Reverse Mortgages

3 Months Ended

Mar. 31, 2022

Note 5 - Reverse Mortgages


	Three Months Ended March 31,
	2022				2021
	Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings (2)		Loans Held for Investment - Reverse Mortgages		HMBS - Related Borrowings (1)
Beginning balance	$	7,199,762	$	(6,885,022)	$	6,997,127	$	(6,772,711)

Originations	620,237		—		326,735		—
Securitization of HECM loans accounted for as a financing	—		(583,899)		—		(287,830)
Additional proceeds from securitization of HECM loans and tails	—		(12,200)		—		(12,565)
Acquisition (1)	211,258		(209,057)		—		—
Repayments (principal payments received)	(518,818)		517,380		(314,153)		311,562
Transfers to:
Loans held for sale, at fair value	(3,154)		—		(901)		—
Receivables, net	(12,462)		—		(116)		—
Other assets	(132)		—		(111)		—
Change in fair value included in earnings (3)	(45,136)		53,954		35,793		(16,651)
Ending balance	$	7,451,555	$	(7,118,844)	$	7,044,374	$	(6,778,195)
Securitized loans (pledged to HMBS-Related Borrowings)	$	7,202,045	$	(7,118,844)	$	6,874,880	$	(6,778,195)
Unsecuritized loans	249,510				169,494
Total	$	7,451,555			$	7,044,374

(1)During the first quarter of 2022, we purchased a reverse mortgage servicing portfolio of HECM loans securitized in Ginnie Mae pools. As the Ginnie Mae HMBS program does not qualify for sale accounting, the transaction conveyed the HECM loans and associated HMBS-related borrowings to us. We have accounted for this transaction as a secured financing, as a purchase of loans held for investment and assumption of an HMBS securitization liability for the obligation to Ginnie Mae.

(2)Represents amounts due to the holders of beneficial interests in Ginnie Mae guaranteed HMBS that did not qualify for sale accounting treatment of HECM loans. Under this accounting treatment, the HECM loans securitized with Ginnie Mae remain on our consolidated balance sheets and the proceeds from the sale are recognized as a financing liability, which is recorded at fair value consistent with the related HECM loans. The beneficial interests in Ginnie Mae guaranteed HMBS have no maturity dates, and the borrowings mature as the

related loans are repaid. The interest rate is the pass-through rate of the loans less applicable margin. See Note 2 – Securitizations and Variable Interest Entities

(3)See further breakdown in the table below.


Reverse Mortgage Revenue, net	Three Months Ended March 31,
	2022		2021
Gain on new originations (1)	$	20,671	$	17,107
Change in fair value of securitized loans held for investment and HMBS-related borrowings, net	(11,853)		2,035

Change in fair value included in earnings, net (2)	8,818		19,142
Loan fees and other	4,292		2,684
	$	13,110	$	21,826

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

(2)See breakdown between loans held-for-investment and HMBS - related borrowings in the table above.