☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-3474065 | |
(State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.) | |
Suite | ||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchangeon which registered | ||
Class A common stock, par value $0.0001 per share | FOA | The New York Stock Exchange | ||
Warrants to purchase shares of Class A Common Stock | FOA.WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
Page | ||||||
64 | ||||||
Item 3. | 109 | |||||
Item 4. | 111 | |||||
Item 1. | 114 | |||||
Item 1A. | 114 | |||||
Item 2. | 114 | |||||
Item 3. | 114 | |||||
Item 4. | 114 | |||||
Item 5. | 114 | |||||
Item 6. | 115 | |||||
116 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 191,736 | $ | 233,101 | ||||
Restricted cash | 325,226 | 306,262 | ||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations, at fair value | 10,347,459 | 9,929,163 | ||||||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,939,651 | 5,396,167 | ||||||
Mortgage loans held for investment, at fair value | 1,077,670 | 730,821 | ||||||
Mortgage loans held for sale, at fair value | 2,047,015 | 2,222,811 | ||||||
Debt securities | 7,317 | 10,773 | ||||||
Mortgage servicing rights, at fair value, $96,073 and $14,088, subject to nonrecourse MSR financing liability, respectively | 340,949 | 180,684 | ||||||
Derivative assets | 54,993 | 92,065 | ||||||
Fixed assets and leasehold improvements, net | 29,503 | 24,512 | ||||||
Goodwill | 1,298,796 | 121,233 | ||||||
Intangible assets, net | 692,676 | 16,931 | ||||||
Other assets, net | 315,102 | 300,632 | ||||||
TOTAL ASSETS | $ | 22,668,093 | $ | 19,565,155 | ||||
LIABILITIES, CONTINGENTLY REDEEMABLE NONCONTROLLING INTEREST (“CRNCI”) AND EQUITY | ||||||||
HMBS related obligation, at fair value | $ | 10,216,310 | $ | 9,788,668 | ||||
Nonrecourse debt, at fair value | 5,831,083 | 5,271,842 | ||||||
Other financing lines of credit | 3,325,156 | 2,973,743 | ||||||
Payables and other liabilities | 509,803 | 400,058 | ||||||
Notes payable, net | 353,567 | 336,573 | ||||||
TOTAL LIABILITIES | 20,235,919 | 18,770,884 | ||||||
Commitments and Contingencies (Note 21) | 0 | 0 | ||||||
CRNCI | 0 | 166,231 | ||||||
EQUITY (Note 30) | ||||||||
FoA Equity Capital LLC member’s equity | 0 | 628,176 | ||||||
Class A Common Stock (Successor), $0.0001 par value; 6,000,000,000 shares authorized; 58,936,744 shares issued and outstanding at September 30, 2021 | 6 | — | ||||||
Class B Common Stock (Successor), $0.0001 par value; 1,000,000 shares authorized, 6 shares issued and outstanding at September 30, 2021 | 0 | — | ||||||
Additional paid-in capital (Successor) | 821,316 | — | ||||||
Accumulated deficit (Successor) | (48,164 | ) | — | |||||
Accumulated other comprehensive (loss) income | (92 | ) | 9 | |||||
Noncontrolling interest | 1,659,108 | (145 | ) | |||||
TOTAL EQUITY | 2,432,174 | 628,040 | ||||||
TOTAL LIABILITIES, CRNCI AND EQUITY | $ | 22,668,093 | $ | 19,565,155 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 226,846 | $ | 141,238 | ||||
Restricted cash | 315,980 | 322,403 | ||||||
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities (“HMBS”) related obligations, at fair value | 10,672,152 | 10,556,054 | ||||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,235,990 | 6,218,194 | ||||||
Loans held for investment, at fair value | 1,218,990 | 1,031,328 | ||||||
Loans held for sale, at fair value | 1,709,357 | 2,052,378 | ||||||
Mortgage servicing rights (“MSRs”), at fair value, $163,981 and $142,435, subject to nonrecourse MSRs financing liability, respectively | 426,102 | 427,942 | ||||||
Derivative assets | 281,205 | 48,870 | ||||||
Fixed assets and leasehold improvements, net | 29,933 | 29,256 | ||||||
Intangible assets, net | 589,092 | 602,900 | ||||||
Other assets, net | 372,260 | 358,383 | ||||||
TOTAL ASSETS | $ | 22,077,907 | $ | 21,788,946 | ||||
LIABILITIES AND EQUITY | ||||||||
HMBS related obligations, at fair value | $ | 10,548,131 | $ | 10,422,358 | ||||
Nonrecourse debt, at fair value | 6,323,777 | 6,111,242 | ||||||
Other financing lines of credit | 3,189,756 | 3,347,442 | ||||||
Payables and other liabilities | 630,952 | 471,511 | ||||||
Notes payable, net | 353,196 | 353,383 | ||||||
TOTAL LIABILITIES | 21,045,812 | 20,705,936 | ||||||
Commitments and Contingencies (Note 20) | 0 | 0 | ||||||
EQUITY (Note 27) | ||||||||
Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 60,815,569 shares issued and outstanding at March 31, 2022 | 6 | 6 | ||||||
Class B Common Stock, $0.0001 par value; 1,000,000 shares authorized, 15 shares issued and outstanding at March 31, 2022 | 0 | 0 | ||||||
Additional paid-in capital | 845,002 | 831,620 | ||||||
Accumulated deficit | (452,106 | ) | (443,613 | ) | ||||
Accumulated other comprehensive loss | (99 | ) | (110 | ) | ||||
Noncontrolling interest | 639,292 | 695,107 | ||||||
TOTAL EQUITY | 1,032,095 | 1,083,010 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 22,077,907 | $ | 21,788,946 | ||||
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Restricted cash | $ | 306,615 | $ | 293,580 | $ | 303,232 | $ | 311,652 | ||||||||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,939,651 | 5,396,167 | ||||||||||||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,103,454 | 6,099,607 | ||||||||||||||
Other assets | 69,947 | 79,528 | 73,701 | 67,593 | ||||||||||||
TOTAL ASSETS | $ | 6,316,213 | $ | 5,769,275 | $ | 6,480,387 | $ | 6,478,852 | ||||||||
LIABILITIES | ||||||||||||||||
Nonrecourse debt, at fair value | $ | 5,735,010 | $ | 5,257,754 | $ | 6,032,156 | $ | 5,857,069 | ||||||||
Payables and other liabilities | 117 | 291 | 633 | 428 | ||||||||||||
TOTAL LIABILITIES | $ | 5,735,127 | $ | 5,258,045 | $ | 6,032,789 | $ | 5,857,497 | ||||||||
Net fair value of assets subject to nonrecourse debt | $ | 581,086 | $ | 511,230 | ||||||||||||
Net carrying value of assets subject to nonrecourse debt | $ | 447,598 | $ | 621,355 | ||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
REVENUES | ||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 118,352 | $ | 291,334 | ||||||||
Net fair value gains on loans and related obligations | 10,435 | 76,663 | ||||||||||
Fee income | 157,604 | 161,371 | ||||||||||
Net interest expense: | ||||||||||||
Interest income | 13,873 | 12,661 | ||||||||||
Interest expense | (32,830 | ) | (34,366 | ) | ||||||||
Net interest expense | (18,957 | ) | (21,705 | ) | ||||||||
TOTAL REVENUES | 267,434 | 507,663 | ||||||||||
EXPENSES | ||||||||||||
Salaries, benefits and related expenses | 209,076 | 238,530 | ||||||||||
Occupancy, equipment rentals and other office related expenses | 7,837 | 7,597 | ||||||||||
General and administrative expenses | 132,623 | 127,187 | ||||||||||
TOTAL EXPENSES | 349,536 | 373,314 | ||||||||||
OTHER, NET | 4,772 | (8,892 | ) | |||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | (77,330 | ) | 125,457 | |||||||||
Provision (benefit) for income taxes | (13,335 | ) | 1,137 | |||||||||
NET INCOME (LOSS) | (63,995 | ) | 124,320 | |||||||||
Contingently Redeemable Noncontrolling Interest (“CRNCI”) | 0 | 4,260 | ||||||||||
Noncontrolling interest | (55,502 | ) | 201 | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | (8,493 | ) | $ | 119,859 | |||||||
EARNINGS PER SHARE (Note 26) | ||||||||||||
Basic weighted average shares outstanding | 60,773,891 | 0 | ||||||||||
Basic net loss per share | $ | (0.14 | ) | $ | 0 | |||||||
Diluted weighted average shares outstanding | 189,448,936 | 0 | ||||||||||
Diluted net loss per share | $ | (0.30 | ) | $ | 0 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
NET INCOME (LOSS) | $ | (63,995 | ) | $ | 124,320 | |||||||
COMPREHENSIVE INCOME (LOSS) ITEM: | ||||||||||||
Impact of foreign currency translation adjustment | 11 | (11 | ) | |||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | (63,984 | ) | 124,309 | |||||||||
