Company: WAL-PA
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001212545-25-000141
Chunk: 75

Company: WESTERN ALLIANCE BANCORPORATION
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 75
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 $1,178 Unpaid principal balance of mortgage loans serviced for others$70,563 $65,620 Changes in the fair value of MSRs are recorded as Net loan servicing revenue in the Consolidated Income Statement. Due to the regulatory capital impact of MSRs on capital ratios, the Company sells certain MSRs and related servicing advances in the normal course of business. The Company may also sell excess servicing spread related to certain mortgage loans serviced by the Company. During the three months ended March 31, 2025, the Company sold MSRs related to a portfolio of loans with a total UPB of $8.7 billion and recognized a net loss of $0.3 million on these sales. During the three months ended March 31, 2024, the Company sold MSRs related to a portfolio of loans with a total UPB of $10.8 billion and recognized a net gain of $2.7 million on these sales. As of March 31, 2025 and December 31, 2024, the Company had a remaining receivable balance of $12 million and $37 million, respectively, related to holdbacks on MSR sales for servicing transfers, which are recorded in Other assets on the Consolidated Balance Sheet.The Company receives loan servicing fees, net of subservicing costs, based on the UPB of the underlying loans. Loan servicing fees are collected from payments made by borrowers. The Company may receive other remuneration from rights to various borrower contracted fees, such as late charges, collateral reconveyance charges, and non-sufficient funds fees. Contractually specified servicing fees, late fees, and ancillary income associated with the Company's MSR portfolio totaled $59.0 million for the three months ended March 31, 2025 and $67.0 million for the three months ended March 31, 2024. Early payoff fee income totaled $4.4 million and $4.8 million for the three months ended March 31, 2025 and 2024, respectively. These amounts are recorded as Net loan servicing revenue in the Consolidated Income Statement.In accordance with its contractual loan servicing obligations, the Company is required to advance funds to or on behalf of investors when borrowers do not make payments. The Company advances property taxes and insurance premiums for borrowers who have insufficient funds in escrow accounts, plus any other costs to preserve real estate properties. The Company may also advance funds to maintain, repair, and market foreclosed real estate