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Borrowings | 6 Months Ended
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Jun. 30, 2024
Debt Disclosure [Abstract] |
Borrowings | Borrowings The Company maintains various funding facilities, financing facilities, and unsecured senior notes, as shown in the tables below. Interest rates typically have two main components; a base rate - most commonly SOFR, which is sometimes subject to a minimum floor, plus a spread. Some funding 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 June 30, 2024 and December 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 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 mortgage loan funding facility 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 June 30, 2024 |  | Outstanding Balance as of December 31, 2023
Mortgage Loan funding: |  |  |  |  |  |  |  |  |  |
1) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 11/27/2024 |  | 1,000,000 |  |  | 100,000 |  |  | 965,966 |  |  | 397,265 |
2) Master Repurchase Agreement (1)(8) |  | Mortgage loans held for sale (7) |  | 8/9/2024 |  | 2,000,000 |  |  | 250,000 |  |  | 250,623 |  |  | 429,976 |
3) Master Repurchase Agreement (2)(8) |  | Mortgage loans held for sale (7) |  | 4/25/2025 |  | 1,500,000 |  |  | 350,000 |  |  | 354,786 |  |  | 552,079 |
4) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 9/8/2025 |  | 1,000,000 |  |  | 250,000 |  |  | 939,150 |  |  | 547,016 |
5) Master Repurchase Agreement (3)(8) |  | Mortgage loans held for sale (7) |  | 11/6/2025 |  | 1,500,000 |  |  | 250,000 |  |  | 862,000 |  |  | 106,063 |
6) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 7/21/2025 |  | 1,000,000 |  |  | 100,000 |  |  | 320,688 |  |  | 241,574 |
7) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 9/26/2025 |  | 800,000 |  |  | 100,000 |  |  | 769,237 |  |  | 507,302 |
8) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 5/6/2026 |  | 1,000,000 |  |  | 100,000 |  |  | 860,325 |  |  | — |
9) Master Repurchase Agreement (4)(8) |  | Mortgage loans held for sale (7) |  | 5/29/2026 |  | 1,000,000 |  |  | — |  |  | — |  |  | — |
10) Master Repurchase Agreement (8) |  | Mortgage loans held for sale (7) |  | 6/12/2026 |  | 750,000 |  |  | — |  |  | 264,772 |  |  | — |
|  |  |  |  |  | $ | 11,550,000 |  |  | $ | 1,500,000 |  |  | $ | 5,587,547 |  |  | $ | 2,781,275 |
Mortgage Loan Early Funding: |  |  |  |  |  |  |  |  |  |  |  |
11) Early Funding Facility (5)(8) |  | Mortgage loans held for sale (7) |  | (5) |  | $ | 5,000,000 |  |  | $ | — |  |  | $ | 828,090 |  |  | $ | 286,594 |
12) Early Funding Facility (6)(8) |  | Mortgage loans held for sale (7) |  | (6) |  | 2,000,000 |  |  | — |  |  | 424,402 |  |  | 183,414 |
|  |  |  |  |  | 7,000,000 |  |  | — |  |  | 1,252,492 |  |  | 470,008 |
Total Mortgage Funding Facilities |  | $ | 18,550,000 |  |  | $ | 1,500,000 |  |  | $ | 6,840,039 |  |  | $ | 3,251,283 |
Personal Loan funding: |  |  |  |  |  |  |  |  |  |  |  |
13) Revolving Credit and Security Agreement (8) |  | Personal loans held for sale |  | 1/30/2025 |  | $ | 200,000 |  |  | $ | 200,000 |  |  | $ | 182,400 |  |  | $ | 116,100 |
Total Funding Facilities |  | $ | 18,750,000 |  |  | $ | 1,700,000 |  |  | $ | 7,022,439 |  |  | $ | 3,367,383 |
(1) Subsequent to June 30, 2024, this facility was amended to decrease the total facility size to $1,000,000 with no committed amount and extended to August 1, 2026. (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 June 30, 2024, the facility committed amount was downsized to $250,000 and extended to July 25, 2025. (3) 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. (4) This facility is a sublimit of Financing Facility 6, found below in Financing Facilities. Refer to Subfootnote 4, Financing Facilities for additional details regarding this facility. Subsequent to June 30, 2024, this facility was amended to increase the total facility size to $2,000,000 with $250,000 committed and the newly originated mortgage loans held for sale sublimit increased to $2,000,000. (5) This facility is an evergreen agreement with no stated termination or expiration date. This agreement can be terminated by either party upon written notice. (6) 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. (7) 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. (8) 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 six months ended June 30, 2024 and year ended December 31, 2023. Financing Facilities
Facility Type |  | Collateral |  | Maturity |  | Line Amount |  | Committed Line Amount |  | Outstanding Balance as of June 30, 2024 |  | Outstanding Balance as of December 31, 2023
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 (2)(5) |  | — |  | 8/10/2025 |  | 1,250,000 |  |  | 1,250,000 |  |  | — |  |  | — |
4) MSR line of credit (5) |  | MSRs |  | 11/8/2024 |  | 500,000 |  |  | — |  |  | — |  |  | — |
5) MSR line of credit (3)(5) |  | MSRs |  | 11/6/2025 |  | 1,500,000 |  |  | 250,000 |  |  | — |  |  | — |
|  |  |  |  |  | $ | 5,350,000 |  |  | $ | 1,500,000 |  |  | $ | — |  |  | $ | — |
Early Buyout Financing Facility |  |  |  |  |  |  |  |  |  |  |  |
6) Early buy out facility (4)(5) |  | Loans/ Advances |  | 5/29/2026 |  | $ | 1,000,000 |  |  | $ | — |  |  | $ | 134,615 |  |  | $ | 203,208 |
(1) Refer to Note 6, Transactions with Related Parties for additional details regarding this unsecured line of credit. (2) Subsequent to June 30, 2024, this fully committed facility was renewed with a line size of $1,150,000, maturing July 2, 2027. (3) This facility is a sublimit of Master Repurchase Agreement 5, found above in Mortgage Funding Facilities. Refer to Subfootnote 3, Mortgage Funding Facilities for additional details regarding this financing facility. (4) This facility has an overall line size of $1,000,000. This facility also includes a $1,000,000 sublimit for newly originated mortgage loans held for sale; Capacity is fully fungible and is not restricted by these allocations. Subsequent to June 30, 2024, this facility was amended to increase the total facility size to $2,000,000 with $250,000 committed and the newly originated mortgage loans held for sale sublimit increased to $2,000,000. (5) The interest rates charged by lenders on the financing facilities included the applicable base rate, plus a spread ranging from 1.45% to 3.25% for the six months ended June 30, 2024 and 1.45% to 4.00% for the year ended December 31, 2023. Unsecured Senior Notes
Facility Type |  | Maturity |  | Interest Rate |  | Outstanding Principal June 30, 2024 |  | Outstanding Principal December 31, 2023
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 $5,141 and $6,284 as of June 30, 2024 and December 31, 2023, 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 $248 and $207 as of June 30, 2024, respectively, and $285 and $237, as of December 31, 2023, 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 $4,679 and $5,181 as of June 30, 2024 and December 31, 2023, 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 $9,013 and $9,689 as of June 30, 2024 and December 31, 2023, 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 $6,509 and $6,861 as of June 30, 2024 and December 31, 2023, respectively. Refer to Note 2, Fair Value Measurements for information pertaining to the fair value of the Company’s debt as of June 30, 2024 and December 31, 2023.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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