Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Assets and Liabilities Measured at Fair Value


			September 30,		December 31,
	Balance Sheet Classification	Hierarchy	2022		2021

Mortgage loans held for sale	Mortgage loans held for sale	Level 2	$	194,123	$	353,063
Mortgage loans held for investment at fair value ⁽¹⁾	Prepaid expenses and other assets	Level 3	$	16,285	$	10,631
Derivative assets	Prepaid expenses and other assets	Level 2	$	7,937	$	5,944
Mortgage servicing rights ⁽²⁾	Prepaid expenses and other assets	Level 3	$	21,794	$	13,701
Derivative liabilities	Accrued expenses and other liabilities	Level 2	$	—	$	359

⁽¹⁾The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity.

⁽²⁾The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 7.6%, 10.0%, and $0.086 per year per loan, respectively as of September 30, 2022, and 8.5%, 9.9%, and $0.085 per year per loan, respectively, as of December 31, 2021. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement.

Schedule of Reconciliation of Level 3 Recurring at Fair Value


	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage servicing rights		2022		2021		2022		2021
Beginning of period	$	20,196	$	10,298	$	13,701	$	4,115
Originations		1,232		1,604		6,605		7,986
Settlements		(166)		(258)		(701)		(527)
Changes in fair value		532		27		2,189		97
End of period	$	21,794	$	11,671	$	21,794	$	11,671

	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage loans held-for-investment at fair value		2022		2021		2022		2021
Beginning of period	$	14,509	$	10,823	$	10,631	$	8,727
Transfers from loans held for sale		1,904		973		7,046		4,354
Settlements		—		(129)		(1,121)		(1,309)
Reduction in unpaid principal balance		(89)		(54)		(213)		(159)
Changes in fair value		(39)		—		(58)		—
End of period	$	16,285	$	11,613	$	16,285	$	11,613

Schedule of Carrying Values and Fair Values of Financial Instruments



		September 30, 2022				December 31, 2021

	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Cash and cash equivalents	Level 1	$	98,203	$	98,203	$	316,310	$	316,310
3.875% senior notes ⁽¹⁾⁽²⁾	Level 2	$	494,691	$	380,000	$	494,117	$	504,375
6.750% senior notes ⁽¹⁾⁽²⁾	Level 2	$	496,190	$	466,250	$	495,581	$	526,875
Revolving line of credit⁽³⁾	Level 2	$	165,000	$	165,000	$	—	$	—
Other financing obligations⁽³⁾⁽⁴⁾	Level 3	$	25,667	$	25,667	$	9,238	$	9,238
Mortgage repurchase facilities⁽³⁾	Level 2	$	195,047	$	195,047	$	331,876	$	331,876

⁽¹⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽²⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2022, these amounts totaled $5.3 million and $3.8 million for the 3.875% senior notes and 6.750% senior notes, respectively. As of December 31, 2021, these amounts totaled $5.9 million and $4.4 million for the 3.875% senior notes and 6.750% senior notes, respectively.

⁽³⁾Carrying amount approximates fair value due to short-term nature and interest rate terms.

⁽⁴⁾Other financing obligations included $22.7 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.40% to 3.99%, and $3.0 million related to outstanding borrowings on the Construction Loan Agreements that bore a weighted average interest rate of 4.423% during the period ended September 30, 2022. Other financing obligations included $9.2 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 2.99% to 3.24% during the period ended December 31, 2021.