Guild Holdings Company Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

FAIR VALUE MEASUREMENTS (Tables)

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Mortgage loans held for sale	$	—	$	1,358,920	$	—	$	1,358,920
Reverse mortgage loans held for investment	—		—		482,151		482,151
Mortgage servicing rights	—		—		1,312,377		1,312,377
Derivative assets
Interest rate lock commitments	—		—		23,092		23,092

Notes receivable	—		—		12,077		12,077
Total assets at fair value	$	—	$	1,358,920	$	1,829,697	$	3,188,617
Liabilities:
HMBS-related borrowings	$	—	$	—	$	461,002	$	461,002
Derivative liabilities
Forward delivery commitments and best efforts sales commitments	—		10,460		—		10,460

Contingent liabilities due to acquisitions	—		—		29,733		29,733
Total liabilities at fair value	$	—	$	10,460	$	490,735	$	501,195

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

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, 2025:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities
Balance at December 31, 2024	$	7,964	$	11,894	$	27,983
Net transfers and revaluation gains	15,128		—		—
Payments	—		—		(251)
Additions	—		183		—
Valuation adjustments	—		—		2,001
Balance at March 31, 2025	$	23,092	$	12,077	$	29,733

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 gains	8,686		—		—

Additions	—		149		10,017
Valuation adjustments	—		230		1,364
Balance at March 31, 2024	$	23,588	$	11,006	$	20,101

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, 2025:


(in thousands)	Interest Rate Lock Commitments		Notes Receivable		Contingent Liabilities
Balance at December 31, 2024	$	7,964	$	11,894	$	27,983
Net transfers and revaluation gains	15,128		—		—
Payments	—		—		(251)
Additions	—		183		—
Valuation adjustments	—		—		2,001
Balance at March 31, 2025	$	23,092	$	12,077	$	29,733

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 gains	8,686		—		—

Additions	—		149		10,017
Valuation adjustments	—		230		1,364
Balance at March 31, 2024	$	23,588	$	11,006	$	20,101

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, 2025:


(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Ginnie Mae loans subject to repurchase right	$	—	$	769,067	$	—	$	769,067
Total assets at fair value	$	—	$	769,067	$	—	$	769,067
Liabilities:
Ginnie Mae loans subject to repurchase right	$	—	$	776,777	$	—	$	776,777
Total liabilities at fair value	$	—	$	776,777	$	—	$	776,777

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

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
March 31, 2025
Assets:
Mortgage loans held for sale(1)	$	1,358,920	$	1,357,824	$	1,096
Reverse mortgage loans held for investment(2)	482,151		448,467		33,684
Notes receivable	12,077		12,420		(343)
Liabilities:
HMBS-related borrowings	$	461,002	$	451,529	$	9,473

_____________________________

(1)MLHS that were 90 days or more past due had a fair value of $7.8 million and UPB of $9.8 million.

(2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $5.9 million and UPB of $5.6 million.


(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.

- 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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