Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	IMPAC MORTGAGE HOLDINGS INC
Entity Central Index Key	0001000298
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 162.0
Entity Common Stock, Shares Outstanding		20,952,679
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 33,223	$ 40,096
Restricted cash	5,876	5,971
Mortgage loans held-for-sale	568,781	388,422
Finance receivables	41,777	62,937
Mortgage servicing rights	154,405	131,537
Securitized mortgage trust assets	3,670,550	4,033,290
Goodwill	104,587	104,938
Intangible assets, net	21,582	25,778
Loans eligible for repurchase from Ginnie Mae	47,697	9,917
Other assets	33,222	60,848
Total assets	4,681,700	4,863,734
LIABILITIES
Warehouse borrowings	575,363	420,573
MSR financings	35,133
Term financing, net		29,910
Convertible notes, net	24,974	24,965
Long-term debt	44,982	47,207
Securitized mortgage trust liabilities	3,653,265	4,017,603
Liability for loans eligible for repurchase from Ginnie Mae	47,697	9,917
Contingent consideration	554	31,072
Other liabilities	34,585	51,447
Total liabilities	4,416,553	4,632,694
Commitments and contingencies (See Note 17)
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value; 200,000,000 shares authorized; 20,949,679 and 16,019,983 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively	209	160
Additional paid-in capital	1,233,704	1,168,125
Net accumulated deficit:
Cumulative dividends declared	(822,520)	(822,520)
Retained deficit	(146,267)	(114,746)
Net accumulated deficit	(968,787)	(937,266)
Total stockholders' equity	265,147	231,040
Total liabilities and stockholders' equity	4,681,700	4,863,734
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	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Preferred stock, liquidation value (in dollars)	$ 51,800
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	20,949,679	16,019,983
Common stock, shares outstanding	20,949,679	16,019,983
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	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Gain on sale of loans, net	$ 136,147	$ 311,017	$ 169,206
Real estate services fees, net	5,856	8,395	9,850
Servicing fees, net	31,902	13,734	6,102
Loss on mortgage servicing rights, net	(35,880)	(36,441)	(18,598)
Other	680	1,051	397
Total revenues	138,705	297,756	166,957
Expenses:
Personnel expense	89,647	124,559	77,821
Business promotion	40,276	42,571	27,650
General, administrative and other	37,775	33,771	27,988
Accretion of contingent consideration	2,058	6,997	8,142
Change in fair value of contingent consideration	(13,326)	30,145	(45,920)
Total expenses	156,430	238,043	95,681
Operating income	(17,725)	59,713	71,276
Other income (expense):
Interest income	230,330	263,600	276,799
Interest expense	(225,987)	(260,810)	(274,853)
Loss on extinguishment of debt	(1,265)
Change in fair value of long-term debt	(2,949)	(14,436)	(8,661)
Change in fair value of net trust assets, including trust REO gains (losses)	6,213	(304)	(5,638)
Total other income (expense)	6,342	(11,950)	(12,353)
(Loss) earnings before income taxes	(11,383)	47,763	58,923
Income tax expense (benefit)	20,138	1,093	(21,876)
Net (loss) earnings	$ (31,521)	$ 46,670	$ 80,799
Earnings (loss) per common share :
Basic (in dollars per share)	$ (1.62)	$ 3.54	$ 8.00
Diluted (in dollars per share)	$ (1.62)	$ 3.31	$ 6.40

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock	Common Stock	Additional Paid-In Capital	Cumulative Dividends Declared	Retained Deficit	Total
Balance at Dec. 31, 2014	$ 21	$ 96	$ 1,089,574	$ (822,520)	$ (242,215)	$ 24,956
Balance (in shares) at Dec. 31, 2014	2,070,678	9,588,532
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 2	970			972
Proceeds and tax benefit from exercise of stock options (in shares)		243,971
Stock based compensation			1,613			1,613
Shares issued related to CashCall acquisition (Note 2)		$ 5	6,145			6,150
Shares issued related to CashCall acquisition (Note 2) (in shares)		494,017
Net (loss) earnings					80,799	80,799
Balance at Dec. 31, 2015	$ 21	$ 103	1,098,302	(822,520)	(161,416)	114,490
Balance (in shares) at Dec. 31, 2015	2,070,678	10,326,520
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	217			218
Proceeds and tax benefit from exercise of stock options (in shares)		42,954
Stock based compensation			2,131			2,131
Common stock issuance, net		$ 38	47,493			47,531
Common stock issuance, net (in shares)		3,811,429
Convertible note share issuance		$ 18	19,982			20,000
Convertible note share issuance (in shares)		1,839,080
Net (loss) earnings					46,670	46,670
Balance at Dec. 31, 2016	$ 21	$ 160	1,168,125	(822,520)	(114,746)	231,040
Balance (in shares) at Dec. 31, 2016	2,070,678	16,019,983
Increase (Decrease) in Stockholders' Equity
Proceeds and tax benefit from exercise of stock options		$ 1	592			593
Proceeds and tax benefit from exercise of stock options (in shares)		94,051
Stock based compensation			2,548			2,548
Common stock issuance, net		$ 44	55,410			55,454
Common stock issuance, net (in shares)		4,423,381
Trust preferred exchange		$ 4	7,029			7,033
Trust preferred exchange (in shares)		412,264
Net (loss) earnings					(31,521)	(31,521)
Balance at Dec. 31, 2017	$ 21	$ 209	$ 1,233,704	$ (822,520)	$ (146,267)	$ 265,147
Balance (in shares) at Dec. 31, 2017	2,070,678	20,949,679

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) earnings	$ (31,521)	$ 46,670	$ 80,799
Loss on sale of mortgage servicing rights	93	10,688	8,046
Change in fair value of mortgage servicing rights	37,904	24,388	10,939
Loss on extinguishment of debt	1,265
Gain on sale of mortgage loans	(135,749)	(309,185)	(162,988)
Change in fair value of mortgage loans held-for-sale	(8,367)	22	(404)
Change in fair value of derivatives lending, net	6,055	(1,807)	(6,916)
Provision for repurchases	1,557	379	1,012
Origination of mortgage loans held-for-sale	(7,111,734)	(12,924,252)	(9,258,350)
Sale and principal reduction on mortgage loans held-for-sale	7,019,442	13,026,911	9,252,839
(Gains) losses from REO	(7,425)	5,934	6,595
Change in fair value of net trust assets, excluding REO	1,212	(7,347)	(5,021)
Change in fair value of long-term debt	2,949	14,436	8,661
Accretion of interest income and expense	86,189	126,598	148,121
Amortization of intangible and other assets	4,768	4,769	3,576
Accretion of contingent consideration	2,058	6,997	8,142
Change in fair value of contingent consideration	(13,326)	30,145	(45,920)
Amortization of debt issuance costs and discount on note payable	166	440	334
Stock-based compensation	2,548	2,131	1,613
Impairment of deferred charge	858	1,278	1,558
Impairment of goodwill	351
Excess tax benefit from share based compensation	(367)
Change in deferred tax assets, net	20,105		(24,420)
Net change in restricted cash	95	(2,497)	(1,054)
Net change in other assets	794	(6,616)	(5,361)
Net change in other liabilities	(17,805)	15,394	8,863
Net cash (used in) provided by operating activities	(137,885)	65,476	30,664
CASH FLOWS FROM INVESTING ACTIVITIES:
Net change in securitized mortgage collateral	632,524	619,844	649,454
Proceeds from the sale of mortgage servicing rights	802	6,837	67,111
Purchase of mortgage servicing rights	(5,618)
Finance receivable advances to customers	(909,719)	(928,238)	(664,550)
Repayments of finance receivables	930,879	901,669	636,540
Net change in mortgages held-for-investment	11	46	46
Purchase of premises and equipment	(469)	(266)	109
Net principal change on investment securities available-for-sale		47	90
Acquisition of CashCall Mortgage			(7,500)
Proceeds from the sale of REO	29,082	41,962	33,087
Net cash provided by investing activities	677,492	641,901	714,387
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	55,454	47,531
Issuance of convertible notes			25,000
Issuance of term financing			30,000
Repayment of MSR financing	(25,000)
Borrowings under MSR financing	60,133
Repayment of warehouse borrowings	(6,743,048)	(12,318,880)	(8,825,747)
Borrowings under warehouse agreements	6,897,838	12,413,837	8,924,645
Repayment of line of credit			(11,000)
Borrowings under line of credit			7,000
Repayment of short-term borrowing			(15,000)
Repayment of term financing	(30,000)
Payment of acquisition related contingent consideration	(19,250)	(54,149)	(38,110)
Short-term borrowing			15,000
Repayment of securitized mortgage borrowings	(742,421)	(787,644)	(828,195)
Principal payments on short-term debt			(6,000)
Principal payments on capital lease	(324)	(503)	(781)
Debt issuance costs	(100)	(100)	(500)
Tax payments on stock based compensation awards	(355)
Proceeds from exercise of stock options	593	218	973
Net cash used in financing activities	(546,480)	(699,690)	(722,715)
Net change in cash and cash equivalents	(6,873)	7,687	22,336
Cash and cash equivalents at beginning of year	40,096	32,409	10,073
Cash and cash equivalents at end of year	33,223	40,096	32,409
SUPPLEMENTARY INFORMATION:
Interest paid	93,802	77,469	63,283
Taxes paid, net of refunds	76	339	1,229
NON-CASH TRANSACTIONS:
Transfer of securitized mortgage collateral to real estate owned	18,800	39,706	40,471
Mortgage servicing rights retained from loan sales and issuance of mortgage backed securities	56,049	128,273	98,103
Common stock issued upon long-term debt exchange	$ 7,033
Common stock issued upon conversion of debt		20,000
Acquisition of equipment purchased through capital leases		$ 551	413
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

Summary of Business and Financial Statement Presentation	12 Months Ended
	Dec. 31, 2017
Summary of Business and Financial Statement Presentation
Summary of Business and Financial Statement Presentation	IMPAC MORTGAGE HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (dollars in thousands, except per share data or as otherwise indicated) Note 1.—Summary of Business and Financial Statement Presentation including Significant Accounting Policies Business Summary Impac Mortgage Holdings, Inc. (the Company, IMH or Parent) 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). 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 Basis of Presentation The accompanying consolidated financial statements include the accounts of IMH and its wholly-owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). 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 year 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 derivative instruments, including, interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions. Principles of Consolidation The accompanying consolidated financial statements include accounts of IMH and other entities in which the Company has a controlling financial interest. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (VIEs), through arrangements that do not involve voting interests. The VIE framework requires a variable interest holder (counterparty to a VIE) to consolidate the VIE if that party has the power to direct activities of the VIE that most significantly impact the entity’s economic performance, will absorb a majority of the expected losses of the VIE, will receive a majority of the residual returns of the VIE, or both, and directs the significant activities of the entity. This party is considered the primary beneficiary of the entity. The determination of whether the Company meets the criteria to be considered the primary beneficiary of a VIE requires an evaluation of all transactions (such as investments, liquidity commitments, derivatives and fee arrangements) with the entity. Significant Accounting Policies Fair Value Option The Company has elected the fair value option for investment securities available-for-sale, securitized mortgage collateral, mortgage servicing rights, mortgage loans held-for-sale, securitized mortgage borrowings and long-term debt. Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments. Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less at the date of acquisition. The carrying amount of cash and cash equivalents approximates fair value. Cash balances that have restrictions as to the Company’s ability to withdraw funds are considered restricted cash. At December 31, 2017 and 2016, restricted cash totaled $5.9 million and $6.0 million, respectively. The restricted cash is the result of the terms of the Company’s warehouse borrowings. In accordance with the terms of the Master Repurchase Agreements related to the warehouse borrowings, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings (See Note 9.—Debt). Mortgage Loans Held‑for‑Sale Mortgage loans held-for-sale (LHFS) are accounted for using the fair value option, with changes in fair value recorded in gain on sale of loans, net in the accompanying consolidated statements of operations. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825, Financial Instruments, loan origination fees and expenses are recognized in earnings as incurred and not deferred. Revenue derived from the Company’s mortgage lending activities includes loan fees collected at the time of origination and gain or loss from the sale of LHFS. Loan fees consist of fee income earned on all loan originations, including loans closed and held for sale. Loan fees are recognized as earned and consist of amounts collected for application and underwriting fees, fees on cancelled loans and discount points. The related direct loan origination costs are recognized when incurred and consists of broker fees and commissions. Gain or loss from the sale and mark‑to‑market of LHFS includes both realized and unrealized gains and losses and are included in gain on sale of loans, net in the accompanying consolidated statements of operations. The valuation of LHFS approximates a whole‑loan price, which includes the value of the related mortgage servicing rights. The Company principally sells its LHFS to government sponsored entities, and to a lesser extent, investors. The Company evaluates its loan sales for sales treatment. To the extent the transfer of loans qualifies as a sale, the Company derecognizes the loans and records a realized gain or loss on the sale date. In the event the Company determines that the transfer of loans does not qualify as a sale, the transfer would be treated as a secured borrowing. Interest on loans is recorded as income when earned and deemed collectible. LHFS are placed on nonaccrual status when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received from loans on nonaccrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible. Mortgage Servicing Rights The Company accounts for mortgage loan sales in accordance with FASB ASC 860, Transfers and Servicing. Upon sale of mortgage loans on a service-retained basis, the LHFS are removed from the balance sheet, mortgage servicing rights (MSRs) are recorded as an asset for servicing rights retained. The Company elected to measure MSRs at fair value as prescribed by FASB ASC 860-50-35, and as such, servicing assets or liabilities are valued using discounted cash flow modeling techniques using assumptions regarding future net servicing cash flow, including prepayment rates, discount rates, servicing cost and other factors. Changes in estimated fair value are reported in the accompanying consolidated statements of operations within loss on mortgage servicing rights, net. When the Company sells mortgage servicing rights, the Company records a gain or loss on such sale based on the selling price of the mortgage servicing rights less the carrying value and transaction costs. Gains and losses are reported in the accompanying consolidated statements of operations within loss on mortgage servicing rights, net. Finance Receivables Finance receivables represent transactions with the Company’s customers involved in residential real estate lending. As a warehouse lender, the Company’s warehouse lending operations are a secured creditor of the mortgage bankers and brokers to which the Company extends credit and is subject to the risks inherent in that status, including the risk of borrower fraud, default and bankruptcy. Any claim of the Company’s warehouse lending operations as a secured lender in a bankruptcy proceeding may be subject to adjustment and delay. Finance receivables from customers represent repurchase facilities with mortgage bankers that are primarily collateralized by mortgages on single-family residential real estate. Terms of the repurchase facilities, including the maximum facility amount and interest rate, are determined based upon the financial strength, historical performance and other qualifications of the borrower. The warehouse facilities to customers have maturities that range from on-demand to one year. Finance receivables are stated at the principal balance outstanding. Interest income is recorded on the accrual basis. Securitized Mortgage Collateral The Company’s long‑term mortgage portfolio primarily includes adjustable rate and, to a lesser extent, fixed rate non‑conforming mortgages and commercial mortgages that were acquired and originated by our mortgage and commercial operations prior to 2008. Non‑conforming mortgages may not have certain documentation or verifications that are required by government sponsored entities and, therefore, in making our credit decisions, we were more reliant upon the borrower’s credit score and the adequacy of the underlying collateral. Historically, the Company securitized mortgages in the form of collateralized mortgage obligations (CMO) or real estate mortgage investment conduits (REMICs). These securitizations are evaluated for consolidation based on the provisions of FASB ASC 810‑10‑25. Amounts consolidated are included in trust assets and liabilities as securitized mortgage collateral, real estate owned, derivative assets, securitized mortgage borrowings and derivative liabilities in the accompanying consolidated balance sheets. The Company accounts for securitized mortgage collateral at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest income on securitized mortgage collateral is recorded using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Securitized mortgage collateral is generally not placed on nonaccrual status as the servicer advances the interest payments to the trust regardless of the delinquency status of the underlying mortgage loan, until it becomes apparent to the servicer that the advance is not collectible. Real Estate Owned Real estate owned (REO) on the balance sheet are primarily assets within the securitized trusts but are recorded as a separate asset for accounting and reporting purposes and are within the long‑term mortgage portfolio. REO, which consists of residential real estate acquired in satisfaction of loans, is carried at net realizable value, which includes the estimated fair value of the residential real estate less estimated selling and holding costs. Adjustments to the loan carrying value required at the time of foreclosure affect the carrying amount of REO. Subsequent write‑downs in the net realizable value of REO are included in change in fair value of net trust assets, including trust REO (losses) gains in the consolidated statements of operations. 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. 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 exceeds its implied fair value. An impairment loss, if any, is measured as the excess of carrying value over the implied fair value and would be recorded in general, administrative and 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. Business Combinations Business combinations are accounted for under the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceeds the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed which involve contingencies must also be recognized at their estimated fair value, provided such fair value can be determined during the measurement period. Acquisition-related costs, including severance, conversion and other restructuring charges, such as abandoned space accruals, are expensed as incurred. Results of operations of an acquired business are included in the consolidated statements of operations from the date of acquisition. Securitized Mortgage Borrowings The Company records securitized mortgage borrowings in the accompanying consolidated balance sheets for the consolidated CMO and REMIC securitized trusts within the long-term mortgage portfolio. The debt from each issuance of a securitized mortgage borrowing is payable from the principal and interest payments on the underlying mortgages collateralizing such debt, as well as the proceeds from liquidations of REO. If the principal and interest payments are insufficient to repay the debt, the shortfall is allocated first to the residual interest holders (generally owned by the Company) then, if necessary, to the certificate holders (e.g. third party investors in the securitized mortgage borrowings) in accordance with the specific terms of the various respective indentures. Securitized mortgage borrowings typically are structured as one-month LIBOR “floaters” and fixed rate securities with interest payable to certificate holders monthly. The maturity of each class of securitized mortgage borrowing is directly affected by the amount of net interest spread, overcollateralization and the rate of principal prepayments and defaults on the related securitized mortgage collateral. The actual maturity of any class of a securitized mortgage borrowing can occur later than the stated maturities of the underlying mortgages. When the Company issued securitized mortgage borrowings, the Company generally sought an investment grade rating for the Company’s securitized mortgages by nationally recognized rating agencies. To secure such ratings, it was often necessary to incorporate certain structural features that provide for credit enhancement. This generally included the pledge of collateral in excess of the principal amount of the securities to be issued, a bond guaranty insurance policy for some or all of the issued securities, or additional forms of mortgage insurance. The Company’s total loss exposure is limited to the Company’s initial net economic investment in each trust, which is referred to as a residual interest. The Company accounts for securitized mortgage borrowings at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest expense on securitized mortgage borrowings are recorded quarterly using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Derivative Instruments In accordance with FASB ASC 815‑10 Derivatives and Hedging—Overview, the Company records all derivative instruments at fair value. The Company has accounted for all its derivatives as non‑designated hedge instruments or free‑standing derivatives. Interest Rate Swaps, Caps and Floors The Company’s interest rate risk management objective was to limit the exposure to the variability in future cash flows attributable to the variability of one-month LIBOR, which is the underlying index of adjustable rate securitized mortgage borrowings. The Company’s interest rate risk management policies were formulated with the intent to offset the potential adverse effects of changing interest rates on securitized mortgage borrowings. To mitigate exposure to the effect of changing interest rates on cash flows on securitized mortgage borrowings, the Company purchased derivative instruments primarily in the form of interest rate swap agreements (swaps) and, to a lesser extent, interest rate cap agreements (caps) and interest rate floor agreements (floors). There were no outstanding derivatives as of December 31, 2017 and December 31, 2016 The fair value of the Company’s swaps, caps, floors and other derivative instruments is generally based on market prices provided by dealers and market makers, or estimates of future cash flows from these financial instruments. Lending Derivatives The mortgage lending operation enters into IRLCs with consumers to originate mortgage loans at a specified interest rate. These IRLCs are accounted for as derivative instruments. The fair values of IRLCs utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturity and credit quality, subject to the anticipated loan funding probability (Pull‑through Rate). The fair value of IRLCs is subject to change primarily due to changes in interest rates and the estimated Pull‑through Rate. The Company reports IRLCs within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to IRLCs and uncommitted LHFS by using forward sold commitments including Fannie Mae and Ginnie Mae mortgage‑backed securities known as to‑be‑announced mortgage‑backed securities (TBA MBS or Hedging Instruments). The Hedging Instruments are typically entered into at the time the IRLC is made and are accounted for as derivative instruments. The fair value of Hedging Instruments is subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to MSRs by using TBA MBS or Hedging Instruments. The Hedging Instruments are typically entered into at the time the MSR is created and are accounted for as derivative instruments. The fair value of Hedging Instruments is subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within loss on sale of mortgage servicing rights. The fair value of IRLCs and Hedging Instruments are represented as derivative assets, lending and derivative liabilities, lending in Note 13.—Fair Value of Financial Instruments. Long‑term Debt Long‑term debt (consisting of trust preferred securities and junior subordinated notes) is reported at fair value. These securities are measured based upon an analysis prepared by management, which considers the Company’s own credit risk and discounted cash flow analysis. Unrealized gains and losses are recognized in earnings in the accompanying consolidated statements of operations within change in fair value of long‑term debt. The Company does not consolidate trust preferred entities (which are sometimes hereinafter referred to as capital trusts) since the Company does not have a variable interest in the trust. Instead, the Company records its investment in the trust preferred entities (included in other assets in the accompanying consolidated balance sheets) and accounts for such under the equity method of accounting and reflects a liability for the issuance of the notes to the trust preferred entities. As part of the trust preferred exchange on May 5, 2017, the Company wrote off the remaining investment in trust preferred entities. Refer to Note 9.—Debt. Repurchase Reserve The Company sells mortgage loans in the secondary market, including U.S. government sponsored entities and issues mortgage‑backed securities through Ginnie Mae and Fannie Mae. When the Company sells or issues securities, 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. In the event of a breach of its representations and warranties, the Company may be required to either repurchase the mortgage loans with the identified defects or indemnify the investor or insurer for any loss. Also, the Company’s loss may be reduced by proceeds from the sale or liquidation of the repurchased loan. The Company’s loss may be reduced by any recourse it has to correspondent lenders that, in turn, had sold such mortgage loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent lender. The Company records a provision for losses relating to such representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults including any loss on sale or liquidation of the repurchased loan and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at the time loans are sold and continually updates its estimated repurchase liability. The level of the repurchase liability for representations and warranties is difficult to estimate and requires considerable management judgment. The level of mortgage loan repurchase losses is dependent on economic factors, investor demands for loan repurchases and other external conditions that may change over the lives of the underlying loans. Revenue Recognition for Fees from Services The Company follows FASB ASC 605, Revenue Recognition, which provides guidance on the application of GAAP to selected revenue recognition issues relates to our real estate services fees. The Company’s real estate services segment provides various real estate related services and loss mitigation services including (i) managing distressed mortgage portfolios and foreclosed real estate assets, (ii) the disposition of such assets, (iii) surveillance services for residential and multifamily mortgage portfolios, (iv) loan modification services and (v) the master servicing on various residential mortgage and multifamily loan pools for loans in the long‑term portfolio of IMH, and to a lesser extent, non‑affiliated entities. The revenues from these services are recognized in income in the period when services are rendered and collectability is reasonably certain. Advertising Costs Advertising costs are expensed as incurred and are included in business promotion expense. Stock‑Based Compensation The Company accounts for stock‑based compensation in accordance with FASB ASC 718 Compensation—Stock Compensation. Accordingly, the Company measures the cost of stock‑based awards using the grant‑date fair value of the award and recognizes that cost over the requisite service period. The fair value of each stock option granted under the Company’s stock-based compensation plan is estimated on the date of grant using the Black-Scholes-Merton option-pricing model and assumptions noted in Note 18.—Share Based Payments and Employee Benefit Plans. The risk-free interest rate is based on the U.S. Treasury rate with a term equal to the expected term of the option grants on the date of grant. FASB ASC 718 requires forfeitures to be estimated at the time of grant and prospectively revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock‑based compensation expense is recorded net of estimated forfeitures for the years ended December 31, 2017, 2016 and 2015, such that the expense was recorded only for those stock‑based awards that were expected to vest during such periods. Refer to Note 18.—Share Based Payments and Employee Benefit Plans. Income Taxes In accordance with FASB ASC 740, Income Taxes, the Company records income tax expense as well as deferred tax assets and liabilities. Current income tax expense approximates taxes to be paid or refunded for the current period and includes income tax expense related to uncertain tax positions and amortization/impairment of deferred charge, explained below. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return on qualifying subsidiaries. The Company files income tax returns in the U.S. for federal and various states. In prior periods when the Company was taxed as a real estate investment trust (REIT), it recorded a deferred charge to eliminate the expense recognition of income taxes paid on inter-Company profits that result from the sale of mortgage loans from the taxable REIT subsidiaries to IMH. The deferred charge is included in other assets in the consolidated balance sheets and is amortized and, or impaired as a component of income tax expense in the consolidated statements of operations over the estimated life of the mortgages retained in the securitized mortgage collateral. Earnings per Common Share Basic earnings per common share is computed on the basis of the weighted average number of shares outstanding for the year divided into earnings for the year. Diluted earnings per common share is computed on the basis of the weighted average number of shares and dilutive common equivalent shares outstanding for the year divided by earnings for the year, unless anti‑dilutive. Refer to Note 14.—Reconciliation of Earnings Per Share. Recent Accounting Pronouncements Accounting Standards Update (ASU) No. 2014-09, 2015-04, 2016-08, 2016-10, 2016-12, 2016-20, 2017-13 and 2017-14, collectively implemented as Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), “Revenue from Contracts with Customers (Topic 606)”, provides guidance for revenue recognition. This ASC’s core principle requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The standard also clarifies the principal versus agent considerations, providing the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The new standard permits the use of either the modified retrospective or full retrospective transition method. The Company's revenue is primarily generated from loan originations, loan servicing and real estate services. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held, and gain on sale on loans upon disposition of the loan. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with our servicing activities. Real estate services revenue is comprised of income earned from various real estate services and support such as loss mitigation, loan modification, surveillance and disposition and monitoring services. The Company has performed a review of the new guidance as compared to current accounting policies and have evaluated all services rendered to customers as well as underlying contracts to determine the impact of this standard to the Company’s revenue recognition process. The majority of services rendered by the Company in connection with loan originations, loan servicing and the long-term mortgage portfolio are not within the scope of FASB ASC 606. However, the Company identified real estate services revenues that are within the scope of FASB ASC 606 for which the Company does not anticipate the impact to be materially different from the current revenue recognition processes. The Company’s implementation efforts to date include identification of revenue streams within the scope of the guidance, and the review of revenue contracts to assess the impact at a customer level. The Company adopted this guidance on January 1, 2018, and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this change prospectively on January 1, 2017 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); requires separate presentation in other comprehensive income for the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The update is effective for interim and annual reporting periods beginning after December 15, 2017, using a cumulative-effect adjustment to the balance sheet as of the beginning of the year adopted. The Company adopted this guidance on January 1, 2018, and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU) No. 2016-02, “Leases (Topic 842).” Under ASU 2016-02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. When adopted, the Company does not expect ASU 2016-02 to have a material impact on its results of operations, equity or cash flows. The impact of this ASU on the Company’s consolidated financial position will be based on leases outstanding at the time of adoption. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted this change prospectively on January 1, 2017 and did not adjust prior periods. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. The Company has elected to continue estimating forfeitures under the current guidance. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This update requires companies to measure all expected credit losses for financial assets held at the reporting date. The standard also amends the accounting for credit losses on available-for-sale debt securities, purchased financial assets with credit deterioration and trade and other receivables. The standard will take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The update amends the guidance in Accounting Standards Codification 230, Statement of Cash Flows, and clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows with the objective of reducing the existing diversity in practice related to eight specific cash flow issues. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (ASU 2016-18). This ASU clarifies certain existing principles in FASB ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statements of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” This ASU requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance on January 1, 2018, which resulted in a $7.8 million cumulative effect adjustment to opening retained earnings. The adoption of this ASU did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business.” The amendments in this Update is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment." The update removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those periods. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This ASU is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements.

Acquisition of CashCall Mortgage

12 Months Ended

Dec. 31, 2017

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 consisted of a fixed component and a contingent component. The fixed component included (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 consisted 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 pretax net earnings for the next 10 months of 2015, 55% of pre-tax 2016 net earnings and 45% of pretax 2017 net earnings. During the year ended December 31, 2015, consideration paid to CashCall, Inc. included $7.5 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 $38.1 million pursuant to the earn-out provision. During the year ended December 31, 2016, consideration paid to CashCall, Inc. was $2.5 million in cash pursuant to the fixed component of the Asset Purchase Agreement and $54.1 million, pursuant to the earn-out provision. During the year ended December 31, 2017, consideration paid to CashCall, Inc. was $19.3 million, pursuant to the earn-out provision. In February 2018, consideration paid to CashCall, Inc. for the fourth quarter of 2017 earn-out period was $554 thousand.

