MORTGAGE SERVICING RIGHTS

9 Months Ended

Sep. 30, 2016

10.

MORTGAGE SERVICING RIGHTS

Activity in the balance of mortgage servicing rights, measured using the amortization method, for the nine month period ended September 30, 2016 and the year ended December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Balance, beginning of period	$	645,067		$	689,603
Servicing rights capitalized		59,350			73,650
Amortization of servicing rights		(82,064	)		(118,186	)
Change in valuation allowance		-			-
Balance, end of period	$	622,353		$	645,067

Activity in the valuation allowance for mortgage servicing rights for the nine month period ended September 30, 2016 and the year ended December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Balance, beginning of period	$	47,354		$	56,969
Additions		-			-
Reductions		(10,065	)		(9,615	)
Balance, end of period	$	37,289		$	47,354

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

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