Mortgage Banking Activities, Net (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 and 2022.

Table 20.1 – Mortgage Banking Activities


	Three Months Ended September 30,				Nine Months Ended September 30,
(In Thousands)	2023		2022		2023		2022
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	(2,819)	$	(22,776)	$	5,272	$	(125,012)
Trading securities (2)	(482)		148		2,188		4,249
Risk management derivatives (3)	12,158		24,319		10,508		107,573
Other income, net (4)	107		467		1,422		5,496
Total residential mortgage banking activities, net	8,964		2,158		19,390		(7,694)

Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
BPL term loans, at fair value (1)	1,600		(19,306)		13,214		(84,493)
BPL bridge loans, at fair value	1,438		(9)		4,808		2,242
Risk management derivatives (3)	3,434		24,044		1,295		56,564
Other income, net (5)	4,004		9,648		13,956		36,214
Total business purpose mortgage banking activities, net	10,476		14,377		33,273		10,527
Mortgage Banking Activities, Net	$	19,440	$	16,535	$	52,663	$	2,833

(1)For residential loans, includes changes in fair value for associated loan purchase commitments. For BPL term loans, includes changes in fair value for associated interest rate lock commitments.

(2)Represents fair value changes on trading securities that are being used along 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.