Mortgage banking activities

9 Months Ended

Sep. 30, 2021

Mortgage Banking [Abstract]

Mortgage Banking Activities

Note 9 – 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, losses on repurchased loans, including interest advances, 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)			2021		2020		2021		2020
Mortgage servicing fees, net of fair value adjustments:
	Mortgage servicing fees	$	9,376	$	12,966	$	28,613	$	32,992
	Mortgage servicing rights fair value adjustments		(5,979)		(20,491)		(11,706)		(33,360)
Total mortgage servicing fees, net of fair value adjustments			3,397		(7,525)		16,907		(368)
Net gain on sale of loans, including valuation on loans held-for-sale			6,084		10,916		16,256		20,389
Trading account (loss) profit:
	Unrealized losses on outstanding derivative positions		-		(4)		-		(4)
	Realized (losses) gains on closed derivative positions		(1,004)		(1,958)		632		(8,391)
Total trading account (loss) profit			(1,004)		(1,962)		632		(8,395)
Losses on repurchased loans, including interest advances			(170)		(10,955)		(697)		(10,955)
Total mortgage banking activities		$	8,307	$	(9,526)	$	33,098	$	671