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Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2021

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% - 13% (representing a weighted average discount rate of 10%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 8.6 years at both June 30, 2021 and December 31, 2020.

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


	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	367,428	$	39,552	$	406,980	$	336,466	$	43,508	$	379,974
Additions		31,971		—		31,971		77,009		—		77,009
Amortization		(11,796)		(2,871)		(14,667)		(22,875)		(5,996)		(28,871)
Write-downs and payoffs		(4,540)		(1,091)		(5,631)		(7,537)		(1,922)		(9,459)
Ending balance	$	383,063	$	35,590	$	418,653	$	383,063	$	35,590	$	418,653


	Three Months Ended June 30, 2020						Six Months Ended June 30, 2020
Beginning balance	$	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)
Ending balance	$	260,452	$	52,836	$	313,288	$	260,452	$	52,836	$	313,288

We collected prepayment fees totaling $4.2 million and $6.9 million during the three and six months ended June 30, 2021, respectively, and $3.0 million and $8.1 million during the three and six months ended June 30, 2020, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of operations. As of June 30, 2021 and December 31, 2020, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded as of June 30, 2021 is as follows (in thousands):


Year	Amortization
2021 (six months ending 12/31/2021)	$	29,936
2022		57,277
2023		53,613
2024		49,872
2025		46,778
2026		42,711
Thereafter		138,466
Total	$	418,653

Actual amortization may vary from these estimates.