FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2018

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
March 31, 2018
Assets
Loans held for sale	$	—	$	787,552	$	—	$	787,552
Pledged securities		74,445		27,614		—		102,059
Derivative assets		—		—		20,417		20,417
Total	$	74,445	$	815,166	$	20,417	$	910,028
Liabilities
Derivative liabilities	$	—	$	—	$	7,455	$	7,455
Total	$	—	$	—	$	7,455	$	7,455
December 31, 2017
Assets
Loans held for sale	$	—	$	951,829	$	—	$	951,829
Pledged securities		88,785		9,074		—		97,859
Derivative assets		—		—		10,357		10,357
Total	$	88,785	$	960,903	$	10,357	$	1,060,045
Liabilities
Derivative liabilities	$	—	$	—	$	1,850	$	1,850
Total	$	—	$	—	$	1,850	$	1,850

Schedule of Roll Forward of Derivative Instruments

	Fair Value Measurements
	Using Significant
	Unobservable Inputs:
	Derivative Instruments
	For the three months ended
	March 31,
(in thousands)	2018		2017
Derivative assets and liabilities, net
Beginning balance	$	8,507	$	57,428
Settlements		(77,054)		(147,863)
Realized gains recorded in earnings (1)		68,547		90,435
Unrealized gains recorded in earnings (1)		12,962		5,997
Ending balance	$	12,962	$	5,997

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	$	20,417	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	7,455	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

	March 31, 2018				December 31, 2017
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	193,695	$	193,695	$	191,218	$	191,218
Restricted cash		16,991		16,991		6,677		6,677
Pledged securities		102,059		102,059		97,859		97,859
Loans held for sale		787,552		787,552		951,829		951,829
Loans held for investment, net		59,886		60,157		66,510		66,963
Derivative assets		20,417		20,417		10,357		10,357
Total financial assets	$	1,180,600	$	1,180,871	$	1,324,450	$	1,324,903
Financial liabilities:
Derivative liabilities	$	7,455	$	7,455	$	1,850	$	1,850
Warehouse notes payable		802,496		804,201		937,769		939,500
Note payable		163,781		165,947		163,858		166,223
Total financial liabilities	$	973,732	$	977,603	$	1,103,477	$	1,107,573

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
March 31, 2018
Rate lock commitments	$	627,068	$	16,801	$	2,778	$	19,579	$	19,638	$	(59)	$	—
Forward sale contracts		1,397,240		—		(6,617)		(6,617)		779		(7,396)		—
Loans held for sale		770,172		13,541		3,839		17,380		—		—		17,380
Total			$	30,342	$	—	$	30,342	$	20,417	$	(7,455)	$	17,380
December 31, 2017
Rate lock commitments	$	241,760	$	7,587	$	(678)	$	6,909	$	6,909	$	—	$	—
Forward sale contracts		1,175,192		—		1,598		1,598		3,448		(1,850)		—
Loans held for sale		933,432		19,317		(920)		18,397		—		—		18,397
Total			$	26,904	$	—	$	26,904	$	10,357	$	(1,850)	$	18,397