Quarterly report [Sections 13 or 15(d)]

Mortgage Loans Held-for-Sale, at Fair Value

v3.26.1
Mortgage Loans Held-for-Sale, at Fair Value
 3 Months Ended
Mar. 31, 2026
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, 2026 and December 31, 2025:
(in thousands) March 31,
2026		 December 31,
2025
Unpaid principal balance $ 18,391  $ 13,336 
Mark-to-market adjustments 145  294 
Total mortgage loans held-for-sale $ 18,536  $ 13,630 

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
(in thousands) 2026 2025
Balance at beginning of period $ 13,630  $ 2,334 
Originations and purchases of mortgage loans
 92,318  28,870 
Sales and principal collections
 (87,263) (22,915)
Unrealized (losses) gains on mortgage loans
 (149) 117 
Balance at end of period $ 18,536  $ 8,406 

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 utilizes repurchase agreements and warehouse lines of credit to finance its mortgage loans held-for-sale. At March 31, 2026 and December 31, 2025, the Company had pledged mortgage loans held-for-sale with a carrying value of $18.2 million and $13.4 million, respectively, as collateral for its repurchase agreements and warehouse line of credit. See Note 12 - Financing.