | |||||||||||
Interest expense: | ||||||||||||||
Assets sold under agreements to repurchase | 2,920 | 1,682 | 8,251 | 3,583 | ||||||||||
Note payable | 681 | 281 | 2,326 | 645 | ||||||||||
Other | 555 | 79 | 1,109 | (2 | ) | |||||||||
4,156 | 2,042 | 11,686 | 4,226 | |||||||||||
Net interest income (expense) | $ | 937 | $ | (128 | ) | $ | (376 | ) | $ | 265 |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Note 20—Stock-Based Compensation | ||||||||||||||
The Company’s 2013 Equity Incentive Plan provides for grants of stock options, time-based and performance-based restricted stock units (“RSUs”), stock appreciation rights, performance units and stock grants. As of September 30, 2013, the Company has 120.2 million units available for future awards. The Company estimates the cost of the stock options, time-based restricted stock units and performance-based restricted stock units awarded with reference to the fair value of PFSI’s underlying common stock on the date of the award. The Company amortizes the cost of previously granted stock-based awards to compensation expense over the vesting period using the graded vesting method. Compensation costs are fixed, except for the performance-based restricted stock units, at the grant’s estimated fair value on the grant date as all grantees are employees and directors of the Company. Expense relating to awards is included in Compensation in the consolidated statements of income. | ||||||||||||||
Following is a summary of the stock-based compensation expense by instrument awarded for the periods presented: | ||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | $ | 593 | $ | — | $ | 791 | $ | — | ||||||
Performance-based RSUs | 464 | — | 746 | — | ||||||||||
Time-based RSUs | 330 | — | 395 | — | ||||||||||
$ | 1,387 | $ | — | $ | 1,932 | $ | — | |||||||
Stock Options | ||||||||||||||
The Stock Option award agreements provide for the award of Stock Options to purchase the optioned common stock. In general, and except as otherwise provided by the agreement, one-third of the optioned common stock will vest in a lump sum on each of the first, second, and third anniversaries of the grant date, subject to the recipient’s continued service through each anniversary. Each Stock Option will have a term of ten years from the date of grant but will expire (1) immediately upon termination of the holder’s employment or other association with the Company for cause, (2) one year after the holder’s employment or other association is terminated due to death or disability and (3) three months after the holder’s employment or other association is terminated for any other reason. | ||||||||||||||
The fair value of each Stock Option award is estimated on the date of grant using a variant of the Black Scholes model based on the assumptions noted in the following table: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Expected volatility (1) | — | 45% | ||||||||||||
Expected dividends | — | 0% | ||||||||||||
Risk-free rate | — | 0.03% - 2.30% | ||||||||||||
Annualized grantee forfeiture rate | — | 6.2% - 19.2% | ||||||||||||
(1) Based on historical volatilities of comparable companies’ common stock. | ||||||||||||||
The Company uses its historical data to estimate employee departure behavior used in the option-pricing model; groups of employees (executives and non-executives) that have similar historical behavior are considered separately for valuation purposes. The expected term of common stock options granted is derived from the option pricing model and represents the period of time that common stock options granted are expected to be outstanding. The risk-free rate for periods within the contractual term of the common stock option is based on the U.S. Treasury yield curve in effect at the time of grant. | ||||||||||||||
The table below summarizes stock option award activity and compensation expense for the periods presented: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of Stock Options | ||||||||||||||
Outstanding at beginning of period | 423,407 | — | ||||||||||||
Granted | — | 423,407 | ||||||||||||
Exercised | — | — | ||||||||||||
Expired or canceled | 253 | 253 | ||||||||||||
Outstanding at end of period | 423,154 | 423,154 | ||||||||||||
Weighted-average exercise price: | ||||||||||||||
Outstanding at beginning of period | $ | 21.03 | $ | — | ||||||||||
Granted | — | 21.03 | ||||||||||||
Exercised | — | — | ||||||||||||
Expired or canceled | 21.03 | 21.03 | ||||||||||||
Outstanding at end of period | $ | 21.03 | $ | 21.03 | ||||||||||
Exercisable at end of period | — | — | ||||||||||||
Available for future grant | — | — | ||||||||||||
Weighted-average remaining contractual term (in years): | ||||||||||||||
Outstanding at end of period | 9.7 | — | ||||||||||||
Exercisable at end of period | — | — | ||||||||||||
Aggregate intrinsic value: | ||||||||||||||
Outstanding at end of period | $ | — | $ | — | ||||||||||
Exercisable at end of period | $ | — | $ | — | ||||||||||
Time-Based RSUs | ||||||||||||||
The RSU grant agreements provide for the award of time-based RSUs, for each RSU, entitling the award recipient to one share of the Company’s Class A common stock. One-third of all time-based RSUs vest in a lump sum on each of the first, second, and third anniversaries of the vesting commencement date, subject to the recipient’s continued service through each anniversary. | ||||||||||||||
Compensation cost relating to time-based RSUs is based on the fair value of PFSI’s common stock and the number of shares expected to vest. For purposes of estimating the cost of the time-based RSUs granted, management assumes turnover rates of 6.2% - 19.2% per year based on the grantees’ employee classification. Compensation cost relating to time-based RSUs is amortized to expense using the graded vesting method and is included in the Compensation expense on the accompanying consolidated statements of income. | ||||||||||||||
Following is a summary of time-based RSU activity for the periods presented: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of units | ||||||||||||||
Outstanding at beginning of period | 70,826 | — | ||||||||||||
Granted | 27,407 | 98,233 | ||||||||||||
Vested | — | — | ||||||||||||
Expired or canceled | 126 | 126 | ||||||||||||
Outstanding at end of period | 98,107 | 98,107 | ||||||||||||
Weighted-average grant date fair value: | ||||||||||||||
Outstanding at beginning of period | $ | 17.51 | $ | — | ||||||||||
Granted | $ | 19.37 | $ | 18.03 | ||||||||||
Vested | $ | — | $ | — | ||||||||||
Expired or canceled | $ | 17.51 | $ | 17.51 | ||||||||||
Outstanding at end of period | $ | 18.03 | $ | 18.03 | ||||||||||
Compensation expense recorded during the period (in thousands) | $ | 330 | $ | 395 | ||||||||||
Period end: | ||||||||||||||
Unamortized compensation cost (in thousands) | $ | 979 | ||||||||||||
Performance-Based RSUs | ||||||||||||||
The performance-based RSUs provide for the issuance of shares of PFSI Class A common stock based equally on the attainment of earnings per share and total shareholder return goals and are adjusted for grantee performance ratings. The performance period for these grants is from June 13, 2013 through December 31, 2015. The grantees’ satisfaction of the performance goals will be established by review of a committee of PFSI’s board of directors. Shares vested under these grants will be issued to the grantees no later than March 15, 2016. | ||||||||||||||
The performance-based RSUs contain both performance goals (attainment of earnings per share) and market goals (total shareholder return). The Company separately accounts for the performance and market goals when recognizing compensation expense relating to performance-based RSUs. | ||||||||||||||
The fair value of the market goal component of the performance-based RSUs is measured using a variant of the Black-Scholes model. Key inputs are the expected volatility of the Company’s Class A common stock, the risk-free interest rate and expected grantee forfeiture rates. | ||||||||||||||
Following are the inputs for grants made for the periods presented: | ||||||||||||||
Input | Quarter ended | Nine months ended | ||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Expected volatility | — | 45% | ||||||||||||
Expected dividends | — | 0% | ||||||||||||
Risk-free interest rate | — | 0.3%-2.3% | ||||||||||||
Annualized grantee forfeiture rate | — | 6.2%-19.2% | ||||||||||||
The fair value of the performance goal component of the performance-based RSUs is measured based on the fair value of the Company’s common shares at the grant date, management’s estimate of to what extent the performance goal will be met and the number of shares to be forfeited during the vesting period. The cost of the performance-based RSUs is amortized to Compensation expense using the straight line method over the performance period. | ||||||||||||||
Following is a summary of performance-based RSU activity for the periods presented: | ||||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of units | ||||||||||||||
Outstanding at beginning of period | 499,364 | — | ||||||||||||
Granted | — | 499,364 | ||||||||||||
Vested | — | — | ||||||||||||
Expired or canceled | 253 | 253 | ||||||||||||
Outstanding at end of period | 499,111 | 499,111 | ||||||||||||
Weighted-average grant date fair value: | ||||||||||||||
Outstanding at beginning of period | $ | 11.58 | $ | — | ||||||||||
Granted | $ | — | $ | 11.58 | ||||||||||
Vested | $ | — | $ | — | ||||||||||
Expired or canceled | $ | 11.58 | $ | 11.58 | ||||||||||
Outstanding at end of period | $ | 11.58 | $ | 11.58 | ||||||||||
Compensation expense recorded during the period (in thousands) | $ | 464 | $ | 746 | ||||||||||
Period end: | ||||||||||||||
Unamortized compensation cost (in thousands) | $ | 3,816 |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Supplemental Cash Flow Information | ' | |||||||
Note 21—Supplemental Cash Flow Information | ||||||||
Nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 11,110 | $ | 3,506 | ||||
Cash paid for income taxes | $ | 7 | $ | — | ||||
Non-cash investing activity: | ||||||||
Receipt of MSRs created in loan sales activities | $ | 154,352 | $ | 51,006 |
Regulatory_Net_Worth_and_Agenc
Regulatory Net Worth and Agency Capital Requirements | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Note 22—Regulatory Net Worth and Agency Capital Requirements | ||||||||||||||
The Company, through PLS, is required to maintain specified levels of equity to remain a seller/servicer in good standing with the Agencies. Such equity requirements generally are tied to the size of the Company’s loan servicing portfolio or loan origination volume. | ||||||||||||||
The Agencies’ capital requirements, the calculations of which are specified by each Agency, are summarized below: | ||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Requirement - company subject to requirement | Net worth (1) | Required | Net worth (1) | Required | ||||||||||
(in thousands) | ||||||||||||||
Fannie Mae - PLS | $ | 273,445 | $ | 54,546 | $ | 172,843 | $ | 35,947 | ||||||
Freddie Mac - PLS | $ | 273,798 | $ | 53,751 | $ | 173,273 | $ | 27,119 | ||||||
Ginnie Mae: | ||||||||||||||
Issuer — PLS | $ | 260,032 | $ | 45,625 | $ | 152,782 | $ | 23,886 | ||||||
Issuer’s parent — PennyMac | $ | 554,841 | $ | 50,188 | $ | 227,560 | $ | 26,275 | ||||||
HUD - PLS | $ | 260,032 | $ | 195,891 | $ | 152,782 | $ | 1,000 | ||||||
(1) Calculated in compliance with the respective Agency’s requirements. | ||||||||||||||
Noncompliance with the respective agencies’ capital requirements can result in the respective Agency taking various remedial actions up to and including removing PennyMac’s ability to sell loans to and service loans on behalf of the respective Agency. Management believes that PennyMac and PLS had Agency capital in excess of the respective Agencies’ requirements at September 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies. | ' | ||||
Commitments and Contingencies | ' | ||||
Note 23—Commitments and Contingencies | |||||
Litigation | |||||
The business of the Company involves the collection of numerous accounts, as well as the validity of liens and compliance with various state and federal lending and servicing laws. Accordingly, the Company may be involved in proceedings, claims, and legal actions arising in the ordinary course of business. As of September 30, 2013, the Company was not involved in any legal proceedings, claims, or actions in management’s view would be reasonably likely to have a material adverse effect on the Company. | |||||
Commitments to Fund and Sell Mortgage Loans | |||||
September 30, 2013 | |||||
(in thousands) | |||||
Commitments to purchase mortgage loans from PMT | $ | 1,022,670 | |||
Commitments to fund mortgage loans | 140,861 | ||||
$ | 1,163,531 | ||||
Commitments to sell mortgage loans | $ | 3,086,889 | |||
Segments_and_Related_Informati
Segments and Related Information | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segments and Related Information | ' | ||||||||||
Segments and Related Information | ' | ||||||||||
Note 24—Segments and Related Information | |||||||||||
The Company has two operating segments: mortgage banking and investment management. | |||||||||||
The mortgage banking segment represents the Company’s operations aimed at originating, purchasing, selling and servicing newly originated mortgage loans and servicing mortgage loans sourced and managed by the investment management segment, including executing the loan resolution strategy identified by the investment management segment relating to distressed mortgage loans. | |||||||||||
The investment management segment represents the activities of the Company’s investment manager, which include sourcing, performing diligence, bidding and completion of asset acquisitions and managing the acquired assets for the Advised Entities. | |||||||||||
The investment management segment presently focuses on managing investments in distressed mortgage assets, which include mortgage loans that are either in default or are perceived to be at higher risk of default. The investment management segment then seeks to maximize the value of the mortgage loans on behalf of investors through the direction of effective “high touch” servicing by the mortgage banking segment. “High touch” servicing is based on significant levels of borrower outreach and contact, and the ability to implement long-term, sustainable loan modification and restructuring programs that address borrowers’ ability and willingness to pay their mortgage loans. Where this is not possible, the investment management segment seeks to effect property resolution in a timely, orderly and economically efficient manner for the investor. | |||||||||||
Financial highlights by operating segment are as follows: | |||||||||||
Quarter ended September 30, 2013 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 25,949 | $ | — | $ | 25,949 | |||||
Loan origination fees | 6,280 | — | 6,280 | ||||||||
Fulfillment fees from PMT | 18,327 | — | 18,327 | ||||||||
Net servicing income | 21,399 | — | 21,399 | ||||||||
Management fees | — | 10,540 | 10,540 | ||||||||
Carried Interest from Investment Funds | — | 2,812 | 2,812 | ||||||||
Net interest income: | |||||||||||
Interest income | 5,089 | 4 | 5,093 | ||||||||
Interest expense | (4,156 | ) | — | (4,156 | ) | ||||||
933 | 4 | 937 | |||||||||
Other | (22 | ) | 972 | 950 | |||||||
72,866 | 14,328 | 87,194 | |||||||||
Expenses: | |||||||||||
Compensation | 33,969 | 1,861 | 35,830 | ||||||||
Other | 16,240 | 207 | 16,447 | ||||||||
50,209 | 2,068 | 52,277 | |||||||||
Income before provision for income taxes | $ | 22,657 | $ | 12,260 | $ | 34,917 | |||||
Segment assets at period end | $ | 1,208,156 | $ | 46,228 | $ | 1,254,384 | |||||
Quarter ended September 30, 2012 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 39,760 | $ | — | $ | 39,760 | |||||
Loan origination fees | 2,752 | — | 2,752 | ||||||||
Fulfillment fees from PMT | 17,258 | — | 17,258 | ||||||||
Net servicing income | 6,112 | — | 6,112 | ||||||||
Management fees | — | 6,114 | 6,114 | ||||||||
Carried Interest from Investment Funds | — | 3,355 | 3,355 | ||||||||
Net interest income (expense): | |||||||||||
Interest income | 1,913 | 1 | 1,914 | ||||||||
Interest expense | (2,042 | ) | — | (2,042 | ) | ||||||
(129 | ) | 1 | (128 | ) | |||||||
Other | 1 | 1,008 | 1,009 | ||||||||
65,754 | 10,478 | 76,232 | |||||||||
Expenses: | |||||||||||
Compensation | 29,089 | 2,767 | 31,856 | ||||||||
Other | 6,375 | 138 | 6,513 | ||||||||
35,464 | 2,905 | 38,369 | |||||||||
Income before provision for income taxes | $ | 30,290 | $ | 7,573 | $ | 37,863 | |||||
Segment assets at period end | $ | 709,733 | $ | 17,529 | $ | 727,262 | |||||
Nine months ended September 30, 2013 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 108,560 | $ | — | $ | 108,560 | |||||
Loan origination fees | 18,260 | — | 18,260 | ||||||||
Fulfillment fees from PMT | 68,625 | — | 68,625 | ||||||||
Net servicing income | 59,510 | — | 59,510 | ||||||||
Management fees | — | 29,375 | 29,375 | ||||||||
Carried Interest from Investment Funds | — | 10,411 | 10,411 | ||||||||
Net interest income (expense): | |||||||||||
Interest income | 11,296 | 14 | 11,310 | ||||||||
Interest expense | (11,686 | ) | — | (11,686 | ) | ||||||
(390 | ) | 14 | (376 | ) | |||||||
Other | (22 | ) | 1,796 | 1,774 | |||||||
254,543 | 41,596 | 296,139 | |||||||||
Expenses: | |||||||||||
Compensation | 106,584 | 7,266 | 113,850 | ||||||||
Other | 41,354 | 496 | 41,850 | ||||||||
147,938 | 7,762 | 155,700 | |||||||||
Income before provision for income taxes | $ | 106,605 | $ | 33,834 | $ | 140,439 | |||||
Segment assets at period end | $ | 1,208,156 | $ | 46,228 | $ | 1,254,384 | |||||
Nine months ended September 30, 2012 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 68,487 | $ | — | $ | 68,487 | |||||
Loan origination fees | 5,439 | — | 5,439 | ||||||||
Fulfillment fees from PMT | 31,097 | — | 31,097 | ||||||||
Net servicing income | 25,346 | — | 25,346 | ||||||||
Management fees | — | 15,163 | 15,163 | ||||||||
Carried Interest from Investment Funds | — | 7,255 | 7,255 | ||||||||
Net interest income: | |||||||||||
Interest income | 4,488 | 3 | 4,491 | ||||||||
Interest expense | (4,226 | ) | — | (4,226 | ) | ||||||
262 | 3 | 265 | |||||||||
Other | 1 | 2,514 | 2,515 | ||||||||
130,632 | 24,935 | 155,567 | |||||||||
Expenses: | |||||||||||
Compensation | 71,541 | 6,214 | 77,755 | ||||||||
Other | 14,443 | 466 | 14,909 | ||||||||
85,984 | 6,680 | 92,664 | |||||||||
Income before provision for income taxes | $ | 44,648 | $ | 18,255 | $ | 62,903 | |||||
Segment assets at period end | $ | 709,733 | $ | 17,529 | $ | 727,262 | |||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 25—Subsequent Events | |
Management has evaluated all events and transactions through the date the Company issued these consolidated financial statements. During this period: | |
· On November 1, 2013, the Company, through PLS, acquired $10.3 billion in UPB of Fannie Mae MSRs from a third party, with a $62 million co-investment by PMT in the excess servicing spread associated with this MSR portfolio. | |
· On November 11, 2013, the Company, through PLS, entered into a purchase agreement with a third party to purchase $10.8 billion in UPB of Ginnie Mae MSRs. The Company expects to enter into an agreement with PMT providing for approximately $86 million of co-investment in the excess servicing spread associated with this MSR portfolio. The MSR acquisition by PLS and PMT’s co-investment in the excess servicing spread are subject to the negotiation and execution of definitive documentation, continuing due diligence and customary closing conditions and approvals. There can be no assurance that the committed amounts will ultimately be acquired or that the transactions will be completed at all. | |
· On October 1, 2013, the Company filed with the SEC a registration statement on Form S-1, which registers the resale from time to time by certain stockholders of up to 43,973,679 shares of the Company’s Class A common stock, of which 37,863,679 shares are issuable upon the exchange of Class A Units, and 6,110,000 shares are currently held by one of the stockholders. The registration statement was declared effective by the SEC on October 28, 2013. | |
