Fair Value

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


	Quarter ended June 30, 2025
			Interest		Mortgage
	Loans held		rate lock		servicing
Assets	for sale		commitments, net (1)		rights		Total

	(in thousands)
Balance, March 31, 2025	$	441,621	$	109,942	$	8,963,889	$	9,515,452
Purchases and issuances, net		1,513,042		172,987		—		1,686,029
Capitalization of interest and servicing advances		27,315		—		—		27,315
Sales and repayments		(537,122)		—		—		(537,122)
Mortgage servicing rights resulting from loan sales		—		—		814,538		814,538
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		38,010		—		—		38,010
Other factors		4,853		67,548		(247,178)		(174,777)
		42,863		67,548		(247,178)		(136,767)
Transfers:
From Level 3 to Level 2		(976,806)		—		—		(976,806)
To loans held for sale		—		(208,324)		—		(208,324)
Balance, June 30, 2025	$	510,913	$	142,153	$	9,531,249	$	10,184,315
Changes in fair value recognized during the quarter relating to assets still held at June 30, 2025	$	25,494	$	142,153	$	(247,178)	$	(79,531)

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


	Quarter ended
Liabilities	June 30, 2025
	(in thousands)
Mortgage servicing liabilities:
Balance, March 31, 2025	$	1,651
Changes in fair value included in income		(8)
Balance, June 30, 2025	$	1,643
Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2025	$	(8)


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

	(in thousands)
Balance, March 31, 2024	$	466,392	$	69,808	$	7,483,210	$	8,019,410
Purchases and issuances, net		954,081		128,241		—		1,082,322
Capitalization of interest and servicing advances		14,110		—		—		14,110
Sales and repayments		(356,988)		—		—		(356,988)
Mortgage servicing rights resulting from loan sales		—		—		541,207		541,207
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		28,011		—		—		28,011
Other factors		(536)		19,542		(101,339)		(82,333)
		27,475		19,542		(101,339)		(54,322)
Transfers from Level 3 to Level 2		(704,994)		—		—		(704,994)
Transfers to loans held for sale		—		(148,839)		—		(148,839)
Balance, June 30, 2024	$	400,076	$	68,752	$	7,923,078	$	8,391,906
Changes in fair value recognized during the quarter relating to assets still held at June 30, 2024	$	21,684	$	68,752	$	(101,339)	$	(10,903)

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


Liabilities	Quarter ended June 30, 2024
	(in thousands)
Mortgage servicing liabilities:
Balance, March 31, 2024	$	1,732
Changes in fair value included in income		(24)
Balance, June 30, 2024	$	1,708
Changes in fair value recognized during the quarter relating to liabilities still outstanding at June 30, 2024	$	(24)


	Six months ended June 30, 2025
			Interest		Mortgage
	Loans held		rate lock		servicing
Assets	for sale		commitments, net (1)		rights		Total

	(in thousands)
Balance, December 31, 2024	$	434,053	$	33,565	$	8,744,528	$	9,212,146
Purchases and issuances, net		2,896,927		355,530		—		3,252,457
Capitalization of interest and servicing advances		37,947		—		—		37,947
Sales and repayments		(1,051,768)		—		—		(1,051,768)
Mortgage servicing rights resulting from loan sales		—		—		1,464,887		1,464,887
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		67,629		—		—		67,629
Other factors		14,168		183,661		(678,166)		(480,337)
		81,797		183,661		(678,166)		(412,708)
Transfers:
From Level 3 to Level 2		(1,888,043)		—		—		(1,888,043)
To loans held for sale		—		(430,603)		—		(430,603)
Balance, June 30, 2025	$	510,913	$	142,153	$	9,531,249	$	10,184,315
Changes in fair value recognized during the period relating to assets still held at June 30, 2025	$	28,691	$	142,153	$	(678,166)	$	(507,322)

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


	Six months ended
Liabilities	June 30, 2025
	(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2024	$	1,683
Changes in fair value included in income		(40)
Balance, June 30, 2025	$	1,643
Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2025	$	(40)


