Mortgage Servicing

9 Months Ended

Sep. 30, 2021

Mortgage Servicing

Mortgage Servicing

Note 6 — Mortgage Servicing

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):

September 30, 2021
Product Concentrations					Geographic Concentrations
						UPB
			Percent of			Percentage
Product	UPB (1)		Total		State	of Total
Fannie Mae	$	19,271,527	74	%	Texas	14	%
Freddie Mac		4,726,587	18	%	New York	10	%
Private Label		1,176,391	4	%	North Carolina	9	%
FHA		933,519	4	%	California	9	%
SFR - Fixed Rate		104,094	<1	%	Georgia	6	%
Total	$	26,212,118	100	%	Florida	6	%
					New Jersey	5	%
					Other (2)	41	%
					Total	100	%

December 31, 2020
Fannie Mae	$	18,268,268	74	%	Texas	16	%
Freddie Mac		4,881,080	20	%	New York	9	%
FHA		752,116	3	%	North Carolina	9	%
Private Label		726,992	3	%	California	9	%
Total	$	24,628,456	100	%	Florida	7	%
					Georgia	6	%
					New Jersey	4	%
					Other (2)	40	%
					Total	100	%

(1) Excludes loans which we are not collecting a servicing fee.

(2) No other individual state represented 4% or more of the total.

At September 30, 2021 and December 31, 2020, our weighted average servicing fee was 45.7 basis points and 45.4 basis points, respectively. At September 30, 2021 and December 31, 2020, we held total escrow balances of $1.78 billion and $1.29 billion, respectively, which is not reflected in our consolidated balance sheets. Of the total escrow balances, we held $767.2 million and $867.6 million at September 30, 2021 and December 31, 2020, respectively, related to loans we are servicing within our Agency Business. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, was $1.0 million and $3.2 million during the three and nine months ended September 30, 2021, respectively, and $1.3 million and $5.8 million during the three and nine months ended September 30, 2020, respectively, and is a component of servicing revenue, net in the consolidated statements of income.