Financial Instruments (Tables)
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6 Months Ended |
Jun. 30, 2022 |
Fair Value Disclosures [Abstract] |
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Schedule of Notional Amounts of Outstanding Derivative Positions |
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Notional Amounts |
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June 30, 2022 |
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December 31, 2021 |
Forward sales commitments |
|
$ |
633,188 |
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$ |
70,550 |
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IRLCs |
|
594,111 |
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|
67,485 |
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Derivative Instruments, Gain (Loss) |
The locations and amounts of gains (losses) recognized in income related to our derivatives are as follows:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
Instrument |
|
Classification |
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2022 |
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2021 |
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2022 |
|
2021 |
Forward sales commitments |
|
Service revenue |
|
$ |
(9,870) |
|
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$ |
(1,849) |
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$ |
(9,845) |
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$ |
79 |
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IRLCs |
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Service revenue |
|
4,054 |
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|
35 |
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|
4,029 |
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|
201 |
|
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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:
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Balance at June 30, 2022 |
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Quoted Prices in Active Markets for Identical Assets (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
Assets |
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Cash equivalents |
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Money market funds |
$ |
302,480 |
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$ |
302,480 |
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$ |
— |
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$ |
— |
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Agency bonds |
7,589 |
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7,589 |
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— |
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— |
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Total cash equivalents |
310,069 |
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|
310,069 |
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— |
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— |
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Short-term investments |
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|
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U.S. treasury securities |
71,014 |
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|
71,014 |
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— |
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— |
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Agency bonds |
11,492 |
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|
11,492 |
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— |
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— |
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Total short-term investments |
82,506 |
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|
82,506 |
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— |
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— |
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Loans held for sale |
306,364 |
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— |
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306,364 |
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— |
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Other current assets |
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Forward sales commitments |
3,462 |
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— |
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3,462 |
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— |
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IRLCs |
10,821 |
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— |
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— |
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10,821 |
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Total other current assets |
14,283 |
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— |
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3,462 |
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10,821 |
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Mortgage servicing rights, at fair value |
35,050 |
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— |
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— |
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35,050 |
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Long-term investments |
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U.S. treasury securities |
52,989 |
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52,989 |
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— |
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— |
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Total assets |
$ |
801,261 |
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$ |
445,564 |
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$ |
309,826 |
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$ |
45,871 |
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Liabilities |
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Accrued liabilities |
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Forward sales commitments |
$ |
2,175 |
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$ |
— |
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$ |
2,175 |
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$ |
— |
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IRLCs |
1,310 |
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— |
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— |
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1,310 |
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Total liabilities |
$ |
3,485 |
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$ |
— |
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$ |
2,175 |
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$ |
1,310 |
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Balance at December 31, 2021 |
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Quoted Prices in Active Markets for Identical Assets (Level 1) |
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Significant Other Observable Inputs (Level 2) |
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Significant Unobservable Inputs (Level 3) |
Assets |
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Cash equivalents |
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Money market funds |
$ |
509,971 |
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$ |
509,971 |
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$ |
— |
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$ |
— |
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Total cash equivalents |
509,971 |
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509,971 |
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— |
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— |
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Short-term investments |
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U.S. treasury securities |
16,718 |
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16,718 |
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— |
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— |
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Agency bonds |
11,906 |
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11,906 |
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— |
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— |
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Equity securities |
5,113 |
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5,113 |
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— |
