0000873860 2012-12-31 0000873860 2011-12-31 0000873860 2012-01-01 2012-12-31 0000873860 2011-01-01 2011-12-31 0000873860 2010-01-01 2010-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2009-12-30 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2009-12-30 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2009-12-30 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2009-12-30 0000873860 us-gaap:NoncontrollingInterestMember ocn:OCNStockholdersMember 2009-12-30 0000873860 2009-12-30 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2010-12-31 0000873860 2010-12-31 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2010-01-01 2010-12-31 0000873860 us-gaap:NoncontrollingInterestMember ocn:OCNStockholdersMember 2010-01-01 2010-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2010-01-01 2010-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2010-01-01 2010-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2010-01-01 2010-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2010-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2010-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2010-12-31 0000873860 us-gaap:NoncontrollingInterestMember ocn:OCNStockholdersMember 2010-12-31 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2011-01-01 2011-12-31 0000873860 us-gaap:NoncontrollingInterestMember ocn:OCNStockholdersMember 2011-01-01 2011-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2011-01-01 2011-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2011-01-01 2011-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2011-01-01 2011-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2011-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2011-12-31 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2011-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2011-12-31 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2012-01-01 2012-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2012-01-01 2012-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2012-01-01 2012-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2012-01-01 2012-12-31 0000873860 us-gaap:CommonStockMember ocn:OCNStockholdersMember 2012-12-31 0000873860 us-gaap:AdditionalPaidInCapitalMember ocn:OCNStockholdersMember 2012-12-31 0000873860 us-gaap:RetainedEarningsMember ocn:OCNStockholdersMember 2012-12-31 0000873860 us-gaap:AccumulatedOtherComprehensiveIncomeMember ocn:OCNStockholdersMember 2012-12-31 0000873860 2009-12-31 0000873860 ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:MatchfundedadvancesMember 2011-01-01 2011-12-31 0000873860 ocn:MatchfundedadvancesMember 2010-01-01 2010-12-31 0000873860 ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember 2011-01-01 2011-12-31 0000873860 ocn:MortgageServicingRightsMember 2010-01-01 2010-12-31 0000873860 ocn:ServicingLiabilitiesMember 2011-01-01 2011-12-31 0000873860 ocn:ServicingLiabilitiesMember 2010-01-01 2010-12-31 0000873860 ocn:ChecksHeldForEscheatMember 2012-01-01 2012-12-31 0000873860 ocn:ChecksHeldForEscheatMember 2011-01-01 2011-12-31 0000873860 ocn:ChecksHeldForEscheatMember 2010-01-01 2010-12-31 0000873860 ocn:CashPaidMember 2012-12-31 0000873860 ocn:CashPaidMember 2011-12-31 0000873860 ocn:CashPaidMember 2010-12-31 0000873860 ocn:CashPaidNetMember 2012-12-31 0000873860 ocn:CashPaidNetMember 2011-12-31 0000873860 ocn:CashPaidNetMember 2010-12-31 0000873860 2013-02-22 0000873860 2012-06-29 0000873860 ocn:EquityMethodInvesteeCorrespondentOneMember 2012-12-31 0000873860 ocn:EquityMethodInvesteeOSIMember 2012-12-31 0000873860 ocn:EquityMethodInvesteeONLMember 2012-12-31 0000873860 ocn:PowerlinkSettlementServicesMember 2012-12-31 0000873860 ocn:RestrictedCashForSecuritizationInvestorsMember 2011-01-01 2011-12-31 0000873860 ocn:LoansNet-RestrictedForSecuritizationInvestorsMember 2011-01-01 2011-12-31 0000873860 ocn:SecuredBorrowingsOwedToSecuritizationInvestorsMember 2011-01-01 2011-12-31 0000873860 ocn:LoanServicingAndSubservicingFeesMember 2012-01-01 2012-12-31 0000873860 us-gaap:ComputerEquipmentMember 2012-01-01 2012-12-31 0000873860 us-gaap:LeaseholdImprovementsMember 2012-01-01 2012-12-31 0000873860 us-gaap:FurnitureAndFixturesMember 2012-01-01 2012-12-31 0000873860 us-gaap:OfficeEquipmentMember 2012-01-01 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember ocn:FixedRateMember 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember ocn:VariableInterestRateMember 2012-12-31 0000873860 us-gaap:LineOfCreditMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember 2012-12-27 2012-12-31 0000873860 ocn:HomewardAcquisitionMember 2012-12-31 0000873860 ocn:AltisourceMember 2012-12-27 2012-12-31 0000873860 ocn:LittonLoanServicingLPMember 2011-09-01 2011-09-30 0000873860 ocn:LittonLoanServicingLPMember 2011-09-30 0000873860 ocn:LittonLoanServicingLPMember 2011-10-01 2011-12-31 0000873860 ocn:LittonLoanServicingLPMember 2011-12-31 0000873860 ocn:LittonLoanServicingLPMember 2011-09-01 2011-12-31 0000873860 2012-12-27 2012-12-31 0000873860 ocn:LittonLoanServicingLPMember 2010-01-01 2010-12-31 0000873860 ocn:HomEqAcquisitionMember 2010-09-01 2010-09-30 0000873860 ocn:HomEqAcquisitionMember 2010-09-30 0000873860 ocn:HomEqAcquisitionMember 2010-09-01 2010-12-31 0000873860 ocn:HomEqAcquisitionMember 2010-12-31 0000873860 ocn:HomEqAcquisitionMember us-gaap:EmployeeSeveranceMember 2010-09-01 2010-12-31 0000873860 ocn:LittonLoanServicingLPMember us-gaap:EmployeeSeveranceMember 2010-09-01 2010-12-31 0000873860 ocn:HomEqAcquisitionMember us-gaap:ContractTerminationMember 2010-09-01 2010-12-31 0000873860 ocn:LittonLoanServicingLPMember us-gaap:ContractTerminationMember 2012-03-01 2012-03-31 0000873860 ocn:HomEqAcquisitionMember 2012-06-01 2012-06-30 0000873860 ocn:HomEqAcquisitionMember us-gaap:ContractTerminationMember 2012-06-01 2012-06-30 0000873860 ocn:HomewardAcquisitionMember 2010-12-31 0000873860 ocn:LittonLoanServicingLPMember 2012-08-01 2012-08-31 0000873860 ocn:HomewardAcquisitionMember 2012-01-01 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:MatchfundedadvancesMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:MatchFundedLiabiltiesMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:AccruedBonusMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:ChecksHeldForEscheatMember 2012-12-31 0000873860 ocn:FiscalYear2012Member ocn:HomewardAcquisitionMember 2012-12-27 2012-12-31 0000873860 ocn:FiscalYear2011Member ocn:HomewardAcquisitionMember 2012-12-27 2012-12-31 0000873860 ocn:LittonAcquisitionMember 2012-01-01 2012-12-31 0000873860 ocn:LittonAcquisitionMember 2011-12-31 0000873860 ocn:LittonAcquisitionMember 2012-12-31 0000873860 ocn:LittonAcquisitionMember ocn:MatchfundedadvancesMember 2011-12-31 0000873860 ocn:LittonAcquisitionMember ocn:MatchfundedadvancesMember 2012-12-31 0000873860 ocn:LittonAcquisitionMember ocn:MortgageServicingRightsMember 2011-12-31 0000873860 ocn:LittonAcquisitionMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:LittonAcquisitionMember 2011-09-01 2011-12-31 0000873860 ocn:FiscalYear2011Member ocn:LittonAcquisitionMember 2012-01-01 2012-12-31 0000873860 ocn:FiscalYear2010Member ocn:LittonAcquisitionMember 2012-01-01 2012-12-31 0000873860 ocn:HomEqAcquisitionMember 2012-01-01 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:MatchfundedadvancesMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:ChecksHeldForEscheatMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:AccruedBonusMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:ServicingLiabilitiesMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember ocn:OtherLiabilitiesAssociatedWithMatchFundedLiabilitiesMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember 2010-01-01 2010-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2009-12-31 0000873860 us-gaap:FacilityClosingMember 2009-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2010-01-01 2010-12-31 0000873860 us-gaap:FacilityClosingMember 2010-01-01 2010-12-31 0000873860 ocn:TotalMember 2010-01-01 2010-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2010-12-31 0000873860 us-gaap:FacilityClosingMember 2010-12-31 0000873860 ocn:TotalMember 2010-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2011-01-01 2011-12-31 0000873860 us-gaap:FacilityClosingMember 2011-01-01 2011-12-31 0000873860 ocn:TotalMember 2011-01-01 2011-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2011-12-31 0000873860 us-gaap:FacilityClosingMember 2011-12-31 0000873860 ocn:TotalMember 2011-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2012-01-01 2012-12-31 0000873860 us-gaap:FacilityClosingMember 2012-01-01 2012-12-31 0000873860 ocn:TotalMember 2012-01-01 2012-12-31 0000873860 us-gaap:EmployeeSeveranceMember 2012-12-31 0000873860 us-gaap:FacilityClosingMember 2012-12-31 0000873860 ocn:TotalMember 2012-12-31 0000873860 ocn:HomEqAcquisitionMember 2011-12-31 0000873860 ocn:AssetSaleTransactionHMember 2012-03-01 2012-03-31 0000873860 2012-03-01 2012-12-31 0000873860 ocn:InitialSaleMember ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:FlowSaleMember ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:InitialSaleMember ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:FlowSaleMember ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:MatchfundedadvancesMember ocn:AdvanceSPEsMember ocn:InitialSaleMember 2012-01-01 2012-12-31 0000873860 ocn:MatchfundedadvancesMember ocn:AdvanceSPEsMember 2012-01-01 2012-12-31 0000873860 ocn:DebtServiceAccountMember ocn:AdvanceSPEsMember ocn:InitialSaleMember 2012-01-01 2012-12-31 0000873860 ocn:DebtServiceAccountMember ocn:AdvanceSPEsMember 2012-01-01 2012-12-31 0000873860 ocn:PrepaidLenderFeesAndDebtIssuanceCostMember ocn:AdvanceSPEsMember ocn:InitialSaleMember 2012-01-01 2012-12-31 0000873860 ocn:PrepaidLenderFeesAndDebtIssuanceCostMember ocn:AdvanceSPEsMember 2012-01-01 2012-12-31 0000873860 ocn:OtherPrepaidExpensesMember ocn:AdvanceSPEsMember ocn:InitialSaleMember 2012-01-01 2012-12-31 0000873860 ocn:OtherPrepaidExpensesMember ocn:AdvanceSPEsMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:InitialSaleMember ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:InitialSaleMember ocn:AccuredInterestPayableAndOtherAccruedExpensesMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:AccuredInterestPayableAndOtherAccruedExpensesMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:InitialSaleMember ocn:AccuredInterestPayableAndOtherAccruedExpensesMember 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:FlowSaleMember ocn:AccuredInterestPayableAndOtherAccruedExpensesMember 2012-12-31 0000873860 ocn:AdvanceSPEsMember ocn:AccuredInterestPayableAndOtherAccruedExpensesMember 2012-12-31 0000873860 ocn:InitialSaleMember 2012-01-01 2012-12-31 0000873860 ocn:FlowSaleMember 2012-01-01 2012-12-31 0000873860 ocn:MatchfundedadvancesMember 2012-01-01 2012-12-31 0000873860 ocn:FairValueMeauredOnARecurringBasisMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember us-gaap:MinimumMember 2012-01-01 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember us-gaap:MaximumMember 2012-01-01 2012-12-31 0000873860 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2012-12-31 0000873860 us-gaap:PortionAtFairValueFairValueDisclosureMember 2012-12-31 0000873860 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2011-12-31 0000873860 us-gaap:PortionAtFairValueFairValueDisclosureMember 2011-12-31 0000873860 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2012-12-31 0000873860 ocn:TotalMember 2012-12-31 0000873860 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2012-01-01 2012-12-31 0000873860 ocn:MSRSMember 2012-01-01 2012-12-31 0000873860 ocn:TotalMember 2012-01-01 2012-12-31 0000873860 ocn:MSRSMember 2012-12-31 0000873860 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2010-12-31 0000873860 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2011-01-01 2011-12-31 0000873860 us-gaap:DerivativeFinancialInstrumentsAssetsMember 2011-12-31 0000873860 ocn:DerivativeFinancialInstrumentsMember 2009-12-31 0000873860 ocn:TradingSecuritiesAuctionRateMember 2009-12-31 0000873860 ocn:TradingSecuritiesSubordinatesAndResidualsMember 2009-12-31 0000873860 ocn:TradingSecuritiesAuctionRateMember 2010-01-01 2010-12-31 0000873860 ocn:DerivativeFinancialInstrumentsMember 2010-01-01 2010-12-31 0000873860 ocn:DerivativeFinancialInstrumentsMember ocn:TradingSecuritiesMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesAuctionRateMember ocn:TradingSecuritiesMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesSubordinatesAndResidualsMember ocn:TradingSecuritiesMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesMember 2010-01-01 2010-12-31 0000873860 ocn:DerivativeFinancialInstrumentsMember ocn:NetIncomeOtherMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesAuctionRateMember ocn:NetIncomeOtherMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesSubordinatesAndResidualsMember ocn:NetIncomeOtherMember 2010-01-01 2010-12-31 0000873860 ocn:NetIncomeOtherMember 2010-01-01 2010-12-31 0000873860 ocn:TradingSecuritiesSubordinatesAndResidualsMember 2010-01-01 2010-12-31 0000873860 ocn:DerivativeFinancialInstrumentsMember 2010-12-31 0000873860 ocn:ServicingPrincipalAndInterestMember 2012-12-31 0000873860 ocn:ServicingPrincipalAndInterestMember 2011-12-31 0000873860 ocn:ServicingTaxesAndInsuranceMember 2012-12-31 0000873860 ocn:ServicingTaxesAndInsuranceMember 2011-12-31 0000873860 ocn:ServicingForeclosuresAndBankruptcyCostsMember 2012-12-31 0000873860 ocn:ServicingForeclosuresAndBankruptcyCostsMember 2011-12-31 0000873860 ocn:ServicingMember 2012-12-31 0000873860 ocn:ServicingMember 2011-12-31 0000873860 ocn:CorporateItemsAndOtherMember 2012-12-31 0000873860 ocn:CorporateItemsAndOtherMember 2011-12-31 0000873860 ocn:MatchfundedadvancesMember 2012-12-31 0000873860 ocn:AcquisitionOfMSRTransactionMember 2012-12-31 0000873860 ocn:AcquisitionOfMSRTransactionMember 2012-01-01 2012-12-31 0000873860 ocn:JPMorganChaseBankMember 2012-12-31 0000873860 ocn:AuroraBankMember 2012-12-31 0000873860 ocn:BankOfAmericaMember 2012-12-31 0000873860 ocn:Fannie_FreddieMember 2012-12-31 0000873860 ocn:FannieMember 2012-12-31 0000873860 2008-01-01 2008-12-31 0000873860 ocn:HLSSMember 2012-12-31 0000873860 ocn:LoanServicingAndSubservicingFeesMember 2011-01-01 2011-12-31 0000873860 ocn:LoanServicingAndSubservicingFeesMember 2010-01-01 2010-12-31 0000873860 ocn:HAMPFeesMember 2012-01-01 2012-12-31 0000873860 ocn:HAMPFeesMember 2011-01-01 2011-12-31 0000873860 ocn:HAMPFeesMember 2010-01-01 2010-12-31 0000873860 ocn:LateFeesMember 2012-01-01 2012-12-31 0000873860 ocn:LateFeesMember 2011-01-01 2011-12-31 0000873860 ocn:LateFeesMember 2010-01-01 2010-12-31 0000873860 ocn:LoanCollectionFeesMember 2012-01-01 2012-12-31 0000873860 ocn:LoanCollectionFeesMember 2011-01-01 2011-12-31 0000873860 ocn:LoanCollectionFeesMember 2010-01-01 2010-12-31 0000873860 ocn:FloatEarningsMember 2012-01-01 2012-12-31 0000873860 ocn:FloatEarningsMember 2011-01-01 2011-12-31 0000873860 ocn:FloatEarningsMember 2010-01-01 2010-12-31 0000873860 us-gaap:OtherIncomeMember 2012-01-01 2012-12-31 0000873860 us-gaap:OtherIncomeMember 2011-01-01 2011-12-31 0000873860 us-gaap:OtherIncomeMember 2010-01-01 2010-12-31 0000873860 ocn:LittonAcquisitionMember 2011-01-01 2011-12-31 0000873860 ocn:HomewardAcquisitionMember 2011-01-01 2011-12-31 0000873860 ocn:HomewardAcquisitionMember 2010-01-01 2010-12-31 0000873860 ocn:MSRAcquistionsMember 2012-01-01 2012-12-31 0000873860 ocn:MSRAcquistionsMember 2011-01-01 2011-12-31 0000873860 ocn:MSRAcquistionsMember 2010-01-01 2010-12-31 0000873860 ocn:InterestRateChangeOf10PercentMember 2012-01-01 2012-12-31 0000873860 ocn:InterestRateChangeOf20PercentMember 2012-01-01 2012-12-31 0000873860 ocn:InterestRateChangeOf10PercentMember 2012-12-31 0000873860 ocn:InterestRateChangeOf20PercentMember 2012-12-31 0000873860 us-gaap:ResidentialMortgageMember 2010-12-31 0000873860 ocn:TotalMember 2010-12-31 0000873860 us-gaap:CommercialRealEstateMember 2010-12-31 0000873860 us-gaap:ResidentialMortgageMember 2011-12-31 0000873860 ocn:TotalMember 2011-12-31 0000873860 us-gaap:CommercialRealEstateMember 2011-12-31 0000873860 us-gaap:ResidentialMortgageMember 2012-12-31 0000873860 us-gaap:CommercialRealEstateMember 2012-12-31 0000873860 ocn:TotalMember 2012-12-31 0000873860 ocn:CaliforniaMember 2012-12-31 0000873860 ocn:CaliforniaMember 2012-01-01 2012-12-31 0000873860 ocn:FloridaMember 2012-12-31 0000873860 ocn:FloridaMember 2012-01-01 2012-12-31 0000873860 ocn:NewYorkMember 2012-12-31 0000873860 ocn:NewYorkMember 2012-01-01 2012-12-31 0000873860 ocn:TexasMember 2012-12-31 0000873860 ocn:TexasMember 2012-01-01 2012-12-31 0000873860 ocn:IllinoisMember 2012-12-31 0000873860 ocn:IllinoisMember 2012-01-01 2012-12-31 0000873860 ocn:OtherStatesMember 2012-12-31 0000873860 ocn:OtherStatesMember 2012-01-01 2012-12-31 0000873860 ocn:ReceivablesMember 2012-12-31 0000873860 ocn:AllowanceforCreditLossesMember 2012-12-31 0000873860 ocn:AffordableHousingMember 2012-12-31 0000873860 ocn:ReceivablesMember 2011-12-31 0000873860 ocn:AllowanceforCreditLossesMember 2011-12-31 0000873860 ocn:AffordableHousingMember 2011-12-31 0000873860 ocn:ReceivablesMember us-gaap:InterestRateCapMember 2011-12-31 0000873860 ocn:AllowanceforCreditLossesMember us-gaap:InterestRateCapMember 2011-12-31 0000873860 us-gaap:InterestRateCapMember 2011-12-31 0000873860 ocn:AffordableHousingMember 2011-12-31 0000873860 ocn:TotalMember 2011-12-31 0000873860 ocn:AffordableHousingMember 2012-01-01 2012-12-31 0000873860 ocn:TotalMember 2012-01-01 2012-12-31 0000873860 ocn:AffordableHousingMember 2012-12-31 0000873860 ocn:TotalMember 2012-12-31 0000873860 us-gaap:ComputerEquipmentMember 2012-12-31 0000873860 us-gaap:ComputerEquipmentMember 2011-12-31 0000873860 ocn:AdvanceFundingFacilityMember 2012-12-31 0000873860 ocn:AdvanceFundingFacilityMember 2011-12-31 0000873860 ocn:SinglefamilyresidentialloansMember 2012-12-31 0000873860 ocn:SinglefamilyresidentialloansMember 2011-12-31 0000873860 ocn:SinglefamilyresidentialloansMember 2012-12-01 2012-12-31 0000873860 2012-11-02 2012-12-31 0000873860 ocn:PowerlinkSettlementServicesMember 2012-12-31 0000873860 ocn:HomewardAcquisitionMember 2012-01-31 0000873860 ocn:VariableFundingNoteSeriesClassAMember 2011-02-01 2012-01-31 0000873860 ocn:ServicerAdvanceRevolvingTrustAMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustAMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustAMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustBMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustBMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustBMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustCMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustCMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustCMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustDMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustDMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustDMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustEMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustEMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustEMember 2011-12-31 0000873860 ocn:PromissoryNoteMember 2012-12-31 0000873860 ocn:PromissoryNoteMember 2012-01-01 2012-12-31 0000873860 ocn:PromissoryNoteMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesAMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesAMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesAMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesBMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesBMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesBMember 2011-12-31 0000873860 ocn:TotalFiixedRateMember 2012-12-31 0000873860 ocn:TotalFiixedRateMember 2011-12-31 0000873860 ocn:VariableFundingNoteSeriesClassAMember 2012-12-31 0000873860 ocn:VariableFundingNoteSeriesClassAMember 2012-01-01 2012-12-31 0000873860 ocn:VariableFundingNoteSeriesClassAMember 2011-12-31 0000873860 ocn:VariableFundingNoteSeriesClassBMember 2012-12-31 0000873860 ocn:VariableFundingNoteSeriesClassBMember 2012-01-01 2012-12-31 0000873860 ocn:VariableFundingNoteSeriesClassBMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesCMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesCMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesCMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesDMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesDMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesDMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesEMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesEMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesEMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesFMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesFMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesFMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustFMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustFMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustFMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustGMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustGMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustGMember 2011-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustHMember 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustHMember 2012-01-01 2012-12-31 0000873860 ocn:ServicerAdvanceRevolvingTrustHMember 2011-12-31 0000873860 ocn:HomewardAgencyAdvanceFundingTrust2012-1Member 2012-12-31 0000873860 ocn:HomewardAgencyAdvanceFundingTrust2012-1Member 2012-01-01 2012-12-31 0000873860 ocn:HomewardAgencyAdvanceFundingTrust2012-1Member 2011-12-31 0000873860 ocn:HomewardDSFAdvanceRevolvingTrust2012-1Member 2012-12-31 0000873860 ocn:HomewardDSFAdvanceRevolvingTrust2012-1Member 2012-01-01 2012-12-31 0000873860 ocn:HomewardDSFAdvanceRevolvingTrust2012-1Member 2011-12-31 0000873860 ocn:ClassA1TermNoteMember 2012-12-31 0000873860 ocn:ClassA1TermNoteMember 2012-01-01 2012-12-31 0000873860 ocn:ClassA1TermNoteMember 2011-12-31 0000873860 ocn:ClassA2VariableFundingNoteMember 2012-12-31 0000873860 ocn:ClassA2VariableFundingNoteMember 2012-01-01 2012-12-31 0000873860 ocn:ClassA2VariableFundingNoteMember 2011-12-31 0000873860 ocn:ClassBTermNoteMember 2012-12-31 0000873860 ocn:ClassBTermNoteMember 2012-01-01 2012-12-31 0000873860 ocn:ClassBTermNoteMember 2011-12-31 0000873860 ocn:ClassCTermNoteMember 2012-12-31 0000873860 ocn:ClassCTermNoteMember 2012-01-01 2012-12-31 0000873860 ocn:ClassCTermNoteMember 2011-12-31 0000873860 ocn:ClassDTermNoteMember 2012-12-31 0000873860 ocn:ClassDTermNoteMember 2012-01-01 2012-12-31 0000873860 ocn:ClassDTermNoteMember 2011-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesGMember 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesGMember 2012-01-01 2012-12-31 0000873860 ocn:AdvanceReceivableBackedNotesSeriesGMember 2011-12-31 0000873860 ocn:TotalVariableRateMember 2012-12-31 0000873860 ocn:TotalVariableRateMember 2011-12-31 0000873860 ocn:MatchFundedLiabiltiesMember 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember 2011-12-31 0000873860 ocn:SeniorSecuredTermLoanMember ocn:LittonAcquisitionMember 2011-07-01 2011-09-30 0000873860 ocn:LittonAcquisitionMember 2011-09-30 0000873860 ocn:HomewardAcquisitionMember 2012-12-01 2012-12-31 0000873860 ocn:SeniorSecuredTermLoanMember 2012-10-01 2012-12-31 0000873860 2012-10-01 2012-12-31 0000873860 ocn:ParticipationAgreementMember us-gaap:MinimumMember 2012-12-31 0000873860 ocn:ParticipationAgreementMember us-gaap:MaximumMember 2012-12-31 0000873860 ocn:ParticipationAgreementMember 2012-01-01 2012-12-31 0000873860 ocn:SecuritiesSoldUnderAgreementToRepurchaseMember 2012-12-31 0000873860 ocn:SeniorSecuredTermLoanMember ocn:ServicingMember 2012-01-01 2012-12-31 0000873860 ocn:SeniorSecuredTermLoanMember ocn:ServicingMember 2012-12-31 0000873860 ocn:SeniorSecuredTermLoanMember ocn:ServicingMember 2011-12-31 0000873860 ocn:SeniorUnsecuredTermLoanMember ocn:ServicingMember 2012-01-01 2012-12-31 0000873860 ocn:SeniorUnsecuredTermLoanMember ocn:ServicingMember 2012-12-31 0000873860 ocn:SeniorUnsecuredTermLoanMember ocn:ServicingMember 2011-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:HLSSMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:HLSSMember 2012-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:HLSSMember 2011-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:UnrelatedThirdPartyMember 2012-01-01 2012-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:UnrelatedThirdPartyMember 2012-12-31 0000873860 ocn:MortgageServicingRightsMember ocn:ServicingMember ocn:UnrelatedThirdPartyMember 2011-12-31 0000873860 ocn:PromissoryNoteMember ocn:ServicingMember 2012-01-01 2012-12-31 0000873860 ocn:PromissoryNoteMember ocn:ServicingMember 2012-12-31 0000873860 ocn:PromissoryNoteMember ocn:ServicingMember 2011-12-31 0000873860 ocn:ServicingMember 2012-12-31 0000873860 ocn:ServicingMember 2011-12-31 0000873860 ocn:January2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-01-01 2012-12-31 0000873860 ocn:January2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-12-31 0000873860 ocn:January2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2011-12-31 0000873860 ocn:ParticipationAgreementMember ocn:LendingMember 2012-01-01 2012-12-31 0000873860 ocn:ParticipationAgreementMember ocn:LendingMember 2012-12-31 0000873860 ocn:ParticipationAgreementMember ocn:LendingMember 2011-12-31 0000873860 ocn:February2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-01-01 2012-12-31 0000873860 ocn:February2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-12-31 0000873860 ocn:February2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2011-12-31 0000873860 ocn:July2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-01-01 2012-12-31 0000873860 ocn:July2013Member ocn:MasterRepurchaseAgreementMember ocn:LendingMember 2012-12-31 0000873860 ocn:LendingMember 2012-12-31 0000873860 ocn:SecuritiesSoldUnderAgreementToRepurchaseMember ocn:CorporateItemsAndOtherMember 2012-01-01 2012-12-31 0000873860 ocn:SecuritiesSoldUnderAgreementToRepurchaseMember ocn:CorporateItemsAndOtherMember 2012-12-31 0000873860 ocn:SecuritiesSoldUnderAgreementToRepurchaseMember ocn:CorporateItemsAndOtherMember 2011-12-31 0000873860 ocn:TotalServicingLinesOfCreditMember ocn:CorporateItemsAndOtherMember 2012-12-31 0000873860 ocn:TotalServicingLinesOfCreditMember ocn:CorporateItemsAndOtherMember 2011-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2012-01-01 2012-12-31 0000873860 us-gaap:ConvertibleDebtSecuritiesMember 2004-07-01 2004-07-31 0000873860 us-gaap:ConvertibleDebtSecuritiesMember 2004-07-31 0000873860 ocn:ContingentConvertibleSeniorUnsecuredNotesMember 2012-03-28 0000873860 ocn:ContingentConvertibleSeniorUnsecuredNotesMember 2012-01-01 2012-03-28 0000873860 1997-08-01 1997-08-31 0000873860 1997-08-31 0000873860 ocn:AssetBackedSecuritiesSecuritizedLoansAndReceivablesSeriesAMember 2012-08-31 0000873860 2012-07-01 2012-08-31 0000873860 ocn:AssetBackedSecuritiesSecuritizedLoansAndReceivablesSeriesAMember 2012-07-01 2012-08-31 0000873860 ocn:ContingentConvertibleSeniorUnsecuredNotesMember 2011-12-31 0000873860 ocn:CapitalSecuritiesMember 2011-12-31 0000873860 ocn:HomewardAcquisitionMember us-gaap:SecuritiesLoanedOrSoldUnderAgreementsToRepurchaseMember 2012-12-31 0000873860 us-gaap:SeriesAPreferredStockMember 2012-12-31 0000873860 2012-12-26 0000873860 2000-05-10 2012-12-31 0000873860 2000-05-09 0000873860 2011-11-01 2011-11-30 0000873860 2011-11-09 0000873860 2012-03-01 2012-03-31 0000873860 2012-07-01 2012-09-30 0000873860 2012-03-01 2012-03-05 0000873860 2012-01-01 2012-03-31 0000873860 2012-07-01 2012-12-31 0000873860 us-gaap:ForeignExchangeFutureMember 2011-12-31 0000873860 us-gaap:InterestRateSwapMember 2011-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:IRLCMember 2012-01-01 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:U.S.TreasuryFuturesMember 2012-01-01 2012-12-31 0000873860 ocn:HomewardAcquisitionMember ocn:ForwardMortgageBackedSecuritiesTradesMember 2012-01-01 2012-12-31 0000873860 ocn:HomewardAcquisitionMember us-gaap:InterestRateCapMember 2012-01-01 2012-12-31 0000873860 ocn:HomewardAcquisitionMember us-gaap:InterestRateSwapMember 2012-01-01 2012-12-31 0000873860 us-gaap:InterestRateSwapMember 2012-01-01 2012-12-31 0000873860 us-gaap:InterestRateCapMember 2012-01-01 2012-12-31 0000873860 us-gaap:ForeignExchangeFutureMember 2012-01-01 2012-12-31 0000873860 ocn:IRLCMember 2012-12-31 0000873860 ocn:U.S.TreasuryFuturesMember 2012-12-31 0000873860 ocn:ForwardMortgageBackedSecuritiesTradesMember 2012-12-31 0000873860 us-gaap:InterestRateCapMember 2012-12-31 0000873860 us-gaap:InterestRateSwapMember 2012-12-31 0000873860 ocn:IRLCMember 2012-01-01 2012-12-31 0000873860 ocn:U.S.TreasuryFuturesMember 2012-01-01 2012-12-31 0000873860 ocn:ForwardMortgageBackedSecuritiesTradesMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangeInAdvanceFundingFacilityMember ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangeInAdvanceFundingFacilityMember ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangeInLendersRateInAdvanceFundingFacilityMember ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangeInLendersRateInAdvanceFundingFacilityMember ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangesInTheLendersRateOnAdvanceFundingFacilitiesMember ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangesInTheLendersRateOnAdvanceFundingFacilitiesMember ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:OtherHedgesTheEffectsOfChangesInLendersRateOnAdvanceFundingFacilitiesMember ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:OtherHedgesTheEffectsOfChangesInLendersRateOnAdvanceFundingFacilitiesMember ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:TotalDerivativeDesignatedAsHedgeMember ocn:InterestRateSwapsMember 2012-12-31 0000873860 ocn:TotalDerivativeDesignatedAsHedgeMember ocn:InterestRateSwapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangesInAdvanceFundingFacilitiesMember ocn:InterestRateCapsMember 2012-01-01 2012-12-31 0000873860 ocn:HedgeTheEffectsOfChangesInAdvanceFundingFacilitiesMember ocn:InterestRateCapsMember 2012-12-31 0000873860 ocn:OtherHedgesTheEffectsOfChangesInAdvanceFundingFacilitiesMember ocn:InterestRateCapsMember 2012-01-01 2012-12-31 0000873860 ocn:OtherHedgesTheEffectsOfChangesInAdvanceFundingFacilitiesMember ocn:InterestRateCapsMember 2012-12-31 0000873860 ocn:InterestRateCapsMember 2012-12-31 0000873860 ocn:InterestRateCapsMember 2012-01-01 2012-12-31 0000873860 us-gaap:DebtMember 2012-12-31 0000873860 us-gaap:DebtMember 2012-01-01 2012-12-31 0000873860 ocn:InterestRateSwapsPayVariableReceiveFixedMember ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:InterestRateSwapsPayVariableReceiveFixedMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:USTreasuryFuturesMember ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:USTreasuryFuturesMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:ForwardMBSTradesMember ocn:MortgageServicingRightsMember 2012-01-01 2012-12-31 0000873860 ocn:ForwardMBSTradesMember ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:MortgageServicingRightsMember 2012-12-31 0000873860 ocn:ForwardMBSTradesMember ocn:MortgageLoansHeldForSaleAndIRLCsMember 2012-01-01 2012-12-31 0000873860 ocn:ForwardMBSTradesMember ocn:MortgageLoansHeldForSaleAndIRLCsMember 2012-12-31 0000873860 ocn:CashAndShortTermInvestmentsMember 2012-01-01 2012-12-31 0000873860 ocn:CashAndShortTermInvestmentsMember 2011-01-01 2011-12-31 0000873860 ocn:CashAndShortTermInvestmentsMember 2010-01-01 2010-12-31 0000873860 ocn:MatchFundedLiabiltiesMember 2012-12-31 0000873860 ocn:MatchFundedLiabiltiesMember 2011-12-31 0000873860 ocn:MatchFundedLiabiltiesMember 2010-12-31 0000873860 ocn:LinesOfCreditAndOtherSecuredBorrowingsMember 2012-12-31 0000873860 ocn:LinesOfCreditAndOtherSecuredBorrowingsMember 2011-12-31 0000873860 ocn:LinesOfCreditAndOtherSecuredBorrowingsMember 2010-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2012-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2011-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2010-12-31 0000873860 ocn:CapitalSecuritiesMember 2012-12-31 0000873860 ocn:CapitalSecuritiesMember 2011-12-31 0000873860 ocn:CapitalSecuritiesMember 2010-12-31 0000873860 ocn:SecuredBorrowingsOwedToSecuritizationInvestorsMember 2012-12-31 0000873860 ocn:SecuredBorrowingsOwedToSecuritizationInvestorsMember 2011-12-31 0000873860 ocn:SecuredBorrowingsOwedToSecuritizationInvestorsMember 2010-12-31 0000873860 ocn:EscrowdepositsMember 2012-12-31 0000873860 ocn:EscrowdepositsMember 2011-12-31 0000873860 ocn:EscrowdepositsMember 2010-12-31 0000873860 ocn:OcwenMember 2012-12-31 0000873860 ocn:AltisourceMember 2010-01-01 2010-12-31 0000873860 ocn:ProvisionForReversalOfTaxLiabilityOnSelectItemsMember 2012-01-01 2012-12-31 0000873860 ocn:ProvisionForReversalOfTaxLiabilityOnSelectItemsMember 2011-01-01 2011-12-31 0000873860 ocn:ProvisionForReversalOfTaxLiabilityOnSelectItemsMember 2010-01-01 2010-12-31 0000873860 ocn:MortgageServicingRightsMember 2011-12-31 0000873860 ocn:LapsesInStatutesOfLimitationsMember 2012-01-01 2012-12-31 0000873860 2009-12-03 0000873860 2009-12-01 2009-12-03 0000873860 2010-01-01 2012-12-31 0000873860 us-gaap:PreferredStockMember 2012-01-01 2012-12-31 0000873860 us-gaap:PreferredStockMember 2011-01-01 2011-12-31 0000873860 us-gaap:PreferredStockMember 2010-01-01 2010-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2012-01-01 2012-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2011-01-01 2011-12-31 0000873860 ocn:DebtSecuritiesConvertibleNotesMember 2010-01-01 2010-12-31 0000873860 us-gaap:EmployeeStockOptionMember 2012-01-01 2012-12-31 0000873860 us-gaap:EmployeeStockOptionMember 2011-01-01 2011-12-31 0000873860 us-gaap:EmployeeStockOptionMember 2010-01-01 2010-12-31 0000873860 ocn:CommonStockAwardsMember 2012-01-01 2012-12-31 0000873860 ocn:CommonStockAwardsMember 2010-01-01 2010-12-31 0000873860 ocn:MarketBasedMember 2012-01-01 2012-12-31 0000873860 ocn:MarketBasedMember 2011-01-01 2011-12-31 0000873860 ocn:MarketBasedMember 2010-01-01 2010-12-31 0000873860 ocn:AnnualIncentivePlan1998Member 2012-01-01 2012-12-31 0000873860 us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-12-31 0000873860 ocn:ServiceConditionAwardsMember 2012-01-01 2012-12-31 0000873860 us-gaap:PerformanceSharesMember 2012-01-01 2012-12-31 0000873860 ocn:ExtraordinaryPerformanceBasedAwardsMember 2012-01-01 2012-12-31 0000873860 us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000873860 us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000873860 us-gaap:StockOptionsMember 2010-01-01 2010-12-31 0000873860 us-gaap:StockOptionsMember 2011-12-31 0000873860 us-gaap:StockOptionsMember 2010-12-31 0000873860 us-gaap:StockOptionsMember 2009-12-31 0000873860 ocn:BlackScholesMember 2012-01-01 2012-12-31 0000873860 ocn:BinomialMember 2012-01-01 2012-12-31 0000873860 ocn:BlackScholesMember 2011-01-01 2011-12-31 0000873860 ocn:BinomialMember 2011-01-01 2011-12-31 0000873860 us-gaap:StockOptionsMember 2012-01-01 2012-12-31 0000873860 us-gaap:StockOptionsMember 2011-01-01 2011-12-31 0000873860 us-gaap:StockOptionsMember 2010-01-01 2010-12-31 0000873860 us-gaap:StockDistributionMember 2012-01-01 2012-12-31 0000873860 ocn:ServicingMember 2012-01-01 2012-12-31 0000873860 ocn:CorporateItemsandOtherMember 2012-01-01 2012-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2012-01-01 2012-12-31 0000873860 ocn:BusinessSegmentsConsolidatedMember 2012-01-01 2012-12-31 0000873860 ocn:ServicingMember 2011-01-01 2011-12-31 0000873860 ocn:CorporateItemsandOtherMember 2011-01-01 2011-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2011-01-01 2011-12-31 0000873860 ocn:BusinessSegmentsConsolidatedMember 2011-01-01 2011-12-31 0000873860 ocn:ServicingMember 2010-01-01 2010-12-31 0000873860 ocn:CorporateItemsandOtherMember 2010-01-01 2010-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2010-01-01 2010-12-31 0000873860 ocn:BusinessSegmentsConsolidatedMember 2010-01-01 2010-12-31 0000873860 ocn:ServicingMember 2012-12-31 0000873860 ocn:CorporateItemsandOtherMember 2012-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2012-12-31 0000873860 ocn:ServicingMember 2011-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2011-12-31 0000873860 ocn:ServicingMember 2010-12-31 0000873860 us-gaap:IntersegmentEliminationMember 2010-12-31 0000873860 ocn:ServicingMember 2012-01-01 2012-12-31 0000873860 ocn:LendingMember 2012-01-01 2012-12-31 0000873860 ocn:CorporateItemsandOtherMember 2012-01-01 2012-12-31 0000873860 ocn:ServicingMember 2011-01-01 2011-12-31 0000873860 ocn:CorporateItemsandOtherMember 2011-01-01 2011-12-31 0000873860 ocn:ServicingMember 2010-01-01 2010-12-31 0000873860 ocn:CorporateItemsandOtherMember 2010-01-01 2010-12-31 0000873860 us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-12-31 0000873860 ocn:OcwenMember us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-12-31 0000873860 ocn:AltisourceMember us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-12-31 0000873860 ocn:HLSSMember us-gaap:ChiefExecutiveOfficerMember 2012-01-01 2012-12-31 0000873860 ocn:OcwenMember us-gaap:ChiefExecutiveOfficerMember 2012-12-31 0000873860 ocn:AltisourceMember us-gaap:ChiefExecutiveOfficerMember 2012-12-31 0000873860 us-gaap:ChiefExecutiveOfficerMember 2012-08-21 2012-12-31 0000873860 ocn:AltisourceMember 2012-01-01 2012-12-31 0000873860 ocn:CorrespondentOneMember ocn:OcwenMember 2012-12-31 0000873860 ocn:AltisourceMember 2012-12-31 0000873860 ocn:HLSSMember 2012-01-01 2012-12-31 0000873860 ocn:AltisourceEmployeesMember 2012-01-01 2012-12-31 0000873860 ocn:AltisourceEmployeesMember 2011-01-01 2011-12-31 0000873860 ocn:AltisourceEmployeesMember 2010-01-01 2010-12-31 0000873860 ocn:HLSSEmployeesMember 2012-01-01 2012-12-31 0000873860 ocn:AltisourceEmployeesMember 2012-12-31 0000873860 ocn:AltisourceEmployeesMember 2011-12-31 0000873860 ocn:HLSSEmployeesMember 2012-12-31 0000873860 ocn:IndiaTaxAuthoritiesMember 2007-06-30 0000873860 ocn:IndiaTaxAuthoritiesMember 2008-06-30 0000873860 2007-06-30 0000873860 2008-06-30 0000873860 ocn:AgedOriginatingBefore2000Member 2012-12-31 0000873860 ocn:ForeignFacilitiesMember 2011-01-01 2011-12-31 0000873860 ocn:ForeignFacilitiesMember 2010-01-01 2010-12-31 0000873860 2018-12-31 0000873860 2011-04-01 2011-06-30 0000873860 2011-07-01 2011-09-30 0000873860 2011-10-01 2011-12-31 0000873860 ocn:FourthQuarterMember 2012-01-01 2012-12-31 0000873860 ocn:ThirdQuarterMember 2012-01-01 2012-12-31 0000873860 ocn:SecondQuarterMember 2012-01-01 2012-12-31 0000873860 ocn:FirstQuarterMember 2012-01-01 2012-12-31 0000873860 ocn:FourthQuarterMember 2011-01-01 2011-12-31 0000873860 ocn:ThirdQuarterMember 2011-01-01 2011-12-31 0000873860 ocn:SecondQuarterMember 2011-01-01 2011-12-31 0000873860 ocn:FirstQuarterMember 2011-01-01 2011-12-31 0000873860 2013-02-15 0000873860 ocn:SubservicingContractsMember 2013-02-15 0000873860 ocn:ResidentialCapitalLLCMember 2013-02-15 0000873860 ocn:MortgageServicingRightsMember 2013-02-15 0000873860 ocn:NewSeniorSecuredTermLoanMember 2013-02-15 0000873860 ocn:ThreeServicingAdvanceFacilitiesMember 2013-02-15 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure Net of tax benefit (expense) of $(7) and $26 for 2011 and 2010, respectively. Net of tax benefit (expense) of $3,012, $(340) and $5,251 for 2012, 2011 and 2010, respectively. Net of tax expense of $3,798, $503 and $54 for 2012, 2011 and 2010, respectively. Net of tax benefit of $3, $3 and $12 for 2012, 2011 and 2010, respectively. For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. Excludes athe liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability. Initial fair value estimate Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes. In December 2010, Litton deemed goodwill to be wholly impaired and wrote off the balance of $154,065. Litton also recorded a provision for losses on servicing advances of $33,734 in 2010. Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen's platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes. Employee termination benefits include severance expense of $20,727 and $10,119 related to HomEq Servicing and Litton, respectively. The remaining liability for employee termination benefits related to the HomEq Acquisition was settled in 2011. We paid the liability for employee termination benefits related to the Litton Acquisition during 2012. The lease agreements that we assumed for the HomEq facilities expire in 2017 and 2018. In December 2010, we exercised our option to terminate the HomEq lease agreements effective in 2013 and provided formal notice to the lessors. At that time, we recorded a charge of $7,794 to establish a reserve for the remaining lease payments discounted through the early termination date, including early termination penalties due in 2013. The balance at December 31, 2011 represented the remainder of the liability for the HomEq lease payments. In March 2012, we ceased using the Litton Georgia facility and recorded a charge of $4,779 to establish a liability for the remaining lease payments discounted through the lease expiration date in 2017. This lease does not contain an option for early termination, and we are actively attempting to sublease the space. In June 2012, we negotiated a buyout of the lease on the HomEq California facility for $2,900 which resulted in an additional expense of $251 as the payment exceeded the liability, net of unamortized discount. All charges were recorded in the Servicing segment. Charges related to employee termination benefits and lease termination costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the Consolidated Statements of Operations. The liabilities are included in Other liabilities in the Consolidated Balance Sheet. Reported in the Consolidated Statements of Cash Flows cash flows with financing activities as Proceeds from sale of mortgage servicing rights accounted for as a financing. Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of match funded advances. Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of advance financing subsidiary and special purpose entity. Measured at fair value on a recurring basis. Measured at fair value on a non-recurring basis. Financial instruments disclosed, but not carried, at fair value. The high-loan-to-value stratum is measured at fair value on a non-recurring basis and is classified as Level 3 because of the nature of the valuation inputs. The values are net of a valuation allowance of $2,378 and $2,290 at December 31, 2012 and 2011, respectively. Includes $4,946 of derivatives and $82,275 of fair value MSRs acquired in connection with the Homeward Acquisition. Also includes $2,908 of MSRs retained on the sale of loans. Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively. See Note 2 for additional information regarding the acquisition of MSRs from Homeward.MSR asset acquisitions for 2012 include: MSR asset acquisitions for 2012 include: On April 2, 2012, we completed an acquisition from Saxon Mortgage Services, Inc. (Saxon) of an MSR portfolio of approximately $22.2 billion in UPB of residential mortgage loans, approximately $9.9 billion of which Ocwen had previously subserviced, and approximately $1.2 billion of associated servicing advances (the 2012 Saxon MSR Transaction). To finance the 2012 Saxon MSR Transaction, we utilized a combination of available cash and two new two-year servicing advance facilities. On April 2, 2012, we also completed an acquisition of MSRs from JPMorgan Chase Bank, N.A. (JPMCB) which includes servicing rights for non-prime loans with a UPB of approximately $8.1 billion (the JPMCB MSR Transaction) and $557,184 of servicing advances. Ocwen financed the purchase price through available cash and an existing servicing advance facility. On May 31, 2012, we completed the acquisition of MSRs from Aurora Bank FSB (Aurora) on a portfolio of small-balance commercial mortgage loans with a total UPB of $1.8 billion and $52,911 of servicing advances. On June 11, 2012, we purchased residential MSRs from Bank of America, N.A. (BANA) with respect to mortgage loans with a UPB of approximately $10.1 billion owned by Freddie Mac. We entered into a new servicing advance facility to finance a portion of the related servicing advances acquired in the transaction. At December 31, 2012, the acquired MSRs, which had a carrying value of $58,472, were pledged as collateral for the promissory note used to finance the purchase. On July 2 and 16, 2012, we closed on the acquisitions of MSR portfolios totaling approximately $316 million in UPB of residential mortgage loans owned by Fannie Mae and Freddie Mac. On September 4, 2012, we purchased an additional MSR portfolio of approximately $2.2 billion in UPB of residential mortgage loans owned by Fannie Mae. We boarded these loans on October 1, 2012. In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations. Includes UPB of $79,360,874 for which the Rights to MSRs have been sold to HLSS. The balances at December 31, 2012 and 2011 arise from our Servicing business and primarily include reimbursable expenditures due from investors and amounts to be recovered from the custodial accounts of the trustees. The balances at December 31, 2012 and 2011 primarily represent annual payments to be received through June 2014 for proceeds from sales of investments in affordable housing properties. None of these receivables is delinquent. See Note 27 for additional information regarding transactions with Altisource and HLSS. The balance represents the fair value of an interest rate cap that we sold in 2012. See Note 19 for additional information regarding our derivative financial instruments. These loans primarily represent non-performing subprime single-family residential loans that we do not intend to hold to maturity. The balances at December 31, 2012 and 2011 are net of valuation allowances of $14,659 and $14,257, respectively. In December 2012, we acquired non-performing mortgage loans with an aggregate UPB of $124,341 for cash consideration of $65,356. We sold these loans to Altisource Residential, LP in February 2013 for an insignificant gain. In connection with the entry into an agreement on November 2, 2012 to acquire MSRs and related servicing advances from Residential Capital, LLC , OLS made an earnest money cash deposit of $57,000. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 31 for additional information regarding this transaction. These balances include $25,829 and $19,623 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2012 and 2011, respectively. The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note 2. See Note 22 for additional information. These balances relate to match funded liabilities and other secured borrowings of the Servicing segment. We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt. See Note 19 for additional information regarding derivatives. Loans - restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011. Advance facility assumed in the Homeward Acquisition. The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1,700,000 bridge facility which has an amortization date of August 14, 2013. The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended. The maturity date is the date on which all outstanding balances must be repaid. In two advance facilities, there are multiple notes outstanding. For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed. Unused borrowing capacity is available to us provided that we have additional eligible collateral to pledge. Collateral may only be pledged to one facility. This note was issued in connection with the financing of advances acquired in connection with the acquisition of Litton on September 1, 2011. In December 2012, the remaining balance was repaid and the facility was terminated following the sale of the advance collateral to HLSS. On July 19, 2012, the borrowing under this note was transferred to the Series 2009-1 variable funding note. The amortization period for this note ended in January 2012, at which time the remaining balance of $40,000 was repaid. The advances pledged to this note were transferred to the Series 2009-1 variable funding note and were re-pledged under that note. The facility was terminated on September 28, 2012. Effective March 12, 2012, the lender transferred this note from its commercial paper conduit and began charging interest based on 1-Month LIBOR. On September 28, 2012, the remaining balance was repaid, and the facility was terminated. These notes were issued to finance the advances acquired in connection with the 2012 Saxon MSR Transaction. These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs. This note was issued to finance advances on the small balance commercial loan servicing portfolio that we acquired as part of the Litton Acquisition. These notes were issued in connection with the financing of advances acquired as part of the HomEq Acquisition. The Class D Term Note was repaid in full on March 2, 2012. On March 5, 2012, HLSS assumed the remaining balances. On September 13, 2012, the remaining balance was repaid, the facility was terminated and the remaining collateral was transferred to another facility. On September 1, 2011, we entered into a new SSTL facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition. This initial loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan. Subsequently, in order to fund a portion of the Homeward Acquisition, we entered into a Joinder Agreement with the lender in December 2012 that allowed us to borrow an additional $100,000, net of an original issue discount of $1,000, under this facility on essentially the same terms and conditions as the initial borrowing. Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%. We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $16,875 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016. In addition, Ocwen is required to use 25% of the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal. Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold. The borrowings are secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. In February 2013, we repaid this loan in full. Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note 27 for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013. As part of the HLSS Transactions completed in 2012, Ocwen transferred to HLSS certain Rights to MSRs. However, because Ocwen has not yet transferred legal title to the MSRs, the sales were accounted for as a financing with the proceeds from the sale of the MSRs recorded as a financing liability. The financing liability is being amortized using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. The liability has no contractual maturity but will be amortized over the estimated life of the pledged MSRs. The balance of the liability is reduced each month based on the change in the estimated fair value of the pledged MSRs. See Note 3 for additional information regarding the HLSS Transactions. We sold MSRs for certain loans to an unrelated third party in December 2012; however, we are required to repurchase the MSRs for any loans that cannot be refinanced by the purchaser under the federal government's Home Affordable Refinance Program (HARP). As a result, the sale is being accounted for as a financing. The financing liability is being amortized using the interest method with the servicing income that is remitted to the purchaser representing payments of principal and interest. This note was issued to finance the acquisition of MSRs from BANA. Prepayments of the balance on this note may be required if the borrowing base, as defined, falls below the amount of the note outstanding. On January 16, 2013, we extended the Master Repurchase Agreement maturity date to March 19, 2013. Under this participation agreement, the lender provides financing on an uncommitted basis for $50,000 to $90,000 at the discretion of the lender. The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans. However, the transaction does not qualify for sales accounting treatment as is, therefore, accounted for as a financing. The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement. In February 2013, we extended the participation agreement maturity date to April 30, 2013. On January 25, 2013, we extended the Master Repurchase Agreement maturity date to May 3, 2013. In August 2010, we obtained financing under a repurchase agreement for the Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $26,180 at December 31, 2012. This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral. Excludes the two financing liabilities arising for the sales of Rights to MSRs and MSRs that were accounted for as a financing and the financing liability arising from the sale of mortgage loan participations accounted for as a financing. Includes $63,406 of accrued expenses attributable to Homeward, including $38,093 of accruals related to loan repurchase obligations and reserves for indemnification for servicing errors and for compensatory fees for foreclosures that exceed investor timelines. See Note 22 for information on the liability for selected tax items. See Note 19 for additional information regarding derivatives. The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements. Secured borrowings - owed to securitization investors consisted of certificates representing beneficial ownership interests in four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note 1-Securitizations of Residential Mortgage Loans. Our acquisition of MSRs during the second quarter of 2012 included a servicing liability with a fair value of $1,441. During, 2012, 2011 and 2010, amortization of servicing liabilities exceeded the amount of charges we recognized to increase servicing liability obligations by $1,274, $2,725 and $172, respectively. Amortization of mortgage servicing rights is reported net of this amount in the Consolidated Statement of Operations. We discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization was scheduled to continue until the related advance facility matures in July 2013. In September 2012, we repaid the advance facility and wrote-off the remaining $2,317 of unamortized deferred losses in AOCL. Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities. The hedging relationship was terminated when the advance facility was assumed on March 5, 2012 by HLSS. At that time, we wrote-off the $5,958 of deferred losses in AOCL. See Note 3 and Note 13 for additional information regarding the match funded liabilities assumed by HLSS. Monthly settlements on this forward-starting swap begin June 2013. Projected net settlements on the swap for the next twelve months total approximately $3,748 of payments to the counterparties. Sold in November 2012. Acquired in connection with the Homeward Acquisition. Includes a gain of $3,359 during 2012 from the termination of foreign exchange forward contracts. Also includes a loss of $1,514 on the sale of the interest rate cap in 2012. Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011. Includes the write off in 2012 of the remaining $2,317 of unamortized losses when the borrowing under the related advance financing facility was repaid in full, and the facility was terminated. Includes interest expense of $54,710 in 2012 on the financing liability arising from the sales of Rights to MSRs to HLSS that were accounted for as financings. See Note 3 and Note 14 for additional information regarding these sales and the financing liability. The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. We assumed no conversion to common shares for 2012 because the effect was anti-dilutive. Prior to the redemption of the Convertible Notes in March 2012, we also computed their effect on diluted EPS using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, were added back to net income. As disclosed in Note 15, we issued 4,635,159 shares of common stock upon conversion of $56,410 of the Convertible Notes. These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock. Shares that are issuable upon the achievement of certain performance criteria related to OCN's stock price and an annualized rate of return to investors. See Note 25 for additional information regarding these market-condition options. Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee's approval. See Note 27 for additional information regarding Mr. Erbey's stock and stock option holdings. The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively. In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options. Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable. At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively. The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively. We estimate volatility based on the historical volatility of OCN's common stock over the most recent period that corresponds with the estimated expected life of the option. For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered. Servicing has a contractual right to receive interest income on float balances. However, Corporate controls investment decisions associated with the float balances. Accordingly, Servicing receives revenues generated by those investments that are associated with float balances but are reported in Corporate Items and Other. Gains and losses associated with corporate investment decisions are recognized in Corporate Items and Other. Depreciation and amortization expense are as follows: Servicing Lending Corporate Items and Other Business Segments Consolidated For the year ended December 31, 2012: Depreciation expense $1,469 $8 $4,243 $5,720 Amortization of MSRs 72,897 - - 72,897 Amortization of debt discount 3,259 - - 3,259 Amortization of debt issuance costs - SSTL 3,718 - - 3,718 For the year ended December 31, 2011: Depreciation expense $2,410 $- $1,750 $4,160 Amortization of MSRs 42,996 - - 42,996 Amortization of debt discount 8,853 - - 8,853 Amortization of debt issuance costs - SSTL 9,764 - - 9,764 For the year ended December 31, 2010: Depreciation expense $5,916 $- $1,596 $7,512 Amortization of MSRs 31,455 - - 31,455 Amortization of debt discount 5,217 - 172 5,389 Amortization of debt issuance costs - SSTL 2,086 - - 2,086 Other income (expense) for 2010 includes losses on auction rate securities of $7,909 recorded in Corporate Items and Other. Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects. Operating expenses for 2012 include non-recurring costs of 1,270 that we incurred as a result of the Homeward Acquisition. Operating expenses for 2011 include non-recurring costs of $50,340 that we incurred as a result of the Litton Acquisition, including $472, $18,746 and $31,122 in the second, third and fourth quarters, respectively. See Note 2 for additional information on the Litton Acquisition. 220130000 144234000 426480000 184463000 103591000 3049244000 3629911000 676712000 293152000 85213000 167459000 82261000 92136000 107968000 371083000 70240000 37536000 7350000 88748000 115867000 272678000 173450000 5671882000 4728024000 2532745000 2558951000 1096679000 540369000 82554000 277664000 202839000 3907088000 3384713000 153372000 1356000 1299000 911942000 826121000 704565000 523787000 -6441000 -7896000 1611422000 1343311000 5671882000 4728024000 0.01 200000 162000 162000 162000000 0.01 0.01 200000000 200000000 135637932 129899288 135637932 129899288 804425000 458875000 321699000 37067000 34233000 33704000 3514000 2822000 4978000 845006000 495930000 360381000 122341000 99844000 87644000 72897000 42996000 31455000 25537000 8254000 6851000 45362000 33617000 25644000 29236000 19961000 42837000 47044000 23759000 32924000 21508000 11153000 9119000 363925000 239584000 236474000 481081000 256346000 123907000 8329000 8876000 10859000 223455000 132770000 85923000 -7968000 -3364000 -4529000 -5865000 114000 -746000 1371000 -5197000 -4182000 2773000 -223573000 -133351000 -84753000 257508000 122995000 39154000 76585000 44672000 5545000 180923000 78323000 33609000 4383000 180923000 78323000 37992000 -8000 8000 180923000 78331000 37984000 145000 180778000 78331000 37984000 1.35 0.75 0.34 0.04 1.35 0.75 0.38 1.31 0.71 0.32 0.04 1.31 0.71 0.36 133912643 104507055 100273121 138521279 111855961 107483015 1000 21000 -58000 -5303000 589000 -9335000 6753000 890000 96000 1450000 1479000 -9239000 4000 5000 20000 1455000 1505000 -9277000 182378000 79828000 28715000 1000 -6000 182378000 79827000 28721000 -7000 26000 3012000 -340000 5251000 3798000 503000 54000 3000 3000 12000 99956833 1000000 459542000 405198000 -129000 252000 865863000 2274000 2274000 37984000 8000 9865 752595 7000 3604000 3611000 7654 4354000 4354000 -9263000 -14000 -9277000 100726947 1007000 467500000 445456000 -9392000 246000 904817000 78331000 -8000 28750000 288000 354157000 354445000 410977 4000 1269000 1273000 11364 3195000 3195000 -247000 -247000 1496000 9000 1505000 129899288 1299000 826121000 523787000 -7896000 1343311000 180923000 8688000 8688000 145000 4635159 46000 56364000 56410000 1082944 11000 6276000 6287000 20541 14493000 14493000 1455000 1455000 135637932 1356000 911942000 704565000 -6441000 1611422000 3259000 8853000 5389000 3718000 9764000 2086000 5720000 4160000 7512000 3000000 88000 -574000 -90000 3167000 4294000 7426000 133000 2167000 -3651000 -152000 62393000 29898000 -7764000 239555000 67172000 1468000 1771000 1443643000 842545000 447219000 -53870000 -36452000 -48468000 1750000 -1196000 -36180000 -4343000 -15470000 24637000 19626000 8780000 6987000 1815854000 982145000 727544000 524213000 2646700000 1167122000 15340000 3226000 2415000 3542000 180039000 23425000 3020000 1920437000 528882000 76334000 2824645000 19217000 3822000 3821000 6501000 1701000 1678000 2434000 -103000 -52000 -1028000 3230000 5250000 5616000 929000 6036000 -1018000 -420000 -888000 262870000 -2655118000 -1703706000 1665330000 -1076422000 -1016838000 6080000 9382000 9346000 204784000 563500000 448316000 822137000 281768000 263442000 1052000 13147000 10689000 320381000 156968000 26829000 11659000 354445000 6005000 1483000 3146000 12570000 2142000 3157000 -2002828000 1689411000 1013039000 75896000 16438000 36877000 127796000 90919000 219825000 128947000 88354000 37199000 29461000 6756000 -79511000 -23791000 -558721000 -2266882000 -2468137000 -1063180000 -358119000 -144314000 -84324000 -47346000 -16803000 -3386000 -6728000 -300843000 -57430000 -12810000 -69287000 -62371000 -4888000 -7957000 -3759883000 -2701946000 -1174999000 1997459000 864969000 8972000 709000 16418000 3939000 4616000 115313000 18544000 4001000 -765724000 -2670491000 -1165673000 162000000 -1449000 -603724000 -2670491000 -1167122000 79511000 23791000 -524213000 -2646700000 -1167122000 Ocwen Financial Corporation 10-K --12-31 135637932 2089600176 false 0000873860 Yes No Large Accelerated Filer Yes 2012 FY 2012-12-31 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8%; font-weight: bold; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">NOTE 1</font> </td> <td style="width: 92%; font-weight: bold; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Organization </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen Financial Corporation (NYSE: OCN) (Ocwen or OCN) is a financial services holding company which, through its subsidiaries, is engaged in the servicing and origination of mortgage loans. Ocwen is headquartered in Atlanta, Georgia with offices in Florida, Texas, New Jersey, United States Virgin Islands (USVI) and Washington, DC and support operations in India and Uruguay. Ocwen is a Florida corporation organized in February 1988. Ocwen Loan Servicing, LLC (OLS), a wholly-owned subsidiary, is licensed to service mortgage loans in all 50 states, the District of Columbia and two U.S. territories. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> At December 31, 2012, Ocwen directly or indirectly owned all of the outstanding stock of its primary operating subsidiaries: OLS, Ocwen Financial Solutions Private Limited, Ocwen Mortgage Servicing, Inc. (OMS) and Homeward Residential Holdings, Inc. (Homeward). OMS is a corporation formed on February 27, 2012 under the laws of the USVI and is a wholly owned subsidiary of OCN. OMS has its principal place of business in St. Croix, USVI. As disclosed below, we acquired Homeward, a Delaware corporation, through a merger transaction which closed on December 27, 2012. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen also holds a 49% equity interest in Correspondent One S.A. (Correspondent One), an entity formed with Altisource Portfolio Solutions S.A. (Altisource) in March 2011, a 26% interest in Ocwen Structured Investments, LLC (OSI) and an approximate 25% interest in Ocwen Nonperforming Loans, LLC (ONL) and Ocwen REO, LLC (OREO). The assets of ONL and OREO were liquidated to cash, and the entities were subsequently dissolved in December 2012. As part of the Homeward Acquisition, we acquired a 69.79% equity interest in Powerlink Settlement Services, LP. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On December 27, 2012, Ocwen completed the merger by and among Ocwen, O&amp;H Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Ocwen, Homeward and WL Ross &amp; Co. LLC, a Delaware limited liability company as shareholder representative, pursuant to which O&amp;H Acquisition Corp. merged with and into Homeward with Homeward continuing as the surviving corporation and becoming a wholly-owned subsidiary of Ocwen (the Homeward Acquisition). Homeward engages in the servicing of residential mortgage loans, the majority of which are nonprime, and also originates prime loans. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On September 1, 2011, Ocwen completed its acquisition (the Litton Acquisition) of (i) all the outstanding partnership interests of Litton Loan Servicing LP (Litton), a subsidiary of The Goldman Sachs Group, Inc. (Goldman Sachs) and a provider of servicing and subservicing of primarily non-prime residential mortgage loans and (ii) certain interest-only servicing securities previously owned by Goldman Sachs &amp; Co., also a subsidiary of Goldman Sachs (collectively referred to as the Litton Loan Servicing Business). </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On September 1, 2010, Ocwen, through OLS, completed its acquisition (the HomEq Acquisition) of the U.S. non-prime mortgage servicing business within Barclays Bank PLC known as &#8220;HomEq Servicing&#8221; including, but not limited to, the mortgage servicing rights and associated servicer advances of the business as well as the servicing platforms. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> See Note&#160;2 for additional information regarding the Homeward Acquisition, Litton Acquisition and HomEq Acquisition. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Principles of Consolidation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Our financial statements include the accounts of Ocwen, its majority-owned subsidiaries and any variable interest entity (VIE) where we have determined that Ocwen is the primary beneficiary. We apply the equity method of accounting to investments when the entity is not a VIE, and we are able to exercise significant influence, but not control, over the policies and procedures of the entity but own 50% or less of the voting securities. We account for our investments in OSI, ONL, OREO and Correspondent One using the equity method. We have eliminated intercompany accounts and transactions in consolidation. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Variable Interest Entities</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We evaluate each special purpose entity (SPE) for classification as a VIE. When an SPE meets the definition of a VIE and we determine that Ocwen is the primary beneficiary, we include the SPE in our consolidated financial statements. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We have determined that the SPEs created in connection with the match funded financing facilities discussed below are VIEs of which we are the primary beneficiary. We also determined that we were the primary beneficiary for four residential mortgage loan securitization trusts. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Securitizations and Asset Backed Financing Arrangements</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. We have continuing involvement with the financial assets of five of the securitizations and nine of the asset-backed financing arrangements. We have aggregated these securitizations and asset-backed financing arrangements into two groups: (1) securitizations of residential mortgage loans and (2) financings of advances on loans serviced for others. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Securitizations of Residential Mortgage Loans.</i> In prior years, we securitized residential mortgage loans using certain trusts. We accounted for these transactions as sales even though we continued to be involved with the trusts, typically by acting as the servicer or sub-servicer for the loans held by the trust and by retaining a beneficial ownership interest in the trust. The beneficial interests that we held consisted of both subordinate and residual securities that were either retained at the time of the securitization or subsequently acquired. We held beneficial interests in five of these trusts. We also acquired residual and subordinated interests in six additional trusts where we were not the transferor but were the servicer. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Effective January 1, 2010, as a result of our adoption of Accounting Standards Update (ASU) No. 2009-16 (Accounting Standards Codification (ASC) 860, Transfers and Servicing) and ASU 2009-17 (ASC 810, Consolidation), we included four of these eleven trusts in our consolidated financial statements because we determined that our involvement represented a variable interest and that we were the primary beneficiary of the trusts. We did not consolidate the remaining trusts because our involvement did not represent a variable interest. In December 2012, we sold the beneficial interests that we held in the four consolidated securitization trusts. We then deconsolidated the trusts and recognized a loss of $3,167. We also sold our retained interests in two of the unconsolidated trusts. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The beneficial interests that we hold in the five remaining unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2012, we had no other significant assets in our consolidated financial statements related to these trusts. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Ocwen. The general creditors of Ocwen have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the mortgage servicing rights (MSRs) that are related to the trusts and the advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note&#160;6&#160;and Note&#160;8&#160;or additional information regarding Advances and Mortgage servicing rights. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Financings of Advances on Loans Serviced for Others.</i> Match funded advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because the transfers do not qualify for sales accounting treatment or because Ocwen is the primary beneficiary of the SPE. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> These SPEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of our advance facility agreements. We classify the transferred advances on our Consolidated Balance Sheet as Match funded advances and the related liabilities as Match funded liabilities. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Ocwen. OLS had previously guaranteed the payment of obligations under the securitization documents of one of the entities; however, in September 2012, the notes outstanding under this facility were repaid, and the facility was terminated. The assets and liabilities of the advance financing SPEs are comprised solely of Match funded advances, Debt service accounts, Match funded liabilities and amounts due to affiliates. Amounts due to affiliates are eliminated in consolidation. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> See Note&#160;7, Note&#160;11 and Note&#160;13 for additional information regarding Match funded advances, Debt service accounts and Match funded liabilities. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Reclassification </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> As disclosed above, following our sale of the retained beneficial interests in December 2012, we deconsolidated the four securitization trusts that we began including in our consolidated financial statements effective January 1, 2010. As a result, we have made the following reclassifications within the assets and liabilities sections of the Consolidated Balance Sheet at December 31, 2011: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Restricted cash &#8211; for securitization investors balance of $675 to Other assets;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Loans, net &#8211; restricted for securitization investors balance of $58,560 to Other assets; and</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="text-indent: 0in; width: 0.25in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Secured borrowings &#8211; owed to securitization investors balance of $53,323 to Other liabilities to conform to the December 31, 2012 presentation.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In addition, within the assets section of the Consolidated Balance Sheet at December 31, 2011, we: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Debt service accounts from Other assets to a separate line item; and</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Loans held for sale, at lower of cost or fair value balance of $20,633 to Other assets.</font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Cash </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Cash includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Trading Securities </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Trading securities includes other investments with original maturities of three months or less that we do not treat as cash equivalents. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for investments in auction rate, investment grade, residual and subordinate securities as trading securities at fair value. We report changes in fair value in gain (loss) on trading securities in the period of the change. We determine fair value based either on third party dealer quotations, where available, or on internal values determined using market based assumptions. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We recognize interest income on subordinate and residual securities through an &#8220;effective yield&#8221; method with changes in expected future cash flows reflected in the yield on a prospective basis. We adjust the prospective yield each time the estimates of expected future cash flows change or the actual cash flows differ from projections. We use the newly calculated yield in the accrual of interest income for subsequent reporting periods. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> At December 31, 2012, our investment in trading securities was $0. