Guild Holdings Company Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

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 September 30, 2024:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Mortgage loans held for sale	$	—	$	1,763,121	$	—	$	1,763,121
Reverse mortgage loans held for investment	—		—		409,144		409,144
Mortgage servicing rights	—		—		1,197,432		1,197,432
Derivative assets
Interest rate lock commitments	—		—		19,763		19,763
Forward delivery commitments	—		1,208		—		1,208
Notes receivable	—		—		11,177		11,177
Total assets at fair value	$	—	$	1,764,329	$	1,637,516	$	3,401,845
Liabilities:
HMBS-related borrowings	$	—	$	—	$	391,524	$	391,524
Derivative liabilities
Forward delivery commitments and best efforts sales commitments	—		7,423		—		7,423

Contingent liabilities due to acquisitions	—		—		29,331		29,331
Total liabilities at fair value	$	—	$	7,423	$	420,855	$	428,278

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 and nine months ended September 30, 2024:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities










Balance at June 30, 2024	$	18,172	$	11,376	$	26,575
Net transfers and revaluation losses	1,591		—		—
Payments	—		—		(27)
Additions	—		184		—
Valuation adjustments	—		(383)		2,783
Balance at September 30, 2024	$	19,763	$	11,177	$	29,331

Balance at December 31, 2023	$	14,902	$	10,627	$	8,720
Net transfers and revaluation losses	4,861		—		—
Payments	—		—		(27)
Additions	—		492		10,017
Valuation adjustments	—		58		10,621
Balance at September 30, 2024	$	19,763	$	11,177	$	29,331

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:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities










Balance at June 30, 2023	$	5,613	$	9,824	$	7,793
Net transfers and revaluation losses	6,606		—		—

Additions	—		5,156		—
Valuation adjustments	—		(171)		(554)
Balance at September 30, 2023	$	12,219	$	14,809	$	7,239

Balance at December 31, 2022	$	1,518	$	—	$	526
Net transfers and revaluation losses	10,701		—		—

Additions	—		16,406		6,103
Valuation adjustments	—		(1,597)		610
Balance at September 30, 2023	$	12,219	$	14,809	$	7,239

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 and nine months ended September 30, 2024:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities










Balance at June 30, 2024	$	18,172	$	11,376	$	26,575
Net transfers and revaluation losses	1,591		—		—
Payments	—		—		(27)
Additions	—		184		—
Valuation adjustments	—		(383)		2,783
Balance at September 30, 2024	$	19,763	$	11,177	$	29,331

Balance at December 31, 2023	$	14,902	$	10,627	$	8,720
Net transfers and revaluation losses	4,861		—		—
Payments	—		—		(27)
Additions	—		492		10,017
Valuation adjustments	—		58		10,621
Balance at September 30, 2024	$	19,763	$	11,177	$	29,331

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:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities










Balance at June 30, 2023	$	5,613	$	9,824	$	7,793
Net transfers and revaluation losses	6,606		—		—

Additions	—		5,156		—
Valuation adjustments	—		(171)		(554)
Balance at September 30, 2023	$	12,219	$	14,809	$	7,239

Balance at December 31, 2022	$	1,518	$	—	$	526
Net transfers and revaluation losses	10,701		—		—

Additions	—		16,406		6,103
Valuation adjustments	—		(1,597)		610
Balance at September 30, 2023	$	12,219	$	14,809	$	7,239

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 September 30, 2024:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Ginnie Mae loans subject to repurchase right	$	—	$	666,488	$	—	$	666,488
Total assets at fair value	$	—	$	666,488	$	—	$	666,488
Liabilities:
Ginnie Mae loans subject to repurchase right	$	—	$	676,644	$	—	$	676,644
Total liabilities at fair value	$	—	$	676,644	$	—	$	676,644

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
September 30, 2024
Assets:
Mortgage loans held for sale(1)	$	1,763,121	$	1,754,737	$	8,384
Reverse mortgage loans held for investment(2)	409,144		382,516		26,628
Notes receivable	11,177		12,048		(871)
Liabilities:
HMBS-related borrowings	$	391,524	$	383,496	$	8,028

_____________________________

(1)MLHS that were 90 days or more past due had a fair value of $6.8 million and UPB of $8.9 million.

(2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $3.0 million and UPB of $2.9 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.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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