Annual report pursuant to Section 13 and 15(d)

MORTGAGE SERVICING RIGHTS (Tables)

v3.24.0.1
MORTGAGE SERVICING RIGHTS (Tables)
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
Summary of Activity of Mortgage Servicing Rights
The activity of MSRs was as follows for the years ended December 31, 2023 and 2022:
2023 2022
Balance — beginning of year $ 1,139,539  $ 675,340 
MSRs originated and acquired through acquisitions 161,378  246,648 
Changes in fair value:
Due to collection/realization of cash flows (55,588) (83,390)
Due to changes in valuation model inputs or assumptions (83,972) 300,941 
Balance — end of year $ 1,161,357  $ 1,139,539 
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, 2023 and 2022:
2023 2022
Unobservable Input Range (Weighted Average)
Discount rate
9.6% - 15.5% (10.9%)
9.6% - 15.7% (10.6%)
Prepayment rate
6.4% - 32.0% (8.5%)
6.6% - 28.6% (7.5%)
Cost to service (per loan)
$72.1 - $366.3 ($96.4)
$66.7 - $330.4 ($92.0)
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, 2023 and 2022:
2023 2022
Servicing fees from servicing portfolio $ 242,003  $ 218,734 
Late fees 6,788  5,825 
Other ancillary servicing revenue and fees (2,647) (1,156)
Total loan servicing and other fees $ 246,144  $ 223,403 
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, 2023 and 2022, 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, 2023
Mortgage servicing rights $ (36,968) $ (72,701) $ (47,899) $ (93,196) $ (11,315) $ (23,573)
December 31, 2022
Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162)