XML 346 R28.htm IDEA: XBRL DOCUMENT v3.23.3
Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2023
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
Notional AmountsSeptember 30, 2023December 31, 2022
Forward sales commitments$322,652 $301,548 
IRLCs249,515 210,787 
Derivative Instruments, Gain (Loss)
The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
InstrumentClassification2023202220232022
Forward sales commitmentsRevenue$335 $11,602 $2,367 $1,757 
IRLCsRevenue(1,567)(8,462)1,005 (4,433)
Schedule of Assets, Liabilities, and Equity Measured at Fair Value on a Recurring Basis
A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected in our consolidated balance sheets, is set forth below:
Balance at September 30, 2023Quoted 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$91,399 $91,399 $— $— 
Total cash equivalents91,399 91,399 — — 
Short-term investments
U.S. treasury securities8,349 8,349 — — 
Agency bonds33,403 33,403 — — 
Total short-term investments41,752 41,752 — — 
Loans held for sale137,680 — 137,680 — 
Other current assets
Forward sales commitments2,190 — 2,190 — 
IRLCs3,067 — — 3,067 
Total other current assets5,257 — 2,190 3,067 
Mortgage servicing rights, at fair value34,773 — — 34,773 
Long-term investments
U.S. treasury securities5,474 5,474 — — 
Total long-term investments5,474 5,474 — — 
Total assets$316,335 $138,625 $139,870 $37,840 
Liabilities
Accrued liabilities
Forward sales commitments$27 $— $27 $— 
IRLCs765 — — 765 
Total liabilities$792 $— $27 $765 
Balance at December 31, 2022Quoted 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$186,410 $186,410 $— $— 
Total cash equivalents186,410 186,410 — — 
Short-term investments
   U.S. treasury securities96,925 96,925 — — 
Agency bonds25,334 25,334 — — 
Total short-term investments122,259 122,259 — — 
Loans held for sale199,604 — 199,604 — 
Other current assets
Forward sales commitments1,669 — 1,669 — 
IRLCs2,338 — — 2,338 
Total other current assets4,007 — 1,669 2,338 
Mortgage servicing rights, at fair value36,261 — — 36,261 
Long-term investments
U.S. treasury securities29,480 29,480 — — 
Total assets$578,021 $338,149 $201,273 $38,599 
Liabilities
Accrued liabilities
Forward sales commitments$1,873 $— $1,873 $— 
IRLCs1,041 — — 1,041 
Total liabilities$2,914 $— $1,873 $1,041 
Summary of Fair Value Measurement Inputs and Valuation Techniques
The following is a quantitative summary of key unobservable inputs used in the valuation of IRLCs and Mortgage Servicing Rights (“MSRs”):
September 30, 2023December 31, 2022
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
69.7% - 100.0%
93.5%
62.0% - 100.0%
91.0%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 12.0%
6.5%
 6.0% - 14.4%
6.6%
Default ratesDiscounted cash flow
0.1% - 1.0%
0.2%
0.0% - 0.5%
0.1%
Discount rateDiscounted cash flow
10.0% - 12.8%
10.1%
9.5% - 12.4%
9.6%
Summary of Changes Fair Value Of Interest Rate Derivatives
The following is a summary of changes in the fair value of IRLCs:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Balance, net—beginning of period$3,870 $9,510 $1,297 $1,155 
IRLCs acquired in business combination— — — 4,326 
Issuances of IRLCs10,638 20,440 39,769 40,740 
Settlements of IRLCs(11,650)(23,494)(38,241)(40,762)
Fair value changes recognized in earnings(556)(5,408)(523)(4,411)
Balance, net—end of period$2,302 $1,048 $2,302 $1,048 

The following is a summary of changes in the fair value of MSRs:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Balance—beginning of period$35,503 $35,050 $36,261 $— 
MSRs acquired in business combination— — — 33,982 
MSRs originated120 1,811 699 2,774 
MSRs sales(384)(541)(1,122)(1,314)
Fair value changes recognized in earnings(466)594 (1,065)1,472 
Balance, net—end of period$34,773 $36,914 $34,773 $36,914 
Schedule of Long-term Debt
The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:
September 30, 2023December 31, 2022
IssuanceNet Carrying AmountEstimated Fair ValueNet Carrying AmountEstimated Fair Value
2023 notes$— $— $23,431 $22,147 
2025 notes232,511 192,411 512,683 309,292 
2027 notes567,154 333,500 565,474 267,398 
The following table summarizes borrowings under these facilities as of the periods presented:
September 30, 2023December 31, 2022
LenderBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding BorrowingsBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding Borrowings
City National Bank$75,000 $13,355 7.25 %$75,000 $27,288 5.89 %
Comerica BankN/AN/AN/A75,000 26,526 6.36 %
Origin Bank75,000 15,238 7.18 %75,000 23,739 5.98 %
M&T Bank50,000 9,644 7.47 %50,000 19,126 6.45 %
Prosperity Bank100,000 50,912 7.19 %100,000 35,856 6.18 %
Republic Bank & Trust Company75,000 23,101 7.25 %75,000 26,636 5.81 %
Wells Fargo Bank, N.A.100,000 20,070 7.32 %100,000 31,338 6.41 %
Total$475,000 $132,320 $550,000 $190,509 
Marketable Securities
The cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of our cash, money market funds, restricted cash, and available-for-sale investments were as follows:
September 30, 2023
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$34,404 $— $— $34,404 $34,404 $— $— 
Money markets fundsLevel 191,399 — — 91,399 91,399 — — 
Restricted cashN/A1,414 — — 1,414 1,414 — — 
U.S. treasury securitiesLevel 113,876 6 (59)13,823 — 8,349 5,474 
Agency bondsLevel 133,463 — (60)33,403 — 33,403 — 
Total$174,556 $6 $(119)$174,443 $127,217 $41,752 $5,474 
December 31, 2022
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$53,430 $— $— $53,430 $45,790 $— $— 
Money markets fundsLevel 1186,410 — — 186,410 186,410 — — 
Restricted cashN/A2,406 — — 2,406 2,406 — — 
U.S. treasury securitiesLevel 1127,130 28 (753)126,405 — 96,925 29,480 
Agency bondsLevel 125,339 — (5)25,334 — 25,334 — 
Total$394,715 $28 $(758)$393,985 $234,606 $122,259 $29,480