· All agreements to repurchase assets that matured between September 30, 2013 and the date of this Report were extended or renewed. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company’s 2013 Equity Incentive Plan provides for awards of nonstatutory and incentive stock options (“Stock Options”), time-based restricted stock units, performance-based restricted stock units, stock appreciation rights, performance units and stock grants. The Company estimates the value of the Stock Options, time-based restricted stock units and performance-based restricted stock units awarded with reference to the value of its underlying common stock on the date of the award. Compensation costs are fixed, except for performance-based restricted stock units, at the estimated fair value as of the award date as all grantees are employees and directors of the Company or PennyMac. The Company amortizes the cost of time-based restricted stock unit awards to compensation expense over the vesting period using the graded vesting method. The Company amortizes performance-based restricted stock unit awards on a straight-line basis over the vesting period. Expense relating to awards is included in Compensation in the consolidated statements of income. | |
Income Taxes | ' |
Income Taxes | |
As a result of the PennyMac recapitalization and reorganization, the Company expects to benefit from amortization and other tax deductions due to an increase in tax basis due to the exchange of PennyMac Class A units. Those deductions will be allocated to the Company and will be taken into account in reporting the Company's taxable income. The Company has entered into an agreement with the unitholders of PennyMac that will provide for the additional payment by the Company to exchanging unitholders of PennyMac equal to 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that PFSI realizes due to (i) increases in tax basis resulting from exchanges of the then-existing unitholders and (ii) certain other tax benefits related to PFSI entering into the tax receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. | |
The Company is subject to federal and state income taxes. Income taxes are provided using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. | |
The effect on deferred taxes of a change in tax rates is recognized as income in the period in which the change occurs. A valuation allowance is established if, in management’s judgment, it is not more likely than not that the deferred tax asset will be realized. | |
The Company recognizes tax benefits relating to its tax positions only if, in the opinion of management, it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority. A tax position that meets this standard is recognized as the largest amount that is greater than 50% likely to be realized upon ultimate settlement with the appropriate taxing authority. The Company will classify any penalties and interest as a component of provision for income taxes. |
Transactions_with_Affiliates_T
Transactions with Affiliates (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Summary of base management and performance incentive fees earned | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Base management fee | $ | 5,104 | $ | 3,672 | $ | 14,043 | $ | 7,964 | ||||||
Performance incentive fee | 3,435 | — | 9,443 | — | ||||||||||
$ | 8,539 | $ | 3,672 | $ | 23,486 | $ | 7,964 | |||||||
Summary of mortgage loan servicing fees earned from PMT | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Loan servicing fees: | ||||||||||||||
Base | $ | 7,139 | $ | 3,518 | $ | 19,005 | $ | 9,656 | ||||||
Activity-based | 3,599 | 1,082 | 8,246 | 3,507 | ||||||||||
$ | 10,738 | $ | 4,600 | $ | 27,251 | $ | 13,163 | |||||||
Summary of lending activity between the Company and affiliate | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Sourcing fees paid | $ | 1,204 | $ | 747 | $ | 3,563 | $ | 1,448 | ||||||
Fulfillment fee revenue | $ | 18,327 | $ | 17,258 | $ | 68,625 | $ | 31,097 | ||||||
Unpaid principal balance of loans fulfilled for PMT | $ | 3,681,771 | $ | 2,488,443 | $ | 12,792,482 | $ | 4,828,117 | ||||||
Fair value of loans purchased from PMT | $ | 4,147,535 | $ | 2,650,097 | $ | 12,429,698 | $ | 5,111,185 | ||||||
Summary of foregoing reimbursement of expenses | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Reimbursement of expenses incurred on PMT’s behalf | $ | 1,934 | $ | 555 | $ | 3,767 | $ | 2,420 | ||||||
Reimbursement of common overhead incurred by PCM and its affiliates | 2,552 | 1,244 | 8,359 | 2,474 | ||||||||||
$ | 4,486 | $ | 1,799 | $ | 12,126 | $ | 4,894 | |||||||
Payments and settlements during the period (1) | $ | 29,315 | $ | 12,239 | $ | 94,606 | $ | 28,896 | ||||||
(1) Payments and settlements include payments for management fees and correspondent lending activities itemized in the preceding tables and netting settlements made pursuant to master netting agreements between the Company and PMT. | ||||||||||||||
PMT | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Summary of amounts due from affiliate | ' | |||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||
(in thousands) | ||||||||||||||
Management fees | $ | 8,539 | $ | 4,473 | ||||||||||
Servicing fees | 5,152 | 3,670 | ||||||||||||
Underwriting fees | 2,131 | 2,941 | ||||||||||||
Allocated expenses | 4,208 | 1,132 | ||||||||||||
Loan purchases | — | 4,475 | ||||||||||||
$ | 20,030 | $ | 16,691 | |||||||||||
Investment Funds | ' | |||||||||||||
Transactions with Affiliates | ' | |||||||||||||
Summary of amounts due from affiliate | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Receivable from Investment Funds: | ||||||||||||||
Loan servicing fees | $ | 47 | $ | 1,052 | ||||||||||
Loan servicing rebate | (123 | ) | (239 | ) | ||||||||||
Management fees | 2,001 | 2,164 | ||||||||||||
Expense reimbursements | 616 | 695 | ||||||||||||
$ | 2,541 | $ | 3,672 | |||||||||||
Carried Interest due from Investment Funds: | ||||||||||||||
PNMAC Mortgage Opportunity Fund, LLC | $ | 36,357 | $ | 29,785 | ||||||||||
PNMAC Mortgage Opportunity Fund Investors, LLC | 21,777 | 17,938 | ||||||||||||
$ | 58,134 | $ | 47,723 | |||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Earnings Per Common Share | ' | |||||||
Summary of basic and diluted earnings per share calculations | ' | |||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands, except per share amounts) | ||||||||
Basic earnings per share of common stock: | ||||||||
Net income attributable to common stockholders | $ | 5,197 | $ | 7,990 | ||||
Weighted-average shares outstanding | 17,958 | 16,042 | ||||||
Basic earnings per share | $ | 0.29 | $ | 0.5 | ||||
Diluted earnings per share of common stock: | ||||||||
Net income | $ | 5,197 | $ | 7,990 | ||||
Effect of net income attributable to noncontrolling interest, net of tax | 15,685 | 29,595 | ||||||
Diluted net income attributable to common stockholders | $ | 20,882 | $ | 37,585 | ||||
Weighted-average common stock outstanding | 17,958 | 16,042 | ||||||
Dilutive potential exchangeable PennyMac Class A common units to common stock | 57,888 | 59,804 | ||||||
Dilutive potential common stock—issuable under stock-based compensation plans | 30 | 21 | ||||||
Diluted weighted-average common stock outstanding | 75,876 | 75,867 | ||||||
Diluted earnings per share of common stock | $ | 0.28 | $ | 0.5 |
Loan_Sales_and_Servicing_Activ1
Loan Sales and Servicing Activities (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Loan Sales and Servicing Activities | ' | |||||||||||||
Summary of cash flows between the Company and transferees upon sale of mortgage loans in transactions | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Cash flows: | ||||||||||||||
Sales proceeds | $ | 4,515,106 | $ | 2,654,125 | $ | 13,210,810 | $ | 5,112,530 | ||||||
Servicing fees received | $ | 16,403 | $ | 3,940 | $ | 38,104 | $ | 8,327 | ||||||
Net servicing advances | $ | (717 | ) | $ | 1,009 | $ | (4,375 | ) | $ | 2,191 | ||||
Quarter-end information: | ||||||||||||||
Unpaid principal balance of loans outstanding at period-end | $ | 22,776,613 | $ | 6,444,618 | $ | 22,776,613 | $ | 6,444,618 | ||||||
Loans delinquent 30-89 days | $ | 380,070 | $ | 93,069 | $ | 380,070 | $ | 93,069 | ||||||
Loans delinquent 90 or more days or in foreclosure or bankruptcy | $ | 247,269 | $ | 39,950 | $ | 247,269 | $ | 39,950 | ||||||
Summary of mortgage servicing portfolio | ' | |||||||||||||
September 30, 2013 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Affiliated entities | $ | — | $ | 29,555,254 | $ | 29,555,254 | ||||||||
Agencies | 21,725,393 | — | 21,725,393 | |||||||||||
Private investors | 1,051,220 | 50,379 | 1,101,599 | |||||||||||
Mortgage loans held for sale | 490,088 | — | 490,088 | |||||||||||
$ | 23,266,701 | $ | 29,605,633 | $ | 52,872,334 | |||||||||
Amount subserviced for the Company | $ | 42,201 | $ | 554,070 | $ | 596,271 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 307,399 | $ | 265,806 | $ | 573,205 | ||||||||
60 days | 85,367 | 114,390 | 199,757 | |||||||||||
90 days or more | 168,468 | 1,422,071 | 1,590,539 | |||||||||||
561,234 | 1,802,267 | 2,363,501 | ||||||||||||
Loans pending foreclosure | 69,889 | 1,611,708 | 1,681,597 | |||||||||||
$ | 631,123 | $ | 3,413,975 | $ | 4,045,098 | |||||||||
Custodial funds managed by the Company (1) | $ | 389,267 | $ | 266,285 | $ | 655,552 | ||||||||
December 31, 2012 | ||||||||||||||
Servicing | Contract servicing | Total | ||||||||||||
rights owned | and subservicing | loans serviced | ||||||||||||
(in thousands) | ||||||||||||||
Affiliated entities | $ | — | $ | 16,552,939 | $ | 16,552,939 | ||||||||
Agencies | 9,860,284 | — | 9,860,284 | |||||||||||
Private investors | 1,321,584 | — | 1,321,584 | |||||||||||
Mortgage loans held for sale | 417,742 | — | 417,742 | |||||||||||
$ | 11,599,610 | $ | 16,552,939 | $ | 28,152,549 | |||||||||
Amount subserviced for the Company | $ | 45,562 | $ | 375,818 | $ | 421,380 | ||||||||
Delinquent mortgage loans: | ||||||||||||||
30 days | $ | 191,884 | $ | 187,653 | $ | 379,537 | ||||||||
60 days | 60,886 | 122,564 | 183,450 | |||||||||||
90 days or more | 112,847 | 851,851 | 964,698 | |||||||||||
365,617 | 1,162,068 | 1,527,685 | ||||||||||||
Loans pending foreclosure | 75,329 | 1,290,687 | 1,366,016 | |||||||||||
$ | 440,946 | $ | 2,452,755 | $ | 2,893,701 | |||||||||
Custodial funds managed by the Company (1) | $ | 263,562 | $ | 150,080 | $ | 413,642 | ||||||||
(1) Borrower and investor custodial cash accounts relate to loans serviced under the servicing agreements and are not recorded on the Company’s consolidated balance sheets. The Company earns interest on custodial funds it manages on behalf of the loans’ investors, which is recorded as part of the interest income in the Company’s consolidated statements of income. | ||||||||||||||
Summary of the geographical distribution of loans for the top five and all other states as measured by the total unpaid principal balance | ' | |||||||||||||
State | September 30, 2013 | December 31, 2012 | ||||||||||||
(in thousands) | ||||||||||||||
California | $ | 18,952,692 | $ | 10,696,508 | ||||||||||
Virginia | 2,984,671 | * | ||||||||||||
Texas | 2,962,697 | 1,223,382 | ||||||||||||
Florida | 2,395,337 | 1,385,286 | ||||||||||||
Colorado | 2,109,970 | 1,299,295 | ||||||||||||
Washington | * | 1,143,849 | ||||||||||||
All other states | 23,466,967 | 12,404,229 | ||||||||||||
$ | 52,872,334 | $ | 28,152,549 | |||||||||||
* State did not represent a top five state as of the respective date. | ||||||||||||||
Netting_of_Financial_Instrumen1
Netting of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Netting of Financial Instruments | ' | ||||||||||||||||||||||||||
Schedule of offsetting of derivative assets | ' | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount | Gross | Net | Gross amount | Gross | Net | ||||||||||||||||||||||
of | amount | amount | of | amount | amount | ||||||||||||||||||||||
recognized | offset | of assets in | recognized | offset | of assets | ||||||||||||||||||||||
assets | in the | the | assets | in the | in the | ||||||||||||||||||||||
balance | balance | balance | balance | ||||||||||||||||||||||||
sheet | sheet | sheet | sheet | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Derivatives subject to master netting arrangements: | |||||||||||||||||||||||||||
MBS put options | $ | — | $ | — | $ | — | $ | 967 | $ | — | $ | 967 | |||||||||||||||
Forward purchase contracts | 21,226 | — | 21,226 | 1,645 | — | 1,645 | |||||||||||||||||||||
Forward sale contracts | 505 | — | 505 | 1,818 | — | 1,818 | |||||||||||||||||||||
Netting | — | (19,382 | ) | (19,382 | ) | — | (1,091 | ) | (1,091 | ) | |||||||||||||||||
21,731 | (19,382 | ) | 2,349 | 4,430 | (1,091 | ) | 3,339 | ||||||||||||||||||||
Derivatives not subject to master netting arrangements - IRLCs | 21,717 | — | 21,717 | 23,951 | — | 23,951 | |||||||||||||||||||||
$ | 43,448 | $ | (19,382 | ) | $ | 24,066 | $ | 28,381 | $ | (1,091 | ) | $ | 27,290 | ||||||||||||||
Summary of the amount of derivative asset positions by significant counterparty after considering master netting arrangements and financial instruments or cash pledged | ' | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount not offfset in | Gross amount not offset in | ||||||||||||||||||||||||||
the | the | ||||||||||||||||||||||||||
Net amount | consolidated balance sheet | Net amount | consolidated balance sheet | ||||||||||||||||||||||||
of assets | Financial | Cash | Net | of assets | Financial | Cash | Net | ||||||||||||||||||||
in the balance | instruments | collateral | amount | in the balance | instruments | collateral | amount | ||||||||||||||||||||
sheet | received | sheet | received | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Interest rate lock commitments | $ | 21,717 | $ | — | $ | — | $ | 21,717 | $ | 23,951 | $ | — | $ | — | $ | 23,951 | |||||||||||
Nomura | 1,036 | — | — | 1,036 | — | — | — | — | |||||||||||||||||||
Goldman Sachs | 591 | — | — | 591 | — | — | — | — | |||||||||||||||||||
Bank of America, N.A. | — | — | — | — | 1,782 | — | — | 1,782 | |||||||||||||||||||
Citibank, N.A. | — | — | — | — | 522 | — | — | 522 | |||||||||||||||||||
Bank of NY Mellon | — | — | — | — | 311 | — | — | 311 | |||||||||||||||||||
Wells Fargo | — | — | — | — | 18 | — | — | 18 | |||||||||||||||||||
Other | 722 | — | — | 722 | 706 | — | — | 706 | |||||||||||||||||||
$ | 24,066 | $ | — | $ | — | $ | 24,066 | $ | 27,290 | $ | — | $ | — | $ | 27,290 | ||||||||||||
Summary of net derivative liabilities and assets sold under agreements to repurchase | ' | ||||||||||||||||||||||||||
. | |||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross | Gross amount | Net | Gross | Gross amount | Net | ||||||||||||||||||||||
amount of | offset | amount | amount of | offset | amount | ||||||||||||||||||||||
recognized | in the | of liabilities | recognized | in the | of liabilities | ||||||||||||||||||||||
liabilities | consolidated | in the | liabilities | consolidated | in the | ||||||||||||||||||||||
balance | consolidated | balance | consolidated | ||||||||||||||||||||||||
sheet | balance | sheet | balance | ||||||||||||||||||||||||
sheet | sheet | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Derivatives: | |||||||||||||||||||||||||||
Subject to a master netting arrangement: | |||||||||||||||||||||||||||
Forward purchase contracts | $ | 215 | $ | — | $ | 215 | $ | 389 | $ | — | $ | 389 | |||||||||||||||
Forward sale contracts | 48,069 | — | 48,069 | 1,894 | — | 1,894 | |||||||||||||||||||||
Netting | — | (42,667 | ) | (42,667 | ) | — | (1,785 | ) | (1,785 | ) | |||||||||||||||||
48,284 | (42,667 | ) | 5,617 | 2,283 | (1,785 | ) | 498 | ||||||||||||||||||||
Derivatives not subject to a master netting arrangement - IRLCs | 159 | — | 159 | 11 | — | 11 | |||||||||||||||||||||
Total derivatives | 48,443 | (42,667 | ) | 5,776 | 2,294 | (1,785 | ) | 509 | |||||||||||||||||||
Mortgage loans sold under agreements to repurchase | 387,883 | — | 387,883 | 393,534 | — | 393,534 | |||||||||||||||||||||
$ | 436,326 | $ | (42,667 | ) | $ | 393,659 | $ | 395,828 | $ | (1,785 | ) | $ | 394,043 | ||||||||||||||
Summary of amount of derivative liabilities and assets sold under agreements to repurchase by significant counterparty after considering master netting arrangements and financial instruments or cash pledged | ' | ||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||
Gross amount | Gross amount | ||||||||||||||||||||||||||
not offset in the | not offset in the | ||||||||||||||||||||||||||
consolidated | consolidated | ||||||||||||||||||||||||||
Net amount of | balance sheet | Net amount of | balance sheet | ||||||||||||||||||||||||
liabilities | Financial | Cash | Net | liabilities | Financial | Cash | Net | ||||||||||||||||||||
in the consolidated | instruments | collateral | amount | in the consolidated | instruments | collateral | amount | ||||||||||||||||||||
balance sheet | pledged | balance sheet | pledged | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||
Interest rate lock commitments | $ | 159 | $ | — | $ | — | $ | 159 | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||
Bank of America, N.A. | 200,074 | (199,423 | ) | — | 651 | 150,082 | (150,082 | ) | — | — | |||||||||||||||||
Credit Suisse First Boston Mortgage Capital LLC | 188,645 | (188,460 | ) | — | 185 | 122,443 | (122,252 | ) | — | 191 | |||||||||||||||||
Daiwa Capital Markets | 1,589 | — | — | 1,589 | 20 | — | — | 20 | |||||||||||||||||||
Morgan Stanley Bank, N.A. | 543 | — | — | 543 | 53 | — | — | 53 | |||||||||||||||||||
Bank of NY Mellon | 524 | — | — | 524 | — | — | — | — | |||||||||||||||||||
Citibank, N.A. | 34 | — | — | 34 | 121,200 | (121,200 | ) | — | — | ||||||||||||||||||
Other | 2,091 | — | — | 2,091 | 234 | — | — | ,234 | |||||||||||||||||||
$ | 393,659 | $ | (387,883 | ) | $ | — | $ | 5,776 | $ | 394,043 | $ | (393,534 | ) | $ | — | $ | 509 | ||||||||||
Fair_Value_Tables
Fair Value (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Summary of financial statement items measured at estimated fair value on a recurring basis | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investment | $ | 127,487 | $ | — | $ | — | $ | 127,487 | ||||||||||||
Mortgage loans held for sale at fair value | — | 526,063 | 4,185 | 530,248 | ||||||||||||||||
Investment in PMT | 1,701 | — | — | 1,701 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 26,768 | 26,768 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 21,717 | 21,717 | ||||||||||||||||
Forward purchase contracts | — | 21,226 | — | 21,226 | ||||||||||||||||
Forward sales contracts | — | 505 | — | 505 | ||||||||||||||||
Total derivative assets before netting | — | 21,731 | 21,717 | 43,448 | ||||||||||||||||
Netting (1) | — | — | — | (19,382 | ) | |||||||||||||||
Total derivative assets | — | 21,731 | 21,717 | 24,066 | ||||||||||||||||
$ | 129,188 | $ | 547,794 | $ | 52,670 | $ | 710,270 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | — | $ | 2,857 | $ | 2,857 | ||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 159 | 159 | ||||||||||||||||
Forward purchase contracts | — | 215 | — | 215 | ||||||||||||||||
Forward sales contracts | — | 48,069 | — | 48,069 | ||||||||||||||||
Total derivative liabilities before netting | — | 48,284 | 159 | 48,443 | ||||||||||||||||
Netting (1) | — | — | — | (42,667 | ) | |||||||||||||||
Total derivative liabilities | — | 48,284 | 159 | 5,776 | ||||||||||||||||
$ | — | $ | 48,284 | $ | 3,016 | $ | 8,633 | |||||||||||||
(1) Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the offsetting of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Short-term investment | $ | 53,164 | $ | — | $ | — | $ | 53,164 | ||||||||||||
Mortgage loans held for sale at fair value | — | 448,384 | — | 448,384 | ||||||||||||||||
Investment in PMT | 1,897 | — | — | 1,897 | ||||||||||||||||
Mortgage servicing rights at fair value | — | — | 19,798 | 19,798 | ||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Interest rate lock commitments | — | — | 23,951 | 23,951 | ||||||||||||||||
Forward purchase contracts | — | 1,645 | — | 1,645 | ||||||||||||||||
Forward sales contracts | — | 1,818 | — | 1,818 | ||||||||||||||||
MBS put options | — | 967 | — | 967 | ||||||||||||||||
Total derivative assets before netting | — | 4,430 | 23,951 | 28,381 | ||||||||||||||||
Netting (1) | — | — | — | (1,091 | ) | |||||||||||||||
