Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.22.2
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2022
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, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 92  $ —  $ —  $ 92 
Derivative
Forward delivery commitments —  8,480  —  8,480 
Interest rate lock commitments —  —  14,600  14,600 
Mortgage loans held for sale —  1,249,809  —  1,249,809 
Mortgage servicing rights —  —  1,030,310  1,030,310 
Total assets at fair value $ 92  $ 1,258,289  $ 1,044,910  $ 2,303,291 
Liabilities:
Derivative
Forward delivery commitments $ —  $ 2,765  $ —  $ 2,765 
Best efforts sales commitments —  1,356  —  1,356 
Contingent liabilities due to acquisitions —  —  1,557  1,557 
Total liabilities at fair value $ —  $ 4,121  $ 1,557  $ 5,678 
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 107  $ —  $ —  $ 107 
Derivative
Forward delivery commitments —  5,842  —  5,842 
Interest rate lock commitments —  —  22,119  22,119 
Mortgage loans held for sale —  2,204,216  —  2,204,216 
Mortgage servicing rights —  —  675,340  675,340 
Total assets at fair value $ 107  $ 2,210,058  $ 697,459  $ 2,907,624 
Liabilities:
Derivative
Forward delivery commitments $ —  $ 2,079  $ —  $ 2,079 
Contingent liabilities due to acquisitions —  —  59,500  59,500 
Total liabilities at fair value $ —  $ 2,079  $ 59,500  $ 61,579 
Summary of Reconciliation of Level Three Assets and 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 periods ended:
  IRLCs Contingent
Liabilities
Balance at March 31, 2022 $ (11,851) $ 20,438 
Net transfers and revaluation gains 26,451  — 
Payments —  (2,370)
Valuation adjustments —  (16,511)
Balance at June 30, 2022 $ 14,600  $ 1,557 
Balance at December 31, 2021 $ 22,119  $ 59,500 
Net transfers and revaluation gains (7,519) — 
Payments —  (12,541)
Valuation adjustments —  (45,402)
Balance at June 30, 2022 $ 14,600  $ 1,557 
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 losses (85,852) — 
Payments —  (10,792)
Valuation adjustments —  13,114 
Balance at June 30, 2021 $ 44,486  $ 20,416 
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 June 30, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 616,335  $ —  $ 616,335 
Total assets at fair value $ —  $ 616,335  $ —  $ 616,335 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 616,638  $ —  $ 616,638 
Total liabilities at fair value $ —  $ 616,638  $ —  $ 616,638 
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2021:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 728,978  $ —  $ 728,978 
Total assets at fair value $ —  $ 728,978  $ —  $ 728,978 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 729,260  $ —  $ 729,260 
Total liabilities at fair value $ —  $ 729,260  $ —  $ 729,260 
Summary of Fair Value Option for Mortgage Loans Held For Sale
The following is the estimated fair value and UPB 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, 2022 $ 1,249,809  $ 1,262,051  $ (12,242)
Balance at December 31, 2021 $ 2,204,216  $ 2,184,326  $ 19,890 
_______________________________
(1)Represents the amount of gains (losses) 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.