FAIR VALUE MEASUREMENTS (Tables)
|
3 Months Ended |
Mar. 31, 2025 |
|---|
| FAIR VALUE MEASUREMENTS |
|
| Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis |
| | | | | | | | | | | | | | | | | | | | | | Balance as of | | (in thousands) | | Level 1 | | Level 2 | | Level 3 | | Period End | | March 31, 2025 | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | | Loans held for sale | | $ | — | | $ | 946,372 | | $ | — | | $ | 946,372 | | Pledged securities | | | 16,195 | | | 198,179 | | | — | | | 214,374 | | Derivative assets | | | — | | | 26,714 | | | — | | | 26,714 | | Total | | $ | 16,195 | | $ | 1,171,265 | | $ | — | | $ | 1,187,460 | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | Derivative liabilities | | $ | — | | $ | 15,079 | | $ | — | | $ | 15,079 | | Notes payable - Senior Notes | | | — | | | 396,077 | | | — | | | 396,077 | | Contingent consideration liabilities(1) | | | — | | | — | | | 29,077 | | | 29,077 | | Total | | $ | — | | $ | 411,156 | | $ | 29,077 | | $ | 440,233 | | | | | | | | | | | | | | | | December 31, 2024 | | | | | | | | | | | | | | Assets | | | | | | | | | | | | | | Loans held for sale | | $ | — | | $ | 780,749 | | $ | — | | $ | 780,749 | | Pledged securities | | | 23,472 | | | 183,432 | | | — | | | 206,904 | | Derivative assets | | | — | | | 30,175 | | | — | | | 30,175 | | Total | | $ | 23,472 | | $ | 994,356 | | $ | — | | $ | 1,017,828 | | | | | | | | | | | | | | | | Liabilities | | | | | | | | | | | | | | Derivative liabilities | | $ | — | | $ | 915 | | $ | — | | $ | 915 | | Contingent consideration liabilities(1) | | | — | | | — | | | 30,537 | | | 30,537 | | Total | | $ | — | | $ | 915 | | $ | 30,537 | | $ | 31,452 | |
| (1) | For a detailed roll forward of this Level 3 liability, refer to “Roll Forward of Contingent Consideration Liabilities” in NOTE 7. | |
|
| Schedule of Roll Forward of Derivative Instruments |
| | | | | | | | | | | | For the three months ended | | | | | March 31, | | Derivative Assets and Liabilities, net (in thousands) | | | 2025 | | 2024 | | Beginning balance | | | $ | 29,260 | | $ | 3,204 | | Settlements | | | | (91,817) | | | (54,045) | | Realized gains (losses) recorded in earnings(1) | | | | 62,557 | | | 50,841 | | Unrealized gains (losses) recorded in earnings(1)(2) | | | | 11,635 | | | 13,797 | | Ending balance | | | $ | 11,635 | | $ | 13,797 | |
| (1) | Realized and unrealized gains (losses) from undesignated derivatives are recognized in Loan origination and debt brokerage fees, net and Fair value of expected net cash flows from servicing, net in the Condensed Consolidated Statements of Income. | |
| (2) | Unrealized gain (loss) from designated derivatives is recognized in Interest expense on corporate debt in the Condensed Consolidated Statements of Income. | |
|
| Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities |
| | | | | | | | | | | | | | Quantitative Information about Level 3 Fair Value Measurements | (in thousands) | | Fair Value | | Valuation Technique | | Unobservable Input (1) | | Input Range (1) | | Weighted Average (2) | Contingent consideration liabilities | | $ | 29,077 | | Monte Carlo Simulation | | Probability of earnout achievement | | 0% - 100% | | 11% |
| (1) | Significant changes in this input may lead to significant changes in the fair value measurements. |
| (2) | Contingent consideration weighted based on maximum remaining gross earnout amount. |
|
| Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments |
| | | | | | | | | | | | | | | | | | March 31, 2025 | | December 31, 2024 | | | | | Carrying | | Fair | | Carrying | | Fair | | (in thousands) | Level | | Amount | | Value | | Amount | | Value | | Financial Assets: | | | | | | | | | | | | | | | Cash and cash equivalents | Level 1 | | $ | 180,971 | | $ | 180,971 | | $ | 279,270 | | $ | 279,270 | | Restricted cash | Level 1 | | | 32,268 | | | 32,268 | | | 25,156 | | | 25,156 | | Pledged securities | Level 1 & 2 | | | 214,374 | | | 214,374 | | | 206,904 | | | 206,904 | | Loans held for sale | Level 2 | | | 946,372 | | | 946,372 | | | 780,749 | | | 780,749 | | Loans held for investment, net(1) | Level 3 | | | 32,866 | | | 32,866 | | | 32,866 | | | 32,866 | | Derivative assets(1) | Level 2 | | | 26,714 | | | 26,714 | | | 30,175 | | | 30,175 | | Total financial assets | | | $ | 1,433,565 | | $ | 1,433,565 | | $ | 1,355,120 | | $ | 1,355,120 | | | | | | | | | | | | | | | | | Financial Liabilities: | | | | | | | | | | | | | | | Derivative liabilities(2) | Level 2 | | $ | 15,079 | | $ | 15,079 | | $ | 915 | | $ | 915 | | Contingent consideration liabilities(2) | Level 3 | | | 29,077 | | | 29,077 | | | 30,537 | | | 30,537 | | Secured borrowings(2) (NOTE 2) | Level 2 | | | 46,070 | | | 46,070 | | | 59,441 | | | 59,441 | | Warehouse notes payable | Level 2 | | | 931,002 | | | 931,098 | | | 781,706 | | | 781,972 | | Notes payable | Level 2 | | | 825,556 | | | 846,077 | | | 768,044 | | | 778,481 | | Total financial liabilities | | | $ | 1,846,784 | | $ | 1,867,401 | | $ | 1,640,643 | | $ | 1,651,346 | |
| (1) | Included as a component of Other assets on the Condensed Consolidated Balance Sheets. |
| (2) | Included as a component of Other liabilities on the Condensed Consolidated Balance Sheets. |
|