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Loans Held for Sale </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> As part of the Homeward Acquisition, we acquired Homeward&#8217;s prime residential loan origination platform. These loans are originated or purchased and held until sold to secondary market investors. The loans are typically warehoused for a period after origination or purchase before they are sold into the secondary market, primarily to Government Sponsored Enterprises (GSEs). The servicing rights and servicing obligations of mortgage loans are generally retained upon sale into the secondary market. We elected to measure these loans at fair value on a recurring basis. At each reporting date, we measure the loans at fair value and report changes in fair value in earnings in the period in which the changes occur. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for all other residential mortgage loans that we do not intend to hold to maturity at the lower of cost or fair value computed on an aggregate basis. We account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in gain (loss) on loans held for sale, net, in the period in which the change occurs. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent greater than 89 days or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse interest accrued but not received. We return loans to accrual status only when we reinstate the loan and have no significant uncertainty as to collectibility. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Mortgage Servicing Rights </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> MSRs are an intangible asset representing the right to service a portfolio of mortgage loans. We generally obtain MSRs through asset purchases or business combination transactions. We also retain servicing rights on originated loans when they are sold in the secondary market. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> An agreement between the various parties to a mortgage securitization transaction typically specifies the rights and obligations of the holder of the MSRs which include guidelines and procedures for servicing the loans. Two examples of these guidelines and procedures include remittance and reporting requirements. Assets serviced for others are not included on our balance sheet. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Custodial accounts, which hold funds representing collections of principal and interest we receive from borrowers (float balances), are held in escrow by an unaffiliated bank and excluded from our Consolidated Balance Sheet. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> All newly acquired MSRs are initially measured at fair value. Subsequent to acquisition, we account for MSRs using the amortization method or the fair value measurement method, based on our strategy for managing the risks of the underlying portfolios. For certain of the servicing assets we acquired in the Homeward Acquisition, we manage the effects of interest rate risk with derivative financial instruments. We elected to account for this class of servicing assets using the fair value measurement method. We recognize a servicing liability for those agreements that are not expected to compensate us adequately for performing the servicing. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For servicing assets or liabilities that we account for using the amortization method, we amortize the balances in proportion to and over the period of estimated net servicing income (if servicing revenues exceed servicing costs) or net servicing loss (if servicing costs exceed servicing revenues). We assess servicing assets or liabilities for impairment or increased obligation based on fair value at each reporting date. We determine estimated net servicing income using the estimated future balance of the underlying mortgage loan portfolio, which, absent new purchases, declines over time from prepayments and scheduled loan amortization. We adjust amortization prospectively in response to changes in estimated projections of future cash flows. We perform an impairment analysis based on the difference between the carrying amount and estimated fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans and recognize any impairment through a valuation allowance. We adjust the valuation allowance to reflect subsequent changes in the measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum, however, is not recognized. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For servicing assets or liabilities that we account for at fair value on a recurring basis, we measure the balances at fair value at each reporting date and report changes in fair value in earnings in the period in which the changes occur. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Mortgage Servicing Fees and Advances </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We earn fees for servicing mortgage loans. We collect servicing fees, generally expressed as a percent of unpaid principal balance (UPB) from the borrowers&#8217; payments. We also include late fees, prepayment penalties, float earnings and other ancillary fees in servicing income. We recognize servicing fees as revenue when the fees are earned which is generally when the borrowers&#8217; payments are collected or when loans are modified or liquidated through the sale of the underlying real estate collateral or otherwise. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> During any period in which the borrower does not make payments, most of our servicing agreements require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing contract. Each servicing contract is associated with specific loans, identified as a pool. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> When we make an advance on a loan under each servicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from investors, for foreclosed loans. Most of our servicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans, which are the subject of that servicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We record a charge to earnings to the extent that we believe advances are uncollectible under the provisions of each servicing contract taking into consideration historical loss and delinquency experience, length of delinquency and the amount of the advance. However, we are generally only obligated to advance funds to the extent that we believe the advances are recoverable from expected proceeds from the loan. We assess collectibility using proprietary cash flow projection models which incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, time to a foreclosure sale, estimated costs of foreclosure action, future property tax payments and the value of the underlying property net of carrying costs, commissions and closing costs. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Goodwill </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We test goodwill for impairment annually or sooner if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Effective with our adoption of <i>ASU 2011-08 (ASC 350, Intangibles &#8211; Goodwill and Other): Testing Goodwill for Impairment</i> in the fourth quarter of 2011, we have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not (defined as having a likelihood of more than 50 percent) less than the carrying value, a two-step quantitative test is required. Otherwise, no further testing is required. Factors that we consider in the qualitative assessment include general economic conditions, conditions of the industry and market in which we operate, regulatory developments, cost factors and our overall financial performance. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In the first step of the two-step quantitative assessment, we compare the fair value of the reporting unit with its net carrying value, including goodwill. If the net carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of impairment loss, if any. The second step requires allocation of the reporting unit&#8217;s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of the reporting unit&#8217;s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In performing the quantitative two-step impairment analysis for goodwill, we use an approach based on the fair value of the assets and liabilities. We perform this analysis using projections of future income discounted at a market rate. The determination of market discount rates is subjective and could vary based on the nature of the underlying business, stage of development and revenue to date. The projections of future cash flows and assumptions concerning future operating performance and economic conditions may differ from actual results. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We perform our annual impairment test of goodwill as of August 31<sup>st</sup> of each year. Based on our 2012 annual assessment, we determined that goodwill was not impaired. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Premises and Equipment </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on the straight-line method as follows: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Computer hardware and software </font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">2 &#8211; 3 years</font> </td> </tr> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Leasehold improvements</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">Term of the lease not to exceed useful life</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Furniture and fixtures</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">5 years</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Office equipment</font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">5 years</font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Investment in Unconsolidated Entities </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 18.7pt"> We account for our investments in unconsolidated entities using the equity method. These investments include both entities in which we hold a significant, but less than controlling, ownership interest and VIEs in which we are not deemed to be the primary beneficiary. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that any other-than-temporary decline in value may have occurred. We stop recording our share of investee losses if our share of losses reduces our investment to zero unless we have guaranteed the obligations of or are otherwise committed to provide further financial support to the investee. If the investee subsequently reports net income, we will only continue to record our share of the net income after our share of net income equals the share of net losses not recognized during the periods that the recording of losses was suspended. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Litigation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish reserves for settlements, judgments on appeal and filed and/or threatened claims for which we believe it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize our legal costs associated with loss contingencies as they are incurred. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Derivative Financial Instruments </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We recognize all derivatives on our consolidated balance sheet at fair value. On the date we enter into a derivative contract, we designate and document each derivative contract as one of the following at the time the contract is executed: (a) a hedge of a recognized asset or liability (fair value hedge); (b) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); (c) a hedge of a net investment in a foreign operation; or (d) a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, the documentation must include the risk management objective and strategy. We assess and document quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, we use statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. For a fair value hedge, we record changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations. For a cash flow hedge, to the extent that it is effective, we record changes in the estimated fair value of the derivative in other comprehensive income. We subsequently reclassify these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, we report changes in the fair values in current period Other income (expense), net. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> If a derivative instrument in a cash flow hedge is terminated or the hedge designation is removed, we reclassify related amounts in accumulated other comprehensive income into earnings in the same period or periods during which the cash flows that were hedged affect earnings. In a period where we determine that it is probable that a hedged forecasted transaction will not occur, such as variable-rate interest payments on debt that has been repaid in advance, any related amounts in accumulated other comprehensive income are reclassified into earnings in that period. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The cash collateral held by counterparties to our derivative agreements is included in Other assets. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Match Funded Liabilities, Lines of Credit and Other Secured Borrowings </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Match funded liabilities, lines of credit and other secured borrowings are collateralized by specific assets. Under the terms of these borrowing agreements, we are subject to various qualitative and quantitative covenants. Collectively, these covenants include: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Specified net worth requirements</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Restrictions on future indebtedness</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain borrowing agreements</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> We believe that we are currently in compliance with these covenants. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Aggregate long-term borrowings by maturity date are set forth below: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="22" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Expected Maturity Date at December 31, 2012 (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2013 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2014 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2015 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2016 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2017 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> There- after </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total<br /> Balance </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Fair<br /> Value </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Match funded liabilities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 20%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Fixed rate </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,348,999 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 299,278 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,277 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,810 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Variable rate </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 495,592 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 388,876 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Lines of credit and other borrowings (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 774,508 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,466 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 792,974 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 797,799 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,619,099 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 688,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 18,466 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,325,719 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,331,077 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(2)</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Excludes the liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font-weight: normal">The interest rate for 1-Month LIBOR was 0.21% and 0.30%, respectively, at December 31, 2012 and 2011. See Note&#160;13</font>, Note&#160;14 and Note&#160;15 for additional information regarding the terms of our borrowings. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Foreign Currency Translation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Where the functional currency is not the U.S. dollar, we translate assets and liabilities of foreign entities into U.S. dollars at the current rate of exchange existing at the balance sheet date, while revenues and expenses are translated at average monthly exchange rates. We report the resulting translation adjustments as a component of accumulated other comprehensive income in stockholders&#8217; equity. Where the functional currency of a foreign entity is the U.S. dollar, re-measurement adjustments of foreign-denominated amounts are included in the results of operations. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Income Taxes </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We file consolidated federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for income taxes using the asset and liability method which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Basic and Diluted Earnings per Share </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of the outstanding options to purchase common stock using the treasury stock method. The computation of diluted earnings per share also includes the potential shares of converted common stock associated with our Series A Perpetual Convertible Preferred Stock and our Convertible Notes using the if-converted method. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Use of Estimates </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The preparation of financial statements in conformity with generally accepted accounting principles requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly significant in the near or medium term relate to fair value measurements, the provision for potential losses that may arise from litigation proceedings, the amortization of MSRs and the valuation of loans held for sale, goodwill and deferred tax assets. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Stock-Based Compensation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. For stock option awards with a service condition, we recognize the cost of the awards as compensation expense ratably over the vesting period. For stock options awarded with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from a lattice (binomial) options pricing model. When options with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Recent Accounting Pronouncements </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>ASU 2011-03 (ASC 860, Transfers and Servicing): Reconsideration of Effective Control for Repurchase Agreements</i>. Repurchase agreements are accounted for as secured borrowings (and therefore not as sales) if the transferor has not surrendered control over the transferred assets. The amendments in this ASU remove from the assessment of effective control the criterion relating to the transferor&#8217;s ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. Consequently, the amendments in this update also eliminate the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. The effect of these amendments is to reduce the criteria that must be met in order for the transaction to be accounted for as a secured borrowing. The guidance shall be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Our adoption of the provisions in this ASU effective January 1, 2012 did not have a material impact on our consolidated financial statements. See Note&#160;14 for our disclosure of repurchase agreements, which we account for as a secured borrowing. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>ASU 2011-04 (ASC 820, Fair Value Measurement): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs</i>. The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. Some of the amendments clarify the FASB&#8217;s intent about the application of existing fair value measurement requirements. For example, the amendments specify that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. Other amendments prescribe certain additional disclosures about fair value measurements, including Level 3 fair value measurements and financial instruments not carried at fair value. See Note&#160;4 for our fair value disclosures. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>ASU 2011-05 (ASC 220, Comprehensive Income): Presentation of Comprehensive Income</i>. This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders&#8217; equity. This ASU also requires consecutive presentation of the statement of net income and other comprehensive income and requires that an entity present reclassification adjustments from other comprehensive income to net income by component on the face of both the statement in which net income is presented and the statement in which other comprehensive income is presented. The FASB subsequently issued <i>ASU 2011-12: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05</i>, which defers indefinitely the provision regarding the presentation of reclassification adjustments. Our adoption of ASU 2011-05 effective January 1, 2012 did not have a material impact on our consolidated financial statements. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>ASU 2011-11,</i> <i>(ASC 210, Balance Sheet): Disclosures about Offsetting Assets and Liabilities.</i> The amendments in this ASU require an entity to disclose information that will enable users of an entity&#8217;s financial statements to evaluate the effect or potential effect of netting arrangements on an entity&#8217;s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The disclosures relate to financial instruments and derivative instruments that are either (1) offset on the balance sheet under existing accounting guidance or (2) subject to an enforceable master netting arrangement or similar agreement. The FASB subsequently issued <i>ASU 2013-01</i><font style="font-style: normal">:</font> <i>Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,</i> <font style="font-style: normal">to</font> clarify the scope of transactions that are subject to the disclosures about offsetting. ASU 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. Specifically, the amendments clarify that ASU 2011-11 applies to derivatives accounted for in accordance with ASC 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210 or ASC 815 or subject to an enforceable master netting arrangement or similar agreement<i>.</i> Our adoption of these standards on January 1, 2013 did not have a material impact on our consolidated financial statements, as the requirements relate to disclosures only. This new guidance shall be applied retrospectively for all comparative periods presented. </p><br/> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Organization </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen Financial Corporation (NYSE: OCN) (Ocwen or OCN) is a financial services holding company which, through its subsidiaries, is engaged in the servicing and origination of mortgage loans. Ocwen is headquartered in Atlanta, Georgia with offices in Florida, Texas, New Jersey, United States Virgin Islands (USVI) and Washington, DC and support operations in India and Uruguay. Ocwen is a Florida corporation organized in February 1988. Ocwen Loan Servicing, LLC (OLS), a wholly-owned subsidiary, is licensed to service mortgage loans in all 50 states, the District of Columbia and two U.S. territories. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> At December 31, 2012, Ocwen directly or indirectly owned all of the outstanding stock of its primary operating subsidiaries: OLS, Ocwen Financial Solutions Private Limited, Ocwen Mortgage Servicing, Inc. (OMS) and Homeward Residential Holdings, Inc. (Homeward). OMS is a corporation formed on February 27, 2012 under the laws of the USVI and is a wholly owned subsidiary of OCN. OMS has its principal place of business in St. Croix, USVI. As disclosed below, we acquired Homeward, a Delaware corporation, through a merger transaction which closed on December 27, 2012. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen also holds a 49% equity interest in Correspondent One S.A. (Correspondent One), an entity formed with Altisource Portfolio Solutions S.A. (Altisource) in March 2011, a 26% interest in Ocwen Structured Investments, LLC (OSI) and an approximate 25% interest in Ocwen Nonperforming Loans, LLC (ONL) and Ocwen REO, LLC (OREO). The assets of ONL and OREO were liquidated to cash, and the entities were subsequently dissolved in December 2012. As part of the Homeward Acquisition, we acquired a 69.79% equity interest in Powerlink Settlement Services, LP. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On December 27, 2012, Ocwen completed the merger by and among Ocwen, O&amp;H Acquisition Corp., a Delaware corporation and a wholly-owned subsidiary of Ocwen, Homeward and WL Ross &amp; Co. LLC, a Delaware limited liability company as shareholder representative, pursuant to which O&amp;H Acquisition Corp. merged with and into Homeward with Homeward continuing as the surviving corporation and becoming a wholly-owned subsidiary of Ocwen (the Homeward Acquisition). Homeward engages in the servicing of residential mortgage loans, the majority of which are nonprime, and also originates prime loans. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On September 1, 2011, Ocwen completed its acquisition (the Litton Acquisition) of (i) all the outstanding partnership interests of Litton Loan Servicing LP (Litton), a subsidiary of The Goldman Sachs Group, Inc. (Goldman Sachs) and a provider of servicing and subservicing of primarily non-prime residential mortgage loans and (ii) certain interest-only servicing securities previously owned by Goldman Sachs &amp; Co., also a subsidiary of Goldman Sachs (collectively referred to as the Litton Loan Servicing Business). </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On September 1, 2010, Ocwen, through OLS, completed its acquisition (the HomEq Acquisition) of the U.S. non-prime mortgage servicing business within Barclays Bank PLC known as &#8220;HomEq Servicing&#8221; including, but not limited to, the mortgage servicing rights and associated servicer advances of the business as well as the servicing platforms. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> See Note&#160;2 for additional information regarding the Homeward Acquisition, Litton Acquisition and HomEq Acquisition.</p> 0.49 0.26 0.25 0.6979 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">of Consolidation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Our financial statements include the accounts of Ocwen, its majority-owned subsidiaries and any variable interest entity (VIE) where we have determined that Ocwen is the primary beneficiary. We apply the equity method of accounting to investments when the entity is not a VIE, and we are able to exercise significant influence, but not control, over the policies and procedures of the entity but own 50% or less of the voting securities. We account for our investments in OSI, ONL, OREO and Correspondent One using the equity method. We have eliminated intercompany accounts and transactions in consolidation. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Variable Interest Entities</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We evaluate each special purpose entity (SPE) for classification as a VIE. When an SPE meets the definition of a VIE and we determine that Ocwen is the primary beneficiary, we include the SPE in our consolidated financial statements. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We have determined that the SPEs created in connection with the match funded financing facilities discussed below are VIEs of which we are the primary beneficiary. We also determined that we were the primary beneficiary for four residential mortgage loan securitization trusts. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Securitizations and Asset Backed Financing Arrangements</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. We have continuing involvement with the financial assets of five of the securitizations and nine of the asset-backed financing arrangements. We have aggregated these securitizations and asset-backed financing arrangements into two groups: (1) securitizations of residential mortgage loans and (2) financings of advances on loans serviced for others. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Securitizations of Residential Mortgage Loans.</i> In prior years, we securitized residential mortgage loans using certain trusts. We accounted for these transactions as sales even though we continued to be involved with the trusts, typically by acting as the servicer or sub-servicer for the loans held by the trust and by retaining a beneficial ownership interest in the trust. The beneficial interests that we held consisted of both subordinate and residual securities that were either retained at the time of the securitization or subsequently acquired. We held beneficial interests in five of these trusts. We also acquired residual and subordinated interests in six additional trusts where we were not the transferor but were the servicer. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Effective January 1, 2010, as a result of our adoption of Accounting Standards Update (ASU) No. 2009-16 (Accounting Standards Codification (ASC) 860, Transfers and Servicing) and ASU 2009-17 (ASC 810, Consolidation), we included four of these eleven trusts in our consolidated financial statements because we determined that our involvement represented a variable interest and that we were the primary beneficiary of the trusts. We did not consolidate the remaining trusts because our involvement did not represent a variable interest. In December 2012, we sold the beneficial interests that we held in the four consolidated securitization trusts. We then deconsolidated the trusts and recognized a loss of $3,167. We also sold our retained interests in two of the unconsolidated trusts. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The beneficial interests that we hold in the five remaining unconsolidated securitization trusts have no value and no potential for significant cash flows in the future. In addition, at December 31, 2012, we had no other significant assets in our consolidated financial statements related to these trusts. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Ocwen. The general creditors of Ocwen have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the mortgage servicing rights (MSRs) that are related to the trusts and the advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note&#160;6&#160;and Note&#160;8&#160;or additional information regarding Advances and Mortgage servicing rights. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Financings of Advances on Loans Serviced for Others.</i> Match funded advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because the transfers do not qualify for sales accounting treatment or because Ocwen is the primary beneficiary of the SPE. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> These SPEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of our advance facility agreements. We classify the transferred advances on our Consolidated Balance Sheet as Match funded advances and the related liabilities as Match funded liabilities. The SPEs use collections of the pledged advances to repay principal and interest and to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities themselves for satisfaction of the debt and have no recourse against Ocwen. OLS had previously guaranteed the payment of obligations under the securitization documents of one of the entities; however, in September 2012, the notes outstanding under this facility were repaid, and the facility was terminated. The assets and liabilities of the advance financing SPEs are comprised solely of Match funded advances, Debt service accounts, Match funded liabilities and amounts due to affiliates. Amounts due to affiliates are eliminated in consolidation. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> See Note&#160;7, Note&#160;11 and Note&#160;13 for additional information regarding Match funded advances, Debt service accounts and Match funded liabilities.</p> 3167000 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Reclassification </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> As disclosed above, following our sale of the retained beneficial interests in December 2012, we deconsolidated the four securitization trusts that we began including in our consolidated financial statements effective January 1, 2010. As a result, we have made the following reclassifications within the assets and liabilities sections of the Consolidated Balance Sheet at December 31, 2011: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Restricted cash &#8211; for securitization investors balance of $675 to Other assets;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Loans, net &#8211; restricted for securitization investors balance of $58,560 to Other assets; and</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="text-indent: 0in; width: 0.25in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Secured borrowings &#8211; owed to securitization investors balance of $53,323 to Other liabilities to conform to the December 31, 2012 presentation.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In addition, within the assets section of the Consolidated Balance Sheet at December 31, 2011, we: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Debt service accounts from Other assets to a separate line item; and</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reclassified Loans held for sale, at lower of cost or fair value balance of $20,633 to Other assets.</font></td></tr></table> -675000 -58560000 -53323000 -20633000 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Cash </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Cash includes both interest-bearing and non-interest-bearing demand deposits with financial institutions that have original maturities of 90 days or less.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Securities </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Trading securities includes other investments with original maturities of three months or less that we do not treat as cash equivalents. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for investments in auction rate, investment grade, residual and subordinate securities as trading securities at fair value. We report changes in fair value in gain (loss) on trading securities in the period of the change. We determine fair value based either on third party dealer quotations, where available, or on internal values determined using market based assumptions. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We recognize interest income on subordinate and residual securities through an &#8220;effective yield&#8221; method with changes in expected future cash flows reflected in the yield on a prospective basis. We adjust the prospective yield each time the estimates of expected future cash flows change or the actual cash flows differ from projections. We use the newly calculated yield in the accrual of interest income for subsequent reporting periods. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> At December 31, 2012, our investment in trading securities was $0.</p> 0 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Held for Sale </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> As part of the Homeward Acquisition, we acquired Homeward&#8217;s prime residential loan origination platform. These loans are originated or purchased and held until sold to secondary market investors. The loans are typically warehoused for a period after origination or purchase before they are sold into the secondary market, primarily to Government Sponsored Enterprises (GSEs). The servicing rights and servicing obligations of mortgage loans are generally retained upon sale into the secondary market. We elected to measure these loans at fair value on a recurring basis. At each reporting date, we measure the loans at fair value and report changes in fair value in earnings in the period in which the changes occur. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for all other residential mortgage loans that we do not intend to hold to maturity at the lower of cost or fair value computed on an aggregate basis. We account for the excess of cost over fair value as a valuation allowance and include changes in the valuation allowance in gain (loss) on loans held for sale, net, in the period in which the change occurs. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We accrue interest income as earned. We place loans on non-accrual status after any portion of principal or interest has been delinquent greater than 89 days or earlier if management determines the borrower is unable to continue performance. When we place a loan on non-accrual status, we reverse interest accrued but not received. We return loans to accrual status only when we reinstate the loan and have no significant uncertainty as to collectibility.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Servicing Rights </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> MSRs are an intangible asset representing the right to service a portfolio of mortgage loans. We generally obtain MSRs through asset purchases or business combination transactions. We also retain servicing rights on originated loans when they are sold in the secondary market. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> An agreement between the various parties to a mortgage securitization transaction typically specifies the rights and obligations of the holder of the MSRs which include guidelines and procedures for servicing the loans. Two examples of these guidelines and procedures include remittance and reporting requirements. Assets serviced for others are not included on our balance sheet. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Custodial accounts, which hold funds representing collections of principal and interest we receive from borrowers (float balances), are held in escrow by an unaffiliated bank and excluded from our Consolidated Balance Sheet. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> All newly acquired MSRs are initially measured at fair value. Subsequent to acquisition, we account for MSRs using the amortization method or the fair value measurement method, based on our strategy for managing the risks of the underlying portfolios. For certain of the servicing assets we acquired in the Homeward Acquisition, we manage the effects of interest rate risk with derivative financial instruments. We elected to account for this class of servicing assets using the fair value measurement method. We recognize a servicing liability for those agreements that are not expected to compensate us adequately for performing the servicing. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For servicing assets or liabilities that we account for using the amortization method, we amortize the balances in proportion to and over the period of estimated net servicing income (if servicing revenues exceed servicing costs) or net servicing loss (if servicing costs exceed servicing revenues). We assess servicing assets or liabilities for impairment or increased obligation based on fair value at each reporting date. We determine estimated net servicing income using the estimated future balance of the underlying mortgage loan portfolio, which, absent new purchases, declines over time from prepayments and scheduled loan amortization. We adjust amortization prospectively in response to changes in estimated projections of future cash flows. We perform an impairment analysis based on the difference between the carrying amount and estimated fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans and recognize any impairment through a valuation allowance. We adjust the valuation allowance to reflect subsequent changes in the measurement of impairment. Fair value in excess of the carrying amount of servicing assets for that stratum, however, is not recognized. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For servicing assets or liabilities that we account for at fair value on a recurring basis, we measure the balances at fair value at each reporting date and report changes in fair value in earnings in the period in which the changes occur.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Servicing Fees and Advances </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We earn fees for servicing mortgage loans. We collect servicing fees, generally expressed as a percent of unpaid principal balance (UPB) from the borrowers&#8217; payments. We also include late fees, prepayment penalties, float earnings and other ancillary fees in servicing income. We recognize servicing fees as revenue when the fees are earned which is generally when the borrowers&#8217; payments are collected or when loans are modified or liquidated through the sale of the underlying real estate collateral or otherwise. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> During any period in which the borrower does not make payments, most of our servicing agreements require that we advance our own funds to meet contractual principal and interest remittance requirements for the investors, to pay property taxes and insurance premiums and to process foreclosures. We also advance funds to maintain, repair and market foreclosed real estate properties on behalf of investors. These advances are made pursuant to the terms of each servicing contract. Each servicing contract is associated with specific loans, identified as a pool. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> When we make an advance on a loan under each servicing contract, we are entitled to recover that advance either from the borrower, for reinstated and performing loans, or from investors, for foreclosed loans. Most of our servicing contracts provide that the advances made under the respective agreement have priority over all other cash payments from the proceeds of the loan, and in the majority of cases, the proceeds of the pool of loans, which are the subject of that servicing contract. As a result, we are entitled to repayment from loan proceeds before any interest or principal is paid on the bonds, and in the majority of cases, advances in excess of loan proceeds may be recovered from pool level proceeds. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We record a charge to earnings to the extent that we believe advances are uncollectible under the provisions of each servicing contract taking into consideration historical loss and delinquency experience, length of delinquency and the amount of the advance. However, we are generally only obligated to advance funds to the extent that we believe the advances are recoverable from expected proceeds from the loan. We assess collectibility using proprietary cash flow projection models which incorporate a number of different factors, depending on the characteristics of the mortgage loan or pool, including, for example, time to a foreclosure sale, estimated costs of foreclosure action, future property tax payments and the value of the underlying property net of carrying costs, commissions and closing costs.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Goodwill </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Goodwill represents the cost of acquired businesses in excess of the fair value of the net assets acquired. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We test goodwill for impairment annually or sooner if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its net carrying value. Effective with our adoption of <i>ASU 2011-08 (ASC 350, Intangibles &#8211; Goodwill and Other): Testing Goodwill for Impairment</i> in the fourth quarter of 2011, we have the option of performing a qualitative assessment of impairment to determine whether any further quantitative testing for impairment is necessary. If we elect to bypass the qualitative assessment or if we determine, on the basis of qualitative factors, that the fair value of the reporting unit is more likely than not (defined as having a likelihood of more than 50 percent) less than the carrying value, a two-step quantitative test is required. Otherwise, no further testing is required. Factors that we consider in the qualitative assessment include general economic conditions, conditions of the industry and market in which we operate, regulatory developments, cost factors and our overall financial performance. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In the first step of the two-step quantitative assessment, we compare the fair value of the reporting unit with its net carrying value, including goodwill. If the net carrying value of the reporting unit exceeds its fair value, we then perform the second step of the impairment test to measure the amount of impairment loss, if any. The second step requires allocation of the reporting unit&#8217;s fair value to all of its assets and liabilities in a manner similar to a purchase price allocation, with any residual fair value being allocated to goodwill (implied fair value of goodwill). If the carrying amount of the reporting unit&#8217;s goodwill exceeds the implied fair value of that goodwill, we recognize an impairment loss in an amount equal to that excess up to the carrying value of goodwill. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In performing the quantitative two-step impairment analysis for goodwill, we use an approach based on the fair value of the assets and liabilities. We perform this analysis using projections of future income discounted at a market rate. The determination of market discount rates is subjective and could vary based on the nature of the underlying business, stage of development and revenue to date. The projections of future cash flows and assumptions concerning future operating performance and economic conditions may differ from actual results. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We perform our annual impairment test of goodwill as of August 31<sup>st</sup> of each year. Based on our 2012 annual assessment, we determined that goodwill was not impaired.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">and Equipment </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We report premises and equipment at cost and, except for land, depreciate them over their estimated useful lives on the straight-line method as follows: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Computer hardware and software </font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">2 &#8211; 3 years</font> </td> </tr> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Leasehold improvements</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">Term of the lease not to exceed useful life</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Furniture and fixtures</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">5 years</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Office equipment</font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">5 years</font></td></tr></table> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">in Unconsolidated Entities </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 18.7pt"> We account for our investments in unconsolidated entities using the equity method. These investments include both entities in which we hold a significant, but less than controlling, ownership interest and VIEs in which we are not deemed to be the primary beneficiary. Under the equity method of accounting, investments are initially recorded at cost and thereafter adjusted for additional investments, distributions and the proportionate share of earnings or losses of the investee. We evaluate our equity method investments for impairment when events or changes in circumstances indicate that any other-than-temporary decline in value may have occurred. We stop recording our share of investee losses if our share of losses reduces our investment to zero unless we have guaranteed the obligations of or are otherwise committed to provide further financial support to the investee. If the investee subsequently reports net income, we will only continue to record our share of the net income after our share of net income equals the share of net losses not recognized during the periods that the recording of losses was suspended.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Litigation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We monitor our legal matters, including advice from external legal counsel, and periodically perform assessments of these matters for potential loss accrual and disclosure. We establish reserves for settlements, judgments on appeal and filed and/or threatened claims for which we believe it is probable that a loss has been or will be incurred and the amount can be reasonably estimated. We recognize our legal costs associated with loss contingencies as they are incurred.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Financial Instruments </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We recognize all derivatives on our consolidated balance sheet at fair value. On the date we enter into a derivative contract, we designate and document each derivative contract as one of the following at the time the contract is executed: (a) a hedge of a recognized asset or liability (fair value hedge); (b) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (cash flow hedge); (c) a hedge of a net investment in a foreign operation; or (d) a derivative instrument not designated as a hedging instrument. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, the documentation must include the risk management objective and strategy. We assess and document quarterly the extent to which a derivative has been and is expected to continue to be effective in offsetting the changes in the fair value or the cash flows of the hedged item. To assess effectiveness, we use statistical methods, such as regression analysis, as well as nonstatistical methods including dollar-offset analysis. For a fair value hedge, we record changes in the fair value of the derivative and, to the extent that it is effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in the same financial statement category as the hedged item on the face of the statement of operations. For a cash flow hedge, to the extent that it is effective, we record changes in the estimated fair value of the derivative in other comprehensive income. We subsequently reclassify these changes in estimated fair value to net income in the same period, or periods, that the hedged transaction affects earnings and in the same financial statement category as the hedged item. For a derivative instrument not designated as a hedging instrument, we report changes in the fair values in current period Other income (expense), net. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> If a derivative instrument in a cash flow hedge is terminated or the hedge designation is removed, we reclassify related amounts in accumulated other comprehensive income into earnings in the same period or periods during which the cash flows that were hedged affect earnings. In a period where we determine that it is probable that a hedged forecasted transaction will not occur, such as variable-rate interest payments on debt that has been repaid in advance, any related amounts in accumulated other comprehensive income are reclassified into earnings in that period. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The cash collateral held by counterparties to our derivative agreements is included in Other assets.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Funded Liabilities, Lines of Credit and Other Secured Borrowings </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Match funded liabilities, lines of credit and other secured borrowings are collateralized by specific assets. Under the terms of these borrowing agreements, we are subject to various qualitative and quantitative covenants. Collectively, these covenants include: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Specified net worth requirements</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Restrictions on future indebtedness</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Monitoring and reporting of various specified transactions or events, including specific reporting on defined events affecting collateral underlying certain borrowing agreements</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> We believe that we are currently in compliance with these covenants. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Aggregate long-term borrowings by maturity date are set forth below: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="22" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Expected Maturity Date at December 31, 2012 (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2013 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2014 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2015 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2016 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2017 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> There- after </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total<br /> Balance </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Fair<br /> Value </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Match funded liabilities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 20%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Fixed rate </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,348,999 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 299,278 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,277 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,810 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Variable rate </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 495,592 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 388,876 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Lines of credit and other borrowings (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 774,508 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,466 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 792,974 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 797,799 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,619,099 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 688,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 18,466 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,325,719 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,331,077 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">For match funded liabilities, the expected maturity date is the date on which the revolving period ends for each advance financing facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(2)</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Excludes the liability of $303,705 recorded in connection with sales of Rights to MSRs accounted for as a financing. This financing liability has no contractual maturity and is amortized over the life of the pledged MSRs. See Note 14 for additional information regarding this financing liability.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font-weight: normal">The interest rate for 1-Month LIBOR was 0.21% and 0.30%, respectively, at December 31, 2012 and 2011. See Note&#160;13</font>, Note&#160;14 and Note&#160;15 for additional information regarding the terms of our borrowings.</p> 303705000 0.0021 0.0030 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Currency Translation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Where the functional currency is not the U.S. dollar, we translate assets and liabilities of foreign entities into U.S. dollars at the current rate of exchange existing at the balance sheet date, while revenues and expenses are translated at average monthly exchange rates. We report the resulting translation adjustments as a component of accumulated other comprehensive income in stockholders&#8217; equity. Where the functional currency of a foreign entity is the U.S. dollar, re-measurement adjustments of foreign-denominated amounts are included in the results of operations.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Income Taxes </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We file consolidated federal income tax returns. We allocate consolidated income tax among all subsidiaries included in the consolidated return as if each subsidiary filed a separate return or, in certain cases, a consolidated return. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We account for income taxes using the asset and liability method which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Additionally, we adjust deferred taxes to reflect estimated tax rate changes. We conduct periodic evaluations to determine whether it is more likely than not that some or all of our deferred tax assets will not be realized. Among the factors considered in this evaluation are estimates of future earnings, the future reversal of temporary differences and the impact of tax planning strategies that we can implement if warranted. We provide a valuation allowance for any portion of our deferred tax assets that, more likely than not, will not be realized. We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">and Diluted Earnings per Share </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We calculate basic earnings per share based upon the weighted average number of shares of common stock outstanding during the year. We calculate diluted earnings per share based upon the weighted average number of shares of common stock outstanding and all dilutive potential common shares outstanding during the year. The computation of diluted earnings per share includes the estimated impact of the exercise of the outstanding options to purchase common stock using the treasury stock method. The computation of diluted earnings per share also includes the potential shares of converted common stock associated with our Series A Perpetual Convertible Preferred Stock and our Convertible Notes using the if-converted method.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">of Estimates </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The preparation of financial statements in conformity with generally accepted accounting principles requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates. Material estimates that are particularly significant in the near or medium term relate to fair value measurements, the provision for potential losses that may arise from litigation proceedings, the amortization of MSRs and the valuation of loans held for sale, goodwill and deferred tax assets.</p> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Stock-Based Compensation </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. For stock option awards with a service condition, we recognize the cost of the awards as compensation expense ratably over the vesting period. For stock options awarded with a market condition, we recognize the cost as compensation expense ratably over the expected life of the option that is derived from a lattice (binomial) options pricing model. When options with a market condition meet their vesting requirements, any unrecognized compensation at the vesting date is recognized ratably over the vesting period.</p> Accounting Pronouncements ASU 2011-03 (ASC 860, Transfers and Servicing): Reconsideration of Effective Control for Repurchase Agreements . Repurchase agreements are accounted for as secured borrowings (and therefore not as sales) if the transferor has not surrendered control over the transferred assets. The amendments in this ASU remove from the assessment of effective control the criterion relating to the transferor's ability to repurchase or redeem financial assets on substantially the agreed terms, even in the event of default by the transferee. Consequently, the amendments in this update also eliminate the requirement to demonstrate that the transferor possesses adequate collateral to fund substantially all the cost of purchasing replacement financial assets. The effect of these amendments is to reduce the criteria that must be met in order for the transaction to be accounted for as a secured borrowing. The guidance shall be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Our adoption of the provisions in this ASU effective January 1, 2012 did not have a material impact on our consolidated financial statements. See Note14 for our disclosure of repurchase agreements, which we account for as a secured borrowing. ASU 2011-04 (ASC 820, Fair Value Measurement): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs . The amendments in this ASU explain how to measure fair value. They do not require additional fair value measurements and are not intended to establish valuation standards or affect valuation practices outside of financial reporting. Some of the amendments clarify the FASB's intent about the application of existing fair value measurement requirements. For example, the amendments specify that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. Other amendments prescribe certain additional disclosures about fair value measurements, including Level 3 fair value measurements and financial instruments not carried at fair value. See Note4 for our fair value disclosures. ASU 2011-05 (ASC 220, Comprehensive Income): Presentation of Comprehensive Income . This ASU eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity. This ASU also requires consecutive presentation of the statement of net income and other comprehensive income and requires that an entity present reclassification adjustments from other comprehensive income to net income by component on the face of both the statement in which net income is presented and the statement in which other comprehensive income is presented. The FASB subsequently issued ASU 2011-12: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 , which defers indefinitely the provision regarding the presentation of reclassification adjustments. Our adoption of ASU 2011-05 effective January 1, 2012 did not have a material impact on our consolidated financial statements. ASU 2011-11, (ASC 210, Balance Sheet): Disclosures about Offsetting Assets and Liabilities. The amendments in this ASU require an entity to disclose information that will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. The disclosures relate to financial instruments and derivative instruments that are either (1) offset on the balance sheet under existing accounting guidance or (2) subject to an enforceable master netting arrangement or similar agreement. The FASB subsequently issued ASU 2013-01 : Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, to clarify the scope of transactions that are subject to the disclosures about offsetting. ASU 2013-01 clarifies that ordinary trade receivables and receivables are not in the scope of ASU 2011-11. Specifically, the amendments clarify that ASU 2011-11 applies to derivatives accounted for in accordance with ASC 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with ASC 210 or ASC 815 or subject to an enforceable master netting arrangement or similar agreement . Our adoption of these standards on January 1, 2013 did not have a material impact on our consolidated financial statements, as the requirements relate to disclosures only. This new guidance shall be applied retrospectively for all comparative periods presented. <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Computer hardware and software </font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">2 &#8211; 3 years</font> </td> </tr> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Leasehold improvements</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">Term of the lease not to exceed useful life</font> </td> </tr> </table><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 47%"> <font style="font-family: Times New Roman, Times, Serif">Furniture and fixtures</font> </td> <td style="width: 49%"> <font style="font-family: Times New Roman, Times, Serif">5 years</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> <font style="font-family: Times New Roman, Times, Serif">Office equipment</font> </td> <td> <font style="font-family: Times New Roman, Times, Serif">5 years</font> </td> </tr> </table> 2 - 3 years Term of the lease not to exceed useful life 5 years 5 years <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="22" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Expected Maturity Date at December 31, 2012 (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2013 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2014 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2015 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2016 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2017 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> There- after </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total<br /> Balance </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Fair<br /> Value </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Match funded liabilities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 20%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Fixed rate </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,348,999 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 299,278 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,277 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 7%; text-align: right"> 1,648,810 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Variable rate </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 495,592 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 388,876 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884,468 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Lines of credit and other borrowings (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 774,508 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,466 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 792,974 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 797,799 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,619,099 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 688,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 18,466 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right; border-bottom: Black 1pt solid"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,325,719 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,331,077 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 1348999000 299278000 1648277000 1648810000 495592000 388876000 884468000 884468000 774508000 18466000 792974000 797799000 2619099000 688154000 18466000 3325719000 3331077000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 8%; font-weight: bold; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">NOTE 2</font> </td> <td style="width: 92%; font-weight: bold; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">BUSINESS ACQUISITIONS</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font-weight: normal">We completed the acquisitions of Homeward, Litton Loan Servicing Business and HomEq Servicing in order to expand our residential servicing business. <font style="text-transform: uppercase"></font>We accounted for these transactions using the acquisition method which requires, among other things, that the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date. In a business combination, the initial allocation of the purchase price is considered preliminary and therefore subject to change until the end of the measurement period (up to one year from the acquisition date). Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the expected revenue and cost synergies of the combined business.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The pro forma consolidated results presented below for each business acquisition are not indicative of what Ocwen&#8217;s consolidated net earnings would have been had we completed the acquisition on the dates indicated because of differences in servicing practices and cost structure between Ocwen and the acquiree. In addition, the pro forma consolidated results do not purport to project the future results of Ocwen combined nor do they reflect the expected realization of any cost savings associated with each acquisition. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The acquisition of Homeward was treated as a stock purchase for U.S. tax purposes. The acquisitions of Litton Loan Servicing Business and HomEq Servicing are treated as asset acquisitions for U.S. tax purposes. We expect the opening tax basis for the acquired assets and liabilities to be the fair value as shown in the purchase price allocation tables below. We expect the MSRs and goodwill to be treated as intangible assets acquired in connection with the purchase of a trade or business and as such, amortized over 15 years for tax purposes. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Homeward Acquisition </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen completed the merger which resulted in the acquisition of Homeward on December 27, 2012. In the Homeward Acquisition, we acquired the MSRs and subservicing for approximately 421,000 residential mortgage loans with a UPB of approximately $77 billion. We also acquired Homeward&#8217;s loan origination platform and its diversified fee-based business that includes property valuation, REO management, title, closing and advisory services. <b></b>We expect to sell the acquired diversified-based business to Altisource in March 2013. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> As consideration, Ocwen paid an aggregate purchase price of $765,724. Of this amount, $603,724 was paid in cash and $162,000 was paid in Preferred Stock. $85,000 of the consideration has been placed into escrow for a period of 21 months following the closing date to fund any loss sharing payments and certain other indemnification payments that may become owed to Ocwen, as well as to fund certain expenses. See Note&#160;18 </p><br/><p style="margin: 0"> for information related to the preferred stock. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Payment of the cash consideration was financed, in part, by a $100,000 incremental term loan from Barclays Bank PLC (Barclays) pursuant to the existing senior secured term loan (SSTL) facility we entered into on September 1, 2011 and $75,000 from Altisource, pursuant to a new senior unsecured loan agreement. See Note&#160;14 for additional information regarding the terms of these agreements. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Following the acquisition, we paid $350,000 to terminate the senior credit facility and revolving line of credit that we assumed from Homeward. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Purchase Price Allocation</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table summarizes the fair values of assets acquired and liabilities assumed as part of the Homeward Acquisition: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; padding-left: 10pt; text-indent: -10pt"> Cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 79,511 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Loans held for sale (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 558,721 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Mortgage servicing rights (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 358,119 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advances and match funded advances (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,266,882 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Deferred tax assets (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 47,346 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Premises and equipment (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,803 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Debt service accounts </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,287 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Investment in unconsolidated entities (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,485 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Receivables and other assets (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,886 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Match funded liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,997,459 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Lines of credit and other secured borrowings </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (864,969 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Accrued bonuses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (35,201 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Checks held for escheat (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (16,418 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> Other liabilities (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 1pt solid"> &#160; </td> <td style="text-align: right; border-bottom: Black 1pt solid"> (80,112 </td> <td style="text-align: left; padding-bottom: 1pt"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 464,881 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> Goodwill (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 1pt solid"> &#160; </td> <td style="text-align: right; border-bottom: Black 1pt solid"> 300,843 </td> <td style="text-align: left; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; padding-bottom: 2.5pt"> Total consideration </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 765,724 </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The estimated fair values of the assets acquired and liabilities assumed at the acquisition date, as set forth in the table above, includes some accounts that are based on preliminary fair value estimates. The following factors led to certain balances (denoted above) having preliminary fair value estimates: </p><br/><table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Times New Roman, Times, Serif"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in"> &#8226; </td> <td> The proximity of the Homeward acquisition date (December 27, 2012) to our fiscal year end (December 31, 2012); </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: top"> <td> &#160;&#160; </td> <td> &#8226; </td> <td> The complex nature of certain acquired assets and liabilities prevented us from completing our valuations and reconciliations; </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td> We engaged a third party specialist to assist in valuing certain assets and liabilities and this work is not yet complete; and </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td> Underlying information such as UPB and other loan level details have not yet been boarded and reconciled onto our servicing platform and therefore we have not been able to fully validate and reconcile certain assets and liability balances correlated with UPB data. