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Borrowings
 6 Months Ended
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 TypeCollateralMaturityLine AmountCommitted 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)
11/27/20241,000,000 100,000 965,966 397,265 
2) Master Repurchase Agreement (1)(8)
Mortgage loans held for sale (7)
8/9/20242,000,000 250,000 250,623 429,976 
3) Master Repurchase Agreement (2)(8)
Mortgage loans held for sale (7)
4/25/20251,500,000 350,000 354,786 552,079 
4) Master Repurchase Agreement (8)
Mortgage loans held for sale (7)
9/8/20251,000,000 250,000 939,150 547,016 
5) Master Repurchase Agreement (3)(8)
Mortgage loans held for sale (7)
11/6/20251,500,000 250,000 862,000 106,063 
6) Master Repurchase Agreement (8)
Mortgage loans held for sale (7)
7/21/20251,000,000 100,000 320,688 241,574 
7) Master Repurchase Agreement (8)
Mortgage loans held for sale (7)
9/26/2025800,000 100,000 769,237 507,302 
8) Master Repurchase Agreement (8)
Mortgage loans held for sale (7)
5/6/20261,000,000 100,000 860,325 — 
9) Master Repurchase Agreement (4)(8)
Mortgage loans held for sale (7)
5/29/20261,000,000 — — — 
10) Master Repurchase Agreement (8)
Mortgage loans held for sale (7)
6/12/2026750,000 — 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 TypeCollateralMaturityLine AmountCommitted 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)
—7/31/2025100,000 — — — 
3) Revolving credit facility (2)(5)
—8/10/20251,250,000 1,250,000 — — 
4) MSR line of credit (5)
MSRs11/8/2024500,000 — — — 
5) MSR line of credit (3)(5)
MSRs11/6/20251,500,000 250,000 — — 
$5,350,000 $1,500,000 $— $— 
Early Buyout Financing Facility
6) Early buy out facility (4)(5)
Loans/ Advances5/29/2026$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 TypeMaturityInterest Rate
Outstanding
Principal June 30, 2024
Outstanding
Principal December 31, 2023
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 $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.