Mortgage Loans Held for Sale

9 Months Ended

Sep. 30, 2022

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, 2022		December 31, 2021
Mortgage loans held for sale – UPB	$	1,670	$	4,257
Mark-to-market adjustment(1)	(89)		124
Total mortgage loans held for sale	$	1,581	$	4,381

(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 condensed 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	2022		2021
Balance - beginning of period	$	4,381	$	5,720
Loans sold	(30,648)		(73,822)
Mortgage loans originated and purchased, net of fees	25,120		67,507
Repurchase of loans out of Ginnie Mae securitizations	2,904		8,530
Net change in unrealized (loss) gain on retained loans held for sale	(177)		1
Net transfers of mortgage loans held for sale(1)	1		3
Balance - end of period	$	1,581	$	7,939

(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, 2022, the Company received proceeds of $30,440 on the sale of mortgage loans held for sale, resulting in a loss of $562. During the nine months ended September 30, 2021, the Company received proceeds of $74,968 on the sale of mortgage loans held for sale, resulting in a gain of $1,146.

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


	September 30, 2022				December 31, 2021
Mortgage Loans Held for Sale	UPB		Fair Value		UPB		Fair Value
Non-accrual(1)	$	108	$	93	$	104	$	94

(1)Non-accrual UPB includes $97 and $94 of UPB related to Ginnie Mae repurchased loans as of September 30, 2022 and December 31, 2021, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $52 and $16 as of September 30, 2022 and December 31, 2021, respectively.