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Our purchase agreement with Homeward allows for us to fully assess the valuation of the assets and liabilities acquired during an evaluation period that extends beyond the date of these consolidated financial statements. Because the measurement period is still open we expect that certain fair value estimates will change once we receive all information necessary to make a final fair value assessment.&#160; We expect that the measurement period will extend until at least June 30, 2013.&#160; Any measurement period adjustments that we determine to be material will be applied retrospectively to the period of acquisition in our consolidated financial statements and, depending on the nature of the adjustments, other periods subsequent to the period of acquisition could also be affected. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Post-Acquisition Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents the revenue and earnings of the Homeward that is included in our Consolidated Statement of Operations from the acquisition date of December 27, 2012 through December 31, 2012: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 5,881 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 44 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Pro Forma Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents supplemental pro forma information as if the acquisition of Homeward occurred on January 1, 2011. Pro forma adjustments include: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming servicing revenues to the revenue recognition policy followed by Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming the accounting for MSRs to the valuation and amortization policies of Ocwen;</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="text-indent: 0in; width: 0.25in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reversing depreciation recognized by Homeward and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">adjusting interest expense to eliminate the pre-acquisition interest expense of Homeward and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2011 and</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reporting acquisition-related charges for professional services related to the acquisition as if they had been incurred in 2011 rather than 2012.</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,362,927 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,085,914 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 254,051 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 163,647 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Through December 31, 2012, we incurred approximately $990 of fees for professional services related to the Homeward Acquisition that are included in Operating expenses. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Litton Acquisition </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-indent: 0.25in"> <font style="font-weight: normal; text-transform: none">Ocwen completed its acquisition of the Litton Loan Servicing Business on September 1, 2011. The Litton Acquisition included a servicing portfolio of approximately 245,000 primarily non-prime residential mortgage loans with approximately $38.6 billion in UPB and the servicing platform of the Litton Loan Servicing Business based in Houston, Texas and McDonough, Georgia.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-indent: 0.25in"> <font style="font-weight: normal; text-transform: none">The base purchase price for the Litton Acquisition was $247,154, which was paid in cash by Ocwen at closing. In addition and as part of the closing, Ocwen repaid Litton&#8217;s $2.4 billion outstanding debt on an existing servicing advance financing facility and entered into a new advance financing facility under which it borrowed $2.1 billion. On September 1, 2011, Ocwen and certain of its subsidiaries also entered into a $575,000 SSTL facility agreement to fund the base purchase price and the difference between the proceeds from the new advance financing facility</font> <font style="font-weight: normal; text-transform: none">and the amount repaid on Litton&#8217;s existing facility.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The base purchase price was increased by $214 as a result of post-closing adjustments specified in the purchase agreement for changes in Litton&#8217;s estimated closing date net worth, servicing portfolio UPB and advance balances, among others. There were no adjustments to the purchase price subsequent to December 31, 2011. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Purchase Price Allocation</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In August 2012, we finalized the purchase price allocation and recognized the following measurement-period adjustments: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> December 31, 2011 </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Adjustments </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Final </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 44%; text-indent: -10pt; padding-left: 10pt"> Cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 23,791 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 23,791 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,468,137 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,468,137 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Premises and equipment </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,386 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,386 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,159 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (941 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,218 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,670 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,670 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Servicing liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,972 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,972 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,145 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,206 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,939 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Accrued expenses </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (25,471 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,927 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (18,544 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,604,869 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,192 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,613,061 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Goodwill </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 65,622 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,192 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,430 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total consideration </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,670,491 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,670,491 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Litton debt repaid to Goldman Sachs at closing </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,423,123 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,423,123 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt"> Base purchase price, as adjusted </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 247,368 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 247,368 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The December 31, 2011 comparative balance sheet has been revised to reflect the above measurement period adjustments. These adjustments had no effect on earnings. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We estimated the fair value of the acquired advances, loans held for sale and MSRs and the assumed debt in a manner consistent with the methodology described in Note&#160;4. <font style="font-family: Times New Roman, Times, Serif">Other assets and liabilities that are expected to have a short life were also valued at the face value of the specific assets and liabilities purchased, including receivables, prepaid expenses, accounts payable and accrued expenses.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Premises and equipment which consisted primarily of computer hardware and software were initially valued based on the &#8220;in-use&#8221; valuation premise, where the fair value of an asset is based on the highest and best use of the asset that would provide maximum value to market participants principally through its use with other assets as a group. The initial valuation presumed the continued operation of the Litton Loan Servicing Business platform as installed or otherwise configured for use. During the fourth quarter of 2011, we ceased operation of the Litton Loan Servicing Business platform and sold the computer hardware and software to Altisource for a cash purchase price of $418 which was significantly less than the initial valuation because the individual assets were no longer valued as part of a working platform. As a result, we reduced the provisional fair value assigned to these assets at the acquisition date to a value that reflected their subsequent sales price and increased the amount allocated to goodwill. In addition, certain of the acquired premises and equipment were no longer in use and were written down to their salvage value. For those assets that were to be abandoned after year end but before the end of their previously estimated useful life, we adjusted depreciation to reflect the shortened life. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 20.15pt"> Additionally, the purchase agreement provided that the severance plans of Litton and Goldman Sachs remain in effect for one year. We recognized severance expense of $10,119 during 2011 as steps taken to reorganize and streamline the operations of Litton obligated Ocwen to pay severance under those plans. Severance expense is included in Compensation and benefits in our Consolidated Statements of Operations. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt"> In connection with the establishment of the match funded advance facility Ocwen funded a reserve in the initial amount of $42,535 which is held by the facility Indenture Trustee for the benefit of the note holders. Ocwen also paid an $11,500 arrangement fee in connection with the SSTL agreement. This fee along with the discount and certain other professional fees incurred in connection with the establishment of the facility are being amortized over the five-year life of the loan. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In connection with the Litton Acquisition, Ocwen, Goldman Sachs Bank USA, Litton and the New York State Banking Department have entered into an agreement (the NY Agreement) that sets forth certain loan servicing practices and operational requirements. No fines, penalties or other payments were assessed against Ocwen or Litton under the terms of the NY Agreement. We do not believe that our commitments under the NY Agreement will have a material impact on our financial statements. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Post-Acquisition Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents the revenue and earnings of the Litton Loan Servicing Business that is included in our Consolidated Statement of Operations from the acquisition date of September 1, 2011 through December 31, 2011: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 82%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 62,750 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (20,910 </td> <td style="text-align: left"> ) </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Net loss includes non-recurring transaction related expenses of $49,552, including (i) $33,127 of severance and other compensation related to Litton employees, (ii) $6,778 of amortization of the acquired MSRs, (iii) $1,967 of depreciation resulting from the write-down of certain of the acquired furniture and fixtures that are no longer in use and (iv) $384 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the Litton loans on Ocwen&#8217;s platform. We computed income taxes using a combined statutory rate of 36.12% for federal and state income taxes.</font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Pro Forma Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents supplemental pro forma information as if the acquisition of Litton occurred on January 1, 2010. Pro forma adjustments include: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming revenues to the revenue recognition policy followed by Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming the accounting for MSRs to the valuation and amortization policy of Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reversing depreciation recognized by Litton and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">adjusting interest expense to eliminate the pre-acquisition interest expense of Litton and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2010; and</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reporting acquisition-related charges, including severance paid to Litton employees and fees for professional services related to the acquisition as if they had been incurred in 2010 rather than 2011.</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 642,033 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 632,721 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 52,407 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (169,886 </td> <td style="text-align: left"> ) </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">In December 2010, Litton deemed goodwill to be wholly impaired and wrote off the balance of $154,065. Litton also recorded a provision for losses on servicing advances of $33,734 in 2010.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Through December 31, 2011, we incurred approximately $1,170 of fees for professional services related to the Litton Acquisition that are included in Operating expenses. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <b>HomEq Acquisition</b> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen completed the HomEq Acquisition on September 1, 2010. This transaction did not result in the transfer of ownership of any legal entities. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> With the close of the HomEq Acquisition, OLS boarded 134,000 residential mortgage loans with an aggregate unpaid principal balance of $22.4 billion onto its servicing platform. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> OLS paid an initial aggregate purchase price of $1.2 billion in cash upon completion of the HomEq Acquisition. Of this amount, $852,617 was funded by notes issued by a new $1.0 billion structured servicing advance financing facility, $150,000 was paid from funds held in escrow in accordance with the terms of the new $350,000 SSTL facility and $194,130 consisted of cash and funds borrowed pursuant to the SSTL facility. See Note&#160;13 and Note&#160;14 for additional details regarding the terms of the notes supporting these facilities. The initial purchase price was reduced by $29,625 pursuant to an initial true-up of advances as reflected in the table below. We recorded a receivable of $1,449 as of December 31, 2010 for amounts due to us for further true-up under adjustment mechanisms and repurchase rights as provided in the HomEq Agreement. We collected this receivable in 2011. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Purchase Price Allocation</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table summarizes the final purchase price allocation: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Mortgage servicing rights </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 84,324 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,063,180 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,957 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Premises and equipment </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,728 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,616 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Accrued bonus </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,037 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Servicing liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (709 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other liabilities </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (964 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,152,863 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Goodwill </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,810 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Total consideration </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,165,673 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We estimated the fair value of the acquired advances, loans held for sale and MSRs and the assumed debt in a manner consistent with the methodology described in Note&#160;4. <font style="font-family: Times New Roman, Times, Serif">Other assets and liabilities that are expected to have a short life were also valued at the face value of the specific assets and liabilities purchased, including receivables, prepaid expenses, accounts payable and accrued expenses.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The valuation of premises and equipment was based on the in-use valuation premise where the highest and best use of the assets would provide maximum value to market participants principally through its use with other assets as a group. This valuation presumed the continued operation of the HomEq platform as installed or otherwise configured for use. The acquired premises and equipment consisted primarily of leasehold improvements. Subsequent to the acquisition, we vacated the leased premises in 2010 following termination of the former HomEq employees and recorded a charge of $5,840 to write off the leasehold improvements. We sold the equipment acquired from HomEq to Altisource for cash proceeds equal to the acquisition fair value of $888. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 20pt"> The asset purchase agreement provided for a 90-day true-up process for Advances and Mortgage servicing rights under limited circumstances. Payment for advances in the amount of $3,500 was held back in an escrow account under a four-year agreement during which Ocwen can seek reimbursement for existing and future uncollectible advances on certain pooling and servicing agreements under limited circumstances. Notwithstanding this holdback amount, the agreement provides for the reimbursement of uncollectible advances under all pooling and servicing agreements under limited circumstances. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 20.15pt"> Severance payments for all HomEq Servicing employees who entered an employment agreement with Ocwen were recorded as steps were taken that obligated Ocwen to pay severance for all such employees. Severance expense of $20,727 is included in Compensation and benefits in our Consolidated Statement of Operations.&#160; </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt"> In connection with the establishment of the match funded advance facility Ocwen paid Barclays a $10,110 securitization fee and funded a reserve in the initial amount of $14,342 held by the facility Indenture Trustee for the benefit of the note holders. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen has no material financial obligation for litigation related to the operations of HomEq prior to the closing. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Post-Acquisition Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents the revenue and earnings of HomEq Servicing that are included in our Consolidated Statement of Operations from the acquisition date of September 1, 2010 through December 31, 2010: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 43,127 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (26,953 </td> <td style="text-align: left"> ) </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Net loss includes non-recurring transaction-related expenses of $51,136, including (i) $32,954 of severance and other compensation related to HomEq employees who accepted employment with Ocwen, (ii) $7,794 of lease termination costs, (iii) $5,840 of depreciation resulting from the write off of leasehold improvements, (iv) $5,486 of amortization of the acquired MSRs and (v) $2,556 of fees for professional services related to the acquisition. Net loss does not include an allocation of costs related to the servicing of the HomEq loans on Ocwen&#8217;s platform. We computed income taxes using a combined statutory rate of 37% for federal and state income taxes.</font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <i>Pro Forma Results of Operations</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents supplemental pro forma information as if the acquisition of HomEq Servicing occurred on January 1, 2009. Pro forma adjustments include: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming revenues to the revenue recognition policy followed by Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reversing revenues for servicing portfolios not acquired by Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">conforming the accounting for MSRs to the valuation and amortization policy of Ocwen;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reversing depreciation recognized by HomEq and reporting depreciation based on the estimated fair values and remaining lives of the acquired premises and equipment at the date of acquisition;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">adjusting interest expense to eliminate the pre-acquisition interest expense of HomEq and to recognize interest expense as if the acquisition-related debt of Ocwen had been outstanding at January 1, 2010; and</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">&#8226;</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">reporting acquisition-related charges, including severance paid to HomEq employees and fees for professional services related to the acquisition as if they had been incurred in 2009 rather than 2010.</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 458,548 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 42,786 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Through December 31, 2010, we incurred approximately $3,977 of fees for professional services related to the HomEq Acquisition which are also included in Operating expenses. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Facility Closure Costs </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> During 2010, we incurred facility closure costs primarily consisting of severance, Worker Adjustment and Retraining Notification Act (WARN Act) compensation and lease termination costs for closure of the leased HomEq facilities. Following the acquisition, we terminated the former HomEq employees and vacated the leased facilities. During 2011 and 2012, we incurred similar costs related to the Litton Acquisition. The following table provides a reconciliation of the beginning and ending liability balances for these termination costs: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Employee termination benefits (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lease termination costs (2) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at January 1, 2010 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 32,954 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 7,794 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 40,748 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,622 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,622 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2010 (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,332 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,794 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,126 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,127 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,127 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt"> Amortization of discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (29,296 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,606 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,902 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2011 (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,163 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,287 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,450 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,869 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,030 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,899 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt"> Amortization of discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,032 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,602 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (13,634 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2012 (3) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,891 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,891 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Employee termination benefits include severance expense of $20,727 and $10,119 related to HomEq Servicing and Litton, respectively. The remaining liability for employee termination benefits related to the HomEq Acquisition was settled in 2011. We paid the liability for employee termination benefits related to the Litton Acquisition during 2012.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(2)</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">The lease agreements that we assumed for the HomEq facilities expire in 2017 and 2018. In December 2010, we exercised our option to terminate the HomEq lease agreements effective in 2013 and provided formal notice to the lessors. At that time, we recorded a charge of $7,794 to establish a reserve for the remaining lease payments discounted through the early termination date, including early termination penalties due in 2013. The balance at December 31, 2011 represented the remainder of the liability for the HomEq lease payments. In March 2012, we ceased using the Litton Georgia facility and recorded a charge of $4,779 to establish a liability for the remaining lease payments discounted through the lease expiration date in 2017. This lease does not contain an option for early termination, and we are actively attempting to sublease the space. In June 2012, we negotiated a buyout of the lease on the HomEq California facility for $2,900 which resulted in an additional expense of $251 as the payment exceeded the liability, net of unamortized discount.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(3)</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">All charges were recorded in the Servicing segment. Charges related to employee termination benefits and lease termination costs are reported in Compensation and benefits expense and Occupancy and equipment expense, respectively, in the Consolidated Statements of Operations. The liabilities are included in Other liabilities in the Consolidated Balance Sheet.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In addition to the HomEq facility closure costs described above, we recorded a depreciation charge of $5,840 in 2010 to write off the leasehold improvements related to the closed HomEq facilities. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Goodwill </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table provides a reconciliation of the beginning and ending balances of goodwill for 2012: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Homeward Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Litton Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> HomEq Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 40%; text-indent: -10pt; padding-left: 10pt"> Balance at December 31, 2011 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 57,430 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 12,810 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 70,240 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Homeward Acquisition </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 300,843 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 300,843 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Balance at December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 300,843 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 57,430 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 12,810 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 371,083 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For Homeward, $102,374 of the goodwill portion of the purchase price allocation has been assigned to the Servicing segment, $121,458 has been assigned to the Lending segment and the remaining $77,011 has been assigned to the diversified fee-based business which is included in Corporate Items and Other. For Litton and HomEq, the entire balance of goodwill pertains to the Servicing segment. As disclosed above, we finalized the Litton purchase price allocation in August 2012 and recognized measurement-period adjustments which resulted in a reduction in goodwill of $8,192. The December 31, 2011 balance sheet was revised to reflect these adjustments. We have not recognized any impairment on the goodwill associated with these three business acquisitions. </p><br/> 421000 77000000000 765724000 603724000 162000000 85000000 100000000 75000000 350000000 990000 245000000 38600000000 247154000 2400000000 2100000000 575000000 214000 418000 one 10119000 42535000 11500000 five 49552000 33127000 6778000 1967000 384000 0.3612 154065000 33734000 1170000 134000 22400000000 1200000000 852617000 1000000000 150000000 350000000 194130000 -29625000 1449000 5840000 888000 3500000 20727000 10110000 14342000 51136000 32954000 7794000 5840000 5486000 2556000 0.37 3977000 20727000 10119000 7794000 4779000 2900000 251000 5840000 102374000 121458000 77011000 8192000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; padding-left: 10pt; text-indent: -10pt"> Cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 79,511 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Loans held for sale (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 558,721 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Mortgage servicing rights (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 358,119 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advances and match funded advances (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,266,882 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Deferred tax assets (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 47,346 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Premises and equipment (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,803 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Debt service accounts </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,287 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Investment in unconsolidated entities (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,485 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Receivables and other assets (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,886 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Match funded liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,997,459 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Lines of credit and other secured borrowings </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (864,969 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Accrued bonuses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (35,201 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Checks held for escheat (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (16,418 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> Other liabilities (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 1pt solid"> &#160; </td> <td style="text-align: right; border-bottom: Black 1pt solid"> (80,112 </td> <td style="text-align: left; padding-bottom: 1pt"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 464,881 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> Goodwill (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 1pt solid"> &#160; </td> <td style="text-align: right; border-bottom: Black 1pt solid"> 300,843 </td> <td style="text-align: left; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; padding-bottom: 2.5pt"> Total consideration </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 765,724 </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> </tr> </table> 79511000 558721000 358119000 2266882000 47346000 16803000 69287000 5485000 56886000 -1997459000 -864969000 -35201000 -16418000 -80112000 464881000 300843000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 5,881 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 44 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 5881000 44000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,362,927 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,085,914 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 254,051 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 163,647 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 1362927000 1085914000 254051000 163647000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> December 31, 2011 </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Adjustments </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Final </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 44%; text-indent: -10pt; padding-left: 10pt"> Cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 23,791 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 23,791 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,468,137 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,468,137 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Premises and equipment </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,386 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,386 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,159 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (941 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,218 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Other assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,670 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,670 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Servicing liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,972 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,972 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,145 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,206 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,939 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Accrued expenses </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (25,471 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,927 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (18,544 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,604,869 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,192 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,613,061 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Goodwill </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 65,622 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,192 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,430 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total consideration </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,670,491 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,670,491 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Litton debt repaid to Goldman Sachs at closing </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,423,123 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,423,123 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 20pt"> Base purchase price, as adjusted </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 247,368 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 247,368 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 23791000 23791000 2468137000 2468137000 144314000 144314000 3386000 3386000 2159000 -941000 1218000 3670000 3670000 -8972000 -8972000 -6145000 2206000 -3939000 -25471000 6927000 -18544000 2604869000 8192000 2613061000 65622000 -8192000 57430000 2670491000 2670491000 -2423123000 -2423123000 247368000 247368000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 82%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 62,750 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (20,910 </td> <td style="text-align: left"> ) </td> </tr> </table> 62750000 -20910000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 642,033 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 632,721 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 52,407 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (169,886 </td> <td style="text-align: left"> ) </td> </tr> </table> 642033000 632721000 52407000 -169886000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Mortgage servicing rights </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 84,324 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,063,180 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,957 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Premises and equipment </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,728 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,616 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Accrued bonus </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,037 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Servicing liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (709 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other liabilities </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (964 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Total identifiable net assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,152,863 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Goodwill </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,810 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Total consideration </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,165,673 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 84324000 1063180000 7957000 6728000 4616000 3037000 709000 964000 1152863000 12810000 1165673000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 43,127 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net loss (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (26,953 </td> <td style="text-align: left"> ) </td> </tr> </table> 43127000 -26953000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td colspan="2" style="text-align: center"> (Unaudited) </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding-left: 10pt"> Revenues </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 458,548 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Net income (loss) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 42,786 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 458548000 42786000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Employee termination benefits (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lease termination costs (2) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at January 1, 2010 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 32,954 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 7,794 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 13%; text-align: right"> 40,748 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,622 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,622 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2010 (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,332 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,794 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,126 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,127 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,127 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt"> Amortization of discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (29,296 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,606 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,902 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2011 (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,163 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,287 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,450 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Additions charged to operations (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,869 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,030 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,899 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 20pt"> Amortization of discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Payments </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,032 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,602 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (13,634 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Liability balance as at December 31, 2012 (3) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,891 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,891 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 32954000 7794000 40748000 -31622000 -31622000 1332000 7794000 9126000 33127000 33127000 99000 99000 -29296000 -2606000 -31902000 5163000 5287000 10450000 2869000 5030000 7899000 176000 176000 -8032000 -5602000 -13634000 4891000 4891000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Homeward Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Litton Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> HomEq Acquisition </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 40%; text-indent: -10pt; padding-left: 10pt"> Balance at December 31, 2011 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 57,430 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 12,810 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 10%; text-align: right"> 70,240 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Homeward Acquisition </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 300,843 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 300,843 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Balance at December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 300,843 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 57,430 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 12,810 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 371,083 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 57430000 12810000 300843000 300843000 300843000 57430000 12810000 <table cellpadding="0" cellspacing="0" style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 8%; text-align: left"> NOTE 3 </td> <td style="text-align: left; width: 92%"> ASSET SALES AND FINANCING </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On March 5, 2012, Ocwen completed its initial sale to Home Loan Servicing Solutions, Ltd. and its wholly owned subsidiary, HLSS Holdings, LLC (collectively referred to as HLSS), of the right to receive the servicing fees, excluding ancillary income, relating to certain mortgage servicing (Rights to MSRs) for approximately $15.2 billion of UPB and related servicing advances that we acquired in connection with the HomEq Acquisition. HLSS also acquired HomEq Servicer Advance Facility Transferor, LLC and HomEq Servicer Advance Receivables Trust 2010-ADV1 (together the Advance SPEs). As a result of the acquisition of the Advance SPEs, HLSS also assumed the related match funded liabilities under the structured servicing advance financing facility that we entered into as part of the HomEq Acquisition (the HomEq Servicing advance facility), with the exception of the Class D Term Note which Ocwen agreed to repay prior to closing. The final purchase price of $138,792 reflects post-closing adjustments that principally resulted from declines in match funded advances between February 28, 2012 and March 5, 2012. See Note&#160;13 for additional information regarding the match funded liabilities assumed by HLSS. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Since the initial sale on March 5, 2012, Ocwen completed five additional sales to HLSS on May 1<sup>st</sup>, August 1<sup>st</sup>, September 13<sup>th</sup>, September 28<sup>th</sup> and December 26<sup>th</sup> of Rights to MSRs for loans with approximately $67.5 billion of UPB together with the related servicing advances. The initial and flow transactions with HLSS are collectively referred to as the HLSS Transactions. In 2012, Ocwen received total proceeds of $3.1 billion from the flow transactions. On December 31, 2012, Ocwen recorded a receivable of $1,410 from HLSS for post-closing adjustments that resulted from an increase in match funded advances and a decline in MSRs through the closing date. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> As part of the HLSS Transactions, Ocwen retains legal ownership of the MSRs and continues to service the related mortgage loans. However, Ocwen will service the loans for a reduced fee because HLSS has assumed the match funded liabilities as well as the obligation for future servicing advances related to the MSRs. Ocwen is obligated to transfer legal ownership of the MSRs to HLSS if and when the required third party consents are obtained. At that time, Ocwen would commence subservicing the MSRs under essentially the same terms and conditions pursuant to a subservicing agreement with HLSS which was executed on February 10, 2012. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table summarizes the sales price of the assets and liabilities acquired by HLSS in connection with the HLSS Transactions: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Initial sale </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Flow sales </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Sale of MSRs accounted for as a financing (1) </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 62,458 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 254,149 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 316,607 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Sale of match funded advances (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,827,227 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,827,227 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Sale of Advance SPEs: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Match funded advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 413,374 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 413,374 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Debt service account </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,786 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,786 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Prepaid lender fees and debt issuance costs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,422 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,422 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Other prepaid expenses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,928 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,928 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Match funded liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (358,335 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (358,335 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Accrued interest payable and other accrued expenses </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (841 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (841 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 30pt"> Net assets of Advance SPEs (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 76,334 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 76,334 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Sales price, as adjusted </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 138,792 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,081,376 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,220,168 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Amount due from HLSS for post-closing adjustments at<br /> December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,410 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,410 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Cash received </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 138,792 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,079,966 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,218,758 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reported in the Consolidated Statements of Cash Flows cash flows with financing activities as Proceeds from sale of mortgage servicing rights accounted for as a financing.</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="text-indent: 0in; width: 4%"> <font style="font-family: Times New Roman, Times, Serif">(2)</font> </td> <td style="text-indent: 0in; width: 96%"> <font style="font-family: Times New Roman, Times, Serif">Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of match funded advances.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">(3)</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Reported in the Consolidated Statements of Cash Flows with investing activities as Proceeds from sale of advance financing subsidiary and special purpose entity.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Because Ocwen has retained legal title to the MSRs, the sales to HLSS of Rights to MSRs have been accounted for as financings. As a result, we have not derecognized the MSRs, and we have established a liability equal to the sales price. If and when the third party consents are obtained, legal title will transfer to HLSS, and we expect to record a sale with the gain deferred and derecognize the MSRs. Until such time, we continue to recognize the full amount of servicing revenue and amortization of the MSRs. The sales proceeds represent the estimated fair value of the MSRs. This excess amount will be realized over time as the MSRs amortize. Our investment in the Advance SPEs was sold at carrying value and accounted for as a sale. The consolidated assets and liabilities of the Advance SPEs were derecognized at the time of the sale. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We have determined that the HLSS Transactions do not constitute the disposal of a business. Therefore, there was no need to consider goodwill in determining the gain on the sale. Because the HLSS Transactions resulted in the sale of a portion of the assets within the Residential Servicing reporting unit which is an indicator that goodwill for the reporting unit should be tested for impairment, we updated our qualitative assessment of whether it was more likely than not that the fair value of the Residential Servicing reporting unit was less than its carrying amount. Our updated assessment indicated that goodwill was not impaired. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Ocwen also entered into an agreement with HLSS Management, LLC (HLSS Management), a wholly owned subsidiary of HLSS, for the provision of certain professional services to us and the provision by us of certain professional services to HLSS Management. See Note&#160;27 for additional information regarding this agreement. </p><br/> 15200000000 138792000 67500000000 -3100000000 1410000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Initial sale </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Flow sales </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Sale of MSRs accounted for as a financing (1) </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 62,458 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 254,149 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 1pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 1pt solid; text-align: right"> 316,607 </td> <td style="width: 1%; padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Sale of match funded advances (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,827,227 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,827,227 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Sale of Advance SPEs: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Match funded advances </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 413,374 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 413,374 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Debt service account </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,786 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,786 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Prepaid lender fees and debt issuance costs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,422 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,422 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Other prepaid expenses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,928 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,928 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Match funded liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (358,335 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (358,335 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Accrued interest payable and other accrued expenses </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (841 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (841 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 30pt"> Net assets of Advance SPEs (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 76,334 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 76,334 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Sales price, as adjusted </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 138,792 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,081,376 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,220,168 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Amount due from HLSS for post-closing adjustments at<br /> December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,410 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,410 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> Cash received </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 138,792 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,079,966 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,218,758 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> -62458000 -254149000 -316607000 -2827227000 -2827227000 413374000 413374000 14786000 14786000 5422000 5422000 1928000 1928000 358335000 358335000 841000 841000 76334000 76334000 138792000 3081376000 3220168000 0 -1410000 -1410000 138792000 3079966000 3218758000 <table cellpadding="0" cellspacing="0" style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 8%; text-align: left"> NOTE 4 </td> <td style="text-align: left; width: 92%"> FAIR VALUE </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Fair value is estimated based on a hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity&#8217;s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs. </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 7%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Level 1:</font> </td> <td style="width: 89%; text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Level 2:</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Level 3:</font> </td> <td style="text-indent: 0in"> <font style="font-family: Times New Roman, Times, Serif">Unobservable inputs for the asset or liability.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Where available, we utilize quoted market prices or observable inputs rather than unobservable inputs to determine fair value. We classify assets in their entirety based on the lowest level of input that is significant to the fair value measurement. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The carrying amounts and the estimated fair values of our financial instruments and our nonfinancial assets measured at fair value are as follows at December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">2012</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">2011</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Level</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Carrying Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Carrying Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Financial assets:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 35%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans held for sale, at fair value (1)</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">426,480</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">426,480</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans held for sale, at lower of cost or fair value (2)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,866</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,866</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">20,633</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">20,633</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Advances and match funded advances(3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,233,707</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,233,707</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,733,502</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,733,502</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Receivables, net (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">167,459</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">167,459</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">83,202</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">83,202</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans, net &#8211; restricted for securitization<br /> investors (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">58,560</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">55,165</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Financial liabilities:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Match funded liabilities (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,532,745</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,533,278</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,558,951</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,569,131</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Lines of credit and other secured<br /> borrowings (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1,096,679</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1,101,504</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">540,369</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">550,860</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Debt securities (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,554</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">92,125</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Secured borrowings &#8211; owed to securitization<br /> investors (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">53,323</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">52,652</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Derivative financial instruments (1):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">IRLCs</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">5,781</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">5,781</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Interest rate swaps</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(10,836</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(10,836</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(14,491</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(14,491</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Forward MBS trades</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,719</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,719</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">U.S. Treasury futures</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,258</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,258</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Interest rate caps</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">168</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">168</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,600</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,600</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Nondeliverable FX forward contracts</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,785</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,785</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Impaired stratum of MSRs (2)(4)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">MSRs, at fair value (1)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(1)</font> </td> <td style="width: 96%; padding: 0; line-height: 12pt; text-indent: 0"> <font style="font-size: 10pt">Measured at fair value on a recurring basis.</font> </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(2)</font> </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> <font style="font-size: 10pt">Measured at fair value on a non-recurring basis.</font> </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(3)</font> </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> <font style="font-size: 10pt">Financial instruments disclosed, but not carried, at fair value.&#160;</font> </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(4)</font> </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> <font style="font-size: 10pt">The high-loan-to-value stratum is measured at fair value on a non-recurring basis and is classified as Level 3 because of the nature of the valuation inputs.&#160; The values are net of a valuation allowance of $2,378 and $2,290 at December 31, 2012 and 2011, respectively.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The following tables present a reconciliation of the changes in fair value of Level 3 assets that we measure at fair value on a recurring basis:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding-top: 0; padding-right: 0; padding-bottom: 0"> <font style="font-size: 10pt">For the year ended December 31, 2012:</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Derivative Financial Instruments</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">MSRS at Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Total</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Purchases (1)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">4,946</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,183</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">90,129</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Issuances</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Sales</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(405</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(405</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">2,451</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">2,451</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">6,992</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">85,183</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">92,175</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">7,331</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">30</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">7,361</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(8,315</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(8,315</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(984</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">30</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(954</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(10,668</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">74,545</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">For the year ended December 31, 2011</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Derivative Financial Instruments</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 82%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Purchases</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,688</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">85</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">3,773</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,881</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">783</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(5,098</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; padding: 0 0 1pt 10pt; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Trading Securities </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; padding: 0 0 0 10pt; text-align: center"> <font style="font-size: 10pt">For the year ended December 31, 2010:</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Derivative Financial Instruments</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Auction Rate Securities</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Subordinates and Residuals</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Total</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt"></font> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">(45</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">247,464</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">59</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">247,478</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Sales</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(146,810</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(146,810</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(738</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(92,745</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(93,483</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(738</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(239,555</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(240,293</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Gain (loss) on trading securities</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(7,909</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(59</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(7,968</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(133</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(133</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,435</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,435</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,568</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(7,909</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(59</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(22,536</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 4%; padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(1)</font> </td> <td style="width: 96%; padding: 0; line-height: 12pt; font-family: Times New Roman, Times, Serif; text-indent: 0"> <font style="font-size: 10pt">Includes $4,946 of derivatives and $82,275 of fair value MSRs acquired in connection with the Homeward Acquisition. Also includes $2,908 of MSRs retained on the sale of loans.</font> </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> <font style="font-size: 10pt">(2)</font> </td> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman, Times, Serif; text-indent: 0"> <font style="font-size: 10pt">Total losses attributable to derivative financial instruments still held at December 31, 2012 and 2011 were $1,173 and $5,114, respectively.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The methodologies that we use and key assumptions that we make to estimate the fair value of instruments and other assets and liabilities measured at fair value on a recurring or non-recurring basis are described below:</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative Financial Instruments</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We use interest rate swaps to hedge against the effects of changes in interest rates on our borrowings under advance funding facilities. These derivatives are not exchange-traded and therefore quoted market prices or other observable inputs are not available. Fair value is based on information provided by third-party pricing sources. Third-party valuations are derived from proprietary models based on inputs that include yield curves and contractual terms such as fixed interest rates and payment dates. Although we have not adjusted the information obtained from the third-party pricing sources, we review this information to ensure that it provides a reasonable basis for estimating fair value. Our review is designed to identify information that appears stale, information that has changed significantly from the prior period and other indicators that the information may not be accurate. For interest rate contracts, significant increases or decreases in the unobservable portion of the yield curves in isolation will result in substantial changes in the fair value measurement.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In addition, we use interest rate caps to minimize future interest rate exposures on variable rate debt issued on servicing advance facilities from increases in one-month LIBOR interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We enter into forward trades to provide an economic hedge against changes in fair value on loans held for sale which we carry at fair value. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. Forward contracts are actively traded in the market, thus they are classified within Level 1 of the valuation hierarchy.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator, or an agreement to extend credit to a mortgage applicant, or an agreement to sell a loan to investors, whereby the interest rate is set prior to funding. IRLCs are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. Fair value amounts of IRLCs are adjusted for expected &#8220;fallout&#8221; (locked pipeline loans not expected to close), using models that consider cumulative historical fallout rates and other factors.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We enter into derivative contracts including interest rate swaps, U.S. Treasury futures and forward contracts to hedge against the effects of changes in the value of the MSRs which we carry at fair value. The fair value of interest rate swaps is based upon projected short-term interest rates and volatility based on published market based sources. Because futures and forward contracts are actively traded in the market, they are classified within Level 1 of the valuation hierarchy.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.25in"> <font style="font: normal 10pt Times New Roman, Times, Serif">See Note&#160;19 for additional information regarding derivative financial instruments.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Loans Held for sale</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Loans held for sale that we measure at fair value on a recurring basis are subject to changes in fair value due to fluctuations in interest rates from the closing date through the date of the sale of the loan into the secondary market. These loans are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conforming mortgage loans are typically sold.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">For all other loans held for sale which we report at the lower of cost or fair value, current market illiquidity has reduced the availability of observable pricing data. When we enter into an agreement to sell a loan to an investor at a set price, the loan is valued at the commitment price. We base the fair value of uncommitted loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. The more significant assumptions used in the December 31, 2012 valuation of performing loans include: historical default rates of 5% to 10%; re-performance rates on defaulted loans of 25%; loss severity on defaulted loans of 20% to 50%; an average resolution timeline of 12 months; an average coupon rate of 7%; and a discount rate of 10%. Significant assumptions used in the December 31, 2012 valuation of nonperforming loans include: the current market value of the underlying collateral based on third party sources such as appraisals or broker price opinions; a resolution timeline of one to 84 months depending on the stage of delinquency, the state in which the property is located and the type of property; estimated foreclosure and disposition costs that are based on historical experience and considering that state in which the property is located and the type of property; and a discount rate of 15%.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Loans &#8211; Restricted for Securitization Investors</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif">We based the fair value of Loans &#8211; restricted for securitization investors on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions included expected prepayment and delinquency rates and cumulative loss curves.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Mortgage Servicing Rights</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> <font style="font: 10pt Times New Roman, Times, Serif"><i>Amortized Cost MSRs</i></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We estimate the fair value of MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience, both of which we derive from our historical experience and available market data. Other assumptions used in our internal valuation are:</font> </p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Calibri, Helvetica, Sans-Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 4%; padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="width: 47%; padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Cost of servicing </td> <td style="width: 4%; padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="width: 41%; padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Interest rate used for computing float earnings </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Discount rate </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Compensating interest expense </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Interest rate used for computing the cost of Servicing advances </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; font-family: Times New Roman, Times, Serif; text-indent: 0"> Collection rate of other ancillary fees </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, prepayment penalties, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We develop the discount rate internally, and we consider external market-based assumptions in determining the interest rate for the cost of financing advances, the interest rate for float earnings and the cost of servicing. The more significant assumptions used in the December 31, 2012 valuation include prepayment speeds ranging from 12.44% to 20.76% (depending on loan type) and delinquency rates ranging from 14.98% to 23.10% (depending on loan type). Other assumptions include an interest rate of 1-month LIBOR plus a range of 4% to 5.75% for computing the cost of financing advances, an interest rate of 1-month LIBOR for computing float earnings and a discount rate of approximately 20%. