Loans Held for Sale

3 Months Ended

Mar. 31, 2023


Note 4 – Loans Held for Sale


Loans Held for Sale - Fair Value	Three Months Ended March 31,
	2023		2022
Beginning balance	$	617.8	$	917.5
Originations and purchases	2,552.4		3,472.6
Proceeds from sales	(2,296.1)		(3,570.9)
Principal collections	(15.4)		(29.5)
Transfers from (to):
Loans held for investment, at fair value	1.6		3.1

Receivables, net	1.1		(0.7)
REO (Other assets)	(4.2)		—
Capitalization of advances on Ginnie Mae modifications	2.0		7.3
Realized loss on sale of loans	(22.0)		(72.3)
Fair value gain (loss) on loans held for sale	6.2		(12.3)
Other	1.7		1.0
Ending balance (1)	$	845.2	$	716.0
UPB	$	845.6	$	736.6
Premium (discount)	6.7		(3.9)
Fair value adjustment	(7.1)		(16.7)
Total	$	845.2	$	716.0

(1)At March 31, 2023 and 2022, the balances include $23.3 million and $230.4 million, respectively, of loans that we repurchased from Ginnie Mae guaranteed securitizations pursuant to Ginnie Mae servicing guidelines.


Loans Held for Sale - Lower of Cost or Fair Value	Three Months Ended March 31,
	2023		2022










Carrying amount before valuation allowance	$	8.1	$	13.3






Valuation allowance	(3.9)		(4.3)

Ending balance, net	$	4.2	$	9.0


Gain (Loss) on Loans Held for Sale, Net	Three Months Ended March 31,
	2023		2022
Gain (loss) on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	31.1	$	45.8

Gain (loss) on sale of forward mortgage loans (1)	(22.1)		(72.3)
Gain (loss) on sale of repurchased Ginnie Mae loans (1)	0.2		0.6

	9.1		(25.9)
Change in fair value of IRLCs	5.7		(12.1)
Change in fair value of loans held for sale	4.8		(11.7)
Gain (loss) on economic hedge instruments (2)	(16.4)		47.1

Other	(0.3)		(0.7)
	$	2.8	$	(3.2)

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

(2)Excludes gains of $0 and $13.3 million during the three months ended March 31, 2023 and 2022, 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 and are eliminated in the consolidated financial statements. Refer to Note 17 – Business Segment Reporting.