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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments utilized by the Company primarily include interest rate lock commitments, forward sale contracts, mortgage-backed securities (“MBS”) put options, put options on treasuries, and interest rate swap futures. Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for
derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Refer to Note 1- Description of Business and Summary of Significant Accounting Policies and Note 2- Fair Value for further details on derivatives in the 2025 Form 10-K.

The following summarizes the Company’s outstanding derivative instruments:
Fair Value
NotionalBalance Sheet LocationAssetLiability
June 30, 2026:
Interest rate lock commitments $2,050,340 Derivative asset, at fair value$46,369 $— 
Interest rate lock commitments 477,218 Derivative liabilities, at fair value— 1,104 
Forward sale contracts 304,331 Derivative asset, at fair value1,308 — 
Forward sale contracts 1,030,541 Derivative liabilities, at fair value— 5,237 
Put options on treasuries 6,365 Derivative asset, at fair value560 — 
Put options on treasuries — Derivative liabilities, at fair value— — 
Interest rate swap futures 310 Derivative asset, at fair value10,988 — 
Interest rate swap futures — Derivative liabilities, at fair value— — 
Total derivative financial instruments$59,225 $6,341 

Fair Value
NotionalBalance Sheet LocationAssetLiability
December 31, 2025:
Interest rate lock commitments $2,010,276 Derivative asset, at fair value$42,207 $— 
Interest rate lock commitments 481,579 Derivative liabilities, at fair value— 1,870 
Forward sale contracts 388,361 Derivative asset, at fair value158 — 
Forward sale contracts 1,839,101 Derivative liabilities, at fair value— 3,416 
Put options on treasuries — Derivative asset, at fair value— — 
Put options on treasuries 8,750 Derivative liabilities, at fair value— 2,012 
Interest rate swap futures — Derivative asset, at fair value— — 
Interest rate swap futures 760 Derivative liabilities, at fair value— 3,420 
Total derivative financial instruments$42,365 $10,718 

Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits, and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss.
The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included:
Three Months Ended
June 30,		Six Months Ended
June 30,
Derivative instrumentStatements of Operations Location2026202520262025
Interest rate lock commitments, netGain on origination and sale of loans, net$8,192 $8,394 $4,928 $28,813 
Forward sale contractsGain on origination and sale of loans, net(4,465)(1,247)20,836 (28,078)
Interest rate swap futuresGain on origination and sale of loans, net2,006 (10,756)5,642 (18,159)
Put optionsGain on origination and sale of loans, net(1,770)10,909 840 15,424 
Forward sale contractsChange in fair value of servicing rights, net(2,066)(396)(9,626)4,307 
Interest rate swap futuresChange in fair value of servicing rights, net(4,686)(5,651)(8,415)6,984 
Put optionsChange in fair value of servicing rights, net433 (3,517)(700)(2,052)
Total realized and unrealized (losses) gains on derivative financial instruments
$(2,356)$(2,264)$13,505 $7,239