Annual report pursuant to Section 13 and 15(d)

Servicing Activities (Tables)

v3.10.0.1
Servicing Activities (Tables)
 12 Months Ended
Dec. 31, 2018
Disclosures Pertaining to Servicing Assets and Servicing Liabilities [Abstract]  
Schedule of Servicing Assets at Fair Value The following table summarizes activity related to MSR for the years ended December 31, 2018, 2017 and 2016.
 
Year Ended
 
December 31,
(in thousands)
2018
 
2017
 
2016
Balance at beginning of period
$
1,086,717

 
$
693,815

 
$
493,688

Additions from purchases of mortgage servicing rights
988,283

 
499,866

 
312,580

Additions from sales of residential mortgage loans
—

 
20

 
924

Subtractions from sales of mortgage servicing rights
—

 
(946
)
 
(61,511
)
Changes in fair value due to:
 
 
 
 
 
Changes in valuation inputs or assumptions used in the valuation model
80,209

 
6,339

 
16,572

Other changes in fair value (1)
(149,879
)
 
(96,781
)
 
(78,729
)
Other changes (2)
(11,890
)
 
(15,596
)
 
10,291

Balance at end of period
$
1,993,440

 
$
1,086,717

 
$
693,815

____________________
(1)
Other changes in fair value primarily represents changes due to the realization of expected cash flows.
(2)
Other changes includes purchase price adjustments, contractual prepayment protection, and changes due to the Company’s purchase of the underlying collateral.

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets As of December 31, 2018 and December 31, 2017, 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)
December 31,
2018
 
December 31,
2017
Weighted average prepayment speed:
8.6
%
 
9.8
%
Impact on fair value of 10% adverse change
$
(67,245
)
 
$
(40,100
)
Impact on fair value of 20% adverse change
$
(130,371
)
 
$
(77,483
)
Weighted average delinquency:
1.3
%
 
1.7
%
Impact on fair value of 10% adverse change
$
(6,911
)
 
$
(4,274
)
Impact on fair value of 20% adverse change
$
(13,688
)
 
$
(8,875
)
Weighted average discount rate:
9.4
%
 
9.9
%
Impact on fair value of 10% adverse change
$
(62,528
)
 
$
(35,137
)
Impact on fair value of 20% adverse change
$
(121,135
)
 
$
(68,246
)
Components of Servicing Revenue The following table presents the components of servicing income recorded on the Company’s consolidated statements of comprehensive (loss) income for the years ended December 31, 2018, 2017 and 2016:
 
Year Ended
 
December 31,
(in thousands)
2018
 
2017
 
2016
Servicing fee income
$
312,100

 
$
197,902

 
$
138,430

Ancillary and other fee income
1,280

 
1,009

 
1,631

Float income
29,716

 
10,154

 
3,518

Total
$
343,096

 
$
209,065

 
$
143,579

Schedule of Total Serviced Mortgage Assets The following table presents the number of loans and unpaid principal balance of the mortgage assets for which the Company manages the servicing as of December 31, 2018 and December 31, 2017:
 
December 31, 2018
 
December 31, 2017
(dollars in thousands)
Number of Loans
 
Unpaid Principal Balance
 
Number of Loans
 
Unpaid Principal Balance
Mortgage servicing rights
717,167

 
$
163,102,308

 
454,028

 
$
101,344,054

Residential mortgage loans in securitization trusts
3,612

 
2,392,471

 
3,845

 
2,618,016

Other assets
220

 
34,374

 
260

 
40,222

Total serviced mortgage assets
720,999

 
$
165,529,153

 
458,133

 
$
104,002,292