Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2015	Nov. 04, 2015
Document and Entity Information
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Central Index Key	0001000298
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,322,602
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Sep. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 10,509	$ 10,073
Restricted cash	5,829	2,420
Mortgage loans held-for-sale	460,808	239,391
Finance receivables	41,334	8,358
Mortgage servicing rights	63,281	24,418
Securitized mortgage trust assets	4,814,798	5,268,531
Goodwill	104,938	352
Intangibles assets, net	31,024
Deferred tax asset, net	24,420
Other assets	37,942	25,029
Total assets	5,594,883	5,578,572
LIABILITIES
Warehouse borrowings	477,673	226,718
Short-term debt		6,000
Term financing	30,000
Convertible notes	45,000	20,000
Contingent consideration	68,792
Long-term debt	31,663	22,122
Securitized mortgage trust liabilities	4,799,024	5,251,307
Other liabilities	39,816	27,469
Total liabilities	5,491,968	5,553,616
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 10,291,653 and 9,588,532 shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively	103	96
Additional paid-in capital	1,097,436	1,089,574
Net accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Retained deficit	(172,125)	(242,215)
Net accumulated deficit	(994,645)	(1,064,735)
Total stockholders' equity	102,915	24,956
Total liabilities and stockholders' equity	5,594,883	5,578,572
Series A-1 junior participating preferred stock
STOCKHOLDERS' EQUITY
Preferred stock
Series B 9.375% redeemable preferred stock
STOCKHOLDERS' EQUITY
Preferred stock	7	7
Series C 9.125% redeemable preferred stock
STOCKHOLDERS' EQUITY
Preferred stock	$ 14	$ 14

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	10,291,653	9,588,532
Common stock, shares outstanding	10,291,653	9,588,532
Series A-1 junior participating preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	2,500,000	2,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series B 9.375% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.375%	9.375%
Preferred stock, liquidation value (in dollars)	$ 16,640	$ 16,640
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	665,592	665,592
Preferred stock, shares outstanding	665,592	665,592
Series C 9.125% redeemable preferred stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, dividend rate (as a percent)	9.125%	9.125%
Preferred stock, liquidation value (in dollars)	$ 35,127	$ 35,127
Preferred stock, shares authorized	5,500,000	5,500,000
Preferred stock, shares issued	1,405,086	1,405,086
Preferred stock, shares outstanding	1,405,086	1,405,086

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Gain on sale of loans, net	$ 47,274	$ 8,602	$ 133,018	$ 19,468
Real estate services fees, net	2,775	3,243	7,872	11,282
Servicing income, net	2,432	913	4,083	3,773
Loss on mortgage servicing rights	(4,818)	(998)	(14,176)	(3,540)
Other	(11)	197	283	1,703
Total revenues	47,652	11,957	131,080	32,686
Expenses:
Personnel expense	21,315	9,062	56,883	27,841
Business promotion	10,735	252	19,628	1,020
General, administrative and other	7,100	4,376	20,479	14,260
Accretion of contingent consideration	2,424		5,471
Change in fair value of contingent consideration	(16,897)		(28,223)
Total expenses	24,677	13,690	74,238	43,121
Operating income (loss):	22,975	(1,733)	56,842	(10,435)
Other income (expense):
Interest income	70,301	79,631	210,177	220,613
Interest expense	(70,182)	(78,884)	(208,042)	(220,275)
Change in fair value of long-term debt			(8,661)	(424)
Change in fair value of net trust assets, including trust REO (losses) gains	(3,004)	92	(3,078)	7,841
Total other income (expense)	(2,885)	839	(9,604)	7,755
Earnings (loss) before income taxes	20,090	(894)	47,238	(2,680)
Income tax expense (benefit)	781	307	(22,852)	1,405
Net earnings (loss)	$ 19,309	$ (1,201)	$ 70,090	$ (4,085)
Earnings (loss) per common share:
Basic	$ 1.89	$ (0.13)	$ 7.00	$ (0.44)
Diluted	$ 1.48	$ (0.13)	$ 5.61	$ (0.44)

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss)	$ 70,090	$ (4,085)
Loss (gain) on sale of mortgage servicing rights	6,193	(1,388)
Change in fair value of mortgage servicing rights	7,983	4,928
Gain on sale of AmeriHome		(1,208)
Gain on sale of mortgage loans	(115,578)	(15,826)
Change in fair value of mortgage loans held-for-sale	(9,030)	(5,103)
Change in fair value of derivatives lending, net	(8,755)	(170)
Provision for repurchases	340	1,602
Origination of mortgage loans held-for-sale	(7,319,723)	(1,737,217)
Sale and principal reduction on mortgage loans held-for-sale	7,146,796	1,635,569
Losses (gains) from REO	4,899	(8,977)
Change in fair value of net trust assets, excluding REO	(4,977)	(2,786)
Change in fair value of long-term debt	8,661	424
Accretion of interest income and expense	111,400	137,087
Amortization of intangible and other assets	2,384
Accretion of contingent consideration	5,471
Change in fair value of contingent consideration	(28,223)
Amortization of debt issuance costs and discount on note payable	248	31
Stock-based compensation	1,076	1,377
Impairment of deferred charge	1,054
Change in deferred tax assets	(24,420)
Change in REO impairment reserve	1,655	6,243
Net change in restricted cash	(3,409)	(396)
Net change in other assets and liabilities	8,647	(5,601)
Net cash (used in) provided by operating activities	(137,218)	4,504
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	479,565	452,046
Proceeds from the sale of mortgage servicing rights	23,079	28,665
Finance receivable advances to customers	(523,005)	(37,872)
Repayments of finance receivables	490,029	33,538
Net change in mortgages held-for-investment	46	6
Purchase of premises and equipment	93	(18)
Net principal change on investment securities available-for-sale	83	64
Acquisition of CashCall Mortgage	(5,000)
Payment of acquisition related contingent consideration	(32,423)
Proceeds from the sale of REO	24,210	27,666
Proceeds from the sale of AmeriHome		10,200
Net cash provided by investing activities	456,677	514,295
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of convertible notes	25,000
Issuance of term financing	30,000
Repayment of warehouse borrowings	(6,884,047)	(1,560,956)
Borrowings under warehouse agreement	7,135,002	1,662,692
Repayment of line of credit	(11,000)	(23,250)
Borrowings under line of credit	7,000	20,250
Repayment of short-term borrowing	(15,000)
Short-term borrowing	15,000
Repayment of securitized mortgage borrowings	(614,505)	(613,708)
Principal payments on short-term debt	(6,000)
Principal payments on capital lease	(616)	(552)
Capitalized debt issuance costs	(500)
Proceeds from exercise of stock options	643	33
Net cash used in financing activities	(319,023)	(515,491)
Net change in cash and cash equivalents	436	3,308
Cash and cash equivalents at beginning of period	10,073	9,969
Cash and cash equivalents at end of period	10,509	13,277
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral to real estate owned	30,307	23,510
Mortgage servicing rights retained from loan sales and issuance of mortgage backed securities	76,119	17,238
Acquisition related goodwill asset related to CashCall	104,586
Acquisition related intangible assets related to CashCall	33,122
Acquisition related contingent consideration liability related to CashCall	124,592
Common stock issued related to CashCall acquisition	6,150
Acquisition of equipment purchased through capital leases	413	573
Common stock issued upon legal settlement		$ 3,449

Summary of Business and Financial Statement Presentation	9 Months Ended
	Sep. 30, 2015
Summary of Business and Financial Statement Presentation
Summary of Business and Financial Statement Presentation	Note 1.—Summary of Business and Financial Statement Presentation Business Summary Impac Mortgage Holdings, Inc. (the Company or IMH) is a Maryland corporation incorporated in August 1995 and has the following wholly-owned subsidiaries: Integrated Real Estate Service Corporation (IRES), Impac Mortgage Corp. (IMC), IMH Assets Corp. (IMH Assets) and Impac Funding Corporation (IFC). In the first quarter of 2015, the Company settled its repurchase liability with Fannie Mae (FNMA) related to its legacy non-conforming mortgage operations. As a result of this settlement and previous resolution of other legal matters pertaining to the legacy non-conforming mortgage operations, the Company determined the legacy non-conforming mortgage operations previously reported as discontinued operations is no longer significant for reporting purposes. The Company’s operations include the mortgage lending operations and real estate services conducted by IRES and IMC and the long-term mortgage portfolio (residual interests in securitizations reflected as net trust assets and liabilities in the consolidated balance sheets) conducted by IMH. Beginning in the first quarter of 2015, the mortgage lending operations include the activities of the CashCall Mortgage operations (CCM)( See Note 2. — Acquisition of CashCall Mortgage. ) Financial Statement Presentation The accompanying unaudited consolidated financial statements of IMH and its subsidiaries (as defined above) have been prepared in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. These interim period condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the United States Securities and Exchange Commission (SEC). All significant inter-company balances and transactions have been eliminated in consolidation. In addition, certain amounts in the prior periods’ consolidated financial statements have been reclassified to conform to the current period presentation. Management has made a number of material estimates and assumptions relating to the reporting of assets and liabilities, the 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 to prepare these consolidated financial statements in conformity with GAAP. Material estimates subject to change include the fair value estimates of assets acquired and liabilities assumed in the acquisition of CCM as discussed in Note 2. — Acquisition of CashCall Mortgage. Additionally, other items affected by such estimates and assumptions include the valuation of trust assets and trust liabilities, contingencies, the estimated obligation of repurchase liabilities related to sold loans, the valuation of long-term debt, mortgage servicing rights, mortgage loans held-for-sale and interest rate lock commitments. Actual results could differ from those estimates and assumptions. Recent Accounting Pronouncements In January 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). ASU 2015-01 addresses the elimination from U.S. GAAP the concept of extraordinary items. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. This amended guidance will prohibit separate disclosure of extraordinary items in the income statement. This amendment is effective for years, and interim periods within those years, beginning after December 15, 2015. Entities may apply the amendment prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the year of adoption. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements. In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. For public business entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Entities should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Upon transition, entities are required to comply with the applicable disclosures for a change in an accounting principle. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements. In May 2015, the FASB issued ASU 2015-08, “‘Business Combinations (Topic 805): Pushdown Accounting - Amendments to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115.” ASU 2015-08 amends various SEC paragraphs included in the FASB’s Accounting Standards Codification to reflect the issuance of Staff Accounting Bulletin No. 115 (“SAB 115”). SAB 115 rescinds portions of the interpretive guidance included in the SEC’s Staff Accounting Bulletins series and brings existing guidance into conformity with ASU 2014-17, “Business Combinations (Topic 805): Pushdown Accounting,” which provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. The Company has adopted the amendments in ASU 2015-08, effective immediately, as the amendments in the update are effective upon issuance. The adoption did not have an impact on the Consolidated Financial Statements. In June 2015, the Financial Accounting Standards Board issued ASU 2015-10, “Technical Corrections and Improvements.” ASU 2015-10 amends various SEC paragraphs to clarify the Codification, correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, some of the amendments will make the Codification easier to understand and easier to apply by eliminating inconsistencies, providing needed clarifications, and improving the presentation of guidance in the Codification. This ASU is effective for fiscal years and interim periods beginning on or after December 15, 2015, with early adoption permitted. The Company does not expect the guidance in this ASU to have a material impact on our consolidated financial statements and related disclosures. In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments (Topic 805), which replaces the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. For public business entities, ASU 2015-16 is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the guidance, with earlier application permitted for financial statements that have not been issued. The adoption of this ASU is not expected to have a material impact on the Company’s financial statements.

Acquisition of CashCall Mortgage

9 Months Ended

Sep. 30, 2015

Acquisition of CashCall Mortgage

Acquisition of CashCall Mortgage

Note 2.—Acquisition of CashCall Mortgage

On January 6, 2015, the Company entered into an Asset Purchase Agreement (the Asset Purchase Agreement) with CashCall, Inc. (CashCall), an unrelated entity, pursuant to which the Company agreed to purchase certain assets of CashCall’s residential mortgage operations. Upon closing, which occurred on March 31, 2015, CashCall’s mortgage operations began to operate as a separate division of IMC under the name CashCall Mortgage (CCM).

Pursuant to the Asset Purchase Agreement, and subject to the terms and conditions contained therein, the purchase price consists of a fixed component and a contingent component. The fixed component includes (i) the aggregate payment of $10 million in cash, payable in installments through January 2016 and (ii) 494,017 newly issued unregistered shares of the Company. The contingent component consists of a three year earn-out provision beginning on the effective date (January 2, 2015) of 100% of pre-tax net earnings of CCM for January and February of 2015, 65% of the pre-tax net earnings for the next 10 months of 2015, 55% of pre-tax net earnings for the second year and 45% of pre-tax net earnings for the third year.

If, during the four years following January 2, 2015, the Company sells all or substantially all of its assets or the assets of CCM, the division of IMC, or a person acquires 50% or more of the securities of the Company or IMC, then the Company will pay additional contingent consideration, subject to adjustment, to CashCall of 15% of the enterprise value (as defined in the Asset Purchase Agreement) in excess of $200 million plus an additional 5% of the enterprise value in excess of $500 million (Business Appreciation Rights).

During the nine months ended September 30, 2015, consideration paid to CashCall, Inc. included $5.0 million cash and 494,017 shares of common stock of the Company (issued April 1, 2015) valued at $6.2 million, pursuant to the fixed component of the Asset Purchase Agreement and $33.0 million pursuant to the earn-out provision.

The table below presents the purchase price allocation of the estimated acquisition date fair values of assets acquired and the liabilities assumed as of March 31, 2015.

Consideration paid:
Cash	$	5,000
IMH common stock	6,150
Deferred payments	5,000
Contingent consideration (1)	124,592

	$	140,742


Assets acquired:
Trademark	$	17,251
Customer list	10,170
Non-compete agreement	5,701
Fixed assets and software	3,034

Total assets acquired	36,156

Liabilities assumed:
Total liabilities assumed	—


Total assets	$	36,156


Goodwill	$	104,586

(1)

Included within the contingent consideration is $1.4 million of Business Appreciation Rights, as defined above.

The CCM acquisition was accounted for under the acquisition method of accounting pursuant to FASB Accounting Standards Codification (ASC) 805, Business Combinations. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. The Company made significant estimates and exercised significant judgment in estimating fair values of the acquired assets and assumed liabilities. The application of the acquisition method of accounting resulted in tax deductible goodwill of $104.6 million. The acquisition closed on March 31, 2015; however, the effective date of the transaction was January 2, 2015. From the effective date to the date of the close, IMC was entitled to and recognized the net earnings of the loans originated by CCM. Acquisition related costs of $0.3 million were expensed as incurred. The expenses were comprised primarily of legal and professional fees.

Unaudited Pro Forma Results of Operations

The following table presents unaudited pro forma results of operations for the periods presented as if the CCM acquisition had been completed on January 1, 2014. The unaudited pro forma results of operations include the historical accounts of the Company and CCM and pro forma adjustments, including the amortization of intangibles with definite lives, depreciation of fixed assets, accretion of discount on contingent consideration and elimination of commissions and loan due diligence costs of IMC. The unaudited pro forma information is intended for informational purposes only and is not necessarily indicative of the future operating results or operating results that would have occurred had the CCM acquisition been completed at the beginning of 2014. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies or asset dispositions.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Revenues	$	47,652		$	28,403		$	149,480		$	70,156
Other (expense) income	(2,885		)	1,121			(9,394		)	8,552
Expenses	(28,864		)	(34,887		)	(106,707		)	(102,643		)

Pretax net earnings (loss)	$	15,903		$	(5,363	)	$	33,379		$	(23,935	)

For the three and nine months ended September 30, 2015, revenues from CCM were $30.3 million and $109.9 million, respectively. For the three and nine months ended September 30, 2015, expenses from operations were $22.4 million and $62.5 million, respectively. During the first quarter of 2015 prior to the close of the acquisition, expenses related to CCM were included in gain on sale of loans, net in the consolidated statements of operations.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Mortgage Loans Held-for-Sale

9 Months Ended

Sep. 30, 2015

Mortgage Loans Held-for-Sale

Mortgage Loans Held-for-Sale

Note 3.—Mortgage Loans Held-for-Sale

A summary of the unpaid principal balance (UPB) of mortgage loans held-for-sale by type is presented below:

	September 30,		December 31,
	2015		2014
Government (1)	$	180,508	$	156,385
Conventional (2)	241,404		72,553
Other (3)	19,413		—
Fair value adjustment (4)	19,483		10,453

Total mortgage loans held-for-sale	$	460,808	$	239,391

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Fannie Mae and Freddie Mac.

(3)

Includes ALT-QM and Jumbo loans.

(4)

Changes in fair value are included in the statements of operations.

Gain on mortgage loans held-for-sale (LHFS) is comprised of the following for the three and nine months ended September 30, 2015 and 2014:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
Gain on sale of mortgage loans	$	59,753		$	29,593		$	179,894		$	62,420
Premium from servicing retained loan sales	23,384			8,913			76,119			17,237
Unrealized gains from derivative financial instruments	955			84			8,754			170
Realized losses from derivative financial instruments	(6,747		)	(2,436		)	(8,453		)	(8,579		)
Mark to market gain on LHFS	6,678			2,294			9,030			5,103
Direct origination expenses, net	(37,729		)	(28,989		)	(131,986		)	(55,281		)
Recovery (provision) for repurchases	980			(857		)	(340		)	(1,602		)

Total gain on sale of loans, net	$	47,274		$	8,602		$	133,018		$	19,468

Mortgage Servicing Rights

9 Months Ended

Sep. 30, 2015

Mortgage Servicing Rights

Mortgage Servicing Rights

Note 4.—Mortgage Servicing Rights

The Company retains mortgage servicing rights (MSRs) from its sales of certain mortgage loans. MSRs are reported at fair value based on the income derived from the net projected cash flows associated with the servicing contracts. The Company receives servicing fees, less subservicing costs, on the UPB of the loans. The servicing fees are collected from the monthly payments made by the mortgagors or when the underlying real estate is foreclosed upon and liquidated. The Company may receive other remuneration from rights to various mortgagor-contracted fees such as late charges, collateral reconveyance charges, nonsufficient fund fees and the Company is generally entitled to retain the interest earned on funds held pending remittance (or float) related to its collection of mortgagor principal, interest, tax and insurance payments.

The following table summarizes the activity of MSRs for the nine months ended September 30, 2015 and year ended December 31, 2014:

	September 30,			December 31,
	2015			2014
Balance at beginning of period	$	24,418		$	35,981
Additions from servicing retained loan sales	76,119			29,388
Reductions from bulk sales	(29,273		)	(27,276		)
Reduction from sale of AmeriHome	—			(7,446		)
Changes in fair value (1)	(7,983		)	(6,229		)

Fair value of MSRs at end of period	$	63,281		$	24,418

(1)

Changes in fair value are included within loss on mortgage servicing rights in the consolidated statements of operations.

At September 30, 2015 and December 31, 2014, the outstanding principal balance of the mortgage servicing portfolio was comprised of the following:

	September 30,		December 31,
	2015		2014
Government insured	$	1,259,647	$	926,502
Conventional (1)	4,770,257		1,333,853
Alt-QM	58,134		6,731

Total loans serviced	$	6,088,038	$	2,267,086

(1)

Approximately $3.4 billion of FNMA servicing has been pledged as collateral as part of the Term Financing. ( See Note 7. — Term Financing. )

The table below illustrates hypothetical changes in fair values of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 12.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs.

