Quarterly report pursuant to Section 13 or 15(d)

Mortgage Servicing Rights (Tables)

v3.22.1
Mortgage Servicing Rights (Tables)
3 Months Ended
Mar. 31, 2022
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,
2022 2021
Balance — beginning of period $ 675,340  $ 446,998 
MSRs originated 77,615  103,976 
Changes in fair value:
Due to collection/realization of cash flows (24,894) (44,862)
Due to changes in valuation model inputs or assumptions 209,495  80,605 
Balance — end of period $ 937,556  $ 586,717 
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, 2022 December 31, 2021
Unobservable Input Range (Weighted Average)
Discount rate
9.3% - 15.5% (9.9%)
9.3% - 15.5% (9.9%)
Prepayment rate
6.5% - 30.0% (9.1%)
7.3% - 29.5% (13.6%)
Cost to service (per loan)
$71.9 - $472.5 ($90.0)
$71.9 - $247.6 ($91.4)
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, 2022 and 2021:
Three Months Ended March 31,
2022 2021
Servicing fees from servicing portfolio $ 51,564  $ 43,856 
Late fees 1,515  1,069 
Other ancillary servicing revenue 98  274 
Total loan servicing and other fees $ 53,177  $ 45,199 
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, 2022 and December 31, 2021, 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, 2022
Mortgage servicing rights $ (35,148) $ (68,457) $ (37,146) $ (71,892) $ (10,314) $ (21,166)
December 31, 2021
Mortgage servicing rights $ (35,704) $ (69,207) $ (23,135) $ (45,139) $ (7,875) $ (16,288)