Fair Value Measurements (Tables)
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3 Months Ended |
Mar. 31, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis |
The Company’s financial instruments measured at fair value on a recurring basis are summarized below. As of March 31, 2026, certain derivative instruments, including interest rate swaps associated with the Birmingham Bank disposal group, have been reclassified to assets and liabilities of discontinued operations, see Note 3. The December 31, 2025 amounts presented below have been reclassified to conform to the current-period presentation. | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | (Amounts in thousands) | Level 1 | | Level 2 | | Level 3 | | Total | | Mortgage loans held for sale, at fair value | $ | — | | | $ | 563,036 | | | $ | — | | | $ | 563,036 | | Derivative assets, at fair value (1) | — | | | 2,008 | | | 4,009 | | | 6,017 | | | | | | | | | | | Total Assets | $ | — | | | $ | 565,044 | | | $ | 4,009 | | | $ | 569,053 | | | | | | | | | | Derivative liabilities, at fair value (1) | $ | — | | | $ | — | | | $ | 329 | | | $ | 329 | | | | | | | | | | Warrants and equity related liabilities, at fair value (2) | 1,761 | | | 1,479 | | | — | | | 3,240 | | | Total Liabilities | $ | 1,761 | | | $ | 1,479 | | | $ | 329 | | | $ | 3,569 | |
| | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (Amounts in thousands) | Level 1 | | Level 2 | | Level 3 | | Total | | Mortgage loans held for sale, at fair value | $ | — | | | $ | 466,681 | | | $ | — | | | $ | 466,681 | | Derivative assets, at fair value (1) | — | | | — | | | 4,210 | | | 4,210 | | | Total Assets | $ | — | | | $ | 466,681 | | | $ | 4,210 | | | $ | 470,891 | | | | | | | | | | Derivative liabilities, at fair value (1) | $ | — | | | $ | 554 | | | $ | 250 | | | $ | 804 | | Warrants and equity related liabilities, at fair value (2) | 668 | | | 808 | | | — | | | 1,476 | | | Total Liabilities | $ | 668 | | | $ | 1,362 | | | $ | 250 | | | $ | 2,280 | |
__________________ (1)As of March 31, 2026, derivative assets represent both IRLCs and forward sale commitments, and liabilities represent IRLCs. As of December 31, 2025, derivative assets represent IRLCs, and liabilities represent forward sale commitments, IRLCs and interest rate swaps. (2)Fair value is derived from methodologies such as the Black-Sholes-Merton model and the Finnerty model where the Company’s underlying stock price is a significant input among other assumptions and inputs.
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| Schedule of Notional and Fair Value of Derivative Financial Instruments |
The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows: | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | Notional Value | | Derivative Asset | | Derivative Liability | | Balance as of March 31, 2026 | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | IRLCs | $ | 244,504 | | | $ | 4,009 | | | $ | 329 | | | Forward commitments | $ | 242,000 | | | 2,008 | | | — | | | Total | | | $ | 6,017 | | | $ | 329 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Balance as of December 31, 2025 | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | IRLCs | $ | 271,373 | | | $ | 4,210 | | | $ | 250 | | | Forward commitments | $ | 286,000 | | | — | | | 554 | | | | | $ | 4,210 | | | $ | 804 | | | | | | | | | Derivatives designated as hedging instruments: | | | | | | | Interest rate swaps | $ | 268,768 | | | $ | — | | | $ | 1,627 | | | Total | | | $ | 4,210 | | | $ | 2,431 | |
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| Schedule of Change in Fair Value of Derivative Liabilities |
The following table presents the rollforward of Level 3 IRLCs: | | | | | | | | | | | | | Three Months Ended March 31, | | (Amounts in thousands) | 2026 | | 2025 | | Balance at beginning of period | $ | 3,961 | | | $ | 1,222 | | | Change in fair value of IRLCs | (281) | | | 2,626 | | | Balance at end of period | $ | 3,680 | | | $ | 3,848 | |
The table below presents gross amounts of recognized assets and liabilities subject to master netting agreements.
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| Schedule of Offsetting Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Net Amounts Presented in the Consolidated Balance Sheet | | Exposure under margining arrangements | | Net Exposure Under Margining Arrangements | | Offsetting of Forward Commitments - Assets | | | | | | | | | | | Balance as of: | | | | | | | | | | | March 31, 2026: | $ | 2,146 | | | $ | (138) | | | $ | 2,008 | | | $ | (5,125) | | | $ | (3,117) | | | December 31, 2025: | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Offsetting of Forward Commitments - Liabilities | | | | | | | | | | | Balance as of: | | | | | | | | | | | March 31, 2026: | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | December 31, 2025: | $ | 46 | | | $ | (600) | | | $ | (554) | | | $ | 517 | | | $ | (37) | |
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| Schedule of Offsetting Liabilities |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Amounts in thousands) | Gross Amount of Recognized Assets | | Gross Amount of Recognized Liabilities | | Net Amounts Presented in the Consolidated Balance Sheet | | Exposure under margining arrangements | | Net Exposure Under Margining Arrangements | | Offsetting of Forward Commitments - Assets | | | | | | | | | | | Balance as of: | | | | | | | | | | | March 31, 2026: | $ | 2,146 | | | $ | (138) | | | $ | 2,008 | | | $ | (5,125) | | | $ | (3,117) | | | December 31, 2025: | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | Offsetting of Forward Commitments - Liabilities | | | | | | | | | | | Balance as of: | | | | | | | | | | | March 31, 2026: | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | December 31, 2025: | $ | 46 | | | $ | (600) | | | $ | (554) | | | $ | 517 | | | $ | (37) | |
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| Schedule of Quantitative Information about Significant Unobservable Inputs |
The following table presents quantitative information about the significant unobservable inputs used in the recurring fair value measurements of assets categorized within Level 3 of the fair value hierarchy: | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | (Amounts in dollars, except percentages) | Range | | Weighted Average | | Range | | Weighted Average | | Level 3 Financial Instruments: | | | | | | | | | IRLCs | | | | | | | | | Pull-through factor | 0.00% - 99.76% | | 69.1 | % | | 0.03% - 99.60% | | 69.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments Measured at Fair Value on Recurring or Non-Recurring Basis |
The estimated fair value of the Company’s cash and cash equivalents, restricted cash, warehouse lines of credit, and escrow funds approximates their carrying values as these financial instruments are highly liquid or short-term in nature. The following table presents the carrying amounts and estimated fair value of financial instruments that are not recorded at fair value on a recurring or non-recurring basis: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | December 31, 2025 | | | | (Amounts in thousands) | Fair Value Level | | Carrying Amount | | Fair Value | | Carrying Amount | | Fair Value | | | | | | Short-term investments | Level 1 | | $ | 103,616 | | | $ | 103,640 | | | $ | 103,607 | | | $ | 103,849 | | | | | | | Loans held for investment | Level 3 | | $ | 730,936 | | | $ | 747,475 | | | $ | 725,584 | | | $ | 745,367 | | | | | | | | | | | | | | | | | | | | | Senior Notes | Level 3 | | $ | 198,802 | | | $ | 136,375 | | | $ | 198,802 | | | $ | 135,916 | | | | | |
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