Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Loans Held for Sale Fair Value


Loans Held for Sale - Fair Value	Three Months Ended March 31,
	2021		2020
Beginning balance	$	366,364	$	208,752
Originations and purchases	3,333,901		831,474
Proceeds from sales	(3,169,015)		(805,202)
Principal collections	(5,418)		(6,833)
Transfers from (to):
Loans held for investment, at fair value	901		578

Receivables, net	(8,633)		(31,302)
REO (Other assets)	(2,052)		(768)
Gain (loss) on sale of loans	(13,732)		6,418
Decrease in fair value of loans	(5,256)		(1,642)
Other	3,754		2,117
Ending balance (1)	$	500,814	$	203,592

(1)At March 31, 2021 and 2020, the balances include $(12.0) million and $(9.4) million, respectively, of fair value adjustments.

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,
	2021		2020
Beginning balance - before Valuation Allowance	$	27,652	$	73,160
Purchases	98		—
Proceeds from sales	(4,840)		(30,492)
Principal collections	(214)		(651)
Transfers from (to):
Receivables, net	—		266


Gain on sale of loans	389		1,842

Other	(614)		5,079
Ending balance - before Valuation Allowance	22,471		49,204

Beginning balance - Valuation Allowance	$	(6,180)	$	(6,643)
Provision	703		(570)
Transfer to (from) Liability for indemnification obligations (Other liabilities)	15		(25)
Sales of loans	—		457

Ending balance - Valuation Allowance	(5,462)		(6,781)

Ending balance, net	$	17,009	$	42,423

Schedule of Gains on Loans Held for Sale, Net


Gain on Loans Held for Sale, Net	Three Months Ended March 31,
	2021		2020
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	34,260	$	6,561

Gain (loss) on sale of forward mortgage loans	(18,567)		6,418
Gain on sale of repurchased Ginnie Mae loans	4,900		1,842

	20,593		14,821
Change in fair value of IRLCs	(8,618)		5,714
Change in fair value of loans held for sale	(4,981)		159
Gain (loss) on economic hedge instruments (1)	—		(7,192)
Other	(1,273)		(171)
	$	5,721	$	13,331

(1)Excludes $35.4 million gain on inter-segment economic hedge derivative presented within MSR valuation adjustments, net for the three months ended March 31, 2021. Third-party derivatives are hedging the net exposure of MSR and pipeline, and the change in fair value of derivatives are reported within MSR valuation adjustments, net. Inter-segment derivatives are established to transfer risk and allocate hedging gains/losses to the pipeline separately from the MSR portfolio. Refer to Note 18 – Business Segment Reporting.