| Summary of Mortgage Servicing Rights |
The following table summarizes changes in the MSR assets for the year ended December 31, 2025, 2024, and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | For the year ended December 31, | | | | | | 2025 | | 2024 | | 2023 | | Fair value, beginning of period | | | | | $ | 3,969,881 | | | $ | 4,026,136 | | | $ | 4,453,261 | | | Capitalization of MSRs | | | | | 3,647,451 | | | 2,931,543 | | | 2,269,378 | | MSR and excess servicing sales | | | | | (2,576,606) | | | (2,761,564) | | | (1,881,683) | | | Changes in fair value: | | | | | | | | | | Due to changes in valuation inputs and assumptions | | | | | (436,089) | | | 295,197 | | | (330,031) | | Due to collection/realization of cash flows and other | | | | | (530,856) | | | (521,431) | | | (484,789) | | | | | | | | | | | | | Fair value, end of period | | | | | $ | 4,073,781 | | | $ | 3,969,881 | | | $ | 4,026,136 | |
The following is a summary of the components of the total change in fair value of MSRs as reported in the consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | For the year ended December 31, | | | | | | 2025 | | 2024 | | 2023 | | Changes in fair value: | | | | | | | | | | Due to changes in valuation inputs and assumptions, net | | | | | $ | (435,267) | | | $ | 295,197 | | | $ | (330,031) | | | Due to collection/realization of cash flows and other | | | | | (530,856) | | | (521,431) | | | (484,789) | | | Net reserves and transaction costs on sales of servicing rights | | | | | (89,325) | | | (68,765) | | | (39,328) | | | Changes in fair value of mortgage servicing rights | | | | | $ | (1,055,448) | | | $ | (294,999) | | | $ | (854,148) | |
|
| Summary of Loan Servicing Income |
The following table summarizes the loan servicing income recognized during the years ended December 31, 2025, 2024, and 2023 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | For the year ended December 31, | | | | | | 2025 | | 2024 | | 2023 | | Contractual servicing fees | | | | | $ | 708,518 | | | $ | 621,325 | | | $ | 803,750 | | | Late, ancillary and other fees | | | | | 16,223 | | | 15,340 | | | 14,953 | | | Loan servicing income | | | | | $ | 724,741 | | | $ | 636,665 | | | $ | 818,703 | |
|
| Schedule of Analysis of Change in Fair Value |
The hypothetical effect of adverse changes in these key assumptions would result in a decrease in fair values as follows at December 31, 2025 and December 31, 2024 (in thousands): | | | | | | | | | | | | | | December 31,
2025 | | December 31,
2024 | | Discount rate: | | | | | + 10% adverse change – effect on value | $ | (149,409) | | | $ | (157,809) | | | + 20% adverse change – effect on value | (286,410) | | | (302,071) | | | Prepayment speeds: | | | | | + 10% adverse change – effect on value | $ | (168,559) | | | $ | (116,920) | | | + 20% adverse change – effect on value | (323,246) | | | (226,205) | | | Cost of servicing: | | | | | + 10% adverse change – effect on value | $ | (25,173) | | | $ | (28,352) | | | + 20% adverse change – effect on value | (49,316) | | | (56,703) | |
|