Mortgage Banking Activities, Net

3 Months Ended

Mar. 31, 2022

The following table presents the components of Mortgage banking activities, net, recorded in our consolidated statements of income for the three months ended March 31, 2022 and 2021.

Table 19.1 – Mortgage Banking Activities


	Three Months Ended March 31,
(In Thousands)	2022		2021
Residential Mortgage Banking Activities, Net
Changes in fair value of:
Residential loans, at fair value (1)	$	(68,822)	$	(29,273)
Trading securities (2)	2,786		721
Risk management derivatives (3)	73,354		88,964
Other income (expense), net (4)	617		1,023
Total residential mortgage banking activities, net	7,935		61,435

Business Purpose Mortgage Banking Activities, Net:
Changes in fair value of:
Single-family rental loans, at fair value (1)	(25,193)		10,248
Risk management derivatives (3)	17,033		3,858
Bridge loans, at fair value	2,135		1,044
Other income, net (5)	14,405		6,022
Total business purpose mortgage banking activities, net	8,380		21,172
Mortgage Banking Activities, Net	$	16,315	$	82,607

(1)For residential loans, includes changes in fair value for associated loan purchase and forward sale commitments. For single-family rental loans, includes changes in fair value for associated interest rate lock commitments.

(2)Represents fair value changes on trading securities that are being used 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 repurchase expense, presented net.

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