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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Financial Statement Items Measured at Estimated Fair Value on a Recurring Basis

The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the three months ended March 31, 2022 or the year ended December 31, 2021.

			Level 1						Level 2						Level 3						Total
Balance at March 31, 2022
Assets:
Mortgage loans held for sale			$	—					$	8,506,382					$	2,178,762					$	10,685,144
IRLCs			—						—						213,210						213,210
MSRs			—						—						6,410,288						6,410,288
Forward commitments			—						667,908						—						667,908
Total assets			$	—					$	9,174,290					$	8,802,260					$	17,976,550
Liabilities:
Forward commitments			$	—					$	34,126					$	—					$	34,126
Total liabilities			$	—					$	34,126					$	—					$	34,126
Balance at December 31, 2021
Assets:
Mortgage loans held for sale			$	—					$	17,014,202					$	2,309,366					$	19,323,568
IRLCs			—						—						538,861						538,861
MSRs			—						—						5,385,613						5,385,613
Forward commitments			—						17,337						—						17,337
Total assets			$	—					$	17,031,539					$	8,233,840					$	25,265,379
Liabilities:
Forward commitments			$	—					$	19,911					$	—					$	19,911
Total liabilities			$	—					$	19,911					$	—					$	19,911

Schedule of Quantitative Information About Fair Value Measurements of Level 3 Financial Instruments

The following tables present the quantitative information about recurring Level 3 fair value financial instruments and the fair value measurements as of:

						March 31, 2022												December 31, 2021
Unobservable Input						Range						Weighted Average						Range						Weighted Average
Mortgage loans held for sale
Dealer pricing						89% - 101%						98		%				89% - 103%						99		%
IRLCs
Loan funding probability						0% - 100%						77		%				0% - 100%						78		%
MSRs
Discount rate						9.0% - 12.0%						9.5		%				9.0% - 12.0%						9.5		%
Conditional prepayment rate						6.5% - 15.0%						7.1		%				6.8% - 36.9%						8.7		%

Schedule of Reconciliation of Level 3 Assets

The table below presents a reconciliation of Level 3 assets measured at fair value on a recurring basis for the three months ended March 31, 2022 and 2021. Mortgage servicing rights are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 3, Mortgage Servicing Rights.

			Loans Held for Sale						IRLCs
Balance at December 31, 2021			$	2,309,366					$	538,861
Transfers in (1)			522,640						—
Transfers out/principal reductions (1)			(618,320)						—
Net transfers and revaluation losses			—						(325,651)
Total losses included in net income			(34,924)						—
Balance at March 31, 2022			$	2,178,762					$	213,210
Balance at December 31, 2020			$	579,666					$	1,897,194
Transfers in (1)			718,158						—
Transfers out/principal reductions (1)			(307,462)						—
Net transfers and revaluation losses			—						(1,131,979)
Total gains included in net income			472						—
Balance at March 31, 2021			$	990,834					$	765,215

(1)    Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold to third parties and loans paid in full.

Schedule of Fair Value Option for Mortgage Loans Held For Sale

The following is the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans held for sale that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for mortgage loans held for sale as the Company believes fair value best reflects their expected future economic performance:

			Fair Value						Principal Amount Due Upon Maturity						Difference (1)
Balance at March 31, 2022			$	10,685,144					$	10,798,888					$	(113,744)
Balance at December 31, 2021			$	19,323,568					$	19,018,552					$	305,016

(1)    Represents the amount of gains (losses) included in Gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option.

Schedule of Liabilities not Recorded at Fair Value on a Recurring or Nonrecurring Basis

The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes cash and cash equivalents, restricted cash, warehouse borrowings, and line of credit borrowing facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value:

			March 31, 2022												December 31, 2021
			Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Senior Notes, due 10/15/2026			$	1,139,718					$	1,058,874					$	1,139,146					$	1,151,932
Senior Notes, due 1/15/2028			61,230						58,854						61,197						64,251
Senior Notes, due 3/1/2029			743,063						686,115						742,812						752,805
Senior Notes, due 3/1/2031			1,237,943						1,126,338						1,237,605						1,273,675
Senior Notes, due 10/15/2033			841,907						748,034						841,731						857,718
Total Senior Notes, net			$	4,023,861					$	3,678,215					$	4,022,491					$	4,100,381

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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