Mortgage Servicing Rights Sensitivity Analysis	September 30, 2015

Fair value of MSRs	$	63,281

Prepayment Speed:
Decrease in fair value from 100 basis point (bp) adverse change	(2,307		)
Decrease in fair value from 200 bp adverse change	(4,486		)

Discount Rate:
Decrease in fair value from 100 bp adverse change	(2,288		)
Decrease in fair value from 200 bp adverse change	(4,422		)

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in MSR values may differ significantly from those displayed above.

Loss on mortgage servicing rights is comprised of the following for the three and nine months ended September 30, 2015 and 2014:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
(Loss) gain on sale of mortgage servicing rights	$	(471	)	$	207		$	(6,193	)	$	1,388
Change in fair value of mortgage servicing rights	(4,347		)	(1,205		)	(7,983		)	(4,928		)

Loss on mortgage servicing rights	$	(4,818	)	$	(998	)	$	(14,176	)	$	(3,540	)

During the three months ended September 30, 2015, the Company recorded a $471 thousand loss on sale of mortgage servicing rights related to refunds of premiums to investors for loan payoffs associated with sales of servicing rights in previous periods.

The following is a summary of certain components of servicing income, net as reported in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2015 and 2014:

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2015		2014		2015		2014
Contractual servicing fees	$	3,014	$	1,228	$	5,702	$	4,885
Late and ancillary fees	33		28		91		107

Goodwill and Intangible assets

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible assets.

Goodwill and Intangible assets

Note 5.—Goodwill and Intangible assets

Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. Other intangible assets with definite lives include trademarks, customer relationships, and non-compete agreements. In the first quarter of 2015, the Company acquired CCM and recorded $104.6 million of goodwill and intangible assets of $33.1 million, consisting of $17.3 million for trademark, $10.2 million for customer relationships and $5.7 million for a non-compete agreement with the former owner of CCM. The purchase price allocation was prepared with the assistance of a third party valuation firm.

Goodwill, trademarks and other intangible assets are tested annually for impairment or more frequently if events and circumstances indicate that the asset might be impaired. The carrying value of these intangible assets could be impaired if a significant adverse change in the use, life, or brand strategy of the asset is determined, or if a significant adverse change in the legal and regulatory environment, business or competitive climate occurs that would adversely impact the asset.

Goodwill and other intangible assets deemed to have indefinite lives generated from purchase business combinations are not subject to amortization but are instead tested for impairment no less than annually. Impairment exists when the carrying value of goodwill exceeds its implied fair value. An impairment loss, if any, is measured as the excess of carrying value of the goodwill over the implied fair value of the goodwill and would be recorded in other expense in the consolidated statements of operations. Intangible assets with definite lives are amortized over their estimated lives using an amortization method that reflects the pattern in which the economic benefits of the asset are consumed.

For goodwill, the determination of fair value of a reporting unit involves, among other things, application of the income approach, which includes developing forecasts of future cash flows and determining an appropriate discount rate. Goodwill is considered a Level 3 nonrecurring fair value measurement.

The methodology used to determine the fair value of trademarks includes assumptions with inherent uncertainty, including projected sales volumes and related projected revenues, long-term growth rates, royalty rates that a market participant might assume and judgments regarding the factors to develop an applied discount rate. The carrying value of intangible assets is at risk of impairment if future projected revenues or long-term growth rates are lower than those currently projected, or if factors used in the development of a discount rate result in the application of a higher discount rate. The intangible assets are considered Level 3 nonrecurring fair value measurements.

The following table presents the changes in the carrying amount of goodwill for the period indicated:

Balance at December 31, 2014	$	352
Addition from CCM acquisition	104,586

Balance at September 30, 2015	$	104,938

As part of the acquisition of CCM, the purchase price of the intangible assets the Company acquired are listed below:

	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Remaining Life
Intangible assets:
Trademark	$	17,251	$	(585	)	$	16,666	14.3
Customer relationships	10,170		(753		)	9,417		6.3
Non-compete agreement	5,701		(760		)	4,941		3.3

Total intangible assets acquired	$	33,122	$	(2,098	)	$	31,024

As part of the acquisition of CCM, the purchase price of other assets the Company acquired are listed below:

	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Remaining Life
Other assets:
Developed software	$	2,719	$	(286	)	$	2,433	4.3

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

Warehouse Borrowings (Warehouse Borrowings)

9 Months Ended

Sep. 30, 2015

Warehouse Borrowings

Note 6.—Warehouse Borrowings

The Company, through its subsidiaries, enters into Master Repurchase Agreements with lenders providing warehouse facilities. The warehouse facilities are used to fund, and are secured by, residential mortgage loans that are held for sale. In accordance with the terms of the Master Repurchase Agreements, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings which are included in restricted cash in the accompanying consolidated balance sheets. In August and September 2015, the Company was not in compliance with certain financial covenants and received waivers.

The following table presents certain information on warehouse borrowings and related accrued interest for the periods indicated:

	Maximum		Balance Outstanding At
	Borrowing Capacity		September 30, 2015		December 31, 2014
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	64,534	$	64,907
Repurchase agreement 2	50,000		18,369		30,523
Repurchase agreement 3 (1)	—		—		24,012
Repurchase agreement 4 (2)	225,000		111,501		107,276
Repurchase agreement 5	150,000		139,266		—
Repurchase agreement 6 (3)	100,000		144,003		—

Total warehouse borrowings	$	675,000	$	477,673	$	226,718

(1)

This line expired in April, 2015 and the Company replaced it with a $100.0 million facility, Repurchase agreement 6.

(2)

As of September 30, 2015, $41.3 million is attributable to financing facility advances made to the Company’s warehouse customers.

(3)

In September 2015, the lender granted the Company a temporary increase in the maximum borrowing capacity to $150.0 million.

- Definition

The entire disclosure for short-term debt.

+ References+ Details

Term Financing	9 Months Ended
Term Financing	Sep. 30, 2015
Term Financing
Term Financing	Note 7.—Term Financing In June 2015, the Company and its subsidiaries, (IRES, IMC and Impac Warehouse Lending, Inc. (IWLI), collectively the (Borrowers)) entered into a Loan Agreement (Loan Agreement) with a lender (Lender) pursuant to which the Lender provided to the Borrowers a term loan in the aggregate principal amount of $30.0 million (Term Financing) due and payable on December 19, 2016, which may extend to December 18, 2017 at the Lender’s discretion. In connection with the Term Financing, the Borrowers issued to the Lender a Term Note dated June 19, 2015. The Lender may in its discretion make additional advances in an aggregate amount not to exceed $50.0 million (including amounts then outstanding). The proceeds from the Term Financing were used to pay off the working capital line of credit with a national bank (approximately $4.0 million) and amounts under an existing master repurchase agreement with the Lender (approximately $3.2 million). The Borrowers also paid the Lender an origination fee of $300 thousand. Interest on the Term Financing is payable monthly and accrues at a rate of LIBOR plus 8.5% per annum. Amounts under the Term Financing may be prepaid at any time without penalty or premium, provided, however, that any prepayments made within nine months of the closing date will be subject to, with certain exceptions, a prepayment premium equal to 50% of the then applicable interest rate multiplied by the amount of the prepayment. The Borrowers are subject to mandatory prepayment on the Term Financing based on a borrowing base formula that includes amounts under outstanding warehouse facilities, market value of mortgage servicing rights and residual securities and certain mortgage loans. The obligations of the Borrowers under the Loan Agreement are secured by assets and a pledge of all of the capital stock of the operating subsidiaries IRES, IMC and IWLI pursuant to a Security Agreement dated as of June 19, 2015 between the Borrowers and the Lender (Security Agreement). As part of the Loan Agreement the Company received an acknowledgement agreement from FNMA to pledge the mortgage servicing rights associated with FNMA production as collateral. The Term Financing is subject to customary affirmative and negative covenants of the Borrowers. Upon an event of default, all outstanding amounts under the Term Financing may become immediately due and payable. An event of default also occurs upon a change of control, which means acquisition of more than 25% of the common stock of the Company, more than 50% of the common stock of any other Borrower, or the ability to elect a majority of such Borrower’s directors or an event that triggers a violation of a change of control provision in any of the Borrowers’ warehouse facilities.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Convertible Notes (Convertible notes.)	9 Months Ended
Convertible Notes (Convertible notes.)	Sep. 30, 2015
Convertible notes.
Convertible Notes
Convertible Notes	Note 8.—Convertible Notes In April 2013, the Company entered into a Note Purchase Agreement with the purchasers named therein, whereby the Company issued $20.0 million in original aggregate principal amount of Convertible Promissory Notes Due 2018 (2013 Convertible Notes). Note holders may convert all or a portion of the outstanding principal amount of the Convertible Notes to shares of IMH common stock at a rate of $10.875 per share, subject to adjustment for stock splits and dividends. The Company has the right to force a conversion if the stock price of IMH common stock reaches $16.31 for 20 trading days in a 30 day consecutive period. The 2013 Convertible Notes mature on or before April 30, 2018 and accrue interest at a rate of 7.5% per annum, to be paid quarterly. Even though the Company is currently entitled to force a conversion of the note to common stock, if the Company forces conversion, it is required to prepay the interest due through April 2016. Accordingly, the Company has elected not to force conversion at this time. On May 8, 2015, the Company issued an additional $25.0 million Convertible Promissory Notes (2015 Convertible Notes). The 2015 Convertible Notes mature on or before May 9, 2020 and accrue interest at a rate of 7.5% per annum, to be paid quarterly. Note holders may convert all or a portion of the outstanding principal amount of the 2015 Convertible Notes to shares of IMH common stock at a rate of $21.50 per share, subject to adjustment for stock splits and dividends. The Company has the right to force a conversion if the stock price of IMH common stock reaches $30.10 for 20 trading days in a 30 day consecutive period.

Line of Credit Agreement (Line of credit)	9 Months Ended
Line of Credit Agreement (Line of credit)	Sep. 30, 2015
Line of credit
Line of Credit Agreement
Line of Credit Agreement	Note 9.—Line of Credit Agreement The Company had a $4.0 million working capital line of credit agreement with a national bank that had an interest rate at a variable rate of one-month LIBOR plus 3.50%. The line of credit was unsecured. Under the terms of the agreement, the Company and its subsidiaries were required to maintain various financial and other covenants. As previously discussed, in June 2015, the Company used approximately $4.0 million of the proceeds from the Term Financing to fully satisfy the remaining amount due on the line of credit agreement and terminated the line. At December 31, 2014, the outstanding balance under the line of credit was $4.0 million and was included in other liabilities on the consolidated balance sheets.

Short-Term Debt (Short-Term Debt.)	9 Months Ended
Short-Term Debt (Short-Term Debt.)	Sep. 30, 2015
Short-Term Debt.
Short-Term Debt
Short-Term Debt	Note 10.—Short-Term Debt Structured Debt In December 2014, the Company entered into a $6.0 million short-term structured debt agreement using eight of the Company’s residual interests (net trust assets) as collateral. The Company received proceeds of $6.0 million and had transaction costs of approximately $60 thousand. The agreement had an interest rate of LIBOR plus 5.75% per annum, had a final repurchase date of June 29, 2015 and the Company had the right to repurchase the securities without penalty prior to the final repurchase date. As previously discussed, in June 2015, the Company used approximately $3.2 million of the proceeds from the Term Financing to satisfy fully the remaining amount due on the short-term structured debt agreement and the residuals held as collateral have been released to the Company. Promissory Note On April 27, 2015, the Company issued a $10.0 million short-term Promissory Note with an interest rate of 15% to the former owner of CCM. The balance was repaid in May 2015.

- Definition

The entire disclosure for short-term debt.

+ References+ Details

Securitized Mortgage Trusts

9 Months Ended

Sep. 30, 2015

Securitized Mortgage Trusts

Securitized Mortgage Trusts

Note 11.—Securitized Mortgage Trusts

Trust Assets

Trust assets, which are recorded at fair value, are comprised of the following at September 30, 2015 and December 31, 2014:

	September 30,		December 31,
	2015		2014
Securitized mortgage collateral	$	4,796,405	$	5,249,639
Real estate owned	18,343		18,800
Investment securities available-for-sale	50		92

Total securitized mortgage trust assets	$	4,814,798	$	5,268,531

Trust Liabilities

Trust liabilities, which are recorded at fair value, are comprised of the following at September 30, 2015 and December 31, 2014:

	September 30,		December 31,
	2015		2014
Securitized mortgage borrowings	$	4,796,400	$	5,245,860
Derivative liabilities	2,624		5,447

Total securitized mortgage trust liabilities	$	4,799,024	$	5,251,307

Changes in fair value of net trust assets, including trust REO gains (losses) are comprised of the following for the three and nine months ended September 30, 2015 and 2014:

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
Change in fair value of net trust assets, excluding REO	$	(568	)	$	139		$	1,821		$	(1,136	)
(Losses) gains from REO	(2,436		)	(47		)	(4,899		)	8,977

Change in fair value of net trust assets, including trust REO (losses) gains	$	(3,004	)	$	92		$	(3,078	)	$	7,841

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 12.—Fair Value of Financial Instruments

The use of fair value to measure the Company’s financial instruments is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value.

The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated:

	September 30, 2015								December 31, 2014
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	10,509	$	10,509	$	—	$	—	$	10,073	$	10,073	$	—	$	—
Restricted cash	5,829		5,829		—		—		2,420		2,420		—		—
Mortgage loans held-for-sale	460,808		—		460,808		—		239,391		—		239,391		—
Finance receivables	41,334		—		41,334		—		8,358		—		8,358		—
Mortgage servicing rights	63,281		—		—		63,281		24,418		—		—		24,418
Derivative assets, lending, net	13,019		—		—		13,019		2,884		—		—		2,884
Investment securities available-for-sale	50		—		—		50		92		—		—		92
Securitized mortgage collateral	4,796,405		—		—		4,796,405		5,249,639		—		—		5,249,639
Warrant	—		—		—		—		84		—		—		84

Liabilities
Warehouse borrowings	$	477,673	$	—	$	477,673	$	—	$	226,718	$	—	$	226,718	$	—
Short-term structured debt	—		—		—		—		6,000		—		—		6,000
Line of credit	—		—		—		—		4,000		—		4,000		—
Term financing	30,000		—		—		30,000		—		—		—		—
Contingent consideration	68,792		—		—		68,792		—		—		—		—
Convertible notes	45,000		—		—		45,000		20,000		—		—		20,000
Long-term debt	31,663		—		—		31,663		22,122		—		—		22,122
Securitized mortgage borrowings	4,796,400		—		—		4,796,400		5,245,860		—		—		5,245,860
Derivative liabilities, securitized trusts	2,624		—		—		2,624		5,447		—		—		5,447
Derivative liabilities, lending, net	2,312		—		2,312		—		930		—		930		—

The fair value amounts above have been estimated by management using available market information and appropriate valuation methodologies. Considerable judgment is required to interpret market data to develop the estimates of fair value in both inactive and orderly markets. Accordingly, the estimates presented are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

For securitized mortgage collateral and securitized mortgage borrowings, the underlying Alt-A (non-conforming) residential and commercial loans and mortgage-backed securities market have experienced significant declines in market activity, along with a lack of orderly transactions. The Company’s methodology to estimate fair value of these assets and liabilities include the use of internal pricing techniques such as the net present value of future expected cash flows (with observable market participant assumptions, where available) discounted at a rate of return based on the Company’s estimates of market participant requirements. The significant assumptions utilized in these internal pricing techniques, which are based on the characteristics of the underlying collateral, include estimated credit losses, estimated prepayment speeds and appropriate discount rates.

Refer to Recurring Fair Value Measurements below for a description of the valuation methods used to determine the fair value of investment securities available-for-sale, warrant, securitized mortgage collateral and borrowings, derivative assets and liabilities, contingent consideration, long-term debt, mortgage servicing rights and mortgage loans held-for-sale.

The carrying amount of cash, cash equivalents and restricted cash approximates fair value.

Finance receivables carrying amounts approximate fair value due to the short-term nature of the assets and do not present unanticipated interest rate or credit concerns.

Warehouse borrowings carrying amounts approximate fair value due to the short-term nature of the liabilities and do not present unanticipated interest rate or credit concerns.

Convertible notes are recorded at amortized cost. The estimated fair value is determined using a discounted cash flow model using estimated market rates.

Term financing is recorded at amortized cost. The estimated fair value is determined using a discounted cash flow model using estimated market rates.

Line of credit carrying amount approximates fair value due to the short-term nature of the liability and does not present unanticipated interest rate or credit concerns.

Fair Value Hierarchy

The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value.

FASB ASC 820-10-35 specifies a hierarchy of valuation techniques based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy:

Level 1—Quoted prices (unadjusted) in active markets for identical instruments or liabilities that an entity has the ability to assess at measurement date.

Level 2—Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; inputs other than quoted prices that are observable for an asset or liability, including interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, loss severities, credit risks and default rates; and market-corroborated inputs.

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers is unobservable.

This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value.

As a result of the lack of observable market data resulting from inactive markets, the Company has classified its investment securities available-for-sale, securitized mortgage collateral and borrowings, net derivative liabilities, securitized trusts, long-term debt, interest rate lock commitments (IRLCs), mortgage servicing rights, warrant and contingent consideration as Level 3 fair value measurements. Level 3 assets and liabilities were 91% and 99% and 96% and 99%, respectively, of total assets and total liabilities measured at estimated fair value at September 30, 2015 and December 31, 2014.

Recurring Fair Value Measurements

The Company assesses the financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by ASC Topic 810. Transfers between fair value classifications occur when there are changes in pricing observability levels. Transfers of financial instruments among the levels occur at the beginning of the reporting period. There were no material transfers between our Level 1 and Level 2 classified instruments during the three and nine months ended September 30, 2015.

The following tables present the Company’s assets and liabilities that are measured at estimated fair value on a recurring basis, including financial instruments for which the Company has elected the fair value option at September 30, 2015 and December 31, 2014, based on the fair value hierarchy:

	Recurring Fair Value Measurements
	September 30, 2015						December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Investment securities available-for-sale	$	—	$	—	$	50	$	—	$	—	$	92
Mortgage loans held-for-sale	—		460,808		—		—		239,391		—
Derivative assets, lending, net (1)	—		—		13,019		—		—		2,884
Mortgage servicing rights	—		—		63,281		—		—		24,418
Warrant (2)	—		—		—		—		—		84
Securitized mortgage collateral	—		—		4,796,405		—		—		5,249,639


Total assets at fair value	$	—	$	460,808	$	4,872,755	$	—	$	239,391	$	5,277,117



Liabilities
Securitized mortgage borrowings	$	—	$	—	$	4,796,400	$	—	$	—	$	5,245,860
Derivative liabilities, securitized trusts (3)	—		—		2,624		—		—		5,447
Long-term debt	—		—		31,663		—		—		22,122
Contingent consideration	—		—		68,792		—		—		—
Derivative liabilities, lending, net (4)	—		2,312		—		—		930		—


Total liabilities at fair value	$	—	$	2,312	$	4,899,479	$	—	$	930	$	5,273,429

(1)

At September 30, 2015, derivative assets, lending, net included $13.0 million in IRLCs associated with the Company’s mortgage lending operations, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2014, derivative assets, lending, net included $3.0 million in IRLCs associated with the Company’s mortgage lending operations, and is included in other assets in the accompanying consolidated balance sheets.

(2)

Included in other assets in the accompanying consolidated balance sheets.

(3)

At September 30, 2015 and December 31, 2014, derivative liabilities, securitized trusts, are included within trust liabilities in the accompanying consolidated balance sheets.

