Loan Sales and Mortgage Servicing Rights |
12 Months Ended |
|---|---|
Dec. 31, 2017 | |
| Loan Sales And Mortgage Servicing Rights Disclosure [Abstract] | |
| Loan Sales and Mortgage Servicing Rights | NOTE 9: LOAN SALES AND MORTGAGE SERVICING RIGHTS
In 2017, FFB sold $453 million of multifamily loans to financial institutions and recognized a gain of $7.0 million. In 2016, FFB sold through a securitization sponsored by Freddie Mac $265 million of multifamily loans and recognized a gain of $7.2 million. The agreement with Freddie Mac to sell these loans provided for changes in pricing based upon changes in rates on certain treasury swap indices. In an effort to reduce the interest rate risk associated with this agreement, in 2016 we entered into a swap agreement. In conjunction with the finalization of pricing under the agreement, we closed out our swap position and paid $2.4 million, including fees, to counterparties under the swap agreement, and the pricing on the loan sale increased by $2.2 million. In 2016, FFB sold $41 million of multifamily loans to another financial institution and recognized a gain of $0.6 million. In 2015, FFB sold through a securitization sponsored by Freddie Mac $102 million of multifamily loans and recognized a gain of $2.7 million. In the 2015 securitization, the Company obtained a beneficial interest in an interest-only strip. The $0.9 million fair value of this beneficial interest, which was determined based on variety of factors including market prepayment speeds, discount rates and yield curve assumptions, was included in the determination of the gain on sale of loans. In addition the Company purchased the “B” pieces of these securitizations, which are structured to absorb any losses incurred on the loans in the securitization, and interest only strips.
For the sales of multifamily loans in 2017, 2016, and 2015, FFB retained servicing rights for the majority of these loans and recognized mortgage servicing rights as part of the transactions. As of December 31, 2017, and 2016, mortgage servicing rights were $4.8 million and $2.2 million, respectively and the amount of loans serviced for others totaled $745 million and $412 million at December 31, 2017 and 2016, respectively. Servicing fees collected in 2017, 2016, and 2015 were $0.7 million, $0.3 million, and $0, respectively. |