UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____to _____

Commission File Number: 001-40003

loanDepot, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware			85-3948939
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
6561 Irvine Center Drive,	Irvine,	California	92618
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (888) 337-6888

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, $0.001 per value per share	LDI	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 10, 2023, 76,789,232 shares of the registrant’s Class A common stock, par value $0.001 per share, were outstanding. No shares of registrant’s Class B common stock were outstanding, 144,080,314 shares of registrant’s Class C common stock were outstanding and 97,026,671 shares of registrant’s Class D common stock were outstanding.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, including our Vision 2025 plan, technology developments, financing and investment plans, financial condition and liquidity, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” "seek," “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. You should read this report with the understanding that our actual future results may be materially different from what we expect.

Important factors that could cause actual results to differ materially from our expectations are included in Part I, Item 2 “Management's Discussion and Analysis of Financial Condition and Results of Operations” and Part II, Item 1A "Risk Factors" in this report as well as Part I, Item 1A “Risk Factors” and Part II, Item 7 “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our annual report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on March 16, 2023.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

loanDepot, Inc.

Table of Contents

PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022	1
Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022	2
Consolidated Statements of Equity for the three months ended March 31, 2023 and 2022	3
Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022	4
Notes to Consolidated Financial Statements	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3. Quantitative and Qualitative Disclosures About Market Risk	41
Item 4. Controls and Procedures
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3. Defaults Upon Senior Securities	45
Item 4. Mine Safety Disclosures	45
Item 5. Other Information	45
Item 6. Exhibits	45
Signatures	48

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

loanDepot, Inc.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

	March 31, 2023		December 31, 2022
ASSETS	(Unaudited)
Cash and cash equivalents	$	798,119	$	863,956
Restricted cash	90,084		116,545
Accounts receivable, net	99,381		145,279
Loans held for sale, at fair value (includes $506,808 and $497,574 pledged to creditors in securitization trusts at March 31, 2023 and December 31, 2022, respectively)	2,039,367		2,373,427
Derivative assets, at fair value	84,624		39,411
Servicing rights, at fair value (includes $553,236 and $544,729 pledged to creditors in securitization trusts at March 31, 2023 and December 31, 2022, respectively)	2,028,788		2,037,447
Trading securities, at fair value	95,561		94,243
Property and equipment, net	88,877		92,889
Operating lease right-of-use assets	35,362		35,668
Prepaid expenses and other assets	139,904		155,982
Loans eligible for repurchase	672,458		634,677
Investments in joint ventures	18,266		20,410
Total assets	$	6,190,791	$	6,609,934
LIABILITIES AND EQUITY
Warehouse and other lines of credit	$	1,830,319	$	2,146,602
Accounts payable, accrued expenses and other liabilities	449,641		488,696
Derivative liabilities, at fair value	35,662		67,492
Liability for loans eligible for repurchase	672,458		634,677
Operating lease liability	57,837		61,675
Debt obligations, net	2,303,712		2,289,319
Total liabilities	5,349,629		5,688,461
Commitments and contingencies (Note 14)
Class A common stock, $0.001 par value, 2,500,000,000 authorized, 77,170,094 and 74,277,152 issued at March 31, 2023 and December 31, 2022, respectively	$	77	$	74
Class B common stock, $0.001 par value, 2,500,000,000 authorized, none issued at March 31, 2023 and December 31, 2022, respectively	—		—
Class C common stock, $0.001 par value, 2,500,000,000 authorized, 144,983,025 and 145,693,119 issued at March 31, 2023 and December 31, 2022, respectively	145		146
Class D common stock, $0.001 par value, 2,500,000,000 authorized, 97,026,671 and 97,026,671 issued at March 31, 2023 and December 31, 2022, respectively	97		97
Preferred stock, $0.001 par value, 50,000,000 authorized, none issued at March 31, 2023 and December 31, 2022, respectively	—		—
Treasury stock at cost, 2,068,924 and 1,780,141 shares at March 31, 2023 and December 31, 2022, respectively	(13,853)		(13,282)
Additional paid-in capital	802,251		788,601
Retained deficit	(384,843)		(342,137)
Noncontrolling interest	437,288		487,974
Total equity	841,162		921,473
Total liabilities and equity	$	6,190,791	$	6,609,934

See accompanying notes to the unaudited consolidated financial statements.