(4)

At September 30, 2015 and December 31, 2014, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

The following tables present reconciliations for all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2015 and 2014:

	Level 3 Recurring Fair Value Measurements
	For the three months ended September 30, 2015
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net		Long-term debt			Contingent consideration			Warrant
Fair value, June 30, 2015	$	81		$	4,979,433		$	(4,977,150	)	$	(3,509	)	$	44,244		$	8,406	$	(31,438	)	$	(91,407	)	$	165
Total gains (losses) included in earnings:
Interest income (1)	2			18,930			—			—			—			—		—			—			—
Interest expense (1)	—			—			(53,552		)	—			—			—		(225		)	—			—
Change in fair value	(7		)	(13,485		)	13,051			(127		)	(4,347		)	4,613		—			14,473			(165		)

Total (losses) gains included in earnings	(5		)	5,445			(40,501		)	(127		)	(4,347		)	4,613		(225		)	14,473			(165		)
Transfers in and/or out of Level 3	—			—			—			—			—			—		—			—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—		—			—			—
Issuances	—			—			—			—			23,384			—		—			—			—
Settlements	(26		)	(188,473		)	221,251			1,012			—			—		—			8,142			—

Fair value, September 30, 2015	$	50		$	4,796,405		$	(4,796,400	)	$	(2,624	)	$	63,281		$	13,019	$	(31,663	)	$	(68,792	)	$	—

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $2.0 million for the three months ended September 30, 2015. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

	Level 3 Recurring Fair Value Measurements
	For the three months ended September 30, 2014
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net			Long-term debt			Warrant
Fair value, June 30, 2014	$	91		$	5,510,741		$	(5,507,629	)	$	(7,949	)	$	16,166		$	3,073		$	(17,555	)	$	—
Total gains (losses) included in earnings:
Interest income (1)	6			21,312			—			—			—			—			—			—
Interest expense (1)	—			—			(64,502		)	—			—			—			(485		)	—
Change in fair value	11			(27,784		)	27,899			13			(1,205		)	(757		)	—			—

Total gains (losses) included in earnings	17			(6,472		)	(36,603		)	13			(1,205		)	(757		)	(485		)	—
Transfers in and/or out of Level 3	—			—			—			—			—						—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—									—			—
Issuances	—			—			—			—			8,913			—			—			164
Settlements	(18		)	(153,795		)	197,441			1,369			(10,306		)	—			—			—

Fair value, September 30, 2014	$	90		$	5,350,474		$	(5,346,791	)	$	(6,567	)	$	13,568		$	2,316		$	(18,040	)	$	164

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $1.8 million for the three months ended September 30, 2014. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

	Level 3 Recurring Fair Value Measurements
	For the nine months ended September 30, 2015
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net		Long-term debt			Contingent consideration			Warrant
Fair value, December 31, 2014	$	92		$	5,249,639		$	(5,245,860	)	$	(5,447	)	$	24,418		$	2,884	$	(22,122	)	$	—		$	84
Total gains (losses) included in earnings:
Interest income (1)	9			49,719			—			—			—			—		—			—			—
Interest expense (1)	—			—			(160,249		)	—			—			—		(880		)	—			—
Change in fair value	33			6,918			(4,647		)	(483		)	(7,984		)	10,135		(8,661		)	22,752			(84		)

Total gains (losses) included in earnings	42			56,637			(164,896		)	(483		)	(7,984		)	10,135		(9,541		)	22,752			(84		)
Transfers in and/or out of Level 3	—			—			—			—			—			—		—			—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—		—			—			—
Issuances	—			—			—			—			76,119			—		—			(124,592		)	—
Settlements	(84		)	(509,871		)	614,356			3,306			(29,272		)	—		—			33,048			—

Fair value, September 30, 2015	$	50		$	4,796,405		$	(4,796,400	)	$	(2,624	)	$	63,281		$	13,019	$	(31,663	)	$	(68,792	)	$	—

Unrealized gains (losses) still held (2)	$	50		$	(1,143,833	)	$	3,287,018		$	(2,390	)	$	63,281		$	13,019	$	39,100		$	(68,792	)	$	—

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $6.3 million for the nine months ended September 30, 2015. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2015.

	Level 3 Recurring Fair Value Measurements
	For the nine months ended September 30, 2014
	Investment securities available-for- sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net			Long-term debt			Warrant
Fair value, December 31, 2013	$	108		$	5,494,152		$	(5,492,371	)	$	(10,214	)	$	35,981		$	913		$	(15,871	)	$	—
Total gains (losses) included in earnings:
Interest income (1)	19			42,268			—			—			—			—			—			—
Interest expense (1)	—			—			(177,629		)	—			—			—			(1,745		)	—
Change in fair value	27			289,610			(290,360		)	(413		)	(4,928		)	1,414			(424		)	—

Total (losses) gains included in earnings	46			331,878			(467,989		)	(413		)	(4,928		)	1,414			(2,169		)	—
Transfers in and/or out of Level 3	—			—			—			—			—						—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—			—			—
Issuances	—			—			—			—			17,238			—			—			164
Settlements	(64		)	(475,556		)	613,569			4,060			(34,723		)	(11		)	—			—

Fair value, September 30, 2014	$	90		$	5,350,474		$	(5,346,791	)	$	(6,567	)	$	13,568		$	2,316		$	(18,040	)	$	164

Unrealized gains (losses) still held (2)	$	84		$	(1,446,463	)	$	3,581,924		$	(6,132	)	$	13,568		$	2,316		$	52,723		$	164

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $4.0 million for the nine months ended September 30, 2014. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2014.

The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis at September 30, 2015:

Financial Instrument	Estimated Fair Value			Valuation Technique	Unobservable Input	Range of Inputs	Weighted Average
Assets and liabilities backed by real estate
Investment securities available-for-sale,	$	50		DCF	Discount rates	3.2 - 25.0%	5.1	%
Securitized mortgage collateral, and	4,796,405				Prepayment rates	2.1 - 28.1%	6.0	%
Securitized mortgage borrowings	(4,796,400		)		Default rates	0.6 - 15.5%	2.8	%
					Loss severities	5.4 - 60.2%	37.8	%
Other assets and liabilities
Mortgage servicing rights	$	63,281		DCF	Discount rate	9.5 - 12.5%	9.9	%
					Prepayment rates	3.3 - 28.7%	10.2	%
Derivative liabilities, net, securitized trusts	(2,624		)	DCF	1M forward LIBOR	0.2 - 2.8%	N/A
Derivative assets - IRLCs, net	13,019			Market pricing	Pull -through rate	38.0 - 99.0%	75.6	%
Long-term debt	(31,663		)	DCF	Discount rate	14.4%	14.4	%
Lease liability	(984		)	DCF	Discount rate	12.0%	12.0	%
Contingent consideration	(68,792		)	DCF	Discount rate	17.0%	17.0	%
					Margins	1.6 - 3.7%	2.5	%
					Probability of outcomes (1)	25.0 - 50.0%	32.1	%

DCF = Discounted Cash Flow

1M = 1 Month

(1)Probability of outcomes is the probability of projected CCM earnings over the earn-out period based upon three scenarios (base, low and high).

For assets and liabilities backed by real estate, a significant increase in discount rates, default rates or loss severities would result in a significantly lower estimated fair value. The effect of changes in prepayment speeds would have differing effects depending on the seniority or other characteristics of the instrument. For other assets and liabilities, a significant increase in discount rates would result in a significantly lower estimated fair value. A significant increase in one-month LIBOR would result in a significantly higher estimated fair value for derivative liabilities, net, securitized trusts. The Company believes that the imprecision of an estimate could be significant.

The following tables present the changes in recurring fair value measurements included in net earnings (loss) for the three and nine months ended September 30, 2015 and 2014:

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Earnings
	For the three months ended September 30, 2015
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt		Other Revenue and Expense			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	2	$	—		$	(7	)	$	—	$	—		$	—		$	(5	)
Securitized mortgage collateral	18,930		—			(13,485		)	—		—			—			5,445
Securitized mortgage borrowings	—		(53,552		)	13,051			—		—			—			(40,501		)
Derivative liabilities, net, securitized trusts	—		—			(127		)(2)	—		—			—			(127		)
Long-term debt	—		(225		)	—			—		—			—			(225		)
Mortgage servicing rights (3)	—		—			—			—		(4,347		)	—			(4,347		)
Warrant	—		—			—			—		(165		)	—			(165		)
Contingent consideration	—		—			—			—		14,473			—			14,473
Mortgage loans held-for-sale	—		—			—			—		—			6,678			6,678
Derivative assets - IRLCs	—		—			—			—		—			4,613			4,613
Derivative liabilities - Hedging Instruments	—		—			—			—		—			(3,658		)	(3,658		)

Total	$	18,932	$	(53,777	)	$	(568	)	$	—	$	9,961		$	7,633		$	(17,819	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in this amount is $835 thousand in changes in the fair value of derivative instruments, offset by $963 thousand in cash payments from the securitization trusts for the three months ended September 30, 2015.

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Loss
	For the three months ended September 30, 2014
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt		Other Revenue			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	6	$	—		$	11		$	—	$	—		$	—		$	17
Securitized mortgage collateral	21,312		—			(27,784		)	—		—			—			(6,472		)
Securitized mortgage borrowings	—		(64,502		)	27,899			—		—			—			(36,603		)
Derivative liabilities, net, securitized trusts	—		—			13		(2)	—		—			—			13
Long-term debt	—		(485		)	—			—		—			—			(485		)
Mortgage servicing rights (3)	—		—			—			—		(1,205		)	—			(1,205		)
Mortgage loans held-for-sale	—		—			—			—		—			2,294			2,294
Derivative assets - IRLCs	—		—			—			—		—			(757		)	(757		)
Derivative liabilities - Hedging Instruments	—		—			—			—		—			841			841

Total	$	21,318	$	(64,987	)	$	139		$	—	$	(1,205	)	$	2,378		$	(42,357	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in this amount is $1.3 million in change in the fair value of derivative instruments, offset by $1.3 million in cash payments from the securitization trusts for the three months ended September 30, 2014.

(3)

Included in (loss) gain on mortgage servicing rights in the consolidated statements of operations.

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Earnings
	For the nine months ended September 30, 2015
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt			Other Revenue and Expense			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	9	$	—		$	33		$	—		$	—		$	—		$	42
Securitized mortgage collateral	49,719		—			6,918			—			—			—			56,637
Securitized mortgage borrowings	—		(160,249		)	(4,647		)	—			—			—			(164,896		)
Derivative liabilities, net, securitized trusts	—		—			(483		)(2)	—			—			—			(483		)
Long-term debt	—		(880		)	—			(8,661		)	—			—			(9,541		)
Mortgage servicing rights (3)	—		—			—			—			(7,984		)	—			(7,984		)
Warrant	—		—			—			—			(84		)	—			(84		)
Contingent consideration	—		—			—			—			22,752			—			22,752
Mortgage loans held-for-sale	—		—			—			—			—			9,030			9,030
Derivative assets - IRLCs	—		—			—			—			—			10,135			10,135
Derivative liabilities - Hedging Instruments	—		—			—			—			—			(1,381		)	(1,381		)

Total	$	49,728	$	(161,129	)	$	1,821	(4)	$	(8,661	)	$	14,684		$	17,784		$	(85,773	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in this amount is $2.7 million in changes in the fair value of derivative instruments, offset by $3.2 million in cash payments from the securitization trusts for the nine months ended September 30, 2015.

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

(4)

For the nine months ended September 30, 2015, change in the fair value of net trust assets, excluding REO was $1.8 million. Excluded from the $5.0 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $3.2 million in cash payments from the securitization trusts related to the Company’s net derivative liabilities.

	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the nine months ended September 30, 2014
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt			Other Revenue			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	19	$	—		$	27		$	—		$	—		$	—		$	46
Securitized mortgage collateral	42,268		—			289,610			—			—			—			331,878
Securitized mortgage borrowings	—		(177,629		)	(290,360		)	—			—			—			(467,989		)
Derivative liabilities, net, securitized trusts	—		—			(413		)(2)	—			—			—			(413		)
Long-term debt	—		(1,745		)	—			(424		)	—			—			(2,169		)
Mortgage servicing rights (3)	—		—			—			—			(4,928		)	—			(4,928		)
Mortgage loans held-for-sale	—		—			—			—			—			5,103			5,103
Derivative assets - IRLCs	—		—			—			—			—			1,414			1,414
Derivative liabilities - Hedging Instruments	—		—			—			—			—			(1,244		)	(1,244		)

Total	$	42,287	$	(179,374	)	$	(1,136	)(4)	$	(424	)	$	(4,928	)	$	5,273		$	(138,302	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

Included in this amount is $3.5 million in changes in the fair value of derivative instruments, offset by $3.9 million in cash payments from the securitization trusts for the nine months ended September 30, 2014.

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

(4)

For the nine months ended September 30, 2014, change in the fair value of net trust assets, excluding REO was $1.1 million. Excluded from the $(2.8) million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $3.9 million in cash payments from the securitization trusts related to the Company’s net derivative liabilities.

The following is a description of the measurement techniques for items recorded at estimated fair value on a recurring basis.

Investment securities available-for-sale—Investment securities available-for-sale are carried at fair value. The investment securities consist primarily of non-investment grade mortgage-backed securities. The fair value of the investment securities is measured based upon the Company’s expectation of inputs that other market participants would use. Such assumptions include judgments about the underlying collateral, prepayment speeds, future credit losses, forward interest rates and certain other factors. Given the lack of observable market data as of September 30, 2015 and December 31, 2014 relating to these securities, the estimated fair value of the investment securities available-for-sale was measured using significant internal expectations of market participants’ assumptions. Investment securities available-for-sale is considered a Level 3 measurement at September 30, 2015.

Mortgage servicing rights—The Company elected to carry its mortgage servicing rights arising from its mortgage loan origination operation at estimated fair value. The fair value of mortgage servicing rights is based upon market prices for similar instruments and a discounted cash flow model. The valuation model incorporates assumptions that market participants would use in estimating the fair value of servicing. These assumptions include estimates of prepayment speeds, discount rate, cost to service, escrow account earnings, contractual servicing fee income, prepayment and late fees, among other considerations. Mortgage servicing rights are considered a Level 3 measurement at September 30, 2015.

Mortgage loans held-for-sale—The Company elected to carry its mortgage loans held-for-sale originated or acquired at estimated fair value. Fair value is based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants. Given the meaningful level of secondary market activity for mortgage loans, active pricing is available for similar assets and accordingly, the Company classifies its mortgage loans held-for-sale as a Level 2 measurement at September 30, 2015.

Securitized mortgage collateral—The Company elected to carry its securitized mortgage collateral at fair value. These assets consist primarily of non-conforming mortgage loans securitized between 2002 and 2007. Fair value measurements are based on the Company’s internal models used to compute the net present value of future expected cash flows with observable market participant assumptions, where available. The Company’s assumptions include its expectations of inputs that other market participants would use in pricing these assets. These assumptions include judgments about the underlying collateral, prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of September 30, 2015, securitized mortgage collateral had UPB of $5.9 billion, compared to an estimated fair value on the Company’s balance sheet of $4.8 billion. The aggregate UPB exceeds the fair value by $1.1 billion at September 30, 2015. As of September 30, 2015, the UPB of loans 90 days or more past due was $0.9 billion compared to an estimated fair value of $0.4 billion. The aggregate UPB of loans 90 days or more past due exceed the fair value by $0.5 billion at September 30, 2015. Securitized mortgage collateral is considered a Level 3 measurement at September 30, 2015.

Securitized mortgage borrowings—The Company elected to carry its securitized mortgage borrowings at fair value. These borrowings consist of individual tranches of bonds issued by securitization trusts and are primarily backed by non-conforming mortgage loans. Fair value measurements include the Company’s judgments about the underlying collateral and assumptions such as prepayment speeds, estimated future credit losses, forward interest rates, investor yield requirements and certain other factors. As of September 30, 2015, securitized mortgage borrowings had an outstanding principal balance of $5.9 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $4.8 billion. The aggregate outstanding principal balance exceeds the fair value by $1.1 billion at September 30, 2015. Securitized mortgage borrowings are considered a Level 3 measurement at September 30, 2015.

Contingent consideration—Contingent consideration is applicable to the acquisition of CCM and is estimated and recorded at fair value at the acquisition date as part of purchase price consideration. Additionally, each reporting period, the Company estimates the change in fair value of the contingent consideration and any change in fair value is recognized in the Company’s consolidated statements of operations if it is determined to not be a measurement period adjustment. The estimate of the fair value of contingent consideration requires significant judgment and assumptions to be made about future operating results, discount rates and probabilities of various projected operating result scenarios. During the nine monthes ended September 30, 2015, the change in fair value of contingent consideration was related to the estimated reduction in future pre-tax earnings of CCM over the expected earn-out period, primarily due to margin compression. Future revisions to these assumptions could materially change the estimated fair value of contingent consideration and materially affect the Company’s financial results. Contingent consideration is considered a Level 3 measurement at September 30, 2015.

Long-term debt—The Company elected to carry all of its long-term debt (consisting of trust preferred securities and junior subordinated notes) at fair value. These securities are measured based upon an analysis prepared by management, which considered the Company’s own credit risk, including settlements with trust preferred debt holders and discounted cash flow analysis. As of September 30, 2015, long-term debt had UPB of $70.5 million compared to an estimated fair value of $31.7 million. The aggregate UPB exceeds the fair value by $38.8 million at September 30, 2015. The long-term debt is considered a Level 3 measurement at September 30, 2015.

Derivative assets and liabilities, Securitized trusts—For non-exchange traded contracts, fair value is based on the amounts that would be required to settle the positions with the related counterparties as of the valuation date. Valuations of derivative assets and liabilities are based on observable market inputs, if available. To the extent observable market inputs are not available, fair values measurements include the Company’s judgments about future cash flows, forward interest rates and certain other factors, including counterparty risk. Additionally, these values also take into account the Company’s own credit standing, to the extent applicable; thus, the valuation of the derivative instrument includes the estimated value of the net credit differential between the counterparties to the derivative contract. As of September 30, 2015, the notional balance of derivative assets and liabilities, securitized trusts was $74.0 million. These derivatives are included in the consolidated securitization trusts, which are nonrecourse to the Company, and thus the economic risk from these derivatives is limited to the Company’s residual interests in the securitization trusts. Derivative assets and liabilities, securitized trusts are considered a Level 3 measurement at September 30, 2015.

Derivative assets and liabilities, Lending—The Company’s derivative assets and liabilities are carried at fair value as required by GAAP and are accounted for as free standing derivatives. IRLCs and hedging instruments can be either assets or liabilities depending on interest rate fluctuations subsequent to entering into the commitments. IRLCs are entered into with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked in that interest rate. These commitments are determined to be derivative instruments in accordance with GAAP. Hedging instruments (typically TBA MBS) are used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending operations. The Company hedges the period from the interest rate lock (assuming a fall-out factor) to the date the loan is committed for sale. The estimated fair value of IRLCs are based on underlying loan types with similar characteristics using the TBA MBS market, which is actively quoted and easily validated through external sources. The data inputs used in this valuation include, but are not limited to, loan type, underlying loan amount, note rate, loan program, and expected sale date of the loan, adjusted for current market conditions. These valuations are adjusted at the loan level to consider the servicing release premium and loan pricing adjustments specific to each loan. For all IRLCs, the base value is then adjusted for the anticipated Pull-through Rate. The anticipated Pull-through Rate is an unobservable input based on historical experience, which results in classification of IRLCs as a Level 3 measurement at September 30, 2015.

The fair value of the hedging instruments is based on the actively quoted TBA MBS market using observable inputs related to characteristics of the underlying MBS stratified by product, coupon and settlement date. Therefore, the hedging instruments are classified as a Level 2 measurement at September 30, 2015.

The following table includes information for the derivative assets and liabilities, lending for the periods presented:

	Notional Amount				Total Gains (Losses) (1)
	September 30,		September 30,		For the three months ended September 30,						For the nine months ended September 30,
	2015		2014		2015			2014			2015			2014
Derivative - IRLC’s	$	664,890	$	208,433	$	4,613		$	(757	)	$	10,135		$	1,414
Derivative - TBA MBS	550,210		285,797		(10,406		)	(1,595		)	(9,835		)	(9,823		)

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations.

Warrant— Upon entering an arrangement to facilitate the Company’s ability to offer Non-QM mortgage products, a warrant to purchase up to 9.9% of Impac Mortgage Corp. was issued. The warrant expired in August and was not exercised. The estimated fair value of the warrant was based on a model incorporating various assumptions including expected future book value of Impac Mortgage Corp., the probability of the warrant being exercised, volatility, expected term and certain other factors.

Nonrecurring Fair Value Measurements

The Company is required to measure certain assets and liabilities at estimated fair value from time to time. These fair value measurements typically result from the application of specific accounting pronouncements under GAAP. The fair value measurements are considered nonrecurring fair value measurements under FASB ASC 820-10.

The following tables present financial and non-financial assets and liabilities measured using nonrecurring fair value measurements at September 30, 2015 and 2014, respectively:

	Nonrecurring Fair Value Measurements							Total Gains (Losses) (1)
	September 30, 2015							For the Three Months Ended			For the Nine Months Ended
	Level 1		Level 2		Level 3			September 30, 2015			September 30, 2015
REO (2)	$	—	$	2,066	$	—		$	(2,436	)	$	(4,900	)
Lease liability (3)	—		—		(984		)	(14		)	(53		)
Deferred charge (4)	—		—		10,467			(421		)	(1,054		)

(1)

Total gains (losses) reflect gains and losses from all nonrecurring measurements during the period.

(2)

Balance represents REO at September 30, 2015 which has been impaired subsequent to foreclosure. For the three months ended September 30, 2015, the $2.4 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). For the nine months ended September 30, 2015, the $4.9 million loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV).

(3)

For the three and nine months ended September 30, 2015, the Company recorded $14 thousand and $53 thousand expense, resulting from changes in lease liabilities as a result of changes in our expected minimum future lease payments.

(4)

For the three and nine months ended September 30, 2015, the Company recorded $421 thousand and $1.1 million in income tax expense resulting from impairment write-downs of deferred charge based on changes in estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral.

	Non-recurring Fair Value Measurements							Total Gains (Losses) (1)
	September 30, 2014							For the Three Months Ended			For the Nine Months Ended
	Level 1		Level 2		Level 3			September 30, 2014			September 30, 2014
REO (2)	$	—	$	1,686	$	—		$	(47	)	$	8,977
Lease liability (3)	—		—		(1,705		)	11			(617		)

(1)

Total gains (losses) reflect gains and losses from all nonrecurring measurements during the period.(1)

(2)

Balance represents REO at September 30, 2014 which has been impaired subsequent to foreclosure. Amounts are included in continuing operations. For the three months ended September 30, 2014, the $47 thousand loss represents additional impairment write-downs attributable to higher expected loss severities on properties held during the period which resulted in a decrease to the net realizable value (NRV). For the nine months ended September 30, 2014, $9.0 million gain represents recovery of the NRV attributable to an improvement in state specific loss severities on properties held during the period which resulted in an increase to NRV.(2)

(3)

For the three and nine months ended September 30, 2014, the Company recorded an $11 thousand recovery and $617 thousand in impairment, resulting from changes in lease liabilities as a result of changes in our expected minimum future lease payments.

Real estate owned—REO consists of residential real estate acquired in satisfaction of loans. Upon foreclosure, REO is adjusted to the estimated fair value of the residential real estate less estimated selling and holding costs, offset by expected contractual mortgage insurance proceeds to be received, if any. Subsequently, REO is recorded at the lower of carrying value or estimated fair value less costs to sell. REO balance representing REOs which have been impaired subsequent to foreclosure are subject to nonrecurring fair value measurement and included in the nonrecurring fair value measurements tables. Fair values of REO are generally based on observable market inputs, and considered Level 2 measurements at September 30, 2015.

Lease liability—In connection with the discontinuation of our non-conforming lending and commercial operations in 2007, a significant amount of office space that was previously occupied is no longer being used by the Company. The Company has subleased a significant amount of this office space. Additionally, the Company has office space that is no longer occupied by the Company and we intend to sublease it. The Company has recorded a liability representing the present value of the minimum lease payments over the remaining life of the lease, offset by the expected proceeds from sublet revenue related to this office space. This liability is based on present value techniques that incorporate the Company’s judgments about estimated sublet revenue and discount rates. Therefore, this liability is considered a Level 3 measurement at September 30, 2015.

Deferred charge— Deferred charge represents the deferral of income tax expense on inter-company profits that resulted from the sale of mortgages from taxable subsidiaries to IMH in prior years. The Company evaluates the deferred charge for impairment quarterly using internal estimates of estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral. If the deferred charge is determined to be impaired, it is recognized as a component of income tax expense. For the three and nine months ended September 30, 2015, the Company recorded $421 thousand and $1.1 million in income tax expense resulting from deferred charge impairment write-downs based on changes in estimated fair value of securitized mortgage collateral. There was no impairment of the deferred charge in the three and nine months ended September 30, 2014. Deferred charge is considered a Level 3 measurement at September 30, 2015.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2015
Income Taxes
Income Taxes	Note 13.—Income Taxes The Company calculates its quarterly tax provision pursuant to the guidelines in ASC 740 Income Taxes. ASC 740 requires companies to estimate the annual effective tax rate for current year ordinary income. In calculating the effective tax rate, permanent differences between financial reporting and taxable income are factored into the calculation, but temporary differences are not. The estimated annual effective tax rate represents the best estimate of the tax provision in relation to the best estimate of pre-tax ordinary income or loss. The estimated annual effective tax rate is then applied to year-to-date ordinary income or loss to calculate the year-to-date interim tax provision. The Company recorded income tax expense (benefit) of $781 thousand and ($22.9) million for the three and nine months ended September 30, 2015. For the three months ended September 30, 2015, the Company recorded amortization of the deferred charge and an increase in current income tax provision based upon an estimated increase in federal alternative minimum tax (AMT) and state income taxes. For the nine months ended September 30, 2015, the Company recorded a benefit of $24.4 million primarily the result of a reversal of valuation allowance partially offset by federal alternative minimum tax (AMT), amortization of the deferred charge and state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT. The deferred charge represents the deferral of income tax expense on inter-company profits that resulted from the sale of mortgages from taxable subsidiaries to IMH prior to 2008. The deferred charge is amortized and/or impaired, which does not result in any tax liability to be paid. The deferred charge is included in other assets in the accompanying consolidated balance sheets and is amortized as a component of income tax expense in the accompanying consolidated statements of operations. For the three and nine months ended September 30, 2014, the Company recorded expense of $307 thousand and $1.4 million, respectively, primarily related to federal and state AMT associated with taxable income generated from the sale of AmeriHome and mortgage servicing rights. Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” A valuation allowance is recognized for a deferred tax asset if, based on the weight of the available evidence, it is more likely than not that some portion of the deferred tax asset will not be realized. In making such judgments, significant weight is given to evidence that can be objectively verified. As of each reporting date, the Company considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectation of future performance. The Company’s deferred tax assets are primarily the result of net operating losses and other fair value write downs of financial assets and liabilities. As of December 31, 2014, the Company had net deferred tax assets of approximately $163.2 million which the Company recorded a full valuation allowance against. During the first quarter of 2015, with the aforementioned acquisition of CCM, the Company significantly expanded its mortgage lending operations and profitability. As of March 31, 2015, in part because of the earnings of CCM during the first quarter of 2015, current year projected earnings, future projected earnings as well as the historical earnings of CCM, management determined that sufficient positive evidence exists to conclude that it is more likely than not that deferred taxes of $24.4 million are realizable in future years, and therefore, reduced the valuation allowance accordingly. Although realization is not assured, the Company believes that the realization of the recognized deferred tax asset of $24.4 million at September 30, 2015 is more likely than not based on future forecasted net earnings. The Company has recorded a valuation allowance against its remaining net deferred tax assets at September 30, 2015 as it is more likely than not that not all of the deferred tax assets will be realized. The valuation allowance is based on the management’s assessment that it is more likely than not that certain deferred tax assets, primarily net operating loss carryforwards, may not be realized in the foreseeable future due to objective negative evidence that the Company would not generate sufficient taxable income to realize the deferred tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

Reconciliation of Earnings Per Share

9 Months Ended

Sep. 30, 2015

Reconciliation of Earnings Per Share

Reconciliation of Earnings Per Share

Note 14.—Reconciliation of Earnings Per Share

Basic net earnings per share is computed by dividing net earnings available to common stockholders (numerator) by the weighted average number of vested, common shares outstanding during the period (denominator). Diluted net earnings per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the if-converted method. Dilutive potential common shares include shares issuable upon conversion of Convertible Notes, dilutive effect of outstanding stock options and deferred stock units (DSUs).

	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2015		2014			2015		2014
Numerator for basic earnings (loss) per share:
Net earnings (loss)	$	19,309	$	(1,201	)	$	70,090	$	(4,085	)

Numerator for diluted earnings (loss) per share:
Net earnings (loss)	$	19,309	$	(1,201	)	$	70,090	$	(4,085	)
Interest expense attributable to convertible notes	844		—			1,875		—

Net earnings (loss) plus interest expense attributable to convertible notes	$	20,153	$	(1,201	)	$	71,965	$	(4,085	)


Denominator for basic earnings (loss) per share (1):
Basic weighted average common shares outstanding during the year	10,242		9,466			10,019		9,262


Denominator for diluted earnings (loss) per share (1):
Basic weighted average common shares outstanding during the year	10,242		9,466			10,019		9,262
Net effect of dilutive convertible notes	3,002		—			2,461		—
Net effect of dilutive stock options and DSU’s	354		—			357		—

Diluted weighted average common shares	13,598		9,466			12,837		9,262


Net earnings (loss) per common share:
Basic	$	1.89	$	(0.13	)	$	7.00	$	(0.44	)

Diluted	$	1.48	$	(0.13	)	$	5.61	$	(0.44	)

(1)

Number of shares presented in thousands.

For the three and nine months ended September 30, 2015 there were 367 thousand anti-dilutive stock options outstanding. The anti-dilutive stock options outstanding for the three and nine months ended September 30, 2014 were 2.9 million shares. Included in the anti-dilutive shares for the three and nine months ended September 30, 2014 was 1.8 million shares attributable to the 2013 Convertible Notes.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting

Segment Reporting

Note 15.—Segment Reporting

The Company has three primary reporting segments which include mortgage lending, real estate services and long-term mortgage portfolio. Unallocated corporate and other administrative costs, including the costs associated with being a public company, are presented in Corporate and other.

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
three months ended September 30, 2015:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	47,274		$	—		$	—		$	—		$	47,274
Real estate services fees, net	—			2,775			—			—			2,775
Servicing income, net	2,432			—			—			—			2,432
Loss on mortgage servicing rights	(4,818		)	—			—			—			(4,818		)
Other revenue	(145		)	—			79			55			(11		)
Other income (expense)	658			—			(1,936		)	(1,607		)	(2,885		)
Total expense (income)	(21,354		)	(1,447		)	(263		)	(1,613		)	(24,677		)

Net earnings before income taxes	$	24,047		$	1,328		$	(2,120	)	$	(3,165	)	20,090

Income tax expense													781

Net earnings													$	19,309

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
three months ended September 30, 2014:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	8,602		$	—		$	—		$	—		$	8,602
Real estate services fees, net	—			3,243			—			—			3,243
Servicing income, net	913			—			—			—			913
Loss on mortgage servicing rights	(998		)	—			—			—			(998		)
Other revenue	109			—			86			2			197
Other income (expense)	403			(6		)	847			(405		)	839
Total expenses	(8,746		)	(1,386		)	(214		)	(3,344		)	(13,690		)

Net earnings (loss) before income taxes	$	283		$	1,851		$	719		$	(3,747	)	(894		)

Income tax expense													307

Net loss													$	(1,201	)

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
nine months ended September 30, 2015:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	133,018		$	—		$	—		$	—		$	133,018
Real estate services fees, net	—			7,872			—			—			7,872
Servicing income, net	4,083			—			—			—			4,083
Loss on mortgage servicing rights	(14,176		)	—			—			—			(14,176		)
Other revenue	(25		)	—			203			105			283
Other income (expense)	1,673			—			(8,281		)	(2,996		)	(9,604		)
Total expense (income)	(63,347		)	(4,422		)	(611		)	(5,858		)	(74,238		)

Net earnings (loss) before income taxes	$	61,226		$	3,450		$	(8,689	)	$	(8,749	)	47,238

Income tax benefit													(22,852		)

Net earnings													$	70,090

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
nine months ended September 30, 2014:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	19,468		$	—		$	—		$	—		$	19,468
Real estate services fees, net	—			11,282			—			—			11,282
Servicing income, net	3,773			—			—			—			3,773
Loss on mortgage servicing rights	(3,540		)	—			—			—			(3,540		)
Other revenue	1,366			—			296			41			1,703
Other income (expense)	774			(5		)	8,198			(1,212		)	7,755
Total expenses	(26,320		)	(4,443		)	(720		)	(11,638		)	(43,121		)

Net (loss) earnings before income taxes	$	(4,479	)	$	6,834		$	7,774		$	(12,809	)	(2,680		)

Income tax expense													1,405

Net loss													$	(4,085	)

	Mortgage		Real Estate		Long-term Mortgage		Corporate
Balance Sheet Items as of:	Lending		Services		Portfolio		and other		Consolidated
Total Assets at September 30, 2015 (1)	$	737,547	$	2,893	$	4,825,472	$	28,971	$	5,594,883

Total Assets at December 31, 2014 (1)	$	291,829	$	2,672	$	5,280,274	$	3,797	$	5,578,572

(1)

All segment asset balances exclude intercompany balances.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Commitments and Contingencies

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies

Commitments and Contingencies

Note 16.—Commitments and Contingencies

Legal Proceedings

The Company is a defendant in or a party to a number of legal actions or proceedings that arise in the ordinary course of business. In some of these actions and proceedings, claims for monetary damages are asserted against the Company. In view of the inherent difficulty of predicting the outcome of such legal actions and proceedings, the Company generally cannot predict what the eventual outcome of the pending matters will be, what the timing of the ultimate resolution of these matters will be, or what the eventual loss related to each pending matter may be, if any.

In accordance with applicable accounting guidance, the Company establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and estimable. In any case, there may be an exposure to losses in excess of any such amounts whether accrued or not. Any estimated loss is subject to significant judgment and is based upon currently available information, a variety of assumptions, and known and unknown uncertainties. The matters underlying the estimated loss will change from time to time, and actual results may vary significantly from the current estimate. Therefore, an estimate of possible loss represents what the Company believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company’s maximum loss exposure.

Based on the Company’s current understanding of these pending legal actions and proceedings, management does not believe that judgments or settlements arising from pending or threatened legal matters, individually or in the aggregate, will have a material adverse effect on the consolidated financial position, operating results or cash flows of the Company. However, in light of the inherent uncertainties involved in these matters, some of which are beyond the Company’s control, and the very large or indeterminate damages sought in some of these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period.

The Company is a party to other litigation and claims which are normal in the course of our operations. While the results of such other litigation and claims cannot be predicted with certainty, we believe the final outcome of such matters will not have a material adverse effect on our financial condition or results of operations. The Company believes that it has meritorious defenses to the claims and intends to defend these claims vigorously and as such the Company believes the final outcome of such matters will not have a material adverse effect on its financial condition or results of operations. Nevertheless, litigation is uncertain and the Company may not prevail in the lawsuits and can express no opinion as to their ultimate resolution. An adverse judgment in any of these matters could have a material adverse effect on the Company’s financial position and results of operations.

Please refer to IMH’s report on Form 10-K for the year ended December 31, 2014 and subsequent Form 10-Q filings for a description of litigation and claims.

Repurchase Reserve

When the Company sells mortgage loans, it makes customary representations and warranties to the purchasers about various characteristics of each loan such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local law. The Company’s whole loan sale agreements generally require it to repurchase loans if the Company breached a representation or warranty given to the loan purchaser.

The following table summarizes the repurchase reserve activity related to previously sold loans for the nine months ended September 30, 2015 and year ended December 31, 2014:

	September 30,			December 31,
	2015			2014
Beginning balance	$	5,714		$	9,478
Provision for repurchases	340			2,252
Settlements	(1,286		)	(6,016		)

Total repurchase reserve	$	4,768		$	5,714

During the three months ended September 30, 2015, the general repurchase reserve was reduced by $980 thousand as a result of a review of the Company’s historical loss experience on originations since 2011. In the first quarter of 2015, the Company settled its repurchase liability with FNMA related to its legacy non-conforming mortgage operations. As part of the agreement, the Company paid FNMA $1.0 million during the first quarter with a final payment of $228 thousand paid in April 2015. Additionally, settlements for the year ended December, 31, 2014, were also primarily related to previous repurchase claims from the Company’s legacy non-conforming mortgage operations.

Short-Term Loan Commitments

The Company uses a portion of its warehouse borrowing capacity to provide secured short-term revolving financing to small and medium-size mortgage originators to finance mortgage loans from the closing of the mortgage loans until sold to investors (Finance Receivables). As of September 30, 2015, the warehouse lending operations had warehouse lines to non-affiliated customers totaling $116.5 million, of which there was an outstanding balance of $41.3 million in finance receivables compared to $8.4 million as of December 31, 2014. The finance receivables are generally secured by residential mortgage loans as well as personal guarantees.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

Share Based Payments

9 Months Ended

Sep. 30, 2015

Share Based Payments

Share Based Payments

Note 17.—Share Based Payments

The fair value of options granted, which is amortized to expense over the option vesting period, is estimated on the date of grant with the following weighted average assumptions:

		September 30,
		2015
Risk-free interest rate		1.54 - 1.76%
Expected lives (in years)		5.50 - 5.73
Expected volatility (1)		49.53 - 79.56%
Expected dividend yield		0.00%
Fair value per share		6.74 - 9.96

(1)

Expected volatilities are based on the volatility of the Company’s stock over the expected option term, adjusted for expected mean reversion.

The following table summarizes activity, pricing and other information for the Company’s stock options for the nine months ended September 30, 2015:

	For the nine months ended September 30,
	2015
			Weighted-
			Average
	Number of		Exercise
	Shares		Price
Options outstanding at beginning of period	1,078,230		$	6.88
Options granted	405,800		19.59
Options exercised	(209,104	)	3.07
Options forfeited/cancelled	(102,946	)	9.08

Options outstanding at end of period	1,171,980		$	11.77

Options exercisable at end of period	495,701		$	8.13

As of September 30, 2015, there was approximately $3.9 million of total unrecognized compensation cost related to stock option compensation arrangements granted under the plan, net of estimated forfeitures. That cost is expected to be recognized over the remaining weighted average period of 2.4 years.

There were 405,800 and 409,250 options granted during the nine months ended September 30, 2015 and 2014, respectively. For the nine months ended September 30, 2015 and 2014, the aggregate grant-date fair value of stock options granted was approximately $3.8 million and $1.4 million, respectively.

