Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

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FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31, 2024:
(in thousands)
 Level 1 Level 2 Level 3 Total
Assets:
Mortgage loans held for sale $ —  $ 1,126,159  $ —  $ 1,126,159 
Reverse mortgage loans held for investment —  —  348,076  348,076 
Mortgage servicing rights —  —  1,216,483  1,216,483 
Derivative assets
Interest rate lock commitments —  —  23,588  23,588 
Forward delivery commitments —  142  —  142 
Notes receivable —  —  11,006  11,006 
Total assets at fair value $ —  $ 1,126,301  $ 1,599,153  $ 2,725,454 
Liabilities:
HMBS-related borrowings $ —  $ —  $ 326,804  $ 326,804 
Derivative liabilities
Forward delivery commitments and best efforts sales commitments
 —  3,918  —  3,918 
Contingent liabilities due to acquisitions —  —  20,101  20,101 
Total liabilities at fair value $ —  $ 3,918  $ 346,905  $ 350,823 
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2023:
(in thousands)
 Level 1 Level 2 Level 3 Total
Assets:
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 
Derivative assets
Interest rate lock commitments —  —  14,902  14,902 
Forward delivery commitments —  693  —  693 
Notes receivable —  —  10,627  10,627 
Total assets at fair value $ —  $ 901,920  $ 1,502,798  $ 2,404,718 
Liabilities:
HMBS-related borrowings $ —  $ —  $ 302,183  $ 302,183 
Derivative liabilities
Forward delivery commitments and best efforts sales commitments
 —  16,245  —  16,245 
Contingent liabilities due to acquisitions —  —  8,720  8,720 
Total liabilities at fair value $ —  $ 16,245  $ 310,903  $ 327,148 
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 for the three months ended March 31, 2024:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable
Contingent Liabilities
Balance at December 31, 2023 $ 14,902  $ 10,627  $ 8,720 
Net transfers and revaluation losses 8,686  —  — 
Additions —  149  10,017 
Valuation adjustments —  230  1,364 
Balance at March 31, 2024 $ 23,588  $ 11,006  $ 20,101 
The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2023:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable
Contingent Liabilities
Balance at December 31, 2022 $ 1,518  $ —  $ 526 
Net transfers and revaluation gains
 10,688  —  — 
Additions —  11,250  1,702 
Valuation adjustments —  —  (10)
Balance at March 31, 2023
 $ 12,206  $ 11,250  $ 2,218 
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 for the three months ended March 31, 2024:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable
Contingent Liabilities
Balance at December 31, 2023 $ 14,902  $ 10,627  $ 8,720 
Net transfers and revaluation losses 8,686  —  — 
Additions —  149  10,017 
Valuation adjustments —  230  1,364 
Balance at March 31, 2024 $ 23,588  $ 11,006  $ 20,101 
The table below presents a reconciliation of certain Level Three assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2023:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable
Contingent Liabilities
Balance at December 31, 2022 $ 1,518  $ —  $ 526 
Net transfers and revaluation gains
 10,688  —  — 
Additions —  11,250  1,702 
Valuation adjustments —  —  (10)
Balance at March 31, 2023
 $ 12,206  $ 11,250  $ 2,218 
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 March 31, 2024:
(in thousands)
 Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 653,978  $ —  $ 653,978 
Total assets at fair value $ —  $ 653,978  $ —  $ 653,978 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 658,018  $ —  $ 658,018 
Total liabilities at fair value $ —  $ 658,018  $ —  $ 658,018 
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2023:
(in thousands)
 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 
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.
(in thousands)
 Fair Value Principal
Amount Due
Upon
Maturity		 Difference
March 31, 2024
Assets:
Mortgage loans held for sale(1)
$ 1,126,159  $ 1,125,664  $ 495 
Reverse mortgage loans held for investment(2)
348,076  312,481  35,595 
Notes receivable 11,006  11,705  (699)
Liabilities:
HMBS-related borrowings $ 326,804  $ 315,555  $ 11,249 
_____________________________
(1)MLHS that were 90 days or more past due had a fair value of $7.8 million and UPB of $10.7 million.
(2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $6.4 million and UPB of $5.9 million.
(in thousands)
 Fair Value Principal
Amount Due
Upon
Maturity		 Difference
December 31, 2023
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 
_____________________________
(1)MLHS that were 90 days or more past due had a fair value of $7.3 million and UPB of $9.9 million.
(2)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.