SERVICING

9 Months Ended

Sep. 30, 2023

Loans and Other Servicing Accounts

Servicing

SERVICING

NOTE 5—SERVICING

The total unpaid principal balance of loans the Company was servicing for various institutional investors was $129.0 billion as of September 30, 2023 compared to $123.1 billion as of December 31, 2022.

As of September 30, 2023 and December 31, 2022, custodial deposit accounts (“escrow deposits”) relating to loans serviced by the Company totaled $2.8 billion and $2.7 billion, respectively. These amounts are not included in the Condensed Consolidated Balance Sheets as such amounts are not Company assets; however, the Company is entitled to placement fees on these escrow deposits, presented within Placement fees and other interest income in the Condensed Consolidated Statements of Income. Certain cash deposits exceed Federal Deposit Insurance Corporation insurance limits; however, the Company believes it has mitigated this risk by holding uninsured deposits balances at large national banks.