Quarterly report pursuant to Section 13 or 15(d)

Servicing Activities (Tables)

v3.10.0.1
Servicing Activities (Tables)
6 Months Ended
Jun. 30, 2018
Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]  
Schedule of Servicing Assets at Fair Value
The following table summarizes activity related to MSR for the three and six months ended June 30, 2018 and 2017.
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Balance at beginning of period
$
1,301,023

 
$
747,580

 
$
1,086,717

 
$
693,815

Additions from purchases of mortgage servicing rights
132,366

 
196,920

 
279,265

 
273,876

Additions from sales of residential mortgage loans

 

 

 
20

Subtractions from sales of mortgage servicing rights

 
(946
)
 

 
(946
)
Changes in fair value due to:
 
 
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
46,221

 
(26,111
)
 
146,930

 
(22,929
)
Other changes in fair value (1)
(36,467
)
 
(19,951
)
 
(65,669
)
 
(37,948
)
Other changes (2)
7,118

 
533

 
3,018

 
(7,863
)
Balance at end of period
$
1,450,261

 
$
898,025

 
$
1,450,261

 
$
898,025

____________________
(1)
Other changes in fair value primarily represents changes due to the realization of expected cash flows.
(2)
Other changes includes purchase price adjustments, contractual prepayment protection, and changes due to the Company’s purchase of the underlying collateral.

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
As of June 30, 2018 and December 31, 2017, the key economic assumptions and sensitivity of the fair value of MSR to immediate 10% and 20% adverse changes in these assumptions were as follows:
(dollars in thousands)
June 30,
2018
 
December 31,
2017
Weighted average prepayment speed:
7.7
%
 
9.8
%
Impact on fair value of 10% adverse change
$
(41,381
)
 
$
(40,100
)
Impact on fair value of 20% adverse change
$
(80,635
)
 
$
(77,483
)
Weighted average delinquency:
1.2
%
 
1.7
%
Impact on fair value of 10% adverse change
$
(5,124
)
 
$
(4,274
)
Impact on fair value of 20% adverse change
$
(10,152
)
 
$
(8,875
)
Weighted average discount rate:
10.0
%
 
9.9
%
Impact on fair value of 10% adverse change
$
(48,632
)
 
$
(35,137
)
Impact on fair value of 20% adverse change
$
(94,122
)
 
$
(68,246
)
Components of Servicing Revenue
The following table presents the components of servicing income recorded on the Company’s condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2018 and 2017:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(in thousands)
2018
 
2017
 
2018
 
2017
Servicing fee income
$
70,883

 
$
49,434

 
$
137,332

 
$
87,934

Ancillary and other fee income
324

 
165

 
646

 
305

Float income
6,458

 
1,709

 
10,877

 
2,842

Total
$
77,665

 
$
51,308

 
$
148,855

 
$
91,081

Schedule of Total Serviced Mortgage Assets
The following table presents the number of loans and unpaid principal balance of the mortgage assets for which the Company manages the servicing as of June 30, 2018 and December 31, 2017:
 
June 30, 2018
 
December 31, 2017
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Mortgage servicing rights
530,395

 
$
119,531,589

 
454,028

 
$
101,344,054

Residential mortgage loans in securitization trusts
3,723

 
2,500,663

 
3,845

 
2,618,016

Residential mortgage loans held-for-sale
215

 
34,965

 
236

 
37,632

Other assets
21

 
1,846

 
24

 
2,590

Total serviced mortgage assets
534,354

 
$
122,069,063

 
458,133

 
$
104,002,292