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).

The table below presents the purchase price allocation of the estimated acquisition date fair values of assets acquired and the liabilities assumed:


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		3,033
Total assets acquired		36,155
Liabilities assumed:
Total liabilities assumed		—
Goodwill	$	104,587

(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 ASC 805. 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 Company retained the services of a third party to assist in the valuation of the intangible assets. 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, 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 Year Ended
	December 31,
	2015
Revenues	$	185,357
Other (expense) income		(12,143)
Expenses		(166,111)
Pretax net earnings (loss)	$	7,103

For the year ended December 31, 2015, revenues from CCM totaled $135.3 million. For the year ended December 31, 2015, expenses from operations were $80.9 million. 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).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 805
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Mortgage Loans Held-for-Sale

12 Months Ended

Dec. 31, 2017

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:


	December 31,		December 31,
	2017		2016
Government (1)	$	263,512	$	146,305
Conventional (2)		193,055		168,581
Other (3)		93,012		62,701
Fair value adjustment (4)		19,202		10,835
Total mortgage loans held for sale	$	568,781	$	388,422

(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 NonQM and Jumbo loans.

(4) Changes in fair value are included in gain on sale of loans, net on the accompanying consolidated statements of operations.

The Company does not have any delinquent or nonaccrual mortgage loans held-for-sale as of December 31, 2017 or 2016.

Gain on sale of loans, net in the consolidated statements of operations is comprised of the following for the years ended December 31, 2017, 2016 and 2015:


	For the Year Ended
	December 31,
	2017		2016		2015
Gain on sale of mortgage loans	$	187,204	$	321,392	$	232,552
Premium from servicing retained loan sales		56,049		128,273		98,103
Unrealized (losses) gains from derivative financial instruments		(6,412)		2,326		6,827
Realized (losses) gains from derivative financial instruments		(4,576)		6,224		(7,045)
Mark to market gain (loss) on LHFS		8,367		(22)		404
Direct origination expenses, net		(102,928)		(146,797)		(160,623)
Provision for repurchases		(1,557)		(379)		(1,012)
Total gain on sale of loans, net	$	136,147	$	311,017	$	169,206

Finance Receivables

12 Months Ended

Dec. 31, 2017

Accounts Receivable Additional Disclosures [Abstract]

Finance Receivables

Note 4.—Finance Receivables

The Company uses a portion of the excess 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. The finance receivables are secured by residential mortgage loans as well as personal guarantees. There are no nonaccrual finance receivables as of December 31, 2017 and 2016.

A summary of outstanding warehouse lines to non-affiliated customers and outstanding balances of December 31, 2017 and 2016 are presented below:


	December 31,
	2017		2016
Uncommitted warehouse lines to non-affiliated customers	$	123,000	$	175,500
Outstanding balance		41,777		62,937

Mortgage Servicing Rights

12 Months Ended

Dec. 31, 2017

Mortgage Servicing Rights

Mortgage Servicing Rights

Note 5.—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 interest portion of 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 years ended December 31, 2017 and 2016:


	December 31,		December 31,
	2017		2016
Balance at beginning of period	$	131,537	$	36,425
Additions from servicing retained loan sales		56,049		128,273
Addition from purchases		5,618		—
Reductions from bulk sales (1)		(895)		(8,773)
Changes in fair value (2)		(37,904)		(24,388)
Fair value of MSRs at end of period	$	154,405	$	131,537

(1)

In the first quarter of 2017, the Company sold all but a small portion of its NonQM MSRs.

(2)

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

At December 31, 2017 and 2016, the outstanding principal balance of the mortgage servicing portfolio was comprised of the following:


	December 31,		December 31,
	2017		2016
Government insured	$	2,834,680	$	1,359,569
Conventional (1)		13,493,463		10,815,998
NonQM		1,957		175,955
Total loans serviced	$	16,330,100	$	12,351,522

(1) At December 31, 2017 and 2016, $13.5 billion and $10.8 billion, respectively, of Fannie Mae and Freddie Mac servicing has been pledged as collateral as part of the MSR Financing (See Note 9.—Debt). Pledged collateral was approximately 81% and 86% of the fair value of Mortgage servicing rights in the consolidated balance sheets at December 31, 2017 and 2016, respectively.

The table below illustrates hypothetical changes in the fair value of MSRs, caused by assumed immediate changes to key assumptions that are used to determine fair value. See Note 13.—Fair Value of Financial Instruments for a description of the key assumptions used to determine the fair value of MSRs.


	December 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2017		2016
Fair value of MSRs	$	154,405	$	131,537
Prepayment Speed:
Decrease in fair value from 10% adverse change		(5,643)		(4,956)
Decrease in fair value from 20% adverse change		(11,275)		(9,593)
Decrease in fair value from 30% adverse change		(16,807)		(13,940)
Discount Rate:
Decrease in fair value from 10% adverse change		(5,461)		(4,927)
Decrease in fair value from 20% adverse change		(10,555)		(9,511)
Decrease in fair value from 30% adverse change		(15,316)		(13,786)

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, net is comprised of the following for the years ended December 31, 2017, 2016 and 2015:


	For the Year Ended
	December 31,
	2017		2016		2015
Change in fair value of mortgage servicing rights	$	(37,904)	$	(24,388)	$	(10,939)
Loss on sale of mortgage servicing rights		(93)		(10,688)		(8,046)
Realized and unrealized gains (losses) from hedging instruments		2,117		(1,365)		387
Loss on mortgage servicing rights, net	$	(35,880)	$	(36,441)	$	(18,598)

Servicing fees, net is comprised of the following for the years ended December 31, 2017, 2016 and 2015:


	For the Year Ended
	December 31,
	2017		2016		2015
Contractual servicing fees	$	38,025	$	17,497	$	8,547
Late and ancillary fees		409		174		129
Subservicing and other costs		(6,532)		(3,937)		(2,574)
Servicing fees, net	$	31,902	$	13,734	$	6,102

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets.

Goodwill and Intangible Assets

Note 6.—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 $17.2 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.

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, 2015	$	104,938
Additions (Impairment)		—
Balance at December 31, 2016	$	104,938
Impairment (1)		(351)
Balance at December 31, 2017	$	104,587

(1) Impairment is related to the wind down of certain services within our real estate services segment and is included in general, administrative and other expense on the consolidated statement of operations for the year ended December 31, 2017.

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


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2017		Remaining Life
Intangible assets:
Trademark	$	17,251	$	(3,216)	$	14,035	12.0
Customer relationships		10,170		(4,143)		6,027	4.0
Non-compete agreement		5,701		(4,181)		1,520	1.0
Total intangible assets acquired	$	33,122	$	(11,540)	$	21,582	9.0


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2016
Intangible assets:
Trademark	$	17,251	$	(2,047)	$	15,204
Customer relationships		10,170		(2,637)		7,533
Non-compete agreement		5,701		(2,660)		3,041
Total intangible assets acquired	$	33,122	$	(7,344)	$	25,778

The Company recognized $4.2 million of amortization expense associated with intangible assets for each of the years ended December 31, 2017 and 2016. The following table presents the estimated aggregate amortization expense for the years ending December 31;


Amortization Expense
2018	$	4,197
2019		2,676
2020		2,676
2021		2,676
2022 and thereafter		9,357
Total future amortization expense	$	21,582

- 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

Loans Eligible for Repurchase from GNMA	12 Months Ended
Loans Eligible for Repurchase from GNMA	Dec. 31, 2017
Loans Eligible for Repurchase from GNMA
Loans Eligible for Repurchase from GNMA	Note 7. —Loans Eligible for Repurchase from Ginnie Mae The Company routinely sells loans in Ginnie Mae guaranteed MBS by pooling eligible loans through a pool custodian and assigning rights to the loans to Ginnie Mae. When these Ginnie Mae loans are initially pooled and securitized, the Company meets the criteria for sale treatment and de-recognizes the loans. The terms of the Ginnie Mae MBS program allow, but do not require, the Company to repurchase mortgage loans when the borrower has made no payments for three consecutive months. When the Company has the unconditional right, as servicer, to repurchase Ginnie Mae pool loans it has previously sold and are more than 90 days past due, the Company then re-recognizes the loans on its balance sheet, at their unpaid principal balances and records a corresponding liability in other liabilities in the consolidated balance sheets. The balance of the Ginnie Mae serviced loans that were 90 or more days past due at December 31, 2017 and 2016 totaled $47.7 million and $9.9 million, respectively. As part of the Company’s repurchase reserve, the Company records a repurchase provision to provide for estimated losses from the sale or securitization of all mortgage loans, including these loans.

Other Assets

12 Months Ended

Dec. 31, 2017

Other Assets.

Other Assets

Note 8.—Other Assets

Other Assets

Other assets consisted of the following:


	December 31,		December 31,
	2017		2016
Deferred charge (See Note 13)	$	7,827	$	8,685
Accounts receivable, net		5,401		6,953
Derivative assets – lending (See Note 11)		4,777		11,169
Deferred tax asset, net (See Note 15)		4,315		24,420
Prepaid expenses		3,001		3,179
Servicing advances		2,853		3,075
Accrued interest receivable		1,397		333
Developed software, net		1,145		1,717
Premises and equipment, net		862		976
Other		1,644		341
Total other assets	$	33,222	$	60,848

Accounts Receivable, net

Accounts receivable are primarily holdbacks from MSR sales which are generally collected within six months of the sale date, cash due to the Company related to hedging instruments and fees earned for real estate services rendered, generally collected one month in arrears. Accounts receivable are stated at their carrying value, net of $95 thousand and $86 thousand reserve for doubtful accounts as of December 31, 2017 and 2016, respectively.

Servicing Advances

The Company is required to advance certain amounts to meet its contractual loan servicing requirements. The Company advances principal, interest, property taxes and insurance for borrowers that have insufficient escrow accounts, plus any other costs to preserve the property. Also, the Company will advance funds to maintain, repair and market foreclosed real estate properties. The Company is entitled to recover advances from the borrowers for reinstated and performing loans or from proceeds of liquidated properties. Servicer advances totaled $2.9 million and $3.1 million at December 31, 2017 and 2016, respectively, and are all considered fully collectible.

Developed Software, net

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




	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2017		Remaining Life
Other assets:
Developed software	$	2,719	$	(1,574)	$	1,145	2.0


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2016
Other assets:
Developed software	$	2,719	$	(1,002)	$	1,717

Premises and Equipment, net

Premises and equipment are stated at cost, less accumulated depreciation. Depreciation on premises and equipment is recorded using the straight‑line method over the estimated useful lives of individual assets, typically three to twenty years. Premises and equipment and accumulated depreciation were as follows as of the dates indicated:


	December 31,
	2017		2016
Premises and equipment	$	16,928	$	16,467
Less: Accumulated depreciation		(16,066)		(15,491)
Total premises and equipment, net	$	862	$	976

Debt

12 Months Ended

Dec. 31, 2017

Debt

Debt

Note 9.—Debt

The following table shows contractual reductions of debt as of December 31, 2017:


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	575,363	$	575,363	$	—	$	—	$	—
MSR financings		35,133		10,000		25,133		—		—
2015 Convertible notes		24,974		—		24,974		—		—
Long-term debt		62,000		—		—		—		62,000
Total Debt Obligations	$	697,470	$	585,363	$	50,107	$	—	$	62,000

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 December 2017, the Company was not in compliance with certain financial covenants and received the necessary waivers.

The following table presents certain information on warehouse borrowings for the periods indicated:


	Maximum		Balance Outstanding At				Allowable
	Borrowing		December 31,		December 31,		Advance	Rate
	Capacity		2017		2016		Rates (%)	Range	Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	100,630	$	106,609	90 - 98	1ML + 2.75 - 4.13%	June 15, 2018
Repurchase agreement 2		35,000		31,632		44,761	90 - 98	Prime + 0.0 - 0.50%	May 28, 2018
Repurchase agreement 3 (1)		225,000		154,020		125,320	85 - 97	Base Rate + 2.50%	December 21, 2018
Repurchase agreement 4 (2)		250,000		152,772		52,067	99	1ML + 2.55%	March 29, 2018
Repurchase agreement 5 (3)		100,000		88,920		56,655	100	Note Rate - 0.50%	March 31, 2018
Repurchase agreement 6		200,000		47,389		35,161	95 - 98	1ML + 2.15 - 2.40%	June 28, 2018
Total warehouse borrowings	$	960,000	$	575,363	$	420,573

(1)

As of December 31, 2017 and 2016, the balance outstanding includes $41.8 million and $62.9 million, respectively, attributable to finance receivables made to the Company’s warehouse customers.

(2)

In February 2018, the maturity of the line was extended to March 29, 2018.

(3)

In February 2018, the Company increased the maximum borrowing capacity to $175.0 million from $100.0 million.

The following table presents certain information on warehouse borrowings for the periods indicated:


	For the year ended
	December 31,
	2017			2016
Maximum outstanding balance during the year	$	627,175		$	880,111
Average balance outstanding for the year		414,149			449,598
Underlying collateral (mortgage loans)		591,403			436,887
Weighted average rate for period		4.06	%		3.40	%

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. 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 were 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.

MSR Financings

On August 17, 2017, IMC (Borrower), entered into a Line of Credit Promissory Note with a lender providing for a revolving line of credit of $30.0 million (Freddie Mac Financing). The Borrower is able to borrow up to 55% of the fair market value of Freddie Mac pledged mortgage servicing rights. The Line of Credit has a term until May 31, 2018 and will automatically renew for subsequent one year periods unless the lender provides the Borrowers 150 days’ notice of its intention not to renew. Interest payments are payable monthly and accrue interest at the rate per annum equal to one-month LIBOR plus 4.0% and the balance of the obligation may be prepaid at any time. The obligations under the Line of Credit are secured by Freddie Mac pledged mortgage servicing rights and is guaranteed by Integrated Real Estate Services, Corp. At December 31, 2017, $10.0 million was outstanding under the Freddie Mac Financing and was secured by $58.3 million of mortgage servicing rights. In February 2018, the maximum borrowing capacity of the revolving line of credit was increased to $50.0 million and the term was extended to January 31, 2019.

On February 10, 2017, IMC (Borrower), entered into a Loan and Security Agreement (Agreement) with a lender providing for a revolving loan commitment of $40.0 million for a period of two years (Fannie Mae Financing). The Borrower is able to borrow up to 55% of the fair market value of Fannie Mae pledged servicing rights. Upon the two year anniversary of the Agreement, any amounts outstanding will automatically be converted into a term loan due and payable in full on the one year anniversary of the conversion date. Interest payments are payable monthly and accrue interest at the rate per annum equal to one-month LIBOR plus 4.0% and the balance of the obligation may be prepaid at any time. The Borrower initially drew down $35.1 million, and used a portion of the proceeds to pay off the Term Financing (approximately $30.1 million) originally entered into in June 2015 as discussed below. The Borrower also paid the lender an origination fee of $100 thousand, which is deferred and amortized over the life of the Fannie Mae Financing. At December 31, 2017, $25.1 million was outstanding under the Fannie Mae Financing and was secured by $67.3 million of mortgage servicing rights.

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 Creditor 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 could have been extended to December 18, 2017 at the Creditor’s discretion. In June 2016, the maturity of the Term Financing was extended to June 16, 2017 and the Company paid an additional $100 thousand extension fee, which was deferred and amortized over the life of the Term Financing. Interest on the Term Financing was payable monthly and accrued at a rate of one-month LIBOR plus 8.5% per annum. In February 2017, the proceeds from the Fannie Mae Financing were used to pay off the Term Financing.

Convertible Notes

In January 2016, pursuant to the terms of the $20.0 million Convertible Promissory Notes issued in April 2013 (the Notes), the Company elected to exercise its option to convert the Notes to common stock. The conversion resulted in the Company issuing an aggregate of 1,839,080 shares of common stock in February 2016, at a conversion price of $10.875 per share. As a result of the transaction, the Company converted $20.0 million of debt into equity and paid interest through April 2016. No gain or loss was recorded as a result of the transaction.

In May 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 accrues interest at a rate of 7.5% per annum, to be paid quarterly. The Company had approximately $50 thousand in transaction costs which were deferred and amortized over the life of the life of the 2015 Convertible Notes.

Noteholders may convert all or a portion of the outstanding principal amount of the 2015 Convertible Notes into shares of the Company’s common stock (Conversion Shares) at a rate of $21.50 per share, subject to adjustment for stock splits and dividends (the Conversion Price). The Company has the right to convert the entire outstanding principal of the 2015 Convertible Notes into Conversion Shares at the Conversion Price if the market price per share of the common stock, as measured by the average volume-weighted closing stock price per share of the common stock on the NYSE AMERICAN (or any other U.S. national securities exchange then serving as the principal such exchange on which the shares of Common Stock are listed), reaches the level of $30.10, for any twenty (20) trading days in any period of thirty (30) consecutive trading days after the Closing Date.

Upon conversion of the 2015 Convertible Notes by the Company, the entire amount of accrued and unpaid interest (and all other amounts owing) under the 2015 Convertible Notes are immediately due and payable. Furthermore, if the conversion of the 2015 Convertible Notes by the Company occurs prior to the third anniversary of the Closing Date, then the entire amount of interest under the 2015 Convertible Notes through the third anniversary is immediately due and payable. To the extent the Company pays any cash dividends on its shares of common stock prior to conversion of the 2015 Convertible Notes, upon conversion of the 2015 Convertible Notes, the Noteholders will also receive such dividends on an as-converted basis of the 2015 Convertible Notes less the amount of interest paid by the Company prior to such dividend.

Unless an event of default has occurred and is continuing, each purchaser of the 2015 Convertible Notes agrees, for the three years after the Closing Date, to vote all Conversion Shares for each of the Company’s nominees for election to the Company’s board of directors and not to nominate any other candidate for election to the board of directors at any time within such three year period.

Long‑term Debt

As of December 31, 2017 and 2016, the Company had long term debt as follows:

Trust Preferred Securities

During 2005, the Company formed four wholly‑owned trust subsidiaries (Trusts) for the purpose of issuing an aggregate of $99.2 million of trust preferred securities (the Trust Preferred Securities). All proceeds from the sale of the Trust Preferred Securities and the common securities issued by the Trusts were originally invested in $96.3 million of junior subordinated debentures (subordinated debentures), which became the sole assets of the Trusts. The Trusts pay dividends on the Trust Preferred Securities at the same rate as paid by the Company on the debentures held by the Trusts.

During 2008 and 2009, the Company purchased and cancelled $36.5 million in outstanding Trust Preferred Securities for $5.5 million. Additionally, during 2009, the Company exchanged an aggregate of $51.3 million in outstanding Trust Preferred Securities for $62.0 million in Junior Subordinated Notes (Notes). As a result of these transactions, $8.5 million in Trust Preferred Securities remained outstanding.

On May 5, 2017, the Company agreed to exchange 412,264 shares of its common stock for the remaining Trust Preferred Securities which had an aggregate liquidation amount of $8.5 million issued by Impac Capital Trust #4. Accrued and unpaid interest on the Trust Preferred Securities was paid in cash in the aggregate amount of approximately $14 thousand. The interest rate on the Trust Preferred Securities was a variable rate of three-month LIBOR plus 3.75% per annum. At the time of the exchange, the interest rate was 4.92%. As part of the trust preferred exchange the Company wrote off the remaining $166 thousand investment in trust preferred entities.

The exchange was based on the carrying value of the trust preferred obligation, which was $5.6 million at March 31, 2017, and an agreed upon stock price that determined a fixed number of shares to be issued in the exchange. However, because the measurement date of the exchange was the date the common stock was issued when the market price of the common stock was $17.06, the Company recorded a $1.3 million loss on extinguishment of debt for the difference in stock price from the agreed upon stock price to the stock price on the issuance date of the common stock.

The Company carries its Trust Preferred Securities at estimated fair value as more fully described in Note 13.—Fair Value of Financial Instruments. The following table shows the principal balance and fair value of Trust Preferred Securities issued as of December 31, 2017 and 2016:


	December 31,
	2017		2016
Trust Preferred Securities	$	—	$	8,500
Common securities		—		263
Fair value adjustment		—		(3,197)
Total Trust Preferred Securities	$	—	$	5,566

Junior Subordinated Notes

The Company carries its Junior Subordinated Notes at estimated fair value as more fully described in Note 13.—Fair Value of Financial Instruments. The following table shows the remaining principal balance and fair value of junior subordinated notes issued as of December 31, 2017 and 2016:


	December 31,
	2017		2016
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,018)		(20,359)
Total Junior Subordinated Notes	$	44,982	$	41,641

(1)

Stated maturity of March 2034; requires quarterly distributions initially at a fixed rate of 2.00% per annum through March 2014 with increases of 1.00% per year in 2014 through 2017. Starting in 2018, the interest rates become variable at 3‑month LIBOR plus 3.75% per annum. At December 31, 2017, the interest rate was 6.0%.

Line of Credit Agreement

The Company had a $4.0 million working capital line of credit agreement, which was repaid in June 2015, 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.

Securitized Mortgage Trusts

12 Months Ended

Dec. 31, 2017

Securitized Mortgage Trusts

Securitized Mortgage Trusts

Note 10.—Securitized Mortgage Trusts

Securitized Mortgage Trust Assets

Securitized mortgage trust assets, which are recorded at fair market value (FMV), are comprised of the following at December 31, 2017 and 2016:


	December 31,		December 31,
	2017		2016
Securitized mortgage collateral	$	3,662,008	$	4,021,891
REO		8,542		11,399
Total securitized mortgage trust assets	$	3,670,550	$	4,033,290

Securitized Mortgage Collateral

Securitized mortgage collateral consisted of the following:


	December 31,
	2017		2016
Mortgages secured by residential real estate	$	3,840,819	$	4,500,719
Mortgages secured by commercial real estate		347,323		426,494
Fair value adjustment		(526,134)		(905,322)
Total securitized mortgage collateral	$	3,662,008	$	4,021,891

As of December 31, 2017, the Company was also a master servicer of mortgages for others of approximately $578.0 million in UPB that were primarily collateralizing REMIC securitizations, compared to $682.0 Million at December 31, 2016. Related fiduciary funds are held in trust for investors in non‑interest bearing accounts and therefore not included in the Company’s consolidated balance sheets. The Company may also be required to advance funds or cause loan servicers to advance funds to cover principal and interest payments not received from borrowers depending on the status of their mortgages.

Real Estate Owned (REO)

The Company’s REO consisted of the following:


	December 31,
	2017		2016
REO	$	15,519	$	25,802
Impairment (1)		(6,977)		(14,403)
Total	$	8,542	$	11,399

(1)

Impairment represents the cumulative write‑downs of net realizable value subsequent to foreclosure.

Securitized Mortgage Trust Liabilities

Securitized mortgage trust liabilities, which are recorded at FMV, are comprised of the following at December 31, 2017 and 2016:


	December 31,		December 31,
	2017		2016
Securitized mortgage borrowings	$	3,653,265	$	4,017,603

Securitized Mortgage Borrowings

Selected information on securitized mortgage borrowings for the periods indicated consisted of the following (dollars in millions):


			Securitized
			mortgage
			borrowings
			outstanding as of
			December 31,				Range of Interest Rates
								Interest	Interest
								Rate	Rate
	Original						Fixed	Margins over	Margins after
	Issuance						Interest	One-Month	Contractual
Year of Issuance	Amount		2017		2016		Rates	LIBOR (1)	Call Date (2)
2002	$	3,876.1	$	6.2	$	8.8	5.25 - 12.00	0.27 - 2.75	0.54 - 3.68
2003		5,966.1		48.2		62.8	4.34 - 12.75	0.27 - 3.00	0.54 - 4.50
2004		17,710.7		526.7		640.0	3.58 - 5.56	0.25 - 2.50	0.50 - 3.75
2005		13,387.7		1,938.1		2,163.1	—	0.24 - 2.90	0.48 - 4.35
2006		5,971.4		2,412.8		2,617.8	6.25	0.1 - 2.75	0.20 - 4.13
2007		3,860.5		1,407.7		1,589.6	—	0.06 - 2.00	0.12 - 3.00
Subtotal contractual principal balance (3)				6,339.7		7,082.1
Fair value adjustment				(2,686.4)		(3,064.5)
Total securitized mortgage borrowings			$	3,653.3	$	4,017.6

(1)

One-month LIBOR was 1.56% as of December 31, 2017.

(2)

Interest rate margins are generally adjusted when the unpaid principal balance is reduced to less than 10‑20% of the original issuance amount, or if certain other triggers are met.

(3)

Represents the outstanding balance in accordance with trustee reporting.

As of December 31, 2017, expected principal reductions of the securitized mortgage borrowings, which is based on contractual principal payments and expected prepayment and loss assumptions for securitized mortgage collateral, was as follows (dollars in millions):


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Securitized mortgage borrowings (1)	$	6,339.7	$	581.6	$	886.7	$	632.4	$	4,239.0

(1)

Represents the outstanding balance in accordance with trustee reporting.

Change in fair value of net trust assets, including trust real estate owned (REO) (losses) gains

Changes in fair value of net trust assets, including trust REO (losses) gains are comprised of the following for the years ended December 31, 2017, 2016 and 2015:


	For the Year Ended
	December 31,
	2017		2016		2015
Change in fair value of net trust assets, excluding REO	$	(1,212)	$	5,630	$	957
Gains (losses) from REO		7,425		(5,934)		(6,595)
Change in fair value of net trust assets, including trust REO gains (losses)	$	6,213	$	(304)	$	(5,638)

Derivative Instruments

12 Months Ended

Dec. 31, 2017

Derivative Instruments

Derivative Instruments

Note 11.—Derivative Instruments

Derivative Assets and Liabilities, Lending

The mortgage lending operation enters into IRLCs with prospective borrowers to originate mortgage loans at a specified interest rate and Hedging Instruments to hedge the fair value changes associated with changes in interest rates relating to its mortgage loan origination operations as well as mortgage servicing rights. The fair value of IRLCs and Hedging Instruments related to mortgage loan origination are included in other assets in the consolidated balance sheets. As of December 31, 2017, the estimated fair value of IRLCs and Hedging Instruments associated with mortgage lending totaled $4.4 million and $336 thousand, respectively. Additionally, the fair value of Hedging Instruments related to mortgage servicing rights are included in other assets at December 31, 2017 and had an estimated fair value of $85 thousand.

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


					Total Gains (Losses) (1)
	Notional Amount				For the Year Ended
	December 31,		December 31,		December 31,
	2017		2016		2017		2016		2015
Derivative – IRLC's	$	398,225	$	558,538	$	(6,812)	$	1,985	$	6,300
Derivative – TBA MBS		687,500		492,157		(2,061)		5,201		(6,132)

(1)

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

Other Derivatives

Upon entering an arrangement to facilitate the Company’s ability to offer NonQM mortgage products, a warrant to purchase up to 9.9% of Impac Mortgage Corp. was issued in 2014. The warrant expired in August of 2015 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.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: 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=64837297&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 4: 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=64837297&loc=SL5624163-113959

Reference 5: 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=64837297&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: 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=64837297&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959

Reference 17: 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 18: 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=64837297&loc=d3e41638-113959

Reference 19: 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))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Note 13.—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.

FASB ASC 825 requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate such fair values. The following table presents the estimated fair value of financial instruments included in the consolidated financial statements as of the dates indicated:


	December 31, 2017								December 31, 2016
	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	$	33,223	$	33,223	$	—	$	—	$	40,096	$	40,096	$	—	$	—
Restricted cash		5,876		5,876		—		—		5,971		5,971		—		—
Mortgage loans held-for-sale		568,781		—		568,781		—		388,422		—		388,422		—
Finance receivables		41,777		—		41,777		—		62,937		—		62,937		—
Mortgage servicing rights		154,405		—		—		154,405		131,537		—		—		131,537
Derivative assets, lending, net		4,777		—		420		4,357		11,169		—		—		11,169
Securitized mortgage collateral		3,662,008		—		—		3,662,008		4,021,891		—		—		4,021,891

Liabilities
Warehouse borrowings	$	575,363	$	—	$	575,363	$	—	$	420,573	$	—	$	420,573	$	—
MSR financings		35,133		—		—		35,133		—		—		—		—
Term financing		—		—		—		—		29,910		—		—		29,910
Convertible notes		24,974		—		—		24,974		24,965		—		—		24,965
Contingent consideration		554		—		—		554		31,072		—		—		31,072
Long-term debt		44,982		—		—		44,982		47,207		—		—		47,207
Securitized mortgage borrowings		3,653,265		—		—		3,653,265		4,017,603		—		—		4,017,603
Derivative liabilities, lending, net		—		—		—		—		336		—		336		—

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, securitized mortgage collateral and borrowings, derivative assets and liabilities, long‑term debt, mortgage servicing rights, loans held‑for‑sale.

The carrying amount of cash and 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.

MSR financings carrying amount approximates fair value as the underlying facility bears interest at a rate that is periodically adjusted based on a market index.

