Loans Held for Sale (Tables)

3 Months Ended

Mar. 31, 2022

Schedule of Loans Held for Sale Fair Value


Loans Held for Sale - Fair Value	Three Months Ended March 31,
	2022		2021
Beginning balance	$	917,534	$	366,364
Originations and purchases	3,472,610		3,333,901
Proceeds from sales	(3,570,863)		(3,169,015)
Principal collections	(29,465)		(5,418)
Transfers from (to):
Loans held for investment, at fair value	3,138		901

Receivables, net	(701)		(8,633)
REO (Other assets)	—		(2,052)
Gain (loss) on sale of loans	(72,302)		(13,732)
Capitalization of advances on Ginnie Mae modifications	7,303		3,394
Increase (decrease) in fair value of loans	(12,270)		(5,256)
Other	1,040		360
Ending balance (1)	$	716,024	$	500,814

(1)At March 31, 2022 and 2021, the balances include $(16.7) million and $(12.0) 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,
	2022		2021
Beginning balance - before Valuation Allowance	$	15,365	$	27,652

Proceeds from sales	(336)		(4,840)
Principal collections	(228)		(214)
Transfers from (to):
Receivables, net	(1,103)		(224)
REO (Other assets)	(358)		(473)

Gain on sale of loans	4		389
Other	3		181
Ending balance - before Valuation Allowance	13,347		22,471

Beginning balance - Valuation Allowance	$	(4,372)	$	(6,180)
(Provision for) reversal of valuation allowance	(71)		703
Transfer to Liability for indemnification obligations (Other liabilities)	123		15


Ending balance - Valuation Allowance	(4,320)		(5,462)

Ending balance, net	$	9,027	$	17,009

Schedule of Gains on Loans Held for Sale, Net


Gain (loss) on Loans Held for Sale, Net	Three Months Ended March 31,
	2022		2021
Gain on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	45,803	$	34,260

Gain (loss) on sale of forward mortgage loans (1)	(72,296)		(18,567)
Gain on sale of repurchased Ginnie Mae loans (1)	599		4,900

	(25,894)		20,593
Change in fair value of IRLCs	(12,057)		(8,618)
Change in fair value of loans held for sale	(11,686)		(4,981)
Gain (loss) on economic hedge instruments (2)	47,107		—

Other	(674)		(1,273)
	$	(3,206)	$	5,721

(1)Realized gain (loss) on sale of loans, excluding retained MSRs.

(2)Excludes gains of $13.3 million and $35.4 million on inter-segment economic hedge derivatives presented within MSR valuation adjustments, net for the three months ended March 31, 2022 and 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 18 – Business Segment Reporting.