Mortgage banking activities

12 Months Ended

Dec. 31, 2016

Note 13 – Mortgage banking activities

Income from mortgage banking activities includes mortgage servicing fees earned in connection with administering residential mortgage loans and valuation adjustments on mortgage servicing rights. It also includes gain on sales and securitizations of residential mortgage loans and trading gains and losses on derivative contracts used to hedge the Corporation’s securitization activities. In addition, lower-of-cost-or-market valuation adjustments to residential mortgage loans held for sale, if any, are recorded as part of the mortgage banking activities.

The following table presents the components of mortgage banking activities:


		Years ended December 31,
(In thousands)			2016		2015		2014
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	58,208	$	59,461	$	41,761
	Mortgage servicing rights fair value adjustments		(25,336)		(7,904)		(24,683)
Total mortgage servicing fees, net of fair value adjustments			32,872		51,557		17,078
Net gain on sale of loans, including valuation on loans held for sale			26,976		35,336		31,213
Trading account (loss) profit:
	Unrealized (losses) gains on outstanding derivative positions		(1)		17		(726)
	Realized (losses) on closed derivative positions		(3,309)		(5,108)		(16,950)
Total trading account (loss) profit			(3,310)		(5,091)		(17,676)
Total mortgage banking activities		$	56,538	$	81,802	$	30,615