Annual report [Section 13 and 15(d), not S-K Item 405]

FAIR VALUE MEASUREMENTS (Tables)

v3.25.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 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 December 31, 2024:
(in thousands)
 Level 1 Level 2 Level 3 Total
Assets:
Mortgage loans held for sale $ —  $ 1,523,447  $ —  $ 1,523,447 
Reverse mortgage loans held for investment —  —  451,704  451,704 
Mortgage servicing rights —  —  1,343,829  1,343,829 
Derivative assets
Interest rate lock commitments —  —  7,964  7,964 
Forward delivery commitments —  9,074  —  9,074 
Notes receivable —  —  11,894  11,894 
Total assets at fair value $ —  $ 1,532,521  $ 1,815,391  $ 3,347,912 
Liabilities:
HMBS-related borrowings $ —  $ —  $ 425,979  $ 425,979 
Derivative liabilities
Forward delivery commitments and best efforts sales commitments
 —  2,487  —  2,487 
Contingent liabilities due to acquisitions —  —  27,983  27,983 
Total liabilities at fair value $ —  $ 2,487  $ 453,962  $ 456,449 
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 years ended December 31, 2024 and 2023:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable Contingent
Liabilities
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 $ 14,902  $ 10,627  $ 8,720 
Net transfers and revaluation losses (6,938) —  — 
Payments —  —  (244)
Additions —  681  10,017 
Valuation adjustments —  586  9,490 
Balance at December 31, 2024 $ 7,964  $ 11,894  $ 27,983 
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 years ended December 31, 2024 and 2023:
(in thousands)
 Interest Rate Lock Commitments Notes Receivable Contingent
Liabilities
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 $ 14,902  $ 10,627  $ 8,720 
Net transfers and revaluation losses (6,938) —  — 
Payments —  —  (244)
Additions —  681  10,017 
Valuation adjustments —  586  9,490 
Balance at December 31, 2024 $ 7,964  $ 11,894  $ 27,983 
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, 2024:
(in thousands)
 Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 807,283  $ —  $ 807,283 
Total assets at fair value $ —  $ 807,283  $ —  $ 807,283 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 817,271  $ —  $ 817,271 
Total liabilities at fair value $ —  $ 817,271  $ —  $ 817,271 
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
Unpaid Principal Balance
 Difference
December 31, 2024
Assets:
Mortgage loans held for sale(1)
$ 1,523,447  $ 1,529,592  $ (6,145)
Reverse mortgage loans held for investment(2)
451,704  420,807  30,897 
Notes receivable 11,894  12,237  (343)
Liabilities:
HMBS-related borrowings $ 425,979  $ 416,748  $ 9,231 
_____________________________
(1)MLHS that were 90 days or more past due had a fair value of $5.7 million and UPB of $7.3 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 $6.1 million.

(in thousands)
 Fair Value
Unpaid Principal Balance
 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.