Less: Net income (loss) attributable to the noncontrolling interest and CRNCI | (55,495 | ) | 4,461 | |||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | (8,489 | ) | $ | 119,848 | |||||||
FoA Equity Capital LLC Member’s Equity | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||
Predecessor: | ||||||||||||||||
Balance at December 31, 2020 | $ | 628,176 | $ | 9 | $ | (145) | $ | 628,040 | ||||||||
Contributions from members | 1,426 | — | — | 1,426 | ||||||||||||
Distributions to members | (75,000) | — | — | (75,000) | ||||||||||||
Noncontrolling interest distributions | — | — | (620) | (620) | ||||||||||||
Net income | 119,859 | — | 201 | 120,060 | ||||||||||||
Accretion of CRNCI to redemption price | (32,725) | — | — | (32,725) | ||||||||||||
Foreign currency translation adjustment | — | (11) | — | (11) | ||||||||||||
Balance at March 31, 2021 | $ | 641,736 | $ | (2) | $ | (564) | $ | 641,170 | ||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
REVENUES | ||||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | $ | 210,095 | $ | 397,672 | $ | 291,334 | $ | 407,926 | $ | 836,901 | ||||||||||
Net fair value gains on mortgage loans and related obligations | 122,509 | 253,660 | 76,663 | 95,955 | 221,638 | |||||||||||||||
Fee income | 145,725 | 236,589 | 161,371 | 119,375 | 266,002 | |||||||||||||||
Net interest expense: | ||||||||||||||||||||
Interest income | 15,862 | 29,013 | 12,661 | 9,937 | 29,615 | |||||||||||||||
Interest expense | (37,691 | ) | (71,317 | ) | (34,366 | ) | (25,935 | ) | (93,165 | ) | ||||||||||
Net interest expense | (21,829 | ) | (42,304 | ) | (21,705 | ) | (15,998 | ) | (63,550 | ) | ||||||||||
TOTAL REVENUES | 456,500 | 845,617 | 507,663 | 607,258 | 1,260,991 | |||||||||||||||
EXPENSES | ||||||||||||||||||||
Salaries, benefits and related expenses | 262,000 | 536,731 | 238,530 | 240,381 | 615,034 | |||||||||||||||
Occupancy, equipment rentals and other office related expenses | 8,283 | 15,003 | 7,597 | 8,184 | 22,795 | |||||||||||||||
General and administrative expenses | 141,595 | 260,896 | 127,217 | 113,804 | 273,584 | |||||||||||||||
TOTAL EXPENSES | 411,878 | 812,630 | 373,344 | 362,369 | 911,413 | |||||||||||||||
OTHER, NET | 9,928 | 7,825 | (8,862 | ) | (2,470 | ) | (2,514 | ) | ||||||||||||
NET INCOME BEFORE INCOME TAXES | 54,550 | 40,812 | 125,457 | 242,419 | 347,064 | |||||||||||||||
Provision for income taxes | 4,440 | 5,526 | 1,137 | 808 | 1,574 | |||||||||||||||
NET INCOME | 50,110 | 35,286 | 124,320 | 241,611 | 345,490 | |||||||||||||||
CRNCI | 0 | 0 | 4,260 | (4,953 | ) | (22,959 | ) | |||||||||||||
Noncontrolling interest | 28,726 | 11,637 | 201 | 276 | 1,076 | |||||||||||||||
NET INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 21,384 | $ | 23,649 | $ | 119,859 | $ | 246,288 | $ | 367,373 | ||||||||||
EARNINGS PER SHARE (Note 28) | ||||||||||||||||||||
Basic weighted average shares outstanding | 59,861,171 | 59,871,386 | ||||||||||||||||||
Basic net income per share | $ | 0.36 | $ | 0.39 | ||||||||||||||||
Diluted weighted average shares outstanding | 191,161,431 | 191,180,610 | ||||||||||||||||||
Diluted net income per share | $ | 0.22 | $ | 0.17 |
Class A Common Stock | Class B Common Stock | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings / Accumulated Deficit | Accumulated Other Comprehensive Loss | Class A LLC Units | Amount | Total Equity | |||||||||||||||||||||||||||||||
Successor: | ||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 60,755,069 | $ | 6 | 15 | $ | 0 | $ | 831,620 | $ | (443,613 | ) | $ | (110 | ) | 128,693,867 | $ | 695,107 | $ | 1,083,010 | |||||||||||||||||||||
Net | — | — | — | — | 0 | (8,493 | ) | 0 | — | (55,502 | ) | (63,995 | ) | |||||||||||||||||||||||||||
Equity based compensation, net | — | — | — | — | 13,104 | — | — | — | — | 13,104 | ||||||||||||||||||||||||||||||
Conversion of LLC Units for Class A Common Stock (Note 27 - Equity) | 49,696 | — | — | — | 230 | — | — | (49,696 | ) | (255 | ) | (25 | ) | |||||||||||||||||||||||||||
Settlement of long term incentive plan (“LTIP”) Restricted Stock Units (“RSUs”), net (Note 26 - Earnings Per Share) | 10,804 | — | — | — | 48 | — | — | (10,804 | ) | (58 | ) | (10 | ) | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | 11 | — | — | 11 | ||||||||||||||||||||||||||||||
Balance at March 31, 2022 | 60,815,569 | $ | 6 | 15 | $ | 0 | $ | 845,002 | $ | (452,106 | ) | $ | (99 | ) | 128,633,367 | $ | 639,292 | $ | 1,032,095 | |||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Operating Activities | ||||||||||||
Net income (loss) | $ | (63,995 | ) | $ | 124,320 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | 387,736 | (6,277 | ) | |||||||||
Net cash provided by operating activities | 323,741 | 118,043 | ||||||||||
Investing Activities | ||||||||||||
Purchases and originations of loans held for investment | (1,848,155 | ) | (1,151,925 | ) | ||||||||
Proceeds/payments received on loans held for investment | 614,074 | 677,777 | ||||||||||
Purchases and origination of loans held for investment, subject to nonrecourse debt | (30,342 | ) | (12,247 | ) | ||||||||
Proceeds/payments on loans held for investment, subject to nonrecourse debt | 585,148 | 217,452 | ||||||||||
Purchases of debt securities | (9,159 | ) | (557 | ) | ||||||||
Proceeds/payments on debt securities | 519 | 2,096 | ||||||||||
Purchases of mortgage servicing rights | 0 | (9,014 | ) | |||||||||
Proceeds on sale of mortgage servicing rights | 96,887 | 7,765 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 0 | (749 | ) | |||||||||
Acquisition of fixed assets | (4,176 | ) | (4,178 | ) | ||||||||
Debtor in possession (“DIP”) Financing | 0 | (35,260 | ) | |||||||||
Other investing activities, net | (4,901 | ) | (3,207 | ) | ||||||||
Net cash used in investing activities | (600,105 | ) | (312,047 | ) | ||||||||
Financing Activities | ||||||||||||
Proceeds from issuance of HMBS related obligations | 948,682 | 602,172 | ||||||||||
Payments of HMBS related obligations | (737,327 | ) | (506,142 | ) | ||||||||
Proceeds from issuance of nonrecourse debt | 1,114,665 | 579,518 | ||||||||||
Payments on nonrecourse debt | (812,572 | ) | (658,300 | ) | ||||||||
Proceeds from other financing lines of credit | 7,434,937 | 10,027,696 | ||||||||||
Payments on other financing lines of credit | (7,592,623 | ) | (9,660,588 | ) | ||||||||
Debt issuance costs | (234 | ) | (2,467 | ) | ||||||||
Member distributions | 0 | (75,000 | ) | |||||||||
Other financing activities, net | 10 | 806 | ||||||||||
Net cash provided by financing activities | 355,538 | 307,695 | ||||||||||
Foreign currency translation adjustment | 11 | (7 | ) | |||||||||
Net increase in cash and restricted cash | 79,185 | 113,684 | ||||||||||
Cash and restricted cash, beginning of period | 463,641 | 539,363 | ||||||||||
Cash and restricted cash, end of period | $ | 542,826 | $ | 653,047 | ||||||||
Supplementary Cash Flows Information | ||||||||||||
Cash paid for interest | $ | 55,142 | $ | 50,071 | ||||||||
Cash paid for income taxes, net | 22 | 63 | ||||||||||
Loans transferred to loans held for investment, at fair value, from loans held for investment, subject to nonrecourse debt, at fair value | 478,208 | 283,499 | ||||||||||
Loans transferred to loans held for investment, subject to nonrecourse debt, at fair value from loans held for investment, at fair value | 1,366,898 | 272,098 |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
NET INCOME | $ | 50,110 | $ | 35,286 | $ | 124,320 | $ | 241,611 | $ | 345,490 | ||||||||||
COMPREHENSIVE LOSS ITEM: | ||||||||||||||||||||
Impact of foreign currency translation adjustment | (65 | ) | (92 | ) | (11 | ) | 26 | 37 | ||||||||||||
TOTAL COMPREHENSIVE INCOME | 50,045 | 35,194 | 124,309 | 241,637 | 345,527 | |||||||||||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest and CRNCI | 28,681 | 11,573 | 4,461 | (4,677 | ) | (21,883 | ) | |||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ | 21,364 | $ | 23,621 | $ | 119,848 | $ | 246,314 | $ | 367,410 | ||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Loans transferred to loans held for investment, subject to HMBS, at fair value from loans held for investment, at fair value | 773,959 | 0 | ||||||||||
