Mortgage banking activities

9 Months Ended

Sep. 30, 2017

Note 11 – 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:



			Quarters ended September 30,			Nine months ended September 30,
(In thousands)			2017		2016		2017		2016
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	12,012	$	14,520	$	38,485	$	43,997
	Mortgage servicing rights fair value adjustments		(10,262)		(6,062)		(24,262)		(18,879)
Total mortgage servicing fees, net of fair value adjustments			1,750		8,458		14,223		25,118
Net gain on sale of loans, including valuation on loans held-for-sale			4,244		8,857		16,875		24,441
Trading account loss:
	Unrealized (losses) gains on outstanding derivative positions		(147)		95		(104)		(44)
	Realized losses on closed derivative positions		(608)		(2,138)		(3,645)		(7,465)
Total trading account loss			(755)		(2,043)		(3,749)		(7,509)
Total mortgage banking activities		$	5,239	$	15,272	$	27,349	$	42,050