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Loans Held for Sale
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Loans Held for Sale
Note 4 – Loans Held for Sale
Loans Held for Sale - Fair Value
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Beginning balance$683,140 $680,866 $917,534 $366,364 
Originations and purchases5,334,747 6,366,795 13,489,346 12,987,522 
Proceeds from sales(5,191,548)(6,098,495)(13,365,766)(12,362,149)
Principal collections(60,653)(22,334)(155,884)(39,037)
Transfers from (to):
Loans held for investment, at fair value 10,807 1,220 30,437 2,898 
Receivables, net28,884 (7,625)61,095 (25,151)
REO (Other assets)(649)(1,767)(673)(5,312)
Gain (loss) on sale of loans (62,148)1,793 (248,751)(13,006)
Capitalization of advances on Ginnie Mae modifications2,585 7,334 15,698 14,625 
Increase (decrease) in fair value of loans(22,064)(5,336)(23,493)(6,025)
Other 2,117 (830)5,675 892 
Ending balance (1)
$725,218 $921,621 $725,218 $921,621 
(1)At September 30, 2022 and 2021, the balances include $(27.8) million and $(9.3) million, respectively, of fair value adjustments.

Loans Held for Sale - Lower of Cost or Fair Value
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Beginning balance - before Valuation Allowance$8,138 $20,278 $15,365 $27,652 
Proceeds from sales— (2,916)(5,160)(9,583)
Principal collections(156)(415)(776)(629)
Transfers from (to):
Receivables, net105 (444)(1,087)(1,160)
REO (Other assets)— (22)(358)(567)
Gain on sale of loans— 35 4 549 
Other81 144 180 398 
Ending balance - before Valuation Allowance8,168 16,661 8,168 16,661 
Beginning balance - Valuation Allowance $(3,813)$(5,124)$(4,372)$(6,180)
(Provision for) reversal of valuation allowance44 602 81 1,582 
Transfer to Liability for indemnification obligations (Other liabilities)21 (60)543 16 
Ending balance - Valuation Allowance(3,748)(4,582)(3,748)(4,582)
Ending balance, net $4,420 $12,079 $4,420 $12,079 
Gain (Loss) on Loans Held for Sale, Net
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Gain (loss) on sales of loans, net
MSRs retained on transfers of forward mortgage loans
$70,225 $66,420 $176,190 $136,482 
Gain (loss) on sale of forward mortgage loans (1) (2)(59,814)(2,601)(222,408)(25,440)
Gain (loss) on sale of repurchased Ginnie Mae loans (1)(3)(116)3,962 (9,780)12,277 
 10,294 67,781 (55,998)123,319 
Change in fair value of IRLCs(17,687)(4,135)(28,854)(9,225)
Change in fair value of loans held for sale(21,160)(3,491)(20,798)(3,323)
Gain (loss) on economic hedge instruments (4)48,389 780 124,613 592 
Other (906)(1,233)(2,299)(3,227)
$18,931 $59,702 $16,665 $108,136 
(1)Realized gain (loss) on sale of loans, excluding retained MSRs.
(2)Includes $22.5 million gain in the three and nine months ended September 30, 2021 related to loans purchased through the exercise of our servicer call rights with respect to certain Non-Agency trusts and sold, servicing released.
(3)Activity for the nine months ended September 30, 2022 includes an $8.8 million loss during the three months ended June 30, 2022 on certain delinquent and aged loans repurchased in connection with the Ginnie Mae EBO program with an aggregated UPB of $299.7 million, net of the associated MSR fair value adjustment.
(4)Excludes gains of $2.0 million and $15.4 million during the three and nine months ended September 30, 2022, respectively, and $1.5 million and $25.5 million during the three and nine months ended September 30, 2021, respectively, on inter-segment economic hedge derivatives presented within MSR valuation adjustments, net. 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.