During the three months ended March 31, 2018, the Company retained the servicing rights associated with an aggregate principal balance of $324,933,643 of residential mortgage loans that the Company had previously transferred to three residential mortgage loan securitization trusts. The Company’s MSRs are held and managed at the Company’s TRS, and the Company employs one or more licensed sub-servicers to perform the related servicing activities. To the extent that the Company determines it is the primary beneficiary of a residential mortgage loan securitization trust into which it has sold loans, any associated MSRs are eliminated on the consolidation of the trust. The trust is contractually obligated to pay a portion of the interest payments from the associated residential mortgage loans for the direct servicing of the loans, and after deduction of sub-servicing fees payable to contracted sub-servicers, the net amount, excess servicing rights, represents a liability of the trust. Upon consolidation of the trust, the fair value of the excess servicing rights is equal to the related MSRs held at the Company’s TRS.

The following table presents the Company’s MSR activity as of March 31, 2018 and the year ended December 31, 2017:



	March 31, 2018			December 31, 2017
Balance at beginning of year	$	2,963,861		$	3,440,809
MSRs relating to sales to securitizations	—			10,910
MSRs related to deconsolidation of securitization trust	—			—
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model	174,761			39,688
Other changes to fair value (1)	(117,073		)	(527,546		)
Balance at end of period	$	3,021,549		$	2,963,861

Loans associated with MSRs (2)	$	324,933,643		$	338,167,569
MSR values as percent of loans (3)	0.93		%	0.88		%


(1)	Amounts represent changes due to realization of expected cash flows.


(2)	Amounts represent the principal balance of loans associated with MSRs outstanding at March 31, 2018 and December 31, 2017, respectively.


(3)	Amounts represent the carrying value of MSRs at March 31, 2018 and December 31, 2017, respectively divided by the outstanding balance of the loans

associated with these MSRs.

The following table presents the components of servicing income recorded on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2018, and March 31, 2017:



	Three Months Ended March 31, 2018		Three Months Ended March 31, 2017
Servicing income	$	219,978	$	252,738
Total servicing income	$	219,978	$	252,738