Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.24.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Summary 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 December 31, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 100  $ —  $ —  $ 100 
Notes receivable —  —  10,627  10,627 
Derivative assets
Forward delivery commitments —  693  —  693 
Interest rate lock commitments —  —  14,902  14,902 
Mortgage loans held for sale —  901,227  —  901,227 
Reverse mortgage loans held for investment —  —  315,912  315,912 
Mortgage servicing rights —  —  1,161,357  1,161,357 
Investment in warrants —  —  961  961 
Total assets at fair value $ 100  $ 901,920  $ 1,503,759  $ 2,405,779 
Liabilities:
Derivative liabilities
Forward commitments and best efforts sales commitments $ —  $ 16,245  $ —  $ 16,245 
HMBS-related borrowings $ —  $ —  $ 302,183  $ 302,183 
Contingent liabilities due to acquisitions —  —  8,720  8,720 
Total liabilities at fair value $ —  $ 16,245  $ 310,903  $ 327,148 
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 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 
Summary of Reconciliation of Level 3 Assets 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, excluding those deemed immaterial, for the years ended:
  Notes Receivable Interest Rate Lock Commitments Contingent
Liabilities
Balance at December 31, 2021 $ —  $ 22,119  $ 59,500 
Net transfers and revaluation losses —  (20,601) —
Payments —  —  (14,425)
Additions —  —  526 
Valuation adjustments —  —  (45,075)
Balance at December 31, 2022 $ —  $ 1,518  $ 526 
Net transfers and revaluation losses —  13,384  —
Payments (5,000) —  (388)
Additions 16,556  —  6,103 
Valuation adjustments (929) —  2,479 
Balance at December 31, 2023 $ 10,627  $ 14,902  $ 8,720 
Summary of Reconciliation of Level 3 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, excluding those deemed immaterial, for the years ended:
  Notes Receivable Interest Rate Lock Commitments Contingent
Liabilities
Balance at December 31, 2021 $ —  $ 22,119  $ 59,500 
Net transfers and revaluation losses —  (20,601) —
Payments —  —  (14,425)
Additions —  —  526 
Valuation adjustments —  —  (45,075)
Balance at December 31, 2022 $ —  $ 1,518  $ 526 
Net transfers and revaluation losses —  13,384  —
Payments (5,000) —  (388)
Additions 16,556  —  6,103 
Valuation adjustments (929) —  2,479 
Balance at December 31, 2023 $ 10,627  $ 14,902  $ 8,720 
Summary 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 December 31, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 699,622  $ —  $ 699,622 
Total assets at fair value $ —  $ 699,622  $ —  $ 699,622 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 700,120  $ —  $ 700,120 
Total liabilities at fair value $ —  $ 700,120  $ —  $ 700,120 
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 
Summary of Fair Value Option for Mortgage Loans Held For Sale The following is the estimated fair value and UPB of assets and liabilities that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected as the Company believes fair value best reflects their expected future economic performance and to align with the Company’s business and risk management strategies.
Balance at December 31, 2023 Fair Value Principal
Amount Due
Upon
Maturity		 Difference
Assets:
Mortgage loans held for sale(1)
$ 901,227  $ 892,816  $ 8,411 
Reverse mortgage loans held for investment(2)
315,912  290,907  25,005 
Notes receivable 10,627  11,556  (929)
Liabilities:
HMBS-related borrowings $ 302,183  $ 293,542  $ 8,641 
Balance at December 31, 2022
Assets:
Mortgage loans held for sale(1)
$ 845,775  $ 868,833  $ (23,058)
_____________________________
(1)At December 31, 2023 MLHS that were 90 days or more past due had a fair value of $7.3 million and UPB of $9.9 million. At December 31, 2022 MLHS that were 90 days or more past due had a fair value of $6.3 million and UPB of $8.8 million.
(2)At December 31, 2023 reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.4 million and UPB of $3.3 million.