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Financial Instruments
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Derivatives

Our primary market exposure is to interest rate risk, specifically U.S. treasury and mortgage interest rates, due to their impact on mortgage-related assets and commitments. We use forward sales commitments on whole loans and mortgage-backed securities to manage and reduce this risk. We do not have any derivative instruments designated as hedging instruments.

Forward Sales Commitments—We are exposed to interest rate and price risk on loans held for sale from the funding date until the date the loan is sold. Forward sales commitments on whole loans and mortgage-backed securities are used to fix the forward sales price that will be realized at the sale of each loan.
Interest Rate Lock Commitments—Interest rate lock commitments ("IRLCs") represent an agreement to extend credit to a mortgage loan applicant. We commit (subject to loan approval) to fund the loan at the specified rate, regardless of changes in market interest rates between the commitment date and the funding date. Outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of commitment through the loan funding date or expiration date. Loan commitments generally range between 30 and 90 days and the borrower is not obligated to obtain the loan. Therefore, IRLCs are subject to fallout risk, which occurs when approved borrowers choose not to close on the underlying loans. We review our commitment-to-closing ratio ("pull-through rate") as part of an estimate of the number of mortgage loans that will fund according to the IRLCs.

December 31,
Notional Amounts20212020
Forward sales commitments$70,550 $130,109 
IRLCs67,485 88,923 

The locations and amounts of gains (losses) recognized in revenue related to our derivatives are as follows:
Year Ended December 31,
InstrumentClassification202120202019
Forward sales commitmentsService revenue$518 $(184)$96 
IRLCsService revenue(641)1,342 176 

Fair Value of Financial Instruments

In May 2020, we purchased preferred stock of Matterport, Inc. ("Matterport"), then a privately held company. In July 2021, Matterport became a publicly traded company through a business combination transaction with a special purpose acquisition vehicle. In connection with the transaction, we received Matterport's publicly traded Class A common stock in exchange for the preferred stock that we owned. We previously recorded our investment at cost because the preferred stock did not have a readily determinable fair value, but upon receipt of the publicly traded common stock, we recorded our investment at fair value. The increase in value is recorded in other income (expense), net in our consolidated statements of comprehensive loss for the year ended December 31, 2021, and is included in adjustments to reconcile net loss to net cash used in operating activities, as a component of other, in our consolidated statement of cash flows for the year ended December 31, 2021. The balance is included in short-term investments on our consolidated balance sheets.
A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected on our consolidated balance sheets, is set forth below:
Balance at December 31, 2021Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant
Other Observable Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Assets
Cash equivalents
Money market funds$509,971 $509,971 $— $— 
Total cash equivalents509,971 509,971 — — 
Short-term investments
U.S. treasury securities16,718 16,718 — — 
Agency bonds11,906 11,906 — — 
Equity securities5,113 5,113 — — 
Loans held for sale35,759 — 35,759 — 
Prepaid expenses and other current assets
Forward sales commitments138 — 138 — 
IRLCs1,191 — — 1,191 
Total prepaid expenses and other current assets1,329 — 138 1,191 
Long-term investments
U.S. treasury securities54,828 54,828 — — 
Total assets$635,624 $598,536 $35,897 $1,191 
Liabilities
Accrued and other liabilities
Forward sales commitments$93 $— $93 $— 
IRLCs60 — — 60 
Total liabilities$153 $— $93 $60 

Balance at December 31, 2020Quoted Prices in Active Markets for Identical Assets
(Level 1)		Significant
Other Observable Inputs
(Level 2)		Significant
Unobservable Inputs
(Level 3)
Assets
Cash equivalents
        Money market funds$886,261 $886,261 $— $— 
U.S. treasury securities6,100 6,100 — — 
Total cash equivalents892,361 892,361 — — 
Short-term investments
   U.S. treasury securities131,561 131,561 — — 
Loans held for sale42,539 — 42,539 — 
Prepaid expenses and other current assets
Forward sales commitments34 — 34 — 
IRLCs1,781 — — 1,781 
Total prepaid expenses and other current assets1,815 — 34 1,781 
Long-term investments
Agency bonds11,922 11,922 — — 
Total assets$1,080,198 $1,035,844 $42,573 $1,781 
Liabilities
Accrued and other liabilities
Forward sales commitments$507 $— $507 $— 
IRLCs10 — — 10 
Total liabilities$517 $— $507 $10 

There were no transfers into or out of Level 3 financial instruments during the years ended December 31, 2021 and 2020.

