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Loans Held for Sale
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Loans Held for Sale
Note 4 – Loans Held for Sale
Loans Held for Sale - Fair Value
Nine Months Ended September 30,
2018
 
2017
Beginning balance
$
214,262

 
$
284,632

Originations and purchases
671,503

 
2,204,028

Proceeds from sales
(728,531
)
 
(2,310,294
)
Principal collections
(14,201
)
 
(3,684
)
Transfers from (to):
 
 
 
Loans held for investment, at fair value
694

 
—

Loans held for sale - Lower of cost or fair value
(11,564
)
 
—

Receivables, net
(1,165
)
 
—

Real estate owned (Other assets)
(2,240
)
 
—

Gain on sale of loans
25,525

 
22,131

Increase (decrease) in fair value of loans
(12,791
)
 
1,836

Other
3,925

 
1,789

Ending balance (1)
$
145,417

 
$
200,438


(1)
At September 30, 2018 and 2017, the balances include $(6.5) million and $6.7 million, respectively, of fair value adjustments.
At September 30, 2018, loans held for sale, at fair value with a UPB of $76.3 million were pledged as collateral to warehouse lines of credit in our Lending segment.
Loans Held for Sale - Lower of Cost or Fair Value
Nine Months Ended September 30,
2018
 
2017
Beginning balance
$
24,096

 
$
29,374

Purchases
563,327

 
870,697

Proceeds from sales
(400,693
)
 
(746,999
)
Principal collections
(11,101
)
 
(6,545
)
Transfers from (to):
 
 
 
Receivables, net
(118,762
)
 
(137,807
)
Real estate owned (Other assets)
(1,681
)
 
(711
)
Loans held for sale - Fair value
11,564

 
—

Gain on sale of loans
2,180

 
8,332

(Increase) decrease in valuation allowance
(3,144
)
 
1,566

Other
6,233

 
5,317

Ending balance (1)
$
72,019

 
$
23,224


(1)
At September 30, 2018 and 2017, the balances include $53.0 million and $17.6 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. We may repurchase loans that have been modified, to facilitate loss reduction strategies, or as otherwise obligated as a Ginnie Mae servicer. Repurchased loans may be modified or otherwise remediated through loss mitigation activities, may be sold to a third party, or are reclassified to receivables.
Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value
Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Beginning balance
$
7,535

 
$
6,491

 
$
7,318

 
$
10,064

Provision
2,755

 
906

 
3,036

 
1,761

Transfer from Liability for indemnification obligations (Other liabilities)
554

 
1,529

 
1,551

 
2,416

Sales of loans
(382
)
 
(426
)
 
(1,464
)
 
(6,071
)
Other
—

 
(2
)
 
21

 
328

Ending balance
$
10,462

 
$
8,498

 
$
10,462

 
$
8,498



Gain on Loans Held for Sale, Net
Three Months Ended September 30,
 
Nine Months Ended September 30,
2018
 
2017
 
2018
 
2017
Gain on sales of loans, net
 
 
 
 
 
 
 
MSRs retained on transfers of forward loans
$
1,427

 
$
3,572

 
$
5,880

 
$
18,604

Fair value gains related to transfers of reverse mortgage loans, net
9,421

 
15,747

 
36,870

 
37,434

Gain on sale of repurchased Ginnie Mae loans
1,222

 
4,577

 
2,179

 
8,332

Other, net
4,459

 
6,730

 
24,028

 
19,635

 
16,529

 
30,626

 
68,957

 
84,005

Change in fair value of IRLCs
26

 
(178
)
 
137

 
(1,605
)
Change in fair value of loans held for sale
365

 
(2,078
)
 
(9,781
)
 
3,735

Gain (loss) on economic hedge instruments
84

 
(2,420
)
 
2,082

 
(8,604
)
Other
(62
)
 
(173
)
 
(260
)
 
(555
)
 
$
16,942

 
$
25,777

 
$
61,135

 
$
76,976