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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2025

FAIR VALUE MEASUREMENTS

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis


											Balance as of
(in thousands)		Level 1			Level 2			Level 3			Period End
December 31, 2025
Assets
Loans held for sale		$	—		$	1,436,350		$	—		$	1,436,350
Pledged securities			22,288			202,666			—			224,954
Derivative assets			—			27,216			—			27,216
Total		$	22,288		$	1,666,232		$	—		$	1,688,520

Liabilities
Derivative liabilities		$	—		$	1,718		$	—		$	1,718
Corporate notes payable —Senior Notes			—			400,927			—			400,927
Contingent consideration liabilities⁽¹⁾			—			—			9,663			9,663
Total		$	—		$	402,645		$	9,663		$	412,308

December 31, 2024
Assets
Loans held for sale		$	—		$	780,749		$	—		$	780,749
Pledged securities			23,472			183,432			—			206,904
Derivative assets			—			30,175			—			30,175
Total		$	23,472		$	994,356		$	—		$	1,017,828

Liabilities
Derivative liabilities		$	—		$	915		$	—		$	915
Contingent consideration liabilities⁽¹⁾			—			—			30,537			30,537
Total		$	—		$	915		$	30,537		$	31,452

(1)

For a detailed roll forward of this Level 3 liability, refer to “Roll Forward of Contingent Consideration Liabilities” in NOTE 9.

Schedule of Roll Forward of Derivative Instruments


			For the year ended December 31,
Derivative Assets and Liabilities, net (in thousands)			2025			2024
Beginning balance			$	29,260		$	3,204
Settlements				(525,592)			(404,099)
Realized gains (losses) recorded in earnings⁽¹⁾				496,332			400,895
Unrealized gains (losses) recorded in earnings⁽¹⁾⁽²⁾				25,498			29,260
Ending balance			$	25,498		$	29,260

(1)

Realized and unrealized gains (losses) from undesignated derivatives are recognized in Loan origination and debt brokerage fees, net and Fair value of expected net cash flows from servicing, net of guaranty obligation in the Consolidated Statements of Income.

(2)

Unrealized gain (loss) from designated derivatives is recognized in Interest expense on corporate debt in the Consolidated Statements of Income

Schedule of Significant Unobservable Inputs Used in the Measurement of the Fair Value of Level 3 Assets and Liabilities


		Quantitative Information about Level 3 Fair Value Measurements
(in thousands)	* *	Fair Value			Valuation Technique		Unobservable Input⁽¹⁾		Input Range ⁽¹⁾		Weighted Average ⁽²⁾
Contingent consideration liabilities		$	9,663		Monte Carlo Simulation		Probability of earnout achievement		0% - 34%		4%

(1)

Significant changes in this input may lead to significant changes in the fair value measurements.

(2)

Contingent consideration weighted based on maximum remaining gross earnout amount.

Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments


			December 31, 2025						December 31, 2024
			Carrying			Fair			Carrying			Fair
(in thousands)	Level		Amount			Value			Amount			Value
Financial Assets:
Cash and cash equivalents	Level 1		$	299,315		$	299,315		$	279,270		$	279,270
Restricted cash	Level 1			22,772			22,772			25,156			25,156
Pledged securities	Level 1 & 2			224,954			224,954			206,904			206,904
Loans held for sale	Level 2			1,436,350			1,436,350			780,749			780,749
Loans held for investment, net⁽¹⁾	Level 3			77,769			77,769			32,866			32,866
Derivative assets⁽¹⁾	Level 2			27,216			27,216			30,175			30,175
Total financial assets			$	2,088,376		$	2,088,376		$	1,355,120		$	1,355,120

Financial Liabilities:
Derivative liabilities⁽²⁾	Level 2		$	1,718		$	1,718		$	915		$	915
Contingent consideration liabilities⁽²⁾	Level 3			9,663			9,663			30,537			30,537
Secured borrowings⁽²⁾	Level 2			83,402			83,402			59,441			59,441
Warehouse notes payable⁽³⁾	Level 2			1,420,272			1,420,662			781,706			781,972
Corporate notes payable⁽³⁾⁽⁴⁾	Level 2			829,218			847,552			768,044			778,481
Total financial liabilities			$	2,344,273		$	2,362,997		$	1,640,643		$	1,651,346

(1)

Included as a component of Other assets (NOTE 16) on the Consolidated Balance Sheets.

(2)

Included as a component of Other liabilities (NOTE 16) on the Consolidated Balance Sheets.

(3)

Carrying value includes unamortized debt issuance costs.

(4)

Carrying value includes unamortized debt discount.

Schedule of Fair Value of Derivative Instruments and Loans Held for Sale


					Fair Value Adjustment Components									Balance Sheet Location
		Notional or			Estimated						Total
		Principal			Gain			Interest Rate			Fair Value			Derivative			Derivative			Fair Value
(in thousands)		Amount			on Sale			Movement			Adjustment			Assets⁽¹⁾			Liabilities⁽²⁾			Adjustment
December 31, 2025
Undesignated derivatives
Rate lock commitments		$	374,384		$	18,673		$	(1,546)		$	17,127		$	17,608		$	(481)		$	—
Forward sale contracts			1,804,114			—			7,444			7,444			8,681			(1,237)			—
Loans held for sale⁽³⁾			1,429,730			12,518			(5,898)			6,620			—			—			6,620
Total undesignated derivatives					$	31,191		$	—		$	31,191		$	26,289		$	(1,718)		$	6,620
Designated derivatives
Interest rate swap			400,000			—			927			927			927			—			—
Senior Notes⁽⁴⁾			400,000			—			(927)			(927)			—			—			(927)
Total designated derivatives					$	—		$	—		$	—		$	927		$	—		$	(927)
Total					$	31,191		$	—		$	31,191		$	27,216		$	(1,718)		$	5,693

December 31, 2024
Rate lock commitments		$	472,905		$	19,968		$	(5,338)		$	14,630		$	14,930		$	(300)		$	—
Forward sale contracts			1,258,323			—			14,630			14,630			15,245			(615)			—
Loans held for sale			785,418			4,623			(9,292)			(4,669)			—			—			(4,669)
Total					$	24,591		$	—		$	24,591		$	30,175		$	(915)		$	(4,669)

(1)	Included as a component of Other assets (NOTE 16) on the Consolidated Balance Sheets.

(2)	Included as a component of Other liabilities (NOTE 16) on the Consolidated Balance Sheets.

(3)	Fair value adjustment included as an adjustment to Loans held for sale, at fair value on the Consolidated Balance Sheets.

(4)	Fair value adjustment included as adjustment to Corporate notes payable on the Consolidated Balance Sheets.