Quarterly report [Sections 13 or 15(d)]

Mortgage Loans Held-for-Sale, at Fair Value

v3.25.1
Mortgage Loans Held-for-Sale, at Fair Value
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Mortgage Loans Held-for-Sale, at Fair Value Mortgage Loans Held-for-Sale, at Fair Value
The Company originates residential mortgage loans for the purpose of selling to the GSEs or other third-party investors in the secondary market on a servicing-retained basis, typically within 60 days of origination. The Company also holds a small amount of mortgage loans purchased from the collateral underlying its MSR. Mortgage loans held-for-sale are recorded at fair value as a result of a fair value option election. The following table presents the carrying value of Company’s mortgage loans held-for-sale as of March 31, 2025 and December 31, 2024:
(in thousands) March 31,
2025		 December 31, 2024
Unpaid principal balance $ 8,252  $ 2,297 
Mark-to-market adjustments 154  37 
Total mortgage loans held-for-sale $ 8,406  $ 2,334 

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the three months ended March 31, 2025 and 2024:
Three Months Ended
March 31,
(in thousands) 2025 2024
Balance at beginning of period $ 2,334  $ 332 
Originations and purchases of mortgage loans
 28,870  1 
Sales and principal collections
 (22,915) (50)
Unrealized gains (losses) on mortgage loans 117  (4)
Balance at end of period $ 8,406  $ 279 

The Company is subject to credit risk associated with its originated mortgage loans during the period of time prior to the sale of these loans. The Company considers credit risk associated with these loans to be minimal as it holds the loans for a short period of time and the market for these loans continues to be highly liquid.
The Company has one warehouse facility to finance its mortgage loans held-for-sale. At March 31, 2025 and December 31, 2024, the Company had pledged mortgage loans held-for-sale with a carrying value of $8.1 million and $2.1 million, respectively, as collateral for this warehouse facility. See Note 15 - Warehouse Facilities.