Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table presents 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:

	December 31, 2022
	Total Fair Value		Recurring Fair Value Measurements
Fair Value - Recurring Basis			Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	893	$	—	$	819	$	74
Mortgage servicing rights	6,654		—		—		6,654
Equity investments	47		2		—		45
Derivative financial instruments:
IRLCs	22		—		—		22
Forward MBS trades	8		—		8		—
LPCs	1		—		—		1
Liabilities
Derivative financial instruments:
Forward MBS trades	9		—		9		—
LPCs	1		—		—		1
Treasury futures	14		—		14		—
Mortgage servicing rights financing	19		—		—		19
Excess spread financing	509		—		—		509

	December 31, 2021
	Total Fair Value		Recurring Fair Value Measurements
Fair Value - Recurring Basis			Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	4,381	$	—	$	4,381	$	—
Mortgage servicing rights	4,223		—		—		4,223
Equity investments	63		9		—		54
Derivative financial instruments:
IRLCs	134		—		—		134
Forward MBS trades	7		—		7		—
LPCs	3		—		—		3
Liabilities
Derivative financial instruments:
Forward MBS trades	8		—		8		—
LPCs	2		—		—		2
Swap futures	6		—		6		—
Mortgage servicing rights financing	10		—		—		10
Excess spread financing	768		—		—		768

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:

	Year Ended December 31, 2022
	Assets								Liabilities
Fair Value - Level 3 Assets and Liabilities	Mortgage servicing rights		Mortgage loans held for sale		Equity investments		IRLCs		Excess spread financing		Mortgage servicing rights financing
Balance - beginning of year	$	4,223	$	76	$	54	$	134	$	768	$	10
Changes in fair value included in earnings	549		(3)		(9)		(112)		133		9
Purchases/additions (1)	1,595		130		—		—		—		—
Issuances	554		—		—		—		—		—
Sales/dispositions (1)	(294)		(124)		—		—		—		—
Repayments	—		(2)		—		—		(293)		—
Settlements	—		—		—		—		(99)		—
Other changes	27		(3)		—		—		—		—
Balance - end of year	$	6,654	$	74	$	45	$	22	$	509	$	19

	Year Ended December 31, 2021
	Assets								Liabilities
Fair Value - Level 3 Assets and Liabilities	Mortgage servicing rights		Equity investments		IRLCs		LPCs		Excess spread financing		Mortgage servicing rights financing
Balance - beginning of year	$	2,703	$	—	$	414	$	38	$	934	$	33
Changes in fair value included in earnings	(506)		(1)		(280)		(35)		(10)		(23)
Purchases	948		—		—		—		—		—
Equity consideration received	—		55		—		—		—		—
Issuances	1,077		—		—		—		—		—
Sales	(55)		—		—		—		—		—
Repayments	—		—		—		—		(4)		—
Settlements	—		—		—		—		(152)		—
Other changes	56		—		—		—		—		—
Balance - end of year	$	4,223	$	54	$	134	$	3	$	768	$	10

(1)Additions for mortgages loans held for sale include loans that are purchased or transferred in. Dispositions for mortgage loans held for sales include loans that are sold or transferred out.

Fair Value Measurement Inputs and Valuation Techniques

The tables below present the quantitative information for significant unobservable inputs used in the fair value measurement of Level 3 assets and liabilities:

	December 31, 2022									December 31, 2021
	Range						Weighted Average			Range						Weighted Average
Level 3 Inputs	Min			Max						Min			Max
MSR(1)
Discount rate	10.4		%	13.7		%	11.4		%	9.5		%	13.7		%	10.9		%
Prepayment speed	6.3		%	12.2		%	7.2		%	11.7		%	16.4		%	13.0		%
Cost to service per loan(2)	$	54		$	155		$	80		$	59		$	168		$	77
Average life(3)							8.1 years									5.8 years
Mortgage loans held for sale
Market pricing	37.3		%	114.7		%	77.4		%	N/A			N/A			N/A
IRLCs
Value of servicing (reflected as a percentage of loan commitment)	(0.6)		%	3.9		%	2.3		%	(0.7)		%	2.4		%	1.4		%
Excess spread financing
Discount rate	10.0		%	13.8		%	11.3		%	9.5		%	13.8		%	11.2		%
Prepayment speed	6.9		%	13.3		%	9.2		%	12.8		%	15.2		%	13.4		%
Average life(3)							6.6 years									5.4 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates	5.2		%	8.6		%	7.1		%	4.5		%	7.9		%	6.5		%
Annual advance recovery rates	15.9		%	20.6		%	17.3		%	19.2		%	22.0		%	21.3		%

(1)The inputs are weighted by investor.

(2)Presented in whole dollar amounts.

(3)Average life is included for informational purposes.

Fair Value, by Balance Sheet Grouping

The tables below present a summary of the carrying amount and estimated fair value of the Company’s financial instruments not carried at fair value:

	December 31, 2022
	Carrying Amount		Fair Value
Financial Instruments			Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	527	$	527	$	—	$	—
Restricted cash	175		175		—		—
Advances and other receivables, net	1,019		—		—		1,019
Loans subject to repurchase from Ginnie Mae	1,865		—		1,865		—
Financial liabilities
Unsecured senior notes, net	2,673		—		2,209		—
Advance and warehouse facilities, net	2,885		—		2,896		—
Liability for loans subject to repurchase from Ginnie Mae	1,865		—		1,865		—

	December 31, 2021
	Carrying Amount		Fair Value
Financial Instruments			Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	895	$	895	$	—	$	—
Restricted cash	146		146		—		—
Advances and other receivables, net	1,228		—		—		1,228
Loans subject to repurchase from Ginnie Mae	1,496		—		1,496		—
Financial liabilities
Unsecured senior notes, net	2,670		2,737		—		—
Advance and warehouse facilities, net	4,997		—		5,009		—
Liability for loans subject to repurchase from Ginnie Mae	1,496		—		1,496		—