Fair Value Measurements (Tables)
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6 Months Ended |
Jun. 30, 2026 |
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| Fair Value Disclosures [Abstract] |
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| Schedule of Financial Statement Items Measured at Estimated Fair Value on a Recurring Basis |
The table below shows a summary of financial statement items that are measured at estimated fair value on a recurring basis, including assets measured under the fair value option. There were no material transfers of assets or liabilities recorded at fair value on a recurring basis between Levels 1, 2 or 3 during the six months ended June 30, 2026 or the year ended December 31, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | | Balance at June 30, 2026 | | | | | | | | | Assets: | | | | | | | | | | | | | | | | | | | | | | | | Mortgage loans held for sale (1) | $ | — | | | $ | 15,250 | | | $ | 298 | | | $ | 15,548 | | Derivative assets: | | | | | | | | IRLCs | — | | | — | | | 345 | | | 345 | | LPCs | — | | | — | | | 5 | | | 5 | | | Forward commitments | — | | | 100 | | | — | | | 100 | | Treasury futures | — | | | 40 | | | — | | | 40 | | | MSRs | — | | | — | | | 18,905 | | | 18,905 | | | Other assets: | | | | | | | | | Investment securities | — | | | 53 | | | 66 | | | 119 | | Equity investments | — | | | — | | | 6 | | | 6 | | | Non-mortgage loans held for sale | — | | | — | | | 485 | | | 485 | | | Assets of the consolidated CFE | — | | | — | | | 103 | | | 103 | | Non-mortgage loans servicing rights | — | | | — | | | 18 | | | 18 | | | Total assets | $ | — | | | $ | 15,443 | | | $ | 20,231 | | | $ | 35,674 | | | Liabilities: | | | | | | | | Derivative liabilities: | | | | | | | | LPCs | $ | — | | | $ | — | | | $ | 3 | | | $ | 3 | | Forward commitments | — | | | 81 | | | — | | | 81 | | Treasury futures | — | | | 1 | | | — | | | 1 | | | Other liabilities: | | | | | | | | | Liabilities of the consolidated CFE | — | | | — | | | 70 | | | 70 | | Excess spread financing | — | | | — | | | 322 | | | 322 | | MSRs financing liability | — | | | — | | | 16 | | | 16 | | | Total liabilities | $ | — | | | $ | 82 | | | $ | 411 | | | $ | 493 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | | Balance at December 31, 2025 | | | | | | | | | Assets: | | | | | | | | | Cash and cash equivalents: | | | | | | | | | Money market funds | $ | 47 | | | $ | — | | | $ | — | | | $ | 47 | | Mortgage loans held for sale (1) | — | | | 15,221 | | | 250 | | | 15,471 | | Derivative assets: | | | | | | | | | IRLCs | — | | | — | | | 294 | | | 294 | | LPCs | — | | | — | | | 4 | | | 4 | | | Forward commitments | — | | | 62 | | | — | | | 62 | | | MSRs | — | | | — | | | 19,442 | | | 19,442 | | | Other assets: | | | | | | | | | Investment securities | — | | | 43 | | | — | | | 43 | | Equity investments | — | | | — | | | 6 | | | 6 | | | Non-mortgage loans held for sale | — | | | — | | | 411 | | | 411 | | | Assets of the consolidated CFE | — | | | — | | | 152 | | | 152 | | | Total assets | $ | 47 | | | $ | 15,326 | | | $ | 20,559 | | | $ | 35,932 | | | Liabilities: | | | | | | | | Derivative liabilities: | | | | | | | | LPCs | $ | — | | | $ | — | | | $ | 1 | | | $ | 1 | | Forward commitments | — | | | 98 | | | — | | | 98 | | Treasury futures | — | | | 46 | | | — | | | 46 | | | Other liabilities: | | | | | | | | | Liabilities of the consolidated CFE | — | | | — | | | 120 | | | 120 | | Excess spread financing | — | | | — | | | 337 | | | 337 | | MSRs financing liability | — | | | — | | | 11 | | | 11 | | | Total liabilities | $ | — | | | $ | 144 | | | $ | 469 | | | $ | 613 | |
(1) As of June 30, 2026 and December 31, 2025, $198 and $167 of UPB of the Level 3 MLHFS were 90 days or more delinquent and were considered in non-accrual status, respectively. The fair value of these Level 3 mortgage loans held for sale was $158 and $137 as of June 30, 2026 and December 31, 2025, respectively.