Total derivative assets | — | 4,430 | 23,951 | 27,290 | ||||||||||||||||
$ | 55,061 | $ | 452,814 | $ | 43,749 | $ | 550,533 | |||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Interest rate lock commitments | $ | — | $ | — | $ | 11 | $ | 11 | ||||||||||||
Forward purchase contracts | — | 389 | — | 389 | ||||||||||||||||
Forward sales contracts | — | 1,894 | — | 1,894 | ||||||||||||||||
Total derivative liabilities before netting | — | 2,283 | 11 | 2,294 | ||||||||||||||||
Netting (1) | — | — | — | (1,785 | ) | |||||||||||||||
Net derivative liabilities | $ | — | $ | 2,283 | $ | 11 | $ | 509 | ||||||||||||
(1) Derivatives are reported net of cash collateral received and paid and, to the extent that the criteria of the accounting guidance covering the setoff of amounts related to certain contracts are met, positions with the same counterparty are netted as part of a legally enforceable master netting agreement. | ||||||||||||||||||||
Summary of roll forward of items measured using Level 3 inputs on a recurring basis | ' | |||||||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Mortgage servicing | Net interest | Total | |||||||||||||||||
loans held | rights | rate lock | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | 4,525 | $ | 23,070 | $ | (16,210 | ) | $ | 11,385 | |||||||||||
Repayments | (436 | ) | — | — | (436 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | — | 23,788 | 23,788 | ||||||||||||||||
Purchases of MSR | — | 1,116 | — | 1,116 | ||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | — | 4,157 | — | 4,157 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | — | ||||||||||||||||
Other factors | 96 | (1,575 | ) | 10,585 | 9,106 | |||||||||||||||
96 | (1,575 | ) | 10,585 | 9,106 | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | — | 3,395 | 3,395 | ||||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 26,768 | $ | 21,558 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | 16 | $ | (1,575 | ) | $ | 21,558 | |||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2013 | $ | 96 | $ | 21,558 | ||||||||||||||||
(1) For the purpose of this table, the interest rate lock asset and liability positions are shown net. | ||||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Quarter ended September 30, 2012 | ||||||||||||||||||||
Mortgage servicing | Net interest | Total | ||||||||||||||||||
rights | rate lock | |||||||||||||||||||
commitments | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance, June 30, 2012 | $ | 23,449 | $ | 12,710 | $ | 36,159 | ||||||||||||||
Interest rate lock commitments issued, net | — | 48,044 | 48,044 | |||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | 30 | — | 30 | |||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | |||||||||||||||||
Other factors | (2,239 | ) | 128 | (2,111 | ) | |||||||||||||||
(2,239 | ) | 128 | (2,111 | ) | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | (27,449 | ) | (27,449 | ) | |||||||||||||||
Balance, September 30, 2012 | $ | 21,240 | $ | 33,433 | $ | 54,673 | ||||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2012 | $ | (2,239 | ) | $ | 33,433 | |||||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2012 | $ | 33,433 | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||||
Mortgage | Mortgage servicing | Net interest | Total | |||||||||||||||||
loans held | rights | rate lock | ||||||||||||||||||
for sale | commitments (1) | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | $ | 19,798 | $ | 23,940 | $ | 43,738 | ||||||||||||
Repurchases | 5,529 | — | — | 5,529 | ||||||||||||||||
Repayments | (1,059 | ) | — | — | (1,059 | ) | ||||||||||||||
Interest rate lock commitments issued, net | — | — | 78,722 | 78,722 | ||||||||||||||||
Purchases of MSR | — | 5,124 | — | 5,124 | ||||||||||||||||
Sales of MSR | — | (550 | ) | — | (550 | ) | ||||||||||||||
Servicing received as proceeds from sales of mortgage loans | — | 4,177 | — | 4,177 | ||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | — | ||||||||||||||||
Other factors | (285 | ) | (1,781 | ) | (15,289 | ) | (17,355 | ) | ||||||||||||
(285 | ) | (1,781 | ) | (15,289 | ) | (17,355 | ) | |||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | — | (65,815 | ) | (65,815 | ) | ||||||||||||||
Balance, September 30, 2013 | $ | 4,185 | $ | 26,768 | $ | 21,558 | $ | 52,511 | ||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2013 | $ | (344 | ) | $ | (1,781 | ) | $ | 21,558 | ||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2013 | $ | (285 | ) | $ | 21,558 | |||||||||||||||
(1) For the purpose of this table, the interest rate lock asset and liability positions are shown net. | ||||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||||
Mortgage servicing | Net interest | Total | ||||||||||||||||||
rights | rate lock commitments | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance, December 31, 2011 | $ | 25,698 | $ | 7,905 | $ | 33,603 | ||||||||||||||
Interest rate lock commitments issued, net | — | 65,192 | 65,192 | |||||||||||||||||
Servicing received as proceeds from sales of mortgage loans | 772 | — | 772 | |||||||||||||||||
Changes in fair value included in income arising from: | ||||||||||||||||||||
Changes in instrument-specific credit risk | — | — | — | |||||||||||||||||
Other factors | (5,230 | ) | — | (5,230 | ) | |||||||||||||||
(5,230 | ) | — | (5,230 | ) | ||||||||||||||||
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | — | (39,664 | ) | (39,664 | ) | |||||||||||||||
Balance, September 30, 2012 | $ | 21,240 | $ | 33,433 | $ | 54,673 | ||||||||||||||
Changes in fair value recognized during the period relating to assets still held at September 30, 2012 | $ | (5,230 | ) | $ | 33,433 | |||||||||||||||
Accumulated changes in fair value relating to assets still held at September 30, 2012 | $ | 33,433 | ||||||||||||||||||
Summary of gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | |||||||||||||||||||
Quarter ended September 30, 2013 | Quarter ended September 30, 2012 | |||||||||||||||||||
Change in fair value of | Net | Total | Change in fair value of | Net | Total | |||||||||||||||
mortgage loans held | servicing | mortgage loans held | servicing | |||||||||||||||||
for sale at fair value | income | for sale at fair value | income | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | (6,060 | ) | $ | — | $ | (6,060 | ) | $ | 56,079 | $ | — | $ | 56,079 | ||||||
Mortgage servicing rights at fair value | — | (1,575 | ) | (1,575 | ) | — | (2,239 | ) | (2,239 | ) | ||||||||||
$ | (6,060 | ) | $ | (1,575 | ) | $ | (7,635 | ) | $ | 56,079 | $ | (2,239 | ) | $ | 53,840 | |||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | ||||||
$ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | |||||||
Nine months ended September 30, 2013 | Nine months ended September 30, 2012 | |||||||||||||||||||
Change in fair value of | Net | Total | Change in fair value of | Net | Total | |||||||||||||||
mortgage loans held | servicing | mortgage loans held | servicing | |||||||||||||||||
for sale at fair value | income | for sale at fair value | income | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Mortgage loans held for sale at fair value | $ | 12,428 | $ | — | $ | 12,428 | $ | 108,205 | $ | — | $ | 108,205 | ||||||||
Mortgage servicing rights at fair value | — | (1,781 | ) | (1,781 | ) | — | (5,230 | ) | (5,230 | ) | ||||||||||
$ | 12,428 | $ | (1,781 | ) | $ | 10,647 | $ | 108,205 | $ | (5,230 | ) | $ | 102,975 | |||||||
Liabilities: | ||||||||||||||||||||
Excess servicing spread financing at fair value | $ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | ||||||
$ | — | $ | (29 | ) | $ | (29 | ) | $ | — | $ | — | $ | — | |||||||
Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair | Principal amount due | Difference | ||||||||||||||||||
value | upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 529,244 | $ | 496,853 | $ | 32,391 | ||||||||||||||
90 or more days delinquent | 1,004 | 1,297 | (293 | ) | ||||||||||||||||
$ | 530,248 | $ | 498,150 | $ | 32,098 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Fair | Principal amount due | Difference | ||||||||||||||||||
value | upon maturity | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||
Current through 89 days delinquent | $ | 447,889 | $ | 418,650 | $ | 29,239 | ||||||||||||||
90 or more days delinquent | 495 | 623 | (128 | ) | ||||||||||||||||
$ | 448,384 | $ | 419,273 | $ | 29,111 | |||||||||||||||
Summary of financial statement items measured at estimated fair value on a nonrecurring basis | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 102,116 | $ | 102,116 | ||||||||||||
$ | — | $ | — | $ | 102,116 | $ | 102,116 | |||||||||||||
December 31, 2012 | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | — | $ | — | $ | 51,180 | $ | 51,180 | ||||||||||||
$ | — | $ | — | $ | 51,180 | $ | 51,180 | |||||||||||||
Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis | ' | |||||||||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Mortgage servicing rights at lower of amortized cost or fair value | $ | (1,164 | ) | $ | (1,000 | ) | $ | (521 | ) | $ | (1,784 | ) | ||||||||
$ | (1,164 | ) | $ | (1,000 | ) | $ | (521 | ) | $ | (1,784 | ) | |||||||||
Schedule of key inputs used in determining the fair value of excess servicing spread financing at the time of initial recognition | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Pricing spread | 6.8 | % | — | |||||||||||||||||
Average life | 6.7 | — | ||||||||||||||||||
Prepayment speed | 9.1 | % | — | |||||||||||||||||
Mortgage loans held for sale at fair value | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Discount rate | 7.8% - 13.4% | |||||||||||||||||||
-9.20% | ||||||||||||||||||||
Twelve-month projected housing price index change | 6.7% - 7.3% | |||||||||||||||||||
-6.80% | ||||||||||||||||||||
Prepayment speed (1) | 2.1% - 5.6% | |||||||||||||||||||
-4.80% | ||||||||||||||||||||
Total prepayment speed (2) | 3.4% - 5.7% | |||||||||||||||||||
-5.10% | ||||||||||||||||||||
(1) Prepayment speed is measured using Life Voluntary Conditional Prepayment Rate (“CPR”). | ||||||||||||||||||||
(2) Total prepayment speed is measured using Life Total CPR. | ||||||||||||||||||||
IRLCs | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Summary of roll forward of items measured using Level 3 inputs on a recurring basis | ' | |||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, June 30, 2013 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Excess servicing | ||||||||||||||||||||
spread financing | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Liability: | ||||||||||||||||||||
Balance, December 31, 2012 | $ | — | ||||||||||||||||||
Initial proceeds received from financing of excess servicing spread | 2,828 | |||||||||||||||||||
Changes in fair value included in income | 29 | |||||||||||||||||||
Repayments | — | |||||||||||||||||||
Balance, September 30, 2013 | $ | 2,857 | ||||||||||||||||||
Changes in fair value recognized during the period relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Accumulated changes in fair value relating to liability still held at September 30, 2013 | $ | 29 | ||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Key Inputs | ||||||||||||||||||||
Pull-through rate | 56.6% - 98.0% | 61.6% – 98.1% | ||||||||||||||||||
-78.30% | -79.10% | |||||||||||||||||||
MSR value expressed as: | ||||||||||||||||||||
Servicing fee multiple | 2.1 - 5.0 | 3.2 – 4.2 | ||||||||||||||||||
-4 | -4 | |||||||||||||||||||
Percentage of unpaid principal balance | 0.4% - 2.6% | 0.6% – 2.2% | ||||||||||||||||||
-1.10% | -0.90% | |||||||||||||||||||
MSRs | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | |||||||||||||||||||
Quarter ended September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
Unpaid principal balance of underlying loans | $315,869 | $4,120,962 | $4,217 | $2,485,982 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 30 | 27 | 27 | ||||||||||||||||
Pricing spread (1) | 7.4% - 13.1% | 5.4% - 15.9% | 7.5% - 9.9% | 7.5% - 9.9% | ||||||||||||||||
-9.90% | -8.20% | -7.80% | -9.80% | |||||||||||||||||
Annual total prepayment speed (2) | 8.8% - 17.2% | 8.5% - 14.7% | 8.4% - 9.5% | 8.4% - 9.5% | ||||||||||||||||
-9.20% | -8.80% | -9.20% | -8.40% | |||||||||||||||||
Life (in years) | 3.6 – 7.0 | 2.9 – 6.9 | 6.4 – 6.7 | 6.4 – 6.7 | ||||||||||||||||
-6.9 | -6.7 | -6.4 | -6.7 | |||||||||||||||||
Cost of servicing | $68 – $120 | $68 – $120 | $68 – $100 | $68 – $100 | ||||||||||||||||
($101) | ($104) | ($71) | ($99) | |||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
Unpaid principal balance of underlying loans | $318,066 | $12,350,104 | $17,504 | $4,811,328 | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 31 | 29 | 28 | 27 | ||||||||||||||||
Pricing spread (1) | 7.4% - 13.1% | 5.4% - 15.9% | 7.5% - 9.9% | 7.5% - 9.9% | ||||||||||||||||
-9.90% | -8.20% | -8.40% | -9.80% | |||||||||||||||||
Annual total prepayment speed (2) | 8.8% - 17.2% | 8.5% - 18.5% | 7.8% - 9.5% | 7.8% - 9.5% | ||||||||||||||||
-9.20% | -8.80% | -8.60% | -8.30% | |||||||||||||||||
Life (in years) | 3.6 – 7.0 | 2.9 – 6.9 | 5.9 – 6.9 | 5.9 – 6.9 | ||||||||||||||||
-6.9 | -6.7 | -6.4 | -6.7 | |||||||||||||||||
Cost of servicing | $68 – $120 | $68 – $120 | $68 – $100 | $68 – $100 | ||||||||||||||||
($101) | ($102) | ($77) | ($99) | |||||||||||||||||
(1) Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans. | ||||||||||||||||||||
(2) Prepayment speed is measured using CPR. | ||||||||||||||||||||
Purchased MSRs backed by distressed mortgage loans | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs used in the valuation of the MSRs at period end and the effect on estimated fair value from adverse changes in those assumptions | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Unpaid principal balance of underlying loans and effect on value amounts | ||||||||||||||||||||
in thousands) | ||||||||||||||||||||
Carrying value | $10,125 | — | $12,370 | — | ||||||||||||||||
Unpaid principal balance of underlying loans | $1,051,220 | — | $1,271,478 | — | ||||||||||||||||
Weighted-average note rate | 5.88% | — | 6.01% | — | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 50 | — | 50 | — | ||||||||||||||||
Discount rate | 15.3% – 15.3% | — | 15.3% – 15.3% | — | ||||||||||||||||
-15.30% | — | -15.30% | — | |||||||||||||||||
Effect on value of 5% adverse change | ($252) | — | ($302) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($494) | — | ($590) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($945) | — | ($1,130) | — | ||||||||||||||||
Life (in years) | 4.8 – 4.8 | — | 5.0 – 5.0 | — | ||||||||||||||||
-4.8 | — | -5 | — | |||||||||||||||||
Prepayment speed (1) | 11.7% – 11.7% | — | 10.7% – 10.7% | — | ||||||||||||||||
-11.70% | — | -10.70% | — | |||||||||||||||||
Effect on value of 5% adverse change | ($252) | — | ($273) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($492) | — | ($529) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($951) | — | ($1,040) | — | ||||||||||||||||
Per-loan cost of servicing | $250 – $250 | — | $270 – $270 | — | ||||||||||||||||
($250) | — | ($270) | — | |||||||||||||||||
Effect on value of 5% adverse change | ($223) | — | ($290) | — | ||||||||||||||||
Effect on value of 10% adverse change | ($447) | — | ($580) | — | ||||||||||||||||
Effect on value of 20% adverse change | ($893) | — | ($1,159) | — | ||||||||||||||||
(1) Prepayment speed is measured using Life Voluntary CPR. | ||||||||||||||||||||
All other MSRs | ' | |||||||||||||||||||
Fair Value | ' | |||||||||||||||||||
Quantitative summary of key inputs used in the valuation of the MSRs at period end and the effect on estimated fair value from adverse changes in those assumptions | ' | |||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||
Range | ||||||||||||||||||||
(Weighted average) | ||||||||||||||||||||
Fair | Amortized | Fair | Amortized | |||||||||||||||||
value | cost | value | cost | |||||||||||||||||
(Unpaid principal balance of underlying loans and | ||||||||||||||||||||
effect on value amounts in thousands) | ||||||||||||||||||||
Carrying value | $16,643 | $226,090 | $7,428 | $89,177 | ||||||||||||||||
Unpaid principal balance of underlying loans | $1,700,612 | $20,024,781 | $1,166,765 | $8,730,686 | ||||||||||||||||
Weighted-average note rate | 4.68% | 3.57% | 5.22% | 3.65% | ||||||||||||||||
Weighted-average servicing fee rate (in basis points) | 27 | 28 | 26 | 28 | ||||||||||||||||
Pricing spread (1) | 6.4% – 17.5% | 5.4% – 15.9% | 7.5% – 19.5% | 7.5% – 16.5% | ||||||||||||||||
-8.90% | -7.60% | -10.60% | -9.80% | |||||||||||||||||
Effect on value of 5% adverse change | ($303) | ($4,833) | ($113) | ($1,814) | ||||||||||||||||
Effect on value of 10% adverse change | ($596) | ($9,488) | ($222) | ($3,562) | ||||||||||||||||
Effect on value of 20% adverse change | ($1,153) | ($18,303) | ($430) | ($6,870) | ||||||||||||||||
Average life (in years) | 0.2 – 14.4 | 2.6 – 6.9 | 0.2 – 14.4 | 2.5 – 6.9 | ||||||||||||||||
-6.6 | -6.7 | -5 | -6.6 | |||||||||||||||||
Prepayment speed (2) | 8.7% – 72.8% | 8.5% – 16.0% | 9.0% – 84.2% | 8.7% – 28.3% | ||||||||||||||||
-10.60% | -9.00% | -19.20% | -9.20% | |||||||||||||||||
Effect on value of 5% adverse change | ($376) | ($4,696) | ($238) | ($1,751) | ||||||||||||||||
Effect on value of 10% adverse change | ($738) | ($9,238) | ($462) | ($3,446) | ||||||||||||||||
Effect on value of 20% adverse change | ($1,423) | ($17,891) | ($877) | ($6,674) | ||||||||||||||||
Per-loan cost of servicing | $68 – $120 | $68 – $120 | $68 – $140 | $68 – $140 | ||||||||||||||||
($77) | ($102) | ($76) | ($99) | |||||||||||||||||
Effect on value of 5% adverse change | ($150) | ($2,383) | ($77) | ($963) | ||||||||||||||||
Effect on value of 10% adverse change | ($300) | ($4,766) | ($153) | ($1,926) | ||||||||||||||||
Effect on value of 20% adverse change | ($601) | ($9,531) | ($307) | ($3,852) | ||||||||||||||||
(1) Pricing spread represents a margin that is applied to a reference interest rate’s forward curve to develop periodic discount rates. The Company applies a pricing spread to the United States Dollar LIBOR curve for purposes of discounting cash flows relating to MSRs acquired as proceeds from the sale of mortgage loans and purchased MSRs not backed by pools of distressed mortgage loans. | ||||||||||||||||||||
(2) Prepayment speed is measured using CPR. | ||||||||||||||||||||
Mortgage_Loans_Held_for_Sale_a1
Mortgage Loans Held for Sale at Fair Value (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Mortgage Loans Held for Sale at Fair Value | ' | |||||||
Summary of mortgage loans held for sale at fair value | ' | |||||||
September 30, 2013 | December 31, 2012 | |||||||
(in thousands) | ||||||||
Conforming | $ | 57,651 | $ | 50,003 | ||||
Government-insured or guaranteed | 468,412 | 398,381 | ||||||
Repurchased mortgage loans | 4,185 | — | ||||||
$ | 530,248 | $ | 448,384 | |||||
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | $ | 522,031 | $ | 438,850 | ||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Derivative Instruments | ' | |||||||||||||||||
Summary of derivative financial instruments | ' | |||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||
Fair value | Fair value | |||||||||||||||||
Instrument | Notional | Derivative | Derivative | Notional | Derivative | Derivative | ||||||||||||
amount | assets | liabilities | amount | assets | liabilities | |||||||||||||
(in thousands) | ||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||
Free-standing derivatives: | ||||||||||||||||||
Interest rate lock commitments | 1,163,531 | $ | 21,717 | $ | 159 | 1,576,174 | $ | 23,951 | $ | 11 | ||||||||
Forward purchase contracts | 1,580,434 | 21,226 | 215 | 1,021,981 | 1,645 | 389 | ||||||||||||
Forward sales contracts | 3,086,889 | 505 | 48,069 | 2,621,948 | 1,818 | 1,894 | ||||||||||||
MBS put options | — | — | — | 500,000 | 967 | — | ||||||||||||
Total derivatives before netting | 43,448 | 48,443 | 28,381 | 2,294 | ||||||||||||||
Netting | (19,382 | ) | (42,667 | ) | (1,091 | ) | (1,785 | ) | ||||||||||
$ | 24,066 | $ | 5,776 | $ | 27,290 | $ | 509 | |||||||||||
Summary of the activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | |||||||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Quarter ended September 30, 2013 | ||||||||||||||||||
