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Loan Sales and Mortgage Servicing Rights
9 Months Ended
Sep. 30, 2018
Loan Sales And Mortgage Servicing Rights Disclosure [Abstract]  
Loan Sales and Mortgage Servicing Rights

NOTE 7: LOAN SALES AND MORTGAGE SERVICING RIGHTS

 

During the first nine months of 2018, FFB recognized $0.4 million of gains on the sale of $674 million of multifamily loans and recorded mortgage servicing rights of $2.6 million on the sale of those loans. In 2017, FFB sold $453 million of multifamily loans to financial institutions and recognized a gain of $7.0 million.

For the sales of multifamily loans, FFB retained servicing rights for the majority of these loans and recognized mortgage servicing rights as part of the transactions. As of September 30, 2018 and December 31, 2017, mortgage servicing rights were $6.8 million and $4.8 million, respectively and the amount of loans serviced for others totaled $1.4 billion and $0.7 billion at September 30, 2018 and December 31, 2017, respectively. Servicing fees collected for the nine months ended September 30, 2018, and in 2017 were $0.7 million for both periods.  

During the second quarter of 2018, we entered into swap agreements with notional amounts of $651 million which were closed out in the third quarter of 2018. As a result of the swap, our interest income on loans was reduced by $0.8 million for the period in which the swap was in place. The value of the swap at close out was $5.9 million, which offset decreases in the value of the loans sold during the period in which the swap was in place.