Mortgage Loans at Fair Value (Tables)

3 Months Ended

Mar. 31, 2022

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)	March 31, 2022		December 31, 2021
Mortgage loans, unpaid principal balance	$	5,263,246	$	17,194,330
Premiums paid on mortgage loans	47,047		238,963
Fair value adjustment	(102,126)		40,031
Mortgage loans at fair value	$	5,208,167	$	17,473,324