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Loans Held for Sale (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Loans Held for Sale Fair Value


Loans Held for Sale - Fair Value	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Beginning balance	$	500,814	$	203,592	$	366,364	$	208,752
Originations and purchases	3,286,826		1,117,548		6,620,727		1,949,022
Proceeds from sales	(3,094,639)		(1,067,574)		(6,263,654)		(1,872,776)
Principal collections	(11,285)		(8,925)		(16,703)		(15,758)
Transfers from (to):
Loans held for investment, at fair value	777		541		1,678		1,119

Receivables, net	(8,893)		(16,924)		(17,526)		(48,226)
REO (Other assets)	(1,493)		(73)		(3,545)		(841)
Gain (loss) on sale of loans	(1,067)		21,835		(14,799)		28,253
Increase (decrease) in fair value of loans	4,567		(653)		(689)		(2,295)
Other	5,259		3,670		9,013		5,787
Ending balance (1)	$	680,866	$	253,037	$	680,866	$	253,037

(1)At June 30, 2021 and 2020, the balances include $(7.4) million and $(7.5) 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 June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Beginning balance - before Valuation Allowance	$	22,471	$	49,204	$	27,652	$	73,160

Proceeds from sales	(1,827)		(16,373)		(6,667)		(46,865)
Principal collections	—		(154)		(214)		(805)
Transfers from (to):
Receivables, net	(492)		(205)		(492)		61


Gain (loss) on sale of loans	125		(227)		514		1,615

Other	1		(365)		(515)		4,714
Ending balance - before Valuation Allowance	20,278		31,880		20,278		31,880

Beginning balance - Valuation Allowance	$	(5,462)	$	(6,781)	$	(6,180)	$	(6,643)
(Provision for) reversal of valuation allowance	277		(559)		980		(1,129)
Transfer to (from) Liability for indemnification obligations (Other liabilities)	61		(50)		76		(75)
Sales of loans	—		990		—		1,447

Ending balance - Valuation Allowance	(5,124)		(6,400)		(5,124)		(6,400)

Ending balance, net	$	15,154	$	25,480	$	15,154	$	25,480

Schedule of Gains on Loans Held for Sale, Net


Gain on Loans Held for Sale, Net	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	35,802	$	9,128	$	70,062	$	15,689

Gain (loss) on sale of forward mortgage loans	(4,272)		16,886		(22,839)		23,304
Gain on sale of repurchased Ginnie Mae loans	3,416		4,531		8,316		6,373

	34,946		30,545		55,539		45,366
Change in fair value of IRLCs	3,528		6,334		(5,090)		12,048
Change in fair value of loans held for sale	5,149		147		168		306
Loss on economic hedge instruments (1)	(188)		(3,128)		(188)		(10,320)
Other	(722)		(351)		(1,995)		(522)
	$	42,713	$	33,547	$	48,434	$	46,878

(1)Excludes $11.3 million loss and $24.1 million gain on inter-segment economic hedge derivative presented within MSR valuation adjustments, net for the three and six months ended June 30, 2021, respectively. 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 19 – Business Segment Reporting.