FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2025
Assets
Loans held for sale		$	—		$	1,177,837		$	—		$	1,177,837
Pledged securities			17,966			200,469			—			218,435
Derivative assets			—			52,370			—			52,370
Total		$	17,966		$	1,430,676		$	—		$	1,448,642

Liabilities
Derivative liabilities		$	—		$	16,208		$	—		$	16,208
Notes payable —Senior Notes			—			399,572			—			399,572
Contingent consideration liabilities⁽¹⁾			—			—			19,664			19,664
Total		$	—		$	415,780		$	19,664		$	435,444

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						For the six months ended
		June 30,						June 30,
Derivative Assets and Liabilities, net (in thousands)		2025			2024			2025			2024
Beginning balance		$	11,635		$	13,797		$	29,260		$	3,204
Settlements			(122,935)			(91,209)			(214,752)			(145,254)
Realized gains (losses) recorded in earnings⁽¹⁾			111,300			77,412			185,492			142,049
Unrealized gains (losses) recorded in earnings⁽¹⁾⁽²⁾			36,162			21,272			36,162			21,272
Ending balance		$	36,162		$	21,272		$	36,162		$	21,272

(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		$	19,664		Monte Carlo Simulation		Probability of earnout achievement		0% - 100%		8%

(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


			June 30, 2025						December 31, 2024
			Carrying			Fair			Carrying			Fair
(in thousands)	Level		Amount			Value			Amount			Value
Financial Assets:
Cash and cash equivalents	Level 1		$	233,712		$	233,712		$	279,270		$	279,270
Restricted cash	Level 1			41,090			41,090			25,156			25,156
Pledged securities	Level 1 & 2			218,435			218,435			206,904			206,904
Loans held for sale	Level 2			1,177,837			1,177,837			780,749			780,749
Loans held for investment, net⁽¹⁾	Level 3			32,366			32,366			32,866			32,866
Derivative assets⁽¹⁾	Level 2			52,370			52,370			30,175			30,175
Total financial assets			$	1,755,810		$	1,755,810		$	1,355,120		$	1,355,120

Financial Liabilities:
Derivative liabilities⁽²⁾	Level 2		$	16,208		$	16,208		$	915		$	915
Contingent consideration liabilities⁽²⁾	Level 3			19,664			19,664			30,537			30,537
Secured borrowings⁽²⁾ (NOTE 2)	Level 2			35,060			35,060			59,441			59,441
Warehouse notes payable⁽³⁾	Level 2			1,157,234			1,157,660			781,706			781,972
Notes payable⁽³⁾⁽⁴⁾	Level 2			828,657			848,448			768,044			778,481
Total financial liabilities			$	2,056,823		$	2,077,040		$	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.

(3)

Carrying value includes unamortized debt issuance costs.

(4)

Carrying value includes unamortized debt discount.

Schedule of Fair Value of Derivative Instruments and Loans Held for Sale


					Fair Value Adjustment Components									Balance Sheet Location
		Notional or			Estimated						Total
		Principal			Gain			Interest Rate			Fair Value			Derivative			Derivative			Fair Value
(in thousands)		Amount			on Sale			Movement			Adjustment			Assets⁽¹⁾			Liabilities⁽²⁾			Adjustment
June 30, 2025
Undesignated derivatives
Rate lock commitments		$	1,615,937		$	41,498		$	9,658		$	51,156		$	51,185		$	(29)		$	—
Forward sale contracts			2,779,524			—			(14,566)			(14,566)			1,185			(15,751)			—
Loans held for sale⁽³⁾			1,163,587			9,342			4,908			14,250			—			—			14,250
Total undesignated derivatives					$	50,840		$	—		$	50,840		$	52,370		$	(15,780)		$	14,250
Designated derivatives
Interest rate swap			400,000			—			(428)			(428)			—			(428)			—
Senior Notes⁽⁴⁾			400,000			—			428			428			—			—			428
Total designated derivatives					$	—		$	—		$	—		$	—		$	(428)		$	428
Total					$	50,840		$	—		$	50,840		$	52,370		$	(16,208)		$	14,678

December 31, 2024
Rate lock commitments		$	472,905		$	19,968		$	(5,338)		$	14,630		$	14,930		$	(300)		$	—
Forward sale contracts			1,258,323			—			14,630			14,630			15,245			(615)			—
Loans held for sale			785,418			4,623			(9,292)			(4,669)			—			—			(4,669)
Total					$	24,591		$	—		$	24,591		$	30,175		$	(915)		$	(4,669)

(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.

(3)	Fair value adjustment included as an adjustment to Loans held for sale, at fair value on the Condensed Consolidated Balance Sheets.

(4)	Fair value adjustment included as an adjustment to Notes payable on the Condensed Consolidated Balance Sheets.