XML 34 R23.htm IDEA: XBRL DOCUMENT v3.20.2
FAIR VALUE MEASUREMENTS (Tables)
3 Months Ended
Mar. 31, 2020
FAIR VALUE MEASUREMENTS  
Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

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Quoted Prices in

    

Significant

    

Significant

    

    

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Active Markets

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Other

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Other

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For Identical

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Observable

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Unobservable

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Assets

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Inputs

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Inputs

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Balance as of

 

(in thousands)

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(Level 1)

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(Level 2)

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(Level 3)

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Period End

 

March 31, 2020

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Assets

​

​

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​

​

​

​

​

​

​

​

​

​

Loans held for sale

​

$

—

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$

1,186,577

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$

—

​

$

1,186,577

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Pledged securities

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8,543

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112,952

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—

​

 

121,495

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Derivative assets

​

 

—

​

 

—

​

 

158,233

​

 

158,233

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Total

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$

8,543

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$

1,299,529

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$

158,233

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$

1,466,305

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Liabilities

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Derivative liabilities

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$

—

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$

—

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$

172,623

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$

172,623

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Total

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$

—

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$

—

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$

172,623

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$

172,623

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​

December 31, 2019

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Assets

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Loans held for sale

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$

—

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$

787,035

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$

—

​

$

787,035

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Pledged securities

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7,204

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114,563

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—

​

 

121,767

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Derivative assets

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—

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—

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15,568

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15,568

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Total

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$

7,204

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$

901,598

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$

15,568

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$

924,370

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Liabilities

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Derivative liabilities

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$

—

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$

—

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$

36

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$

36

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Total

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$

—

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$

—

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$

36

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$

36

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Schedule of Roll Forward of Derivative Instruments

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Fair Value Measurements

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Using Significant Unobservable Inputs:

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Derivative Instruments

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For the three months ended

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​

March 31, 

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(in thousands)

    

2020

    

2019

    

Derivative assets and liabilities, net

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Beginning balance

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$

15,532

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$

2,839

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Settlements

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(174,295)

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(103,860)

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Realized gains recorded in earnings (1)

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158,763

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101,021

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Unrealized gains (losses) recorded in earnings (1)

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(14,390)

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(2,286)

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Ending balance

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$

(14,390)

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$

(2,286)

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(1)Realized and unrealized gains (losses) from derivatives are recognized in Loan origination and debt brokerage fees, net and Fair value of expected net cash flows from servicing, net 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

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Quantitative Information about Level 3 Measurements

 

(in thousands)

    

Fair Value

    

Valuation Technique

    

Unobservable Input (1)

    

Input Value (1)

 

Derivative assets

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$

158,233

 

Discounted cash flow

 

Counterparty credit risk

 

—

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Derivative liabilities

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$

172,623

 

Discounted cash flow

 

Counterparty credit risk

 

—

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(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

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March 31, 2020

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December 31, 2019

 

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Carrying

    

Fair

    

Carrying

    

Fair

 

(in thousands)

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Amount

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Value

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Amount

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Value

 

Financial assets:

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Cash and cash equivalents

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$

205,309

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$

205,309

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$

120,685

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$

120,685

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Restricted cash

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30,745

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30,745

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8,677

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8,677

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Pledged securities

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121,495

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121,495

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121,767

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121,767

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Loans held for sale

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1,186,577

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1,186,577

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787,035

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787,035

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Loans held for investment, net

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454,213

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457,254

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543,542

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546,033

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Derivative assets

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158,233

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158,233

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15,568

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15,568

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Total financial assets

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$

2,156,572

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$

2,159,613

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$

1,597,274

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$

1,599,765

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Financial liabilities:

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Derivative liabilities

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$

172,623

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$

172,623

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$

36

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$

36

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Secured borrowings

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​

70,548

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70,548

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70,548

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​

70,548

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Warehouse notes payable

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1,305,846

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1,306,632

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906,128

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906,821

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Note payable

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293,371

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272,874

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293,964

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297,750

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Total financial liabilities

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$

1,842,388

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$

1,822,677

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$

1,270,676

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$

1,275,155

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

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Fair Value Adjustment Components

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Balance Sheet Location

 

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Fair Value

 

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Notional or

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Estimated

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Total

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Adjustment

 

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Principal

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Gain

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Interest Rate

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Fair Value 

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Derivative

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Derivative

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To Loans 

 

(in thousands)

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Amount

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on Sale

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Movement

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Adjustment

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Assets

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Liabilities

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Held for Sale

 

March 31, 2020

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Rate lock commitments

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$

2,824,387

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$

49,475

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$

108,151

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$

157,626

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$

157,642

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$

(16)

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$

—

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Forward sale contracts

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3,920,466

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—

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(172,016)

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(172,016)

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591

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(172,607)

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—

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Loans held for sale

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1,096,079

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26,633

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63,865

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90,498

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—

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—

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90,498

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Total

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$

76,108

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$

—

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$

76,108

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$

158,233

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$

(172,623)

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$

90,498

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December 31, 2019

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Rate lock commitments

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$

511,114

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$

12,199

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$

(1,975)

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$

10,224

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$

10,247

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$

(23)

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$

—

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Forward sale contracts

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1,285,656

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—

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5,308

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5,308

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5,321

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(13)

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—

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Loans held for sale

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774,542

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15,826

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(3,333)

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12,493

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—

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—

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12,493

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Total

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​

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$

28,025

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$

—

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$

28,025

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$

15,568

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$

(36)

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$

12,493

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