Forward purchase contracts | 2,071,590 | 13,386,366 | (13,877,522 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 4,226,940 | 18,727,428 | (19,867,479 | ) | 3,086,889 | |||||||||||||
MBS call options | 625,000 | 300,000 | (925,000 | ) | — | |||||||||||||
MBS put options | 260,000 | 50,000 | (310,000 | ) | — | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Quarter ended September 30, 2012 | ||||||||||||||||||
Forward purchase contracts | 545,175 | 5,707,334 | (5,351,309 | ) | 901,200 | |||||||||||||
Forward sales contracts | 1,522,674 | 8,324,782 | (7,336,268 | ) | 2,511,188 | |||||||||||||
MBS call options | 5,000 | 5,000 | (10,000 | ) | — | |||||||||||||
MBS put options | 210,000 | 512,000 | (387,000 | ) | 335,000 | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Nine months ended September 30, 2013 | ||||||||||||||||||
Forward purchase contracts | 1,021,981 | 35,012,198 | (34,453,745 | ) | 1,580,434 | |||||||||||||
Forward sales contracts | 2,621,948 | 51,199,986 | (50,735,045 | ) | 3,086,889 | |||||||||||||
MBS call options | — | 2,100,000 | (2,100,000 | ) | — | |||||||||||||
MBS put options | 500,000 | 2,210,000 | (2,710,000 | ) | — | |||||||||||||
Period/Instrument | Balance | Additions | Dispositions/ | Balance | ||||||||||||||
beginning | expirations | end | ||||||||||||||||
of period | of period | |||||||||||||||||
(in thousands) | ||||||||||||||||||
Nine months ended September 30, 2012 | ||||||||||||||||||
Forward purchase contracts | 130,900 | 10,197,428 | (9,427,128 | ) | 901,200 | |||||||||||||
Forward sales contracts | 510,569 | 16,424,121 | (14,423,502 | ) | 2,511,188 | |||||||||||||
MBS call options | 3,000 | 168,000 | (171,000 | ) | — | |||||||||||||
MBS put options | 29,000 | 885,000 | (579,000 | ) | 335,000 | |||||||||||||
Mortgage_Servicing_Rights_Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Mortgage Servicing Rights | ' | |||||||||||||
Schedule of activity in MSRs carried at fair value | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 23,070 | $ | 23,449 | $ | 19,798 | $ | 25,698 | ||||||
Additions: | ||||||||||||||
Servicing resulting from MSR purchases | 1,116 | — | 5,124 | — | ||||||||||
Servicing resulting from loan sales | 4,157 | 30 | 4,177 | 772 | ||||||||||
Sales | — | — | (550 | ) | — | |||||||||
Change in fair value: | ||||||||||||||
Due to changes in valuation inputs or assumptions used in valuation model (1) | (635 | ) | (882 | ) | 1,233 | (1,218 | ) | |||||||
Other changes in fair value (2) | (940 | ) | (1,357 | ) | (3,014 | ) | (4,012 | ) | ||||||
Total change in fair value | (1,575 | ) | (2,239 | ) | (1,781 | ) | (5,230 | ) | ||||||
Balance at end of period | $ | 26,768 | $ | 21,240 | $ | 26,768 | $ | 21,240 | ||||||
(1) Principally reflects changes in discount rates and prepayment speed assumptions, primarily due to changes in interest rates. | ||||||||||||||
(2) Represents changes due to realization of cash flows. | ||||||||||||||
Schedule of activity in MSRs carried at lower of amortized cost or fair value | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Amortized cost: | ||||||||||||||
Balance at beginning of period | $ | 179,003 | $ | 30,305 | $ | 92,155 | $ | 6,496 | ||||||
Additions: | ||||||||||||||
Servicing resulting from loan sales | 55,981 | 25,590 | 150,175 | 50,234 | ||||||||||
Amortization | (5,367 | ) | (1,127 | ) | (12,713 | ) | (1,962 | ) | ||||||
Application of valuation allowance to write down MSRs with other-than-temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | 229,617 | 54,768 | 229,617 | 54,768 | ||||||||||
Valuation allowance for impairment of MSRs: | ||||||||||||||
Balance at beginning of period | (2,335 | ) | (854 | ) | (2,978 | ) | (70 | ) | ||||||
Additions | (1,192 | ) | (1,000 | ) | (549 | ) | (1,784 | ) | ||||||
Application of valuation allowance to write down MSRs with other-than-temporary impairment | — | — | — | — | ||||||||||
Balance at end of period | (3,527 | ) | (1,854 | ) | (3,527 | ) | (1,854 | ) | ||||||
MSRs, net | $ | 226,090 | $ | 52,914 | $ | 226,090 | $ | 52,914 | ||||||
Estimated fair value of MSRs at end of period | $ | 239,326 | $ | 53,419 | $ | 239,326 | $ | 53,419 | ||||||
Summary of estimate of future amortization of existing MSRs | ' | |||||||||||||
Estimated MSR | ||||||||||||||
12-month period ending September 30, | amortization | |||||||||||||
(in thousands) | ||||||||||||||
2014 | $ | 22,633 | ||||||||||||
2015 | 21,637 | |||||||||||||
2016 | 20,658 | |||||||||||||
2017 | 19,910 | |||||||||||||
2018 | 18,859 | |||||||||||||
Thereafter | 125,920 | |||||||||||||
Total | $ | 229,617 | ||||||||||||
Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Contractual servicing fees | $ | 14,596 | $ | 2,154 | $ | 35,397 | $ | 8,776 | ||||||
Late charges | 527 | 209 | 1,336 | 682 | ||||||||||
Ancillary and other fees | 140 | 72 | 374 | 194 | ||||||||||
$ | 15,263 | $ | 2,435 | $ | 37,107 | $ | 9,652 | |||||||
Carried_Interest_Due_from_Inve1
Carried Interest Due from Investment Funds (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Carried Interest Due from Investment Funds | ' | |||||||||||||
Summary of activity in the Company's Carried interest due from Investment Funds | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 55,322 | $ | 41,149 | $ | 47,723 | $ | 37,250 | ||||||
Carried Interest recognized during the period | 2,812 | 3,355 | 10,411 | 7,254 | ||||||||||
Proceeds received during the period | — | — | — | — | ||||||||||
Balance at end of period | $ | 58,134 | $ | 44,504 | $ | 58,134 | $ | 44,504 | ||||||
Investment_in_PennyMac_Mortgag1
Investment in PennyMac Mortgage Investment Trust at Fair Value (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | |||||||||||||
Summary of change in fair value of investment in and dividends received from PennyMac Mortgage Investment Trust | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Dividends | $ | 43 | $ | 41 | $ | 128 | $ | 124 | ||||||
Change in fair value | 122 | 273 | (196 | ) | 506 | |||||||||
$ | 165 | $ | 314 | $ | (68 | ) | $ | 630 | ||||||
Fair value of PMT shares at period end | $ | 1,701 | $ | 1,753 | $ | 1,701 | $ | 1,753 |
Borrowings_Tables
Borrowings (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Borrowings | ' | |||||||||||||
Summary of financial data pertaining to mortgage loans sold under agreements to repurchase | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(dollar amounts in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Balance | $ | 387,883 | $ | 361,478 | $ | 387,883 | $ | 361,478 | ||||||
Unused amount (1) | $ | 612,117 | $ | 88,522 | $ | 612,117 | $ | 88,522 | ||||||
Weighted-average interest rate | 1.82 | % | 2.38 | % | 1.82 | % | 2.38 | % | ||||||
Fair value of loans securing agreements to repurchase | $ | 522,031 | $ | 408,415 | $ | 522,031 | $ | 408,415 | ||||||
During the period: | ||||||||||||||
Average balance of loans sold under agreements to repurchase | $ | 373,386 | $ | 219,047 | $ | 354,125 | $ | 146,425 | ||||||
Weighted-average interest rate (2) | 1.89 | % | 2.23 | % | 2.02 | % | 2.18 | % | ||||||
Total interest expense | $ | 2,920 | $ | 1,682 | $ | 8,251 | $ | 3,583 | ||||||
Maximum daily amount outstanding | $ | 588,494 | $ | 361,588 | $ | 623,523 | $ | 361,588 | ||||||
(1) The amount the Company is able to borrow under loan repurchase agreements is tied to the fair value of unencumbered mortgage loans eligible to secure those agreements and the Company’s ability to fund the agreements’ margin requirements relating to the mortgage loans sold. | ||||||||||||||
(2) Excludes the effect of amortization of commitment fees totaling $1.1 million and $423,000 for the quarters ended September 30, 2013 and September 30, 2012, respectively, and $2.8 million and $1.1 million for the nine months ended September 30, 2013 and September 30, 2012, respectively. | ||||||||||||||
Summary of maturities of outstanding advances under repurchase agreements by maturity date | ' | |||||||||||||
Remaining maturity at September 30, 2013 | Balance | |||||||||||||
(in thousands) | ||||||||||||||
Within 30 days | $ | 423 | ||||||||||||
Over 30 to 90 days | 387,460 | |||||||||||||
Over 90 days to 180 days | — | |||||||||||||
Over 180 days to 1 year | — | |||||||||||||
$ | 387,883 | |||||||||||||
Weighted-average maturity (in months) | 2.6 | |||||||||||||
Summary of amount at risk relating to the mortgage loans held for sale sold under agreements to repurchase by counterparty | ' | |||||||||||||
Counterparty | Amount at risk | Weighted-average | Facility maturity | |||||||||||
maturity of advances under | ||||||||||||||
repurchase agreement | ||||||||||||||
(in thousands) | ||||||||||||||
Bank of America, N.A. | $ | 45,516 | December 16, 2013 | January 2, 2014 | ||||||||||
Credit Suisse First Boston Mortgage Capital LLC | $ | 89,917 | December 18, 2013 | -1 | ||||||||||
(1) The earlier to occur of October 31, 2014 or the rolling maturity date that is 364 days from any particular date of determination. | ||||||||||||||
Summary of note payable | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
(in thousands) | ||||||||||||||
Period end: | ||||||||||||||
Note payable secured by: | ||||||||||||||
Servicing advances | $ | 3,823 | $ | 4,905 | ||||||||||
MSRs | 52,952 | 48,108 | ||||||||||||
$ | 56,775 | $ | 53,013 | |||||||||||
Assets pledged to secure note: | ||||||||||||||
Servicing advances | $ | 6,865 | $ | 7,430 | ||||||||||
MSRs | $ | 226,588 | $ | 100,957 | ||||||||||
Liability_for_Losses_Under_Rep1
Liability for Losses Under Representations and Warranties (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Liability for Losses Under Representations and Warranties | ' | |||||||||||||
Summary of the entity's liability for representations and warranties | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Balance at beginning of period | $ | 6,185 | $ | 1,387 | $ | 3,504 | $ | 449 | ||||||
Provisions for losses on loans sold | 1,069 | 918 | 3,766 | 1,856 | ||||||||||
Incurred losses | (39 | ) | — | (55 | ) | — | ||||||||
Balance at end of period | $ | 7,215 | $ | 2,305 | $ | 7,215 | $ | 2,305 | ||||||
Unpaid principal balance of mortgage loans subject to representations and warranties | $ | 20,428,213 | $ | 6,444,618 | $ | 20,428,213 | $ | 6,444,618 | ||||||
Summary of repurchase activity | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
During the period: | ||||||||||||||
Unpaid balance of mortgage loans repurchased | $ | 1,973 | $ | — | $ | 6,840 | $ | — | ||||||
Unpaid principal balance of mortgage loans put to correspondent lenders | $ | 357 | $ | — | $ | 1,410 | $ | — | ||||||
At period end: | ||||||||||||||
Unpaid principal balance of mortgage loans subject to pending claims for repurchase | $ | 1,249 | $ | 3,459 | $ | 1,249 | $ | 3,459 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of the Company's income tax expense (benefit) | ' | |||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands) | ||||||||
Current expense: | ||||||||
Federal | $ | — | $ | — | ||||
State | — | — | ||||||
Total current expense | — | — | ||||||
Deferred expense: | ||||||||
Federal | 2,823 | 4,339 | ||||||
State | 670 | 1,192 | ||||||
Total deferred expense | 3,493 | 5,531 | ||||||
Total provision for income taxes | $ | 3,493 | $ | 5,531 | ||||
Schedule of reconciliation of the Company's provision for income taxes at statutory rates to the provision for income taxes at the Company's effective tax rate | ' | |||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
Federal income tax statutory rate | 35 | % | 35 | % | ||||
Less: Rate attributable to non-controlling members | (26.3 | )% | (31.6 | )% | ||||
State income taxes, net of federal benefit | 1.2 | % | 0.6 | % | ||||
Other | 0 | % | 0 | % | ||||
Valuation allowance | 0 | % | 0 | % | ||||
Effective tax rate | 9.9 | % | 4 | % | ||||
Schedule of components of the Company's provision for deferred income taxes | ' | |||||||
Quarter ended | Nine months ended | |||||||
September 30, 2013 | September 30, 2013 | |||||||
(in thousands) | ||||||||
Investment in PennyMac | $ | 5,491 | $ | 7,762 | ||||
Net operating loss carryforward | (1,998 | ) | (2,231 | ) | ||||
Other | — | — | ||||||
Valuation allowance | — | — | ||||||
Total provision for deferred income taxes | $ | 3,493 | $ | 5,531 | ||||
Schedule of components of Deferred tax asset | ' | |||||||
September 30, 2013 | ||||||||
(in thousands) | ||||||||
Taxes currently receivable | $ | 7 | ||||||
Deferred income tax asset, net | 54,523 | |||||||
Deferred tax asset | $ | 54,530 | ||||||
Schedule of tax effects of temporary differences that gave rise to deferred income tax assets and liabilities | ' | |||||||
September 30, 2013 | ||||||||
(in thousands) | ||||||||
Deferred income tax assets: | ||||||||
Investment in PennyMac | $ | 52,292 | ||||||
Net operating loss carryforward | $ | 2,231 | ||||||
Other | — | |||||||
Gross deferred tax assets | 54,523 | |||||||
Deferred income tax liabilities: | ||||||||
Other | — | |||||||
Gross deferred tax liabilities | — | |||||||
Net deferred income tax asset | $ | 54,523 |
Net_Gain_on_Mortgage_Loans_Hel1
Net Gain on Mortgage Loans Held for Sale (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Gain on Mortgage Loans Held for Sale | ' | |||||||||||||
Net Gain on Mortgage Loans Held for Sale | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Cash (loss) gain: | ||||||||||||||
Sales proceeds | $ | (93,725 | ) | $ | 26,676 | $ | (148,866 | ) | $ | 49,695 | ||||
Hedging activities | 88,789 | (19,574 | ) | 128,670 | (40,276 | ) | ||||||||
(4,936 | ) | 7,102 | (20,196 | ) | 9,419 | |||||||||
Non-cash gain: | ||||||||||||||
Receipt of MSRs in loan sale transactions | 60,137 | 25,620 | 154,352 | 51,006 | ||||||||||
MSR recapture payable to affiliate | (86 | ) | — | (586 | ) | — | ||||||||
Provision for losses relating to representations and warranties provided in loan sales | (1,069 | ) | (918 | ) | (3,766 | ) | (1,856 | ) | ||||||
Change in fair value relating to loans and hedging derivatives held at period end: | ||||||||||||||
IRLCs | 37,768 | 20,723 | (2,382 | ) | 25,528 | |||||||||
Mortgage loans | 27,510 | 6,693 | 7,876 | 8,636 | ||||||||||
Hedging derivatives | (93,375 | ) | (19,460 | ) | (26,738 | ) | (24,246 | ) | ||||||
$ | 25,949 | $ | 39,760 | $ | 108,560 | $ | 68,487 |
Net_Interest_Income_Expense_Ta
Net Interest Income (Expense) (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Net Interest Income (Expense) | ' | |||||||||||||
Summary of net interest income (expense) | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Interest income: | ||||||||||||||
Short-term investments | $ | 432 | $ | 11 | $ | 635 | $ | 54 | ||||||
Mortgage loans at fair value | 4,661 | 1,903 | 10,675 | 4,437 | ||||||||||
5,093 | 1,914 | 11,310 | 4,491 | |||||||||||
Interest expense: | ||||||||||||||
Assets sold under agreements to repurchase | 2,920 | 1,682 | 8,251 | 3,583 | ||||||||||
Note payable | 681 | 281 | 2,326 | 645 | ||||||||||
Other | 555 | 79 | 1,109 | (2 | ) | |||||||||
4,156 | 2,042 | 11,686 | 4,226 | |||||||||||
Net interest income (expense) | $ | 937 | $ | (128 | ) | $ | (376 | ) | $ | 265 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Summary of the stock-based compensation expense by instrument awarded | ' | |||||||||||||
Quarter ended September 30, | Nine months ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||||
Stock options | $ | 593 | $ | — | $ | 791 | $ | — | ||||||
Performance-based RSUs | 464 | — | 746 | — | ||||||||||
Time-based RSUs | 330 | — | 395 | — | ||||||||||
$ | 1,387 | $ | — | $ | 1,932 | $ | — | |||||||
Summary of assumption used utilizing the options pricing model | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Expected volatility (1) | — | 45% | ||||||||||||
Expected dividends | — | 0% | ||||||||||||
Risk-free rate | — | 0.03% - 2.30% | ||||||||||||
Annualized grantee forfeiture rate | — | 6.2% - 19.2% | ||||||||||||
(1) Based on historical volatilities of comparable companies’ common stock. | ||||||||||||||
Summary of Stock Option award activity and compensation expense | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of Stock Options | ||||||||||||||
Outstanding at beginning of period | 423,407 | — | ||||||||||||
Granted | — | 423,407 | ||||||||||||
Exercised | — | — | ||||||||||||
Expired or canceled | 253 | 253 | ||||||||||||
Outstanding at end of period | 423,154 | 423,154 | ||||||||||||
Weighted-average exercise price: | ||||||||||||||
Outstanding at beginning of period | $ | 21.03 | $ | — | ||||||||||
Granted | — | 21.03 | ||||||||||||
Exercised | — | — | ||||||||||||
Expired or canceled | 21.03 | 21.03 | ||||||||||||
Outstanding at end of period | $ | 21.03 | $ | 21.03 | ||||||||||
Exercisable at end of period | — | — | ||||||||||||
Available for future grant | — | — | ||||||||||||
Weighted-average remaining contractual term (in years): | ||||||||||||||
Outstanding at end of period | 9.7 | — | ||||||||||||
Exercisable at end of period | — | — | ||||||||||||
Aggregate intrinsic value: | ||||||||||||||
Outstanding at end of period | $ | — | $ | — | ||||||||||
Exercisable at end of period | $ | — | $ | — | ||||||||||
Schedule of inputs for grants | ' | |||||||||||||
Input | Quarter ended | Nine months ended | ||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Expected volatility | — | 45% | ||||||||||||
Expected dividends | — | 0% | ||||||||||||
Risk-free interest rate | — | 0.3%-2.3% | ||||||||||||
Annualized grantee forfeiture rate | — | 6.2%-19.2% | ||||||||||||
Performance-based RSUs | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Summary of RSU activity | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of units | ||||||||||||||
Outstanding at beginning of period | 499,364 | — | ||||||||||||
Granted | — | 499,364 | ||||||||||||
Vested | — | — | ||||||||||||
Expired or canceled | 253 | 253 | ||||||||||||
Outstanding at end of period | 499,111 | 499,111 | ||||||||||||
Weighted-average grant date fair value: | ||||||||||||||
Outstanding at beginning of period | $ | 11.58 | $ | — | ||||||||||
Granted | $ | — | $ | 11.58 | ||||||||||
Vested | $ | — | $ | — | ||||||||||
Expired or canceled | $ | 11.58 | $ | 11.58 | ||||||||||
Outstanding at end of period | $ | 11.58 | $ | 11.58 | ||||||||||
Compensation expense recorded during the period (in thousands) | $ | 464 | $ | 746 | ||||||||||
Period end: | ||||||||||||||
Unamortized compensation cost (in thousands) | $ | 3,816 | ||||||||||||
Time-based RSUs | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Summary of RSU activity | ' | |||||||||||||
Quarter ended | Nine months ended | |||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||
Number of units | ||||||||||||||
Outstanding at beginning of period | 70,826 | — | ||||||||||||
Granted | 27,407 | 98,233 | ||||||||||||
Vested | — | — | ||||||||||||
Expired or canceled | 126 | 126 | ||||||||||||
Outstanding at end of period | 98,107 | 98,107 | ||||||||||||
Weighted-average grant date fair value: | ||||||||||||||
Outstanding at beginning of period | $ | 17.51 | $ | — | ||||||||||
Granted | $ | 19.37 | $ | 18.03 | ||||||||||
Vested | $ | — | $ | — | ||||||||||
Expired or canceled | $ | 17.51 | $ | 17.51 | ||||||||||
Outstanding at end of period | $ | 18.03 | $ | 18.03 | ||||||||||
Compensation expense recorded during the period (in thousands) | $ | 330 | $ | 395 | ||||||||||
Period end: | ||||||||||||||
Unamortized compensation cost (in thousands) | $ | 979 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Supplemental Cash Flow Information | ' | |||||||
Schedule of supplemental cash flow information | ' | |||||||
Nine months ended September 30, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Cash paid for interest | $ | 11,110 | $ | 3,506 | ||||
Cash paid for income taxes | $ | 7 | $ | — | ||||
Non-cash investing activity: | ||||||||
Receipt of MSRs created in loan sales activities | $ | 154,352 | $ | 51,006 |
Regulatory_Net_Worth_and_Agenc1
Regulatory Net Worth and Agency Capital Requirements (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Regulatory Net Worth and Agency Capital Requirements | ' | |||||||||||||
Summary of agencies' capital requirements by each agency | ' | |||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||
Requirement - company subject to requirement | Net worth (1) | Required | Net worth (1) | Required | ||||||||||
(in thousands) | ||||||||||||||
Fannie Mae - PLS | $ | 273,445 | $ | 54,546 | $ | 172,843 | $ | 35,947 | ||||||
Freddie Mac - PLS | $ | 273,798 | $ | 53,751 | $ | 173,273 | $ | 27,119 | ||||||