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans. The risk factors used to assign loans to strata include the credit score (FICO) of the borrower, the loan to value ratio and the default risk. Our strata include:</font> </p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%"> &#160; </td> <td style="width: 4%; padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="width: 47%; padding: 0; line-height: 115%; text-indent: 0"> Subprime </td> <td style="width: 4%; padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="width: 41%; padding: 0; line-height: 115%; text-indent: 0"> Re-performing </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> ALT A </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> Special servicing </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> High-loan-to-value </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> &#8226; </td> <td style="padding: 0; line-height: 115%; text-indent: 0"> Other </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.3pt"> <font style="font: 10pt Times New Roman, Times, Serif">As disclosed above and in Note&#160;1</font> </p><br/><p style="margin: 0"> <font style="font: 10pt Times New Roman, Times, Serif">we established a valuation allowance for impairment on the high-loan-to-value stratum of our MSRs because the estimated fair value was less than the carrying value. For all other strata, the fair value exceeded the carrying value at December 31, 2012.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: normal 10pt Times New Roman, Times, Serif"><i>Fair Value MSRs</i></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">MSRs carried at fair value are classified within Level 3 of the valuation hierarchy due to the use of significant unobservable inputs and the inactive market for such assets. Fair value of these MSRs is sensitive to changes in unobservable inputs, as a change in those inputs to a different amount might result in significantly higher or lower fair value measurement. Significant unobservable inputs include mortgage prepayment speeds, constant default rates, discount rates, servicing advances and delinquency rates.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We estimate the fair value of our MSRs carried at fair value by using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The key assumptions used in the valuation of these MSRs include:</font> </p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in"> &#8226; </td> <td style="padding: 0; font-family: Times New Roman, Times, Serif; text-indent: 0"> Mortgage prepayment speeds; </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="padding: 0; font-family: Times New Roman, Times, Serif; text-indent: 0"> Delinquency rates and </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="padding: 0; font-family: Times New Roman, Times, Serif; text-indent: 0"> Discount rates. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The primary assumptions used in the December 31, 2012 valuation include a 16.83% weighted average constant prepayment rate and a discount rate equal to 1-Month LIBOR plus a range of 9% to 10%.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The cash flow and prepayment assumptions used in our discounted cash flow models are based on empirical data drawn from the historical performance of our MSRs adjusted to reflect current market conditions, which we believe are consistent with assumptions used by market participants valuing similar MSRs. On a quarterly basis, the valuation of our MSRs is reviewed by a third party valuation expert.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Advances</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif">We value advances that we make on loans that we service for others at their carrying amounts because they have no stated maturity, generally are realized within a relatively short period of time and do not bear interest.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Receivables</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization.</font> </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Borrowings</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The carrying value of match funded liabilities and secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other match funded or secured borrowings that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We estimate principal repayments of match funded liabilities during the amortization period based on our historical advance collection rates and taking into consideration any plans to refinance the notes. The more significant of the assumptions used in the December 31, 2012 valuation of the match funded liabilities bearing a fixed interest rate were discount rates of 2.23% &#8211; 5.92% and estimated repayments using an advance reduction curve that is based on historical experience. For the SSTL, we used a discount rate of 6.98% and the repayment schedule specified in the loan agreement.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Prior to the redemption of our debt securities in 2012, we based their fair value on quoted prices in markets with limited trading activity.</font> </p><br/> 2378000 2290000 4946000 82275000 2908 1173000 5114000 Derivative Financial Instruments We use interest rate swaps to hedge against the effects of changes in interest rates on our borrowings under advance funding facilities. These derivatives are not exchange-traded and therefore quoted market prices or other observable inputs are not available. Fair value is based on information provided by third-party pricing sources. Third-party valuations are derived from proprietary models based on inputs that include yield curves and contractual terms such as fixed interest rates and payment dates. Although we have not adjusted the information obtained from the third-party pricing sources, we review this information to ensure that it provides a reasonable basis for estimating fair value. Our review is designed to identify information that appears stale, information that has changed significantly from the prior period and other indicators that the information may not be accurate. For interest rate contracts, significant increases or decreases in the unobservable portion of the yield curves in isolation will result in substantial changes in the fair value measurement. In addition, we use interest rate caps to minimize future interest rate exposures on variable rate debt issued on servicing advance facilities from increases in one-month LIBOR interest rates. The fair value for interest rate caps is based on counterparty market prices and adjusted for counterparty credit risk. We enter into forward trades to provide an economic hedge against changes in fair value on loans held for sale which we carry at fair value. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. Forward contracts are actively traded in the market, thus they are classified within Level 1 of the valuation hierarchy. Interest rate lock commitments (IRLCs) represent an agreement to purchase loans from a third-party originator, or an agreement to extend credit to a mortgage applicant, or an agreement to sell a loan to investors, whereby the interest rate is set prior to funding. IRLCs are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. Fair value amounts of IRLCs are adjusted for expected "fallout" (locked pipeline loans not expected to close), using models that consider cumulative historical fallout rates and other factors. We enter into derivative contracts including interest rate swaps, U.S. Treasury futures and forward contracts to hedge against the effects of changes in the value of the MSRs which we carry at fair value. The fair value of interest rate swaps is based upon projected short-term interest rates and volatility based on published market based sources. Because futures and forward contracts are actively traded in the market, they are classified within Level 1 of the valuation hierarchy. See Note19 for additional information regarding derivative financial instruments. <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Loans Held for sale</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Loans held for sale that we measure at fair value on a recurring basis are subject to changes in fair value due to fluctuations in interest rates from the closing date through the date of the sale of the loan into the secondary market. These loans are classified within Level 2 of the valuation hierarchy as the primary component of the price is obtained from observable values of mortgage forwards for loans of similar terms and characteristics. We have the ability to access this market, and it is the market into which conforming mortgage loans are typically sold.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">For all other loans held for sale which we report at the lower of cost or fair value, current market illiquidity has reduced the availability of observable pricing data. When we enter into an agreement to sell a loan to an investor at a set price, the loan is valued at the commitment price. We base the fair value of uncommitted loans on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. The more significant assumptions used in the December 31, 2012 valuation of performing loans include: historical default rates of 5% to 10%; re-performance rates on defaulted loans of 25%; loss severity on defaulted loans of 20% to 50%; an average resolution timeline of 12 months; an average coupon rate of 7%; and a discount rate of 10%. Significant assumptions used in the December 31, 2012 valuation of nonperforming loans include: the current market value of the underlying collateral based on third party sources such as appraisals or broker price opinions; a resolution timeline of one to 84 months depending on the stage of delinquency, the state in which the property is located and the type of property; estimated foreclosure and disposition costs that are based on historical experience and considering that state in which the property is located and the type of property; and a discount rate of 15%.</font></p> Loans - Restricted for Securitization Investors We based the fair value of Loans - restricted for securitization investors on the expected future cash flows discounted at a rate commensurate with the risk of the estimated cash flows. Significant assumptions included expected prepayment and delinquency rates and cumulative loss curves. Mortgage Servicing Rights Amortized Cost MSRs We estimate the fair value of MSRs by calculating the present value of expected future cash flows utilizing assumptions that we believe are used by market participants. The most significant assumptions used in our internal valuation are the speed at which mortgages prepay and delinquency experience, both of which we derive from our historical experience and available market data. Other assumptions used in our internal valuation are: Cost of servicing Interest rate used for computing float earnings Discount rate Compensating interest expense Interest rate used for computing the cost of Servicing advances Collection rate of other ancillary fees The significant components of the estimated future cash inflows for MSRs include servicing fees, late fees, prepayment penalties, float earnings and other ancillary fees. Significant cash outflows include the cost of servicing, the cost of financing servicing advances and compensating interest payments. We derive prepayment speeds and delinquency assumptions from historical experience adjusted for prevailing market conditions. We develop the discount rate internally, and we consider external market-based assumptions in determining the interest rate for the cost of financing advances, the interest rate for float earnings and the cost of servicing. The more significant assumptions used in the December 31, 2012 valuation include prepayment speeds ranging from 12.44% to 20.76% (depending on loan type) and delinquency rates ranging from 14.98% to 23.10% (depending on loan type). Other assumptions include an interest rate of 1-month LIBOR plus a range of 4% to 5.75% for computing the cost of financing advances, an interest rate of 1-month LIBOR for computing float earnings and a discount rate of approximately 20%. We perform an impairment analysis based on the difference between the carrying amount and fair value after grouping our loans into the applicable strata based on one or more of the predominant risk characteristics of the underlying loans. The risk factors used to assign loans to strata include the credit score (FICO) of the borrower, the loan to value ratio and the default risk. Our strata include: Subprime Re-performing ALT A Special servicing High-loan-to-value Other As disclosed above and in Note1 we established a valuation allowance for impairment on the high-loan-to-value stratum of our MSRs because the estimated fair value was less than the carrying value. For all other strata, the fair value exceeded the carrying value at December 31, 2012. Fair Value MSRs MSRs carried at fair value are classified within Level 3 of the valuation hierarchy due to the use of significant unobservable inputs and the inactive market for such assets. Fair value of these MSRs is sensitive to changes in unobservable inputs, as a change in those inputs to a different amount might result in significantly higher or lower fair value measurement. Significant unobservable inputs include mortgage prepayment speeds, constant default rates, discount rates, servicing advances and delinquency rates. We estimate the fair value of our MSRs carried at fair value by using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The key assumptions used in the valuation of these MSRs include: Mortgage prepayment speeds; Delinquency rates and Discount rates. The primary assumptions used in the December 31, 2012 valuation include a 16.83% weighted average constant prepayment rate and a discount rate equal to 1-Month LIBOR plus a range of 9% to 10%. The cash flow and prepayment assumptions used in our discounted cash flow models are based on empirical data drawn from the historical performance of our MSRs adjusted to reflect current market conditions, which we believe are consistent with assumptions used by market participants valuing similar MSRs. On a quarterly basis, the valuation of our MSRs is reviewed by a third party valuation expert. 0.1244 0.2076 0.1498 0.2310 0.20 0.1683 Advances We value advances that we make on loans that we service for others at their carrying amounts because they have no stated maturity, generally are realized within a relatively short period of time and do not bear interest. Receivables The carrying value of receivables generally approximates fair value because of the relatively short period of time between their origination and realization. Borrowings The carrying value of match funded liabilities and secured borrowings that bear interest at a rate that is adjusted regularly based on a market index approximates fair value. For other match funded or secured borrowings that bear interest at a fixed rate, we determine fair value by discounting the future principal and interest repayments at a market rate commensurate with the risk of the estimated cash flows. We estimate principal repayments of match funded liabilities during the amortization period based on our historical advance collection rates and taking into consideration any plans to refinance the notes. The more significant of the assumptions used in the December 31, 2012 valuation of the match funded liabilities bearing a fixed interest rate were discount rates of 2.23% - 5.92% and estimated repayments using an advance reduction curve that is based on historical experience. For the SSTL, we used a discount rate of 6.98% and the repayment schedule specified in the loan agreement. Prior to the redemption of our debt securities in 2012, we based their fair value on quoted prices in markets with limited trading activity. 0.0223 0.0592 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">2012</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">2011</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Level</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Carrying Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Carrying Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Financial assets:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 35%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans held for sale, at fair value (1)</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">426,480</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">426,480</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans held for sale, at lower of cost or fair value (2)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,866</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,866</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">20,633</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">20,633</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Advances and match funded advances(3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,233,707</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,233,707</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,733,502</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,733,502</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Receivables, net (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">167,459</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">167,459</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">83,202</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">83,202</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Loans, net &#8211; restricted for securitization<br /> investors (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">58,560</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">55,165</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Financial liabilities:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Match funded liabilities (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,532,745</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,533,278</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,558,951</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2,569,131</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Lines of credit and other secured<br /> borrowings (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1,096,679</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1,101,504</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">540,369</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">550,860</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Debt securities (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">82,554</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">92,125</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Secured borrowings &#8211; owed to securitization<br /> investors (3)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">53,323</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">52,652</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Derivative financial instruments (1):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">IRLCs</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">2</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">5,781</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">5,781</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Interest rate swaps</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(10,836</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(10,836</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(14,491</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(14,491</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Forward MBS trades</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,719</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,719</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">U.S. Treasury futures</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">1</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,258</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(1,258</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Interest rate caps</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">168</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">168</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,600</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,600</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Nondeliverable FX forward contracts</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,785</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,785</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Impaired stratum of MSRs (2)(4)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">MSRs, at fair value (1)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">214</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> </table> 426480000 426480000 82866000 82866000 20633000 20633000 3233707000 3233707000 3733502000 3733502000 167459000 167459000 83202000 83202000 58560000 55165000 2532745000 2533278000 2558951000 2569131000 1096679000 1101504000 540369000 550860000 82554000 92125000 53323000 52652000 5781000 5781000 -10836000 -10836000 -14491000 -14491000 -1719000 -1719000 -1258000 -1258000 168000 168000 3600000 3600000 -5785000 -5785000 214000 214000 85213000 85213000 214000 214000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding-top: 0; padding-right: 0; padding-bottom: 0"> <font style="font-size: 10pt">For the year ended December 31, 2012:</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Derivative Financial Instruments</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">MSRS at Fair Value</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Total</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Purchases (1)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">4,946</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">85,183</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">90,129</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Issuances</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Sales</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(405</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(405</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">2,451</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">2,451</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">6,992</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">85,183</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">92,175</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">7,331</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">30</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">7,361</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(8,315</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(8,315</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(984</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">30</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(954</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(10,668</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">85,213</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">74,545</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> </table> -16676000 -16676000 -4946000 -85183000 -90129000 0 0 0 -405000 -405000 2451000 2451000 6992000 85183000 92175000 7331000 30000 7361000 -8315000 -8315000 -984000 30000 -954000 -10668000 85213000 74545000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">For the year ended December 31, 2011</font> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font-size: 10pt">Derivative Financial Instruments</font> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 82%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 3%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 13%; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Purchases</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">3,688</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">85</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">3,773</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(5,881</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">783</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(5,098</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(16,676</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> </table> -15351000 -3688000 -85000 3773000 -5881000 783000 -5098000 -16676000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; padding: 0 0 1pt 10pt; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Trading Securities </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; padding: 0 0 0 10pt; text-align: center"> <font style="font-size: 10pt">For the year ended December 31, 2010:</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Derivative Financial Instruments</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Auction Rate Securities</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Subordinates and Residuals</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> <font style="font-size: 10pt">&#160;</font> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <font style="font: 10pt Times New Roman, Times, Serif">Total</font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> <font style="font-size: 10pt"></font> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Beginning balance</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">(45</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">247,464</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">59</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 2%"> <font style="font-size: 10pt">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font-size: 10pt">247,478</font> </td> <td style="width: 1%; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Purchases, issuances, sales and settlements:</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Sales</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(146,810</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(146,810</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Settlements</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(738</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(92,745</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(93,483</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(738</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(239,555</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(240,293</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> <font style="font-size: 10pt">Total realized and unrealized gains and (losses) (2):</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Gain (loss) on trading securities</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(7,909</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(59</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(7,968</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> <font style="font-size: 10pt">Included in Other, net</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(133</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">(133</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> <font style="font-size: 10pt">Included in Other comprehensive income (loss)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,435</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,435</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(14,568</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(7,909</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(59</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">(22,536</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: right"> <font style="font-size: 10pt">&#160;</font> </td> <td style="text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Transfers in and / or out of Level 3</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> <font style="font-size: 10pt">Ending balance </font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">&#8212;</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">&#160;</font> </td> <td style="padding-bottom: 2.5pt"> <font style="font-size: 10pt">&#160;</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> <font style="font-size: 10pt">$</font> </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> <font style="font-size: 10pt">(15,351</font> </td> <td style="padding-bottom: 2.5pt; text-align: left"> <font style="font-size: 10pt">)</font> </td> </tr> </table> -45000 247464000 59000 247478000 -146810000 -146810000 -738000 -92745000 -93483000 -738000 -239555000 -240293000 -7909000 -59000 -7968000 -133000 -133000 -14435000 -14435000 -14568000 -7909000 -59000 -22536000 -15351000 -15351000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE&#160;5</b></font> </td> <td style="width: 91%"> <font style="font: 10pt Times New Roman, Times, Serif"><b>LOANS HELD FOR SALE, AT FAIR VALUE</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Loans held for sale, at fair value represent mortgage loans originated or purchased and held until sold to secondary market investors, such as GSEs or other third party investors. We acquired these loans as part of the Homeward Acquisition at an initial fair value of $558,721. The change in balance from the acquisition date to $426,480 at December 31, 2012 is primarily due to sales.</font> See Note 2 for additional information regarding the purchase price allocation. </p><br/> 558721 426480 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: middle; text-align: left"> <td style="width: 9%; padding: 0; text-indent: 0"> <font style="font-size: 10pt"><b>NOTE&#160;6</b></font> </td> <td style="width: 91%; padding: 0; text-indent: 0"> <font style="font: 10pt Times New Roman, Times, Serif"><b>ADVANCES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Advances, representing payments made on behalf of borrowers or on foreclosed properties, as more fully described in Note&#160;1&#8212;Mortgage Servicing Fees and Advances, consisted of the following at December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Servicing: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Principal and interest </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 83,617 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 30,462 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Taxes and insurance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,447 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,387 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Foreclosures, bankruptcy and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 41,296 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 35,832 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176,360 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99,681 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Corporate Items and Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,103 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,910 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 184,463 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 103,591 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-indent: 0.25in"> <font style="font: normal 10pt Times New Roman, Times, Serif; text-transform: none">The balance outstanding at December 31, 2012 includes $56,903 of advances acquired in the Homeward Acquisition. See Note&#160;2 for additional information.</font> </p><br/> 56903000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Servicing: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Principal and interest </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 83,617 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 30,462 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Taxes and insurance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,447 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,387 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Foreclosures, bankruptcy and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 41,296 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 35,832 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 176,360 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99,681 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Corporate Items and Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,103 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,910 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 184,463 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 103,591 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 83617000 30462000 51447000 33387000 41296000 35832000 176360000 99681000 8103000 3910000 184463000 103591000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE 7</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>MATCH FUNDED ADVANCES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Match funded advances on residential loans we service for others, as more fully described in Note&#160;1&#8212; Principles of Consolidation&#8212;Financings of Advances on Loans Serviced for Others, are comprised of the following at December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Principal and interest </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,577,808 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,679,536 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Taxes and insurance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,148,486 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,452,707 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Foreclosures, bankruptcy, real estate and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 322,950 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 497,668 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,049,244 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,629,911 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-transform: uppercase; text-indent: 0.25in"> <font style="font: normal 10pt Times New Roman, Times, Serif; text-transform: none">The balance outstanding at December 31, 2012 includes $2.2 billion of advances acquired in the Homeward Acquisition. See Note&#160;2 for additional information.</font> </p><br/> 2200000000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 20pt"> Principal and interest </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,577,808 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 1,679,536 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 20pt"> Taxes and insurance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,148,486 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,452,707 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 20pt"> Foreclosures, bankruptcy, real estate and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 322,950 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 497,668 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,049,244 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,629,911 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 1577808000 1679536000 1148486000 1452707000 322950000 497668000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE&#160;8</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>MORTGAGE SERVICING</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif">The following table presents the components of servicing and subservicing fees for the years ended December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loan servicing and subservicing fees </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 581,067 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 341,438 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 226,284 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Home Affordable Modification Program (HAMP) fees </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 76,764 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,025 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,363 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Late charges </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,281 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 38,557 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,760 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loan collection fees </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,960 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,223 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,958 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Float earnings </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,749 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,105 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,843 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,604 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,527 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,491 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 804,425 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 458,875 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 321,699 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><font style="font: 10pt Times New Roman, Times, Serif"><b>Mortgage Servicing Rights &#8211; Amortization Method</b></font><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif"><i>Servicing Assets.</i> The following table summarizes the activity in the carrying value of residential servicing assets for the years ended December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding-top: 0; padding-right: 0; padding-bottom: 0"> For the year ended December 31, </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Beginning balance </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 293,152 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 193,985 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 117,802 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Purchases: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> HomEq Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 84,324 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Litton Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Homeward Acquisition (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 275,844 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> MSR asset acquisitions (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 181,979 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,425 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Servicing transfers and adjustments </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (29 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Decrease in impairment valuation allowance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (88 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 574 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 90 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Amortization (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (74,171 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (45,721 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,627 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Ending balance </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 676,712 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 293,152 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 193,985 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Fair value at end of year </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 743,830 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 340,015 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 237,407 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (1) </td> <td colspan="2" style="padding: 0; line-height: 12pt; text-indent: 0"> See Note&#160;2 for additional information regarding the acquisition of MSRs from Homeward. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (2) </td> <td colspan="2" style="padding: 0; line-height: 12pt; text-indent: 0"> MSR asset acquisitions for 2012 include: </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; font-family: Symbol; text-indent: 0; width: 4%"> &#160; </td> <td style="text-align: center"> &#8226; </td> <td style="padding: 0; text-indent: 0; width: 90%"> On April 2, 2012, we completed an acquisition from Saxon Mortgage Services, Inc. (Saxon) of an MSR portfolio of approximately $22.2 billion in UPB of residential mortgage loans, approximately $9.9 billion of which Ocwen had previously subserviced, and approximately $1.2 billion of associated servicing advances (the 2012 Saxon MSR Transaction).&#160; To finance the 2012 Saxon MSR Transaction, we utilized a combination of available cash and two new two-year servicing advance facilities.&#160; On April 2, 2012, we also completed an acquisition of MSRs from JPMorgan Chase Bank, N.A. (JPMCB) which includes servicing rights for non-prime loans with a UPB of approximately $8.1 billion (the JPMCB MSR Transaction) and $557,184 of servicing advances.&#160; Ocwen financed the purchase price through available cash and an existing servicing advance facility.&#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; font-family: Symbol; text-indent: 0"> &#160; </td> <td style="text-align: center"> &#8226; </td> <td style="padding: 0; text-indent: 0"> On May 31, 2012, we completed the acquisition of MSRs from Aurora Bank FSB (Aurora) on a portfolio of small-balance commercial mortgage loans with a total UPB of $1.8 billion and $52,911 of servicing advances. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; font-family: Symbol; text-indent: 0"> &#160; </td> <td style="text-align: center"> &#8226; </td> <td style="padding: 0; text-indent: 0"> On June 11, 2012, we purchased residential MSRs from Bank of America, N.A. (BANA) with respect to mortgage loans with a UPB of approximately $10.1 billion owned by Freddie Mac.&#160; We entered into a new servicing advance facility to finance a portion of the related servicing advances acquired in the transaction.&#160; At December 31, 2012, the acquired MSRs, which had a carrying value of $58,472, were pledged as collateral for the promissory note used to finance the purchase. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; font-family: Symbol; text-indent: 0"> &#160; </td> <td style="text-align: center"> &#8226; </td> <td style="padding: 0; text-indent: 0"> On July 2 and 16, 2012, we closed on the acquisitions of MSR portfolios totaling approximately $316 million in UPB of residential mortgage loans owned by Fannie Mae and Freddie Mac. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; font-family: Symbol; text-indent: 0"> &#160; </td> <td style="text-align: center"> &#8226; </td> <td style="padding: 0; text-indent: 0"> On September 4, 2012, we purchased an additional MSR portfolio of approximately $2.2 billion in UPB of residential mortgage loans owned by Fannie Mae.&#160; We boarded these loans on October 1, 2012. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (3) </td> <td colspan="2" style="padding: 0; line-height: 12pt; text-indent: 0"> In the Consolidated Statement of Operations, Amortization of mortgage servicing rights is reported net of the amortization of servicing liabilities and includes the amount of charges we recognized to increase servicing liability obligations. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">See Note&#160;13 and Note&#160;14 for additional information regarding the advance facilities and promissory note used to finance the advances and MSRs acquired in the transactions described above. As disclosed in Note&#160;3, we sold certain Rights to MSRs during 2012 as part of the HLSS Transactions. The carrying value of the related MSRs which have not been derecognized at December 31, 2012 was $273,028.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 18.7pt"> <font style="font: 10pt Times New Roman, Times, Serif">The estimated amortization expense for MSRs, calculated based on assumptions used at December 31, 2012, is projected as follows over the next five years:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-align: left; padding-left: 10pt"> 2013 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 122,365 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"> 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 100,316 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt"> 2015 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 82,240 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"> 2016 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 67,421 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt"> 2017 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,273 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif"><i>Valuation Allowance for Impairment.</i> During 2008, we established a valuation allowance for impairment of $3,624 on the high-loan-to-value stratum of our mortgage servicing rights as the estimated fair value was less than the carrying value. Changes in the valuation allowance for impairment are reflected in Servicing and origination expenses in the Consolidated Statement of Operations. Net of the valuation allowance of $2,378 and $2,290, the carrying value of this stratum was $0 and $214 at December 31, 2012 and 2011, respectively. For all other strata, the fair value exceeded the carrying value.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif"><i>Servicing Liabilities.</i> Servicing liabilities are included in Other liabilities. See Note&#160;16 for additional information.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Mortgage Servicing Rights&#8212;Fair Value Measurement Method</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">This portfolio comprises servicing rights for prime mortgage loans that were acquired by Homeward through asset or flow purchases or retained on loans originated and subsequently sold. We acquired these loans as part of the Homeward Acquisition at an initial fair value of $82,275. See Note&#160;4</font> </p><br/><p style="margin: 0"> <font style="font: 10pt Times New Roman, Times, Serif">for a reconciliation of changes in the fair value from the acquisition date to $85,213 at December 31, 2012.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Because the mortgages underlying these MSRs permit the borrowers to prepay the loans, the value of the MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). The following table summarizes the estimated change in the fair value of the MSRs and related derivatives as of December 31, 2012 given hypothetical instantaneous parallel shifts in the yield curve:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center"> Adverse change in fair value </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 10% </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 20% </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; width: 60%"> &#160; </td> <td style="text-align: center; width: 3%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 15%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 3%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 15%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Weighted average prepayment speeds </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,374 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (13,681 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Discount rate (Option-adjusted spread) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (3,533 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,448 </td> <td style="text-align: left"> ) </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The sensitivity analysis measures the potential impact on fair values based on hypothetical changes (increases and decreases) in interest rates.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Portfolio of Assets Serviced</b></font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The following table presents the composition of our servicing and subservicing portfolios by type of property serviced as measured by UPB. The servicing portfolio represents loans for which we own the MSRs while subservicing represents all other loans.</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Residential </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Commercial </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2010</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing</font> </td> <td style="width: 3%; text-align: left"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 51,252,380 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 51,252,380 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 22,634,011 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 434,305 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,068,316 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 73,886,391 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 434,305 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 74,320,696 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2011</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,675,160 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,675,160 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,524,062 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 290,863 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,814,925 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 102,199,222 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 290,863 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 102,490,085 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2012</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing (1)</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 175,762,161 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 175,762,161 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 27,903,555 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 401,031 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 28,304,586 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 203,665,716 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 401,031 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 204,066,747 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; font: 10pt/115% Times New Roman"> (1) </td> <td style="width: 96%; font: 10pt/115% Times New Roman, Times, Serif"> Includes UPB of $79,360,874 for which the Rights to MSRs have been sold to HLSS. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Residential assets serviced consist principally of mortgage loans, primarily subprime, but also include foreclosed real estate. Residential assets serviced also include small-balance commercial assets with a UPB of $2.1 billion and $586,080 at December 31, 2012 and 2011, respectively that are managed using the REALServicing&#8482; application. Commercial assets subserviced consist of large-balance foreclosed real estate. Assets serviced for others are not included on our Consolidated Balance Sheet.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">At December 31, 2012, the geographic distribution of the UPB and count of residential loans and real estate we serviced was as follows:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amount </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Count </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding: 0 0 0 10pt"> California </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 45,851,476 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 15%; text-align: right"> 160,501 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Florida </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,731,227 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 136,224 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> New York </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,276,718 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 67,725 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Texas </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,151,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99,935 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Illinois </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,174,504 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 53,203 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 100,480,760 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 702,368 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 203,665,716 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,219,956 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Float balances amounted to approximately $1.3 billion and $555,500 at December 31, 2012 and 2011, respectively.</font> </p><br/> 22200000000 9900000000 1200000000 8100000000 557184000 1800000000 52911000 10100000000 58472000 316000000 2200000000 273028000 3624000 2378000 2290000 0 214000 82275000 85213 79360874000 2100000000 586080000 1300000000 555500000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loan servicing and subservicing fees </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 581,067 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 341,438 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 226,284 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Home Affordable Modification Program (HAMP) fees </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 76,764 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,025 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,363 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Late charges </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,281 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 38,557 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,760 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loan collection fees </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,960 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,223 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,958 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Float earnings </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,749 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,105 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,843 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,604 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,527 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,491 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 804,425 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 458,875 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 321,699 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 581067000 341438000 226284000 76764000 42025000 32363000 69281000 38557000 32760000 15960000 11223000 8958000 3749000 2105000 2843000 57604000 23527000 18491000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; padding-top: 0; padding-right: 0; padding-bottom: 0"> For the year ended December 31, </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Beginning balance </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 293,152 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 193,985 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 117,802 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Purchases: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> HomEq Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 84,324 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Litton Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 144,314 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Homeward Acquisition (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 275,844 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> MSR asset acquisitions (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 181,979 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,425 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Servicing transfers and adjustments </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (29 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Decrease in impairment valuation allowance </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (88 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 574 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 90 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Amortization (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (74,171 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (45,721 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (31,627 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Ending balance </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 676,712 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 293,152 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 193,985 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Fair value at end of year </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 743,830 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 340,015 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 237,407 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 193985000 117802000 84324000 144314000 275844000 181979000 23425000 -4000 -29000 -88000 574000 90000 -74171000 -45721000 -31627000 743830000 340015000 237407000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-align: left; padding-left: 10pt"> 2013 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 122,365 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"> 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 100,316 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt"> 2015 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 82,240 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt"> 2016 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 67,421 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt"> 2017 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,273 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 122365000 100316000 82240000 67421000 55273000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center"> Adverse change in fair value </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: center; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 10% </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="border-bottom: Black 1pt solid; text-align: center"> 20% </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; width: 60%"> &#160; </td> <td style="text-align: center; width: 3%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 15%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 3%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> <td style="text-align: center; width: 15%"> &#160; </td> <td style="text-align: center; width: 1%"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Weighted average prepayment speeds </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,374 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (13,681 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Discount rate (Option-adjusted spread) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (3,533 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (6,448 </td> <td style="text-align: left"> ) </td> </tr> </table> 10% 20% -6374000 -13681000 -3533000 -6448000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Residential </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Commercial </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2010</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing</font> </td> <td style="width: 3%; text-align: left"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 51,252,380 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 51,252,380 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 22,634,011 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 434,305 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,068,316 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 73,886,391 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 434,305 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 74,320,696 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2011</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,675,160 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,675,160 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,524,062 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 290,863 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 23,814,925 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 102,199,222 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 290,863 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 102,490,085 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">UPB at December 31, 2012</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Servicing (1)</font> </td> <td style="text-align: left"> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 175,762,161 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 175,762,161 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> <font style="font: 10pt Times New Roman, Times, Serif">Subservicing</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 27,903,555 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 401,031 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 28,304,586 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 203,665,716 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 401,031 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 204,066,747 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 51252380000 51252380000 22634011000 434305000 23068316000 73886391000 434305000 74320696000 78675160000 78675160000 23524062000 290863000 23814925000 102199222000 290863000 102490085000 175762161000 175762161000 27903555000 401031000 28304586000 203665716000 401031000 204066747000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amount </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Count </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding: 0 0 0 10pt"> California </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 45,851,476 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 15%; text-align: right"> 160,501 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Florida </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,731,227 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 136,224 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> New York </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,276,718 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 67,725 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Texas </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,151,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 99,935 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Illinois </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,174,504 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 53,203 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 100,480,760 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 702,368 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 203,665,716 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,219,956 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 45851476000 160501 22731227000 136224 17276718000 67725 9151031000 99935 8174504000 53203 100480760000 702368 203665716000 1219956 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE&#160;9</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>RECEIVABLES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Receivables consisted of the following at the dates indicated:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Receivables </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Allowance for Losses </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Net </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"> December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-indent: -10pt; padding-left: 10pt"> Servicing (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 84,870 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> (1,647 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 83,223 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Income taxes receivable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,292 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,292 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Affordable housing (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,052 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (713 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 339 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Due from related parties (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12,361 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12,361 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 17,525 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,281 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 16,244 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 171,100 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (3,641 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 167,459 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; border-bottom: Black 1pt solid; text-indent: -10pt; padding-left: 10pt"> December 31, 2011 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Servicing (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 53,061 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,648 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 51,413 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Income taxes receivable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 21,518 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 21,518 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Affordable housing (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,568 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (5,019 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 549 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Due from related parties (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,309 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,309 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Derivatives, at fair value (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,600 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,600 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,134 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,262 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,872 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 90,190 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,929 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 82,261 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; line-height: 12pt; font-family: Times New Roman"> (1) </td> <td style="width: 96%; line-height: 12pt"> The balances at December 31, 2012 and 2011 arise from our Servicing business and primarily include reimbursable expenditures due from investors and amounts to be recovered from the custodial accounts of the trustees. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (2) </td> <td style="line-height: 12pt"> The balances at December 31, 2012 and 2011 primarily represent annual payments to be received through June 2014 for proceeds from sales of investments in affordable housing properties.&#160; None of these receivables is delinquent. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (3) </td> <td style="line-height: 12pt"> See Note&#160;27 for additional information regarding transactions with Altisource and HLSS. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (4) </td> <td style="line-height: 12pt"> The balance represents the fair value of an interest rate cap that we sold in 2012. See Note&#160;19 for additional information regarding our derivative financial instruments. </td> </tr> </table><br/><p style="margin: 0; text-indent: 0.25in"> The balance of Receivables at December 31, 2012 includes $46,546 related to the Homeward Acquisition. See Note 2. </p><br/><p style="margin: 0; text-indent: 0.25in"> Receivable balances are evaluated individually. The change in the allowance for credit losses for 2012 and the balance of the related receivables at those dates were as follows (the disclosure requirements for the allowance for credit losses do not apply to mortgage banking activities, including the long-term servicing of loans, such as the activities of our Servicing segment): </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Affordable Housing </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Other </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Allowance for credit losses balance at December 31, 2011 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 5,019 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,262 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 6,281 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Charge offs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,306 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (387 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,693 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Provision </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 456 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 456 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (50 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (50 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Allowance for credit losses balance at December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 713 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,281 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,994 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 1pt 10pt; text-indent: -10pt"> Receivables balance at December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,052 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 17,525 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,577 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table><br/> 46546 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Receivables </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Allowance for Losses </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Net </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: left; border-bottom: Black 1pt solid"> December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="text-align: center"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-indent: -10pt; padding-left: 10pt"> Servicing (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 84,870 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> (1,647 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 83,223 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Income taxes receivable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,292 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 55,292 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Affordable housing (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,052 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (713 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 339 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Due from related parties (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12,361 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12,361 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 17,525 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,281 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 16,244 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 171,100 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (3,641 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 167,459 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; border-bottom: Black 1pt solid; text-indent: -10pt; padding-left: 10pt"> December 31, 2011 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> Servicing (1) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 53,061 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,648 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 51,413 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Income taxes receivable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 21,518 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 21,518 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Affordable housing (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,568 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (5,019 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 549 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Due from related parties (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,309 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,309 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Derivatives, at fair value (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,600 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,600 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,134 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,262 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,872 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 90,190 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,929 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 82,261 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 84870000 -1647000 83223000 55292000 55292000 1052000 -713000 339000 12361000 12361000 17525000 -1281000 16244000 171100000 -3641000 167459000 53061000 -1648000 51413000 21518000 21518000 5568000 -5019000 549000 2309000 2309000 3600000 3600000 4134000 -1262000 2872000 90190000 -7929000 82261000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Affordable Housing </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Other </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Total </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Allowance for credit losses balance at December 31, 2011 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 5,019 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,262 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 6,281 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Charge offs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,306 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (387 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,693 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Provision </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 456 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 456 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (50 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (50 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Allowance for credit losses balance at December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 713 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,281 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,994 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 1pt 10pt; text-indent: -10pt"> Receivables balance at December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,052 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 17,525 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,577 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table> 5019000 6281000 -4306000 -4693000 456000 -50000 713000 1994000 1052000 18577000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 8%; padding: 0; text-indent: 0"> <p style="font: bold 10pt/normal Times New Roman; margin-top: 0; margin-right: 0; margin-bottom: 0"> Note&#160;10 </p> </td> <td style="width: 92%; padding: 0; text-indent: 0"> <font style="font-size: 10pt"><b>PREMISES AND EQUIPMENT</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman; margin-top: 0; margin-right: 0; margin-bottom: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Our premises and equipment are summarized as follows at December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Computer hardware and software </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 36,905 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 15,208 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Leasehold improvements </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,960 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,894 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Furniture and fixtures </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,369 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,559 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Office equipment and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 9,108 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,932 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 71,342 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 36,593 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Less accumulated depreciation and amortization </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (33,806 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (29,243 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 37,536 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,350 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In 2012, we acquired premises and equipment with an estimated fair value of $16,803 as part of the Homeward Acquisition, consisting primarily of computer hardware and software. <b></b></font> See Note 2. