Annual report pursuant to Section 13 and 15(d)

Loans Held for Sale, at Fair Value

v3.22.0.1
Loans Held for Sale, at Fair Value
 12 Months Ended
Dec. 31, 2021
Mortgage Loans Held for Sale At Fair Value [Abstract]  
Loans Held for Sale, at Fair Value
10. Loans Held for Sale, at Fair Value
Loans held for sale, at fair value, consisted of the following for the dates indicated (in thousands):
                 
    
December 31, 2021
     
December 31, 2020
  
    
Successor
     
Predecessor
  
Loans held for sale—UPB:
       
 
         
Residential mortgage and home improvement loans
   
$
1,859,788
 
    $ 2,000,795  
Commercial mortgage loans
   
 
145,463
 
      140,693  
Fair value adjustments
   
 
47,127
 
      81,323  
    
 
 
     
 
 
  
Total loans held for sale, at fair value
   
$
2,052,378
 
    $ 2,222,811  
    
 
 
     
 
 
  
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):
                 
    
December 31, 2021
     
December 31, 2020
  
    
Successor
     
Predecessor
  
Loans 90 days or more past due and on
non-accrual
status Fair value:
       
 
         
Residential mortgage and home improvement loans
   
$
3,195
 
    $ 10,628  
Commercial mortgage loans
   
 
3,163
 
      5,051  
    
 
 
     
 
 
  
Total fair value
   
 
6,358
 
      15,679  
    
 
 
     
 
 
  
Aggregate UPB:
                  
Residential mortgage loans
   
 
3,753
 
      13,236  
Commercial mortgage loans
   
 
3,323
 
      5,317  
    
 
 
     
 
 
  
Total aggregate UPB
   
 
7,076
 
      18,553  
    
 
 
     
 
 
  
Difference
   
$
(718
) 
    $ (2,874 ) 
    
 
 
     
 
 
  
 
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):
                         
    
April 1, 2021

to

December 31, 2021
     
January 1, 2021

to

March 31, 2021
    
For the year
ended
December 31, 2020
  
    
Successor
     
Predecessor
  
Beginning balance   
$
2,140,361
 
   
$
 2,222,811
 
   $ 1,251,574  
Originations/purchases/repurchases   
 
21,843,640
 
   
 
 8,569,575
 
     29,407,723  
Proceeds from sales   
 
(22,438,540
 )   
 
 (8,878,131
) 
     (29,628,177 ) 
Loans acquired through business combinations
   
 
—
 
   
 
 35,226
 
     —  
Net transfers from loans held for investment
   
 
8,828
 
   
 
 —
 
     183,578  
Gain on loans held for sale, net
   
 
497,557
 
   
 
 188,564
 
     1,009,105  
Net fair value gains on loans held for sale
   
 
532
 
   
 
 2,316
 
     (992 ) 
    
 
 
     
 
 
 
  
 
 
  
Ending balance
   
$
2,052,378
 
   
$
 2,140,361
 
   $ 2,222,811  
    
 
 
     
 
 
    
 
 
  
As of December 31, 2021 (Successor), there were $1,976.1 million in loans held for sale, at fair value pledged as collateral for financing lines of credit.