Fair Value

Summary of roll forward of items measured using Level 3 inputs on a recurring basis


		Quarter ended March 31, 2026
					Interest rate lock			Interest rate lock			Mortgage
		Loans held			commitments to			commitments to			servicing
Assets		for sale			non-affiliates, net (1)			PMT, net (1)			rights			Total

		(in thousands)
Balance, December 31, 2025		$	307,711		$	127,276		$	(2,348)		$	9,598,941		$	10,031,580
Purchases and issuances, net			947,556			254,337			(5,270)			—			1,196,623
Capitalization of interest and servicing advances			17,502			—			—			—			17,502
Sales, sales adjustments and repayments			(342,604)			—			—			2,506			(340,098)
Mortgage servicing rights resulting from loan sales			—			—			—			719,586			719,586
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk			22,201			—			—			—			22,201
Other factors			2,580			19,347			3,936			(171,997)			(146,134)
			24,781			19,347			3,936			(171,997)			(123,933)
Transfers:
From Level 3 to Level 2			(525,141)			—			—			—			(525,141)
To real estate acquired in settlement of loans			(848)			—			—			—			(848)
To loans held for sale			—			(298,297)			6,955			—			(291,342)
Balance, March 31, 2026		$	428,957		$	102,663		$	3,273		$	10,149,036		$	10,683,929
Changes in fair value recognized during the quarter relating to assets still held at March 31, 2026		$	12,402		$	102,663		$	3,273		$	(171,997)		$	(53,659)

(1)	For the purpose of this table, the IRLC asset and liability positions are shown net.


		Quarter ended
Liabilities		March 31, 2026
		(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2025		$	1,572
Changes in fair value included in income			(4)
Balance, March 31, 2026		$	1,568
Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2026		$	(4)


	Quarter ended March 31, 2025
				Interest			Mortgage
	Loans held			rate lock			servicing
Assets	for sale			commitments, net (1)			rights				Total

	(in thousands)
Balance, December 31, 2024	$	434,053		$	33,565		$	8,744,528		$	9,212,146
Purchases and issuances, net		1,383,885			182,543			—			1,566,428
Capitalization of interest and servicing advances		10,632			—			—			10,632
Sales and repayments		(514,646)			—			—			(514,646)
Mortgage servicing rights resulting from loan sales		—			—			650,349			650,349
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		1,986			—			—			1,986
Other factors		36,948			116,113			(430,988)			(277,927)
		38,934			116,113			(430,988)			(275,941)
Transfers:											—
From Level 3 to Level 2		(911,237)			—			—			(911,237)
To loans held for sale		—			(222,279)			—			(222,279)
Balance, March 31, 2025	$	441,621		$	109,942		$	8,963,889		$	9,515,452
Changes in fair value recognized during the quarter relating to assets still held at March 31, 2025	$	23,715		$	109,942		$	(430,988)		$	(297,331)

(1)	For the purpose of this table, the IRLC asset and liability positions are shown net.


Liabilities	Quarter ended March 31, 2025
	(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2024	$	1,683
Changes in fair value included in income		(32)
Balance, March 31, 2025	$	1,651
Changes in fair value recognized during the quarter relating to liabilities still outstanding at March 31, 2025	$	(32)

Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option


		March 31, 2026									December 31, 2025
					Principal									Principal
					amount									amount
		Fair			due upon						Fair			due upon
Loans held for sale		value			maturity			Difference			value			maturity			Difference

		(in thousands)
Current through 89 days delinquent		$	9,904,215		$	9,755,026		$	149,189		$	9,080,781		$	8,874,884		$	205,897
90 days or more delinquent:
Not in foreclosure			35,749			38,436			(2,687)			32,364			35,669			(3,305)
In foreclosure			14,531			28,024			(13,493)			10,265			19,924			(9,659)
		$	9,954,495		$	9,821,486		$	133,009		$	9,123,410		$	8,930,477		$	192,933

Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis

Quantitative summary of key inputs used in the valuation of the MSRs at year end and the effect on estimated fair value from adverse changes in those inputs