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| Schedule of Quantitative Information About Fair Value Measurements of Level 3 Financial Instruments |
The following table presents the quantitative information for significant unobservable inputs used in the fair value measurements of material recurring Level 3 fair value financial instruments as of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | December 31, 2025 | | Unobservable Input | | Range | | Weighted Average | | Range | | Weighted Average | | Mortgage loans held for sale | | | | | | | | | Model pricing | | 67.9% - 102.1% | | 79.2 | % | | 71.7% - 104.0% | | 83.1 | % | | IRLCs | | | | | | | | | Pull-through probability | | 0.0% - 100.0% | | 71.8 | % | | 0.0% - 100.0% | | 71.7 | % | | Value of servicing (reflected as a % of pull-through adjusted UPB) | | 0.0% - 4.1% | | 1.4 | % | | 0.0% - 2.9% | | 1.3 | % | MSRs (1) | | | | | | | | | OAS (2) | | 7.3% - 11.3% | | 8.4 | % | | 7.3% - 11.3% | | 8.3 | % | Prepayment speeds | | 9.4% - 12.1% | | 10.2 | % | | 9.6% - 13.4% | | 10.7 | % | Cost to service per loan (3) | | $42 - $113 | | $61 | | | $42 - $113 | | $59 | | | Non-mortgage loans held for sale | | | | | | | | | | Discount rate | | 7.0% - 9.3% | | 7.3 | % | | 7.0% - 9.3% | | 7.0 | % | Annual default rate | | 5.9% - 63.0% | | 7.9 | % | | 4.0% - 29.3% | | 9.0 | % | Assets and Liabilities of the consolidated CFE | | | | | | | | | Discount rate | | 7.0% - 7.0% | | 7.0 | % | | 7.0% - 7.0% | | 7.0 | % | Annual default rate | | 5.9% - 45.7% | | 7.9 | % | | 6.9% - 25.9% | | 8.9 | % | Excess-spread financing (1) | | | | | | | | | OAS (2) | | 7.0% - 12.3% | | 8.8 | % | | 7.0% - 12.3% | | 8.8 | % | | Prepayment speeds | | 7.4% - 8.2% | | 7.8 | % | | 6.6% - 8.4% | | 7.7 | % | Average life (4) | | | | 6.4 years | | | | 6.5 years | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The inputs are weighted by investor. (2) OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. (3) Presented in whole dollar amounts. (4) This is for informational purposes only.
