Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value, assets and liabilities measured on recurring basis

The following tables present 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:

	June 30, 2020
			Recurring Fair Value Measurements
Fair value - Recurring basis	Total Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	3,179	$	—	$	3,179	$	—
Forward mortgage servicing rights	2,757		—		—		2,757
Derivative financial instruments
IRLCs	370		—		—		370
Forward MBS trades	3		—		3		—
LPCs	18		—		—		18
Total assets	$	6,327	$	—	$	3,182	$	3,145
Liabilities
Derivative financial instruments
Forward MBS trades	$	50	$	—	$	50	$	—
Mortgage servicing rights financing	49		—		—		49
Excess spread financing	1,124		—		—		1,124
Total liabilities	$	1,223	$	—	$	50	$	1,173

	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:

	Six Months Ended June 30, 2020
	Assets				Liabilities
Fair value - Level 3 assets and liabilities	Forward mortgage servicing rights		IRLCs		Excess spread financing		Mortgage servicing rights financing
Balance - beginning of period	$	3,496	$	135	$	1,311	$	37
Total gains or losses included in earnings	(1,012)		235		(101)		12
Purchases, issuances, sales, repayments and settlements
Purchases	24		—		—		—
Issuances	249		—		24		—
Settlements and repayments	—		—		(110)		—
Balance - end of period	$	2,757	$	370	$	1,124	$	49

	Six Months Ended June 30, 2019
	Assets		Liabilities
Fair value - Level 3 assets and liabilities	Forward 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	(724)		(74)		11
Purchases, issuances, sales, repayments and settlements
Purchases	689		—		—
Issuances	169		438		—
Sales	(294)		—		—
Settlements and repayments	—		(119)		—
Balance - end of period	$	3,505	$	1,429	$	43

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:

	June 30, 2020
	Carrying Amount		Fair Value
Financial instruments			Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	1,041	$	1,041	$	—	$	—
Restricted cash	260		260		—		—
Advances and other receivables, net	668		—		—		668
Reverse mortgage interests, net	5,709		—		—		5,736
Mortgage loans held for sale	3,179		—		3,179		—
Derivative financial instruments	391		—		3		388
Financial liabilities
Unsecured senior notes(1)	2,261		2,307		—		—
Advance facilities(1)	475		—		475		—
Warehouse facilities(1)	4,031		—		4,031		—
Mortgage servicing rights financing liability	49		—		—		49
Excess spread financing	1,124		—		—		1,124
Derivative financial instruments	50		—		50		—
Participating interest financing(1)	3,886		—		—		3,857
HECM Securitization (HMBS)(1)
Trust 2019-2	272		—		—		272
Trust 2019-1	243		—		—		243
Trust 2018-3	179		—		—		179
Trust 2018-2	127		—		—		127

⁽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(1)	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.