Mortgage Banking Activities

12 Months Ended

Dec. 31, 2022

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Mortgage Banking Activities

Mortgage Banking Activities

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income (loss) for the years ended December 31, 2022, 2021, and 2020.

Table 20.1 – Mortgage Banking Activities

	Years Ended December 31,
(In Thousands)	2022		2021		2020
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	(131,675)	$	83,733	$	41,284
Trading securities (2)	4,249		(352)		(4,535)
Risk management derivatives (3)	100,713		38,352		(26,376)
Other income (expense), net (4)	5,431		5,418		(6,652)
Total residential mortgage banking activities, net	(21,282)		127,151		3,721
Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
BPL term loans, at fair value (1)	(91,690)		63,872		82,510
BPL bridge loans, at fair value	2,679		8,253		(4,998)
Risk management derivatives (3)	56,731		2,708		(21,403)
Other income, net (5)	39,903		33,760		18,642
Total business purpose mortgage banking activities, net	7,623		108,593		74,751
Mortgage Banking Activities, Net	$	(13,659)	$	235,744	$	78,472

(1)For residential loans, includes changes in fair value for associated loan purchase commitments. For business purpose loans, includes changes in fair value for associated interest rate lock commitments.

(2)Represents fair value changes on trading securities that are being used along as hedges to manage the mark-to-market risks associated with our residential mortgage banking operations.

(3)Represents market valuation changes of derivatives that were used to manage risks associated with our mortgage banking operations.

(4)Amounts in this line item include other fee income from loan acquisitions, and provisions for repurchases, presented net.

(5)Amounts in this line item include other fee income from loan originations.