1

loanDepot, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands except per share amounts)
(Unaudited)

	Three Months Ended March 31,
	2023		2022
REVENUES:
Interest income	$	27,958	$	52,965
Interest expense	(26,760)		(39,889)
Net interest income	1,198		13,076
Gain on origination and sale of loans, net	108,152		363,131
Origination income, net	12,016		59,073
Servicing fee income	118,961		111,059
Change in fair value of servicing rights, net	(52,806)		(68,383)
Other income	20,380		25,355
Total net revenues	207,901		503,311
EXPENSES:
Personnel expense	141,027		345,993
Marketing and advertising expense	35,914		101,513
Direct origination expense	17,378		53,157
General and administrative expense	56,134		49,748
Occupancy expense	6,081		9,396
Depreciation and amortization	10,026		10,545
Servicing expense	4,834		21,511
Other interest expense	43,090		14,393
Total expenses	314,484		606,256
Loss before income taxes	(106,583)		(102,945)
Income tax benefit	(14,862)		(11,627)
Net loss	(91,721)		(91,318)
Net loss attributable to noncontrolling interests	(48,814)		(56,577)
Net loss attributable to loanDepot, Inc.	$	(42,907)	$	(34,741)
Loss per share:
Basic	$	(0.25)	$	(0.25)
Diluted	$	(0.25)	$	(0.25)
Weighted average shares outstanding:
Basic	170,809,818		139,007,890
Diluted	170,809,818		139,007,890

See accompanying notes to the unaudited consolidated financial statements.

2

loanDepot, Inc.

CONSOLIDATED STATEMENTS OF EQUITY

(Dollars in thousands)

	Common stock outstanding			Common stock $						Treasury Shares		Additional paid-in capital		Retained Deficit		Non-controlling Interests		Total Equity
	Class A	Class C	Class D	Class A		Class C		Class D
Balance at December 31, 2021	36,466,936	172,729,168	100,822,084	$	38	$	173	$	101	$	(12,852)	$	565,073	$	(28,976)	$	1,105,803	$	1,629,360
Deferred taxes and other tax adjustments associated with the Reorganization and IPO	—	—	—	—		—		—		—		681		—		—		681
Net issuance of common shares under stock based compensation plans	7,133,482	(2,038,280)	(3,795,413)	7		(2)		(4)		(163)		89,479		—		(89,479)		(162)
Dividends to Class A and Class D shareholders ($0.08 per share)	—	—	—	—		—		—		—		—		(5,310)		(6,442)		(11,752)
Distributions to Class C shareholders	—	—	—	—		—		—		—		—		(6,338)		(7,665)		(14,003)
Stock-based compensation	—	—	—	—		—		—		—		1,034		—		1,275		2,309
Distributions for taxes on behalf of shareholders, net	—	—	—	—		—		—		—		—		(1,786)		(2,160)		(3,946)
Net loss	—	—	—	—		—		—		—		—		(34,741)		(56,577)		(91,318)
Balance at March 31, 2022	43,600,418	170,690,888	97,026,671	$	45	$	171	$	97	$	(13,015)	$	656,267	$	(77,151)	$	944,755	$	1,511,169
Balance at December 31, 2022	72,497,011	145,693,119	97,026,671	$	74	$	146	$	97	$	(13,282)	$	788,601	$	(342,137)	$	487,974	$	921,473
Deferred taxes and other tax adjustments related to conversions and exchanges	—	—	—	—		—		—		—		5,181		—		—		5,181
Net issuance of common stock under stock-based compensation plans	2,604,159	(710,094)	—	3		(1)		—		(571)		5,265		—		(4,767)		(71)
Forfeiture of accrued dividend equivalents on unvested Class A RSUs	—	—	—	—		—		—		—		—		9		12		21
Stock-based compensation	—	—	—	—		—		—		—		3,204				2,722		5,926
Refund of tax distributions, net	—	—	—	—		—		—		—		—		192		161		353
Net loss	—	—	—	—		—		—		—		—		(42,907)		(48,814)		(91,721)
Balance at March 31, 2023	75,101,170	144,983,025	97,026,671	$	77	$	145	$	97	$	(13,853)	$	802,251	$	(384,843)	$	437,288	$	841,162

See accompanying notes to the unaudited consolidated financial statements.

