v3.25.2
Mortgage Servicing
 6 Months Ended
Jun. 30, 2025
Transfers and Servicing [Abstract]  
Mortgage Servicing Mortgage Servicing
Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):
June 30, 2025
Product ConcentrationsGeographic Concentrations
Product UPB (1)% of Total StateUPB % of Total
Fannie Mae$22,999,772 68 %New York11 %
Freddie Mac6,100,091 18 %Texas11 %
Private Label2,599,971 8 %North Carolina8 %
FHA1,497,551 4 %California7 %
SFR - Fixed Rate287,065 1 %Georgia6 %
Bridge (2)278,116 1 %Florida6 %
Total$33,762,566 100 %New Jersey6 %
Other (3)45 %
Total100 %
December 31, 2024
Fannie Mae$22,730,056 67 %Texas11 %
Freddie Mac6,077,020 18 %New York11 %
Private Label2,605,980 8 %California8 %
FHA1,506,948 5 %North Carolina7 %
Bridge (2)278,494 1 %Georgia6 %
SFR - Fixed Rate271,859 1 %Florida6 %
Total$33,470,357 100 %New Jersey5 %
Other (3)46 %
Total100 %
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(1)Excludes loans which we are not collecting a servicing fee.
(2)Represents four bridge loans sold by our Structured Business that we are servicing.
(3)No other individual state represented 4% or more of the total.
At June 30, 2025 and December 31, 2024, our weighted average servicing fee was 37.4 basis points and 37.8 basis points, respectively. At June 30, 2025 and December 31, 2024, we held total escrow balances (including unfunded collateralized loan obligation holdbacks) of approximately $1.41 billion and $1.45 billion, respectively, of which approximately $1.40 billion and $1.41 billion, respectively, is not included in our consolidated balance sheets. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.
The components of servicing revenue, net are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Servicing fees$32,887 $31,149 $65,430 $62,930 
Interest earned on escrows13,512 17,896 26,402 35,650 
Prepayment fees863 383 1,897 792 
Write-offs and payoffs of MSRs(2,058)(2,631)(5,164)(4,418)
Amortization of MSRs(17,767)(16,887)(35,525)(33,518)
Servicing revenue, net$27,437 $29,910 $53,040 $61,436