Quarterly report pursuant to Section 13 or 15(d)

Mortgage Servicing Rights (Tables)

v3.21.1
Mortgage Servicing Rights (Tables)
3 Months Ended
Mar. 31, 2021
Transfers and Servicing [Abstract]  
Summary of Activity of Mortgage Servicing Rights
The activity of mortgage servicing rights was as follows:
Three Months Ended March 31,
2021 2020
Balance — beginning of period $ 446,998  $ 418,402 
MSRs originated 103,976  42,461 
Changes in fair value:
Due to collection/realization of cash flows (44,862) (22,510)
Due to changes in valuation model inputs or assumptions 80,605  (86,139)
Balance — end of period $ 586,717  $ 352,214 
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:
March 31, 2021 December 31, 2020
Unobservable Input Range (Weighted Average)
Discount rate
9.2% - 15.5% (10.0%)
9.2% - 15.5% (10.0%)
Prepayment rate
9.0% - 28.1% (13.1%)
10.0% - 38.8% (18.2%)
Cost to service (per loan)
$71.8 - $261.3 ($91.6)
$71.0 - $409.4 ($92.5)
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 periods ended March 31, 2021 and 2020:
Three Months Ended March 31,
2021 2020
Servicing fees from servicing portfolio $ 43,856  $ 37,076 
Late fees 1,069  1,701 
Other ancillary servicing revenue (expense) 274  (245)
Total loan servicing and other fees $ 45,199  $ 38,532 
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 March 31, 2021 and December 31, 2020, 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
March 31, 2021
Mortgage servicing rights $ (38,692) $ (71,688) $ (25,906) $ (45,594) $ (12,565) $ (20,447)
December 31, 2020
Mortgage servicing rights $ (36,117) $ (66,419) $ (18,638) $ (32,312) $ (10,334) $ (16,700)