Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.23.3
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule 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 September 30, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 89  $ —  $ —  $ 89 
Notes receivable —  —  14,809  14,809 
Derivative
Forward delivery commitments and best efforts sales commitments —  12,182  —  12,182 
Interest rate lock commitments —  —  12,219  12,219 
Mortgage loans held for sale —  932,771  —  932,771 
Reverse mortgage loans held for investment —  —  81,457  81,457 
Mortgage servicing rights —  —  1,258,313  1,258,313 
Investment in warrants —  —  961  961 
Total assets at fair value $ 89  $ 944,953  $ 1,367,759  $ 2,312,801 
Liabilities:
HMBS-related borrowings $ —  $ —  $ 71,278  $ 71,278 
Contingent liabilities due to acquisitions —  —  7,239  7,239 
Total liabilities at fair value $ —  $ —  $ 78,517  $ 78,517 
    
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 96  $ —  $ —  $ 96 
Derivative
Forward delivery commitments —  1,602  —  1,602 
Interest rate lock commitments —  —  1,518  1,518 
Mortgage loans held for sale —  845,775  —  845,775 
Mortgage servicing rights —  —  1,139,539  1,139,539 
Investment in warrants —  —  961  961 
Total assets at fair value $ 96  $ 847,377  $ 1,142,018  $ 1,989,491 
Liabilities:
Derivative
Forward delivery commitments and best efforts sales commitments $ —  $ 5,173  $ —  $ 5,173 
Contingent liabilities due to acquisitions —  —  526  526 
Total liabilities at fair value $ —  $ 5,173  $ 526  $ 5,699 
Schedule of Reconciliation of Level Three Assets and 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 nine months ended September 30, 2023 and 2022:
  IRLCs Contingent
Liabilities
Notes Receivable
Balance at June 30, 2023 $ 5,613  $ 7,793  $ 9,824 
Net transfers and revaluation gains
 6,606  —  — 
Additions —  —  5,156 
Valuation adjustments —  (554) (171)
Balance at September 30, 2023 $ 12,219  $ 7,239  $ 14,809 
Balance at December 31, 2022 $ 1,518  $ 526  $ — 
Net transfers and revaluation gains 10,701  —  — 
Additions —  6,103  16,406 
Valuation adjustments —  610  (1,597)
Balance at September 30, 2023 $ 12,219  $ 7,239  $ 14,809 
Balance at June 30, 2022 $ 14,600  $ 1,557  $ — 
Net transfers and revaluation losses (38,177) —  — 
Payments —  (1,884) — 
Valuation adjustments —  327 
Balance at September 30, 2022 $ (23,577) $ —  $ — 
Balance at December 31, 2021 $ 22,119  $ 59,500  $ — 
Net transfers and revaluation losses (45,696) —  — 
Payments —  (14,425) — 
Valuation adjustments —  (45,075)
Balance at September 30, 2022 $ (23,577) $ —  $ — 
Schedule 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 September 30, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 639,023  $ —  $ 639,023 
Total assets at fair value $ —  $ 639,023  $ —  $ 639,023 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 639,370  $ —  $ 639,370 
Total liabilities at fair value $ —  $ 639,370  $ —  $ 639,370 
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 650,179  $ —  $ 650,179 
Total assets at fair value $ —  $ 650,179  $ —  $ 650,179 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 650,179  $ —  $ 650,179 
Total liabilities at fair value $ —  $ 650,179  $ —  $ 650,179 
Schedule of Fair Value Option
The following is the estimated fair value and UPB of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance:
Fair Value Principal
Amount Due
Upon
Maturity
Difference (1)
Balance at September 30, 2023 $ 932,771  $ 959,523  $ (26,752)
Balance at December 31, 2022 $ 845,775  $ 868,833  $ (23,058)
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(1)Represents the amount of losses included in loan origination fees and gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option.