MSRs

3 Months Ended

Mar. 31, 2020

Mortgage Servicing Rights MSR Disclosure [Abstract]

MSRs

As of March 31, 2020, the Company retained the servicing rights associated with an aggregate principal balance of $315,173,382 of residential mortgage loans that the Company had previously transferred to residential mortgage loan securitization trusts. The Company’s MSRs are held and managed at the Company’s TRS, and the Company employs two licensed sub-servicers to perform the related servicing activities.

The following table presents the Company’s MSR activity for the three months ended March 31, 2020 and the three months ended March 31, 2019:

	March 31, 2020			March 31, 2019
Balance at beginning of period	$	2,700,207		$	3,997,786
Changes in fair value due to:
Changes in valuation inputs or assumptions used in valuation model	(728,585)			(289,762)
Other changes to fair value(1)	(149,164)			(90,236)
Balance at end of period	$	1,822,458		$	3,617,788
Loans associated with MSRs(2)	$	315,173,382		$	398,097,489
MSR values as percent of loans(3)	0.58		%	0.91		%

(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, 2020 and March 31, 2019, respectively.

(3)Amounts represent the carrying value of MSRs at March 31, 2020 and March 31, 2019, 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, 2020 and March 31, 2019:

	Three Months Ended March 31, 2020		Three Months Ended March 31, 2019
Servicing income, net	$	194,147	$	248,214
Total servicing income	$	194,147	$	248,214