The significant unobservable input used in the fair value measurement of IRLCs is the pull-through rate. Significant changes in the input could result in a significant change in fair value measurement.
The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs:
Key InputsValuation TechniqueDecember 31, 2021December 31, 2020
Weighted-average pull-through rate
Market pricing
71.1%72.3%

The following is a summary of changes in the fair value of IRLCs for the period ended December 31, 2021:
Balance, net—January 1, 2021$1,771 
Issuances of IRLCs18,415 
Settlements of IRLCs(18,827)
Net loss recognized in earnings(228)
Balance, net—December 31, 2021$1,131 
Changes in fair value recognized during the period relating to assets still held at December 31, 2021$(641)

The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:

December 31, 2021December 31, 2020
IssuanceNet Carrying Amount Estimated Fair ValueNet Carrying AmountEstimated Fair Value
2023 notes$23,280 $34,487 $22,482 $59,894 
2025 notes650,783 593,366 488,268 802,083 
2027 notes563,234 467,814 — — 

The difference between the principal amounts of our 2023 notes, our 2025 notes, and our 2027 notes, which were $23,512, $661,250, and $575,000, respectively, and the net carrying amounts of the notes represents the unamortized debt discount and debt issuance costs. See Note 15 for additional details. The estimated fair value of each tranche of convertible senior notes is based on the closing trading price of the notes on the last day of trading for the period, and is classified as Level 2 within the fair value hierarchy, due to the limited trading activity of the notes. As of December 31, 2021, the difference between the net carrying amount of the notes and their estimated fair values represented the notes' equity conversion premium. Based on the closing price of our common stock of $38.39 on December 31, 2021, the if-converted value of the 2023 notes exceeded the principal amount of $23,512, while the if-converted values of the 2025 notes and 2027 notes were less than the principal amounts of $661,250 and $575,000, respectively. Refer to Note 15 for additional details on the convertible senior notes.

See Note 11 for the carrying amount of our convertible preferred stock.

Assets and liabilities recognized or disclosed at fair value on a nonrecurring basis include items such as property and equipment, goodwill and other intangible assets, equity investments, and other assets. These assets are measured at fair value if determined to be impaired.
The cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash, money market funds, restricted cash, available-for-sale investments, and equity securities were as follows:
December 31, 2021
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$81,032 $— $— $81,032 $81,032 $— $— 
Money markets fundsLevel 1509,971 — — 509,971 509,971 — — 
Restricted cashN/A127,278 — — 127,278 127,278 — — 
U.S. treasury securitiesLevel 171,749 1 (204)71,546 — 16,718 54,828 
Agency bondsLevel 111,900 6 — 11,906 — 11,906 — 
Equity securitiesLevel 1500 4,613 — 5,113 — 5,113 — 
Total$802,430 $4,620 $(204)$806,846 $718,281 $33,737 $54,828 

December 31, 2020
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$32,915 $— $— $32,915 $32,915 $— $— 
Money markets fundsLevel 1886,261 — — 886,261 886,261 — — 
Restricted cashN/A20,544 — — 20,544 20,544 — — 
U.S. treasury securitiesLevel 1137,502 159 — 137,661 6,100 131,561 — 
Agency bondsLevel 111,900 22 — 11,922 — — 11,922 
Total$1,089,122 $181 $— $1,089,303 $945,820 $131,561 $11,922 

As of December 31, 2021 and 2020, the aggregate fair value of available-for-sale debt securities in an unrealized loss position totaled $54,671 and $0, with aggregate unrealized losses of $204 and $0, respectively. We have evaluated our portfolio of available-for-sale debt securities based on credit quality indicators for expected credit losses and do not believe there are any expected credit losses. In addition, as of December 31, 2021 and 2020, we had not made a decision to sell any of our debt securities held, nor did we consider it more likely than not that we would be required to sell such securities before recovery of our amortized cost basis. Our portfolio consists of U.S. government securities, all with a high quality credit rating issued by various credit agencies.

As of December 31, 2021 and 2020, we had accrued interest of $86 and $108, respectively, on our available-for-sale investments, of which we have recorded no expected credit losses. Accrued interest receivable is presented within other current assets in our consolidated balance sheets.