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MORTGAGE BANKING OPERATIONS (Tables)
 12 Months Ended
Dec. 31, 2021
Mortgage Banking [Abstract]  
Schedule of Loans Held for Sale and Sold
LHFS consisted of the following:
 
At December 31,
(in thousands)20212020
Single family $128,041 $194,643 
CRE, multi-family and SBA48,090 167,289 
Total $176,131 $361,932 
Loans sold consisted of the following for the periods indicated:
 
 Years Ended December 31,
(in thousands)202120202019
Single family (1)
$2,046,811 $1,985,944 $3,925,302 
CRE, multi-family and SBA773,378 908,776 843,864 
Total$2,820,189 $2,894,720 $4,769,166 
(1) 2019 includes both continuing and discontinued operations.
Net Gain on Mortgage Loan Origination and Sale Activity
Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Years Ended December 31,
(in thousands)202120202019
Single family $66,850 $100,795 $86,686 
CRE, multifamily and SBA25,468 21,769 17,492 
Less: Amounts attributed to discontinued operations— — (60,056)
Total $92,318 $122,564 $44,122 
Company's Portfolio of Loans Serviced for Others The unpaid principal balance of loans serviced for others is as follows:
At December 31,
(in thousands)20212020
Single family
$5,539,180 $5,914,592 
CRE, multi-family and SBA2,031,087 1,844,241 
Total$7,570,267 $7,758,833 
Schedule of Mortgage Repurchase Losses
The following is a summary of changes in the Company's liability for estimated mortgage repurchase losses:
 Years Ended December 31,
(in thousands)20212020
Balance, beginning of period$2,122 $2,871 
Additions, net of adjustments (1)
(334)(281)
Realized losses (2)
(476)(468)
Balance, end of period$1,312 $2,122 
 
(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.:
 
 Years Ended December 31,
(in thousands)202120202019
Servicing income, net:
Servicing fees and other$35,342 $32,037 $39,561 
Amortization of single family MSRs (1)
(19,669)(17,754)(20,670)
Amortization of multifamily and SBA MSRs(7,581)(5,657)(5,214)
8,092 8,626 13,677 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)(3)
7,379 (19,955)(16,224)
Net gain (loss) from derivatives hedging(8,238)20,820 14,435 
Total(859)865 (1,789)
Less: Amounts attributed to discontinued operations— — (2,103)
Loan servicing income $7,233 $9,491 $9,785 
 
(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.
(3)Includes pre-tax loss of $0.9 million, net of transaction costs and prepayment reserves, resulting from the sales of single family MSRs in 2019.
Changes in Single Family MSRs Measured at Fair Value The changes in single family MSRs measured at fair value are as follows:
 
 Years Ended December 31,
(in thousands)202120202019
Beginning balance$49,966 $68,109 $252,168 
Additions and amortization:
Originations
23,908 19,424 28,788 
Sale — — (176,944)
Amortization (1)
(19,669)(17,754)(20,670)
Net additions and amortization
4,239 1,670 (168,826)
Changes in fair value assumptions (2)
7,379 (19,813)(15,233)
Ending balance$61,584 $49,966 $68,109 
 
(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:
 
Years Ended December 31,
(rates per annum) (1)
202120202019
Constant prepayment rate ("CPR") (2)
8.84 %11.37 %18.23 %
Discount rate8.23 %7.82 %9.31 %
 
(1)Based on a weighted average.
(2)Represents the 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 December 31, 2021At December 31, 2020
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
7.90% - 17.35%
10.35 %
8.13%- 19.70%
12.81 %
Discount Rates
6.94% - 13.96%
7.97 %
6.50% -13.14%
8.27 %

(1) Weighted averages of all the inputs within the range.

To compute hypothetical sensitivities of the value of our single MSRs to immediate adverse changes in key assumptions, we computed the impact of changes in CPRs and in discount rates as outlined below:

(dollars in thousands)At December 31, 2021
Fair value of single family MSRs$61,584 
Expected weighted-average life (in years)5.94
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(3,641)
Impact on fair value of 50 basis points adverse change in interest rates$(7,325)
Discount rate
Impact on fair value of 100 basis points increase$(2,999)
Impact on fair value of 200 basis points increase$(5,770)
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:
 
Years Ended December 31,
(in thousands)202120202019
Beginning balance$35,774 $29,494 $28,328 
Origination
11,222 11,587 5,832 
Amortization
(7,581)(5,307)(4,666)
Ending balance$39,415 $35,774 $29,494 
Projected Amortization Expense for the Gross Carrying Value of Multifamily MSRs Projected amortization expense for the gross carrying value of multifamily MSRs is estimated as follows:
 
(in thousands)At December 31, 2021
2022$5,766 
20235,627 
20245,392 
20255,061 
20264,437 
2027 and thereafter13,132 
Carrying value of multifamily and SBA MSRs$39,415