Annual report pursuant to Section 13 and 15(d)

MORTGAGE SERVICING RIGHTS (Tables)

v3.22.4
MORTGAGE SERVICING RIGHTS (Tables)
12 Months Ended
Dec. 31, 2022
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, 2022 and 2021:
2022 2021
Balance — beginning of year $ 675,340  $ 446,998 
MSRs originated and acquired through acquisitions 246,648  337,273 
Sale of subserviced portfolio —  (7,359)
Changes in fair value:
Due to collection/realization of cash flows (83,390) (150,954)
Due to changes in valuation model inputs or assumptions 300,941  49,382 
Balance — end of year $ 1,139,539  $ 675,340 
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, 2022 and 2021:
2022 2021
Unobservable Input Range (Weighted Average)
Discount rate
9.6% - 15.7% (10.6%)
9.3% - 15.5% (9.9%)
Prepayment rate
6.6% - 28.6% (7.5%)
7.3% - 29.5% (13.6%)
Cost to service (per loan)
$66.7 - $330.4 ($92.0)
$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 years ended December 31, 2022 and 2021:
2022 2021
Servicing fees from servicing portfolio $ 218,734  $ 189,097 
Late fees 5,825  5,429 
Other ancillary servicing revenue, net (1,156) 233 
Total loan servicing and other fees $ 223,403  $ 194,759 
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, 2022 and 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
December 31, 2022
Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162)
December 31, 2021
Mortgage servicing rights $ (35,704) $ (69,207) $ (23,135) $ (45,139) $ (7,875) $ (16,288)