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Derivatives
 6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives rk accounts for its derivatives at fair value and recognizes all derivatives as either assets or liabilities on the accompanying unaudited condensed consolidated balance sheets. In its normal course of business, Newmark enters into commitments to extend credit for mortgage loans at a specific rate (rate lock commitments) and commitments to deliver these loans to third-party investors at a fixed price (forward sale contracts). In addition, Newmark has entered into the Nasdaq Forwards (see Note 1 — “Organization and Basis of Presentation”) that are accounted for as derivatives.
    
The fair value of derivative contracts, computed in accordance with Newmark’s netting policy, is set forth below (in thousands):
 
As of June 30, 2020
 
As of December 31, 2019
Derivative contract
Assets
 
Liabilities
 
Notional
Amounts(1)
 
Assets
 
Liabilities
 
Notional
Amounts(1)
Rate lock commitments
$
50,170

  
$
1,114

 
$
390,213

 
$
32,035

 
$
12,124

 
$
1,396,827

Nasdaq Forwards
24,730

 
—

 
267,480

 
26,502

 
—

 
267,480

Forward sale contracts
2,325

 
50,617

 
1,454,484

 
14,389

 
13,537

 
1,606,943

Total
$
77,225

 
$
51,731

 
$
2,112,177

 
$
72,926

 
$
25,661

 
$
3,271,250

(1) 
Notional amounts represent the sum of gross long and short derivative contracts, an indication of the volume of Newmark’s derivative activity, and do not represent anticipated losses.

The change in fair value of rate lock commitments and forward sale contracts related to mortgage loans are reported as part of “Gains from mortgage banking activities/originations, net” on the accompanying unaudited condensed consolidated statements of operations. The change in fair value of rate lock commitments are disclosed net of $0.5 million and $0.2 million of income for the three months ended June 30, 2020 and 2019, respectively, and $0.9 million and $1.9 million of expenses for the six months ended June 30, 2020 and 2019, respectively. The changes in fair value of rate lock commitments are reported as part of “Compensation and employee benefits” on the accompanying unaudited condensed consolidated statements of operations.

Gains and losses on derivative contracts which are included on the unaudited condensed consolidated statements of operations were as follows (in thousands):
 
Location of gain (loss) recognized in income for derivatives
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2020
 
2019
 
2020
 
2019
Derivatives not designed as
hedging instruments:
 
 
 

 
 

 
 
 
 
Nasdaq Forwards
Other income (loss), net
 
$
(22,945
)
 
$
(15,638
)
 
$
(1,772
)
 
$
(28,967
)
Rate lock commitments
Gains from mortgage banking
   activities/originations, net
 
(10,208
)
 
14,292

 
49,955

 
21,379

Rate lock commitments
Compensation and employee benefits
 
512

 
211

 
(899
)
 
(1,856
)
Forward sale contracts
Gains (loss) from mortgage banking
   activities/originations, net
 
29,388

 
(20,784
)
 
(48,292
)
 
(24,416
)
Total
 
 
$
(3,253
)
 
$
(21,919
)
 
$
(1,008
)
 
$
(33,860
)
 

Derivative assets and derivative liabilities are included in “Other current assets”, “Other assets” and the “Accounts payable, accrued expenses and other liabilities”, on the accompanying unaudited condensed consolidated balance sheets.