Fair Value Measurements (Tables)

6 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair value measurements of assets and liabilities on a recurring basis

The following tables summarize the Company’s assets and liabilities measured at fair value on a recurring basis at March 31, 2018 and September 30, 2017, and the changes in the fair value of the Level 3 assets during the six months ended March 31, 2018 and 2017.

		Fair Value at March 31, 2018
	Balance Sheet Location	Level 1		Level 2			Level 3		Total
		(In millions)
Debt securities collateralized by residential real estate	Other assets	$	—	$	—		$	8.8	$	8.8
Mortgage loans held for sale (a)	Mortgage loans held for sale	—		651.8			4.4		656.2
Derivatives not designated as hedging instruments (b):
Interest rate lock commitments	Other assets	—		18.2			—		18.2
Forward sales of MBS	Other liabilities	—		(1.8		)	—		(1.8		)
Best-efforts and mandatory commitments	Other liabilities	—		(0.4		)	—		(0.4		)

		Fair Value at September 30, 2017
	Balance Sheet Location	Level 1		Level 2		Level 3		Total
		(In millions)
Debt securities collateralized by residential real estate	Other assets	$	—	$	—	$	8.8	$	8.8
Mortgage loans held for sale (a)	Mortgage loans held for sale	—		580.2		5.6		585.8
Derivatives not designated as hedging instruments (b):
Interest rate lock commitments	Other assets	—		9.4		—		9.4
Forward sales of MBS	Other assets	—		1.1		—		1.1
Best-efforts and mandatory commitments	Other assets	—		0.6		—		0.6

	Level 3 Assets at Fair Value for the Six Months Ended March 31, 2018
	Balance at    September 30, 2017		Net realized and unrealized gains (losses)			Purchases		Sales and Settlements			Principal Reductions		Net transfers to (out of) Level 3		Balance at    March 31, 2018
	(In millions)
Debt securities collateralized by residential real estate	$	8.8	$	—		$	—	$	—		$	—	$	—	$	8.8
Mortgage loans held for sale (a)	5.6		0.6			—		(6.3		)	—		4.5		4.4
	Level 3 Assets at Fair Value for the Six Months Ended March 31, 2017
	Balance at    September 30, 2016		Net realized and unrealized gains (losses)			Purchases		Sales and Settlements			Principal Reductions		Net transfers to (out of) Level 3		Balance at    March 31, 2017
	(In millions)
Debt securities collateralized by residential real estate	$	—	$	—		$	3.9	$	—		$	—	$	—	$	3.9
Mortgage loans held for sale (a)	6.8		(0.1		)	—		(1.7		)	—		3.4		8.4

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(a) Mortgage loans held for sale are reflected at fair value. Interest income earned on mortgage loans held for sale is based on contractual interest rates and included in other income. Mortgage loans held for sale at March 31, 2018 and September 30, 2017 include $4.4 million and $5.6 million, respectively, of loans for which the Company elected the fair value option upon origination and did not sell into the secondary market. Mortgage loans held for sale totaling $4.5 million and $3.4 million were transferred to Level 3 during the six months ended March 31, 2018 and 2017, respectively, due to significant unobservable inputs used in determining the fair value of these loans. The fair value of these mortgage loans held for sale is generally calculated considering pricing in the secondary market and adjusted for the value of the underlying collateral, including interest rate risk, liquidity risk and prepayment risk. The Company plans to sell these loans as market conditions permit.

(b) Fair value measurements of these derivatives represent changes in fair value, as calculated by reference to quoted prices for similar assets, and are reflected in the balance sheet as other assets or accrued expenses and other liabilities. Changes in the fair value of these derivatives are included in revenues in the consolidated statements of operations.

Fair value measurements of assets on a non-recurring basis

The following table summarizes the Company’s assets measured at fair value on a nonrecurring basis at March 31, 2018 and September 30, 2017:

		Fair Value at    March 31, 2018				Fair Value at    September 30, 2017
	Balance Sheet Location	Level 2		Level 3		Level 2		Level 3
		(In millions)
Inventory held and used (a) (b)	Inventories	$	—	$	4.3	$	—	$	33.4
Inventory available for sale (a) (c)	Inventories	—		—		—		1.2
Mortgage loans held for sale (a) (d)	Mortgage loans held for sale	—		1.7		—		0.6
Other mortgage loans (a) (e)	Other assets	—		0.2		—		1.4

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(a) The fair values included in the table above represent only those assets whose carrying values were adjusted to fair value as a result of impairment in the respective period and were held at the end of the period.

(b) In performing its impairment analysis of communities, discount rates ranging from 10% to 18% were used in the periods presented.

(c) The fair value of inventory available for sale was determined based on recent offers received from outside third parties, comparable sales or actual contracts.

(d) These mortgage loans have some degree of impairment affecting their marketability. When available, quoted prices in the secondary market are used to determine fair value (Level 2); otherwise, a cash flow valuation model is used to determine fair value (Level 3).

(e) The fair value of other mortgage loans was determined based on the value of the underlying collateral.

Carrying values and fair values of financial assets and liabilities not reflected at fair value

For the financial assets and liabilities that the Company does not reflect at fair value, the following tables present both their respective carrying value and fair value at March 31, 2018 and September 30, 2017:

	Carrying Value		Fair Value at March 31, 2018
			Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	1,010.8	$	1,010.8	$	—	$	—	$	1,010.8
Restricted cash (a)	55.4		55.4		—		—		55.4
Notes payable (b) (c)	3,233.9		—		2,642.3		673.7		3,316.0

	Carrying Value		Fair Value at September 30, 2017
			Level 1		Level 2		Level 3		Total
	(In millions)
Cash and cash equivalents (a)	$	1,007.8	$	1,007.8	$	—	$	—	$	1,007.8
Restricted cash (a)	16.5		16.5		—		—		16.5
Notes payable (b) (c)	2,871.6		—		2,584.1		431.1		3,015.2

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(a) The fair values of cash, cash equivalents and restricted cash approximate their carrying values due to their short-term nature and are classified as Level 1 within the fair value hierarchy.

(b) The fair value of the senior notes is determined based on quoted prices, which is classified as Level 2 within the fair value hierarchy.

(c) The fair values of other secured notes and borrowings on the revolving credit facility and the mortgage repurchase facility approximate carrying value due to their short-term nature or floating interest rate terms, as applicable, and are classified as Level 3 within the fair value hierarchy.