Commercial Mortgage Banking (Tables)

12 Months Ended

Dec. 31, 2013

The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows at December 31, 2013 and 2012:


(Expressed in thousands)
	2013		2012
Unpaid principal balance of loans	$	3,885,437	$	3,393,700

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following tables summarize the changes in carrying value of MSRs for the years ended December 31, 2013 and 2012:


(Expressed in thousands)
	Year Ended December 31,
	2013			2012
Balance at beginning of year	$	26,983		$	22,795
Originations ⁽¹⁾		7,351			5,562
Purchases		1,344			2,301
Disposals ⁽¹⁾		(4,918	)		(475	)
Amortization expense		(1,881	)		(3,200	)

Balance at end of year	$	28,879		$	26,983

(1)	Includes refinancings

Schedule of Amortization Expense

Servicing rights are amortized using the straight-line method over 10 years. Amortization expense for the next five years is as follows:


(Expressed in thousands)
	Originated MSRs		Purchased MSRs		Total MSRs
2014	$	2,299	$	1,266	$	3,565
2015		2,299		1,266		3,565
2016		2,299		1,266		3,565
2017		2,293		1,244		3,537
2018		2,273		1,212		3,485
Thereafter		7,670		3,492		11,162

	$	19,133	$	9,746	$	28,879

Components of Mortgage Servicing Rights Fees

The Company receives fees during the course of servicing the mortgage loans. The amount of these fees for the years ended December 31, 2013, 2012 and 2011 was as follows:


(Expressed in thousands)
	For the Year Ended December 31,
	2013		2012		2011
Servicing fees	$	5,049	$	4,177	$	2,872
Late fees		132		54		13
Ancillary fees		396		483		367

Total MSR fees	$	5,577	$	4,714	$	3,252