Loans Held for Sale - Fair Value

3 Months Ended

Mar. 31, 2024


Note 4 – Loans Held for Sale - Fair Value

The following table presents the estimated fair value of Loans held for sale for which we elected the fair value option:



	March 31, 2024		December 31, 2023












Unpaid principal balance	$	1,065.2	$	678.8
Premium (discount)	(34.7)		(2.4)
Unrealized gain (loss)	(4.8)		(2.2)
Total fair value	$	1,025.7	$	674.2

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


	March 31, 2024		December 31, 2023
GSE loans	$	408.9	$	219.3
Government- Forward loans	339.0		254.0
Forward loans repurchased from Ginnie Mae guaranteed securitization (1)	19.7		19.1
Reverse loans (2)	250.9		166.6
Other residential mortgage loans	7.2		15.2
Total	$	1,025.7	$	674.2

(1)Pursuant to Ginnie Mae servicing guidelines.

(2)Includes government-insured 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. As of March 31, 2024 and December 31, 2023, the balance includes $241.5 million and $119.5 million, respectively, of loans pledged as collateral for the Asset-Backed Notes issued by OLIT. Also see Note 2 – Securitizations and Variable Interest Entities and Note 13 – Borrowings.

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


	Three Months Ended March 31,
	2024		2023
Beginning balance	$	674.2	$	617.8
Originations and purchases	2,988.9		2,552.4
Proceeds from sales	(2,581.0)		(2,296.1)
Principal collections	(23.1)		(15.4)
Transfers from (to):
Loans held for investment, at fair value	1.0		1.6

Receivables, net	(10.6)		1.1
REO (Other assets)	(3.0)		(4.2)
Advances (capitalization upon Ginnie Mae modifications)	2.1		2.0

Fair value gain (loss) on loans held for sale, at fair value (1)	(27.5)		(17.2)
Other	4.7		3.1
Ending balance	$	1,025.7	$	845.2

(1)Excludes retained MSR upon securitization. See below table of gain (loss) on loans held for sale, net.

The following table presents the components of Gain (loss) of loans held for sale at fair value, net:


Gain (Loss) on Loans Held for Sale, Net	Three Months Ended March 31,
	2024		2023

MSRs retained on transfers of forward mortgage loans	$	34.7	$	31.1

Gain (loss) on sale of forward mortgage loans (1)	(24.2)		(22.1)
Gain (loss) on sale of repurchased Ginnie Mae loans (1)	(0.8)		0.2
Change in fair value of loans held for sale	(2.5)		4.8
Gain on loans held for sale, at fair value	7.2		13.9
Gain (loss) on economic hedge derivative instruments	4.6		(16.4)
Change in fair value of IRLCs	(0.6)		5.7
Provision for representation and warranty obligations	(0.3)		(0.3)



	$	10.9	$	2.8

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