Mortgage Loans Held for Sale

9 Months Ended

Sep. 30, 2020

Mortgage Loans Held for Sale and Investment [Abstract]

5. Mortgage Loans Held for Sale

Mortgage loans held for sale are recorded at fair value as set forth below:


Mortgage Loans Held for Sale	September 30, 2020		December 31, 2019
Mortgage loans held for sale – UPB	$	3,642	$	3,949
Mark-to-market adjustment(1)	175		128
Total mortgage loans held for sale	$	3,817	$	4,077

(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in net gain on mortgage loans held for sale in the consolidated statements of operations.

The following table sets forth the activities of mortgage loans held for sale:


	Nine Months Ended September 30,
Mortgage Loans Held for Sale	2020		2019
Balance - beginning of period	$	4,077	$	1,631
Loans sold	(42,185)		(27,413)
Mortgage loans originated and purchased, net of fees	38,709		28,209
Repurchase of loans out of Ginnie Mae securitizations	3,173		1,823
Net change in unrealized gain (loss) of loans held for sale	36		2
Net transfers of mortgage loans held for sale(1)	7		15
Balance - end of period	$	3,817	$	4,267

(1)Amount reflects transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.

During the nine months ended September 30, 2020 and 2019, the Company received proceeds of $43,040 and $27,778, respectively, on the sale of mortgage loans held for sale, resulting in gains of $855 and $365, respectively.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:


	September 30, 2020				December 31, 2019
Mortgage Loans Held for Sale	UPB		Fair Value		UPB		Fair Value
Non-accrual(1)	$	49	$	39	$	29	$	22

(1)Non-accrual UPB includes $37 and $25 of UPB related to Ginnie Mae repurchased loans as of September 30, 2020 and December 31, 2019, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $20 and $21 as of September 30, 2020 and December 31, 2019, respectively.