Mortgage Loans Held for Sale

12 Months Ended

Dec. 31, 2021

Mortgage Loans Held for Sale [Abstract]

6. Mortgage Loans Held for Sale

Mortgage Loans Held for Sale

The Company maintains a strategy of originating and purchasing residential mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. The Company purchases closed loans through its correspondent channel and assists customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases through its Direct to Consumer channel. Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis.

Mortgage loans held for sale are recorded at fair value as set forth below:


	Year Ended December 31,
Mortgage Loans Held for Sale	2021		2020
Mortgage loans held for sale - UPB	$	4,257	$	5,438
Mark-to-market adjustment(1)	124		282
Total mortgage loans held for sale	$	4,381	$	5,720

(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations.

The following table sets forth the activities of mortgage loans held for sale:


	Year Ended December 31,
Mortgage Loans Held for Sale	2021		2020
Balance - beginning of year	$	5,720	$	4,077
Loans sold	(96,077)		(66,545)
Mortgage loans originated and purchased, net of fees	84,684		63,233
Repurchase of loans out of Ginnie Mae securitizations(1)	10,156		4,822
Net change in unrealized gain on retained loans held for sale	(107)		123
Net transfers of mortgage loans held for sale(2)	5		10
Balance - end of year	$	4,381	$	5,720

(1)The Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.

(2)Amount reflects transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.

For the years ended December 31, 2021 and 2020, the Company received proceeds of $97,515 and $67,894, respectively, on the sale of mortgage loans held for sale, resulting in gains of $1,438 and $1,349, respectively.

The Company accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. In the second half of 2021, the Company began accruing interest for loans in forbearance related to the CARES Act. Accrued interest is recorded as interest income in the consolidated statements of operations.

The total UPB of mortgage loans held for sale on non-accrual status was as follows:


	December 31, 2021				December 31, 2020
Mortgage Loans Held for Sale	UPB		Fair Value		UPB		Fair Value
Non-accrual(1)	$	104	$	94	$	64	$	54

(1)Non-accrual includes $94 and $44 of UPB related to Ginnie Mae repurchased loans as of December 31, 2021 and 2020, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $16 and $20 as of December 31, 2021 and 2020, respectively.