Reverse Mortgages

3 Months Ended

Mar. 31, 2021

Note 5 – Reverse Mortgages


	Three Months Ended March 31,
	2021				2020
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	6,997,127	$	(6,772,711)	$	6,269,596	$	(6,063,434)
Cumulative effect of fair value election (1)	—		—		47,038		—
Originations	326,735		—		294,932		—
Securitization of HECM loans accounted for as a financing	—		(287,830)		—		(312,249)
Additional proceeds from securitization of HECM loans and tails	—		(12,565)		—		(8,414)
Repayments (principal payments received)	(314,153)		311,562		(175,095)		172,429
Transfers to:
Loans held for sale, at fair value	(901)		—		(578)		—
Receivables, net	(116)		—		(129)		—
Other assets	(111)		—		(265)		—
Change in fair value included in earnings	35,793		(16,651)		133,322		(111,423)
Ending Balance	$	7,044,374	$	(6,778,195)	$	6,568,821	$	(6,323,091)
Securitized loans (pledged to HMBS-Related Borrowings)	$	6,874,880	$	(6,778,195)	$	6,438,810	$	(6,323,091)
Unsecuritized loans	169,494				130,011
Total	$	7,044,374			$	6,568,821

(1)In conjunction with the adoption of ASU 2016-13, we elected the fair value option for future draw commitments (tails) on HECM reverse mortgage loans purchased or originated before December 31, 2018, which resulted in the recognition of the fair value of such tails through stockholders’ equity on January 1, 2020.


Reverse Mortgage Revenue, net	Three Months Ended March 31,
	2021		2020
Gain on new originations (1)	$	17,107	$	16,784
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	2,035		5,115

Change in fair value included in earnings, net	19,142		21,899
Loan fees and other	2,684		898
	$	21,826	$	22,797

(1)Includes the changes in fair value of newly originated loans held for investment in the period through securitization date.