Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The table below summarizes derivative activity, including the derivatives used in each of our identified hedging programs. The notional amount of our contracts does not represent our exposure to credit loss. None of the derivatives were designated as a hedge for accounting purposes as of, or during the nine months ended September 30, 2020 and 2019.


	September 30, 2020					December 31, 2019
	Maturities	Notional		Fair value		Maturities	Notional		Fair value
Derivative Assets
Forward sales of Reverse loans	Nov. 2020	$	20,000	$	31	Jan. 2020	$	40,000	$	8
Forward loans IRLCs	Oct. to Dec. 2020	857,257		21,606		Mar. 2020	204,020		4,745
Reverse loans IRLCs	Oct. 2020	30,977		1,073		Jan. 2020	28,546		133
TBA forward MBS trades	Oct. to Nov. 2020	400,000		117		Jan to Mar. 2020	1,200,000		1,121
Other	n/a	—		16		n/a	—		—
Total		$	1,308,234	$	22,843		$	1,472,566	$	6,007

Derivative Liabilities
Forward sales of Reverse loans	Oct. 2020	$	60,000	$	(114)	Jan. 2020	$	20,000	$	(29)
TBA forward MBS trades	Oct. to Nov. 2020	190,000		(696)		n/a	—		—
Interest rate swap futures	Dec. 2020	355,000		(213)		n/a	—		—
Borrowings - interest rate caps	n/a	—		—		May 2020	27,083		—
Other	n/a	—		(648)		n/a	—		(71)
Total		$	605,000	$	(1,671)		$	47,083	$	(100)

We report derivatives at fair value in Other assets or in Other liabilities on our unaudited consolidated balance sheets. Derivative instruments are generally entered into as economic hedges against changes in the fair value of a recognized asset or liability and are not designated as hedges for accounting purposes. We generally report the changes in fair value of such derivative instruments in the same line item in the unaudited consolidated statement of operations as the changes in fair value of the related asset or liability. For all other derivative instruments not designated as a hedging instrument, we report changes in fair value in Other, net.


	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019
	Gain / (Loss)			Gain / (Loss)
	Amount		Financial Statement Line	Amount		Financial Statement Line
Derivative Assets (Liabilities)
Forward loans IRLCs	$	16,860	Gain on loans held for sale, net	$	401	Gain on loans held for sale, net
Reverse loans IRLCs	940		Reverse mortgage revenue, net	802		Reverse mortgage revenue, net
Forward LHFS trades	—			(3,689)		Gain on loans held for sale, net
Interest rate swap futures and TBA forward MBS trades	(9,564)		Gain on loans held for sale, net (Economic hedge)	345		Gain on loans held for sale, net (Economic hedge)

Interest rate swap futures and TBA forward MBS trades	39,258		MSR valuation adjustments, net	322		MSR valuation adjustments, net





Forward sales of Reverse loans	(62)		Reverse mortgage revenue, net	106		Reverse mortgage revenue, net
Borrowings - interest rate caps	—		Other, net	(358)		Other, net
Other	(561)		Gain on loans held for sale, net	(220)
Total	$	46,871		$	(2,291)