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v3.23.1

Borrowings | 3 Months Ended
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Mar. 31, 2023
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 SOFR or LIBOR, which is sometimes subject to a minimum floor plus a spread. Some facilities have a commitment fee, which can be up to 50 basis points 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, 2023. 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. Buy-down funds are included in Cash and cash equivalents on the Condensed Consolidated Balance Sheets. We have the ability to withdraw these funds at any time, unless a margin call has been made or a default has occurred under the relevant facilities. We will also deploy cash to self-fund loan originations, a portion of which 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 45 days. 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. Mortgage Funding Facilities
Facility Type |  | Collateral |  | Maturity |  | Line Amount |  | Committed Line Amount |  | Outstanding Balance as of March 31, 2023 |  | Outstanding Balance as of December 31, 2022
Mortgage Loan funding: |  |  |  |  |  |  |  |  |  |
1) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 10/20/2023 |  | $ | 250,000 |  |  | $ | 50,000 |  |  | $ | — |  |  | $ | 49,381 |
2) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 11/30/2023 |  | 1,000,000 |  |  | 100,000 |  |  | 550,258 |  |  | 138,057 |
3) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 8/9/2024 |  | 2,000,000 |  |  | 250,000 |  |  | 255,281 |  |  | 702,128 |
4) Master Repurchase Agreement (1)(6) |  | Mortgage loans held for sale (5) |  | 1/26/2024 |  | 1,500,000 |  |  | 550,000 |  |  | 754,210 |  |  | 917,621 |
5) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 5/4/2024 |  | 1,000,000 |  |  | 250,000 |  |  | 649,929 |  |  | 493,029 |
6) Master Repurchase Agreement (2)(6) |  | Mortgage loans held for sale (5) |  | 9/9/2024 |  | 1,500,000 |  |  | 250,000 |  |  | 87,888 |  |  | 101,152 |
7) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 9/22/2023 |  | 1,250,000 |  |  | 250,000 |  |  | 181,107 |  |  | 186,707 |
8) Master Repurchase Agreement (6) |  | Mortgage loans held for sale (5) |  | 9/27/2024 |  | 750,000 |  |  | 100,000 |  |  | 544,729 |  |  | 171,642 |
|  |  |  |  |  | $ | 9,250,000 |  |  | $ | 1,800,000 |  |  | $ | 3,023,402 |  |  | $ | 2,759,717 |
Mortgage Loan Early Funding: |  |  |  |  |  |  |  |  |  |  |  |
9) Early Funding Facility (3)(6) |  | Mortgage loans held for sale (5) |  | (3) |  | $ | 5,000,000 |  |  | $ | — |  |  | $ | 1,262,204 |  |  | $ | 561,874 |
10) Early Funding Facility (4)(6) |  | Mortgage loans held for sale (5) |  | (4) |  | 2,000,000 |  |  | — |  |  | 932,128 |  |  | 227,108 |
|  |  |  |  |  | 7,000,000 |  |  | — |  |  | 2,194,332 |  |  | 788,982 |
Total Mortgage Funding Facilities |  | $ | 16,250,000 |  |  | $ | 1,800,000 |  |  | $ | 5,217,734 |  |  | $ | 3,548,699 |
(1) 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, 2023, this facility was extended to April 26, 2024. (2) This facility has an overall line size of $1,500,000. This facility also includes a $1,500,000 sublimit for MSR financing; Capacity is fully fungible and is not restricted by these allocations. (3) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (4) This facility has an overall line size of $2,000,000, 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. (5) 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. (6) The interest rates charged by lenders on funding facilities included the applicable base rate plus a spread ranging from 1.00% to 1.80% for the three months ended March 31, 2023, and the applicable base rate plus a spread ranging from 1.00% to 1.85% for the year ended December 31, 2022. Other Funding Facilities
Facility Type |  | Collateral |  | Maturity |  | Line Amount |  | Committed Line Amount |  | Outstanding Balance Outstanding Balance as of March 31, 2023 |  | Outstanding Balance Outstanding Balance as of December 31, 2022
Personal Loan funding: |  |  |  |  |  |  |  |  |  |  |  |
1) Revolving Credit and Security Agreement (1) |  | Personal loans held for sale |  | 1/30/2025 |  | $ | 75,000 |  |  | $ | 75,000 |  |  | $ | 18,300 |  |  | $ | — |
Total Other Funding Facilities |  | 75,000 |  |  | 75,000 |  |  | 18,300 |  |  | — |
