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MORTGAGE BANKING OPERATIONS (Tables)
 9 Months Ended
Sep. 30, 2023
Mortgage Banking [Abstract]  
Mortgage Loans on Real Estate, by Loan
LHFS consisted of the following:
 
(in thousands)At September 30, 2023At December 31, 2022
Single family$23,945 $14,075 
CRE, multifamily and SBA9,934 3,252 
Total$33,879 $17,327 

Loans sold consisted of the following for the periods indicated: 

 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Single family$101,575 $131,228 $257,835 $641,921 
CRE, multifamily and SBA2,821 29,965 16,220 129,394 
Total$104,396 $161,193 $274,055 $771,315 
Net Gain on Loan Origination and Sale Activity
Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: 
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Single family$2,267 $1,778 $6,656 $11,896 
CRE, multifamily and SBA105 869 582 4,317 
Total$2,372 $2,647 $7,238 $16,213 
Company's Portfolio of Loans Serviced for Others
The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows:

(in thousands)At September 30, 2023At December 31, 2022
Single family $5,349,832 $5,436,899 
CRE, multifamily and SBA 1,900,102 1,938,484 
Total$7,249,934 $7,375,383 
Mortgage Repurchase Losses
The following is a summary of changes in the Company's liability for estimated single-family mortgage repurchase losses:

 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Balance, beginning of period$1,728 $1,491 $2,232 $1,312 
Additions, net of adjustments (1)
(73)838 (184)1,329 
Realized (losses) recoveries, net (2)
(10)(370)(403)(682)
Balance, end of period$1,645 $1,959 $1,645 $1,959 
(1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans.
(2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses.
Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments
Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
 Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Servicing income, net:
Servicing fees and other$6,405 $7,673 $19,666 $25,501 
Amortization of single family MSRs (1)
(1,564)(2,112)(4,874)(8,052)
Amortization of multifamily and SBA MSRs(1,374)(1,828)(4,363)(5,877)
Total
3,467 3,733 10,429 11,572 
Risk management, single family MSRs:
Changes in fair value of MSRs due to assumptions (2)
785 1,989 1,794 16,615 
Net gain (loss) from economic hedging (1,160)(2,981)(2,833)(18,481)
Total
(375)(992)(1,039)(1,866)
               Loan servicing income $3,092 $2,741 $9,390 $9,706 
(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
Changes in Single Family MSRs Measured at Fair Value The changes in single family MSRs measured at fair value are as follows:
Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Beginning balance$76,314 $76,481 $76,617 $61,584 
Additions and amortization:
Originations
935 1,453 2,473 7,664 
Purchases
— â€” 460 â€” 
Amortization (1)
(1,564)(2,112)(4,874)(8,052)
Net additions and amortization
(629)(659)(1,941)(388)
Changes in fair value assumptions (2)
785 1,989 1,794 16,615 
Ending balance$76,470 $77,811 $76,470 $77,811 
(1) Represents changes due to collection/realization of expected cash flows and curtailments.
(2) Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates.
Key Economic Assumptions Used in Measuring Initial FV of Capitalized Single Family MSRs
Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows: 

Quarter Ended September 30,Nine Months Ended September 30,
(rates per annum) (1)
2023202220232022
Constant prepayment rate ("CPR") (2)
15.13 %13.06 %14.20 %10.72 %
Discount rate 11.70 %10.36 %10.83 %9.19 %
(1) Based on a weighted average.
(2) Represents an expected lifetime average CPR used in the model.
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets
For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
At September 30, 2023At December 31, 2022
Range of Inputs
Average (1)
Range of Inputs
Average (1)
CPRs
6.20% - 25.30%
6.50 %
6.01% - 11.10%
8.19 %
Discount Rates
10.00% - 17.00%
10.93 %
9.74% - 16.88%
10.66 %
(1) Weighted averages of all the inputs within the range.
To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:

(dollars in thousands)At September 30, 2023
Fair value of single family MSR$76,470 
Expected weighted-average life (in years)8.45
CPR
Impact on fair value of 25 basis points adverse change in interest rates$(316)
Impact on fair value of 50 basis points adverse change in interest rates$(706)
Discount rate
Impact on fair value of 100 basis points increase$(1,162)
Impact on fair value of 200 basis points increase$(2,894)
Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value
The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows: 

Quarter Ended September 30,Nine Months Ended September 30,
(in thousands)2023202220232022
Beginning balance$32,477 $38,130 $35,256 $39,415 
Originations38 517 248 3,281 
Amortization(1,374)(1,828)(4,363)(5,877)
Ending balance$31,141 $36,819 $31,141 $36,819