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 18.7pt"> <font style="font: 10pt Times New Roman, Times, Serif">Depreciation and other amortization expense amounted to $5,720, $4,160 and $7,512 for 2012, 2011 and 2010, respectively. Depreciation for 2011 includes a charge of $1,967 to write-down certain furniture and fixtures acquired from Litton that we ceased to use during the fourth quarter. Depreciation expense for 2010 includes a charge of $5,840 to write off leasehold improvements related to HomEq facilities that we vacated following termination of the former HomEq employees.</font> </p><br/> 1967000 5840000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Computer hardware and software </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 36,905 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 15,208 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Leasehold improvements </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,960 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,894 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Furniture and fixtures </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,369 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,559 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Office equipment and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 9,108 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,932 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 71,342 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 36,593 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Less accumulated depreciation and amortization </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (33,806 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (29,243 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 37,536 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,350 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 36905000 15208000 14960000 6894000 10369000 8559000 9108000 5932000 71342000 36593000 33806000 29243000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE&#160;11</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>DEBT SERVICE ACCOUNTS</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Under our advance funding facilities, we are contractually required to remit collections on pledged advances to the trustee within two days of receipt. The collected funds are not applied to reduce the related match funded debt until the payment dates specified in the indenture. The balances also include amounts that have been set aside from the proceeds of our match funded advance facilities to provide for possible shortfalls in the funds available to pay certain expenses and interest. These funds are held in interest earning accounts in the name of the SPE created in connection with the match funded financing facility. The balances at December 31, 2012 and 2011 were $88,748 and $115,867, respectively.</font> </p><br/> 88748000 115867000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE&#160;12</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>OTHER ASSETS</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Other assets consisted of the following at December 31:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Loans held for sale, at lower of cost or fair value (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 82,866 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 20,633 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Asset purchase price deposit (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 57,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Interest earning collateral deposits (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,710 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,191 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Investment in unconsolidated entities (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 25,187 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,507 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Prepaid income taxes (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,112 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Prepaid lender fees and debt issuance costs, net (6) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,389 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,113 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Derivatives, at fair value (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,795 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Real estate, net </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,205 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,368 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Loans &#8211; restricted for securitization investors (8) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 58,560 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Prepaid expenses and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 21,414 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 13,078 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 272,678 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 173,450 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; line-height: 12pt; font-family: Times New Roman"> (1) </td> <td style="width: 96%; line-height: 12pt"> These loans primarily represent non-performing subprime single-family residential loans that we do not intend to hold to maturity.&#160; The balances at December 31, 2012 and 2011 are net of valuation allowances of $14,659 and $14,257, respectively.&#160; In December 2012, we acquired non-performing mortgage loans with an aggregate UPB of $124,341 for cash consideration of $65,356.&#160; We sold these loans to Altisource Residential, LP in February 2013 for an insignificant gain. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (2) </td> <td style="line-height: 12pt"> In connection with the entry into an agreement on November 2, 2012 to acquire MSRs and related servicing advances from Residential Capital, LLC , OLS made an earnest money cash deposit of $57,000. This deposit was subsequently applied towards the purchase price upon closing of the transaction on February 15, 2013. See Note 31 for additional information regarding this transaction. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (3) </td> <td style="line-height: 12pt"> These balances include $25,829 and $19,623 of cash collateral held by the counterparties to certain of our derivative agreements at December 31, 2012 and 2011, respectively. </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman; width: 4%"> (4) </td> <td style="line-height: 12pt; width: 96%"> The balance at December 31, 2012 includes an investment of $5,544 in Powerlink that we acquired in the Homeward Acquisition. See Note&#160;2. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (5) </td> <td style="line-height: 12pt"> See Note&#160;22 for additional information. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (6) </td> <td style="line-height: 12pt"> These balances relate to match funded liabilities and other secured borrowings of the Servicing segment. &#160;We amortize these costs to the earlier of the scheduled amortization date, contractual maturity date or prepayment date of the debt. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (7) </td> <td style="line-height: 12pt"> See Note&#160;19 for additional information regarding derivatives. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (8) </td> <td style="line-height: 12pt"> Loans &#8211; restricted for securitization investors were held by four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note&#160;1&#8212;Securitizations of Residential Mortgage Loans. We reported loans held by the consolidated securitization trusts at cost, less an allowance for loan losses of $2,702 at December 31, 2011. </td> </tr> </table><br/> 14659 14257 124341 65356 57000 25829 19623 5544 2702 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Loans held for sale, at lower of cost or fair value (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 82,866 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 20,633 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Asset purchase price deposit (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 57,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Interest earning collateral deposits (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,710 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,191 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Investment in unconsolidated entities (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 25,187 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,507 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Prepaid income taxes (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23,112 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Prepaid lender fees and debt issuance costs, net (6) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 14,389 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,113 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Derivatives, at fair value (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,795 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Real estate, net </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,205 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,368 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding-left: 10pt"> Loans &#8211; restricted for securitization investors (8) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 58,560 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Prepaid expenses and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 21,414 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 13,078 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 272,678 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 173,450 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 82866000 20633000 57000000 31710000 27191000 25187000 23507000 23112000 14389000 27113000 10795000 6205000 3368000 58560000 21414000 13078000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE&#160;13</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>MATCH FUNDED LIABILITIES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman; margin-top: 0; margin-right: 0; margin-bottom: 0"> <font style="font: 10pt Times New Roman, Times, Serif">Match funded liabilities, as more fully described in Note&#160;1&#8212;Principles of Consolidation &#8211; Financings of Advances on Loans Serviced for Others, are comprised of the following:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Balance Outstanding</b> </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 10pt; text-indent: -10pt"> Borrowing Type </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Maturity (1)</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amortization Date (1) </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Unused Borrowing Capacity (2)</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>December 31, 2012</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>December 31, 2011</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 31%; text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 9%; text-align: right"> 2.23 </td> <td style="width: 1%"> % </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 9%; text-align: right"> May 2013 </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> 325,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.37 &#8211; 5.92 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> May 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 525,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.27 &#8211; 6.90 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 250,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 2.98 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 248,999 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.72 &#8211; 7.04 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2044</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 299,278 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Promissory Note (4) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.3875 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,784,043 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2009-3 (5) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 4.14 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">July 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> July 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 210,000 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2010-1 (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> 3.59 </td> <td style="padding-bottom: 1pt"> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2023</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> Feb. 2011 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 40,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total fixed rate </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,648,277 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,034,043 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-2 (7) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1-Month LIBOR (1ML) + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Nov. 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Nov. 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-1 (8) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Commercial paper (CP) rate + 200 bps or 1ML plus 325 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,687 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (9) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 285 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Apr. 2015</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Apr. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 444,984 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 205,016 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (9) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 225 or 335 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,288 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 232,712 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (10) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 250 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">June 2016</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> June 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,905 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 94,095 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note (11) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2015</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 862 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 49,138 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicing Advance Revolving Trust 1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> May 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 320,367 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 204,633 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 315 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 127,997 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,003 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps &#8211; 675 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2044</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 232,651 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 40,626 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward Agency Advance Funding Trust 2012-1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,906 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,094 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward DSF Advance Revolving Trust 2012-1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 450 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Feb. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Feb. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,849 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,151 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-1 Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 340,185 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-2 Variable Funding Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class B Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 525 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,850 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class C Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 625 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,056 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class D Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 750 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,638 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (13) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> 1ML + 200 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Jan. 2014</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> July 2013 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 130,492 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total variable rate </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 884,468 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 524,908 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,532,745 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,558,951 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> Weighted average interest rate </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.52 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.50 </td> <td style="text-align: left"> % </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; line-height: 12pt; font-family: Times New Roman"> (1) </td> <td style="width: 96%; line-height: 12pt"> The amortization date of our facilities is the date on which the revolving period ends under each advance facility note and repayment of the outstanding balance must begin if the note is not renewed or extended.&#160; The maturity date is the date on which all outstanding balances must be repaid.&#160; In two advance facilities, there are multiple notes outstanding.&#160; For each note, after the amortization date, all collections that represent the repayment of advances pledged to the facility must be applied to reduce the balance of the note outstanding, and any new advances are ineligible to be financed. </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman; width: 4%"> (2) </td> <td style="line-height: 12pt; width: 96%"> Unused borrowing capacity is available to us provided that we have additional eligible collateral to pledge.&#160; Collateral may only be pledged to one facility.&#160; </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (3) </td> <td style="line-height: 12pt"> Advance facility assumed in the Homeward Acquisition.&#160; The 2011-Servicing Advance Revolving Trust 1, 2012-Servicing Advance Revolving Trust 2 and 2012-Homeward DSF Advance Revolving Trust 2012-1 facilities were repaid in February 2013 from the proceeds of a new $1,700,000 bridge facility which has an amortization date of August 14, 2013. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (4) </td> <td style="line-height: 12pt"> This note was issued in connection with the financing of advances acquired in connection with the acquisition of Litton on September 1, 2011. Following the sale of advance collateral to HLSS in December 2012, the outstanding balance was repaid, the facility was terminated and the remaining collateral was transferred to other facilities. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (5) </td> <td style="line-height: 12pt"> On July 19, 2012, the borrowing under this note was transferred to the Series 2009-1 variable funding note. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (6) </td> <td style="line-height: 12pt"> The amortization period for this note ended in January 2012, at which time the remaining balance of $40,000 was repaid.&#160; The advances pledged to this note were transferred to the Series 2009-1 variable funding note and were re-pledged under that note. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (7) </td> <td style="line-height: 12pt"> The facility was terminated on September 28, 2012. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (8) </td> <td style="line-height: 12pt"> Effective March 12, 2012, the lender transferred this note from its commercial paper conduit and began charging interest based on 1-Month LIBOR.&#160; On September 28, 2012, the remaining balance was repaid, and the facility was terminated. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (9) </td> <td style="line-height: 12pt"> These notes were issued to finance the advances acquired in connection with the 2012 Saxon MSR Transaction. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (10) </td> <td style="line-height: 12pt"> These notes were issued to finance the advances acquired from BANA in connection with the acquisition of MSRs. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (11) </td> <td style="line-height: 12pt"> This note was issued to finance advances on the small balance commercial loan servicing portfolio that we acquired as part of the Litton Acquisition. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (12) </td> <td style="line-height: 12pt"> These notes were issued in connection with the financing of advances acquired as part of the HomEq Acquisition.&#160; The Class D Term Note was repaid in full on March 2, 2012.&#160; On March 5, 2012, HLSS assumed the remaining balances. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman"> (13) </td> <td style="line-height: 12pt"> On September 13, 2012, the remaining balance was repaid, the facility was terminated and the remaining collateral was transferred to another facility. </td> </tr> </table><br/> 1700000 40000000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Balance Outstanding</b> </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 10pt; text-indent: -10pt"> Borrowing Type </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Maturity (1)</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Amortization Date (1) </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>Unused Borrowing Capacity (2)</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>December 31, 2012</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <b>December 31, 2011</b> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 31%; text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 9%; text-align: right"> 2.23 </td> <td style="width: 1%"> % </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 9%; text-align: right"> May 2013 </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> 325,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicer Advance Revolving Trust 1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.37 &#8211; 5.92 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> May 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 525,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.27 &#8211; 6.90 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 250,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 2.98 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 248,999 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.72 &#8211; 7.04 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2044</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 299,278 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Promissory Note (4) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 3.3875 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,784,043 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2009-3 (5) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 4.14 </td> <td> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">July 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> July 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 210,000 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note Series 2010-1 (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> 3.59 </td> <td style="padding-bottom: 1pt"> % </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2023</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> Feb. 2011 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 40,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total fixed rate </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,648,277 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,034,043 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-2 (7) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1-Month LIBOR (1ML) + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Nov. 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Nov. 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Variable Funding Note Series 2009-1 (8) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Commercial paper (CP) rate + 200 bps or 1ML plus 325 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2023</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,687 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (9) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 285 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Apr. 2015</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Apr. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 444,984 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 205,016 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (9) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 225 or 335 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,288 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 232,712 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes Series 2012-ADV1 (10) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 250 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">June 2016</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> June 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,905 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 94,095 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Note (11) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Dec. 2015</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Dec. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 862 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 49,138 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2011-Servicing Advance Revolving Trust 1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> May 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 320,367 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 204,633 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 2 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 315 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sep. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 127,997 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,003 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Servicing Advance Revolving Trust 3 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps &#8211; 675 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Mar. 2044</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Mar. 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 232,651 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 40,626 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward Agency Advance Funding Trust 2012-1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 300 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Sept. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,906 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,094 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> 2012-Homeward DSF Advance Revolving Trust 2012-1 (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 450 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Feb. 2013</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Feb. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,849 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,151 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-1 Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 340,185 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class A-2 Variable Funding Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 350 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class B Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 525 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,850 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class C Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> CP rate + 625 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15,056 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Class D Term Note (12) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 750 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Aug. 2043</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Aug. 2013 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,638 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> Advance Receivable Backed Notes (13) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> 1ML + 200 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Jan. 2014</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right; padding-bottom: 1pt"> July 2013 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 130,492 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 30pt; text-indent: -10pt"> Total variable rate </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 884,468 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 524,908 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,160,809 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,532,745 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 2,558,951 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> Weighted average interest rate </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.52 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.50 </td> <td style="text-align: left"> % </td> </tr> </table> 0.0223 2043-05-31 2013-05-31 325000000 2043-05-31 2013-05-31 525000000 2043-12-31 2013-12-31 250000000 0.0298 2043-12-31 2013-12-31 248999000 2044-12-31 2014-12-31 299278000 0.033875 2013-12-31 2013-12-31 1784043000 0.0414 2023-07-31 2012-07-31 210000000 0.0359 2023-12-31 2011-12-31 40000000 1648277000 2034043000 2023-12-31 Nov. 2012 2023-12-31 Dec. 2012 11687000 2015-12-31 Apr. 2014 444984000 205016000 2043-12-31 Dec. 2013 17288000 232712000 2016-06-30 June 2014 5905000 94095000 2015-12-31 Dec. 2014 862000 49138000 2043-05-31 May 2013 320367000 204633000 2043-12-31 Sept. 2013 127997000 22003000 2044-12-31 Mar. 2014 232651000 40626000 2013-12-31 Sept. 2013 8906000 16094000 2013-12-31 Feb. 2013 1849000 20151000 2043-12-31 Aug. 2013 340185000 2043-12-31 Aug. 2013 2043-12-31 Aug. 2013 15850000 2043-12-31 Aug. 2013 15056000 2043-12-31 Aug. 2013 11638000 2014-12-31 July 2013 130492000 1160809000 884468000 524908000 1160809000 2532745000 2558951000 0.0352 0.0350 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE&#160;14</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>LINES OF CREDIT AND OTHER BORROWINGS</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Lines of credit and other secured borrowings are comprised of the following:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Balance Outstanding</b> </p> </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 10pt; text-indent: -10pt"> Borrowings </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Collateral </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Maturity</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Unused Borrowing Capacity</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>December 31, 2012</b> </p> </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>December 31, 2011</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; padding-left: 10pt; text-indent: -10pt"> Servicing: </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 37%; padding-left: 20pt; text-indent: -10pt"> SSTL (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 8%; text-align: right"> (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 8%; text-align: right"> 1ML + 550 bps with a LIBOR floor of 150 bps (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2016</font> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 314,229 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 546,250 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Senior unsecured term loan (2) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">March, 2017</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 75,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Financing liability &#8211; MSRs pledged (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs (3) </td> <td> &#160; </td> <td style="text-align: right"> (3)(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 303,705 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Financing liability &#8211; MSRs pledged (4) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs (4) </td> <td> &#160; </td> <td style="text-align: right"> (4)(4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,603 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Promissory note (5) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> 1ML + 350 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2017</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,466 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 714,003 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 546,250 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; padding-left: 20pt; text-indent: -10pt"> Lending: </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement (6) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Loans held for sale (LHFS) </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 175 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Jan. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 36,878 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 88,122 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Participation agreement (7) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td> &#160; </td> <td style="text-align: right"> N/A </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Feb. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 58,938 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement (8) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 200 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Feb. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 116,005 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 133,995 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> 1ML + 200 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Jul. 2013 </p> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 192,980 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 107,020 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 345,863 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 388,075 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left; padding-left: 10pt; text-indent: -10pt"> Corporate Items and Other </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Securities sold under an agreement to repurchase (9) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Monthly</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,610 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 345,863 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,104,911 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 550,860 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> Discount (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,232 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (10,491 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 345,863 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,096,679 </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 540,369 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> Weighted average interest rate (10) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.49 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.96 </td> <td style="text-align: left"> % </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; line-height: 12pt; font-family: Times New Roman; text-align: left"> (1) </td> <td style="width: 96%; padding: 0; line-height: 12pt; text-indent: 0"> On September 1, 2011, we entered into a new SSTL facility agreement and borrowed $575,000 that was primarily used to fund a portion of the Litton Acquisition.&#160; This initial loan was issued with an original issue discount of $11,500 that we are amortizing over the term of the loan.&#160; Subsequently, in order to fund a portion of the Homeward Acquisition, we entered into a Joinder Agreement with the lender in December 2012 that allowed us to borrow an additional $100,000, net of an original issue discount of $1,000, under this facility on essentially the same terms and conditions as the initial borrowing.&#160; Borrowings bear interest, at the election of Ocwen, at a rate per annum equal to either (a) the base rate [the greatest of (i) the prime rate of Barclays Bank PLC in effect on such day, (ii) the federal funds effective rate in effect on such day plus 0.50% and (iii) the one-month Eurodollar rate (1-Month LIBOR)], plus a margin of 4.50% and a base rate floor of 2.50% or (b) 1-Month LIBOR, plus a margin of 5.50% with a 1-Month LIBOR floor of 1.50%.&#160; We are required to repay the principal amount of the borrowings in consecutive quarterly installments of $16,875 per quarter commencing September 30, 2011 through June 30, 2016, with the balance becoming due on September 1, 2016.&#160; In addition, Ocwen is required to use 25% of the net cash proceeds (as defined) from any asset sale (as defined) to repay loan principal.&#160; Generally, this provision applies to non-operating sales of assets, such as the HLSS Transactions, and generally, net cash proceeds represent the proceeds from the sale of the assets, net of the repayment of any debt secured by a lien on the assets sold.&#160; The borrowings are secured by a first priority security interest in substantially all of the tangible and intangible assets of Ocwen. In February 2013, we repaid this loan in full. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman; text-align: left"> (2) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> Ocwen borrowed funds from Altisource in connection with the financing of the Homeward Acquisition. See Note&#160;27 for additional information regarding this agreement with Altisource. We repaid this loan in full in February 2013. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman; text-align: left"> (3) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> As part of the HLSS Transactions completed in 2012, Ocwen transferred to HLSS certain Rights to MSRs. However, because Ocwen has not yet transferred legal title to the MSRs, the sales were accounted for as a financing with the proceeds from the sale of the MSRs recorded as a financing liability. The financing liability is being amortized using the interest method with the servicing income that is remitted to HLSS representing payments of principal and interest. The liability has no contractual maturity but will be amortized over the estimated life of the pledged MSRs. The balance of the liability is reduced each month based on the change in the estimated fair value of the pledged MSRs. See Note&#160;3 for additional information regarding the HLSS Transactions. </td> </tr> <tr style="vertical-align: top"> <td style="line-height: 12pt; font-family: Times New Roman; text-align: left"> (4) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> We sold MSRs for certain loans to an unrelated third party in December 2012; however, we are required to repurchase the MSRs for any loans that cannot be refinanced by the purchaser under the federal government&#8217;s Home Affordable Refinance Program (HARP).&#160; As a result, the sale is being accounted for as a financing.&#160; The financing liability is being amortized using the interest method with the servicing income that is remitted to the purchaser representing payments of principal and interest.&#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0; width: 4%"> (5) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0; width: 96%"> This note was issued to finance the acquisition of MSRs from BANA.&#160; Prepayments of the balance on this note may be required if the borrowing base, as defined, falls below the amount of the note outstanding. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (6) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> On January 16, 2013, we extended the Master Repurchase Agreement maturity date to March 19, 2013. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (7) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> Under this participation agreement, the lender provides financing on an uncommitted basis for $50,000 to $90,000 at the discretion of the lender.&#160; The participation agreement allows the lender to acquire a 100% beneficial interest in the underlying mortgage loans.&#160; However, the transaction does not qualify for sales accounting treatment as is, therefore, accounted for as a financing.&#160; The lender earns the stated interest rate of the underlying mortgage loans while the loans are financed under the participation agreement.&#160; In February 2013, we extended the participation agreement maturity date to April 30, 2013. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (8) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> On January 25, 2013, we extended the Master Repurchase Agreement maturity date to May 3, 2013. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (9) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> In August 2010, we obtained financing under a repurchase agreement for the Class A-2 and A-3 notes issued by Ocwen Real Estate Asset Liquidating Trust 2007-1 which have a current face value of $26,180 at December 31, 2012.&#160; This agreement has no stated credit limit and lending is determined for each transaction based on the acceptability of the securities presented as collateral. </td> </tr> <tr style="vertical-align: top"> <td style="padding: 0; line-height: 12pt; font-family: Times New Roman; text-indent: 0"> (10) </td> <td style="padding: 0; line-height: 12pt; text-indent: 0"> Excludes the two financing liabilities arising for the sales of Rights to MSRs and MSRs that were accounted for as a financing and the financing liability arising from the sale of mortgage loan participations accounted for as a financing. </td> </tr> </table><br/> 575000000 11500000 100000000 1000000 16875000 0.25 50000000 90000000 100% 26180000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="text-align: center"> &#160; </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Balance Outstanding</b> </p> </td> <td style="text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding-left: 10pt; text-indent: -10pt"> Borrowings </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Collateral </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Maturity</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>Unused Borrowing Capacity</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>December 31, 2012</b> </p> </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> <b>December 31, 2011</b> </p> </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; padding-left: 10pt; text-indent: -10pt"> Servicing: </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 37%; padding-left: 20pt; text-indent: -10pt"> SSTL (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 8%; text-align: right"> (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 8%; text-align: right"> 1ML + 550 bps with a LIBOR floor of 150 bps (1) </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Sept. 2016</font> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 314,229 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 546,250 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Senior unsecured term loan (2) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> 1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">March, 2017</font> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 75,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Financing liability &#8211; MSRs pledged (3) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs (3) </td> <td> &#160; </td> <td style="text-align: right"> (3)(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 303,705 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Financing liability &#8211; MSRs pledged (4) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs (4) </td> <td> &#160; </td> <td style="text-align: right"> (4)(4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,603 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Promissory note (5) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> MSRs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> 1ML + 350 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <font style="font-family: Times New Roman, Times, Serif">May 2017</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 18,466 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 714,003 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 546,250 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; padding-left: 20pt; text-indent: -10pt"> Lending: </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement (6) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Loans held for sale (LHFS) </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 175 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Jan. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 36,878 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 88,122 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Participation agreement (7) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td> &#160; </td> <td style="text-align: right"> N/A </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Feb. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 58,938 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement (8) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td> &#160; </td> <td style="text-align: right"> 1ML + 200 bps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Feb. 2013 </p> </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 116,005 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 133,995 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Master repurchase agreement </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> LHFS </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> 1ML + 200 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> &#160; </p> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"> Jul. 2013 </p> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 192,980 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 107,020 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-style: italic; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 345,863 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 388,075 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-align: left; padding-left: 10pt; text-indent: -10pt"> Corporate Items and Other </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Securities sold under an agreement to repurchase (9) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font-family: Times New Roman, Times, Serif">Monthly</font> </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,610 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 345,863 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,104,911 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 550,860 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> Discount (1) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,232 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (10,491 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 345,863 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,096,679 </td> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 540,369 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10pt; text-indent: -10pt"> Weighted average interest rate (10) </td> <td> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: right"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.49 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.96 </td> <td style="text-align: left"> % </td> </tr> </table> (1) 1ML + 550 bps with a LIBOR floor of 150 bps (1) 2016-12-31 314229000 546250000 1-Month Euro-dollar rate + 675 bps with a Eurodollar floor of 150 bps 2017-03-31 75000000 MSRs (3) (3)(3) 303705000 MSRs (4) (4)(4) 2603000 MSRs 1ML + 350 bps 2017-05-31 18466000 714003000 546250000 Loans held for sale (LHFS) 1ML + 175 bps 2013-12-31 36878000 88122000 LHFS N/A 2013-12-31 58938000 LHFS 1ML + 200 bps 2013-12-31 116005000 133995000 LHFS 1ML + 200 bps 2013-12-31 192980000 107020000 345863000 388075000 Ocwen Real Estate Asset Liquidating Trust 2007-1 Notes Class A-2 notes: 1ML + 200 bps; Class A-3 notes: 1ML + 300 bps Monthly 2833000 4610000 345863000 1104911000 550860000 -8232000 -10491000 345863000 0.0449 0.0696 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE 15</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>DEBT SECURITIES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Debt securities consisted of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> 3.25% Contingent Convertible Senior Unsecured Notes due August 1, 2024 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 56,435 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> 10.875% Capital Securities due August 1, 2027 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 26,119 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 82,554 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>3.25% Convertible Notes.</i> In July 2004, OCN issued $175,000 aggregate principal amount of 3.25% Convertible Notes (the Convertible Notes) due August 1, 2024. On February 27, 2012, we provided notice of redemption to all the holders of the Convertible Notes stating our election to redeem all of the outstanding notes on March 28, 2012. Of the $56,435 outstanding principal balance of the Convertible Notes, $56,410 was converted to 4,635,159 shares of common stock at a conversion rate of 82.1693 per $1,000 (in dollars) principal amount (representing a conversion price of $12.17 per share) with 11 fractional shares settled in cash. The remaining $25 principal balance of the Convertible Notes was redeemed at a cash price of 100% of principal outstanding, plus accrued and unpaid interest. The Convertible Notes were senior general unsecured obligations not guaranteed by any of our subsidiaries. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>10.875% Capital Securities.</i> In August 1997, Ocwen Capital Trust (OCT) issued $125,000 of 10.875% Capital Securities (the Capital Securities). OCT invested the proceeds from issuance of the Capital Securities in 10.875% Junior Subordinated Debentures issued by Ocwen. The Junior Subordinated Debentures, which represent the sole assets of OCT, had a maturity date of August 1, 2027. On August 31, 2012, Ocwen redeemed the Junior Subordinated Debentures at a price of 102.719% of the $26,119 outstanding principal, plus accrued and unpaid interest. The redemption of the Junior Subordinated Debentures resulted in the mandatory redemption of the Capital Securities in an amount equal to the amount of the related Junior Subordinated Debentures being redeemed and at a redemption price equal to the redemption price of the Junior Subordinated Debentures, plus accumulated and unpaid distributions thereon to the date of redemption. We recognized a loss of $653 on the redemption primarily representing the excess of the redemption price over the outstanding principal balance of the Capital Securities. We reported this loss in Other, net in our Consolidated Statement of Operations. The trust entity which issued the Capital Securities in August 1997 (Ocwen Capital Trust I) was dissolved and terminated following the redemption. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For financial reporting purposes, we treat OCT as a subsidiary and, accordingly, the accounts of OCT are included in our consolidated financial statements. We consolidate OCT because we own all of the beneficial ownership interests represented by common securities that were issued by OCT (Common Securities) and have repurchased 79% of the Capital Securities that were originally issued. We eliminate intercompany balances and transactions with OCT, including the balance of Junior Subordinated Debentures outstanding, in our consolidated financial statements. </p><br/> 175000000 0.0325 56435000 56410000 4635159 82.1693 1000000 12.17 11 25000 125000000 0.10875 1.02719 26119000 653000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> 3.25% Contingent Convertible Senior Unsecured Notes due August 1, 2024 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 56,435 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> 10.875% Capital Securities due August 1, 2027 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 26,119 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 82,554 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table> 56435000 26119000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE 16</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>OTHER LIABILITIES</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> Other liabilities were comprised of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Accrued expenses (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 106,376 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 47,198 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Due to related parties (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 45,034 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,274 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,225 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,481 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Liability for selected tax items (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,702 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,524 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Derivatives, at fair value (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,658 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,276 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Payable to servicing and subservicing investors (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,973 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 28,824 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Servicing liabilities (6) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,830 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,662 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Accrued interest payable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,410 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,140 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Secured borrowings &#8211; owed to securitization investors (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 53,323 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 26,456 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,137 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 277,664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 202,839 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Includes $63,406 of accrued expenses attributable to Homeward, including $38,093 of accruals related to loan repurchase obligations and reserves for indemnification for servicing errors and for compensatory fees for foreclosures that exceed investor timelines. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> See Note&#160;27 for additional information regarding transactions with Altisource and HLSS. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> See Note&#160;22 for information on the liability for selected tax items. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (4) </td> <td style="text-indent: 0in; line-height: 12pt"> See Note&#160;19 for additional information regarding derivatives. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (5) </td> <td style="text-indent: 0in; line-height: 12pt"> The balance represents amounts due to investors in connection with loans we service under servicing and subservicing agreements. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (6) </td> <td style="text-indent: 0in; line-height: 12pt"> Our acquisition of MSRs during the second quarter of 2012 included a servicing liability with a fair value of $1,441. During, 2012, 2011 and 2010, amortization of servicing liabilities exceeded the amount of charges we recognized to increase servicing liability obligations by $1,274, $2,725 and $172, respectively. Amortization of mortgage servicing rights is reported net of this amount in the Consolidated Statement of Operations. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (7) </td> <td style="text-indent: 0in; line-height: 12pt"> Secured borrowings &#8211; owed to securitization investors consisted of certificates representing beneficial ownership interests in four securitization trusts that we included in our consolidated financial statements until December 2012 when we sold our interests in the trusts, as more fully described in Note&#160;1&#8212;Securitizations of Residential Mortgage Loans. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The balance of Other liabilities at December 31, 2012 includes $107,291 related to the Homeward Acquisition. See Note 2. </p><br/> 63406 38093 1441000 1274 2725000 172000 107291 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Accrued expenses (1) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 106,376 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 47,198 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Due to related parties (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 45,034 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,274 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Checks held for escheat </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 33,225 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,481 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Liability for selected tax items (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,702 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,524 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Derivatives, at fair value (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,658 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,276 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Payable to servicing and subservicing investors (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,973 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 28,824 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Servicing liabilities (6) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,830 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,662 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Accrued interest payable </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,410 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,140 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Secured borrowings &#8211; owed to securitization investors (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 53,323 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 26,456 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,137 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 277,664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 202,839 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table> 106376000 47198000 45034000 4274000 33225000 22481000 22702000 4524000 18658000 20276000 9973000 28824000 9830000 9662000 5410000 4140000 53323000 26456000 8137000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%"> <tr style="vertical-align: top; text-align: left"> <td style="width: 9%"> <font style="font-size: 10pt"><b>NOTE 17</b></font> </td> <td style="width: 91%"> <font style="font-size: 10pt"><b>MEZZANINE EQUITY</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <b>Preferred Stock</b> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On December 27, 2012, Ocwen issued 162,000 shares of Series A Perpetual Convertible Preferred Stock, having a par value of $0.01 per share as part of the consideration paid in the Homeward Acquisition. The following is a summary of the voting powers, preferences and relative, participating, optional and other special rights of the Preferred Shares: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in; text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Ranking</i>. The Preferred Shares shall, with respect to the payment of dividends, redemption and distributions upon the liquidation, winding up or dissolution of Ocwen rank senior to all classes of common stock. </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Dividends</i>. Holders of the Preferred Shares are entitled to receive mandatory and cumulative dividends payable quarterly at the rate per share equal to the greater of (i) 3.75% per annum multiplied by $1,000 per share and (ii) in the event Ocwen pays a regular quarterly dividend on its common stock in such quarter, the rate per share payable in respect of such quarterly dividend on an as-converted basis. If Ocwen declares a special dividend on common stock, then any dividend shall be payable to the holders of the shares of common stock and the holders of the Preferred Shares on a <i>pari passu</i>, as-converted basis. Any such dividend may be paid either in cash or in Preferred Shares. </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Conversion</i>. Each Preferred Share, together with any accrued and unpaid dividends, may be converted to common stock at the option of the holder at a conversion price equal to $31.79. </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Redemption.</i> Ocwen may redeem the Preferred Shares commencing on December 27, 2014. The shares of Series A Preferred Stock are redeemable, at Ocwen&#8217;s option, in whole, or, from time to time, in part, at any time beginning on the second anniversary of the issue date of the Preferred Shares, payable through the issuance of shares of Common Stock. The redemption amount is any accrued and unpaid dividends plus: 103% of the liquidation preference of $1,000 for each Preferred Share plus from the second anniversary of the issue date and prior to the third anniversary; 102% of the liquidation preference from the third anniversary and prior to the fourth anniversary; 101% of the liquidation preference from the fourth anniversary and prior to the fifth anniversary; and the liquidation preference from the fifth anniversary. </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="text-align: left; line-height: 12pt; width: 0.25in"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Voting.</i> The holders of Preferred Shares shall be entitled to vote on all matters submitted to the stockholders for a vote, voting together with the holders of the common stock as a single class, with each share of common stock entitled to one vote per share and each Preferred Share entitled to one vote for each share of common stock issuable upon conversion of the Preferred Share as of the record date for such vote or, if no record date is specified, as of the date of such vote. </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt"> <i>Protective Provisions.</i> So long as the Preferred Shares are outstanding, Ocwen will not, without obtaining the approval of the holders of a majority of the Preferred Shares (i) issue any preferred stock other than the Preferred Shares, any senior securities or any parity securities in excess of $325 million; (ii) amend or alter the Articles of Designation or Articles of Incorporation in any manner that under the Florida Business Corporation Act requires the prior vote as a separate class of the holders of the Preferred Shares; (iii) amend or otherwise alter the Articles of Designation or the Articles of Incorporation in any manner that would adversely affect the rights, privileges or preferences of the Preferred Shares; (iv) pay any dividend in cash to the common stock in respect of any quarterly dividend unless the dividend payable in respect of such quarter on the Preferred Shares is also paid in cash to the same extent; or (v) waive compliance with any provision of the Articles of Designation or take any actions intended to circumvent the provisions of the Articles of Designation. </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-align: left; line-height: 12pt"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-style: italic"> Change of Control; Liquidation Event. </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.5in"> &#160; </td> <td style="width: 0.25in; text-indent: 0in; line-height: 12pt"> 1. </td> <td style="text-indent: 0in; line-height: 12pt"> <u>Change of Control</u>. In the case of any change in control of Ocwen, then, upon consummation of such transaction, each holder of Preferred Shares shall be entitled to receive in respect of such share the greater of (i) the liquidation preference of $1,000 plus accrued and unpaid dividends thereon, whether or not declared, if any, or (ii) the amount such holder would receive if such holder converted such Preferred Shares into the kind and amount of securities, cash or other assets receivable upon the consummation of the change in control by a holder of the number of shares of Common Stock into which such Preferred Shares might have been converted immediately prior to such change in control; </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td style="text-indent: 0in; line-height: 12pt"> 2. </td> <td style="text-indent: 0in; line-height: 12pt"> <u>Liquidation Event</u>. Upon any liquidation event, each holder of Preferred Shares will be entitled to payment out of Ocwen&#8217;s assets available for distribution, before any distribution or payment out of such assets may be made to the holders of any junior securities, and subject to the rights of the holders of any senior securities or parity securities upon liquidation and the rights of Ocwen&#8217;s creditors, of an amount equal to the liquidation preference of $1,000 plus accrued and unpaid dividends thereon, whether or not declared. After payment in full of the liquidation preference plus accrued and unpaid dividends thereon to which holders of Preferred Shares are entitled, such holders will not be entitled to any further participation in any distribution of Ocwen&#8217;s assets. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The holders of the Preferred Shares also received registration rights for the Preferred Shares and the shares of common stock issuable upon conversion. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We evaluated the Preferred Shares under ASC 480, Distinguishing Liabilities from Equity, and determined that the Preferred Shares should be accounted for as equity because the Preferred Shares are convertible at any time at the option of the holder into common stock and redemption of the shares by Ocwen is settled through the issuance of common stock. We also determined that the conversion feature of the Preferred Shares does not require separation from the host contract because the preponderance of the characteristics of the Preferred Shares indicates that the Preferred Shares are more akin to equity than debt and, therefore, are an equity host. Since an equity conversion option and an equity host are clearly and closely related, no further separation analysis is required under ASC 815, Derivatives and Hedging. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We also determined that the change of control provisions could result in a redemption not solely under Ocwen&#8217;s control. Therefore, classification of the Preferred Shares as &#8220;mezzanine&#8221; equity in the Consolidated Balance Sheets was more appropriate than classification as part of Stockholders&#8217; equity. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We also determined that the conversion option of the Preferred Shares represented a Beneficial Conversion Feature (BCF) under ASC 470, Debt, because the conversion price of $31.79 was lower than the common stock price at the issue date of $33.495, determined using the average of the high and low prices for that date. The Preferred Shares are convertible into 5,095,942 shares of common stock. Therefore, the intrinsic value of the BCF &#8212; the difference between the price of common stock on the issue date and the conversion price multiplied by the number of shares of common stock into which the Preferred Shares can be converted &#8212; was $8,688 which we accounted for as a discount on the Preferred Shares with an offsetting increase in additional paid in capital. Because the Preferred Shares are optionally redeemable by Ocwen, we are amortizing the BCF through the second anniversary of the issued date, at which time Ocwen can first redeem the Preferred Shares. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For the period December 27, 2012 through December 31, 2012, we amortized $60 of the BCF discount on the Preferred Shares as a deemed dividend with an offsetting reduction in retained earnings. At December 31, 2012, we accrued the mandatory and cumulative dividends payable of $85 for the period. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The carrying value of our Preferred Shares reflects the following: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding: 0 0 0 10pt"> Initial issuance price on December 31, 2012 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 162,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Discount for beneficial conversion feature </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,688 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Accretion of discount </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 60 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Carrying value at December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 153,372 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table><br/> 162000 0.01 0.0375 31.79 33.495 5095942 8688000 60000 85000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; text-indent: -10pt; padding: 0 0 0 10pt"> Initial issuance price on December 31, 2012 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 162,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Discount for beneficial conversion feature </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (8,688 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Accretion of discount </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 60 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Carrying value at December 31, 2012 </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 153,372 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table> 162000000 -8688000 60000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 18 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> EQUITY </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <b>Common Stock</b> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On May 9, 2000, we announced that our Board of Directors authorized the repurchase of up to 6,000,000 of our issued and outstanding shares of common stock. To date, we have repurchased 431,100 shares under this plan (all in 2004). We may still purchase a total of 5,568,900 shares under this plan. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On November 9, 2011, OCN completed the public offering of 28,750,000 shares of common stock at a per share price of $13.00, including 3,750,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $354,445 from the offering after deducting underwriting fees and other incremental costs directly related to the offering. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On March 28, 2012, we converted $56,410 of the outstanding principal balance of the Convertible Notes to 4,635,159 shares of common stock. See Note&#160;15 </p><br/><p style="margin: 0"> for additional information regarding the conversion. