NYCB 2017 Annual Report

131 Gains and Losses Included in Income for Assets Where the Fair Value Option Has Been Elected The assets accounted for under the fair value option are initially measured at fair value. Gains and losses from the initial measurement and subsequent changes in fair value are recognized in earnings. The following table presents the changes in fair value related to initial measurement, and the subsequent changes in fair value included in earnings, for loans held for sale and MSRs for the periods indicated: (Loss) Gain Included in Mortgage Banking Income from Changes in Fair Value (1) For the Twelve Months Ended December 31, (in thousands) 2017 2016 2015 Loans held for sale $ 899 $ (5,616) $ (472) Mortgage servicing rights (20,076) (27,453) (5,610) Total (loss) gain $(19,177) $ (33,069) $ (6,082) (1) Does not include the effect of hedging activities, which is included in “Other non - interest income.” The Company has determined that there is no instrument-specific credit risk related to its loans held for sale, due to the short duration of such assets.