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Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2020

Capitalized Mortgage Servicing Rights

Note 5 — Capitalized Mortgage Servicing Rights

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived from loans sold in our Agency Business or acquired MSRs. 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 8.2 years and 8.0 years at June 30, 2020 and December 31, 2019, respectively.

A summary of our capitalized MSR activity is as follows (in thousands):


	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
	Originated		Acquired		Total		Originated		Acquired		Total
Balance at beginning of period	$	230,377	$	58,577	$	288,954	$	221,901	$	64,519	$	286,420
Additions		39,875		—		39,875		60,151		—		60,151
Amortization		(7,998)		(3,893)		(11,891)		(15,614)		(8,099)		(23,713)
Write-downs and payoffs		(1,802)		(1,848)		(3,650)		(5,986)		(3,584)		(9,570)
Balance at end of period	$	260,452	$	52,836	$	313,288	$	260,452	$	52,836	$	313,288


	Three Months Ended June 30, 2019						Six Months Ended June 30, 2019
Balance at beginning of period	$	189,610	$	88,029	$	277,639	$	176,686	$	97,084	$	273,770
Additions		15,923		—		15,923		36,532		—		36,532
Amortization		(6,778)		(5,546)		(12,324)		(13,145)		(11,461)		(24,606)
Write-downs and payoffs		(1,599)		(2,991)		(4,590)		(2,917)		(6,131)		(9,048)
Balance at end of period	$	197,156	$	79,492	$	276,648	$	197,156	$	79,492	$	276,648

We collected prepayment fees totaling $3.0 million and $8.1 million during the three and six months ended June 30, 2020, respectively, and $3.5 million and $8.5 million during the three and six months ended June 30, 2019, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of operations. As of June 30, 2020 and December 31, 2019, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of June 30, 2020 is as follows (in thousands):


Year	Amortization
2020 (six months ending 12/31/2020)	$	24,372
2021		46,434
2022		42,337
2023		38,209
2024		34,141
2025		31,015
Thereafter		96,780
Total	$	313,288

Actual amortization may vary from these estimates.