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 are 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, mortgage servicing rights, call and put options, securitized mortgage collateral and borrowings, derivative assets and liabilities (trust and IRLCs), and long‑term debt as Level 3 fair value measurements. Level 3 assets and liabilities measured at fair value on a recurring basis were approximately 87% and 99% and 92% and 99%, respectively, of total assets and total liabilities measured at estimated fair value at December 31, 2017 and 2016.

Recurring Fair Value Measurements

The Company assesses its financial instruments on a quarterly basis to determine the appropriate classification within the fair value hierarchy, as defined by FASB 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 Level 1 and Level 2 classified instruments during the year ended December 31, 2017.

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 December 31, 2017 and 2016, based on the fair value hierarchy:


	Recurring Fair Value Measurements
	December 31, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	568,781	$	—	$	—	$	388,422	$	—
Derivative assets, lending, net (1)		—		420		4,357		—		—		11,169
Mortgage servicing rights		—		—		154,405		—		—		131,537
Securitized mortgage collateral		—		—		3,662,008		—		—		4,021,891
Total assets at fair value	$	—	$	569,201	$	3,820,770	$	—	$	388,422	$	4,164,597
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	3,653,265	$	—	$	—	$	4,017,603
Long-term debt		—		—		44,982		—		—		47,207
Contingent consideration		—		—		554		—		—		31,072
Derivative liabilities, lending, net (2)		—		—		—		—		336		—
Total liabilities at fair value	$	—	$	—	$	3,698,801	$	—	$	336	$	4,095,882

(1)

At December 31, 2017, derivative assets, lending, net included $4.4 million in IRLCs and $420 thousand in Hedging instruments, respectively, and is included in other assets in the accompanying consolidated balance sheets. At December 31, 2016, derivative assets, lending, net included $11.2 million in IRLCs and is included in other assets in the accompanying consolidated balance sheets.

(2)

At December 31, 2017, derivative liabilities, lending, net are included in other liabilities in the accompanying consolidated balance sheets.

The following tables present reconciliation for all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017, 2016 and 2015:


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2017

	Investment								Interest
	securities		Securitized		Securitized		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		rights		net		debt		consideration
Fair value, December 31, 2016	$	—	$	4,021,891	$	(4,017,603)	$	131,537	$	11,169	$	(47,207)	$	(31,072)
Total gains (losses) included in earnings:
Interest income (1)		—		46,077		—		—		—		—		—
Interest expense (1)		—		—		(131,507)		—		—		(760)		—
Change in fair value		—		245,364		(246,576)		(37,904)		(6,812)		(2,949)		11,268
Total gains (losses) included in earnings		—		291,441		(378,083)		(37,904)		(6,812)		(3,709)		11,268
Transfers in and/or out of Level 3		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		5,618		—		—		—
Issuances		—		—		—		56,049		—		—		—
Settlements		—		(651,324)		742,421		(895)		—		5,934		19,250
Fair value, December 31, 2017	$	—	$	3,662,008	$	(3,653,265)	$	154,405	$	4,357	$	(44,982)	$	(554)
Unrealized gains (losses) still held (2)	$	—	$	(526,134)	$	2,686,398	$	154,405	$	4,357	$	17,018	$	(554)

(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. Net interest income, including cash received and paid, was $8.1 million for the year ended December 31, 2017. 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 December 31, 2017.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2016
							Derivative
	Investment						liabilities,				Interest
	securities		Securitized		Securitized		net,		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		securitized		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		trusts		rights		net		debt		consideration
Fair value, December 31, 2015	$	26	$	4,574,919	$	(4,578,657)	$	(1,669)	$	36,425	$	9,184	$	(31,898)	$	(48,079)
Total gains (losses) included in earnings:
Interest income (1)		2		57,176		—		—		—		—		—		—
Interest expense (1)		—		—		(182,903)		—		—		—		(873)		—
Change in fair value		19		49,347		(43,503)		(233)		(24,388)		1,985		(14,436)		(37,142)
Total gains (losses) included in earnings		21		106,523		(226,406)		(233)		(24,388)		1,985		(15,309)		(37,142)
Transfers in and/or out of Level 3		—		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—		—		—		—
Issuances		—		—		—		—		128,273		—		—		—
Settlements		(47)		(659,551)		787,460		1,902		(8,773)		—		—		54,149
Fair value, December 31, 2016	$	—	$	4,021,891	$	(4,017,603)	$	—	$	131,537	$	11,169	$	(47,207)	$	(31,072)
Unrealized gains (losses) still held (2)	$	—	$	(905,322)	$	3,064,481	$	—	$	131,537	$	11,169	$	23,556	$	(31,072)

(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. Net interest income, including cash received and paid, was $9.9 million for the year ended December 31, 2016. 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 December 31, 2016.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2015
							Derivative
	Investment						liabilities,				Interest
	securities		Securitized		Securitized		net,		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		securitized		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		trusts		rights		net		debt		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)		10		64,256		—		—		—		—		—		—		—
Interest expense (1)		—		—		(211,272)		—		—		—		(1,115)		—		—
Change in fair value		15		(49,052)		50,481		(487)		(10,939)		6,300		(8,661)		37,778		(84)
Total gains (losses) included in earnings		25		15,204		(160,791)		(487)		(10,939)		6,300		(9,776)		37,778		(84)
Transfers in and/or out of Level 3		—		—		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—		—		—		—		—
Issuances		—		—		—		—		98,103		—		—		(124,592)		—
Settlements		(91)		(689,924)		827,994		4,265		(75,157)		—		—		38,735		—
Fair value, December 31, 2015	$	26	$	4,574,919	$	(4,578,657)	$	(1,669)	$	36,425	$	9,184	$	(31,898)	$	(48,079)	$	—
Unrealized gains (losses) still held (2)	$	26	$	(1,147,971)	$	3,291,072	$	(1,485)	$	36,425	$	9,184	$	38,865	$	(48,079)	$	—

(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. Net interest income, including cash received and paid, was $8.3 million for the year ended December 31, 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 December 31, 2015.

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 December 31, 2017.


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	3,662,008	DCF	Prepayment rates	2.2 - 25.1	%	8.0	%
Securitized mortgage borrowings		(3,653,265)		Default rates	0.01 - 4.2	%	1.3	%
				Loss severities	9.9 - 84.7	%	47.0	%
				Discount rates	3.6 - 25.0	%	4.4	%
Other assets and liabilities
Mortgage servicing rights	$	154,405	DCF	Discount rate	9.0 - 14.0	%	9.6	%
				Prepayment rates	8.0 - 88.8	%	12.2	%
Derivative assets - IRLCs, net		4,357	Market pricing	Pull-through rate	15.1 - 99.9	%	83.4	%
Long-term debt		(44,982)	DCF	Discount rate	9.5	%	9.5	%
Contingent consideration		(554)	DCF	Discount rate	—	%	—	%
				Margins	—	%	—	%
				Probability of outcomes (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). The estimated undiscounted remaining earn out payment to the seller as of December 31, 2017 was $554 thousand and was paid in February 2018.

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. A significant increase or decrease in pull‑through rate assumptions would result in a significant increase or decrease in the fair value of IRLCs. 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 for the years ended December 31, 2017, 2016 and 2015:


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Earnings
	For the Year Ended December 31, 2017
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of loans, net		Total
Investment securities available-for-sale	$	—	$	—	$	—		$	—	$	—	$	—	$	—
Securitized mortgage collateral		46,077		—		245,364			—		—		—		291,441
Securitized mortgage borrowings		—		(131,507)		(246,576)			—		—		—		(378,083)
Derivative liabilities, net, securitized trusts		—		—		—			—		—		—		—
Long-term debt		—		(760)		—			(2,949)		—		—		(3,709)
Mortgage servicing rights (2)		—		—		—			—		(37,904)		—		(37,904)
Contingent consideration (3)		—		—		—			—		11,268		—		11,268
Mortgage loans held-for-sale		—		—		—			—		—		8,367		8,367
Derivative assets — IRLCs		—		—		—			—		—		(6,812)		(6,812)
Derivative liabilities — Hedging Instruments		—		—		—			—		357		400		757
Total	$	46,077	$	(132,267)	$	(1,212)	(4)	$	(2,949)	$	(26,279)	$	1,955	$	(114,675)

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

(3)

Includes $2.1 million of accretion of the contingent consideration liability.

(4)

For the year ended December 31, 2017, change in the fair value of trust assets, excluding REO was $1.2 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Earnings
	For the Year Ended December 31, 2016
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of loans, net		Total
Investment securities available-for-sale	$	2	$	—	$	19		$	—	$	—	$	—	$	21
Securitized mortgage collateral		57,176		—		49,347			—		—		—		106,523
Securitized mortgage borrowings		—		(182,903)		(43,503)			—		—		—		(226,406)
Derivative liabilities, net, securitized trusts		—		—		(233)	(2)		—		—		—		(233)
Long-term debt		—		(873)		—			(14,436)		—		—		(15,309)
Mortgage servicing rights (3)		—		—		—			—		(24,388)		—		(24,388)
Contingent consideration		—		—		—			—		(37,142)		—		(37,142)
Mortgage loans held-for-sale		—		—		—			—		—		(22)		(22)
Derivative assets — IRLCs		—		—		—			—		—		1,985		1,985
Derivative liabilities — Hedging Instruments		—		—		—			—		(362)		341		(21)
Total	$	57,178	$	(183,776)	$	5,630	(4)	$	(14,436)	$	(61,892)	$	2,304	$	(194,992)

(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 $1.5 million in changes in the fair value of derivative instruments, offset by $1.7 million in cash payments from the securitization trusts for the year ended December 31, 2016.

(3)

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

(4)

For the year ended December 31, 2016, change in the fair value of trust assets, excluding REO was $5.6 million. Excluded from the $7.3 million change in fair value of net trust assets, excluding REO, in the accompanying consolidated statement of cash flows is $1.7 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 Earnings
	For the Year Ended December 31, 2015
					Change in Fair Value of
	Interest		Interest		Net Trust			long-term		Other		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		Revenue		of loans, net		Total
Investment securities available-for-sale	$	10	$	—	$	15		$	—	$	—	$	—	$	25
Securitized mortgage collateral		64,256		—		(49,052)			—		—		—		15,204
Securitized mortgage borrowings		—		(211,272)		50,481			—		—		—		(160,791)
Derivative liabilities, net, securitized trusts		—		—		(487)	(2)		—		—		—		(487)
Long-term debt		—		(1,115)		—			(8,661)		—		—		(9,776)
Mortgage servicing rights (3)		—		—		—			—		(10,939)		—		(10,939)
Warrant		—		—		—			—		(84)		—		(84)
Contingent consideration		—		—		—			—		37,778		—		37,778
Mortgage loans held-for-sale		—		—		—			—		—		404		404
Derivative assets — IRLCs		—		—		—			—		—		6,300		6,300
Derivative liabilities — Hedging Instruments		—		—		—			—		89		527		616
Total	$	64,266	$	(212,387)	$	957	(4)	$	(8,661)	$	26,844	$	7,231	$	(121,750)

(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 $3.6 million in changes in the fair value of derivative instruments, offset by $4.1 million in cash payments from the securitization trusts for the year ended December 31, 2015.

(3)

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

(4)

For the year ended December 31, 2015, change in the fair value of trust assets, excluding REO was $1.0 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 $4.1 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 December 31, 2017 and 2016 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 are classified as a Level 3 measurement at December 31, 2016.

Mortgage servicing rights—The Company elected to carry its mortgage servicing rights arising from its mortgage loan origination operation at fair value. The fair value of mortgage servicing rights is based upon 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 December 31, 2017.

Mortgage loans held‑for‑sale—The Company elected to carry its mortgage loans held‑for‑sale originated or acquired from its mortgage lending operation at 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 December 31, 2017.

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 December 31, 2017, securitized mortgage collateral had an unpaid principal balance of $4.2 billion, compared to an estimated fair value on the Company’s balance sheet of $3.7 billion. The aggregate unpaid principal balance exceeds the fair value by $0.5 billion at December 31, 2017. As of December 31, 2017, the unpaid principal balance of loans 90 days or more past due was $0.5 billion compared to an estimated fair value of $0.2 billion. The aggregate unpaid principal balances of loans 90 days or more past due exceed the fair value by $0.3 billion at December 31, 2017. Securitized mortgage collateral is considered a Level 3 measurement at December 31, 2017.

Securitized mortgage borrowings—The Company elected to carry all of 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 December 31, 2017, securitized mortgage borrowings had an outstanding principal balance of $4.2 billion, net of $2.2 billion in bond losses, compared to an estimated fair value of $3.7 billion. The aggregate outstanding principal balance exceeds the fair value by $0.5 billion at December 31, 2017. Securitized mortgage borrowings are considered a Level 3 measurement at December 31, 2017.

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 year ended December 31, 2017, the change in fair value of contingent consideration was related to a decrease in projected volumes and earnings of CCM. 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 December 31, 2017.

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 December 31, 2017, long‑term debt had an unpaid principal balance of $62.0 million compared to an estimated fair value of $45.0 million. The aggregate unpaid principal balance exceeds the fair value by $17.0 million at December 31, 2017. The long‑term debt is considered a Level 3 measurement at December 31, 2017.

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 December 31, 2017, there were no derivative assets or liabilities in the securitized trusts. As of December 31, 2015, the notional balance of derivative assets and liabilities, securitized trusts was $67.7 million. These derivatives were included in the consolidated securitization trusts, which are nonrecourse to the Company, 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 were considered a Level 3 measurement at December 31, 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. The derivatives include IRLCs 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. The derivatives also include hedging instruments (typically TBA MBS) used to hedge the fair value changes associated with changes in interest rates relating to its mortgage lending originations as well as mortgage servicing rights. The Company hedges the period from the interest rate lock (assuming a fall‑out factor) to the date of the loan 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 December 31, 2017.

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 December 31, 2017.

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 table presents financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements at December 31, 2017 and 2016, respectively:


	Nonrecurring Fair Value Measurements
	December 31, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
REO (1)	$	—	$	440	$	—	$	—	$	212	$	—
Deferred charge		—		—		7,827		—		—		8,685

(1)

Balance represents REO at December 31, 2017 and December 31, 2016 which has been impaired subsequent to foreclosure.

The following table presents total gains and (losses) on financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements for the years ended December 31, 2017, 2016 and 2015, respectively:


	Total Gains (Losses) (1)
	For the Year Ended December 31,
	2017		2016		2015
REO (2)	$	7,425	$	(5,934)	$	(6,595)
Lease liability (3)		—		—		(53)
Deferred charge (4)		(858)		(1,278)		(1,558)

(1)

Total losses reflect losses from all nonrecurring measurements during the period.

(2)

For the years ended December 31, 2017, 2016 and 2015, the Company recorded $7.4 million, $5.9 million and $6.6 million, respectively, in gains (losses) related to changes in the net realizable value (NRV) of properties. Gains represent 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. Losses represent impairment of the NRV attributable to an increase in state specific loss severities on properties held during the period which resulted in a decrease to NRV.

(3)

In January 2016, an amendment to the Company’s lease became effective and eliminated the shortfall the Company had been recording as lease impairment. For the year ended December 31, 2015 the Company recorded $53 thousand in losses resulting from changes in lease liabilities as a result of changes in the Company’s expected minimum future lease payments, net.

(4)

For the years ended December 31, 2017, 2016 and 2015, the Company recorded $858 thousand, $1.3 million and $1.6 million, respectively, in income tax expense resulting from impairment write-downs based on changes in estimated cash flows and lives of the related mortgages retained in the securitized mortgage collateral.

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 December 31, 2017.

Lease liability—In connection with the discontinuation of our non‑conforming mortgage, retail mortgage, warehouse lending and commercial operations, a significant amount of office space that was previously occupied was no longer being used by the Company. The Company subleased a significant amount of this office space. The Company had 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. The liability was based on present value techniques that incorporate the Company’s judgments about estimated sublet revenue and discount rates. In January 2016, an amendment to the Company’s lease became effective modifying certain terms as well as extending the lease to 2024. The modification of the lease effectively eliminated the shortfall the Company had been recording as lease impairment attributable to the office space the Company was subletting associated with the previously discontinued operations. This liability was considered a Level 3 measurement at December 31, 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 year ended December 31, 2017, the Company recorded $858 thousand in income tax expense resulting from deferred charge impairment write-downs based on changes in estimated fair value of securitized mortgage collateral. Deferred charge is considered a Level 3 measurement at December 31, 2017. With the adoption of ASU 2016-16 in the first quarter of 2018, the deferred charge will be reclassed as an adjustment to opening retained earnings.

Reconciliation of Earnings Per Share

12 Months Ended

Dec. 31, 2017

Reconciliation of Earnings Per Share

Reconciliation of Earnings Per Share

Note 14.—Reconciliation of Earnings Per Share

The following table presents the computation of basic and diluted earnings per common share, including the dilutive effect of stock options and cumulative redeemable preferred stock outstanding for the periods indicated:


	For the Year Ended
	December 31,
	2017		2016		2015
Numerator for basic earnings per share:
Net (loss) earnings	$	(31,521)	$	46,670	$	80,799

Numerator for diluted (loss) earnings per share:
Net (loss) earnings	$	(31,521)	$	46,670	$	80,799
Interest expense attributable to convertible notes		—		2,463		2,719
Net (loss) earnings plus interest expense attributable to convertible notes	$	(31,521)	$	49,133	$	83,518

Denominator for basic (loss) earnings per share (1):
Basic weighted average common shares outstanding during the period		19,438		13,193		10,094

Denominator for diluted (loss) earnings per share (1):
Basic weighted average common shares outstanding during the period		19,438		13,193		10,094
Net effect of dilutive convertible notes		—		1,359		2,597
Net effect of dilutive stock options and DSU’s		—		304		354
Diluted weighted average common shares		19,438		14,856		13,045
Net (loss) earnings per common share:
Basic	$	(1.62)	$	3.54	$	8.00
Diluted	$	(1.62)	$	3.31	$	6.40

(1)

Share amounts presented in thousands.

The anti‑dilutive stock options outstanding for the years ending December 31, 2017, 2016 and 2015 were 1.6 million, 685 thousand and 357 thousand shares, respectively. Additionally, for the year ended December 2017, there were 1.2 million shares attributable to the 2015 convertible notes that were anti-dilutive.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Taxes

Income Taxes

Note 15.—Income Taxes

The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act makes broad and complex changes to the U.S. tax code by, among other things, reducing the federal corporate income tax rate and business deductions and eliminates federal alternative minimum tax (AMT).

The Tax Act reduces the U.S. corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018. Under FASB ASC 740, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. As a result of the reduction in the U.S. corporate income tax rate, the Company re-measured the net deferred tax assets at December 31, 2017 at the rate at which they are expected to reverse in the future and recognized a tax expense of $89.5 million, which was offset by a $66.4 million change in the valuation allowance and other items resulting in income tax expense of $20.1 million in 2017. The Company is still analyzing certain aspects of the Tax Act, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts.

In accordance with SAB 118, the Company has recognized the provisional tax impacts related to the remeasurement of deferred tax assets and liabilities and included these amounts in the consolidated financial statements for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act.

Income taxes for the years ended December 31, 2017, 2016 and 2015 were as follows:


	For the year ended December 31,
	2017		2016		2015
Current income taxes:
Federal	$	71	$	907	$	2,149
State		(37)		186		395
Total current income tax expense		34		1,093		2,544
Deferred income taxes:
Federal		17,610		—		(21,367)
State		2,494		—		(3,053)
Total deferred income tax expense (benefit)		20,104		—		(24,420)
Total income tax expense (benefit)	$	20,138	$	1,093	$	(21,876)

The Company recorded income tax expense (benefit) of $20.1 million, $1.1 million and $(21.9) million for the years ended December 31, 2017, 2016 and 2015, respectively. The income tax expense of $20.1 million for the year ended December 31, 2017 is primarily the result of income tax expense due to a reduction in the Company’s deferred tax asset as a result of a reduction in future utilization, changes in tax rates due to the Tax Act re-measurement of deferred tax assets and liabilities, 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 income tax expense of $1.1 million for the year ended December 31, 2016 is primarily the result of the amortization of the deferred charge, federal AMT and state income taxes from states where the Company does not have net operating loss carryforwards or state minimum taxes, including AMT. For the year ended December 31, 2015, the Company recorded a deferred income tax benefit of $24.4 million primarily the result of a reversal of valuation allowance partially offset by federal 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 statement of operations. 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. The Company’s net deferred tax assets declined to $4.3 million at December 31, 2017, as a result of the reduction in projected future utilization, changes in tax rates due to the Tax Act re-measurement of deferred tax assets and liabilities and an increase in deferred tax liabilities as a result of the amortization of goodwill. The Company has recorded a valuation allowance against its remaining net deferred tax assets at December 31, 2017 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 may not generate sufficient taxable income to realize the deferred tax assets.

Deferred tax assets are comprised of the following temporary differences between the financial statement carrying value and the tax basis of assets:


	For the year ended December 31,
	2017		2016
Deferred tax assets:
Federal and state net operating losses	$	181,681	$	226,001
Mortgage securities		54,657		112,302
Depreciation and amortization		—		337
Capital loss carryover		163		—
Compensation and other accruals		5,452		7,922
Repurchase reserve		1,861		2,430
Total gross deferred tax assets		243,814		348,992
Deferred tax liabilities:
Fair value (1)		(8,940)		(10,869)
Mortgage servicing rights		(46,104)		(59,096)
Depreciation and amortization		(874)		—
Total gross deferred tax liabilities		(55,918)		(69,965)
Valuation allowance		(183,581)		(254,607)
Total net deferred tax assets	$	4,315	$	24,420

(1)Includes fair value adjustments to long-term debt and fair value and accretion adjustments for the contingent consideration.

The following is a reconciliation of income taxes to the expected statutory federal corporate income tax rates for the years ended December 31, 2017, 2016 and 2015:


	For the year ended December 31,
	2017		2016		2015
Expected income tax expense (benefit)	$	(3,984)	$	16,717	$	20,623
State tax (benefit), net of federal benefit		32		185		256
State rate change		12		(153)		—
Change in valuation allowance		(66,355)		(17,002)		(44,163)
Federal rate change		89,518		—		—
Deferred charge		858		1,278		1,558
Other		57		68		(150)
Total income tax expense (benefit)	$	20,138	$	1,093	$	(21,876)

As of December 31, 2017, the Company had estimated federal net operating loss (NOL) carryforwards of approximately $619.9 million. Federal net operating loss carryforwards begin to expire in 2027. As of December 31, 2017, the Company had estimated California NOL carryforwards of approximately $431.0 million, which begin to expire in 2028. The Company may not be able to realize the maximum benefit due to the nature and tax entities that holds the NOL. On July 19, 2016, the Company’s stockholders approved an amendment to the NOL rights plan, which is designed to mitigate the risk of losing net operating loss carry‑forwards and certain other tax attributes from being limited in reducing future income taxes. For a description of the NOL rights plan, see Note 20.—Tax Benefits Preservation Rights Plan.

The Company files numerous tax returns in various jurisdictions. While the Company is subject to examination by various taxing authorities, the Company believes there are no unresolved issues or claims likely to be material to its financial position. The Company classifies interest and penalties on taxes as provision for income taxes. As of December 31, 2017 and 2016, the Company has no material uncertain tax positions. With the enactment of the Tax Act in the fourth quarter of 2017, federal AMT was eliminated and $474 thousand in federal AMT credits were reclassed to receivables as of December 31, 2017. The Company has state AMT credits in the amount of $113 thousand as of December 31, 2017.

The Company recognizes tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. A windfall tax benefit occurs when the actual tax benefit realized upon an employee’s disposition of a share‑based award exceeds the deferred tax asset, if any, associated with the award. At December 2016, deferred tax assets did not include $5.1 million of excess tax benefits from stock‑based compensation. With the adoption of ASU 2016-09 in the first quarter of 2017, the Company had a $5.1 million cumulative effect adjustment to opening retained earnings related to the excess tax benefit from stock‑based compensation which had no impact as the Company had a full valuation allowance against it.

Segment Reporting

12 Months Ended

Dec. 31, 2017

Segment Reporting

Segment Reporting

Note 16.—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.

The following table presents selected balance sheet data by reporting segment as of the dates indicated:


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2017:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	31,784	$	235	$	—	$	1,204	$	33,223
Restricted cash		5,876		—		—		—		5,876
Mortgage loans held-for-sale		568,781		—		—		—		568,781
Finance receivables		41,777		—		—		—		41,777
Mortgage servicing rights		154,405		—		—		—		154,405
Trust assets		—		—		3,670,550		—		3,670,550
Goodwill		104,587		—		—		—		104,587
Other assets (1)		85,773		16		7,827		8,885		102,501
Total assets		992,983		251		3,678,377		10,089		4,681,700
Total liabilities		678,392		47		3,698,639		39,475		4,416,553


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2016:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	14,026	$	166	$	—	$	25,904	$	40,096
Restricted cash		5,971		—		—		—		5,971
Mortgage loans held-for-sale		388,422		—		—		—		388,422
Finance receivables		62,937		—		—		—		62,937
Mortgage servicing rights		131,537		—		—		—		131,537
Trust assets		—		—		4,033,290		—		4,033,290
Goodwill		104,587		351		—		—		104,938
Other assets (1)		55,444		4,934		8,983		27,182		96,543
Total assets		762,924		5,451		4,042,273		53,086		4,863,734
Total liabilities		551,110		7,741		4,065,221		8,622		4,632,694

(1)

All segment asset balances exclude intercompany balances.

The following table presents selected statement of operations information by reporting segment for the years ended December 31, 2017, 2016 and 2015:


Statement of Operations Items for the	Mortgage		Real Estate		Long-term			Corporate
Year Ended December 31, 2017:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	136,147	$	—	$	—	$	—	$	136,147
Real estate services fees, net		—		5,856		—		—		5,856
Servicing fees, net		31,902		—		—		—		31,902
Loss on mortgage servicing rights, net		(35,880)		—		—		—		(35,880)
Other revenue		22		—		273		385		680
Accretion of contingent consideration		(2,058)		—		—		—		(2,058)
Change in fair value of contingent consideration		13,326		—		—		—		13,326
Loss on extinguishment of debt		—		—		(1,265)		—		(1,265)
Other operating expense		(143,002)		(3,610)		(339)		(20,747)		(167,698)
Other income (expense)		2,931		—		6,903		(2,227)		7,607
Net earnings (loss) before income tax expense	$	3,388	$	2,246	$	5,572	$	(22,589)		(11,383)
Income tax expense										20,138
Net loss									$	(31,521)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2016:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	311,017	$	—	$	—	$	—	$	311,017
Real estate services fees, net		—		8,395		—		—		8,395
Servicing fees, net		13,734		—		—		—		13,734
Loss on mortgage servicing rights, net		(36,441)		—		—		—		(36,441)
Other revenue		79		—		242		730		1,051
Accretion of contingent consideration		(6,997)		—		—		—		(6,997)
Change in fair value of contingent consideration		(30,145)		—		—		—		(30,145)
Change in fair value of long-term debt		—		—		(14,436)				(14,436)
Other operating expense		(185,231)		(6,536)		(418)		(8,716)		(200,901)
Other (expense) income		2,582		—		5,439		(5,535)		2,486
Net earnings (loss) before income tax expense	$	68,598	$	1,859	$	(9,173)	$	(13,521)	$	47,763
Income tax expense										1,093
Net earnings									$	46,670


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2015:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	169,206	$	—	$	—	$	—	$	169,206
Real estate services fees, net		—		9,850		—		—		9,850
Servicing fees, net		6,102		—		—		—		6,102
Loss on mortgage servicing rights		(18,598)		—		—		—		(18,598)
Other revenue		25		—		263		109		397
Accretion of contingent consideration		(8,142)		—		—		—		(8,142)
Change in fair value of contingent consideration		45,920		—		—		—		45,920
Change in fair value of long-term debt		—		—		(8,661)		—		(8,661)
Other operating expense		(119,261)		(5,951)		(677)		(7,569)		(133,458)
Other (expense) income		2,037		—		(1,125)		(4,605)		(3,693)
Net earnings (loss) before income tax expense	$	77,289	$	3,899	$	(10,200)	$	(12,065)	$	58,923
Income tax benefit										(21,876)
Net earnings									$	80,799

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies

Commitments and Contingencies

Note 17.—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 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 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 legal matters summarized below are ongoing and may have an effect on the Company’s business and future financial condition and results of operations:

On or about April 20, 2011, an action was filed entitled Federal Home Loan Bank of Boston v. Ally Financial Inc., et al., naming IMH Assets Corp, IFC, the Company, and ISAC as defendants. The complaint alleges misrepresentations in the materials used to market mortgage‑backed securities that the plaintiff purchased. The complaint seeks damages and attorney’s fees in an amount to be established at time of trial. The case was removed to the United States District Court for the District of Massachusetts and on September 30, 2013, the Court granted the Company’s motion to dismiss claims against it arising under the Massachusetts Uniform Securities Act. On February 7, 2017, the Court remanded this case to the Suffolk County Superior Court. The case remains pending as to other claims against the Company.

