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Mortgage banking activities
 6 Months Ended
Jun. 30, 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:

 

 

Quarters ended June 30,

Six months ended June 30,

(In thousands)

 

2019

 

2018

 

2019

 

2018

Mortgage servicing fees, net of fair value adjustments:

 

 

 

 

 

 

 

 

 

Mortgage servicing fees

$

11,916

$

12,425

$

23,603

$

24,881

 

Mortgage servicing rights fair value adjustments

 

(17,186)

 

(4,622)

 

(21,011)

 

(8,929)

Total mortgage servicing fees, net of fair value adjustments

 

(5,270)

 

7,803

 

2,592

 

15,952

Net gain on sale of loans, including valuation on loans held-for-sale

 

5,215

 

2,460

 

9,232

 

3,517

Trading account (loss) profit:

 

 

 

 

 

 

 

 

 

Unrealized (losses) gains on outstanding derivative positions

 

(227)

 

45

 

(227)

 

(176)

 

Realized (losses) gains on closed derivative positions

 

(1,491)

 

(237)

 

(3,444)

 

2,846

Total trading account (loss) profit

 

(1,718)

 

(192)

 

(3,671)

 

2,670

Total mortgage banking activities

$

(1,773)

$

10,071

$

8,153

$

22,139