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Mortgage Servicing Rights (Tables)
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Mortgage Servicing Rights

The following table presents the MSR activity.

 

   As of
September 30
2022		   As of
December 31
2021		 
Amortized cost:          
Balance before valuation allowance at beginning of year  $53,060,455   $35,210,516 
MSR additions resulting from loan sales (1)    9,608,442    32,701,819 
Amortization (2)   (8,289,652)   (14,851,880)
Application of valuation allowance to write down MSRs with other than temporary impairment   -    - 
Balance before valuation allowance at end of period  $54,379,245   $53,060,455 
           
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  $54,379,245   $53,060,455 
           
Estimated fair value of MSRs at end of period  $93,863,177   $68,811,809 

 

 

(1)Included in mortgage fee income on the condensed consolidated statements of earnings
(2)Included in other expenses on the condensed consolidated statements of earnings

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense, Mortgage Servicing Rights

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 September 30, 2022 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		 
2022   5,739,067 
2023   5,098,468 
2024   4,677,509 
2025   4,238,273 
2026   3,843,026 
Thereafter   30,782,902 
Total  $54,379,245 
Schedule of Other Revenues

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.

 

   2022   2021   2022   2021 
   Three Months Ended
September 30		   Nine Months Ended
September 30		 
   2022   2021   2022   2021 
Contractual servicing fees  $4,644,397   $4,037,142   $13,845,626   $11,179,908 
Late fees   107,219    71,724    288,854    227,211 
Total  $4,751,616   $4,108,866   $14,134,480   $11,407,119 
Summary of Unpaid Principal Balances of the Servicing Portfolio

The following is a summary of the unpaid principal balances (“UPB”) of the servicing portfolio.

 

   As of
September 30 2022		   As of
December 31 2021		 
Servicing UPB  $7,381,027,999   $7,060,536,350 
Schedule of Assumptions Used in Determining MSR Value

The following key assumptions were used in determining MSR value:

 

   Prepayment
Speeds		   Average
Life (Years)		   Discount
Rate		 
September 30, 2022   7.13    8.44    9.50 
December 31, 2021   11.60    6.64    9.50