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Loans Held for Sale
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Loans Held for Sale
Note 4 – Loans Held for Sale
Loans Held for Sale - Fair Value
The following table summarizes the activity in the balance:
Nine months ended September 30,
2017
 
2016
Beginning balance
$
284,632

 
$
309,054

Originations and purchases
2,204,028

 
3,141,205

Proceeds from sales
(2,310,294
)
 
(3,167,640
)
Principal collections
(3,684
)
 
(10,995
)
Transfers from Loans held for sale - Lower of cost or fair value
—

 
1,158

Gain on sale of loans
22,131

 
23,627

Increase in fair value of loans
1,836

 
990

Other
1,789

 
4,715

Ending balance (1)
$
200,438

 
$
302,114

(1)
At September 30, 2017 and 2016, the balances include $6.7 million and $13.0 million, respectively, of fair value adjustments.
At September 30, 2017, loans held for sale, at fair value with a UPB of $190.8 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:
Nine months ended September 30,
2017
 
2016
Beginning balance
$
29,374

 
$
104,992

Purchases
870,697

 
1,434,059

Proceeds from sales
(746,999
)
 
(1,295,101
)
Principal collections
(6,545
)
 
(20,151
)
Transfers to Receivables, net
(137,807
)
 
(199,047
)
Transfers to Real estate (Other assets)
(711
)
 
(6,434
)
Transfers to Loans held for sale - Fair value
—

 
(1,158
)
Gain on sale of loans
8,332

 
18,259

Decrease in valuation allowance
1,566

 
4,637

Other
5,317

 
(2,405
)
Ending balance (1)
$
23,224

 
$
37,651


(1)
At September 30, 2017 and 2016, the balances include $17.6 million and $28.1 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 September 30,
Three Months
 
Nine Months
2017
 
2016
 
2017
 
2016
Beginning balance
$
6,491

 
$
15,933

 
$
10,064

 
$
14,658

Provision
906

 
(63
)
 
1,761

 
2,100

Transfer from Liability for indemnification obligations (Other liabilities)
1,529

 
601

 
2,416

 
2,306

Sales of loans
(426
)
 
(6,450
)
 
(6,071
)
 
(8,699
)
Other
(2
)
 
—

 
328

 
(344
)
Ending balance
$
8,498

 
$
10,021

 
$
8,498

 
$
10,021


At September 30, 2017, Loans held for sale, at lower of cost or fair value, with a UPB of $8.2 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 September 30,
Three Months
 
Nine Months
2017
 
2016
 
2017
 
2016
MSRs retained on transfers of forward loans
$
3,572

 
$
9,826

 
$
18,604

 
$
25,312

Fair value gains related to transfers of reverse mortgage loans, net
15,747

 
32,627

 
37,434

 
16,868

Gain on sale of repurchased Ginnie Mae loans
4,577

 
6,917

 
8,332

 
19,879

Other gains (losses) related to loans held for sale, net
6,730

 
(8,663
)
 
19,635

 
15,673

Gain on sales of loans, net
30,626

 
40,707

 
84,005

 
77,732

Change in fair value of IRLCs
(178
)
 
(2,523
)
 
(1,605
)
 
4,148

Change in fair value of loans held for sale
(2,078
)
 
(8,226
)
 
3,735

 
13,486

Loss on economic hedge instruments
(2,420
)
 
(4,051
)
 
(8,604
)
 
(25,677
)
Other
(173
)
 
(262
)
 
(555
)
 
(615
)
 
$
25,777

 
$
25,645

 
$
76,976

 
$
69,074