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <b>Accumulated Other Comprehensive Loss</b> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The components of accumulated other comprehensive loss (AOCL), net of income taxes, were as follows at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Unrealized losses on cash flow hedges </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 6,310 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 7,760 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 131 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 136 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 6,441 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,896 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/> Common Stock On May 9, 2000, we announced that our Board of Directors authorized the repurchase of up to 6,000,000 of our issued and outstanding shares of common stock. To date, we have repurchased 431,100 shares under this plan (all in 2004). We may still purchase a total of 5,568,900 shares under this plan. On November 9, 2011, OCN completed the public offering of 28,750,000 shares of common stock at a per share price of $13.00, including 3,750,000 shares of common stock purchased by the underwriters pursuant to the full exercise of the over-allotment option granted under the underwriting agreement. We received net proceeds of $354,445 from the offering after deducting underwriting fees and other incremental costs directly related to the offering. On March 28, 2012, we converted $56,410 of the outstanding principal balance of the Convertible Notes to 4,635,159 shares of common stock. See Note15 for additional information regarding the conversion. 6000000 431100 5568900 28750000 13.00 3750000 354445 56410 4635159 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding-left: 10pt"> Unrealized losses on cash flow hedges </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 6,310 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 7,760 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 131 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 136 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 6,441 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,896 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> -6310000 -7760000 -131000 -136000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 19 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> DERIVATIVE FINANCIAL INSTRUMENTS </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Because many of our current derivative agreements are not exchange-traded, we are exposed to credit loss in the event of nonperformance by the counterparty to the agreements. We control this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of our contracts does not represent our exposure to credit loss. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table summarizes the changes in our holdings of derivatives during the year ended December 31, 2012: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> IRLCs </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> U.S. Treasury Futures </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Forward MBS Trades </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate Caps </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Foreign Exchange Forwards </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate Swaps </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 28%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Beginning notional balance </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,600,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 46,200 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,393,685 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Homeward Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,112,519 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 109,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,638,979 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,025,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 432,500 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Other additions </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Maturities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (330,230 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Terminations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,600,000 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (46,200 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Ending notional balance </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,112,519 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 109,000 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,638,979 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,495,955 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Fair value of derivative assets (liabilities) at: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,781 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1,258 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1,719 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 168 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (10,836 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> December 31, 2011 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,600 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (5,785 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (14,491 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Maturity </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Mar. 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Jan. 2013 &#8211; Mar. 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Feb. 2015 &#8211; May 2016 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Feb. 2013 &#8211; Mar. 2032 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Foreign Currency Exchange Rate Risk Management </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We periodically enter into foreign exchange forward contracts to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL. Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Interest Rate Management </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Match Funded Liabilities</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We entered into interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. These interest rate swap agreements require us to pay a fixed rate and receive a variable interest rate based on one-month LIBOR. At the time that we entered into the agreements, these swaps were designated as hedges for accounting purposes. We also purchased interest rate caps to minimize future interest rate exposure from increases in one-month LIBOR interest rates, as required by the certain of our advance financing arrangements. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>Loans Held for Sale, at Fair Value</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The mortgage loans held for sale which we carry at fair value are subject to interest rate and price risk from the loan funding date until the date the loan is sold into the secondary market. Generally, the fair value of a loan will decline in value when interest rates increase and will rise in value when interest rates decrease. To mitigate this risk, we enter into forward trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> IRLCs represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant, whereby the interest rate is set prior to funding. The loan commitment binds us (subject to the loan approval process) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The borrower is not obligated to obtain the loan, thus we are subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs. Our interest rate exposure on these derivative loan commitments is hedged with freestanding derivatives such as forward contracts. We enter into forward contracts with respect to fixed rate loan commitments. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0in"> <i>MSRs, at Fair Value</i> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The MSRs which we measure at fair value are subject to substantial interest rate risk as the mortgage notes underlying the MSRs permit the borrowers to prepay the loans. Therefore, the value of these MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). Although the level of interest rates is a key driver of prepayment activity, there are other factors </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"> that influence prepayments, including home prices, underwriting standards and product characteristics. The amount and composition of derivatives used, if any, will depend on the exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We enter into economic hedges including interest rate swaps, U.S. Treasury futures and forward contracts to minimize the effects of loss in value of these MSRs associated with increased prepayment activity that generally results from declining interest rates. These interest rate swap agreements generally require us to pay a variable interest rate based on LIBOR and receive a fixed rate. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specific price, with delivery or settlement at a specified date. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of financial instruments at a specified price, with delivery and settlement at a specified date. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following summarizes our use of derivatives at December 31, 2012 and the gains (losses) on those derivatives for the year then ended. The table also indicates whether or not each derivative was designated as a hedge for accounting purposes at December 31, 2012: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-indent: -10pt"> Purpose </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Expiration Date </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Notional Amount </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Fair Value (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Gains / (Losses) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Financial Statement Caption </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; font-style: italic; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effect of changes in interest rates on interest expense on borrowings </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Interest rate swaps (pay fixed, receive variable) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Not designated as hedges: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of a change in 1ML on borrowing under an advance funding facility (2) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> 2013 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 250,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (2,699 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 3,605 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 9%; text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of a change in the lender&#8217;s CP rate and 1ML on borrowing under an advance funding facility (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 321,659 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,958 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,352 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net / AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Total not designated as hedges </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 571,659 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,657 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,957 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> Designated as hedges: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of changes in 1ML or the lenders&#8217; CP rate on advance funding facilities (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 201,892 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (7,746 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,246 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td> AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of changes in 1ML or the lenders&#8217; CP rate on advance funding facilities (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 289,904 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,211 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,859 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Total designated as hedges </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 491,796 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,957 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,105 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total swaps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,063,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (15,614 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,148 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <b>Interest rate caps</b> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of changes in 1ML on advance funding facilities (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2014 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,195 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of changes in 1ML on advance funding facilities (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015-2016 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 168 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total caps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 168 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (3,195 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total hedges of debt </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,088,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (15,446 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4,343 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; font-style: italic; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effect of changes in interest rates on MSRs measured at fair value </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Interest rate swaps (pay variable, receive fixed) (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2014-2032 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 432,500 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,778 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> U.S. Treasury futures (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 109,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,258 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Forward MBS trades (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 314,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 67 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Total hedges of MSRs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 855,500 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,587 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <b><i>Hedge the effect of changes in interest rates on the value of mortgage loans held for sale and IRLCs</i></b> </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Forward MBS trades (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,324,979 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,786 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,226 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; font-style: italic; padding: 0 0 0 10pt; text-indent: -10pt"> IRLCs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,112,519 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,781 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 153 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Loss on loans held for sale, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total derivatives </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,381,453 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,864 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (5,416 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Derivatives are reported at fair value in Receivables, Other assets or in Other liabilities. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> We discontinued hedge accounting for this hedging relationship effective July 1, 2011 and began amortizing to earnings the $6,179 of deferred losses in accumulated other comprehensive income. Amortization was scheduled to continue until the related advance facility matures in July 2013. In September 2012, we repaid the advance facility and wrote-off the remaining $2,317 of unamortized deferred losses in AOCL. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> The hedging relationship was terminated when the advance facility was assumed on March 5, 2012 by HLSS. At that time, we wrote-off the $5,958 of deferred losses in AOCL. See Note 3 and Note 13 for additional information regarding the match funded liabilities assumed by HLSS. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (4) </td> <td style="text-indent: 0in; line-height: 12pt"> Acquired in connection with the Homeward Acquisition. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (5) </td> <td style="text-indent: 0in; line-height: 12pt"> Monthly settlements on this forward-starting swap begin June 2013. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (6) </td> <td style="text-indent: 0in; line-height: 12pt"> Projected net settlements on the swap for the next twelve months total approximately $3,748 of payments to the counterparties. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (7) </td> <td style="text-indent: 0in; line-height: 12pt"> Sold in November 2012. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.2in"> Included in AOCL at December 31, 2012 and December 31, 2011, respectively, were $9,878 and $12,114 of deferred unrealized losses, before taxes of $3,568 and $4,354, respectively, on the interest rate swaps that we designated as cash flow hedges. Other income (expense), net, includes the following related to derivative financial instruments for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Gains (losses) on non-hedging derivatives (1)(2) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 6,256 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> (4,488 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 17 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Ineffectiveness of cash flow hedges </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,393 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (150 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Write-off of losses in AOCL for a discontinued hedge relationship (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,633 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,545 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note&#160;3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,958 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (4,294 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,426 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (133 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Includes a gain of $3,359 during 2012 from the termination of foreign exchange forward contracts. Also includes a loss of $1,514 on the sale of the interest rate cap in 2012. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> Includes $1,368 of net unrealized gains during 2011 relating to the swap for which we discontinued hedge accounting effective July 1, 2011. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> Includes the write off in 2012 of the remaining $2,317 of unamortized losses when the borrowing under the related advance financing facility was repaid in full, and the facility was terminated. </td> </tr> </table><br/> Currency Exchange Rate Risk Management We periodically enter into foreign exchange forward contracts to hedge against the effect of changes in the value of the India Rupee (INR) on amounts payable to our India subsidiary, OFSPL. Our operations in Uruguay also expose us to foreign currency exchange rate risk, but we consider this risk to be insignificant. Rate Management Match Funded Liabilities We entered into interest rate swaps in order to hedge against the effects of changes in interest rates on our borrowings under our advance funding facilities. These interest rate swap agreements require us to pay a fixed rate and receive a variable interest rate based on one-month LIBOR. At the time that we entered into the agreements, these swaps were designated as hedges for accounting purposes. We also purchased interest rate caps to minimize future interest rate exposure from increases in one-month LIBOR interest rates, as required by the certain of our advance financing arrangements. Loans Held for Sale, at Fair Value The mortgage loans held for sale which we carry at fair value are subject to interest rate and price risk from the loan funding date until the date the loan is sold into the secondary market. Generally, the fair value of a loan will decline in value when interest rates increase and will rise in value when interest rates decrease. To mitigate this risk, we enter into forward trades to provide an economic hedge against those changes in fair value on mortgage loans held for sale. Forward trades are primarily used to fix the forward sales price that will be realized upon the sale of mortgage loans into the secondary market. IRLCs represent an agreement to purchase loans from a third-party originator or an agreement to extend credit to a mortgage applicant, whereby the interest rate is set prior to funding. The loan commitment binds us (subject to the loan approval process) to fund the loan at the specified rate, regardless of whether interest rates have changed between the commitment date and the loan funding date. As such, outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of the commitment through the loan funding date or expiration date. The borrower is not obligated to obtain the loan, thus we are subject to fallout risk related to IRLCs, which is realized if approved borrowers choose not to close on the loans within the terms of the IRLCs. Our interest rate exposure on these derivative loan commitments is hedged with freestanding derivatives such as forward contracts. We enter into forward contracts with respect to fixed rate loan commitments. MSRs, at Fair Value The MSRs which we measure at fair value are subject to substantial interest rate risk as the mortgage notes underlying the MSRs permit the borrowers to prepay the loans. Therefore, the value of these MSRs generally tends to diminish in periods of declining interest rates (as prepayments increase) and increase in periods of rising interest rates (as prepayments decrease). Although the level of interest rates is a key driver of prepayment activity, there are other factors that influence prepayments, including home prices, underwriting standards and product characteristics. The amount and composition of derivatives used, if any, will depend on the exposure to loss of value on the MSRs, the expected cost of the derivatives, expected liquidity needs and the expected increase to earnings generated by the origination of new loans resulting from the decline in interest rates. We enter into economic hedges including interest rate swaps, U.S. Treasury futures and forward contracts to minimize the effects of loss in value of these MSRs associated with increased prepayment activity that generally results from declining interest rates. These interest rate swap agreements generally require us to pay a variable interest rate based on LIBOR and receive a fixed rate. Futures contracts are exchange-traded contracts where two parties agree to purchase and sell a specific quantity of a financial instrument at a specific price, with delivery or settlement at a specified date. Forward contracts are over-the-counter contracts where two parties agree to purchase and sell a specific quantity of financial instruments at a specified price, with delivery and settlement at a specified date. The following summarizes our use of derivatives at December 31, 2012 and the gains (losses) on those derivatives for the year then ended. 6179000 2317000 5958000 3748 9878 12114 3568 4354 3359000 1514000 1368000 2317000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> IRLCs </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> U.S. Treasury Futures </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Forward MBS Trades </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate Caps </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Foreign Exchange Forwards </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Interest Rate Swaps </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 28%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Beginning notional balance </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,600,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 46,200 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,393,685 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Homeward Acquisition </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,112,519 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 109,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,638,979 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,025,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 432,500 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Other additions </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160;&#160;&#160;Maturities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (330,230 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Terminations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,600,000 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (46,200 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Ending notional balance </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,112,519 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 109,000 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,638,979 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1,495,955 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Fair value of derivative assets (liabilities) at: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> December 31, 2012 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,781 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1,258 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (1,719 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 168 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (10,836 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> December 31, 2011 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 3,600 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (5,785 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (14,491 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Maturity </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Mar. 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Jan. 2013 &#8211; Mar. 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Feb. 2015 &#8211; May 2016 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> Feb. 2013 &#8211; Mar. 2032 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 1600000000 46200000 1393685000 1112519000 109000000 1638979000 1025000000 432500000 -330230000 -1600000000 -46200000 1112519000 109000000 1638979000 1025000000 1495955000 5781000 -1258000 -1719000 168000 -10836000 3600000 -5785000 -14491000 2013-12-31 2013-12-31 2013-12-31 2016-05-31 2008-12-31 2032-12-31 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; padding: 0 0 0 10pt; text-indent: -10pt"> Purpose </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Expiration Date </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Notional Amount </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Fair Value (1) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Gains / (Losses) </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Financial Statement Caption </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; font-style: italic; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effect of changes in interest rates on interest expense on borrowings </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Interest rate swaps (pay fixed, receive variable) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Not designated as hedges: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 32%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of a change in 1ML on borrowing under an advance funding facility (2) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 9%; text-align: right"> 2013 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 250,000 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (2,699 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 3,605 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 9%; text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of a change in the lender&#8217;s CP rate and 1ML on borrowing under an advance funding facility (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 321,659 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,958 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,352 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net / AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Total not designated as hedges </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 571,659 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,657 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,957 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> Designated as hedges: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of changes in 1ML or the lenders&#8217; CP rate on advance funding facilities (5) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 201,892 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (7,746 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,246 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td> AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of changes in 1ML or the lenders&#8217; CP rate on advance funding facilities (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 289,904 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,211 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,859 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> AOCL </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;Total designated as hedges </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 491,796 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,957 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,105 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total swaps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,063,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (15,614 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,148 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <b>Interest rate caps</b> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effects of changes in 1ML on advance funding facilities (7) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2014 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (3,195 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Hedge the effects of changes in 1ML on advance funding facilities (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2015-2016 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 168 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total caps </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,025,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 168 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (3,195 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total hedges of debt </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,088,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (15,446 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4,343 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; font-style: italic; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Hedge the effect of changes in interest rates on MSRs measured at fair value </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Interest rate swaps (pay variable, receive fixed) (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2014-2032 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 432,500 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,778 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> U.S. Treasury futures (4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 109,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,258 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Forward MBS trades (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 314,000 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 67 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Total hedges of MSRs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 855,500 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 3,587 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <b><i>Hedge the effect of changes in interest rates on the value of mortgage loans held for sale and IRLCs</i></b> </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> <u>Not designated as hedges:</u> </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic; text-align: right"> &#160; </td> <td style="font-style: italic; text-align: left"> &#160; </td> <td style="font-style: italic"> &#160; </td> <td style="font-style: italic"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Forward MBS trades (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,324,979 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,786 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,226 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Other, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; font-style: italic; padding: 0 0 0 10pt; text-indent: -10pt"> IRLCs </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2013 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,112,519 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,781 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 153 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> Loss on loans held for sale, net </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160;&#160;&#160;&#160;&#160;&#160;&#160;Total derivatives </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,381,453 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,864 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (5,416 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td> &#160; </td> </tr> </table> 2013 250000000 -2699000 3605000 Other, net 2013 321659000 -2958000 3352000 Other, net / AOCL 571659000 -5657000 6957000 2015 201892000 -7746000 -6246000 AOCL 2015 289904000 -2211000 -1859000 AOCL 491796000 -9957000 -8105000 1063455000 -15614000 -1148000 2014 -3195000 Other, net 2015-2016 1025000000 168000 Other, net 1025000000 168000 -3195000 2088455000 -15446000 -4343000 2014-2032 432500000 4778000 Other, net 2013 109000000 -1258000 Other, net 2013 314000000 67000 Other, net 855500000 3587000 2013 1324979000 -1786000 -1226000 Other, net 2013 1112519000 5781000 153000 Loss on loans held for sale, net 5381453000 -7864000 -5416000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Gains (losses) on non-hedging derivatives (1)(2) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 6,256 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> (4,488 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 17 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Ineffectiveness of cash flow hedges </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,393 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (150 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Write-off of losses in AOCL for a discontinued hedge relationship (3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (4,633 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,545 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Write-off of losses in AOCL for hedge of a financing facility assumed by HLSS (See Note&#160;3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5,958 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (4,294 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (7,426 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (133 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> </tr> </table> 6256000 17000 41000 -150000 4633000 5958000 -4294000 -133000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 20 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> INTEREST INCOME </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents the components of interest income for each category of our interest-earning assets for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Interest earning cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 963 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 756 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,190 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loans held for sale </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,946 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,291 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,398 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Loans, net - restricted for securitization investors </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,420 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,829 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,271 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,329 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,876 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 10,859 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Interest earning cash </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 963 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 756 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,190 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Loans held for sale </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,946 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,291 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,398 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Loans, net - restricted for securitization investors </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,420 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,829 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,271 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,329 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,876 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 10,859 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 963000 756000 1190000 2946000 2291000 3398000 4420000 5829000 6271000 8329000 8876000 10859000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 21 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> INTEREST EXPENSE </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following table presents the components of interest expense for each category of our interest-bearing liabilities for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Match funded liabilities </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 122,292 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 93,051 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 61,656 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Lines of credit and other borrowings (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 96,220 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,985 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,553 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Debt securities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> 3.25% Convertible Notes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 153 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,834 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,834 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> 10.875% Capital Securities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,894 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,840 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,954 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Secured borrowings &#8211; owed to securitization investors </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 616 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 670 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 632 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Escrow deposits and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,280 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,390 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,294 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 223,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 132,770 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 85,923 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 95%; text-indent: 0in; line-height: 12pt"> Includes interest expense of $54,710 in 2012 on the financing liability arising from the sales of Rights to MSRs to HLSS that were accounted for as financings. See Note 3 and Note 14 for additional information regarding these sales and the financing liability. </td> </tr> </table><br/> 54710 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Match funded liabilities </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 122,292 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 93,051 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 61,656 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Lines of credit and other borrowings (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 96,220 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 32,985 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,553 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Debt securities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> 3.25% Convertible Notes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 153 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,834 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,834 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> 10.875% Capital Securities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,894 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,840 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,954 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Secured borrowings &#8211; owed to securitization investors </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 616 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 670 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 632 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Escrow deposits and other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,280 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,390 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,294 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 223,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 132,770 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> $ </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 85,923 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> </table> 122292000 93051000 61656000 96220000 32985000 17553000 153000 1834000 1834000 1894000 2840000 2954000 616000 670000 632000 2280000 1390000 1294000 223455000 132770000 85923000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 22 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> INCOME TAXES </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> For income tax purposes, the components of income from continuing operations before taxes were as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; padding-left: 10pt"> Domestic </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 176,075 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 3%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 118,708 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 33,394 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding-left: 10pt"> Foreign </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 81,433 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,287 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,760 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 257,508 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 122,995 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The components of income tax expense (benefit) on continuing operations were as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Current: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 46%; text-indent: -10pt; padding: 0 0 0 20pt"> Federal </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 10,621 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 13,894 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 8,836 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> State </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (759 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (195 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,049 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Foreign </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,968 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,079 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,033 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,830 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 14,778 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 11,918 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Deferred: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Federal </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 62,704 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 29,440 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,953 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> State </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (431 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 368 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (145 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Foreign </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,482 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 86 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 725 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Provision for valuation allowance on deferred tax assets </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 63,755 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 29,894 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,373 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Total </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 76,585 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,672 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,545 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Income tax expense differs from the amounts computed by applying the U.S. Federal corporate income tax rate of 35% as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected income tax expense at statutory rate </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 90,127 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 43,049 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 13,704 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Differences between expected and actual income tax expense: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> State tax, after Federal tax benefit </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,184 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 254 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 610 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Tax effect of Altisource Separation </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 749 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Provision for (reversal of) liability for selected tax items </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,558 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,611 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (9,126 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Permanent differences </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 61 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 878 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Foreign tax differential </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (17,816 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (716 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (197 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Provision-to-return and other </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (580 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (115 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 413 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (493 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 2.5pt 30pt; text-indent: -10pt"> Actual income tax expense </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 76,585 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,672 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,545 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Net deferred tax assets were comprised of the following at December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Deferred tax assets: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Mortgage servicing rights amortization </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 32,654 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Net operating loss carryforward </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,068 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,078 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Net unrealized gains and losses on securities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,702 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,828 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Partnership losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,036 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,960 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Bad debt and allowance for loan losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,551 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,020 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued other liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,925 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,122 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Interest rate swaps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,813 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,371 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Tax residuals and deferred income on tax residuals </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,175 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,941 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Stock-based compensation expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,127 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,874 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued incentive compensation </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,210 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,755 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Foreign deferred assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,805 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,512 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued lease termination costs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,887 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,910 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Intangible asset amortization </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,070 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,641 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Valuation allowance on real estate </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 386 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Deferred income or loss on servicing advance receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 78,832 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Capital losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 665 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7,339 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,608 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 149,591 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 115,158 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Deferred tax liabilities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Mortgage servicing rights amortization </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,265 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Deferred income or loss on servicing advance receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,030 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,190 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 160 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7,190 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Net deferred tax assets </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 92,136 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 107,968 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We conduct periodic evaluations of positive and negative evidence to determine whether it is more likely than not that the deferred tax asset can be realized in future periods. Among the factors considered in this evaluation are estimates of future taxable income, future reversals of temporary differences, tax character and the impact of tax planning strategies that may be implemented, if warranted. As a result of this evaluation, we concluded that no valuation allowance was necessary at December 31, 2012 and 2011. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We recognized total interest and penalties of $(75), $1,257 and $182 in 2012, 2011 and 2010, respectively. At December 31, 2012 and 2011, accruals for interest and penalties were $1,561 and $1,636, respectively. As of December 31, 2012 and 2011, we had a total liability for selected tax items of $21,140 and $4,524, respectively, all of which if recognized would affect the effective tax rate. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Our major jurisdiction tax years that remain subject to examination are our U.S. federal tax return for the years ended December 31, 2008 through the present and our India corporate tax returns for the years ended March 31, 2004 through the present. Our U.S. federal tax return for the years ended December 31, 2008 and 2009 are currently under examination. A reconciliation of the beginning and ending amount of the liability for selected tax items is as follows for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding: 0 0 0 10pt"> Balance at January 1 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 4,524 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 2,913 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Additions based on tax positions related to current year </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,396 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Additions for tax positions of prior years </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 875 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,817 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Reductions for tax positions of prior years </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (206 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Lapses in statutes of limitation </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (93 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Balance at December 31 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 22,702 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,524 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> At December 31, 2012, we had a net operating loss carryforward tax benefit of $45,909 that related to realized built-in losses from the acquisition of Ocwen Asset Investment Corporation in 1999. Utilization of these carryforwards is subject to an annual IRC section 382 limitation of $5,742. These carryforwards will expire beginning 2019 through 2024. We have a $1,725 capital loss carry forward. We have no remaining capital loss carryforwards or tax credit carryforwards related to low-income housing tax credits. </p><br/> 0.35 -75000 1257000 182000 1561000 1636000 21140000 4524000 45909000 -1725000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; padding-left: 10pt"> Domestic </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 176,075 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="width: 3%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 118,708 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 33,394 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding-left: 10pt"> Foreign </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 81,433 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,287 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5,760 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 257,508 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 122,995 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 176075000 118708000 33394000 81433000 4287000 5760000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Current: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 46%; text-indent: -10pt; padding: 0 0 0 20pt"> Federal </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 10,621 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 13,894 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 8,836 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> State </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (759 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (195 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,049 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Foreign </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,968 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,079 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 2,033 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,830 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 14,778 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 11,918 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Deferred: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Federal </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 62,704 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 29,440 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (6,953 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> State </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (431 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 368 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (145 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Foreign </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,482 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 86 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 725 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Provision for valuation allowance on deferred tax assets </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 63,755 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 29,894 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,373 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Total </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 76,585 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,672 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,545 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 10621000 13894000 8836000 -759000 -195000 1049000 2968000 1079000 2033000 12830000 14778000 11918000 62704000 29440000 -6953000 -431000 368000 -145000 1482000 86000 725000 63755000 29894000 -6373000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 46%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected income tax expense at statutory rate </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 90,127 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 43,049 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 13,704 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Differences between expected and actual income tax expense: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> State tax, after Federal tax benefit </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,184 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 254 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 610 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Tax effect of Altisource Separation </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 749 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Provision for (reversal of) liability for selected tax items </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,558 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,611 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (9,126 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Permanent differences </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 15 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 61 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 878 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Foreign tax differential </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (17,816 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (716 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (197 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Provision-to-return and other </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (580 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (115 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 413 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (493 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 2.5pt 30pt; text-indent: -10pt"> Actual income tax expense </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 76,585 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,672 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,545 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 90127000 43049000 13704000 -1184000 254000 610000 749000 5558000 1611000 -9126000 15000 61000 878000 -17816000 -716000 -197000 -580000 -115000 413000 -493000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Deferred tax assets: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 60%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Mortgage servicing rights amortization </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 32,654 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Net operating loss carryforward </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 16,068 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,078 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Net unrealized gains and losses on securities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,702 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,828 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Partnership losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,036 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,960 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Bad debt and allowance for loan losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,551 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,020 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued other liabilities </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,925 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,122 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Interest rate swaps </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,813 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,371 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Tax residuals and deferred income on tax residuals </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,175 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,941 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Stock-based compensation expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,127 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,874 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued incentive compensation </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,210 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,755 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Foreign deferred assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,805 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,512 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Accrued lease termination costs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,887 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,910 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Intangible asset amortization </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,070 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,641 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Valuation allowance on real estate </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 386 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 884 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Deferred income or loss on servicing advance receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 78,832 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Capital losses </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 665 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7,339 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,608 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 149,591 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 115,158 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Deferred tax liabilities: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Mortgage servicing rights amortization </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,265 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Deferred income or loss on servicing advance receivables </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 7,030 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10pt"> Other </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,190 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 160 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 57,455 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7,190 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Net deferred tax assets </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 92,136 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 107,968 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> -32654000 16068000 18078000 2702000 11828000 11036000 9960000 6551000 8020000 2925000 5122000 3813000 4371000 4175000 3941000 3127000 2874000 6210000 2755000 1805000 2512000 1887000 1910000 2070000 1641000 386000 884000 78832000 665000 7339000 8608000 149591000 115158000 -56265000 7030000 1190000 160000 57455000 7190000 92136000 107968000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 60%; text-indent: -10pt; padding: 0 0 0 10pt"> Balance at January 1 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 4,524 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 2,913 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Additions based on tax positions related to current year </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 17,396 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Additions for tax positions of prior years </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 875 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,817 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Reductions for tax positions of prior years </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (206 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Lapses in statutes of limitation </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (93 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 2.5pt 10pt; text-indent: -10pt"> Balance at December 31 </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 22,702 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,524 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 4524000 2913000 17396000 875000 1817000 -206000 -93000 22702000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 23 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> DISCONTINUED OPERATIONS </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> On December 3, 2009, we finalized and consummated the transaction to dispose of our investment in Bankhaus Oswald Kruber GmbH &amp; Co. KG (BOK), a German banking entity, for proceeds of $11,443 and recognized a pre-tax gain of $4,034 on the disposition. Management concluded that BOK met and continued to meet the definition of a discontinued operation through the date of disposition. Accordingly, the results of BOK are classified as discontinued in the accompanying consolidated financial statements. For segment reporting purposes, the operations of BOK are included in Corporate Items and Other. In 2010, we recorded an income tax benefit of $4,383 to recognize the effect of additional tax losses. </p><br/> 11443000 4034000 4383000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 24 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> BASIC AND DILUTED EARNINGS PER SHARE </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Basic EPS excludes common stock equivalents and is calculated by dividing net income attributable to Ocwen common stockholders by the weighted average number of common shares outstanding during the year. We calculate diluted EPS by dividing net income attributable to OCN, as adjusted to add back preferred stock dividends and interest expense net of income tax on the Convertible Notes, by the weighted average number of common shares outstanding including the potential dilutive common shares related to outstanding stock options, restricted stock awards, the Preferred Shares and the Convertible Notes. The following is a reconciliation of the calculation of basic EPS to diluted EPS for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Basic EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 46%; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Net income attributable to Ocwen common stockholders </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 180,778 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 78,331 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 37,984 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Weighted average shares of common stock </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 133,912,643 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 104,507,055 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 100,273,121 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Basic EPS </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1.35 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.75 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.38 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Diluted EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Net income attributable to Ocwen common stockholders </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 180,778 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,331 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 37,984 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Preferred stock dividends (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Interest expense on Convertible Notes, net of income tax (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 107 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,187 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,122 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Adjusted net income attributable to Ocwen </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 181,885 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 79,518 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,106 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Weighted average shares of common stock </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 133,912,643 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 104,507,055 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 100,273,121 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Effect of dilutive elements: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Preferred Shares (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Convertible Notes (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,008,891 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,637,224 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,637,224 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Stock options </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,593,419 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,711,682 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,571,282 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Common stock awards </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,326 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,388 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Dilutive weighted average shares of common stock </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 138,521,279 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 111,855,961 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 107,483,015 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Diluted EPS </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1.31 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.71 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.36 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Stock options excluded from the computation of diluted EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Anti-dilutive(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 143,125 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,000 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Market-based(4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,535,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 468,750 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,615,000 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> The effect of our Preferred Shares on diluted EPS is computed using the if-converted method. We assumed no conversion to common shares for 2012 because the effect was anti-dilutive. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> Prior to the redemption of the Convertible Notes in March 2012, we also computed their effect on diluted EPS using the if-converted method. Interest expense and related amortization costs applicable to the Convertible Notes, net of income tax, were added back to net income. As disclosed in Note&#160;15, we issued 4,635,159 shares of common stock upon conversion of $56,410 of the Convertible Notes. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> These stock options were anti-dilutive because their exercise price was greater than the average market price of our stock. