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Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
InstrumentSeptember 30, 2024December 31, 2023
Forward sales commitments$384,797 $274,400 
IRLCs276,572 188,554 
Derivative Instruments, Gain (Loss)
The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
InstrumentClassification2024202320242023
Forward sales commitmentsRevenue$(792)$335 $1,144 $2,367 
IRLCsRevenue86 (1,567)(13)1,005 
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, 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$114,617 $114,617 $— $— 
Total cash equivalents114,617 114,617 — — 
Loans held for sale212,921 — 212,921 — 
Other current assets
Forward sales commitments469 — 469 — 
IRLCs4,691 — — 4,691 
Total other current assets5,160 — 469 4,691 
Mortgage servicing rights, at fair value2,534 — — 2,534 
Total assets$335,232 $114,617 $213,390 $7,225 
Liabilities
Accrued liabilities
Forward sales commitments$1,755 $— $1,755 $— 
IRLCs252 — — 252 
Total liabilities$2,007 $— $1,755 $252 
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”):
September 30, 2024December 31, 2023
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
68.0% - 100.0%
90.5%
67.2% - 100.0%
87.7%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 25.0%
8.5%
 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% - 18.0%
10.3%
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 September 30,Nine Months Ended September 30,
2024202320242023
Balance, net—beginning of period$4,353 $3,870 $4,453 $1,297 
Issuances of IRLCs14,245 10,638 43,569 39,769 
Settlements of IRLCs(14,616)(11,650)(44,025)(38,241)
Fair value changes recognized in earnings457 (556)442 (523)
Balance, net—end of period$4,439 $2,302 $4,439 $2,302 

The following is a summary of changes in the fair value of MSRs:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Balance—beginning of period$2,695 $35,503 $32,171 $36,261 
MSRs originated86 120 170 699 
MSRs sales(1)
(46)(384)(30,549)(1,122)
Fair value changes recognized in earnings
(201)(466)742 (1,065)
Balance, net—end of period$2,534 $34,773 $2,534 $34,773 
(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:
September 30, 2024December 31, 2023
2025 notes$70,269 $164,113 
2027 notes367,896 325,927 
As of September 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$45,374 $— $— $— $— $— 
Origin Bank48,577 — — — — — 
M&T Bank42,385 — — — — — 
Prosperity Bank72,481 — — — — — 
Term Loan
— — — — 243,646 — 
Convertible Senior Notes
2025 notes— 73,439 — — — — 
2027 notes— — — 498,205 — — 
Total borrowings
$208,817 $73,439 $— $498,205 $243,646 $— 
The following table summarizes borrowings under these facilities as of the periods presented:
September 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 $45,374 6.72 %$50,000 $20,046 7.24 %
Origin Bank75,000 48,577 6.83 %75,000 30,110 7.25 %
M&T Bank50,000 42,385 6.83 %50,000 18,870 7.39 %
Prosperity Bank100,000 72,481 6.75 %75,000 29,358 7.23 %
Republic Bank & Trust CompanyN/AN/AN/A45,000 23,415 7.28 %
Wells Fargo Bank, N.A.N/AN/AN/A100,000 30,165 7.36 %
Total$275,000 $208,817 $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:
September 30, 2024
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$51,043 $— $— $51,043 $51,043 $— $— 
Money markets fundsLevel 1114,617 — — 114,617 114,617 — — 
Restricted cashN/A174 — — 174 174 — — 
Total$165,834 $— $— $165,834 $165,834 $— $— 
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