XML 39 R29.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at June 30, 2024:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Mortgage loans held for sale |  | $ | — |  |  | $ | 1,729,007 |  |  | $ | — |  |  | $ | 1,729,007 |
Reverse mortgage loans held for investment |  | — |  |  | — |  |  | 376,182 |  |  | 376,182 |
Mortgage servicing rights |  | — |  |  | — |  |  | 1,292,662 |  |  | 1,292,662 |
Derivative assets |  |  |  |  |  |  |  |
Interest rate lock commitments |  | — |  |  | — |  |  | 18,172 |  |  | 18,172 |
Forward delivery commitments |  | — |  |  | 2,754 |  |  | — |  |  | 2,754 |
Notes receivable |  | — |  |  | — |  |  | 11,376 |  |  | 11,376 |
Total assets at fair value |  | $ | — |  |  | $ | 1,731,761 |  |  | $ | 1,698,392 |  |  | $ | 3,430,153 |
Liabilities: |  |  |  |  |  |  |  |
HMBS-related borrowings |  | $ | — |  |  | $ | — |  |  | $ | 358,101 |  |  | $ | 358,101 |
Derivative liabilities |  |  |  |  |  |  |  |
Forward delivery commitments and best efforts sales commitments |  | — |  |  | 4,666 |  |  | — |  |  | 4,666 |
Contingent liabilities due to acquisitions |  | — |  |  | — |  |  | 26,575 |  |  | 26,575 |
Total liabilities at fair value |  | $ | — |  |  | $ | 4,666 |  |  | $ | 384,676 |  |  | $ | 389,342 |
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Mortgage loans held for sale |  | $ | — |  |  | $ | 901,227 |  |  | $ | — |  |  | $ | 901,227 |
Reverse mortgage loans held for investment |  | — |  |  | — |  |  | 315,912 |  |  | 315,912 |
Mortgage servicing rights |  | — |  |  | — |  |  | 1,161,357 |  |  | 1,161,357 |
Derivative assets |  |  |  |  |  |  |  |
Interest rate lock commitments |  | — |  |  | — |  |  | 14,902 |  |  | 14,902 |
Forward delivery commitments |  | — |  |  | 693 |  |  | — |  |  | 693 |
Notes receivable |  | — |  |  | — |  |  | 10,627 |  |  | 10,627 |
Total assets at fair value |  | $ | — |  |  | $ | 901,920 |  |  | $ | 1,502,798 |  |  | $ | 2,404,718 |
Liabilities: |  |  |  |  |  |  |  |
HMBS-related borrowings |  | $ | — |  |  | $ | — |  |  | $ | 302,183 |  |  | $ | 302,183 |
Derivative liabilities |  |  |  |  |  |  |  |
Forward delivery commitments and best efforts sales commitments |  | — |  |  | 16,245 |  |  | — |  |  | 16,245 |
Contingent liabilities due to acquisitions |  | — |  |  | — |  |  | 8,720 |  |  | 8,720 |
Total liabilities at fair value |  | $ | — |  |  | $ | 16,245 |  |  | $ | 310,903 |  |  | $ | 327,148 |
Summary of Reconciliation of Level 3 Assets Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2024:
(in thousands) |  | Interest Rate Lock Commitments |  | Notes Receivable |  | Contingent Liabilities
Balance at March 31, 2024 |  | $ | 23,588 |  |  | $ | 11,006 |  |  | $ | 20,101 |
Net transfers and revaluation losses |  | (5,416) |  |  | — |  |  | — |
Additions |  | — |  |  | 159 |  |  | — |
Valuation adjustments |  | — |  |  | 211 |  |  | 6,474 |
Balance at June 30, 2024 |  | $ | 18,172 |  |  | $ | 11,376 |  |  | $ | 26,575 |
Balance at December 31, 2023 |  | $ | 14,902 |  |  | $ | 10,627 |  |  | $ | 8,720 |
Net transfers and revaluation losses |  | 3,270 |  |  | — |  |  | — |
Additions |  | — |  |  | 308 |  |  | 10,017 |
Valuation adjustments |  | — |  |  | 441 |  |  | 7,838 |
Balance at June 30, 2024 |  | $ | 18,172 |  |  | $ | 11,376 |  |  | $ | 26,575 |
The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2023:
(in thousands) |  | Interest Rate Lock Commitments |  | Notes Receivable |  | Contingent Liabilities
Balance at March 31, 2023 |  | $ | 12,206 |  |  | $ | 11,250 |  |  | $ | 2,218 |
Net transfers and revaluation losses |  | (6,593) |  |  | — |  |  | — |
Additions |  | — |  |  | — |  |  | 4,401 |
Valuation adjustments |  | — |  |  | (1,426) |  |  | 1,174 |
Balance at June 30, 2023 |  | $ | 5,613 |  |  | $ | 9,824 |  |  | $ | 7,793 |
Balance at December 31, 2022 |  | $ | 1,518 |  |  | $ | — |  |  | $ | 526 |
Net transfers and revaluation losses |  | 4,095 |  |  | — |  |  | — |
Additions |  | — |  |  | 11,250 |  |  | 6,103 |
Valuation adjustments |  | — |  |  | (1,426) |  |  | 1,164 |
Balance at June 30, 2023 |  | $ | 5,613 |  |  | $ | 9,824 |  |  | $ | 7,793 |
Summary of Reconciliation of Level 3 Liabilities Measured at Fair Value on Recurring Basis | The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2024:
(in thousands) |  | Interest Rate Lock Commitments |  | Notes Receivable |  | Contingent Liabilities
Balance at March 31, 2024 |  | $ | 23,588 |  |  | $ | 11,006 |  |  | $ | 20,101 |
Net transfers and revaluation losses |  | (5,416) |  |  | — |  |  | — |
Additions |  | — |  |  | 159 |  |  | — |
Valuation adjustments |  | — |  |  | 211 |  |  | 6,474 |
Balance at June 30, 2024 |  | $ | 18,172 |  |  | $ | 11,376 |  |  | $ | 26,575 |