Ginnie Mae: | ||||||||||||||
Issuer — PLS | $ | 260,032 | $ | 45,625 | $ | 152,782 | $ | 23,886 | ||||||
Issuer’s parent — PennyMac | $ | 554,841 | $ | 50,188 | $ | 227,560 | $ | 26,275 | ||||||
HUD - PLS | $ | 260,032 | $ | 195,891 | $ | 152,782 | $ | 1,000 | ||||||
(1) Calculated in compliance with the respective Agency’s requirements. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies. | ' | ||||
Schedule of commitments to fund and sell mortgage loans | ' | ||||
September 30, 2013 | |||||
(in thousands) | |||||
Commitments to purchase mortgage loans from PMT | $ | 1,022,670 | |||
Commitments to fund mortgage loans | 140,861 | ||||
$ | 1,163,531 | ||||
Commitments to sell mortgage loans | $ | 3,086,889 |
Segments_and_Related_Informati1
Segments and Related Information (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Segments and Related Information | ' | ||||||||||
Summary of financial highlights by operating segment | ' | ||||||||||
Quarter ended September 30, 2013 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 25,949 | $ | — | $ | 25,949 | |||||
Loan origination fees | 6,280 | — | 6,280 | ||||||||
Fulfillment fees from PMT | 18,327 | — | 18,327 | ||||||||
Net servicing income | 21,399 | — | 21,399 | ||||||||
Management fees | — | 10,540 | 10,540 | ||||||||
Carried Interest from Investment Funds | — | 2,812 | 2,812 | ||||||||
Net interest income: | |||||||||||
Interest income | 5,089 | 4 | 5,093 | ||||||||
Interest expense | (4,156 | ) | — | (4,156 | ) | ||||||
933 | 4 | 937 | |||||||||
Other | (22 | ) | 972 | 950 | |||||||
72,866 | 14,328 | 87,194 | |||||||||
Expenses: | |||||||||||
Compensation | 33,969 | 1,861 | 35,830 | ||||||||
Other | 16,240 | 207 | 16,447 | ||||||||
50,209 | 2,068 | 52,277 | |||||||||
Income before provision for income taxes | $ | 22,657 | $ | 12,260 | $ | 34,917 | |||||
Segment assets at period end | $ | 1,208,156 | $ | 46,228 | $ | 1,254,384 | |||||
Quarter ended September 30, 2012 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 39,760 | $ | — | $ | 39,760 | |||||
Loan origination fees | 2,752 | — | 2,752 | ||||||||
Fulfillment fees from PMT | 17,258 | — | 17,258 | ||||||||
Net servicing income | 6,112 | — | 6,112 | ||||||||
Management fees | — | 6,114 | 6,114 | ||||||||
Carried Interest from Investment Funds | — | 3,355 | 3,355 | ||||||||
Net interest income (expense): | |||||||||||
Interest income | 1,913 | 1 | 1,914 | ||||||||
Interest expense | (2,042 | ) | — | (2,042 | ) | ||||||
(129 | ) | 1 | (128 | ) | |||||||
Other | 1 | 1,008 | 1,009 | ||||||||
65,754 | 10,478 | 76,232 | |||||||||
Expenses: | |||||||||||
Compensation | 29,089 | 2,767 | 31,856 | ||||||||
Other | 6,375 | 138 | 6,513 | ||||||||
35,464 | 2,905 | 38,369 | |||||||||
Income before provision for income taxes | $ | 30,290 | $ | 7,573 | $ | 37,863 | |||||
Segment assets at period end | $ | 709,733 | $ | 17,529 | $ | 727,262 | |||||
Nine months ended September 30, 2013 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 108,560 | $ | — | $ | 108,560 | |||||
Loan origination fees | 18,260 | — | 18,260 | ||||||||
Fulfillment fees from PMT | 68,625 | — | 68,625 | ||||||||
Net servicing income | 59,510 | — | 59,510 | ||||||||
Management fees | — | 29,375 | 29,375 | ||||||||
Carried Interest from Investment Funds | — | 10,411 | 10,411 | ||||||||
Net interest income (expense): | |||||||||||
Interest income | 11,296 | 14 | 11,310 | ||||||||
Interest expense | (11,686 | ) | — | (11,686 | ) | ||||||
(390 | ) | 14 | (376 | ) | |||||||
Other | (22 | ) | 1,796 | 1,774 | |||||||
254,543 | 41,596 | 296,139 | |||||||||
Expenses: | |||||||||||
Compensation | 106,584 | 7,266 | 113,850 | ||||||||
Other | 41,354 | 496 | 41,850 | ||||||||
147,938 | 7,762 | 155,700 | |||||||||
Income before provision for income taxes | $ | 106,605 | $ | 33,834 | $ | 140,439 | |||||
Segment assets at period end | $ | 1,208,156 | $ | 46,228 | $ | 1,254,384 | |||||
Nine months ended September 30, 2012 | |||||||||||
Mortgage | Investment | Total | |||||||||
banking | management | ||||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Net gains on mortgage loans held for sale at fair value | $ | 68,487 | $ | — | $ | 68,487 | |||||
Loan origination fees | 5,439 | — | 5,439 | ||||||||
Fulfillment fees from PMT | 31,097 | — | 31,097 | ||||||||
Net servicing income | 25,346 | — | 25,346 | ||||||||
Management fees | — | 15,163 | 15,163 | ||||||||
Carried Interest from Investment Funds | — | 7,255 | 7,255 | ||||||||
Net interest income: | |||||||||||
Interest income | 4,488 | 3 | 4,491 | ||||||||
Interest expense | (4,226 | ) | — | (4,226 | ) | ||||||
262 | 3 | 265 | |||||||||
Other | 1 | 2,514 | 2,515 | ||||||||
130,632 | 24,935 | 155,567 | |||||||||
Expenses: | |||||||||||
Compensation | 71,541 | 6,214 | 77,755 | ||||||||
Other | 14,443 | 466 | 14,909 | ||||||||
85,984 | 6,680 | 92,664 | |||||||||
Income before provision for income taxes | $ | 44,648 | $ | 18,255 | $ | 62,903 | |||||
Segment assets at period end | $ | 709,733 | $ | 17,529 | $ | 727,262 |
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) (USD $) | 0 Months Ended | 9 Months Ended |
14-May-13 | Sep. 30, 2013 | |
Organization and Basis of Presentation | ' | ' |
Tax benefits payable under tax receivable agreement (as a percent) | 85.00% | ' |
Amount of tax benefits under the tax sharing agreement (as a percent) | ' | 85.00% |
Members' equity | ' | ' |
Organization and Basis of Presentation | ' | ' |
Reclassification of members' equity to non-controlling interest | ' | 315,454,000 |
Non-controlling Interest | ' | ' |
Organization and Basis of Presentation | ' | ' |
Reclassification of members' equity to non-controlling interest | ' | -315,454,000 |
Class A Common Stock | ' | ' |
Organization and Basis of Presentation | ' | ' |
Common stock sold in initial public offering (in shares) | 12,800,000 | ' |
Public offering price (in dollars per share) | 18 | ' |
Net proceeds from initial public offering, after deducting net underwriting discounts and commissions | 216,800,000 | ' |
Number of Class A common units purchased | 12,800,000 | ' |
Shares purchased accounted for as a transfer of interests under common control | 12,800,000 | ' |
PCM | ' | ' |
Organization and Basis of Presentation | ' | ' |
Number of investment funds with whom management has management agreement | ' | 3 |
Concentration_of_Risk_Details
Concentration of Risk (Details) (Total Revenues, Advised Entities) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Total Revenues | Advised Entities | ' | ' | ' | ' |
Concentration of Risk | ' | ' | ' | ' |
Percentage of total net revenue | 50.00% | 45.00% | 48.00% | 48.00% |
Significant_Accounting_Policie2
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2013 | |
Significant Accounting Policies | ' |
Amount of cash savings under an agreement (as a percent) | 85.00% |
Transactions_with_Affiliates_D
Transactions with Affiliates (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | 8 Months Ended | 8 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | 1 Months Ended | 8 Months Ended | 1 Months Ended | 8 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 8 Months Ended | 3 Months Ended | 9 Months Ended | 8 Months Ended | 3 Months Ended | 8 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 04, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PMT | PCM | PCM | PCM | PCM | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | Investment Funds | PNMAC Mortgage Opportunity Fund, LLC | PNMAC Mortgage Opportunity Fund, LLC | PNMAC Mortgage Opportunity Fund Investors, LLC | PNMAC Mortgage Opportunity Fund Investors, LLC | ||||||
item | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Management Fees | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Mortgage Loan Servicing | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Correspondent Lending | Mortgage banking services | Warehouse services | Mortgage banking and warehouse services | Investment Activities | Investment Activities | Investment Activities | Investment Activities | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | Conditional Reimbursement | ||||||||||||||||||||||||||
item | item | Minimum | Maximum | 8% return on equity | 8% return on equity | 8% return on equity | 12% return on equity | 12% return on equity | 12% return on equity | In excess of 16% return on equity | In excess of 16% return on equity | Shareholders' equity up to $2 billion | Shareholders' equity in excess of $2 billion and up to $5 billion | Shareholders' equity in excess of $2 billion and up to $5 billion | Shareholders' equity in excess of $2 billion and up to $5 billion | Shareholders' equity in excess of $5 billion | Shareholders' equity in excess of $5 billion | Minimum | Minimum | Maximum | Maximum | Purchases mortgage loans with an aggregate unpaid principal balance in any month greater than $2.5 billion and less than $5 billion | Purchases mortgage loans with an aggregate unpaid principal balance in any month $5 billion | Conventional mortgage loans | Ginnie Mae Mortgage-Backed Securities Guide mortgage loans | HARP mortgage loans with a loan-to-value ratio of 105% or less | HARP mortgage loans with a loan-to-value ratio of greater than 105% | Other mortgage loans | Minimum | Minimum | Minimum | Maximum | Maximum | Minimum | Maximum | |||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | Maximum | Maximum | Minimum | Maximum | Minimum | Purchases mortgage loans with an aggregate unpaid principal balance in any month greater than $2.5 billion and less than $5 billion | Purchases mortgage loans with an aggregate unpaid principal balance in any month $5 billion | HARP mortgage loans with a loan-to-value ratio of 105% or less | Purchases mortgage loans with an aggregate unpaid principal balance in any month greater than $2.5 billion and less than $5 billion | HARP mortgage loans with a loan-to-value ratio of greater than 105% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions with Affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee annual rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.38% | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net income for calculation of performance incentive fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | 15.00% | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of rolling quarters taken as base for performance incentive fee computation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hurdle rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
High watermark | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of change in net income due to quarterly adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee shareholders' equity limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | 2,000,000,000 | 5,000,000,000 | ' | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of return on affiliate's equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 12.00% | ' | 12.00% | 16.00% | ' | 16.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of performance incentive fee payable by issuance of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management and performance incentive fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,104,000 | 3,672,000 | ' | 14,043,000 | 7,964,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance incentive fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,435,000 | ' | ' | 9,443,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fees | 10,540,000 | 6,114,000 | 29,375,000 | 15,163,000 | ' | 8,539,000 | 3,672,000 | 23,486,000 | 7,964,000 | ' | ' | 8,539,000 | 3,672,000 | ' | 23,486,000 | 7,964,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,001,000 | 2,442,000 | 5,889,000 | 7,199,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Multiplier for calculating the termination fee | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for calculating average annual fees | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Renewal period of servicing agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing fee rates per year for nonperforming loans (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing fees amount per month for current loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Servicing fees amount per month for severely delinquent loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base servicing fees per month for fixed-rate non-distressed loans subserviced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base servicing fees per month for adjustable rate non-distressed loans subserviced | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional servicing fee amount per month for delinquent loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental fee per month for each distressed whole loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Supplemental fee per month for each non-distressed subserviced loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan servicing fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,139,000 | 3,518,000 | ' | 19,005,000 | 9,656,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Activity-based | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,599,000 | 1,082,000 | ' | 8,246,000 | 3,507,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,738,000 | 4,600,000 | ' | 27,251,000 | 13,163,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fulfillment fee as a percentage of unpaid principal balance of mortgage loans sold to non-affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | 0.50% | 0.88% | 0.80% | 1.20% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loans, loan-to-value ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 105.00% | ' | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sourcing fee rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold unpaid principal balance of mortgage loans sold to non-affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | 5,000,000,000 | ' | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fulfillment fee reimbursement as a percentage of unpaid principal balance of mortgage loans sold to non-affiliates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03% | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold unpaid principal balance of mortgage loans sold to non-affiliates for calculation of fulfillment fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500,000,000 | 5,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan servicing fee per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 25,000 | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage loan servicing fee per loan (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 | 50 | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lending activity between the entity and affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sourcing fees paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,204,000 | 747,000 | 3,563,000 | 1,448,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fulfillment fee revenue | ' | ' | ' | ' | ' | 18,327,000 | 17,258,000 | 68,625,000 | 31,097,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,327,000 | 17,258,000 | 68,625,000 | 31,097,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans fulfilled for PMT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,681,771,000 | 2,488,443,000 | 12,792,482,000 | 4,828,117,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of loans purchased from PMT | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,147,535,000 | 2,650,097,000 | 12,429,698,000 | 5,111,185,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold percentage of unpaid principal balance with respect to new mortgage loans originating in refinancing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair market value of the aggregate MSRs to be transferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on mortgage loans held for sale | 25,949,000 | 39,760,000 | 108,560,000 | 68,487,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86,000 | 586,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of tax benefits under the tax receivable agreement (as a percent) | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of tax liability under the tax sharing agreement | 58,600,000 | ' | 58,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conditional reimbursement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance incentive fees reimbursement under the management agreement for every $100 of performance incentive fees earned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum performance incentive fees reimbursement within 12-month period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments received | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 388,000 | ' | 601,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foregoing reimbursement of expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement of expenses incurred on behalf of affiliates | 4,486,000 | 1,799,000 | 12,126,000 | 4,894,000 | ' | 1,934,000 | 555,000 | 3,767,000 | 2,420,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,552,000 | 1,244,000 | 8,359,000 | 2,474,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments and settlements during the period | 29,315,000 | 12,239,000 | 94,606,000 | 28,896,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management fees | ' | ' | ' | ' | ' | 8,539,000 | ' | 8,539,000 | ' | 4,473,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,001,000 | ' | 2,001,000 | ' | ' | 2,164,000 | ' | ' | ' | ' | ' | ' |
Servicing fees | ' | ' | ' | ' | ' | 5,152,000 | ' | 5,152,000 | ' | 3,670,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Underwriting fees | ' | ' | ' | ' | ' | 2,131,000 | ' | 2,131,000 | ' | 2,941,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated expenses | ' | ' | ' | ' | ' | 4,208,000 | ' | 4,208,000 | ' | 1,132,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,000 | ' | 47,000 | ' | ' | 1,052,000 | ' | ' | ' | ' | ' | ' |
Loan servicing rebate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -123,000 | ' | -123,000 | ' | ' | -239,000 | ' | ' | ' | ' | ' | ' |
Expense reimbursements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 616,000 | ' | 616,000 | ' | ' | 695,000 | ' | ' | ' | ' | ' | ' |
Total due from affiliate | ' | ' | ' | ' | ' | 20,030,000 | ' | 20,030,000 | ' | 16,691,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,541,000 | ' | 2,541,000 | ' | ' | 3,672,000 | ' | ' | ' | ' | ' | ' |
Investment in affiliate, common shares of beneficial interest (in shares) | ' | ' | ' | ' | ' | 75,000 | ' | 75,000 | ' | 75,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in affiliates, at fair value | ' | ' | ' | ' | ' | 1,700,000 | ' | 1,700,000 | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carried Interest due from affiliates | 58,134,000 | ' | 58,134,000 | ' | 47,723,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 58,134,000 | 44,504,000 | 58,134,000 | 44,504,000 | 55,322,000 | 47,723,000 | 41,149,000 | 37,250,000 | 36,357,000 | 29,785,000 | 21,777,000 | 17,938,000 |
Amounts due to affiliates | ' | ' | ' | ' | ' | $55,523,000 | ' | $55,523,000 | ' | $46,779,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $36,424,000 | ' | $36,424,000 | ' | ' | $36,795,000 | ' | ' | ' | ' | ' | ' |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Basic earnings per share of common stock: | ' | ' |
Net income attributable to common stockholders | $5,197 | $7,990 |
Weighted-average shares outstanding | 17,958 | 16,042 |
Basic earnings per share (in dollars per share) | $0.29 | $0.50 |
Diluted earnings per share of common stock: | ' | ' |
Net income | 5,197 | 7,990 |
Effect of net income attributable to noncontrolling interest, net of tax | 15,685 | 29,595 |
Diluted net income attributable to common stockholders | $20,882 | $37,585 |
Weighted-average common stock outstanding | 17,958 | 16,042 |
Dilutive potential exchangeable PennyMac Class A common units to common stock | 57,888 | 59,804 |
Dilutive potential common stock - issuable under stock-based compensation plans (in shares) | 30 | 21 |
Diluted weighted-average common Stock outstanding | 75,876 | 75,867 |
Diluted earnings per share of common stock (in dollars per share) | $0.28 | $0.50 |
Loan_Sales_and_Servicing_Activ2
Loan Sales and Servicing Activities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
item | item | item | |||
