Mortgage Banking Activities, Net (Tables)

6 Months Ended

Jun. 30, 2021

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the three and six months ended June 30, 2021 and 2020.

Table 19.1 – Mortgage Banking Activities


	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2021		2020		2021		2020
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	76,907	$	(1,393)	$	47,634	$	6,562
Trading securities (2)	(1,095)		—		(374)		—
Risk management derivatives (3)	(55,740)		—		33,224		(31,294)
Other income (expense), net (4)	1,193		(6,612)		2,216		(6,354)
Total residential mortgage banking activities, net	21,265		(8,005)		82,700		(31,086)

Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
Single-family rental loans, at fair value (1)	25,966		1,210		36,214		13,018
Risk management derivatives (3)	(2,504)		—		1,354		(21,538)
Bridge loans, at fair value	2,225		(1,260)		3,269		(5,194)
Other income, net (5)	7,467		2,073		13,489		9,916
Total business purpose mortgage banking activities, net	33,154		2,023		54,326		(3,798)
Mortgage Banking Activities, Net	$	54,419	$	(5,982)	$	137,026	$	(34,884)

(1)For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments.

(2)Represents fair value changes on trading securities that are being used as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations.

(3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations.

(4)Amounts in this line item include other fee income from loan acquisitions and provisions for repurchase expense, presented net.

(5)Amounts in this line item include other fee income from loan originations.