| 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 (in thousands):
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September 30, 2023 |
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December 31, 2022 |
| Loans held for sale - UPB: |
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| Residential mortgage loans |
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$ |
28,051
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$ |
15,529 |
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| Commercial mortgage loans |
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3,772
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173,112 |
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| Fair value adjustments |
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(7,867) |
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(14,657) |
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| Total loans held for sale, at fair value |
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$ |
23,956
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$ |
173,984 |
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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):
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September 30, 2023 |
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December 31, 2022 |
| Loans 90 days or more past due and on non-accrual status |
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| Fair value: |
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| Residential mortgage loans |
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$ |
5,611
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$ |
2,736 |
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| Commercial mortgage loans |
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—
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2,817 |
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| Total fair value |
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5,611
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5,553 |
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| Aggregate UPB: |
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| Residential mortgage loans |
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6,193
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2,136 |
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| Commercial mortgage loans |
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—
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3,405 |
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| Total aggregate UPB |
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6,193
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5,541 |
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| Difference |
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$ |
(582) |
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$ |
12 |
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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):
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For the three months ended September 30, 2023 |
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For the three months ended September 30, 2022 |
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For the nine months ended September 30, 2023 |
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For the nine months ended September 30, 2022 |
| Beginning balance |
$ |
53,500
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$ |
281,671 |
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$ |
173,984
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$ |
158,156 |
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| Originations/purchases/repurchases |
55,656
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248,520 |
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180,983
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1,095,290 |
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| Proceeds from sales |
(80,016) |
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(278,433) |
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(346,026) |
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(983,192) |
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| Net transfers related to loans held for sale |
—
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(1,281) |
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15,580
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(1,281) |
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| Net transfers related to discontinued operations |
—
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— |
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12,525
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(82) |
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| Loss on loans held for sale, net |
(6,710) |
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(5,101) |
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(23,056) |
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(12,478) |
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| Net fair value gain (loss) on loans held for sale |
1,526
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75 |
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9,966
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(10,962) |
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| Ending balance |
$ |
23,956
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$ |
245,451 |
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$ |
23,956
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$ |
245,451 |
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As of September 30, 2023 and December 31, 2022, there were $3.4 million and $186.0 million in UPB, respectively, in loans held for sale, at fair value, pledged as collateral for financing lines of credit.
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