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 June 30, 2025 and December 31, 2024:


(in thousands)	June 30, 2025		December 31, 2024
Unpaid principal balance	$	9,660	$	2,297
Mark-to-market adjustments	228		37
Total mortgage loans held-for-sale	$	9,888	$	2,334

The following table presents a reconciliation of the Company’s mortgage loans held-for-sale for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Balance at beginning of period	$	8,406	$	279	$	2,334	$	332
Originations and purchases of mortgage loans	48,669		50		77,539		51
Sales and principal collections	(47,260)		(51)		(70,175)		(101)
Unrealized gains (losses) on mortgage loans	73		—		190		(4)
Balance at end of period	$	9,888	$	278	$	9,888	$	278

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 June 30, 2025 and December 31, 2024, the Company had pledged mortgage loans held-for-sale with a carrying value of $9.5 million and $2.1 million, respectively, as collateral for its warehouse line of credit. See Note 13 - Financing.