Fair Value Disclosures	12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]
Fair Value Disclosures	12. Fair Value Disclosures Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage loans held for investment, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis. We also utilize fair value measurements on a non-recurring basis for inventories, and intangible assets when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows:Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date. Mortgage loans held for sale – Fair value is based on quoted market prices for committed and uncommitted mortgage loans.Derivative assets and liabilities – Derivative assets are interest rate lock commitments and derivative liabilities are associated with forward commitments and investor commitments on loans. Fair value is based on market prices for similar instruments. Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date. Mortgage servicing rights – The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service.Mortgage loans held for investment – The fair value of mortgage loans held for investment is calculated based on Level 3 analysis which incorporates information including the value of underlying collateral, from markets where there is little observable trading activity. The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020, and the changes in the fair value of the Level 3 assets during the years ended December 31, 2021 and 2020: December 31, December 31, Balance Sheet Classification Hierarchy 2021 2020 Mortgage loans held for sale Mortgage loans held for sale Level 2 $ 353,063 $ 282,639Mortgage loans held for investment (1) Prepaid expenses and other assets Level 3 $ 13,456 $ 8,727Derivative assets Prepaid expenses and other assets Level 2 $ 5,944 $ 7,755Mortgage servicing rights (2) Prepaid expenses and other assets Level 3 $ 13,701 $ 4,115Derivative liabilities Accrued expenses and other liabilities Level 2 $ 359 $ 3,807 (1)The unobservable inputs used in the valuation of the mortgage loans held for investment include the value of underlying collateral, from markets where there is little observable trading activity.(2)The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 8.5%, 9.9%, and $0.085 per year per loan, respectively as of December 31, 2021 and 10.4%, 9.8%, and $0.084 per year per loan, respectively, as of December 31, 2020. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements: Year Ended December 31, Mortgage servicing rights 2021 2020Beginning of period$ 4,115 $ —Originations 10,295 4,115Settlements (920) —Changes in fair value 211 —End of period$ 13,701 $ 4,115 Year Ended December 31,Mortgage loans held for investment 2021 2020Beginning of period$ 8,727 $ 3,385Transfers from loans held for sale 7,075 7,050Settlements (2,235) (1,525)Reduction in unpaid principal balance (213) (111)Changes in fair value 102 (72)End of period$ 13,456 $ 8,727 For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Hierarchy Carrying Fair Value Carrying Fair ValueCash and cash equivalents Level 1 $ 316,310 $ 316,310 $ 394,001 $ 394,001Secured notes receivable (1) Level 2 $ — $ — $ 2,434 $ 2,4483.875% senior notes (2)(3) Level 2 $ 494,117 $ 504,375 $ — $ —5.875% senior notes (2)(3) Level 2 $ — $ — $ 396,821 $ 417,5006.750% senior notes (2)(3) Level 2 $ 495,581 $ 526,875 $ 494,768 $ 533,750Revolving line of credit(4) Level 2 $ — $ — $ — $ —Other financing obligations(4)(5) Level 3 $ 9,238 $ 9,238 $ 3,286 $ 3,286Mortgage repurchase facilities(4) Level 2 $ 331,876 $ 331,876 $ 259,050 $ 259,050 (1) During the year ended December 31, 2021, the secured note receivable was paid in full at $2.4 million. Prior year estimated fair value of the secured note receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.(2) Estimated fair value of the senior notes is based on recent trading activity in inactive markets.(3) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of December 31, 2021, these amounts totaled $5.9 million and $4.4 million for the 3.875% senior notes and 6.750% senior notes, respectively. As of December 31, 2020, these amounts totaled $5.2 million and $3.2 million for the 6.750% senior notes and 5.875% senior notes, respectively.(4) Carrying amount approximates fair value due to short-term nature and interest rate terms.(5) Insurance premium notes included in other financing obligations bore interest rates ranging from 2.99% to 3.24% during the year ended December 31, 2021 from 3.20% to 3.24% during the year ended December 31, 2020.During the year ended December 31, 2021, we recorded nominal impairment charges for one community. During the year ended December 31, 2020, we determined that inventory with a carrying value before impairment of $12.0 million within four communities across our Texas and Century Complete segments was not recoverable. Accordingly, we recognized impairment charges of an aggregate $2.2 million to reflect the estimated fair value of the communities of $9.8 million. The estimated fair value of the communities was determined through a discounted cash flow approach utilizing Level 3 inputs. Changes in our cash flow projections in future periods related to these communities may change our conclusions on the recoverability of inventory in the future.

