v3.26.1
Fair Value Disclosures
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures
Fair value represents the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is determined using a fair value hierarchy established by GAAP, based on the inputs used to measure fair value. Level 1 inputs are unadjusted quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable and significant to the fair value. The Company applies the fair value hierarchy to certain assets and liabilities remeasured or disclosed at fair value on a recurring basis, including mortgage loans held for sale, derivative assets and liabilities, AFS debt securities, equity investments in common stock (“equity securities”) and senior unsecured notes, net.
The fair value of mortgage loans held for sale is based on either investor commitments or quoted secondary-market prices. Derivative assets and liabilities are associated with mandatory and best effort interest rate lock commitments (“IRLC”) and mortgage backed securities (“MBS”) used to hedge interest rate risk on certain of the IRLC. The fair values for IRLC are derived from market pricing for instruments with similar characteristics or forward sale commitment prices, as well as certain unobservable inputs such as estimated costs to originate the loans and the probability that the mortgage loan will fund within the terms of the IRLC, known as the pull-through rate. The Company estimates the fair value of forward sales of MBS contracts based on quoted MBS prices. As of June 30, 2026 and December 31, 2025, the total notional amount of mortgage loans locked and approved through IRLC totaled approximately $98.5 million and $59.0 million, respectively, and carried weighted-average interest rates of approximately 5.2% and 5.2%, respectively. As of June 30, 2026 and December 31, 2025, the total notional amount of MBS sales totaled approximately $160.0 million and $48.8 million, respectively, and carried a weighted-average interest rate of approximately 4.3% and 4.2%. As of June 30, 2026 and December 31, 2025, the aggregate unpaid principal amount of mortgage loans held for sale was $193.8 million and $199.5 million, respectively. Management believes that carrying the mortgage loans held for sale and the derivative instruments used to economically hedge them at fair value enhances financial reporting by reducing volatility in reported earnings.
The fair value of AFS debt securities is principally a function of current market conditions and is primarily determined based on quoted prices in markets that are not active or model inputs that are observable or unobservable. The fair value of the Senior Notes are based on recent trades or quoted market prices for debt of similar terms, including maturity, to achieve comparable yields. The fair value of equity securities is based on independent quoted market prices.
The fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, customer deposits and mortgage warehouse facilities, approximate their carrying amounts due to the short-term nature of these instruments. The fair value of the Credit Agreement approximates its carrying amount since it is subject to short-term floating interest rates that reflect current market rates. Fair value measurements may also be utilized on a nonrecurring basis, such as for the accounting for acquisitions or the impairment of long-lived assets and inventory. As of December 31, 2025, the inventories for which the carrying value was determined to not be recoverable had a fair value of $11.6 million. These values are a level 3 in the fair value hierarchy. There were no such inventories as of June 30, 2026.
The following table presents the carrying value and fair value of certain of the financial instruments as of the periods indicated (in thousands):
As of
June 30, 2026		As of
December 31, 2025
Fair Value Hierarchy
Carrying Value
Fair Value
Carrying Value
 Fair Value
Assets:
Mortgage loans held for saleLevel 2$198,131 $198,131 $205,089 $205,089 
IRLC
Level 32,018 2,018 1,449 1,449 
AFS debt securities
Level 2
24,319 24,319 30,704 30,704 
Equity securities
Level 1
31,120 31,120 4,877 4,877 
Liabilities:
MBS
Level 2
$360 $360 $128 $128 
Senior unsecured notes, netLevel 2592,342 604,917 591,060 610,944 
The following table presents additional information related to the AFS debt securities, including the largest major security type, corporate bonds, as of the periods indicated (in thousands):
As of
June 30, 2026		As of
December 31, 2025
Amortized cost
Fair value
Amortized cost
Fair value
Years to maturity:
Due in one year or less
$297 $303 $1,080 $1,166 
Due after one year through five years
5,330 5,404 8,314 8,461 
Due after five years through ten years
6,370 6,363 8,240 8,402 
Due after ten years
9,435 9,460 9,711 9,908 
Asset-backed securities
2,797 2,789 2,746 2,767 
Total AFS debt securities$24,229 $24,319 $30,091 $30,704 
AFS corporate bonds$11,968 $12,064 $16,384 $16,775