Loans transferred to loans held for investment, at fair value, from loans held for sale, at fair value | 0 | 42,909 |
FoA Equity Capital LLC Member’s Equity | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total | |||||||||||||
Predecessor: | ||||||||||||||||
Balance at December 31, 2019 (audited) | $ | 482,719 | $ | (51 | ) | $ | 145 | $ | 482,813 | |||||||
Contributions from members | 1,042 | — | — | 1,042 | ||||||||||||
Net (loss) income | (27,249 | ) | — | 229 | (27,020 | ) | ||||||||||
Foreign currency translation adjustment | — | (8 | ) | — | (8 | ) | ||||||||||
Balance at March 31, 2020 | 456,512 | (59 | ) | 374 | 456,827 | |||||||||||
Distributions to members | (578 | ) | — | — | (578 | ) | ||||||||||
Noncontrolling interest distributions | — | — | (310 | ) | (310 | ) | ||||||||||
Net income | 148,335 | — | 571 | 148,906 | ||||||||||||
Foreign currency translation adjustment | — | 18 | — | 18 | ||||||||||||
Balance at June 30, 2020 | 604,269 | (41 | ) | 635 | 604,863 | |||||||||||
Distributions to members | (1,781 | ) | — | — | (1,781 | ) | ||||||||||
Noncontrolling interest contributions | — | — | 16 | 16 | ||||||||||||
Noncontrolling interest distributions | — | — | (702 | ) | (702 | ) | ||||||||||
Net income | 246,288 | — | 276 | 246,564 | ||||||||||||
Foreign currency translation adjustment | — | 27 | — | 27 | ||||||||||||
Balance at September 30, 2020 | $ | 848,776 | $ | (14 | ) | $ | 225 | $ | 848,987 | |||||||
Balance at December 31, 2020 (audited) | $ | 628,176 | $ | 9 | $ | (145 | ) | $ | 628,040 | |||||||
Contributions from members | 1,426 | — | — | 1,426 | ||||||||||||
Distributions to members | (75,000 | ) | — | — | (75,000 | ) | ||||||||||
Noncontrolling interest distributions | — | — | (620 | ) | (620 | ) | ||||||||||
Net income | 119,859 | — | 201 | 120,060 | ||||||||||||
Accretion of CRNCI to redemption price | (32,725 | ) | — | — | (32,725 | ) | ||||||||||
Foreign currency translation adjustment | — | (11 | ) | — | (11 | ) | ||||||||||
Balance at March 31, 2021 | $ | 641,736 | $ | (2 | ) | $ | (564 | ) | $ | 641,170 | ||||||
Class A Common Stock | Class B Common Stock | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Retained Earnings / Accumulated Deficit | Accumulated Other Comprehensive Loss | Class A LLC Units | Amount | Total Equity | |||||||||||||||||||||||||||||||
Successor: | ||||||||||||||||||||||||||||||||||||||||
Balance | 59,881,714 | $ | 6 | 7 | $ | — | $ | 758,243 | $ | (71,813 | ) | $ | — | 131,318,286 | $ | 1,658,545 | $ | 2,344,981 | ||||||||||||||||||||||
Net (loss) income | — | — | — | — | — | 2,265 | — | — | (17,089 | ) | (14,824 | ) | ||||||||||||||||||||||||||||
Noncontrolling contributions | — | — | — | — | — | — | — | — | 24 | 24 | ||||||||||||||||||||||||||||||
Noncontrolling distributions | — | — | — | — | — | — | — | — | (137 | ) | (137 | ) | ||||||||||||||||||||||||||||
Equity compensation - Restricted Stock Units (“RSUs”) | — | — | — | — | 49,278 | — | — | — | — | 49,278 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (27 | ) | — | — | (27 | ) | ||||||||||||||||||||||||||||
Balance | 59,881,714 | $ | 6 | 7 | $ | — | $ | 807,521 | $ | (69,548 | ) | $ | (27 | ) | 131,318,286 | $ | 1,641,343 | $ | 2,379,295 | |||||||||||||||||||||
Net income | — | — | — | — | — | 21,384 | — | — | 28,726 | 50,110 | ||||||||||||||||||||||||||||||
Noncontrolling distributions | — | — | — | — | — | — | — | — | (418 | ) | (418 | ) | ||||||||||||||||||||||||||||
Equity based compensation | — | — | — | — | 12,036 | — | — | — | — | 12,036 | ||||||||||||||||||||||||||||||
Net surrender to settle RSUs | (944,970 | ) | — | (1 | ) | — | 1,759 | — | — | (829,222 | ) | (10,543 | ) | (8,784 | ) | |||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (65 | ) | — | 0 | (65 | ) | ||||||||||||||||||||||||||||
Balance at September 30, 2021 | 58,936,744 | $ | 6 | 6 | $ | 0 | $ | 821,316 | $ | (48,164 | ) | $ | (92 | ) | 130,489,064 | $ | 1,659,108 | $ | 2,432,174 | |||||||||||||||||||||
April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the nine months ended September 30, 2020 | ||||||||||
Successor | Predecessor | |||||||||||
Operating Activities | ||||||||||||
Net income | $ | 35,286 | $ | 124,320 | $ | 345,490 | ||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | (107,899 | ) | (6,277 | ) | (722,262 | ) | ||||||
Net cash (used in) provided by operating activities | (72,613 | ) | 118,043 | (376,772 | ) | |||||||
Investing Activities | ||||||||||||
Purchases and originations of mortgage loans held for investment | (2,658,540 | ) | (1,151,925 | ) | (2,974,275 | ) | ||||||
Proceeds/payments received on mortgage loans held for investment | 1,446,930 | 677,777 | 1,373,034 | |||||||||
Purchases and origination of mortgage loans held for investment, subject to nonrecourse debt | (25,081 | ) | (12,247 | ) | (31,730 | ) | ||||||
Proceeds/payments on mortgage loans held for investment, subject to nonrecourse debt | 556,466 | 217,452 | 548,901 | |||||||||
Purchases of debt securities | (1,449 | ) | (557 | ) | (38,749 | ) | ||||||
Proceeds/payments on debt securities, net | 3,238 | 2,096 | 138,320 | |||||||||
Purchases of mortgage servicing rights | (2,352 | ) | (9,014 | ) | — | |||||||
Proceeds on sale of mortgage servicing rights | 2,501 | 7,765 | — | |||||||||
Acquisition of subsidiaries, net of cash acquired | (22,838 | ) | (749 | ) | 351 | |||||||
Purchase of investments | — | — | (3,938 | ) | ||||||||
Acquisition of fixed assets | (8,636 | ) | (4,178 | ) | (5,611 | ) | ||||||
Payments on deferred purchase price liability | (311 | ) | (657 | ) | (1,504 | ) | ||||||
Issuance of convertible notes receivable | — | (2,550 | ) | — | ||||||||
DIP Financing | — | (35,260 | ) | — | ||||||||
Net cash used in investing activities | (710,072 | ) | (312,047 | ) | (995,201 | ) | ||||||
Financing Activities | ||||||||||||
Proceeds from securitizations of reverse mortgage loans, subject to HMBS related obligations | 1,587,902 | 602,172 | 1,433,324 | |||||||||
Payments of HMBS related obligations | (1,221,327 | ) | (506,142 | ) | (1,495,917 | ) | ||||||
Proceeds from issuance of nonrecourse debt, net | 1,270,334 | 579,518 | 2,554,115 | |||||||||
Payments on nonrecourse debt | (809,184 | ) | (658,300 | ) | (1,132,984 | ) | ||||||
Proceeds from other financing lines of credit | 18,451,706 | 10,027,696 | 25,119,693 | |||||||||
Payments on other financing lines of credit | (18,401,507 | ) | (9,660,588 | ) | (24,942,223 | ) | ||||||
Debt issuance costs | (1,342 | ) | (2,467 | ) | (3,191 | ) | ||||||
Payments on notes payable | — | — | (26,771 | ) | ||||||||
Principal payments under capital lease obligation | — | — | (680 | ) | ||||||||
Member contributions | 0 | 1,426 | 234 | |||||||||
Member distributions | 0 | (75,000 | ) | (1,552 | ) | |||||||
Settlement of CRNCI | (203,216 | ) | — | — | ||||||||
Noncontrolling interest contributions | 24 | — | 16 | |||||||||
Noncontrolling interest distributions | (555 | ) | (620 | ) | (1,012 | ) | ||||||
Net cash provided by financing activities | 672,835 | 307,695 | 1,503,052 | |||||||||
Foreign currency translation adjustment | (15 | ) | (7 | ) | 12 | |||||||
Net (decrease) increase in cash and restricted cash | (109,865 | ) | 113,684 | 131,091 | ||||||||
Cash and restricted cash, beginning of period | 626,827 | 539,363 | 382,664 | |||||||||
April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the nine months ended September 30, 2020 | ||||||||||
Successor | Predecessor | |||||||||||
Cash and restricted cash, end of period | $ | 516,962 | $ | 653,047 | $ | 513,755 | ||||||
Supplementary Cash Flows Information | ||||||||||||
Cash paid for interest | $ | 124,312 | $ | 50,071 | $ | 103,578 | ||||||
Cash paid for taxes, net | 1,882 | 63 | 1,026 | |||||||||
