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11) Mortgage Servicing Rights | 6 Months Ended
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Jun. 30, 2017
Notes |
11) Mortgage Servicing Rights | 11) Mortgage Servicing Rights The Company reports these MSRs pursuant to the accounting policy discussed in Note 7. The following is a summary of the MSR activity for the periods presented.
| As of June 30 2017 | As of December 31 2016
Amortized cost: |  |
Balance before valuation allowance at beginning of year | $ 18,872,362 | $ 12,679,755
MSRs proceeds from loan sales | 2,867,263 | 8,603,154
Amortization | (1,642,660) | (2,410,547)
Application of valuation allowance to write down MSRs with other than temporary impairment | - | -
Balance before valuation allowance at end of period | $ 20,096,965 | $ 18,872,362
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 end of period | $ - | $ -
Mortgage servicing rights, net | $ 20,096,965 | $ 18,872,362
Estimated fair value of MSRs at end of period | $ 26,448,288 | $ 25,496,832
The following table summarizes the Company’s estimate of future amortization of its existing MSRs carried at amortized cost.
|  | Estimated MSR Amortization
2017 |  | $ 1,053,392
2018 |  | 3,173,929
2019 |  | 3,173,929
2020 |  | 3,173,929
2021 |  | 3,173,929
Thereafter |  | 6,347,857
Total |  | $ 20,096,965
The Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the Condensed Consolidated Statement of Earnings:
| Three Months Ended June 30 |  | Six Months Ended June 30
| 2017 |  | 2016 |  | 2017 |  | 2016
Contractual servicing fees | $ 1,785,361 |  | $ 1,326,781 |  | $ 3,510,594 |  | $ 2,528,355
Late fees | 67,585 |  | 44,339 |  | 137,527 |  | 88,947
Total | $ 1,852,946 |  | $ 1,371,120 |  | $ 3,648,121 |  | $ 2,617,302
The following is a summary of the unpaid principal balances (UPB) of the servicing portfolio for the periods presented:
| As of June 30 2017 |  | As of December 31 2016
Servicing UPB | $ 2,744,354,316 |  | $ 2,720,441,340
The following key assumptions were used in determining MSR value:
| Prepayment Speeds | Average Life(Years) | Discount Rate
June 30, 2017 | 3.79% | 6.28 | 10.01
December 31, 2016 | 3.77% | 6.52 | 10.01

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