The following table sets forth information about mortgage banking revenues:  Mortgage banking revenues decreased $5.1 million, or 42%, and totaled $7 million in 2002, following an increase of $1.5 million, or 14.5%, to $12 million in 2001. The decrease in mortgage bank- ing revenues during 2002 was primarily due to increased impair- ment and amortization expense on mortgage servicing rights resulting from increased refinance activity and sharply higher actual and assumed prepayments in TCF’s servicing portfolio. The increase in mortgage banking revenues during 2001 was attributable to increased loan origination and sale activity, partially offset by increased amor- tization and impairment of mortgage servicing rights due to high levels of actual and assumed prepayments and increased volumes. At December 31, 2002, 2001 and 2000, TCF was servicing mort- gage loans for others with aggregate unpaid principal balances of $5.6 billion, $4.7 billion and $4 billion, respectively. N.A. Not applicable. As noted above, mortgage banking revenues are impacted by the amount of amortization and impairment of mortgage servicing rights. The capitalization, amortization and impairment of mortgage servic- ing rights are critical accounting policies for TCF and are subject to significant estimates. These estimates are based upon loan types, note rates and prepayment assumptions for the overall portfolio. Changes in the mix of loans, interest rates, defaults or prepayment speeds may have a material effect on the amortization amount and possible impair- ment in valuation. In a declining interest rate environment, prepay- ment speed assumptions will increase and result in an acceleration in the amortization of the mortgage servicing rights as the assumed underlying portfolio declines and also may result in impairment as the value of the mortgage servicing rights decline. TCF periodically evaluates its capitalized mortgage servicing rights for impairment. TCF experienced a resurgence in refinance activity during 2002 driven by lower mortgage interest rates, which led to sharply higher prepayments in TCF’s servicing portfolio and increased amortiza- tion and impairment of mortgage servicing rights. The increased amortization and impairment were partially offset by the increased mortgage loan production activity and the related increase in gains on sales of loans. See Notes 1 and 10 of Notes to Consolidated Financial Statements for additional information concerning TCF’s mortgage servicing rights. At December 31, Change (Dollars in thousands) 2002 2001 $ % Third party servicing portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,576,066 $4,679,355 $ 896,711 19.2% Weighted average note rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.64% 7.13% (49) bps N.A. Mortgage applications in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 532,012 $ 606,676 $ (74,664) (12.3) Capitalized mortgage servicing rights, net . . . . . . . . . . . . . . . . . . . . . $ 62,644 $ 58,261 $ 4,383 7.5 Mortgage servicing rights as a percentage of servicing portfolio . . . . . . 1.12% 1.25% (13) bps N.A. Average servicing fee (basis points) . . . . . . . . . . . . . . . . . . . . . . . . . . 32.9 bps 32.6 bps .3 bps N.A. Mortgage servicing rights as a multiple of average servicing fee . . . . . . 3.4 X 3.8 X (.4) X N.A. Year Ended December 31, (Dollars in thousands) 2002 2001 2000 1999 1998 Servicing income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,443 $ 16,932  $ 12,642  $ 12,981  $ 17,146 Less mortgage servicing:  Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,874 16,564 5,326 4,737 5,267 Impairment . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500 4,400 – 169 1,547 Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,374 20,964 5,326 4,906 6,814 Net servicing income (loss) . . . . . . . . . . . . (14,931) (4,032) 7,316 8,075 10,332 Gains on sales of loans . . . . . . . . . . . . . . . . . . . . . . 18,110 11,795 1,347 3,194 4,536 Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,800 4,279 1,856 1,501 2,009 Total mortgage banking revenue . . . . . . . . . . . . . $ 6,979 $ 12,042 $ 10,519 $ 12,770 $ 16,877 page 28