Fair Value Disclosures

12 Months Ended

Dec. 31, 2021

12. Fair Value Disclosures Fair value measurements are used for the Company’s mortgage loans held for sale, mortgage loans held for investment, mortgage servicing rights, interest rate lock commitments and other derivative instruments on a recurring basis. We also utilize fair value measurements on a non-recurring basis for inventories, and intangible assets when events and circumstances indicate that the carrying value is not recoverable. The fair value hierarchy and its application to the Company’s assets and liabilities is as follows:Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are inactive; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at measurement date. Mortgage loans held for sale – Fair value is based on quoted market prices for committed and uncommitted mortgage loans.Derivative assets and liabilities – Derivative assets are interest rate lock commitments and derivative liabilities are associated with forward commitments and investor commitments on loans. Fair value is based on market prices for similar instruments. Level 3 – Valuations derived from techniques where one or more significant inputs or significant value drivers are unobservable in active markets at measurement date. Mortgage servicing rights – The fair value of the mortgage servicing rights is calculated using third-party valuations. The key assumptions, which are generally unobservable inputs, used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service.Mortgage loans held for investment – The fair value of mortgage loans held for investment is calculated based on Level 3 analysis which incorporates information including the value of underlying collateral, from markets where there is little observable trading activity. The following outlines the Company’s assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020, and the changes in the fair value of the Level 3 assets during the years ended December 31, 2021 and 2020: December 31, December 31, Balance Sheet Classification Hierarchy 2021 2020 Mortgage loans held for sale Mortgage loans held for sale Level 2 $ 353,063 $ 282,639Mortgage loans held for investment (1) Prepaid expenses and other assets Level 3 $ 13,456 $ 8,727Derivative assets Prepaid expenses and other assets Level 2 $ 5,944 $ 7,755Mortgage servicing rights (2) Prepaid expenses and other assets Level 3 $ 13,701 $ 4,115Derivative liabilities Accrued expenses and other liabilities Level 2 $ 359 $ 3,807 (1)The unobservable inputs used in the valuation of the mortgage loans held for investment include the value of underlying collateral, from markets where there is little observable trading activity.(2)The unobservable inputs used in the valuation of the mortgage servicing rights include mortgage prepayment rates, discount rates and cost to service, which were 8.5%, 9.9%, and $0.085 per year per loan, respectively as of December 31, 2021 and 10.4%, 9.8%, and $0.084 per year per loan, respectively, as of December 31, 2020. The high and low end of the range of unobservable inputs used in the valuation did not result in a significant change to the fair value measurement. The following table represents the reconciliation of the beginning and ending balance for the Level 3 recurring fair value measurements: Year Ended December 31, Mortgage servicing rights 2021 2020Beginning of period$ 4,115 $ —Originations 10,295 4,115Settlements (920) —Changes in fair value 211 —End of period$ 13,701 $ 4,115 Year Ended December 31,Mortgage loans held for investment 2021 2020Beginning of period$ 8,727 $ 3,385Transfers from loans held for sale 7,075 7,050Settlements (2,235) (1,525)Reduction in unpaid principal balance (213) (111)Changes in fair value 102 (72)End of period$ 13,456 $ 8,727 For the financial assets and liabilities that the Company does not reflect at fair value, the following present both their respective carrying value and fair value at December 31, 2021 and 2020: December 31, 2021 December 31, 2020 Hierarchy Carrying Fair Value Carrying Fair ValueCash and cash equivalents Level 1 $ 316,310 $ 316,310 $ 394,001 $ 394,001Secured notes receivable (1) Level 2 $ — $ — $ 2,434 $ 2,4483.875% senior notes (2)(3) Level 2 $ 494,117 $ 504,375 $ — $ —5.875% senior notes (2)(3) Level 2 $ — $ — $ 396,821 $ 417,5006.750% senior notes (2)(3) Level 2 $ 495,581 $ 526,875 $ 494,768 $ 533,750Revolving line of credit(4) Level 2 $ — $ — $ — $ —Other financing obligations(4)(5) Level 3 $ 9,238 $ 9,238 $ 3,286 $ 3,286Mortgage repurchase facilities(4) Level 2 $ 331,876 $ 331,876 $ 259,050 $ 259,050 (1) During the year ended December 31, 2021, the secured note receivable was paid in full at $2.4 million. Prior year estimated fair value of the secured note receivable was based on cash flow models discounted at market interest rates which considered the underlying risks of the note.(2) Estimated fair value of the senior notes is based on recent trading activity in inactive markets.(3) Carrying amounts include any associated unamortized deferred financing costs, premiums and discounts. As of December 31, 2021, these amounts totaled $5.9 million and $4.4 million for the 3.875% senior notes and 6.750% senior notes, respectively. As of December 31, 2020, these amounts totaled $5.2 million and $3.2 million for the 6.750% senior notes and 5.875% senior notes, respectively.(4) Carrying amount approximates fair value due to short-term nature and interest rate terms.(5) Insurance premium notes included in other financing obligations bore interest rates ranging from 2.99% to 3.24% during the year ended December 31, 2021 from 3.20% to 3.24% during the year ended December 31, 2020.During the year ended December 31, 2021, we recorded nominal impairment charges for one community. During the year ended December 31, 2020, we determined that inventory with a carrying value before impairment of $12.0 million within four communities across our Texas and Century Complete segments was not recoverable. Accordingly, we recognized impairment charges of an aggregate $2.2 million to reflect the estimated fair value of the communities of $9.8 million. The estimated fair value of the communities was determined through a discounted cash flow approach utilizing Level 3 inputs. Changes in our cash flow projections in future periods related to these communities may change our conclusions on the recoverability of inventory in the future.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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