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— |
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Loans held for sale |
35,759 |
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— |
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35,759 |
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— |
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Other current assets |
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Forward sales commitments |
138 |
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— |
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138 |
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— |
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IRLCs |
1,191 |
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— |
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— |
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1,191 |
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Total other current assets |
1,329 |
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— |
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138 |
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1,191 |
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Long-term investments |
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U.S. treasury securities |
54,828 |
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54,828 |
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— |
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— |
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Total assets |
$ |
635,624 |
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$ |
598,536 |
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$ |
35,897 |
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$ |
1,191 |
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Liabilities |
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Accrued liabilities |
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Forward sales commitments |
$ |
93 |
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$ |
— |
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$ |
93 |
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$ |
— |
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IRLCs |
60 |
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— |
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— |
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60 |
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Total liabilities |
$ |
153 |
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$ |
— |
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$ |
93 |
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$ |
60 |
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Summary of Fair Value Measurement Inputs and Valuation Techniques |
The significant unobservable inputs used to determine the fair value of IRLCs and MSRs that could result in a significant change in fair value measurement were as follows:
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Key Inputs |
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Valuation Technique |
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June 30, 2022 |
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December 31, 2021 |
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Range |
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Weighted-Average |
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Range |
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Weighted-Average |
IRLCs |
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Pull-through rate |
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Market pricing |
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69.9% - 100.0% |
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89.4% |
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71.1% |
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71.1% |
MSRs |
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Prepayment speed |
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Discounted cash flow |
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6.0% - 15.4% |
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6.6% |
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N/A |
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N/A |
Default rates |
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Discounted cash flow |
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0.0% - 0.5% |
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0.1% |
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N/A |
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N/A |
Discount rate |
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Discounted cash flow |
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9.0% - 11.8% |
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9.1% |
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N/A |
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N/A |
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Summary of Changes Fair Value Of Interest Rate Derivatives |
The following is a summary of changes in the fair value of IRLCs for the three and six months ended June 30, 2022:
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
Balance, net—beginning of period |
$ |
243 |
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$ |
1,771 |
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$ |
1,155 |
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$ |
1,771 |
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IRLCs acquired in business combination |
4,326 |
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— |
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|
4,326 |
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— |
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Issuances of IRLCs |
18,017 |
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5,170 |
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|
20,300 |
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|
10,674 |
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Settlements of IRLCs |
(14,099) |
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(5,569) |
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(17,268) |
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(10,708) |
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Fair value changes recognized in earnings |
1,024 |
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|
600 |
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|
998 |
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|
235 |
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Balance, net—end of period |
$ |
9,511 |
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$ |
1,972 |
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$ |
9,511 |
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$ |
1,972 |
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The following is a summary of changes in the fair value of MSRs for the three and six months ended June 30, 2022 and 2021:
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Three and Six Months Ended June 30, |
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2022 |
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2021 |
Balance—beginning of period |
$ |
— |
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$ |
— |
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MSRs acquired in business combination |
33,982 |
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— |
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MSRs originated |
964 |
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— |
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MSRs sales |
(774) |
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— |
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Fair value changes recognized in earnings |
878 |
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— |
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Balance, net—end of period |
$ |
35,050 |
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$ |
— |
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Schedule of Long-term Debt |
The following table presents the carrying amounts and estimated fair values of our convertible senior notes that are not recorded at fair value on our consolidated balance sheets:
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June 30, 2022 |
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December 31, 2021 |
Issuance |
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Net Carrying Amount |
