Mortgage Banking Activities, Net (Tables)

9 Months Ended

Sep. 30, 2022

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

Table 20.1 – Mortgage Banking Activities


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2022		2021		2022		2021
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	(22,776)	$	27,862	$	(125,012)	$	75,496
Trading securities (2)	148		32		4,249		(342)
Risk management derivatives (3)	24,319		3,963		107,573		37,187
Other income (expense), net (4)	467		1,089		5,496		3,305
Total residential mortgage banking activities, net	2,158		32,946		(7,694)		115,646

Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
Single-family rental loans, at fair value (1)	(19,306)		18,461		(84,493)		54,675
Risk management derivatives (3)	24,044		(424)		56,564		930
Bridge loans, at fair value	(9)		3,433		2,242		6,702
Other income, net (5)	9,648		8,747		36,214		22,236
Total business purpose mortgage banking activities, net	14,377		30,217		10,527		84,543
Mortgage Banking Activities, Net	$	16,535	$	63,163	$	2,833	$	200,189

(1)For residential loans, includes changes in fair value for associated loan purchase 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.