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Derivative Financial Instruments
 9 Months Ended
Sep. 30, 2024
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 interest rate risks related to mortgage loans held for sale and IRLCs (“the pipeline”) 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 and Treasury 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 condensed consolidated statements of operations and condensed consolidated statement 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 condensed consolidated statements of operations and in “loss on MSR hedging activities” 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. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
September 30, 2024Nine Months Ended September 30, 2024
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gain/(Loss)
Assets
Mortgage loans held for sale
Loan sale commitments2024$992 $27 $16 
Derivative financial instruments
IRLCs2024$1,464 $41 $21 
LPCs2024558 3 — 
Forward MBS trades20242,152 7 156 
Treasury futures20244,272 16 113 
Total derivative financial instruments - assets$8,446 $67 $290 
Liabilities
Derivative financial instruments
IRLCs2024$49 $— $— 
LPCs2024571 3 (2)
Forward MBS trades20249,633 44 (237)
Total derivative financial instruments - liabilities$10,253 $47 $(239)
September 30, 2023Nine Months Ended September 30, 2023
Derivative Financial InstrumentsExpiration
Dates		Outstanding
Notional		Fair
Value		Gain/(Loss)
Assets
Mortgage loans held for sale
Loan sale commitments2023$304 $6 $(4)
Derivative financial instruments
IRLCs2023$813 $22 $— 
LPCs2023121 1 — 
Forward MBS trades20231,383 13 74 
Treasury futures20235 — — 
Total derivative financial instruments - assets$2,322 $36 $74 
Liabilities
Derivative financial instruments
IRLCs2023$40 $— $— 
LPCs2023288 2 — 
Forward MBS trades20231,249 28 (97)
Treasury futures20232,353 65 (196)
Total derivative financial instruments - liabilities$3,930 $95 $(293)
As of September 30, 2024, the Company held $98 in collateral deposits on derivative instruments. As of December 31, 2023 the Company held $8 and $56 in collateral deposits and collateral obligations on derivative instruments, respectively. Collateral deposits and collateral obligations are recorded in “other assets” and “payables and other liabilities,” respectively, in the 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.