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SERVICER ADVANCE INVESTMENTS (Tables)
 6 Months Ended
Jun. 30, 2022
Investments, All Other Investments [Abstract]  
Summary of Investments in Servicer Advances
The table below summarizes the type of advances included in the Servicer Advances Receivable:
June 30, 2022December 31, 2021
Principal and interest advances$622,819 $562,418 
Escrow advances (taxes and insurance advances)1,243,374 1,523,154 
Foreclosure advances741,440 793,098 
Total(A)(B)(C)
$2,607,633 $2,878,670 
(A)Includes $486.8 million and $593.0 million of servicer advances receivable related to Agency MSRs, respectively, recoverable either from the borrower or the Agencies.
(B)Includes $168.0 million and $212.9 million of servicer advances receivable related to Ginnie Mae MSRs, respectively, recoverable from either the borrower or Ginnie Mae. Expected losses for advances associated with Ginnie Mae loans in the MSR portfolio are considered in the MSR fair valuation through a nonreimbursable advance loss assumption.
(C)Excludes $46.9 million and $23.5 million, respectively, in unamortized advance discount and reserves, net of accruals for advance recoveries. These reserves relate to inactive loans in the foreclosure or liquidation process.
The following table summarizes Servicer Advance Investments, including the right to the basic fee component of the related MSRs:
Amortized Cost Basis
Carrying Value(A)
Weighted Average Discount RateWeighted Average Yield
Weighted Average Life (Years)(B)
June 30, 2022
Servicer Advance Investments$365,677 $379,901 5.2 %5.5 %7.5
December 31, 2021
Servicer Advance Investments$405,786 $421,807 5.2 %5.5 %6.9
(A)Represents the fair value of the servicer advance investments, including the basic fee component of the related MSRs.
(B)Represents the weighted average expected timing of the receipt of expected net cash flows for this investment.

The following table provides additional information regarding the Servicer Advance Investments and related financing:
UPB of Underlying Residential Mortgage LoansOutstanding Servicer AdvancesServicer Advances to UPB of Underlying Residential Mortgage LoansFace Amount of Secured Notes and Bonds Payable
Loan-to-Value (“LTV”)(A)
Cost of Funds(C)
Gross
Net(B)
GrossNet
June 30, 2022
Servicer Advance Investments(D)
$18,224,076 $341,328 1.9 %$322,735 91.7 %91.0 %1.2 %1.2 %
December 31, 2021
Servicer Advance Investments(D)
$20,314,977 $369,440 1.8 %$356,580 91.4 %90.7 %1.3 %1.2 %
(A)Based on outstanding servicer advances, excluding purchased but unsettled servicer advances.
(B)Ratio of face amount of borrowings to par amount of servicer advance collateral, net of any general reserve.
(C)Annualized measure of the cost associated with borrowings. Gross cost of funds primarily includes interest expense and facility fees. Net cost of funds excludes facility fees.
(D)The following table summarizes the types of advances included in Servicer Advance Investments:
June 30, 2022December 31, 2021
Principal and interest advances$64,203 $67,014 
Escrow advances (taxes and insurance advances)153,991 174,681 
Foreclosure advances123,134 127,745 
Total$341,328 $369,440 
Schedule of Interest Income Related to Investments in Servicer Advances
The following table summarizes interest income related to Servicer Advance Investments:
Three Months Ended
June 30,		Six Months Ended June 30,
2022202120222021
Interest income, gross of amounts attributable to servicer compensation$7,969 $3,544 $21,344 $17,505 
Amounts attributable to base servicer compensation(826)(590)(2,306)(1,746)
Amounts attributable to incentive servicer compensation
(4,445)(3,043)(12,184)(9,036)
Interest income (expense) from servicer advance investments$2,698 $(89)$6,854 $6,723 
The following table summarizes the net interest income for residential mortgage loans:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Interest income:
Loans held-for-investment, at fair value$10,468 $11,911 $20,749 $22,971 
Loans held-for-sale, at lower of cost or fair value2,045 4,132 3,816 12,274 
Loans held-for-sale, at fair value56,343 48,513 126,651 88,485 
Total interest income68,856 64,556 151,216 123,730 
Interest expense:
Loans held-for-investment, at fair value3,081 4,079 6,162 8,890 
Loans held-for-sale, at lower of cost or fair value823 2,554 1,672 10,340 
Loans held-for-sale, at fair value and SFR properties39,267 29,790 81,379 56,532 
Total interest expense43,171 36,423 89,213 75,762 
Net interest income$25,685 $28,133 $62,003 $47,968