XML 58 R48.htm IDEA: XBRL DOCUMENT v3.23.3
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS (Tables)
12 Months Ended
Dec. 31, 2022
NON-CONSOLIDATED VARIABLE INTEREST ENTITIES AND SERVICING ASSETS [Abstract]  
Changes in Servicing Assets [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year
 
Ended December 31,
 
2022
2021
2020
(In thousands)
Balance at beginning of year
$
30,986
$
33,071
$
26,762
Purchases of servicing assets
 
(1)
-
-
7,781
Capitalization of servicing assets
3,122
5,194
4,864
Amortization
(4,978)
(7,215)
(5,777)
Temporary
 
impairment recoveries (charges), net
66
124
(206)
Other
(2)
(159)
(188)
(353)
Balance at end of year
$
29,037
$
30,986
$
33,071
(1)
Represents MSRs acquired in the BSPR acquisition.
(2)
Mainly represents adjustments related to the repurchase
 
of loans serviced for others, including MSRs related to
 
loans previously serviced for BSPR and eliminated
as part of the acquisition in the third quarter of 2020.
Changes in Impairment Allowance [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year
 
Ended December 31,
2022
2021
2020
(In thousands)
Balance at beginning of year
$
78
$
202
$
73
Temporary impairment
 
charges
-
-
301
OTTI of servicing assets
-
-
(77)
Recoveries
(66)
(124)
(95)
 
Balance at end of year
$
12
$
78
$
202
Components of Net Servicing Income [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year
 
Ended December 31,
2022
2021
2020
(In thousands)
Servicing fees
$
11,096
$
12,176
$
9,268
Late charges and prepayment penalties
823
697
570
Adjustment for loans repurchased
(159)
(188)
(353)
Other
 
-
(1)
-
 
Servicing income, gross
11,760
12,684
9,485
Amortization and impairment of servicing assets
(4,912)
(7,091)
(5,983)
 
Servicing income, net
$
6,848
$
5,593
$
3,502
Key Economic Assumptions Used in Determining Fair Value at Time of Sale of Loans [Table Text Block]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average
Maximum
Minimum
Year Ended
 
December 31, 2022
Constant prepayment rate:
 
 
Government-guaranteed mortgage loans
6.7
%
18.3
%
4.8
%
 
Conventional conforming mortgage loans
7.4
%
18.4
%
3.4
%
 
Conventional non-conforming mortgage loans
6.0
%
21.9
%
3.6
%
Discount rate:
 
Government-guaranteed mortgage loans
11.7
%
12.0
%
11.5
%
 
Conventional conforming mortgage loans
9.7
%
10.0
%
9.5
%
 
Conventional non-conforming mortgage loans
12.5
%
14.5
%
11.5
%
Year Ended
 
December 31, 2021
Constant prepayment rate:
 
 
Government-guaranteed mortgage loans
6.2
%
17.1
%
3.7
%
 
Conventional conforming mortgage loans
6.2
%
18.2
%
2.8
%
 
Conventional non-conforming mortgage loans
6.4
%
14.5
%
4.4
%
Discount rate:
 
Government-guaranteed mortgage loans
12.0
%
12.0
%
12.0
%
 
Conventional conforming mortgage loans
10.0
%
10.0
%
10.0
%
 
Conventional non-conforming mortgage loans
12.8
%
14.5
%
12.0
%
Year Ended
 
December 31, 2020
Constant prepayment rate:
 
 
Government-guaranteed mortgage loans
6.1
%
16.0
%
3.9
%
 
Conventional conforming mortgage loans
6.3
%
19.0
%
3.0
%
 
Conventional non-conforming mortgage loans
6.3
%
18.0
%
4.3
%
Discount rate:
 
Government-guaranteed mortgage loans
12.0
%
12.0
%
12.0
%
 
Conventional conforming mortgage loans
10.0
%
10.0
%
10.0
%
 
Conventional non-conforming mortgage loans
12.3
%
14.5
%
12.0
%
Weighted-Averages of Key Economic Assumptions in Valuation Model [Table Text Block]
The weighted
 
averages of the
 
key economic
 
assumptions that the
 
Corporation used
 
in its valuation
 
model and the
 
sensitivity of the
current fair value
 
to immediate
10
% and
20
% adverse changes
 
in those assumptions
 
for mortgage loans
 
as of December
 
31, 2022 and
2021 were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31,
December 31,
2022
2021
(In thousands)
Carrying amount of servicing assets
$
29,037
$
30,986
Fair value
$
44,710
$
42,132
Weighted-average
 
expected life (in years)
7.80
7.96
Constant prepayment rate (weighted-average annual
 
rate)
6.40
%
6.55
%
 
Decrease in fair value due to 10% adverse change
$
1,048
$
1,027
 
Decrease in fair value due to 20% adverse change
$
2,054
$
2,011
Discount rate (weighted-average annual rate)
10.69
%
11.17
%
 
Decrease in fair value due to 10% adverse change
$
1,925
$
1,852
 
Decrease in fair value due to 20% adverse change
$
3,704
$
3,561