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MORTGAGE BANKING OPERATIONS - (Tables)
 9 Months Ended
Sep. 30, 2021
Mortgage Banking [Abstract]  
Mortgage Loans on Real Estate, by Loan
LHFS consisted of the following: 
(in thousands)At September 30, 2021At December 31, 2020
Single family$135,942 $194,643 
Commercial real estate, multifamily and SBA259,170 167,289 
Total$395,112 $361,932 

Loans sold consisted of the following for the periods indicated: 
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Single family$469,090 $686,280 $1,669,412 $1,393,283 
Commercial real estate, multifamily and SBA69,810 170,980 465,948 502,059 
Total$538,900 $857,260 $2,135,360 $1,895,342 
Net Gain on Loan Origination and Sale Activity
Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Single family$14,249 $27,632 $56,272 $73,751 
Commercial real estate, multifamily and SBA3,260 5,498 15,967 11,947 
Total$17,509 $33,130 $72,239 $85,698 
Company's Portfolio of Loans Serviced for Others
The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows:

(in thousands)At September 30, 2021At December 31, 2020
Single family $5,625,386 $5,914,592 
Commercial real estate, multifamily and SBA 2,064,492 1,844,241 
Total$7,689,878 $7,758,833 
Mortgage Repurchase Losses The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses for the periods indicated:
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Balance, beginning of period$1,612 $2,083 $2,122 $2,871 
Additions, net of adjustments (1)
(183)252 (229)(275)
Realized (losses) recoveries, net (2)
14 (240)(450)(501)
Balance, end of period$1,443 $2,095 $1,443 $2,095 
 
(1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related     expenses.
Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following for the periods indicated: 
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Servicing income, net:
Servicing fees and other$7,897 $7,220 $26,055 $23,073 
Amortization of single family MSRs (1)
(4,579)(4,401)(15,453)(12,246)
Amortization of multifamily and SBA MSRs(1,758)(1,350)(5,235)(4,084)
Total
1,560 1,469 5,367 6,743 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
747 (2,960)7,186 (21,970)
Net gain (loss) from derivative hedging (293)(91)(7,860)22,148 
Total
454 (3,051)(674)178 
               Loan servicing income (loss)$2,014 $(1,582)$4,693 $6,921 

(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily reflected by changes in mortgage interest rates.
Changes in Single Family MSRs Measured at Fair Value
The changes in single family MSRs measured at fair value are as follows for the periods indicated:
Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Beginning balance$59,872 $47,804 $49,966 $68,109 
Additions and amortization:
Originations
5,166 6,569 19,507 12,942 
Amortization (1)
(4,579)(4,401)(15,453)(12,246)
Net additions and amortization
587 2,168 4,054 696 
Changes in fair value assumptions (2)
747 (2,954)7,186 (21,787)
Ending balance$61,206 $47,018 $61,206 $47,018 

(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily reflected by changes in mortgage interest rates.
Key Economic Assumptions Used in Measuring Initial FV of Capitalized Single Family MSRs
Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows for the periods indicated: 
Quarter Ended September 30,Nine Months Ended September 30,
(rates per annum) (1)
2021202020212020
Constant prepayment rate ("CPR") (2)
9.84 %
20.0% - 30.0%
8.75 %
17.1% - 30.0%
Discount rate 7.77 %7.71 %8.25 %7.78 %
(1) Based on a weighted average.
(2) Represents an expected lifetime average CPR used in the model.
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
At September 30, 2021At December 31, 2020
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
7.98% - 17.43%
10.74 %
8.13% - 19.70%
12.81 %
Discount Rates
6.54% - 13.78%
7.84 %
6.50% - 13.14%
8.27 %
(1) Averages of all the inputs within the range.

To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:
(dollars in thousands)At September 30, 2021
Fair value of single family MSR$61,206 
Expected weighted-average life (in years)5.87
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(3,490)
Impact on fair value of 50 basis points adverse change in interest rates$(7,016)
Discount rate
Impact on fair value of 100 basis points increase$(2,949)
Impact on fair value of 200 basis points increase$(5,675)
Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value
The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows for the periods indicated: 
Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2021202020212020
Beginning balance$39,113 $30,583 $35,774 $29,494 
Originations2,270 2,524 9,086 6,129 
Amortization(1,758)(1,301)(5,235)(3,817)
Ending balance$39,625 $31,806 $39,625 $31,806