Commercial Mortgage Banking (Tables)

3 Months Ended

Mar. 31, 2014

The total unpaid principal balance of loans the Company was servicing for various institutional investors was as follows:


(Expressed in thousands)
	As of March 31, 2014		As of December 31, 2013
Unpaid principal balance of loans		3,941,492	$	3,885,437

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following table summarizes the changes in carrying value of MSRs for the three months ended March 31, 2014 and 2013:


(Expressed in thousands)
	For the Three Months Ended
	March 31,
	2014			2013
Balance at beginning of period	$	28,879		$	26,983
Originations ⁽¹⁾		1,544			1,540
Purchases		21			186
Disposals ⁽¹⁾		(562	)		(882	)
Amortization expense		(656	)		(640	)

Balance at end of period	$	29,226		$	27,187

(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	$	2,702	$	1,354	$	4,056
2015		2,702		1,354		4,056
2016		2,693		1,342		4,035
2017		2,669		1,316		3,985
2018		2,577		1,292		3,869
Thereafter		6,687		2,538		9,225

	$	20,030	$	9,196	$	29,226

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 three months ended March 31, 2014 and 2013 were as follows:


(Expressed in thousands)
	For the Three Months Ended March 31,
	2014		2013
Servicing fees	$	1,344	$	1,208
Late fees		—		62
Ancillary fees		93		57

Total MSR fees	$	1,437	$	1,327