Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.22.2.2
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 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 September 30, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 83  $ —  $ —  $ 83 
Derivative
Forward delivery commitments and best effort sales commitments —  71,826  —  71,826 
Mortgage loans held for sale —  929,561  —  929,561 
Mortgage servicing rights —  —  1,129,551  1,129,551 
Investment in warrants —  —  961  961 
Total assets at fair value $ 83  $ 1,001,387  $ 1,130,512  $ 2,131,982 
Liabilities:
Derivative
Interest rate lock commitments —  —  23,577  23,577 
Total liabilities at fair value $ —  $ —  $ 23,577  $ 23,577 
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 June 30, 2022 $ 14,600  $ 1,557 
Net transfers and revaluation losses (38,177) — 
Payments —  (1,884)
Valuation adjustments —  327 
Balance at September 30, 2022 $ (23,577) $ — 
Balance at December 31, 2021 $ 22,119  $ 59,500 
Net transfers and revaluation losses (45,696) — 
Payments —  (14,425)
Valuation adjustments —  (45,075)
Balance at September 30, 2022 $ (23,577) $ — 
Balance at June 30, 2021 $ 44,486  $ 20,416 
Net transfers and revaluation losses (8,765) — 
Payments —  (12,656)
Additions —  63,956 
Valuation adjustments —  5,473 
Balance at September 30, 2021 $ 35,721  $ 77,189 
Balance at December 31, 2020 $ 130,338  $ 18,094 
Net transfers and revaluation losses (94,617) — 
Payments —  (23,448)
Additions —  63,956 
Valuation adjustments —  18,587 
Balance at September 30, 2021 $ 35,721  $ 77,189 
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, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 607,614  $ —  $ 607,614 
Total assets at fair value $ —  $ 607,614  $ —  $ 607,614 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 608,046  $ —  $ 608,046 
Total liabilities at fair value $ —  $ 608,046  $ —  $ 608,046 
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 September 30, 2022 $ 929,561  $ 972,588  $ (43,027)
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.