Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value


			June 30,		December 31,
	Balance Sheet Classification	Hierarchy	2025		2024

Mortgage loans held for sale	Mortgage loans held for sale	Level 2	$	184,390	$	236,926
Mortgage loans held for investment at fair value ⁽¹⁾	Prepaid expenses and other assets	Level 3	$	19,952	$	21,478
Derivative assets	Prepaid expenses and other assets	Level 2	$	5,151	$	3,990
Mortgage servicing rights ⁽²⁾	Prepaid expenses and other assets	Level 3	$	1,215	$	42,404
Derivative liabilities	Accrued expenses and other liabilities	Level 2	$	2,391	$	—

⁽¹⁾A portion of our mortgage loans held for investment are recorded at fair value, which were those determined to be unsaleable and transferred from mortgage loans held for sale which are recorded at fair value. The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity.

⁽²⁾The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were a weighted average of 7.3%, 10.4%, and $75 per year per loan, respectively, as of June 30, 2025, and 8.5%, 10.6%, and $74 per year per loan, respectively, as of December 31, 2024. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement.

Schedule of Reconciliation of Level 3 Recurring at Fair Value


	Three Months Ended June 30,				Six Months Ended June 30,
Mortgage servicing rights		2025		2024		2025		2024
Beginning of period	$	43,889	$	32,734	$	42,404	$	30,932
Originations		1,193		1,545		4,928		2,779
Settlements		(802)		(550)		(1,504)		(1,112)
Sales		(47,305)		—		(47,305)		—
Changes in fair value		4,240		341		2,692		1,471
End of period	$	1,215	$	34,070	$	1,215	$	34,070

	Three Months Ended June 30,				Six Months Ended June 30,
Mortgage loans held-for-investment at fair value		2025		2024		2025		2024
Beginning of period	$	21,704	$	21,620	$	21,478	$	21,041
Transfers from loans held for sale		466		808		975		1,956
Settlements		—		(347)		—		(661)
Reduction in unpaid principal balance		(127)		(246)		(301)		(362)
Changes in fair value		(2,091)		(72)		(2,200)		(211)
End of period	$	19,952	$	21,763	$	19,952	$	21,763

Schedule of Carrying Values and Fair Values of Financial Instruments



		June 30, 2025				December 31, 2024

	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Cash and cash equivalents	Level 1	$	93,246	$	93,246	$	149,998	$	149,998
6.750% senior notes ⁽¹⁾⁽²⁾	Level 2	$	498,435	$	500,625	$	498,027	$	498,750
3.875% senior notes ⁽¹⁾⁽²⁾	Level 2	$	496,814	$	461,250	$	496,428	$	446,875
Revolving line of credit⁽³⁾	Level 2	$	270,000	$	270,000	$	135,500	$	135,500
Other financing obligations⁽³⁾⁽⁴⁾	Level 3	$	139,953	$	139,953	$	113,454	$	113,454
Mortgage repurchase facilities⁽³⁾	Level 2	$	181,440	$	181,440	$	232,804	$	232,804

⁽¹⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽²⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of June 30, 2025, these amounts totaled $1.6 million and $3.2 million for the 6.750% senior notes and 3.875% senior notes, respectively. As of December 31, 2024, these amounts totaled $2.0 million and $3.6 million for the 6.750% senior notes and 3.875% senior notes, respectively.

⁽³⁾Carrying amount approximates fair value due to short-term nature and/or interest rate terms.

⁽⁴⁾As of June 30, 2025, other financing obligations included $12.3 million related to certain secured borrowings that bore a weighted average interest rate of 5.0%, and $127.7 million related to outstanding borrowings on the construction loan agreements related to Century Living that bore a weighted average interest rate of 6.6%. As of December 31, 2024, other financing obligations included $11.0 million related to insurance premium notes and certain secured borrowings that bore a weighted average interest rate of 6.7%, and $102.4 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 6.5%.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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