Total Funding Facilities |  | $ | 16,325,000 |  |  | $ | 1,875,000 |  |  | $ | 5,236,034 |  |  | $ | 3,548,699 |
(1) The interest rates charged by lenders on funding facilities included the applicable base rate plus a spread ranging from 1.00% to 1.80% for the three months ended March 31, 2023, and the applicable base rate plus a spread ranging from 1.00% to 1.85% for the year ended December 31, 2022. Financing Facilities
Facility Type |  | Collateral |  | Maturity |  | Line Amount |  | Committed Line Amount |  | Outstanding Balance Outstanding Balance as of March 31, 2023 |  | Outstanding Balance Outstanding Balance as of December 31, 2022
Line of Credit Financing Facilities |  |  |  |  |  |  |  |  |  |  |  |
1) Unsecured line of credit (1) |  | — |  | 7/27/2025 |  | $ | 2,000,000 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2) Unsecured line of credit (1) |  | — |  | 7/31/2025 |  | 100,000 |  |  | — |  |  | — |  |  | — |
3) Revolving credit facility (3) |  | — |  | 8/10/2025 |  | 1,000,000 |  |  | 1,000,000 |  |  | — |  |  | — |
4) MSR line of credit (3) |  | MSRs |  | 10/20/2023 |  | 200,000 |  |  | — |  |  | — |  |  | — |
5) MSR line of credit (2)(3) |  | MSRs |  | 9/9/2024 |  | 1,500,000 |  |  | 250,000 |  |  | — |  |  | — |
|  |  |  |  |  | $ | 4,800,000 |  |  | $ | 1,250,000 |  |  | $ | — |  |  | $ | — |
Early Buyout Financing Facility |  |  |  |  |  |  |  |  |  |  |  |
6) Early buy out facility (3) |  | Loans/ Advances |  | 3/13/2024 |  | $ | 1,500,000 |  |  | $ | — |  |  | $ | 423,831 |  |  | $ | 672,882 |
(1) Refer to Note 6, Transactions with Related Parties for additional details regarding this unsecured line of credit. (2) This facility is a sublimit of Master Repurchase Agreement 6, found above in Mortgage Funding Facilities. Refer to Subfootnote 2, Mortgage Funding Facilities for additional details regarding this financing facility. (3) The interest rates charged by lenders on the financing facilities included the applicable base rate, plus a spread ranging from 1.45% to 4.00% for the three months ended March 31, 2023 and the year ended December 31, 2022. Unsecured Senior Notes
Facility Type |  | Maturity |  | Interest Rate |  | Outstanding Principal March 31, 2023 |  | Outstanding Principal December 31, 2022
Unsecured Senior Notes (1) |  | 10/15/2026 |  | 2.875 | % |  | $ | 1,150,000 |  |  | $ | 1,150,000 |
Unsecured Senior Notes (2) |  | 1/15/2028 |  | 5.250 | % |  | 61,985 |  |  | 61,985 |
Unsecured Senior Notes (3) |  | 3/1/2029 |  | 3.625 | % |  | 750,000 |  |  | 750,000 |
Unsecured Senior Notes (4) |  | 3/1/2031 |  | 3.875 | % |  | 1,250,000 |  |  | 1,250,000 |
Unsecured Senior Notes (5) |  | 10/15/2033 |  | 4.000 | % |  | 850,000 |  |  | 850,000 |
Total Senior Notes |  |  |  |  |  | $ | 4,061,985 |  |  | $ | 4,061,985 |
Weighted Average Interest Rate |  |  |  |  |  | 3.59 | % |  | 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 $7,997 and $8,569 as of March 31, 2023 and December 31, 2022, 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 $339 and $282 as of March 31, 2023, respectively, and $358 and $298, as of December 31, 2022, 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 $5,934 and $6,185 as of March 31, 2023 and December 31, 2022, 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 $10,705 and $11,040 as of March 31, 2023 and December 31, 2022, 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 $7,389 and $7,565 as of March 31, 2023 and December 31, 2022, respectively. Refer to Note 2, Fair Value Measurements for information pertaining to the fair value of the Company’s debt as of March 31, 2023 and December 31, 2022.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI https://asc.fasb.org/topic&trid=2208564 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (h) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(c)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (g) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1C -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1E -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1I -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 50 -Paragraph 1B -Subparagraph (i) -URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611 + Details
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