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FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2025

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.

						March 31, 2025
						Level 1						Level 2						Level 3						Total
Fair value through net income:
Assets:
Loans held for sale						$	—					$	2,765,417					$	—					$	2,765,417
Loans held for investment						—						114,447						—						114,447
Trading securities						—						87,355						—						87,355
Derivative assets:
Interest rate lock commitments						—						—						47,268						47,268
Forward sale contracts						—						908						—						908
Interest rate swap futures						1,586						—						—						1,586
Servicing rights						—						—						1,621,494						1,621,494
Total assets at fair value						$	1,586					$	2,968,127					$	1,668,762					$	4,638,475
Liabilities:
Derivative liabilities:
Interest rate lock commitments						$	—					$	—					$	1,297					$	1,297
Forward sale contracts						—						10,313						—						10,313
Put options on treasuries						1,843						—						—						1,843
Servicing rights						—						—						18,463						18,463
Total liabilities at fair value						$	1,843					$	10,313					$	19,760					$	31,916

						December 31, 2024
						Level 1						Level 2						Level 3						Total
Fair value through net income:
Assets:
Loans held for sale						$	—					$	2,603,735					$	—					$	2,603,735
Loans held for investment						—						116,627						—						116,627
Trading securities						—						87,466						—						87,466
Derivative assets:
Interest rate lock commitments						—						—						27,739						27,739
Forward sale contracts						—						16,650						—						16,650
Servicing rights						—						—						1,633,661						1,633,661
Total assets at fair value						$	—					$	2,824,478					$	1,661,400					$	4,485,878
Liabilities:
Derivative liabilities:
Interest rate lock commitments						$	—					$	—					$	2,187					$	2,187
Interest rate swap futures						16,148						—						—						16,148
Forward sale contracts						—						896						—						896
Put options on treasuries						5,829						—						—						5,829
Servicing rights						—						—						18,151						18,151
Total liabilities at fair value						$	21,977					$	896					$	20,338					$	43,211

Schedule of 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):

						Three Months Ended March 31, 2025
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	25,552					$	1,615,510
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						121,183						52,686
Fallout						(19,844)						—
Transfers of IRLC to LHFS						(80,920)						—
Valuation changes in servicing rights, net(1)						—						(59,803)
Sales						—						(5,362)
Balance at end of period						$	45,971					$	1,603,031

(1)The change in unrealized gains or losses relating to servicing rights still held at March 31, 2025 amounted to a net loss of $34.9 million for the three months ended March 31, 2025.

						Three Months Ended March 31, 2024
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	47,940					$	1,985,718
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						97,330						48,375
Fallout						(20,869)						—
Transfers of IRLC to LHFS						(74,238)						—
Valuation changes in servicing rights, net(1)						—						(7,816)
Sales						—						(56,113)
Balance at end of period						$	50,163					$	1,970,164

(1)The change in unrealized gains or losses relating to servicing rights that were still held at March 31, 2024, amounted to a net gain of $12.5 million for the three months ended March 31, 2024.

Schedule of 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):

						Three Months Ended March 31, 2025
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	25,552					$	1,615,510
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						121,183						52,686
Fallout						(19,844)						—
Transfers of IRLC to LHFS						(80,920)						—
Valuation changes in servicing rights, net(1)						—						(59,803)
Sales						—						(5,362)
Balance at end of period						$	45,971					$	1,603,031

(1)The change in unrealized gains or losses relating to servicing rights still held at March 31, 2025 amounted to a net loss of $34.9 million for the three months ended March 31, 2025.

						Three Months Ended March 31, 2024
						IRLCs, net						Servicing Rights, net
Balance at beginning of period						$	47,940					$	1,985,718
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions						97,330						48,375
Fallout						(20,869)						—
Transfers of IRLC to LHFS						(74,238)						—
Valuation changes in servicing rights, net(1)						—						(7,816)
Sales						—						(56,113)
Balance at end of period						$	50,163					$	1,970,164

(1)The change in unrealized gains or losses relating to servicing rights that were still held at March 31, 2024, amounted to a net gain of $12.5 million for the three months ended March 31, 2024.

Schedule of 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:

						March 31, 2025																		December 31, 2024
Unobservable Input						Range of inputs												Weighted Average(1)						Range of inputs												Weighted Average(1)
IRLCs
Pull-through rate						0.1%			-			99.9%						74.8%						0.1%			-			99.9%						75.2%
Servicing rights
Discount rate(2)						4.1%			-			17.9%						6.5%						4.1%			-			17.5%						6.5%
Prepayment rate						5.6%			-			14.5%						8.8%						5.4%			-			16.7%						8.1%
Cost to service (per loan)						$73			-			$127						$97						$73			-			$129						$96

(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.

Schedule of 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, loans eligible for repurchase, 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:

						March 31, 2025												December 31, 2024
						Carrying Amount						Estimated Fair Value						Carrying Amount						Estimated Fair Value
Senior Notes						$	815,626					$	729,828					$	812,122					$	779,872
Other secured financings						$	95,046					$	96,435					$	97,767					$	98,820

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