Cash flows : | ' | ' | ' | ' | ' |
Sales proceeds | $4,515,106 | $2,654,125 | $13,210,810 | $5,112,530 | ' |
Servicing fees received | 16,403 | 3,940 | 38,104 | 8,327 | ' |
Net servicing (advances) recoveries | -717 | 1,009 | -4,375 | 2,191 | ' |
Quarter-end information: | ' | ' | ' | ' | ' |
Unpaid principal balance of loans outstanding at period-end | 22,776,613 | 6,444,618 | 22,776,613 | 6,444,618 | ' |
Loans delinquent 30-89 days | 380,070 | 93,069 | 380,070 | 93,069 | ' |
Loans delinquent 90 or more days or in foreclosure or bankruptcy | 247,269 | 39,950 | 247,269 | 39,950 | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Mortgage loans held for sale | 490,088 | ' | 490,088 | ' | 417,742 |
Total loans serviced | 52,872,334 | ' | 52,872,334 | ' | 28,152,549 |
Amount subserviced for the Company | 596,271 | ' | 596,271 | ' | 421,380 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 573,205 | ' | 573,205 | ' | 379,537 |
60 days | 199,757 | ' | 199,757 | ' | 183,450 |
90 days or more | 1,590,539 | ' | 1,590,539 | ' | 964,698 |
Total delinquent mortgage loans | 2,363,501 | ' | 2,363,501 | ' | 1,527,685 |
Loans pending foreclosure | 1,681,597 | ' | 1,681,597 | ' | 1,366,016 |
Total delinquent mortgage loans and loans pending foreclosure | 4,045,098 | ' | 4,045,098 | ' | 2,893,701 |
Custodial funds managed by the Company | 655,552 | ' | 655,552 | ' | 413,642 |
Number of top states for which geographical loan distribution was measured | 5 | ' | 5 | ' | 5 |
California | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 18,952,692 | ' | 18,952,692 | ' | 10,696,508 |
Virginia | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 2,984,671 | ' | 2,984,671 | ' | ' |
Texas | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 2,962,697 | ' | 2,962,697 | ' | 1,223,382 |
Florida | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 2,395,337 | ' | 2,395,337 | ' | 1,385,286 |
Colorado | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 2,109,970 | ' | 2,109,970 | ' | 1,299,295 |
Washington | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | ' | ' | ' | ' | 1,143,849 |
All other states | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 23,466,967 | ' | 23,466,967 | ' | 12,404,229 |
Affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 29,555,254 | ' | 29,555,254 | ' | 16,552,939 |
Agencies | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 21,725,393 | ' | 21,725,393 | ' | 9,860,284 |
Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 1,101,599 | ' | 1,101,599 | ' | 1,321,584 |
Servicing rights owned | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Mortgage loans held for sale | 490,088 | ' | 490,088 | ' | 417,742 |
Total loans serviced | 23,266,701 | ' | 23,266,701 | ' | 11,599,610 |
Amount subserviced for the Company | 42,201 | ' | 42,201 | ' | 45,562 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 307,399 | ' | 307,399 | ' | 191,884 |
60 days | 85,367 | ' | 85,367 | ' | 60,886 |
90 days or more | 168,468 | ' | 168,468 | ' | 112,847 |
Total delinquent mortgage loans | 561,234 | ' | 561,234 | ' | 365,617 |
Loans pending foreclosure | 69,889 | ' | 69,889 | ' | 75,329 |
Total delinquent mortgage loans and loans pending foreclosure | 631,123 | ' | 631,123 | ' | 440,946 |
Custodial funds managed by the Company | 389,267 | ' | 389,267 | ' | 263,562 |
Servicing rights owned | Agencies | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 21,725,393 | ' | 21,725,393 | ' | 9,860,284 |
Servicing rights owned | Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 1,051,220 | ' | 1,051,220 | ' | 1,321,584 |
Contract servicing and subservicing | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced | 29,605,633 | ' | 29,605,633 | ' | 16,552,939 |
Amount subserviced for the Company | 554,070 | ' | 554,070 | ' | 375,818 |
Delinquent mortgage loans: | ' | ' | ' | ' | ' |
30 days | 265,806 | ' | 265,806 | ' | 187,653 |
60 days | 114,390 | ' | 114,390 | ' | 122,564 |
90 days or more | 1,422,071 | ' | 1,422,071 | ' | 851,851 |
Total delinquent mortgage loans | 1,802,267 | ' | 1,802,267 | ' | 1,162,068 |
Loans pending foreclosure | 1,611,708 | ' | 1,611,708 | ' | 1,290,687 |
Total delinquent mortgage loans and loans pending foreclosure | 3,413,975 | ' | 3,413,975 | ' | 2,452,755 |
Custodial funds managed by the Company | 266,285 | ' | 266,285 | ' | 150,080 |
Contract servicing and subservicing | Affiliated entities | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | 29,555,254 | ' | 29,555,254 | ' | 16,552,939 |
Contract servicing and subservicing | Private investors | ' | ' | ' | ' | ' |
Mortgage servicing portfolio | ' | ' | ' | ' | ' |
Total loans serviced, excluding loans held for sale | $50,379 | ' | $50,379 | ' | ' |
Netting_of_Financial_Instrumen2
Netting of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | $21,731 | $4,430 |
Gross amounts offset in the balance sheet | -19,382 | -1,091 |
Net amounts of assets presented in the balance sheet | 2,349 | 3,339 |
Total | ' | ' |
Gross amounts of recognized assets | 43,448 | 28,381 |
Net amounts of assets presented in the balance sheet | 24,066 | 27,290 |
Net amount | 24,066 | 27,290 |
Nomura | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 1,036 | ' |
Net amount | 1,036 | ' |
Goldman Sachs | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 591 | ' |
Net amount | 591 | ' |
Bank of America, N.A. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 1,782 |
Net amount | ' | 1,782 |
Citibank, N.A. | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 522 |
Net amount | ' | 522 |
Bank of NY Mellon | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 311 |
Net amount | ' | 311 |
Wells Fargo | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | ' | 18 |
Net amount | ' | 18 |
Other | ' | ' |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 722 | 706 |
Net amount | 722 | 706 |
MBS put options | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | ' | 967 |
Forward contracts | Purchases | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 21,226 | 1,645 |
Forward contracts | Sales | ' | ' |
Derivatives subject to master netting arrangements: | ' | ' |
Gross amounts of recognized assets | 505 | 1,818 |
IRLCs | ' | ' |
Derivatives not subject to master netting arrangements | ' | ' |
Gross amounts of recognized assets | 21,717 | 23,951 |
Total | ' | ' |
Net amounts of assets presented in the balance sheet | 21,717 | 23,951 |
Net amount | $21,717 | $23,951 |
Netting_of_Financial_Instrumen3
Netting of Financial Instruments (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | $48,284 | $2,283 |
Netting | -42,667 | -1,785 |
Net amounts of assets presented in the balance sheet | 5,617 | 498 |
Total derivatives | ' | ' |
Gross amounts of recognized liabilities | 48,443 | 2,294 |
Net amounts of liabilities presented in the consolidated balance sheet | 5,776 | 509 |
Total | ' | ' |
Gross amounts of recognized liabilities | 436,326 | 395,828 |
Gross amounts offset in the consolidated balance sheet | -42,667 | -1,785 |
Net amounts of liabilities presented in the consolidated balance sheet | 393,659 | 394,043 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -387,883 | -393,534 |
Net amount | 5,776 | 509 |
Bank of America, N.A. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 200,074 | 150,082 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -199,423 | -150,082 |
Net amount | 651 | ' |
Credit Suisse First Boston Mortgage Capital LLC | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 188,645 | 122,443 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | -188,460 | -122,252 |
Net amount | 185 | 191 |
Daiwa Capital Markets | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 1,589 | 20 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 1,589 | 20 |
Morgan Stanley Bank, N.A. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 543 | 53 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 543 | 53 |
Bank of NY Mellon | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 524 | ' |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 524 | ' |
Citibank, N.A. | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 34 | 121,200 |
Gross amounts not offset in the balance sheet | ' | ' |
Financial instruments | ' | -121,200 |
Net amount | 34 | ' |
Other | ' | ' |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 2,091 | 234 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | 2,091 | 234 |
Mortgage loans | ' | ' |
Mortgage loans sold under agreements to repurchase | ' | ' |
Gross amounts of recognized liabilities | 387,883 | 393,534 |
Net amounts of liabilities presented in the consolidated balance sheet | 387,883 | 393,534 |
Forward contracts | Purchases | ' | ' |
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | 215 | 389 |
Forward contracts | Sales | ' | ' |
Derivatives: Subject to a master netting arrangement: | ' | ' |
Gross amounts of recognized liabilities | 48,069 | 1,894 |
IRLCs | ' | ' |
Derivatives not subject to a master netting arrangement | ' | ' |
Gross amounts of recognized liabilities | 159 | 11 |
Total | ' | ' |
Net amounts of liabilities presented in the consolidated balance sheet | 159 | 11 |
Gross amounts not offset in the balance sheet | ' | ' |
Net amount | $159 | $11 |
Fair_Value_Details
Fair Value (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair value | ' | ' |
Interest rate threshold used in determination of accounting for loans underlying mortgage servicing rights (as a percent) | 4.50% | ' |
Assets: | ' | ' |
Short-term investments at fair value | $127,487 | $53,164 |
Mortgage loans held for sale at fair value | 530,248 | 448,384 |
Mortgage servicing rights at fair value | 26,768 | 19,798 |
Derivative assets: | ' | ' |
Total derivative assets before netting | 43,448 | 28,381 |
Netting | -19,382 | -1,091 |
Total derivative assets | 24,066 | 27,290 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 48,443 | 2,294 |
Netting | -42,667 | -1,785 |
Total derivative liabilities | 5,776 | 509 |
PMT | ' | ' |
Assets: | ' | ' |
Investment in PMT | 1,701 | 1,897 |
Recurring basis | Level 1 | ' | ' |
Assets: | ' | ' |
Short-term investments at fair value | 127,487 | 53,164 |
Derivative assets: | ' | ' |
Total assets | 129,188 | 55,061 |
Recurring basis | Level 1 | PMT | ' | ' |
Assets: | ' | ' |
Investment in PMT | 1,701 | 1,897 |
Recurring basis | Level 2 | ' | ' |
Assets: | ' | ' |
Mortgage loans held for sale at fair value | 526,063 | 448,384 |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,731 | 4,430 |
Total derivative assets | 21,731 | 4,430 |
Total assets | 547,794 | 452,814 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 48,284 | 2,283 |
Total derivative liabilities | 48,284 | 2,283 |
Total liabilities | 48,284 | ' |
Recurring basis | Level 2 | Forward contracts | Purchases | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,226 | 1,645 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 215 | 389 |
Recurring basis | Level 2 | Forward contracts | Sales | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 505 | 1,818 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 48,069 | 1,894 |
Recurring basis | Level 2 | MBS put options | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | ' | 967 |
Recurring basis | Level 3 | ' | ' |
Assets: | ' | ' |
Mortgage loans held for sale at fair value | 4,185 | ' |
Mortgage servicing rights at fair value | 26,768 | 19,798 |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,717 | 23,951 |
Total derivative assets | 21,717 | 23,951 |
Total assets | 52,670 | 43,749 |
Derivative liabilities: | ' | ' |
Excess servicing spread financing at fair value | 2,857 | ' |
Total derivative liabilities before netting | 159 | 11 |
Total derivative liabilities | 159 | 11 |
Total liabilities | 3,016 | ' |
Recurring basis | Level 3 | Interest rate lock commitments | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,717 | 23,951 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 159 | 11 |
Recurring basis | Total | ' | ' |
Assets: | ' | ' |
Short-term investments at fair value | 127,487 | 53,164 |
Mortgage loans held for sale at fair value | 530,248 | 448,384 |
Mortgage servicing rights at fair value | 26,768 | 19,798 |
Derivative assets: | ' | ' |
Total derivative assets before netting | 43,448 | 28,381 |
Netting | -19,382 | -1,091 |
Total derivative assets | 24,066 | 27,290 |
Total assets | 710,270 | 550,533 |
Derivative liabilities: | ' | ' |
Excess servicing spread financing at fair value | 2,857 | ' |
Total derivative liabilities before netting | 48,443 | 2,294 |
Netting | -42,667 | -1,785 |
Total derivative liabilities | 5,776 | 509 |
Total liabilities | 8,633 | ' |
Recurring basis | Total | PMT | ' | ' |
Assets: | ' | ' |
Investment in PMT | 1,701 | 1,897 |
Recurring basis | Total | Interest rate lock commitments | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,717 | 23,951 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 159 | 11 |
Recurring basis | Total | Forward contracts | Purchases | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 21,226 | 1,645 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 215 | 389 |
Recurring basis | Total | Forward contracts | Sales | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | 505 | 1,818 |
Derivative liabilities: | ' | ' |
Total derivative liabilities before netting | 48,069 | 1,894 |
Recurring basis | Total | MBS put options | ' | ' |
Derivative assets: | ' | ' |
Total derivative assets before netting | ' | $967 |
Fair_Value_Details_2
Fair Value (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Transfers in or out the levels | ' | ' | $0 | ' |
Recurring basis | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 11,385 | 36,159 | 43,738 | 33,603 |
Repurchases | ' | ' | 5,529 | ' |
Repayments | -436 | ' | -1,059 | ' |
Interest rate lock commitments issued, net | 23,788 | 48,044 | 78,722 | 65,192 |
Purchases of MSR | 1,116 | ' | 5,124 | ' |
Sales of MSR | ' | ' | -550 | ' |
Servicing received as proceeds from sales of mortgage loans | 4,157 | 30 | 4,177 | 772 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | 9,106 | -2,111 | -17,355 | -5,230 |
Total changes in fair value included in income | 9,106 | -2,111 | -17,355 | -5,230 |
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | 3,395 | -27,449 | -65,815 | -39,664 |
Balance at the end of the period | 52,511 | 54,673 | 52,511 | 54,673 |
Recurring basis | Excess servicing spread financing | ' | ' | ' | ' |
Roll forward of liabilities measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Initial proceeds received from financing of excess servicing spread | 2,828 | ' | 2,828 | ' |
Changes in fair value included in income | 29 | ' | 29 | ' |
Balance at the end of the period | 2,857 | ' | 2,857 | ' |
Changes in fair value recognized during the period relating to liability still held at the end of the period | 29 | ' | 29 | ' |
Accumulated changes in fair value relating to liability still held at the end of the period | 29 | ' | 29 | ' |
Recurring basis | Mortgage loans held for sale at fair value | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 4,525 | ' | ' | ' |
Repurchases | ' | ' | 5,529 | ' |
Repayments | -436 | ' | -1,059 | ' |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | 96 | ' | -285 | ' |
Total changes in fair value included in income | 96 | ' | -285 | ' |
Balance at the end of the period | 4,185 | ' | 4,185 | ' |
Changes in fair value recognized during the period relating to assets still held at the end of the period | 16 | ' | -344 | ' |
Accumulated changes in fair value relating to assets still held at the end of the period | 96 | ' | -285 | ' |
Recurring basis | Mortgage servicing rights | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | 23,070 | 23,449 | 19,798 | 25,698 |
Purchases of MSR | 1,116 | ' | 5,124 | ' |
Sales of MSR | ' | ' | -550 | ' |
Servicing received as proceeds from sales of mortgage loans | 4,157 | 30 | 4,177 | 772 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | -1,575 | -2,239 | -1,781 | -5,230 |
Total changes in fair value included in income | -1,575 | -2,239 | -1,781 | -5,230 |
Balance at the end of the period | 26,768 | 21,240 | 26,768 | 21,240 |
Changes in fair value recognized during the period relating to assets still held at the end of the period | -1,575 | -2,239 | -1,781 | -5,230 |
Recurring basis | Net interest rate lock commitments | ' | ' | ' | ' |
Roll forward of assets measured using Level 3 inputs on a recurring basis | ' | ' | ' | ' |
Balance at the beginning of the period | -16,210 | 12,710 | 23,940 | 7,905 |
Interest rate lock commitments issued, net | 23,788 | 48,044 | 78,722 | 65,192 |
Changes in fair value included in income arising from: | ' | ' | ' | ' |
Other factors | 10,585 | 128 | -15,289 | ' |
Total changes in fair value included in income | 10,585 | 128 | -15,289 | ' |
Transfers of interest rate lock commitments (asset) liability to mortgage loans acquired for sale | 3,395 | -27,449 | -65,815 | -39,664 |
Balance at the end of the period | 21,558 | 33,433 | 21,558 | 33,433 |
Changes in fair value recognized during the period relating to assets still held at the end of the period | 21,558 | 33,433 | 21,558 | 33,433 |
Accumulated changes in fair value relating to assets still held at the end of the period | $21,558 | $33,433 | $21,558 | $33,433 |
Fair_Value_Details_3
Fair Value (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | ($7,635) | $53,840 | $10,647 | $102,975 |
Excess servicing spread financing at fair value | -29 | ' | -29 | ' |
Change in fair value of mortgage loans held for sale at fair value | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -6,060 | 56,079 | 12,428 | 108,205 |
Net servicing income | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -1,575 | -2,239 | -1,781 | -5,230 |
Excess servicing spread financing at fair value | -29 | ' | -29 | ' |
Mortgage loans held for sale at fair value | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -6,060 | 56,079 | 12,428 | 108,205 |
Mortgage loans held for sale at fair value | Change in fair value of mortgage loans held for sale at fair value | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -6,060 | 56,079 | 12,428 | 108,205 |
Mortgage servicing rights at fair value | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | -1,575 | -2,239 | -1,781 | -5,230 |
Mortgage servicing rights at fair value | Net servicing income | ' | ' | ' | ' |
Gains (losses) from changes in estimated fair values included in earnings for financial statement items carried at estimated fair value | ' | ' | ' | ' |
Total gains (losses) from changes in estimated fair values included in earnings | ($1,575) | ($2,239) | ($1,781) | ($5,230) |
Fair_Value_Details_4
Fair Value (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair value | ' | ' |
Total fair value | $530,248 | $448,384 |
Mortgage loans held for sale at fair value | ' | ' |
Fair value | ' | ' |
Current through 89 days delinquent | 529,244 | 447,889 |
90 or more days delinquent | 1,004 | 495 |
Total fair value | 530,248 | 448,384 |
Principal amount due upon maturity | ' | ' |
Current through 89 days delinquent | 496,853 | 418,650 |
90 or more days delinquent | 1,297 | 623 |
Total principal amount due upon maturity | 498,150 | 419,273 |
Difference | ' | ' |
Current through 89 days delinquent | 32,391 | 29,239 |
90 or more days delinquent | -293 | -128 |
Total difference | $32,098 | $29,111 |
Fair_Value_Details_5
Fair Value (Details 5) (Nonrecurring basis, USD $) | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Mortgage servicing rights | Mortgage servicing rights | Mortgage servicing rights | Level 3 | Level 3 | Total | Total | |||||
Minimum | Maximum | ||||||||||
Financial statement items measured at fair value on a nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights at lower of amortized cost or fair value | ' | ' | ' | ' | ' | ' | ' | $102,116 | $51,180 | $102,116 | $51,180 |
Total assets | ' | ' | ' | ' | ' | ' | ' | 102,116 | 51,180 | 102,116 | 51,180 |
Total gains (losses) on assets measured at estimated fair values on a nonrecurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage servicing rights at lower of amortized cost or fair value | -1,164 | -1,000 | -521 | -1,784 | ' | ' | ' | ' | ' | ' | ' |
