v3.25.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
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, 2025:
(in thousands)
Level 1Level 2Level 3Total
Assets:
Mortgage loans held for sale$— $1,358,920 $— $1,358,920 
Reverse mortgage loans held for investment— — 482,151 482,151 
Mortgage servicing rights— — 1,312,377 1,312,377 
Derivative assets
Interest rate lock commitments— — 23,092 23,092 
Notes receivable— — 12,077 12,077 
Total assets at fair value$— $1,358,920 $1,829,697 $3,188,617 
Liabilities:
HMBS-related borrowings$— $— $461,002 $461,002 
Derivative liabilities
Forward delivery commitments and best efforts sales commitments
— 10,460 — 10,460 
Contingent liabilities due to acquisitions— — 29,733 29,733 
Total liabilities at fair value$— $10,460 $490,735 $501,195 
The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2024:
(in thousands)
Level 1Level 2Level 3Total
Assets:
Mortgage loans held for sale$— $1,523,447 $— $1,523,447 
Reverse mortgage loans held for investment— — 451,704 451,704 
Mortgage servicing rights— — 1,343,829 1,343,829 
Derivative assets
Interest rate lock commitments— — 7,964 7,964 
Forward delivery commitments— 9,074 — 9,074 
Notes receivable— — 11,894 11,894 
Total assets at fair value$— $1,532,521 $1,815,391 $3,347,912 
Liabilities:
HMBS-related borrowings$— $— $425,979 $425,979 
Derivative liabilities
Forward delivery commitments and best efforts sales commitments
— 2,487 — 2,487 
Contingent liabilities due to acquisitions— — 27,983 27,983 
Total liabilities at fair value$— $2,487 $453,962 $456,449 
Summary of Reconciliation of Level 3 Assets 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, 2025:
(in thousands)
Interest Rate Lock CommitmentsNotes Receivable
Contingent Liabilities
Balance at December 31, 2024$7,964 $11,894 $27,983 
Net transfers and revaluation gains
15,128 — — 
Payments— — (251)
Additions— 183 — 
Valuation adjustments— — 2,001 
Balance at March 31, 2025
$23,092 $12,077 $29,733 
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, 2024:
(in thousands)
Interest Rate Lock CommitmentsNotes Receivable
Contingent Liabilities
Balance at December 31, 2023$14,902 $10,627 $8,720 
Net transfers and revaluation gains
8,686 — — 
Additions— 149 10,017 
Valuation adjustments— 230 1,364 
Balance at March 31, 2024
$23,588 $11,006 $20,101 
Summary of Reconciliation of Level 3 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, 2025:
(in thousands)
Interest Rate Lock CommitmentsNotes Receivable
Contingent Liabilities
Balance at December 31, 2024$7,964 $11,894 $27,983 
Net transfers and revaluation gains
15,128 — — 
Payments— — (251)
Additions— 183 — 
Valuation adjustments— — 2,001 
Balance at March 31, 2025
$23,092 $12,077 $29,733 
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, 2024:
(in thousands)
Interest Rate Lock CommitmentsNotes Receivable
Contingent Liabilities
Balance at December 31, 2023$14,902 $10,627 $8,720 
Net transfers and revaluation gains
8,686 — — 
Additions— 149 10,017 
Valuation adjustments— 230 1,364 
Balance at March 31, 2024
$23,588 $11,006 $20,101 
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at March 31, 2025:
(in thousands)
Level 1Level 2Level 3Total
Assets:
Ginnie Mae loans subject to repurchase right$— $769,067 $— $769,067 
Total assets at fair value$— $769,067 $— $769,067 
Liabilities:
Ginnie Mae loans subject to repurchase right$— $776,777 $— $776,777 
Total liabilities at fair value$— $776,777 $— $776,777 
The following table summarizes the Company’s financial assets and liabilities measured at fair value on a non-recurring basis at December 31, 2024:
(in thousands)
Level 1Level 2Level 3Total
Assets:
Ginnie Mae loans subject to repurchase right$— $807,283 $— $807,283 
Total assets at fair value$— $807,283 $— $807,283 
Liabilities:
Ginnie Mae loans subject to repurchase right$— $817,271 $— $817,271 
Total liabilities at fair value$— $817,271 $— $817,271 
Summary of Fair Value Option for Mortgage Loans Held for Sale The following is the estimated fair value and UPB of assets and liabilities that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected as the Company believes fair value best reflects their expected future economic performance and to align with the Company’s business and risk management strategies.
(in thousands)
Fair Value
Unpaid Principal Balance
Difference
March 31, 2025
Assets:
Mortgage loans held for sale(1)
$1,358,920 $1,357,824 $1,096 
Reverse mortgage loans held for investment(2)
482,151 448,467 33,684 
Notes receivable12,077 12,420 (343)
Liabilities:
HMBS-related borrowings$461,002 $451,529 $9,473 
_____________________________
(1)MLHS that were 90 days or more past due had a fair value of $7.8 million and UPB of $9.8 million.
(2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $5.9 million and UPB of $5.6 million.
(in thousands)
Fair Value
Unpaid Principal Balance
Difference
December 31, 2024
Assets:
Mortgage loans held for sale(1)
$1,523,447 $1,529,592 $(6,145)
Reverse mortgage loans held for investment(2)
451,704 420,807 30,897 
Notes receivable11,894 12,237 (343)
Liabilities:
HMBS-related borrowings$425,979 $416,748 $9,231 
_____________________________
(1)MLHS that were 90 days or more past due had a fair value of $5.7 million and UPB of $7.3 million.
(2)Reverse mortgage loans held for investment that were 90 days or more past due had a fair value of $6.4 million and UPB of $6.1 million.