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Borrowings
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
Borrowings Borrowings
The Company maintains various funding facilities and other non-funding debt as shown in the tables below. Interest rates typically have two main components – a base rate most commonly LIBOR or SOFR, which is sometimes subject to a minimum floor plus a spread. Some facilities have a commitment fee, which can range from 0.0% to 0.5% per year. The commitment fee charged by lenders is calculated based on the committed line amount multiplied by a negotiated rate. The Company is required to maintain certain covenants, including minimum tangible net worth, minimum liquidity, maximum total debt or liabilities to net worth ratio, pretax net income requirements, and other customary debt covenants, as defined in the agreements. The Company was in compliance with all covenants as of March 31, 2022.

The amount owed and outstanding on the Company’s loan funding facilities fluctuates based on its origination volume, the amount of time it takes the Company to sell the loans it originates, and the Company’s ability to use its cash to self-fund loans. In addition to self-funding, the Company may from time to time use surplus cash to “buy-down” the effective interest rate of certain loan funding facilities or to self-fund a portion of our loan originations. As of March 31, 2022, $2,292,172 of the Company’s cash was used to buy-down our funding facilities and self-fund, $200,000 of which are buy-down funds that are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets and $2,092,172 of which is discretionary self-funding that reduces Cash and cash equivalents on the Condensed Consolidated Balance Sheets. The Company has the right to withdraw the $200,000 at any time, unless a margin call has been made or a default has occurred under the relevant facilities. The Company has an estimated $2,092,172 of discretionary self-funded loans, of which a portion can be transferred to a warehouse line or the early buy out line, provided that such loans meet the eligibility criteria to be placed on such lines. The remaining portion will be funded in normal course over a short period of time, generally less than one month. A large unanticipated margin call could also have a material adverse effect on the Company’s liquidity.

The terms of the Senior Notes restrict our ability and the ability of our subsidiary guarantors among other things to: (1) merge, consolidate or sell, transfer or lease assets, and; (2) create liens on assets.
Funding Facilities
Facility TypeCollateralMaturityLine AmountCommitted Line Amount
Outstanding Balance as of March 31, 2022
Outstanding Balance as of December 31, 2021
MRA funding:
1) Master Repurchase Agreement (1)(9)
Mortgage loans held for sale (8)
10/20/2023$2,000,000 $100,000 $246,476 $249,119 
2) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
12/1/20221,500,000 250,000 576,521 1,328,727 
3) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
4/21/20232,250,000 500,000 527,655 1,714,806 
4) Master Repurchase Agreement (2)(9)
Mortgage loans held for sale (8)
1/26/20232,000,000 1,200,000 1,252,325 1,479,128 
5) Master Repurchase Agreement (3)(9)
Mortgage loans held for sale (8)
4/20/20233,000,000 500,000 585,523 2,264,954 
6) Master Repurchase Agreement (4)(9)
Mortgage loans held for sale (8)
9/22/20232,000,000 500,000 225,067 498,335 
7) Master Repurchase Agreement (5)(9)
Mortgage loans held for sale (8)
9/15/20231,200,000 500,000 167,104 542,846 
8) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
6/10/2022500,000 — — — 
9) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
9/22/20231,250,000 250,000 243,482 539,257 
10) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
8/16/2023750,000 100,000 89,124 616,165 
11) Master Repurchase Agreement (9)
Mortgage loans held for sale (8)
12/16/20221,000,000 250,000 223,372 253,389 
$17,450,000 $4,150,000 $4,136,649 $9,486,726 
Early Funding:
12) Early Funding Facility (6)(9)
Mortgage loans held for sale (8)
          (6)
$4,000,000 $— $1,328,175 $2,071,154 
13) Early Funding Facility (7)(9)
Mortgage loans held for sale (8)
(7)
3,000,000 — 1,004,783 1,193,712 
7,000,000 — 2,332,958 3,264,866 
Total$24,450,000 $4,150,000 $6,469,607 $12,751,592 
(1)    Subsequent to March 31, 2022, this facility was amended to decrease the total facility size to $1,000,000.

(2)    This facility has a 12-month initial term, which can be extended for 3-months at each subsequent 3-month anniversary from the initial start date. Subsequent to March 31, 2022, this facility was amended to decrease the committed amount to $1,100,000 and was extended to April 26, 2023.

