Mortgage banking activities

12 Months Ended

Dec. 31, 2022

Mortgage Banking [Abstract]

Mortgage Banking Activities

Note 10 – 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:

Years ended December 31,

(In thousands)

2022

2021

2020

Mortgage servicing fees, net of fair value adjustments:

Mortgage servicing fees

$

36,487

$

38,105

$

43,234

Mortgage servicing rights fair value adjustments

236

(10,206)

(42,055)

Total mortgage servicing fees, net of fair value adjustments

36,723

27,899

1,179

Net (loss) gain on sale of loans, including valuation on loans held for sale

(251)

21,684

31,215

Trading account profit (loss):

Realized gains (losses) on closed derivative positions

6,635

1,323

(10,586)

Total trading account profit (loss)

6,635

1,323

(10,586)

Losses on repurchased loans, including interest advances [1]

(657)

(773)

(11,407)

Total mortgage banking activities

$

42,450

$

50,133

$

10,401

[1]

The Corporation, from time to time, repurchases delinquent loans from its GNMA servicing portfolio, in compliance with Guarantor guidelines, and

may incur in losses related to previously advanced interest on delinquent loans. During the quarter ended September 30, 2020 the Corporation

repurchased $

687.9

 million of GNMA loans and recorded a loss of $

10.5

 million for previously advanced interest on delinquent loans. Effective for

the quarter ended September 30, 2020, the Corporation has determined to present these losses as part of its Mortgage Banking Activities, which

were previously presented within the indemnity reserves on loans sold component of non-interest income.