On December 7, 2011, a purported class action was filed in the Circuit Court of Baltimore City entitled Timm, v. Impac Mortgage Holdings, Inc, et al. alleging on behalf of holders of the Company’s 9.375% Series B Cumulative Redeemable Preferred Stock (Preferred B) and 9.125% Series C Cumulative Redeemable Preferred Stock (Preferred C) who did not tender their stock in connection with the Company’s 2009 completion of its Offer to Purchase and Consent Solicitation that the Company failed to achieve the required consent of the Preferred B and C holders, the consents to amend the Preferred stock were not effective because they were given on unissued stock (after redemption), the Company tied the tender offer with a consent requirement that constituted an improper “vote buying” scheme, and that the tender offer was a breach of a fiduciary duty. The action seeks the payment of two quarterly dividends for the Preferred B and C holders, the unwinding of the consents and reinstatement of the cumulative dividend on the Preferred B and C stock, and the election of two directors by the Preferred B and C holders. The action also seeks punitive damages and legal expenses. The court, on January 28, 2013, dismissed all individual director and officer defendants from the case and further dismissed three of the six causes of action. The remaining causes of action against the Company allege the Preferred B holders did not approve amendments to its Articles Supplementary and the holders thereof seek to recover two quarters of dividends and to elect two members to the Board of Directors of the Company. On December 29, 2017, the court denied the Company’s motion for summary judgment, granted the Plaintiffs motion for summary judgment, and stated it would schedule further proceedings to determine the appropriate relief which may include reinstating the Series B Preferred Stock holders rights and voiding the 2009 amendment, resulting in (among other possible ramifications), the reinstatement of dividend rights which have not been declared or paid since the 2009 amendment, the suspension of common dividends and the right to elect two members to the Board of Directors. The Company intends to appeal the decision.

On April 30, 2012, a purported class action was filed entitled Marentes v. Impac Mortgage Holdings, Inc., alleging that certain loan modification activities of the Company constitute an unfair business practice, false advertising and marketing, and that the fees charged are improper. The complaint seeks unspecified damages, restitution, injunctive relief, attorney’s fees and prejudgment interest. On August 22, 2012, the plaintiff filed an amended complaint adding Impac Funding Corporation as a defendant and on October 2, 2012, the plaintiff dismissed Impac Mortgage Holdings, Inc., without prejudice. Trial is currently scheduled for May 2018.

On December 14, 2013, a matter was filed in the US District Court, District of Minnesota, entitled Residential Funding Company, LLC v. Impac Funding Corp. alleging the defendant is responsible for unspecific debts of Pinnacle Direct Funding Corp., as its successor in interest. On April 3, 2014, the plaintiff filed a First Amended Complaint alleging the defendant is responsible for breaches of representations and warranties in connection with certain loan sales from Pinnacle to plaintiff. The plaintiff seeks declaratory relief and unspecified damages. The matter is currently in the discovery phase. The Company is scheduled to begin mediation in March 2018.

In October 2011 and November 2012, the Company received letters from Countrywide Securities Corporation (Countrywide), Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch), and UBS Securities LLC (UBS) claiming indemnification relating to mortgage‑backed securities bonds issued, originated or sold by ISAC, IFC, IMH Assets Corp. and the Company. The claims seek indemnification from claims asserted against Countrywide, Merrill Lynch, and UBS in specified legal actions entitled American International Group Inc. v. Bank of America Corp., et al., in the United States District Court for the Southern District of New York and Federal Home Loan Bank of Boston v. Ally Financial, Inc., et al., in the United States District Court for the District of Massachusetts. The notices each seek indemnification for all losses, liabilities, damages and legal fees and costs incurred in those actions. In October 2012, January 2013, and December 2014, Deutsche Bank issued indemnification demands for claims asserted against them in the Superior Court of New York in cases entitled Royal Park Investments SA/NV v. Merrill Lynch, et al. and Dealink Funding Ltd. v. Deutsche Bank and in the Circuit Court for the City of Richmond, Virginia, in a case entitled Commonwealth of VA, et al. v. Barclays Capital Inc, et al. In February of 2013 the Company also received a notice of intent to seek indemnification on behalf of Deutsche Bank AG, Deutsche Bank Securities, Inc., DB Structured Products, Inc., ACE Securities Corp and Deutsche Alt‑A Securities, Inc. The claims relate to actions filed against those entities in the Superior Court of New York.

On April 20, 2017, a purported class action was filed in the United States District Court, Central District of California, entitled Nguyen v. Impac Mortgage Corp. dba CashCall Mortgage et al. The plaintiffs contend the defendants did not pay purported class members overtime compensation or provide meal and rest breaks, as required by law. The action seeks to invalidate any waiver signed by a purported class member of their right to bring a class action and seeks damages, restitution, penalties, attorney’s fees, interest, and an injunction against unfair, deceptive, and unlawful activities. The matter has been stayed, pending a final decision by the U.S. Supreme Court in Morris v. Ernst & Young, LLP.

On November 1, 2016, a qui tam action was filed under seal entitled United States of America ex rel Jeremy Calva, et al. v. Impac Secured Assets Corp., et al. The matter was unsealed on November 3, 2017. The complaint alleges the defendants violated the false claims act by misrepresenting loan delinquency rates for loans deposited into certain securitization trusts, not notifying the trustee of certain trust that delinquent loans were deposited into the trusts, not notifying anyone that Company affiliates were the originator of most loans as well as the sponsor, depositor, issuer, and master servicer of certain trusts, causing government entities to buy bonds in those trusts. The complaint seeks an order that the defendants cease and desist from submitting false claims to the plaintiffs, as well as civil penalties, damages, attorneys’ fees, and costs incurred in the case. Neither the United States, nor any of the states or cities named as plaintiff in the matter elected to intervene in the case.

The Company is a party to other litigation and claims which are normal in the course of its operations. While the results of such other litigation and claims cannot be predicted with certainty, the Company believes 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 above 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.

Lease Commitments

The Company leases office space and certain office equipment under long‑term leases expiring at various dates through 2024. Future minimum commitments under non‑cancelable leases are as follows:


	Operating		Capital
	Leases		Leases		Total
Year 2018	$	5,822	$	211	$	6,033
Year 2019		5,592		82		5,674
Year 2020		4,560		—		4,560
Year 2021		4,620		—		4,620
Year 2022 and thereafter		13,065		—		13,065
Total lease commitments	$	33,659	$	293	$	33,952

Total rental expense for the years ended December 31, 2017, 2016 and 2015 was $5.4 million, $5.1 million and $4.7 million, respectively.

Interest expense on the capital leases was $22 thousand, $32 thousand and $57 thousand for the years ended December 31, 2017, 2016 and 2015, respectively.

Repurchase Reserve

The provision for repurchases represents an estimate of losses to be incurred on the repurchase of loans or indemnification of purchaser's losses related to loan sales. Certain sale contracts and GSE standards require the Company to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make initial loan payments or if the accompanying mortgage loan fails to meet certain customary representations and warranties.

In the event of a breach of the representations and warranties, The Company may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that the Company refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. The Company records a reserve for estimated losses associated with loan repurchases, purchaser indemnification and premium refunds. The provision for repurchase losses is charged against gain on sale of loans, net in the consolidated statements of operations. A release of repurchase reserves is recorded when the Company 's assessment reveals that previously recorded reserves are no longer needed.

Loans sold to Ginnie Mae are insured by the FHA or are guaranteed by the VA. As servicer, the Company may elect to repurchase delinquent loans in accordance with Ginnie Mae guidelines; however, the loans continue to be insured. The Company may also indemnify the FHA and VA for losses related to loans not originated in accordance with their guidelines.

A selling representation and warranty framework was introduced by the GSEs in 2013 and enhanced in 2014 that helps address concerns of loan sellers with respect to loan repurchase risk. Under the framework, a GSE will not exercise its remedies, including the issuance of repurchase requests, for breaches of certain selling representations and warranties if a mortgage meets certain eligibility requirements. For loans sold to GSEs on or after January 1, 2013, repurchase risk for Home Affordable Refinance Program (HARP) loans is lowered if the borrower stays current on the loan for 12 months and representation and warranty risks are limited for non-HARP loans that stay current for 36 months.

The Company regularly evaluates the adequacy of repurchase reserves based on trends in repurchase and indemnification requests, actual loss experience, settlement negotiation, estimated future loss exposure and other relevant factors including economic conditions. During the three years ended 2017, 2016 and 2015, the Company sold $6.9 billion, $12.8 billion and $9.2 billion, respectively, of loans subject to representations and warranties. The Company believes its reserve balances as of December 31, 2017 are sufficient to cover future loss exposure associated with repurchase contingencies.

The following table summarizes the repurchase reserve activity (included in other liabilities in the accompanying consolidated balance sheets) related to previously sold loans for the years ended December 31, 2017 and 2016 is as follows:


	December 31,		December 31,
	2017		2016
Beginning balance	$	5,408	$	5,236
Provision for repurchases		1,557		379
Settlements		(945)		(207)
Total repurchase reserve	$	6,020	$	5,408

Concentration of Risk

The aggregate unpaid principal balance of loans in the Company’s long‑term mortgage portfolio secured by properties in California and Florida was $2.2 billion and $446.5 million, or 51% and 11%, respectively, at December 31, 2017.

The Company does not have a significant concentration of risk to any individual client except for the U.S. government and its agencies relating to its concentration of loan sales. The Company also has geographic concentration risk because 76% of the Company’s mortgage loan originations were from California.

Share Based Payments and Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Share Based Payments and Employee Benefit Plans

Share Based Payments and Employee Benefit Plans

Note 18.—Share Based Payments and Employee Benefit Plans

The Company maintains a stock‑based incentive compensation plan, the terms of which are governed by the 2010 Omnibus Incentive Plan (the 2010 Incentive Plan). The 2010 Incentive Plan provides for the grant of stock appreciation rights, restricted stock units, performance shares and other stock and cash‑based incentive awards. Employees, directors, consultants or other persons providing services to the Company or its affiliates are eligible to receive awards pursuant to the 2010 Incentive Plan. In connection with the adoption of the 2010 Incentive Plan, the Company’s 2001 Stock Plan, which was scheduled to expire in March 2011, was frozen. Further, all outstanding awards under the 2001 Stock Plan, as well as the Company’s previous 1995 Stock Option, Deferred Stock and Restricted Stock Plan (together with the 2001 Stock Plan, the “Prior Plans”), were assumed by the 2010 Incentive Plan. During the third quarter of 2017, the shareholders voted on and approved the amendment to the 2010 Omnibus Incentive Plan to increase the shares subject to the plan by 500,000 shares. As of December 31, 2017, the aggregate number of shares reserved under the 2010 Incentive Plan is 2,416,321 shares (including all outstanding awards assumed from Prior Plans), and there were 223,902 shares available for grant as stock options, restricted stock and deferred stock awards. The Company issues new shares of common stock to satisfy stock option exercises. There were 388,450 options granted for the year ended December 31, 2017.

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:



	For the year ended December 31,
	2017		2016		2015
Risk-free interest rate		1.77 - 2.29%		1.16%		1.54 - 1.76%
Expected lives (in years)		5.54 - 5.63		5.47		5.50 - 5.73
Expected volatility		43.59 - 45.34%		49.71%		49.53 - 79.56%
Expected dividend yield		0.00%		0.00%		0.00%
Fair value per share	$	4.34 - 5.98	$	7.95	$	6.74 - 9.96

The following table summarizes activity, pricing and other information for the Company’s stock options for the years presented below:


	For the year ended December 31,
	2017			2016			2015
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
	Number of	Exercise		Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price		Shares	Price
Options outstanding at beginning of year	1,391,327	$	13.37	1,115,280	$	11.85	1,078,230	$	6.88
Options granted	388,450		13.43	342,000		17.40	405,800		19.59
Options exercised	(94,051)		6.30	(42,954)		5.10	(243,971)		3.98
Options forfeited/cancelled	(102,972)		16.26	(22,999)		15.50	(124,779)		9.44
Options outstanding at end of year	1,582,754		13.61	1,391,327		13.37	1,115,280		11.85
Options exercisable at end of year	921,387	$	12.15	705,488	$	10.25	476,998	$	8.23

The aggregate intrinsic value in the following table represents the total pre‑tax intrinsic value, based on the Company’s closing stock price of $10.16 and $14.02 per common share as of December 31, 2017 and 2016, respectively. Aggregate intrinsic value represents the amount of proceeds the option holders would have received had all option holders exercised their options and sold the stock as of that date.


	As of December 31,
	2017			2016
	Weighted-			Weighted-
	Average	Aggregate		Average	Aggregate
	Remaining	Intrinsic		Remaining	Intrinsic
	Life	Value		Life	Value
	(Years)	(in thousands)		(Years)	(in thousands)
Options outstanding at end of year	6.83	$	1,810	7.69	$	4,293
Options exercisable at end of year	5.29	$	1,803	6.50	$	3,402

As of December 31, 2017, there was approximately $3.2 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 1.9 years.

For the years ended December 31, 2017, 2016 and 2015, the aggregate grant‑date fair value of stock options granted was approximately $2.3 million, $2.7 million and $3.8 million, respectively.

For the years ended December 31, 2017, 2016 and 2015, total stock‑based compensation expense was $2.5 million, $2.1 million and $1.6 million, respectively.

Additional information regarding stock options outstanding as of December 31, 2017 is as follows:


		Stock Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-				Weighted-
Exercise			Remaining	Average				Average
Price		Number	Contractual	Exercise		Number		Exercise
Range		Outstanding	Life in Years	Price		Exercisable		Price
$	0 - 2.80	115,988	2.43	$	2.43	115,988	$	2.43
	2.81 - 5.39	189,165	5.41		5.39	189,165		5.39
	5.40 - 10.65	188,666	5.94		10.42	147,000		10.55
	10.66 - 13.72	319,300	9.67		13.72	—		—
	13.73 - 16.43	143,499	4.13		13.85	142,833		13.83
	16.44 - 17.40	299,668	8.18		17.40	105,853		17.40
	17.41 - 21.50	326,468	6.90		20.52	220,548		20.52
$	2.80 - 21.50	1,582,754	6.83	$	13.61	921,387	$	12.15

In addition to the options granted, the Company has granted deferred stock units (DSU’s), which vest between one and three year periods. The fair value of each DSU was measured on the date of grant using the grant date price of the Company’s stock. For the years ended December 31, 2017 and 2016, the aggregate grant‑date fair value of DSU’s granted was approximately $206 thousand and $87 thousand, respectively.

The following table summarizes activity, pricing and other information for the Company’s DSU’s for the years presented below:


	For the year ended December 31,
	2017			2016			2015
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
	Number of	Grant Date		Number of	Grant Date		Number of	Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
DSU’s outstanding at beginning of year	85,750	$	9.83	80,750	$	9.36	75,750	$	8.63
DSU’s granted	15,000		13.72	5,000		17.40	5,000		20.50
DSU’s exercised	—		—	—		—	—		—
DSU’s forfeited/cancelled	—		—	—		—	—		—
DSU’s outstanding at end of year	100,750	$	10.41	85,750	$	9.83	80,750	$	9.36

As of December 31, 2017, there was approximately $227 thousand of total unrecognized compensation cost related to the DSU compensation arrangements granted under the plan. This cost is expected to be recognized over a weighted average period of 2.45 years.

401(k) Plan

After meeting certain employment requirements, employees can participate in the Company’s 401(k) plan. Under the 401(k) plan, employees may contribute up to 25% of their salaries, pursuant to certain restrictions. The Company matches 50% of the first 4% of employee contributions. Additional contributions may be made at the discretion of the board of directors. During the year ended December 31, 2017, the Company recorded approximately $1.1 million for basic matching contributions. During the year ended December 31, 2016, the Company recorded approximately $895 thousand for basic matching contributions. There were no discretionary matching contributions recorded during the years ended December 31, 2017 or 2016.

- 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	12 Months Ended
Related Party Transactions	Dec. 31, 2017
Related Party Transactions
Related Party Transactions	Note 19.—Related Party Transactions In January 2015, the Company entered into a $5.0 million short-term borrowing agreement with a related party of the Company, secured by Ginnie Mae servicing rights with an interest rate of 15%, and transaction costs of $50 thousand. The balance was repaid in March 2015. In April 2015, the Company issued a $10.0 million short-term Promissory Note to a related party with an interest rate of 15%. The balance was repaid in May 2015. In June 2015, the Company issued the 2015 Convertible Notes to purchasers, some of which are related parties. See Note 9.—Debt—Convertible Notes.

Tax Benefits Preservation Rights Plan	12 Months Ended
Tax Benefits Preservation Rights Plan	Dec. 31, 2017
Tax Benefits Preservation Rights Plan
Tax Benefits Preservation Rights Plan	Note 20.—Tax Benefits Preservation Rights Plan In September 2013, the Company adopted a Tax Benefits Preservation Rights Agreement (Rights Plan) to help preserve the value of certain deferred tax benefits, including those generated by net operating losses (collectively, Tax Benefits). In general, the Company may “carry forward” net operating losses in certain circumstances to offset current and future taxable income, which will reduce federal and state income tax liability, subject to certain requirements and restrictions. The Company’s ability to use these Tax Benefits would be substantially limited and impaired if it were to experience an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury Regulations promulgated thereunder. Generally, the Company will experience an “ownership change” if the percentage of the shares of Common Stock owned by one or more “five-percent shareholders” increases by more than 50 percentage points over the lowest percentage of shares of Common Stock owned by such stockholder at any time during the prior three year on a rolling basis. As such, the Rights Plan has a 4.99% “trigger” threshold that is intended to act as a deterrent to any person or entity seeking to acquire 4.99% or more of the outstanding Common Stock without the prior approval of the Board. The Rights Plan also has certain ancillary anti‑takeover effects. The rights accompany each share of common stock of the Company and are evidenced by ownership of common stock. The rights are not exercisable except upon the occurrence of certain change of control events. Once triggered, the rights would entitle the stockholders, other than a person qualifying as an “Acquiring Person” pursuant to the rights plan, to certain “flip‑in”, “flip‑over” and exchange rights. The rights issued under the Rights Plan may be redeemed by the board of directors at a nominal redemption price of $0.001 per right, and the board of directors may amend the rights in any respect until the rights are triggered. On July 19, 2016, the stockholders of the Company approved an amendment to the Company’s Rights Plan extending the expiration date to September 2, 2019.

Selected Quartely Financial Data

12 Months Ended

Dec. 31, 2017

Selected Quarterly Financial Data - (unaudited)

Selected Quarterly Financial Data - (unaudited)

Note 21.—Selected Quarterly Financial Data - (unaudited)

The following tables present selected unaudited quarterly financial data:


	For the three months ended
	March 31, 2017		June 30, 2017		September 30, 2017		December 31, 2017
Total revenues	$	45,342	$	39,633	$	42,076	$	11,654
Total expenses		(44,557)		(33,721)		(37,560)		(40,592)
Total other (expense) income		4,268		1,573		(95)		596
Earnings (loss) before income taxes		5,053		7,485		4,421		(28,342)
Income tax expense		426		1,045		2,104		16,563
Net earnings (loss)	$	4,627	$	6,440	$	2,317	$	(44,905)
Earnings (loss) per common share:
Basic	$	0.29	$	0.33	$	0.11	$	(2.14)
Diluted	$	0.29	$	0.32	$	0.11	$	(2.14)


	For the three months ended
	March 31, 2016		June 30, 2016		September 30, 2016		December 31, 2016
Total revenues	$	47,299	$	69,213	$	103,993	$	77,251
Total expenses		(45,155)		(60,891)		(81,359)		(50,638)
Total other (expense) income		(728)		4,352		(6,266)		(9,308)
Earnings before income taxes		1,416		12,674		16,368		17,305
Income tax (benefit) expense		435		423		(130)		365
Net earnings	$	981	$	12,251	$	16,498	$	16,940
Earnings per common share:
Basic	$	0.09	$	0.99	$	1.28	$	1.06
Diluted	$	0.08	$	0.92	$	1.18	$	1.00