Loans transferred to mortgage loans held for investment, at fair value, from mortgage loans held for investment, subject to nonrecourse debt, at fair value | 242,650 | 283,428 | 444,238 | |||||||||
Loans transferred to mortgage loans held for sale, at fair value, from mortgage loans held for investment, at fair value | 48,759 | — | 167,590 | |||||||||
Loans transferred to government guaranteed receivables from mortgage loans held for investment, at fair value, and mortgage loans held for investment, subject to nonrecourse debt, at fair value | 343 | 71 | 57,554 | |||||||||
Loans transferred to mortgage loans held for investment, subject to nonrecourse debt, at fair value, from mortgage loans held for investment, at fair value | 1,309,669 | 272,098 | 2,591,455 | |||||||||
Loans transferred to mortgage loans held for investment, subject to HMBS, at fair value, from mortgage loans held for investment, at fair value | 1,393,897 | 42,909 | — |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Operating Activities | ||||||||||||
Net income (loss) | $ | (63,995 | ) | $ | 124,320 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | 387,736 | (6,277 | ) | |||||||||
Net cash provided by operating activities | 323,741 | 118,043 | ||||||||||
Investing Activities | ||||||||||||
Purchases and originations of loans held for investment | (1,848,155 | ) | (1,151,925 | ) | ||||||||
Proceeds/payments received on loans held for investment | 614,074 | 677,777 | ||||||||||
Purchases and origination of loans held for investment, subject to nonrecourse debt | (30,342 | ) | (12,247 | ) | ||||||||
Proceeds/payments on loans held for investment, subject to nonrecourse debt | 585,148 | 217,452 | ||||||||||
Purchases of debt securities | (9,159 | ) | (557 | ) | ||||||||
Proceeds/payments on debt securities | 519 | 2,096 | ||||||||||
Purchases of mortgage servicing rights | 0 | (9,014 | ) | |||||||||
Proceeds on sale of mortgage servicing rights | 96,887 | 7,765 | ||||||||||
Acquisition of subsidiaries, net of cash acquired | 0 | (749 | ) | |||||||||
Acquisition of fixed assets | (4,176 | ) | (4,178 | ) | ||||||||
Debtor in possession (“DIP”) Financing | 0 | (35,260 | ) | |||||||||
Other investing activities, net | (4,901 | ) | (3,207 | ) | ||||||||
Net cash used in investing activities | (600,105 | ) | (312,047 | ) | ||||||||
Financing Activities | ||||||||||||
Proceeds from issuance of HMBS related obligations | 948,682 | 602,172 | ||||||||||
Payments of HMBS related obligations | (737,327 | ) | (506,142 | ) | ||||||||
Proceeds from issuance of nonrecourse debt | 1,114,665 | 579,518 | ||||||||||
Payments on nonrecourse debt | (812,572 | ) | (658,300 | ) | ||||||||
Proceeds from other financing lines of credit | 7,434,937 | 10,027,696 | ||||||||||
Payments on other financing lines of credit | (7,592,623 | ) | (9,660,588 | ) | ||||||||
Debt issuance costs | (234 | ) | (2,467 | ) | ||||||||
Member distributions | 0 | (75,000 | ) | |||||||||
Other financing activities, net | 10 | 806 | ||||||||||
Net cash provided by financing activities | 355,538 | 307,695 | ||||||||||
Foreign currency translation adjustment | 11 | (7 | ) | |||||||||
Net increase in cash and restricted cash | 79,185 | 113,684 | ||||||||||
Cash and restricted cash, beginning of period | 463,641 | 539,363 | ||||||||||
Cash and restricted cash, end of period | $ | 542,826 | $ | 653,047 | ||||||||
Supplementary Cash Flows Information | ||||||||||||
Cash paid for interest | $ | 55,142 | $ | 50,071 | ||||||||
Cash paid for income taxes, net | 22 | 63 | ||||||||||
Loans transferred to loans held for investment, at fair value, from loans held for investment, subject to nonrecourse debt, at fair value | 478,208 | 283,499 | ||||||||||
Loans transferred to loans held for investment, subject to nonrecourse debt, at fair value from loans held for investment, at fair value | 1,366,898 | 272,098 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Loans transferred to loans held for investment, subject to HMBS, at fair value from loans held for investment, at fair value | 773,959 | 0 | ||||||||||
Loans transferred to loans held for investment, at fair value, from loans held for sale, at fair value | 0 | 42,909 |
Financial Statements | ||||||
12 Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) | ||||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
ASSETS | ||||||||
Restricted cash | $ | 306,615 | $ | 293,580 | ||||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,939,651 | 5,396,167 | ||||||
Other assets | 69,947 | 79,528 | ||||||
TOTAL ASSETS | $ | 6,316,213 | $ | 5,769,275 | ||||
LIABILITIES | ||||||||
Nonrecourse debt, at fair value | $ | 5,956,832 | $ | 5,459,941 | ||||
Payables and other liabilities | 117 | 291 | ||||||
TOTAL VIE LIABILITIES | 5,956,949 | 5,460,232 | ||||||
Retained bonds and beneficial interests eliminated in consolidation | (221,822 | ) | (202,187 | ) | ||||
TOTAL CONSOLIDATED LIABILITIES | $ | 5,735,127 | $ | 5,258,045 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Unconsolidated securitization trusts: | ||||||||
Total collateral balances – UPB | $ | 795,077 | $ | 0 | ||||
Total certificate balances | $ | 795,077 | $ | 0 | ||||
Consideration transferred: | ||||
Total cash consideration | $ | 342,270 | ||
Blocker rollover equity | 221,811 | |||
Seller earnout contingent consideration (1) | 160,272 | |||
Tax receivable agreement obligations to the seller | 31,950 | |||
Total consideration transferred | 756,303 | |||
Noncontrolling interest | 1,658,545 | |||
Total equity value | $ | 2,414,848 | ||
Assets acquired: | ||||
Cash and cash equivalents | $ | 336,075 | ||
Restricted cash | 305,292 | |||
Reverse mortgage loans held for investment, subject to HMBS related obligations, at fair value | 10,071,192 | |||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,291,443 | |||
Mortgage loans held for investment, at fair value | 1,100,544 | |||
Mortgage loans held for sale, at fair value | 2,140,361 | |||
Debt securities | 9,230 | |||
Mortgage servicing rights, at fair value | 267,364 | |||
Derivative assets | 116,479 | |||
Fixed assets and leasehold improvements, net | 26,079 | |||
Intangible assets, net (2) | 717,700 | |||
Other assets, net | 279,155 | |||
Total assets acquired | $ | 20,660,914 | ||
Liabilities assumed: | ||||
HMBS related obligations, at fair value | $ | 9,926,131 | ||
Nonrecourse debt, at fair value | 5,227,942 | |||
Other financing lines of credit | 3,340,345 | |||
Payables and other liabilities | 669,048 | |||
Notes payable, net | 353,924 | |||
Total liabilities assumed | $ | 19,517,390 | ||
Net identifiable assets acquired | 1,143,524 | |||
Goodwill (3) | $ | 1,271,324 | ||
2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements comprise the financial statements of FoA and its controlled subsidiaries for the Successor three months ended March 31, 2022, and the financial statements of FoA Equity and its controlled subsidiaries for the Predecessor three months ended March 31, 2022. The condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and pursuant to the accounting and disclosure rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In the opinion of the Company, the accompanying financial statements contain all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of its financial condition as of March 31, 2022, and its results of operations and cash flows for the three months ended March 31, 2022 and 2021. The Condensed Consolidated Statement of Financial Condition at December 31, 2021 was derived from audited financial statements but does not contain all of the footnote disclosures from the annual financial statements. Operating results for the interim period are not necessarily indicative of the results that may be expected for any future period or for the full year. The condensed consolidated interim financial statements, including the significant accounting policies, should be read in conjunction with the annual 10-K filing of FoA and notes thereto for the period ended December 31, 2021. There have not been any material changes to our critical accounting policies and estimates as disclosed in the Annual Report on Form10-K The significant accounting policies, together with the other notes that follow, are an integral part of the condensed consolidated financial statements. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates and assumptions due to factors such as changes in the economy, interest rates, secondary market pricing, prepayment assumptions, home prices or discrete events affecting specific borrowers, and such differences could be material. 16 Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) Recently Adopted Accounting Guidance |