	March 31, 2026	December 31, 2025

	(Fair value, unpaid principal balance of underlying
	loans and effect on fair value amounts in thousands)
Fair value	$ 10,149,036	$ 9,598,941
Underlying loan characteristics:
Unpaid principal balance	$ 473,980,146	$ 462,020,147
Weighted average note interest rate	5.1%	4.7%
Weighted average servicing fee rate (in basis points)	39	39
Key inputs (1):
Annual total prepayment speed (2):
Range	5.0% – 25.7%	6.0% – 22.7%
Weighted average	8.3%	9.0%
Equivalent average life (in years):
Range	2.5 – 9.7	2.5 – 9.0
Weighted average	8.7	8.0
Effect on fair value of (3):
5% adverse change	($137,759)	($168,856)
10% adverse change	($271,449)	($331,359)
20% adverse change	($527,347)	($638,689)
Option-adjusted spread (4):
Range	2.0% – 13.2%	2.6% – 13.2%
Weighted average	4.6%	4.7%
Effect on fair value of (3):
5% adverse change	($101,516)	($95,530)
10% adverse change	($200,579)	($189,008)
20% adverse change	($391,692)	($370,059)
Per-loan annual cost of servicing:
Range	$70 – $128	$70 – $127
Weighted average	$108	$106
Effect on fair value of (3):
5% adverse change	($54,079)	($50,531)
10% adverse change	($108,157)	($101,061)
20% adverse change	($216,314)	($202,122)

(1)	Weighted average inputs are based on the UPB of the underlying loans.

(2)	Annual total prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.

(3)

These sensitivity analyses are limited in that they were performed as of a particular date; only contemplate the movements in the indicated inputs; do not incorporate changes to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments made to account for changing circumstances. For these reasons, these analyses should not be viewed as projections of the effect of shock events or as earnings forecasts

(4)	The OAS is a margin that is applied to a reference interest rate’s projected curve to develop periodic discount rates. The Company applies an OAS to multiple simulated paths of a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.

Fair Value

Quantitative summary of key inputs or assumptions used in the valuation of financial statement items



		March 31, 2026			December 31, 2025
Fair value (in thousands) (1)		$	105,936		$	127,276
Committed amount (in thousands)		$	16,241,426		$	13,474,638
Key inputs (2):
Pull-through rate:
Range			16.0% – 100%			14.1% – 100%
Weighted average			81.6%			81.0%
Mortgage servicing rights fair value expressed as:
Servicing fee multiple:
Range			1.0 – 8.7			1.0 – 8.7
Weighted average			5.5			5.4
Percentage of loan commitment amount:
Range			0.3% – 4.4%			0.3% – 4.6%
Weighted average			1.9%			2.2%

(1)	Amounts include IRLCs with non-affiliates and with PMT. For purpose of this table, IRLC asset and liability positions are shown net.

(2)	Weighted average inputs are based on the committed amounts.

Fair Value

Quantitative summary of key inputs or assumptions used in the valuation of financial statement items



		March 31, 2026			December 31, 2025
Fair value (in thousands)		$	428,957		$	307,711
Key inputs (1):
Discount rate:
Range			5.7% – 9.3%			5.6% – 9.3%
Weighted average			6.5%			6.3%
Twelve-month projected housing price index change:
Range			1.1% – 1.6%			0.8% – 1.3%
Weighted average			1.3%			1.0%
Voluntary prepayment/resale speed (2):
Range			6.8% – 22.2%			6.9% – 22.7%
Weighted average			16.8%			18.9%
Total prepayment/resale speed (3):
Range			6.9% – 40.5%			7.0% – 37.5%
Weighted average			22.2%			24.1%

(1)	Weighted average inputs are based on the fair values of the “Level 3” fair value loans.

(2)	Voluntary prepayment/resale speed is measured using life voluntary Conditional Prepayment Rate (“CPR”).

(3)	Total prepayment/resale speed is measured using life total CPR, which includes both voluntary and involuntary prepayment/resale speeds.

Quarter ended March 31,

(in thousands)

Real estate acquired in settlement of loans