Balance at December 31, 2023 |  | $ | 14,902 |  |  | $ | 10,627 |  |  | $ | 8,720 |
Net transfers and revaluation losses |  | 3,270 |  |  | — |  |  | — |
Additions |  | — |  |  | 308 |  |  | 10,017 |
Valuation adjustments |  | — |  |  | 441 |  |  | 7,838 |
Balance at June 30, 2024 |  | $ | 18,172 |  |  | $ | 11,376 |  |  | $ | 26,575 |
The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2023:
(in thousands) |  | Interest Rate Lock Commitments |  | Notes Receivable |  | Contingent Liabilities
Balance at March 31, 2023 |  | $ | 12,206 |  |  | $ | 11,250 |  |  | $ | 2,218 |
Net transfers and revaluation losses |  | (6,593) |  |  | — |  |  | — |
Additions |  | — |  |  | — |  |  | 4,401 |
Valuation adjustments |  | — |  |  | (1,426) |  |  | 1,174 |
Balance at June 30, 2023 |  | $ | 5,613 |  |  | $ | 9,824 |  |  | $ | 7,793 |
Balance at December 31, 2022 |  | $ | 1,518 |  |  | $ | — |  |  | $ | 526 |
Net transfers and revaluation losses |  | 4,095 |  |  | — |  |  | — |
Additions |  | — |  |  | 11,250 |  |  | 6,103 |
Valuation adjustments |  | — |  |  | (1,426) |  |  | 1,164 |
Balance at June 30, 2023 |  | $ | 5,613 |  |  | $ | 9,824 |  |  | $ | 7,793 |
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at June 30, 2024:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Ginnie Mae loans subject to repurchase right |  | $ | — |  |  | $ | 568,176 |  |  | $ | — |  |  | $ | 568,176 |
Total assets at fair value |  | $ | — |  |  | $ | 568,176 |  |  | $ | — |  |  | $ | 568,176 |
Liabilities: |  |  |  |  |  |  |  |
Ginnie Mae loans subject to repurchase right |  | $ | — |  |  | $ | 574,707 |  |  | $ | — |  |  | $ | 574,707 |
Total liabilities at fair value |  | $ | — |  |  | $ | 574,707 |  |  | $ | — |  |  | $ | 574,707 |
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2023:
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |
Ginnie Mae loans subject to repurchase right |  | $ | — |  |  | $ | 699,622 |  |  | $ | — |  |  | $ | 699,622 |
Total assets at fair value |  | $ | — |  |  | $ | 699,622 |  |  | $ | — |  |  | $ | 699,622 |
Liabilities: |  |  |  |  |  |  |  |
Ginnie Mae loans subject to repurchase right |  | $ | — |  |  | $ | 700,120 |  |  | $ | — |  |  | $ | 700,120 |
Total liabilities at fair value |  | $ | — |  |  | $ | 700,120 |  |  | $ | — |  |  | $ | 700,120 |
Summary of Fair Value Option for Mortgage Loans Held for Sale | The following is the estimated fair value and UPB of assets and liabilities that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected as the Company believes fair value best reflects their expected future economic performance and to align with the Company’s business and risk management strategies.
(in thousands) |  | Fair Value |  | Principal Amount Due Upon Maturity |  | Difference
June 30, 2024 |  |  |  |  |  |
Assets: |  |  |  |  |  |
Mortgage loans held for sale(1) |  | $ | 1,729,007 |  |  | $ | 1,723,047 |  |  | $ | 5,960 |
Reverse mortgage loans held for investment(2) |  | 376,182 |  |  | 335,691 |  |  | 40,491 |
Notes receivable |  | 11,376 |  |  | 11,864 |  |  | (488) |
Liabilities: |  |  |  |  |  |
HMBS-related borrowings |  | $ | 358,101 |  |  | $ | 348,865 |  |  | $ | 9,236 |
_____________________________ (1)MLHS that were 90 days or more past due had a fair value of $5.6 million and UPB of $7.3 million. (2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.1 million and UPB of $3.0 million.
(in thousands) |  | Fair Value |  | Principal Amount Due Upon Maturity |  | Difference
December 31, 2023 |  |  |  |  |  |
Assets: |  |  |  |  |  |
Mortgage loans held for sale(1) |  | $ | 901,227 |  |  | $ | 892,816 |  |  | $ | 8,411 |
Reverse mortgage loans held for investment(2) |  | 315,912 |  |  | 290,907 |  |  | 25,005 |
Notes receivable |  | 10,627 |  |  | 11,556 |  |  | (929) |
Liabilities: |  |  |  |  |  |
HMBS-related borrowings |  | $ | 302,183 |  |  | $ | 293,542 |  |  | $ | 8,641 |
_____________________________ (1)MLHS that were 90 days or more past due had a fair value of $7.3 million and UPB of $9.9 million. (2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.4 million and UPB of $3.3 million.

X
- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_FairValueLiabilitiesMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about asset and liability measured at fair value under fair value option. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-30 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 28 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-28 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-31 Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 825 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-32 + Details
Name: | us-gaap_FairValueOptionQuantitativeDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration