Mortgage Servicing Rights (Tables)

9 Months Ended

Sep. 30, 2016

Changes in Residential and Participation Mortgage Servicing Rights

The following tables set forth the changes in the balances of residential MSRs and participation MSRs for the periods indicated:

	For the Three Months Ended
	September 30, 2016						September 30, 2015
(in thousands)	Residential			Participation			Residential			Participation
Carrying value, beginning of period	$	188,331		$	5,663		$	250,963		$	2,675
Additions		12,005			731			9,219			1,350
Increase (decrease) in fair value:
Due to changes in interest rates		5,668			—			(15,703	)		—
Due to model assumption changes (1)		—			—			(1,506	)		—
Due to loan payoffs		(12,818	)		—			(9,023	)		—
Due to passage of time and other changes		(1,767	)		—			(1,528	)		—
Amortization		—			(618	)		—			(229	)
Carrying value, end of period	$	191,419		$	5,776		$	232,422		$	3,796

(1) Represents changes in fair value driven by changes to the inputs to the valuation model related to assumed prepayment speeds.

	For the Nine Months Ended
	September 30, 2016						September 30, 2015
(in thousands)	Residential			Participation			Residential			Participation
Carrying value, beginning of period	$	243,389		$	4,345		$	227,297		$	—
Additions		31,185			2,999			40,217			4,178
Decrease in fair value:
Due to changes in interest rates		(32,139	)		—			(844	)		—
Due to model assumption changes (1)		(13,088	)		—			(1,506	)		—
Due to loan payoffs		(31,939	)		—			(29,502	)		—
Due to passage of time and other changes		(5,989	)		—			(3,240	)		—
Amortization		—			(1,568	)		—			(382	)
Carrying value, end of period	$	191,419		$	5,776		$	232,422		$	3,796

(1) Represents changes in fair value driven by changes to the inputs to the valuation model related to assumed prepayment speeds.

Key Assumptions Used in Calculation of Fair Value of Residential Mortgage Servicing Rights

The following table presents the key assumptions used in calculating the fair value of the Company’s residential MSRs at the dates indicated:

	September 30, 2016			December 31, 2015
Expected weighted average life		72 months			92 months
Constant prepayment speed		11.25	%		7.35	%
Discount rate		10.02			10.01
Primary mortgage rate to refinance		3.56			4.03
Cost to service (per loan per year):
Current	$	64		$	63
30-59 days delinquent		201			213
60-89 days delinquent		351			313
90-119 days delinquent		451			413
120 days or more delinquent		851			563