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Loans Held for Sale
 6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Loans Held for Sale
Note 5 – Loans Held for Sale
Loans Held for Sale - Fair Value
The following table summarizes the activity in the balance:
Six months ended June 30,
2017
 
2016
Beginning balance
$
284,632

 
$
309,054

Originations and purchases
1,547,169

 
1,924,514

Proceeds from sales
(1,603,889
)
 
(1,910,019
)
Principal collections
(2,062
)
 
(8,877
)
Transfers from loans held for sale at lower of cost or fair value
—

 
1,158

Gain on sale of loans
9,396

 
16,009

Increase in fair value of loans
3,838

 
4,266

Other
406

 
3,582

Ending balance (1)
$
239,490

 
$
339,687

(1)
At June 30, 2017 and 2016, the balances include $8.7 million and $16.2 million, respectively, of fair value adjustments.
At June 30, 2017, loans held for sale, at fair value with a UPB of $229.6 million were pledged as collateral to warehouse lines of credit in our Lending segment.
Loans Held for Sale - Lower of Cost or Fair Value
The following table summarizes the activity in the net balance:
Six months ended June 30,
2017
 
2016
Beginning balance
$
29,374

 
$
104,992

Purchases
696,306

 
958,610

Proceeds from sales
(607,181
)
 
(856,426
)
Principal collections
(4,127
)
 
(14,109
)
Transfers to accounts receivable
(96,918
)
 
(137,605
)
Transfers to real estate owned
(435
)
 
(5,958
)
Gain (loss) on sale of loans
(2,434
)
 
12,962

Decrease (increase) in valuation allowance
3,573

 
(1,275
)
Other
3,311

 
912

Ending balance (1)
$
21,469

 
$
62,103


(1)
At June 30, 2017 and 2016, the balances include $16.0 million and $45.5 million, respectively, of loans that we were required to repurchase from Ginnie Mae guaranteed securitizations as part of our servicing obligations. Repurchased loans are modified or otherwise remediated through loss mitigation activities or are reclassified to receivables.
The changes in the valuation allowance are as follows:
Periods ended June 30,
Three Months
 
Six Months
2017
 
2016
 
2017
 
2016
Beginning balance
$
5,635

 
$
17,993

 
$
10,064

 
$
14,658

Provision
490

 
(434
)
 
854

 
2,163

Transfer from liability for indemnification obligations
632

 
675

 
887

 
1,705

Sales of loans
(600
)
 
(2,249
)
 
(5,646
)
 
(2,249
)
Other
334

 
(52
)
 
332

 
(344
)
Ending balance
$
6,491

 
$
15,933

 
$
6,491

 
$
15,933


At June 30, 2017, Loans held for sale, at lower of cost or fair value, with a UPB of $8.1 million were pledged as collateral to a warehouse line of credit in our Servicing segment.
Gain on Loans Held for Sale, Net
The following table summarizes the activity in Gain on loans held for sale, net:
Periods ended June 30,
Three Months
 
Six Months
2017
 
2016
 
2017
 
2016
MSRs retained on transfers of forward loans
$
6,906

 
$
9,002

 
$
15,032

 
$
15,486

Fair value gains related to transfers of reverse mortgage loans, net
14,049

 
7,279

 
21,687

 
7,635

Gain on sale of repurchased Ginnie Mae loans
4,753

 
7,952

 
3,756

 
12,962

Other gains (losses) related to loans held for sale, net
10,759

 
(5,147
)
 
12,904

 
942

Gain on sales of loans, net
36,467

 
19,086

 
53,379

 
37,025

Change in fair value of IRLCs
(2,487
)
 
(794
)
 
(1,428
)
 
6,672

Change in fair value of loans held for sale
(1,854
)
 
18,191

 
5,813

 
21,713

Loss on economic hedge instruments
(3,670
)
 
(8,425
)
 
(6,184
)
 
(21,626
)
Other
(201
)
 
(201
)
 
(381
)
 
(355
)
 
$
28,255

 
$
27,857

 
$
51,199

 
$
43,429