Residential Loans at Fair Value

Residential Loans Held for Investment

Residential loans held for investment and carried at fair value include reverse loans, mortgage loans in Non-Residual Trusts and charged-off loans. The Company purchased and originated reverse loans in the amount of $428.9 million and $323.1 million during the three months ended March 31, 2015 and 2014, respectively.

Residential Loans Held for Sale

The Company sells substantially all of its originated or purchased mortgage loans into the secondary market for securitization or to private investors as whole loans. The Company typically retains the right to service these loans. Refer to Note 4 for additional information regarding these sales of residential loans that are held for sale.

A reconciliation of the changes in residential loans held for sale to the amounts presented on the consolidated statements of cash flows is presented in the following table (in thousands):



	For the Three Months Ended March 31,
	2015			2014
Balance at beginning of the period	$	1,124,615		$	1,015,607
Purchases and originations of loans held for sale	5,633,936			3,583,548
Proceeds from sales of and payments on loans held for sale ⁽¹⁾	(5,693,335		)	(4,059,701		)
Realized gains on sales of loans ⁽²⁾	61,379			86,833
Change in unrealized gains (losses) on loans held for sale ⁽²⁾	1,389			(4,176		)
Interest income ⁽²⁾	11,728			8,345
Transfers from loans held for investment ⁽³⁾	16,690			—
Other	(215		)	—
Balance at end of the period	$	1,156,187		$	630,456

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(1)	Excludes realized gains and losses on freestanding derivatives.


(2)	Amount is a component of net gains on sales of loans on the consolidated statements of comprehensive income (loss). Refer to Note 5 for additional information.


(3)	Represents a transfer of reverse loans from held for investment to held for sale. These loans were sold during the three months ended March 31, 2015.