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

12 Months Ended

Dec. 31, 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, reflects 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 consolidated statements of operations.

	For the Year Ended December 31,
(In Thousands)	2020		2019		2018
Realized and unrealized gain (loss) of residential mortgage loans held for sale, at fair value	$	198,937	$	54,640	$	36,240
Creation of new mortgage servicing rights, net of payoffs		22,919		16,676		15,075
Loan origination fee income on residential mortgage loans		20,802		10,702		9,371
Unrealized gains (loss) on IRLCs and other derivatives		10,062		1,521		(834)
Residential mortgage banking activities	$	252,720	$	83,539	$	59,852
Variable expenses on residential mortgage banking activities	$	(114,510)	$	(51,760)	$	(22,228)