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SERVICING RIGHTS, AT FAIR VALUE
 12 Months Ended
Dec. 31, 2023
Transfers and Servicing [Abstract]  
SERVICING RIGHTS, AT FAIR VALUE SERVICING RIGHTS, AT FAIR VALUE
Our servicing rights portfolio consists of Agency MSRs associated with mortgage loans that conform to the guidelines set forth by GSEs, Government MSRs associated with mortgage loans that are insured or guaranteed by government agencies, primarily through Ginnie Mae mortgage-backed securities, and Other MSRs consisting primarily of other non-Agency loans. The outstanding principal balance of the servicing portfolio was comprised of the following:
December 31,
20232022
Agency$94,243,545 $93,971,606 
Government40,535,399 37,096,679 
Other10,311,255 10,102,646 
Total servicing portfolio$145,090,199 $141,170,931 

A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows:
Year Ended December 31,
202320222021
Balance at beginning of period$2,025,136 $1,999,402 $1,124,302 
Servicing rights additions277,387 647,716 1,610,596 
Sales proceeds, net(180,687)(765,151)(383,729)
Changes in fair value:
Due to changes in valuation inputs or assumptions2,227 363,064 68,399 
Due to collection/realization of cash flows(149,211)(230,449)(421,624)
Realized gains on sales of servicing rights
10,866 10,554 1,458 
Balance at end of period$1,985,718 $2,025,136 $1,999,402 

During the year ended December 31, 2023, the Company sold excess servicing cash flows on Agency loans for total proceeds of $132.0 million. There were no excess servicing sales during the year ended December 31, 2022. The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations:

Year Ended December 31,
202320222021
Contractual servicing fees$395,213 $423,528 $382,501 
Late, ancillary and other fees97,598 25,622 11,179 
Servicing fee income$492,811 $449,150 $393,680 

The following is a summary of the components of changes in fair value of servicing rights, net as reported in the Company’s consolidated statements of operations:
Year Ended December 31,
202320222021
Changes in fair value:
Due to changes in valuation inputs or assumptions$2,227 $363,064 $68,399 
Due to collection/realization of cash flows
(149,211)(230,449)(421,624)
Realized gains (losses) on sales of servicing rights, net(1)
10,486 (3,663)(9,759)
Net loss from derivatives hedging servicing rights
(47,919)(323,309)(82,878)
Changes in fair value of servicing rights, net$(184,417)$(194,357)$(445,862)
(1)Includes the provision for sold MSRs.

The table below illustrates hypothetical changes in fair values of servicing rights, caused by assumed immediate changes to key assumptions that are used to determine fair value.
December 31,
20232022
Fair value of servicing rights, net$1,985,718 $2,025,136 
Change in fair value from adverse changes:
Discount Rate:
Increase 1%(76,862)(81,431)
Increase 2%(148,438)(157,281)
Cost of Servicing:
Increase 10%(20,103)(19,017)
Increase 20%(40,319)(38,127)
Prepayment Speed:
Increase 10%(22,425)(18,863)
Increase 20%(44,128)(37,546)

Sensitivities are hypothetical changes in fair value and cannot be extrapolated because the relationship of changes in assumptions to changes in fair value may not be linear. Also, the effect of a variation in a particular assumption is calculated without changing any other assumption, whereas a change in one factor may result in changes to another. Accordingly, no assurance can be given that actual results would be consistent with the results of these estimates. As a result, actual future changes in servicing rights values may differ significantly from those displayed above.