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

	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, 2020
Assets
Loans held for sale	$	—	$	1,186,577	$	—	$	1,186,577
Pledged securities		8,543		112,952		—		121,495
Derivative assets		—		—		158,233		158,233
Total	$	8,543	$	1,299,529	$	158,233	$	1,466,305
Liabilities
Derivative liabilities	$	—	$	—	$	172,623	$	172,623
Total	$	—	$	—	$	172,623	$	172,623
December 31, 2019
Assets
Loans held for sale	$	—	$	787,035	$	—	$	787,035
Pledged securities		7,204		114,563		—		121,767
Derivative assets		—		—		15,568		15,568
Total	$	7,204	$	901,598	$	15,568	$	924,370
Liabilities
Derivative liabilities	$	—	$	—	$	36	$	36
Total	$	—	$	—	$	36	$	36

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)	2020		2019
Derivative assets and liabilities, net
Beginning balance	$	15,532	$	2,839
Settlements		(174,295)		(103,860)
Realized gains recorded in earnings (1)		158,763		101,021
Unrealized gains (losses) recorded in earnings (1)		(14,390)		(2,286)
Ending balance	$	(14,390)	$	(2,286)

(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

	Quantitative Information about Level 3 Measurements
(in thousands)	Fair Value		Valuation Technique	Unobservable Input (1)	Input Value (1)
Derivative assets	$	158,233	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	172,623	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, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	205,309	$	205,309	$	120,685	$	120,685
Restricted cash		30,745		30,745		8,677		8,677
Pledged securities		121,495		121,495		121,767		121,767
Loans held for sale		1,186,577		1,186,577		787,035		787,035
Loans held for investment, net		454,213		457,254		543,542		546,033
Derivative assets		158,233		158,233		15,568		15,568
Total financial assets	$	2,156,572	$	2,159,613	$	1,597,274	$	1,599,765
Financial liabilities:
Derivative liabilities	$	172,623	$	172,623	$	36	$	36
Secured borrowings		70,548		70,548		70,548		70,548
Warehouse notes payable		1,305,846		1,306,632		906,128		906,821
Note payable		293,371		272,874		293,964		297,750
Total financial liabilities	$	1,842,388	$	1,822,677	$	1,270,676	$	1,275,155

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, 2020
Rate lock commitments	$	2,824,387	$	49,475	$	108,151	$	157,626	$	157,642	$	(16)	$	—
Forward sale contracts		3,920,466		—		(172,016)		(172,016)		591		(172,607)		—
Loans held for sale		1,096,079		26,633		63,865		90,498		—		—		90,498
Total			$	76,108	$	—	$	76,108	$	158,233	$	(172,623)	$	90,498
December 31, 2019
Rate lock commitments	$	511,114	$	12,199	$	(1,975)	$	10,224	$	10,247	$	(23)	$	—
Forward sale contracts		1,285,656		—		5,308		5,308		5,321		(13)		—
Loans held for sale		774,542		15,826		(3,333)		12,493		—		—		12,493
Total			$	28,025	$	—	$	28,025	$	15,568	$	(36)	$	12,493