Residential mortgage banking activities and variable expenses on residential mortgage banking activities

6 Months Ended

Jun. 30, 2020

Residential mortgage banking activities and variable expenses on residential mortgage banking activities

Gains on residential mortgage banking activities, net of variable loan expenses

Note 10 – Residential mortgage banking activities and variable expenses on residential mortgage banking activities

Residential mortgage banking activities reflect revenue within our residential mortgage banking business directly related to loan origination and sale activity. This primarily consists of the realized gains on sales of residential loans held for sale and loan origination fee income. Residential mortgage banking activities also consists of unrealized gains and losses associated with the changes in fair value of the loans held for sale, the fair value of retained MSR additions, and the realized and unrealized gains and losses from derivative instruments.

Variable expenses include correspondent fee expenses and other direct expenses relating to these loans, which vary based on loan origination volumes.

The following table presents the components of residential mortgage banking activities and variable expenses on residential mortgage banking activities recorded in the Company’s unaudited interim consolidated statements of operations.

	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2020		2019		2020		2019
Realized and unrealized gains and losses of residential mortgage loans held for sale, at fair value	$	57,450	$	13,886	$	82,616	$	24,085
Creation of new mortgage servicing rights, net of payoffs		7,057		3,779		10,950		6,060
Loan origination fee income on residential mortgage loans		3,907		2,624		7,211		4,367
Unrealized gains (loss) on IRLCs and other derivatives		12,150		732		16,456		1,096
Residential mortgage banking activities	$	80,564	$	21,021	$	117,233	$	35,608
Variable expenses on residential mortgage banking activities	$	(36,446)	$	(13,501)	$	(56,575)	$	(22,677)