Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The effective tax rate for operations was 29.1% and 25.2%, for the three and nine months ended September 30, 2024, and 21.7% and 22.3% for the three and nine months ended September 30, 2023, respectively. The effective tax rates differed from the statutory federal rate of 21% primarily due to state income taxes and nondeductible executive compensation.

The change in effective tax rate during the three and nine months ended September 30, 2024, as compared to 2023, is primarily attributable to the impact of bargain purchase gain related to Home Point Acquisition, and quarterly discrete tax items relative to income before taxes for the respective period, including the excess tax benefit from share-based compensation.