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Residential Mortgage Servicing Rights
 6 Months Ended
Jun. 30, 2018
Transfers and Servicing [Abstract]  
Residential Mortgage Servicing Rights
Residential Mortgage Servicing Rights 
 
The following table presents the changes in the Company's residential mortgage servicing rights ("MSR") for the three and six months ended June 30, 2018 and 2017: 
(in thousands) 
Three Months Ended
 
Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
Balance, beginning of period
$
164,760

 
$
142,344

 
$
153,151

 
$
142,973

Additions for new MSR capitalized
6,860

 
7,819

 
13,390

 
14,860

Changes in fair value:
 
 
 
 
 
 
 
 Due to changes in model inputs or assumptions (1)
962

 
(4,573
)
 
15,895

 
(8,179
)
 Other (2)
(6,365
)
 
(3,758
)
 
(16,219
)
 
(7,822
)
Balance, end of period
$
166,217

 
$
141,832

 
$
166,217

 
$
141,832

 
(1)
Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates. 
(2)
Represents changes due to collection/realization of expected cash flows over time. 

Information related to our serviced loan portfolio as of June 30, 2018 and December 31, 2017 is as follows: 
(dollars in thousands)
June 30, 2018
 
December 31, 2017
Balance of loans serviced for others
$
15,508,182

 
$
15,336,597

MSR as a percentage of serviced loans
1.07
%
 
1.00
%

 
The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in residential mortgage banking revenue, was $10.4 million and $20.9 million for the three and six months ended June 30, 2018, respectively, as compared to $9.8 million and $19.7 million for the three and six month ended June 30, 2017, respectively. 
 
Key assumptions used in measuring the fair value of MSR as of June 30, 2018 and December 31, 2017 were as follows: 
 
June 30, 2018
 
December 31, 2017
Constant prepayment rate
11.75
%
 
12.27
%
Discount rate
9.69
%
 
9.70
%
Weighted average life (years)
6.6

 
6.3


 
  

A sensitivity analysis of the current fair value to changes in discount and prepayment speed assumptions as of June 30, 2018 and December 31, 2017 is as follows:
(in thousands)
June 30, 2018
 
December 31, 2017
Constant prepayment rate
 
 
 
Effect on fair value of a 10% adverse change
$
(6,675
)
 
$
(6,290
)
Effect on fair value of a 20% adverse change
$
(12,853
)
 
$
(12,093
)
 
 
 
 
Discount rate
 
 
 
Effect on fair value of a 100 basis point adverse change
$
(6,745
)
 
$
(5,840
)
Effect on fair value of a 200 basis point adverse change
$
(12,974
)
 
$
(11,249
)


The sensitivity analysis presents the hypothetical effect on fair value of the MSR. The effect of such hypothetical change in assumptions generally cannot be extrapolated because the relationship of the change in an assumption to the change in fair value is not linear. Additionally, in the analysis, the impact of an adverse change in one assumption is calculated independent of any impact on other assumptions. In reality, changes in one assumption may change another assumption.