Summary of Business and Financial Statement Presentation (Policies)	12 Months Ended
	Dec. 31, 2017
Summary of Business and Financial Statement Presentation
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include the accounts of IMH and its wholly-owned subsidiaries and have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). 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 year 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 derivative instruments, including, interest rate lock commitments (IRLC). Actual results could differ from those estimates and assumptions.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include accounts of IMH and other entities in which the Company has a controlling financial interest. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as variable interest entities (VIEs), through arrangements that do not involve voting interests. The VIE framework requires a variable interest holder (counterparty to a VIE) to consolidate the VIE if that party has the power to direct activities of the VIE that most significantly impact the entity’s economic performance, will absorb a majority of the expected losses of the VIE, will receive a majority of the residual returns of the VIE, or both, and directs the significant activities of the entity. This party is considered the primary beneficiary of the entity. The determination of whether the Company meets the criteria to be considered the primary beneficiary of a VIE requires an evaluation of all transactions (such as investments, liquidity commitments, derivatives and fee arrangements) with the entity.
Fair Value Option	Fair Value Option The Company has elected the fair value option for investment securities available-for-sale, securitized mortgage collateral, mortgage servicing rights, mortgage loans held-for-sale, securitized mortgage borrowings and long-term debt. Elections were made to mitigate income statement volatility caused by differences in the measurement basis of elected instruments.
Cash and Cash Equivalents and Restricted Cash	Cash and Cash Equivalents and Restricted Cash Cash and cash equivalents consist of cash and highly liquid investments with maturities of three months or less at the date of acquisition. The carrying amount of cash and cash equivalents approximates fair value. Cash balances that have restrictions as to the Company’s ability to withdraw funds are considered restricted cash. At December 31, 2017 and 2016, restricted cash totaled $5.9 million and $6.0 million, respectively. The restricted cash is the result of the terms of the Company’s warehouse borrowings. In accordance with the terms of the Master Repurchase Agreements related to the warehouse borrowings, the Company is required to maintain cash balances with the lender as additional collateral for the borrowings (See Note 9.—Debt).
Mortgage Loans Held-for-Sale	Mortgage Loans Held‑for‑Sale Mortgage loans held-for-sale (LHFS) are accounted for using the fair value option, with changes in fair value recorded in gain on sale of loans, net in the accompanying consolidated statements of operations. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 825, Financial Instruments, loan origination fees and expenses are recognized in earnings as incurred and not deferred. Revenue derived from the Company’s mortgage lending activities includes loan fees collected at the time of origination and gain or loss from the sale of LHFS. Loan fees consist of fee income earned on all loan originations, including loans closed and held for sale. Loan fees are recognized as earned and consist of amounts collected for application and underwriting fees, fees on cancelled loans and discount points. The related direct loan origination costs are recognized when incurred and consists of broker fees and commissions. Gain or loss from the sale and mark‑to‑market of LHFS includes both realized and unrealized gains and losses and are included in gain on sale of loans, net in the accompanying consolidated statements of operations. The valuation of LHFS approximates a whole‑loan price, which includes the value of the related mortgage servicing rights. The Company principally sells its LHFS to government sponsored entities, and to a lesser extent, investors. The Company evaluates its loan sales for sales treatment. To the extent the transfer of loans qualifies as a sale, the Company derecognizes the loans and records a realized gain or loss on the sale date. In the event the Company determines that the transfer of loans does not qualify as a sale, the transfer would be treated as a secured borrowing. Interest on loans is recorded as income when earned and deemed collectible. LHFS are placed on nonaccrual status when any portion of the principal or interest is 90 days past due or earlier if factors indicate that the ultimate collectability of the principal or interest is not probable. Interest received from loans on nonaccrual status is recorded as income when collected. Loans return to accrual status when the principal and interest become current and it is probable that the amounts are fully collectible.
Mortgage Servicing Rights	Mortgage Servicing Rights The Company accounts for mortgage loan sales in accordance with FASB ASC 860, Transfers and Servicing. Upon sale of mortgage loans on a service-retained basis, the LHFS are removed from the balance sheet, mortgage servicing rights (MSRs) are recorded as an asset for servicing rights retained. The Company elected to measure MSRs at fair value as prescribed by FASB ASC 860-50-35, and as such, servicing assets or liabilities are valued using discounted cash flow modeling techniques using assumptions regarding future net servicing cash flow, including prepayment rates, discount rates, servicing cost and other factors. Changes in estimated fair value are reported in the accompanying consolidated statements of operations within loss on mortgage servicing rights, net. When the Company sells mortgage servicing rights, the Company records a gain or loss on such sale based on the selling price of the mortgage servicing rights less the carrying value and transaction costs. Gains and losses are reported in the accompanying consolidated statements of operations within loss on mortgage servicing rights, net.
Finance Receivables	Finance Receivables Finance receivables represent transactions with the Company’s customers involved in residential real estate lending. As a warehouse lender, the Company’s warehouse lending operations are a secured creditor of the mortgage bankers and brokers to which the Company extends credit and is subject to the risks inherent in that status, including the risk of borrower fraud, default and bankruptcy. Any claim of the Company’s warehouse lending operations as a secured lender in a bankruptcy proceeding may be subject to adjustment and delay. Finance receivables from customers represent repurchase facilities with mortgage bankers that are primarily collateralized by mortgages on single-family residential real estate. Terms of the repurchase facilities, including the maximum facility amount and interest rate, are determined based upon the financial strength, historical performance and other qualifications of the borrower. The warehouse facilities to customers have maturities that range from on-demand to one year. Finance receivables are stated at the principal balance outstanding. Interest income is recorded on the accrual basis.
Securitized Mortgage Collateral	Securitized Mortgage Collateral The Company’s long‑term mortgage portfolio primarily includes adjustable rate and, to a lesser extent, fixed rate non‑conforming mortgages and commercial mortgages that were acquired and originated by our mortgage and commercial operations prior to 2008. Non‑conforming mortgages may not have certain documentation or verifications that are required by government sponsored entities and, therefore, in making our credit decisions, we were more reliant upon the borrower’s credit score and the adequacy of the underlying collateral. Historically, the Company securitized mortgages in the form of collateralized mortgage obligations (CMO) or real estate mortgage investment conduits (REMICs). These securitizations are evaluated for consolidation based on the provisions of FASB ASC 810‑10‑25. Amounts consolidated are included in trust assets and liabilities as securitized mortgage collateral, real estate owned, derivative assets, securitized mortgage borrowings and derivative liabilities in the accompanying consolidated balance sheets. The Company accounts for securitized mortgage collateral at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest income on securitized mortgage collateral is recorded using the effective yield for the period based on the previous quarter‑end’s estimated fair value. Securitized mortgage collateral is generally not placed on nonaccrual status as the servicer advances the interest payments to the trust regardless of the delinquency status of the underlying mortgage loan, until it becomes apparent to the servicer that the advance is not collectible.
Real Estate Owned	Real Estate Owned Real estate owned (REO) on the balance sheet are primarily assets within the securitized trusts but are recorded as a separate asset for accounting and reporting purposes and are within the long‑term mortgage portfolio. REO, which consists of residential real estate acquired in satisfaction of loans, is carried at net realizable value, which includes the estimated fair value of the residential real estate less estimated selling and holding costs. Adjustments to the loan carrying value required at the time of foreclosure affect the carrying amount of REO. Subsequent write‑downs in the net realizable value of REO are included in change in fair value of net trust assets, including trust REO (losses) gains in the consolidated statements of operations.
Goodwill and Intangible assets	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. 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 exceeds its implied fair value. An impairment loss, if any, is measured as the excess of carrying value over the implied fair value and would be recorded in general, administrative and 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.
Business Combinations	Business Combinations Business combinations are accounted for under the acquisition method of accounting in accordance with FASB ASC Topic 805, Business Combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100 percent of the acquired assets and assumed liabilities, regardless of the percentage owned, at their estimated fair values as of the date of acquisition. Any excess of the purchase price over the fair value of net assets and other identifiable intangible assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including other identifiable assets, exceeds the purchase price, a bargain purchase gain is recognized. Assets acquired and liabilities assumed which involve contingencies must also be recognized at their estimated fair value, provided such fair value can be determined during the measurement period. Acquisition-related costs, including severance, conversion and other restructuring charges, such as abandoned space accruals, are expensed as incurred. Results of operations of an acquired business are included in the consolidated statements of operations from the date of acquisition.
Securitized Mortgage Borrowings	Securitized Mortgage Borrowings The Company records securitized mortgage borrowings in the accompanying consolidated balance sheets for the consolidated CMO and REMIC securitized trusts within the long-term mortgage portfolio. The debt from each issuance of a securitized mortgage borrowing is payable from the principal and interest payments on the underlying mortgages collateralizing such debt, as well as the proceeds from liquidations of REO. If the principal and interest payments are insufficient to repay the debt, the shortfall is allocated first to the residual interest holders (generally owned by the Company) then, if necessary, to the certificate holders (e.g. third party investors in the securitized mortgage borrowings) in accordance with the specific terms of the various respective indentures. Securitized mortgage borrowings typically are structured as one-month LIBOR “floaters” and fixed rate securities with interest payable to certificate holders monthly. The maturity of each class of securitized mortgage borrowing is directly affected by the amount of net interest spread, overcollateralization and the rate of principal prepayments and defaults on the related securitized mortgage collateral. The actual maturity of any class of a securitized mortgage borrowing can occur later than the stated maturities of the underlying mortgages. When the Company issued securitized mortgage borrowings, the Company generally sought an investment grade rating for the Company’s securitized mortgages by nationally recognized rating agencies. To secure such ratings, it was often necessary to incorporate certain structural features that provide for credit enhancement. This generally included the pledge of collateral in excess of the principal amount of the securities to be issued, a bond guaranty insurance policy for some or all of the issued securities, or additional forms of mortgage insurance. The Company’s total loss exposure is limited to the Company’s initial net economic investment in each trust, which is referred to as a residual interest. The Company accounts for securitized mortgage borrowings at fair value, with changes in fair value during the period reflected in earnings. Fair value measurements are based on the Company’s estimated cash flow models, which incorporate assumptions, inputs of other market participants and quoted prices for the underlying bonds. The Company’s assumptions include its expectations of inputs that other market participants would use. These assumptions include judgments about the underlying collateral, prepayment speeds, credit losses, investor yield requirements, forward interest rates and certain other factors. Interest expense on securitized mortgage borrowings are recorded quarterly using the effective yield for the period based on the previous quarter‑end’s estimated fair value.
Derivative Instruments	Derivative Instruments In accordance with FASB ASC 815‑10 Derivatives and Hedging—Overview, the Company records all derivative instruments at fair value. The Company has accounted for all its derivatives as non‑designated hedge instruments or free‑standing derivatives. Interest Rate Swaps, Caps and Floors The Company’s interest rate risk management objective was to limit the exposure to the variability in future cash flows attributable to the variability of one-month LIBOR, which is the underlying index of adjustable rate securitized mortgage borrowings. The Company’s interest rate risk management policies were formulated with the intent to offset the potential adverse effects of changing interest rates on securitized mortgage borrowings. To mitigate exposure to the effect of changing interest rates on cash flows on securitized mortgage borrowings, the Company purchased derivative instruments primarily in the form of interest rate swap agreements (swaps) and, to a lesser extent, interest rate cap agreements (caps) and interest rate floor agreements (floors). There were no outstanding derivatives as of December 31, 2017 and December 31, 2016 The fair value of the Company’s swaps, caps, floors and other derivative instruments is generally based on market prices provided by dealers and market makers, or estimates of future cash flows from these financial instruments. Lending Derivatives The mortgage lending operation enters into IRLCs with consumers to originate mortgage loans at a specified interest rate. These IRLCs are accounted for as derivative instruments. The fair values of IRLCs utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturity and credit quality, subject to the anticipated loan funding probability (Pull‑through Rate). The fair value of IRLCs is subject to change primarily due to changes in interest rates and the estimated Pull‑through Rate. The Company reports IRLCs within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to IRLCs and uncommitted LHFS by using forward sold commitments including Fannie Mae and Ginnie Mae mortgage‑backed securities known as to‑be‑announced mortgage‑backed securities (TBA MBS or Hedging Instruments). The Hedging Instruments are typically entered into at the time the IRLC is made and are accounted for as derivative instruments. The fair value of Hedging Instruments is subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within gain on sale of loans, net. The Company hedges the changes in fair value associated with changes in interest rates related to MSRs by using TBA MBS or Hedging Instruments. The Hedging Instruments are typically entered into at the time the MSR is created and are accounted for as derivative instruments. The fair value of Hedging Instruments is subject to change primarily due to changes in interest rates. The Company reports Hedging Instruments within other assets and other liabilities at fair value with changes in fair value being recorded in the accompanying consolidated statements of operations within loss on sale of mortgage servicing rights. The fair value of IRLCs and Hedging Instruments are represented as derivative assets, lending and derivative liabilities, lending in Note 13.—Fair Value of Financial Instruments.
Long-term Debt	Long‑term Debt Long‑term debt (consisting of trust preferred securities and junior subordinated notes) is reported at fair value. These securities are measured based upon an analysis prepared by management, which considers the Company’s own credit risk and discounted cash flow analysis. Unrealized gains and losses are recognized in earnings in the accompanying consolidated statements of operations within change in fair value of long‑term debt. The Company does not consolidate trust preferred entities (which are sometimes hereinafter referred to as capital trusts) since the Company does not have a variable interest in the trust. Instead, the Company records its investment in the trust preferred entities (included in other assets in the accompanying consolidated balance sheets) and accounts for such under the equity method of accounting and reflects a liability for the issuance of the notes to the trust preferred entities. As part of the trust preferred exchange o
Repurchase Reserve	Repurchase Reserve The Company sells mortgage loans in the secondary market, including U.S. government sponsored entities and issues mortgage‑backed securities through Ginnie Mae and Fannie Mae. When the Company sells or issues securities, 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. In the event of a breach of its representations and warranties, the Company may be required to either repurchase the mortgage loans with the identified defects or indemnify the investor or insurer for any loss. Also, the Company’s loss may be reduced by proceeds from the sale or liquidation of the repurchased loan. The Company’s loss may be reduced by any recourse it has to correspondent lenders that, in turn, had sold such mortgage loans to the Company and breached similar or other representations and warranties. In such event, the Company has the right to seek a recovery of related repurchase losses from that correspondent lender. The Company records a provision for losses relating to such representations and warranties as part of its loan sale transactions. The method used to estimate the liability for representations and warranties is a function of the representations and warranties given and considers a combination of factors, including, but not limited to, estimated future defaults and loan repurchase rates and the potential severity of loss in the event of defaults including any loss on sale or liquidation of the repurchased loan and the probability of reimbursement by the correspondent loan seller. The Company establishes a liability at the time loans are sold and continually updates its estimated repurchase liability. The level of the repurchase liability for representations and warranties is difficult to estimate and requires considerable management judgment. The level of mortgage loan repurchase losses is dependent on economic factors, investor demands for loan repurchases and other external conditions that may change over the lives of the underlying loans.
Revenue Recognition for Fees from Services	Revenue Recognition for Fees from Services The Company follows FASB ASC 605, Revenue Recognition, which provides guidance on the application of GAAP to selected revenue recognition issues relates to our real estate services fees. The Company’s real estate services segment provides various real estate related services and loss mitigation services including (i) managing distressed mortgage portfolios and foreclosed real estate assets, (ii) the disposition of such assets, (iii) surveillance services for residential and multifamily mortgage portfolios, (iv) loan modification services and (v) the master servicing on various residential mortgage and multifamily loan pools for loans in the long‑term portfolio of IMH, and to a lesser extent, non‑affiliated entities. The revenues from these services are recognized in income in the period when services are rendered and collectability is reasonably certain.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred and are included in business promotion expense.
Stock-Based Compensation	Stock‑Based Compensation The Company accounts for stock‑based compensation in accordance with FASB ASC 718 Compensation—Stock Compensation. Accordingly, the Company measures the cost of stock‑based awards using the grant‑date fair value of the award and recognizes that cost over the requisite service period. The fair value of each stock option granted under the Company’s stock-based compensation plan is estimated on the date of grant using the Black-Scholes-Merton option-pricing model and assumptions noted in Note 18.—Share Based Payments and Employee Benefit Plans. The risk-free interest rate is based on the U.S. Treasury rate with a term equal to the expected term of the option grants on the date of grant. FASB ASC 718 requires forfeitures to be estimated at the time of grant and prospectively revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Stock‑based compensation expense is recorded net of estimated forfeitures for the years ended December 31, 2017, 2016 and 2015, such that the expense was recorded only for those stock‑based awards that were expected to vest during such periods. Refer to Note 18.—Share Based Payments and Employee Benefit Plans.
Income Taxes	Income Taxes In accordance with FASB ASC 740, Income Taxes, the Company records income tax expense as well as deferred tax assets and liabilities. Current income tax expense approximates taxes to be paid or refunded for the current period and includes income tax expense related to uncertain tax positions and amortization/impairment of deferred charge, explained below. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and recognizes enacted changes in tax rates and laws in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized subject to management’s judgment that realization is “more likely than not.” Uncertain tax positions that meet the more likely than not recognition threshold are measured to determine the amount of benefit to recognize. An uncertain tax position is measured at the largest amount of benefit that management believes has a greater than 50% likelihood of realization upon settlement. The Company is subject to federal income taxes as a regular (Subchapter C) corporation and files a consolidated U.S. federal income tax return on qualifying subsidiaries. The Company files income tax returns in the U.S. for federal and various states. In prior periods when the Company was taxed as a real estate investment trust (REIT), it recorded a deferred charge to eliminate the expense recognition of income taxes paid on inter-Company profits that result from the sale of mortgage loans from the taxable REIT subsidiaries to IMH. The deferred charge is included in other assets in the consolidated balance sheets and is amortized and, or impaired as a component of income tax expense in the consolidated statements of operations over the estimated life of the mortgages retained in the securitized mortgage collateral.
Earnings per Common Share	Earnings per Common Share Basic earnings per common share is computed on the basis of the weighted average number of shares outstanding for the year divided into earnings for the year. Diluted earnings per common share is computed on the basis of the weighted average number of shares and dilutive common equivalent shares outstanding for the year divided by earnings for the year, unless anti‑dilutive. Refer to Note 14.—Reconciliation of Earnings Per Share.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Standards Update (ASU) No. 2014-09, 2015-04, 2016-08, 2016-10, 2016-12, 2016-20, 2017-13 and 2017-14, collectively implemented as Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), “Revenue from Contracts with Customers (Topic 606)”, provides guidance for revenue recognition. This ASC’s core principle requires a company to recognize revenue when it transfers promised goods or services to customers in an amount that reflects consideration to which the company expects to be entitled in exchange for those goods or services. The standard also clarifies the principal versus agent considerations, providing the evaluation must focus on whether the entity has control of the goods or services before they are transferred to the customer. The new standard permits the use of either the modified retrospective or full retrospective transition method. The Company's revenue is primarily generated from loan originations, loan servicing and real estate services. Origination revenue is comprised of fee income earned at origination of a loan, interest income earned for the period the loans are held, and gain on sale on loans upon disposition of the loan. Servicing revenue is comprised of servicing fees and other ancillary fees in connection with our servicing activities. Real estate services revenue is comprised of income earned from various real estate services and support such as loss mitigation, loan modification, surveillance and disposition and monitoring services. The Company has performed a review of the new guidance as compared to current accounting policies and have evaluated all services rendered to customers as well as underlying contracts to determine the impact of this standard to the Company’s revenue recognition process. The majority of services rendered by the Company in connection with loan originations, loan servicing and the long-term mortgage portfolio are not within the scope of FASB ASC 606. However, the Company identified real estate services revenues that are within the scope of FASB ASC 606 for which the Company does not anticipate the impact to be materially different from the current revenue recognition processes. The Company’s implementation efforts to date include identification of revenue streams within the scope of the guidance, and the review of revenue contracts to assess the impact at a customer level. The Company adopted this guidance on January 1, 2018, and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In November 2015, the FASB issued ASU 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes". The amendments in ASU 2015-17 eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments in this ASU are effective for public business entities for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The amendments may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this change prospectively on January 1, 2017 and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01, among other things, requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); requires separate presentation in other comprehensive income for the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The update is effective for interim and annual reporting periods beginning after December 15, 2017, using a cumulative-effect adjustment to the balance sheet as of the beginning of the year adopted. The Company adopted this guidance on January 1, 2018, and the adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU) No. 2016-02, “Leases (Topic 842).” Under ASU 2016-02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard using a modified retrospective approach for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. When adopted, the Company does not expect ASU 2016-02 to have a material impact on its results of operations, equity or cash flows. The impact of this ASU on the Company’s consolidated financial position will be based on leases outstanding at the time of adoption. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. This ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. The Company adopted this change prospectively on January 1, 2017 and did not adjust prior periods. The amendments allow for a one-time accounting policy election to either account for forfeitures as they occur or continue to estimate forfeitures as required by current guidance. The Company has elected to continue estimating forfeitures under the current guidance. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326).” This update requires companies to measure all expected credit losses for financial assets held at the reporting date. The standard also amends the accounting for credit losses on available-for-sale debt securities, purchased financial assets with credit deterioration and trade and other receivables. The standard will take effect for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The update amends the guidance in Accounting Standards Codification 230, Statement of Cash Flows, and clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows with the objective of reducing the existing diversity in practice related to eight specific cash flow issues. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (ASU 2016-18). This ASU clarifies certain existing principles in FASB ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs will be effective for the Company’s fiscal year beginning December 1, 2018 and subsequent interim periods. Early adoption is permitted. The adoption of ASU 2016-15 and ASU 2016-18 will modify the Company's current disclosures and reclassifications within the consolidated statements of cash flows but they are not expected to have a material effect on the Company’s consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” This ASU requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The adoption of this standard should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance on January 1, 2018, which resulted in a $7.8 million cumulative effect adjustment to opening retained earnings. The adoption of this ASU did not have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business.” The amendments in this Update is to clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Accounting for Goodwill Impairment." The update removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those periods. Early adoption is permitted. The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting.” The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. This ASU is effective for annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” This ASU improves certain aspects of the hedge accounting model including making more risk management strategies eligible for hedge accounting and simplifying the assessment of hedge effectiveness. ASU 2017-12 is effective for all annual periods beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted and requires a prospective adoption with a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption for existing hedging relationships. The Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements

Acquisition of CashCall Mortgage (Tables)

12 Months Ended

Dec. 31, 2017

Acquisition of CashCall Mortgage

Schedule of purchase price allocation


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		3,033
Total assets acquired		36,155
Liabilities assumed:
Total liabilities assumed		—
Goodwill	$	104,587

(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 Year Ended
	December 31,
	2015
Revenues	$	185,357
Other (expense) income		(12,143)
Expenses		(166,111)
Pretax net earnings (loss)	$	7,103

Mortgage Loans Held-for-Sale (Tables)

12 Months Ended

Dec. 31, 2017

Mortgage Loans Held-for-Sale

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


	For the Year Ended
	December 31,
	2017		2016		2015
Gain on sale of mortgage loans	$	187,204	$	321,392	$	232,552
Premium from servicing retained loan sales		56,049		128,273		98,103
Unrealized (losses) gains from derivative financial instruments		(6,412)		2,326		6,827
Realized (losses) gains from derivative financial instruments		(4,576)		6,224		(7,045)
Mark to market gain (loss) on LHFS		8,367		(22)		404
Direct origination expenses, net		(102,928)		(146,797)		(160,623)
Provision for repurchases		(1,557)		(379)		(1,012)
Total gain on sale of loans, net	$	136,147	$	311,017	$	169,206

Finance Receivables (Tables)

12 Months Ended

Dec. 31, 2017

Accounts Receivable Additional Disclosures [Abstract]

Summary of outstanding warehouse lines to non-affiliated customers and outstanding


	December 31,
	2017		2016
Uncommitted warehouse lines to non-affiliated customers	$	123,000	$	175,500
Outstanding balance		41,777		62,937

Mortgage Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2017

Mortgage Servicing Rights

Schedule of changes in the fair value of MSRs


	December 31,		December 31,
	2017		2016
Balance at beginning of period	$	131,537	$	36,425
Additions from servicing retained loan sales		56,049		128,273
Addition from purchases		5,618		—
Reductions from bulk sales (1)		(895)		(8,773)
Changes in fair value (2)		(37,904)		(24,388)
Fair value of MSRs at end of period	$	154,405	$	131,537

(1)

In the first quarter of 2017, the Company sold all but a small portion of its NonQM MSRs.

(2)

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

	December 31,		December 31,
	2017		2016
Government insured	$	2,834,680	$	1,359,569
Conventional (1)		13,493,463		10,815,998
NonQM		1,957		175,955
Total loans serviced	$	16,330,100	$	12,351,522

Schedule of hypothetical changes in the fair values of MSRs


	December 31,		December 31,
Mortgage Servicing Rights Sensitivity Analysis	2017		2016
Fair value of MSRs	$	154,405	$	131,537
Prepayment Speed:
Decrease in fair value from 10% adverse change		(5,643)		(4,956)
Decrease in fair value from 20% adverse change		(11,275)		(9,593)
Decrease in fair value from 30% adverse change		(16,807)		(13,940)
Discount Rate:
Decrease in fair value from 10% adverse change		(5,461)		(4,927)
Decrease in fair value from 20% adverse change		(10,555)		(9,511)
Decrease in fair value from 30% adverse change		(15,316)		(13,786)

Schedule of Loss on mortgage servicing rights


	For the Year Ended
	December 31,
	2017		2016		2015
Change in fair value of mortgage servicing rights	$	(37,904)	$	(24,388)	$	(10,939)
Loss on sale of mortgage servicing rights		(93)		(10,688)		(8,046)
Realized and unrealized gains (losses) from hedging instruments		2,117		(1,365)		387
Loss on mortgage servicing rights, net	$	(35,880)	$	(36,441)	$	(18,598)

Schedule of components of servicing income


	For the Year Ended
	December 31,
	2017		2016		2015
Contractual servicing fees	$	38,025	$	17,497	$	8,547
Late and ancillary fees		409		174		129
Subservicing and other costs		(6,532)		(3,937)		(2,574)
Servicing fees, net	$	31,902	$	13,734	$	6,102

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets.

Summary of changes in carrying amount of goodwill


Balance at December 31, 2015	$	104,938
Additions (Impairment)		—
Balance at December 31, 2016	$	104,938
Impairment (1)		(351)
Balance at December 31, 2017	$	104,587

Summary of intangible assets acquired

	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2017		Remaining Life
Intangible assets:
Trademark	$	17,251	$	(3,216)	$	14,035	12.0
Customer relationships		10,170		(4,143)		6,027	4.0
Non-compete agreement		5,701		(4,181)		1,520	1.0
Total intangible assets acquired	$	33,122	$	(11,540)	$	21,582	9.0


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2016
Intangible assets:
Trademark	$	17,251	$	(2,047)	$	15,204
Customer relationships		10,170		(2,637)		7,533
Non-compete agreement		5,701		(2,660)		3,041
Total intangible assets acquired	$	33,122	$	(7,344)	$	25,778

Summary of estimated aggregate amortization expense


Amortization Expense
2018	$	4,197
2019		2,676
2020		2,676
2021		2,676
2022 and thereafter		9,357
Total future amortization expense	$	21,582

Other Assets (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of other assets


	December 31,		December 31,
	2017		2016
Deferred charge (See Note 13)	$	7,827	$	8,685
Accounts receivable, net		5,401		6,953
Derivative assets – lending (See Note 11)		4,777		11,169
Deferred tax asset, net (See Note 15)		4,315		24,420
Prepaid expenses		3,001		3,179
Servicing advances		2,853		3,075
Accrued interest receivable		1,397		333
Developed software, net		1,145		1,717
Premises and equipment, net		862		976
Other		1,644		341
Total other assets	$	33,222	$	60,848

Summary of intangible assets acquired

	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2017		Remaining Life
Intangible assets:
Trademark	$	17,251	$	(3,216)	$	14,035	12.0
Customer relationships		10,170		(4,143)		6,027	4.0
Non-compete agreement		5,701		(4,181)		1,520	1.0
Total intangible assets acquired	$	33,122	$	(11,540)	$	21,582	9.0


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2016
Intangible assets:
Trademark	$	17,251	$	(2,047)	$	15,204
Customer relationships		10,170		(2,637)		7,533
Non-compete agreement		5,701		(2,660)		3,041
Total intangible assets acquired	$	33,122	$	(7,344)	$	25,778

Schedule of premises and equipment and accumulated depreciation


	December 31,
	2017		2016
Premises and equipment	$	16,928	$	16,467
Less: Accumulated depreciation		(16,066)		(15,491)
Total premises and equipment, net	$	862	$	976

Developed software

Summary of intangible assets acquired




	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2017		Remaining Life
Other assets:
Developed software	$	2,719	$	(1,574)	$	1,145	2.0


	Gross Carrying		Accumulated		Net Carrying Amount
	Amount		Amortization		at December 31, 2016
Other assets:
Developed software	$	2,719	$	(1,002)	$	1,717

Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Instrument [Line Items]

Schedule of contractual reductions of debt


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	575,363	$	575,363	$	—	$	—	$	—
MSR financings		35,133		10,000		25,133		—		—
2015 Convertible notes		24,974		—		24,974		—		—
Long-term debt		62,000		—		—		—		62,000
Total Debt Obligations	$	697,470	$	585,363	$	50,107	$	—	$	62,000

Schedule of information on warehouse borrowings

The following table presents certain information on warehouse borrowings for the periods indicated:


	Maximum		Balance Outstanding At				Allowable
	Borrowing		December 31,		December 31,		Advance	Rate
	Capacity		2017		2016		Rates (%)	Range	Maturity Date
Short-term borrowings:
Repurchase agreement 1	$	150,000	$	100,630	$	106,609	90 - 98	1ML + 2.75 - 4.13%	June 15, 2018
Repurchase agreement 2		35,000		31,632		44,761	90 - 98	Prime + 0.0 - 0.50%	May 28, 2018
Repurchase agreement 3 (1)		225,000		154,020		125,320	85 - 97	Base Rate + 2.50%	December 21, 2018
Repurchase agreement 4 (2)		250,000		152,772		52,067	99	1ML + 2.55%	March 29, 2018
Repurchase agreement 5 (3)		100,000		88,920		56,655	100	Note Rate - 0.50%	March 31, 2018
Repurchase agreement 6		200,000		47,389		35,161	95 - 98	1ML + 2.15 - 2.40%	June 28, 2018
Total warehouse borrowings	$	960,000	$	575,363	$	420,573

(1)

As of December 31, 2017 and 2016, the balance outstanding includes $41.8 million and $62.9 million, respectively, attributable to finance receivables made to the Company’s warehouse customers.

(2)

In February 2018, the maturity of the line was extended to March 29, 2018.

(3)

In February 2018, the Company increased the maximum borrowing capacity to $175.0 million from $100.0 million.

The following table presents certain information on warehouse borrowings for the periods indicated:


	For the year ended
	December 31,
	2017			2016
Maximum outstanding balance during the year	$	627,175		$	880,111
Average balance outstanding for the year		414,149			449,598
Underlying collateral (mortgage loans)		591,403			436,887
Weighted average rate for period		4.06	%		3.40	%

Trust Preferred Securities

Debt Instrument [Line Items]

Schedule of remaining principal balance and fair value


	December 31,
	2017		2016
Trust Preferred Securities	$	—	$	8,500
Common securities		—		263
Fair value adjustment		—		(3,197)
Total Trust Preferred Securities	$	—	$	5,566

Junior Subordinated Notes

Debt Instrument [Line Items]

Schedule of remaining principal balance and fair value


	December 31,
	2017		2016
Junior Subordinated Notes (1)	$	62,000	$	62,000
Fair value adjustment		(17,018)		(20,359)
Total Junior Subordinated Notes	$	44,982	$	41,641

(1)

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Securitized Mortgage Trusts (Tables)

12 Months Ended

Dec. 31, 2017

Securitized Mortgage Collateral

Schedule of trust assets


	December 31,		December 31,
	2017		2016
Securitized mortgage collateral	$	3,662,008	$	4,021,891
REO		8,542		11,399
Total securitized mortgage trust assets	$	3,670,550	$	4,033,290

Summary of securitized mortgage collateral


	December 31,
	2017		2016
Mortgages secured by residential real estate	$	3,840,819	$	4,500,719
Mortgages secured by commercial real estate		347,323		426,494
Fair value adjustment		(526,134)		(905,322)
Total securitized mortgage collateral	$	3,662,008	$	4,021,891

Schedule of real estate owned


	December 31,
	2017		2016
REO	$	15,519	$	25,802
Impairment (1)		(6,977)		(14,403)
Total	$	8,542	$	11,399

(1)

Impairment represents the cumulative write‑downs of net realizable value subsequent to foreclosure.

Schedule of trust liabilities


	December 31,		December 31,
	2017		2016
Securitized mortgage borrowings	$	3,653,265	$	4,017,603

Schedule of securitized mortgage borrowings


			Securitized
			mortgage
			borrowings
			outstanding as of
			December 31,				Range of Interest Rates
								Interest	Interest
								Rate	Rate
	Original						Fixed	Margins over	Margins after
	Issuance						Interest	One-Month	Contractual
Year of Issuance	Amount		2017		2016		Rates	LIBOR (1)	Call Date (2)
2002	$	3,876.1	$	6.2	$	8.8	5.25 - 12.00	0.27 - 2.75	0.54 - 3.68
2003		5,966.1		48.2		62.8	4.34 - 12.75	0.27 - 3.00	0.54 - 4.50
2004		17,710.7		526.7		640.0	3.58 - 5.56	0.25 - 2.50	0.50 - 3.75
2005		13,387.7		1,938.1		2,163.1	—	0.24 - 2.90	0.48 - 4.35
2006		5,971.4		2,412.8		2,617.8	6.25	0.1 - 2.75	0.20 - 4.13
2007		3,860.5		1,407.7		1,589.6	—	0.06 - 2.00	0.12 - 3.00
Subtotal contractual principal balance (3)				6,339.7		7,082.1
Fair value adjustment				(2,686.4)		(3,064.5)
Total securitized mortgage borrowings			$	3,653.3	$	4,017.6

(1)

One-month LIBOR was 1.56% as of December 31, 2017.

(2)

Interest rate margins are generally adjusted when the unpaid principal balance is reduced to less than 10‑20% of the original issuance amount, or if certain other triggers are met.

(3)

Represents the outstanding balance in accordance with trustee reporting.

Schedule of expected principal reductions of securitized mortgage borrowings


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Warehouse borrowings	$	575,363	$	575,363	$	—	$	—	$	—
MSR financings		35,133		10,000		25,133		—		—
2015 Convertible notes		24,974		—		24,974		—		—
Long-term debt		62,000		—		—		—		62,000
Total Debt Obligations	$	697,470	$	585,363	$	50,107	$	—	$	62,000

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


	For the Year Ended
	December 31,
	2017		2016		2015
Change in fair value of net trust assets, excluding REO	$	(1,212)	$	5,630	$	957
Gains (losses) from REO		7,425		(5,934)		(6,595)
Change in fair value of net trust assets, including trust REO gains (losses)	$	6,213	$	(304)	$	(5,638)

Securitized mortgage borrowings

Securitized Mortgage Collateral

Schedule of expected principal reductions of securitized mortgage borrowings


	Payments Due by Period
			Less Than		One to		Three to		More Than
	Total		One Year		Three Years		Five Years		Five Years
Securitized mortgage borrowings (1)	$	6,339.7	$	581.6	$	886.7	$	632.4	$	4,239.0

(1)

Represents the outstanding balance in accordance with trustee reporting.

Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments

Schedule of information for derivative assets and liabilities - lending


					Total Gains (Losses) (1)
	Notional Amount				For the Year Ended
	December 31,		December 31,		December 31,
	2017		2016		2017		2016		2015
Derivative – IRLC's	$	398,225	$	558,538	$	(6,812)	$	1,985	$	6,300
Derivative – TBA MBS		687,500		492,157		(2,061)		5,201		(6,132)

(1)

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

- 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 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
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-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value of Financial Instruments

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


	December 31, 2017								December 31, 2016
	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	$	33,223	$	33,223	$	—	$	—	$	40,096	$	40,096	$	—	$	—
Restricted cash		5,876		5,876		—		—		5,971		5,971		—		—
Mortgage loans held-for-sale		568,781		—		568,781		—		388,422		—		388,422		—
Finance receivables		41,777		—		41,777		—		62,937		—		62,937		—
Mortgage servicing rights		154,405		—		—		154,405		131,537		—		—		131,537
Derivative assets, lending, net		4,777		—		420		4,357		11,169		—		—		11,169
Securitized mortgage collateral		3,662,008		—		—		3,662,008		4,021,891		—		—		4,021,891

Liabilities
Warehouse borrowings	$	575,363	$	—	$	575,363	$	—	$	420,573	$	—	$	420,573	$	—
MSR financings		35,133		—		—		35,133		—		—		—		—
Term financing		—		—		—		—		29,910		—		—		29,910
Convertible notes		24,974		—		—		24,974		24,965		—		—		24,965
Contingent consideration		554		—		—		554		31,072		—		—		31,072
Long-term debt		44,982		—		—		44,982		47,207		—		—		47,207
Securitized mortgage borrowings		3,653,265		—		—		3,653,265		4,017,603		—		—		4,017,603
Derivative liabilities, lending, net		—		—		—		—		336		—		336		—

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

	Recurring Fair Value Measurements
	December 31, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Mortgage loans held-for-sale	$	—	$	568,781	$	—	$	—	$	388,422	$	—
Derivative assets, lending, net (1)		—		420		4,357		—		—		11,169
Mortgage servicing rights		—		—		154,405		—		—		131,537
Securitized mortgage collateral		—		—		3,662,008		—		—		4,021,891
Total assets at fair value	$	—	$	569,201	$	3,820,770	$	—	$	388,422	$	4,164,597
Liabilities
Securitized mortgage borrowings	$	—	$	—	$	3,653,265	$	—	$	—	$	4,017,603
Long-term debt		—		—		44,982		—		—		47,207
Contingent consideration		—		—		554		—		—		31,072
Derivative liabilities, lending, net (2)		—		—		—		—		336		—
Total liabilities at fair value	$	—	$	—	$	3,698,801	$	—	$	336	$	4,095,882

(1)

(2)

At December 31, 2017, 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 Year Ended December 31, 2017

	Investment								Interest
	securities		Securitized		Securitized		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		rights		net		debt		consideration
Fair value, December 31, 2016	$	—	$	4,021,891	$	(4,017,603)	$	131,537	$	11,169	$	(47,207)	$	(31,072)
Total gains (losses) included in earnings:
Interest income (1)		—		46,077		—		—		—		—		—
Interest expense (1)		—		—		(131,507)		—		—		(760)		—
Change in fair value		—		245,364		(246,576)		(37,904)		(6,812)		(2,949)		11,268
Total gains (losses) included in earnings		—		291,441		(378,083)		(37,904)		(6,812)		(3,709)		11,268
Transfers in and/or out of Level 3		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		5,618		—		—		—
Issuances		—		—		—		56,049		—		—		—
Settlements		—		(651,324)		742,421		(895)		—		5,934		19,250
Fair value, December 31, 2017	$	—	$	3,662,008	$	(3,653,265)	$	154,405	$	4,357	$	(44,982)	$	(554)
Unrealized gains (losses) still held (2)	$	—	$	(526,134)	$	2,686,398	$	154,405	$	4,357	$	17,018	$	(554)

(1)

(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 December 31, 2017.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2016
							Derivative
	Investment						liabilities,				Interest
	securities		Securitized		Securitized		net,		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		securitized		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		trusts		rights		net		debt		consideration
Fair value, December 31, 2015	$	26	$	4,574,919	$	(4,578,657)	$	(1,669)	$	36,425	$	9,184	$	(31,898)	$	(48,079)
Total gains (losses) included in earnings:
Interest income (1)		2		57,176		—		—		—		—		—		—
Interest expense (1)		—		—		(182,903)		—		—		—		(873)		—
Change in fair value		19		49,347		(43,503)		(233)		(24,388)		1,985		(14,436)		(37,142)
Total gains (losses) included in earnings		21		106,523		(226,406)		(233)		(24,388)		1,985		(15,309)		(37,142)
Transfers in and/or out of Level 3		—		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—		—		—		—
Issuances		—		—		—		—		128,273		—		—		—
Settlements		(47)		(659,551)		787,460		1,902		(8,773)		—		—		54,149
Fair value, December 31, 2016	$	—	$	4,021,891	$	(4,017,603)	$	—	$	131,537	$	11,169	$	(47,207)	$	(31,072)
Unrealized gains (losses) still held (2)	$	—	$	(905,322)	$	3,064,481	$	—	$	131,537	$	11,169	$	23,556	$	(31,072)

(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. Net interest income, including cash received and paid, was $9.9 million for the year ended December 31, 2016. 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 December 31, 2016.


	Level 3 Recurring Fair Value Measurements
	For the Year Ended December 31, 2015
							Derivative
	Investment						liabilities,				Interest
	securities		Securitized		Securitized		net,		Mortgage		rate lock		Long-
	available-		mortgage		mortgage		securitized		servicing		commitments,		term		Contingent
	for-sale		collateral		borrowings		trusts		rights		net		debt		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)		10		64,256		—		—		—		—		—		—		—
Interest expense (1)		—		—		(211,272)		—		—		—		(1,115)		—		—
Change in fair value		15		(49,052)		50,481		(487)		(10,939)		6,300		(8,661)		37,778		(84)
Total gains (losses) included in earnings		25		15,204		(160,791)		(487)		(10,939)		6,300		(9,776)		37,778		(84)
Transfers in and/or out of Level 3		—		—		—		—		—		—		—		—		—
Purchases, issuances and settlements:
Purchases		—		—		—		—		—		—		—		—		—
Issuances		—		—		—		—		98,103		—		—		(124,592)		—
Settlements		(91)		(689,924)		827,994		4,265		(75,157)		—		—		38,735		—
Fair value, December 31, 2015	$	26	$	4,574,919	$	(4,578,657)	$	(1,669)	$	36,425	$	9,184	$	(31,898)	$	(48,079)	$	—
Unrealized gains (losses) still held (2)	$	26	$	(1,147,971)	$	3,291,072	$	(1,485)	$	36,425	$	9,184	$	38,865	$	(48,079)	$	—

(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. Net interest income, including cash received and paid, was $8.3 million for the year ended December 31, 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 December 31, 2015.

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


	Estimated		Valuation	Unobservable	Range of		Weighted
Financial Instrument	Fair Value		Technique	Input	Inputs		Average
Assets and liabilities backed by real estate
Securitized mortgage collateral, and	$	3,662,008	DCF	Prepayment rates	2.2 - 25.1	%	8.0	%
Securitized mortgage borrowings		(3,653,265)		Default rates	0.01 - 4.2	%	1.3	%
				Loss severities	9.9 - 84.7	%	47.0	%
				Discount rates	3.6 - 25.0	%	4.4	%
Other assets and liabilities
Mortgage servicing rights	$	154,405	DCF	Discount rate	9.0 - 14.0	%	9.6	%
				Prepayment rates	8.0 - 88.8	%	12.2	%
Derivative assets - IRLCs, net		4,357	Market pricing	Pull-through rate	15.1 - 99.9	%	83.4	%
Long-term debt		(44,982)	DCF	Discount rate	9.5	%	9.5	%
Contingent consideration		(554)	DCF	Discount rate	—	%	—	%
				Margins	—	%	—	%
				Probability of outcomes (1)	—	%	—	%

DCF = Discounted Cash Flow

1M = 1 Month

(1)

Schedule of changes in recurring fair value measurements included in net earnings


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Earnings
	For the Year Ended December 31, 2017
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of loans, net		Total
Investment securities available-for-sale	$	—	$	—	$	—		$	—	$	—	$	—	$	—
Securitized mortgage collateral		46,077		—		245,364			—		—		—		291,441
Securitized mortgage borrowings		—		(131,507)		(246,576)			—		—		—		(378,083)
Derivative liabilities, net, securitized trusts		—		—		—			—		—		—		—
Long-term debt		—		(760)		—			(2,949)		—		—		(3,709)
Mortgage servicing rights (2)		—		—		—			—		(37,904)		—		(37,904)
Contingent consideration (3)		—		—		—			—		11,268		—		11,268
Mortgage loans held-for-sale		—		—		—			—		—		8,367		8,367
Derivative assets — IRLCs		—		—		—			—		—		(6,812)		(6,812)
Derivative liabilities — Hedging Instruments		—		—		—			—		357		400		757
Total	$	46,077	$	(132,267)	$	(1,212)	(4)	$	(2,949)	$	(26,279)	$	1,955	$	(114,675)

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

(3)

Includes $2.1 million of accretion of the contingent consideration liability.

(4)

For the year ended December 31, 2017, change in the fair value of trust assets, excluding REO was $1.2 million.


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Earnings
	For the Year Ended December 31, 2016
					Change in Fair Value of
	Interest		Interest		Net Trust			Long-term		Other Revenue		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		and Expense		of loans, net		Total
Investment securities available-for-sale	$	2	$	—	$	19		$	—	$	—	$	—	$	21
Securitized mortgage collateral		57,176		—		49,347			—		—		—		106,523
Securitized mortgage borrowings		—		(182,903)		(43,503)			—		—		—		(226,406)
Derivative liabilities, net, securitized trusts		—		—		(233)	(2)		—		—		—		(233)
Long-term debt		—		(873)		—			(14,436)		—		—		(15,309)
Mortgage servicing rights (3)		—		—		—			—		(24,388)		—		(24,388)
Contingent consideration		—		—		—			—		(37,142)		—		(37,142)
Mortgage loans held-for-sale		—		—		—			—		—		(22)		(22)
Derivative assets — IRLCs		—		—		—			—		—		1,985		1,985
Derivative liabilities — Hedging Instruments		—		—		—			—		(362)		341		(21)
Total	$	57,178	$	(183,776)	$	5,630	(4)	$	(14,436)	$	(61,892)	$	2,304	$	(194,992)

(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.

(4)


	Recurring Fair Value Measurements
	Changes in Fair Value Included in Net Earnings
	For the Year Ended December 31, 2015
					Change in Fair Value of
	Interest		Interest		Net Trust			long-term		Other		Gain on sale
	Income (1)		Expense (1)		Assets			Debt		Revenue		of loans, net		Total
Investment securities available-for-sale	$	10	$	—	$	15		$	—	$	—	$	—	$	25
Securitized mortgage collateral		64,256		—		(49,052)			—		—		—		15,204
Securitized mortgage borrowings		—		(211,272)		50,481			—		—		—		(160,791)
Derivative liabilities, net, securitized trusts		—		—		(487)	(2)		—		—		—		(487)
Long-term debt		—		(1,115)		—			(8,661)		—		—		(9,776)
Mortgage servicing rights (3)		—		—		—			—		(10,939)		—		(10,939)
Warrant		—		—		—			—		(84)		—		(84)
Contingent consideration		—		—		—			—		37,778		—		37,778
Mortgage loans held-for-sale		—		—		—			—		—		404		404
Derivative assets — IRLCs		—		—		—			—		—		6,300		6,300
Derivative liabilities — Hedging Instruments		—		—		—			—		89		527		616
Total	$	64,266	$	(212,387)	$	957	(4)	$	(8,661)	$	26,844	$	7,231	$	(121,750)

(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.

(4)

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

The following table presents financial and non‑financial assets and liabilities measured using nonrecurring fair value measurements at December 31, 2017 and 2016, respectively:


	Nonrecurring Fair Value Measurements
	December 31, 2017						December 31, 2016
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
REO (1)	$	—	$	440	$	—	$	—	$	212	$	—
Deferred charge		—		—		7,827		—		—		8,685

(1)

Balance represents REO at December 31, 2017 and December 31, 2016 which has been impaired subsequent to foreclosure.


	Total Gains (Losses) (1)
	For the Year Ended December 31,
	2017		2016		2015
REO (2)	$	7,425	$	(5,934)	$	(6,595)
Lease liability (3)		—		—		(53)
Deferred charge (4)		(858)		(1,278)		(1,558)

(1)

Total losses reflect losses from all nonrecurring measurements during the period.

(2)

(3)

(4)

Reconciliation of Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Reconciliation of Earnings Per Share

Schedule of computation of basic and diluted earnings per common share


	For the Year Ended
	December 31,
	2017		2016		2015
Numerator for basic earnings per share:
Net (loss) earnings	$	(31,521)	$	46,670	$	80,799

Numerator for diluted (loss) earnings per share:
Net (loss) earnings	$	(31,521)	$	46,670	$	80,799
Interest expense attributable to convertible notes		—		2,463		2,719
Net (loss) earnings plus interest expense attributable to convertible notes	$	(31,521)	$	49,133	$	83,518

Denominator for basic (loss) earnings per share (1):
Basic weighted average common shares outstanding during the period		19,438		13,193		10,094

Denominator for diluted (loss) earnings per share (1):
Basic weighted average common shares outstanding during the period		19,438		13,193		10,094
Net effect of dilutive convertible notes		—		1,359		2,597
Net effect of dilutive stock options and DSU’s		—		304		354
Diluted weighted average common shares		19,438		14,856		13,045
Net (loss) earnings per common share:
Basic	$	(1.62)	$	3.54	$	8.00
Diluted	$	(1.62)	$	3.31	$	6.40

(1)

Share amounts presented in thousands.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Taxes

Schedule of income taxes


	For the year ended December 31,
	2017		2016		2015
Current income taxes:
Federal	$	71	$	907	$	2,149
State		(37)		186		395
Total current income tax expense		34		1,093		2,544
Deferred income taxes:
Federal		17,610		—		(21,367)
State		2,494		—		(3,053)
Total deferred income tax expense (benefit)		20,104		—		(24,420)
Total income tax expense (benefit)	$	20,138	$	1,093	$	(21,876)

Schedule of deferred tax assets and liabilities temporary differences between the financial statement carrying value and the tax basis of assets


	For the year ended December 31,
	2017		2016
Deferred tax assets:
Federal and state net operating losses	$	181,681	$	226,001
Mortgage securities		54,657		112,302
Depreciation and amortization		—		337
Capital loss carryover		163		—
Compensation and other accruals		5,452		7,922
Repurchase reserve		1,861		2,430
Total gross deferred tax assets		243,814		348,992
Deferred tax liabilities:
Fair value (1)		(8,940)		(10,869)
Mortgage servicing rights		(46,104)		(59,096)
Depreciation and amortization		(874)		—
Total gross deferred tax liabilities		(55,918)		(69,965)
Valuation allowance		(183,581)		(254,607)
Total net deferred tax assets	$	4,315	$	24,420

Schedule of a reconciliation of income taxes to the statutory federal corporate income tax rates


	For the year ended December 31,
	2017		2016		2015
Expected income tax expense (benefit)	$	(3,984)	$	16,717	$	20,623
State tax (benefit), net of federal benefit		32		185		256
State rate change		12		(153)		—
Change in valuation allowance		(66,355)		(17,002)		(44,163)
Federal rate change		89,518		—		—
Deferred charge		858		1,278		1,558
Other		57		68		(150)
Total income tax expense (benefit)	$	20,138	$	1,093	$	(21,876)

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting

Reconciliation of earnings from segment to consolidated


Statement of Operations Items for the	Mortgage		Real Estate		Long-term			Corporate
Year Ended December 31, 2017:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	136,147	$	—	$	—	$	—	$	136,147
Real estate services fees, net		—		5,856		—		—		5,856
Servicing fees, net		31,902		—		—		—		31,902
Loss on mortgage servicing rights, net		(35,880)		—		—		—		(35,880)
Other revenue		22		—		273		385		680
Accretion of contingent consideration		(2,058)		—		—		—		(2,058)
Change in fair value of contingent consideration		13,326		—		—		—		13,326
Loss on extinguishment of debt		—		—		(1,265)		—		(1,265)
Other operating expense		(143,002)		(3,610)		(339)		(20,747)		(167,698)
Other income (expense)		2,931		—		6,903		(2,227)		7,607
Net earnings (loss) before income tax expense	$	3,388	$	2,246	$	5,572	$	(22,589)		(11,383)
Income tax expense										20,138
Net loss									$	(31,521)


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2016:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	311,017	$	—	$	—	$	—	$	311,017
Real estate services fees, net		—		8,395		—		—		8,395
Servicing fees, net		13,734		—		—		—		13,734
Loss on mortgage servicing rights, net		(36,441)		—		—		—		(36,441)
Other revenue		79		—		242		730		1,051
Accretion of contingent consideration		(6,997)		—		—		—		(6,997)
Change in fair value of contingent consideration		(30,145)		—		—		—		(30,145)
Change in fair value of long-term debt		—		—		(14,436)				(14,436)
Other operating expense		(185,231)		(6,536)		(418)		(8,716)		(200,901)
Other (expense) income		2,582		—		5,439		(5,535)		2,486
Net earnings (loss) before income tax expense	$	68,598	$	1,859	$	(9,173)	$	(13,521)	$	47,763
Income tax expense										1,093
Net earnings									$	46,670


Statement of Operations Items for the	Mortgage		Real Estate		Long-term		Corporate
Year Ended December 31, 2015:	Lending		Services		Portfolio		and other		Consolidated
Gain on sale of loans, net	$	169,206	$	—	$	—	$	—	$	169,206
Real estate services fees, net		—		9,850		—		—		9,850
Servicing fees, net		6,102		—		—		—		6,102
Loss on mortgage servicing rights		(18,598)		—		—		—		(18,598)
Other revenue		25		—		263		109		397
Accretion of contingent consideration		(8,142)		—		—		—		(8,142)
Change in fair value of contingent consideration		45,920		—		—		—		45,920
Change in fair value of long-term debt		—		—		(8,661)		—		(8,661)
Other operating expense		(119,261)		(5,951)		(677)		(7,569)		(133,458)
Other (expense) income		2,037		—		(1,125)		(4,605)		(3,693)
Net earnings (loss) before income tax expense	$	77,289	$	3,899	$	(10,200)	$	(12,065)	$	58,923
Income tax benefit										(21,876)
Net earnings									$	80,799

Reconciliation of assets from segment to consolidated


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2017:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	31,784	$	235	$	—	$	1,204	$	33,223
Restricted cash		5,876		—		—		—		5,876
Mortgage loans held-for-sale		568,781		—		—		—		568,781
Finance receivables		41,777		—		—		—		41,777
Mortgage servicing rights		154,405		—		—		—		154,405
Trust assets		—		—		3,670,550		—		3,670,550
Goodwill		104,587		—		—		—		104,587
Other assets (1)		85,773		16		7,827		8,885		102,501
Total assets		992,983		251		3,678,377		10,089		4,681,700
Total liabilities		678,392		47		3,698,639		39,475		4,416,553


Balance Sheet Items as of	Mortgage		Real Estate		Long-term		Corporate
December 31, 2016:	Lending		Services		Portfolio		and other		Consolidated
Cash and cash equivalents	$	14,026	$	166	$	—	$	25,904	$	40,096
Restricted cash		5,971		—		—		—		5,971
Mortgage loans held-for-sale		388,422		—		—		—		388,422
Finance receivables		62,937		—		—		—		62,937
Mortgage servicing rights		131,537		—		—		—		131,537
Trust assets		—		—		4,033,290		—		4,033,290
Goodwill		104,587		351		—		—		104,938
Other assets (1)		55,444		4,934		8,983		27,182		96,543
Total assets		762,924		5,451		4,042,273		53,086		4,863,734
Total liabilities		551,110		7,741		4,065,221		8,622		4,632,694

(1)

All segment asset balances exclude intercompany balances.

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies

Schedule of future minimum commitments under non-cancelable leases


	Operating		Capital
	Leases		Leases		Total
Year 2018	$	5,822	$	211	$	6,033
Year 2019		5,592		82		5,674
Year 2020		4,560		—		4,560
Year 2021		4,620		—		4,620
Year 2022 and thereafter		13,065		—		13,065
Total lease commitments	$	33,659	$	293	$	33,952

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


	December 31,		December 31,
	2017		2016
Beginning balance	$	5,408	$	5,236
Provision for repurchases		1,557		379
Settlements		(945)		(207)
Total repurchase reserve	$	6,020	$	5,408

Share Based Payments and Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

Share Based Payments and Employee Benefit Plans

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



	For the year ended December 31,
	2017		2016		2015
Risk-free interest rate		1.77 - 2.29%		1.16%		1.54 - 1.76%
Expected lives (in years)		5.54 - 5.63		5.47		5.50 - 5.73
Expected volatility		43.59 - 45.34%		49.71%		49.53 - 79.56%
Expected dividend yield		0.00%		0.00%		0.00%
Fair value per share	$	4.34 - 5.98	$	7.95	$	6.74 - 9.96

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


	For the year ended December 31,
	2017			2016			2015
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
	Number of	Exercise		Number of	Exercise		Number of	Exercise
	Shares	Price		Shares	Price		Shares	Price
Options outstanding at beginning of year	1,391,327	$	13.37	1,115,280	$	11.85	1,078,230	$	6.88
Options granted	388,450		13.43	342,000		17.40	405,800		19.59
Options exercised	(94,051)		6.30	(42,954)		5.10	(243,971)		3.98
Options forfeited/cancelled	(102,972)		16.26	(22,999)		15.50	(124,779)		9.44
Options outstanding at end of year	1,582,754		13.61	1,391,327		13.37	1,115,280		11.85
Options exercisable at end of year	921,387	$	12.15	705,488	$	10.25	476,998	$	8.23

Schedule of aggregate intrinsic value


	As of December 31,
	2017			2016
	Weighted-			Weighted-
	Average	Aggregate		Average	Aggregate
	Remaining	Intrinsic		Remaining	Intrinsic
	Life	Value		Life	Value
	(Years)	(in thousands)		(Years)	(in thousands)
Options outstanding at end of year	6.83	$	1,810	7.69	$	4,293
Options exercisable at end of year	5.29	$	1,803	6.50	$	3,402

Schedule of additional information regarding stock options outstanding


		Stock Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-				Weighted-
Exercise			Remaining	Average				Average
Price		Number	Contractual	Exercise		Number		Exercise
Range		Outstanding	Life in Years	Price		Exercisable		Price
$	0 - 2.80	115,988	2.43	$	2.43	115,988	$	2.43
	2.81 - 5.39	189,165	5.41		5.39	189,165		5.39
	5.40 - 10.65	188,666	5.94		10.42	147,000		10.55
	10.66 - 13.72	319,300	9.67		13.72	—		—
	13.73 - 16.43	143,499	4.13		13.85	142,833		13.83
	16.44 - 17.40	299,668	8.18		17.40	105,853		17.40
	17.41 - 21.50	326,468	6.90		20.52	220,548		20.52
$	2.80 - 21.50	1,582,754	6.83	$	13.61	921,387	$	12.15

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


	For the year ended December 31,
	2017			2016			2015
		Weighted-			Weighted-			Weighted-
		Average			Average			Average
	Number of	Grant Date		Number of	Grant Date		Number of	Grant Date
	Shares	Fair Value		Shares	Fair Value		Shares	Fair Value
DSU’s outstanding at beginning of year	85,750	$	9.83	80,750	$	9.36	75,750	$	8.63
DSU’s granted	15,000		13.72	5,000		17.40	5,000		20.50
DSU’s exercised	—		—	—		—	—		—
DSU’s forfeited/cancelled	—		—	—		—	—		—
DSU’s outstanding at end of year	100,750	$	10.41	85,750	$	9.83	80,750	$	9.36

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2017

Selected Quarterly Financial Data - (unaudited)

Selected unaudited quarterly financial data


	For the three months ended
	March 31, 2017		June 30, 2017		September 30, 2017		December 31, 2017
Total revenues	$	45,342	$	39,633	$	42,076	$	11,654
Total expenses		(44,557)		(33,721)		(37,560)		(40,592)
Total other (expense) income		4,268		1,573		(95)		596
Earnings (loss) before income taxes		5,053		7,485		4,421		(28,342)
Income tax expense		426		1,045		2,104		16,563
Net earnings (loss)	$	4,627	$	6,440	$	2,317	$	(44,905)
Earnings (loss) per common share:
Basic	$	0.29	$	0.33	$	0.11	$	(2.14)
Diluted	$	0.29	$	0.32	$	0.11	$	(2.14)


	For the three months ended
	March 31, 2016		June 30, 2016		September 30, 2016		December 31, 2016
Total revenues	$	47,299	$	69,213	$	103,993	$	77,251
Total expenses		(45,155)		(60,891)		(81,359)		(50,638)
Total other (expense) income		(728)		4,352		(6,266)		(9,308)
Earnings before income taxes		1,416		12,674		16,368		17,305
Income tax (benefit) expense		435		423		(130)		365
Net earnings	$	981	$	12,251	$	16,498	$	16,940
Earnings per common share:
Basic	$	0.09	$	0.99	$	1.28	$	1.06
Diluted	$	0.08	$	0.92	$	1.18	$	1.00

Summary of Business and Financial Statement Presentation (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash and Cash Equivalents and Restricted Cash
Restricted cash		$ 5,876	$ 5,971
Mortgage Loans Held-for-Sale
Maximum past due period of principal or interest based on LHFS are placed on nonaccrual status		90 days
Derivative Instruments
Derivative liabilities		$ 0	$ 0
ASU 2016-06 \| Proforma adjustment
Recent Accounting Pronouncements
Cumulative effect adjustment to opening retained earnings	$ 7,800

Acquisition of CashCall Mortgage - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
	Jan. 06, 2015	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business combinations
Payment of acquisition related contingent consideration										$ 19,250	$ 54,149	$ 38,110
Revenues		$ 11,654	$ 42,076	$ 39,633	$ 45,342	$ 77,251	$ 103,993	$ 69,213	$ 47,299	138,705	297,756	166,957
Operating Expenses		40,592	$ 37,560	$ 33,721	$ 44,557	$ 50,638	$ 81,359	$ 60,891	$ 45,155	156,430	238,043	95,681
Cash Call Inc
Business combinations
Acquisition price, cash portion	$ 10,000
Newly issued unregistered shares	494,017
Earn out period of contingent consideration	3 years
Percentage of earn out based on pre-tax earnings for January and February 2015	100.00%
Percentage of earn out based on pre-tax earnings for 10 months in 2015 after February	65.00%
Earn out of period after February 2015	10 months
Percentage of earn out based on pre-tax earnings for 2016	55.00%
Percentage of earn out based on pre-tax earnings for 2017	45.00%
Payment of acquisition related contingent consideration		$ 554								$ 19,300	54,100	38,100
Threshold percentage of ownership transfer considered	50.00%
Contingent consideration, as percent of the enterprise value in excess of $200 million	15.00%
Enterprise value over which 15% is paid as contingent consideration	$ 200,000
Contingent consideration, as percent of the enterprise value in excess of $500 million	5.00%
Enterprise value over which 5% is paid as contingent consideration	$ 500,000
Revenues												$ 135,300
Operating Expenses											$ 80,900

Acquisition of CashCall Mortgage - Purchase Price Allocation and Pro Forma Results (Details) - USD ($) $ in Thousands			12 Months Ended
	Mar. 31, 2015	Jan. 06, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017
Consideration paid:
Contingent consideration			$ 31,072		$ 554
Assets acquired:
Goodwill			104,938	$ 104,938	$ 104,587
Unaudited Pro Forma Results of Operations
Revenues				185,357
Other expense				(12,143)
Expenses				(166,111)
Pretax net income				7,103
Cash Call Inc
Consideration paid:
Cash		$ 5,000	$ 2,500	$ 7,500
IMH common stock		6,150
Deferred payments		5,000
Contingent consideration		124,592
Consideration paid, total		140,742
Assets acquired:
Fixed assets and software		3,033
Total assets acquired		36,155
Goodwill		104,587
Contingent consideration of business appreciation rights		1,400
Acquisition related costs	$ 300
Trademark \| Cash Call Inc
Assets acquired:
Identifiable intangible assets		17,251
Customer list \| Cash Call Inc
Assets acquired:
Identifiable intangible assets		10,170
Non-compete agreement \| Cash Call Inc
Assets acquired:
Identifiable intangible assets		$ 5,701

Mortgage Loans Held-for-Sale (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	$ 568,781	$ 388,422
Gain on LHFS
(Provision) recovery for repurchases	(1,557)	(379)	$ (1,012)
Total gain on sale of loans, net	135,749	309,185	162,988
Government
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	263,512	146,305
Conventional
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	193,055	168,581
Other
Mortgage loans held-for-Sale
Total mortgage loans held-for-sale	93,012	62,701
Mortgage loans, held-for-sale
Mortgage loans held-for-Sale
Fair value adjustment	19,202	10,835
Gain on LHFS
Gain on sale of mortgage loans	187,204	321,392	232,552
Premium from servicing retained loan sales	56,049	128,273	98,103
Unrealized gains from derivative financial instruments	(6,412)	2,326	6,827
Realized losses from derivative financial instruments	(4,576)	6,224	(7,045)
Mark to market (loss) gain on LHFS	8,367	(22)	404
Direct origination expenses, net	(102,928)	(146,797)	(160,623)
(Provision) recovery for repurchases	(1,557)	(379)	(1,012)
Total gain on sale of loans, net	$ 136,147	$ 311,017	$ 169,206

Finance Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Accounts Receivable Additional Disclosures [Abstract]
Finance receivable past due	$ 0	$ 0
Uncommitted warehouse lines to non-affiliated customers	123,000	175,500
Outstanding balance	$ 41,777	$ 62,937

Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Changes in the fair value of MSRs
Balance at beginning of period	$ 131,537
Fair value of MSRs at end of period	154,405	$ 131,537
Total loans serviced	$ 16,330,100	$ 12,351,522
Pledged collateral	81.00%	86.00%
Mortgage Servicing Rights Sensitivity Analysis
Fair value of MSRs	$ 154,405	$ 131,537
Change in fair value of mortgage servicing rights	(37,904)	(24,388)	$ (10,939)
Loss on sale of mortgage servicing rights	(93)	(10,688)	(8,046)
Realized and unrealized gains (losses) from hedging instruments	2,117	(1,365)	387
Loss on mortgage servicing rights, net	(35,880)	(36,441)	(18,598)
Servicing income, net
Contractual servicing fees	38,025	17,497	8,547
Late and Ancillary fees	409	174	129
Subservicing and other costs	(6,532)	(3,937)	(2,574)
Servicing fees, net	31,902	13,734	6,102
Government
Changes in the fair value of MSRs
Total loans serviced	2,834,680	1,359,569
Conventional
Changes in the fair value of MSRs
Total loans serviced	13,493,463	10,815,998
NonQM
Changes in the fair value of MSRs
Total loans serviced	1,957	175,955
Mortgage servicing rights
Changes in the fair value of MSRs
Balance at beginning of period	131,537	36,425
Additions from servicing retained loan sales	56,049	128,273
Addition from purchases	5,618
Reductions from bulk sales	(895)	(8,773)
Changes in fair value	(37,904)	(24,388)
Fair value of MSRs at end of period	154,405	131,537	$ 36,425
Mortgage Servicing Rights Sensitivity Analysis
Prepayment Speed, Decrease in fair value from 10% adverse change	(5,643)	(4,956)
Prepayment Speed, Decrease in fair value from 20% adverse change	(11,275)	(9,593)
Prepayment Speed, Decrease in fair value from 30% adverse change	(16,807)	(13,940)
Discount Rate, Decrease in fair value from 10% adverse change	(5,461)	(4,927)
Discount Rate, Decrease in fair value from 20% adverse change	(10,555)	(9,511)
Discount Rate, Decrease in fair value from 30% adverse change	$ (15,316)	$ (13,786)

