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MORTGAGE SERVICING RIGHTS
 12 Months Ended
Dec. 31, 2017
Transfers and Servicing [Abstract]  
MORTGAGE SERVICING RIGHTS
7.
MORTGAGE SERVICING RIGHTS

The Company invests in MSRs and has elected to carry them at fair value. The following table presents activity related to MSRs for the years ended December 31, 2017 and 2016:
 
 
December 31, 2017
 
December 31, 2016
 
(dollars in thousands)
Fair value, beginning of period
$
652,216

 
$
—

Obtained through Hatteras Acquisition
—

 
355,820

Purchases
—

 
166,585

Sales
(33
)
 
—

Other
(27
)
 
—

Change in fair value due to:
 
 
 
Changes in valuation inputs or assumptions (1)
(4,629
)
 
178,463

Other changes, including realization of expected cash flows
(66,667
)
 
(48,652
)
Fair value, end of period
$
580,860

 
$
652,216

 
 

 
 
(1) Principally represents changes in discount rates and prepayment speed inputs used in valuation model, primarily due to changes in interest rates.    

For the years ended December 31, 2017 and 2016, the Company recognized $129.4 million and $60.5 million of net servicing income from MSRs in Other income (loss) in the Consolidated Statements of Comprehensive Income (Loss).