Total gains on assets measured at estimated fair values on a nonrecurring basis | ($1,164) | ($1,000) | ($521) | ($1,784) | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note basis points used for grouping of fixed-rate mortgage loan pools for impairment analysis | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' |
Interest rate threshold for grouping of fixed-rate mortgage loans into pools for impairment analysis | ' | ' | ' | ' | ' | 3.00% | 4.50% | ' | ' | ' | ' |
Maximum initial interest rate threshold for grouping of adjustable rate mortgage loans into a single pool for impairment analysis | ' | ' | ' | ' | 4.50% | ' | ' | ' | ' | ' | ' |
Fair_Value_Details_6
Fair Value (Details 6) (Level 3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Mortgage loans held for sale at fair value | Minimum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 7.80% | ' |
Twelve-month projected housing price index change (as a percent) | 6.70% | ' |
Prepayment speed (as a percent) | 2.10% | ' |
Total prepayment speed (as a percent) | 3.40% | ' |
Mortgage loans held for sale at fair value | Maximum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 13.40% | ' |
Twelve-month projected housing price index change (as a percent) | 7.30% | ' |
Prepayment speed (as a percent) | 5.60% | ' |
Total prepayment speed (as a percent) | 5.70% | ' |
Mortgage loans held for sale at fair value | Weighted average | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Discount rate (as a percent) | 9.20% | ' |
Twelve-month projected housing price index change (as a percent) | 6.80% | ' |
Prepayment speed (as a percent) | 4.80% | ' |
Total prepayment speed (as a percent) | 5.10% | ' |
IRLCs | Minimum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 56.60% | 61.60% |
MSR value expressed as: Servicing fee multiple | 2.1 | 3.2 |
MSR value expressed as: Percentage of unpaid principal balance | 0.40% | 0.60% |
IRLCs | Maximum | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 98.00% | 98.10% |
MSR value expressed as: Servicing fee multiple | 5 | 4.2 |
MSR value expressed as: Percentage of unpaid principal balance | 2.60% | 2.20% |
IRLCs | Weighted average | ' | ' |
Quantitative summary of key inputs or assumptions used in the valuation of financial statement items | ' | ' |
Pull-through rate (as a percent) | 78.30% | 79.10% |
MSR value expressed as: Servicing fee multiple | 4 | 4 |
MSR value expressed as: Percentage of unpaid principal balance | 1.10% | 0.90% |
Fair_Value_Details_7
Fair Value (Details 7) (MSRs, Initial recognition, Level 3, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair value | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | $315,869 | $4,217 | $318,066 | $17,504 |
Weighted-average servicing fee rate (as a percent) | 0.31% | 0.27% | 0.31% | 0.28% |
Fair value | Minimum | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 7.40% | 7.50% | 7.40% | 7.50% |
Annual total prepayment speed (as a percent) | 8.80% | 8.40% | 8.80% | 7.80% |
Life | '3 years 7 months 6 days | '6 years 4 months 24 days | '3 years 7 months 6 days | '5 years 10 months 24 days |
Annual per-loan cost of servicing | 68 | 68 | 68 | 68 |
Fair value | Maximum | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 13.10% | 9.90% | 13.10% | 9.90% |
Annual total prepayment speed (as a percent) | 17.20% | 9.50% | 17.20% | 9.50% |
Life | '7 years | '6 years 8 months 12 days | '7 years | '6 years 10 months 24 days |
Annual per-loan cost of servicing | 120 | 100 | 120 | 100 |
Fair value | Weighted average | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 9.90% | 7.80% | 9.90% | 8.40% |
Annual total prepayment speed (as a percent) | 9.20% | 9.20% | 9.20% | 8.60% |
Life | '6 years 10 months 24 days | '6 years 4 months 24 days | '6 years 10 months 24 days | '6 years 4 months 24 days |
Annual per-loan cost of servicing | 101 | 71 | 101 | 77 |
Amortized cost | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Unpaid principal balance of underlying loans | 4,120,962 | 2,485,982 | 12,350,104 | 4,811,328 |
Weighted-average servicing fee rate (as a percent) | 0.30% | 0.27% | 0.29% | 0.27% |
Amortized cost | Minimum | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 5.40% | 7.50% | 5.40% | 7.50% |
Annual total prepayment speed (as a percent) | 8.50% | 8.40% | 8.50% | 7.80% |
Life | '2 years 10 months 24 days | '6 years 4 months 24 days | '2 years 10 months 24 days | '5 years 10 months 24 days |
Annual per-loan cost of servicing | 68 | 68 | 68 | 68 |
Amortized cost | Maximum | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 15.90% | 9.90% | 15.90% | 9.90% |
Annual total prepayment speed (as a percent) | 14.70% | 9.50% | 18.50% | 9.50% |
Life | '6 years 10 months 24 days | '6 years 8 months 12 days | '6 years 10 months 24 days | '6 years 10 months 24 days |
Annual per-loan cost of servicing | 120 | 100 | 120 | 100 |
Amortized cost | Weighted average | ' | ' | ' | ' |
Key assumptions used in determining the fair value of MSRs at time of initial recognition | ' | ' | ' | ' |
Pricing spread (as a percent) | 8.20% | 9.80% | 8.20% | 9.80% |
Annual total prepayment speed (as a percent) | 8.80% | 8.40% | 8.80% | 8.30% |
Life | '6 years 8 months 12 days | '6 years 8 months 12 days | '6 years 8 months 12 days | '6 years 8 months 12 days |
Annual per-loan cost of servicing | $104 | $99 | $102 | $99 |
Fair_Value_Details_8
Fair Value (Details 8) (Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Excess Servicing Spread | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 6.80% | ' |
Average life (in years) | '6 years 8 months 12 days | ' |
Prepayment speed (as a percent) | 9.10% | ' |
Purchased MSRs backed by distressed mortgage loans | Period end | Fair value | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | $10,125 | $12,370 |
Unpaid principal balance of underlying loans | 1,051,220 | 1,271,478 |
Weighted-average note rate (as a percent) | 5.88% | 6.01% |
Weighted-average servicing fee rate (as a percent) | 0.50% | 0.50% |
Effect on value of 5% adverse change | -252 | -302 |
Effect on value of 10% adverse change | -494 | -590 |
Effect on value of 20% adverse change | -945 | -1,130 |
Effect on value of 5% adverse change | -252 | -273 |
Effect on value of 10% adverse change | -492 | -529 |
Effect on value of 20% adverse change | -951 | -1,040 |
Effect on value of 5% adverse change | -223 | -290 |
Effect on value of 10% adverse change | -447 | -580 |
Effect on value of 20% adverse change | -893 | -1,159 |
Purchased MSRs backed by distressed mortgage loans | Period end | Fair value | Minimum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | 15.30% | 15.30% |
Average life (in years) | '4 years 9 months 18 days | '5 years |
Prepayment speed (as a percent) | 11.70% | 10.70% |
Annual per-loan cost of servicing | 250 | 270 |
Purchased MSRs backed by distressed mortgage loans | Period end | Fair value | Maximum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | 15.30% | 15.30% |
Average life (in years) | '4 years 9 months 18 days | '5 years |
Prepayment speed (as a percent) | 11.70% | 10.70% |
Annual per-loan cost of servicing | 250 | 270 |
Purchased MSRs backed by distressed mortgage loans | Period end | Fair value | Weighted average | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Discount rate (as a percent) | 15.30% | 15.30% |
Average life (in years) | '4 years 9 months 18 days | '5 years |
Prepayment speed (as a percent) | 11.70% | 10.70% |
Annual per-loan cost of servicing | 250 | 270 |
All other MSRs | Period end | Fair value | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | 16,643 | 7,428 |
Unpaid principal balance of underlying loans | 1,700,612 | 1,166,765 |
Weighted-average note rate (as a percent) | 4.68% | 5.22% |
Weighted-average servicing fee rate (as a percent) | 0.27% | 0.26% |
Effect on value of 5% adverse change | -303 | -113 |
Effect on value of 10% adverse change | -596 | -222 |
Effect on value of 20% adverse change | -1,153 | -430 |
Effect on value of 5% adverse change | -376 | -238 |
Effect on value of 10% adverse change | -738 | -462 |
Effect on value of 20% adverse change | -1,423 | -877 |
Effect on value of 5% adverse change | -150 | -77 |
Effect on value of 10% adverse change | -300 | -153 |
Effect on value of 20% adverse change | -601 | -307 |
All other MSRs | Period end | Fair value | Minimum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 6.40% | 7.50% |
Average life (in years) | '2 months 12 days | '2 months 12 days |
Prepayment speed (as a percent) | 8.70% | 9.00% |
Annual per-loan cost of servicing | 68 | 68 |
All other MSRs | Period end | Fair value | Maximum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 17.50% | 19.50% |
Average life (in years) | '14 years 4 months 24 days | '14 years 4 months 24 days |
Prepayment speed (as a percent) | 72.80% | 84.20% |
Annual per-loan cost of servicing | 120 | 140 |
All other MSRs | Period end | Fair value | Weighted average | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 8.90% | 10.60% |
Average life (in years) | '6 years 7 months 6 days | '5 years |
Prepayment speed (as a percent) | 10.60% | 19.20% |
Annual per-loan cost of servicing | 77 | 76 |
All other MSRs | Period end | Amortized cost | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Carrying value | 226,090 | 89,177 |
Unpaid principal balance of underlying loans | 20,024,781 | 8,730,686 |
Weighted-average note rate (as a percent) | 3.57% | 3.65% |
Weighted-average servicing fee rate (as a percent) | 0.28% | 0.28% |
Effect on value of 5% adverse change | -4,833 | -1,814 |
Effect on value of 10% adverse change | -9,488 | -3,562 |
Effect on value of 20% adverse change | -18,303 | -6,870 |
Effect on value of 5% adverse change | -4,696 | -1,751 |
Effect on value of 10% adverse change | -9,238 | -3,446 |
Effect on value of 20% adverse change | -17,891 | -6,674 |
Effect on value of 5% adverse change | -2,383 | -963 |
Effect on value of 10% adverse change | -4,766 | -1,926 |
Effect on value of 20% adverse change | -9,531 | -3,852 |
All other MSRs | Period end | Amortized cost | Minimum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 5.40% | 7.50% |
Average life (in years) | '2 years 7 months 6 days | '2 years 6 months |
Prepayment speed (as a percent) | 8.50% | 8.70% |
Annual per-loan cost of servicing | 68 | 68 |
All other MSRs | Period end | Amortized cost | Maximum | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 15.90% | 16.50% |
Average life (in years) | '6 years 10 months 24 days | '6 years 10 months 24 days |
Prepayment speed (as a percent) | 16.00% | 28.30% |
Annual per-loan cost of servicing | 120 | 140 |
All other MSRs | Period end | Amortized cost | Weighted average | ' | ' |
Quantitative summary of key inputs used in the valuation and the effect on estimated fair value from adverse changes in those assumptions | ' | ' |
Pricing spread (as a percent) | 7.60% | 9.80% |
Average life (in years) | '6 years 8 months 12 days | '6 years 7 months 6 days |
Prepayment speed (as a percent) | 9.00% | 9.20% |
Annual per-loan cost of servicing | $102 | $99 |
Mortgage_Loans_Held_for_Sale_a2
Mortgage Loans Held for Sale at Fair Value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | $530,248 | $448,384 |
Fair value of mortgage loans pledged to secure mortgage loans sold under agreements to repurchase | 522,031 | 438,850 |
Conforming | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 57,651 | 50,003 |
Government-insured or guaranteed | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | 468,412 | 398,381 |
Repurchased mortgage loans | ' | ' |
Mortgage Loans Held for Sale at Fair Value | ' | ' |
Mortgage loans held for sale at fair value | $4,185 | ' |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | $43,448,000 | ' | $43,448,000 | ' | $28,381,000 |
Netting | -19,382,000 | ' | -19,382,000 | ' | -1,091,000 |
Total derivative assets | 24,066,000 | ' | 24,066,000 | ' | 27,290,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 48,443,000 | ' | 48,443,000 | ' | 2,294,000 |
Netting | -42,667,000 | ' | -42,667,000 | ' | -1,785,000 |
Total derivative liabilities | 5,776,000 | ' | 5,776,000 | ' | 509,000 |
Change in fair value of mortgage loans held for sale at fair value | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Net gains (losses) on derivative financial instruments | -4,600,000 | -39,000,000 | 101,900,000 | -64,500,000 | ' |
Amortization, impairment and changes in estimated fair value of mortgage servicing rights | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Net gains (losses) on derivative financial instruments | 0 | ' | -1,300,000 | ' | ' |
Not designated as hedging instrument | ' | ' | ' | ' | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 43,448,000 | ' | 43,448,000 | ' | 28,381,000 |
Netting | -19,382,000 | ' | -19,382,000 | ' | -1,091,000 |
Total derivative assets | 24,066,000 | ' | 24,066,000 | ' | 27,290,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 48,443,000 | ' | 48,443,000 | ' | 2,294,000 |
Netting | -42,667,000 | ' | -42,667,000 | ' | -1,785,000 |
Total derivative liabilities | 5,776,000 | ' | 5,776,000 | ' | 509,000 |
Not designated as hedging instrument | Interest rate lock commitments | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 1,163,531,000 | ' | 1,163,531,000 | ' | 1,576,174,000 |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 21,717,000 | ' | 21,717,000 | ' | 23,951,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 159,000 | ' | 159,000 | ' | 11,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | ' | ' | 1,576,174,000 |
Balance end of period | 1,163,531,000 | ' | 1,163,531,000 | ' | 1,576,174,000 |
Not designated as hedging instrument | Forward contracts | Purchases | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 1,580,434,000 | 901,200,000 | 1,580,434,000 | 901,200,000 | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 21,226,000 | ' | 21,226,000 | ' | 1,645,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 215,000 | ' | 215,000 | ' | 389,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 2,071,590,000 | 545,175,000 | 1,021,981,000 | 130,900,000 | ' |
Additions | 13,386,366,000 | 5,707,334,000 | 35,012,198,000 | 10,197,428,000 | ' |
Dispositions/expirations | -13,877,522,000 | -5,351,309,000 | -34,453,745,000 | -9,427,128,000 | ' |
Balance end of period | 1,580,434,000 | 901,200,000 | 1,580,434,000 | 901,200,000 | ' |
Not designated as hedging instrument | Forward contracts | Sales | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | 3,086,889,000 | 2,511,188,000 | 3,086,889,000 | 2,511,188,000 | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | 505,000 | ' | 505,000 | ' | 1,818,000 |
Derivative liabilities, fair value | ' | ' | ' | ' | ' |
Total derivative liabilities before netting | 48,069,000 | ' | 48,069,000 | ' | 1,894,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 4,226,940,000 | 1,522,674,000 | 2,621,948,000 | 510,569,000 | ' |
Additions | 18,727,428,000 | 8,324,782,000 | 51,199,986,000 | 16,424,121,000 | ' |
Dispositions/expirations | -19,867,479,000 | -7,336,268,000 | -50,735,045,000 | -14,423,502,000 | ' |
Balance end of period | 3,086,889,000 | 2,511,188,000 | 3,086,889,000 | 2,511,188,000 | ' |
Not designated as hedging instrument | MBS call options | ' | ' | ' | ' | ' |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 625,000,000 | 5,000,000 | ' | 3,000,000 | ' |
Additions | 300,000,000 | 5,000,000 | 2,100,000,000 | 168,000,000 | ' |
Dispositions/expirations | -925,000,000 | -10,000,000 | -2,100,000,000 | -171,000,000 | ' |
Not designated as hedging instrument | MBS put options | ' | ' | ' | ' | ' |
Derivative Instruments | ' | ' | ' | ' | ' |
Notional amount | ' | 335,000,000 | ' | 335,000,000 | ' |
Derivative assets, fair value | ' | ' | ' | ' | ' |
Total derivative assets before netting | ' | ' | ' | ' | 967,000 |
Activity for derivative contracts used to hedge the IRLCs and inventory of mortgage loans at notional value | ' | ' | ' | ' | ' |
Balance at beginning of period | 260,000,000 | 210,000,000 | 500,000,000 | 29,000,000 | ' |
Additions | 50,000,000 | 512,000,000 | 2,210,000,000 | 885,000,000 | ' |
Dispositions/expirations | -310,000,000 | -387,000,000 | -2,710,000,000 | -579,000,000 | ' |
Balance end of period | ' | $335,000,000 | ' | $335,000,000 | ' |
Mortgage_Servicing_Rights_Deta
Mortgage Servicing Rights (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | MSRs | MSRs | MSRs | MSRs | ||
Activity in MSRs carried at fair value | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $26,768 | $19,798 | $23,070 | $23,449 | $19,798 | $25,698 |
Additions - servicing resulting from MSR purchases | ' | ' | 1,116 | ' | 5,124 | ' |
Additions - servicing resulting from loan sales | ' | ' | 4,157 | 30 | 4,177 | 772 |
Sales | ' | ' | ' | ' | -550 | ' |
Change in fair value: | ' | ' | ' | ' | ' | ' |
Due to changes in valuation inputs or assumptions used in valuation model | ' | ' | -635 | -882 | 1,233 | -1,218 |
Other changes in fair value | ' | ' | -940 | -1,357 | -3,014 | -4,012 |
Total change in fair value | ' | ' | -1,575 | -2,239 | -1,781 | -5,230 |
Balance at end of period | $26,768 | $19,798 | $26,768 | $21,240 | $26,768 | $21,240 |
Mortgage_Servicing_Rights_Deta1
Mortgage Servicing Rights (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | MSRs | MSRs | MSRs | MSRs | ||
Amortized cost: | ' | ' | ' | ' | ' | ' |
Amortized cost at beginning of period | $226,090 | $89,177 | $179,003 | $30,305 | $92,155 | $6,496 |
Servicing resulting from loan sales | ' | ' | 55,981 | 25,590 | 150,175 | 50,234 |
Amortization | ' | ' | -5,367 | -1,127 | -12,713 | -1,962 |
Amortized cost at end of period | 226,090 | 89,177 | 229,617 | 54,768 | 229,617 | 54,768 |
Valuation allowance for impairment of MSRs: | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | ' | -2,335 | -854 | -2,978 | -70 |
Additions | ' | ' | -1,192 | -1,000 | -549 | -1,784 |
Balance at of period end | ' | ' | -3,527 | -1,854 | -3,527 | -1,854 |
Additional disclosures | ' | ' | ' | ' | ' | ' |
MSRs, net | ' | ' | 226,090 | 52,914 | 226,090 | 52,914 |
Estimated fair value of MSRs at of period end | ' | ' | 239,326 | 53,419 | 239,326 | 53,419 |
Estimated amortization | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | 22,633 | ' | 22,633 | ' |
2015 | ' | ' | 21,637 | ' | 21,637 | ' |
2016 | ' | ' | 20,658 | ' | 20,658 | ' |
2017 | ' | ' | 19,910 | ' | 19,910 | ' |
2018 | ' | ' | 18,859 | ' | 18,859 | ' |
Thereafter | ' | ' | 125,920 | ' | 125,920 | ' |
Total | ' | ' | $229,617 | ' | $229,617 | ' |
Mortgage_Servicing_Rights_Deta2
Mortgage Servicing Rights (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net servicing income | ' | ' | ' | ' |
Ancillary and other fees | $2,777 | $1,153 | $7,700 | $3,661 |
Net servicing income | 21,399 | 6,112 | 59,510 | 25,346 |
MSRs | ' | ' | ' | ' |
Net servicing income | ' | ' | ' | ' |
Contractual servicing fees | 14,596 | 2,154 | 35,397 | 8,776 |
Late charges | 527 | 209 | 1,336 | 682 |
Ancillary and other fees | 140 | 72 | 374 | 194 |
Net servicing income | $15,263 | $2,435 | $37,107 | $9,652 |
Carried_Interest_Due_from_Inve2
Carried Interest Due from Investment Funds (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Investment Funds | Investment Funds | Investment Funds | Investment Funds | ||
item | ||||||
Activity in the carried interest | ' | ' | ' | ' | ' | ' |
Balance at beginning of period | $58,134 | $47,723 | $55,322 | $41,149 | $47,723 | $37,250 |
Carried Interest recognized during the period | ' | ' | 2,812 | 3,355 | 10,411 | 7,254 |
Balance at end of period | $58,134 | $47,723 | $58,134 | $44,504 | $58,134 | $44,504 |
Additional disclosures | ' | ' | ' | ' | ' | ' |
Number of times when agreement will be extended | ' | ' | ' | ' | 3 | ' |
Agreement extensions term | ' | ' | ' | ' | '1 year | ' |
Investment_in_PennyMac_Mortgag2
Investment in PennyMac Mortgage Investment Trust at Fair Value (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | ' | ' | ' |
Change in fair value and dividends received | $950 | $1,009 | $1,774 | $2,515 |
PMT | ' | ' | ' | ' |
Investment in PennyMac Mortgage Investment Trust at Fair Value | ' | ' | ' | ' |
Dividends | 43 | 41 | 128 | 124 |
Change in fair value | 122 | 273 | -196 | 506 |
Change in fair value and dividends received | 165 | 314 | -68 | 630 |
Fair value of PMT shares at period end | $1,701 | $1,753 | $1,701 | $1,753 |
Borrowings_Details
Borrowings (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
item | PMT | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | Loan Repo Facility | |||
