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21) Mortgage Servicing Rights | 12 Months Ended
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Dec. 31, 2019
Notes |
21) Mortgage Servicing Rights | `21)```Mortgage Servicing Rights The Company reports MSRs pursuant to the accounting policy discussed in Note 1 of the Notes to Consolidated Financial Statements. The following table presents the MSR activity for the periods presented.
| December 31
| 2019 | 2018
Amortized cost: |  |
Balance before valuation allowance at beginning of year | $ 20,016,822 | $ 21,376,937
MSR additions resulting from loan sales | 4,194,502 | 3,922,816
Amortization (1) | (7,055,795) | (5,282,931)
Application of valuation allowance to write down MSRs with other than temporary impairment | - | -
Balance before valuation allowance at year end | $ 17,155,529 | $ 20,016,822
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 | $ 17,155,529 | $ 20,016,822
Estimated fair value of MSRs at year end | $ 22,784,571 | $ 28,885,316
(1) Included in other expenses on the consolidated statements of earnings
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, 2019 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
2020 |  | $ 2,999,452
2021 |  | 2,376,277
2022 |  | 1,971,249
2023 |  | 1,631,010
2024 |  | 1,359,492
Thereafter |  | 6,818,049
Total |  | $ 17,155,529
During the years ended December 31, 2019 and 2018, the Company collected the following contractual servicing fee income and late fee income as reported in other revenues on the consolidated statements of earnings:
| 2019 |  | 2018
Contractual servicing fees | $ 7,212,164 |  | $ 7,561,226
Late fees | 365,477 |  | 319,244
Total | $ 7,577,641 |  | $ 7,880,470
The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio for the periods presented:
| Years Ended December 31
| 2019 |  | 2018 |
Servicing UPB | $ 2,804,139,415 |  | $ 2,941,231,563 |
The following key assumptions were used in determining MSR value:
| PrepaymentSpeeds | AverageLife(Years) | DiscountRate
December 31, 2019 | 15.30 | 5.27 | 9.51
December 31, 2018 | 11.70 | 6.33 | 9.51

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