Loans Held for Sale (Tables)

9 Months Ended

Sep. 30, 2023

Schedule of Loans Held for Sale Fair Value


Loans Held for Sale - Fair Value	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Beginning balance	$	1,352.9	$	683.1	$	617.8	$	917.5
Originations and purchases	4,418.0		5,334.7		9,830.3		13,489.3
Proceeds from sales	(4,697.9)		(5,191.5)		(9,273.6)		(13,365.8)
Principal collections	(19.6)		(60.7)		(66.6)		(155.9)
Transfers from (to):
Loans held for investment, at fair value	1.5		10.8		4.6		30.4

Receivables, net	(11.5)		28.9		(26.0)		61.1
REO (Other assets)	(3.6)		(0.6)		(14.8)		(0.7)
Capitalization of advances on Ginnie Mae modifications	1.3		2.6		5.0		15.7
Realized loss on sale of loans (1)	(89.6)		(62.1)		(140.0)		(248.8)
Fair value gain (loss) on loans held for sale	(8.1)		(22.1)		2.1		(23.5)
Other	1.3		2.1		5.8		5.7
Ending balance	$	944.7	$	725.2	$	944.7	$	725.2
UPB	$	964.4	$	751.8
Premium (discount)	4.5		1.2
Fair value adjustment	(24.2)		(27.8)
Total	$	944.7	$	725.2

(1)Excludes retained MSR and gain (loss) on economic hedge instruments.

The following table presents the fair value of Loans held for sale, at fair value by type:


	September 30, 2023		December 31, 2022
GSE loans	$	428.7	$	318.3
Government- Forward loans	316.2		150.2
Forward loans repurchased from Ginnie Mae guaranteed securitization (1)	20.7		32.1
Reverse loans (1) (2)	161.6		102.5
Other residential mortgage loans	17.4		14.8
Total	$	944.7	$	617.8

(1)Pursuant to Ginnie Mae servicing guidelines.

(2)Includes inactive reverse mortgage loans purchased from Ginnie Mae securitization pools that reached the 98% of maximum claim amount and are generally liquidated through foreclosure and subsequent sale of the REO properties.

Schedule of Loans Held for Sale at Lower Cost or Fair Value, Activity


Loans Held for Sale - Lower of Cost or Fair Value	September 30,
	2023		2022











Carrying amount before valuation allowance	$	7.2	$	8.2






Valuation allowance	(3.6)		(3.7)

Ending balance, net	$	3.6	$	4.4

Schedule of Gains on Loans Held for Sale, Net


Gain (Loss) on Loans Held for Sale, Net	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Gain (loss) on sales of loans, net
MSRs retained on transfers of forward mortgage loans	$	71.4	$	70.2	$	134.0	$	176.2

Gain (loss) on sale of forward mortgage loans (1)	(89.4)		(59.8)		(139.6)		(222.4)
Gain (loss) on sale of repurchased Ginnie Mae loans (1) (2)	(0.5)		(0.1)		(0.5)		(9.8)

	(18.5)		10.3		(6.1)		(56.0)
Change in fair value of IRLCs	(2.7)		(17.7)		(0.2)		(28.9)
Change in fair value of loans held for sale (3)	(4.1)		(21.2)		5.0		(20.8)
Gain (loss) on economic hedge instruments (4)	34.1		48.4		38.9		124.6

Other	(0.7)		(0.9)		(1.3)		(2.3)
	$	8.2	$	18.9	$	36.3	$	16.7

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

(2)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 (net of the associated Ginnie Mae MSR fair value adjustment) in connection with the Ginnie Mae EBO program with an aggregated UPB of $299.7 million, net of the associated MSR fair value adjustment.

(3)Activity for the nine months ended September 30,2023 includes a $10.9 million unrealized gain during the three months ended June 30, 2023 related to the revaluation of inactive HECM loan buyouts opportunistically acquired at a discount and securitized in a private placement transaction completed in June 2023. Also see Note 2 – Securitizations and Variable Interest Entities.

(4)Excludes gains of $2.0 million and $15.4 million during the three and nine months ended September 30, 2022, respectively, on inter-segment economic hedge derivatives presented within MSR valuation adjustments, net. No such gains or losses were recognized during the three and nine months ended September 30, 2023. 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.