Note 6 — Capitalized Mortgage Servicing Rights

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived from loans sold in our Agency Business. The discount rates used to determine the present value of our MSRs throughout the periods presented for all MSRs were between 8-15% (representing a weighted average discount rate of 13%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 7.1 years and 6.9 years at September 30, 2017 and December 31, 2016, respectively.

A summary of our capitalized MSR activity is as follows:

	Three Months Ended September 30, 2017									Nine Months Ended September 30, 2017
	Acquired			Originated			Total			Acquired			Originated			Total
Balance at beginning of period	$	168,189,300		$	74,894,159		$	243,083,459		$	194,800,754		$	32,942,232		$	227,742,986
Additions	—			20,719,529			20,719,529			—			66,273,164			66,273,164
Amortization	(8,952,573		)	(2,758,805		)	(11,711,378		)	(29,074,057		)	(6,353,160		)	(35,427,217		)
Write-offs	(4,193,665		)	(22,286		)	(4,215,951		)	(10,683,635		)	(29,639		)	(10,713,274		)

Balance at end of period	$	155,043,062		$	92,832,597		$	247,875,659		$	155,043,062		$	92,832,597		$	247,875,659

	Three and Nine Months Ended September 30, 2016
Balance at beginning of period	$	—		$	—		$	—
Additions	221,647,421			11,905,394			233,552,815
Amortization	(7,358,639		)	(227,885		)	(7,586,524		)
Write-offs	(1,669,081		)	—			(1,669,081		)

Balance at end of period	$	212,619,701		$	11,677,509		$	224,297,210

We recorded write-offs relating to specific MSRs, primarily due to prepayments of certain loans, of $4.2 million and $10.7 million during the three and nine months ended September 30, 2017, respectively, and $1.7 million during both the three and nine months ended September 30, 2016. We collected prepayment fees of $3.8 million and $7.9 million during the three and nine months ended September 30, 2017, respectively, and $1.5 million during both the three and nine months ended September 30, 2016, which are included as a component of servicing revenue, net on the consolidated statements of income. As of September 30, 2017 and December 31, 2016, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of September 30, 2017 is shown in the table below. Actual amortization may vary from these estimates.

Year	Amortization
2017 (three months ended 12/31/2017)	$	11,925,780
2018	45,577,306
2019	41,680,988
2020	35,461,494
2021	28,170,144
2022	22,176,139
Thereafter	62,883,808

Total	$	247,875,659