XML 21 R12.htm IDEA: XBRL DOCUMENT v3.23.3
Mortgage Servicing
 9 Months Ended
Sep. 30, 2023
Transfers and Servicing [Abstract]  
Mortgage Servicing Mortgage Servicing
Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):
September 30, 2023
Product ConcentrationsGeographic Concentrations
Product UPB (1)% of Total StateUPB % of Total
Fannie Mae$20,463,620 68 %Texas11 %
Freddie Mac5,184,888 17 %New York11 %
Private Label2,371,475 8 %North Carolina8 %
FHA1,322,832 5 %California8 %
Bridge (2)305,950 1 %Georgia6 %
SFR - Fixed Rate287,942 1 %Florida6 %
Total$29,936,707 100 %New Jersey5 %
Illinois4 %
Other (3)41 %
Total100 %
December 31, 2022
Fannie Mae$19,038,124 68 %Texas11 %
Freddie Mac5,153,207 18 %New York11 %
Private Label2,074,859 8 %California8 %
FHA1,155,893 4 %North Carolina8 %
Bridge (2)301,182 1 %Georgia6 %
SFR - Fixed Rate274,764 1 %Florida5 %
Total$27,998,029 100 %New Jersey5 %
Illinois4 %
Other (3)42 %
Total100 %
________________________
(1)Excludes loans which we are not collecting a servicing fee.
(2)Represents bridge loans that were either sold by our Structured Business or refinanced by a third-party lender which we retained the right to service.
(3)No other individual state represented 4% or more of the total.
At September 30, 2023 and December 31, 2022, our weighted average servicing fee was 39.7 basis points and 41.1 basis points, respectively. At both September 30, 2023 and December 31, 2022, we held total escrow balances (including unfunded collateralized loan obligation holdbacks) of approximately $1.7 billion, of which approximately $1.6 billion and $1.5 billion, respectively, are not included in our consolidated balance sheets. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.
The components of servicing revenue, net are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Servicing fees$32,191 $30,631 $92,479 $93,702 
Interest earned on escrows20,985 7,450 57,501 10,073 
Prepayment fees1,044 11,218 6,080 42,588 
Write-offs of MSRs(2,857)(11,773)(11,764)(37,318)
Amortization of MSRs(15,900)(14,782)(46,920)(44,532)
Servicing revenue, net$35,463 $22,744 $97,376 $64,513