(3)    Subsequent to March 31, 2022, this facility was amended to decrease the total facility size to $2,000,000 with $250,000 committed and was extended to May 4, 2024.

(4)    Subsequent to March 31, 2022, this facility was amended to decrease the committed amount to $250,000.

(5)    Subsequent to March 31, 2022, this facility was amended to decrease the total facility size to $900,000 with $250,000 committed.

(6)    This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.
(7)    This facility has an overall line size of $3,000,000, which is reviewed every 90 days. This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice.

(8)    The Company has multiple borrowing facilities in the form of asset sales under agreements to repurchase. These borrowing facilities are secured by mortgage loans held for sale at fair value as the first priority security interest.    

(9)    The interest rates charged by lenders on the funding facilities included the applicable base rate plus a spread ranging from 1.00% to 1.85% for the three months ended March 31, 2022, and the applicable base rate plus a spread ranging from 1.00% to 2.25% for the year ended December 31, 2021.

Other Financing Facilities
Facility TypeCollateralMaturityLine AmountCommitted Line AmountOutstanding Balance March 31, 2022Outstanding Balance December 31, 2021
Line of Credit Financing Facilities
1) Unsecured line of credit (1)
—7/27/2025$2,000,000 $— $— $— 
2) Unsecured line of credit (1)
—7/31/2025100,000 — — — 
3) Revolving credit facility (3)
—8/10/20241,000,000 1,000,000 — — 
4) MSR line of credit (3)
MSRs10/20/2023200,000 — — — 
5) MSR line of credit (2)(3)
MSRs
      (2)
— — — 75,000 
$3,300,000 $1,000,000 $— $75,000 
Early Buyout Financing Facility
6) Early buy out facility (3)
Loans/ Advances3/13/2024$2,600,000 $— $1,698,167 $1,896,784 
(1)    Refer to Note 6, Transactions with Related Parties for additional details regarding this unsecured line of credit.

(2)    This facility was voluntarily paid off and terminated in March 2022.

(3)        The interest rates charged by lenders on the other funding facilities included the applicable base rate, plus a spread ranging from 1.45% to 4.00% for the three months ended March 31, 2022, and the applicable base rate plus a spread ranging from 1.45% to 4.00% for the year ended December 31, 2021.

Unsecured Senior Notes
Facility TypeMaturityInterest RateOutstanding Principal March 31, 2022Outstanding Principal December 31, 2021
Unsecured Senior Notes (1)
10/15/20262.875 %$1,150,000 $1,150,000 
Unsecured Senior Notes (2)
1/15/20285.250 %61,985 61,985 
Unsecured Senior Notes (3)
3/1/20293.625 %750,000 750,000 
Unsecured Senior Notes (4)
3/1/20313.875 %1,250,000 1,250,000 
Unsecured Senior Notes (5)
10/15/20334.000 %850,000 850,000 
Total Senior Notes
$4,061,985 $4,061,985 
Weighted Average Interest Rate3.59 %3.59 %

(1)    The 2026 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs are presented net against the Senior Notes reducing the $1,150,000 carrying amount on the Condensed Consolidated Balance Sheets by $10,282 and $10,854 as of March 31, 2022 and December 31, 2021, respectively.
(2)    The 2028 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs and discounts are presented net against the Senior Notes reducing the $61,985 carrying amount on the Condensed Consolidated Balance Sheets by $412 and $343 as of March 31, 2022, respectively, and $430 and $358, as of December 31, 2021, respectively.

(3)    The 2029 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs are presented net against the Senior Notes reducing the $750,000 carrying amount on the Condensed Consolidated Balance Sheets by $6,937 and $7,188 as of March 31, 2022 and December 31, 2021, respectively.

(4)    The 2031 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs are presented net against the Senior Notes reducing the $1,250,000 carrying amount on the Condensed Consolidated Balance Sheets by $12,057 and $12,395 as of March 31, 2022 and December 31, 2021, respectively.

(5)    The 2033 Senior Notes are unsecured obligation notes with no asset required to pledge for this borrowing. Unamortized debt issuance costs are presented net against the Senior Notes reducing the $850,000 carrying amount on the Condensed Consolidated Balance Sheets by $8,093 and $8,269 as of March 31, 2022 and December 31, 2021, respectively.

Refer to Note 2, Fair Value Measurements for information pertaining to the fair value of the Company’s debt as of March 31, 2022 and December 31, 2021.