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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
11. Derivative Financial Instruments

Derivative instruments are used as part of the overall strategy to manage exposure to interest rate risks related to the pipeline (including mortgage loans held for sale and IRLCs) and the MSR portfolio. The Company economically hedges the pipeline separately from the MSR portfolio primarily using third-party derivative instruments. Such derivative instruments utilized by the Company include IRLCs, LPCs, forward MBS, Treasury futures and Swap futures. The changes in value on the derivative instruments associated with pipeline hedging are recorded in earnings as a component of “revenues - net gain on mortgage loans held for sale” on the consolidated statements of operations and consolidated statements of cash flows, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in “revenues - service related, net” on the consolidated statements of operations and in “loss (gain) on MSR hedging activities” on the consolidated statements of cash flows.

The following table provides the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
December 31, 2022Year Ended December 31, 2022
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2023$354 $10 $(15)
Derivative financial instruments
IRLCs2023755 22 (112)
LPCs2023145 1 (2)
Treasury futures2023— — 4 
Forward MBS trades20231,143 8 569 
Total derivative financial instruments - assets$2,043 $31 $459 
Liabilities
Derivative financial instruments
IRLCs2023$15 $— $— 
LPCs2023209 1 1 
Forward MBS trades2023681 9 (56)
Treasury futures2023892 14 (277)
Total derivative financial instruments - liabilities$1,797 $24 $(332)
December 31, 2021Year Ended December 31, 2021
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gains/(Losses)
Assets
Mortgage loans held for sale
Loan sale commitments2022$1,051 $25 $(77)
Derivative financial instruments
IRLCs20225,237 134 (280)
LPCs2022487 3 (35)
Forward MBS trades20223,569 7 272 
Total derivative financial instruments - assets$9,293 $144 $(43)
Liabilities
Derivative financial instruments
IRLCs2022$10 $— $— 
LPCs2022646 2 (1)
Forward MBS trades20224,091 8 (110)
Treasury futures2022923 6 (6)
Swap futures2022— — (14)
Total derivative financial instruments - liabilities$5,670 $16 $(131)

As of December 31, 2022 the Company held $49 and $1 in collateral deposits and collateral obligations on derivative instruments, respectively. As of December 31, 2021, the Company held $27 in collateral deposits on derivative instruments. Collateral deposits and collateral obligations are recorded in “other assets” and “payables and other liabilities”, respectively, on the Company’s 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 consolidated balance sheets.