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
Changes in carrying amount of goodwill
Goodwill, Beginning Balance	$ 104,938
Additions (Impairment)	(351)
Goodwill, Ending Balance	104,587
Change in goodwill	$ (351)

Goodwill and Intangible Assets - Intangibles Other Than Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Intangible assets and other assets:
Gross Carrying Amount	$ 33,122	$ 33,122
Accumulated Amortization	(11,540)	(7,344)
Net carrying amount	$ 21,582	25,778
Remaining Life	9 years
Amortization of intangible and other assets	$ 4,768	4,769	$ 3,576
Trademark
Intangible assets and other assets:
Gross Carrying Amount	17,251	17,251
Accumulated Amortization	(3,216)	(2,047)
Net carrying amount	$ 14,035	15,204
Remaining Life	12 years
Customer relationships
Intangible assets and other assets:
Gross Carrying Amount	$ 10,170	10,170
Accumulated Amortization	(4,143)	(2,637)
Net carrying amount	$ 6,027	7,533
Remaining Life	4 years
Non-compete agreement
Intangible assets and other assets:
Gross Carrying Amount	$ 5,701	5,701
Accumulated Amortization	(4,181)	(2,660)
Net carrying amount	$ 1,520	3,041
Remaining Life	1 year
Developed software
Intangible assets and other assets:
Gross Carrying Amount	$ 2,719	2,719
Accumulated Amortization	(1,574)	(1,002)
Net carrying amount	$ 1,145	$ 1,717
Remaining Life	2 years

Goodwill and Intangible Assets - Estimated Aggregate Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets.
2018	$ 4,197
2019	2,676
2020	2,676
2021	2,676
2022 and thereafter	9,357
Net carrying amount	$ 21,582	$ 25,778

Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Other Assets
Deferred charge (See Note 13)	$ 7,827	$ 8,685
Deferred tax asset, net (See Note 15)	4,315	24,420
Accounts receivable, net	5,401	6,953
Derivative assets – lending (See Note 11)	4,777	11,169
Prepaid expenses	3,001	3,179
Servicing advances	2,853	3,075
Accrued interest receivable	1,397	333
Premises and equipment, net	862	976
Developed software, net	1,145	1,717
Other	1,644	341
Total other assets	$ 33,222	60,848
Accounts Receivable, net
Average collection period after sale date for holdbacks from MSR sales	6 months
Average number of months in arrears for collection of receivables related to hedging instruments and real estate service fees	1 month
Reserve for doubtful accounts	$ 95	$ 86

Other Assets - Developed Software, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 33,122	$ 33,122
Accumulated Amortization	(11,540)	(7,344)
Net carrying amount	21,582	25,778
Developed software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,719	2,719
Accumulated Amortization	(1,574)	(1,002)
Net carrying amount	$ 1,145	$ 1,717

Other Assets - Premises and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Premises and Equipment, net
Premises and equipment	$ 16,928	$ 16,467
Less: Accumulated depreciation	(16,066)	(15,491)
Total premises and equipment, net	$ 862	$ 976
Minimum
Premises and Equipment, net
Useful lives	3 years
Maximum
Premises and Equipment, net
Useful lives	20 years

Debt - Contractual Reductions of Debt (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Contractual reductions of debt
Total	$ 697,470
Less Than One Year	585,363
One to Three Years	50,107
More Than Five Years	62,000
MSR Financings
Contractual reductions of debt
Total	35,133
Less Than One Year	10,000
One to Three Years	25,133
2015 Convertible Notes
Contractual reductions of debt
Total	24,974
One to Three Years	24,974
Long-term debt
Contractual reductions of debt
Total	62,000
More Than Five Years	62,000
Warehouse Borrowings
Contractual reductions of debt
Total	575,363
Less Than One Year	$ 575,363

Debt - Warehouse Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Feb. 28, 2018
Warehouse Borrowings [Abstract]
Balance Outstanding	$ 575,363	$ 420,573
Warehouse Borrowings
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	960,000
Balance Outstanding	575,363	420,573
Information on warehouse borrowings
Amount outstanding during the year	627,175	880,111
Average balance outstanding for the year	414,149	449,598
Underlying collateral (mortgage loans)	$ 591,403	$ 436,887
Weighted average rate for period (as a percent)	4.06%	3.40%
Warehouse Borrowings \| Subsequent Event
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity			$ 50,000
Repurchase agreement 1
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 150,000
Balance Outstanding	$ 100,630	$ 106,609
Repurchase agreement 1 \| Minimum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	90.00%
Repurchase agreement 1 \| Minimum \| 1ML
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	2.75%
Repurchase agreement 1 \| Maximum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	98.00%
Repurchase agreement 1 \| Maximum \| 1ML
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	4.13%
Repurchase agreement 2
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 35,000
Balance Outstanding	$ 31,632	44,761
Repurchase agreement 2 \| Minimum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	90.00%
Repurchase agreement 2 \| Minimum \| Prime Rate
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	0.00%
Repurchase agreement 2 \| Maximum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	98.00%
Repurchase agreement 2 \| Maximum \| Prime Rate
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	0.50%
Repurchase agreement 3
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 225,000
Balance Outstanding	154,020	125,320
Finance receivables made to warehouse customers	$ 41,800	62,900
Repurchase agreement 3 \| Minimum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	85.00%
Repurchase agreement 3 \| Minimum \| Base Rate
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	2.50%
Repurchase agreement 3 \| Maximum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	97.00%
Repurchase agreement 4
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 250,000
Balance Outstanding	$ 152,772	52,067
Allowable Advance Rates (as a percent)	99.00%
Repurchase agreement 4 \| Minimum \| 1ML
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	2.55%
Repurchase agreement 5
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 100,000
Balance Outstanding	$ 88,920	56,655
Allowable Advance Rates (as a percent)	100.00%
Repurchase agreement 5 \| Subsequent Event
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity			$ 175,000
Repurchase agreement 5 \| Minimum \| Note Rate
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	0.50%
Repurchase agreement 6
Warehouse Borrowings [Abstract]
Maximum Borrowing Capacity	$ 200,000
Balance Outstanding	$ 47,389	$ 35,161
Repurchase agreement 6 \| Minimum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	95.00%
Repurchase agreement 6 \| Minimum \| 1ML
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	2.15%
Repurchase agreement 6 \| Maximum
Warehouse Borrowings [Abstract]
Allowable Advance Rates (as a percent)	98.00%
Repurchase agreement 6 \| Maximum \| 1ML
Warehouse Borrowings [Abstract]
Rate Range (as a percent)	2.40%

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

Debt - MSR Financings (Details) - USD ($) $ in Thousands			12 Months Ended
Debt - MSR Financings (Details) - USD ($) $ in Thousands	Aug. 17, 2017	Feb. 10, 2017	Dec. 31, 2017	Feb. 28, 2018
FHLMC Financing
Long-term Debt
Amount of debt issued	$ 30,000
Automatic renewal period	1 year
Number of days notice required for intention not to renew	150 days
Amount outstanding during the year			$ 10,000
Financing secured by MSRs			58,300
FHLMC Financing \| Subsequent Event
Long-term Debt
Maximum Borrowing Capacity				$ 50,000
FHLMC Financing \| Maximum
Long-term Debt
Borrowing percentage contingent on FMV of pledged servicing rights	55.00%
FHLMC Financing \| LIBOR
Long-term Debt
Interest margin over base rate (as a percent)	4.00%
FNMA Financing
Long-term Debt
Amount of debt issued		$ 40,000
Borrowing percentage contingent on FMV of pledged servicing rights		55.00%
Amount outstanding during the year		$ 35,100	25,100
Revolving loan commitment period		2 years
Origination fee		$ 100
Repayment of term financing		$ 30,100
Financing secured by MSRs			$ 67,300
FNMA Financing \| LIBOR
Long-term Debt
Interest margin over base rate (as a percent)		4.00%

Debt - Term Financing (Details) - Term financing $ in Thousands	1 Months Ended
	Jun. 30, 2015 USD ($)
Long-term Debt
Amount of debt issued	$ 30,000
Loan extension fee	$ 100
LIBOR
Long-term Debt
Interest margin over base rate (as a percent)	8.50%

Debt - Convertible Notes (Details) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2016 USD ($) shares	May 31, 2015 USD ($) D $ / shares	Dec. 31, 2017	Dec. 31, 2016 USD ($)
Convertible Notes
Conversion of debt into equity				$ 20,000
Amount of debt converted				$ 20,000
2013 Convertible Notes
Convertible Notes
Amount of debt issued	$ 20,000
Common stock issued upon conversion of notes (in shares) \| shares	1,839,080
Amount of debt converted	$ 20,000
2015 Convertible Notes
Convertible Notes
Amount of debt issued		$ 25,000
Interest rate of debt (as a percent)		7.50%
Transaction costs		$ 50
Conversion price (in dollars per share) \| $ / shares		$ 21.50
Conditional conversion price (in dollars per share) \| $ / shares		$ 30.10
Number of trading days for which stock price must exceed specified price \| D		20
Number of consecutive trading days during which stock price must exceed specified price		30 days
Convertible notes voting restriction period			3 years

Debt - Long-term Debt (Details) $ / shares in Units, $ in Thousands		12 Months Ended
	May 05, 2017 USD ($) $ / shares shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2009 USD ($)	Dec. 31, 2008 USD ($)	Dec. 31, 2005 USD ($) item	Mar. 31, 2017 USD ($)
Long-term Debt
Common stock issued upon conversion of debt			$ 20,000
Loss on extinguishment of debt		$ (1,265)
Trust Preferred Securities and Junior Subordinated Notes, Fair Value [Abstract]
Long-term debt		$ 44,982	47,207
Trust Preferred Securities
Long-term Debt
Face amount of debt purchased and cancelled				$ 36,500	$ 36,500
Amount for which debt was purchased and cancelled				5,500	$ 5,500
Common stock issued upon conversion of debt				51,300
Trust preferred securities agreed to be exchanged \| shares	412,264
Trust preferred securities, aggregate liquidation amount	$ 8,500
Accrued and unpaid interest	$ 14
Interest rate at the end of the period (as a percent)	4.92%
Write off in trust preferred entities	$ 166
Carrying Value of Trust Preferred Obligation							$ 5,600
Market price of common stock \| $ / shares	$ 17.06
Loss on extinguishment of debt	$ 1,300
Trust Preferred Securities and Junior Subordinated Notes, Fair Value [Abstract]
Long-term debt			8,500
Fair value adjustment			(3,197)
Total			5,566
Trust Preferred Securities \| LIBOR
Long-term Debt
Applicable margin (as a percent)	3.75%
Common securities
Trust Preferred Securities and Junior Subordinated Notes, Fair Value [Abstract]
Long-term debt			263
Junior Subordinated Notes
Long-term Debt
Amount for which debt was exchanged				$ 62,000
Interest rate at the end of the period (as a percent)		6.00%
Trust Preferred Securities and Junior Subordinated Notes, Fair Value [Abstract]
Long-term debt		$ 62,000	62,000
Fair value adjustment		(17,018)	(20,359)
Total		$ 44,982	$ 41,641
Fixed interest rate (as a percent)		2.00%
Increase in interest rate (as a percent)		1.00%
Junior Subordinated Notes \| LIBOR
Long-term Debt
Applicable margin (as a percent)		3.75%
Trusts
Long-term Debt
Number of wholly owned subsidiaries formed to issue securities \| item						4
Trusts \| Trust Preferred Securities
Long-term Debt
Amount of debt issued						$ 99,200
Trusts \| Junior Subordinated Notes
Long-term Debt
Debt issued						$ 96,300

Debt - Line of Credit Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2017	Dec. 31, 2015
Line of Credit Agreement
Repayments of Lines of Credit			$ 11,000
Line of credit
Line of Credit Agreement
Maximum borrowing capacity		$ 4,000
Repayments of Lines of Credit	$ 4,000
LIBOR \| Line of credit
Line of Credit Agreement
Interest margin over base rate (as a percent)		3.50%

Securitized Mortgage Trusts - Securitized Mortgage Trust Assets and Collateral (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Trust Assets
Securitized mortgage collateral	$ 3,662,008	$ 4,021,891
REO	8,542	11,399
Total securitized mortgage trust assets	3,670,550	4,033,290
Mortgages secured by residential real estate
Trust Assets
Securitized mortgage collateral	3,840,819	4,500,719
Mortgages secured by commercial real estate
Trust Assets
Securitized mortgage collateral	347,323	426,494
Securitized mortgage collateral
Trust Assets
Securitized mortgage collateral	3,662,008	4,021,891
Fair value adjustment	(526,134)	(905,322)
Mortgages serviced for others
Trust Assets
Other mortgages primarily collateralized by REMIC	$ 578,000	$ 682,000

Securitized Mortgage Trusts - Real Estate Owned (REO) and Securitized Mortgage Trust Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Securitized Mortgage Trusts
REO	$ 15,519	$ 25,802
Impairment (1)	(6,977)	(14,403)
Ending balance	8,542	11,399
Securitized Mortgage Trust Liabilities [Abstract]
Securitized mortgage borrowings	$ 3,653,265	$ 4,017,603

Securitized Mortgage Trusts - Securitized Mortgage Borrowings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Securitized Mortgage Borrowings
Securitized mortgage borrowings	$ 3,653,265	$ 4,017,603
Minimum
Range of interest rates
Interest rate margin adjustment trigger, percentage of unpaid principal balance to original issuance amount	10.00%
Maximum
Range of interest rates
Interest rate margin adjustment trigger, percentage of unpaid principal balance to original issuance amount	20.00%
LIBOR \| Level 3
Range of interest rates
Variable interest rate	1.56%
2002
Securitized Mortgage Borrowings
Original Issuance Amount	$ 3,876,100
Securitized mortgage borrowings	$ 6,200	8,800
2002 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	5.25%
Interest Rate Margins after Contractual Call Date (as a percent)	0.54%
2002 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	12.00%
Interest Rate Margins after Contractual Call Date (as a percent)	3.68%
2002 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.27%
2002 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	2.75%
2003
Securitized Mortgage Borrowings
Original Issuance Amount	$ 5,966,100
Securitized mortgage borrowings	$ 48,200	62,800
2003 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	4.34%
Interest Rate Margins after Contractual Call Date (as a percent)	0.54%
2003 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	12.75%
Interest Rate Margins after Contractual Call Date (as a percent)	4.50%
2003 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.27%
2003 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	3.00%
2004
Securitized Mortgage Borrowings
Original Issuance Amount	$ 17,710,700
Securitized mortgage borrowings	$ 526,700	640,000
2004 \| Minimum
Range of interest rates
Fixed interest rate (as a percent)	3.58%
Interest Rate Margins after Contractual Call Date (as a percent)	0.50%
2004 \| Maximum
Range of interest rates
Fixed interest rate (as a percent)	5.56%
Interest Rate Margins after Contractual Call Date (as a percent)	3.75%
2004 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.25%
2004 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	2.50%
2005
Securitized Mortgage Borrowings
Original Issuance Amount	$ 13,387,700
Securitized mortgage borrowings	$ 1,938,100	2,163,100
2005 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.48%
2005 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	4.35%
2005 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.24%
2005 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	2.90%
2006
Securitized Mortgage Borrowings
Original Issuance Amount	$ 5,971,400
Securitized mortgage borrowings	$ 2,412,800	2,617,800
Range of interest rates
Fixed interest rate (as a percent)	6.25%
2006 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.20%
2006 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	4.13%
2006 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.10%
2006 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	2.75%
2007
Securitized Mortgage Borrowings
Original Issuance Amount	$ 3,860,500
Securitized mortgage borrowings	$ 1,407,700	1,589,600
2007 \| Minimum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	0.12%
2007 \| Maximum
Range of interest rates
Interest Rate Margins after Contractual Call Date (as a percent)	3.00%
2007 \| 1ML \| Minimum
Range of interest rates
Variable interest rate	0.06%
2007 \| 1ML \| Maximum
Range of interest rates
Variable interest rate	2.00%
Securitized mortgage borrowings
Securitized Mortgage Borrowings
Subtotal contractual principal balance (3)	$ 6,339,700	7,082,100
Fair value adjustment	$ (2,686,400)	$ (3,064,500)

Securitized Mortgage Trusts - Expected Principal Reductions of the Securitized Mortgage Borrowings (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securitized Mortgage Borrowings
Less Than One Year	$ 585,363
One to Three Years	50,107
More Than Five Years	62,000
Securitized mortgage borrowings
Securitized Mortgage Borrowings
Total	6,339,700	$ 7,082,100
Less Than One Year	581,600
One to Three Years	886,700
Three to Five Years	632,400
More Than Five Years	$ 4,239,000

Securitized Mortgage Trusts - Change in Fair Value of Net Trust Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in fair value of net trust assets, including trust REO losses
Change in fair value of net trust assets, excluding REO	$ (1,212)	$ 5,630	$ 957
Gains (losses) from REO	7,425	(5,934)	(6,595)
Change in fair value of net trust assets, including trust REO gains (losses)	$ 6,213	$ (304)	$ (5,638)

Derivative Instruments (Details) - USD ($) $ in Thousands	12 Months Ended
Derivative Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Derivative assets and liabilities - lending
Maximum percentage of ownership interest in acquiree for which warrants were issued			9.90%
Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities - lending
Derivative Assets, Notional Balance	$ 398,225	$ 558,538
Total Gains (Losses)	(6,812)	1,985	$ 6,300
Hedging Instruments
Derivative assets and liabilities - lending
Derivative liabilities, Notional Balance	687,500	492,157
Total Gains (Losses)	(2,061)	$ 5,201	$ (6,132)
Mortgage lending operations \| Interest rate lock commitments. net (IRLCs)
Derivative assets and liabilities - lending
Assets fair value	4,400
Mortgage lending operations \| Hedging Instruments
Derivative assets and liabilities - lending
Assets fair value	336
Mortgage servicing rights \| Hedging Instruments
Derivative assets and liabilities - lending
Assets fair value	$ 85

Redeemable Preferred Stock (Details) $ / shares in Units, $ in Millions	Dec. 31, 2017 USD ($) $ / shares
Redeemable Preferred Stock
Outstanding liquidation preference of Series B and Series C Preferred Stock \| $	$ 51.8
Liquidation preference amount per share (in dollars per share) \| $ / shares	$ 25.00

Fair Value of Financial Instruments - Fair value of Financial Instruments Included in the Consolidated Financial Statements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Assets
Mortgage servicing rights	$ 154,405	$ 131,537
Liabilities
MSR financings	60,133
Carrying Amount
Assets
Cash and cash equivalents.	33,223	40,096
Restricted cash.	5,876	5,971
Mortgage loans held for-for-sale	568,781	388,422
Finance receivables.	41,777	62,937
Mortgage servicing rights	154,405	131,537
Derivatives assets, lending, net	4,777	11,169
Securitized mortgage collateral	3,662,008	4,021,891
Liabilities
Warehouse borrowings	575,363	420,573
MSR financings	35,133
Term financing		29,910
Convertible notes	24,974	24,965
Contingent consideration	554	31,072
Long-term debt	44,982	47,207
Securitized mortgage borrowings	3,653,265	4,017,603
Derivative liabilities, lending, net		336
Estimated Fair Value \| Level 1
Assets
Cash and cash equivalents.	33,223	40,096
Restricted cash.	5,876	5,971
Estimated Fair Value \| Level 2
Assets
Mortgage loans held for-for-sale	568,781	388,422
Finance receivables.	41,777	62,937
Derivatives assets, lending, net	420
Liabilities
Warehouse borrowings	575,363	420,573
Derivative liabilities, lending, net		336
Estimated Fair Value \| Level 3
Assets
Mortgage servicing rights	154,405	131,537
Derivatives assets, lending, net	4,357	11,169
Securitized mortgage collateral	3,662,008	4,021,891
Liabilities
MSR financings	35,133
Term financing		29,910
Convertible notes	24,974	24,965
Contingent consideration	554	31,072
Long-term debt	44,982	47,207
Securitized mortgage borrowings	$ 3,653,265	$ 4,017,603

Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value Measurements
Transfers between Level 1 and Level 2	$ 0
Transfers between Level 2 and Level 1	0
Assets
Mortgage servicing rights	$ 154,405	$ 131,537
Level 3
Fair Value Measurements
Percentage of level three assets to total assets measured at fair value	87.00%	92.00%
Percentage of level three liabilities to total liabilities measured at fair value	99.00%	99.00%
Recurring basis \| Level 2
Assets
Mortgage loans held for-for-sale	$ 568,781	$ 388,422
Derivatives assets, lending, net	420
Total assets at fair value	569,201	388,422
Liabilities
Derivative liabilities, lending, net		336
Total liabilities at fair value		336
Recurring basis \| Level 3
Assets
Derivatives assets, lending, net	4,357	11,169
Mortgage servicing rights	154,405	131,537
Securitized mortgage collateral	3,662,008	4,021,891
Total assets at fair value	3,820,770	4,164,597
Liabilities
Securitized mortgage borrowings	3,653,265	4,017,603
Long-term debt	44,982	47,207
Contingent consideration	554	31,072
Total liabilities at fair value	3,698,801	4,095,882
Recurring basis \| Derivative assets, lending, net \| Interest rate lock commitments. net (IRLCs) \| Level 3
Assets
Total assets at fair value	4,400	$ 11,200
Recurring basis \| Derivative assets, lending, net \| Hedging Instruments \| Level 3
Assets
Derivatives assets, lending, net	420
Long-term debt \| Recurring basis \| Level 3
Liabilities
Long-term debt	$ 45,000

Fair Value of Financial Instruments - Reconciliation of All Assets and Liabilities Measured Using Level 3 Input (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Level 3
Purchases, issuances and settlements
Net interest income including cash received and paid	$ 8,100	$ 9,900	$ 8,300
Securitized mortgage borrowings
Purchases, issuances and settlements
Unrealized gains (losses) still held	2,686,398	3,064,481
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(4,017,603)	(4,578,657)	(5,245,860)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(378,083)	(226,406)	(160,791)
Purchases, issuances and settlements
Settlements	742,421	787,460	827,994
Fair value at the end of the period	(3,653,265)	(4,017,603)	(4,578,657)
Unrealized gains (losses) still held			3,291,072
Securitized mortgage borrowings \| Interest expense.
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(131,507)	(182,903)	(211,272)
Securitized mortgage borrowings \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(246,576)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(43,503)	50,481
Derivative liabilities, net, securitized trusts
Changes in fair value of liabilities during the period
Fair value in the beginning of the period		(1,669)	(5,447)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(233)	(487)
Purchases, issuances and settlements
Settlements		1,902	4,265
Fair value at the end of the period			(1,669)
Unrealized gains (losses) still held			(1,485)
Derivative liabilities, net, securitized trusts \| Change in fair value
Total gains (losses) included in earnings:
Total (losses) gains included in earnings		(233)	(487)
Long-term debt
Purchases, issuances and settlements
Unrealized gains (losses) still held	17,018	23,556
Changes in fair value of liabilities during the period
Fair value in the beginning of the period	(47,207)	(31,898)	(22,122)
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(3,709)	(15,309)	(9,776)
Purchases, issuances and settlements
Settlements	5,934
Fair value at the end of the period	(44,982)	(47,207)	(31,898)
Unrealized gains (losses) still held			38,865
Long-term debt \| Interest expense.
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(760)	(873)	(1,115)
Long-term debt \| Change in fair value
Total gains (losses) included in earnings:
Total (losses) gains included in earnings	(2,949)	(14,436)	(8,661)
Contingent consideration
Changes in fair value of assets during the period
Fair value at the beginning of the period	(31,072)
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	11,268
Purchases, issuances and settlements
Settlements	19,250
Fair value at the end of the period		(31,072)
Unrealized gains (losses) still held	(554)
Purchases, issuances and settlements
Fair value at the end of the period	(554)
Contingent consideration \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	11,268
Investment securities available-for-sale
Changes in fair value of assets during the period
Fair value at the beginning of the period		26	92
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		21	25
Purchases, issuances and settlements
Settlements		(47)	(91)
Fair value at the end of the period			26
Unrealized gains (losses) still held			26
Investment securities available-for-sale \| Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		2	10
Investment securities available-for-sale \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		19	15
Securitized mortgage collateral
Changes in fair value of assets during the period
Fair value at the beginning of the period	4,021,891	4,574,919	5,249,639
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	291,441	106,523	15,204
Purchases, issuances and settlements
Settlements	(651,324)	(659,551)	(689,924)
Fair value at the end of the period	3,662,008	4,021,891	4,574,919
Unrealized gains (losses) still held	(526,134)	(905,322)	(1,147,971)
Securitized mortgage collateral \| Interest income
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	46,077	57,176	64,256
Securitized mortgage collateral \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	245,364	49,347	(49,052)
Mortgage servicing rights
Changes in fair value of assets during the period
Fair value at the beginning of the period	131,537	36,425	24,418
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(37,904)	(24,388)	(10,939)
Purchases, issuances and settlements
Purchases	5,618
Issuances	56,049	128,273	98,103
Settlements	(895)	(8,773)	(75,157)
Fair value at the end of the period	154,405	131,537	36,425
Unrealized gains (losses) still held	154,405	131,537	36,425
Mortgage servicing rights \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(37,904)	(24,388)	(10,939)
Interest rate lock commitments. net (IRLCs)
Changes in fair value of assets during the period
Fair value at the beginning of the period	11,169	9,184	2,884
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(6,812)	1,985	6,300
Purchases, issuances and settlements
Fair value at the end of the period	4,357	11,169	9,184
Unrealized gains (losses) still held	4,357	11,169	9,184
Interest rate lock commitments. net (IRLCs) \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings	(6,812)	1,985	6,300
Warrant
Changes in fair value of assets during the period
Fair value at the beginning of the period			84
Total gains (losses) included in earnings:
Total gains (losses) included in earnings			(84)
Warrant \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings			(84)
Contingent consideration
Changes in fair value of assets during the period
Fair value at the beginning of the period	$ (31,072)	(48,079)
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		(37,142)	37,778
Purchases, issuances and settlements
Issuances			(124,592)
Settlements		54,149	38,735
Fair value at the end of the period		(31,072)	(48,079)
Unrealized gains (losses) still held		(31,072)	(48,079)
Contingent consideration \| Change in fair value
Total gains (losses) included in earnings:
Total gains (losses) included in earnings		$ (37,142)	$ 37,778

Fair Value of Financial Instruments - Valuation Techniques And Unobservable Inputs Applied (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($)
DCF \| Level 3
Unobservable input
Estimated undiscounted earn out payments	$ 554,000
Securitized mortgage borrowings \| Level 3 \| Weighted Average
Unobservable input
Loss severities (as a percent)	47.00%
Securitized mortgage borrowings \| DCF \| Level 3
Valuation techniques
Estimated fair value of liabilities	$ (3,653,265)
Securitized mortgage borrowings \| DCF \| Level 3 \| Minimum
Unobservable input
Discount rates (as a percent)	3.60%
Default rates (as a percent)	0.01%
Loss severities (as a percent)	9.90%
Securitized mortgage borrowings \| DCF \| Level 3 \| Maximum
Unobservable input
Discount rates (as a percent)	25.00%
Loss severities (as a percent)	84.70%
Securitized mortgage borrowings \| DCF \| Level 3 \| Weighted Average
Unobservable input
Discount rates (as a percent)	4.40%
Default rates (as a percent)	1.30%
Long-term debt \| DCF \| Level 3
Valuation techniques
Estimated fair value of liabilities	$ (44,982)
Unobservable input
Discount rates (as a percent)	9.50%
Long-term debt \| DCF \| Level 3 \| Weighted Average
Unobservable input
Discount rates (as a percent)	9.50%
Contingent consideration \| Level 3
Valuation techniques
Estimated fair value of liabilities	$ (554)
Securitized mortgage collateral \| DCF \| Level 3
Valuation techniques
Estimated fair value of assets	$ 3,662,008
Securitized mortgage collateral \| DCF \| Level 3 \| Minimum
Unobservable input
Prepayment rates (as a percent)	2.20%
Securitized mortgage collateral \| DCF \| Level 3 \| Maximum
Unobservable input
Prepayment rates (as a percent)	25.10%
Default rates (as a percent)	4.20%
Securitized mortgage collateral \| DCF \| Level 3 \| Weighted Average
Unobservable input
Prepayment rates (as a percent)	8.00%
Mortgage servicing rights \| DCF \| Level 3
Valuation techniques
Estimated fair value of assets	$ 154,405
Mortgage servicing rights \| DCF \| Level 3 \| Minimum
Unobservable input
Discount rates (as a percent)	9.00%
Prepayment rates (as a percent)	8.00%
Mortgage servicing rights \| DCF \| Level 3 \| Maximum
Unobservable input
Discount rates (as a percent)	14.00%
Prepayment rates (as a percent)	88.80%
Mortgage servicing rights \| DCF \| Level 3 \| Weighted Average
Unobservable input
Discount rates (as a percent)	9.60%
Prepayment rates (as a percent)	12.20%
Interest rate lock commitments. net (IRLCs) \| Market pricing \| Minimum
Unobservable input
Pull-through rate (as a percent)	99.90%
Interest rate lock commitments. net (IRLCs) \| Market pricing \| Level 3
Valuation techniques
Estimated fair value of assets	$ 4,357
Interest rate lock commitments. net (IRLCs) \| Market pricing \| Level 3 \| Minimum
Unobservable input
Pull-through rate (as a percent)	15.10%
Interest rate lock commitments. net (IRLCs) \| Market pricing \| Level 3 \| Weighted Average
Unobservable input
Pull-through rate (as a percent)	83.40%

