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Mortgage Servicing
 12 Months Ended
Dec. 31, 2024
Transfers and Servicing [Abstract]  
Mortgage Servicing Mortgage Servicing
Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):
December 31, 2024
Product ConcentrationsGeographic Concentrations
Product UPB (1)% of Total StateUPB % of Total
Fannie Mae$22,730,056 67 %Texas11 %
Freddie Mac6,077,020 18 %New York11 %
Private Label2,605,980 8 %California8 %
FHA1,506,948 5 %North Carolina7 %
Bridge (2)278,494 1 %Georgia6 %
SFR - Fixed Rate271,859 1 %Florida6 %
Total$33,470,357 100 %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 %
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(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 December 31, 2024 and 2023, our weighted average servicing fee was 37.8 basis points and 39.1 basis points, respectively. At December 31, 2024 and 2023, we held total escrow balances (including unfunded CLO hold backs) of approximately $1.45 billion and $1.60 billion, respectively, of which approximately $1.41 billion and $1.54 billion is not included in our consolidated balance sheets at December 31, 2024 and 2023, respectively. 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):
Year Ended December 31,
202420232022
Servicing fees$129,092 $123,975 $123,937 
Interest earned on escrows70,742 77,916 24,436 
Prepayment fees2,984 6,387 48,197 
Write-offs and payoffs of MSRs(8,500)(14,736)(44,502)
Amortization of MSRs(68,422)(63,093)(59,876)
Servicing revenue, net$125,896 $130,449 $92,192