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FAIR VALUE (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial Statement Items Measured at Fair Value on a Recurring Basis

The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated.     

						December 31, 2023
						Level 1						Level 2						Level 3						Total
Fair value through net income:
Assets:
Loans held for sale						$	—					$	2,132,880					$	—					$	2,132,880
Trading securities						—						92,901						—						92,901
Derivative assets:
Interest rate lock commitments						—						—						49,112						49,112
Forward sale contracts						—						16,610						—						16,610
Interest rate swap futures						26,476						—						—						26,476
MBS put options						—						1,376						—						1,376
Servicing rights						—						—						1,999,763						1,999,763
Total assets at fair value						$	26,476					$	2,243,767					$	2,048,875					$	4,319,118
Liabilities:
Derivative liabilities:
Interest rate lock commitments						$	—					$	—					$	1,172					$	1,172
Forward sale contracts						—						83,728						—						83,728
Put options on treasuries						62						—						—						62
Servicing rights						—						—						14,045						14,045
Total liabilities at fair value						$	62					$	83,728					$	15,217					$	99,007

						December 31, 2022
						Level 1						Level 2						Level 3						Total
Fair value through net income:
Assets:
Loans held for sale						$	—					$	2,373,427					$	—					$	2,373,427
Trading securities						—						94,243						—						94,243
Derivative assets:
Interest rate lock commitments						—						—						29,374						29,374
Forward sale contracts						—						6,676						—						6,676
MBS put options						—						3,361						—						3,361
Servicing rights						—						—						2,037,447						2,037,447
Total assets at fair value						$	—					$	2,477,707					$	2,066,821					$	4,544,528
Liabilities:
Derivative liabilities:
Interest rate lock commitments						$	—					$	—					$	5,784					$	5,784
Interest rate swap futures						7,395						—						—						7,395
Forward sale contracts						—						43,482						—						43,482
Put options on treasuries						10,831						—						—						10,831
Servicing rights						—						—						12,311						12,311
Total liabilities at fair value						$	18,226					$	43,482					$	18,095					$	79,803

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

						Year Ended December 31, 2023
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	23,590					$	2,025,136
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						387,498						277,387
Transfers of IRLC to LHFS						(275,451)						—
Other factors						(87,697)						—
Change in fair value of servicing rights, net(1)						—						(136,118)
Sales						—						(180,687)
Balance at end of period						$	47,940					$	1,985,718

(1)The change in unrealized gains or losses relating to servicing rights still held at December 31, 2023 amounted to a net loss of $61.1 million for the year ended December 31, 2023.

						Year Ended December 31, 2022
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	180,620					$	1,999,402
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						380,443						647,716
Transfers of IRLC to LHFS						(377,071)						—
Other factors						(160,402)						—
Change in fair value of servicing rights, net(1)						—						143,169
Sales						—						(765,151)
Balance at end of period						$	23,590					$	2,025,136

(1)The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2022, amounted to a net gain of $710.3 million for the year ended December 31, 2022.

			Year Ended December 31, 2021
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	647,045					$	1,124,302
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						2,169,847						1,610,596
Transfers of IRLC to LHFS						(1,969,541)						—
Other factors						(666,731)						—
Change in fair value of servicing rights, net(1)						—						(351,767)
Sales						—						(383,729)
Balance at end of period						$	180,620					$	1,999,402

(1)The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2021, amounted to a net gain of $1.3 billion for the year ended December 31, 2021.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

						Year Ended December 31, 2023
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	23,590					$	2,025,136
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						387,498						277,387
Transfers of IRLC to LHFS						(275,451)						—
Other factors						(87,697)						—
Change in fair value of servicing rights, net(1)						—						(136,118)
Sales						—						(180,687)
Balance at end of period						$	47,940					$	1,985,718

(1)The change in unrealized gains or losses relating to servicing rights still held at December 31, 2023 amounted to a net loss of $61.1 million for the year ended December 31, 2023.

						Year Ended December 31, 2022
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	180,620					$	1,999,402
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						380,443						647,716
Transfers of IRLC to LHFS						(377,071)						—
Other factors						(160,402)						—
Change in fair value of servicing rights, net(1)						—						143,169
Sales						—						(765,151)
Balance at end of period						$	23,590					$	2,025,136

(1)The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2022, amounted to a net gain of $710.3 million for the year ended December 31, 2022.

			Year Ended December 31, 2021
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	647,045					$	1,124,302
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						2,169,847						1,610,596
Transfers of IRLC to LHFS						(1,969,541)						—
Other factors						(666,731)						—
Change in fair value of servicing rights, net(1)						—						(351,767)
Sales						—						(383,729)
Balance at end of period						$	180,620					$	1,999,402

(1)The change in unrealized gains or losses relating to servicing rights that were still held at December 31, 2021, amounted to a net gain of $1.3 billion for the year ended December 31, 2021.

Fair Value Measurement Inputs and Valuation Techniques

The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis:

						December 31, 2023																		December 31, 2022
Unobservable Input						Range of inputs												Weighted Average(1)						Range of inputs												Weighted Average(1)
IRLCs
Pull-through rate						2.7%			-			99.9%						76.7%						8.4%			-			99.9%						75.3%
Servicing rights
Discount rate(2)						4.6%			-			16.8%						6.4%						5.0%			-			16.1%						6.5%
Prepayment rate(2)						5.6%			-			22.4%						8.1%						5.8%			-			17.6%						7.2%
Cost to service (per loan)						$72			-			$126						$90						$63			-			$138						$87

(1)Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights.

(2)The Company estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Company’s prepayment model, and then discounts these cash flows at risk-adjusted rates.

Fair Value, Assets Not Measured on Recurring and Nonrecurring Basis

The following table presents the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements that are not recorded at fair value on a recurring or nonrecurring basis. The table excludes cash and cash equivalents, restricted cash, warehouse and other lines of credit, and secured debt facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value:

						December 31, 2023												December 31, 2022
						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Senior Notes						$	989,318					$	886,492					$	991,822					$	645,495

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