FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2026

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, 2026
Assets
Loans held for sale		$	—		$	1,382,958		$	—		$	1,382,958
Pledged securities			17,272			217,253			—			234,525
Derivative assets			—			32,699			—			32,699
Real estate held for sale⁽¹⁾			—			22,460			34,982			57,442
Total		$	17,272		$	1,655,370		$	34,982		$	1,707,624

Liabilities
Derivative liabilities		$	—		$	8,568		$	—		$	8,568
Corporate notes payable —Senior Notes			—			393,454			—			393,454
Total		$	—		$	402,022		$	—		$	402,022

December 31, 2025
Assets
Loans held for sale		$	—		$	1,436,350		$	—		$	1,436,350
Pledged securities			22,288			202,666			—			224,954
Derivative assets			—			27,216			—			27,216
Total		$	22,288		$	1,666,232		$	—		$	1,688,520

Liabilities
Derivative liabilities		$	—		$	1,718		$	—		$	1,718
Corporate notes payable —Senior Notes			—			400,927			—			400,927
Contingent consideration liabilities⁽²⁾			—			—			9,663			9,663
Total		$	—		$	402,645		$	9,663		$	412,308

(1)

The “Roll Forward of Level 3 Real Estate Held for Sale” table below has a detailed roll forward of the Level 3 assets as of June 30, 2026.

(2)

Contingent Consideration Liabilities were immaterial as of June 30, 2026. NOTE 9 of the 2025 Form 10-K contains a description of the valuations methodology related to this Level 3 liability as of December 31, 2025. The “Roll Forward of Contingent Consideration Liabilities” in NOTE 9 contains a detailed roll forward of this Level 3 liability.

Schedule of Roll Forward of Derivative Instruments


		As of and for the three months ended						As of and for the six months ended
		June 30,						June 30,
Derivative Assets and Liabilities, net (in thousands)		2026			2025			2026			2025
Beginning balance		$	39,524		$	11,635		$	25,498		$	29,260
Settlements			(156,103)			(122,935)			(277,382)			(214,752)
Realized gains (losses) recorded in earnings⁽¹⁾			116,579			111,300			251,884			185,492
Unrealized gains (losses) recorded in earnings⁽¹⁾⁽²⁾			24,131			36,162			24,131			36,162
Ending balance		$	24,131		$	36,162		$	24,131		$	36,162

(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 of guaranty obligation 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 real estate held for sale activity


		As of and for the three months ended			As of and for the six months ended
Roll Forward of Level 3 Real Estate Held for Sale (in thousands)		June 30, 2026			June 30, 2026
Beginning balance⁽¹⁾		$	37,342		$	—
Additions and transfers from real estate held for use			24,280			63,160
Transfers from Level 3 to Level 2			(24,124)			(24,124)
Impairment⁽²⁾			(2,516)			(4,054)
Ending balance		$	34,982		$	34,982

(1)

As of and for the year ended December 31, 2025, the Company did not hold its real estate assets as held for sale and thus did not record their fair values on a recurring basis.

(2)

Included as a component of Other operating expenses on 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
(dollars in thousands)	* *	Fair Value			Valuation Technique		Unobservable Input⁽¹⁾		Input Range ⁽¹⁾		Weighted Average
Real estate held for sale		$	34,982		Income capitalization		Cap rate		5.75% - 6.25%		6.06%
							NOI		$766 - $1,508		$1,227

(1)

Significant changes in this input may lead to significant changes in the fair value measurements.

Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments


			June 30, 2026						December 31, 2025
			Carrying			Fair			Carrying			Fair
(in thousands)	Level		Amount			Value			Amount			Value
Financial Assets:
Cash and cash equivalents	Level 1		$	160,858		$	160,858		$	299,315		$	299,315
Restricted cash	Level 1			25,782			25,782			22,772			22,772
Pledged securities	Level 1 & 2			234,525			234,525			224,954			224,954
Loans held for sale	Level 2			1,382,958			1,382,958			1,436,350			1,436,350
Loans held for investment, net⁽¹⁾⁽²⁾	Level 3			113,983			113,983			77,769			77,769
Derivative assets⁽¹⁾	Level 2			32,699			32,699			27,216			27,216
Total financial assets			$	1,950,805		$	1,950,805		$	2,088,376		$	2,088,376

Financial Liabilities:
Derivative liabilities⁽³⁾	Level 2		$	8,568		$	8,568		$	1,718		$	1,718
Secured borrowings⁽³⁾	Level 2			133,055			133,055			83,402			83,402
Warehouse notes payable⁽⁴⁾	Level 2			1,384,282			1,384,708			1,420,272			1,420,662
Corporate notes payable⁽⁴⁾⁽⁵⁾	Level 2			820,948			837,829			829,218			847,552
Total financial liabilities			$	2,346,853		$	2,364,160		$	2,334,610		$	2,353,334

(1)

Included as a component of Other assets on the Condensed Consolidated Balance Sheets.

(2)

Comprised primarily of loans with collateral-based reserves and loans with variable interest rates.

(3)

Included as a component of Other liabilities on the Condensed Consolidated Balance Sheets.

(4)

Carrying value includes unamortized debt issuance costs.

(5)

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, 2026
Undesignated derivatives
Rate lock commitments		$	531,105		$	29,737		$	430		$	30,167		$	30,167		$	—		$	—
Forward sale contracts			1,908,224			—			510			510			2,532			(2,022)			—
Loans held for sale⁽³⁾			1,377,119			6,779			(940)			5,839			—			—			5,839
Total undesignated derivatives					$	36,516		$	—		$	36,516		$	32,699		$	(2,022)		$	5,839
Designated derivatives
Interest rate swap			400,000			—			(6,546)			(6,546)			—			(6,546)			—
Senior Notes⁽⁴⁾			400,000			—			6,546			6,546			—			—			6,546
Total designated derivatives					$	—		$	—		$	—		$	—		$	(6,546)		$	6,546
Total					$	36,516		$	—		$	36,516		$	32,699		$	(8,568)		$	12,385

December 31, 2025
Undesignated derivatives
Rate lock commitments		$	374,384		$	18,673		$	(1,546)		$	17,127		$	17,608		$	(481)		$	—
Forward sale contracts			1,804,114			—			7,444			7,444			8,681			(1,237)			—
Loans held for sale⁽³⁾			1,429,730			12,518			(5,898)			6,620			—			—			6,620
Total undesignated derivatives					$	31,191		$	—		$	31,191		$	26,289		$	(1,718)		$	6,620
Designated derivatives
Interest rate swap			400,000			—			927			927			927			—			—
Senior Notes⁽⁴⁾			400,000			—			(927)			(927)			—			—			(927)
Total designated derivatives					$	—		$	—		$	—		$	927		$	—		$	(927)
Total					$	31,191		$	—		$	31,191		$	27,216		$	(1,718)		$	5,693

(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 Corporate notes payable on the Condensed Consolidated Balance Sheets.

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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