FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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
September 30, 2017
Assets
Loans held for sale	$	—	$	3,275,761	$	—	$	3,275,761
Pledged securities		95,102		—		—		95,102
Derivative assets		—		—		43,853		43,853
Total	$	95,102	$	3,275,761	$	43,853	$	3,414,716
Liabilities
Derivative liabilities	$	—	$	—	$	175	$	175
Total	$	—	$	—	$	175	$	175
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 nine months ended
	September 30,				September 30,
(in thousands)	2017		2016		2017		2016
Derivative assets and liabilities, net
Beginning balance	$	24,491	$	600	$	57,428	$	10,345
Settlements		(92,117)		(71,250)		(323,662)		(229,178)
Realized gains recorded in earnings (1)		67,626		70,650		266,234		218,833
Unrealized gains recorded in earnings (1)		43,678		31,156		43,678		31,156
Ending balance	$	43,678	$	31,156	$	43,678	$	31,156

(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	$	43,853	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	175	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

	September 30, 2017				December 31, 2016
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	85,363	$	85,363	$	118,756	$	118,756
Restricted cash		17,179		17,179		9,861		9,861
Pledged securities		95,102		95,102		84,850		84,850
Loans held for sale		3,275,761		3,275,761		1,858,358		1,858,358
Loans held for investment, net		152,050		152,764		220,377		222,313
Derivative assets		43,853		43,853		61,824		61,824
Total financial assets	$	3,669,308	$	3,670,022	$	2,354,026	$	2,355,962
Financial liabilities:
Derivative liabilities	$	175	$	175	$	4,396	$	4,396
Warehouse notes payable		3,305,589		3,305,807		1,990,183		1,992,111
Note payable		163,935		166,499		164,163		167,327
Total financial liabilities	$	3,469,699	$	3,472,481	$	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		Estimated				Total						Adjustment
	Principal		Gain		Interest Rate		Fair Value		Derivative		Derivative		To Loans
(in thousands)	Amount		on Sale		Movement		Adjustment		Assets		Liabilities		Held for Sale
September 30, 2017
Rate lock commitments	$	688,375	$	19,292	$	(4,987)	$	14,305	$	14,305	$	—	$	—
Forward sale contracts		3,963,275		—		29,373		29,373		29,548		(175)		—
Loans held for sale		3,274,900		25,247		(24,386)		861		—		—		861
Total			$	44,539	$	—	$	44,539	$	43,853	$	(175)	$	861
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