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Mortgage Servicing
 3 Months Ended
Mar. 31, 2022
Transfers and Servicing [Abstract]  
Mortgage Servicing
Note 7 – Mortgage Servicing
MSRs – At Fair Value
Three Months Ended March 31,
20222021
AgencyNon-AgencyTotalAgencyNon-AgencyTotal
Beginning balance$1,571,837 $678,310 $2,250,147 $578,957 $715,860 $1,294,817 
Sales and other transfers(149,311)(24)(149,335)— — — 
Additions:
Recognized on the sale of residential mortgage loans
45,803 — 45,803 34,260 — 34,260 
Purchase of MSRs
46,799 — 46,799 36,778 — 36,778 
Servicing transfers and adjustments— (823)(823)29 (557)(528)
Changes in fair value:
Changes in valuation inputs or assumptions 194,476 9,044 203,520 82,486 1,529 84,015 
Realization of expected cash flows (47,674)(25,156)(72,830)(23,847)(25,278)(49,125)
Ending balance$1,661,930 $661,351 $2,323,281 $708,663 $691,554 $1,400,217 

MSR UPB and Fair Value
March 31, 2022December 31, 2021March 31, 2021
Fair ValueUPBFair ValueUPBFair ValueUPB
Owned MSRs$1,435,180 $115,724,529 $1,422,546 $127,919,800 $849,853 $91,284,985 
NRZ transferred MSRs (1) (2)545,316 51,533,000 558,940 53,652,843 550,364 61,841,181 
MAV transferred MSRs (1)342,785 26,759,000 268,661 24,018,904 — — 
Total $2,323,281 $194,016,529 $2,250,147 $205,591,547 $1,400,217 $153,126,166 
(1)MSRs subject to sale agreements with NRZ and MAV that do not meet sale accounting criteria. During the three months ended March 31, 2022 , we transferred MSRs with a UPB of $3.5 billion to MAV. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting.
(2)At March 31, 2022, the UPB of MSRs transferred to NRZ for which title is retained by Ocwen was $11.7 billion and the UPB of MSRs transferred to NRZ for which title has passed was $39.8 billion.
We purchased MSRs with a UPB of $4.1 billion and $6.0 billion from unrelated third-parties during the three months ended March 31, 2022 and 2021, respectively. We sold MSRs with a UPB of $11.1 billion and $7.2 million during the three months ended March 31, 2022 and 2021, respectively, to unrelated third parties. Sales of MSRs during the three months ended March 31, 2022 includes an $11.1 billion bulk sale of GSE MSRs which had not yet transferred from our servicing system as of March 31, 2022, and for which PMC is performing interim subservicing.
At March 31, 2022, the S&P Global Ratings, Inc.’s (S&P) servicer ratings outlook for PMC is stable. On June 29, 2021, S&P affirmed PMC’s servicer rating as Average, raising management and organization ranking to Above Average. In addition, S&P raised PMC’s master servicer rating from Average to Above Average reflecting the industry experience of PMC’s management, multiple levels of internal controls to monitor operations, and resolution of regulatory actions, amongst other factors mentioned by S&P. On September 28, 2021, Moody’s upgraded the servicer quality (SQ) assessment for PMC as a master servicer of residential mortgage loans from SQ3 to SQ3+, reflecting solid reporting and remitting processes and proactive servicer oversight. On March 24, 2020, Fitch Ratings, Inc. (Fitch) placed all U.S Residential Mortgage Backed Securities (RMBS) servicer ratings on Outlook Negative, resulting from a rapidly evolving economic and operating environment due to the sudden impact of the COVID-19 virus. On April 28, 2021, Fitch affirmed PMC’s servicer ratings and revised its outlook from Negative to Stable as PMC’s performance in this evolving environment has not raised any elevated concerns. According to Fitch, the affirmation and stable outlook reflected PMC’s diligent response to the coronavirus pandemic and its impact on servicing operations, effective enterprise-wide risk environment and compliance management framework, satisfactory loan servicing performance metrics, special servicing expertise, and efficient servicing technology. The ratings also consider the financial condition of PMC’s parent, OFC.
Servicing Revenue
Three Months Ended March 31,
20222021
Loan servicing and subservicing fees
Servicing$88,535 $63,892 
Subservicing14,678 3,487 
MAV (1)16,623 — 
NRZ (1)67,146 80,385 
186,983 147,764 
Ancillary income
Late charges10,020 9,231 
Reverse subservicing ancillary fees3,086 — 
Recording fees3,250 3,945 
Loan collection fees2,949 2,949 
Boarding and deboarding fees1,761 3,019 
Custodial accounts (float earnings)983 1,008 
GSE forbearance fees184 566 
Other, net3,408 3,256 
25,640 23,974 
 $212,623 $171,738 
(1)Includes servicing and subservicing fees related to transferred MSRs. See Note 8 — MSR Transfers Not Qualifying for Sale Accounting.
Float balances (balances in custodial accounts, which represent collections of principal and interest that we receive from borrowers) are held in escrow by unaffiliated banks and are excluded from our unaudited consolidated balance sheets. Float balances amounted to $2.1 billion, $2.1 billion and $2.4 billion at March 31, 2022, December 31, 2021 and March 31, 2021, respectively.