FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2013

FAIR VALUE MEASUREMENTS

Summary of financial assets and financial liabilities measured at fair value on a recurring basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2013, and December 31, 2012, segregated by the level of the valuation inputs within the fair value hierarchy used to measure fair value (in thousands):

	Quoted Prices in		Significant		Significant
	Active Markets		Other		Other
	For Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Balance as of
	(Level 1)		(Level 2)		(Level 3)		Period End
March 31, 2013
Assets
Loans held for sale	$	—	$	479,779	$	—	$	479,779
Pledged securities	34,581		—		—		34,581
Derivative assets	—		—		8,306		8,306
Total	$	34,581	$	479,779	$	8,306	$	522,666
Liabilities
Derivative liabilities	$	—	$	—	$	3,936	$	3,936
Total	$	—	$	—	$	3,936	$	3,936
December 31, 2012
Assets
Loans held for sale	$	—	$	1,101,561	$	—	$	1,101,561
Pledged securities	33,481		—		—		33,481
Derivative assets	—		—		21,258		21,258
Total	$	33,481	$	1,101,561	$	21,258	$	1,156,300
Liabilities
Derivative liabilities	$	—	$	—	$	867	$	867
Total	$	—	$	—	$	867	$	867

Schedule of roll forward of derivative instruments which require valuations based upon significant unobservable inputs

A roll forward of derivative instruments which require valuations based upon significant unobservable inputs, is presented below for the three months ended March 31, 2013 and 2012 (in thousands):

	Fair Value Measurements Using Significant Unobservable Inputs:
	Derivative Instruments
	Three Months Ended March 31, 2013
Derivative assets and liabilities, net
Beginning balance, December 31, 2012	$	20,391
Settlements	(58,951		)
Realized gains recorded in earnings (1)	38,560
Unrealized gains recorded in earnings (1)	4,370
Ending balance, March 31, 2013	$	4,370
	Derivative Instruments
	Three Months Ended March 31, 2012
Derivative assets and liabilities, net
Beginning balance, December 31, 2011	$	5,415
Settlements	(15,715		)
Realized gains recorded in earnings (1)	10,300
Unrealized gains recorded in earnings (1)	9,502
Ending balance, March 31, 2012	$	9,502

(1) Realized and unrealized gains from derivatives are recognized in the gains from mortgage banking activities line item in 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

The following table presents information about significant unobservable inputs used in the measurement of the fair value of the Company’s Level 3 assets and liabilities (in thousands):

	Quantitative Information about Level 3 Measurements
	Fair Value		Valuation Technique	Unobservable Input (1)	Input Value (1)
Derivative assets	$	8,306	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	3,936		Discounted cash flow	Counterparty credit risk	—

(1) Significant increases (decreases) in this input may lead to significantly lower (higher) fair value measurements.

Schedule of carrying amounts and the fair values of the company's financial instruments

The carrying amounts and the fair values of the Company’s financial instruments as of March 31, 2013, and December 31, 2012, are presented below (in thousands):

	March 31, 2013				December 31, 2012
	Carrying		Fair		Carrying		Fair
	Amount		Value		Amount		Value
Financial Assets:
Cash and cash equivalents	$	65,405	$	65,405	$	65,027	$	65,027
Restricted cash	7,750		7,750		7,130		7,130
Pledged securities	34,581		34,581		33,481		33,481
Loans held for sale	479,779		479,779		1,101,561		1,101,561
Loans held for investment	9,487		9,500		9,468		9,500
Derivative assets	8,306		8,306		21,258		21,258
Total financial assets	$	605,308	$	605,321	$	1,237,925	$	1,237,957
Financial Liabilities:
Derivative liabilities	$	3,936	$	3,936	$	867	$	867
Warehouse notes payable	476,221		476,221		1,084,539		1,084,539
Notes payable	78,850		78,850		80,925		80,925
Total financial liabilities	$	559,007	$	559,007	$	1,166,331	$	1,166,331

Schedule of fair value of derivative instruments and loans held for sale

	Fair Value Adjustment Components										Balance Sheet Location
																Fair Value
	Notional or		Assumed		Interest Rate			Total								Adjustment
	Principal		Gain (Loss)		Movement			Fair Value			Derivative		Derivative			To Loans
(in thousands)	Amount		on Sale		Effect			Adjustment			Assets		Liabilities			Held for Sale
March 31, 2013
Rate lock commitments	$	168,130	$	6,298	$	1,635		$	7,933		$	7,933	$	—		$	—
Forward sale contracts	637,243		—		(3,459		)	(3,459		)	373		(3,936		)	—
Loans held for sale	469,113		8,842		1,824			10,666			—		—			10,666
Total			$	15,140	$	—		$	15,140		$	8,306	$	(3,936	)	$	10,666
December 31, 2012
Rate lock commitments	$	302,373	$	11,953	$	(1,194	)	$	10,759		$	10,759	$	—		$	—
Forward sale contracts	1,380,235		—		9,756			9,756			10,499		(867		)
Loans held for sale	1,077,862		32,261		(8,562		)	23,699			—		—			23,699
Total			$	44,214	$	—		$	44,214		$	21,258	$	(867	)	$	23,699