Company: ABR-PF
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021683
Chunk: 149

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 31, 2024, our weighted average servicing fee was 37.5 basis points and 37.8 basis points, respectively. At March 31, 2025 and December 31, 2024, we held total escrow balances (including unfunded collateralized loan obligation holdbacks) of approximately $1.30 billion and $1.45 billion, respectively, of which approximately $1.28 billion and $1.41 billion, respectively, is not included in our consolidated balance sheets. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of 

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Table of ContentsARBOR REALTY TRUST, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.The components of servicing revenue, net are as follows (in thousands):Three Months Ended March 31,20252024Servicing fees$32,543 $31,780 Interest earned on escrows12,890 17,754 Prepayment fees1,034 410 Write-offs and payoffs of MSRs(3,106)(1,787)Amortization of MSRs(17,758)(16,631)Servicing revenue, net$25,603 $31,526 

Note 7 — Securities Held-to-Maturity

Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At March 31, 2025, we held APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 6.1 years. The weighted average effective interest rate was 8.84% at both March 31, 2025 and December 31,