Fair Value

Summary of roll forward of items measured using Level 3 inputs on a recurring basis


	Quarter ended September 30, 2025
			Interest rate lock		Interest rate lock		Mortgage
	Loans held		commitments to		commitments to		servicing
Assets	for sale		non-affiliates, net (1)		PMT, net (1)		rights		Total

	(in thousands)
Balance, June 30, 2025	$	510,913	$	148,638	$	(6,485)	$	9,531,249	$	10,184,315
Purchases and issuances, net		1,643,869		292,487		(13,533)		—		1,922,823
Capitalization of interest and servicing advances		29,575		—		—		—		29,575
Sales and repayments		(618,968)		—		—		(185,409)		(804,377)
Mortgage servicing rights resulting from loan sales		—		—		—		700,326		700,326
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		40,810		—		—		—		40,810
Other factors		5,428		155,122		(11,290)		(392,224)		(242,964)
		46,238		155,122		(11,290)		(392,224)		(202,154)
Transfers:
From Level 3 to Level 2		(1,158,543)		—		—		—		(1,158,543)
To real estate acquired in settlement of loans		(183)		—		—		—		(183)
To loans held for sale		—		(469,168)		25,819		—		(443,349)
Balance, September 30, 2025	$	452,901	$	127,079	$	(5,489)	$	9,653,942	$	10,228,433
Changes in fair value recognized during the quarter relating to assets still held at September 30, 2025	$	26,561	$	127,079	$	(5,489)	$	(386,363)	$	(238,212)

(1)	For the purpose of this table, the IRLC asset and liability positions are shown net.


	Quarter ended
Liabilities	September 30, 2025
	(in thousands)
Mortgage servicing liabilities:
Balance, June 30, 2025	$	1,643
Changes in fair value included in income		(50)
Balance, September 30, 2025	$	1,593
Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2025	$	(50)


	Quarter ended September 30, 2024
			Interest		Mortgage
	Loans held		rate lock		servicing
Assets	for sale		commitments, net (1)		rights			Total

	(in thousands)
Balance, June 30, 2024	$	400,076	$	68,752	$	7,923,078	$	8,391,906
Purchases and issuances, net		1,013,520		246,391		—		1,259,911
Capitalization of interest and servicing advances		15,282		—		—		15,282
Sales and repayments		(384,101)		—		—		(384,101)
Mortgage servicing rights resulting from loan sales		—		—		578,982		578,982
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		36,968		—		—		36,968
Other factors		367		150,334		(628,248)		(477,547)
		37,335		150,334		(628,248)		(440,579)
Transfers from Level 3 to Level 2		(648,238)		—		—		(648,238)
Transfers to loans held for sale		—		(346,862)		—		(346,862)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities		—		—		(121,520)		(121,520)
Balance, September 30, 2024	$	433,874	$	118,615	$	7,752,292	$	8,304,781
Changes in fair value recognized during the quarter relating to assets still held at September 30, 2024	$	29,833	$	118,615	$	(615,931)	$	(467,483)

(1)	For the purpose of this table, the IRLC asset and liability positions are shown net.


Liabilities	Quarter ended September 30, 2024
	(in thousands)
Mortgage servicing liabilities:
Balance, June 30, 2024	$	1,708
Changes in fair value included in income		10
Balance, September 30, 2024	$	1,718
Changes in fair value recognized during the quarter relating to liabilities still outstanding at September 30, 2024	$	10


	Nine months ended September 30, 2025
			Interest rate lock		Interest rate lock		Mortgage
	Loans held		commitments to		commitments to		servicing
Assets	for sale		non-affiliates, net (1)		PMT, net (1)		rights		Total

