Mortgage Servicing

9 Months Ended

Sep. 30, 2022

Mortgage Servicing

Mortgage Servicing

Note 6 — Mortgage Servicing

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):

September 30, 2022
Product Concentrations					Geographic Concentrations
						UPB
Product	UPB (1)		% of Total		State	% of Total
Fannie Mae	$	18,331,457	68	%	Texas	11	%
Freddie Mac		4,979,612	18	%	New York	11	%
Private Label		2,075,791	8	%	California	8	%
FHA		1,136,684	4	%	North Carolina	8	%
Bridge (2)		299,696	1	%	Georgia	6	%
SFR - Fixed Rate		241,887	1	%	New Jersey	6	%
Total	$	27,065,127	100	%	Florida	6	%
					Other (3)	44	%
					Total	100	%

December 31, 2021
Fannie Mae	$	19,127,397	71	%	Texas	12	%
Freddie Mac		4,943,905	18	%	New York	11	%
Private Label		1,711,326	6	%	North Carolina	9	%
FHA		985,063	4	%	California	8	%
SFR - Fixed Rate		191,698	1	%	Georgia	6	%
Total	$	26,959,389	100	%	Florida	6	%
					New Jersey	6	%
					Other (3)	42	%
					Total	100	%

(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, see Note 3 for details.

(3) No other individual state represented 4% or more of the total.

At September 30, 2022 and December 31, 2021, our weighted average servicing fee was 42.4 basis points and 44.9 basis points, respectively. At September 30, 2022 and December 31, 2021, we held total escrow balances of $1.88 billion and $1.40 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $666.6 million and $682.5 million at September 30, 2022 and December 31, 2021, respectively, related to loans we are servicing within our Agency Business. 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, 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, was $7.4 million and $10.1 million during the three and nine months ended September 30, 2022, respectively, and $1.0 million and $3.2 million during the three and nine months ended September 30, 2021, respectively, and is a component of servicing revenue, net in the consolidated statements of income.