Quarterly report pursuant to Section 13 or 15(d)

Mortgage Servicing Rights, at Fair Value

v3.21.2
Mortgage Servicing Rights, at Fair Value
 6 Months Ended
Jun. 30, 2021
Transfers and Servicing [Abstract]  
Mortgage Servicing Rights, at Fair Value
11.
Mortgage Servicing Rights, at Fair Value
The servicing portfolio associated with capitalized servicing rights consists of the following (in thousands):
 
    
June 30, 2021
          
December 31, 2020
  
    
Successor
          
Predecessor
  
Fannie Mae/Freddie Mac
   
$
29,705,985
    
 
    $ 20,501,504  
Ginnie Mae
   
 
553,800
    
 
      1,727,831  
Private investors
   
 
332,402
    
 
      40,027  
    
 
 
         
 
 
  
Total UPB
   
$
30,592,187
          $ 22,269,362  
    
 
 
         
 
 
  
       
Weighted average interest rate
   
 
3.0
% 
          3.1 % 
The activity in the loan servicing portfolio associated with capitalized servicing rights consisted of the following (in thousands):
 
    
April 1, 2021
to
June 30, 2021
          
January 1, 2021
to

March 31, 2021
     
For the three
months ended
June 30, 2020
     
For the six
months ended
June 30, 2020
  
    
Successor
          
Predecessor
  
Beginning UPB
   
$
26,675,358
    
 
    $ 22,269,362      $ 402,852      $ 288,057  
Originated MSR
   
 
5,139,859
    
 
      6,312,227        6,849,850        6,986,237  
Purchased MSR
   
 
5,537
    
 
      866,806        —          —    
Payoffs, sales and curtailments
   
 
(1,228,567
) 
  
 
      (2,773,037 )       (40,859 )       (62,451 ) 
    
 
 
         
 
 
     
 
 
     
 
 
  
Ending UPB
   
$
30,592,187
          $ 26,675,358      $ 7,211,843      $ 7,211,843  
    
 
 
         
 
 
     
 
 
     
 
 
  
 
The activity in the mortgage servicing rights asset consisted of the following (in thousands):
 
    
April 1, 2021
to
June 30, 2021
          
January 1, 2021
to

March 31, 2021
     
For the three
months ended
June 30, 2020
     
For the six
months ended
June 30, 2020
  
    
Successor
          
Predecessor
  
Beginning balance
   
$
267,364
    
 
    $ 180,684        3,119      $ 2,600  
Originations
   
 
50,049
    
 
      65,964        43,561        44,855  
Purchases
   
 
61
    
 
      9,014        —          —    
Sales
   
 
—  
 
  
 
      (8,647 )       —          —    
Changes in fair value due to:
           
 
                           
Changes in market inputs or assumptions used in valuation model
   
 
(16,051
) 
  
 
      35,109        (2,749 )       (3,424 ) 
Changes in fair value due to portfolio runoff and other
   
 
(10,485
) 
  
 
      (14,760 )       (1,247 )       (1,347 ) 
    
 
 
         
 
 
     
 
 
     
 
 
  
Ending balance
   
$
290,938
          $ 267,364      $ 42,684      $ 42,684  
    
 
 
         
 
 
     
 
 
     
 
 
  
The value of MSRs is driven by the net cash flows associated with servicing activities. The cash flows include contractually specified servicing fees, late fees, and other ancillary servicing revenue. The fees were $13.7 million for the Successor period from April 1, 2021 to June 30, 2021 and $13.0 million for the Predecessor period of January 1, 2021 to March 31, 2021. Fees for the Predecessor were $1.7 million and $1.8 million for the three months ended and six months ended June 30, 2020, respectively. These fees and changes in fair value of the MSRs are recorded within fee income on the Consolidated Statements of Operations.
The following table provides a summary of the loan servicing portfolio delinquencies as a percentage of the total number of loans and the total unpaid balance of the portfolio:
 
    
June 30, 2021
          
December 31, 2020
  
    
Successor
          
Predecessor
  
    
Number of
Loans
    
Unpaid
Balance
          
Number of
Loans
    
Unpaid
Balance
  
Portfolio delinquency
                   
 
                 
30 days
   
 
0.4
% 
  
 
0.4
% 
  
 
      0.5 %      0.5 % 
60 days
   
 
0.0
% 
  
 
0.0
% 
  
 
      0.1 %      0.1 % 
90 or more days
   
 
0.1
% 
  
 
0.1
% 
  
 
      0.2 %      0.1 % 
    
 
 
    
 
 
         
 
 
    
 
 
  
Total
   
 
0.5
% 
  
 
0.5
% 
          0.8 %      0.7 % 
    
 
 
    
 
 
         
 
 
    
 
 
  
           
Foreclosure/real estate owned
   
 
0.0
% 
  
 
0.0
% 
          0.0 %      0.0 %