Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Assets and Liabilities Measured at Fair Value


			September 30,		December 31,
	Balance Sheet Classification	Hierarchy	2024		2023

Mortgage loans held for sale	Mortgage loans held for sale	Level 2	$	257,187	$	251,852
Mortgage loans held for investment at fair value ⁽¹⁾	Prepaid expenses and other assets	Level 3	$	24,032	$	21,041
Derivative assets	Prepaid expenses and other assets	Level 2	$	3,757	$	1,618
Mortgage servicing rights ⁽²⁾	Prepaid expenses and other assets	Level 3	$	34,523	$	30,932
Derivative liabilities	Accrued expenses and other liabilities	Level 2	$	1,088	$	5,291

⁽¹⁾The unobservable inputs used in the valuation of the mortgage loans held for investment at fair value include, among other items, the value of underlying collateral, from markets where there is little observable trading activity.

⁽²⁾The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 7.8%, 10.4%, and $0.073 per year per loan, respectively, as of September 30, 2024, and 8.6%, 10.3%, and $0.072 per year per loan, respectively, as of December 31, 2023. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement.

Schedule of Reconciliation of Level 3 Recurring at Fair Value


	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage servicing rights		2024		2023		2024		2023
Beginning of period	$	34,070	$	26,631	$	30,932	$	24,164
Originations		3,907		3,017		6,686		5,121
Settlements		(642)		(428)		(1,754)		(989)
Changes in fair value		(2,812)		1,273		(1,341)		2,197
End of period	$	34,523	$	30,493	$	34,523	$	30,493

	Three Months Ended September 30,				Nine Months Ended September 30,
Mortgage loans held-for-investment at fair value		2024		2023		2024		2023
Beginning of period	$	21,763	$	20,559	$	21,041	$	18,875
Transfers from loans held for sale		2,707		1,268		4,663		4,432
Settlements		(244)		(316)		(905)		(997)
Reduction in unpaid principal balance		(102)		(120)		(464)		(753)
Changes in fair value		(92)		(24)		(303)		(190)
End of period	$	24,032	$	21,367	$	24,032	$	21,367

Schedule of Carrying Values and Fair Values of Financial Instruments



		September 30, 2024				December 31, 2023

	Hierarchy	Carrying		Fair Value		Carrying		Fair Value
Cash and cash equivalents	Level 1	$	149,155	$	149,155	$	226,150	$	226,150
3.875% senior notes ⁽¹⁾⁽²⁾	Level 2	$	496,235	$	464,375	$	495,656	$	436,875
6.750% senior notes ⁽¹⁾⁽²⁾	Level 2	$	497,823	$	501,875	$	497,210	$	500,000
Revolving line of credit⁽³⁾	Level 2	$	414,000	$	414,000	$	—	$	—
Other financing obligations⁽³⁾⁽⁴⁾	Level 3	$	124,885	$	124,885	$	69,605	$	69,605
Mortgage repurchase facilities⁽³⁾	Level 2	$	247,214	$	247,214	$	239,298	$	239,298

⁽¹⁾Estimated fair value of the senior notes is based on recent trading activity in inactive markets.

⁽²⁾Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of September 30, 2024, these amounts totaled $3.8 million and $2.2 million for the 3.875% senior notes and 6.750% senior notes, respectively. As of December 31, 2023, these amounts totaled $4.3 million and $2.8 million for the 3.875% senior notes and 6.750% senior notes, respectively.

⁽³⁾Carrying amount approximates fair value due to short-term nature and/or interest rate terms.

⁽⁴⁾During the period ended September 30, 2024, other financing obligations included $14.5 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 5.0% to 8.0%, and $110.3 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 7.2% as of September 30, 2024. During the period ended December 31, 2023, other financing obligations included $24.7 million related to insurance premium notes and certain secured borrowings that generally bore interest rates ranging from 4.8% to 7.7%, and $44.9 million related to outstanding borrowings on the construction loan agreements that bore a weighted average interest rate of 7.4%.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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