Servicing Rights (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]

The following table summarizes servicing rights activity for the years ended December 31, 2019 and 2018:


	2019		2018
Beginning balance	$	10,429	$	6,795
Additions		5,400		5,971
Servicing rights amortized		(4,177)		(2,337)
Impairment of servicing rights		(92)		—
Ending balance	$	11,560	$	10,429

Key economic assumptions and the sensitivity of the current fair value for single family mortgage servicing rights

Key economic assumptions and the sensitivity of the current fair value for single family MSR to immediate adverse changes in those assumptions at December 31, 2019 and December 31, 2018 were as follows:


				December 31, 2019			December 31, 2018
Aggregate portfolio principal balance				$	1,463,732		$	1,186,858
Weighted average rate of note					4.2	%		4.3	%

At December 31, 2019	Base			0.5% Adverse Rate Change			1.0% Adverse Rate Change
Conditional prepayment rate		17.1	%		24.6	%		32.5	%
Fair value MSR	$	13,255		$	10,582		$	8,674
Percentage of MSR		0.9	%		0.7	%		0.6	%

Discount rate		9.7	%		10.2	%		10.7	%
Fair value MSR	$	13,255		$	13,037		$	12,826
Percentage of MSR		0.9	%		0.9	%		0.9	%

At December 31, 2018	Base			0.5% Adverse Rate Change			1.0% Adverse Rate Change
Conditional prepayment rate		9.4	%		11.6	%		17.7	%
Fair value MSR	$	14,218		$	12,723		$	10,358
Percentage of MSR		1.2	%		1.1	%		0.9	%

Discount rate		9.6	%		10.1	%		10.6	%
Fair value MSR	$	14,218		$	13,912		$	13,617
Percentage of MSR		1.2	%		1.2	%		1.2	%

Mortgage servicing rights

Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]

Valuation assumptions

The following provides valuation assumptions used in determining the fair value of mortgage servicing rights (“MSR”) at the dates indicated:


	At December 31,		At December 31,
	2019		2018
Key assumptions:
Weighted average discount rate	9.7	%	9.6	%
Conditional prepayment rate (“CPR”)	17.1	%	9.4	%
Weighted average life in years	5.1		7.7