Commercial Mortgage Banking (Tables)

9 Months Ended

Sep. 30, 2015

The total unpaid principal balance of loans the Company was servicing for various institutional investors as of September 30, 2015 and December 31, 2014 was as follows:



(Expressed in thousands)
	As of September 30, 2015		As of December 31, 2014
Unpaid principal balance of loans	$	4,090,937	$	4,134,894

Summary of Changes in Carrying Value of Mortgage Servicing Rights

The following table summarizes the changes in carrying value of MSRs for the nine months ended September 30, 2015 and 2014:



(Expressed in thousands)
	For the Nine Months Ended September 30,
	2015			2014
Balance at beginning of period	$	30,140		$	28,879
Originations ⁽¹⁾	5,726			4,252
Purchases	675			144
Disposals ⁽¹⁾	(6,118		)	(1,754		)
Amortization expense	(829		)	(2,025		)
Balance at end of period	$	29,594		$	29,496


(1)	Includes refinancings

Schedule of Amortization Expense

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



(Expressed in thousands)
	Originated MSRs		Purchased MSRs		Total MSRs
2015	$	773	$	295	$	1,068
2016	3,089		1,181		4,270
2017	3,083		1,179		4,262
2018	3,059		1,173		4,232
2019	2,963		1,112		4,075
Thereafter	9,488		2,199		11,687
	$	22,455	$	7,139	$	29,594

Components of Mortgage Servicing Rights Fees

The Company receives fees during the course of servicing the mortgage loans. The fees for the three and nine months ended September 30, 2015 and 2014 were as follows:



(Expressed in thousands)
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2015		2014		2015		2014
Servicing fees	$	1,463	$	1,402	$	4,384	$	4,121
Ancillary fees	47		86		241		259
Total MSR fees	$	1,510	$	1,488	$	4,625	$	4,380