Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

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


	Quoted Prices in		Significant		Significant
	Active Markets		Other		Other
	For Identical		Observable		Unobservable
	Assets		Inputs		Inputs		Balance as of
(in thousands)	(Level 1)		(Level 2)		(Level 3)		Period End
June 30, 2016
Assets
Loans held for sale	$	—	$	2,244,329	$	—	$	2,244,329
Pledged securities		78,491		—		—		78,491
Derivative assets		—		—		28,358		28,358
Total	$	78,491	$	2,244,329	$	28,358	$	2,351,178

Liabilities
Derivative liabilities	$	—	$	1,725	$	27,758	$	29,483
Total	$	—	$	1,725	$	27,758	$	29,483

December 31, 2015
Assets
Loans held for sale	$	—	$	2,499,111	$	—	$	2,499,111
Pledged securities		72,190		—		—		72,190
Derivative assets		—		—		11,678		11,678
Total	$	72,190	$	2,499,111	$	11,678	$	2,582,979

Liabilities
Derivative liabilities	$	—	$	—	$	1,333	$	1,333
Total	$	—	$	—	$	1,333	$	1,333

Schedule of Roll Forward of Derivative Instruments


	Fair Value Measurements
	Using Significant Unobservable Inputs:
	Derivative Instruments
	For the three months ended				For the six months ended
	June 30,				June 30,
(in thousands)	2016		2015		2016		2015
Derivative assets and liabilities, net
Beginning balance	$	9,578	$	23,674	$	10,345	$	9,658
Settlements		(108,769)		(69,713)		(157,928)		(128,417)
Realized gains recorded in earnings (1)		99,191		46,039		147,583		118,759
Unrealized gains recorded in earnings (1)		600		23,911		600		23,911
Ending balance	$	600	$	23,911	$	600	$	23,911

(1)

Realized and unrealized gains from derivatives are recognized in Gains from mortgage banking activities 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


	Quantitative Information about Level 3 Measurements
(in thousands)	Fair Value		Valuation Technique	Unobservable Input (1)	Input Value (1)
Derivative assets	$	28,358	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	27,758	Discounted cash flow	Counterparty credit risk	—

(1)

Significant increases in this input may lead to significantly lower fair value measurements.

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


	June 30, 2016				December 31, 2015
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	60,993	$	60,993	$	136,988	$	136,988
Restricted cash		17,611		17,611		5,306		5,306
Pledged securities		78,491		78,491		72,190		72,190
Loans held for sale		2,244,329		2,244,329		2,499,111		2,499,111
Loans held for investment, net		239,861		242,092		231,493		233,370
Derivative assets		28,358		28,358		11,678		11,678
Total financial assets	$	2,669,643	$	2,671,874	$	2,956,766	$	2,958,643

Financial liabilities:
Derivative liabilities	$	29,483	$	29,483	$	1,333	$	1,333
Warehouse notes payable		2,336,925		2,339,241		2,649,470		2,652,011
Note payable		164,313		167,879		164,462		168,431
Total financial liabilities	$	2,530,721	$	2,536,603	$	2,815,265	$	2,821,775

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		Movement or		Fair Value		Derivative		Derivative		To Loans
(in thousands)	Amount		on Sale		Other Effect		Adjustment		Assets		Liabilities		Held for Sale
June 30, 2016
Rate lock commitments	$	627,317	$	19,144	$	8,725	$	27,869	$	27,869	$	—	$	—
Forward sale contracts		2,761,496		—		(27,269)		(27,269)		489		(27,758)		—
Interest rate swaps		34,460		—		(1,725)		(1,725)		—		(1,725)		—
Loans held for sale		2,181,494		41,652		21,183		62,835		—		—		62,835
Total			$	60,796	$	914	$	61,710	$	28,358	$	(29,483)	$	62,835

December 31, 2015
Rate lock commitments	$	267,710	$	9,467	$	(1,494)	$	7,973	$	7,973	$	—	$	—
Forward sale contracts		2,747,590		—		2,371		2,371		3,705		(1,333)		—
Loans held for sale		2,479,880		20,108		(877)		19,231		—		—		19,231
Total			$	29,575	$	—	$	29,575	$	11,678	$	(1,333)	$	19,231