The following table summarizes activity, pricing and other information for the Company’s DSU’s, also referred to as deferred stock units as the issuance of the stock is deferred until termination of service, for the nine months ended September 30, 2015:

		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU’s outstanding at beginning of period	75,750	$	8.63
DSU’s granted	5,000	20.50
DSU’s exercised	—	—
DSU’s forfeited/cancelled	—	—

DSU’s outstanding at end of period	80,750	$	9.36

As of September 30, 2015, there was approximately $169 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. That cost is expected to be recognized over a weighted average period of 0.8 years.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Related Party Transactions	9 Months Ended
Related Party Transactions	Sep. 30, 2015
Related Party Transactions
Related Party Transactions	Note 18.—Related Party Transactions In January 2015, the Company entered into a $5.0 million short-term borrowing secured by Ginnie Mae servicing rights with an interest rate of 15%, transaction costs of $50 thousand, and was provided by a related party of the Company. The balance was repaid in March 2015.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Sale of AmeriHome	9 Months Ended
Sale of AmeriHome	Sep. 30, 2015
Sale of AmeriHome
Sale of AmeriHome	Note 19.—Sale of AmeriHome In March 2014, the Company sold AmeriHome for $10.2 million in cash, recording a gain of approximately $1.2 million, net of a deferred tax adjustment. In conjunction with the transaction, as required by Fannie Mae, the Company used $3.0 million of the proceeds to reduce the legacy repurchase liability with Fannie Mae.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2015
Subsequent Events
Subsequent Events	Note 20.—Subsequent Events In October 2015 the Company sold $3.5 billion of conventional mortgage servicing rights for approximately $34.0 million. The transaction settled in October 2015. In October 2015 the Company signed a term sheet to sell $1.0 billion of government insured mortgage servicing. The transaction is expected to settle in November 2015. Subsequent events have been evaluated through the date of this filing.

Acquisition of CashCall Mortgage (Tables)

9 Months Ended

Sep. 30, 2015

Acquisition of CashCall Mortgage

Schedule of preliminary purchase price allocation

The table below presents the purchase price allocation of the estimated acquisition date fair values of assets acquired and the liabilities assumed as of March 31, 2015.

Consideration paid:
Cash	$	5,000
IMH common stock	6,150
Deferred payments	5,000
Contingent consideration (1)	124,592

	$	140,742


Assets acquired:
Trademark	$	17,251
Customer list	10,170
Non-compete agreement	5,701
Fixed assets and software	3,034

Total assets acquired	36,156

Liabilities assumed:
Total liabilities assumed	—


Total assets	$	36,156


Goodwill	$	104,586

(1)

Included within the contingent consideration is $1.4 million of Business Appreciation Rights, as defined above.

Schedule of pro forma results of operations

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Revenues	$	47,652		$	28,403		$	149,480		$	70,156
Other (expense) income	(2,885		)	1,121			(9,394		)	8,552
Expenses	(28,864		)	(34,887		)	(106,707		)	(102,643		)

Pretax net earnings (loss)	$	15,903		$	(5,363	)	$	33,379		$	(23,935	)

Mortgage Loans Held-for-Sale (Tables)

9 Months Ended

Sep. 30, 2015

Mortgage Loans Held-for-Sale

Summary of the unpaid principal balance (UPB ) of mortgage loans held-for-sale by type

	September 30,		December 31,
	2015		2014
Government (1)	$	180,508	$	156,385
Conventional (2)	241,404		72,553
Other (3)	19,413		—
Fair value adjustment (4)	19,483		10,453

Total mortgage loans held-for-sale	$	460,808	$	239,391

(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Fannie Mae and Freddie Mac.

(3)

Includes ALT-QM and Jumbo loans.

(4)

Changes in fair value are included in the statements of operations.

Schedule of gain on loans held-for-sale (LHFS)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
Gain on sale of mortgage loans	$	59,753		$	29,593		$	179,894		$	62,420
Premium from servicing retained loan sales	23,384			8,913			76,119			17,237
Unrealized gains from derivative financial instruments	955			84			8,754			170
Realized losses from derivative financial instruments	(6,747		)	(2,436		)	(8,453		)	(8,579		)
Mark to market gain on LHFS	6,678			2,294			9,030			5,103
Direct origination expenses, net	(37,729		)	(28,989		)	(131,986		)	(55,281		)
Recovery (provision) for repurchases	980			(857		)	(340		)	(1,602		)

Total gain on sale of loans, net	$	47,274		$	8,602		$	133,018		$	19,468

Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2015

Mortgage Servicing Rights

Schedule of hypothetical changes in the fair values of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value.

Mortgage Servicing Rights Sensitivity Analysis	September 30, 2015

Fair value of MSRs	$	63,281

Prepayment Speed:
Decrease in fair value from 100 basis point (bp) adverse change	(2,307		)
Decrease in fair value from 200 bp adverse change	(4,486		)

Discount Rate:
Decrease in fair value from 100 bp adverse change	(2,288		)
Decrease in fair value from 200 bp adverse change	(4,422		)

Schedule of Loss on mortgage servicing rights

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
(Loss) gain on sale of mortgage servicing rights	$	(471	)	$	207		$	(6,193	)	$	1,388
Change in fair value of mortgage servicing rights	(4,347		)	(1,205		)	(7,983		)	(4,928		)

Loss on mortgage servicing rights	$	(4,818	)	$	(998	)	$	(14,176	)	$	(3,540	)

Schedule of components of servicing income

	For the Three Months				For the Nine Months
	Ended September 30,				Ended September 30,
	2015		2014		2015		2014
Contractual servicing fees	$	3,014	$	1,228	$	5,702	$	4,885
Late and ancillary fees	33		28		91		107

Mortgage servicing rights

Mortgage Servicing Rights

Schedule of changes in the fair value of MSRs

	September 30,			December 31,
	2015			2014
Balance at beginning of period	$	24,418		$	35,981
Additions from servicing retained loan sales	76,119			29,388
Reductions from bulk sales	(29,273		)	(27,276		)
Reduction from sale of AmeriHome	—			(7,446		)
Changes in fair value (1)	(7,983		)	(6,229		)

Fair value of MSRs at end of period	$	63,281		$	24,418

(1)

Changes in fair value are included within loss on mortgage servicing rights in the consolidated statements of operations.

Schedule of the outstanding loans serviced by entity

	September 30,		December 31,
	2015		2014
Government insured	$	1,259,647	$	926,502
Conventional (1)	4,770,257		1,333,853
Alt-QM	58,134		6,731

Total loans serviced	$	6,088,038	$	2,267,086

(1)

Approximately $3.4 billion of FNMA servicing has been pledged as collateral as part of the Term Financing. ( See Note 7. — Term Financing. )

Goodwill and Intangible assets (Tables)

9 Months Ended

Sep. 30, 2015

Goodwill and Intangible assets.

Summary of changes in carrying amount of goodwill

Balance at December 31, 2014	$	352
Addition from CCM acquisition	104,586

Balance at September 30, 2015	$	104,938

Summary of preliminary purchase price of intangible assets

	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Remaining Life
Intangible assets:
Trademark	$	17,251	$	(585	)	$	16,666	14.3
Customer relationships	10,170		(753		)	9,417		6.3
Non-compete agreement	5,701		(760		)	4,941		3.3

Total intangible assets acquired	$	33,122	$	(2,098	)	$	31,024

Summary of purchase price of other assets

	Gross Carrying		Accumulated			Net Carrying
	Amount		Amortization			Amount		Remaining Life
Other assets:
Developed software	$	2,719	$	(286	)	$	2,433	4.3

Warehouse Borrowings (Tables)

9 Months Ended

Sep. 30, 2015

Warehouse Borrowings.

Schedule of information on warehouse borrowings

	Maximum		Balance Outstanding At
	Borrowing Capacity		September 30, 2015		December 31, 2014
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	64,534	$	64,907
Repurchase agreement 2	50,000		18,369		30,523
Repurchase agreement 3 (1)	—		—		24,012
Repurchase agreement 4 (2)	225,000		111,501		107,276
Repurchase agreement 5	150,000		139,266		—
Repurchase agreement 6 (3)	100,000		144,003		—

Total warehouse borrowings	$	675,000	$	477,673	$	226,718

(1)

This line expired in April, 2015 and the Company replaced it with a $100.0 million facility, Repurchase agreement 6.

(2)

As of September 30, 2015, $41.3 million is attributable to financing facility advances made to the Company’s warehouse customers.

(3)

In September 2015, the lender granted the Company a temporary increase in the maximum borrowing capacity to $150.0 million.

Securitized Mortgage Trusts (Tables)

9 Months Ended

Sep. 30, 2015

Securitized Mortgage Trusts

Schedule of trust assets

	September 30,		December 31,
	2015		2014
Securitized mortgage collateral	$	4,796,405	$	5,249,639
Real estate owned	18,343		18,800
Investment securities available-for-sale	50		92

Total securitized mortgage trust assets	$	4,814,798	$	5,268,531

Schedule of trust liabilities

	September 30,		December 31,
	2015		2014
Securitized mortgage borrowings	$	4,796,400	$	5,245,860
Derivative liabilities	2,624		5,447

Total securitized mortgage trust liabilities	$	4,799,024	$	5,251,307

Schedule of changes in fair value of net trust assets, including trust REO gains (losses)

	For the Three Months						For the Nine Months
	Ended September 30,						Ended September 30,
	2015			2014			2015			2014
Change in fair value of net trust assets, excluding REO	$	(568	)	$	139		$	1,821		$	(1,136	)
(Losses) gains from REO	(2,436		)	(47		)	(4,899		)	8,977

Change in fair value of net trust assets, including trust REO (losses) gains	$	(3,004	)	$	92		$	(3,078	)	$	7,841

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value of Financial Instruments

Schedule of estimated fair value of financial instruments included in consolidated financial statements

	September 30, 2015								December 31, 2014
	Carrying		Estimated Fair Value						Carrying		Estimated Fair Value
	Amount		Level 1		Level 2		Level 3		Amount		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	10,509	$	10,509	$	—	$	—	$	10,073	$	10,073	$	—	$	—
Restricted cash	5,829		5,829		—		—		2,420		2,420		—		—
Mortgage loans held-for-sale	460,808		—		460,808		—		239,391		—		239,391		—
Finance receivables	41,334		—		41,334		—		8,358		—		8,358		—
Mortgage servicing rights	63,281		—		—		63,281		24,418		—		—		24,418
Derivative assets, lending, net	13,019		—		—		13,019		2,884		—		—		2,884
Investment securities available-for-sale	50		—		—		50		92		—		—		92
Securitized mortgage collateral	4,796,405		—		—		4,796,405		5,249,639		—		—		5,249,639
Warrant	—		—		—		—		84		—		—		84

Liabilities
Warehouse borrowings	$	477,673	$	—	$	477,673	$	—	$	226,718	$	—	$	226,718	$	—
Short-term structured debt	—		—		—		—		6,000		—		—		6,000
Line of credit	—		—		—		—		4,000		—		4,000		—
Term financing	30,000		—		—		30,000		—		—		—		—
Contingent consideration	68,792		—		—		68,792		—		—		—		—
Convertible notes	45,000		—		—		45,000		20,000		—		—		20,000
Long-term debt	31,663		—		—		31,663		22,122		—		—		22,122
Securitized mortgage borrowings	4,796,400		—		—		4,796,400		5,245,860		—		—		5,245,860
Derivative liabilities, securitized trusts	2,624		—		—		2,624		5,447		—		—		5,447
Derivative liabilities, lending, net	2,312		—		2,312		—		930		—		930		—

Schedule of assets and liabilities that are measured at estimated fair value on recurring basis

	Recurring Fair Value Measurements
	September 30, 2015						December 31, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Investment securities available-for-sale	$	—	$	—	$	50	$	—	$	—	$	92
Mortgage loans held-for-sale	—		460,808		—		—		239,391		—
Derivative assets, lending, net (1)	—		—		13,019		—		—		2,884
Mortgage servicing rights	—		—		63,281		—		—		24,418
Warrant (2)	—		—		—		—		—		84
Securitized mortgage collateral	—		—		4,796,405		—		—		5,249,639


Total assets at fair value	$	—	$	460,808	$	4,872,755	$	—	$	239,391	$	5,277,117



Liabilities
Securitized mortgage borrowings	$	—	$	—	$	4,796,400	$	—	$	—	$	5,245,860
Derivative liabilities, securitized trusts (3)	—		—		2,624		—		—		5,447
Long-term debt	—		—		31,663		—		—		22,122
Contingent consideration	—		—		68,792		—		—		—
Derivative liabilities, lending, net (4)	—		2,312		—		—		930		—


Total liabilities at fair value	$	—	$	2,312	$	4,899,479	$	—	$	930	$	5,273,429

(1)

(2)

Included in other assets in the accompanying consolidated balance sheets.

(3)

At September 30, 2015 and December 31, 2014, derivative liabilities, securitized trusts, are included within trust liabilities in the accompanying consolidated balance sheets.

(4)

At September 30, 2015 and December 31, 2014, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

Schedule of reconciliation for all assets and liabilities measured at estimated fair value on recurring basis using significant unobservable inputs (Level 3)

	Level 3 Recurring Fair Value Measurements
	For the three months ended September 30, 2015
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net		Long-term debt			Contingent consideration			Warrant
Fair value, June 30, 2015	$	81		$	4,979,433		$	(4,977,150	)	$	(3,509	)	$	44,244		$	8,406	$	(31,438	)	$	(91,407	)	$	165
Total gains (losses) included in earnings:
Interest income (1)	2			18,930			—			—			—			—		—			—			—
Interest expense (1)	—			—			(53,552		)	—			—			—		(225		)	—			—
Change in fair value	(7		)	(13,485		)	13,051			(127		)	(4,347		)	4,613		—			14,473			(165		)

Total (losses) gains included in earnings	(5		)	5,445			(40,501		)	(127		)	(4,347		)	4,613		(225		)	14,473			(165		)
Transfers in and/or out of Level 3	—			—			—			—			—			—		—			—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—		—			—			—
Issuances	—			—			—			—			23,384			—		—			—			—
Settlements	(26		)	(188,473		)	221,251			1,012			—			—		—			8,142			—

Fair value, September 30, 2015	$	50		$	4,796,405		$	(4,796,400	)	$	(2,624	)	$	63,281		$	13,019	$	(31,663	)	$	(68,792	)	$	—

(1)

	Level 3 Recurring Fair Value Measurements
	For the three months ended September 30, 2014
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net			Long-term debt			Warrant
Fair value, June 30, 2014	$	91		$	5,510,741		$	(5,507,629	)	$	(7,949	)	$	16,166		$	3,073		$	(17,555	)	$	—
Total gains (losses) included in earnings:
Interest income (1)	6			21,312			—			—			—			—			—			—
Interest expense (1)	—			—			(64,502		)	—			—			—			(485		)	—
Change in fair value	11			(27,784		)	27,899			13			(1,205		)	(757		)	—			—

Total gains (losses) included in earnings	17			(6,472		)	(36,603		)	13			(1,205		)	(757		)	(485		)	—
Transfers in and/or out of Level 3	—			—			—			—			—						—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—									—			—
Issuances	—			—			—			—			8,913			—			—			164
Settlements	(18		)	(153,795		)	197,441			1,369			(10,306		)	—			—			—

Fair value, September 30, 2014	$	90		$	5,350,474		$	(5,346,791	)	$	(6,567	)	$	13,568		$	2,316		$	(18,040	)	$	164

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $1.8 million for the three months ended September 30, 2014. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

	Level 3 Recurring Fair Value Measurements
	For the nine months ended September 30, 2015
	Investment securities available-for-sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net		Long-term debt			Contingent consideration			Warrant
Fair value, December 31, 2014	$	92		$	5,249,639		$	(5,245,860	)	$	(5,447	)	$	24,418		$	2,884	$	(22,122	)	$	—		$	84
Total gains (losses) included in earnings:
Interest income (1)	9			49,719			—			—			—			—		—			—			—
Interest expense (1)	—			—			(160,249		)	—			—			—		(880		)	—			—
Change in fair value	33			6,918			(4,647		)	(483		)	(7,984		)	10,135		(8,661		)	22,752			(84		)

Total gains (losses) included in earnings	42			56,637			(164,896		)	(483		)	(7,984		)	10,135		(9,541		)	22,752			(84		)
Transfers in and/or out of Level 3	—			—			—			—			—			—		—			—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—		—			—			—
Issuances	—			—			—			—			76,119			—		—			(124,592		)	—
Settlements	(84		)	(509,871		)	614,356			3,306			(29,272		)	—		—			33,048			—

Fair value, September 30, 2015	$	50		$	4,796,405		$	(4,796,400	)	$	(2,624	)	$	63,281		$	13,019	$	(31,663	)	$	(68,792	)	$	—

Unrealized gains (losses) still held (2)	$	50		$	(1,143,833	)	$	3,287,018		$	(2,390	)	$	63,281		$	13,019	$	39,100		$	(68,792	)	$	—

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $6.3 million for the nine months ended September 30, 2015. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2015.

	Level 3 Recurring Fair Value Measurements
	For the nine months ended September 30, 2014
	Investment securities available-for- sale			Securitized mortgage collateral			Securitized mortgage borrowings			Derivative liabilities, net, securitized trusts			Mortgage servicing rights			Interest rate lock commitments, net			Long-term debt			Warrant
Fair value, December 31, 2013	$	108		$	5,494,152		$	(5,492,371	)	$	(10,214	)	$	35,981		$	913		$	(15,871	)	$	—
Total gains (losses) included in earnings:
Interest income (1)	19			42,268			—			—			—			—			—			—
Interest expense (1)	—			—			(177,629		)	—			—			—			(1,745		)	—
Change in fair value	27			289,610			(290,360		)	(413		)	(4,928		)	1,414			(424		)	—

Total (losses) gains included in earnings	46			331,878			(467,989		)	(413		)	(4,928		)	1,414			(2,169		)	—
Transfers in and/or out of Level 3	—			—			—			—			—						—			—
Purchases, issuances and settlements:
Purchases	—			—			—			—			—			—			—			—
Issuances	—			—			—			—			17,238			—			—			164
Settlements	(64		)	(475,556		)	613,569			4,060			(34,723		)	(11		)	—			—

Fair value, September 30, 2014	$	90		$	5,350,474		$	(5,346,791	)	$	(6,567	)	$	13,568		$	2,316		$	(18,040	)	$	164

Unrealized gains (losses) still held (2)	$	84		$	(1,446,463	)	$	3,581,924		$	(6,132	)	$	13,568		$	2,316		$	52,723		$	164

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities. The net interest income, including cash received and paid, was $4.0 million for the nine months ended September 30, 2014. The difference between accretion of interest income and expense and the amounts of interest income and expense recognized in the consolidated statements of operations is primarily from contractual interest on the securitized mortgage collateral and borrowings.

(2)

Represents the amount of unrealized gains (losses) relating to assets and liabilities classified as Level 3 that are still held and reflected in the fair values at September 30, 2014.

