Quarterly report pursuant to Section 13 or 15(d)

Loans Held for Sale, at Fair Value

v3.23.1
Loans Held for Sale, at Fair Value
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Loans Held for Sale At Fair Value
11. Loans Held for Sale, at Fair Value
Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands):
March 31, 2023 December 31, 2022
Loans held for sale - UPB:
Residential mortgage and home improvement loans $ 67,794  $ 15,529 
Commercial mortgage loans 19,747  173,112 
Fair value adjustments (10,047) (14,657)
Total loans held for sale, at fair value $ 77,494  $ 173,984 

The table below shows the total amount of loans held for sale that were greater than 90 days past due and on non-accrual status (in thousands):
March 31, 2023 December 31, 2022
Loans 90 days or more past due and on non-accrual status
Fair value:
Residential mortgage and home improvement loans $ 5,984  $ 5,049 
Commercial mortgage loans 993  2,817 
Total fair value 6,977  7,866 
Aggregate UPB:
Residential mortgage loans 6,535  5,427 
Commercial mortgage loans 1,185  3,405 
Total aggregate UPB 7,720  8,832 
Difference $ (743) $ (966)

The Company originates or purchases and sells loans in the secondary mortgage market without recourse for credit losses. However, the Company at times maintains continuing involvement with the loans in the form of servicing arrangements and the liability under representations and warranties it makes to purchasers and insurers of the loans.
The table below shows a reconciliation of the changes in loans held for sale for the respective periods presented below (in thousands):
For the three months ended March 31, 2023 For the three months ended March 31, 2022
Beginning balance $ 173,984  $ 158,156 
Originations/purchases/repurchases 79,286  430,806 
Proceeds from sales (200,456) (368,656)
Net transfers from loans held for investment 15,580  — 
Net transfers from discontinued operations 12,526  — 
Gain (loss) on loans held for sale, net (12,387) 5,534 
Net fair value gain (loss) on loans held for sale 8,961  (7,372)
Ending balance $ 77,494  $ 218,468 

As of March 31, 2023 and December 31, 2022, there were $19.2 million and $172.5 million, respectively, in loans held for sale, at fair value, pledged as collateral for financing lines of credit.