XML 40 R9.htm IDEA: XBRL DOCUMENT v3.20.1
Mortgage Loans Held-for-Sale
12 Months Ended
Dec. 31, 2019
Mortgage Loans Held-for-Sale  
Mortgage Loans Held-for-Sale

Note 2.—Mortgage Loans Held-for-Sale

A summary of the unpaid principal balance (UPB) of mortgage loans held-for-sale by type is presented below:

 

 

 

 

 

 

 

 

 

 

December 31, 

 

December 31, 

 

 

 

2019

 

2018

 

Government (1)

    

$

51,019

    

$

39,522

 

Conventional (2)

 

 

436,040

 

 

53,148

 

Non-qualified mortgages (NonQM)

 

 

274,834

 

 

256,491

 

Fair value adjustment (3)

 

 

20,250

 

 

4,440

 

Total mortgage loans held-for-sale

 

$

782,143

 

$

353,601

 


(1)

Includes all government-insured loans including Federal Housing Administration (FHA), Veterans Affairs (VA) and United States Department of Agriculture (USDA).

(2)

Includes loans eligible for sale to Federal National Mortgage Association (Fannie Mae or FNMA) and Federal home Loan Mortgage Corporation (Freddie Mac or FHLMC).

(3)

Changes in fair value are included in gain on sale of loans, net on the accompanying consolidated statements of operations and comprehensive loss.

 

As of December 31, 2019, the Company had $4.5 million in UPB of mortgage loans held-for-sale that were in nonaccrual status as the loans were 90 days or more delinquent.  The carrying value of these nonaccrual loans as of December 31, 2019 were $4.2 million.  As of December 31, 2018, there were $2.3 million in UPB of mortgage loans held -for-sale that were in nonaccrual status as the loans were 90 days or more delinquent. The carrying value of these nonaccrual loans as of December 31, 2018 were $1.8 million. 

Gain on sale of loans, net in the consolidated statements of operations and comprehensive loss is comprised of the following for the years ended December 31, 2019 and 2018:

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

December 31, 

 

 

2019

 

2018

Gain on sale of mortgage loans

    

$

111,787

    

$

102,899

Premium from servicing retained loan sales

 

 

2,491

 

 

24,879

Unrealized gains (losses) from derivative financial instruments

 

 

4,472

 

 

(2,025)

Realized (losses) gains from derivative financial instruments

 

 

(5,627)

 

 

11,878

Mark to market gain (loss) on LHFS

 

 

15,810

 

 

(14,762)

Direct origination expenses, net

 

 

(24,616)

 

 

(51,045)

Provision for repurchases

 

 

(5,487)

 

 

(5,074)

Total gain on sale of loans, net

 

$

98,830

 

$

66,750