	(in thousands)
Balance, December 31, 2024	$	434,053	$	34,009	$	(444)	$	8,744,528	$	9,212,146
Purchases and issuances, net		4,540,796		656,169		(21,685)		—		5,175,280
Capitalization of interest and servicing advances		67,522		—		—		—		67,522
Sales and repayments		(1,670,736)		—		—		(185,409)		(1,856,145)
Mortgage servicing rights resulting from loan sales		—		—		—		2,165,213		2,165,213
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		108,439		—		—		—		108,439
Other factors		19,596		350,703		(23,210)		(1,070,390)		(723,301)
		128,035		350,703		(23,210)		(1,070,390)		(614,862)
Transfers:
From Level 3 to Level 2		(3,046,586)		—		—		—		(3,046,586)
To real estate acquired in settlement of loans		(183)		—		—		—		(183)
To loans held for sale		—		(913,802)		39,850		—		(873,952)
Balance, September 30, 2025	$	452,901	$	127,079	$	(5,489)	$	9,653,942	$	10,228,433
Changes in fair value recognized during the period relating to assets still held at September 30, 2025	$	27,716	$	127,079	$	(5,489)	$	(1,061,816)	$	(912,510)

(1)	For the purpose of this table, the IRLC asset and liability positions are shown net.


	Nine months ended
Liabilities	September 30, 2025
	(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2024	$	1,683
Changes in fair value included in income		(90)
Balance, September 30, 2025	$	1,593
Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2025	$	(90)


	Nine months ended September 30, 2024
			Interest		Mortgage
	Loans held		rate lock		servicing
Assets	for sale		commitments, net (1)		rights		Total

	(in thousands)
Balance, December 31, 2023	$	478,564	$	89,593	$	7,099,348	$	7,667,505
Purchases and issuances, net		2,873,461		474,903		—		3,348,364
Capitalization of interest and servicing advances		40,618		—		—		40,618
Sales and repayments		(1,125,088)		—		—		(1,125,088)
Mortgage servicing rights resulting from loan sales		—		—		1,532,709		1,532,709
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		82,121		—		—		82,121
Other factors		(741)		181,400		(758,245)		(577,586)
		81,380		181,400		(758,245)		(495,465)
Transfers:
From Level 3 to Level 2		(1,915,061)		—		—		(1,915,061)
To loans held for sale		—		(627,281)		—		(627,281)
Exchange of mortgage servicing spread for interest-only stripped mortgage-backed securities		—		—		(121,520)		(121,520)
Balance, September 30, 2024	$	433,874	$	118,615	$	7,752,292	$	8,304,781
Changes in fair value recognized during the period relating to assets still held at September 30, 2024	$	28,536	$	118,615	$	(752,232)	$	(605,081)

(1)	For purpose of this table, the IRLC asset and liability positions are shown net.


Liabilities	Nine months ended September 30, 2024
	(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2023	$	1,805
Changes in fair value included in income		(87)
Balance, September 30, 2024	$	1,718
Changes in fair value recognized during the period relating to liabilities still outstanding at September 30, 2024	$	(87)

Schedule of fair value and related principal amounts due upon maturity of assets and liabilities accounted for under the fair value option


	September 30, 2025						December 31, 2024
			Principal						Principal
			amount						amount
	Fair		due upon				Fair		due upon
Loans held for sale	value		maturity		Difference		value		maturity		Difference

	(in thousands)
Current through 89 days delinquent	$	7,458,146	$	7,260,164	$	197,982	$	8,187,561	$	8,089,532	$	98,029
90 days or more delinquent:
Not in foreclosure		20,841		22,519		(1,678)		24,663		27,901		(3,238)
In foreclosure		11,486		20,408		(8,922)		5,244		11,481		(6,237)
	$	7,490,473	$	7,303,091	$	187,382	$	8,217,468	$	8,128,914	$	88,554

Summary of total gains (losses) on assets measured at estimated fair values on a nonrecurring basis


	Quarter ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024

	(in thousands)
Real estate acquired in settlement of loans	$	(1,487)	$	(1,758)	$	(2,898)	$	(2,804)

Quantitative summary of key inputs used in the valuation of the MSRs at year end and the effect on estimated fair value from adverse changes in those inputs


