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MORTGAGE SERVICING RIGHTS
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
MORTGAGE SERVICING RIGHTS
7. MORTGAGE SERVICING RIGHTS
MSR represent the rights and obligations associated with servicing pools of residential mortgage loans. The Company and its subsidiaries do not originate or directly service residential mortgage loans. Rather, these activities are carried out by duly licensed subservicers who perform substantially all servicing functions for the loans underlying the MSR. The Company generally intends to hold the MSR as investments and elected to account for all of its investments in MSR at fair value. As such, they are recognized at fair value on the accompanying Consolidated Statements of Financial Condition with changes in the estimated fair value presented as a component of Net gains (losses) on investments and other in the Consolidated Statements of Comprehensive Income (Loss).
Interests in MSR represent agreements to purchase all, or a component of, net servicing cash flows. A third party acted as a master servicer for the loans providing the net servicing cash flows represented by the Interests in MSR. The Company accounts for its Interests in MSR at fair value with change in fair value presented in Net gains (losses) on investments and other in the Consolidated Statements of Comprehensive Income (Loss). Cash flows received for Interests in MSR are recorded in Other, net in the Consolidated Statements of Comprehensive Income (Loss).
The following tables present activity related to MSR and Interests in MSR for the three and nine months ended September 30, 2023 and 2022:  
 Mortgage Servicing RightsThree Months EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
 (dollars in thousands)
Fair value, beginning of period$2,018,896 $1,421,420 $1,748,209 $544,562 
Purchases (1)
185,299 182,784 399,450 866,767 
Transfers— 82,650 — 82,650 
Sales— — — (9,076)
Change in fair value due to:
Changes in valuation inputs or assumptions (2)
62,315 43,274 172,845 281,843 
Other changes, including realization of expected cash flows(31,697)(24,874)(85,691)(61,492)
Fair value, end of period$2,234,813 $1,705,254 $2,234,813 $1,705,254 
(1) Includes adjustments to original purchase price from early payoffs, defaults, or loans that were delivered but were deemed to not be acceptable.
(2) Principally represents changes in discount rates and prepayment speed inputs used in valuation model, primarily due to changes in interest rates.

Interests in MSRThree Months EndedNine Months Ended
September 30, 2022September 30, 2022
(dollars in thousands)
Beginning balance$83,622 $69,316 
Purchases (1)
— 4,860 
Transfers(82,650)(82,650)
Gain (loss) included in net income(972)8,474 
Ending balance$— $— 
(1) Includes adjustments to original purchase price from early payoffs, defaults, or loans that were delivered but were deemed to not be acceptable.