Reverse Mortgage Interests, Net (Tables)

6 Months Ended

Jun. 30, 2020

Reverse Mortgage Interests [Abstract]

Reverse mortgage interests, net, consists of the following:


Reverse Mortgage Interests, Net	June 30, 2020		December 31, 2019
Participating interests in HECM mortgage-backed securities (“HMBS”)	$	3,873	$	4,282
Other interests securitized	825		994
Unsecuritized interests	1,138		1,117
Purchase discount, net	(127)		(114)
Total reverse mortgage interests, net	$	5,709	$	6,279

Unsecuritized interests in reverse mortgages consist of the following:


Unsecuritized interests	June 30, 2020		December 31, 2019
Repurchased HECM loans (exceeds 98% MCA)	$	804	$	789
HECM related receivables⁽¹⁾	244		250
Funded borrower draws not yet securitized	53		64
Real estate owned (“REO”) related receivables	37		14
Total unsecuritized interests	$	1,138	$	1,117

⁽¹⁾HECM related receivables consist primarily of receivables from FNMA for corporate advances and service fees and claims receivables from the U.S. Department of Housing and Urban Development (“HUD”) on reverse mortgage interests.

The following table sets forth the activities of the purchase discounts, net, for reverse mortgage interests:


	Three Months Ended June 30,						Six Months Ended June 30,
Purchase discount, net, for reverse mortgage interests⁽¹⁾	2020		2019		2020		2019
Balance - beginning of period	$	(129)	$	(171)	$	(114)	$	(164)
Adjustments⁽²⁾	—		—		—		(24)
Utilization of purchase discounts⁽³⁾	9		12		19		40
Amortization, net of accretion	(7)		(4)		(32)		(15)
Balance - end of period	$	(127)	$	(163)	$	(127)	$	(163)

⁽¹⁾Net position as certain items are in a premium/(discount) position, based on the characteristics of underlying tranches of loans.

⁽²⁾Adjustments during the six months ended June 30, 2019 due to revised cost to service assumption utilized in the valuation of reverse mortgage assets and liabilities acquired from the Merger.

⁽³⁾Utilization of purchase discounts on liquidated loans, for which the remaining receivable was written-off.