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Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
The following table presents the gains (losses) recognized on our derivative instruments:
Year Ended December 31,
202320222021
Interest rate swaps(1)
$(8,782)$302,002 $42,741 
Interest rate caps(1)
(5,910)8,680 (125)
Home loan pipeline hedges(1)
2,558 44,152 6,474 
Derivative contracts to manage future loan sale execution risk(12,134)354,834 49,090 
Interest rate swaps(2)
876 15,064 — 
IRLCs(1)
1,576 (3,543)(11,861)
Interest rate caps(1)
5,975 (8,583)(193)
Purchase price earn-out(1)(3)
9 1,094 9,312 
Third party warrants(4)
78 (21)573 
Special payment(5)
— — (21,181)
Total
$(3,620)$358,845 $25,740 
_____________________
(1) Recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss.
(2) Represents derivative contracts to manage securitization investment interest rate risk, which are recorded within noninterest income—loan origination, sales, and securitizations in the consolidated statements of operations and comprehensive loss.
(3) In conjunction with a loan sale agreement, we are entitled to receive payments from the buyer of the loans underlying the agreement if the internal rate of return (as defined in the loan sale agreement) on such loans exceeds a specified hurdle, subject to a dollar cap.
(4) Includes amounts recorded within noninterest income—other, noninterest expense—cost of operations and noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, the latter of which represents the amortization of a deferred liability recognized at the initial fair value of the third party warrants acquired, as we are also a customer of the third party.
(5) In conjunction with the Business Combination, we made a one-time special payment to the holders of Series 1 Redeemable Preferred Stock, which was paid from the proceeds of the Business Combination and settled contemporaneously with the Business Combination. The special payment was recognized within noninterest expense—general and administrative in the consolidated statements of operations and comprehensive loss, as this feature was accounted for as an embedded derivative that was not clearly and closely related to the host contract, and will not have a subsequent impact on our consolidated financial results. The Series 1 Redeemable Preferred Stock has no stated maturity.
Schedule of Offsetting Assets
The following table presents information about derivative instruments subject to enforceable master netting arrangements:
December 31, 2023December 31, 2022
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
Interest rate swaps$2,208 $(1,347)$23,128 $— 
Interest rate caps— (3,276)— (9,251)
Home loan pipeline hedges1 (1,328)1,484 (80)
Total, gross$2,209 $(5,951)$24,612 $(9,331)
Derivative netting(1,347)1,347 (80)80 
Total, net(1)
$862 $(4,604)$24,532 $(9,251)
_____________________
(1) We did not have a cash collateral requirement related to these instruments as of December 31, 2023 and December 31, 2022.
Schedule of Offsetting Liabilities
The following table presents information about derivative instruments subject to enforceable master netting arrangements:
December 31, 2023December 31, 2022
Gross Derivative AssetsGross Derivative LiabilitiesGross Derivative AssetsGross Derivative Liabilities
Interest rate swaps$2,208 $(1,347)$23,128 $— 
Interest rate caps— (3,276)— (9,251)
Home loan pipeline hedges1 (1,328)1,484 (80)
Total, gross$2,209 $(5,951)$24,612 $(9,331)
Derivative netting(1,347)1,347 (80)80 
Total, net(1)
$862 $(4,604)$24,532 $(9,251)
_____________________
(1) We did not have a cash collateral requirement related to these instruments as of December 31, 2023 and December 31, 2022.
Schedule of Notional Amounts of Derivatives
The following table presents the notional amount of derivative contracts outstanding:
December 31,
20232022
Derivative contracts to manage future loan sale execution risk:
Interest rate swaps$12,491,000 $5,638,177 
Interest rate caps405,000 405,000 
Home loan pipeline hedges226,000 126,000 
Interest rate caps(1)
405,000 405,000 
Interest rate swaps(2)
84,000 171,823 
IRLCs(3)
126,388 82,335 
Total$13,737,388 $6,828,335 
_____________________
(1) We sold an interest rate cap that was subject to master netting to offset an interest rate cap purchase made in conjunction with a contract to manage future loan sale execution risk.
(2) Represents interest rate swaps utilized to manage interest rate risk associated with certain of our securitization investments.
(3) Amounts correspond with home loan funding commitments subject to IRLC agreements.