3

loanDepot, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(91,721)	$	(91,318)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization expense	10,026		10,545
Amortization of operating lease right-of-use asset	3,386		5,597
Amortization of debt issuance costs	1,855		4,195
Gain on origination and sale of loans	(43,016)		(442,771)
Gain on sale of servicing rights	(191)		(20,134)
Fair value change in trading securities	(2,486)		7,592
Provision for loss obligation on sold loans and servicing rights	9,725		23,347
Decrease in provision for deferred income taxes	(14,874)		(14,269)
Fair value change in derivative assets	(25,763)		(63,176)
Fair value change in derivative liabilities	(31,830)		75,569
Premium paid on derivatives	(19,450)		(93,256)
Fair value change in loans held for sale	(38,751)		225,137
Fair value change in servicing rights	56,025		(121,874)
Stock-based compensation expense	5,926		2,309
Originations of loans	(4,891,247)		(21,373,625)
Proceeds from sales of loans	5,366,139		22,948,300
Proceeds from principal payments	15,097		60,287
Payments to investors for loan repurchases	(148,589)		(141,146)
Gain on extinguishment of debt	—		(10,528)
Disbursements from joint ventures	3,919		922
Changes in operating assets and liabilities:
Other changes in operating assets and liabilities	41,172		156,736
Net cash provided by operating activities	205,352		1,148,439
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(6,275)		(14,295)
Proceeds from sale of servicing rights	12,029		303,777
Cash flows received on trading securities	1,168		1,894
Investments in joint ventures	—		(350)
Net cash flows provided by investing activities	6,922		291,026

See accompanying notes to the unaudited consolidated financial statements.

4

loanDepot, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

(Dollars in thousands)

(Unaudited)

	Three Months Ended March 31,
	2023		2022
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings on warehouse and other lines of credit	$	4,566,739	$	24,542,427
Repayment of borrowings on warehouse and other lines of credit	(4,883,022)		(26,192,719)
Proceeds from debt obligations	19,067		1,131,952
Payments on debt obligations	(6,108)		(800,092)
Payments of debt issuance costs	(14)		(3,402)
Treasury stock purchased to net settle and withhold taxes on vested shares	(570)		(162)
Dividends and shareholder distributions	(664)		(30,230)
Net cash used in financing activities	(304,572)		(1,352,226)
Net change in cash and cash equivalents and restricted cash	(92,298)		87,239
Cash and cash equivalents and restricted cash at beginning of the period	980,501		620,596
Cash and cash equivalents and restricted cash at end of the period	$	888,203	$	707,835
SUPPLEMENTAL DISCLOSURES:
Cash paid (received) during the period for:
Interest	$	57,822	$	51,080
Income taxes	(3,474)		5,858
Supplemental disclosure of noncash investing and financing activities
Operating leases right-of-use assets obtained in exchange for lease liabilities	$	2,734	$	2,768
Trading securities retained in securitizations	—		30,076

See accompanying notes to the unaudited consolidated financial statements.

5

loanDepot, Inc.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

($ are in thousands, unless otherwise indicated)

(Unaudited)

NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements were prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation were included. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report of loanDepot, Inc. on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”).

Nature of Operations

loanDepot, Inc. was incorporated in Delaware on November 6, 2020 to facilitate the initial public offering (“IPO”) of its Class A common stock and related transactions in order to carry on the business of LD Holdings Group LLC (“LD Holdings”) and its consolidated subsidiaries. loanDepot, Inc.’s common stock began trading on the New York Stock Exchange on February 11, 2021 under the ticker symbol “LDI.” loanDepot, Inc. is a holding company and its sole material asset is its equity interest in LD Holdings. As of March 31, 2023 the consolidated subsidiaries of LD Holdings included loanDepot.com, LLC, (“LDLLC”), Artemis Management LLC (“ART”), LD Settlement Services, LLC (“LDSS”), mello Holdings, LLC (“Mello”), and mello Credit Strategies LLC (“MCS”).

The Company engages in the originating, financing, selling, and servicing of residential mortgage loans, and engages in title, escrow, and settlement services for mortgage loan transactions. The Company derives income primarily from gains on the origination and sale of loans to investors, income from loan servicing, and fees charged for settlement services related to the origination and sale of loans.

Summary of Significant Accounting Policies

Our accounting policies are described below and in Note 1- Description of Business and Summary of Significant Accounting Policies, of our audited consolidated financial statements included in our 2022 Form 10-K.

