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Loans Held for Sale
 6 Months Ended
Jun. 30, 2020
Receivables [Abstract]  
Loans Held for Sale
Note 5 – Loans Held for Sale

Loans Held for Sale - Fair Value
Six Months Ended June 30,
2020
 
2019
Beginning balance
$
208,752

 
$
176,525

Originations and purchases (1)
1,949,022

 
370,207

Proceeds from sales
(1,872,776
)
 
(405,999
)
Principal collections
(15,758
)
 
(11,046
)
Transfers from (to):
 
 
 
Loans held for investment, at fair value
1,119

 
884

Loans held for sale - Lower of cost or fair value
—

 
(2,866
)
Receivables, net
(48,226
)
 
(746
)
REO (Other assets)
(841
)
 
(866
)
Gain on sale of loans
28,253

 
18,148

Decrease in fair value of loans
(2,295
)
 
(292
)
Other
5,787

 
(8,258
)
Ending balance (1) (2) (3)
$
253,037

 
$
135,691


(1)
We elected the fair value option for all newly repurchased loans after December 31, 2019, consistent with our fair value election of originated loans.
(2)
At June 30, 2020 and 2019, the balances include $(10.1) million and $(7.5) million, respectively, of fair value adjustments.
(3)
At June 30, 2020 and 2019, the balances include $26.0 million and zero, 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.
Loans Held for Sale - Lower of Cost or Fair Value
Six Months Ended June 30,
2020
 
2019
Beginning balance
$
66,517

 
$
66,097

Purchases
—

 
131,489

Proceeds from sales
(46,865
)
 
(92,478
)
Principal collections
(805
)
 
(4,183
)
Transfers from (to):
 
 
 
Receivables, net
61

 
(53,657
)
REO (Other assets)
—

 
(2,287
)
Loans held for sale - Fair value
—

 
2,866

Gain on sale of loans
1,615

 
1,815

Decrease in valuation allowance
243

 
1,512

Other
4,714

 
9,206

Ending balance (1)
$
25,480

 
$
60,380

(1)
At June 30, 2020 and 2019, the balances include $15.4 million and $34.9 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 June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Beginning balance
$
6,781

 
$
10,863

 
$
6,643

 
$
11,569

Provision
559

 
394

 
1,129

 
1,036

Transfer from Liability for indemnification obligations (Other liabilities)
50

 
7

 
75

 
74

Sales of loans
(990
)
 
(1,207
)
 
(1,447
)
 
(2,622
)
Ending balance
$
6,400

 
$
10,057

 
$
6,400

 
$
10,057



Gain on Loans Held for Sale, Net
Three Months Ended June 30,
 
Six Months Ended June 30,
2020
 
2019
 
2020
 
2019
Gain on sales of loans, net
 
 
 
 
 
 
 
MSRs retained on transfers of forward mortgage loans
$
9,128

 
$
816

 
$
15,689

 
$
1,644

Gain on sale of repurchased Ginnie Mae loans
4,531

 
1,252

 
6,373

 
1,790

Gain on sale of forward mortgage loans
16,886

 
6,762

 
23,304

 
17,206

 
30,545

 
8,830

 
45,366

 
20,640

Change in fair value of IRLCs
6,334

 
45

 
12,048

 
(296
)
Change in fair value of loans held for sale
147

 
468

 
306

 
326

Loss on economic hedge instruments
(3,128
)
 
(968
)
 
(10,320
)
 
(3,238
)
Other
(351
)
 
(57
)
 
(522
)
 
(132
)
 
$
33,547

 
$
8,318

 
$
46,878

 
$
17,300