FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 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
June 30, 2020
Assets
Loans held for sale	$	—	$	1,733,598	$	—	$	1,733,598
Pledged securities		5,772		122,524		—		128,296
Derivative assets		—		—		27,085		27,085
Total	$	5,772	$	1,856,122	$	27,085	$	1,888,979
Liabilities
Derivative liabilities	$	—	$	—	$	13,739	$	13,739
Total	$	—	$	—	$	13,739	$	13,739
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				For the six months ended
	June 30,				June 30,
(in thousands)	2020		2019		2020		2019
Derivative assets and liabilities, net
Beginning balance	$	(14,390)	$	(2,286)	$	15,532	$	2,839
Settlements		(140,540)		(117,297)		(314,835)		(221,157)
Realized gains recorded in earnings (1)		154,930		119,583		299,303		218,318
Unrealized gains (losses) recorded in earnings (1)		13,346		(12,702)		13,346		(12,702)
Ending balance	$	13,346	$	(12,702)	$	13,346	$	(12,702)

(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	$	27,085	Discounted cash flow	Counterparty credit risk	—
Derivative liabilities	$	13,739	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

	June 30, 2020				December 31, 2019
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial assets:
Cash and cash equivalents	$	275,202	$	275,202	$	120,685	$	120,685
Restricted cash		10,894		10,894		8,677		8,677
Pledged securities		128,296		128,296		121,767		121,767
Loans held for sale		1,733,598		1,733,598		787,035		787,035
Loans held for investment, net		404,527		407,003		543,542		546,033
Derivative assets		27,085		27,085		15,568		15,568
Total financial assets	$	2,579,602	$	2,582,078	$	1,597,274	$	1,599,765
Financial liabilities:
Derivative liabilities	$	13,739	$	13,739	$	36	$	36
Secured borrowings		71,137		71,137		70,548		70,548
Warehouse notes payable		1,863,654		1,864,291		906,128		906,821
Note payable		292,819		296,261		293,964		297,750
Total financial liabilities	$	2,241,349	$	2,245,428	$	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
June 30, 2020
Rate lock commitments	$	945,009	$	24,912	$	1,097	$	26,009	$	26,057	$	(48)	$	—
Forward sale contracts		2,619,701		—		(12,663)		(12,663)		1,028		(13,691)		—
Loans held for sale		1,674,692		47,340		11,566		58,906		—		—		58,906
Total			$	72,252	$	—	$	72,252	$	27,085	$	(13,739)	$	58,906
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