Quarterly report pursuant to Section 13 or 15(d)

Loans Held for Sale, at Fair Value

v3.22.1
Loans Held for Sale, at Fair Value
3 Months Ended
Mar. 31, 2022
Mortgage Loans Held for Sale At Fair Value [Abstract]  
Loans Held for Sale, at Fair Value
9. Loans Held for Sale, at Fair Value
Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands):
 
    
March 31,
2022
    
December 31,
2021
 
Loans held for sale - UPB:
                 
Residential mortgage and home improvement loans
  
$
1,499,525
 
   $ 1,859,788  
Commercial mortgage loans
  
 
211,516
 
     145,463  
Fair value adjustments
  
 
(1,684
     47,127  
    
 
 
    
 
 
 
Total loans held for sale, at fair value
  
$
1,709,357
 
   $ 2,052,378  
    
 
 
    
 
 
 
The table below shows the total amount of loans held for sale that were greater than 90 days past due and on
non-accrual
status (in thousands):
 
    
March 31,
2022
    
December 31,
2021
 
Loans 90 days or more past due and on
non-accrual
status
                 
Fair value:
                 
Residential mortgage and home improvement loans
  
$
3,495      $ 3,195  
Commercial mortgage loans
     2,549        3,163  
    
 
 
    
 
 
 
Total fair value
  
 
6,044
 
     6,358  
    
 
 
    
 
 
 
Aggregate UPB:
                 
Residential mortgage loans
     3,993        3,753  
Commercial mortgage loans
     2,676        3,323  
    
 
 
    
 
 
 
Total aggregate UPB
  
 
6,669
 
     7,076  
    
 
 
    
 
 
 
Difference
  
$
(625
   $ (718
    
 
 
    
 
 
 
The Company originates or purchases and sells loans in the secondary mortgage market without recourse for credit losses. However, the Company at times maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans.
 
The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands):
 
    
For the three
months ended
March 31,
2022
    
January 1, 2021

to

March 31, 2021
 
    
Successor
    
Predecessor
 
Beginning balance
  
$
2,052,378
 
   $ 2,222,811  
Originations/purchases/repurchases
  
 
5,488,887
 
     8,569,575  
Proceeds from sales
  
 
(5,872,779
     (8,878,131
Loans acquired through business combinations
  
 
—  
 
     35,226  
Net transfers from loans held for investment
  
 
2,905
 
     —    
Gain on loans held for sale, net
  
 
44,872
 
     188,564  
Net fair value gains on loans held for sale
  
 
(6,906
     2,316  
    
 
 
    
 
 
 
Ending balance
  
$
1,709,357
 
   $ 2,140,361  
    
 
 
    
 
 
 
As of March 31, 2022 and December 31, 2021, there were $1.7 million and $2.0 million, respectively, in loans held for sale, at fair value pledged as collateral for financing lines of credit.