XML 130 R17.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

SERVICING RIGHTS | 12 Months Ended
--- | ---
Dec. 31, 2019
Transfers and Servicing [Abstract] |
SERVICING RIGHTS | SERVICING RIGHTS The following table presents a composition of total income from servicing rights, which is reported in Loan Servicing Income on the Consolidated Statements of Operations for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Servicing fees for sold loans with servicing retained |  | $ | 1,291 |  |  | $ | 5,048 |  |  | $ | 19,642 |
Losses on the fair value and amortization of servicing rights |  | (612 | ) |  | (1,328 | ) |  | (17,066 | )
Total income from servicing rights(1) |  | $ | 679 |  |  | $ | 3,720 |  |  | $ | 2,576 |
(1) | Includes $0, $0 and $1.6 million in income from discontinued operations for the years ended December 31, 2019, 2018 and 2017.
The following table presents a composition of servicing rights as of the dates indicated:
|  | December 31,
($ in thousands) |  | 2019 |  | 2018
Mortgage servicing rights, at fair value |  | $ | 1,157 |  |  | $ | 1,770 |
SBA servicing rights, at cost |  | 1,142 |  |  | 1,658 |
Total |  | $ | 2,299 |  |  | $ | 3,428 |
Mortgage loans sold with servicing retained are subserviced by a third party vendor. The unpaid principal balance of these loans at December 31, 2019 and 2018 was $150.6 million and $204.0 million and are not reported as assets. Custodial escrow balances maintained in connection with serviced loans were $198 thousand and $300 thousand at December 31, 2019 and 2018. The unpaid principal balance of the loans underlying our SBA servicing rights at December 31, 2019 and 2018 was $75.2 million and $96.4 million. Mortgage Servicing Rights The value of retained MSRs is generally estimated based on a valuation from a third party provider that calculates the present value of the expected net servicing income from the portfolio based on key factors that include interest rates, prepayment assumptions, discount rate and estimated cash flows. The following table presents the key characteristics, inputs and economic assumptions used to estimate the fair value of the MSRs as of the dates indicated:
|  | December 31,
($ in thousands) |  | 2019 |  | 2018
Fair value of retained MSRs |  | $ | 1,157 |  |  | $ | 1,704 |
Discount rate |  | 13.00 | % |  | 13.00 | %
Constant prepayment rate |  | 18.96 | % |  | 17.21 | %
Weighted-average life (in years) |  | 4.41 |  |  | 4.93 |
The following table presents activity in the MSRs for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Balance at beginning of year |  | $ | 1,770 |  |  | $ | 31,852 |  |  | $ | 76,121 |
Additions |  | — |  |  | — |  |  | 12,127 |
Changes in fair value resulting from valuation inputs or assumptions |  | (265 | ) |  | (1,155 | ) |  | (10,240 | )
Sales of servicing rights (1) |  | — |  |  | (28,549 | ) |  | (39,345 | )
Other—loans paid off |  | (348 | ) |  | (378 | ) |  | (6,811 | )
Balance at end of year |  | $ | 1,157 |  |  | $ | 1,770 |  |  | $ | 31,852 |
(1) Includes $37.8 million of MSRs sold as a part of discontinued operations for the year ended December 31, 2017. During the first half of 2018, we sold $28.5 million of MSRs on approximately $3.55 billion in unpaid principal balances of conventional agency mortgage loans for cash consideration of $30.1 million, subject to a prepayment protection provision and standard representations and warranties. The sale of MSRs resulted in a net loss of $2.3 million for the year ended December 31, 2018, primarily related to transaction costs, provision for early repayments of loans, and expected repurchase obligations under standard representations and warranties. SBA Servicing Rights The value of SBA servicing rights is estimated based on a present value of the expected net servicing income from the portfolio based on key factors that include interest rates, prepayment assumptions, discount rate and estimated cash flows. The following table presents the key characteristics, inputs and economic assumptions used to estimate the fair value of the SBA servicing rights as of the dates indicated:
|  | December 31,
($ in thousands) |  | 2019 |  | 2018
Servicing rights |  | $ | 1,142 |  |  | $ | 1,658 |
Discount rate |  | 8.75 | % |  | 9.50 | %
Constant prepayment rate |  | 8.00 | % |  | 8.00 | %
Weighted-average life (in years) |  | 3.75 |  |  | 4.29 |
The following table presents activity in the SBA servicing rights for the periods indicated:
|  | Year Ended December 31,
($ in thousands) |  | 2019 |  | 2018 |  | 2017
Balance at beginning of year |  | $ | 1,658 |  |  | $ | 1,856 |  |  | $ | 1,496 |
Additions |  | — |  |  | 127 |  |  | 761 |
Amortization, including prepayments |  | (493 | ) |  | (298 | ) |  | (318 | )
Impairment |  | (23 | ) |  | (27 | ) |  | (83 | )
Balance at end of year |  | $ | 1,142 |  |  | $ | 1,658 |  |  | $ | 1,856 |

X
- References No definition available. + Details
Name: | us-gaap_TransfersAndServicingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 860 -URI http://asc.fasb.org/topic&trid=2197590 + Details
Name: | us-gaap_TransfersAndServicingOfFinancialAssetsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration