Mortgage Loans Held for Sale

3 Months Ended

Mar. 31, 2022

The Company sells substantially all of its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. A reconciliation of the changes in mortgage loans held for sale to the amounts presented on the Condensed Consolidated Statements of Cash Flows is below:


	Three Months Ended March 31,
	2022		2021
Balance at the beginning of period	$	19,323,568	$	22,865,106
Disbursements of mortgage loans held for sale	54,173,353		104,103,499
Proceeds from sales of mortgage loans held for sale (1)	(63,180,565)		(110,276,266)
Gain on sale of mortgage loans excluding fair value of other financial instruments, net (2)	368,788		2,133,105

Balance at the end of period	$	10,685,144	$	18,825,444

(1) The proceeds from sales of loans held for sale on the Condensed Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans.

(2) The Gain on sale of loans excluding fair value of MSRs, net on the Condensed Consolidated Statements of Cash Flows includes amounts related to the sale of consumer loans, interest rate lock commitments, forward commitments, and provisions for investor reserves.

Credit Risk

The Company is subject to credit risk associated with mortgage loans that it purchases and originates during the period of time prior to the sale of these loans. The Company considers credit risk and losses associated with these loans to be insignificant as it holds the loans for a short period of time, which for the three months ended March 31, 2022 is, on average, approximately 21 days from the date of borrowing, and the market for these loans continues to be highly liquid. The Company is also subject to credit risk associated with mortgage loans it has repurchased as a result of breaches of representations and warranties during the period of time between repurchase and resale.