FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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
September 30, 2022
Assets
Loans held for sale	$	—	$	2,180,117	$	—	$	2,180,117
Pledged securities		12,624		138,789		—		151,413
Derivative assets		—		—		255,295		255,295
Total	$	12,624	$	2,318,906	$	255,295	$	2,586,825
Liabilities
Derivative liabilities	$	—	$	—	$	24,054	$	24,054
Contingent consideration liabilities		—		—		220,984		220,984
Total	$	—	$	—	$	245,038	$	245,038
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 nine months ended
	September 30,				September 30,
Derivative Assets and Liabilities, net (in thousands)	2022		2021		2022		2021
Beginning balance	$	42,634	$	6,340	$	30,961	$	44,720
Settlements		42,458		(146,841)		(235,463)		(488,356)
Realized gains recorded in earnings(1)		(85,092)		140,501		204,502		443,636
Unrealized gains (losses) recorded in earnings(1)		231,241		72,223		231,241		72,223
Ending balance	$	231,241	$	72,223	$	231,241	$	72,223

(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	$	255,295	Discounted cash flow	Counterparty credit risk	—	—
Derivative liabilities	$	24,054	Discounted cash flow	Counterparty credit risk	—	—
Contingent consideration liabilities	$	220,984	Monte Carlo Simulation(2)	Probability of earn-out achievement	65% - 100%	76%

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

(2) Monte Carlo simulation analysis was supported by other valuation analyses.

(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

	September 30, 2022				December 31, 2021
	Carrying		Fair		Carrying		Fair
(in thousands)	Amount		Value		Amount		Value
Financial Assets:
Cash and cash equivalents	$	152,188	$	152,188	$	305,635	$	305,635
Restricted cash		40,246		40,246		42,812		42,812
Pledged securities		151,413		151,413		148,996		148,996
Loans held for sale		2,180,117		2,180,117		1,811,586		1,811,586
Loans held for investment, net		247,106		248,098		269,125		270,826
Derivative assets		255,295		255,295		37,364		37,364
Total financial assets	$	3,026,365	$	3,027,357	$	2,615,518	$	2,617,219
Financial Liabilities:
Derivative liabilities	$	24,054	$	24,054	$	6,403	$	6,403
Contingent consideration liabilities		220,984		220,984		125,808		125,808
Warehouse notes payable		2,545,406		2,546,298		1,941,572		1,942,448
Notes payable		711,107		715,688		740,174		745,175
Total financial liabilities	$	3,501,551	$	3,507,024	$	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
September 30, 2022
Rate lock commitments	$	870,205	$	21,833	$	(37,337)	$	(15,504)	$	8,469	$	(23,973)	$	—
Forward sale contracts		3,230,106		—		246,745		246,745		246,826		(81)		—
Loans held for sale		2,359,901		29,624		(209,408)		(179,784)		—		—		(179,784)
Total			$	51,457	$	—	$	51,457	$	255,295	$	(24,054)	$	(179,784)
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