v3.25.1
MORTGAGE SERVICING RIGHTS (Tables)
3 Months Ended
Mar. 31, 2025
Transfers and Servicing [Abstract]  
Summary of Activity of Mortgage Servicing Rights
The following table presents the activity of MSRs for the three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
(in thousands)
20252024
Balance — beginning of period$1,343,829 $1,161,357 
MSRs originated
38,484 34,234 
MSRs purchased
— 114 
Changes in fair value:
Due to collection/realization of cash flows(14,916)(12,119)
Due to changes in valuation model inputs or assumptions(55,020)32,897 
Balance — end of period$1,312,377 $1,216,483 
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 unobservable input assumptions used to determine the fair value of MSRs:
March 31,
2025
December 31,
2024
Unobservable InputRange (Weighted Average)
Discount rate
9.6% - 15.5% (10.6%)
9.6% - 15.5% (10.8%)
Prepayment rate
5.6% - 29.8% (8.6%)
5.5% - 43.9% (8.2%)
Cost to service (per loan)
$72 - $577 ($95)
$72 - $827 ($98)
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, including interest paid to clients on escrow account balances, which were recorded within loan servicing and other fees as follows:
Three Months Ended
March 31,
(in thousands)
20252024
Servicing fee income
$71,300 $64,034 
Late fees2,548 2,056 
Other ancillary servicing revenue and fees(1,097)(302)
Total loan servicing and other fees$72,751 $65,788 
Summary of Impact of Adverse Changes on Prepayment Speeds, Discount Rate and Cost to Service at Two Different Data Points
The following table illustrates the impact of adverse changes on the prepayment speeds, discount rate and cost to service at two different data points at March 31, 2025 and December 31, 2024, respectively:
Prepayment SpeedsDiscount RateCost to Service (per loan)
(in thousands)10% Adverse
Change
20% Adverse
Change
10% Adverse
Change
20% Adverse
Change
10% Adverse
Change
20% Adverse
Change
March 31, 2025
Mortgage servicing rights$(42,037)$(82,526)$(52,275)$(101,936)$(11,951)$(24,849)
December 31, 2024
Mortgage servicing rights$(39,491)$(78,483)$(53,056)$(104,403)$(11,217)$(24,079)