Mortgage banking activities

12 Months Ended

Dec. 31, 2019

Disclosure Text Block

Mortgage Banking Activities

Note 11 – Mortgage banking activities

Income from mortgage banking activities includes mortgage servicing fees earned in connection with administering residential mortgage loans and valuation adjustments on mortgage servicing rights. It also includes gain on sales and securitizations of residential mortgage loans and trading gains and losses on derivative contracts used to hedge the Corporation’s securitization activities. In addition, lower-of-cost-or-market valuation adjustments to residential mortgage loans held for sale, if any, are recorded as part of the mortgage banking activities.

The following table presents the components of mortgage banking activities:

		Years ended December 31,
(In thousands)			2019		2018		2017
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	46,952	$	49,532	$	48,300
	Mortgage servicing rights fair value adjustments		(27,430)		(8,477)		(36,519)
Total mortgage servicing fees, net of fair value adjustments			19,522		41,055		11,781
Net gain on sale of loans, including valuation on loans held for sale			18,817		9,424		17,088
Trading account (loss) profit:
	Unrealized (losses) gains on outstanding derivative positions		-		(253)		184
	Realized (losses) gains on closed derivative positions		(6,246)		2,576		(3,557)
Total trading account (loss) profit			(6,246)		2,323		(3,373)
Total mortgage banking activities		$	32,093	$	52,802	$	25,496