Quarterly report pursuant to Section 13 or 15(d)

MORTGAGE SERVICING RIGHTS (Tables)

v3.23.2
MORTGAGE SERVICING RIGHTS (Tables)
6 Months Ended
Jun. 30, 2023
Transfers and Servicing [Abstract]  
Summary of Activity of Mortgage Servicing Rights
The activity of mortgage servicing rights was as follows:
Three Months Ended June 30, Six Months Ended
June 30,
2023 2022 2023 2022
Balance — beginning of period $ 1,112,161  $ 937,556  $ 1,139,539  $ 675,340 
MSRs originated 44,452  71,680  71,945  149,295 
Changes in fair value:
Due to collection/realization of cash flows (15,890) (25,827) (27,060) (50,721)
Due to changes in valuation model inputs or assumptions 43,780  46,901  79  256,396 
Balance — end of period $ 1,184,503  $ 1,030,310  $ 1,184,503  $ 1,030,310 
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:
June 30, 2023 December 31, 2022
Unobservable Input Range (Weighted Average)
Discount rate
9.6% - 15.6% (10.7%)
9.6% - 15.7% (10.6%)
Prepayment rate
6.5% - 27.6% (7.9%)
6.6% - 28.6% (7.5%)
Cost to service (per loan)
$72.0 - $273.4 ($91.8)
$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 three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30, Six Months Ended
June 30,
2023 2022 2023 2022
Servicing fees from servicing portfolio $ 59,410  $ 53,368  $ 118,390  $ 104,932 
Late fees 1,619  1,368  3,287  2,883 
Other ancillary servicing revenue and fees (818) (141) (1,379) (43)
Total loan servicing and other fees $ 60,211  $ 54,595  $ 120,298  $ 107,772 
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 June 30, 2023 and December 31, 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
June 30, 2023
Mortgage servicing rights $ (37,298) $ (72,947) $ (50,152) $ (96,983) $ (11,744) $ (23,777)
December 31, 2022
Mortgage servicing rights $ (36,298) $ (70,878) $ (50,392) $ (96,848) $ (11,880) $ (24,162)