Schedule of quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring and non-recurring basis

Financial Instrument	Estimated Fair Value			Valuation Technique	Unobservable Input	Range of Inputs	Weighted Average
Assets and liabilities backed by real estate
Investment securities available-for-sale,	$	50		DCF	Discount rates	3.2 - 25.0%	5.1	%
Securitized mortgage collateral, and	4,796,405				Prepayment rates	2.1 - 28.1%	6.0	%
Securitized mortgage borrowings	(4,796,400		)		Default rates	0.6 - 15.5%	2.8	%
					Loss severities	5.4 - 60.2%	37.8	%
Other assets and liabilities
Mortgage servicing rights	$	63,281		DCF	Discount rate	9.5 - 12.5%	9.9	%
					Prepayment rates	3.3 - 28.7%	10.2	%
Derivative liabilities, net, securitized trusts	(2,624		)	DCF	1M forward LIBOR	0.2 - 2.8%	N/A
Derivative assets - IRLCs, net	13,019			Market pricing	Pull -through rate	38.0 - 99.0%	75.6	%
Long-term debt	(31,663		)	DCF	Discount rate	14.4%	14.4	%
Lease liability	(984		)	DCF	Discount rate	12.0%	12.0	%
Contingent consideration	(68,792		)	DCF	Discount rate	17.0%	17.0	%
					Margins	1.6 - 3.7%	2.5	%
					Probability of outcomes (1)	25.0 - 50.0%	32.1	%

Schedule of changes in recurring fair value measurements included in net earnings (loss)

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Earnings
	For the three months ended September 30, 2015
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt		Other Revenue and Expense			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	2	$	—		$	(7	)	$	—	$	—		$	—		$	(5	)
Securitized mortgage collateral	18,930		—			(13,485		)	—		—			—			5,445
Securitized mortgage borrowings	—		(53,552		)	13,051			—		—			—			(40,501		)
Derivative liabilities, net, securitized trusts	—		—			(127		)(2)	—		—			—			(127		)
Long-term debt	—		(225		)	—			—		—			—			(225		)
Mortgage servicing rights (3)	—		—			—			—		(4,347		)	—			(4,347		)
Warrant	—		—			—			—		(165		)	—			(165		)
Contingent consideration	—		—			—			—		14,473			—			14,473
Mortgage loans held-for-sale	—		—			—			—		—			6,678			6,678
Derivative assets - IRLCs	—		—			—			—		—			4,613			4,613
Derivative liabilities - Hedging Instruments	—		—			—			—		—			(3,658		)	(3,658		)

Total	$	18,932	$	(53,777	)	$	(568	)	$	—	$	9,961		$	7,633		$	(17,819	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Loss
	For the three months ended September 30, 2014
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt		Other Revenue			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	6	$	—		$	11		$	—	$	—		$	—		$	17
Securitized mortgage collateral	21,312		—			(27,784		)	—		—			—			(6,472		)
Securitized mortgage borrowings	—		(64,502		)	27,899			—		—			—			(36,603		)
Derivative liabilities, net, securitized trusts	—		—			13		(2)	—		—			—			13
Long-term debt	—		(485		)	—			—		—			—			(485		)
Mortgage servicing rights (3)	—		—			—			—		(1,205		)	—			(1,205		)
Mortgage loans held-for-sale	—		—			—			—		—			2,294			2,294
Derivative assets - IRLCs	—		—			—			—		—			(757		)	(757		)
Derivative liabilities - Hedging Instruments	—		—			—			—		—			841			841

Total	$	21,318	$	(64,987	)	$	139		$	—	$	(1,205	)	$	2,378		$	(42,357	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

(3)

Included in (loss) gain on mortgage servicing rights in the consolidated statements of operations.

	Recurring Fair Value Measurements
	Change in Fair Value Included in Net Earnings
	For the nine months ended September 30, 2015
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt			Other Revenue and Expense			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	9	$	—		$	33		$	—		$	—		$	—		$	42
Securitized mortgage collateral	49,719		—			6,918			—			—			—			56,637
Securitized mortgage borrowings	—		(160,249		)	(4,647		)	—			—			—			(164,896		)
Derivative liabilities, net, securitized trusts	—		—			(483		)(2)	—			—			—			(483		)
Long-term debt	—		(880		)	—			(8,661		)	—			—			(9,541		)
Mortgage servicing rights (3)	—		—			—			—			(7,984		)	—			(7,984		)
Warrant	—		—			—			—			(84		)	—			(84		)
Contingent consideration	—		—			—			—			22,752			—			22,752
Mortgage loans held-for-sale	—		—			—			—			—			9,030			9,030
Derivative assets - IRLCs	—		—			—			—			—			10,135			10,135
Derivative liabilities - Hedging Instruments	—		—			—			—			—			(1,381		)	(1,381		)

Total	$	49,728	$	(161,129	)	$	1,821	(4)	$	(8,661	)	$	14,684		$	17,784		$	(85,773	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

(4)

	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Loss
	For the nine months ended September 30, 2014
						Change in Fair Value of
	Interest Income (1)		Interest Expense (1)			Net Trust Assets			Long-term Debt			Other Revenue			Gain on sale of loans, net			Total
Investment securities available-for-sale	$	19	$	—		$	27		$	—		$	—		$	—		$	46
Securitized mortgage collateral	42,268		—			289,610			—			—			—			331,878
Securitized mortgage borrowings	—		(177,629		)	(290,360		)	—			—			—			(467,989		)
Derivative liabilities, net, securitized trusts	—		—			(413		)(2)	—			—			—			(413		)
Long-term debt	—		(1,745		)	—			(424		)	—			—			(2,169		)
Mortgage servicing rights (3)	—		—			—			—			(4,928		)	—			(4,928		)
Mortgage loans held-for-sale	—		—			—			—			—			5,103			5,103
Derivative assets - IRLCs	—		—			—			—			—			1,414			1,414
Derivative liabilities - Hedging Instruments	—		—			—			—			—			(1,244		)	(1,244		)

Total	$	42,287	$	(179,374	)	$	(1,136	)(4)	$	(424	)	$	(4,928	)	$	5,273		$	(138,302	)

(1)

Amounts primarily represent accretion to recognize interest income and interest expense using effective yields based on estimated fair values for trust assets and trust liabilities.

(2)

(3)

Included in loss on mortgage servicing rights in the consolidated statements of operations.

(4)

Schedule of information for derivative assets and liabilities - lending

	Notional Amount				Total Gains (Losses) (1)
	September 30,		September 30,		For the three months ended September 30,						For the nine months ended September 30,
	2015		2014		2015			2014			2015			2014
Derivative - IRLC’s	$	664,890	$	208,433	$	4,613		$	(757	)	$	10,135		$	1,414
Derivative - TBA MBS	550,210		285,797		(10,406		)	(1,595		)	(9,835		)	(9,823		)

(1)

Amounts included in gain on sale of loans, net within the accompanying consolidated statements of operations.

Schedule of financial and non-financial assets and liabilities measured using nonrecurring fair value measurements

	Nonrecurring Fair Value Measurements							Total Gains (Losses) (1)
	September 30, 2015							For the Three Months Ended			For the Nine Months Ended
	Level 1		Level 2		Level 3			September 30, 2015			September 30, 2015
REO (2)	$	—	$	2,066	$	—		$	(2,436	)	$	(4,900	)
Lease liability (3)	—		—		(984		)	(14		)	(53		)
Deferred charge (4)	—		—		10,467			(421		)	(1,054		)

(1)

Total gains (losses) reflect gains and losses from all nonrecurring measurements during the period.

(2)

(3)

(4)

	Non-recurring Fair Value Measurements							Total Gains (Losses) (1)
	September 30, 2014							For the Three Months Ended			For the Nine Months Ended
	Level 1		Level 2		Level 3			September 30, 2014			September 30, 2014
REO (2)	$	—	$	1,686	$	—		$	(47	)	$	8,977
Lease liability (3)	—		—		(1,705		)	11			(617		)

(1)

Total gains (losses) reflect gains and losses from all nonrecurring measurements during the period.(1)

(2)

(3)

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 25

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41678-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

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-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

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-Section 50

-Paragraph 1A

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 815

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-Section 50

-Paragraph 1B

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4B

-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(n)(2))

-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Reconciliation of Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Reconciliation of Earnings Per Share

Schedule of computation of basic and diluted earnings per common share

	For the Three Months					For the Nine Months
	Ended September 30,					Ended September 30,
	2015		2014			2015		2014
Numerator for basic earnings (loss) per share:
Net earnings (loss)	$	19,309	$	(1,201	)	$	70,090	$	(4,085	)

Numerator for diluted earnings (loss) per share:
Net earnings (loss)	$	19,309	$	(1,201	)	$	70,090	$	(4,085	)
Interest expense attributable to convertible notes	844		—			1,875		—

Net earnings (loss) plus interest expense attributable to convertible notes	$	20,153	$	(1,201	)	$	71,965	$	(4,085	)


Denominator for basic earnings (loss) per share (1):
Basic weighted average common shares outstanding during the year	10,242		9,466			10,019		9,262


Denominator for diluted earnings (loss) per share (1):
Basic weighted average common shares outstanding during the year	10,242		9,466			10,019		9,262
Net effect of dilutive convertible notes	3,002		—			2,461		—
Net effect of dilutive stock options and DSU’s	354		—			357		—

Diluted weighted average common shares	13,598		9,466			12,837		9,262


Net earnings (loss) per common share:
Basic	$	1.89	$	(0.13	)	$	7.00	$	(0.44	)

Diluted	$	1.48	$	(0.13	)	$	5.61	$	(0.44	)

(1)

Number of shares presented in thousands.

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2015

Segment Reporting

Schedule of the selected statement of operations information by reporting segment

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
three months ended September 30, 2015:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	47,274		$	—		$	—		$	—		$	47,274
Real estate services fees, net	—			2,775			—			—			2,775
Servicing income, net	2,432			—			—			—			2,432
Loss on mortgage servicing rights	(4,818		)	—			—			—			(4,818		)
Other revenue	(145		)	—			79			55			(11		)
Other income (expense)	658			—			(1,936		)	(1,607		)	(2,885		)
Total expense (income)	(21,354		)	(1,447		)	(263		)	(1,613		)	(24,677		)

Net earnings before income taxes	$	24,047		$	1,328		$	(2,120	)	$	(3,165	)	20,090

Income tax expense													781

Net earnings													$	19,309

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
three months ended September 30, 2014:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	8,602		$	—		$	—		$	—		$	8,602
Real estate services fees, net	—			3,243			—			—			3,243
Servicing income, net	913			—			—			—			913
Loss on mortgage servicing rights	(998		)	—			—			—			(998		)
Other revenue	109			—			86			2			197
Other income (expense)	403			(6		)	847			(405		)	839
Total expenses	(8,746		)	(1,386		)	(214		)	(3,344		)	(13,690		)

Net earnings (loss) before income taxes	$	283		$	1,851		$	719		$	(3,747	)	(894		)

Income tax expense													307

Net loss													$	(1,201	)

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
nine months ended September 30, 2015:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	133,018		$	—		$	—		$	—		$	133,018
Real estate services fees, net	—			7,872			—			—			7,872
Servicing income, net	4,083			—			—			—			4,083
Loss on mortgage servicing rights	(14,176		)	—			—			—			(14,176		)
Other revenue	(25		)	—			203			105			283
Other income (expense)	1,673			—			(8,281		)	(2,996		)	(9,604		)
Total expense (income)	(63,347		)	(4,422		)	(611		)	(5,858		)	(74,238		)

Net earnings (loss) before income taxes	$	61,226		$	3,450		$	(8,689	)	$	(8,749	)	47,238

Income tax benefit													(22,852		)

Net earnings													$	70,090

Statement of Operations Items for the	Mortgage			Real Estate			Long-term			Corporate
nine months ended September 30, 2014:	Lending			Services			Portfolio			and other			Consolidated
Gain on sale of loans, net	$	19,468		$	—		$	—		$	—		$	19,468
Real estate services fees, net	—			11,282			—			—			11,282
Servicing income, net	3,773			—			—			—			3,773
Loss on mortgage servicing rights	(3,540		)	—			—			—			(3,540		)
Other revenue	1,366			—			296			41			1,703
Other income (expense)	774			(5		)	8,198			(1,212		)	7,755
Total expenses	(26,320		)	(4,443		)	(720		)	(11,638		)	(43,121		)

Net (loss) earnings before income taxes	$	(4,479	)	$	6,834		$	7,774		$	(12,809	)	(2,680		)

Income tax expense													1,405

Net loss													$	(4,085	)

	Mortgage		Real Estate		Long-term Mortgage		Corporate
Balance Sheet Items as of:	Lending		Services		Portfolio		and other		Consolidated
Total Assets at September 30, 2015 (1)	$	737,547	$	2,893	$	4,825,472	$	28,971	$	5,594,883

Total Assets at December 31, 2014 (1)	$	291,829	$	2,672	$	5,280,274	$	3,797	$	5,578,572

(1)

All segment asset balances exclude intercompany balances.

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2015

Commitments and Contingencies

Schedule of the activity related to the repurchase reserve for previously sold loans

	September 30,			December 31,
	2015			2014
Beginning balance	$	5,714		$	9,478
Provision for repurchases	340			2,252
Settlements	(1,286		)	(6,016		)

Total repurchase reserve	$	4,768		$	5,714

Share Based Payments (Tables)

9 Months Ended

Sep. 30, 2015

Share Based Payments

Schedule of weighted average assumptions used in estimation of the fair value of options granted

		September 30,
		2015
Risk-free interest rate		1.54 - 1.76%
Expected lives (in years)		5.50 - 5.73
Expected volatility (1)		49.53 - 79.56%
Expected dividend yield		0.00%
Fair value per share		6.74 - 9.96

(1)

Expected volatilities are based on the volatility of the Company’s stock over the expected option term, adjusted for expected mean reversion.

Summary of activity, pricing and other information for the Company's stock options

	For the nine months ended September 30,
	2015
			Weighted-
			Average
	Number of		Exercise
	Shares		Price
Options outstanding at beginning of period	1,078,230		$	6.88
Options granted	405,800		19.59
Options exercised	(209,104	)	3.07
Options forfeited/cancelled	(102,946	)	9.08

Options outstanding at end of period	1,171,980		$	11.77

Options exercisable at end of period	495,701		$	8.13

Summary of activity, pricing and other information for the Company's (DSU's)

		Weighted-
		Average
	Number of	Grant Date
	Shares	Fair Value
DSU’s outstanding at beginning of period	75,750	$	8.63
DSU’s granted	5,000	20.50
DSU’s exercised	—	—
DSU’s forfeited/cancelled	—	—

DSU’s outstanding at end of period	80,750	$	9.36

Acquisition of CashCall Mortgage (Details) (USD $)	3 Months Ended		9 Months Ended			0 Months Ended	3 Months Ended		9 Months Ended
Acquisition of CashCall Mortgage (Details) (USD $)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Jan. 06, 2015 Cash Call Inc	Sep. 30, 2015 Cash Call Inc	Mar. 31, 2015 Cash Call Inc	Sep. 30, 2015 Cash Call Inc	Mar. 31, 2015 Trademark Cash Call Inc	Mar. 31, 2015 Customer list Cash Call Inc	Mar. 31, 2015 Non-compete agreement Cash Call Inc
Business combinations
Newly issued unregistered shares						494,017			494,017
Period of contingent earn-out based on percentage of pre-tax profits						3 years
Percentage of pre-tax profits expected for contingent earn-out for the month of January and February of 2015						100.00%
Percentage of pre tax profit expected for contingent earn out for remaining part of the year						65.00%
Period for newly issued unregistered shares						10 months
Percentage of pre-tax profits expected for contingent earn-out in second year						55.00%
Percentage of pre-tax profits expected for contingent earn-out in third year						45.00%
Threshold percentage of ownership transfer considered						50.00%
Percentage of payment on enterprise value						15.00%
Amount of enterprise value considered for payment						$ 200,000,000
Additional percentage of payment on enterprise value						5.00%
Threshold Enterprise Value Considered For Additional Payment						500,000,000
Earn-out provision	68,792,000		68,792,000				33,000,000		33,000,000
Consideration paid:
Cash						10,000,000		5,000,000	5,000,000
IMH common stock							6,200,000	6,150,000	6,200,000
Deferred payments								5,000,000
Contingent consideration								124,592,000
Consideration paid, total								140,742,000
Assets acquired:
Identifiable intangible assets										17,251,000	10,170,000	5,701,000
Fixed assets and software								3,034,000
Total assets acquired								36,156,000
Total assets								36,156,000
Goodwill.	104,938,000		104,938,000		352,000			104,586,000
Contingent consideration of business appreciation rights								1,400,000
Acquisition related costs								300,000
Unaudited Pro Forma Results of Operations
Revenues	47,652,000	28,403,000	149,480,000	70,156,000
Other (expense) income	(2,885,000)	1,121,000	(9,394,000)	8,552,000
Expenses	(28,864,000)	(34,887,000)	(106,707,000)	(102,643,000)
Pretax net earnings (loss)	15,903,000	(5,363,000)	33,379,000	(23,935,000)
Revenues	47,652,000	11,957,000	131,080,000	32,686,000			30,300,000		109,900,000
Expenses	$ 24,677,000	$ 13,690,000	$ 74,238,000	$ 43,121,000			$ 22,400,000		$ 62,500,000

Mortgage Loans Held-for-Sale (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	$ 460,808		$ 460,808		$ 239,391
Gain on LHFS
Premium from servicing retained loan sales	2,432	913	4,083	3,773
Recovery (provision) for repurchases			(340)	(1,602)
Total gain on sale of loans, net			115,578	15,826
Government
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	180,508		180,508		156,385
Conventional
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	241,404		241,404		72,553
Other
Mortgage Loans held-for-Sale
Total mortgage loans held-for-sale	19,413		19,413
Mortgage loans, held-for-sale
Mortgage Loans held-for-Sale
Fair value adjustment	19,483		19,483		10,453
Gain on LHFS
Gain on sale of mortgage loans	59,753	29,593	179,894	62,420
Premium from servicing retained loan sales	23,384	8,913	76,119	17,237
Unrealized (losses) gains from derivative financial instruments	955	84	8,754	170
Realized losses from derivative financial instruments	(6,747)	(2,436)	(8,453)	(8,579)
Mark to market (loss) gain on LHFS	6,678	2,294	9,030	5,103
Direct origination expenses, net	(37,729)	(28,989)	(131,986)	(55,281)
Recovery (provision) for repurchases	980	(857)	(340)	(1,602)
Total gain on sale of loans, net	$ 47,274	$ 8,602	$ 133,018	$ 19,468

Mortgage Servicing Rights (Details) (USD $)	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended								9 Months Ended	12 Months Ended
Mortgage Servicing Rights (Details) (USD $)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Sep. 30, 2015 Contractual servicing fees	Sep. 30, 2014 Contractual servicing fees	Sep. 30, 2015 Contractual servicing fees	Sep. 30, 2014 Contractual servicing fees	Sep. 30, 2015 Late and ancillary fees	Sep. 30, 2014 Late and ancillary fees	Sep. 30, 2015 Late and ancillary fees	Sep. 30, 2014 Late and ancillary fees	Sep. 30, 2015 Alt-QM	Dec. 31, 2014 Alt-QM	Sep. 30, 2015 Government	Dec. 31, 2014 Government	Sep. 30, 2015 Conventional	Dec. 31, 2014 Conventional	Sep. 30, 2015 Mortgage servicing rights	Dec. 31, 2014 Mortgage servicing rights	Dec. 31, 2014 Mortgage servicing rights AmeriHome
Changes in the fair value of MSRs
Balance at beginning of period			$ 24,418,000																	$ 24,418,000	$ 35,981,000
Additions from servicing retained loan sales																				76,119,000	29,388,000
Reduction from sales																				29,273,000	27,276,000	7,446,000
Changes in fair value																				(7,983,000)	(6,229,000)
Fair value of MSRs at end of period	63,281,000		63,281,000																	63,281,000	24,418,000
Total loans serviced	6,088,038,000		6,088,038,000		2,267,086,000									58,134,000	6,731,000	1,259,647,000	926,502,000	4,770,257,000	1,333,853,000
FNMA servicing collateral	3,400,000,000		3,400,000,000
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs																				63,281,000
Prepayment Speed, Decrease in fair value from 100 basis point (bp) adverse change																				(2,307,000)
Prepayment Speed, Decrease in fair value from 200 bps adverse change																				(4,486,000)
Discount Rate, Decrease in fair value from 100 bps adverse change																				(2,288,000)
Discount Rate, Decrease in fair value from 200 bps adverse change																				(4,422,000)
Unpaid principal balance of servicing sold but not transferred	471,000		471,000
(Loss) gain on sale of mortgage servicing rights	(471,000)	207,000	(6,193,000)	1,388,000
Change in fair value of mortgage servicing rights	(4,347,000)	(1,205,000)	(7,983,000)	(4,928,000)
Loss on mortgage servicing rights	(4,818,000)	(998,000)	(14,176,000)	(3,540,000)
Servicing income
Servicing income, net	$ 2,432,000	$ 913,000	$ 4,083,000	$ 3,773,000		$ 3,014,000	$ 1,228,000	$ 5,702,000	$ 4,885,000	$ 33,000	$ 28,000	$ 91,000	$ 107,000