	Six months ended June 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		1,859,941		228,512		—		2,088,453
Capitalization of interest and servicing advances		25,336		—		—		25,336
Sales and repayments		(740,987)		—		—		(740,987)
Mortgage servicing rights resulting from loan sales		—		—		953,727		953,727
Changes in fair value included in income arising from:
Changes in instrument-specific credit risk		45,153		—		—		45,153
Other factors		(1,108)		31,066		(129,997)		(100,039)
		44,045		31,066		(129,997)		(54,886)
Transfers:
From Level 3 to Level 2		(1,266,823)		—		—		(1,266,823)
To loans held for sale		—		(280,419)		—		(280,419)
Balance, June 30, 2024	$	400,076	$	68,752	$	7,923,078	$	8,391,906
Changes in fair value recognized during the period relating to assets still held at June 30, 2024	$	20,917	$	68,752	$	(129,997)	$	(40,328)

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


Liabilities	Six months ended June 30, 2024
	(in thousands)
Mortgage servicing liabilities:
Balance, December 31, 2023	$	1,805
Changes in fair value included in income		(97)
Balance, June 30, 2024	$	1,708
Changes in fair value recognized during the period relating to liabilities still outstanding at June 30, 2024	$	(97)

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


	June 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	$	6,929,950	$	6,734,644	$	195,306	$	8,187,561	$	8,089,532	$	98,029
90 days or more delinquent:
Not in foreclosure		23,534		27,248		(3,714)		24,663		27,901		(3,238)
In foreclosure		7,740		21,348		(13,608)		5,244		11,481		(6,237)
	$	6,961,224	$	6,783,240	$	177,984	$	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 June 30,				Six months ended June 30,
	2025		2024		2025		2024

	(in thousands)
Real estate acquired in settlement of loans	$	(367)	$	(685)	$	(1,272)	$	(1,663)

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


	June 30, 2025	December 31, 2024

	(Fair value, unpaid principal balance of underlying
	loans and effect on fair value amounts in thousands)
Fair value	$ 9,531,249	$ 8,744,528
Underlying loan characteristics:
Unpaid principal balance	$ 463,132,127	$ 426,055,220
Weighted average note interest rate	4.7%	4.5%
Weighted average servicing fee rate (in basis points)	39	38
Key inputs (1):
Annual total prepayment speed (2):
Range	6.2% – 19.0%	5.9% – 17.7%
Weighted average	8.9%	7.8%
Equivalent average life (in years):
Range	2.6 – 8.8	2.7 – 9.1
Weighted average	8.1	8.4
Effect on fair value of (3):
5% adverse change	($155,827)	($126,224)
10% adverse change	($306,286)	($248,349)
20% adverse change	($592,174)	($481,100)
Pricing spread (4):
Range	4.9% – 11.4%	5.0% – 11.3%
Weighted average	6.0%	6.2%
Effect on fair value of (3):
5% adverse change	($121,678)	($113,419)
10% adverse change	($240,330)	($223,960)
20% adverse change	($468,962)	($436,805)
Per-loan annual cost of servicing:
Range	$68 – $127	$68 – $130
Weighted average	$105	$105
Effect on fair value of (3):
5% adverse change	($51,524)	($48,830)
10% adverse change	($103,048)	($97,661)
20% adverse change	($206,097)	($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)	The Company applies a pricing spread to a derived Treasury yield curve for purposes of discounting cash flows relating to MSRs.

Fair Value

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



	June 30, 2025		December 31, 2024
Fair value (in thousands) (1)	$	142,153	$	33,565
Committed amount (in thousands)	$	10,998,207	$	7,801,677
Key inputs (2):
Pull-through rate:
Range		29.8% – 100%		29.8% – 100%
Weighted average		87.0%		88.2%
Mortgage servicing rights fair value expressed as:
Servicing fee multiple:
Range		1.0 – 8.6		1.0 – 8.6
Weighted average		5.3		5.4
Percentage of loan commitment amount:
Range		0.3% – 4.5%		0.3% – 4.6%
Weighted average		2.1%		2.4%

(1)	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



	June 30, 2025		December 31, 2024
Fair value (in thousands)	$	510,913	$	434,053
Key inputs (1):
Discount rate:
Range		5.8% – 9.3%		6.5% – 9.3%
Weighted average		6.5%		7.0%
Twelve-month projected housing price index change:
Range		1.7% – 2.2%		2.2% – 2.8%
Weighted average		2.0%		2.3%
Voluntary prepayment/resale speed (2):
Range		6.3% – 50.3%		6.4% – 34.4%
Weighted average		29.4%		22.0%
Total prepayment/resale speed (3):
Range		6.4% – 57.3%		6.5% – 41.3%
Weighted average		32.3%		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.