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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2024

Transfers and Servicing [Abstract]

Schedule of Changes to MSR Assets

The following table summarizes changes to the MSR assets:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Fair value, beginning of period			$	6,691,341					$	6,669,939					$	6,439,787					$	6,946,940
MSRs originated			345,545						314,840						568,342						519,400
MSRs sales			(74,395)						(594,463)						(125,739)						(676,001)
MSRs purchases			314,543						—						331,238						—
Changes in fair value (1):
Due to changes in valuation model inputs or assumptions			74,988						245,495						302,357						27,693
Due to collection/realization of cash flows			(189,332)						(192,179)						(353,295)						(374,400)
Total changes in fair value			(114,344)						53,316						(50,938)						(346,707)
Fair value, end of period			$	7,162,690					$	6,443,632					$	7,162,690					$	6,443,632

(1)    Reflects changes in market interest rates and assumptions, including discount rates and prepayment speeds, and the effects of contractual prepayment protection associated with sales or purchases of MSRs. It does not include the change in fair value of derivatives that economically hedge MSRs identified for sale or the effects of contractual prepayment protection resulting from sales or purchases of MSRs.

Schedule of Assumptions Used to Determine Fair Value of MSRs

The following is a summary of the weighted average discount rate and prepayment speed assumptions used to determine the fair value of MSRs as well as the expected life of the loans in the servicing portfolio:

			June 30, 2024						December 31, 2023
Discount rate			9.9		%				9.9		%
Prepayment speeds			7.4		%				7.5		%
Life (in years)			7.86						7.83

Schedule of Discount Rate and Prepayment Speeds at Two Different Data Points

The following sensitivity analysis shows the potential impact on the fair value of the Company’s MSRs based on hypothetical changes in key assumptions, including the discount rate and prepayment speeds:

			Discount Rate												Prepayment Speeds
			100 BPS Adverse Change						200 BPS Adverse Change						10% Adverse Change						20% Adverse Change
June 30, 2024
Mortgage servicing rights			$	(301,452)					$	(578,454)					$	(186,762)					$	(364,196)
December 31, 2023
Mortgage servicing rights			$	(279,493)					$	(536,573)					$	(183,254)					$	(356,871)

X

- Definition

Tabular disclosure of all information related to the key inputs and assumptions (including, at a minimum, but not limited to, and if applicable, quantitative information about discount rates, expected prepayments including the expected weighted-average life of prepayable financial assets, and anticipated credit losses) used in measuring the fair value of assets or liabilities that relate to the transferor's continuing involvement with transferred financial assets, as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

+ Details

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X

- Definition

Tabular disclosure of a sensitivity analysis or stress test showing the hypothetical effect on the fair value of the transferor's interests in transferred financial assets (including any servicing assets or servicing liabilities) of two or more unfavorable variations from the expected levels for each key assumption that is reported, independently determined from any change in another key assumption, and a description of the objectives, methodology, and limitations of the sensitivity analysis or stress test.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481326/860-20-50-4

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X

- Definition

Tabular disclosure of the activity in the balance of servicing assets (including a description of where changes in fair value are reported in the statement of income for each period for which results of operations are presented), including but not limited to, the following: beginning and ending balances, additions (for instance, through purchases of servicing assets), disposals, changes in fair value during the period resulting from changes in inputs or assumptions used in the valuation model, other changes in fair value along with a description of those changes, and other changes that affect the balance along with a description of those changes.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 860
-SubTopic 50
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481229/860-50-50-3

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- References

No definition available.

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