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Derivative Financial Instruments | 3 Months Ended
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Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | 8. Derivative Financial Instruments Derivative instruments are used as part of the overall strategy to manage exposure to interest rate risks related to mortgage loans held for sale and IRLCs (“the pipeline”) and the MSR portfolio. The Company economically hedges the pipeline separately from the MSR portfolio primarily using third-party derivative instruments. Such derivative instruments utilized by the Company include IRLCs, LPCs, forward MBS, Treasury futures and Swap futures. The changes in value on the derivative instruments associated with pipeline hedging are recorded in earnings as a component of “revenues - net gain on mortgage loans held for sale” on the condensed consolidated statements of operations and condensed consolidated statement of cash flows, while changes in the value of derivative instruments associated with the MSR portfolio fair value are recorded in “revenues - service related, net” on the condensed consolidated statements of operations and in “(gain) loss on MSR hedging activities” on the condensed consolidated statements of cash flows. The following tables provide the outstanding notional balances, fair values of outstanding positions and recorded gains/(losses) for the derivative financial instruments. Gains/(losses) include both realized and unrealized gains/(losses) of each derivative financial instrument.
|  |  | March 31, 2023 |  | Three Months Ended March 31, 2023
Derivative Financial Instruments | Expiration Dates |  | Outstanding Notional |  | Fair Value |  | Gains/(Losses)
Assets |  |  |  |  |  |  |
Mortgage loans held for sale |  |  |  |  |  |  |
Loan sale commitments | 2023 |  | $ | 399 |  |  | $ | 12 |  |  | $ | 2 |
Derivative financial instruments |  |  |  |  |  |  |
IRLCs | 2023 |  | $ | 940 |  |  | $ | 33 |  |  | $ | 11 |
LPCs | 2023 |  | 484 |  |  | 3 |  |  | 2 |
Forward MBS trades | 2023 |  | 1,056 |  |  | 18 |  |  | 35 |
Treasury futures | 2023 |  | 2,445 |  |  | 71 |  |  | 71 |
Total derivative financial instruments - assets |  |  | $ | 4,925 |  |  | $ | 125 |  |  | $ | 119 |
Liabilities |  |  |  |  |  |  |
Derivative financial instruments |  |  |  |  |  |  |
IRLCs | 2023 |  | $ | 25 |  |  | $ | — |  |  | $ | — |
LPCs | 2023 |  | 85 |  |  | — |  |  | 1 |
Forward MBS trades | 2023 |  | 1,439 |  |  | 10 |  |  | (47) |
Treasury futures | 2023 |  | 193 |  |  | 1 |  |  | (23) |
Total derivative financial instruments - liabilities |  |  | $ | 1,742 |  |  | $ | 11 |  |  | $ | (69) |
|  |  | March 31, 2022 |  | Three Months Ended March 31, 2022
Derivative Financial Instruments | Expiration Dates |  | Outstanding Notional |  | Fair Value |  | Gains/(Losses)
Assets |  |  |  |  |  |  |
Mortgage loans held for sale |  |  |  |  |  |  |
Loan sale commitments | 2022 |  | $ | 543 |  |  | $ | 1 |  |  | $ | (24) |
Derivative financial instruments |  |  |  |  |  |  |
IRLCs | 2022 |  | $ | 3,122 |  |  | $ | 72 |  |  | $ | (62) |
LPCs | 2022 |  | 203 |  |  | 2 |  |  | (1) |
Forward MBS trades | 2022 |  | 4,658 |  |  | 79 |  |  | 224 |
Total derivative financial instruments - assets |  |  | $ | 7,983 |  |  | $ | 153 |  |  | $ | 161 |
Liabilities |  |  |  |  |  |  |
Derivative financial instruments |  |  |  |  |  |  |
IRLCs | 2022 |  | $ | 551 |  |  | $ | 5 |  |  | $ | (5) |
LPCs | 2022 |  | 658 |  |  | 8 |  |  | (6) |
Forward MBS trades | 2022 |  | 695 |  |  | 6 |  |  | 7 |
Treasury futures | 2022 |  | 1,097 |  |  | 49 |  |  | (111) |
Total derivative financial instruments - liabilities |  |  | $ | 3,001 |  |  | $ | 68 |  |  | $ | (115) |
As of March 31, 2023, the Company held $3 and $8 in collateral deposits and collateral obligations on derivative instruments, respectively. As of December 31, 2022 the Company held $49 and $1 in collateral deposits and collateral obligations on derivative instruments, respectively. Collateral deposits and collateral obligations are recorded in “other assets” and “payables and other liabilities”, respectively, in the Company’s condensed consolidated balance sheets. The Company does not offset fair value amounts recognized for derivative instruments with amounts collected or deposited on derivative instruments in the condensed consolidated balance sheets.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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