Annual report pursuant to Section 13 and 15(d)

Mortgage Servicing Rights (Tables)

v3.21.1
Mortgage Servicing Rights (Tables)
12 Months Ended
Dec. 31, 2020
Transfers And Servicing [Abstract]  
Summary of Activity of Mortgage Servicing Rights

The activity of mortgage servicing rights was as follows for the years ended December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

Balance — beginning of year

 

$

418,402

 

 

$

511,852

 

MSRs originated and acquired through acquisitions

 

 

324,903

 

 

 

161,769

 

Changes in fair value:

 

 

 

 

 

 

 

 

Due to collection/realization of cash flows

 

 

(124,742

)

 

 

(83,821

)

Due to changes in valuation model inputs or assumptions

 

 

(171,565

)

 

 

(171,398

)

Balance — end of year

 

$

446,998

 

 

$

418,402

 

 

Summary of Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine Fair Value of MSRs

The following table presents the weighted average discount rate, prepayment speed and cost to service assumptions used to determine the fair value of MSRs as of December 31, 2020 and 2019:

 

 

 

2020

 

2019

Unobservable Input

 

Range (Weighted Average)

Discount rate

 

9.2% - 15.5% (10.0%)

 

9.2% - 15.5% (10.2%)

Prepayment rate

 

10.0% - 38.8% (18.2%)

 

8.9% - 30.0% (17.3%)

Cost to service (per loan)

 

$71.0 - $409.4 ($92.5)

 

$70.8 - $521.4 ($97.5)

 

Summary of Actual Revenue Generated from Servicing Activities

Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, which were recorded within loan servicing and other fees as follows for the years ended December 31, 2020 and 2019:

 

 

 

2020

 

 

2019

 

Servicing fees from servicing portfolio

 

$

155,362

 

 

$

138,201

 

Late fees

 

 

5,229

 

 

 

5,967

 

Other ancillary servicing revenue

 

 

(354

)

 

 

(1,463

)

Total loan servicing and other fees

 

$

160,237

 

 

$

142,705

 

Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points

The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at December 31, 2020 and 2019, respectively:

 

 

 

Prepayment Speeds

 

Discount Rate

 

 

Cost to Service (per loan)

 

 

 

10% Adverse

Change

 

 

20% Adverse

Change

 

10% Adverse

Change

 

 

20% Adverse

Change

 

 

10% Adverse

Change

 

 

20% Adverse

Change

 

December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing rights

 

$

(36,117

)

 

$

(66,419

)

$

(18,638

)

 

$

(32,312

)

 

$

(10,334

)

 

$

(16,700

)

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage servicing rights

 

$

(31,329

)

 

$

(49,031

)

$

(23,682

)

 

$

(35,701

)

 

$

(16,679

)

 

$

(22,543

)