Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.23.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2023
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 March 31, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 80  $ —  $ —  $ 80 
Derivative
Interest rate lock commitments —  —  12,206  12,206 
Mortgage loans held for sale —  858,314  —  858,314 
Mortgage servicing rights —  —  1,112,161  1,112,161 
Investment in warrants —  —  961  961 
Total assets at fair value $ 80  $ 858,314  $ 1,125,328  $ 1,983,722 
Liabilities:
Derivative
Forward delivery commitments and best efforts sales commitments $ —  $ 8,206  $ —  $ 8,206 
Contingent liabilities due to acquisitions —  —  2,218  2,218 
Total liabilities at fair value $ —  $ 8,206  $ 2,218  $ 10,424 
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Trading securities $ 96  $ —  $ —  $ 96 
Derivative
Forward delivery commitments —  1,602  —  1,602 
Interest rate lock commitments —  —  1,518  1,518 
Mortgage loans held for sale —  845,775  —  845,775 
Mortgage servicing rights —  —  1,139,539  1,139,539 
Investment in warrants —  —  961  961 
Total assets at fair value $ 96  $ 847,377  $ 1,142,018  $ 1,989,491 
Liabilities:
Derivative
Forward delivery commitments and best efforts sales commitments $ —  $ 5,173  $ —  $ 5,173 
Contingent liabilities due to acquisitions —  —  526  526 
Total liabilities at fair value $ —  $ 5,173  $ 526  $ 5,699 
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 three months ended March 31, 2023 and 2022:
  IRLCs Contingent
Liabilities
Balance at December 31, 2022 $ 1,518  $ 526 
Net transfers and revaluation gains 10,688  — 
Additions —  1,702 
Valuation adjustments —  (10)
Balance at March 31, 2023 $ 12,206  $ 2,218 
Balance at December 31, 2021 $ 22,119  $ 59,500 
Net transfers and revaluation losses (33,970) — 
Payments —  (10,171)
Valuation adjustments —  (28,891)
Balance at March 31, 2022 $ (11,851) $ 20,438 
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, 2023:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 591,993  $ —  $ 591,993 
Total assets at fair value $ —  $ 591,993  $ —  $ 591,993 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 592,234  $ —  $ 592,234 
Total liabilities at fair value $ —  $ 592,234  $ —  $ 592,234 
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2022:
Description Level 1 Level 2 Level 3 Total
Assets:
Ginnie Mae loans subject to repurchase right $ —  $ 650,179  $ —  $ 650,179 
Total assets at fair value $ —  $ 650,179  $ —  $ 650,179 
Liabilities:
Ginnie Mae loans subject to repurchase right $ —  $ 650,179  $ —  $ 650,179 
Total liabilities at fair value $ —  $ 650,179  $ —  $ 650,179 
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 March 31, 2023 $ 858,314  $ 874,064  $ (15,750)
Balance at December 31, 2022 $ 845,775  $ 868,833  $ (23,058)
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(1)Represents the amount of 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.