Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.21.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2021
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 June 30, 2021:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 102  $ —  $ —  $ 102 
Derivative
Forward delivery commitments —  3,407  —  3,407 
Interest rate lock commitments —  —  44,486  44,486 
Mortgage loans held for sale —  2,153,990  —  2,153,990 
Mortgage servicing rights —  —  578,690  578,690 
Total assets at fair value $ 102  $ 2,157,397  $ 623,176  $ 2,780,675 
Liabilities:
Derivative
Forward delivery commitments $ —  $ 4,430  $ —  $ 4,430 
Contingent liabilities due to acquisitions —  —  20,416  20,416 
Total liabilities at fair value $ —  $ 4,430  $ 20,416  $ 24,846 
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2020:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 78  $ —  $ —  $ 78 
Derivative
Interest rate lock commitments —  —  130,338  130,338 
Mortgage loans held for sale —  2,368,777  —  2,368,777 
Mortgage servicing rights —  —  446,998  446,998 
Total assets at fair value $ 78  $ 2,368,777  $ 577,336  $ 2,946,191 
Liabilities:
Derivative
Forward delivery commitments $ —  $ 38,270  $ —  $ 38,270 
Contingent liabilities due to acquisitions —  —  18,094  18,094 
Total liabilities at fair value $ —  $ 38,270  $ 18,094  $ 56,364 
Summary of Reconciliation of Level Three Assets and Liabilities Measured at Fair Value on Recurring Basis
The table below presents a reconciliation of Level Three assets and liabilities measured at fair value on a recurring basis for the periods ended:

  IRLCs Contingent
Liabilities
Balance at March 31, 2021 $ 38,009  $ 16,568 
Net transfers and revaluation gains 6,477  — 
Payments —  (2,646)
Valuation adjustments —  6,494 
Balance at June 30, 2021 $ 44,486  $ 20,416 
Balance at December 31, 2020 $ 130,338  $ 18,094 
Net transfers and revaluation gains (85,852) — 
Payments —  (10,792)
Valuation adjustments —  13,114 
Balance at June 30, 2021 $ 44,486  $ 20,416 
Balance at March 31, 2020 $ 101,255  $ 14,675 
Net transfers and revaluation gains 40,374  — 
Payments —  (2,741)
Valuation adjustments —  11,018 
Balance at June 30, 2020 $ 141,629  $ 22,952 
Balance at December 31, 2019 $ 19,922  $ 8,073 
Net transfers and revaluation gains 121,707  — 
Payments —  (5,146)
Valuation adjustments —  20,025 
Balance at June 30, 2020 $ 141,629  $ 22,952 
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at June 30, 2021:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 1,037,266  $ —  $ 1,037,266 
Total assets at fair value $ —  $ 1,037,266  $ —  $ 1,037,266 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 1,037,640  $ —  $ 1,037,640 
Total liabilities at fair value $ —  $ 1,037,640  $ —  $ 1,037,640 
The following table summarizes the Company’s financial assets measured at fair value on a non-recurring basis at December 31, 2020:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 1,275,842  $ —  $ 1,275,842 
Total assets at fair value $ —  $ 1,275,842  $ —  $ 1,275,842 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 1,277,026  $ —  $ 1,277,026 
Total liabilities at fair value $ —  $ 1,277,026  $ —  $ 1,277,026 
Summary of Fair Value Option for Mortgage Loans Held For Sale The following is the estimated fair value and unpaid principal balance of MLHS that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for MLHS as the Company believes fair value best reflects their expected future economic performance:
Fair Value Principal
Amount Due
Upon
Maturity
Difference (1)
Balance at June 30, 2021 $ 2,153,990  $ 2,115,136  $ 38,854 
Balance at December 31, 2020 $ 2,368,777  $ 2,293,895  $ 74,882 
_______________________________
(1)Represents the amount of gains included in loan origination fees and gain on sale of loans, net due to changes in fair value of items accounted for using the fair value option.