Identifiable intangible assets | Provisional Fair value (in thousands) | Provisional Useful life (in years) | ||||||
Indefinite lived trade names | $ | 178,000 | N/A | |||||
Definite lived trade names | 8,800 | 10 | ||||||
Broker/customer relationships | 530,900 | 8-15 | ||||||
Total | $ | 717,700 | ||||||
(in thousands) | For the three months ended September 30, | For the nine months ended September 30, | ||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Pro forma revenues | $ | 456,500 | $ | 600,540 | $ | 1,354,046 | $ | 1,240,824 | ||||||||
Pro forma net income | 50,797 | 188,723 | 161,614 | 193,622 | ||||||||||||
Pro forma net income attributable to controlling interest | 21,424 | 45,300 | 50,406 | 53,958 | ||||||||||||
Pro forma net income (loss) attributable to noncontrolling interest | 29,373 | 143,423 | 111,208 | 139,664 |
Description | Effective Date | Effect on Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||
ASU 2021-04, Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of | The | January 1, 2022 | The adoption of this standard did not have a
|
Provisional Fair Value (in thousands) | Provisional Useful Life (in years) | |||||||
Technology | $ | 1,890 | 5 |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 20.8 | % | NM | 20.0 | % | ||||||||||
Loss frequency | NM | 4.8 | % | NM | 4.4 | % | ||||||||||
Loss severity | 4.1% - 11.8% | 4.4 | % | 5.1% - 13.3% | 5.4 | % | ||||||||||
Discount rate | NM | 2.2 | % | NM | 1.6 | % | ||||||||||
Average draw rate | NM | 1.1 | % | NM | 1.1 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 41.2 | % | NM | 42.9 | % | ||||||||||
Loss frequency | 25.0% - 100.0% | 59.9 | % | 25.0% - 100.0% | 54.8 | % | ||||||||||
Loss severity | 4.1% - 11.8% | 6.1 | % | 5.1% - 13.3% | 7.5 | % | ||||||||||
Discount rate | NM | 3.6 | % | NM | 4.1 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in years) | NM | 9.3 | NM | 8.5 | ||||||||||||
Conditional repayment rate | NM | 12.8 | % | NM | 14.7 | % | ||||||||||
Loss severity | 4.1% - 11.8% | 8.6 | % | 5.1% - 13.3% | 7.7 | % | ||||||||||
Discount rate | NM | 3.6 | % | NM | 3.5 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted-average remaining life (in years) | NM | 7.2 | NM | 6.9 | ||||||||||||
Loan to value | 0.1% - 63.1% | 42.9 | % | 9.0% - 73.1% | 48.2 | % | ||||||||||
Conditional repayment rate | NM | 19.2 | % | NM | 18.7 | % | ||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | ||||||||||
Home price appreciation | 3.4% - 9.6% | 4.7 | % | 1.1% - 8.9% | 5.6 | % | ||||||||||
Discount rate | NM | 3.4 | % | NM | 3.6 | % |
Standard | Description | Date of Planned Adoption | Effect on Condensed Consolidated Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | The amendments in this Update provide temporary optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter-Bank Offered Rate (“LIBOR”) or other interbank offered rates expected to be discontinued. | TBD | This ASU is effective from March 12, 2020 through December 31, 2024. The Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification | In January 2021, FASB issued an Update which refines the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASU 2021-08, Business Combinations (Topic 805) Accounting for Contract Assets and Contract Liabilities from Contracts with Customers | In October 2021, the FASB issued ASU 2021-08 to improve the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the following: (1)Recognition of an acquired contract liability and (2) Payment terms and their effect on subsequent revenue recognized by the acquirer. The amendments in this ASU require that an entity (acquirer) recognize, and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the | January 1, 2023 | This ASU is effective for all business combinations occurring after January 1, 2023.
Adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
March 31, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Restricted cash | $ | 303,232 | $ | 311,652 | ||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,103,454 | 6,099,607 | ||||||
Other assets, net | 73,701 | 67,593 | ||||||
TOTAL ASSETS | $ | 6,480,387 | $ | 6,478,852 | ||||
LIABILITIES | ||||||||
Nonrecourse debt, at fair value | $ | 6,268,232 | $ | 6,088,298 | ||||
Payables and other liabilities | 633 | 428 | ||||||
TOTAL VIE LIABILITIES | 6,268,865 | 6,088,726 | ||||||
Retained bonds and beneficial interests eliminated in consolidation | (236,076 | ) | (231,229 | ) | ||||
TOTAL CONSOLIDATED LIABILITIES | $ | 6,032,789 | $ | 5,857,497 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Unconsolidated securitization trusts: | ||||||||
Total collateral balances – UPB | $ | 1,056,341 | $ | 1,085,340 | ||||
Total certificate balances | $ | 1,056,341 | $ | 1,085,340 | ||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 21.6 | % | NM | 20.8 | % | ||||||||||
Loss frequency | NM | 4.2 | % | NM | 4.5 | % | ||||||||||
Loss severity | 2.4% - 6.9 | % | 2.6 | % | 3.1% - 7.7 | % | 3.3 | % | ||||||||
Discount rate | NM | 3.4 | % | NM | 2.4 | % | ||||||||||
Average draw rate | NM | 1.1 | % | NM | 1.1 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 39.7 | % | NM | 41.2 | % | ||||||||||
Loss frequency | NM | 60.5 | % | 25.0% - 100 | % | 59.5 | % | |||||||||
Loss severity | 2.4% - 6.9 | % | 3.1 | % | 3.1% -7.7 | % | 4.3 | % | ||||||||
Discount rate | NM | 5.8 | % | NM | 4.1 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in years) | NM | 9.0 | NM | 9.0 | ||||||||||||
Conditional repayment rate | NM | 13.4 | % | NM | 13.3 | % | ||||||||||
Loss severity | 2.4% - 6.9 | % | 6.9 | % | 3.1% - 7.7 | % | 7.7 | % | ||||||||
Discount rate | NM | 5.0 | % | NM | 3.7 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in years) | NM | 7.8 | NM | 7.5 | ||||||||||||
Loan to value | 0.1% - 69.0 | % | 43.1 | % | 0.1% - 64.7 | % | 43.4 | % | ||||||||
Conditional repayment rate | NM | 17.5 | % | NM | 18.6 | % | ||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | ||||||||||
Home price appreciation | -4.3% - 15.8 | % | 4.7 | % | -4.6% - 14 | % | 4.7 | % | ||||||||
Discount rate | NM | 4.9 | % | NM | 3.6 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Prepayment rate (SMM) | NM | 14.4 | % | NM | 14.1 | % | ||||||||||
Discount rate | NM | 7.5 | % | NM | 5.7 | % | ||||||||||
Loss frequency | 0.3% - 72.9 | % | 0.6 | % | 0.3% - 69.0 | % | 0.6 | % |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Conditional repayment rate | NM | 44.0 | % | NM | 44.0 | % | NM | 44.9 | % | NM | 43.2 | % | ||||||||||||||||||||
Loss frequency | NM | 59.1 | % | NM | 46.9 | % | NM | 68.3 | % | NM | 59.4 | % | ||||||||||||||||||||
Loss severity | NM | 5.5 | % | NM | 10.5 | % | 2.4% -6.9 | % | 4.9 | % | 3.1% - 7.7 | % | 3.8 | % | ||||||||||||||||||
Discount rate | NM | 3.6 | % | NM | 4.1 | % | NM | 5.8 | % | NM | 4.1 | % |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Weighted average remaining life (in years) | NM | 7.8 | NM | 8.0 | NM | 9.9 | NM | 9.2 | ||||||||||||||||||||||||
Loan to value | 7.4% - 68.3% | 47.9 | % | 0.1% - 62.1% | 44.0 | % | 2.9% - 69.1 | % | 47.2 | % | 0.2% - 68.7 | % | 47.8 | % | ||||||||||||||||||