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (4) </td> <td style="text-indent: 0in; line-height: 12pt"> Shares that are issuable upon the achievement of certain performance criteria related to OCN&#8217;s stock price and an annualized rate of return to investors. See Note&#160;25 for additional information regarding these market-condition options. </td> </tr> </table><br/> 4635159 56410 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Basic EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 46%; text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Net income attributable to Ocwen common stockholders </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 180,778 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 78,331 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="width: 3%; padding-bottom: 2.5pt"> &#160; </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="width: 13%; border-bottom: Black 2.5pt double; text-align: right"> 37,984 </td> <td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Weighted average shares of common stock </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 133,912,643 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 104,507,055 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 100,273,121 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Basic EPS </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1.35 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.75 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.38 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-decoration: underline; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Diluted EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Net income attributable to Ocwen common stockholders </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 180,778 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 78,331 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 37,984 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Preferred stock dividends (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Interest expense on Convertible Notes, net of income tax (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 107 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,187 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,122 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Adjusted net income attributable to Ocwen </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 181,885 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 79,518 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,106 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Weighted average shares of common stock </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 133,912,643 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 104,507,055 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 100,273,121 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Effect of dilutive elements: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Preferred Shares (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Convertible Notes (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,008,891 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,637,224 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4,637,224 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Stock options </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,593,419 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,711,682 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,571,282 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Common stock awards </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 6,326 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 1,388 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Dilutive weighted average shares of common stock </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 138,521,279 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 111,855,961 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 107,483,015 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Diluted EPS </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 1.31 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.71 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.36 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Stock options excluded from the computation of diluted EPS: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Anti-dilutive(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 143,125 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 27,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,000 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Market-based(4) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,535,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 468,750 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 1,615,000 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 180778000 78331000 37984000 107000 1187000 1122000 181885000 79518000 39106000 1008891000 4637224000 4637224000 3593419000 2711682000 2571282000 6326000 1388000 143125 27031 20000 1535000 468750 1615000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 25 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> EMPLOYEE COMPENSATION AND BENEFIT PLANS </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We maintain a defined contribution plan to provide post retirement benefits to our eligible employees. We also maintain additional compensation plans for certain employees. We designed these plans to facilitate a pay-for-performance policy, further align the interests of our officers and key employees with the interests of our shareholders and assist in attracting and retaining employees vital to our long-term success. These plans are summarized below. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Retirement Plan </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We maintain a defined contribution 401(k) plan. We match 50% of each employee&#8217;s contributions, limited to 2% of the employee&#8217;s compensation. Our contributions to the 401(k) plan were $399, $238 and $233 for the years ended December 31, 2012, 2011 and 2010, respectively. </p><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in"> Annual Incentive Plan </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan (the AIP) is our primary incentive compensation plan for executives and other key employees. Under the terms of the AIP, participants can earn cash and equity-based awards as determined by the Compensation Committee of the Board of Directors (the Committee). The awards are generally based on objective performance criteria established by the Committee which includes corporate profitability, growth in our core businesses, meeting budget objectives and achieving cost savings through Six Sigma initiatives. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. For the past six years, we have awarded annual incentive compensation entirely in cash. We recognized $7,192, $9,472 and $6,031 of compensation expense during 2012, 2011 and 2010, respectively, related to annual incentive compensation awarded in cash. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In 2007, the stockholders approved the 2007 Equity Incentive Plan (the 2007 Equity Plan) to replace the 1991 Non-Qualified Stock Option Plan. The 2007 Equity Plan authorizes the grant of stock options, restricted stock or other equity-based awards to employees. At December 31, 2012, there were 8,895,599 shares of common stock remaining available for future issuance under the 2007 Equity Plan. In 2008, 2009, 2011 and 2012, we awarded stock options to certain members of senior management under the 2007 Equity Plan. These awards had the following characteristics in common: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 1pt solid"> Type of Award </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> Percent of Options Awarded </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 64%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> Vesting Period </p> </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Service Condition: </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> &#160; </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Time-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 25% </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Ratably over four years (&#188; on each of the four anniversaries of the grant date) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Market Condition: </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; font-weight: bold"> &#160; </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Performance-Based </td> <td> </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 50 </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Extraordinary Performance-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> <u>25</u> </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Total award </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; border-bottom: Black 2.5pt double"> <font style="text-underline-style: double">100</font>% </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Stock options awarded prior to 2008 consist of service condition awards that generally vest ratably over a five&#8211;year period including the award year. The contractual term of all options granted is ten years from the grant date, except where employment terminates by reason of retirement, in which case the time-based options will terminate no later than three years after such retirement or the end of the option term, whichever is earlier. The terms of the market-based options do not include a retirement provision. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Stock option activity for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 34%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Outstanding at beginning of year </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 7,894,728 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.48 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 8,084,953 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.03 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 9,278,581 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 4.97 </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Granted (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,160,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23.92 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 545,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12.83 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Exercised (2)(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,116,549 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.56 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (735,225 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.01 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (774,345 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.19 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Forfeited </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (419,283 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5.21 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Outstanding at end of year(4)(5) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,938,179 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 9.93 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,894,728 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.48 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,084,953 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.03 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Exercisable at end of year (4)(5)(6) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,569,432 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.04 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,947,228 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4.91 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,122,453 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.13 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee&#8217;s approval. See Note&#160;27 for additional information regarding Mr. Erbey&#8217;s stock and stock option holdings. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (4) </td> <td style="text-indent: 0in; line-height: 12pt"> Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (5) </td> <td style="text-indent: 0in; line-height: 12pt"> At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (6) </td> <td style="text-indent: 0in; line-height: 12pt"> The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Compensation expense related to options is measured based on the grant-date fair value of the options using an appropriate valuation model based on the vesting condition of the award. The fair value of the time-based options was determined using the Black-Scholes options pricing model, while a lattice (binomial) model was used to determine the fair value of the market-based options. Lattice (binomial) models incorporate ranges of assumptions for inputs. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The following assumptions were used to value the 2012 and 2011 stock option awards as of the grant dates: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Black-Scholes</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Binomial</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Black-Scholes</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Binomial</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 24%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Risk-free interest rate </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 1.20 &#8211; 1.60% </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 0.70% &#8211; 3.06% </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 1.57 </td> <td style="width: 2%; text-align: left"> % </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 0.35% &#8211; 2.74% </td> <td style="width: 2%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected stock price volatility (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 40% &#8211; 42% </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.87% &#8211; 42% </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 30% &#8211; 41% </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected dividend yield </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected option life (in years) (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.50 &#8211; 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.25 &amp; 5.75 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Contractual life (in years) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Fair value </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $6.49 &#8211; $10.48 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $3.41 &#8211; $8.87 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 5.51 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $4.66 &amp; $4.09 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> We estimate volatility based on the historical volatility of OCN&#8217;s common stock over the most recent period that corresponds with the estimated expected life of the option. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> For the options valued using the Black-Scholes model we determined the expected life based on historical experience with similar awards, giving consideration to the contractual term, exercise patterns and post vesting forfeitures. The expected term of the options valued using the lattice (binomial) model is derived from the output of the model. The lattice (binomial) model incorporates exercise assumptions based on analysis of historical data. For all options, the expected life represents the period of time that options granted were expected to be outstanding at the date of the award. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"> The following table sets forth equity-based compensation related to stock options and stock awards and the related excess tax benefit for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Equity-based compensation expense: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; padding-left: 20pt; text-indent: -10pt"> Stock option awards </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 2,776 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 926 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,088 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Stock awards </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 158 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Excess tax benefit related to share-based awards </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,142 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,157 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> As of December 31, 2012, unrecognized compensation costs related to non-vested stock options amounted to $18,308, which will be recognized over a weighted-average remaining requisite service period of 2.68 years. </p><br/> Plan We maintain a defined contribution 401(k) plan. We match 50% of each employee's contributions, limited to 2% of the employee's compensation. Our contributions to the 401(k) plan were $399, $238 and $233 for the years ended December 31, 2012, 2011 and 2010, respectively. 0.50 0.02 399 238 233 <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">Incentive Plan </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> The Ocwen Financial Corporation Amended 1998 Annual Incentive Plan (the AIP) is our primary incentive compensation plan for executives and other key employees. Under the terms of the AIP, participants can earn cash and equity-based awards as determined by the Compensation Committee of the Board of Directors (the Committee). The awards are generally based on objective performance criteria established by the Committee which includes corporate profitability, growth in our core businesses, meeting budget objectives and achieving cost savings through Six Sigma initiatives. The Committee may at its discretion adjust performance measurements to reflect significant unforeseen events. For the past six years, we have awarded annual incentive compensation entirely in cash. We recognized $7,192, $9,472 and $6,031 of compensation expense during 2012, 2011 and 2010, respectively, related to annual incentive compensation awarded in cash. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> In 2007, the stockholders approved the 2007 Equity Incentive Plan (the 2007 Equity Plan) to replace the 1991 Non-Qualified Stock Option Plan. The 2007 Equity Plan authorizes the grant of stock options, restricted stock or other equity-based awards to employees. At December 31, 2012, there were 8,895,599 shares of common stock remaining available for future issuance under the 2007 Equity Plan. In 2008, 2009, 2011 and 2012, we awarded stock options to certain members of senior management under the 2007 Equity Plan. These awards had the following characteristics in common: </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 1pt solid"> Type of Award </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> Percent of Options Awarded </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 64%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> Vesting Period </p> </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Service Condition: </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> &#160; </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Time-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 25% </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Ratably over four years (&#188; on each of the four anniversaries of the grant date) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Market Condition: </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; font-weight: bold"> &#160; </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Performance-Based </td> <td> </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 50 </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Extraordinary Performance-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> <u>25</u> </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Total award </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; border-bottom: Black 2.5pt double"> <font style="text-underline-style: double">100</font>% </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Stock options awarded prior to 2008 consist of service condition awards that generally vest ratably over a five&#8211;year period including the award year. The contractual term of all options granted is ten years from the grant date, except where employment terminates by reason of retirement, in which case the time-based options will terminate no later than three years after such retirement or the end of the option term, whichever is earlier. The terms of the market-based options do not include a retirement provision. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Stock option activity for the years ended December 31: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 34%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Outstanding at beginning of year </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 7,894,728 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.48 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 8,084,953 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.03 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 9,278,581 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 4.97 </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Granted (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,160,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23.92 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 545,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12.83 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Exercised (2)(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,116,549 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.56 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (735,225 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.01 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (774,345 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.19 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Forfeited </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (419,283 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5.21 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Outstanding at end of year(4)(5) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,938,179 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 9.93 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,894,728 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.48 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,084,953 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.03 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Exercisable at end of year (4)(5)(6) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,569,432 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.04 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,947,228 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4.91 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,122,453 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.13 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Stock options granted in 2012 includes 2,000,000 granted to Ocwen's Executive Chairman of the Board of Directors, William C. Erbey at an exercise price of $24.38 equal to the closing price of the stock on the day of the Committee&#8217;s approval. See Note&#160;27 for additional information regarding Mr. Erbey&#8217;s stock and stock option holdings. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> The total intrinsic value of stock options exercised, which is defined as the amount by which the market value of the stock on the date of exercise exceeds the exercise price, was $23,864, $4,114 and $4,265 for 2012, 2011 and 2010, respectively. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> In connection with the exercise of stock options during 2012, 2011 and 2010, employees delivered 33,605, 324,248 and 21,750 shares, respectively, of common stock to Ocwen as payment for the exercise price and the income tax withholdings on the compensation. As a result, a total of 1,082,944, 410,977 and 752,595 net shares of stock were issued in 2012, 2011 and 2010, respectively, related to the exercise of stock options. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (4) </td> <td style="text-indent: 0in; line-height: 12pt"> Excluding 1,535,000 market-based options that have not met their performance criteria, the net aggregate intrinsic value of stock options outstanding and stock options exercisable at December 31, 2012 was $204,657 and $164,591, respectively. A total of 6,335,000 market-based options were outstanding at December 31, 2012, of which 2,727,810 were exercisable. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (5) </td> <td style="text-indent: 0in; line-height: 12pt"> At December 31, 2012, the weighted average remaining contractual term of options outstanding and options exercisable was 4.2 years and 5.3 years, respectively. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (6) </td> <td style="text-indent: 0in; line-height: 12pt"> The total fair value of the stock options that vested and became exercisable during 2012, 2011 and 2010, based on grant-date fair value, was $2,208, $1,342 and $1,948, respectively. </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Compensation expense related to options is measured based on the grant-date fair value of the options using an appropriate valuation model based on the vesting condition of the award. The fair value of the time-based options was determined using the Black-Scholes options pricing model, while a lattice (binomial) model was used to determine the fair value of the market-based options. Lattice (binomial) models incorporate ranges of assumptions for inputs.</p> 7192 9472 6031 8895599 P5Y ten 2000000 24.38 23864 4114 4265 21750 752595 1535000 204657 164591 6335000 2727810 P4Y73D P5Y109D 2208 1342 1948 18308 P2Y248D <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 20%; padding-right: 5.4pt; padding-left: 5.4pt"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 1pt solid"> Type of Award </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 10%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid; text-align: center"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"> Percent of Options Awarded </p> </td> <td style="width: 3%"> &#160; </td> <td style="width: 64%; padding-right: 5.4pt; padding-left: 5.4pt; border-bottom: Black 1pt solid"> <p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> Vesting Period </p> </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Service Condition: </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> &#160; </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Time-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 25% </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Ratably over four years (&#188; on each of the four anniversaries of the grant date) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Market Condition: </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; font-weight: bold"> &#160; </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Performance-Based </td> <td> </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> 50 </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr style="vertical-align: top"> <td style="padding-right: 5.4pt; padding-left: 0.25in; text-indent: -9pt; line-height: 12pt"> Extraordinary Performance-Based </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt"> <u>25</u> </td> <td> &#160; </td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> Over three years beginning with &#188; vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years (&#188; on the next three anniversaries of the achievement of the market condition) </td> </tr> <tr> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 9pt; text-indent: -9pt; line-height: 12pt; font-weight: bold"> Total award </td> <td> &#160; </td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 12pt; border-bottom: Black 2.5pt double"> <font style="text-underline-style: double">100</font>% </td> <td> &#160; </td> <td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-indent: 0in; line-height: 12pt"> &#160; </td> </tr> </table> 0.25 Ratably over four years ( on each of the four anniversaries of the grant date) 0.50 Over three years beginning with vesting on the date that the stock price has at least doubled over the exercise price and the compounded annual gain over the exercise price is at least 20% and then ratably over three years ( on the next three anniversaries of the achievement of the market condition) 0.25 Over three years beginning with vesting on the date that the stock price has at least tripled over the exercise price and the compounded annual gain over the exercise price is at least 25% and then ratably over three years ( on the next three anniversaries of the achievement of the market condition) 1.00 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Number of<br /> Options </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; text-align: center"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Weighted<br /> Average<br /> Exercise<br /> Price </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: center"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 34%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Outstanding at beginning of year </td> <td style="width: 1%"> &#160; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 7,894,728 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.48 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 8,084,953 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 5.03 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 8%; text-align: right"> 9,278,581 </td> <td style="width: 1%; text-align: left"> </td> <td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 8%; text-align: right"> 4.97 </td> <td style="width: 1%; text-align: left"> </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Granted (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,160,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 23.92 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 545,000 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 12.83 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Exercised (2)(3) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (1,116,549 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3.56 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (735,225 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.01 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (774,345 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.19 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> Forfeited </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (419,283 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 5.21 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Outstanding at end of year(4)(5) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,938,179 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 9.93 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 7,894,728 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.48 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 8,084,953 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.03 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; padding: 0 0 0 10pt; text-indent: -10pt"> Exercisable at end of year (4)(5)(6) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5,569,432 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.04 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,947,228 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4.91 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 4,122,453 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 5.13 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 7894728 5.48 8084953 5.03 9278581 4.97 2160000 23.92 545000 12.83 -1116549 3.56 -735225 6.01 -774345 4.19 -419283 5.21 8938179 9.93 7894728 5.48 8084953 5.03 5569432 5.04 4947228 4.91 4122453 5.13 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Black-Scholes</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Binomial</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Black-Scholes</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"> <p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0in"> <b>Binomial</b> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="width: 24%; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Risk-free interest rate </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 1.20 &#8211; 1.60% </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 0.70% &#8211; 3.06% </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 1.57 </td> <td style="width: 2%; text-align: left"> % </td> <td style="width: 3%"> &#160; </td> <td style="width: 2%; text-align: left"> &#160; </td> <td style="width: 12%; text-align: right"> 0.35% &#8211; 2.74% </td> <td style="width: 2%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected stock price volatility (1) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 40% &#8211; 42% </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.87% &#8211; 42% </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41 </td> <td style="text-align: left"> % </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 30% &#8211; 41% </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected dividend yield </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Expected option life (in years) (2) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.50 &#8211; 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6.50 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 4.25 &amp; 5.75 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: transparent"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Contractual life (in years) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> Fair value </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $6.49 &#8211; $10.48 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $3.41 &#8211; $8.87 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 5.51 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> $4.66 &amp; $4.09 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 1.20 - 1.60% 0.70% - 3.06% 1.57% 0.35% - 2.74% 40% - 42% 6.87% - 42% 41% 30% - 41% 6.50 4.50 - 6.50 6.50 4.25 & 5.75 10 10 $6.49 - $10.48 $3.41 - $8.87 $5.51 $4.66 & $4.09 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-bottom: 1pt; padding-left: 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2012 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2011 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> 2010 </td> <td style="font-weight: bold; text-align: center; padding-bottom: 1pt"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Equity-based compensation expense: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 46%; text-align: left; padding-left: 20pt; text-indent: -10pt"> Stock option awards </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 2,776 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 926 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 13%; text-align: right"> 1,088 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10pt"> Stock awards </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 158 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt"> Excess tax benefit related to share-based awards </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 11,031 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,142 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,157 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 2776000 926000 1088000 158000 11031000 2142000 3157000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> NOTE 26 </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> BUSINESS SEGMENT REPORTING </td> </tr> </table><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Our business segments reflect the internal reporting that we use to evaluate operating performance of services and to assess the allocation of our resources. A brief description of our current business segments is as follows: </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Servicing.</i> Through this segment, we provide residential and commercial mortgage loan servicing, special servicing and asset management services. We earn fees for providing these services to owners of the mortgage loans and foreclosed real estate. In most cases, we provide these services either because we purchased the MSRs from the owner of the mortgage or because we entered into a subservicing or special servicing agreement with the entity that owns the MSR. Subprime loans represent the largest category, or stratum of the residential loans that we service. Subprime loans represent residential loans that were made to borrowers who generally did not qualify under GSE guidelines (nonconforming loans) or have subsequently become delinquent. This segment is primarily comprised of our core residential servicing business. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Lending.</i> In addition to acquiring Homeward&#8217;s residential servicing business, we also acquired its loan origination platform as part of the Homeward Acquisition which closed on December 27, 2012. The Lending segment is focused on originating and purchasing agency-conforming residential mortgage loans mainly through our correspondent lending business. In addition, in 2012, Homeward commenced a direct lending business to initially pursue refinancing opportunities from its existing portfolio, where permitted. The loans are typically sold shortly after origination into a liquid market on a servicing retained basis and are measured at fair value. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <i>Corporate Items and Other.</i> Corporate Items and Other includes items of revenue and expense that are not directly related to a business, business activities that are individually insignificant, interest income on short-term investments of cash, corporate debt and certain corporate expenses. Business activities that are not considered to be of continuing significance include subprime loans held for sale (at lower of cost or fair value), investments in unconsolidated entities and affordable housing investment activities. Corporate Items and Other also includes the diversified fee-based business that we acquired as part of the Homeward Acquisition on December 27, 2012 and expect to sell to Altisource in March 2013. Services provided by this business include property valuation, REO management, title and closing and advisory. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> We allocate interest income and expense to each business segment for funds raised or for funding of investments made, including interest earned on cash balances and short-term investments and interest incurred on corporate debt. We also allocate expenses generated by corporate support services to each business segment. </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> Financial information for our segments is as follows: </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Eliminations </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> Results of Operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="font-family: Cambria"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> <td style="font-family: Cambria; text-align: right"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 35%; text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 840,648 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 141 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,122 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (905 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 845,006 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 344,333 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 409 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 19,667 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (484 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 363,925 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 496,315 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (268 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (14,545 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (421 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 481,081 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 309 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,011 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,329 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (221,948 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (514 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (993 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (223,455 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (13 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 214 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,069 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 421 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,447 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (221,952 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 9 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,051 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 421 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (223,573 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 274,363 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (259 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (16,596 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 257,508 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt; width: 35%"> For the year ended December 31, 2011 </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="font-family: Cambria; width: 1%"> &#160; </td> <td style="font-family: Cambria; text-align: left; width: 1%"> &#160; </td> <td style="font-family: Cambria; text-align: right; width: 10%"> &#160; </td> <td style="font-family: Cambria; text-align: left; width: 1%"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 494,871 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,348 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,289 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 495,930 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 231,238 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,971 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (625 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 239,584 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 263,633 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,623 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (664 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 256,346 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 110 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,766 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,876 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (132,574 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (196 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (132,770 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,711 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (14,832 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,457 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (127,753 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,262 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (133,351 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 135,880 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (12,885 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 122,995 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2010 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="font-family: Cambria"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> <td style="font-family: Cambria; text-align: right"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 359,798 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,112 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,529 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 360,381 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 200,108 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 37,130 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (764 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 236,474 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 159,690 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (35,018 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (765 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 123,907 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 207 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,652 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,859 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (80,514 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (5,409 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (85,923 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) (5) (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,188 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,266 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 765 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,689 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (81,495 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4,023 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 765 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (84,753 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 78,195 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (39,041 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Eliminations </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Total Assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 35%; text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2012 </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 4,461,755 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 551,733 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 658,394 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,671,882 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2011 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,301,371 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 426,653 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,728,024 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2010 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,495,966 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 425,443 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,921,409 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt"> (1) </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt"> Intersegment billings for services rendered to other segments are recorded as revenues, as contra-expense or as other income, depending on the type of service that is rendered. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (2) </td> <td style="text-indent: 0in; line-height: 12pt"> Servicing has a contractual right to receive interest income on float balances. However, Corporate controls investment decisions associated with the float balances. Accordingly, Servicing receives revenues generated by those investments that are associated with float balances but are reported in Corporate Items and Other. Gains and losses associated with corporate investment decisions are recognized in Corporate Items and Other. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (3) </td> <td style="text-indent: 0in; line-height: 12pt"> Depreciation and amortization expense are as follows: </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2012: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,469 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 8 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 4,243 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,720 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 72,897 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 72,897 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,259 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,259 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,718 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,718 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2011: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,410 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 1,750 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,160 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,996 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,996 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,853 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,853 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,764 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,764 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2010: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 5,916 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 1,596 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 7,512 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,455 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,455 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,217 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 172 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,389 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,086 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,086 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 5%; text-indent: 0in; line-height: 12pt"> (4) </td> <td style="width: 95%; text-indent: 0in; line-height: 12pt"> Operating expenses for 2011 and 2010 include non-recurring transaction-related expenses associated with the Litton and HomEq acquisitions of $50,340 and $52,603, respectively, recorded in the Servicing segment. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (5) </td> <td style="text-indent: 0in; line-height: 12pt"> Other income (expense) for 2010 includes gains of $6,036 recorded in Corporate Items and Other from sales of our investments in affordable housing projects. </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt"> (6) </td> <td style="text-indent: 0in; line-height: 12pt"> Other income (expense) for 2010 includes losses on auction rate securities of $7,909 recorded in Corporate Items and Other. </td> </tr> </table><br/> 50340000 52603000 6036000 7909000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Eliminations </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> Results of Operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2012 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="font-family: Cambria"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> <td style="font-family: Cambria; text-align: right"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 35%; text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 840,648 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 141 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,122 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> (905 </td> <td style="width: 1%; text-align: left"> ) </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 845,006 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 344,333 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 409 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 19,667 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (484 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 363,925 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 496,315 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (268 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (14,545 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (421 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 481,081 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 309 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,011 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,329 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (221,948 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (514 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (993 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (223,455 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (13 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 214 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,069 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 421 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (8,447 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (221,952 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 9 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (2,051 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 421 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (223,573 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 274,363 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (259 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (16,596 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 257,508 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt; width: 35%"> For the year ended December 31, 2011 </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="width: 1%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="text-align: right; width: 10%"> &#160; </td> <td style="text-align: left; width: 1%"> &#160; </td> <td style="font-family: Cambria; width: 1%"> &#160; </td> <td style="font-family: Cambria; text-align: left; width: 1%"> &#160; </td> <td style="font-family: Cambria; text-align: right; width: 10%"> &#160; </td> <td style="font-family: Cambria; text-align: left; width: 1%"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 494,871 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,348 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,289 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 495,930 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 231,238 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,971 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (625 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 239,584 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 263,633 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,623 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (664 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 256,346 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 110 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,766 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,876 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (132,574 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (196 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (132,770 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,711 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (14,832 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,457 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (127,753 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (6,262 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 664 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (133,351 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 135,880 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (12,885 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 122,995 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-decoration: underline; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2010 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="font-family: Cambria"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> <td style="font-family: Cambria; text-align: right"> &#160; </td> <td style="font-family: Cambria; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Revenue (1) (2) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 359,798 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,112 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> (1,529 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 360,381 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Operating expenses (1) (3) (4) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 200,108 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 37,130 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (764 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 236,474 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10pt"> Income (loss) from operations </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 159,690 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (35,018 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (765 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 123,907 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Other income (expense): </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 207 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,652 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 10,859 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 30pt"> Interest expense </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (80,514 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (5,409 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> (85,923 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 30pt; text-indent: -10pt"> Other (1) (2) (5) (6) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (1,188 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,266 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 765 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (9,689 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 40pt; text-indent: -10pt"> Other income (expense), net </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (81,495 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4,023 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 765 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (84,753 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 2.5pt 20pt; text-indent: -10pt"> Income (loss) from continuing operations before income taxes </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 78,195 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="padding-bottom: 2.5pt; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> (39,041 </td> <td style="padding-bottom: 2.5pt; text-align: left"> ) </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> &#8212; </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 39,154 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Eliminations </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; text-indent: -10pt; padding: 0 0 0 10pt"> Total Assets </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 35%; text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2012 </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 4,461,755 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 551,733 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 658,394 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> &#8212; </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,671,882 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2011 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,301,371 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 426,653 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,728,024 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> December 31, 2010 </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,495,966 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 425,443 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,921,409 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> </table> 840648000 141000 5122000 -905000 845006000 344333000 409000 19667000 -484000 496315000 -268000 -14545000 -421000 481081000 9000 309000 8011000 221948000 514000 993000 -13000 214000 -9069000 421000 -8447000 -221952000 9000 -2051000 421000 -223573000 274363000 -259000 -16596000 494871000 2348000 -1289000 495930000 231238000 8971000 -625000 263633000 -6623000 -664000 256346000 110000 8766000 132574000 196000 4711000 -14832000 664000 -9457000 -127753000 -6262000 664000 -133351000 135880000 -12885000 359798000 2112000 -1529000 360381000 200108000 37130000 -764000 159690000 -35018000 -765000 123907000 207000 10652000 80514000 5409000 -1188000 -9266000 765000 -9689000 -81495000 -4023000 765000 -84753000 78195000 -39041000 4461755000 551733000 658394000 4301371000 426653000 2495966000 425443000 2921409000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10pt; text-indent: -10pt"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Servicing </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Lending </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Corporate Items and Other </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> <td style="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> Business Segments Consolidated </td> <td style="padding-bottom: 1pt; font-weight: bold; border-bottom: Black 1pt solid"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2012: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 48%; text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 1,469 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 8 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 4,243 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 5,720 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 72,897 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 72,897 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,259 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,259 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,718 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 3,718 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2011: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 2,410 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 1,750 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 4,160 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,996 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 42,996 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,853 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 8,853 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,764 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,764 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10pt; padding: 0 0 0 10pt"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10pt; padding: 0 0 0 10pt"> For the year ended December 31, 2010: </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Depreciation expense </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 5,916 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 1,596 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> $ </td> <td style="text-align: right"> 7,512 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of MSRs </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,455 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 31,455 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt discount </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,217 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 172 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 5,389 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; text-indent: -10pt; padding: 0 0 0 20pt"> Amortization of debt issuance costs &#8211; SSTL </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,086 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 2,086 </td> <td style="text-align: left"> &#160; </td> </tr> </table> 1469000 8000 4243000 5720000 72897000 3259000 3718000 2410000 1750000 4160000 42996000 8853000 9764000 5916000 1596000 7512000 31455000 5217000 172000 2086000 <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; text-indent: 0in"> <font style="font-size: 10pt"><b>NOTE 27</b></font> </td> <td style="width: 91%; text-indent: 0in"> <font style="font-size: 10pt"><b>RELATED PARTY TRANSACTIONS</b></font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Relationship with Executive Chairman of the Board of Directors</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Ocwen&#8217;s Executive Chairman of the Board of Directors, William C. Erbey, also serves as Chairman of the Board for both Altisource and HLSS. As a result, he has obligations to Ocwen as well as to Altisource and HLSS. Mr. Erbey currently owns approximately 13% of the common stock of Ocwen, approximately 23% of the common stock of Altisource and approximately 2% of the common stock of HLSS. At December 31, 2012, Mr. Erbey also held 4,684,177 options to purchase OCN common stock, of which 2,384,177 were exercisable. He also held 894,728 options to purchase Altisource (ASPS) common stock, including 844,728 which were exercisable.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Mr. Erbey has relocated to St. Croix, USVI to serve as Chairman and CEO of OMS. On August 21, 2012, the Ocwen Board of Directors approved Ocwen&#8217;s purchase of Mr. Erbey&#8217;s residence in Atlanta, Georgia, for his cost-basis in the home of $6,477. Ocwen also incurred approximately $24 of related transaction costs. The transaction is consistent with Ocwen&#8217;s standard senior executive relocation policy and practice. We have classified our investment in this property as real estate held for sale, a component of Other assets. We account for the excess of cost over fair value (less costs to sell) as a valuation allowance and include changes in the valuation allowance in Loss on loans held for sale, net.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0; text-indent: 0"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Relationship with Altisource</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">For purposes of governing certain of the ongoing relationships between Ocwen and Altisource after the Separation, and to provide for an orderly transition to the status of two independent companies, we entered into certain agreements with Altisource. Under the Transition Services Agreement, the companies provide to each other services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, law, strategic planning, compliance and other areas. The Transition Services Agreement was amended on August 10, 2011, in order to extend the initial twenty-four month term for an additional twelve months, and it expired on August 10, 2012.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Under the Services Agreement, Altisource provides various business process outsourcing services, such as valuation services and property preservation and inspection services, among other things. Altisource also provides certain technology products and support services to Ocwen under the Technology Products Services Agreement and the Data Center and Disaster Recovery Services Agreement both of which had an initial term of eight years from the spin-off date. In addition, under the Data Access and Services Agreement entered into in the third quarter of 2011, Ocwen has agreed to make available to Altisource certain data from Ocwen&#8217;s servicing portfolio in exchange for a per asset fee.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On August 10, 2012, OMS entered into a Support Services Agreement with Altisource setting forth certain services OMS and Altisource will provide to each other which are similar to the services the parties provided to each other pursuant to the Transition Services Agreement. The Support Services Agreement has an initial term of five years. OMS also entered into a Services Agreement, a Technology Products Services Agreement and a Center and Disaster Recovery Services Agreement under which Altisource will provide services similar to those provided under the similarly titled agreements entered into in connection with the Separation. These agreements all have an initial term of eight years.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Certain services provided by Altisource under these contracts are charged to the borrower and/or loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Our business is currently dependent on many of the services and products provided under these long-term contracts which are effective for up to eight years with renewal rights. We believe the rates charged under these agreements are market rates as they are materially consistent with one or more of the following: the fees charged by Altisource to other customers for comparable services and the rates Ocwen pays to or observes from other service providers.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In addition to the revenues and expenses we recorded associated with the agreements discussed above, during 2010 and 2011 we sold certain equipment to Altisource that we had acquired from HomEq and Litton. As disclosed in Note&#160;2, these assets consisted primarily of computer hardware and software and furniture and fixtures and were sold for cash proceeds equal to the acquisition fair value, as adjusted. As a result, we recognized no gain or loss on these sales. Also, in 2010 we entered into an agreement to sublease from Altisource our principal executive office space in Atlanta, Georgia.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">As disclosed in Note&#160;1, Ocwen and Altisource each hold a 49% equity interest in Correspondent One, a company that facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2012, Ocwen had invested $13,432 in Correspondent One.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On December 27, 2012, we entered into a senior unsecured term loan facility agreement (the Unsecured Loan Agreement) with Altisource and borrowed $75 million. The proceeds of this loan were used to fund a portion of the Homeward Acquisition. Borrowings under the Unsecured Loan Agreement bear interest at a rate equal to the one-month Eurodollar Rate (1-Month LIBOR) plus 675 basis points with a Eurodollar Rate floor of 150 basis points.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The final maturity date for the Unsecured Loan Agreement is March 1, 2017, and it does not provide for any scheduled amortization. Borrowings under the Unsecured Loan Agreement must be repaid when the SSTL is paid in full. However, if the SSTL is not paid off before October 31, 2013, Altisource may require that we convert all or a portion of the outstanding principal and unpaid interest accrued on the Unsecured Loan into any of the following, at Altisource&#8217;s discretion (i) an investment in or of Homeward, (ii) property or assets of Homeward, (iii) equity interests of Homeward, or (iv) if Altisource and Ocwen agree, any other assets of Ocwen or its subsidiaries. Any such conversion will be based upon mutually agreeable terms and conditions, including without limitation, conversion price, as reasonably negotiated in good faith between Ocwen and Altisource. Unless Altisource otherwise agrees in writing, the conversion must take place on or prior to November 15, 2013. The Unsecured Loan Agreement contains provisions equivalent to those found in the SSTL with respect to covenants and events of default.