FAIR VALUE MEASUREMENTS (Tables)
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6 Months Ended |
Jun. 30, 2023 |
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| Fair Value Disclosures [Abstract] |
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| 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, 2023:
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| Description |
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Level 1 |
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Level 2 |
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Level 3 |
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Total |
| Assets: |
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| Trading securities |
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$ |
84 |
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|
$ |
— |
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|
$ |
— |
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$ |
84 |
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| Notes receivable |
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— |
|
|
— |
|
|
9,824 |
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|
9,824 |
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| Derivative |
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|
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|
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| Forward delivery commitments and best efforts sales commitments |
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— |
|
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8,089 |
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— |
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8,089 |
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| Interest rate lock commitments |
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— |
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— |
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5,613 |
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|
5,613 |
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| Mortgage loans held for sale |
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— |
|
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1,125,992 |
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|
— |
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1,125,992 |
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| Reverse mortgage loans held for investment |
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— |
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— |
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36,709 |
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|
36,709 |
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| Mortgage servicing rights |
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— |
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|
— |
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1,184,503 |
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|
1,184,503 |
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| Investment in warrants |
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— |
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— |
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|
961 |
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|
961 |
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| Total assets at fair value |
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$ |
84 |
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|
$ |
1,134,081 |
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$ |
1,237,610 |
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$ |
2,371,775 |
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| Liabilities: |
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| Contingent liabilities due to acquisitions |
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$ |
— |
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|
$ |
— |
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|
$ |
7,793 |
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|
$ |
7,793 |
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| Total liabilities at fair value |
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$ |
— |
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|
$ |
— |
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|
$ |
7,793 |
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|
$ |
7,793 |
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The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2022:
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| Description |
|
Level 1 |
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Level 2 |
|
Level 3 |
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Total |
| Assets: |
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|
|
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| Trading securities |
|
$ |
96 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
96 |
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| Derivative |
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|
|
|
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|
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| Forward delivery commitments |
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— |
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|
1,602 |
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— |
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|
1,602 |
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| Interest rate lock commitments |
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— |
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— |
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|
1,518 |
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|
1,518 |
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| Mortgage loans held for sale |
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— |
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|
845,775 |
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— |
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|
845,775 |
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| Mortgage servicing rights |
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— |
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— |
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|
1,139,539 |
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|
1,139,539 |
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| Investment in warrants |
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— |
|
|
— |
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|
961 |
|
|
961 |
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| Total assets at fair value |
|
$ |
96 |
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|
$ |
847,377 |
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|
$ |
1,142,018 |
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|
$ |
1,989,491 |
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| Liabilities: |
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|
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| Derivative |
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|
|
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| Forward delivery commitments and best efforts sales commitments |
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$ |
— |
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|
$ |
5,173 |
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$ |
— |
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$ |
5,173 |
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| Contingent liabilities due to acquisitions |
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— |
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— |
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|
526 |
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|
526 |
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| Total liabilities at fair value |
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$ |
— |
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|
$ |
5,173 |
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$ |
526 |
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$ |
5,699 |
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| 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 and six months ended June 30, 2023 and 2022:
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IRLCs |
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Contingent
Liabilities |
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Note Receivable |
| Balance at March 31, 2023 |
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$ |
12,206
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$ |
2,218
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$ |
11,250
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| Net transfers and revaluation losses |
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(6,593) |
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— |
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— |
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| Additions |
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— |
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|
4,401 |
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|
— |
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| Valuation adjustments |
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— |
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|
1,174 |
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(1,426) |
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| Balance at June 30, 2023 |
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$ |
5,613
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$ |
7,793
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$ |
9,824
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| Balance at December 31, 2022 |
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$ |
1,518
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$ |
526
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|
$ |
—
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| Net transfers and revaluation gains |
|
4,095 |
|
|
— |
|
|
— |
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| Additions |
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— |
|
|
6,103 |
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|
11,250 |
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| Valuation adjustments |
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— |
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|
1,164 |
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(1,426) |
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| Balance at June 30, 2023 |
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$ |
5,613
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$ |
7,793
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$ |
9,824
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| Balance at March 31, 2022 |
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$ |
(11,851) |
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|
$ |
20,438
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|
$ |
—
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| Net transfers and revaluation losses |
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26,451 |
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—
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—
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| Payments |
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—
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(2,370) |
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— |
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| Valuation adjustments |
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—
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(16,511) |
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| Balance at June 30, 2022 |
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$ |
14,600
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|
$ |
1,557
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|
$ |
—
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| Balance at December 31, 2021 |
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$ |
22,119
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$ |
59,500
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|
$ |
—
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| Net transfers and revaluation losses |
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(7,519) |
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|
— |
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— |
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| Payments |
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— |
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(12,541) |
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— |
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| Valuation adjustments |
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— |
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(45,402) |
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| Balance at June 30, 2022 |
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$ |
14,600
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|
$ |
1,557
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|
$ |
—
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| 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, 2023:
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| Description |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
| Assets: |
|
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|
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| Ginnie Mae loans subject to repurchase right |
|
$ |
— |
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|
$ |
598,634 |
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|
$ |
— |
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|
$ |
598,634 |
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| Total assets at fair value |
|
$ |
— |
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|
$ |
598,634 |
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|
$ |
— |
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|
$ |
598,634 |
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| Liabilities: |
|
|
|
|
|
|
|
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| Ginnie Mae loans subject to repurchase right |
|
$ |
— |
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|
$ |
598,879 |
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|
$ |
— |
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|
$ |
598,879 |
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| Total liabilities at fair value |
|
$ |
— |
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$ |
598,879 |
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|
$ |
— |
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$ |
598,879 |
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The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2022:
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| Description |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
| Assets: |
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|
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| Ginnie Mae loans subject to repurchase right |
|
$ |
— |
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|
$ |
650,179 |
|
|
$ |
— |
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|
$ |
650,179 |
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| Total assets at fair value |
|
$ |
— |
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|
$ |
650,179 |
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|
$ |
— |
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|
$ |
650,179 |
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| Liabilities: |
|
|
|
|
|
|
|
|
| Ginnie Mae loans subject to repurchase right |
|
$ |
— |
|
|
$ |
650,179 |
|
|
$ |
— |
|
|
$ |
650,179 |
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| Total liabilities at fair value |
|
$ |
— |
|
|
$ |
650,179 |
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|
$ |
— |
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$ |
650,179 |
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| 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:
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Fair Value |
|
Principal
Amount Due
Upon
Maturity |
|
Difference (1)
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| Balance at June 30, 2023 |
|
$ |
1,125,992 |
|
|
$ |
1,155,240 |
|
|
$ |
(29,248) |
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| Balance at December 31, 2022 |
|
$ |
845,775 |
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|
$ |
868,833 |
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|
$ |
(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.
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