Conditional repayment rate | NM | 16.5 | % | NM | 16.8 | % | NM | 13.6 | % | NM | 14.8 | % | ||||||||||||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | NM | 10.0 | % | NM | 10.0 | % | ||||||||||||||||||||
Home price appreciation | 3.4% - 9.6% | 4.7 | % | 1.1% - 8.9% | 5.5 | % | -4.3% - 15.8 | % | 4.3 | % | -4.6% - 14.0 | % | 4.4 | % | ||||||||||||||||||
Discount rate | NM | 3.4 | % | NM | 3.6 | % | NM | 4.9 | % | NM | 3.6 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Prepayment rate (SMM) | NM | 11.2 | % | NM | 11.9 | % | ||||||||||
Discount rate | 7.5% - 10.9 | % | 7.6 | % | 5.7% - 10.0 | % | 5.9 | % | ||||||||
Loss frequency | NM | 0.4 | % | NM | 0.4 | % |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Discount rate | NM | 4.8 | % | NM | 6.4 | % | NM | 6.2 | % | NM | 4.8 | % | ||||||||||||||||||||
Prepayment rate (SMM) | 9.2% - 100.0% | 26.2 | % | 0% - 1.0% | 0.7 | % | 9.0% - 100.0 | % | 19.6 | % | 9.0% - 100.0 | % | 22.1 | % | ||||||||||||||||||
Default rate (CDR) | NM | 0.9 | % | 0% - 2.0% | 0.4 | % | 0.0% - 1.0 | % | 0.9 | % | 0% - 0.7 | % | 0.9 | % |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Prepayment rate (CPR) | 1.0% - 17.1% | 14.0 | % | 1.0% - 17.1% | 15.4 | % | 18.0% - 25.0 | % | 18.3 | % | 1.0% - 17.1 | % | 14.2 | % | ||||||||||||||||||
Discount rate | NM | 3.1 | % | NM | 5.0 | % | NM | 5.1 | % | NM | 3.3 | % | ||||||||||||||||||||
Default rate (CDR) | 1.0% - 54.0% | 2.4 | % | 1.0% - 64.9% | 3.6 | % | NM | 1.0 | % | 1.0% - 57.2 | % | 2.2 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Prepayment rate (CPR) | 0% - 14.8% | 5.9 | % | 0% - 15.0% | 9.3 | % | ||||||||||
Discount rate | NM | 3.8 | % | NM | 4.9 | % | ||||||||||
Default rate (CDR) | 1.0% - 45.4% | 2.9 | % | 1.0% - 42.7% | 2.0 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Prepayment rate (CPR) | 0.0% - 22.6 | % | 13.0 | % | 0.0% - 14.5 | % | 8.7 | % | ||||||||
Discount rate | NM | 4.9 | % | NM | 3.9 | % | ||||||||||
Default rate (CDR) | NM | 1.0 | % | 1.0% - 54.0 | % | 3.2 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
March 31, 2022 | December 31, 2021 | |||||||||||||||
Capitalization servicing rate | 1.0 | % | 0.8 | % | 1.3 | % | 1.1 | % | ||||||||
Capitalization servicing multiple | 4.0 | 3.2 | 5.0 | 4.4 | ||||||||||||
Weighted average servicing fee (in basis points) | 25 | 25 | 26 | 25 |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Weighted average prepayment speed (CPR) | 7.0% - 18.3% | 9.5 | % | 6.6% - 24.9% | 12.1 | % | 0.1% - 10.5 | % | 6.7 | % | 0% - 12.8 | % | 8.3 | % | ||||||||||||||||||
Discount rate | NM | 9.7 | % | NM | 12.1 | % | NM | 8.3 | % | NM | 8.5 | % | ||||||||||||||||||||
Weighted average delinquency rate | 1.2% - 8.9% | 1.2 | % | 1.2% - 9.2% | 1.3 | % | 0.8% - 12.4 | % | 1.4 | % | 0.8% - 14.3 | % | 1.3 | % |
September 30, 2021 | ||||||||||||
Successor | ||||||||||||
Weighted Average Prepayment Speed | Discount Rate | Weighted Average Delinquency Rate | ||||||||||
Impact on fair value of 10% adverse change | $ | (12,591 | ) | $ | (12,721 | ) | $ | (393 | ) | |||
Impact on fair value of 20% adverse change | (24,163 | ) | (24,393 | ) | (643 | ) |
March 31, 2022 | ||||||||||||
Weighted Average Prepayment Speed | Discount Rate | Weighted Average Delinquency Rate | ||||||||||
Impact on fair value of 10% adverse change | $ | (9,330 | ) | $ | (15,406 | ) | $ | (481 | ) | |||
Impact on fair value of 20% adverse change | $ | (18,140 | ) | $ | (29,748 | ) | $ | (963 | ) |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 20.9 | % | NM | 19.9 | % | ||||||||||
Discount rate | NM | 2.1 | % | NM | 1.4 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 21.6 | % | NM | 20.8 | % | ||||||||||
Discount rate | NM | 3.3 | % | NM | 2.3 | % |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Performing/Nonperforming HECM securitizations | ||||||||||||||||
Weighted average remaining life (in years) | 0.7-0.9 | 0.8 | 0.2 - 0.8 | 0.5 | ||||||||||||
Conditional repayment rate | 16.1% - 26.0 | % | 19.9 | % | 30.8% - 54.4 | % | 43.5 | % | ||||||||
Discount rate | NM | 4.1 | % | NM | 2.3 | % | ||||||||||
Securitized Non-Agency Reverse | ||||||||||||||||
Weighted average remaining life (in years) | 0.8-2.2 | 1.6 | 1.0 - 2.3 | 1.6 | ||||||||||||
Conditional repayment rate | 15.6% - 37.0 | % | 26.3 | % | 18.4% - 35.9 | % | 28.2 | % | ||||||||
Discount rate | NM | 4.0 | % | NM | 2.2 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Performing/Nonperforming HECM securitizations | ||||||||||||||||
Weighted average remaining life (in years) | 0.4 - 1.0 | 0.7 | 0.2 - 1.5 | 1.0 | ||||||||||||
Conditional repayment rate | 24.7% - 28.4% | 26.4 | % | 34.3% - 56.3% | 42.8 | % | ||||||||||
Discount rate | NM | 2.1 | % | NM | 3.1 | % | ||||||||||
Securitized Non-Agency Reverse | ||||||||||||||||
Weighted average remaining life (in years) | 1.1 - 2.4 | 1.7 | 0.3 - 2.7 | 2.1 | ||||||||||||
Conditional repayment rate | 18.2% - 36.3% | 27.0 | % | 19.6% - 35.8% | 23.9 | % | ||||||||||
Discount rate | NM | 1.7 | % | NM | 2.2 | % |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||
Weighted average remaining life (in months) | NM | 4.0 | 1.9 - 4.1 | 3.4 | NM | 3.7 | NM | 4.0 | ||||||||||||||||||||||||
Weighted average prepayment speed (SMM) | NM | 14.0 | % | 17.7% - 32.0% | 21.4 | % | NM | 15.7 | % | NM | 14.0 | % | ||||||||||||||||||||
Discount rate | NM | 2.6 | % | NM | 5.8 | % | NM | 4.9 | % | NM | 3.1 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average prepayment speed (CPR) | 7.7% - 10.2% | 8.7 | % | 6.9% - 12.7% | 11.6 | % | ||||||||||
Discount rate | 10.1% - 10.4% | 10.3 | % | 11.7% - 12.0% | 12.0 | % | ||||||||||
Weighted average delinquency rate | NM | 1.0 | % | NM | 1.8 | % |
September 30, 2021 | ||||||||||||
Successor | ||||||||||||
Weighted Average Prepayment Speed | Discount Rate | Weighted Average Delinquency Rate | ||||||||||
Impact on fair value of 10% adverse change | $ | (2,249 | ) | $ | (3,329 | ) | $ | (93 | ) | |||
Impact on fair value of 20% adverse change | (5,023 | ) | (7,062 | ) | (152 | ) |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average prepayment speed (CPR) | 0.7% - 10.5 | % | 6.6 | % | 2.0% - 11.0 | % | 7.7% | |||||||||
Discount rate | 8.1% - 10.1 | % | 8.5 | % | 8.1% - 10.1 | % | 9.1% | |||||||||
Weighted average delinquency rate | NM | 1.3 | % | NM | 1.3% |
March 31, 2022 | December 31, 2021 | |||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in years) | 2.5 - 24.7 | 5.0 | 2.6 - 25.0 | 5.1 | ||||||||||||
Discount rate | -2.6% - 8.9 | % | 4.1 | % | 1.9% - 8.2 | % | 2.7 | % |
September 30, 2021 | ||||||||||||||||||||||||||||||||
Successor | March 31, 2022 | |||||||||||||||||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 10,347,459 | $ | 0 | $ | 0 | $ | 10,347,459 | ||||||||||||||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||||||||||||||||||||
Loans held for investment, subject to HMBS related obligations | $ | 10,672,152 | $ | — | $ | — | $ | 10,672,152 | ||||||||||||||||||||||||
Loans held for investment, subject to nonrecourse debt: | ||||||||||||||||||||||||||||||||
Reverse mortgage loans | 5,665,424 | 0 | 0 | 5,665,424 | 5,830,105 | — | — | 5,830,105 | ||||||||||||||||||||||||
Fix & flip mortgage loans | 274,227 | 0 | 0 | 274,227 | 405,885 | — | — | 405,885 | ||||||||||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||||||||||||
Loans held for investment: | ||||||||||||||||||||||||||||||||
Reverse mortgage loans | 842,268 | 0 | 0 | 842,268 | 1,103,163 | — | — | 1,103,163 | ||||||||||||||||||||||||
Fix & flip mortgage loans | 48,076 | 0 | 0 | 48,076 | 69,962 | — | — | 69,962 | ||||||||||||||||||||||||
Agricultural loans | 187,326 | 0 | 0 | 187,326 | 45,865 | — | — | 45,865 | ||||||||||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||||||||||||||
Loans held for sale: | ||||||||||||||||||||||||||||||||
Residential mortgage loans | 1,904,109 | 0 | 1,888,208 | 15,901 | 1,500,785 | — | 1,480,312 | 20,473 | ||||||||||||||||||||||||
SRL | 96,665 | 0 | 0 | 96,665 | 131,137 | — | — | 131,137 | ||||||||||||||||||||||||
