Quarterly report [Sections 13 or 15(d)]

Servicing Activities (Tables)

v3.25.1
Servicing Activities (Tables)
 3 Months Ended
Mar. 31, 2025
Transfers and Servicing [Abstract]  
Schedule of Servicing Assets at Fair Value
The following table summarizes activity related to the Company’s MSR portfolio for the three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
(in thousands) 2025 2024
Balance at beginning of period $ 2,994,271  $ 3,052,016 
Purchases of mortgage servicing rights
 1,493  40,072 
Additions from sales of mortgage loans 230  — 
Sales of mortgage servicing rights
 —  (18,221)
Changes in fair value due to:
Changes in valuation inputs or assumptions used in the valuation model
 16,016  59,780 
Other changes in fair value (1)
(52,237) (48,768)
Balance at end of period (2)
$ 2,959,773  $ 3,084,879 
____________________
(1)Primarily represents changes due to the realization of cash flows.
(2)Based on the prior month-end’s principal balance of the loans underlying the Company’s MSR, increased for current month purchases.
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
As of March 31, 2025 and December 31, 2024, the key economic assumptions and sensitivity of the fair value of MSR to immediate 10% and 20% adverse changes in these assumptions were as follows:
(dollars in thousands, except per loan data) March 31,
2025		 December 31, 2024
Weighted average prepayment speed: 6.4  % 6.3  %
Impact on fair value of 10% adverse change $ (59,687) $ (61,975)
Impact on fair value of 20% adverse change $ (115,972) $ (120,142)
Weighted average delinquency: 0.9  % 0.8  %
Impact on fair value of 10% adverse change $ (1,264) $ (1,297)
Impact on fair value of 20% adverse change $ (2,538) $ (2,567)
Weighted average option-adjusted spread: 5.3  % 5.1  %
Impact on fair value of 10% adverse change $ (74,299) $ (70,293)
Impact on fair value of 20% adverse change $ (145,064) $ (137,449)
Weighted average per loan annual cost to service: $ 65.02  $ 65.02 
Impact on fair value of 10% adverse change $ (36,590) $ (36,191)
Impact on fair value of 20% adverse change $ (73,179) $ (72,381)
Schedule of Servicing Revenue
The following table presents the components of servicing income recorded on the Company’s consolidated statements of comprehensive income (loss) for the three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
(in thousands) 2025 2024
Servicing fee income $ 126,171  $ 134,320 
Ancillary and other fee income 5,094  3,857 
Float income 25,594  28,156 
Total $ 156,859  $ 166,333