Mortgage Servicing Rights (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Transfers and Servicing [Abstract] |
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| Summary of Mortgage Servicing Rights |
The following table summarizes changes in the MSR assets for the three months ended March 31, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | For the three months ended March 31, | | | | | | 2026 | | 2025 | | | | Fair value, beginning of period | | | | | $ | 4,073,781 | | | $ | 3,969,881 | | | | | Capitalization of MSRs | | | | | 1,101,017 | | | 735,571 | | | | MSR and excess servicing sales | | | | | (604,323) | | | (1,010,124) | | | | | Changes in fair value: | | | | | | | | | | Due to changes in valuation inputs and assumptions | | | | | 247,897 | | | (250,821) | | | | Due to collection/realization of cash flows and other | | | | | (226,517) | | | (123,050) | | | | | | | | | | | | | | | Fair value, end of period | | | | | $ | 4,591,855 | | | $ | 3,321,457 | | | |
The following is a summary of the components of the total change in fair value of MSRs as reported in the condensed consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | | | | | | For the three months ended March 31, | | | | | | 2026 | | 2025 | | | | Changes in fair value: | | | | | | | | | | Due to changes in valuation inputs and assumptions, net | | | | | $ | 247,897 | | | $ | (250,821) | | | | | Due to collection/realization of cash flows and other | | | | | (226,517) | | | (123,050) | | | | | Net reserves and transaction costs on sales of servicing rights | | | | | (31,715) | | | (14,714) | | | | | Changes in fair value of mortgage servicing rights | | | | | $ | (10,335) | | | $ | (388,585) | | | |
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| Summary of Loan Servicing Income |
The following table summarizes the loan servicing income recognized during the three months ended March 31, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | | | | | For the three months ended March 31, | | | | | | 2026 | | 2025 | | | | Contractual servicing fees | | | | | $ | 207,924 | | | $ | 186,232 | | | | | Late, ancillary and other fees | | | | | 5,455 | | | 4,285 | | | | | Loan servicing income | | | | | $ | 213,379 | | | $ | 190,517 | | | |
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| Summary of Key Assumptions Used in Determining the Fair Value |
The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at March 31, 2026 and 2025: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31,
2026 | | December 31,
2025 | | Range | | Weighted Average | | Range | | Weighted Average | | Discount rates | 7.6 | % | — | 12.5 | % | | 9.1 | % | | 7.8 | % | — | 13.7 | % | | 9.4 | % | | Annual prepayment speeds | 6.6 | % | — | 17.6 | % | | 9.0 | % | | 5.4 | % | — | 22.1 | % | | 10.3 | % | | Cost of servicing | $74 | | — | $150 | | | $86 | | | $74 | | — | $149 | | | $87 | |
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| Schedule of Analysis of Change in Fair Value |
The hypothetical effect of adverse changes in these key assumptions would result in a decrease in fair values as follows at March 31, 2026 and December 31, 2025 (in thousands): | | | | | | | | | | | | | | March 31,
2026 | | December 31,
2025 | | Discount rate: | | | | | + 10% adverse change – effect on value | $ | (175,285) | | | $ | (149,409) | | | + 20% adverse change – effect on value | (336,520) | | | (286,410) | | | Prepayment speeds: | | | | | + 10% adverse change – effect on value | $ | (173,417) | | | $ | (168,559) | | | + 20% adverse change – effect on value | (333,954) | | | (323,246) | | | Cost of servicing: | | | | | + 10% adverse change – effect on value | $ | (26,047) | | | $ | (25,173) | | | + 20% adverse change – effect on value | (51,415) | | | (49,316) | |
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