Fair Value of Financial Instruments - Changes in Recurring Fair Value Measurements Included in Earnings (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Change in Fair Value Included in Net Earnings (Loss)
Total		$ (194,992)
Change in the fair value of trust assets, excluding REO	$ (1,212)	5,630	$ 957
Change in fair value of net trust assets, excluding REO	(1,212)	7,347	$ 5,021
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	16,330,100	12,351,522
Derivative assets and liabilities
Maximum percentage of ownership interest in acquiree for which warrants were issued			9.90%
Contingent consideration
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(37,142)
Accretion of contingent consideration	2,100
Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(21)
Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(226,406)
Derivative liabilities, net, securitized trusts
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(233)
Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities		(15,309)
Investment securities available-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		21
Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		106,523
Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(24,388)
Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(22)
Derivative assets - IRLCs
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		1,985
Recurring basis
Change in Fair Value Included in Net Earnings (Loss)
Total	(114,675)		$ (121,750)
Recurring basis \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Total	46,077	57,178	64,266
Recurring basis \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Total	(132,267)	(183,776)	(212,387)
Recurring basis \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Total	(1,212)	5,630	957
Recurring basis \| Change in Fair Value of Long-term Debt
Change in Fair Value Included in Net Earnings (Loss)
Total	(2,949)	(14,436)	(8,661)
Recurring basis \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Total	(26,279)	(61,892)	26,844
Recurring basis \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Total	1,955	2,304	7,231
Recurring basis \| Warrant
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities			(84)
Recurring basis \| Warrant \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities			(84)
Recurring basis \| Contingent consideration
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	11,268
Change in fair value of liabilities			37,778
Recurring basis \| Contingent consideration \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	11,268	(37,142)
Change in fair value of liabilities			37,778
Recurring basis \| Hedging Instruments
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	757
Change in fair value of liabilities			616
Recurring basis \| Hedging Instruments \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	357	(362)	89
Recurring basis \| Hedging Instruments \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	400
Change in fair value of liabilities		341	527
Recurring basis \| Securitized mortgage borrowings
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(378,083)		(160,791)
Recurring basis \| Securitized mortgage borrowings \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(131,507)	(182,903)	(211,272)
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	(246,576)	(43,503)	50,481
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		(233)
Recurring basis \| Derivative liabilities, net, securitized trusts
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities			(487)
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			(487)
Changes in the fair value of derivative instruments		1,500	3,600
Cash payments from the securitization trusts		1,700	4,100
Recurring basis \| Long-term debt
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	(3,709)
Change in fair value of liabilities			(9,776)
Recurring basis \| Long-term debt \| Interest expense.
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of liabilities	(760)	(873)	(1,115)
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	(2,949)	(14,436)	(8,661)
Recurring basis \| Investment securities available-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets			25
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	10
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		19	15
Recurring basis \| Securitized mortgage collateral
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	291,441		15,204
Recurring basis \| Securitized mortgage collateral \| Interest income
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	46,077	57,176	64,256
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	245,364	49,347	(49,052)
Recurring basis \| Mortgage servicing rights
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets			(10,939)
Change in fair value of liabilities	(37,904)
Recurring basis \| Mortgage servicing rights \| Change in Fair Value of Net Trust Assets
Change in Fair Value Included in Net Earnings (Loss)
Cash payments from the securitization trusts		1,700	4,100
Change in the fair value of trust assets, excluding REO	1,200	5,600	1,000
Change in fair value of net trust assets, excluding REO		7,300	5,000
Recurring basis \| Mortgage servicing rights \| Other revenue
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets		(24,388)	(10,939)
Change in fair value of liabilities	(37,904)
Recurring basis \| Mortgage loans held-for-sale
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets			404
Change in fair value of liabilities	8,367
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		(22)	404
Change in fair value of liabilities	8,367
Recurring basis \| Derivative assets - IRLCs
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets			6,300
Change in fair value of liabilities	(6,812)
Recurring basis \| Derivative assets - IRLCs \| Gain on sale of loans, net
Change in Fair Value Included in Net Earnings (Loss)
Change in fair value of assets	6,812	1,985	$ 6,300
Recurring basis \| Level 3
Long-term debt
Estimated fair value of long-term debt	44,982	47,207
Derivative assets and liabilities
Notional balance of derivative assets and liabilities, securitized trusts	0	$ 67,700
Recurring basis \| Level 3 \| Long-term debt
Long-term debt
Long-term debt unpaid principal balance	62,000
Estimated fair value of long-term debt	45,000
Difference between aggregate unpaid principal balances and fair value of long-term debt	17,000
Recurring basis \| Level 3 \| Securitized mortgage collateral
Securitized mortgage collateral
Unpaid principal balance of securitized mortgage collateral	4,200,000
Estimated fair value of securitized mortgage collateral	3,700,000
Difference between aggregate unpaid principal balance and fair value of securitized mortgage collateral	500,000
Unpaid principal balance of loans 90 days or more past due	500,000
Estimated fair value of loans 90 days or more past due	200,000
Difference between aggregate unpaid principal balances and fair value of mortgage loans	300,000
Securitized Mortgage Borrowings
Outstanding principal balance of securitized mortgage borrowings	4,200,000
Estimated fair value of securitized mortgage borrowings	3,700,000
Bond losses	2,200,000
Difference between aggregate unpaid principal balances and fair value of securitized mortgage borrowings	$ 500,000

Fair Value of Financial Instruments - Nonrecurring Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Fair Value Measurements
Deferred charge	$ 7,827	$ 8,685
Nonrecurring Fair Value Measurements
Total Gains (Losses) (1)
REO (2)	7,425	(5,934)	$ (6,595)
Lease Liability (3)			(53)
Deferred charge (4)	(858)	(1,278)	$ (1,558)
Nonrecurring Fair Value Measurements \| Level 2
Fair Value Measurements
REO (1)	440	212
Nonrecurring Fair Value Measurements \| Level 3
Fair Value Measurements
Deferred charge	$ 7,827	$ 8,685

Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Numerator for basic earnings per share:
Net (loss) earnings									$ (31,521)	$ 46,670	$ 80,799
Numerator for diluted (loss) earnings per share:
Net (loss) earnings	$ (44,905)	$ 2,317	$ 6,440	$ 4,627	$ 16,940	$ 16,498	$ 12,251	$ 981	(31,521)	46,670	80,799
Interest expense attributable to convertible notes										2,463	2,719
Net (loss) earnings plus interest expense attributable to convertible notes									$ (31,521)	$ 49,133	$ 83,518
Denominator for basic (loss) earnings per share:
Basic weighted average common shares outstanding during the period									19,438	13,193	10,094
Denominator for diluted (loss) earnings per share:
Basic weighted average common shares outstanding during the period									19,438	13,193	10,094
Net effect of dilutive convertible notes										1,359	2,597
Net effect of dilutive stock options and DSU's										304	354
Diluted weighted average common shares									19,438	14,856	13,045
Basic (in dollars per share)	$ (2.14)	$ 0.11	$ 0.33	$ 0.29	$ 1.06	$ 1.28	$ 0.99	$ 0.09	$ (1.62)	$ 3.54	$ 8.00
Diluted (in dollars per share)	$ (2.14)	$ 0.11	$ 0.32	$ 0.29	$ 1.00	$ 1.18	$ 0.92	$ 0.08	$ (1.62)	$ 3.31	$ 6.40
Stock options
Denominator for diluted (loss) earnings per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)									1,600	685	357
Convertible Debt Notes
Denominator for diluted (loss) earnings per share:
Antidilutive stock options excluded from weighted average share calculations (in shares)									1,200

Income Taxes - Summary of Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Current income taxes:
Federal									$ 71	$ 907	$ 2,149
State									(37)	186	395
Total current income tax expense									34	1,093	2,544
Deferred income taxes:
Federal									17,610		(21,367)
State									2,494		(3,053)
Total deferred income tax expense (benefit)									20,104		(24,420)
Total income tax expense (benefit)	$ 16,563	$ 2,104	$ 1,045	$ 426	$ 365	$ (130)	$ 423	$ 435	$ 20,138	$ 1,093	$ (21,876)

Income Taxes - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Federal and state net operating losses	$ 181,681	$ 226,001
Mortgage securities	54,657	112,302
Depreciation and amortization		337
Capital loss carryover	163
Compensation and other accruals	5,452	7,922
Repurchase reserve	1,861	2,430
Total gross deferred tax assets	243,814	348,992
Deferred tax liabilities:
Fair value	(8,940)	(10,869)
Mortgage servicing rights	(46,104)	(59,096)
Depreciation and amortization	(874)
Total gross deferred tax liabilities	(55,918)	(69,965)
Valuation allowance	(183,581)	(254,607)
Total net deferred tax assets	$ 4,315	$ 24,420

Income Taxes - Reconciliation of Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of income taxes to the expected statutory federal corporate income tax rates
Expected income tax expense (benefit)									$ (3,984)	$ 16,717	$ 20,623
State tax (benefit), net of federal benefit									32	185	256
State rate change									12	(153)
Change in valuation allowance									(66,355)	(17,002)	(44,163)
Federal rate change									89,518
Deferred charge									858	1,278	1,558
Other									57	68	(150)
Total income tax expense (benefit)	$ 16,563	$ 2,104	$ 1,045	$ 426	$ 365	$ (130)	$ 423	$ 435	$ 20,138	$ 1,093	$ (21,876)

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating loss carryforwards
Income tax rate (as a percent)		35.00%
Tax rate expected to reverse in future and recognized a tax expense		$ 89,500
AMT credit		113
Unrecognized Tax Benefits		0	$ 0
Excess tax benefits from stock-based compensation			$ 5,100
Scenario forcast
Operating loss carryforwards
Income tax rate (as a percent)	21.00%
Federal
Operating loss carryforwards
Net operating loss carryforwards		619,900
Alternative Minimum Tax Eliminated		474
State
Operating loss carryforwards
Net operating loss carryforwards		$ 431,000

Segment Reporting - Balance Sheet Items (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting
Cash and cash equivalents	$ 33,223	$ 40,096
Restricted cash	5,876	5,971
Mortgage loans held-for-sale	568,781	388,422
Finance receivables	41,777	62,937
Mortgage servicing rights	154,405	131,537
Trust assets	3,670,550	4,033,290
Goodwill	104,587	104,938	$ 104,938
Other assets	102,501	96,543
Total assets	4,681,700	4,863,734
Total liabilities	4,416,553	4,632,694
Corporate and Other.
Segment Reporting
Cash and cash equivalents	1,204	25,904
Other assets	8,885	27,182
Total assets	10,089	53,086
Total liabilities	39,475	8,622
Mortgage Lending \| Operating segments
Segment Reporting
Cash and cash equivalents	31,784	14,026
Restricted cash	5,876	5,971
Mortgage loans held-for-sale	568,781	388,422
Finance receivables	41,777	62,937
Mortgage servicing rights	154,405	131,537
Goodwill	104,587	104,587
Other assets	85,773	55,444
Total assets	992,983	762,924
Total liabilities	678,392	551,110
Real Estate Services \| Operating segments
Segment Reporting
Cash and cash equivalents	235	166
Goodwill		351
Other assets	16	4,934
Total assets	251	5,451
Total liabilities	47	7,741
Long-term Portfolio \| Operating segments
Segment Reporting
Trust assets	3,670,550	4,033,290
Other assets	7,827	8,983
Total assets	3,678,377	4,042,273
Total liabilities	$ 3,698,639	$ 4,065,221

Segment Reporting - Statement of Operations Items (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment Reporting
Number of reportable segments \| item									3
Gain on sale of loans, net									$ 136,147	$ 311,017	$ 169,206
Real estate services fees, net									5,856	8,395	9,850
Servicing fees, net									31,902	13,734	6,102
Loss on mortgage servicing rights, net									(35,880)	(36,441)	(18,598)
Other revenue									680	1,051	397
Accretion of contingent consideration									(2,058)	(6,997)	(8,142)
Change in fair value of contingent consideration									13,326	(30,145)	45,920
Loss on extinguishment of debt									(1,265)
Other operating expense									(167,698)	(200,901)	(133,458)
Change in fair value of long-term debt										(14,436)	(8,661)
Other income (expense)									7,607	2,486	(3,693)
(Loss) earnings before income taxes	$ (28,342)	$ 4,421	$ 7,485	$ 5,053	$ 17,305	$ 16,368	$ 12,674	$ 1,416	(11,383)	47,763	58,923
Income tax expense (benefit)	16,563	2,104	1,045	426	365	(130)	423	435	20,138	1,093	(21,876)
Net (loss) earnings	$ (44,905)	$ 2,317	$ 6,440	$ 4,627	$ 16,940	$ 16,498	$ 12,251	$ 981	(31,521)	46,670	80,799
Corporate and Other.
Segment Reporting
Other revenue									385	730	109
Other operating expense									(20,747)	(8,716)	(7,569)
Other income (expense)									(2,227)	(5,535)	(4,605)
(Loss) earnings before income taxes									(22,589)	(13,521)	(12,065)
Mortgage Lending \| Operating segments
Segment Reporting
Gain on sale of loans, net									136,147	311,017	169,206
Servicing fees, net									31,902	13,734	6,102
Loss on mortgage servicing rights, net									(35,880)	(36,441)	(18,598)
Other revenue									22	79	25
Accretion of contingent consideration									(2,058)	(6,997)	(8,142)
Change in fair value of contingent consideration									13,326	(30,145)	45,920
Other operating expense									(143,002)	(185,231)	(119,261)
Other income (expense)									2,931	2,582	2,037
(Loss) earnings before income taxes									3,388	68,598	77,289
Real Estate Services \| Operating segments
Segment Reporting
Real estate services fees, net									5,856	8,395	9,850
Other operating expense									(3,610)	(6,536)	(5,951)
(Loss) earnings before income taxes									2,246	1,859	3,899
Long-term Portfolio \| Operating segments
Segment Reporting
Other revenue									273	242	263
Loss on extinguishment of debt									(1,265)
Other operating expense									(339)	(418)	(677)
Change in fair value of long-term debt										(14,436)	(8,661)
Other income (expense)									6,903	5,439	(1,125)
(Loss) earnings before income taxes									$ 5,572	$ (9,173)	$ (10,200)

Commitments and Contingencies - Legal Proceedings (Details) - item		12 Months Ended
	Dec. 07, 2011	Dec. 31, 2017	Dec. 31, 2016
Series B 9.375% redeemable preferred stock
Commitments and Contingencies
Preferred stock, dividend rate (as a percent)		9.375%	9.375%
Series C 9.125% redeemable preferred stock
Commitments and Contingencies
Preferred stock, dividend rate (as a percent)		9.125%	9.125%
Curtis J. Timm \| Series B and C Preferred Stock
Commitments and Contingencies
Preferred stock, dividend rate (as a percent)	2.00%
Number of directors elected by Preferred holders	2
Curtis J. Timm \| Series B 9.375% redeemable preferred stock
Commitments and Contingencies
Preferred stock, dividend rate (as a percent)	9.375%
Curtis J. Timm \| Series C 9.125% redeemable preferred stock
Commitments and Contingencies
Preferred stock, dividend rate (as a percent)	9.125%

Commitments and Contingencies - Lease Commitments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Lease commitments for operating leases
Year 2018	$ 5,822
Year 2019	5,592
Year 2020	4,560
Year 2021	4,620
Year 2022 and thereafter	13,065
Total operating lease commitments	33,659
Lease commitments for capital leases
Year 2018	211
Year 2019	82
Total lease commitments	293
Lease Commitments
Year 2018	6,033
Year 2019	5,674
Year 2020	4,560
Year 2021	4,620
Year 2022 and thereafter	13,065
Total lease commitments	33,952
Rental expense incurred	5,400	$ 5,100	$ 4,700
Interest expense on capital leases	$ 22	$ 32	$ 57

Commitments and Contingencies - Repurchase Reserve (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Repurchase reserve
Beginning balance	$ 5,408	$ 5,236
Provision for repurchases	1,557	379
Settlements	(945)	(207)
Total repurchase reserve	6,020	5,408
Loans subject to representations and warranties	$ 6,900	$ 12,800	$ 9,200
HARP
Repurchase reserve
Threshold period to stay current for loans to limit representation and warranty risk	12 months
Non-HARP
Repurchase reserve
Threshold period to stay current for loans to limit representation and warranty risk	36 months

Commitments and Contingencies - Concentration of Risk (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 568,781	$ 388,422
Mortgage loans \| Geographic concentration \| California
Concentration of Risk
Percentage of risk	76.00%
Properties kept as security for long-term mortgage portfolio \| Geographic concentration \| California
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 2,200,000
Percentage of risk	51.00%
Properties kept as security for long-term mortgage portfolio \| Geographic concentration \| Florida
Concentration of Risk
Aggregate unpaid principal balance of loans secured by properties	$ 446,500
Percentage of risk	11.00%

Share Based Payments and Employee Benefit Plans - Incentive Plan and Weighted Average Assumptions Used (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Weighted average assumptions used in estimating fair value of options granted
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%
2010 Incentive Plan
Equity and Share Based Payments
Increase in shares under amendment to the 2010 Omnibus Incentive Plan	500,000
Number of shares available under the Plan	2,416,321
Shares available for grant as stock options, restricted stock and deferred stock awards	223,902
Options granted (in shares)	388,450
Stock options
Equity and Share Based Payments
Options granted (in shares)	388,450	342,000	405,800
Minimum \| Stock options
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)	1.77%	1.16%	1.54%
Expected lives (in years)	5 years 6 months 15 days	5 years 5 months 19 days	5 years 6 months
Expected volatility (as a percent)	43.59%	49.71%	49.53%
Fair value per share (in dollars per share)	$ 4.34	$ 7.95	$ 6.74
Maximum \| Stock options
Weighted average assumptions used in estimating fair value of options granted
Risk-free interest rate (as a percent)	2.29%		1.76%
Expected lives (in years)	5 years 7 months 17 days		5 years 8 months 23 days
Expected volatility (as a percent)	45.34%		79.56%
Fair value per share (in dollars per share)	$ 5.98		$ 9.96

Share Based Payments and Employee Benefit Plans - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
2010 Incentive Plan
Number of Shares
Options granted (in shares)	388,450
Stock options
Number of Shares
Options outstanding at beginning of period (in shares)	1,391,327	1,115,280	1,078,230
Options granted (in shares)	388,450	342,000	405,800
Options exercised (in shares)	(94,051)	(42,954)	(243,971)
Options forfeited / cancelled (in shares)	(102,972)	(22,999)	(124,779)
Options outstanding at end of year (in shares)	1,582,754	1,391,327	1,115,280
Options exercisable at end of year (in shares)	921,387	705,488	476,998
Weighted-Average Exercise Price
Options outstanding at beginning of period (in dollars per share)	$ 13.37	$ 11.85	$ 6.88
Options granted (in dollars per share)	13.43	17.40	19.59
Options exercised (in dollars per share)	6.30	5.10	3.98
Options forfeited / cancelled (in dollars per share)	16.26	15.50	9.44
Options outstanding at end of year (in dollars per share)	13.61	13.37	11.85
Options exercisable at end of year (in dollars per share)	$ 12.15	$ 10.25	$ 8.23
Weighted-Average Remaining Life
Weighted-Average Remaining Life, Options outstanding at end of year	6 years 9 months 29 days	7 years 8 months 9 days
Weighted-Average Remaining Life, Options exercisable at end of year	5 years 3 months 15 days	6 years 6 months
Aggregate Intrinsic Value (in thousands)
Aggregate Intrinsic Value, Options outstanding at end of year (in dollars)	$ 1,810	$ 4,293
Aggregate Intrinsic Value, Options exercisable at end of year (in dollars)	$ 1,803	$ 3,402
Additional disclosure related to options
Market price of common stock	$ 10.16	$ 14.02
Unrecognized compensation cost	$ 3,200
Weighted-average period over which compensation cost is expected to be recognized	1 year 10 months 24 days
Aggregate grant-date fair value of stock options granted	$ 2,300	$ 2,700	$ 3,800
Stock-based compensation expense	$ 2,500	$ 2,100	$ 1,600

Share Based Payments and Employee Benefit Plans - Options Exercise Price Range (Details)	12 Months Ended
	Dec. 31, 2017 $ / shares shares
$ 0.00 - 2.80
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	$ 0.00
Exercise price range, upper limit (in dollars per share)	$ 2.80
Stock Options Outstanding, Number Outstanding (in shares) \| shares	115,988
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	2 years 5 months 5 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 2.43
Options Exercisable, Number Exercisable (in shares) \| shares	115,988
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 2.43
$ 2.81 - 5.39
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	2.81
Exercise price range, upper limit (in dollars per share)	$ 5.39
Stock Options Outstanding, Number Outstanding (in shares) \| shares	189,165
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	5 years 4 months 28 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 5.39
Options Exercisable, Number Exercisable (in shares) \| shares	189,165
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 5.39
$ 5.40 - 10.65
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	5.40
Exercise price range, upper limit (in dollars per share)	$ 10.65
Stock Options Outstanding, Number Outstanding (in shares) \| shares	188,666
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	5 years 11 months 9 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 10.42
Options Exercisable, Number Exercisable (in shares) \| shares	147,000
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 10.55
$ 10.66 - 16.43
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	10.66
Exercise price range, upper limit (in dollars per share)	$ 13.72
Stock Options Outstanding, Number Outstanding (in shares) \| shares	319,300
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	9 years 8 months 1 day
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 13.72
$13.73 to 16.43
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	13.73
Exercise price range, upper limit (in dollars per share)	$ 16.43
Stock Options Outstanding, Number Outstanding (in shares) \| shares	143,499
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	4 years 1 month 17 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 13.85
Options Exercisable, Number Exercisable (in shares) \| shares	142,833
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 13.83
$ 16.44 - 17.40
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	16.44
Exercise price range, upper limit (in dollars per share)	$ 17.40
Stock Options Outstanding, Number Outstanding (in shares) \| shares	299,668
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	8 years 2 months 5 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 17.40
Options Exercisable, Number Exercisable (in shares) \| shares	105,853
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 17.40
$ 17.41 -21.50
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	17.41
Exercise price range, upper limit (in dollars per share)	$ 21.50
Stock Options Outstanding, Number Outstanding (in shares) \| shares	326,468
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	6 years 10 months 24 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 20.52
Options Exercisable, Number Exercisable (in shares) \| shares	220,548
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 20.52
$ 2.80 - 21.50
Additional information regarding stock options outstanding
Exercise price range, lower limit (in dollars per share)	2.80
Exercise price range, upper limit (in dollars per share)	$ 21.50
Stock Options Outstanding, Number Outstanding (in shares) \| shares	1,582,754
Stock Options Outstanding, Weighted-Average Remaining Contractual Life (in years)	6 years 9 months 29 days
Stock Options Outstanding, Weighted-Average Exercise Price (in dollars per share)	$ 13.61
Options Exercisable, Number Exercisable (in shares) \| shares	921,387
Options Exercisable, Weighted-Average Exercise Price (in dollars per share)	$ 12.15

Share Based Payments and Employee Benefit Plans - Deferred Stock Units (Details) - Deferred stock units - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Deferred stock units
Fair value of DSU's granted	$ 206	$ 87
Number of Shares
DSU's outstanding at beginning of year (in shares)	85,750	80,750	75,750
DSU's granted (in shares)	15,000	5,000	5,000
DSU's outstanding at end of year (in shares)	100,750	85,750	80,750
Weighted-Average Grant Date Fair Value
DSU's outstanding at beginning of year (in dollars per share)	$ 9.83	$ 9.36	$ 8.63
DSU's granted (in dollars per share)	13.72	17.40	20.50
DSU's outstanding at end of year (in dollars per share)	$ 10.41	$ 9.83	$ 9.36
Additional information regarding DSUs
Unrecognized compensation cost	$ 227
Weighted-average period over which compensation cost is expected to be recognized	2 years 5 months 12 days
Minimum
Deferred stock units
Vesting period	1 year
Maximum
Deferred stock units
Vesting period	3 years

Share Based Payments and Employee Benefit Plans - 401(k) Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share Based Payments and Employee Benefit Plans
Employee contribution (as a percent)	25.00%
Employer's match of the first 4% of employee contributions (as a percent)	50.00%
Percentage of eligible compensation, matched 50% by employer	4.00%
Basic matching contributions recorded	$ 1,100	$ 895
Employer discretionary contributions	$ 0	$ 0

Related Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended
	Jan. 31, 2015	Apr. 30, 2016	Apr. 27, 2015
Promissory Note
Related Party Transactions
Amount of debt issued			$ 10,000
Interest rate (as a percent)			15.00%
Affiliated Entity \| Short-term borrowing
Related Party Transactions
Amount of debt issued	$ 5,000
Interest rate (as a percent)	15.00%
Expenses for services received from related party	$ 50
Affiliated Entity \| Promissory Note
Related Party Transactions
Amount of debt issued		$ 10,000
Interest rate (as a percent)		15.00%

Tax Benefits Preservation Rights Plan (Details)	1 Months Ended
Tax Benefits Preservation Rights Plan (Details)	Sep. 30, 2013 $ / item
Tax Benefits Preservation Rights Plan
Ownership percentage held by shareholder	5.00%
Minimum percentage points increase in ownership over the lowest percentage of shares of common stock by five-percent shareholders	50.00%
Prior period on a rolling basis of increase in ownership over the lowest percentage of shares of common stock by five-percent shareholders	3 years
Trigger threshold for acquisition of shares of common stock without prior approval of board	4.99%
Nominal redemption price of rights issued under the Rights Plan	0.001

Selected Quartely Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Selected Quarterly Financial Data - (unaudited)
Total revenues	$ 11,654	$ 42,076	$ 39,633	$ 45,342	$ 77,251	$ 103,993	$ 69,213	$ 47,299	$ 138,705	$ 297,756	$ 166,957
Total expenses	(40,592)	(37,560)	(33,721)	(44,557)	(50,638)	(81,359)	(60,891)	(45,155)	(156,430)	(238,043)	(95,681)
Total other (expense) income	596	(95)	1,573	4,268	(9,308)	(6,266)	4,352	(728)	6,342	(11,950)	(12,353)
(Loss) earnings before income taxes	(28,342)	4,421	7,485	5,053	17,305	16,368	12,674	1,416	(11,383)	47,763	58,923
Income tax expense (benefit)	16,563	2,104	1,045	426	365	(130)	423	435	20,138	1,093	(21,876)
Net (loss) earnings	$ (44,905)	$ 2,317	$ 6,440	$ 4,627	$ 16,940	$ 16,498	$ 12,251	$ 981	$ (31,521)	$ 46,670	$ 80,799
Earnings (loss) per common share :
Basic (in dollars per share)	$ (2.14)	$ 0.11	$ 0.33	$ 0.29	$ 1.06	$ 1.28	$ 0.99	$ 0.09	$ (1.62)	$ 3.54	$ 8.00
Diluted (in dollars per share)	$ (2.14)	$ 0.11	$ 0.32	$ 0.29	$ 1.00	$ 1.18	$ 0.92	$ 0.08	$ (1.62)	$ 3.31	$ 6.40

Subsequent Events (Details) - Warehouse Borrowings - USD ($) $ in Thousands	Feb. 28, 2018	Dec. 31, 2017
Subsequent events
Maximum borrowing capacity		$ 960,000
Subsequent Event
Subsequent events
Maximum borrowing capacity	$ 50,000

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events
Subsequent Events	Note 22.—Subsequent Events In February 2018, the Company entered into a master repurchase agreement with a regional bank providing a $50.0 million warehouse facility which expires in December 2018. Subsequent events have been evaluated through the date of this filing.