Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2023

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, 2023
	Total Fair Value		Recurring Fair Value Measurements
Fair Value - Recurring Basis			Level 1		Level 2		Level 3
Assets
Mortgage loans held for sale	$	927	$	—	$	846	$	81
Mortgage servicing rights	9,090		—		—		9,090
Equity investments	9		1		—		8
Derivative financial instruments:
Treasury futures	113		—		113		—
Forward MBS trades	22		—		22		—
IRLCs	21		—		—		21
LPCs	3		—		—		3
Liabilities
Derivative financial instruments:
Forward MBS trades	9		—		9		—
Mortgage servicing rights financing	29		—		—		29
Excess spread financing	437		—		—		437

	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:
Forward MBS trades	8		—		8		—
IRLCs	22		—		—		22
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

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, 2023
	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	$	6,654	$	74	$	45	$	22	$	509	$	19
Changes in fair value included in earnings	(483)		18		(37)		(1)		8		10
Purchases/additions(1)	3,189		180		—		—		—		—
Issuances	273		—		—		—		—		—
Sales/dispositions(1)	(573)		(189)		—		—		—		—
Repayments	—		(6)		—		—		(9)		—
Settlements	—		—		—		—		(71)		—
Other changes	30		4		—		—		—		—
Balance - end of year	$	9,090	$	81	$	8	$	21	$	437	$	29

	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

(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, 2023									December 31, 2022
	Range						Weighted Average			Range						Weighted Average
Level 3 Inputs	Min			Max						Min			Max
MSR(1)
Option adjusted spread(2)	6.9		%	12.3		%	8.0		%	N/A			N/A			N/A
Discount rate	N/A			N/A			N/A			10.4		%	13.7		%	11.4		%
Prepayment speed	6.8		%	9.3		%	7.5		%	6.3		%	12.2		%	7.2		%
Cost to service per loan(3)	$	56		$	160		$	80		$	54		$	155		$	80
Average life(4)							7.9 years									8.1 years
Mortgage loans held for sale
Market pricing	45.0		%	103.4		%	81.1		%	37.3		%	114.7		%	77.4		%
IRLCs
Value of servicing (reflected as a percentage of loan commitment)	1.1		%	3.5		%	1.9		%	(0.6)		%	3.9		%	2.3		%
Excess spread financing
Option adjusted spread(2)	7.0		%	12.3		%	8.8		%	N/A			N/A			N/A
Discount rate	N/A			N/A			N/A			10.0		%	13.8		%	11.3		%
Prepayment speed	7.7		%	9.1		%	8.4		%	6.9		%	13.3		%	9.2		%
Average life(4)							6.7 years									6.6 years
Mortgage servicing rights financing
Advance financing and counterparty fee rates	6.6		%	9.2		%	7.6		%	5.2		%	8.6		%	7.1		%
Annual advance recovery rates	12.2		%	14.8		%	13.0		%	15.9		%	20.6		%	17.3		%

(1)The inputs are weighted by investor.

(2)OAS represents incremental spread above a risk-free rate (one-month SOFR), which is an observable input. See discussion on methodology above.

(3)Presented in whole dollar amounts.

(4)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, 2023
	Carrying Amount		Fair Value
Financial Instruments			Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	571	$	571	$	—	$	—
Restricted cash	169		169		—		—
Advances and other receivables, net	996		—				996
Loans subject to repurchase from Ginnie Mae	966		—		966		—
Financial liabilities
Unsecured senior notes, net	3,151		—		3,056		—
Advance, warehouse and MSR facilities, net	4,302		—		4,318		—
Liability for loans subject to repurchase from Ginnie Mae	966		—		966		—

	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, warehouse and MSR facilities, net	2,885		—		2,896		—
Liability for loans subject to repurchase from Ginnie Mae	1,865		—		1,865		—