v3.26.1
FAIR VALUE
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE FAIR VALUE
The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1 - Description of Business, Presentation and Summary of Significant Accounting Policies in the 2025 Form 10-K and below for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a 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 1Level 2Level 3Total
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 futures10,988 — — 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 1Level 2Level 3Total
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 futures3,420 — — 3,420 
Forward sale contracts— 3,416 — 3,416 
Put options on treasuries2,012 — — 2,012 
Servicing rights— — 20,517 20,517 
Total liabilities at fair value$5,432 $3,416 $22,387 $31,235 
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, 2026Six Months Ended June 30, 2026
IRLCs, netServicing
Rights, net		IRLCs, netServicing
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 additions108,015 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, 2025Six Months Ended June 30, 2025
IRLCs, netServicing
Rights, net		IRLCs, netServicing
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 additions126,153 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.
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, 2026December 31, 2025
Unobservable InputRange of inputs
Weighted Average(1)
Range of inputs
Weighted Average(1)
IRLCs
  Pull-through rate3.9%-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.

Financial Statement Items Measured at Fair Value on a Nonrecurring Basis

The Company did not have any material assets or liabilities that were recorded at fair value on a nonrecurring basis as of June 30, 2026 or December 31, 2025.

Financial Statement Items Measured at Amortized Cost

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

Fair value of the Company’s Senior Notes is estimated using quoted market prices and classified as Level 2 in the fair value hierarchy. Fair value of the Company’s other secured financings is estimated using quoted market prices and classified as Level 2 in the fair value hierarchy.