Quarterly report pursuant to Section 13 or 15(d)

Term Notes Payable

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Term Notes Payable
 9 Months Ended
Sep. 30, 2023
Term Notes Payable [Abstract]  
Term Notes Payable Term Notes Payable
The debt issued in connection with the Company’s on-balance sheet MSR securitization is classified as term notes payable and carried at outstanding principal balance, which was $295.8 million as of September 30, 2023 and $400.0 million as of December 31, 2022, respectively, net of any unamortized deferred debt issuance costs, on the Company’s condensed consolidated balance sheets. During both the three and nine months ended September 30, 2023, the Company repurchased $104.2 million principal amount of its MSR term notes in open market transactions for an aggregate cost of $101.0 million, resulting in a gain, net of unamortized deferred issuance costs, of $2.9 million recorded within the other income (loss) line item on the condensed consolidated statements of comprehensive loss. No notes were repurchased during the three and nine months ended September 30, 2022. As of September 30, 2023 and December 31, 2022, the outstanding amount due on term notes payable was $295.0 million and $398.0 million, net of deferred debt issuance costs, with a weighted average interest rate of 8.23% and 7.19% and weighted average remaining maturities of 0.7 years and 1.5 years. The Company’s term notes previously incorporated LIBOR as the referenced rate, which was replaced with Term SOFR, plus a spread adjustment, during the three months ended June 30, 2023. See Note 2 - Basis of Presentation and Significant Accounting Policies for further discussion of the transition away from LIBOR.
At September 30, 2023 and December 31, 2022, the Company pledged MSR with a carrying value of $398.4 million and $500.0 million and weighted average underlying loan coupon of 3.28% and 3.33%, respectively, as collateral for term notes payable. Additionally, as of September 30, 2023 and December 31, 2022, $0.2 million and $0.2 million of cash was held in restricted accounts as collateral for the future payment obligations of outstanding term notes payable, respectively.