Consolidation and Basis of Presentation

The Company's consolidated financial statements are prepared in accordance with GAAP as codified in the FASB’s Accounting Standards Codification (“ASC” or the “Codification”). In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year.

loanDepot, Inc. is a holding company, its sole material asset is its equity interest in LD Holdings and as the sole managing member of LD Holdings, loanDepot, Inc. indirectly operates and controls all of LD Holdings’ business and affairs. LD Holdings is also a holding company and has no material assets other than its equity interests in its direct subsidiaries consisting of a 99.99% ownership in LDLLC (the majority asset of the group), and 100% equity ownership in ART, LDSS, Mello, and MCS. The financial results of LD Holdings and its subsidiaries are consolidated with loanDepot, Inc., and the consolidated net earnings or loss are allocated to noncontrolling interest to reflect the entitlement of certain members that still hold Class A holdings units (“Holdco Units”) and Class C common stock, (“Continuing LLC Members”) as of the periods presented.

The accompanying consolidated financial statements include all of the assets, liabilities, and results of operations of the Company and consolidated variable interest entities (“VIEs”) in which the Company is the primary beneficiary. VIEs are entities that have a total equity investment at risk that is insufficient to permit the entity to finance its activities without additional subordinated financial support, whose equity investors at risk lack the ability to control the entity's activities, or is structured with non-substantive voting rights. The Company evaluates its associations with VIEs, both at inception and when

6

there is a change in circumstance that requires reconsideration, to determine if the Company is the primary beneficiary and consolidation is required. A primary beneficiary is defined as a variable interest holder that has a controlling financial interest. A controlling financial interest requires both: (a) the power to direct the activities that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or receive benefits of a VIE that could potentially be significant to the VIE. The Company has not provided financial or other support during the periods presented to any VIE that it was not previously contractually required to provide. Other entities that the Company does not consolidate, but for which it has significant influence over operating and financial policies, are accounted for using the equity method. All intercompany accounts and transactions have been eliminated in consolidation.

The Company has evaluated subsequent events for recognition or disclosure through the date of this report and has not identified any recordable or disclosable events that were not already reported in these consolidated financial statements or notes thereto.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Management has made significant estimates in certain areas, including determining the fair value of loans held for sale, servicing rights, derivative assets and derivative liabilities, trading securities, awards granted under the incentive equity plan, determining the loan loss obligation on sold loans and MSRs. Actual results could differ from those estimates.

Concentration of Risk

The Company has concentrated its credit risk for cash by maintaining deposits in several financial institutions, which may at times exceed amounts covered by insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk related to cash.

Due to the nature of the mortgage lending industry, changes in interest rates may significantly impact revenue from originating mortgages and subsequent sales of loans to investors, which are the primary source of income for the Company. The Company originates mortgage loans on property located throughout the United States, with loans originated for property located in California totaling approximately 17% of total loan originations for the three months ended March 31, 2023.

The Company sells mortgage loans to various third-party investors. Three investors accounted for 11%, 29%, and 33% of the Company’s loan sales for the three months ended March 31, 2023. No other investors accounted for more than 5% of the loan sales for the three months ended March 31, 2023.

The Company funds loans through warehouse and other lines of credit. As of March 31, 2023, 17% and 12% of the Company's warehouse lines were payable to two separate lenders.

NOTE 2 – FAIR VALUE

The Company's consolidated financial statements include assets and liabilities that are measured based on their estimated fair values. Refer to Note 1 - Description of Business, Presentation and Summary of Significant Accounting Policies in the 2022 Form 10-K for information on the fair value hierarchy, valuation methodologies, and key inputs used to measure financial assets and liabilities recorded at fair value, as well as methods and assumptions used to estimate fair value disclosures for financial instruments not recorded at fair value in their entirety on a recurring basis.

The following tables present the carrying amount and estimated fair value of financial instruments included in the consolidated financial statements.

