XML 22 R12.htm IDEA: XBRL DOCUMENT v3.24.3
Mortgage Servicing
 9 Months Ended
Sep. 30, 2024
Transfers and Servicing [Abstract]  
Mortgage Servicing Mortgage Servicing
Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):
September 30, 2024
Product ConcentrationsGeographic Concentrations
Product UPB (1)% of Total StateUPB % of Total
Fannie Mae$22,526,022 68 %New York11 %
Freddie Mac5,820,026 18 %Texas11 %
Private Label2,619,485 8 %North Carolina8 %
FHA1,390,766 4 %California7 %
Bridge (2)380,379 1 %Georgia6 %
SFR - Fixed Rate275,081 1 %Florida6 %
Total$33,011,759 100 %New Jersey5 %
Other (3)46 %
Total100 %
December 31, 2023
Fannie Mae$21,264,578 69 %Texas11 %
Freddie Mac5,181,933 17 %New York11 %
Private Label2,510,449 8 %California8 %
FHA1,359,624 4 %North Carolina8 %
Bridge (2)379,425 1 %Georgia6 %
SFR - Fixed Rate287,446 1 %Florida6 %
Total$30,983,455 100 %New Jersey5 %
Illinois4 %
Other (3)41 %
Total100 %
________________________
(1)Excludes loans which we are not collecting a servicing fee.
(2)Represents four bridge loans sold by our Structured Business that we are servicing, see Note 3 for details.
(3)No other individual state represented 4% or more of the total.
At September 30, 2024 and December 31, 2023, our weighted average servicing fee was 38.0 basis points and 39.1 basis points, respectively. At September 30, 2024 and December 31, 2023, we held total escrow balances (including unfunded collateralized loan obligation holdbacks) of approximately $1.52 billion and $1.60 billion, respectively, of which approximately $1.47 billion and $1.54 billion, respectively, is 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,
2024202320242023
Servicing fees$31,159 $32,191 $94,089 $92,479 
Interest earned on escrows18,362 20,985 54,011 57,501 
Prepayment fees413 1,044 1,205 6,080 
Write-downs and payoffs of MSRs(1,493)(2,857)(5,911)(11,764)
Amortization of MSRs(17,299)(15,900)(50,817)(46,920)
Servicing revenue, net$31,142 $35,463 $92,577 $97,376