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FAIR VALUE
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1 - Description of Business, Presentation and Summary of Significant Accounting Policies in the 2024 Form 10-K and below for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a 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.
September 30, 2025
Level 1Level 2Level 3Total
Fair value through net income:
Assets:
Loans held for sale$— $2,606,361 $— $2,606,361 
Loans held for investment
— 111,341 — 111,341 
Trading securities— 85,980 — 85,980 
Derivative assets:
Interest rate lock commitments— — 50,725 50,725 
Forward sale contracts— 666 — 666 
Interest rate swap futures3,191 — — 3,191 
Servicing rights— — 1,637,930 1,637,930 
Total assets at fair value$3,191 $2,804,348 $1,688,655 $4,496,194 
Liabilities:
Derivative liabilities:
Interest rate lock commitments$— $— $2,772 $2,772 
Forward sale contracts— 7,147 — 7,147 
Put options on treasuries2,166 — — 2,166 
Servicing rights— — 19,671 19,671 
Total liabilities at fair value$2,166 $7,147 $22,443 $31,756 
December 31, 2024
Level 1Level 2Level 3Total
Fair value through net income:
Assets:
Loans held for sale$— $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 futures16,148 — — 16,148 
Forward sale contracts— 896 — 896 
Put options on treasuries5,829 — — 5,829 
Servicing rights— — 18,151 18,151 
Total liabilities at fair value$21,977 $896 $20,338 $43,211 


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 September 30, 2025Nine Months Ended September 30, 2025
IRLCs, netServicing
Rights, net		IRLCs, netServicing
Rights, net
Balance at beginning of period$54,364 $1,616,854 $25,552 $1,615,510 
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions127,272 69,163 374,608 188,789 
Fallout
(25,267)— (68,337)— 
    Transfers of IRLC to LHFS
(108,416)— (283,870)— 
Valuation changes in servicing rights, net(1)
— (56,116)— (158,562)
Sales— (11,642)— (27,478)
Balance at end of period$47,953 $1,618,259 $47,953 $1,618,259 

(1)The change in unrealized gains or losses relating to servicing rights still held at September 30, 2025 amounted to a net loss of $23.5 million and a net gain of $31.9 million for the three and nine months ended September 30, 2025, respectively.

Three Months Ended September 30, 2024Nine Months Ended September 30, 2024
IRLCs, netServicing
Rights, net		IRLCs, netServicing
Rights, net
Balance at beginning of period$49,747 $1,566,463 $47,940 $1,985,718 
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions149,859 62,039 340,279 176,529 
Fallout
(29,560)— (70,218)— 
Transfers of IRLC to LHFS(104,425)— (252,380)— 
Valuation changes in servicing rights, net(1)
— (94,023)— (132,457)
Sales— (8,466)— (503,777)
Balance at end of period$65,621 $1,526,013 $65,621 $1,526,013 

(1)The change in unrealized gains or losses relating to servicing rights that were still held at September 30, 2024, amounted to a net loss of $62.8 million and a net gain of $33.6 million for the three and nine months ended September 30, 2024, respectively.

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:
September 30, 2025December 31, 2024
Unobservable InputRange of inputs
Weighted Average(1)
Range of inputs
Weighted Average(1)
IRLCs
  Pull-through rate6.9%-99.9%78.9%0.1%-99.9%75.2%
Servicing rights
  Discount rate(2)
3.7%-18.1%6.8%4.1%-17.5%6.5%
  Prepayment rate
5.8%-14.0%9.0%5.4%-16.7%8.1%
  Cost to service (per loan)$73-$132$99$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.

Financial Statement Items Measured at Fair Value on a Nonrecurring Basis

The Company did not have any material assets or liabilities that were recorded at fair value on a nonrecurring basis as of September 30, 2025 or December 31, 2024.

Financial Statement Items Measured at Amortized Cost

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:
September 30, 2025December 31, 2024
Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
Senior Notes$822,991 $819,289 $812,122 $779,872 
Other secured financings$89,825 $91,097 $97,767 $98,820 

Fair value of the Company’s Senior Notes is estimated using quoted market prices and classified as Level 2 in the fair value hierarchy. Fair value of the Company’s other secured financings is estimated using quoted market prices and classified as Level 2 in the fair value hierarchy.