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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES
Derivative instruments utilized by the Company primarily include interest rate lock commitments, forward sale contracts, mortgage-backed securities (“MBS”) put options, put options on treasuries, and interest rate swap futures. Derivative financial instruments are recognized as assets or liabilities and are measured at fair value. The Company accounts for derivatives as free-standing derivatives and does not designate any derivative financial instruments for hedge accounting. All
derivative financial instruments are recognized on the consolidated balance sheets at fair value with changes in the fair values being reported in current period earnings. The Company does not use derivative financial instruments for purposes other than in support of its risk management activities. Refer to Note 1- Description of Business and Summary of Significant Accounting Policies and Note 2- Fair Value for further details on derivatives in the 2023 Form 10-K.

The following summarizes the Company’s outstanding derivative instruments:
Fair Value
NotionalBalance Sheet LocationAssetLiability
September 30, 2024:
Interest rate lock commitments $3,195,384 Derivative asset, at fair value$67,371 $— 
Interest rate lock commitments 456,514 Derivative liabilities, at fair value— 1,750 
Forward sale contracts 65,976 Derivative asset, at fair value1,066 — 
Forward sale contracts 2,909,773 Derivative liabilities, at fair value— 12,232 
Put options on treasuries — Derivative asset, at fair value— — 
Put options on treasuries 8,700 Derivative liabilities, at fair value— 2,693 
MBS put options 300,000 Derivative asset, at fair value210 — 
MBS put options — Derivative liabilities, at fair value— — 
Interest rate swap futures 3,060 Derivative asset, at fair value— — 
Interest rate swap futures — Derivative liabilities, at fair value— 5,468 
Total derivative financial instruments$68,647 $22,143 

Fair Value
NotionalBalance Sheet LocationAssetLiability
December 31, 2023:
Interest rate lock commitments $2,007,175 Derivative asset, at fair value$49,112 $— 
Interest rate lock commitments 163,161 Derivative liabilities, at fair value— 1,172 
Forward sale contracts 449,419 Derivative asset, at fair value16,610 — 
Forward sale contracts 2,234,930 Derivative liabilities, at fair value— 83,728 
Put options on treasuries — Derivative asset, at fair value— — 
Put options on treasuries 9,730 Derivative liabilities, at fair value— 62 
MBS put options200,000 Derivative asset, at fair value1,376 — 
MBS put options— Derivative liabilities, at fair value— — 
Interest rate swap futures 3,240 Derivative asset, at fair value26,476 — 
Interest rate swap futures — Derivative liabilities, at fair value— — 
Total derivative financial instruments$93,574 $84,962 

Because many of the Company’s current derivative agreements are not exchange-traded, the Company is exposed to credit loss in the event of nonperformance by the counterparty to the agreements. The Company controls this risk through credit monitoring procedures including financial analysis, dollar limits and other monitoring procedures. The notional amount of the contracts does not represent the Company’s exposure to credit loss.
The following summarizes the realized and unrealized net gains or losses on derivative financial instruments and the consolidated statements of operations line items where such gains and losses are included:
Three Months Ended
September 30,		Nine Months Ended
September 30,
Derivative instrumentStatements of Operations Location2024202320242023
Interest rate lock commitments, netGain on origination and sale of loans, net$15,874 $(25,021)$17,681 $437 
Forward sale contractsGain on origination and sale of loans, net(66,230)89,539 (56,487)90,585 
Interest rate swap futuresGain on origination and sale of loans, net(1,621)(4,689)(9,096)(11,748)
Put optionsGain on origination and sale of loans, net(5,848)2,097 364 2,454 
Forward sale contractsChange in fair value of servicing rights, net12,240 (9,044)(2,805)(17,471)
Interest rate swap futuresChange in fair value of servicing rights, net20,526 (49,808)(16,348)(58,581)
Put optionsChange in fair value of servicing rights, net4,858 (10,501)(4,723)(20,238)
Total realized and unrealized losses on derivative financial instruments
$(20,201)$(7,427)$(71,414)$(14,562)