Mortgage Loans at Fair Value (Tables)

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Summary of Reconciliation of Changes in Mortgage Loans at Fair Value

The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the condensed consolidated statements of operations.

(In thousands)	September 30, 2021		December 31, 2020
Mortgage loans, unpaid principal balance	$	11,568,222	$	7,620,014
Premiums paid on mortgage loans	153,628		101,949
Fair value adjustment	14,792		194,552
Mortgage loans at fair value	$	11,736,642	$	7,916,515