Commercial Mortgage Banking (Tables)

9 Months Ended

Sep. 30, 2014

Transfers and Servicing [Abstract]

Unpaid Principal Balance of Loans

The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows:

(Expressed in thousands)
	As of September 30, 2014		As of December 31, 2013
Unpaid principal balance of loans	$	4,044,961	$	3,885,437

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following table summarizes the changes in carrying value of MSRs for the nine months ended September 30, 2014 and 2013:

(Expressed in thousands)
	Nine Months Ended September 30,
	2014			2013
Balance at beginning of period	$	28,879		$	26,983
Originations (1)	4,252			5,668
Purchases	144			1,108
Disposals (1)	(1,754		)	(4,518		)
Amortization expense	(2,025		)	(1,120		)
Balance at end of period	$	29,496		$	28,121

(1) Includes refinancings

Schedule of Amortization Expense

Servicing rights are amortized using the straight-line method over 10 years. Future amortization expense is expected to be as follows:

(Expressed in thousands)
	Originated MSRs		Purchased MSRs		Total MSRs
2014	$	704	$	319	$	1,023
2015	2,815		1,275		4,090
2016	2,808		1,275		4,083
2017	2,802		1,268		4,070
2018	2,775		1,255		4,030
Thereafter	9,071		3,129		12,200
	$	20,975	$	8,521	$	29,496

Components of Mortgage Servicing Rights Fees

The Company receives fees during the course of servicing the mortgage loans. The fees for the three and nine months ended September 30, 2014 and 2013 were as follows:

(Expressed in thousands)
	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Servicing fees	$	1,402	$	1,287	$	4,122	$	3,739
Late fees	6		19		11		94
Ancillary fees	80		170		248		291
Total MSR fees	$	1,488	$	1,476	$	4,381	$	4,124