	September 30, 2025	December 31, 2024

	(Fair value, unpaid principal balance of underlying
	loans and effect on fair value amounts in thousands)
Fair value	$ 9,653,942	$ 8,744,528
Underlying loan characteristics:
Unpaid principal balance	$ 470,281,735	$ 426,055,220
Weighted average note interest rate	4.9%	4.5%
Weighted average servicing fee rate (in basis points)	39	38
Key inputs (1):
Annual total prepayment speed (2):
Range	6.0% – 22.7%	5.9% – 17.7%
Weighted average	8.9%	7.8%
Equivalent average life (in years):
Range	2.5 – 9.0	2.7 – 9.1
Weighted average	8.0	8.4
Effect on fair value of (3):
5% adverse change	($165,204)	($126,224)
10% adverse change	($324,196)	($248,349)
20% adverse change	($624,901)	($481,100)
Option-adjusted spread (4) (5):
Range	2.1% – 13.2%
Weighted average	4.9%
Pricing spread (4) (5):
Range		5.0% – 11.3%
Weighted average		6.2%
Effect on fair value of (3):
5% adverse change	($100,106)	($113,419)
10% adverse change	($197,972)	($223,960)
20% adverse change	($387,269)	($436,805)
Per-loan annual cost of servicing:
Range	$70 – $127	$68 – $130
Weighted average	$106	$105
Effect on fair value of (3):
5% adverse change	($51,908)	($48,830)
10% adverse change	($103,817)	($97,661)
20% adverse change	($207,633)	($195,321)

(1)	Weighted average inputs are based on the UPB of the underlying loans.

(2)	Annual total prepayment speed is measured using life total CPR, which includes both voluntary and involuntary prepayments. Equivalent average life is provided as supplementary information.

(3)

These sensitivity analyses are limited in that they were performed as of a particular date; only contemplate the movements in the indicated inputs; do not incorporate changes to other inputs; are subject to the accuracy of the models and inputs used; and do not incorporate other factors that would affect the Company’s overall financial performance in such events, including operational adjustments made to account for changing circumstances. For these reasons, these analyses should not be viewed as earnings forecasts.

(4)

Beginning in the third quarter of 2025, the Company enhanced its period-end discounted cash flow valuation of MSRs by utilizing an OAS discounted cashflow model, which utilizes an OAS rather than a pricing spread. The option-adjusted spread is a margin that is applied to a reference interest rate’s projected curve to develop periodic discount rates. The Company applies an option-adjusted spread to multiple simulated paths of a derived Treasury yield curve for purposes of discounting cash flows relating to MSRs. Adoption of the OAS model did not have a significant effect on the fair value of MSRs.

(5)

Pricing spread represents a margin that is applied to a reference interest rate’s forward rate curve to develop periodic discount rates. Through June 30, 2025, the Company applied a fixed pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to period-end MSRs.

Fair Value

Quantitative summary of key inputs or assumptions used in the valuation of financial statement items



	September 30, 2025		December 31, 2024
Fair value (in thousands) (1)	$	121,590	$	33,565
Committed amount (in thousands)	$	11,539,546	$	7,801,677
Key inputs (2):
Pull-through rate:
Range		17.6% – 100%		29.8% – 100%
Weighted average		84.3%		88.2%
Mortgage servicing rights fair value expressed as:
Servicing fee multiple:
Range		1.0 – 8.6		1.0 – 8.6
Weighted average		5.4		5.4
Percentage of loan commitment amount:
Range		0.3% – 4.5%		0.3% – 4.6%
Weighted average		2.1%		2.4%

(1)	Amounts include IRLCs with non-affiliates and with PMT. For purpose of this table, IRLC asset and liability positions are shown net.

(2)	Weighted average inputs are based on the committed amounts.

Fair Value

Quantitative summary of key inputs or assumptions used in the valuation of financial statement items



	September 30, 2025		December 31, 2024
Fair value (in thousands)	$	452,901	$	434,053
Key inputs (1):
Discount rate:
Range		5.6% – 9.3%		6.5% – 9.3%
Weighted average		6.2%		7.0%
Twelve-month projected housing price index change:
Range		1.4% – 1.6%		2.2% – 2.8%
Weighted average		1.4%		2.3%
Voluntary prepayment/resale speed (2):
Range		6.5% – 26.3%		6.4% – 34.4%
Weighted average		20.4%		22.0%
Total prepayment/resale speed (3):
Range		6.7% – 32.5%		6.5% – 41.3%
Weighted average		22.7%		23.9%

(1)	Weighted average inputs are based on the fair values of the “Level 3” fair value loans.

(2)	Voluntary prepayment/resale speed is measured using life voluntary Conditional Prepayment Rate (“CPR”).

(3)	Total prepayment/resale speed is measured using life total CPR, which includes both voluntary and involuntary prepayment/resale speeds.