7

	March 31, 2023
	Carrying Amount		Estimated Fair Value
			Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	798,119	$	798,119	$	—	$	—
Restricted cash	90,084		90,084		—		—
Loans held for sale, at fair value	2,039,367		—		2,039,367		—
Derivative assets, at fair value	84,624		10,008		13,597		61,019
Servicing rights, at fair value	2,028,788		—		—		2,028,788
Trading securities, at fair value	95,561		—		95,561		—
Loans eligible for repurchase	672,458		—		672,458		—
Liabilities
Warehouse and other lines of credit	$	1,830,319	$	—	$	1,830,319	$	—
Derivative liabilities, at fair value	35,662		5,166		28,199		2,297
Servicing rights, at fair value	12,220		—		—		12,220
Debt obligations:
Secured credit facilities	1,111,366		—		1,111,812		—
Term Notes	199,791		—		200,000		—
Senior Notes	992,555		—		554,723		—
Liability for loans eligible for repurchase	672,458		—		672,458		—

	December 31, 2022
	Carrying Amount		Estimated Fair Value
			Level 1		Level 2		Level 3
Assets
Cash and cash equivalents	$	863,956	$	863,956	$	—	$	—
Restricted cash	116,545		116,545		—		—
Loans held for sale, at fair value	2,373,427		—		2,373,427		—
Derivative assets, at fair value	39,411		—		10,037		29,374
Servicing rights, at fair value	2,037,447		—		—		2,037,447
Trading securities, at fair value	94,243		—		94,243		—
Loans eligible for repurchase	634,677		—		634,677		—
Liabilities
Warehouse and other lines of credit	$	2,146,602	$	—	$	2,146,602	$	—
Derivative liabilities, at fair value	67,492		18,226		43,482		5,784
Servicing rights, at fair value	12,311		—		—		12,311
Debt obligations:
Secured credit facilities	1,097,831		—		1,098,853		—
Term Notes	199,666		—		200,000		—
Senior Notes	991,822		—		645,495		—
Liability for loans eligible for repurchase	634,677		—		634,677		—

8

Financial Statement Items Measured at Fair Value on a Recurring Basis

The following tables presents the Company’s assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy as of the dates indicated.

	March 31, 2023
	Level 1		Level 2		Level 3		Total
Fair value through net income:
Assets:
Loans held for sale	$	—	$	2,039,367	$	—	$	2,039,367
Trading securities	—		95,561		—		95,561
Derivative assets:
Interest rate lock commitments	—		—		61,019		61,019
Forward sale contracts	—		10,977		—		10,977
Interest rate swap futures	10,008		—		—		10,008
MBS put options	—		2,620		—		2,620
Servicing rights	—		—		2,028,788		2,028,788
Total assets at fair value	$	10,008	$	2,148,525	$	2,089,807	$	4,248,340
Liabilities:
Derivative liabilities:
Interest rate lock commitments	$	—	$	—	$	2,297	$	2,297
Forward sale contracts	—		28,199		—		28,199
Put options on treasuries	5,166		—		—		5,166
Servicing rights	—		—		12,220		12,220
Total liabilities at fair value	$	5,166	$	28,199	$	14,517	$	47,882

	December 31, 2022
	Level 1		Level 2		Level 3		Total
Fair value through net income:
Assets:
Loans held for sale	$	—	$	2,373,427	$	—	$	2,373,427
Trading securities	—		94,243		—		94,243
Derivative assets:
Interest rate lock commitments	—		—		29,374		29,374
Forward sale contracts	—		6,676		—		6,676
MBS put options	—		3,361		—		3,361
Servicing rights	—		—		2,037,447		2,037,447
Total assets at fair value	$	—	$	2,477,707	$	2,066,821	$	4,544,528
Liabilities:
Derivative liabilities:
Interest rate lock commitments	$	—	$	—	$	5,784	$	5,784
Forward sale contracts	—		43,482		—		43,482
Put options on treasuries	10,831		—		—		10,831
Interest rate swap futures	7,395		—		—		7,395
Servicing rights	—		—		12,311		12,311
Total liabilities at fair value	$	18,226	$	43,482	$	18,095	$	79,803

9

The following presents the changes in the Company’s assets and liabilities that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months Ended March 31, 2023
	IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	23,590	$	2,025,136
Total net gains or losses included in earnings (realized and unrealized)	97,184		3,461
Sales and settlements
Sales			(12,029)
Settlements (1)	(43,664)		—
Transfers of IRLCs to closed loans	(18,388)		—
Balance at end of period	$	58,722	$	2,016,568

(1)Funded amount for IRLCs.

	Three Months Ended March 31, 2022
	IRLCs, net		Servicing Rights, net
Balance at beginning of period	$	180,620	$	1,999,402