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

12 Months Ended

Dec. 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 table below presents the components of residential mortgage banking activities and associated variable expenses.

	For the Year Ended December 31,
(in thousands)	2021		2020		2019
Realized and unrealized gain of residential mortgage loans held for sale, at fair value	$	101,038	$	198,937	$	54,640
Creation of new MSRs, net of payoffs		26,382		22,919		16,676
Loan origination fee income on residential mortgage loans		20,307		20,802		10,702
Unrealized gain (loss) on IRLCs and other derivatives		(10,430)		10,062		1,521
Residential mortgage banking activities	$	137,297	$	252,720	$	83,539
Variable expenses on residential mortgage banking activities	$	(75,133)	$	(114,510)	$	(51,760)