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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis
The Company’s financial instruments measured at fair value on a recurring basis are summarized below:
December 31, 2023
(Amounts in thousands)Level 1Level 2Level 3Total
Mortgage loans held for sale, at fair value
$— $170,150 $— $170,150 
Derivative assets, at fair value (1)
— — 1,716 1,716 
Total Assets
$— $170,150 $1,716 $171,866 
Derivative liabilities, at fair value (1)
$— $872 $77 $949 
Warrants and equity related liabilities, at fair value (2)
972 1,359 — 2,331 
Total Liabilities
$972 $2,231 $77 $3,280 
December 31, 2022
(Amounts in thousands)Level 1Level 2Level 3Total
Mortgage loans held for sale, at fair value
$— $248,826 $— $248,826 
Derivative assets, at fair value (1)
— 2,732 316 3,048 
Bifurcated derivative— — 236,603 236,603 
Total Assets
$— $251,558 $236,919 $488,477 
Derivative liabilities, at fair value (1)
$— $— $1,828 $1,828 
Convertible preferred stock warrants (2)
— — 3,096 3,096 
Total Liabilities
$— $— $4,924 $4,924 
__________________
(1)As of December 31, 2023, derivative assets represent forward sale commitments, and liabilities represent both IRLCs and forward sale commitments. As of December 31, 2022, derivative assets and liabilities represent both IRLCs and forward sale commitments.
(2)Fair value is based on the intrinsic value of the Company’s underlying stock price at each balance sheet date and includes certain assumptions with regard to volatility.
Schedule of Notional and Fair Value of Derivative Financial Instruments The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows:
(Amounts in thousands)Notional ValueDerivative AssetDerivative Liability
Balance as of December 31, 2023
IRLCs$227,380 $1,716 $77 
Forward commitments$265,000 — 872 
Total$1,716 $949 
Balance as of December 31, 2022
IRLCs$225,372 $316 $1,828 
Forward commitments$422,000 2,732 — 
Total$3,048 $1,828 
Schedule of Change in Fair Value of Derivative Liabilities
As of December 31, 2023 and 2022, Level 3 instruments include IRLCs, bifurcated derivative, and convertible preferred stock warrants. The following table presents the rollforward of Level 3 IRLCs:
Year Ended December 31,
(Amounts in thousands)20232022
Balance at beginning of year
$(1,513)$7,568 
Change in fair value of IRLCs3,153 (9,081)
Balance at end of year
$1,640 $(1,513)
The following table presents the rollforward of Level 3 bifurcated derivative:
Year Ended December 31,
(Amounts in thousands)20232022
Balance at beginning of year
$236,603 $— 
Change in fair value of bifurcated derivative(236,603)236,603 
Balance at end of year
$— $236,603 
Schedule of Change in Fair Value of Warrant Liabilities
The following table presents the rollforward of Level 3 convertible preferred stock warrants:
Year Ended December 31,
(Amounts in thousands)20232022
Balance at beginning of year
$3,096 $31,997 
Issuances— — 
Exercises(2,829)— 
Change in fair value of convertible preferred stock warrants(266)(28,901)
Balance at end of year
$— $3,096 
Schedule of Offsetting Assets The table below presents gross amounts of recognized assets and liabilities subject to master netting agreements.
(Amounts in thousands)Gross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesNet Amounts Presented in the Consolidated Balance Sheet
Offsetting of Forward Commitments - Assets
Balance as of:
December 31, 2023:$— $— $— 
December 31, 2022$3,263 $(531)$2,732 
Offsetting of Forward Commitments - Liabilities
Balance as of:
December 31, 2023:$168 $(1,041)$(872)
December 31, 2022$— $— $— 
Schedule of Offsetting Liabilities The table below presents gross amounts of recognized assets and liabilities subject to master netting agreements.
(Amounts in thousands)Gross Amount of Recognized AssetsGross Amount of Recognized LiabilitiesNet Amounts Presented in the Consolidated Balance Sheet
Offsetting of Forward Commitments - Assets
Balance as of:
December 31, 2023:$— $— $— 
December 31, 2022$3,263 $(531)$2,732 
Offsetting of Forward Commitments - Liabilities
Balance as of:
December 31, 2023:$168 $(1,041)$(872)
December 31, 2022$— $— $— 
Schedule of Quantitative Information about Significant Unobservable Inputs The following table presents quantitative information about the significant unobservable inputs used in the recurring fair value measurements categorized within Level 3 of the fair value hierarchy:
December 31, 2023
(Amounts in dollars, except percentages)RangeWeighted Average
Level 3 Financial Instruments:
IRLCs
Pull-through factor
0.77% - 100.00%
89.8 %
December 31, 2022
(Amounts in dollars, except percentages)RangeWeighted Average
Level 3 Financial Instruments:
IRLCs
Pull-through factor
14.66% - 96.57%
79.6 %
Bifurcated derivative
Risk free rate4.69%4.69 %
Expected term (years)0.8 %0.75 %
Fair value of new preferred or common stock
$10.63 - $19.05
$9.77 
Convertible preferred stock warrants
Risk free rate
3.94% - 4.04%
4.00 %
Volatility rate
40.4% - 123.8%
65.0 %
Expected term (years)
4.24 - 5.74
4.8
Fair value of common stock
$0.00 - $6.60
$1.60 
The Company valued these warrants at issuance and at each reporting period, using the Black-Scholes option-pricing model and their respective terms, as can be seen below:
December 31,
(Amounts in thousands, except per share amounts)2022
IssuanceFair value per shareFair Value
September 2018$0.54 $1,256 
February 2019$0.54 84 
March 2019$0.35 397 
April 2019$0.35 1,240 
March 2020$0.29 119 
Total$3,096 
Schedule of Carrying Amounts and Estimated Fair Value of Financial Instruments Measured at Fair Value on Recurring or Non-Recurring Basis The following table presents the carrying amounts and estimated fair value of financial instruments that are not recorded at fair value on a recurring or non-recurring basis:
As of December 31,
20232022
(Amounts in thousands)Fair Value LevelCarrying AmountFair ValueCarrying AmountFair Value
Short-term investmentsLevel 1$25,597 $25,563 $— $— 
Loans held for investmentLevel 3$4,793 $5,103 $— $— 
Convertible NotesLevel 3$514,644 $309,135 $— $— 
Loan commitment assetLevel 3$— $— $16,119 $54,654 
Pre-Closing Bridge NotesLevel 3$— $— $750,000 $269,067 
Corporate line of creditLevel 3$— $— $144,403 $145,323