Quarterly report pursuant to Section 13 or 15(d)

Mortgage Loans Held for Sale

v3.20.2
Mortgage Loans Held for Sale
 9 Months Ended
Sep. 30, 2020
Mortgage Loans Held For Sale [Abstract]  
Mortgage Loans Held for Sale

7. Mortgage Loans Held for Sale

The Company sells substantially all of its originated mortgage loans into the secondary market. The Company may retain the right to service some of these loans upon sale through ownership of servicing rights. A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the Condensed Consolidated Statements of Cash Flows is as follows for the three and nine months ended September 30, 2020 and 2019:

 

 

 

For the three months ended

September 30,

 

 

 

2020

 

 

2019

 

Balance at the beginning of period

 

$

1,982,521

 

 

$

1,333,733

 

Disbursements of MLHS

 

 

10,041,907

 

 

 

7,129,890

 

Proceeds from sales of MLHS

 

 

(10,233,141

)

 

 

(6,959,125

)

Gain on sale of mortgage loans excluding fair value

   of other financial instruments, net

 

 

438,871

 

 

 

209,630

 

Increase in fair value of mortgage loans held for sale

 

 

8,992

 

 

 

(129

)

Balance at the end of period

 

$

2,239,150

 

 

$

1,713,999

 

 

 

 

For the nine months ended

September 30,

 

 

 

2020

 

 

2019

 

Balance at the beginning of year

 

$

1,504,842

 

 

$

966,171

 

Disbursements of MLHS

 

 

24,657,750

 

 

 

15,696,586

 

Proceeds from sales of MLHS

 

 

(24,873,813

)

 

 

(15,425,424

)

Gain on sale of mortgage loans excluding fair value

   of other financial instruments, net

 

 

897,467

 

 

 

467,573

 

Increase in fair value of mortgage loans held for sale

 

 

52,904

 

 

 

9,093

 

Balance at the end of period

 

$

2,239,150

 

 

$

1,713,999

 

 

At September 30, 2020, mortgage loans held for sale included unpaid principal balances of the underlying loans of $2.2 billion and had a fair value of $2.2 billion. At December 31, 2019, mortgage loans held for sale included unpaid principal balances of the underlying loans of $1.5 billion and had a fair value of $1.5 billion.