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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.

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- 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).

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