Portfolio | 46,241 | 0 | 0 | 46,241 | 77,435 | — | — | 77,435 | ||||||||||||||||||||||||
Mortgage servicing rights | 340,949 | 0 | 0 | 340,949 | ||||||||||||||||||||||||||||
MSRs | 426,102 | — | — | 426,102 | ||||||||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||||||||
Forward commitments, TBAs, and Treasury Futures | 974 | 44 | 930 | 0 | 2,172 | — | 2,172 | — | ||||||||||||||||||||||||
IRLCs | 29,175 | 0 | 0 | 29,175 | 2,736 | — | — | 2,736 | ||||||||||||||||||||||||
Forward MBS | 12,237 | 0 | 12,237 | 0 | 34,867 | — | 34,867 | — | ||||||||||||||||||||||||
Interest rate swap futures | 12,607 | 12,607 | 0 | 0 | 241,430 | 241,430 | — | — | ||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||
Investments | 6,000 | 0 | 0 | 6,000 | 6,000 | — | — | 6,000 | ||||||||||||||||||||||||
Retained bonds | 41,250 | 0 | 0 | 41,250 | 50,875 | — | — | 50,875 | ||||||||||||||||||||||||
Total assets | $ | 19,854,987 | $ | 12,651 | $ | 1,901,375 | $ | 17,940,961 | $ | 20,600,671 | $ | 241,430 | $ | 1,517,351 | $ | 18,841,890 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
HMBS related obligation | $ | 10,216,310 | $ | 0 | $ | 0 | $ | 10,216,310 | ||||||||||||||||||||||||
HMBS related obligations | $ | 10,548,131 | $ | — | $ | — | $ | 10,548,131 | ||||||||||||||||||||||||
Nonrecourse debt: | ||||||||||||||||||||||||||||||||
Nonrecourse debt in VIE trusts | 5,735,010 | 0 | 0 | 5,735,010 | ||||||||||||||||||||||||||||
Nonrecourse debt in consolidated VIE trusts | 6,032,157 | — | — | 6,032,157 | ||||||||||||||||||||||||||||
Nonrecourse commercial loan financing liability | 127,639 | — | — | 127,639 | ||||||||||||||||||||||||||||
Nonrecourse MSR financing liability | 96,073 | 0 | 0 | 96,073 | 163,981 | — | — | 163,981 | ||||||||||||||||||||||||
Deferred purchase price liabilities: | ||||||||||||||||||||||||||||||||
Deferred purchase price liabilities | 12,175 | 0 | 0 | 12,175 | 7,852 | — | — | 7,852 | ||||||||||||||||||||||||
TRA obligation | 35,142 | 0 | 0 | 35,142 | 29,380 | — | — | 29,380 | ||||||||||||||||||||||||
Derivative liabilities: | ||||||||||||||||||||||||||||||||
Forward MBS | 1,061 | 0 | 1,061 | 0 | 1,183 | — | 1,183 | — | ||||||||||||||||||||||||
Forward commitments, TBAs, and Treasury Futures | 105 | 44 | 61 | 0 | 57 | 57 | 0 | — | ||||||||||||||||||||||||
Interest rate swap futures | 10,617 | 10,617 | 0 | 0 | 90,124 | 90,124 | 0 | — | ||||||||||||||||||||||||
Warrants | 9,342 | 9,342 | 0 | 0 | ||||||||||||||||||||||||||||
Warrant Liability | 5,648 | 5,648 | — | — | ||||||||||||||||||||||||||||
Total liabilities | $ | 16,115,835 | $ | 20,003 | $ | 1,122 | $ | 16,094,710 | $ | 17,006,152 | $ | 95,829 | $ | 1,183 | $ | 16,909,140 | ||||||||||||||||
December 31, 2020 | ||||||||||||||||
Predecessor | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 9,929,163 | $ | — | $ | — | $ | 9,929,163 | ||||||||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||||
Reverse mortgage loans | 5,057,624 | — | — | 5,057,624 | ||||||||||||
Fix & flip mortgage loans | 338,543 | — | — | 338,543 | ||||||||||||
Mortgage loans held for investment: | ||||||||||||||||
Reverse mortgage loans | 661,790 | — | — | 661,790 | ||||||||||||
Agricultural loans | 69,031 | — | — | 69,031 | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||||
Residential mortgage loans | 2,080,585 | — | 2,069,957 | 10,628 | ||||||||||||
SRL | 60,467 | — | — | 60,467 | ||||||||||||
Portfolio | 38,850 | — | — | 38,850 | ||||||||||||
Fix & flip mortgage loans | 42,909 | — | — | 42,909 | ||||||||||||
Mortgage servicing rights | 180,684 | — | — | 180,684 | ||||||||||||
Derivative assets: | ||||||||||||||||
Forward commitments and TBAs | 1,806 | — | 722 | 1,084 | ||||||||||||
IRLCs | 87,576 | — | — | 87,576 | ||||||||||||
Interest rate swaps and interest rate swap futures | 2,683 | 186 | 2,497 | — | ||||||||||||
Other assets: | ||||||||||||||||
Investments | 18,934 | — | — | 18,934 | ||||||||||||
Total assets | $ | 18,570,645 | $ | 186 | $ | 2,073,176 | $ | 16,497,283 | ||||||||
Liabilities | ||||||||||||||||
HMBS related obligation | $ | 9,788,668 | $ | — | $ | — | $ | 9,788,668 | ||||||||
Nonrecourse debt: | ||||||||||||||||
Nonrecourse debt in VIE trusts | 5,257,754 | — | — | 5,257,754 | ||||||||||||
Nonrecourse MSR financing liability | 14,088 | — | — | 14,088 | ||||||||||||
Deferred purchase price liabilities | 3,842 | — | — | 3,842 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Forward MBS | 18,635 | — | 18,635 | — | ||||||||||||
Forward commitments and TBAs | 1,332 | — | 248 | 1,084 | ||||||||||||
Interest rate swaps and interest rate swap futures | 755 | 186 | 569 | — | ||||||||||||
Total liabilities | $ | 15,085,074 | $ | 186 | $ | 19,452 | $ | 15,065,436 | ||||||||
December 31, 2021 | ||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | ||||||||||||||||
Loans held for investment, subject to HMBS related obligations | $ | 10,556,054 | $ | — | $ | — | $ | 10,556,054 | ||||||||
Loans held for investment, subject to nonrecourse debt: | ||||||||||||||||
Reverse mortgage loans | 5,823,301 | — | — | 5,823,301 | ||||||||||||
Fix & flip mortgage loans | 394,893 | — | — | 394,893 | ||||||||||||
Loans held for investment: | ||||||||||||||||
Reverse mortgage loans | 940,604 | — | — | 940,604 | ||||||||||||
Fix & flip mortgage loans | 62,933 | — | — | 62,933 | ||||||||||||
Agricultural loans | 27,791 | — | — | 27,791 | ||||||||||||
Loans held for sale: | ||||||||||||||||
Residential mortgage loans | 1,902,952 | — | 1,885,627 | 17,325 | ||||||||||||
SRL | 98,852 | — | — | 98,852 | ||||||||||||
Portfolio | 50,574 | — | — | 50,574 | ||||||||||||
MSRs | 427,942 | — | — | 427,942 | ||||||||||||
Derivative assets: | ||||||||||||||||
Forward commitments, TBAs, and Treasury Futures | 1,763 | — | 1,763 | — | ||||||||||||
IRLCs | 23,222 | — | — | 23,222 | ||||||||||||
Forward MBS | 1,235 | — | 1,235 | — | ||||||||||||
Interest rate swap futures | 22,650 | 22,650 | 0 | — | ||||||||||||
Other assets: | ||||||||||||||||
Investments | 6,000 | — | — | 6,000 | ||||||||||||
Retained bonds | 55,614 | — | — | 55,614 | ||||||||||||
Total assets | $ | 20,396,380 | $ | 22,650 | $ | 1,888,625 | $ | 18,485,105 | ||||||||
Liabilities | ||||||||||||||||
HMBS related obligations | $ | 10,422,358 | $ | — | $ | — | $ | 10,422,358 | ||||||||
Nonrecourse debt: | ||||||||||||||||
Nonrecourse debt in consolidated VIE trusts | 5,857,069 | — | — | 5,857,069 | ||||||||||||
Nonrecourse commercial loan financing liability | 111,738 | — | — | 111,738 | ||||||||||||
Nonrecourse MSR financing liability | 142,435 | — | — | 142,435 | ||||||||||||
Deferred purchase price liabilities: | ||||||||||||||||
Deferred purchase price liabilities | 12,852 | — | — | 12,852 | ||||||||||||
TRA obligation | 29,380 | — | — | 29,380 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Forward MBS | 1,644 | 0 | 1,644 | 0 | ||||||||||||
Forward commitments, TBAs, and Treasury Futures | 186 | 108 | 78 | 0 | ||||||||||||
Interest rate swap futures | 24,848 | 24,848 | 0 | 0 | ||||||||||||
Warrant Liability | 5,497 | 5,497 | 0 | 0 | ||||||||||||
Total liabilities | $ | 16,608,007 | $ | 30,453 | $ | 1,722 | $ | 16,575,832 | ||||||||
Successor | Successor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | Mortgage loans held for investment | Mortgage loans held for investment, subject to nonrecourse debt | Mortgage loans held for sale | Derivative assets | Mortgage servicing rights | Retained bonds | Investments | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, April 1, 2021 | $ | 11,171,736 | $ | 5,291,444 | $ | 135,681 | $ | 38,574 | $ | 267,364 | $ | 0— | $ | 9,470 | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2022 | Loans held for investment | Loans held for investment, subject to nonrecourse debt | Loans held for sale | Derivative assets | MSRs | Retained bonds | Investments | |||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2022 | $ | 11,587,382 | $ | 6,218,194 | $ | 166,750 | $ | 23,222 | $ | 427,942 | $ | 55,614 | $ | 6,000 | ||||||||||||||||||||||||||||||||||||||||||
