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Loans Held for Sale (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of Loans Held for Sale Fair Value
Loans Held for Sale - Fair Value
Three Months Ended March 31,
2020
 
2019
Beginning balance
$
208,752

 
$
176,525

Originations and purchases (2)
831,474

 
219,867

Proceeds from sales
(805,202
)
 
(235,895
)
Principal collections
(6,833
)
 
(5,516
)
Transfers from (to):
 
 
 
Loans held for investment, at fair value
578

 
396

Receivables, net
(31,302
)
 
(581
)
REO (Other assets)
(768
)
 
(696
)
Gain on sale of loans
6,418

 
8,191

Decrease in fair value of loans
(1,642
)
 
(228
)
Other
2,117

 
(8,923
)
Ending balance (1) (2) (3)
$
203,592

 
$
153,140


(1)
At March 31, 2020 and 2019, the balances include $(9.4) million and $(7.8) million, respectively, of fair value adjustments.
(2)
We elected the fair value option for all newly repurchased loans after December 31, 2019, consistent with our fair value election of originated loans.
(3)
At March 31, 2020 and 2019, the balances include $25.6 million and nil, 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.
Schedule of Loans Held for Sale at Lower Cost or Fair Value, Activity
Loans Held for Sale - Lower of Cost or Fair Value
Three Months Ended March 31,
2020
 
2019
Beginning balance
$
66,517

 
$
66,097

Purchases (1)
—

 
84,315

Proceeds from sales
(30,492
)
 
(62,135
)
Principal collections
(651
)
 
(1,776
)
Transfers from (to):
 
 
 
Receivables, net
266

 
(27,411
)
REO (Other assets)
—

 
(1,095
)
Gain on sale of loans
1,842

 
551

Decrease in valuation allowance
(138
)
 
706

Other
5,079

 
10,295

Ending balance (1)
$
42,423

 
$
69,547

(1)
At March 31, 2020 and 2019, the balances include $29.3 million and $42.7 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines. Loans repurchased after December 31, 2019 are classified as Loans Held for Sale - Fair Value since we elected the fair value option, consistent with our fair value election for originated or purchased loans.
Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value
Three Months Ended March 31,
2020
 
2019
Beginning balance
$
6,643

 
$
11,569

Provision
570

 
642

Transfer from Liability for indemnification obligations (Other liabilities)
25

 
67

Sales of loans
(457
)
 
(1,415
)
Ending balance
$
6,781

 
$
10,863
Schedule of Changes in Allowance For Losses
Valuation Allowance - Loans Held for Sale at Lower of Cost or Fair Value
Three Months Ended March 31,
2020
 
2019
Beginning balance
$
6,643

 
$
11,569

Provision
570

 
642

Transfer from Liability for indemnification obligations (Other liabilities)
25

 
67

Sales of loans
(457
)
 
(1,415
)
Ending balance
$
6,781

 
$
10,863

Allowance for Losses
Three Months Ended March 31,
 
2020
 
2019
Beginning balance
$
9,925

 
$
23,259

Provision (reversal)
(761
)
 
1,762

Net charge-offs and other
(1,791
)
 
(1,886
)
Ending balance (1)
$
7,373

 
$
23,135

(1)
$18.0 million allowance related to sold advances was reclassified in the third quarter of 2019 and presented as Other liabilities (Liability for indemnification obligations).
Schedule of Gains on Loans Held for Sale, Net
Gain on Loans Held for Sale, Net
Three Months Ended March 31,
2020
 
2019
Gain on sales of loans, net
 
 
 
MSRs retained on transfers of forward mortgage loans
$
6,561

 
$
828

Gain on sale of repurchased Ginnie Mae loans
1,842

 
538

Gain on sale of forward mortgage loans
6,418

 
10,444

 
14,821

 
11,810

Change in fair value of IRLCs
5,714

 
(341
)
Change in fair value of loans held for sale
159

 
(142
)
Loss on economic hedge instruments
(7,192
)
 
(2,270
)
Other
(171
)
 
(75
)
 
$
13,331

 
$
8,982