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Estimated Fair Value |
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Net Carrying Amount |
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Estimated Fair Value |
2023 notes |
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$ |
23,355 |
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$ |
21,264 |
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$ |
23,280 |
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$ |
34,487 |
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2025 notes |
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652,164 |
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|
386,534 |
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|
650,783 |
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|
593,366 |
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2027 notes |
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564,354 |
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|
268,962 |
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|
563,234 |
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|
467,814 |
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The following table summarizes borrowings under these facilities as of the periods presented:
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June 30, 2022 |
Lender |
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Borrowing Capacity |
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Outstanding Borrowings |
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Weighted-Average Interest Rate on Outstanding Borrowings |
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Maturity Date |
City National Bank |
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$ |
100,000 |
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$ |
36,151 |
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3.63 |
% |
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10/11/2022 |
Comerica Bank |
|
75,000 |
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33,448 |
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3.80 |
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Upon lender demand |
Origin Bank |
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75,000 |
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35,000 |
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4.31 |
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9/30/2022 |
People's United Bank, National Association |
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50,000 |
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21,695 |
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3.47 |
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10/19/2022 |
Prosperity Bank |
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150,000 |
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81,268 |
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3.71 |
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9/30/2022 |
Republic Bank & Trust Company |
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75,000 |
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|
31,906 |
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3.32 |
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8/17/2022 |
Wells Fargo Bank, N.A. |
|
135,000 |
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|
44,964 |
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|
3.52 |
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As determined by lender |
Western Alliance Bank |
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25,000 |
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|
13,871 |
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|
3.18 |
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12/2/2022 |
Total |
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$ |
685,000 |
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$ |
298,303 |
|
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— |
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— |
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December 31, 2021 |
Lender |
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Borrowing Capacity |
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Outstanding Borrowings |
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Weighted-Average Interest Rate on Outstanding Borrowings |
Western Alliance Bank |
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$ |
50,000 |
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$ |
17,089 |
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|
3.00 |
% |
Texas Capital Bank, N.A. |
|
40,000 |
|
|
11,852 |
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|
3.01 |
|
Flagstar Bank, FSB |
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25,000 |
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|
4,102 |
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|
3.00 |
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Total |
|
$ |
115,000 |
|
|
$ |
33,043 |
|
|
— |
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The following table summarizes borrowings under this facility as of the periods presented:
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June 30, 2022 |
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December 31, 2021 |
Lender |
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Borrowing Capacity |
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Outstanding Borrowings |
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Weighted-Average Interest Rate on Outstanding Borrowings |
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Borrowing Capacity |
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Outstanding Borrowings |
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Weighted-Average Interest Rate on Outstanding Borrowings |
Goldman Sachs Bank USA |
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$ |
400,000 |
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|
$ |
156,540 |
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|
4.55 |
% |
|
$ |
200,000 |
|
|
$ |
199,781 |
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|
3.30 |
% |
|
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, available-for-sale investments, and equity securities were as follows:
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June 30, 2022 |
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Cost or Amortized Cost |
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Unrealized Gains |
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Unrealized Losses |
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Estimated Fair Value |
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Cash, Cash Equivalents, and Restricted Cash |
|
Short-term Investments |
|
Long-term Investments |
Cash |
|
|
$ |
69,853 |
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|
$ |
— |
|
|
$ |
— |
|
|
$ |
69,853 |
|
|
$ |
69,853 |
|
|
$ |
— |
|
|
$ |
— |
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Money markets funds |
|
|
302,480 |
|
|
— |
|
|
— |
|
|
302,480 |
|
|
302,480 |
|
|
— |
|
|
— |
|
Restricted cash |
|
|
28,279 |
|
|
— |
|
|
— |
|
|
28,279 |
|
|
28,279 |
|
|
— |
|
|
— |
|
U.S. treasury securities |
|
|
124,973 |
|
|
30 |
|
|
(1,000) |
|
|
124,003 |
|
|
— |
|
|
71,014 |
|
|
52,989 |
|
Agency bonds |
|
|
19,087 |
|
|
1 |
|
|
(7) |
|
|
19,081 |
|
|
7,589 |
|
|
11,492 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Total |
|
|
$ |
544,672 |
|
|
$ |
31 |
|
|
$ |
(1,007) |
|
|
$ |
543,696 |
|
|
$ |
408,201 |
|
|
$ |
82,506 |
|
|
$ |
52,989 |
|
|
|
|
|
|
|
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December 31, 2021 |
|
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Cost or Amortized Cost |
|
Unrealized Gains |
|
Unrealized Losses |
|
Estimated Fair Value |
|
Cash, Cash Equivalents, and Restricted Cash |
|
Short-term Investments |
|
Long-term Investments |
Cash |
|
|
|
$ |
81,032 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
81,032 |
|
|
$ |
81,032 |
|
|
$ |
— |
|
|
$ |
— |
|
Money markets funds |
|
|
|
509,971 |
|
|
— |
|
|
— |
|
|
509,971 |
|
|
509,971 |
|
|
— |
|
|
— |
|
Restricted cash |
|
|
|
127,278 |
|
|
— |
|
|
— |
|
|
127,278 |
|
|
127,278 |
|
|
— |
|
|
— |
|
U.S. treasury securities |
|
|
|
71,749 |
|
|
1 |
|
|
(204) |
|
|
71,546 |
|
|
— |
|
|
16,718 |
|
|
54,828 |
|
Agency bonds |
|
|
|
11,900 |
|
|
6 |
|
|
— |
|
|
11,906 |
|
|
— |
|
|
11,906 |
|
|
— |
|
Equity securities |
|
|
|
500 |
|
|
4,613 |
|
|
— |
|
|
5,113 |
|
|
— |
|
|
5,113 |
|
|
— |
|
Total |
|
|
|
$ |
802,430 |
|
|
$ |
4,620 |
|
|
$ |
(204) |
|
|
$ |
806,846 |
|
|
$ |
718,281 |
|
|
$ |
33,737 |
|
|
$ |
54,828 |
|
|