Goodwill and Intangible assets (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2015
Changes in carrying amount of goodwill
Goodwill, Beginning Balance	$ 352
Addition from CCM acquisition	104,586
Goodwill, Ending Balance	$ 104,938

Goodwill and Intangible assets (Details 2) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2015
Intangible assets and other assets:
Gross Carrying Amount	$ 33,122
Accumulated Amortization	(2,098)
Net Carrying Amount	31,024
Trademark
Intangible assets and other assets:
Gross Carrying Amount	17,251
Accumulated Amortization	(585)
Net Carrying Amount	16,666
Weighted Avg. Remaining Life	14 years 3 months 18 days
Customer Relationships
Intangible assets and other assets:
Gross Carrying Amount	10,170
Accumulated Amortization	(753)
Net Carrying Amount	9,417
Weighted Avg. Remaining Life	6 years 3 months 18 days
Non-compete agreement
Intangible assets and other assets:
Gross Carrying Amount	5,701
Accumulated Amortization	(760)
Net Carrying Amount	4,941
Weighted Avg. Remaining Life	3 years 3 months 18 days
Developed software \| Other assets
Intangible assets and other assets:
Gross Carrying Amount	2,719
Accumulated Amortization	(286)
Net Carrying Amount	$ 2,433
Weighted Avg. Remaining Life	4 years 3 months 18 days

Warehouse Borrowings (Details) (USD $)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2015 Repurchase agreement 1	Dec. 31, 2014 Repurchase agreement 1	Sep. 30, 2015 Repurchase agreement 2	Dec. 31, 2014 Repurchase agreement 2	Dec. 31, 2014 Repurchase agreement 3	Sep. 30, 2015 Repurchase agreement 4	Dec. 31, 2014 Repurchase agreement 4	Sep. 30, 2015 Repurchase agreement 5	Sep. 30, 2015 Repurchase agreement 6	Apr. 30, 2015 Replaced warehouse facility
Short-Term Debt
Maximum Borrowing Capacity	$ 675,000,000		$ 150,000,000		$ 50,000,000			$ 225,000,000		$ 150,000,000	$ 100,000,000	$ 100,000,000
Temporary increase in maximum borrowing capacity											150,000,000
Warehouse borrowings	477,673,000	226,718,000	64,534,000	64,907,000	18,369,000	30,523,000	24,012,000	111,501,000	107,276,000	139,266,000	144,003,000
Amount outstanding for re-warehousing								$ 41,300,000

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References+ Details

Term Financing (Details) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended
Term Financing (Details) (USD $)	Jun. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Term Financing
Interest margin over base rate (as a percent)			5.75%
Term financing
Term Financing
Amount of debt issued	$ 30,000,000
Maximum Loan advances	50,000,000
Debt issuance costs		300,000
Percentage applied on interest rate, for prepayment premium calculation (as a percent)		50.00%
Percentage of common stock to be acquired in the event of default (as a percent)		25.00%
Percentage of common stock of any other borrowers' to be acquired in the event of default (as a percent)		50.00%
Term financing \| LIBOR
Term Financing
Interest margin over base rate (as a percent)		8.50%
Structured debt agreement
Term Financing
Amount of debt issued			6,000,000
Repayment of the previous debt by using proceeds of new debt	3,200,000	3,200,000	6,000,000
Line of credit
Term Financing
Repayment of the previous debt by using proceeds of new debt		$ 4,000,000
Interest margin over base rate (as a percent)		3.50%

Convertible Notes (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	1 Months Ended	9 Months Ended
	Apr. 30, 2013 Convertible Notes item	Sep. 30, 2015 2015 Convertible Notes item	May 08, 2015 2015 Convertible Notes
Convertible Notes
Amount of debt issued	$ 20.0		$ 25.0
Interest rate of debt (as a percent)	7.50%		7.50%
Conversion price (in dollars per share)	$ 10.875	$ 21.50
Conditional conversion price (in dollars per share)	$ 16.31	$ 30.10
Number of trading days for which stock price must exceed specified price	20	20
Number of consecutive trading days during which stock price must exceed specified price	30 days	30 days

Line of Credit Agreement (Details) (USD $)	12 Months Ended		9 Months Ended		1 Months Ended
Line of Credit Agreement (Details) (USD $)	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2015 Line of credit	Dec. 31, 2014 Line of credit	Jun. 30, 2015 Term financing
Line of Credit Agreement
Maximum borrowing capacity		$ 675,000,000	$ 4,000,000
Variable interest rate base	LIBOR		one-month LIBOR
Interest margin over base rate (as a percent)	5.75%		3.50%
Proceeds from debt					4,000,000
Outstanding balance				$ 4,000,000

- Definition

+ References+ Details

Short-Term Debt (Details) (USD $)	12 Months Ended	1 Months Ended	9 Months Ended	12 Months Ended
Short-Term Debt (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2015 Structured debt agreement	Sep. 30, 2015 Structured debt agreement	Dec. 31, 2014 Structured debt agreement item	Apr. 27, 2015 Short-term promissory note
Short-Term Debt
Debt issued				$ 6,000,000	$ 10,000,000
Number of residual interests used as collateral for structured debt facility				8
Repayment of the previous debt by using proceeds of new debt		3,200,000	3,200,000	6,000,000
Proceeds from issuance of debt, net of payoff and transaction costs				$ 60,000
Variable interest rate base	LIBOR
Interest margin over base rate (as a percent)	5.75%
Interest rate (as percent)					15.00%

Securitized Mortgage Trusts (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Trust Assets
Securitized mortgage collateral	$ 4,796,405		$ 4,796,405		$ 5,249,639
Real estate owned	18,343		18,343		18,800
Investment securities available-for-sale	50		50		92
Total securitized mortgage trust assets	4,814,798		4,814,798		5,268,531
Trust Liabilities
Securitized mortgage borrowings	4,796,400		4,796,400		5,245,860
Derivative liabilities	2,624		2,624		5,447
Total securitized mortgage trust liabilities	4,799,024		4,799,024		5,251,307
Change in fair value of net trust assets, including trust REO gains (losses)
Change in fair value of net trust assets, excluding REO	(568)	139	1,821	(1,136)
(Losses) gains from REO	(2,436)	(47)	(4,899)	8,977
Change in fair value of net trust assets, including trust REO (losses) gains	$ (3,004)	$ 92	$ (3,078)	$ 7,841

Fair Value of Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2015	Dec. 31, 2014
Level 3 \| Investment securities available-for-sale \| Contingent consideration
Liabilities
Liabilities fair value	$ 68,792
Carrying Amount \| Warehouse Borrowings
Liabilities
Liabilities fair value	477,673	226,718
Carrying Amount \| Short-term structured debt
Liabilities
Liabilities fair value		6,000
Carrying Amount \| Line of credit
Liabilities
Liabilities fair value		4,000
Carrying Amount \| Term financing
Liabilities
Liabilities fair value	30,000
Carrying Amount \| Contingent consideration
Liabilities
Liabilities fair value	68,792
Carrying Amount \| Convertible notes.
Liabilities
Liabilities fair value	45,000	20,000
Carrying Amount \| Long-term debt
Liabilities
Liabilities fair value	31,663	22,122
Carrying Amount \| Securitized mortgage borrowings
Liabilities
Liabilities fair value	4,796,400	5,245,860
Carrying Amount \| Derivative liabilities, securitized trusts
Liabilities
Liabilities fair value	2,624	5,447
Carrying Amount \| Derivative liabilities, lending, net
Liabilities
Liabilities fair value	2,312	930
Carrying Amount \| Cash and cash equivalents
Assets
Assets fair value	10,509	10,073
Carrying Amount \| Restricted cash
Assets
Assets fair value	5,829	2,420
Carrying Amount \| Mortgage loans held-for-sale
Assets
Assets fair value	460,808	239,391
Carrying Amount \| Financing receivables
Assets
Assets fair value	41,334	8,358
Carrying Amount \| Mortgage servicing rights
Assets
Assets fair value	63,281	24,418
Carrying Amount \| Derivative assets, lending, net
Assets
Assets fair value	13,019	2,884
Carrying Amount \| Investment securities available-for-sale
Assets
Assets fair value	50	92
Carrying Amount \| Securitized mortgage collateral
Assets
Assets fair value	4,796,405	5,249,639
Carrying Amount \| Warrant
Assets
Assets fair value		84
Estimated Fair Value \| Level 1 \| Cash and cash equivalents
Assets
Assets fair value	10,509	10,073
Estimated Fair Value \| Level 1 \| Restricted cash
Assets
Assets fair value	5,829	2,420
Estimated Fair Value \| Level 2 \| Warehouse Borrowings
Liabilities
Liabilities fair value	477,673	226,718
Estimated Fair Value \| Level 2 \| Line of credit
Liabilities
Liabilities fair value		4,000
Estimated Fair Value \| Level 2 \| Derivative liabilities, lending, net
Liabilities
Liabilities fair value	2,312	930
Estimated Fair Value \| Level 2 \| Mortgage loans held-for-sale
Assets
Assets fair value	460,808	239,391
Estimated Fair Value \| Level 2 \| Financing receivables
Assets
Assets fair value	41,334	8,358
Estimated Fair Value \| Level 3 \| Short-term structured debt
Liabilities
Liabilities fair value		6,000
Estimated Fair Value \| Level 3 \| Term financing
Liabilities
Liabilities fair value	30,000
Estimated Fair Value \| Level 3 \| Contingent consideration
Liabilities
Liabilities fair value	68,792
Estimated Fair Value \| Level 3 \| Convertible notes.
Liabilities
Liabilities fair value	45,000	20,000
Estimated Fair Value \| Level 3 \| Long-term debt
Liabilities
Liabilities fair value	31,663	22,122
Estimated Fair Value \| Level 3 \| Securitized mortgage borrowings
Liabilities
Liabilities fair value	4,796,400	5,245,860
Estimated Fair Value \| Level 3 \| Derivative liabilities, securitized trusts
Liabilities
Liabilities fair value	2,624	5,447
Estimated Fair Value \| Level 3 \| Mortgage servicing rights
Assets
Assets fair value	63,281	24,418
Estimated Fair Value \| Level 3 \| Derivative assets, lending, net
Assets
Assets fair value	13,019	2,884
Estimated Fair Value \| Level 3 \| Investment securities available-for-sale
Assets
Assets fair value	50	92
Estimated Fair Value \| Level 3 \| Securitized mortgage collateral
Assets
Assets fair value	4,796,405	5,249,639
Estimated Fair Value \| Level 3 \| Warrant
Assets
Assets fair value		$ 84

Fair Value of Financial Instruments (Details 2) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2015	Dec. 31, 2014
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	91.00%	96.00%
Percentage of level three liabilities to total liabilities measured at fair value	99.00%	99.00%
Investment securities available-for-sale \| Contingent consideration \| Level 3
Liabilities
Total liabilities at fair value	$ 68,792
Recurring basis \| Level 2
Assets
Total assets at fair value	460,808	239,391
Liabilities
Total liabilities at fair value	2,312	930
Recurring basis \| Level 3
Assets
Total assets at fair value	4,872,755	5,277,117
Liabilities
Total liabilities at fair value	4,899,479	5,273,429
Recurring basis \| Securitized mortgage borrowings \| Level 3
Liabilities
Total liabilities at fair value	4,796,400	5,245,860
Recurring basis \| Derivative liabilities, net, securitized trusts \| Level 3
Liabilities
Total liabilities at fair value	2,624	5,447
Recurring basis \| Long-term debt \| Level 3
Liabilities
Total liabilities at fair value	31,663	22,122
Recurring basis \| Contingent consideration \| Level 3
Liabilities
Total liabilities at fair value	68,792
Recurring basis \| Derivative liabilities, lending, net \| Level 2
Liabilities
Total liabilities at fair value	2,312	930
Recurring basis \| Investment securities available-for-sale \| Level 3
Assets
Total assets at fair value	50	92
Recurring basis \| Mortgage loans held-for-sale \| Level 2
Assets
Total assets at fair value	460,808	239,391
Recurring basis \| Derivative assets, lending \| Level 3
Assets
Total assets at fair value	13,019	2,884
Recurring basis \| Derivative assets, lending \| Interest rate lock commitments (IRLCs) \| Level 3
Assets
Total assets at fair value		3,000
Recurring basis \| Mortgage servicing rights \| Level 3
Assets
Total assets at fair value	63,281	24,418
Recurring basis \| Warrant \| Level 3
Assets
Total assets at fair value		84
Recurring basis \| Securitized mortgage collateral \| Level 3
Assets
Total assets at fair value	$ 4,796,405	$ 5,249,639

Fair Value of Financial Instruments (Details 3) (USD $)	3 Months Ended		9 Months Ended
Fair Value of Financial Instruments (Details 3) (USD $)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Purchases, issuances and settlements
Issuances		$ 164,000
Fair value at the end of the period		164,000		164,000
Level 3
Purchases, issuances and settlements
Net interest income including cash received and paid	2,000,000	1,800,000	6,300,000	4,000,000
Securitized mortgage borrowings
Purchases, issuances and settlements
Fair value at the end of the period	(4,796,400,000)	(5,346,791,000)	(4,796,400,000)	(5,346,791,000)
Unrealized gains (losses) still held			3,287,018,000	3,581,924,000
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(4,977,150,000)	(5,507,629,000)	(5,245,860,000)	(5,492,371,000)
Total gains (losses) included in earnings	(40,501,000)	(36,603,000)	(164,896,000)	(467,989,000)
Purchases, issuances and settlements
Settlements	221,251,000	197,441,000	614,356,000	613,569,000
Fair value at the end of the period	(4,796,400,000)	(5,346,791,000)	(4,796,400,000)	(5,346,791,000)
Securitized mortgage borrowings \| Interest expense.
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings	(53,552,000)	(64,502,000)	(160,249,000)	(177,629,000)
Securitized mortgage borrowings \| Change in fair value
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings	13,051,000	27,899,000	(4,647,000)	(290,360,000)
Derivative liabilities, net, securitized trusts
Purchases, issuances and settlements
Fair value at the end of the period	(2,624,000)	(6,567,000)	(2,624,000)	(6,567,000)
Unrealized gains (losses) still held			(2,390,000)	(6,132,000)
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(3,509,000)	(7,949,000)	(5,447,000)	(10,214,000)
Total gains (losses) included in earnings	(127,000)	13,000	(483,000)	(413,000)
Purchases, issuances and settlements
Settlements	1,012,000	1,369,000	3,306,000	4,060,000
Fair value at the end of the period	(2,624,000)	(6,567,000)	(2,624,000)	(6,567,000)
Derivative liabilities, net, securitized trusts \| Change in fair value
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings	(127,000)	13,000	(483,000)	(413,000)
Long-term debt
Purchases, issuances and settlements
Fair value at the end of the period	(31,663,000)	(18,040,000)	(31,663,000)	(18,040,000)
Unrealized gains (losses) still held			39,100,000	52,723,000
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(31,438,000)	(17,555,000)	(22,122,000)	(15,871,000)
Total gains (losses) included in earnings	(225,000)	(485,000)	(9,541,000)	(2,169,000)
Purchases, issuances and settlements
Fair value at the end of the period	(31,663,000)	(18,040,000)	(31,663,000)	(18,040,000)
Long-term debt \| Interest expense.
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings	(225,000)	(485,000)	(880,000)	(1,745,000)
Long-term debt \| Change in fair value
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings			(8,661,000)	(424,000)
Contingent consideration
Purchases, issuances and settlements
Fair value at the end of the period	(68,792,000)		(68,792,000)
Unrealized gains (losses) still held			(68,792,000)
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(91,407,000)
Total gains (losses) included in earnings	14,473,000		22,752,000
Purchases, issuances and settlements
Issuances			(124,592,000)
Settlements	8,142,000		33,048,000
Fair value at the end of the period	(68,792,000)		(68,792,000)
Contingent consideration \| Change in fair value
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings	14,473,000		22,752,000
Investment securities available-for-sale
Changes in fair value of assets during the period
Fair value at the beginning of the period	81,000	91,000	92,000	108,000
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(5,000)	17,000	42,000	46,000
Purchases, issuances and settlements
Settlements	(26,000)	(18,000)	(84,000)	(64,000)
Fair value at the end of the period	50,000	90,000	50,000	90,000
Unrealized gains (losses) still held			50,000	84,000
Investment securities available-for-sale \| Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	2,000		9,000	19,000
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		6,000
Investment securities available-for-sale \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(7,000)		33,000	27,000
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		11,000
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	4,979,433,000	5,510,741,000	5,249,639,000	5,494,152,000
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	5,445,000	(6,472,000)	56,637,000	331,878,000
Purchases, issuances and settlements
Settlements	(188,473,000)	(153,795,000)	(509,871,000)	(475,556,000)
Fair value at the end of the period	4,796,405,000	5,350,474,000	4,796,405,000	5,350,474,000
Unrealized gains (losses) still held			(1,143,833,000)	(1,446,463,000)
Securitized mortgage collateral \| Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	18,930,000		49,719,000	42,268,000
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		21,312,000
Securitized mortgage collateral \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(13,485,000)		6,918,000	289,610,000
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		(27,784,000)
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	44,244,000	16,166,000	24,418,000	35,981,000
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(4,347,000)	(1,205,000)	(7,984,000)	(4,928,000)
Purchases, issuances and settlements
Issuances	23,384,000	8,913,000	76,119,000	17,238,000
Settlements		(10,306,000)	(29,272,000)	(34,723,000)
Fair value at the end of the period	63,281,000	13,568,000	63,281,000	13,568,000
Unrealized gains (losses) still held			63,281,000	13,568,000
Mortgage servicing rights \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(4,347,000)		(7,984,000)	(4,928,000)
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		(1,205,000)
Interest rate lock commitments (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	8,406,000	3,073,000	2,884,000	913,000
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	4,613,000	(757,000)	10,135,000	1,414,000
Purchases, issuances and settlements
Settlements				(11,000)
Fair value at the end of the period	13,019,000	2,316,000	13,019,000	2,316,000
Unrealized gains (losses) still held			13,019,000	2,316,000
Interest rate lock commitments (IRLCs) \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	4,613,000		10,135,000	1,414,000
Changes in fair value of liabilities during the period
Total gains (losses) included in earnings		(757,000)
Warrant
Changes in fair value of assets during the period
Fair value at the beginning of the period	165,000		84,000
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(165,000)		(84,000)
Purchases, issuances and settlements
Issuances				164,000
Fair value at the end of the period		164,000		164,000
Unrealized gains (losses) still held				164,000
Warrant \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	$ (165,000)		$ (84,000)

