Reverse Mortgages

9 Months Ended

Sep. 30, 2021

Note 5 – Reverse Mortgages


	Three Months Ended September 30,
	2021				2020
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings
Beginning balance	$	7,112,273	$	(6,823,911)	$	6,718,992	$	(6,477,616)

Originations	494,330		—		299,628		—
Securitization of HECM loans accounted for as a financing	—		(452,262)		—		(295,347)
Additional proceeds from securitization of HECM loans and tails	—		(7,751)		—		(12,407)
Repayments (principal payments received)	(449,236)		446,277		(249,372)		247,793
Transfers to:
Loans held for sale, at fair value	(1,220)		—		(781)		—
Receivables, net	(84)		—		105		—
Other assets	(121)		—		(38)		—
Change in fair value included in earnings	(55,216)		55,083		81,396		(68,966)
Ending Balance	$	7,100,726	$	(6,782,564)	$	6,849,930	$	(6,606,543)
Securitized loans (pledged to HMBS-Related Borrowings)	$	6,874,025	$	(6,782,564)	$	6,715,093	$	(6,606,543)
Unsecuritized loans	226,701				134,837		—
Total	$	7,100,726			$	6,849,930



	Nine Months Ended September 30,
	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	$	(6,063,435)
Cumulative effect of fair value election (1)	—		—		47,038		—
Originations	1,214,772		—		867,702		—
Securitization of HECM loans accounted for as a financing (incl. realized fair value changes)	—		(1,119,742)		—		(885,987)
Additional proceeds from securitization of HECM loans and tails	—		(34,918)		—		(28,572)
Repayments (principal payments received)	(1,170,245)		1,161,609		(619,486)		613,026
Transfers to:
Loans held for sale, at fair value	(2,898)		—		(1,900)		—
Receivables, net	(169)		—		(181)		—
REO (Other assets)	(316)		—		(403)		—
Change in fair value	62,455		(16,802)		287,564		(241,575)
Ending Balance	$	7,100,726	$	(6,782,564)	$	6,849,930	$	(6,606,543)
Securitized	$	6,874,025	$	(6,782,564)	$	6,715,093	$	(6,606,543)
Unsecuritized	226,701				134,837
	$	7,100,726			$	6,849,930

(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 September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Gain on new originations (1)	$	12,900	$	13,545	$	46,170	$	33,156
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	(13,033)		(1,115)		(517)		12,833

Change in fair value included in earnings, net	(133)		12,430		45,653		45,989
Loan fees and other	5,168		2,069		10,509		5,066
	$	5,035	$	14,499	$	56,162	$	51,055

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