MORTGAGE SERVICING RIGHTS (Tables)
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9 Months Ended |
Sep. 30, 2025 |
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| Transfers and Servicing [Abstract] |
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| Schedule of Activity of Mortgage Servicing Rights |
The following table presents the activity of MSRs for the three and nine months ended September 30, 2025 and 2024:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(in thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
| Balance — beginning of period |
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$ |
1,303,599 |
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$ |
1,292,662 |
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$ |
1,343,829 |
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$ |
1,161,357 |
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MSRs originated |
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60,527 |
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51,482 |
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149,698 |
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141,113 |
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MSRs purchased, net |
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— |
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(936) |
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— |
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17,826 |
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| Sale of subserviced portfolio |
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— |
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— |
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(18,152) |
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— |
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| Changes in fair value: |
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| Due to collection/realization of cash flows |
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(21,153) |
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(21,815) |
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(57,926) |
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(52,445) |
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| Due to changes in valuation model inputs or assumptions |
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(7,856) |
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(123,961) |
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(82,332) |
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(70,419) |
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| Balance — end of period |
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$ |
1,335,117 |
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$ |
1,197,432 |
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$ |
1,335,117 |
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$ |
1,197,432 |
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| Schedule of Weighted Average Discount Rate, Prepayment Speed and Cost to Service Assumptions Used to Determine Fair Value of MSRs |
The following table presents the unobservable input assumptions used to determine the fair value of MSRs:
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September 30,
2025 |
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December 31,
2024 |
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| Unobservable Input |
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Range (Weighted Average) |
| Discount rate |
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9.1% - 15.0% (10.1%) |
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9.6% - 15.5% (10.8%) |
| Prepayment rate |
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5.5% - 68.9% (9.2%) |
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5.5% - 43.9% (8.2%) |
| Cost to service (per loan) |
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$72 - $764 ($95) |
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$72 - $827 ($98) |
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| Schedule of Actual Revenue Generated from Servicing Activities |
Actual revenue generated from servicing activities included contractually specified servicing fees, as well as late fees and other ancillary servicing revenue, including interest paid to clients on escrow account balances, which were recorded within loan servicing and other fees as follows:
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
(in thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
Servicing fee income |
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$ |
72,562 |
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$ |
69,140 |
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$ |
215,388 |
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$ |
199,239 |
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| Late fees |
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2,523 |
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2,200 |
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7,433 |
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6,298 |
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| Other ancillary servicing revenue and fees |
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(1,154) |
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(389) |
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(3,394) |
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(1,089) |
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| Total loan servicing and other fees |
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$ |
73,931 |
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$ |
70,951 |
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$ |
219,427 |
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$ |
204,448 |
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| Schedule 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 September 30, 2025 and December 31, 2024, respectively:
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Prepayment Speeds |
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Discount Rate |
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Cost to Service (per loan) |
| (in thousands) |
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10% Adverse
Change |
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20% Adverse
Change |
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10% Adverse
Change |
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20% Adverse
Change |
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10% Adverse
Change |
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20% Adverse
Change |
| September 30, 2025 |
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| Mortgage servicing rights |
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$ |
(48,032) |
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$ |
(92,964) |
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$ |
(52,764) |
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$ |
(102,087) |
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$ |
(13,473) |
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$ |
(26,806) |
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| December 31, 2024 |
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| Mortgage servicing rights |
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$ |
(39,491) |
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$ |
(78,483) |
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$ |
(53,056) |
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$ |
(104,403) |
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$ |
(11,217) |
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$ |
(24,079) |
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