v3.24.1.u1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Notional Amounts of Outstanding Derivative Positions
InstrumentMarch 31, 2024December 31, 2023
Forward sales commitments$463,110 $274,400 
IRLCs358,903 188,554 
Derivative Instruments, Gain (Loss)
The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended March 31,
InstrumentClassification20242023
Forward sales commitmentsRevenue$2,406 $(253)
IRLCsRevenue2,525 7,874 
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 March 31, 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$81,927 $81,927 $— $— 
Total cash equivalents81,927 81,927 — — 
Loans held for sale165,487 — 165,487 — 
Other current assets
Forward sales commitments1,169 — 1,169 — 
IRLCs7,200 — — 7,200 
Total other current assets8,369 — 1,169 7,200 
Mortgage servicing rights, at fair value32,328 — — 32,328 
Total assets$288,111 $81,927 $166,656 $39,528 
Liabilities
Accrued liabilities
Forward sales commitments$1,192 $— $1,192 $— 
IRLCs223 — — 223 
Total liabilities$1,415 $— $1,192 $223 
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”):
March 31, 2024December 31, 2023
Key InputsValuation TechniqueRangeWeighted-AverageRangeWeighted-Average
IRLCs
Pull-through rate
Market pricing
70.1% - 100.0%
89.2%
67.2% - 100.0%
87.7%
MSRs
Prepayment speedDiscounted cash flow
6.0% - 20.0%
6.8%
 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% - 17.0%
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 March 31,
20242023
Balance, net—beginning of period$4,453 $1,297 
Issuances of IRLCs16,062 15,963 
Settlements of IRLCs(14,739)(10,238)
Fair value changes recognized in earnings1,201 2,148 
Balance, net—end of period$6,977 $9,170 

The following is a summary of changes in the fair value of MSRs:
Three Months Ended March 31,
20242023
Balance—beginning of period$32,171 $36,261 
MSRs originated61 347 
MSRs sales(269)(339)
Fair value changes recognized in earnings365 (1,208)
Balance, net—end of period$32,328 $35,061 
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:
March 31, 2024December 31, 2023
2025 notes$125,007 $164,113 
2027 notes278,967 325,927 
As of March 31, 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$21,828 $— $— $— $— $— 
Origin Bank22,366 — — — — — 
M&T Bank19,951 — — — — — 
Prosperity Bank36,294 — — — — — 
Republic Bank & Trust Company33,091 — — — — — 
Wells Fargo Bank, N.A.23,058 — — — — — 
Term Loan
— — — — 124,123 — 
Convertible Senior Notes
2025 notes— 143,988 — — — — 
2027 notes— — — 497,221 — — 
Total borrowings
$156,588 $143,988 $— $497,221 $124,123 $— 
The following table summarizes borrowings under these facilities as of the periods presented:
March 31, 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 $21,828 7.25 %$50,000 $20,046 7.24 %
Origin Bank75,000 22,366 7.30 %75,000 30,110 7.25 %
M&T Bank50,000 19,951 7.32 %50,000 18,870 7.39 %
Prosperity Bank75,000 36,294 7.20 %75,000 29,358 7.23 %
Republic Bank & Trust Company45,000 33,091 7.26 %45,000 23,415 7.28 %
Wells Fargo Bank, N.A.100,000 23,058 7.35 %100,000 30,165 7.36 %
Total$395,000 $156,588 $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:
March 31, 2024
Fair Value HierarchyCost or Amortized CostUnrealized GainsUnrealized LossesEstimated Fair ValueCash, Cash Equivalents, and Restricted CashShort-term InvestmentsLong-term Investments
CashN/A$25,202 $— $— $25,202 $25,202 $— $— 
Money markets fundsLevel 181,927 — — 81,927 81,927 — — 
Restricted cashN/A1,274 — — 1,274 1,274 — — 
Total$108,403 $— $— $108,403 $108,403 $— $— 
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