Fair Value of Financial Instruments (Details 4) (Level 3, USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2015
Securitized mortgage borrowings \| DCF
Valuation techniques
Estimated fair value of liabilities	$ (4,796,400)
Securitized mortgage borrowings \| DCF \| Minimum
Unobservable input
Default rates (as a percent)	0.60%
Loss severities (as a percent)	5.40%
Securitized mortgage borrowings \| DCF \| Maximum
Unobservable input
Default rates (as a percent)	15.50%
Loss severities (as a percent)	60.20%
Securitized mortgage borrowings \| DCF \| Weighted Average
Unobservable input
Loss severities (as a percent)	37.80%
Derivative liabilities, net, securitized trusts \| DCF
Valuation techniques
Estimated fair value of liabilities	(2,624)
Unobservable input
Variable rate basis	1M forward LIBOR
Derivative liabilities, net, securitized trusts \| DCF \| Minimum
Unobservable input
Variable rate (as a percent)	0.20%
Derivative liabilities, net, securitized trusts \| DCF \| Maximum
Unobservable input
Variable rate (as a percent)	2.80%
Long-term debt \| DCF
Valuation techniques
Estimated fair value of liabilities	(31,663)
Unobservable input
Discount rates (as a percent)	14.40%
Long-term debt \| DCF \| Weighted Average
Unobservable input
Discount rates (as a percent)	14.40%
Lease Liability \| DCF
Valuation techniques
Estimated fair value of liabilities	(984)
Unobservable input
Discount rates (as a percent)	12.00%
Lease Liability \| DCF \| Weighted Average
Unobservable input
Discount rates (as a percent)	12.00%
Contingent consideration \| DCF
Unobservable input
Discount rates (as a percent)	17.00%
Contingent consideration \| DCF \| Minimum
Unobservable input
Margins	1.70%
Probability of outcomes	25.00%
Contingent consideration \| DCF \| Maximum
Unobservable input
Margins	3.70%
Probability of outcomes	50.00%
Contingent consideration \| DCF \| Weighted Average
Unobservable input
Discount rates (as a percent)	17.00%
Margins	2.50%
Probability of outcomes	32.10%
Investment securities available-for-sale \| DCF
Valuation techniques
Estimated fair value of assets	50
Investment securities available-for-sale \| DCF \| Minimum
Unobservable input
Discount rates (as a percent)	3.20%
Investment securities available-for-sale \| DCF \| Maximum
Unobservable input
Discount rates (as a percent)	25.00%
Investment securities available-for-sale \| DCF \| Weighted Average
Unobservable input
Discount rates (as a percent)	5.10%
Investment securities available-for-sale \| Contingent consideration
Valuation techniques
Estimated fair value of liabilities	(68,792)
Securitized mortgage collateral \| DCF
Valuation techniques
Estimated fair value of assets	4,796,405
Securitized mortgage collateral \| DCF \| Minimum
Unobservable input
Prepayment rates (as a percent)	2.10%
Securitized mortgage collateral \| DCF \| Maximum
Unobservable input
Prepayment rates (as a percent)	28.10%
Securitized mortgage collateral \| DCF \| Weighted Average
Unobservable input
Prepayment rates (as a percent)	6.00%
Mortgage servicing rights \| DCF
Valuation techniques
Estimated fair value of assets	63,281
Mortgage servicing rights \| DCF \| Minimum
Unobservable input
Discount rates (as a percent)	9.50%
Prepayment rates (as a percent)	3.30%
Mortgage servicing rights \| DCF \| Maximum
Unobservable input
Discount rates (as a percent)	12.50%
Prepayment rates (as a percent)	28.70%
Mortgage servicing rights \| DCF \| Weighted Average
Unobservable input
Discount rates (as a percent)	9.90%
Prepayment rates (as a percent)	10.20%
Mortgage servicing rights \| Securitized mortgage borrowings \| DCF \| Weighted Average
Unobservable input
Default rates (as a percent)	2.80%
Derivative assets, lending, net \| Market pricing
Valuation techniques
Estimated fair value of assets	$ 13,019
Derivative assets, lending, net \| Market pricing \| Minimum
Unobservable input
Pull-through rate (as a percent)	38.00%
Derivative assets, lending, net \| Market pricing \| Maximum
Unobservable input
Pull-through rate (as a percent)	99.00%
Derivative assets, lending, net \| Market pricing \| Weighted Average
Unobservable input
Pull-through rate (as a percent)	75.60%

Fair Value of Financial Instruments (Details 5) (USD $)	3 Months Ended		9 Months Ended
Fair Value of Financial Instruments (Details 5) (USD $)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Change in Fair Value Included in Net Earnings (Loss)
Change in the fair value of trust assets, excluding REO	$ (568,000)	$ 139,000	$ 1,821,000	$ (1,136,000)
Change in fair value of net trust assets, excluding REO			4,977,000	2,786,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	6,088,038,000		6,088,038,000		2,267,086,000
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Total	(17,820,000)	(42,357,000)	(85,773,000)	(138,302,000)
Recurring basis \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Total	18,932,000	21,318,000	49,728,000	42,287,000
Recurring basis \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Total	(53,777,000)	(64,987,000)	(161,129,000)	(179,374,000)
Recurring basis \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	(568,000)	139,000	1,821,000	(1,136,000)
Cash payments from the securitization trusts				3,900,000
Change in the fair value of trust assets, excluding REO			1,800,000
Change in fair value of net trust assets, excluding REO			3,200,000	1,100,000
Recurring basis \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total			(8,661,000)	(424,000)
Recurring basis \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Total	9,960,000	(1,205,000)	14,684,000	(4,928,000)
Recurring basis \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	7,633,000	2,378,000	17,784,000	5,273,000
Recurring basis \| Warrant
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	165,000		(84,000)
Recurring basis \| Warrant \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	165,000		(84,000)
Recurring basis \| Contingent consideration
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	14,472,000		22,752,000
Recurring basis \| Contingent consideration \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	14,472,000		22,752,000
Recurring basis \| Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(40,501,000)	(36,603,000)	(164,896,000)	(467,989,000)
Recurring basis \| Securitized mortgage borrowings \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(53,552,000)	(64,502,000)	(160,249,000)	(177,629,000)
Recurring basis \| Securitized mortgage borrowings \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	13,051,000	27,899,000	(4,647,000)	(290,360,000)
Recurring basis \| Derivative liabilities, net, securitized trusts
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(127,000)	13,000	(483,000)	(413,000)
Recurring basis \| Derivative liabilities, net, securitized trusts \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(127,000)	13,000	(483,000)	(413,000)
Changes in the fair value of derivative instruments	835,000	1,300,000	2,700,000	3,500,000
Cash payments from the securitization trusts	963,000,000	1,300,000	3,200,000	3,900,000
Recurring basis \| Derivative liabilities, net, securitized trusts \| Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(3,658,000)	841,000	(1,381,000)	(1,244,000)
Recurring basis \| Derivative liabilities, net, securitized trusts \| Hedging Instruments \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(3,658,000)	841,000	(1,381,000)	(1,244,000)
Recurring basis \| Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(225,000)	(485,000)	(9,541,000)	(2,169,000)
Recurring basis \| Long-term debt \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(225,000)	(485,000)	(880,000)	(1,745,000)
Recurring basis \| Long-term debt \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities			(8,661,000)	(424,000)
Recurring basis \| Investment securities available-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(5,000)	17,000	42,000	46,000
Recurring basis \| Investment securities available-for-sale \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	2,000	6,000	9,000	19,000
Recurring basis \| Investment securities available-for-sale \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(7,000)	11,000	33,000	27,000
Recurring basis \| Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	5,445,000	(6,472,000)	56,637,000	331,878,000
Recurring basis \| Securitized mortgage collateral \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	18,930,000	21,312,000	49,719,000	42,268,000
Recurring basis \| Securitized mortgage collateral \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(13,485,000)	(27,784,000)	6,918,000	289,610,000
Recurring basis \| Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(4,347,000)	(1,205,000)	(7,984,000)	(4,928,000)
Recurring basis \| Mortgage servicing rights \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(4,347,000)	(1,205,000)	(7,984,000)	(4,928,000)
Recurring basis \| Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,678,000	2,294,000	9,030,000	5,103,000
Recurring basis \| Mortgage loans held-for-sale \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,678,000	2,294,000	9,030,000	5,103,000
Recurring basis \| Derivative assets - IRLCs \| Interest rate lock commitments (IRLCs)
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	4,613,000	(757,000)	10,135,000	1,414,000
Recurring basis \| Derivative assets - IRLCs \| Interest rate lock commitments (IRLCs) \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	4,613,000	(757,000)	10,135,000	1,414,000
Recurring basis \| Level 3
Derivative assets and liabilities
Notional balance of derivative assets and liabilities, securitized trusts	74,000,000		74,000,000
Recurring basis \| Level 3 \| Long-term debt
Long-term debt
Long-term debt unpaid principal balance	70,500,000		70,500,000
Estimated fair value of long-term debt	31,700,000		31,700,000
Difference between aggregate unpaid principal balances and fair value of long-term debt	38,800,000		38,800,000
Recurring basis \| Level 3 \| Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	5,900,000,000		5,900,000,000
Estimated fair value of securitized mortgage collateral	4,800,000,000		4,800,000,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	1,100,000,000		1,100,000,000
Unpaid principal balance of loans 90 days or more past due	900,000,000		900,000,000
Estimated fair value of loans 90 days or more past due	400,000,000		400,000,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	500,000,000		500,000,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	5,900,000,000		5,900,000,000
Estimated fair value of securitized mortgage borrowings	4,800,000,000		4,800,000,000
Bond losses	2,200,000,000		2,200,000,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 1,100,000,000		$ 1,100,000,000

Fair Value of Financial Instruments (Details 6 (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Derivative liabilities, net, securitized trusts \| TBA's
Derivative assets and liabilities - lending
Derivative liabilities, Notional Balance	$ 550,210	$ 285,797	$ 550,210	$ 285,797
Total Gains (Losses)	(10,406)	(1,595)	(9,835)	(9,823)
Impac Mortgage Corp.
Derivative assets and liabilities - lending
Maximum percentage of ownership interest in acquiree for which warrants were issued			9.90%
Derivative assets - IRLCs \| Interest rate lock commitments (IRLCs)
Derivative assets and liabilities - lending
Derivative liabilities, Notional Balance	664,890	208,433	664,890	208,433
Total Gains (Losses)	$ 4,613	$ (757)	$ 10,135	$ 1,414

Fair Value of Financial Instruments (Details 7) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value Measurements
Deferred charge	$ (1,054)		$ (1,054)
Total Gains (Losses)
Deferred charge, tax expense on impairment write-downs	(421)
Impairment of deferred charge	421	0	1,100	0
Nonrecurring Fair Value Measurements
Fair Value Measurements
REO			(4,900)	8,977
Lease liability			(53)	(617)
Total Gains (Losses)
Additional impairment write-downs attributable to higher expected loss severities on properties held	(2,436)	(47)
Losses from changes in lease liabilities as a result of changes in expected minimum future lease payments	(14)	11
Nonrecurring Fair Value Measurements \| Continuing operations
Total Gains (Losses)
Gains (losses) resulting from recovery (impairment write-downs) of the net realizable value		(47)	4,900	9,000
Nonrecurring Fair Value Measurements \| Level 2
Fair Value Measurements
REO			2,066	1,686
Nonrecurring Fair Value Measurements \| Level 3
Fair Value Measurements
Lease liability			(984)	(1,705)
Deferred charge	$ 10,467		$ 10,467

Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
Income Taxes (Details) (USD $)	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Reconciliation of income taxes to the expected statutory federal corporate income tax rates
Income tax expense (benefit)	$ 781,000	$ 307,000	$ (22,852,000)	$ 1,405,000
Reversal of valuation allowance			24,400,000
Net deferred tax asset	24,400,000		24,400,000			163,200,000
Deferred taxes realizable in future years					24,400,000
AmeriHome
Reconciliation of income taxes to the expected statutory federal corporate income tax rates
Income tax expense (benefit)		$ 307,000		$ 1,400,000

Reconciliation of Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator for basic earnings ( loss) per share:
Net earnings (loss)	$ 19,309	$ (1,201)	$ 70,090	$ (4,085)
Numerator for diluted earning (loss) per share:
Net earnings (loss)	19,309	(1,201)	70,090	(4,085)
Interest expense attributable to convertible notes	844		1,875
Net earnings (loss) plus interest expense attributable to convertible notes	$ 20,153	$ (1,201)	$ 71,965	$ (4,085)
Denominator for basic earnings ( loss) per share:
Basic weighted average common shares outstanding during the year	10,242	9,466	10,019	9,262
Denominator for diluted earnings (loss) per share:
Basic weighted average common shares outstanding during the year	10,242	9,466	10,019	9,262
Net effect of dilutive convertible notes	3,002		2,461
Net effect of dilutive stock options and DSU's	354		357
Diluted weighted average common shares	13,598	9,466	12,837	9,262
Basic	$ 1.89	$ (0.13)	$ 7.00	$ (0.44)
Diluted	$ 1.48	$ (0.13)	$ 5.61	$ (0.44)
Stock options
Denominator for diluted earnings (loss) per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)	367	2,900	367	2,900
Convertible Debt Notes
Denominator for diluted earnings (loss) per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)		1,800		1,800

Segment Reporting (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015 item	Sep. 30, 2014	Dec. 31, 2014
Segment Reporting
Number of reportable segments			3
Segment Reporting
Gain on sale of loans, net	$ 47,274	$ 8,602	$ 133,018	$ 19,468
Real estate services fees, net	2,775	3,243	7,872	11,282
Servicing income, net	2,432	913	4,083	3,773
Loss on mortgage servicing rights	(4,818)	(998)	(14,176)	(3,540)
Other revenue	(11)	197	283	1,703
Other income (expense)	(2,885)	839	(9,604)	7,755
Total expenses (income)	(24,677)	(13,690)	(74,238)	(43,121)
Net earnings (loss) before income taxes	20,090	(894)	47,238	(2,680)
Income tax expense (benefit)	781	307	(22,852)	1,405
Net earnings (loss)	19,309	(1,201)	70,090	(4,085)
Total assets	5,594,883		5,594,883		5,578,572
Corporate and Other
Segment Reporting
Other revenue	55	2	105	41
Other income (expense)	(1,607)	(405)	(2,996)	(1,212)
Total expenses (income)	(1,515)	(3,344)	(5,760)	(11,638)
Net earnings (loss) before income taxes	(3,067)	(3,747)	(8,651)	(12,809)
Total assets	28,971		28,971		3,797
Mortgage Lending \| Operating segments
Segment Reporting
Gain on sale of loans, net	47,274	8,602	133,018	19,468
Servicing income, net	2,432	913	4,083	3,773
Loss on mortgage servicing rights	(4,818)	(998)	(14,176)	(3,540)
Other revenue	(145)	109	(25)	1,366
Other income (expense)	658	403	1,673	774
Total expenses (income)	(21,354)	(8,746)	(63,347)	(26,320)
Net earnings (loss) before income taxes	24,047	283	61,226	(4,479)
Total assets	737,547		737,547		291,829
Real Estate Services \| Operating segments
Segment Reporting
Real estate services fees, net	2,775	3,243	7,872	11,282
Other income (expense)		(6)		(5)
Total expenses (income)	(1,447)	(1,386)	(4,422)	(4,443)
Net earnings (loss) before income taxes	1,328	1,851	3,450	6,834
Total assets	2,893		2,893		2,672
Long-term Portfolio \| Operating segments
Segment Reporting
Other revenue	79	86	203	296
Other income (expense)	(1,936)	847	(8,281)	8,198
Total expenses (income)	(361)	(214)	(709)	(720)
Net earnings (loss) before income taxes	(2,218)	719	(8,787)	7,774
Total assets	$ 4,825,472		$ 4,825,472		$ 5,280,274

Commitments and Contingencies (Details) (USD $)	1 Months Ended	3 Months Ended		9 Months Ended	12 Months Ended
Commitments and Contingencies (Details) (USD $)	Apr. 30, 2015	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Commitments and Contingencies
Settlement amount	$ 228,000		$ 1,000,000
Provision for repurchases		(980,000)		340,000	2,252,000
Approved warehouse lines		675,000,000		675,000,000
Outstanding balance of finance receivables		41,300,000		41,300,000	8,400,000
Warehouse Borrowings \| Non-affiliated customers
Commitments and Contingencies
Approved warehouse lines		$ 116,500,000		$ 116,500,000

Commitments and Contingencies (Details 2) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Commitments and Contingencies
Beginning balance		$ 5,714	$ 9,478
Provision for repurchases	(980)	340	2,252
Settlements		(1,286)	(6,016)
Total repurchase reserve	$ 4,768	$ 4,768	$ 5,714

Share Based Payments (Details) (Stock options, USD $) In Millions, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Weighted average assumptions used in estimating fair value of options granted
Expected dividend yield (as a percent)	0.00%
Number of Shares
Options outstanding at beginning of period (in shares)	1,078,230
Options granted (in shares)	405,800	409,250
Options exercised (in shares)	(209,104)
Options forfeited / cancelled (in shares)	(102,946)
Options outstanding at end of period (in shares)	1,171,980
Options exercisable at end of period (in shares)	495,701
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share)	$ 6.88
Options granted (in dollars per share)	$ 19.59
Options exercised (in dollars per share)	$ 3.07
Options forfeited / cancelled (in dollars per share)	$ 9.08
Options outstanding at end of year (in dollars per share)	$ 11.77
Options exercisable at end of period (in dollars per share)	$ 8.13
Additional disclosure related to options
Unrecognized compensation cost	$ 3.9
Weighted-average period over which compensation cost is expected to be recognized	2 years 4 months 24 days
Aggregate grant-date fair value of stock options granted	$ 3.8	$ 1.4
Minimum
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)	1.54%
Expected lives (in years)	5 years 6 months
Expected volatility (as a percent)	49.53%
Fair value per share (in dollars per share)	$ 6.74
Maximum
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)	1.76%
Expected lives (in years)	5 years 8 months 23 days
Expected volatility (as a percent)	79.56%
Fair value per share (in dollars per share)	$ 9.96

Share Based Payments (Details 2) (RSU, USD $) In Thousands, except Share data, unless otherwise specified	9 Months Ended
	Sep. 30, 2015
RSU
Number of Shares
DSU's outstanding at beginning of period (in shares)	75,750
DSU's granted (in shares)	5,000
DSU's outstanding at end of period (in shares)	80,750
Weighted-Average Grant Date Fair Value
DSU's outstanding at beginning of period (in dollars per share)	$ 8.63
DSU's granted (in dollars per share)	$ 20.50
DSU's outstanding at end of period (in dollars per share)	$ 9.36
Additional information regarding DSUs
Unrecognized compensation cost	$ 169
Weighted-average period over which compensation cost is expected to be recognized	9 months 18 days

Related Party Transactions (Details) (Short-term borrowing, USD $)	1 Months Ended
	Jan. 31, 2015
Short-term borrowing
Related Party Transactions
Amount of debt issued	$ 5,000,000
Interest rate (as percent)	15.00%
Expenses for services received from related party	$ 50,000

Sale of AmeriHome (Details) (USD $)	9 Months Ended	1 Months Ended
Sale of AmeriHome (Details) (USD $)	Sep. 30, 2014	Mar. 31, 2014 AmeriHome
Sale of AmeriHome
Cash consideration received on sale of business	$ 10,200,000	$ 10,200,000
Gain on sale of business	1,208,000	1,200,000
Proceeds on sale of business used to reduce legacy repurchase liability		$ 3,000,000

Subsequent Events (Details) (Subsequent Event, USD $)	Oct. 31, 2015
Conventional
Subsequent events
Mortgage servicing Rights	$ 3,500,000,000
Approximate cash proceeds	34,000,000
Government
Subsequent events
Mortgage servicing Rights	$ 1,000,000,000