Liability for Losses Under Representations and Warranties

12 Months Ended

Dec. 31, 2021

Liability for Losses Under Representations and Warranties

Liability for Losses Under Representations and Warranties

Note 14—Liability for Losses Under Representations and Warranties

Following is a summary of the Company’s liability for losses under representations and warranties:

	Year ended December 31,
	2021		2020		2019
	(in thousands)
Balance at beginning of year	$	32,688	$	21,446	$	21,155
Provision for losses:
Resulting from sales of loans		31,590		21,035		8,377
Reduction in liability due to change in estimate		(16,037)		(8,667)		(7,877)
Losses incurred, net		(4,720)		(1,126)		(209)
Balance at end of year	$	43,521	$	32,688	$	21,446
Unpaid principal balance of loans subject to representations and warranties at end of year	$	257,369,777	$	210,222,447