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Note 20: Mortgage Servicing Rights | 12 Months Ended
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Dec. 31, 2016
Notes |
Note 20: Mortgage Servicing Rights | 20) Mortgage Servicing Rights The following table presents the MSR activity for 2016 and 2015.
| December 31
| 2016 | 2015
Amortized cost: |  |
Balance before valuation allowance at beginning of year | $ 12,679,755 | $ 7,834,747
MSRs received as proceeds from loan sales | 8,603,154 | 6,217,551
Amortization | (2,410,547) | (1,372,543)
Application of valuation allowance to write down MSRs with other than temporary impairment | - | -
Balance before valuation allowance at year end | $ 18,872,362 | $ 12,679,755
Valuation allowance for impairment of MSRs: |  |
Balance at beginning of year | $ - | $ -
Additions | - | -
Application of valuation allowance to write down MSRs with other than temporary impairment | - | -
Balance at year end | $ - | $ -
Mortgage servicing rights, net | $ 18,872,362 | $ 12,679,755
Estimated fair value of MSRs at year end | $ 25,496,832 | $ 13,897,160
The Company reports these MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost. This projection was developed using the assumptions made by management in its December 31, 2016 valuation of MSRs. The assumptions underlying the following estimate will change as market conditions and portfolio composition and behavior change, causing both actual and projected amortization levels to change over time. Therefore, the following estimates will change in a manner and amount not presently determinable by management.
|  | Estimated MSR Amortization
2017 |  | $ 2,696,052
2018 |  | 2,696,052
2019 |  | 2,696,052
2020 |  | 2,696,052
2021 |  | 2,696,052
Thereafter | 5,392,104
Total |  | $ 18,872,364
During the years ended December 31, 2016, 2015 and 2014, the Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the Consolidated Statement of Earnings:
| 2016 |  | 2015 |  | 2014
Contractual servicing fees | $ 5,661,699 |  | $ 3,864,454 |  | $ 2,641,234
Late fees | 203,509 |  | 120,241 |  | 123,399
Total | $ 5,865,207 |  | $ 3,984,695 |  | $ 2,764,633
The following is a summary of the unpaid principal balances of the servicing portfolio for the periods presented:
| Years Ended December 31
| 2016 |  | 2015 |  | 2014
Servicing UPB | 2,720,441,340 |  | 1,861,835,430 |  | 1,227,249,143
The following key assumptions were used in determining MSR value:
| Prepayment Speeds | Average Life(Years) | Discount Rate
December 31, 2016 | 3.77% | 6.52 | 10.01
December 31, 2015 | 3.02% | 5.24 | 10.00
December 31, 2014 | 2.87% | 4.96 | 10.00

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