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

3 Months Ended

Mar. 31, 2021

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.

	Three Months Ended March 31,
(In Thousands)	2021		2020
Realized and unrealized gain (loss) of residential mortgage loans held for sale, at fair value	$	29,560	$	25,166
Creation of new mortgage servicing rights, net of payoffs		6,348		3,894
Loan origination fee income on residential mortgage loans		6,232		3,303
Unrealized gain (loss) on IRLCs and other derivatives		(731)		4,306
Residential mortgage banking activities	$	41,409	$	36,669
Variable expenses on residential mortgage banking activities	$	(15,485)	$	(20,129)