FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2022

FAIR VALUE MEASUREMENTS

Summary of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis

							Balance as of
(in thousands)	Level 1		Level 2		Level 3		Period End
June 30, 2022
Assets
Loans held for sale	$	—	$	931,516	$	—	$	931,516
Pledged securities		10,149		139,411		—		149,560
Derivative assets		—		—		59,810		59,810
Total	$	10,149	$	1,070,927	$	59,810	$	1,140,886
Liabilities
Derivative liabilities	$	—	$	—	$	17,176	$	17,176
Contingent consideration liabilities		—		—		218,192		218,192
Total	$	—	$	—	$	235,368	$	235,368
December 31, 2021
Assets
Loans held for sale	$	—	$	1,811,586	$	—	$	1,811,586
Pledged securities		44,733		104,263		—		148,996
Derivative assets		—		—		37,364		37,364
Total	$	44,733	$	1,915,849	$	37,364	$	1,997,946
Liabilities
Derivative liabilities	$	—	$	—	$	6,403	$	6,403
Contingent consideration liabilities		—		—		125,808		125,808
Total	$	—	$	—	$	132,211	$	132,211

Schedule of Roll Forward of Derivative Instruments

	For the three months ended				For the six months ended
	June 30,				June 30,
Derivative Assets and Liabilities, net (in thousands)	2022		2021		2022		2021
Beginning balance	$	99,623	$	48,880	$	30,961	$	44,720
Settlements		(211,543)		(211,771)		(277,921)		(341,515)
Realized gains recorded in earnings(1)		111,920		162,891		246,960		296,795
Unrealized gains (losses) recorded in earnings(1)		42,634		6,340		42,634		6,340
Ending balance	$	42,634	$	6,340	$	42,634	$	6,340

(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 Fair Value Measurements
(in thousands)	Fair Value		Valuation Technique	Unobservable Input (1)	Input Range (1)	Weighted Average (3)
Derivative assets	$	59,810	Discounted cash flow	Counterparty credit risk	—	—
Derivative liabilities	$	17,176	Discounted cash flow	Counterparty credit risk	—	—
Contingent consideration liabilities	$	218,192	Various(2)	Probability of earn-out achievement	65% - 100%	76%

(1) Significant increases in this input may lead to significantly lower fair value measurements.

(2) Primary valuation technique used was a Monte Carlo simulation analysis.

(3) Contingent consideration weighted based on maximum gross earn-out amount.

Schedule of Carrying Amounts and the Fair Values of the Company's Financial Instruments

	June 30, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial Assets:
Cash and cash equivalents	$	151,252	$	151,252	$	305,635	$	305,635
Restricted cash		34,361		34,361		42,812		42,812
Pledged securities		149,560		149,560		148,996		148,996
Loans held for sale		931,516		931,516		1,811,586		1,811,586
Loans held for investment, net		247,243		248,383		269,125		270,826
Derivative assets		59,810		59,810		37,364		37,364
Total financial assets	$	1,573,742	$	1,574,882	$	2,615,518	$	2,617,219
Financial Liabilities:
Derivative liabilities	$	17,176	$	17,176	$	6,403	$	6,403
Contingent consideration liabilities		218,192		218,192		125,808		125,808
Warehouse notes payable		1,125,677		1,126,159		1,941,572		1,942,448
Notes payable		719,210		723,931		740,174		745,175
Total financial liabilities	$	2,080,255	$	2,085,458	$	2,813,957	$	2,819,834

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, 2022
Rate lock commitments	$	820,439	$	20,105	$	12,556	$	32,661	$	33,386	$	(725)	$	—
Forward sale contracts		1,753,635		—		9,973		9,973		26,424		(16,451)		—
Loans held for sale		933,196		20,849		(22,529)		(1,680)		—		—		(1,680)
Total			$	40,954	$	—	$	40,954	$	59,810	$	(17,176)	$	(1,680)
December 31, 2021
Rate lock commitments	$	1,115,829	$	29,837	$	(4,604)	$	25,233	$	26,526	$	(1,293)	$	—
Forward sale contracts		2,881,224		—		5,728		5,728		10,838		(5,110)		—
Loans held for sale		1,765,395		47,315		(1,124)		46,191		—		—		46,191
Total			$	77,152	$	—	$	77,152	$	37,364	$	(6,403)	$	46,191