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Other Investments (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, All Other Investments [Abstract]  
Summary of Other Investments
Other investments at December 31, 2018 and December 31, 2017 are summarized in the following table.
Table 10.1 – Components of Other Investments
(In Thousands)
 
December 31, 2018
 
December 31, 2017
Servicer advance investments
 
$
300,468

 
$
—

Mortgage servicing rights
 
60,281

 
63,598

Participation in loan warehouse facility
 
39,703

 
—

Excess MSRs
 
27,312

 
—

Investment in 5 Arches
 
10,754

 
—

Total Other Investments
 
$
438,518

 
$
63,598
Components of Servicer Advance Investments
The $287 million of servicer advance receivables were comprised of the following types of advances:
Table 10.2 – Components of Servicer Advance Receivables
(In Thousands)
 
December 31, 2018
 
December 31, 2017
Principal and interest advances
 
$
144,336

 
$
—

Escrow advances (taxes and insurance advances)
 
94,828

 
—

Corporate advances
 
47,614

 
—

Total Servicer Advance Receivables
 
$
286,778

 
$
—
Income from Mortgage Servicing Rights, Net
The following table presents activity for MSRs for the years ended December 31, 2018, 2017, and 2016.
Table 10.3 – Activity for MSRs
 
 
Years Ended December 31,
(In Thousands)
 
2018
 
2017
 
2016
Balance at beginning of period
 
$
63,598

 
$
118,526

 
$
191,976

Additions
 
328

 
8,026

 
25,362

Sales
 
(1,077
)
 
(52,788
)
 
(62,440
)
Changes in fair value due to:
 
 
 
 
 
 
Changes in assumptions (1)
 
4,434

 
(1,088
)
 
(14,512
)
Other changes (2)
 
(7,002
)
 
(9,078
)
 
(21,860
)
Balance at End of Period
 
$
60,281

 
$
63,598

 
$
118,526

(1)
Primarily reflects changes in prepayment assumptions due to changes in market interest rates.
(2)
Represents changes due to the realization of expected cash flows.
The following table presents the components of our MSR income for the years ended December 31, 2018, 2017, and 2016.
Table 10.4 – Components of MSR Income, net
 
 
Years Ended December 31,
(In Thousands)
 
2018
 
2017
 
2016
Servicing income
 
$
15,372

 
$
21,120

 
$
41,152

Cost of sub-servicer
 
(1,444
)
 
(2,828
)
 
(6,281
)
Net servicing fee income
 
13,928

 
18,292

 
34,871

Market valuation changes of MSRs
 
(2,508
)
 
(10,166
)
 
(36,372
)
Market valuation changes of associated derivatives (1)
 
(4,734
)
 
(568
)
 
15,584

MSR reversal of provision for repurchases
 
390

 
302

 
270

MSR Income, Net
 
$
7,076

 
$
7,860

 
$
14,353

(1)
MSR income, net is included in Other income, net on our consolidated statements of income.