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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The following table presents the estimated carrying amount and fair value of the Company’s financial instruments and other assets and liabilities measured at fair value on a recurring basis:
 
March 31, 2020
 
 
 
Recurring Fair Value Measurements
Fair value - Recurring basis
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
$
3,922

 
$
—

 
$
3,922

 
$
—

Forward mortgage servicing rights
3,109

 
—

 
—

 
3,109

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
263

 
—

 
263

 
—

Forward MBS trades
6

 
—

 
6

 
—

LPCs
25

 
—

 
25

 
—

Total assets
$
7,325

 
$
—

 
$
4,216

 
$
3,109

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
Forward MBS trades
$
223

 
$
—

 
$
223

 
$
—

Mortgage servicing rights financing
43

 
—

 
—

 
43

Excess spread financing
1,242

 
—

 
—

 
1,242

Total liabilities
$
1,508

 
$
—

 
$
223

 
$
1,285


 
December 31, 2019
 
 
 
Recurring Fair Value Measurements
Fair value - Recurring basis
Total Fair Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Mortgage loans held for sale
$
4,077

 
$
—

 
$
4,077

 
$
—

Forward mortgage servicing rights
3,496

 
—

 
—

 
3,496

Derivative financial instruments
 
 
 
 
 
 
 
IRLCs
135

 
—

 
135

 
—

Forward MBS trades
7

 
—

 
7

 
—

LPCs
12

 
—

 
12

 
—

Total assets
$
7,727

 
$
—

 
$
4,231

 
$
3,496

Liabilities
 
 
 
 
 
 
 
Derivative financial instruments
 
 
 
 
 
 
 
Forward MBS trades
$
12

 
$
—

 
$
12

 
$
—

LPCs
3

 
—

 
3

 
—

Mortgage servicing rights financing
37

 
—

 
—

 
37

Excess spread financing
1,311

 
—

 
—

 
1,311

Total liabilities
$
1,363

 
$
—

 
$
15

 
$
1,348
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The tables below present a reconciliation for all of the Company’s Level 3 assets and liabilities measured at fair value on a recurring basis:
 
Three Months Ended March 31, 2020
 
Assets
 
Liabilities
Fair value - Level 3 assets and liabilities
Mortgage servicing rights
 
Excess spread financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
3,496

 
$
1,311

 
$
37

Total gains or losses included in earnings
(534
)
 
(35
)
 
6

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
Purchases
24

 
—

 
—

Issuances
123

 
24

 
—

Settlements and repayments
—

 
(58
)
 
—

Balance - end of period
$
3,109

 
$
1,242

 
$
43


 
Three Months Ended March 31, 2019
 
Assets
 
Liabilities
Fair value - Level 3 assets and liabilities
Mortgage servicing rights
 
Excess spread financing
 
Mortgage servicing rights financing
Balance - beginning of period
$
3,665

 
$
1,184

 
$
32

Total gains or losses included in earnings
(399
)
 
(69
)
 
2

Purchases, issuances, sales, repayments and settlements
 
 
 
 
 
Purchases
409

 
—

 
—

Issuances
66

 
245

 
—

Sales
(260
)
 
—

 
—

Settlements and repayments
—

 
(51
)
 
—

Balance - end of period
$
3,481

 
$
1,309

 
$
34
Schedule of Fair Value, by Balance Sheet Grouping
The tables below present a summary of the estimated carrying amount and fair value of the Company’s financial instruments:
 
March 31, 2020
 
Carrying
Amount
 
Fair Value
Financial instruments
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
579

 
$
579

 
$
—

 
$
—

Restricted cash
266

 
266

 
—

 
—

Advances and other receivables, net
685

 
—

 
—

 
685

Reverse mortgage interests, net
5,955

 
—

 
—

 
6,015

Mortgage loans held for sale
3,922

 
—

 
3,922

 
—

Derivative financial instruments
294

 
—

 
294

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes(1)
2,259

 
2,055

 
—

 
—

Advance facilities(1)
489

 
—

 
489

 
—

Warehouse facilities(1)
4,551

 
—

 
4,551

 
—

Mortgage servicing rights financing liability
43

 
—

 
—

 
43

Excess spread financing
1,242

 
—

 
—

 
1,242

Derivative financial instruments
223

 
—

 
223

 
—

Participating interest financing(1)
4,056

 
—

 
—

 
4,056

HECM Securitization (HMBS)(1)
 
 
 
 
 
 
 
Trust 2019-2
295

 
—

 
—

 
295

Trust 2019-1
268

 
—

 
—

 
268

Trust 2018-3
189

 
—

 
—

 
189

Trust 2018-2
137

 
—

 
—

 
137



(1) 
The amounts are presented net of unamortized debt issuance costs, premium and discount.

 
December 31, 2019
 
Carrying
Amount
 
Fair Value
Financial instruments
Level 1
 
Level 2
 
Level 3
Financial assets
 
 
 
 
 
 
 
Cash and cash equivalents
$
329

 
$
329

 
$
—

 
$
—

Restricted cash
283

 
283

 
—

 
—

Advances and other receivables, net
988

 
—

 
—

 
988

Reverse mortgage interests, net
6,279

 
—

 
—

 
6,318

Mortgage loans held for sale
4,077

 
—

 
4,077

 
—

Derivative financial instruments
153

 
—

 
153

 
—

Financial liabilities
 
 
 
 
 
 
 
Unsecured senior notes(1)
2,366

 
2,505

 
—

 
—

Advance facilities
422

 
—

 
422

 
—

Warehouse facilities(1)
4,575

 
—

 
4,575

 
—

Mortgage servicing rights financing liability
37

 
—

 
—

 
37

Excess spread financing
1,311

 
—

 
—

 
1,311

Derivative financial instruments
15

 
—

 
15

 
—

Participating interest financing(1)
4,299

 
—

 
—

 
4,299

HECM Securitization (HMBS)(1)
 
 
 
 
 
 
 
Trust 2019-2
331

 
—

 
—

 
331

Trust 2019-1
300

 
—

 
—

 
300

Trust 2018-3
208

 
—

 
—

 
208

Trust 2018-2
148

 
—

 
—

 
148


(1) 
The amounts are presented net of unamortized debt issuance costs, premium and discount.