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Mortgage Loans Held for Sale and Investment | 12 Months Ended
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Dec. 31, 2018
Mortgage Loans Held for Sale and Investment [Abstract] |
Mortgage Loans Held for Sale and Investment | 7. Mortgage Loans Held for Sale and Investment Mortgage Loans Held for Sale The Company maintains a strategy of originating and purchasing residential mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. The Company focuses on assisting customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases. Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis. Mortgage loans held for sale are recorded at fair value as set forth below.
| Successor |  |  | Predecessor
| December 31, 2018 |  |  | December 31, 2017
Mortgage loans held for sale - UPB | $ | 1,568 |  |  |  | $ | 1,837 |
Mark-to-market adjustment(1) | 63 |  |  |  | 54 |
Total mortgage loans held for sale | $ | 1,631 |  |  |  | $ | 1,891 |
(1) | The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations.
The Company accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. Accrued interest is recorded as interest income in the consolidated statements of operations. The total UPB of mortgage loans held for sale on non-accrual status was as follows:
| Successor |  |  | Predecessor
| December 31, 2018 |  |  | December 31, 2017
Mortgage Loans Held for Sale - UPB | UPB |  | Fair Value |  |  | UPB |  | Fair Value
Non-accrual(1) | $ | 45 |  |  | $ | 42 |  |  |  | $ | 66 |  |  | $ | 64 |
(1) | Non-accrual includes $40 and $64 of UPB related to Ginnie Mae repurchased loans as of December 31, 2018 and 2017, respectively.
From time to time, the Company exercises its right to repurchase individual delinquent loans in Ginnie Mae securitization pools to minimize interest spread losses, to re-pool into new Ginnie Mae securitizations, or to otherwise sell to third-party investors. During the five months ended December 31, 2018, the Company repurchased $56 of delinquent Ginnie Mae loans and securitized or sold to third-party investors $95 of previously repurchased loans. During the seven months ended July 31, 2018 and the year ended December 31, 2017, the Predecessor repurchased $118 and $316 of delinquent Ginnie Mae loans, respectively, and securitized or sold to third-party investors $151 and $341 of previously repurchased loans, respectively. As of December 31, 2018 and 2017, $70 and $227 of the repurchased loans have re-performed and were held in accrual status, respectively, and remaining balances continue to be held under a nonaccrual status. The total UPB of mortgage loans held for sale for which the Company and the Predecessor have begun formal foreclosure proceedings was $33 and $51 as of December 31, 2018 and 2017, respectively. The following table details a roll forward of the change in the account balance of mortgage loans held for sale.
| Successor |  |  | Predecessor
Mortgage loans held for sale | For the Period August 1 - December 31, 2018 |  |  | For the Period January 1 - July 31, 2018 |  | Year ended December 31, 2017
Balance - beginning of period | $ | 1,514 |  |  |  | $ | 1,891 |  |  | $ | 1,788 |
Mortgage loans originated and purchased, net of fees | 8,890 |  |  |  | 12,319 |  |  | 19,140 |
Loans sold | (9,304 | ) |  |  | (13,255 | ) |  | (20,318 | )
Repurchase of loans out of Ginnie Mae securitizations | 527 |  |  |  | 544 |  |  | 1,249 |
Transfer of mortgage loans held for sale to advances/accounts receivable related to claims(1) | (5 | ) |  |  | (7 | ) |  | (19 | )
Net transfer of mortgage loans held for sale from REO in other assets(2) | 5 |  |  |  | 14 |  |  | 23 |
Changes in fair value | 6 |  |  |  | (1 | ) |  | 9 |
Other purchase-related activities(3) | (2 | ) |  |  | 9 |  |  | 19 |
Balance - end of period | $ | 1,631 |  |  |  | $ | 1,514 |  |  | $ | 1,891 |
(1) | Amounts are comprised of claims made on certain government insured mortgage loans upon completion of the REO sale.
(2) | Net amounts are comprised of REO in the sales process which are transferred to other assets and certain government insured mortgage REO which are transferred from other assets upon completion of the sale so that the claims process can begin.
(3) | Amounts are comprised primarily of non-Ginnie Mae loan purchases and buyouts.
For the five months ended December 31, 2018, the Company received proceeds of $9,397 on the sale of mortgage loans held for sale, resulting in gains of $93. For the seven months ended July 31, 2018 and years ended December 31, 2017 and 2016, the Predecessor received proceeds of $13,382, $20,772 and $21,942, respectively, on the sale of mortgage loans held for sale, resulting in gains of $127, $454 and $539, respectively. The Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased solely with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale. The amounts repurchased out of Ginnie Mae pools, as presented above, are primarily in connection with loan modifications and loan resolution activity as part of the Company’s contractual obligations as the servicer of the loans. Mortgage Loans Held for Investment The following sets forth the composition of mortgage loans held for investment, net.
| Successor
| December 31, 2018
Mortgage loans held for investment, net – UPB | $ | 156 |
Fair value adjustments | (37 | )
Total mortgage loans held for investment at fair value | $ | 119 |
| Predecessor
| December 31, 2017
Mortgage loans held for investment, net - UPB | $ | 193 |
Transfer discount: |
Non-accretable | (41 | )
Accretable | (12 | )
Allowance for loan losses | (1 | )
Total mortgage loans held for investment, net | $ | 139 |
The Predecessor recorded interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, the Predecessor reclassified to accretable yield discount approximately $1 of transfer discount designated as reserves for future loss, for the seven months ended July 31, 2018 and the year ended December 31, 2017, respectively. No provision for reserves was required for the year ended December 31, 2017 as the fair value of the underlying collateral exceeded the carrying value of the loans, net of the non-accretable discount. The total UPB of mortgage loans held for investment on non-accrual status was as follows:
| Successor
| December 31, 2018
Mortgage Loans Held for Investment - UPB | UPB |  | Fair Value
Non-accrual | $ | 27 |  |  | $ | 13 |
The following table details a roll forward of the change in the account balance of mortgage loans held for investment.
| Successor
Mortgage loans held for investment at fair value | For the Period August 1 - December 31, 2018
Balance - beginning of period | $ | 125 |
Payments received from borrowers | (5 | )
Charge-offs | (3 | )
Changes in fair value | 2 |
Balance - end of period | $ | 119 |
The total UPB of mortgage loans held for investment for which the Company and the Predecessor have begun formal foreclosure proceedings was $15 and $22 as of December 31, 2018 and 2017, respectively.

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- Definition Mortgage Loans Held for Sale and Investment + References No definition available. + Details
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- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI http://asc.fasb.org/topic&trid=2196771 + Details
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