Sale and assignment agreement | Bank of America, N.A. | Credit Suisse First Boston Mortgage Capital LLC | Within 30 days | Over 30 to 90 days | Overnight cost-of funds rate | LIBOR | ||||||||
item | item | |||||||||||||
Mortgage loans sold under agreement to repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of borrowing facilities | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of borrowing facilities that provide for sales of mortgage loans under agreements to repurchase | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 |
Number of secured note payable borrowing facilities | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | $387,883,000 | ' | $393,534,000 | ' | $387,883,000 | $361,478,000 | $387,883,000 | $361,478,000 | ' | ' | $423,000 | $387,460,000 | ' | ' |
Unused amount | ' | ' | ' | ' | 612,117,000 | 88,522,000 | 612,117,000 | 88,522,000 | ' | ' | ' | ' | ' | ' |
Weighted average interest rate (as a percent) | ' | ' | ' | ' | 1.82% | 2.38% | 1.82% | 2.38% | ' | ' | ' | ' | ' | ' |
Fair value of mortgage loans securing agreements to repurchase | 522,031,000 | ' | 438,850,000 | ' | 522,031,000 | 408,415,000 | 522,031,000 | 408,415,000 | ' | ' | ' | ' | ' | ' |
During the period: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average balance of mortgage loans sold under agreements to repurchase | ' | ' | ' | ' | 373,386,000 | 219,047,000 | 354,125,000 | 146,425,000 | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | 1.89% | 2.23% | 2.02% | 2.18% | ' | ' | ' | ' | ' | ' |
Total interest expense | ' | ' | ' | ' | 2,920,000 | 1,682,000 | 8,251,000 | 3,583,000 | ' | ' | ' | ' | ' | ' |
Maximum daily amount outstanding | ' | ' | ' | ' | 588,494,000 | 361,588,000 | 623,523,000 | 361,588,000 | ' | ' | ' | ' | ' | ' |
Amortization of commitment fees excluded from calculation of Weighted average interest rate | 3,714,000 | 1,261,000 | ' | ' | 1,100,000 | 423,000 | 2,800,000 | 1,100,000 | ' | ' | ' | ' | ' | ' |
Weighted-average maturity | ' | ' | ' | ' | ' | ' | '2 months 18 days | ' | ' | ' | ' | ' | ' | ' |
Amount at risk | ' | ' | ' | ' | ' | ' | ' | ' | 45,516,000 | 89,917,000 | ' | ' | ' | ' |
Deposit with loan repurchase agreement counterparties | ' | ' | ' | ' | 1,500,000 | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' |
Maturity period from any particular date of determination | ' | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | ' | ' | ' | ' |
Proceeds from sale of right to receive excess cash flow generated from the pool of mortgage loans | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying amount of the financing | ' | ' | ' | $2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings_Details_2
Borrowings (Details 2) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
At period end: | ' | ' |
Note Payable | $56,775,000 | $53,013,000 |
Note Payable | ' | ' |
At period end: | ' | ' |
Note Payable | 56,775,000 | 53,013,000 |
Interest rate | 'lender's overnight cost of funds | ' |
Note Payable | Minimum | ' | ' |
At period end: | ' | ' |
Advance rate to secure note payable (as a percent) | 50.00% | ' |
Note Payable | Maximum | ' | ' |
At period end: | ' | ' |
Maturity period from any particular date of determination | '364 days | ' |
Advance rate to secure note payable (as a percent) | 85.00% | ' |
Note Payable | Servicing advances | ' | ' |
At period end: | ' | ' |
Note Payable | 3,823,000 | 4,905,000 |
Assets pledged to secure notes | 6,865,000 | 7,430,000 |
Advance amount to secure note payable | 17,000,000 | ' |
Note Payable | MSRs | ' | ' |
At period end: | ' | ' |
Note Payable | 52,952,000 | 48,108,000 |
Assets pledged to secure notes | 226,588,000 | 100,957,000 |
Advance amount to secure note payable | $100,000,000 | ' |
Liability_for_Losses_Under_Rep2
Liability for Losses Under Representations and Warranties (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Liability for representations and warranties | ' | ' | ' | ' |
Balance at beginning of the period | $6,185 | $1,387 | $3,504 | $449 |
Provisions for losses on loans sold | 1,069 | 918 | 3,766 | 1,856 |
Incurred losses | -39 | ' | -55 | ' |
Balance at end of period | 7,215 | 2,305 | 7,215 | 2,305 |
Unpaid principal balance of mortgage loans subject to representations and warranties | 20,428,213 | 6,444,618 | 20,428,213 | 6,444,618 |
During the period: | ' | ' | ' | ' |
Unpaid balance of mortgage loans repurchased | 1,973 | ' | 6,840 | ' |
Unpaid principal balance of mortgage loans put to correspondent lenders | 357 | ' | 1,410 | ' |
At period end: | ' | ' | ' | ' |
Unpaid balance of mortgage loans subject to pending claims for repurchase | $1,249 | $3,459 | $1,249 | $3,459 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 |
item | |||
Income Taxes | ' | ' | ' |
Changes to the returns as originally filed | ' | ' | $0 |
Returns currently under examination | ' | 0 | ' |
Deferred expense: | ' | ' | ' |
Federal | 2,823 | 4,339 | ' |
State | 670 | 1,192 | ' |
Total deferred expense | 3,493 | 5,531 | ' |
Total provision for income taxes | $3,493 | $5,531 | ' |
Reconciliation of the entity's provision for income taxes at statutory rates to the provision for income taxes at the entity's effective tax rate | ' | ' | ' |
Federal income tax statutory rate (as a percent) | 35.00% | 35.00% | ' |
Less: rate attributable to non-controlling interest members (as a percent) | -26.30% | -31.60% | ' |
State income taxes, net of federal benefit (as a percent) | 1.20% | 0.60% | ' |
Other (as a percent) | 0.00% | 0.00% | ' |
Valuation allowance (as a percent) | 0.00% | 0.00% | ' |
Effective tax rate (as a percent) | 9.90% | 4.00% | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Deferred expense: | ' | ' | ' |
Investment in PennyMac | $5,491,000 | $7,762,000 | ' |
Net operating loss carryforward | -1,998,000 | -2,231,000 | ' |
Total deferred expense | 3,493,000 | 5,531,000 | ' |
Components of Deferred tax asset | ' | ' | ' |
Taxes currently receivable | 7,000 | 7,000 | ' |
Deferred income tax asset, net | 54,523,000 | 54,523,000 | ' |
Deferred tax asset | 54,530,000 | 54,530,000 | ' |
Deferred income tax assets: | ' | ' | ' |
Investment in PennyMac | 52,292,000 | 52,292,000 | ' |
Net operating loss carryforward | 2,231,000 | 2,231,000 | ' |
Gross deferred tax assets | 54,523,000 | 54,523,000 | 0 |
Deferred income tax liabilities: | ' | ' | ' |
Gross deferred tax liabilities | ' | ' | 0 |
Net deferred income tax asset | 54,523,000 | 54,523,000 | ' |
Net deferred income tax liability | -58,600,000 | -58,600,000 | ' |
Net operating loss carryforward, generally expires in 2033 | 2,200,000 | 2,200,000 | ' |
Unrecognized tax benefits | 0 | 0 | 0 |
Accrual of interest or penalties related to unrecognized tax benefits | $0 | $0 | $0 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 3 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity | ' |
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC before conversion (as a percent) | 83.16% |
Noncontrolling interest in Private National Mortgage Acceptance Company, LLC (as a percent) | 75.11% |
Class A Common Stock | ' |
Stockholders' Equity | ' |
Number of Class A units exchanged for PFSI Class A common stock (in shares) | 6,110,000 |
Net_Gain_on_Mortgage_Loans_Hel2
Net Gain on Mortgage Loans Held for Sale (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash (loss) gain: | ' | ' | ' | ' |
Sales proceeds | ($93,725) | $26,676 | ($148,866) | $49,695 |
Hedging activities | 88,789 | -19,574 | 128,670 | -40,276 |
Cash gain, net of effects of cash hedging, on sale of mortgage loans held for sale | -4,936 | 7,102 | -20,196 | 9,419 |
Non-cash gain: | ' | ' | ' | ' |
Receipt of MSRs in loan sale transactions | 60,137 | 25,620 | 154,352 | 51,006 |
MSR recapture payable to affiliate | -86 | ' | -586 | ' |
Provision for losses relating to representations and warranties provided in on loans sales | -1,069 | -918 | -3,766 | -1,856 |
Change in fair value relating to loans and hedging derivatives held at period end: | ' | ' | ' | ' |
IRLCs | 37,768 | 20,723 | -2,382 | 25,528 |
Mortgage loans | 27,510 | 6,693 | 7,876 | 8,636 |
Hedging derivatives | -93,375 | -19,460 | -26,738 | -24,246 |
Net gains on mortgage loans held for sale at fair value | $25,949 | $39,760 | $108,560 | $68,487 |
Net_Interest_Income_Expense_De
Net Interest Income (Expense) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest income: | ' | ' | ' | ' |
Short-term investments | $432 | $11 | $635 | $54 |
Mortgage loans at fair value | 4,661 | 1,903 | 10,675 | 4,437 |
Interest income | 5,093 | 1,914 | 11,310 | 4,491 |
Interest expense: | ' | ' | ' | ' |
Assets sold under agreements to repurchase | 2,920 | 1,682 | 8,251 | 3,583 |
Note payable | 681 | 281 | 2,326 | 645 |
Other | 555 | 79 | 1,109 | -2 |
Interest expense | 4,156 | 2,042 | 11,686 | 4,226 |
Net interest income (expense) | $937 | ($128) | ($376) | $265 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Stock-Based Compensation | ' | ' |
Units available for future awards under 2013 Equity Incentive Plan (in units) | 120,200,000 | 120,200,000 |
Compensation expense recorded during the period (in dollars) | $1,387 | $1,932 |
Stock Options | ' | ' |
Stock-Based Compensation | ' | ' |
Compensation expense recorded during the period (in dollars) | 593 | 791 |
Percentage of the award vesting at each of the three anniversaries | ' | 33.00% |
Contractual term of the stock options | ' | '10 years |
Expiration term, if employment or other association is terminated due to death or disability | ' | '1 year |
Expiration term, if employment or other association is terminated due to other reason | ' | '3 months |
Expected volatility (as a percent) | ' | 45.00% |
Expected dividend (as a percent) | ' | 0.00% |
Number of Stock Options: | ' | ' |
Outstanding at beginning of period (in shares) | 423,407,000 | ' |
Granted (in shares) | ' | 423,407,000 |
Expired or canceled (in units) | 253,000 | 253,000 |
Outstanding at end of period (in shares) | 423,154,000 | 423,154,000 |
Weighted-average exercise price: | ' | ' |
Outstanding at beginning of period (in dollars per share) | $21.03 | ' |
Granted (in dollars per share) | ' | $21.03 |
Expired or canceled (in dollars per share) | $21.03 | $21.03 |
Outstanding at end of period (in dollars per share) | $21.03 | $21.03 |
Weighted-average remaining contractual term: | ' | ' |
Outstanding at end of period | ' | '9 years 8 months 12 days |
Stock Options | Minimum | ' | ' |
Stock-Based Compensation | ' | ' |
Risk-free rate (as a percent) | ' | 0.03% |
Weighted-average remaining contractual term: | ' | ' |
Annualized grantee forfeiture rate (as a percent) | ' | 0.062 |
Stock Options | Maximum | ' | ' |
Stock-Based Compensation | ' | ' |
Risk-free rate (as a percent) | ' | 2.30% |
Weighted-average remaining contractual term: | ' | ' |
Annualized grantee forfeiture rate (as a percent) | ' | 0.192 |
Time-based RSUs | ' | ' |
Stock-Based Compensation | ' | ' |
Compensation expense recorded during the period (in dollars) | 330 | 395 |
Percentage of the award vesting at each of the three anniversaries | ' | 33.00% |
Number of units: | ' | ' |
Outstanding at beginning of period (in units) | 70,826,000 | ' |
Granted (in units) | 27,407,000 | 98,233,000 |
Expired or canceled (in units) | 126,000 | 126,000 |
Outstanding at end of period (in units) | 98,107,000 | 98,107,000 |
Weighted-Average Exercise Price: | ' | ' |
Outstanding at beginning of period (in dollars per share) | $17.51 | ' |
Granted (in dollars per share) | $19.37 | $18.03 |
Expired or canceled (in dollars per share) | $17.51 | $17.51 |
Outstanding at end of period (in dollars per share) | $18.03 | $18.03 |
Unamortized compensation cost | 979 | 979 |
Time-based RSUs | Minimum | ' | ' |
Weighted-average remaining contractual term: | ' | ' |
Turnover rates (as a percent) | ' | 0.062 |
Time-based RSUs | Maximum | ' | ' |
Weighted-average remaining contractual term: | ' | ' |
Turnover rates (as a percent) | ' | 0.192 |
Time-based RSUs | Class A Common Stock | ' | ' |
Weighted-average remaining contractual term: | ' | ' |
Number of share awarded for each RSU (in shares) | ' | 1 |
Performance-based RSUs | ' | ' |
Stock-Based Compensation | ' | ' |
Compensation expense recorded during the period (in dollars) | 464 | 746 |
Expected volatility (as a percent) | ' | 45.00% |
Expected dividend (as a percent) | ' | 0.00% |
Number of units: | ' | ' |
Outstanding at beginning of period (in units) | 499,364,000 | ' |
Granted (in units) | ' | 499,364,000 |
Expired or canceled (in units) | 253,000 | 253,000 |
Outstanding at end of period (in units) | 499,111,000 | 499,111,000 |
Weighted-Average Exercise Price: | ' | ' |
Outstanding at beginning of period (in dollars per share) | $11.58 | ' |
Granted (in dollars per share) | ' | $11.58 |
Expired or canceled (in dollars per share) | $11.58 | $11.58 |
Outstanding at end of period (in dollars per share) | $11.58 | $11.58 |
Unamortized compensation cost | $3,816 | $3,816 |
Performance-based RSUs | Minimum | ' | ' |
Stock-Based Compensation | ' | ' |
Risk-free rate (as a percent) | ' | 0.30% |
Weighted-average remaining contractual term: | ' | ' |
Annualized grantee forfeiture rate (as a percent) | ' | 0.062 |
Performance-based RSUs | Maximum | ' | ' |
Stock-Based Compensation | ' | ' |
Risk-free rate (as a percent) | ' | 2.30% |
Weighted-average remaining contractual term: | ' | ' |
Annualized grantee forfeiture rate (as a percent) | ' | 0.192 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Supplemental Cash Flow Information | ' | ' | ' | ' |
Cash paid for interest | ' | ' | $11,110 | $3,506 |
Cash paid for income taxes | ' | ' | 7 | ' |
Non-cash investing activity: | ' | ' | ' | ' |
Receipt of MSRs created in loan sales activities | $60,137 | $25,620 | $154,352 | $51,006 |
Regulatory_Net_Worth_and_Agenc2
Regulatory Net Worth and Agency Capital Requirements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fannie Mae - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | $273,445 | $172,843 |
Required | 54,546 | 35,947 |
Freddie Mac - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 273,798 | 173,273 |
Required | 53,751 | 27,119 |
Ginnie Mae - Issuer - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 260,032 | 152,782 |
Required | 45,625 | 23,886 |
Ginnie Mae - Issuer's parent - PennyMac | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 554,841 | 227,560 |
Required | 50,188 | 26,275 |
HUD - PLS | ' | ' |
Regulatory Net Worth and Agency Capital Requirements | ' | ' |
Net worth | 260,032 | 152,782 |
Required | $195,891 | $1,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies. | ' |
Commitments to purchase mortgage loans from PMT | $1,022,670 |
Commitments to fund mortgage loans | 140,861 |
Total commitments to purchase and fund mortgage loans | 1,163,531 |
Commitments to sell mortgage loans | $3,086,889 |
Segments_and_Related_Informati2
Segments and Related Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | |||||
Segments and Related Information | ' | ' | ' | ' | ' |
Number of operating segments | ' | ' | 2 | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | $25,949,000 | $39,760,000 | $108,560,000 | $68,487,000 | ' |
Loan origination fees | 6,280,000 | 2,752,000 | 18,260,000 | 5,439,000 | ' |
Net servicing income | 21,399,000 | 6,112,000 | 59,510,000 | 25,346,000 | ' |
Management fees | 10,540,000 | 6,114,000 | 29,375,000 | 15,163,000 | ' |
Net interest income: | ' | ' | ' | ' | ' |
Interest income | 5,093,000 | 1,914,000 | 11,310,000 | 4,491,000 | ' |
Interest expense | -4,156,000 | -2,042,000 | -11,686,000 | -4,226,000 | ' |
Net interest income (expense) | 937,000 | -128,000 | -376,000 | 265,000 | ' |
Other | 950,000 | 1,009,000 | 1,774,000 | 2,515,000 | ' |
Total net revenue | 87,194,000 | 76,232,000 | 296,139,000 | 155,567,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Compensation | 35,830,000 | 31,856,000 | 113,850,000 | 77,756,000 | ' |
Other | 16,447,000 | 6,513,000 | 41,850,000 | 14,909,000 | ' |
Total expenses | 52,277,000 | 38,369,000 | 155,700,000 | 92,664,000 | ' |
Income before provision for income taxes | 34,917,000 | 37,863,000 | 140,439,000 | 62,903,000 | ' |
Segment assets at period end | 1,254,384,000 | 727,262,000 | 1,254,384,000 | 727,262,000 | 832,163,000 |
PMT | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Fulfillment fees from affiliate | 18,327,000 | 17,258,000 | 68,625,000 | 31,097,000 | ' |
Management fees | 8,539,000 | 3,672,000 | 23,486,000 | 7,964,000 | ' |
Net interest income: | ' | ' | ' | ' | ' |
Other | 165,000 | 314,000 | -68,000 | 630,000 | ' |
Investment Funds | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Management fees | 2,001,000 | 2,442,000 | 5,889,000 | 7,199,000 | ' |
Carried Interest from Investment Funds | 2,812,000 | 3,355,000 | 10,411,000 | 7,254,000 | ' |
Operating segment | Investment Funds | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Carried Interest from Investment Funds | 2,812,000 | 3,355,000 | 10,411,000 | 7,255,000 | ' |
Operating segment | Mortgage banking | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Net gains on mortgage loans held for sale at fair value | 25,949,000 | 39,760,000 | 108,560,000 | 68,487,000 | ' |
Loan origination fees | 6,280,000 | 2,752,000 | 18,260,000 | 5,439,000 | ' |
Net servicing income | 21,399,000 | 6,112,000 | 59,510,000 | 25,346,000 | ' |
Net interest income: | ' | ' | ' | ' | ' |
Interest income | 5,089,000 | 1,913,000 | 11,296,000 | 4,488,000 | ' |
Interest expense | -4,156,000 | -2,042,000 | -11,686,000 | -4,226,000 | ' |
Net interest income (expense) | 933,000 | -129,000 | -390,000 | 262,000 | ' |
Other | -22,000 | 1,000 | -22,000 | 1,000 | ' |
Total net revenue | 72,866,000 | 65,754,000 | 254,543,000 | 130,632,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Compensation | 33,969,000 | 29,089,000 | 106,584,000 | 71,541,000 | ' |
Other | 16,240,000 | 6,375,000 | 41,354,000 | 14,443,000 | ' |
Total expenses | 50,209,000 | 35,464,000 | 147,938,000 | 85,984,000 | ' |
Income before provision for income taxes | 22,657,000 | 30,290,000 | 106,605,000 | 44,648,000 | ' |
Segment assets at period end | 1,208,156,000 | 709,733,000 | 1,208,156,000 | 709,733,000 | ' |
Operating segment | Mortgage banking | PMT | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Fulfillment fees from affiliate | 18,327,000 | 17,258,000 | 68,625,000 | 31,097,000 | ' |
Operating segment | Investment management | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Management fees | 10,540,000 | 6,114,000 | 29,375,000 | 15,163,000 | ' |
Net interest income: | ' | ' | ' | ' | ' |
Interest income | 4,000 | 1,000 | 14,000 | 3,000 | ' |
Net interest income (expense) | 4,000 | 1,000 | 14,000 | 3,000 | ' |
Other | 972,000 | 1,008,000 | 1,796,000 | 2,514,000 | ' |
Total net revenue | 14,328,000 | 10,478,000 | 41,596,000 | 24,935,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Compensation | 1,861,000 | 2,767,000 | 7,266,000 | 6,214,000 | ' |
Other | 207,000 | 138,000 | 496,000 | 466,000 | ' |
Total expenses | 2,068,000 | 2,905,000 | 7,762,000 | 6,680,000 | ' |
Income before provision for income taxes | 12,260,000 | 7,573,000 | 33,834,000 | 18,255,000 | ' |
Segment assets at period end | 46,228,000 | 17,529,000 | 46,228,000 | 17,529,000 | ' |
Operating segment | Investment management | Investment Funds | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Carried Interest from Investment Funds | $2,812,000 | $3,355,000 | $10,411,000 | $7,255,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | 0 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Oct. 02, 2013 | Oct. 02, 2013 | Nov. 11, 2013 | Nov. 01, 2013 | Nov. 01, 2013 | Nov. 11, 2013 |
Subsequent event | Subsequent event | PMT | PMT | PLS | PLS | ||
Maximum | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |||
Fannie Mae | Fannie Mae | Fannie Mae | Ginnie Mae | ||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' |
Purchase of mortgage servicing rights | $5,124 | ' | ' | ' | ' | $10,300,000 | $10,800,000 |
Investment in excess servicing spread associated with MSR portfolio | ' | ' | ' | $86,000 | $62,000 | ' | ' |
Shares registered to be repurchased | ' | ' | 43,973,679 | ' | ' | ' | ' |
Shares issuable upon the exchange of Class A Units | ' | 37,863,679 | ' | ' | ' | ' | ' |
Shares currently held by one of the selling stockholders | ' | 6,110,000 | ' | ' | ' | ' | ' |