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FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

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, 2024
Assets
Loans held for sale		$	—		$	1,024,984		$	—		$	1,024,984
Pledged securities			47,054			156,891			—			203,945
Derivative assets			—			—			33,699			33,699
Total		$	47,054		$	1,181,875		$	33,699		$	1,262,628

Liabilities
Derivative liabilities		$	—		$	—		$	4,026		$	4,026
Contingent consideration liabilities			—			—			79,359			79,359
Total		$	—		$	—		$	83,385		$	83,385

December 31, 2023
Assets
Loans held for sale		$	—		$	594,998		$	—		$	594,998
Pledged securities			41,283			142,798			—			184,081
Derivative assets			—			—			31,451			31,451
Total		$	41,283		$	737,796		$	31,451		$	810,530

Liabilities
Derivative liabilities		$	—		$	—		$	28,247		$	28,247
Contingent consideration liabilities			—			—			113,546			113,546
Total		$	—		$	—		$	141,793		$	141,793

Schedule of Roll Forward of Derivative Instruments


		For the three months ended						For the nine months ended
(in thousands)		September 30,						September 30,
Derivative Assets and Liabilities, net		2024			2023			2024			2023
Beginning balance		$	21,272		$	20,241		$	3,204		$	15,560
Settlements			(108,571)			(80,213)			(253,824)			(259,655)
Realized gains (losses) recorded in earnings⁽¹⁾			87,299			59,972			250,620			244,095
Unrealized gains (losses) recorded in earnings⁽¹⁾			29,673			31,552			29,673			31,552
Ending balance		$	29,673		$	31,552		$	29,673		$	31,552

(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 ⁽²⁾
Derivative assets		$	33,699		Discounted cash flow		Counterparty credit risk		—		—
Derivative liabilities		$	4,026		Discounted cash flow		Counterparty credit risk		—		—
Contingent consideration liabilities		$	79,359		Monte Carlo Simulation		Probability of earnout achievement		0% - 100%		47%

(1)	Significant changes in this input may lead to significant changes in the fair value measurements.

(2)	Contingent consideration weighted based on maximum gross earnout amount.

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


		September 30, 2024						December 31, 2023
		Carrying			Fair			Carrying			Fair
(in thousands)		Amount			Value			Amount			Value
Financial Assets:
Cash and cash equivalents		$	179,759		$	179,759		$	328,698		$	328,698
Restricted cash			39,827			39,827			21,422			21,422
Pledged securities			203,945			203,945			184,081			184,081
Loans held for sale			1,024,984			1,024,984			594,998			594,998
Loans held for investment, net⁽¹⁾			52,767			52,767			40,056			40,139
Derivative assets⁽¹⁾			33,699			33,699			31,451			31,451
Total financial assets		$	1,534,981		$	1,534,981		$	1,200,706		$	1,200,789

Financial Liabilities:
Derivative liabilities⁽²⁾		$	4,026		$	4,026		$	28,247		$	28,247
Contingent consideration liabilities⁽²⁾			79,359			79,359			113,546			113,546
Warehouse notes payable			1,019,850			1,020,236			596,178			596,428
Notes payable			769,376			780,487			773,358			786,500
Total financial liabilities		$	1,872,611		$	1,884,108		$	1,511,329		$	1,524,721

(1)

Included as a component of Other Assets on the Condensed Consolidated Balance Sheets.

(2)

Included as a component of Other Liabilities on the Condensed Consolidated Balance Sheets.

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, 2024
Rate lock commitments		$	755,874			31,219			(3,865)			27,354			27,354			—			—
Forward sale contracts			1,769,986			—			2,319			2,319			6,345			(4,026)			—
Loans held for sale			1,014,112			9,326			1,546			10,872			—			—			10,872
Total					$	40,545		$	—		$	40,545		$	33,699		$	(4,026)		$	10,872

December 31, 2023
Rate lock commitments		$	463,626		$	15,908		$	11,492		$	27,400		$	27,400		$	—		$	—
Forward sale contracts			1,035,964			—			(24,196)			(24,196)			4,051			(28,247)			—
Loans held for sale			572,338			9,956			12,704			22,660			—			—			22,660
Total					$	25,864		$	—		$	25,864		$	31,451		$	(28,247)		$	22,660