Mortgage Banking Activities, Net

6 Months Ended

Jun. 30, 2022

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three and six months ended June 30, 2022 and 2021.

Table 19.1 – Mortgage Banking Activities


	Three Months Ended June 30,				Six Months Ended June 30,
(In Thousands)	2022		2021		2022		2021
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	(33,414)	$	76,907	$	(102,236)	$	47,634
Trading securities (2)	1,315		(1,095)		4,101		(374)
Risk management derivatives (3)	9,900		(55,740)		83,254		33,224
Other income (expense), net (4)	4,412		1,193		5,029		2,216
Total residential mortgage banking activities, net	(17,787)		21,265		(9,852)		82,700

Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
Single-family rental loans, at fair value (1)	(39,994)		25,966		(65,187)		36,214
Risk management derivatives (3)	15,487		(2,504)		32,520		1,354
Bridge loans, at fair value	116		2,225		2,251		3,269
Other income, net (5)	12,161		7,467		26,566		13,489
Total business purpose mortgage banking activities, net	(12,230)		33,154		(3,850)		54,326
Mortgage Banking Activities, Net	$	(30,017)	$	54,419	$	(13,702)	$	137,026

(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 repurchases, presented net.

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