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Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
InstrumentJune 30, 2024December 31, 2023
Forward sales commitments$435,861 $274,400 
IRLCs350,852 188,554 
Derivative Instruments, Gain (Loss)
The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended June 30,Six Months Ended June 30,
InstrumentClassification2024202320242023
Forward sales commitmentsRevenue$(470)$2,285 $1,936 $2,032 
IRLCsRevenue(2,624)(5,302)(99)2,572 
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 June 30, 2024Quoted 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$148,890 $148,890 $— $— 
Total cash equivalents148,890 148,890 — — 
Loans held for sale208,460 — 208,460 — 
Other current assets
Forward sales commitments1,392 — 1,392 — 
IRLCs4,901 — — 4,901 
Total other current assets6,293 — 1,392 4,901 
Mortgage servicing rights, at fair value2,695 — — 2,695 
Total assets$366,338 $148,890 $209,852 $7,596 
Liabilities
Accrued liabilities
Forward sales commitments$1,884 $— $1,884 $— 
IRLCs548 — — 548 
Total liabilities$2,432 $— $1,884 $548 
Balance at December 31, 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$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 
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”):
June 30, 2024December 31, 2023
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
75.0% - 100.0%
91.3%
67.2% - 100.0%
87.7%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 19.0%
7.4%
 6.0% - 19.0%
6.8%
Default ratesDiscounted cash flow
0.1% - 1.2%
0.2%
0.1% - 1.2%
0.2%
Discount rateDiscounted cash flow
10.0% - 15.0%
10.1%
10.0% - 17.0%
10.2%
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 June 30,Six Months Ended June 30,
2024202320242023
Balance, net—beginning of period$6,977 $9,170 $4,453 $1,297 
Issuances of IRLCs13,262 13,168 29,324 29,131 
Settlements of IRLCs(14,670)(16,353)(29,409)(26,591)
Fair value changes recognized in earnings(1,216)(2,115)(15)33 
Balance, net—end of period$4,353 $3,870 $4,353 $3,870 

The following is a summary of changes in the fair value of MSRs:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Balance—beginning of period$32,328 $35,061 $32,171 $36,261 
MSRs originated23 232 84 579 
MSRs sales(1)
(30,234)(399)(30,503)(738)
Fair value changes recognized in earnings
578 609 943 (599)
Balance, net—end of period$2,695 $35,503 $2,695 $35,503 
(1) On May 31, 2024 we sold $30,038 of our MSRs to Freedom Mortgage Corporation.
Schedule of Long-term Debt
The following table presents the estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:
June 30, 2024December 31, 2023
2025 notes$66,559 $164,113 
2027 notes276,940 325,927 
As of June 30, 2024, outstanding borrowings of our debt are as follows:
Maturity of Debt
Lender
2024
2025
2026
2027
2028
Thereafter
Warehouse Credit Facilities
City National Bank$32,229 $— $— $— $— $— 
Origin Bank40,577 — — — — — 
M&T Bank36,490 — — — — — 
Prosperity Bank56,277 — — — — — 
Republic Bank & Trust Company36,986 — — — — — 
Term Loan
— — — — 243,961 — 
Convertible Senior Notes
2025 notes— 73,366 — — — — 
2027 notes— — — 497,711 — — 
Total borrowings
$202,559 $73,366 $— $497,711 $243,961 $— 
The following table summarizes borrowings under these facilities as of the periods presented:
June 30, 2024December 31, 2023
LenderBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding BorrowingsBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding Borrowings
City National Bank$50,000 $32,229 7.25 %$50,000 $20,046 7.24 %
Origin Bank75,000 40,577 7.19 %75,000 30,110 7.25 %
M&T Bank50,000 36,490 7.34 %50,000 18,870 7.39 %
Prosperity Bank75,000 56,277 7.21 %75,000 29,358 7.23 %
Republic Bank & Trust Company45,000 36,986 7.28 %45,000 23,415 7.28 %
Wells Fargo Bank, N.A.N/AN/AN/A100,000 30,165 7.36 %
Total$295,000 $202,559 $395,000 $151,964 
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:
June 30, 2024
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$52,922 $— $— $52,922 $52,922 $— $— 
Money markets fundsLevel 1148,890 — — 148,890 148,890 — — 
Restricted cashN/A756 — — 756 756 — — 
Total$202,568 $— $— $202,568 $202,568 $— $— 
December 31, 2023
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and 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