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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
8. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to market risks primarily associated with fluctuations in interest rates related to originations. Derivative instruments utilized by the Company primarily include interest rate lock commitments (“IRLCs”), loan purchase commitments (“LPCs”), forward Mortgage Backed Securities (“MBS”) purchase commitments, Eurodollar and Treasury futures and interest rate swap agreements. The changes in value on the derivative instruments are recorded in earnings as a component of net gain on mortgage loans held for sale on the condensed consolidated statements of operations and condensed consolidated statement of cash flows, except for a portion of forward MBS trades to hedge MSR pipelines and related fair value changes, which is recorded in service related, net on the condensed consolidated statements of operations and in changes in other assets or other liabilities on the condensed consolidated statements of cash flows.

The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments:
September 30, 2021Nine Months Ended September 30, 2021
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2021$1,435 $29 $(73)
Derivative financial instruments
IRLCs20216,167 167 (247)
LPCs2021887 6 (32)
Forward MBS trades202112,770 61 24 
Total derivative financial instruments - assets$19,824 $234 $(255)
Liabilities
Derivative financial instruments
IRLCs2021$25 $— $— 
LPCs20212,208 13 12 
Forward MBS trades20216,553 23 (133)
Swap futures2021700 12 12 
Total derivative financial instruments - liabilities$9,486 $48 $(109)
September 30, 2020Nine Months Ended September 30, 2020
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2020$1,908 $75 $43 
Derivative financial instruments
IRLCs2020-202110,967 414 279 
LPCs20205,217 38 26 
Forward MBS trades2020-202111,452 23 17 
Total derivative financial instruments - assets$27,636 $475 $322 
Liabilities
Derivative financial instruments
IRLCs2020$2 $— $— 
LPCs2020598 2 (1)
Forward MBS trades2020-202115,974 42 30 
Total derivative financial instruments - liabilities$16,574 $44 $29 
As of September 30, 2021, the Company held $23 and $36 in collateral deposits and collateral obligations on derivative instruments, respectively. As of December 31, 2020 the Company held $61 in collateral deposits on derivative instruments. Collateral deposits and collateral obligations are recorded in other assets and payable and other liabilities, respectively, in the Company’s condensed consolidated balance sheets. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the condensed consolidated balance sheets.