XML 41 R30.htm IDEA: XBRL DOCUMENT v3.25.1
SERVICING RIGHTS, AT FAIR VALUE (Tables)
 3 Months Ended
Mar. 31, 2025
Transfers and Servicing [Abstract]  
Summary of Outstanding Principal Balance of Servicing Rights
The outstanding principal balance of the servicing portfolio was comprised of the following:
March 31,
2025		December 31,
2024
Agency
$64,795,351 $65,092,009 
Government40,523,662 39,909,978 
Other
11,285,140 10,969,997 
Total servicing portfolio$116,604,153 $115,971,984 
Summary of Changes in Servicing Rights
A summary of the changes in the balance of servicing rights, net of servicing rights liability is as follows:
Three Months Ended
March 31,
20252024
Balance at beginning of period$1,615,510 $1,985,718 
Servicing rights additions
52,686 48,375 
Sales proceeds, net
(5,362)(56,113)
Changes in fair value:
Due to changes in valuation inputs or assumptions(23,689)28,244 
Due to collection/realization of cash flows(36,176)(35,999)
Realized gains (losses) on sales of servicing rights(1)
62 (61)
Total changes in fair value
(59,803)(7,816)
Balance at end of period(2)
$1,603,031 $1,970,164 
(1)    Includes realized MSR sale gain and broker fees.
(2)    Servicing assets of $1.6 billion and $2.0 billion, respectively, for the three months ended March 31, 2025 and 2024, are presented net of servicing liabilities of $18.5 million and $15.8 million, respectively.
Summary of Components of Loan Servicing Fee Income
The following is a summary of the components of loan servicing fee income as reported in the Company’s consolidated statements of operations:
Three Months Ended
March 31,
20252024
Contractual servicing fees$81,969 $95,735 
Late, ancillary and other fees22,309 28,324 
Servicing fee income$104,278 $124,059 
Summary of Components of Changes in Fair Value of Servicing Rights
The following is a summary of the components of change in fair value of servicing rights, net of hedge as reported in the Company’s consolidated statements of operations:
Three Months Ended
March 31,
20252024
Changes in fair value:
Due to collection/realization of cash flows$(36,176)$(35,999)
Due to changes in valuation inputs or assumptions(23,689)28,244 
Realized gain on sale of servicing rights62 44 
Net gain (loss) from derivatives hedging servicing rights18,804 (36,319)
Valuation changes in servicing rights, net of hedging gains and losses
(4,823)(8,031)
Other realized losses on sales of servicing rights (1)
(104)(1,240)
Changes in fair value of servicing rights, net$(41,103)$(45,270)
(1)Includes the (provision) recovery for estimated losses and broker fees on MSR sales.
Servicing Rights Sensitivity Analysis
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.


March 31,
2025		December 31,
2024
Fair Value of Servicing Rights, net$1,603,031 $1,615,510 
Change in Fair Value from adverse changes:
Discount Rate:
Increase 1%(61,978)(62,832)
Increase 2%(120,196)(122,064)
Cost of Servicing:
Increase 10%(17,685)(17,403)
Increase 20%(35,430)(34,857)
Prepayment Speed:
Increase 10%(19,417)(16,609)
Increase 20%(37,931)(32,518)