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Note C - Mortgage Servicing Rights Entries to mortgage servicing rights for the years ended February 28 (29), 2001, 2000 and 1999 were as follows.
| |
February 28 (29), |  | |
|
(Dollar amounts in thousands) |
2001 |
2000 |
1999 | |
|
Mortgage Servicing Rights | | | | | | |
|
Balance at beginning of period |
$ |
5,420,239 |
$ |
4,591,191 |
$ |
3,653,318 |
|
Additions, net | |
1,785,659 | |
1,299,909 | |
1,898,007 |
|
Securitization of service fees | |
- | |
(218,770) | |
- |
|
Scheduled amortization | |
(518,199) | |
(459,308) | |
(556,373) |
|
Hedge losses (gams) applied | |
(811,578) | |
207,217 | |
(403,761) | | |
|
Balance before valuation reserve at end of period | |
5,876,121 | |
5,420,239 | |
4,591,191 | | | | | | | | | | |
|
Reserve for Impairment of Mortgage Servicing Rights | | | | | | |
|
Balance at beginning of period | |
(23,762) | |
(94,752) | |
(41,308) |
|
Reductions (additions) | |
(84,611) | |
70,990 | |
(53,444) | | |
|
Balance at end of period | |
(108,373) | |
(23,762) | |
(94,752) | | |
|
Mortgage Servicing Rights, net |
$ |
5,767,748 |
$ |
5,396,477 |
$ |
4,496,439 | | |
The estimated fair value of mortgage servicing rights was $5.8 billion and $5.7 billion as of February 28 (29), 2001 and 2000, respectively. The fair value was determined by discounting estimated net future cash flows from mortgage servicing activities using discount rates that approximate current market rates.
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