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MORTGAGE BANKING OPERATIONS (Tables)
 12 Months Ended
Dec. 31, 2023
Mortgage Banking [Abstract]  
Schedule of loans held for sale and sold
LHFS consisted of the following: 
At December 31,
(in thousands)20232022
Single family $12,849 $14,075 
CRE, multifamily and SBA6,788 3,252 
Total $19,637 $17,327 
Loans sold consisted of the following for the periods indicated: 
 Years Ended December 31,
(in thousands)202320222021
Single family$335,751 $693,348 $2,046,811 
CRE, multifamily and SBA26,839 145,622 773,378 
Total$362,590 $838,970 $2,820,189 
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)202320222021
Single family $8,500 $13,054 $66,850 
CRE, multifamily and SBA846 4,647 25,468 
Total $9,346 $17,701 $92,318 
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)20232022
Single family
$5,316,304 $5,436,899 
CRE, multifamily and SBA1,900,039 1,938,484 
Total$7,216,343 $7,375,383 
Schedule of mortgage repurchase losses The following is a summary of changes in the Company's mortgage repurchase liability for single family loans sold on a servicing-retained and servicing-released basis included in accounts payable and other liabilities on the consolidated balance sheet for the periods indicated:
 Years Ended December 31,
(in thousands)20232022
Balance, beginning of period$2,232 $1,312 
Additions, net of adjustments (1)
(330)1,629 
Realized losses (2)
(421)(709)
Balance, end of period$1,481 $2,232 
(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)202320222021
Servicing income, net:
Servicing fees and other$26,134 $32,082 $35,342 
Amortization of single family MSRs (1)
(6,378)(9,951)(19,669)
Amortization of multifamily and SBA MSRs(5,778)(7,692)(7,581)
Total13,978 14,439 8,092 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
414 16,739 7,379 
Net gain (loss) from economic hedging (3)
(1,744)(18,790)(8,238)
Total(1,330)(2,051)(859)
Loan servicing income $12,648 $12,388 $7,233 
(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)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $1.4 million and $0.6 million in 2023 and 2022, respectively.
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)202320222021
Beginning balance$76,617 $61,584 $49,966 
Additions and amortization:
Originations
3,136 8,245 23,908 
Purchases
460 — — 
Amortization (1)
(6,378)(9,951)(19,669)
Net additions and amortization
(2,782)(1,706)4,239 
Changes in fair value assumptions (2)
414 16,739 7,379 
Ending balance$74,249 $76,617 $61,584 
(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 affected 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)
202320222021
Constant prepayment rate ("CPR") (2)
14.89 %10.91 %8.84 %
Discount rate11.99 %9.35 %8.23 %
(1)Based on a weighted average.
(2)Represents the expected lifetime average CPR used in the model.
Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
 
Years Ended December 31,
(rates per annum) (1)
202320222021
Discount rate13.00 %13.00 %13.00 %
(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, 2023At December 31, 2022
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
6.80% - 32.50%
7.00 %
6.01%- 11.10%
8.19 %
Discount Rates
10.00% - 17.00%
10.00 %
9.74% -16.88%
10.66 %
(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, 2023
Fair value of single family MSRs$74,249 
Expected weighted-average life (in years)8.23
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(668)
Impact on fair value of 50 basis points adverse change in interest rates$(1,518)
Discount rate
Impact on fair value of 100 basis points increase$(1,587)
Impact on fair value of 200 basis points increase$(4,138)
 
For multifamily 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, 2023At December 31, 2022
Range of Inputs
Average (1)
Range of Inputs
Average (1)
Discount Rates
13.00% - 13.00%
13.00 %
13.00% - 13.00%
13.00 %
(1) Weighted averages of all the inputs within the range.
Changes in multifamily MSRs measured at the lower of amortized cost or fair value
The changes in multifamily and SBA MSRs measured at LOCOM or fair value were as follows:
 
Years Ended December 31,
(in thousands)202320222021
Beginning balance$35,256 $39,415 $35,774 
Origination
509 3,533 11,222 
Amortization
(5,778)(7,692)(7,581)
Ending balance$29,987 $35,256 $39,415 
Projected amortization expense for the gross carrying value of multifamily MSRs Projected amortization expense for the gross carrying value of multifamily and SBA MSRs is estimated as follows:
 
(in thousands)At December 31, 2023
2024$5,318 
20255,080 
20264,598 
20273,880 
20283,425 
2029 and thereafter7,686 
Carrying value of multifamily and SBA MSRs$29,987