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Fair Value Measurements | 6 Months Ended
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Mar. 31, 2021
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2021 and September 30, 2020. Changes in the fair value of the Level 3 assets during the six months ended March 31, 2021 and 2020 were not material.
|  |  | Fair Value at March 31, 2021
| Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  |  | (In millions)
Debt securities collateralized by residential real estate | Other assets |  | $ | — |  |  | $ | — |  |  | $ | 3.9 |  |  | $ | 3.9 |
Mortgage loans held for sale (1) | Mortgage loans held for sale |  | — |  |  | 1,727.0 |  |  | 18.5 |  |  | 1,745.5 |
Mortgage servicing rights (2) | Other assets |  | — |  |  | — |  |  | 6.4 |  |  | 6.4 |
Derivatives not designated as hedging instruments (3): |  |  |  |  |  |  |  |  |
Interest rate lock commitments (4) | Other assets/other liabilities |  | — |  |  | (17.3) |  |  | — |  |  | (17.3) |
Forward sales of mortgage-backed securities | Other assets |  | — |  |  | 87.8 |  |  | — |  |  | 87.8 |
|  |  | Fair Value at September 30, 2020
| Balance Sheet Location |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  |  | (In millions)
Debt securities collateralized by residential real estate | Other assets |  | $ | — |  |  | $ | — |  |  | $ | 3.9 |  |  | $ | 3.9 |
Mortgage loans held for sale (1) | Mortgage loans held for sale |  | — |  |  | 1,503.2 |  |  | 15.1 |  |  | 1,518.3 |
Mortgage servicing rights (2) | Other assets |  | — |  |  | — |  |  | 17.1 |  |  | 17.1 |
Derivatives not designated as hedging instruments (3): |  |  |  |  |  |  |  |  |
Interest rate lock commitments | Other assets |  | — |  |  | 31.3 |  |  | — |  |  | 31.3 |
Forward sales of mortgage-backed securities | Other liabilities |  | — |  |  | (16.2) |  |  | — |  |  | (16.2) |
___________________ (1)The Company typically elects the fair value option upon origination for mortgage loans held for sale. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale valued using Level 3 inputs at March 31, 2021 and September 30, 2020 included $18.5 million and $15.1 million, respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit. (2)Although the majority of the Company’s mortgage loans are sold on a servicing-released basis, when the servicing rights are retained, the Company records them at fair value using third-party valuations. The key assumptions used in the valuation, which are generally unobservable inputs, are mortgage prepayment rates, discount rates and delinquency rates, which were 10%, 11% and 6%, respectively, at March 31, 2021 and 13%, 11% and 5%, respectively, at September 30, 2020. (3)Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in revenues in the consolidated statements of operations. The net fair value change for the three and six months ended March 31, 2021 and 2020 recognized in revenues in the consolidated statements of operations was not significant. (4)The fair value of interest rate lock commitments (IRLCs) at March 31, 2021 reflects $26.8 million of servicing release premiums in other assets and a change in fair value of $44.1 million in other liabilities. The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at March 31, 2021 and September 30, 2020:
|  |  | Fair Value at March 31, 2021 |  | Fair Value at September 30, 2020
| Balance Sheet Location |  | Level 2 |  | Level 3 |  | Level 2 |  | Level 3
|  |  | (In millions)
Mortgage loans held for sale (1) (2) | Mortgage loans held for sale |  | $ | 1.0 |  |  | $ | 1.9 |  |  | $ | 1.5 |  |  | $ | 2.2 |
Other mortgage loans (1) (3) | Other assets |  | 2.4 |  |  | 1.9 |  |  | 0.6 |  |  | 2.0 |
___________________ (1)The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment in the respective period and were held at the end of the period. (2)These mortgage loans have some degree of impairment affecting their marketability and are valued at the lower of carrying value or fair value. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3). (3)The fair values of other mortgage loans were determined based on the value of the underlying collateral. For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at March 31, 2021 and September 30, 2020:
| Carrying Value |  | Fair Value at March 31, 2021
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In millions)
Cash and cash equivalents (1) | $ | 2,205.2 |  |  | $ | 2,205.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,205.2 |
Restricted cash (1) | 26.7 |  |  | 26.7 |  |  | — |  |  | — |  |  | 26.7 |
Notes payable (2) (3) | 4,472.3 |  |  | — |  |  | 3,345.8 |  |  | 1,295.5 |  |  | 4,641.3 |
| Carrying Value |  | Fair Value at September 30, 2020
|  | Level 1 |  | Level 2 |  | Level 3 |  | Total
| (In millions)
Cash and cash equivalents (1) | $ | 3,018.5 |  |  | $ | 3,018.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,018.5 |
Restricted cash (1) | 21.6 |  |  | 21.6 |  |  | — |  |  | — |  |  | 21.6 |
Notes payable (2) (3) | 4,283.3 |  |  | — |  |  | 3,285.5 |  |  | 1,203.7 |  |  | 4,489.2 |
___________________ (1)The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy. (2)The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy. (3)The fair values of other secured notes and borrowings on the revolving credit facilities and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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