Warehouse Facilities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warehouse Facilities | Warehouse Facilities To finance origination activities, the Company has entered into warehouse facilities collateralized by the value of the mortgage loans pledged for a period of up to 90 days or until they are sold to the GSEs or other third-party investors in the secondary market, typically within 30 days of origination. As of September 30, 2024, the Company had outstanding short-term borrowings under warehouse facilities of $3.0 million with a weighted average borrowing rate of 7.34% and weighted average remaining maturities of 87 days. The Company did not have any outstanding borrowings under warehouse facilities as of December 31, 2023.
At September 30, 2024 and December 31, 2023, borrowings under warehouse facilities had the following remaining maturities:
Although the transactions under warehouse facilities represent committed borrowings from the time of funding until maturity, the respective lender retains the right to mark the underlying collateral to fair value. A reduction in the value of pledged assets below a designated threshold would require the Company to provide additional collateral or pay down the facility. As of September 30, 2024, mortgage loans held-for-sale with a carrying value of $3.1 million were pledged as collateral for the Company’s future payment obligations under its warehouse facilities. Additionally, as of September 30, 2024, $0.1 million of cash was held in restricted accounts as collateral for the future payment obligations of outstanding warehouse facility balances. The Company does not anticipate any defaults by its warehouse facility counterparties, although there can be no assurance that any such default or defaults will not occur. Convertible Senior Notes The Company’s convertible senior notes are unsecured, pay interest semiannually at a rate of 6.25% per annum and are convertible at the option of the holder into shares of the Company’s common stock. As of September 30, 2024 and December 31, 2023, the notes had a conversion rate of 33.8752 and 33.8752 shares of common stock per $1,000 principal amount of the notes, respectively. The notes will mature in January 2026, unless earlier converted or repurchased in accordance with their terms.
The Company does not have the right to redeem its convertible senior notes prior to maturity, but may repurchase the notes in open market or privately negotiated transactions at the same or differing price without giving prior notice to or obtaining any consent of the holders. The Company may also be required to repurchase the notes from holders under certain circumstances. During the nine months ended September 30, 2024, the Company repurchased $10.0 million principal amount of its convertible senior notes in open market transactions for an aggregate cost of $9.7 million. During the nine months ended September 30, 2023, the Company repurchased $15.6 million principal amount of its convertible senior notes in open market transactions for an aggregate cost of $13.2 million. The difference between the consideration transferred and the carrying value of the convertible notes repurchased resulted in a gain of $0.2 million for the nine months ended September 30, 2024 and $2.2 million for the nine months ended September 30, 2023 recorded within the other income line item on the condensed consolidated statements of comprehensive income (loss). The Company did not repurchase any of its convertible senior notes during the three months ended September 30, 2024 or 2023.
As of September 30, 2024 and December 31, 2023, $261.9 million and $271.9 million principal amount of convertible senior notes, respectively, remained outstanding. The outstanding amount due on the notes as of September 30, 2024 and December 31, 2023 was $259.8 million and $268.6 million, respectively, net of unamortized deferred issuance costs.
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