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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments utilized by the Company primarily include interest rate lock commitments, forward sale contracts, mortgage-backed securities (“MBS”) put options, put options on treasuries, and interest rate swap futures. Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Refer to Note 1- Description of Business and Summary of Significant Accounting Policies and Note 2- Fair Value for further details on derivatives in the 2024 Form 10-K.

The following summarizes the Company’s outstanding derivative instruments:
Fair Value
NotionalBalance Sheet LocationAssetLiability
September 30, 2025:
Interest rate lock commitments $2,496,680 Derivative asset, at fair value$50,725 $— 
Interest rate lock commitments 690,374 Derivative liabilities, at fair value— 2,772 
Forward sale contracts 426,731 Derivative asset, at fair value666 — 
Forward sale contracts 1,426,848 Derivative liabilities, at fair value— 7,147 
Put options on treasuries — Derivative asset, at fair value— — 
Put options on treasuries 7,250 Derivative liabilities, at fair value— 2,166 
Interest rate swap futures 335 Derivative asset, at fair value3,191 — 
Interest rate swap futures — Derivative liabilities, at fair value— — 
Total derivative financial instruments$54,582 $12,085 
Fair Value
NotionalBalance Sheet LocationAssetLiability
December 31, 2024:
Interest rate lock commitments $1,424,965 Derivative asset, at fair value$27,739 $— 
Interest rate lock commitments 370,092 Derivative liabilities, at fair value— 2,187 
Forward sale contracts 2,070,542 Derivative asset, at fair value16,650 — 
Forward sale contracts 29,567 Derivative liabilities, at fair value— 896 
Put options on treasuries — Derivative asset, at fair value— — 
Put options on treasuries 2,878 Derivative liabilities, at fair value— 5,829 
Interest rate swap futures — Derivative asset, at fair value— — 
Interest rate swap futures 2,075 Derivative liabilities, at fair value— 16,148 
Total derivative financial instruments$44,389 $25,060 

Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss.

The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included:
Three Months Ended
September 30,		Nine Months Ended
September 30,
Derivative instrumentStatements of Operations Location2025202420252024
Interest rate lock commitments, netGain on origination and sale of loans, net$(6,411)$15,874 $22,401 $17,681 
Forward sale contractsGain on origination and sale of loans, net(22,323)(66,230)(50,398)(56,487)
Interest rate swap futuresGain on origination and sale of loans, net399 (1,621)(17,760)(9,096)
Put optionsGain on origination and sale of loans, net(2,621)(5,848)12,802 364 
Forward sale contractsChange in fair value of servicing rights, net7,088 12,240 11,396 (2,805)
Interest rate swap futuresChange in fair value of servicing rights, net2,852 20,526 9,836 (16,348)
Put optionsChange in fair value of servicing rights, net189 4,858 (1,863)(4,723)
Total realized and unrealized losses on derivative financial instruments
$(20,827)$(20,201)$(13,586)$(71,414)