v3.26.1
MORTGAGE SERVICING RIGHTS
6 Months Ended
Jun. 30, 2026
MSRs  
MORTGAGE SERVICING RIGHTS  
MORTGAGE SERVICING RIGHTS

NOTE 3—MORTGAGE SERVICING RIGHTS

The fair value of the mortgage servicing rights (“MSRs”) was $1.4 billion as of both June 30, 2026 and December 31, 2025. The Company uses a discounted static cash flow valuation approach, and the key economic assumptions are the discount rate and placement fee rate. See the following sensitivities showing the changes in fair value related to changes in these key economic assumptions:

MSR Key Economic Assumptions Sensitivities (in millions)

Decrease in Fair Value

Discount Rate

100 basis point increase

$

38.6

200 basis point increase

74.4

Placement Fee Rate

50 basis point decrease

$

50.4

100 basis point decrease

100.8

These sensitivities are hypothetical and should be used with caution. These estimates do not include interplay among assumptions and are estimated as a portfolio rather than individual assets.

Activity related to capitalized MSRs (net of accumulated amortization) for the three and six months ended June 30, 2026 and 2025 follows:

As of and for the three months ended

As of and for the six months ended

 

June 30, 

June 30, 

 

Roll Forward of MSRs (in thousands)

  ​ ​ ​

2026

  ​ ​ ​

2025

  ​ ​ ​

2026

  ​ ​ ​

2025

 

Beginning balance

$

795,754

$

825,761

$

808,145

$

852,399

Additions, following the sale of loan

 

54,077

 

47,068

 

100,438

 

73,911

Amortization

 

(54,267)

 

(53,264)

 

(107,343)

 

(105,086)

Pre-payments and write-offs

 

(2,213)

 

(1,751)

 

(7,889)

 

(3,410)

Ending balance

$

793,351

$

817,814

$

793,351

$

817,814

The following table summarizes the gross value, accumulated amortization, and net carrying value of the Company’s MSRs as of June 30, 2026 and December 31, 2025:

Components of MSRs (in thousands)

June 30, 2026

December 31, 2025

Gross value

$

1,849,374

$

1,824,350

Accumulated amortization

 

(1,056,023)

 

(1,016,205)

Net carrying value

$

793,351

$

808,145

The expected amortization of MSRs held on the Condensed Consolidated Balance Sheet as of June 30, 2026 is shown in the table below. Actual amortization may vary from these estimates.

(in thousands)

Expected

Six Months Ending December 31, 

  ​Amortization  

2026

$

106,275

Year Ending December 31,

2027

$

196,669

2028

 

165,837

2029

 

123,738

2030

 

78,895

2031

 

49,599

Thereafter

72,338

Total

$

793,351