FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2017

FAIR VALUE MEASUREMENTS

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, 2017
Assets
Loans held for sale	$	—	$	1,608,025	$	—	$	1,608,025
Pledged securities		92,401		—		—		92,401
Derivative assets		—		—		24,991		24,991
Total	$	92,401	$	1,608,025	$	24,991	$	1,725,417
Liabilities
Derivative liabilities	$	—	$	—	$	500	$	500
Total	$	—	$	—	$	500	$	500
December 31, 2016
Assets
Loans held for sale	$	—	$	1,858,358	$	—	$	1,858,358
Pledged securities		84,850		—		—		84,850
Derivative assets		—		—		61,824		61,824
Total	$	84,850	$	1,858,358	$	61,824	$	2,005,032
Liabilities
Derivative liabilities	$	—	$	—	$	4,396	$	4,396
Total	$	—	$	—	$	4,396	$	4,396

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)	2017		2016		2017		2016
Derivative assets and liabilities, net
Beginning balance	$	5,997	$	9,578	$	57,428	$	10,345
Settlements		(83,682)		(108,769)		(231,545)		(157,928)
Realized gains recorded in earnings (1)		77,685		99,191		174,117		147,583
Unrealized gains recorded in earnings (1)		24,491		600		24,491		600
Ending balance	$	24,491	$	600	$	24,491	$	600

(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	$	24,991	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	500	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, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	53,338	$	53,338	$	118,756	$	118,756
Restricted cash		15,768		15,768		9,861		9,861
Pledged securities		92,401		92,401		84,850		84,850
Loans held for sale		1,608,025		1,608,025		1,858,358		1,858,358
Loans held for investment, net		167,540		168,662		220,377		222,313
Derivative assets		24,991		24,991		61,824		61,824
Total financial assets	$	1,962,063	$	1,963,185	$	2,354,026	$	2,355,962
Financial liabilities:
Derivative liabilities	$	500	$	500	$	4,396	$	4,396
Warehouse notes payable		1,630,268		1,630,890		1,990,183		1,992,111
Note payable		164,011		166,775		164,163		167,327
Total financial liabilities	$	1,794,779	$	1,798,165	$	2,158,742	$	2,163,834

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

			Fair Value Adjustment Components						Balance Sheet Location
													Fair Value
	Notional or		Assumed				Total						Adjustment
	Principal		Gain		Interest Rate		Fair Value		Derivative		Derivative		To Loans
(in thousands)	Amount		on Sale		Movement		Adjustment		Assets		Liabilities		Held for Sale
June 30, 2017
Rate lock commitments	$	478,118	$	12,849	$	(4,309)	$	8,540	$	8,540	$	—	$	—
Forward sale contracts		1,950,178		—		15,951		15,951		16,451		(500)		—
Loans held for sale		1,591,810		27,857		(11,642)		16,215		—		—		16,215
Total			$	40,706	$	—	$	40,706	$	24,991	$	(500)	$	16,215
December 31, 2016
Rate lock commitments	$	395,462	$	15,844	$	(2,275)	$	13,569	$	14,482	$	(913)	$	—
Forward sale contracts		2,248,385		—		43,859		43,859		47,342		(3,483)		—
Loans held for sale		1,852,923		47,019		(41,584)		5,435		—		—		5,435
Total			$	62,863	$	—	$	62,863	$	61,824	$	(4,396)	$	5,435