Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent EventsTexas Capital Warehouse Credit Facility—On October 5, 2020, we amended our warehouse credit facility with Texas Capital to provide that borrowings under the facility will generally bear interest at a rate equal

to the greater of (i) the rate of interest accruing on the outstanding principal balance of a mortgage loan minus 0.25% or (ii) 3.35%.

Convertible Senior Notes due 2025—On October 20, 2020, we issued $661,250 aggregate principal amount of convertible senior notes due 2025 (our "2025 notes"). Our proceeds from the issuance, after deducting the initial purchaser's discount but before estimated offering expenses payable by us, was $648,025. The notes are our general unsecured, senior obligations. The notes will not bear regular cash interest, and the principal amount will not accrete. The notes will mature on October 15, 2025, unless earlier converted, redeemed or repurchased. As of the date of this report, no conversion events have occurred. We will settle conversions of the notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election.

Repurchases of a Portion of Our 2023 Notes—Following our issuance of our 2025 notes, we repurchased and retired $116,914 aggregate principal amount of our 2023 notes, and paid accrued and unpaid interest thereon, using (i) $107,365 of the proceeds from our 2025 notes issuance and (ii) 2,056,180 shares of our common stock.

Western Alliance Warehouse Credit Facility—On October 23, 2020, we amended our warehouse credit facility with Western Alliance to provide that borrowings under the facility will generally bear interest at a rate equal to the greater of (i) one-month LIBOR plus 2.00% or (ii) 3.25%.

Fair Housing Act Lawsuit—On October 28, 2020, a group of ten organizations filed a complaint against us in the U.S. District Court for the Western District of Washington. The complaint alleges that certain of our business policies and practices violate certain provisions of the Fair Housing Act. The plaintiffs allege that these policies and practices (i) have the effect of our services being unavailable in predominantly non-white communities on a more frequent basis than predominantly white communities and (ii) are unnecessary to achieve a valid interest or legitimate objective. The complaint focuses on the following policies and practices, as alleged by the plaintiffs: (i) a home's price must exceed a certain dollar amount before we offer service through one of our lead agents or partner agents and (ii) our services and pricing structures are available only for homes serviced by one of our lead agents and those same services and pricing structures may not be offered by one of our partner agents. Given the preliminary stage of this case and the claims and issues presented, we cannot estimate a range of reasonably possible losses.