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| Schedule of Reconciliation of Level 3 Assets |
The table below presents a reconciliation of material Level 3 assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2026 and 2025. MSRs are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 4, Mortgage Servicing Rights and Related Liabilities. The Company had immaterial equity investments, non-mortgage loans servicing rights, MSRs financing liability, investment securities and LPCs assets and liabilities as of June 30, 2026 and 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage
Loans
Held for Sale | | IRLCs | | Non-Mortgage Loans
Held for Sale | | Assets of the consolidated CFE | | Liabilities of the consolidated CFE | | Excess-spread financing | | Balance at March 31, 2026 | $ | 264 | | | $ | 361 | | | $ | 411 | | | $ | 126 | | | $ | 94 | | | $ | 328 | | | | | | | | | | | | | | Transfers in (1) | 117 | | | — | | | 524 | | | — | | | — | | | — | | Transfers out/principal reductions (1) | (68) | | | — | | | (449) | | | (20) | | | (24) | | | (14) | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (15) | | | (16) | | | (1) | | | (3) | | | — | | | 8 | | | Balance at June 30, 2026 | $ | 298 | | | $ | 345 | | | $ | 485 | | | $ | 103 | | | $ | 70 | | | $ | 322 | | | | | | | | | | | | | | | Balance at March 31, 2025 | $ | 236 | | | $ | 283 | | | $ | 343 | | | $ | 148 | | | $ | 119 | | | $ | — | | Transfers in (1) | 184 | | | — | | | 176 | | | 99 | | | 80 | | | — | | Transfers out/principal reductions (1) | (152) | | | — | | | (47) | | | (29) | | | (17) | | | — | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (16) | | | 21 | | | (3) | | | (3) | | | — | | | — | | | Balance at June 30, 2025 | $ | 252 | | | $ | 304 | | | $ | 469 | | | $ | 215 | | | $ | 182 | | | $ | — | | | | | | | | | | | | | | Balance at December 31, 2025 | $ | 250 | | | $ | 294 | | | $ | 411 | | | $ | 152 | | | $ | 120 | | | $ | 337 | | | | | | | | | | | | | | Transfers in (1) | 258 | | | — | | | 977 | | | — | | | — | | | — | | Transfers out/principal reductions (1) | (175) | | | — | | | (901) | | | (42) | | | (50) | | | (27) | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (35) | | | 51 | | | (2) | | | (7) | | | — | | | 12 | | | Balance at June 30, 2026 | $ | 298 | | | $ | 345 | | | $ | 485 | | | $ | 103 | | | $ | 70 | | | $ | 322 | | | | | | | | | | | | | | Balance at December 31, 2024 | $ | 242 | | | $ | 103 | | | $ | 262 | | | $ | 112 | | | $ | 93 | | | $ | — | | Transfers in (1) | 298 | | | — | | | 298 | | | 156 | | | 125 | | | — | | Transfers out/principal reductions (1) | (269) | | | — | | | (86) | | | (49) | | | (36) | | | — | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (19) | | | 201 | | | (5) | | | (4) | | | — | | | — | | | Balance at June 30, 2025 | $ | 252 | | | $ | 304 | | | $ | 469 | | | $ | 215 | | | $ | 182 | | | $ | — | |
(1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold or transferred to third parties and loans paid in full.
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| Schedule of Reconciliation of Level 3 Liabilities |
The table below presents a reconciliation of material Level 3 assets and liabilities measured at fair value on a recurring basis for the three and six months ended June 30, 2026 and 2025. MSRs are also classified as a Level 3 asset measured at fair value on a recurring basis and its reconciliation is found in Note 4, Mortgage Servicing Rights and Related Liabilities. The Company had immaterial equity investments, non-mortgage loans servicing rights, MSRs financing liability, investment securities and LPCs assets and liabilities as of June 30, 2026 and 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mortgage
Loans
Held for Sale | | IRLCs | | Non-Mortgage Loans
