Mortgage Servicing Rights and Mortgage Servicing Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Mortgage Servicing Rights and Mortgage Servicing Liabilities

Schedule of activity in MSRs carried at fair value

	Quarter ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	(in thousands)
Balance at beginning of period	$	2,193,697	$	2,905,090	$	2,926,790	$	2,820,612
Additions:
Resulting from loan sales		225,534		183,331		507,849		299,082
Purchases (purchase adjustments)		—		(373)		25,760		227,399
		225,534		182,958		533,609		526,481
Change in fair value due to:
Changes in valuation inputs used in valuation model (1)		(98,681)		(256,449)		(1,014,543)		(418,087)
Other changes in fair value (2)		(107,011)		(111,264)		(232,317)		(208,671)
Total change in fair value		(205,692)		(367,713)		(1,246,860)		(626,758)
Balance at end of period	$	2,213,539	$	2,720,335	$	2,213,539	$	2,720,335
					June 30,		December 31,
					2020		2019
					(in thousands)
Fair value of mortgage servicing rights pledged to secure Assets sold under agreements to repurchase and Notes payable secured by mortgage servicing assets					$	2,209,928	$	2,920,603

(1) Principally reflects changes in discount rate, prepayment speed and servicing cost inputs.

(2) Represents changes due to realization of cash flows.

Schedule of activity in mortgage servicing liability carried at fair value

	Quarter ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	(in thousands)
Balance at beginning of period	$	29,761	$	7,844	$	29,140	$	8,681
Mortgage servicing liabilities resulting from loan sales		—		6,838		6,576		7,632
Changes in fair value due to:
Changes in valuation inputs used in valuation model (1)		9,673		2,756		14,105		6,057
Other changes in fair value (2)		(9,576)		(4,490)		(19,963)		(9,422)
Total change in fair value		97		(1,734)		(5,858)		(3,365)
Balance at end of period	$	29,858	$	12,948	$	29,858	$	12,948

(1) Principally reflects changes in expected borrower performance and servicer losses given default.

(2) Represents changes due to realization of cash flows.

Summary of servicing fees, late fees and ancillary and other fees relating to MSRs recorded on the consolidated statements of income

	Quarter ended June 30,				Six months ended June 30,
	2020		2019		2020		2019
	(in thousands)
Contractual servicing fees	$	199,178	$	180,753	$	397,831	$	347,543
Other fees:
Late charges		8,490		9,015		21,103		18,827
Other		5,971		2,612		10,821		4,273
	$	213,639	$	192,380	$	429,755	$	370,643