Capitalized Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2023

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived primarily from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% - 13% (representing a weighted average discount rate of 12%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 8.4 years and 8.6 years at June 30, 2023 and December 31, 2022, respectively.

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


	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Originated		Acquired		Total		Originated		Acquired		Total
Beginning balance	$	383,636	$	12,998	$	396,634	$	386,878	$	14,593	$	401,471
Additions	18,980		—		18,980		32,866		—		32,866
Amortization	(14,592)		(1,013)		(15,605)		(28,878)		(2,142)		(31,020)
Write-downs and payoffs	(4,757)		(842)		(5,599)		(7,599)		(1,308)		(8,907)
Ending balance	$	383,267	$	11,143	$	394,410	$	383,267	$	11,143	$	394,410

	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
Beginning balance	$	398,061	$	23,975	$	422,036	$	395,573	$	27,161	$	422,734
Additions	17,123		—		17,123		44,095		—		44,095
Amortization	(13,066)		(1,713)		(14,779)		(25,993)		(3,757)		(29,750)
Write-downs and payoffs	(10,721)		(2,125)		(12,846)		(22,278)		(3,267)		(25,545)
Ending balance	$	391,397	$	20,137	$	411,534	$	391,397	$	20,137	$	411,534

We collected prepayment fees totaling $3.0 million and $5.0 million during the three and six months ended June 30, 2023, respectively, and $15.2 million and $31.4 million during the three and six months ended June 30, 2022, respectively. Prepayment fees are included as a component of servicing revenue, net on the consolidated statements of income. At June 30, 2023 and December 31, 2022, we had no valuation allowance recorded on any of our MSRs.

The expected amortization of capitalized MSRs recorded at June 30, 2023 is as follows (in thousands):


Year	Amortization
2023 (six months ending 12/31/2023)	$	31,488
2024	61,975
2025	58,534
2026	52,448
2027	47,512
2028	41,645
Thereafter	100,808
Total	$	394,410

Based on scheduled maturities, actual amortization may vary from these estimates.