Held for Sale | | Assets of the consolidated CFE | | Liabilities of the consolidated CFE | | Excess-spread financing | | Balance at March 31, 2026 | $ | 264 | | | $ | 361 | | | $ | 411 | | | $ | 126 | | | $ | 94 | | | $ | 328 | | | | | | | | | | | | | | Transfers in (1) | 117 | | | — | | | 524 | | | — | | | — | | | — | | Transfers out/principal reductions (1) | (68) | | | — | | | (449) | | | (20) | | | (24) | | | (14) | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (15) | | | (16) | | | (1) | | | (3) | | | — | | | 8 | | | Balance at June 30, 2026 | $ | 298 | | | $ | 345 | | | $ | 485 | | | $ | 103 | | | $ | 70 | | | $ | 322 | | | | | | | | | | | | | | | Balance at March 31, 2025 | $ | 236 | | | $ | 283 | | | $ | 343 | | | $ | 148 | | | $ | 119 | | | $ | — | | Transfers in (1) | 184 | | | — | | | 176 | | | 99 | | | 80 | | | — | | Transfers out/principal reductions (1) | (152) | | | — | | | (47) | | | (29) | | | (17) | | | — | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (16) | | | 21 | | | (3) | | | (3) | | | — | | | — | | | Balance at June 30, 2025 | $ | 252 | | | $ | 304 | | | $ | 469 | | | $ | 215 | | | $ | 182 | | | $ | — | | | | | | | | | | | | | | Balance at December 31, 2025 | $ | 250 | | | $ | 294 | | | $ | 411 | | | $ | 152 | | | $ | 120 | | | $ | 337 | | | | | | | | | | | | | | Transfers in (1) | 258 | | | — | | | 977 | | | — | | | — | | | — | | Transfers out/principal reductions (1) | (175) | | | — | | | (901) | | | (42) | | | (50) | | | (27) | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (35) | | | 51 | | | (2) | | | (7) | | | — | | | 12 | | | Balance at June 30, 2026 | $ | 298 | | | $ | 345 | | | $ | 485 | | | $ | 103 | | | $ | 70 | | | $ | 322 | | | | | | | | | | | | | | Balance at December 31, 2024 | $ | 242 | | | $ | 103 | | | $ | 262 | | | $ | 112 | | | $ | 93 | | | $ | — | | Transfers in (1) | 298 | | | — | | | 298 | | | 156 | | | 125 | | | — | | Transfers out/principal reductions (1) | (269) | | | — | | | (86) | | | (49) | | | (36) | | | — | | | | | | | | | | | | | | | Total (losses) gains included in Net income (loss) for assets held at the end of the reporting period | (19) | | | 201 | | | (5) | | | (4) | | | — | | | — | | | Balance at June 30, 2025 | $ | 252 | | | $ | 304 | | | $ | 469 | | | $ | 215 | | | $ | 182 | | | $ | — | |
(1) Transfers in represent loans repurchased from investors or loans originated for which an active market currently does not exist. Transfers out primarily represent loans sold or transferred to third parties and loans paid in full.
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| Schedule of Fair Value Option for Mortgage Loans Held For Sale |
The following is the estimated fair value and UPB of MLHFS, non-mortgage loans held for sale and assets of the consolidated CFE that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option was elected for these assets as the Company believes fair value best reflects their expected future economic performance: | | | | | | | | | | | | | | | | | | | Fair Value | | UPB | | Difference (1) | | Balance at June 30, 2026 | | | | | | | Mortgage loans held for sale | $ | 15,548 | | | $ | 15,230 | | | $ | 318 | | | | | | | | | Non-mortgage loans held for sale | 485 | | | 474 | | | 11 | | | Assets of the consolidated CFE | 103 | | | 101 | | | 2 | | | | | | | | | Balance at December 31, 2025 | | | | | | | Mortgage loans held for sale | $ | 15,471 | | | $ | 15,061 | | | $ | 410 | | | Non-mortgage loans held for sale | 411 | | | 406 | | | 5 | | | Assets of the consolidated CFE | 152 | | | 152 | | | — | |
(1) Represents the amount of gains/losses due to changes in fair value of items accounted for using the fair value option. These are included in Gain on sale of loans, net for Mortgage loans held for sale and Other income for Non-mortgage loans held for sale and Assets of the consolidated CFE on the Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).
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| Schedule of Liabilities not Recorded at Fair Value on a Recurring or Nonrecurring Basis |
The following table presents the carrying amounts and estimated fair value of financial liabilities that are not recorded at fair value on a recurring or nonrecurring basis. This table excludes Cash and cash equivalents, Restricted cash, Advance receivables, net, Loans subject to repurchase right from Ginnie Mae and Secured financing 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 | | Total Senior Notes, net | $ | 10,772 | | | $ | 10,764 | | | $ | 10,423 | | | $ | 10,502 | |
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