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Relationship with HLSS</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">As disclosed in Note&#160;3</font>, Ocwen and HLSS Management entered into an agreement to provide to each other certain professional services including valuation analysis of potential MSR acquisitions, treasury management services and other similar services, legal, licensing and regulatory compliance support services, risk management services and other similar services. </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The following table summarizes our transactions with related parties for the years ended December 31, and amounts receivable from or payable to related parties:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2012</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2011</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2010</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; text-indent: -10; padding-left: 10"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Revenues and Expenses:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Altisource:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 58%; text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Revenues</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">16,532</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">12,242</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">13,520</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Expenses</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">28,987</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">23,226</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">20,082</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>HLSS:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Revenues</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">195</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Expenses</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">2,432</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2012</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2011</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-family: Cambria; font-weight: bold; text-align: left; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Net Receivable (Payable)</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif">Altisource</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 15%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(5,971</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 15%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(1,965</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif">HLSS</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(25,524</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10; padding-left: 10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(31,495</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(1,965</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> </tr> </table><br/> Relationship with Executive Chairman of the Board of Directors Ocwen's Executive Chairman of the Board of Directors, William C. Erbey, also serves as Chairman of the Board for both Altisource and HLSS. As a result, he has obligations to Ocwen as well as to Altisource and HLSS. Mr. Erbey currently owns approximately 13% of the common stock of Ocwen, approximately 23% of the common stock of Altisource and approximately 2% of the common stock of HLSS. At December 31, 2012, Mr. Erbey also held 4,684,177 options to purchase OCN common stock, of which 2,384,177 were exercisable. He also held 894,728 options to purchase Altisource (ASPS) common stock, including 844,728 which were exercisable. Mr. Erbey has relocated to St. Croix, USVI to serve as Chairman and CEO of OMS. On August 21, 2012, the Ocwen Board of Directors approved Ocwen's purchase of Mr. Erbey's residence in Atlanta, Georgia, for his cost-basis in the home of $6,477. Ocwen also incurred approximately $24 of related transaction costs. The transaction is consistent with Ocwen's standard senior executive relocation policy and practice. We have classified our investment in this property as real estate held for sale, a component of Other assets. We account for the excess of cost over fair value (less costs to sell) as a valuation allowance and include changes in the valuation allowance in Loss on loans held for sale, net. 0.13 0.23 0.02 4684177 2384177 894728 844728 6477000 24000 Relationship with Altisource For purposes of governing certain of the ongoing relationships between Ocwen and Altisource after the Separation, and to provide for an orderly transition to the status of two independent companies, we entered into certain agreements with Altisource. Under the Transition Services Agreement, the companies provide to each other services in such areas as human resources, vendor management, corporate services, six sigma, quality assurance, quantitative analytics, treasury, accounting, tax matters, risk management, law, strategic planning, compliance and other areas. The Transition Services Agreement was amended on August 10, 2011, in order to extend the initial twenty-four month term for an additional twelve months, and it expired on August 10, 2012. Under the Services Agreement, Altisource provides various business process outsourcing services, such as valuation services and property preservation and inspection services, among other things. Altisource also provides certain technology products and support services to Ocwen under the Technology Products Services Agreement and the Data Center and Disaster Recovery Services Agreement both of which had an initial term of eight years from the spin-off date. In addition, under the Data Access and Services Agreement entered into in the third quarter of 2011, Ocwen has agreed to make available to Altisource certain data from Ocwen's servicing portfolio in exchange for a per asset fee. On August 10, 2012, OMS entered into a Support Services Agreement with Altisource setting forth certain services OMS and Altisource will provide to each other which are similar to the services the parties provided to each other pursuant to the Transition Services Agreement. The Support Services Agreement has an initial term of five years. OMS also entered into a Services Agreement, a Technology Products Services Agreement and a Center and Disaster Recovery Services Agreement under which Altisource will provide services similar to those provided under the similarly titled agreements entered into in connection with the Separation. These agreements all have an initial term of eight years. Certain services provided by Altisource under these contracts are charged to the borrower and/or loan investor. Accordingly, such services, while derived from our loan servicing portfolio, are not reported as expenses by Ocwen. These services include residential property valuation, residential property preservation and inspection services, title services and real estate sales. Our business is currently dependent on many of the services and products provided under these long-term contracts which are effective for up to eight years with renewal rights. We believe the rates charged under these agreements are market rates as they are materially consistent with one or more of the following: the fees charged by Altisource to other customers for comparable services and the rates Ocwen pays to or observes from other service providers. In addition to the revenues and expenses we recorded associated with the agreements discussed above, during 2010 and 2011 we sold certain equipment to Altisource that we had acquired from HomEq and Litton. As disclosed in Note2, these assets consisted primarily of computer hardware and software and furniture and fixtures and were sold for cash proceeds equal to the acquisition fair value, as adjusted. As a result, we recognized no gain or loss on these sales. Also, in 2010 we entered into an agreement to sublease from Altisource our principal executive office space in Atlanta, Georgia. As disclosed in Note1, Ocwen and Altisource each hold a 49% equity interest in Correspondent One, a company that facilitates the purchase of conforming and government-guaranteed residential mortgages from approved mortgage originators and resells the mortgages to secondary market investors. As of December 31, 2012, Ocwen had invested $13,432 in Correspondent One. On December 27, 2012, we entered into a senior unsecured term loan facility agreement (the Unsecured Loan Agreement) with Altisource and borrowed $75 million. The proceeds of this loan were used to fund a portion of the Homeward Acquisition. Borrowings under the Unsecured Loan Agreement bear interest at a rate equal to the one-month Eurodollar Rate (1-Month LIBOR) plus 675 basis points with a Eurodollar Rate floor of 150 basis points. The final maturity date for the Unsecured Loan Agreement is March 1, 2017, and it does not provide for any scheduled amortization. Borrowings under the Unsecured Loan Agreement must be repaid when the SSTL is paid in full. However, if the SSTL is not paid off before October 31, 2013, Altisource may require that we convert all or a portion of the outstanding principal and unpaid interest accrued on the Unsecured Loan into any of the following, at Altisource's discretion (i) an investment in or of Homeward, (ii) property or assets of Homeward, (iii) equity interests of Homeward, or (iv) if Altisource and Ocwen agree, any other assets of Ocwen or its subsidiaries. Any such conversion will be based upon mutually agreeable terms and conditions, including without limitation, conversion price, as reasonably negotiated in good faith between Ocwen and Altisource. Unless Altisource otherwise agrees in writing, the conversion must take place on or prior to November 15, 2013. The Unsecured Loan Agreement contains provisions equivalent to those found in the SSTL with respect to covenants and events of default. 0.49 13432 -75000000 Relationship with HLSS As disclosed in Note3 , Ocwen and HLSS Management entered into an agreement to provide to each other certain professional services including valuation analysis of potential MSR acquisitions, treasury management services and other similar services, legal, licensing and regulatory compliance support services, risk management services and other similar services. <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2012</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2011</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>2010</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; text-indent: -10; padding-left: 10"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Revenues and Expenses:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="font-weight: bold; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Altisource:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 58%; text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Revenues</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">16,532</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">12,242</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 9%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">13,520</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Expenses</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">28,987</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">23,226</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">20,082</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>HLSS:</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Revenues</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">195</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-indent: -10; padding-left: 30pt"> <font style="font: 10pt Times New Roman, Times, Serif">Expenses</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">2,432</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> </table> 16532000 12242000 13520000 28987000 23226000 20082000 195000 2432000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="font-weight: bold; text-align: center; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2012</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td style="font-family: Cambria; font-weight: bold; padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></font> </td> <td colspan="2" style="font-family: Cambria; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2011</b></font> </td> <td style="padding-bottom: 1pt; font-family: Cambria; font-weight: bold"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-family: Cambria; font-weight: bold; text-align: left; padding-left: 10; text-indent: -10"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Net Receivable (Payable)</b></font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="width: 60%; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif">Altisource</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 15%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(5,971</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="width: 3%"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="width: 15%; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(1,965</font> </td> <td style="width: 1%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 1pt; text-indent: -10; padding-left: 20pt"> <font style="font: 10pt Times New Roman, Times, Serif">HLSS</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(25,524</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">&#8212;</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; text-indent: -10; padding-left: 10"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(31,495</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> <td style="padding-bottom: 1pt"> <font style="font: 10pt Times New Roman, Times, Serif">&#160;</font> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">$</font> </td> <td style="border-bottom: Black 1pt solid; text-align: right"> <font style="font: 10pt Times New Roman, Times, Serif">(1,965</font> </td> <td style="padding-bottom: 1pt; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif">)</font> </td> </tr> </table> -5971000 -1965000 -25524000 -31495000 -1965000 <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE 28</b></font> </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>REGULATORY REQUIREMENTS</b></font> </td> </tr> </table><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Our business is subject to extensive regulation by federal, state and local governmental authorities, including the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), the SEC and various state agencies that license, audit and conduct examinations of our mortgage originations, servicing and collection activities in a number of states. The CFPB asserts supervisory authority (including the authority to conduct examinations) over Ocwen and its affiliates, including Homeward. From time to time, we also receive requests from federal, state and local agencies for records, documents and information relating to our policies, procedures and practices regarding our loan origination, loan servicing and debt collection business activities. We incur significant ongoing costs to comply with new and existing laws and governmental regulation of our business.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We must comply with a number of federal, state and local consumer protection laws including, among others, the Gramm-Leach-Bliley Act, the Fair Debt Collection Practices Act, the Real Estate Settlement Procedures Act (RESPA), the Truth in Lending Act (TILA), the Fair Credit Reporting Act, the Servicemembers Civil Relief Act, Homeowners Protection Act, the Federal Trade Commission Act and, more recently, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and state mortgage origination, mortgage servicing and foreclosure laws. These laws apply to loan origination, loan servicing, debt collection, use of credit reports, safeguarding of non&#8722;public personally identifiable information about our customers, foreclosure and claims handling, investment of and interest payments on escrow balances and escrow payment features, and mandate certain disclosures and notices to borrowers. These requirements can and do change as statutes and regulations are enacted, promulgated or amended.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On January 17, 2013, the CFPB issued a set of new rules under the Dodd-Frank Act that will require mortgage servicers and mortgage holders, as applicable, to (i) with respect to adjustable-rate mortgage transactions, provide notices to borrowers in advance of any adjustment to the initial interest rate the borrower&#8217;s mortgage loan and in advance of any later adjustments to the interest rate resulting in changes in the borrower&#8217;s monthly payment, (ii) provide enhanced disclosures to borrowers relating to mortgage servicing transfers, (iii) provide monthly mortgage statements to borrowers that explicitly breakdown break down outstanding principal, due date, amount due (principal, interest and escrow amounts), transaction activity in the last payment cycle and past payment history, (iv) establish a reasonable basis for requiring lender-placed, or &#8220;force-placed&#8221; insurance before charging a fee for it and provide advance notices and reminder notices to borrowers before purchasing force place insurance, (v) provide early outreach (by live contact and written notice) to delinquent borrowers regarding options to avoid foreclosure, (vi) provide that payments be credited to borrower accounts the day they are received, (vii) require borrower account records be kept current, (viii) provide increased accessibility to servicing staff during loss mitigation efforts, (ix) adopt and follow prescribed loss mitigation timelines for receipt, evaluation and denial or approval of loss mitigation or foreclosure avoidance options, and (x) investigate errors and respond to borrower notices of error within 30 days and timely respond to borrower requests for loan account information, among other things. The new rules are scheduled to go into effect on January 10, 2014 and could cause us to modify servicing processes and procedures and to incur additional costs in connection therewith. Certain of these requirements, if not met, could result in private causes of action under the applicable federal laws (for example, TILA or RESPA) or administrative or civil fines or penalties imposed by regulators with supervisory authority over Ocwen, such as the CFPB.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">The CFPB has also promulgated an extensive array of final regulations under the Dodd-Frank Act governing mortgage loan originations. As with the mortgage servicing regulations, the CFPB finalized these regulations in January 2013 to become effective in January 2014. Compliance with these regulations likely will lead to increased costs and expenditures for compliance staff, systems and resources. The CFPB&#8217;s recent mortgage origination regulations include rules:</font> </p><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Requiring the loan originator to determine, prior to consummation, the borrower&#8217;s reasonable ability to repay the loan. Legal liability for violations of this rule is limited if the lender follows certain procedures related to determination of the borrower&#8217;s repayment ability based on verified documentation. The rule provides a so-called &#8220;safe harbor&#8221; from liability for loans eligible for purchase by Fannie Mae or Freddie Mac or for insurance or guaranty under certain U.S. government lending programs.</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Expanding the coverage of, lowering the pricing thresholds with respect to and expanding limitations and prohibitions on high-cost mortgages under the Home Ownership and Equity Protection Act (HOEPA).</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Amending the Federal Reserve Board&#8217;s loan originator compensation and anti-steering regulation. This rule, inter alia, follows the Federal Reserve Board rule in prohibiting loan originator compensation based on a residential mortgage transaction&#8217;s terms. This rule also places restrictions on the payment of bonuses or other incentive compensation to individual loan originators employed by mortgage lenders.</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Implementing the Dodd-Frank Act&#8217;s concerning appraisals for higher-priced mortgage transactions and a rule requiring escrows for higher-priced mortgage transactions.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">There are a number of foreign laws and regulations that are applicable to our operations in India and Uruguay, including acts that govern licensing, employment, safety, taxes, insurance, and the laws and regulations that govern the creation, continuation and the winding up of companies as well as the relationships between the shareholders, the company, the public and the government in both countries.</font> </p><br/> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE 29</b></font> </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>COMMITMENTS AND CONTINGENCIES</b></font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45pt; text-indent: -45pt"> <font style="font: 10pt Times New Roman, Times, Serif"><b>&#160;Litigation Contingencies</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In September 2006, the Bankruptcy Trustee in Chapter 7 proceedings involving American Business Financial Services, Inc. (ABFS) brought an action against multiple defendants, including Ocwen, in Bankruptcy Court. The action arises out of Debtor-in-Possession financing to ABFS by defendant Greenwich Capital Financial Products, Inc. and the subsequent purchases by Ocwen of MSRs and certain residual interests in mortgage-backed securities previously held by ABFS. The Trustee filed an amended complaint in March 2007 alleging various claims against Ocwen including turnover, fraudulent transfers, accounting, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, fraud, civil conspiracy and conversion. The Trustee seeks compensatory damages in excess of $100,000 and punitive damages jointly and severally against all defendants. In April 2008, Ocwen filed an answer denying all charges and a counterclaim for breach of contract, fraud, negligent misrepresentation and indemnification in connection with the MSR purchase transaction. On August 30, 2012, the Bankruptcy Court entered an order granting Ocwen&#8217;s motion for partial summary judgment and denying the Trustee&#8217;s motion for partial summary judgment. This order effectively rejects the bulk of the Trustee&#8217;s damage claims against Ocwen. In light of this order, the parties entered into a definitive written settlement agreement that provides for a final resolution and termination of this matter. This settlement, which is subject to the approval of the Bankruptcy Court, will not have a material effect on our financial condition, results of operations or cash flows.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We are subject to various other pending legal proceedings, including those subject to loss sharing <font style="color: black">and indemnification</font> provisions of our various acquisitions. In our opinion, the resolution of those proceedings will not have a material effect on our financial condition, results of operations or cash flows.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Tax Matters</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">India tax authorities issued income tax assessment orders with respect to assessment years 2006 - 2007 and 2007 - 2008. The proposed adjustments would impose upon OFSPL additional tax and interest of INR 156,718 ($2,809), and penalties may be assessed. Ocwen and OFSPL intend to vigorously contest&#160;the assessments and do not believe they have violated any statutory provision or rule.&#160; OFSPL has submitted appeals in both cases to the India Income Tax Appellate Tribunal and petitioned for Competent Authority assistance under the Mutual Agreement Procedures of the U.S./India income tax treaty. OFSPL has furnished bank guarantees of INR 205,473 ($3,684) related to transfer pricing matters, paid INR 7,647 ($137) towards non-transfer pricing issues and obtained abeyance on the demand of INR 4,376 ($78) relating to non-transfer pricing matters.&#160; Due to uncertainties inherent in the appeals processes, Ocwen and OFSPL cannot currently estimate any additional exposure beyond the amount currently assessed and cannot predict when these tax matters will be resolved.&#160; Competent Authority relief should preserve Ocwen&#8217;s right to offset any potential increase in India tax against Ocwen&#8217;s U.S. taxes.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Regulatory Contingencies</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We are subject to a number of pending federal and state regulatory investigations, examinations, inquiries, requests for information and/or other actions. In July 2010, OLS received two subpoenas from the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae in connection with ten private label mortgage securitization transactions where Freddie Mac and Fannie Mae have invested. The transactions include mortgage loans serviced but not originated by OLS or its affiliates. On November 24, 2010, OLS received a Civil Investigative Demand (CID) from the FTC requesting documents and information regarding various servicing activities. On June 6, 2012, the FTC notified OLS that it had referred this CID to the CFPB. On November 7, 2011, OLS received a CID from the Attorney General&#8217;s Office of the Commonwealth of Massachusetts requesting documents and information regarding certain foreclosures executed in Massachusetts. On January 18, 2012, OLS received a subpoena from the New York Department of Financial Services (NY DFS) requesting documents regarding OLS&#8217; policies, procedures and practices regarding lender-placed or &#8220;force-placed&#8221; insurance which is required to be provided for borrowers who allow their hazard insurance policies to lapse. Separately, on December 5, 2012, we entered into a Consent Order with the NY DFS in which we agreed to the appointment of an independent Monitor to oversee our compliance with the Agreement on Servicing Practices. <font style="color: black">A process is underway with respect to the selection and appointment of a Monitor by the NY DFS, and we intend to continue to cooperate with respect thereto.</font> On August 13, 2012, OLS received a request from the Multi-State Mortgage Committee of the Conference of State Bank Supervisors (MMC) to provide information and data relating to our loan servicing portfolio, including loan count and volume data, loan modifications, fees assessed, delinquencies, short sales, loan-to-value data and rating agency reports. The MMC, along with the CFPB, certain state Attorneys General <font style="color: black">and other agencies who were involved in the National Mortgage Settlement executed on February 9, 2012 by the five large banks</font>, also requested that we indicate our position on behalf of OLS and Litton on the servicing standards and consumer relief provisions contained in that settlement.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We are cooperating with <font style="color: black">and providing requested information to</font> each of the agencies involved in the foregoing actions. Specifically in response to the request from the MMC, CFPB, state Attorneys General<font style="color: black">and other agencies</font>, we indicated our willingness to adopt the servicing standards set out in the National Mortgage Settlement with certain caveats. We further indicated our willingness to <font style="color: black">undertake various</font> consumer assistance commitments <font style="color: black">in the form of</font> loan modifications and other <font style="color: black">foreclosure avoidance</font> alternatives.</font> On February 26, 2013, the MMC, CFPB and state Attorneys General requested that we consider a proposal to contribute to a consumer relief fund that would provide cash payments to borrowers foreclosed upon by OLS and various entities we have acquired. We believe the maximum liability under this proposal would be approximately $135 million. We do not believe such a contribution from us is warranted under the circumstances and have so notified the requesting parties. It is reasonably possible that legal proceedings could ensue with regard to this matter and, if so, we will defend vigorously. At this time, the amounts, if any, that ultimately could be incurred with regard to this matter are not reasonably estimable. </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On November 30, 2012, prior to our completion of the Homeward Acquisition, two CIDs were issued to Homeward Residential, Inc. (HRI) by the U.S. Department of Justice, Eastern District of Texas, as part of an investigation of whether HRI violated the False Claims Act in connection with its participation in the Home Affordable Mortgage Program (HAMP). We were advised by HRI that documents and information have been provided pursuant to these CIDs. The investigation remains open, and we intend to cooperate in the event there are further informational requests.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">As part of the ResCap Acquisition, OLS will be required to service the ResCap loans in accordance with the requirements of the National Mortgage Settlement, although OLS is not responsible for <font style="color: black">any payment, penalty or financial obligation, including but not limited to</font> providing Ally&#8217;s share of financial relief to borrowers under that settlement. The Office of Mortgage Settlement Oversight, which is responsible for monitoring compliance with obligations under the National Mortgage Settlement, issued a report on February 14, 2013 confirming that Ally/ResCap have completed its minimum consumer relief obligations.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">One or more of the foregoing regulatory actions or similar actions in the future against Ocwen, OLS, Litton or Homeward could cause us to incur fines, penalties, settlement costs, damages, legal fees or other charges in material amounts, or undertake remedial actions pursuant to administrative orders or court-issued injunctions, any of which could adversely affect our financial results or incur additional significant costs related to our loan servicing operations.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In addition to these matters, Ocwen receives periodic inquires, both formal and informal in nature, from various state and federal agencies as part of those agencies&#8217; oversight of the mortgage servicing sector. Such ongoing inquiries, including those into servicer foreclosure processes, could result in additional actions by state or federal governmental bodies, regulators or the courts that could result in an extension of foreclosure timelines, which may be applicable generally to the servicing industry or to us in particular. In addition, a number of our match funded advance facilities contain provisions that limit the eligibility of advances to be financed based on the length of time that advances are outstanding, and two of our match funded advance facilities have provisions that limit new borrowings if average foreclosure timelines extend beyond a certain time period, either of which, if such provisions applied, could adversely affect liquidity by reducing our average effective advance rate. Increases in the amount of advances and the length of time to recover advances, fines or increases in operating expenses, and decreases in the advance rate and availability of financing for advances would lead to increased borrowings, reduced cash and higher interest expense which could negatively impact our liquidity and profitability.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Loan Put-Back and Related Contingencies</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Ocwen has been a party to loan sales and securitizations dating back to the 1990s.&#160; The majority of securities issued in these transactions have been retired and are not subject to put-back risk. There is one remaining securitization with an original UPB of approximately $200,000 where Ocwen provided representations and warranties and the loans were originated in the last decade.&#160; Ocwen performed due diligence on each of the loans included in this securitization. The outstanding UPB of this securitization was $41,240 at December 31, 2012, and the outstanding balance of the notes was $41,132. Ocwen is not aware of any inquiries or claims regarding loan put-backs for any transaction where we made representations and warranties. We do not expect loan put-backs, if any, in these transactions to result in any material change to our financial position, operating results or liquidity.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Homeward&#8217;s contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. Additionally, in one of the servicing contracts that Homeward acquired in 2008 from Freddie Mac involving non-prime mortgage loans, it assumed the origination representations and warranties even though it did not originate the loans. While the language in the purchase contracts vary, they contain provisions that require Homeward to indemnify purchasers of related loans or repurchase such loans if:</font> </p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">representations and warranties concerning loan quality, contents of the loan file or loan</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">underwriting circumstances are inaccurate;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">adequate mortgage insurance is not secured within a certain period after closing;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">a mortgage insurance provider denies coverage; or</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We believe that, as a result of the current market environment, many purchasers of residential mortgage loans are particularly aware of the conditions under which originators must indemnify or repurchase loans and under which such purchasers would benefit from enforcing any indemnification rights and repurchase remedies they may have.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">As our lending business grows, we expect that our exposure to indemnification risks and repurchase requests is likely to increase. If home values continue to decrease, our realized loan losses from loan repurchases and indemnifications may increase as well. As a result, our reserve for repurchases may increase beyond our current expectations. If we are required to indemnify or repurchase loans that we originate and sell, and where we have assumed this risk on loans that we service, as discussed above, in either case resulting in losses that exceed our related reserve, our business, financial condition and results of operations could be adversely affected.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In several recent court actions, mortgage loan sellers against whom repurchase claims have been asserted based on alleged breaches of representations and warranties are defending on various grounds including the expiration of statutes of limitation, lack of notice and opportunity to cure and vitiation of the obligation to repurchase as a result of foreclosure or charge off of the loan. Ocwen is not a party to any of the actions, but we are the servicer for certain securitizations involved in such actions. Should Ocwen be made a party to these or similar actions, we may need to defend allegations that we failed to service loans in accordance with applicable agreements and that such failures prejudiced the rights of repurchase claimants against loan sellers. We believe that any such allegations would be without merit and, if necessary, would vigorously defend against them. If, however, we were required to compensate claimants for losses related to seller breaches of representations and warranties in respect of loans we service, then our business, financial condition and results of operations could be adversely affected.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Lease Commitments</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2018 exclusive of renewal option periods. Our annual aggregate minimum rental commitments under these leases are summarized as follows:</font> </p><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; padding-left: 10; text-indent: -10"> 2013 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 13,521 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,497 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10; text-indent: -10"> 2015 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,351 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> 2016 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,085 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10; text-indent: -10"> 2017 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,235 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Thereafter </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,400 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Total minimum lease payments </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 64,089 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We assumed the obligation for the lease agreements associated with HomEq Servicing, Litton and Homeward facilities. The rental commitments in the table above for operating leases include the remaining amounts due through the earlier of the lease expiration date or the early termination date. During 2012, we negotiated a buyout of one of the two HomEq leases and renewed one of the two Litton leases on a temporary basis. The Homeward facility leases expire on various dates through 2018.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In December 2010, we entered into an agreement with Altisource to sublease of 2,094 square feet of space as our principal executive office in Atlanta, Georgia. Under the terms of the agreement, Ocwen is responsible for monthly base rent of $3 plus a proportionate amount of maintenance costs and other shared services. The sublease is in effect through October 2014.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We converted rental commitments for our facilities outside the U.S. to U.S. dollars using exchange rates in effect at December 31, 2012. Rent expense for 2012, 2011and 2010 was $14,666, $5,578 and $12,315, respectively.</font> </p><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Genworth Acquisition</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-align: justify; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On October 26, 2012, Ocwen and Genworth Financial, Inc. (NYSE: GNW) entered into an agreement whereby Ocwen will acquire Genworth Financial Home Equity Access, Inc. for approximately $22 million in cash. The company, which will be renamed Liberty Home Equity Solutions, Inc., is the number one reverse mortgage originator based on September 2012 industry data with strong positions in both retail and wholesale originations. We expect the acquisition to close on April 1, 2013.</font> </p><br/> Litigation Contingencies In September 2006, the Bankruptcy Trustee in Chapter 7 proceedings involving American Business Financial Services, Inc. (ABFS) brought an action against multiple defendants, including Ocwen, in Bankruptcy Court. The action arises out of Debtor-in-Possession financing to ABFS by defendant Greenwich Capital Financial Products, Inc. and the subsequent purchases by Ocwen of MSRs and certain residual interests in mortgage-backed securities previously held by ABFS. The Trustee filed an amended complaint in March 2007 alleging various claims against Ocwen including turnover, fraudulent transfers, accounting, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, fraud, civil conspiracy and conversion. The Trustee seeks compensatory damages in excess of $100,000 and punitive damages jointly and severally against all defendants. In April 2008, Ocwen filed an answer denying all charges and a counterclaim for breach of contract, fraud, negligent misrepresentation and indemnification in connection with the MSR purchase transaction. On August 30, 2012, the Bankruptcy Court entered an order granting Ocwen's motion for partial summary judgment and denying the Trustee's motion for partial summary judgment. This order effectively rejects the bulk of the Trustee's damage claims against Ocwen. In light of this order, the parties entered into a definitive written settlement agreement that provides for a final resolution and termination of this matter. This settlement, which is subject to the approval of the Bankruptcy Court, will not have a material effect on our financial condition, results of operations or cash flows. We are subject to various other pending legal proceedings, including those subject to loss sharing and indemnification provisions of our various acquisitions. In our opinion, the resolution of those proceedings will not have a material effect on our financial condition, results of operations or cash flows. 100000000 Tax Matters India tax authorities issued income tax assessment orders with respect to assessment years 2006 - 2007 and 2007 - 2008. The proposed adjustments would impose upon OFSPL additional tax and interest of INR 156,718 ($2,809), and penalties may be assessed. Ocwen and OFSPL intend to vigorously contestthe assessments and do not believe they have violated any statutory provision or rule. OFSPL has submitted appeals in both cases to the India Income Tax Appellate Tribunal and petitioned for Competent Authority assistance under the Mutual Agreement Procedures of the U.S./India income tax treaty. OFSPL has furnished bank guarantees of INR 205,473 ($3,684) related to transfer pricing matters, paid INR 7,647 ($137) towards non-transfer pricing issues and obtained abeyance on the demand of INR 4,376 ($78) relating to non-transfer pricing matters. Due to uncertainties inherent in the appeals processes, Ocwen and OFSPL cannot currently estimate any additional exposure beyond the amount currently assessed and cannot predict when these tax matters will be resolved. Competent Authority relief should preserve Ocwen's right to offset any potential increase in India tax against Ocwen's U.S. taxes. 156718000 2809000 205473000 3684000 7647000 137000 4376000 78000 Regulatory Contingencies We are subject to a number of pending federal and state regulatory investigations, examinations, inquiries, requests for information and/or other actions. In July 2010, OLS received two subpoenas from the Federal Housing Finance Agency as conservator for Freddie Mac and Fannie Mae in connection with ten private label mortgage securitization transactions where Freddie Mac and Fannie Mae have invested. The transactions include mortgage loans serviced but not originated by OLS or its affiliates. On November 24, 2010, OLS received a Civil Investigative Demand (CID) from the FTC requesting documents and information regarding various servicing activities. On June 6, 2012, the FTC notified OLS that it had referred this CID to the CFPB. On November 7, 2011, OLS received a CID from the Attorney General's Office of the Commonwealth of Massachusetts requesting documents and information regarding certain foreclosures executed in Massachusetts. On January 18, 2012, OLS received a subpoena from the New York Department of Financial Services (NY DFS) requesting documents regarding OLS' policies, procedures and practices regarding lender-placed or "force-placed" insurance which is required to be provided for borrowers who allow their hazard insurance policies to lapse. Separately, on December 5, 2012, we entered into a Consent Order with the NY DFS in which we agreed to the appointment of an independent Monitor to oversee our compliance with the Agreement on Servicing Practices. A process is underway with respect to the selection and appointment of a Monitor by the NY DFS, and we intend to continue to cooperate with respect thereto. On August 13, 2012, OLS received a request from the Multi-State Mortgage Committee of the Conference of State Bank Supervisors (MMC) to provide information and data relating to our loan servicing portfolio, including loan count and volume data, loan modifications, fees assessed, delinquencies, short sales, loan-to-value data and rating agency reports. The MMC, along with the CFPB, certain state Attorneys General and other agencies who were involved in the National Mortgage Settlement executed on February 9, 2012 by the five large banks , also requested that we indicate our position on behalf of OLS and Litton on the servicing standards and consumer relief provisions contained in that settlement. We are cooperating with and providing requested information to each of the agencies involved in the foregoing actions. Specifically in response to the request from the MMC, CFPB, state Attorneys General and other agencies , we indicated our willingness to adopt the servicing standards set out in the National Mortgage Settlement with certain caveats. We further indicated our willingness to undertake various consumer assistance commitments in the form of loan modifications and other foreclosure avoidance alternatives. On February 26, 2013, the MMC, CFPB and state Attorneys General requested that we consider a proposal to contribute to a consumer relief fund that would provide cash payments to borrowers foreclosed upon by OLS and various entities we have acquired. We believe the maximum liability under this proposal would be approximately $135 million. We do not believe such a contribution from us is warranted under the circumstances and have so notified the requesting parties. It is reasonably possible that legal proceedings could ensue with regard to this matter and, if so, we will defend vigorously. At this time, the amounts, if any, that ultimately could be incurred with regard to this matter are not reasonably estimable. On November 30, 2012, prior to our completion of the Homeward Acquisition, two CIDs were issued to Homeward Residential, Inc. (HRI) by the U.S. Department of Justice, Eastern District of Texas, as part of an investigation of whether HRI violated the False Claims Act in connection with its participation in the Home Affordable Mortgage Program (HAMP). We were advised by HRI that documents and information have been provided pursuant to these CIDs. The investigation remains open, and we intend to cooperate in the event there are further informational requests. As part of the ResCap Acquisition, OLS will be required to service the ResCap loans in accordance with the requirements of the National Mortgage Settlement, although OLS is not responsible for any payment, penalty or financial obligation, including but not limited to providing Ally's share of financial relief to borrowers under that settlement. The Office of Mortgage Settlement Oversight, which is responsible for monitoring compliance with obligations under the National Mortgage Settlement, issued a report on February 14, 2013 confirming that Ally/ResCap have completed its minimum consumer relief obligations. One or more of the foregoing regulatory actions or similar actions in the future against Ocwen, OLS, Litton or Homeward could cause us to incur fines, penalties, settlement costs, damages, legal fees or other charges in material amounts, or undertake remedial actions pursuant to administrative orders or court-issued injunctions, any of which could adversely affect our financial results or incur additional significant costs related to our loan servicing operations. In addition to these matters, Ocwen receives periodic inquires, both formal and informal in nature, from various state and federal agencies as part of those agencies' oversight of the mortgage servicing sector. Such ongoing inquiries, including those into servicer foreclosure processes, could result in additional actions by state or federal governmental bodies, regulators or the courts that could result in an extension of foreclosure timelines, which may be applicable generally to the servicing industry or to us in particular. In addition, a number of our match funded advance facilities contain provisions that limit the eligibility of advances to be financed based on the length of time that advances are outstanding, and two of our match funded advance facilities have provisions that limit new borrowings if average foreclosure timelines extend beyond a certain time period, either of which, if such provisions applied, could adversely affect liquidity by reducing our average effective advance rate. Increases in the amount of advances and the length of time to recover advances, fines or increases in operating expenses, and decreases in the advance rate and availability of financing for advances would lead to increased borrowings, reduced cash and higher interest expense which could negatively impact our liquidity and profitability. 135000000 <p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"><font style="font: 10pt Times New Roman, Times, Serif"><b>Loan Put-Back and Related Contingencies</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Ocwen has been a party to loan sales and securitizations dating back to the 1990s.&#160; The majority of securities issued in these transactions have been retired and are not subject to put-back risk. There is one remaining securitization with an original UPB of approximately $200,000 where Ocwen provided representations and warranties and the loans were originated in the last decade.&#160; Ocwen performed due diligence on each of the loans included in this securitization. The outstanding UPB of this securitization was $41,240 at December 31, 2012, and the outstanding balance of the notes was $41,132. Ocwen is not aware of any inquiries or claims regarding loan put-backs for any transaction where we made representations and warranties. We do not expect loan put-backs, if any, in these transactions to result in any material change to our financial position, operating results or liquidity.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">Homeward&#8217;s contracts with purchasers of originated loans contain provisions that require indemnification or repurchase of the related loans under certain circumstances. Additionally, in one of the servicing contracts that Homeward acquired in 2008 from Freddie Mac involving non-prime mortgage loans, it assumed the origination representations and warranties even though it did not originate the loans. While the language in the purchase contracts vary, they contain provisions that require Homeward to indemnify purchasers of related loans or repurchase such loans if:</font> </p><br/><table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 0.25in"> &#160; </td> <td style="width: 0.25in"> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">representations and warranties concerning loan quality, contents of the loan file or loan</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">underwriting circumstances are inaccurate;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">adequate mortgage insurance is not secured within a certain period after closing;</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">a mortgage insurance provider denies coverage; or</font> </td> </tr> <tr style="vertical-align: top"> <td> &#160; </td> <td> &#8226; </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">there is a failure to comply, at the individual loan level or otherwise, with regulatory requirements.</font> </td> </tr> </table><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">We believe that, as a result of the current market environment, many purchasers of residential mortgage loans are particularly aware of the conditions under which originators must indemnify or repurchase loans and under which such purchasers would benefit from enforcing any indemnification rights and repurchase remedies they may have.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">As our lending business grows, we expect that our exposure to indemnification risks and repurchase requests is likely to increase. If home values continue to decrease, our realized loan losses from loan repurchases and indemnifications may increase as well. As a result, our reserve for repurchases may increase beyond our current expectations. If we are required to indemnify or repurchase loans that we originate and sell, and where we have assumed this risk on loans that we service, as discussed above, in either case resulting in losses that exceed our related reserve, our business, financial condition and results of operations could be adversely affected.</font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">In several recent court actions, mortgage loan sellers against whom repurchase claims have been asserted based on alleged breaches of representations and warranties are defending on various grounds including the expiration of statutes of limitation, lack of notice and opportunity to cure and vitiation of the obligation to repurchase as a result of foreclosure or charge off of the loan. Ocwen is not a party to any of the actions, but we are the servicer for certain securitizations involved in such actions. Should Ocwen be made a party to these or similar actions, we may need to defend allegations that we failed to service loans in accordance with applicable agreements and that such failures prejudiced the rights of repurchase claimants against loan sellers. We believe that any such allegations would be without merit and, if necessary, would vigorously defend against them. If, however, we were required to compensate claimants for losses related to seller breaches of representations and warranties in respect of loans we service, then our business, financial condition and results of operations could be adversely affected.</font></p> 200000000 41240000 41132000 Lease Commitments We lease certain of our premises and equipment under non-cancelable operating leases with terms expiring through 2018 exclusive of renewal option periods. Our annual aggregate minimum rental commitments under these leases are summarized as follows: 2013 $ 13,521 2014 13,497 2015 13,351 2016 13,085 2017 6,235 Thereafter 4,400 Total minimum lease payments $ 64,089 We assumed the obligation for the lease agreements associated with HomEq Servicing, Litton and Homeward facilities. The rental commitments in the table above for operating leases include the remaining amounts due through the earlier of the lease expiration date or the early termination date. During 2012, we negotiated a buyout of one of the two HomEq leases and renewed one of the two Litton leases on a temporary basis. The Homeward facility leases expire on various dates through 2018. In December 2010, we entered into an agreement with Altisource to sublease of 2,094 square feet of space as our principal executive office in Atlanta, Georgia. Under the terms of the agreement, Ocwen is responsible for monthly base rent of $3 plus a proportionate amount of maintenance costs and other shared services. The sublease is in effect through October 2014. We converted rental commitments for our facilities outside the U.S. to U.S. dollars using exchange rates in effect at December 31, 2012. Rent expense for 2012, 2011and 2010 was $14,666, $5,578 and $12,315, respectively. 14666000 5578000 12315000 Genworth Acquisition On October 26, 2012, Ocwen and Genworth Financial, Inc. (NYSE: GNW) entered into an agreement whereby Ocwen will acquire Genworth Financial Home Equity Access, Inc. for approximately $22 million in cash. The company, which will be renamed Liberty Home Equity Solutions, Inc., is the number one reverse mortgage originator based on September 2012 industry data with strong positions in both retail and wholesale originations. We expect the acquisition to close on April 1, 2013. 22000000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 80%; padding-left: 10; text-indent: -10"> 2013 </td> <td style="width: 3%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 15%; text-align: right"> 13,521 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> 2014 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,497 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10; text-indent: -10"> 2015 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,351 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> 2016 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 13,085 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-left: 10; text-indent: -10"> 2017 </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 6,235 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Thereafter </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 4,400 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Total minimum lease payments </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 64,089 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 13521000 13497000 13351000 13085000 6235000 4400000 64089000 <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-size: 10pt"> <tr style="vertical-align: top"> <td style="width: 9%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE 30</b></font> </td> <td style="width: 91%; font-weight: bold; text-indent: 0in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)</b></font> </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="14" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Quarters Ended</b></font> </p> </td> <td style="font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td style="font-weight: bold"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>March 31, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; padding: 0 0 0 10; text-indent: -10"> Revenue </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 236,375 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 232,700 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 211,385 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 164,546 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Operating expenses (1) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 99,097 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 92,793 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 85,908 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 86,127 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10"> Income from operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 137,278 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 139,907 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 125,477 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 78,419 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Other expense </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (60,799 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (59,161 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (55,313 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (48,300 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Income before income taxes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 76,479 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 80,746 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 70,164 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 30,119 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Income tax expense </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 11,138 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 29,346 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 25,331 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 10,770 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 65,341 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net loss (income) attributable to non-controlling interests </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net income attributable to Ocwen stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 65,341 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10"> Preferred stock dividends </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (145 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10"> <b>Net income attributable to Ocwen common stockholders </b> </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 65,196 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Earnings per share attributable to Ocwen common stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10"> Basic </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.48 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.38 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.33 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.15 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10"> Diluted </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.47 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.37 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.32 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.14 </td> <td style="text-align: left"> &#160; </td> </tr> </table><br/><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="14" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Quarters Ended</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>March 31, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; padding-left: 10; text-indent: -10"> Revenue </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 156,625 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 122,462 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 105,837 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 111,006 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Operating expenses (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 90,481 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 65,650 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 42,254 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 41,199 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10"> Income from operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 66,144 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,812 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 63,583 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,807 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Other expense </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (47,625 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (27,861 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (22,547 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (35,318 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Income before income taxes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,519 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 28,951 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41,036 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 34,489 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Income tax expense </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,864 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,730 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 14,653 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,425 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Net income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,655 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,221 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 26,383 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,064 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Net loss (income) attributable to non-controlling interests </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 10 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10; text-indent: -10"> <b>Net income attributable to Ocwen stockholders</b> </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 9,651 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 20,228 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 26,378 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 22,074 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Earnings per share attributable to Ocwen stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Basic </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.08 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.20 </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.26 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.22 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Diluted </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.08 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.19 </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.25 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.21 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table><br/><table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 4%; text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">(1)</font> </td> <td style="width: 96%; text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Operating expenses for 2012 include non-recurring costs of $1,270 that we incurred as a result of the Homeward Acquisition.</font> </td> </tr> <tr style="vertical-align: top"> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">(2)</font> </td> <td style="text-indent: 0in; line-height: 12pt; font-family: Cambria"> <font style="font: 10pt Times New Roman, Times, Serif">Operating expenses for 2011 include non-recurring costs of $50,340 that we incurred as a result of the Litton Acquisition, including $472, $18,746 and $31,122 in the second, third and fourth quarters, respectively. See Note&#160;2 for additional information on the Litton Acquisition.</font> </td> </tr> </table><br/> 1270 472000 18746000 31122000 <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="14" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Quarters Ended</b></font> </p> </td> <td style="font-weight: bold"> &#160; </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td style="font-weight: bold"> &#160; </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>March 31, 2012</b></font> </p> </td> <td style="font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; padding: 0 0 0 10; text-indent: -10"> Revenue </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 236,375 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 232,700 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 211,385 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 164,546 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Operating expenses (1) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 99,097 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 92,793 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 85,908 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 86,127 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10"> Income from operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 137,278 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 139,907 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 125,477 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 78,419 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Other expense </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (60,799 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (59,161 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (55,313 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (48,300 </td> <td style="text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Income before income taxes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 76,479 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 80,746 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 70,164 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 30,119 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Income tax expense </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 11,138 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 29,346 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 25,331 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 10,770 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 65,341 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net loss (income) attributable to non-controlling interests </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Net income attributable to Ocwen stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 65,341 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding: 0 0 0 20pt; text-indent: -10"> Preferred stock dividends </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (145 </td> <td style="text-align: left"> ) </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> &#8212; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="font-weight: bold; text-align: left; padding: 0 0 0 10; text-indent: -10"> <b>Net income attributable to Ocwen common stockholders </b> </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 65,196 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 51,400 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 44,833 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 19,349 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 10; text-indent: -10"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding: 0 0 0 10; text-indent: -10"> Earnings per share attributable to Ocwen common stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding: 0 0 0 20pt; text-indent: -10"> Basic </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.48 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.38 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.33 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.15 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding: 0 0 0 20pt; text-indent: -10"> Diluted </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.47 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.37 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.32 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> $ </td> <td style="border-bottom: Black 2.5pt double; text-align: right"> 0.14 </td> <td style="text-align: left"> &#160; </td> </tr> </table><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="14" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>Quarters Ended</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom"> <td style="text-align: center; padding-left: 10; text-indent: -10"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>December 31, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>September 30, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>June 30, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> <td style="font-weight: bold; padding-bottom: 1pt"> <b>&#160;</b> </td> <td colspan="2" style="font-weight: bold; text-align: center"> <p style="font: bold 10pt/normal Cambria; margin: 0; text-align: center; text-indent: 0in; border-bottom: Black 0.5pt solid"> <font style="font: 10pt Times New Roman, Times, Serif"><b>March 31, 2011</b></font> </p> </td> <td style="padding-bottom: 1pt; font-weight: bold"> <b>&#160;</b> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="width: 48%; padding-left: 10; text-indent: -10"> Revenue </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 156,625 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 122,462 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 105,837 </td> <td style="width: 1%; text-align: left"> &#160; </td> <td style="width: 2%"> &#160; </td> <td style="width: 1%; text-align: left"> $ </td> <td style="width: 9%; text-align: right"> 111,006 </td> <td style="width: 1%; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Operating expenses (2) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 90,481 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 65,650 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 42,254 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 41,199 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 20pt; text-indent: -10"> Income from operations </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 66,144 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 56,812 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 63,583 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 69,807 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Other expense </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (47,625 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (27,861 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (22,547 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (35,318 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Income before income taxes </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 18,519 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 28,951 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 41,036 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 34,489 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Income tax expense </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,864 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 8,730 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 14,653 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 12,425 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Net income </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 9,655 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 20,221 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 26,383 </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> 22,064 </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> Net loss (income) attributable to non-controlling interests </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (4 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 7 </td> <td style="padding-bottom: 1pt; text-align: left"> </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> (5 </td> <td style="padding-bottom: 1pt; text-align: left"> ) </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: left"> &#160; </td> <td style="border-bottom: Black 1pt solid; text-align: right"> 10 </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 1pt; padding-left: 10; text-indent: -10"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> <td style="padding-bottom: 1pt"> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="padding-bottom: 1pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt; padding-left: 10; text-indent: -10"> <b>Net income attributable to Ocwen stockholders</b> </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 9,651 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 20,228 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 26,378 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 22,074 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-left: 10; text-indent: -10"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="text-align: left; padding-left: 10; text-indent: -10"> Earnings per share attributable to Ocwen stockholders </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> <td> &#160; </td> <td style="text-align: left"> &#160; </td> <td style="text-align: right"> &#160; </td> <td style="text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Basic </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.08 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.20 </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.26 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.22 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(234,249,232)"> <td style="padding-bottom: 2.5pt; padding-left: 20pt; text-indent: -10"> Diluted </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.08 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.19 </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.25 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> <td style="padding-bottom: 2.5pt"> &#160; </td> <td style="text-align: left; border-bottom: Black 2.5pt double"> $ </td> <td style="text-align: right; border-bottom: Black 2.5pt double"> 0.21 </td> <td style="padding-bottom: 2.5pt; text-align: left"> &#160; </td> </tr> </table> 236375000 232700000 211385000 164546000 99097000 92793000 85908000 86127000 137278000 139907000 125477000 78419000 60799000 59161000 55313000 48300000 76479000 80746000 70164000 30119000 11138000 29346000 25331000 10770000 65341000 51400000 44833000 19349000 65341000 51400000 44833000 19349000 -145000 65196000 51400000 44833000 19349000 0.48 0.38 0.33 0.15 0.47 0.37 0.32 0.14 156625000 122462000 105837000 111006000 90481000 65650000 42254000 41199000 66144000 56812000 63583000 69807000 47625000 27861000 22547000 35318000 18519000 28951000 41036000 34489000 8864000 8730000 14653000 12425000 9655000 20221000 26383000 22064000 4000 -7000 5000 -10000 9651000 20228000 26378000 22074000 0.08 0.20 0.26 0.22 0.08 0.19 0.25 0.21 <table cellpadding="0" cellspacing="0" style="font: bold 10pt/normal Cambria; margin-top: 0; margin-bottom: 0; width: 100%"> <tr style="vertical-align: top; text-align: justify"> <td style="width: 9%; text-align: left"> <font style="font: 10pt Times New Roman, Times, Serif"><b>NOTE 31</b></font> </td> <td style="text-align: left; width: 91%"> <font style="font: 10pt Times New Roman, Times, Serif"><b>SUBSEQUENT EVENTS</b></font> </td> </tr> </table><br/><p style="font: bold 10pt/normal Cambria; margin: 0 0 0 0.5in; text-indent: -0.5in"> <font style="font: 10pt Times New Roman, Times, Serif"><b>ResCap Acquisition</b></font> </p><br/><p style="font: 10pt/normal Cambria; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">On February 15, 2013, we completed the acquisition of certain assets of Residential Capital, LLC (&#8220;ResCap&#8221;), an indirect subsidiary of Ally Financial, Inc., in connection with the proposed asset sale by ResCap and other entities pursuant to a plan under Chapter 11 of the Bankruptcy Code. We purchased MSRs to &#8220;private label&#8221;, Freddie Mac and Ginnie Mae loans with a UPB of approximately $107.3 billion and master servicing agreements with a UPB of approximately $42.1 billion. The acquisition included $1.5 billion of related servicing advance receivables and related elements of the servicing platform for the MSRs and advances. We also assumed the subservicing contracts for $25.9 billion of loans. The aggregate purchase price, net of assumed liabilities, was approximately $2.1 billion, subject to post-closing adjustments. In addition, until certain consents and court approvals are obtained, we will subservice MSRs to approximately $9 billion of private label loans previously serviced by the sellers. When such consents and approvals are obtained, we will purchase those MSRs as well.</font> </p><br/><p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.25in"> <font style="font: 10pt Times New Roman, Times, Serif">To finance the ResCap acquisition, we deployed approximately $840 million of net additional capital from the proceeds of a new $1.3 billion SSTL facility and borrowed $1.25 billion pursuant to three servicing advance facilities.</font> </p><br/> 107300000000 42100000000 1500000000 25900000000 2100000000 9000000000 840000000 1300000000 1250000000