Mortgage Loans at Fair Value

3 Months Ended

Mar. 31, 2024

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, 2024		December 31, 2023
Mortgage loans, unpaid principal balance	$	7,244,605	$	5,380,119
Premiums paid on mortgage loans	65,761		55,112
Fair value adjustment	27,769		14,653
Mortgage loans at fair value	$	7,338,135	$	5,449,884