FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2019

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, 2019
Assets
Loans held for sale	$	—	$	1,259,075	$	—	$	1,259,075
Pledged securities		5,361		114,941		—		120,302
Derivative assets		—		—		25,554		25,554
Total	$	5,361	$	1,374,016	$	25,554	$	1,404,931
Liabilities
Derivative liabilities	$	—	$	—	$	17,726	$	17,726
Total	$	—	$	—	$	17,726	$	17,726
December 31, 2018
Assets
Loans held for sale	$	—	$	1,074,348	$	—	$	1,074,348
Pledged securities		9,469		106,862		—		116,331
Derivative assets		—		—		35,536		35,536
Total	$	9,469	$	1,181,210	$	35,536	$	1,226,215
Liabilities
Derivative liabilities	$	—	$	—	$	32,697	$	32,697
Total	$	—	$	—	$	32,697	$	32,697

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)	2019		2018		2019		2018
Derivative assets and liabilities, net
Beginning balance	$	(12,702)	$	17,963	$	2,839	$	8,507
Settlements		(95,399)		(89,475)		(316,556)		(263,765)
Realized gains recorded in earnings (1)		108,101		71,512		313,717		255,258
Unrealized gains recorded in earnings (1)		7,828		27,658		7,828		27,658
Ending balance	$	7,828	$	27,658	$	7,828	$	27,658

(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	$	25,554	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	17,726	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, 2019				December 31, 2018
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	65,641	$	65,641	$	90,058	$	90,058
Restricted cash		9,138		9,138		20,821		20,821
Pledged securities		120,302		120,302		116,331		116,331
Loans held for sale		1,259,075		1,259,075		1,074,348		1,074,348
Loans held for investment, net		454,430		456,928		497,291		503,549
Derivative assets		25,554		25,554		35,536		35,536
Total financial assets	$	1,934,140	$	1,936,638	$	1,834,385	$	1,840,643
Financial liabilities:
Derivative liabilities	$	17,726	$	17,726	$	32,697	$	32,697
Secured borrowings		70,052		70,052		70,052		70,052
Warehouse notes payable		1,263,036		1,263,314		1,161,382		1,162,791
Note payable		294,255		297,750		296,010		300,000
Total financial liabilities	$	1,645,069	$	1,648,842	$	1,560,141	$	1,565,540

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, 2019
Rate lock commitments	$	662,161	$	16,830	$	3,925	$	20,755	$	20,766	$	(11)	$	—
Forward sale contracts		1,885,828		—		(12,927)		(12,927)		4,788		(17,715)		—
Loans held for sale		1,223,667		26,406		9,002		35,408		—		—		35,408
Total			$	43,236	$	—	$	43,236	$	25,554	$	(17,726)	$	35,408
December 31, 2018
Rate lock commitments	$	891,514	$	20,285	$	10,627	$	30,912	$	30,976	$	(64)	$	—
Forward sale contracts		1,927,017		—		(28,073)		(28,073)		4,560		(32,633)		—
Loans held for sale		1,035,503		21,399		17,446		38,845		—		—		38,845
Total			$	41,684	$	—	$	41,684	$	35,536	$	(32,697)	$	38,845