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Mortgage Loan Servicing and Loans Originated for Sale (Tables)
 12 Months Ended
Jun. 30, 2020
Mortgage Loan Servicing and Loans Originated for Sale  
Schedule of Mortgage Loans Serviced for Others

The following summarizes the unpaid principal balance of loans serviced for others by the Corporation at the dates indicated:

 

 

 

 

 

 

 

 

 

At June 30, 

(In Thousands)

    

2020

    

2019

Loans serviced for Freddie Mac

 

$

14,210

 

$

18,613

Loans serviced for Fannie Mae

 

 

64,910

 

 

89,910

Loans serviced for FHLB – San Francisco

 

 

7,385

 

 

9,724

Loans serviced for other investors

 

 

 —

 

 

1,989

Total loans serviced for others

 

$

86,505

 

$

120,236

 

Schedule of Mortgage Servicing Assets

The following table summarizes the Corporation’s MSA for years ended June 30, 2020 and 2019:

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 

 

(Dollars In Thousands)

    

2020

    

2019

 

 

 

 

 

 

 

 

 

MSA balance, beginning of fiscal year

 

$

925

 

$

998

 

Additions

 

 

 —

 

 

52

 

Amortization

 

 

(252)

 

 

(125)

 

MSA balance, end of fiscal year, before allowance

 

 

673

 

 

925

 

Allowance

 

 

(291)

 

 

(298)

 

MSA balance, end of fiscal year

 

$

382

 

$

627

 

 

 

 

 

 

 

 

 

Fair value, beginning of fiscal year

 

$

627

 

$

1,015

 

Fair value, end of fiscal year

 

$

382

 

$

627

 

 

 

 

 

 

 

 

 

Allowance, beginning of fiscal year

 

$

298

 

$

82

 

Impairment (recovery) provision

 

 

(7)

 

 

216

 

Allowance, end of fiscal year

 

$

291

 

$

298

 

 

 

 

 

 

 

 

 

Key Assumptions:

 

 

  

 

 

  

 

Weighted-average discount rate

 

 

9.11

%  

 

9.11

%

Weighted-average prepayment speed

 

 

26.07

%  

 

23.86

%

 

Schedule of Estimated Future Amortization of Mortgage Servicing Assets

The following table summarizes the estimated future amortization of MSA for the next five years and thereafter:

 

 

 

 

 

    

Amount

Year Ending June 30, 

 

(In Thousands)

 

 

 

 

2021

 

$

129

2022

 

 

103

2023

 

 

74

2024

 

 

51

2025

 

 

35

Thereafter

 

 

281

Total estimated amortization expense

 

$

673

 

Schedule of Mortgage Servicing Assets, Hypothetical Effect on Fair Value

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 

 

(Dollars In Thousands)

    

2020

    

2019

 

MSA net carrying value

 

$

382

 

$

627

 

 

 

 

 

 

 

 

 

CPR assumption (weighted-average)

 

 

26.07

%  

 

23.86

%

Impact on fair value with 10% adverse change in prepayment speed

 

$

(19)

 

$

(30)

 

Impact on fair value with 20% adverse change in prepayment speed

 

$

(35)

 

$

(58)

 

 

 

 

 

 

 

 

 

Discount rate assumption (weighted-average)

 

 

9.11

%  

 

9.11

%

Impact on fair value with 10% adverse change in discount rate

 

$

(12)

 

$

(20)

 

Impact on fair value with 20% adverse change in discount rate

 

$

(23)

 

$

(40)

 

 

Schedule of servicing assets sold

 

 

 

 

 

 

 

 

 

Year Ended June 30, 

(In Thousands)

    

2020

    

2019

Loans sold:

 

 

  

 

 

  

Servicing – released

 

$

 —

 

$

551,754

Servicing – retained

 

 

 —

 

 

7,196

Total loans sold

 

$

 —

 

$

558,950