FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Financial Statement Items Measured at Fair Value on a Recurring Basis

The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated.


	June 30, 2026
	Level 1		Level 2		Level 3		Total
Fair value through net income:
Assets:
Loans held for sale	$	—	$	2,643,032	$	—	$	2,643,032
Loans held for investment	—		106,268		—		106,268
Trading securities	—		82,008		—		82,008
Derivative assets:
Interest rate lock commitments	—		—		46,369		46,369
Forward sale contracts	—		1,308		—		1,308
Interest rate swap futures	10,988		—		—		10,988
Put options on treasuries - assets	560		—		—		560

Servicing rights	—		—		1,779,817		1,779,817
Total assets at fair value	$	11,548	$	2,832,616	$	1,826,186	$	4,670,350
Liabilities:
Derivative liabilities:
Interest rate lock commitments	$	—	$	—	$	1,104	$	1,104

Forward sale contracts	—		5,237		—		5,237


Servicing rights	—		—		28,274		28,274
Total liabilities at fair value	$	—	$	5,237	$	29,378	$	34,615


	December 31, 2025
	Level 1		Level 2		Level 3		Total
Fair value through net income:
Assets:
Loans held for sale	$	—	$	3,165,542	$	—	$	3,165,542
Loans held for investment	—		109,821		—		109,821
Trading securities	—		85,640		—		85,640
Derivative assets:
Interest rate lock commitments	—		—		42,207		42,207
Forward sale contracts	—		158		—		158



Servicing rights	—		—		1,658,223		1,658,223
Total assets at fair value	$	—	$	3,361,161	$	1,700,430	$	5,061,591
Liabilities:
Derivative liabilities:
Interest rate lock commitments	$	—	$	—	$	1,870	$	1,870
Interest rate swap futures	3,420		—		—		3,420
Forward sale contracts	—		3,416		—		3,416
Put options on treasuries	2,012		—		—		2,012

Servicing rights	—		—		20,517		20,517

Total liabilities at fair value	$	5,432	$	3,416	$	22,387	$	31,235

Schedule of Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Three Months Ended June 30, 2026				Six Months Ended June 30, 2026
	IRLCs, net		Servicing Rights, net		IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	37,073	$	1,669,648	$	40,337	$	1,637,706
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions	108,015		98,335		226,972		185,485
Fallout	(23,437)		—		(51,715)		—
Transfers of IRLC to LHFS	(76,386)		—		(170,329)		—
Valuation changes in servicing rights, net(1)	—		(13,449)		—		(65,332)
Sales	—		(2,991)		—		(6,316)
Balance at end of period	$	45,265	$	1,751,543	$	45,265	$	1,751,543

(1)The change in unrealized gains or losses relating to servicing rights still held at June 30, 2026 amounted to a net gain of $24.9 million and net gain of $96.4 million for the three and six months ended June 30, 2026, respectively.


	Three Months Ended June 30, 2025				Six Months Ended June 30, 2025
	IRLCs, net		Servicing Rights, net		IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	45,971	$	1,603,031	$	25,552	$	1,615,510
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions	126,153		66,940		247,337		119,626
Fallout	(23,226)		—		(43,070)		—
Transfers of IRLC to LHFS	(94,533)		—		(175,454)		—
Valuation changes in servicing rights, net(1)	—		(42,643)		—		(102,445)
Sales	—		(10,474)		—		(15,837)
Balance at end of period	$	54,365	$	1,616,854	$	54,365	$	1,616,854

(1)The change in unrealized gains or losses relating to servicing rights that were still held at June 30, 2025 amounted to a net gain of $11.6 million and net gain of $0.3 million for the three and six months ended June 30, 2025, respectively.

Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):


	Three Months Ended June 30, 2026				Six Months Ended June 30, 2026
	IRLCs, net		Servicing Rights, net		IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	37,073	$	1,669,648	$	40,337	$	1,637,706
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions	108,015		98,335		226,972		185,485
Fallout	(23,437)		—		(51,715)		—
Transfers of IRLC to LHFS	(76,386)		—		(170,329)		—
Valuation changes in servicing rights, net(1)	—		(13,449)		—		(65,332)
Sales	—		(2,991)		—		(6,316)
Balance at end of period	$	45,265	$	1,751,543	$	45,265	$	1,751,543


	Three Months Ended June 30, 2025				Six Months Ended June 30, 2025
	IRLCs, net		Servicing Rights, net		IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	45,971	$	1,603,031	$	25,552	$	1,615,510
Total net gains (losses) included in:
Gain on origination and sale of loans, net:
Issuances and additions	126,153		66,940		247,337		119,626
Fallout	(23,226)		—		(43,070)		—
Transfers of IRLC to LHFS	(94,533)		—		(175,454)		—
Valuation changes in servicing rights, net(1)	—		(42,643)		—		(102,445)
Sales	—		(10,474)		—		(15,837)
Balance at end of period	$	54,365	$	1,616,854	$	54,365	$	1,616,854

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table presents quantitative information about the valuation techniques and unobservable inputs applied to Level 3 fair value measurements for financial instruments measured at fair value on a recurring basis:



	June 30, 2026				December 31, 2025
Unobservable Input	Range of inputs			Weighted Average(1)	Range of inputs			Weighted Average(1)
IRLCs
Pull-through rate	3.9%	-	99.9%	79.2%	5.2%	-	99.9%	78.3%

Servicing rights
Discount rate(2)	2.6%	-	16.6%	6.5%	3.8%	-	17.7%	6.9%
Prepayment rate	5.9%	-	14.6%	8.9%	5.8%	-	14.1%	8.7%
Cost to service (per loan)	$72	-	$136	$105	$73	-	$132	$100

(1)Weighted average inputs are based on the committed amounts for IRLCs and the UPB of the underlying loans for servicing rights.

(2)The Company estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Company’s prepayment model, and then discounts these cash flows at risk-adjusted rates.

Schedule of Fair Value, Assets Not Measured on Recurring and Nonrecurring Basis

The following table presents the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements that are not recorded at fair value on a recurring or nonrecurring basis. The table excludes cash and cash equivalents, restricted cash, loans eligible for repurchase, warehouse and other lines of credit, and secured debt facilities as these financial instruments are highly liquid or short-term in nature and as a result, their carrying amounts approximate fair value:


	June 30, 2026				December 31, 2025
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Senior Notes	$	799,639	$	716,306	$	807,053	$	801,069
Other secured financings	$	83,938	$	82,882	$	87,953	$	89,034

- Definition

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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