Residential Mortgage Servicing Rights

The following table presents the changes in the Company's residential mortgage servicing rights ("MSR"), which are carried at fair value, for the three and six months ended June 30, 2016 and 2015:



(in thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2016			2015			2016			2015
Balance, beginning of period	$	117,172		$	116,365		$	131,817		$	117,259
Additions for new MSR capitalized	8,863			11,264			14,843			20,101
Changes in fair value:
Due to changes in model inputs or assumptions(1)	(6,836		)	5,077			(17,087		)	934
Other(2)	(7,104		)	(5,500		)	(17,478		)	(11,088		)
Balance, end of period	$	112,095		$	127,206		$	112,095		$	127,206


(1)	Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.


(2)	Represents changes due to collection/realization of expected cash flows over time.

Information related to our serviced loan portfolio as of June 30, 2016 and December 31, 2015 is as follows:



(dollars in thousands)	June 30, 2016			December 31, 2015
Balance of loans serviced for others	$	13,564,242		$	13,047,266
MSR as a percentage of serviced loans	0.83		%	1.01		%

The amount of contractually specified servicing fees, late fees and ancillary fees earned, recorded in residential mortgage banking revenue, was $8.6 million and $16.3 million for the three and six months ended June 30, 2016, respectively, as compared to $6.8 million and $13.2 million for the three and six months ended June 30, 2015, respectively.

Key assumptions used in measuring the fair value of the MSR as of June 30, 2016 and December 31, 2015 are as follows:



	June 30, 2016		December 31, 2015
Constant prepayment rate	14.95	%	11.70	%
Discount rate	9.70	%	9.68	%
Weighted average life (years)	5.3		6.5

A sensitivity analysis of the current fair value to changes in discount and prepayment speed assumptions as of June 30, 2016 and December 31, 2015 is as follows:



(in thousands)	June 30, 2016			December 31, 2015
Constant prepayment rate
Effect on fair value of a 10% adverse change	$	(5,494	)	$	(5,337	)
Effect on fair value of a 20% adverse change	$	(10,526	)	$	(10,283	)

Discount rate
Effect on fair value of a 100 basis point adverse change	$	(3,784	)	$	(4,936	)
Effect on fair value of a 200 basis point adverse change	$	(7,325	)	$	(9,494	)

The sensitivity analysis presents the hypothetical effect on fair value of the MSR. The effect of such hypothetical change in assumptions generally cannot be extrapolated because the relationship of the change in an assumption to the change in fair value is not linear. Additionally, in the analysis, the impact of an adverse change in one assumption is calculated independent of any impact on other assumptions. In reality, changes in one assumption may change another assumption.