MSRs

During the three months ended March 31, 2019, the Company retained the servicing rights associated with an aggregate principal balance of $398,097,489 of residential mortgage loans that the Company had previously transferred to four 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. In addition, the Company previously consolidated the assets and liabilities of the CSMC 2014-OAK1 Trust, but following the sale of subordinated and first loss securities during the second quarter of 2018, the Company has determined that it is no longer the primary beneficiary of the trust, and accordingly no longer consolidates its assets and liabilities. Consequently, MSRs associated with this trust are recorded on the Company's condensed consolidated balance sheet at March 31, 2019.

The following table presents the Company’s MSR activity for the three months ended March 31, 2019 and the three months ended March 31, 2018:



	March 31, 2019			March 31, 2018
Balance at beginning of period	$	3,997,786		$	2,963,861
MSRs relating to sales to securitizations	—			—
MSRs related to deconsolidation of securitization trust	—			—
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model	(289,762		)	174,761
Other changes to fair value⁽¹⁾	(90,236		)	(117,073		)
Balance at end of period	$	3,617,788		$	3,021,549

Loans associated with MSRs⁽²⁾	$	398,097,489		$	324,933,643
MSR values as percent of loans⁽³⁾	0.91		%	0.93		%


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


(2)	Amounts represent the unpaid principal balance of loans associated with MSRs outstanding at March 31, 2019 and March 31, 2018, respectively.


(3)	Amounts represent the carrying value of MSRs at March 31, 2019 and March 31, 2018, respectively divided by the outstanding balance of the loans associated with these MSRs.

The following table presents the servicing income recorded on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2019 and March 31, 2018:



	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Servicing income	$	248,214	$	219,978
Total servicing income	$	248,214	$	219,978