XML 39 R26.htm IDEA: XBRL DOCUMENT v3.24.0.1
Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions 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 Amounts20232022
Forward sales commitments$274,400 $301,548 
IRLCs188,554 210,787 
Derivative Instruments, Gain (Loss)
The locations and amounts of gains (losses) recognized in revenue related to our derivatives are as follows:
Year Ended December 31,
InstrumentClassification202320222021
Forward sales commitmentsRevenue$(2,226)$(11,336)$518 
IRLCsRevenue3,156 (4,184)(641)
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 on our consolidated balance sheets, is set forth below:
Balance at December 31, 2023
Quoted 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$115,276 $115,276 $— $— 
Total cash equivalents115,276 115,276 — — 
Short-term investments
U.S. treasury securities10,720 10,720 — — 
Agency bonds31,232 31,232 — — 
Total short-term investments41,952 41,952 — — 
Loans held for sale159,587 — 159,587 — 
Other current assets
IRLCs4,600 — — 4,600 
Total other current assets4,600 — — 4,600 
Mortgage servicing rights, at fair value32,171 — — 32,171 
Long-term investments
U.S. treasury securities3,149 3,149 — — 
Total assets$356,735 $160,377 $159,587 $36,771 
Liabilities
Accrued liabilities
Forward sales commitments$2,429 $— $2,429 $— 
IRLCs147 — — 147 
Total liabilities$2,576 $— $2,429 $147 
Balance at December 31, 2022
Quoted 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 
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”):
December 31, 2023December 31, 2022
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
67.2% - 100.0%
87.7%
62.0% - 100.0%
91.0%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 19.0%
6.8%
6.0% - 14.4%
6.6%
Default ratesDiscounted cash flow
0.1% - 1.2%
0.2%
0.0% - 0.5%
0.1%
Discount rateDiscounted cash flow
10.0% - 17.0%
10.2%
9.5% - 12.4%
9.6%
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following is a summary of changes in the fair value of IRLCs:
Year Ended December 31,
202320222021
Balance, net—beginning of period$1,297 $1,131 $1,771 
IRLCs acquired in business combination— 4,326 — 
Issuances of IRLCs51,089 51,453 18,415 
Settlements of IRLCs(48,902)(54,784)(18,827)
Fair value changes recognized in earnings969 (829)(228)
Balance, net—end of period$4,453 $1,297 $1,131 

The following is a summary of changes in the fair value of MSRs:
Year Ended December 31,
202320222021
Balance—beginning of period$36,261 $— $— 
MSRs acquired in business combination— 33,982 — 
MSRs originated565 3,140 — 
MSRs sales(1,457)(1,662)— 
Fair value changes recognized in earnings(3,198)801 — 
Balance, net—end of period$32,171 $36,261 $— 
Schedule of Long-term Debt Instruments
The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:
December 31, 2023December 31, 2022
IssuanceNet Carrying Amount Estimated Fair ValueNet Carrying AmountEstimated Fair Value
2023 notes$— $— $23,431 $22,147 
2025 notes192,002 164,113 512,683 309,292 
2027 notes496,735 325,927 565,474 267,398 
As of December 31, 2023, outstanding borrowings of our debt are as follows:
Maturity of Debt
Lender
2024
2025
2026
2027
2028
Thereafter
Warehouse Credit Facilities
City National Bank$20,046 $— $— $— $— $— 
Origin Bank30,110 — — — — — 
M&T Bank18,870 — — — — — 
Prosperity Bank29,358 — — — — — 
Republic Bank & Trust Company23,415 — — — — — 
Wells Fargo Bank, N.A.30,165 — — — — — 
Term Loan
— — — — 124,416 — 
Convertible Senior Notes
2025 notes— 192,002 — — — — 
2027 notes— — — 496,735 — — 
Total borrowings
$151,964 $192,002 $— $496,735 $124,416 $— 
The following table summarizes borrowings under these facilities as of the periods presented:
December 31, 2023December 31, 2022
LenderBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding BorrowingsBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding Borrowings
City National Bank$50,000 $20,046 7.24 %$75,000 $27,288 5.89 %
Comerica BankN/AN/AN/A75,000 26,526 6.36 %
Origin Bank75,000 30,110 7.25 %75,000 23,739 5.98 %
M&T Bank50,000 18,870 7.39 %50,000 19,126 6.45 %
Prosperity Bank75,000 29,358 7.23 %100,000 35,856 6.18 %
Republic Bank & Trust Company45,000 23,415 7.28 %75,000 26,636 5.81 %
Wells Fargo Bank, N.A.100,000 30,165 7.36 %100,000 31,338 6.41 %
Total$395,000 $151,964 $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, available-for-sale investments, and equity securities were as follows:
December 31, 2023
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$34,483 $— $— $34,483 $34,483 $— $— 
Money markets fundsLevel 1115,276 — — 115,276 115,276 — — 
Restricted cashN/A1,241 — — 1,241 1,241 — — 
U.S. treasury securitiesLevel 113,895 1 (27)13,869 — 10,720 3,149 
Agency bondsLevel 131,246 — (14)31,232 — 31,232 — 
Total$196,141 $1 $(41)$196,101 $151,000 $41,952 $3,149 
December 31, 2022
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, 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