Mortgage Loans Held for Sale

12 Months Ended

Dec. 31, 2022

Mortgage Loans Held for Sale [Abstract]

6. Mortgage Loans Held for Sale

Mortgage Loans Held for Sale

The Company maintains a strategy of originating and purchasing residential mortgage loan products primarily for the purpose of selling to GSEs or other third-party investors in the secondary market on a servicing-retained basis. The Company purchases closed loans through its correspondent channel and assists customers currently in the Company’s servicing portfolio with refinancing of loans or new home purchases through its direct-to-consumer channel. Generally, all newly originated mortgage loans held for sale are securitized and transferred to GSEs or delivered to third-party purchasers shortly after origination on a servicing-retained basis.

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


	Year Ended December 31,
Mortgage Loans Held for Sale	2022		2021
Mortgage loans held for sale - UPB	$	921	$	4,257
Mark-to-market adjustment(1)	(28)		124
Total mortgage loans held for sale	$	893	$	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 “revenues - 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:


	Year Ended December 31,
Mortgage Loans Held for Sale	2022		2021
Balance - beginning of year	$	4,381	$	5,720
Loans sold	(34,731)		(96,077)
Mortgage loans originated and purchased, net of fees	28,309		84,684
Repurchase of loans out of Ginnie Mae securitizations(1)	3,067		10,156
Net change in unrealized (loss) on retained loans held for sale	(132)		(107)
Net transfers of mortgage loans held for sale(2)	(1)		5
Balance - end of year	$	893	$	4,381

(1)The Company has the right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.

(2)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.

For the years ended December 31, 2022 and 2021, the Company received proceeds of $34,464 and $97,454, respectively, on the sale of mortgage loans held for sale, resulting in loss of $267 and gain of $1,377, respectively.

The Company accrues interest income as earned and places loans on non-accrual status after any portion of principal or interest has been delinquent for more than 90 days. Accrued interest is recorded as “interest income” in the consolidated statements of operations.

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


	December 31, 2022				December 31, 2021
Mortgage Loans Held for Sale	UPB		Fair Value		UPB		Fair Value
Non-accrual(1)	$	102	$	87	$	104	$	94

(1)Non-accrual includes $90 and $94 of UPB related to Ginnie Mae repurchased loans as of December 31, 2022 and 2021, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $65 and $16 as of December 31, 2022 and 2021, respectively.