Total gain or losses included in earnings | 143,362 | 120,763 | 2,202 | (8,264 | ) | (28,567 | ) | 1,505 | (3,470 | ) | (35,895 | ) | (313,720 | ) | (7,040 | ) | (20,486 | ) | 52,368 | (3,289 | ) | — | ||||||||||||||||||||||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 2,831,336 | 49,898 | 541,088 | — | 104,653 | 39,840 | — | 1,848,155 | 30,342 | 396,020 | — | 53,444 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Sales and settlements | (1,354,871 | ) | (888,318 | ) | (526,014 | ) | (1,135 | ) | (2,501 | ) | (095 | ) | — | (612,624 | ) | (586,276 | ) | (329,590 | ) | — | (107,652 | ) | (1,450 | ) | — | |||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (1,366,434 | ) | 1,365,864 | 5,850 | — | — | 0— | — | (895,876 | ) | 887,450 | 2,905 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Ending balance, September 30, 2021 | $ | 11,425,129 | $ | 5,939,651 | $ | 158,807 | $ | 29,175 | $ | 340,949 | $ | 041,250 | $ | 6,000 | ||||||||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2022 | $ | 11,891,142 | $ | 6,235,990 | $ | 229,045 | $ | 2,736 | $ | 426,102 | $ | 50,875 | $ | 6,000 | ||||||||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
September 30, 2021 | HMBS obligations | Derivative liabilities | Deferred purchase price liabilities | Nonrecourse debt in VIE trusts | Nonrecourse MSR financing liability | TRA Liability | ||||||||||||||||||
Beginning balance, April 1, 2021 | $ | (9,926,132 | ) | $ | (936 | ) | $ | (3,214 | ) | $ | (5,205,892 | ) | $ | (22,051 | ) | $ | 0— | |||||||
Total gains or losses included in earnings | 76,397 | 98 | (1,997 | ) | (77,717 | ) | 3,411 | (1,896 | ) | |||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||
Purchases and additions, net | (1,587,902 | ) | — | (7,275 | ) | (1,260,585 | ) | (77,433 | ) | (33,246 | ) | |||||||||||||
Settlements | 1,221,327 | 838 | 311 | 809,184 | — | 0— | ||||||||||||||||||
Ending balance, September 30, 2021 | $ | (10,216,310 | ) | $ | 0 | $ | (12,175 | ) | $ | (5,735,010 | ) | $ | (96,073 | ) | $ | (035,142 | ) | |||||||
Predecessor | Successor | |||||||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | Mortgage loans held for investment | Mortgage loans held for investment, subject to nonrecourse debt | Mortgage loans held for sale | Derivative assets | Mortgage servicing rights | Investments | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2021 | $ | 10,659,984 | $ | 5,396,167 | $ | 152,854 | $ | 88,660 | $ | 180,684 | $ | 18,934 | ||||||||||||||||||||||||||||||||||||
Total gain or losses included in earnings | 132,499 | (37,757 | ) | 2,764 | (50,040 | ) | 20,349 | (9,464 | ) | |||||||||||||||||||||||||||||||||||||||
March 31, 2022 | HMBS related obligations | Deferred purchase price liabilities | Nonrecourse debt in consolidated VIE trusts | Nonrecourse commercial loan financing liability | Nonrecourse MSR financing liability | TRA Liability | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance, January 1, 2022 | $ | (10,422,358 | ) | $ | (12,852 | ) | $ | (5,857,069 | ) | $ | (111,738 | ) | $ | (155,108 | ) | $ | (29,380 | ) | ||||||||||||||||||||||||||||||
Total gains or losses included in earnings | 85,582 | 0 | 105,340 | 254 | (16,038 | ) | 0 | |||||||||||||||||||||||||||||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 1,143,109 | 21,064 | 175,551 | — | 74,978 | — | (948,682 | ) | — | (1,048,499 | ) | (60,658 | ) | 7,165 | 0 | |||||||||||||||||||||||||||||||||
Sales and settlements | (534,738 | ) | (360,128 | ) | (152,579 | ) | (46 | ) | (8,647 | ) | — | 737,327 | 5,000 | 768,072 | 44,502 | 0 | 0 | |||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (229,118 | ) | 272,098 | (42,909 | ) | — | — | — | — | — | — | — | 0 | — | ||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2021 | $ | 11,171,736 | $ | 5,291,444 | $ | 135,681 | $ | 38,574 | $ | 267,364 | $ | 9,470 | ||||||||||||||||||||||||||||||||||||
Ending balance, March 31, 2022 | $ | (10,548,131 | ) | $ | (7,852 | ) | $ | (6,032,156 | ) | $ | (127,640 | ) | $ | (163,981 | ) | $ | (29,380 | ) | ||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
March 31, 2021 | Loans held for investment | Loans held for investment, subject to nonrecourse debt | Loans held for sale | Derivative assets | MSRs | Investments | ||||||||||||||||||
Beginning balance, January 1, 2021 | $ | 10,659,984 | $ | 5,396,167 | $ | 152,854 | $ | 88,660 | $ | 180,684 | $ | 18,934 | ||||||||||||
Total gain or losses included in earnings | 132,499 | (37,757 | ) | 2,764 | (50,040 | ) | 20,349 | (9,464 | ) | |||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||
Purchases and additions, net | 1,143,109 | 21,064 | 175,551 | — | 74,978 | — | ||||||||||||||||||
Sales and settlements | (534,738 | ) | (360,128 | ) | (152,579 | ) | (46 | ) | (8,647 | ) | — | |||||||||||||
Transfers in/(out) between categories | (229,118 | ) | 272,098 | (42,909 | ) | — | — | — | ||||||||||||||||
Ending balance, March 31, 2021 | $ | 11,171,736 | $ | 5,291,444 | $ | 135,681 | $ | 38,574 | $ | 267,364 | $ | 9,470 | ||||||||||||
Predecessor | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
March 31, 2021 | HMBS related obligations | Derivative liabilities | Deferred purchase price liability | Nonrecourse debt in VIE trusts | Nonrecourse MSR financing liability | |||||||||||||||
Beginning balance, January 1, 2021 | $ | (9,788,668 | ) | $ | (1,084 | ) | $ | (3,842 | ) | $ | (5,257,754 | ) | $ | (14,088 | ) | |||||
Total gain or losses included in earnings | (41,434 | ) | — | (29 | ) | (30,770 | ) | 390 | ||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||
Purchases and additions, net | (602,172 | ) | — | — | (575,668 | ) | (8,353 | ) | ||||||||||||
Sales and settlements | 506,142 | 148 | 657 | 658,300 | — | |||||||||||||||
Ending balance, March 31, 2021 | $ | (9,926,132 | ) | $ | (936 | ) | $ | (3,214 | ) | $ | (5,205,892 | ) | $ | (22,051 | ) | |||||
Predecessor | ||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
December 31, 2020 | Mortgage loans held for investment | Mortgage loans held for investment, subject to nonrecourse debt | Mortgage loans held for sale | Derivative assets | Mortgage servicing rights | Debt securities | Investments | |||||||||||||||||||||
Beginning balance, January 1, 2020 | $ | 10,894,577 | $ | 3,511,212 | $ | 182,973 | $ | 14,008 | $ | 2,600 | $ | 102,260 | $ | 20,508 | ||||||||||||||
Total gain or losses included in earnings | 627,251 | 304,663 | (2,158 | ) | 74,470 | 4,562 | 2,288 | (5,512 | ) | |||||||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||||||
Purchases and additions, net | 3,616,667 | 136,838 | 409,467 | 182 | 173,522 | 24,489 | 3,938 | |||||||||||||||||||||
Sales and settlements | (1,536,977 | ) | (1,285,902 | ) | (605,018 | ) | — | — | (129,037 | ) | — | |||||||||||||||||
Transfers in/(out) between categories | (2,941,534 | ) | 2,729,356 | 167,590 | — | — | — | — | ||||||||||||||||||||
Ending balance, December 31, 2020 | $ | 10,659,984 | $ | 5,396,167 | $ | 152,854 | $ | 88,660 | $ | 180,684 | $ | — | $ | 18,934 | ||||||||||||||
Predecessor | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
December 31, 2020 | HMBS related obligations | Derivative liabilities | Deferred purchase price liabilities | Nonrecourse debt in VIE trusts | Nonrecourse MSR Financing Liability | |||||||||||||||
Beginning balance, January 1, 2020 | $ | (9,320,209 | ) | $ | (68 | ) | $ | (4,300 | ) | $ | (3,490,196 | ) | $ | — | ||||||
Total gain or losses included in earnings | (359,951 | ) | (834 | ) | (3,014 | ) | (294,802 | ) | 798 | |||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||
Purchases and additions, net | (2,051,953 | ) | (182 | ) | (138 | ) | (3,110,368 | ) | (15,101 | ) | ||||||||||
Sales and settlements | 1,943,445 | — | 3,610 | 1,637,612 | 215 | |||||||||||||||
Ending balance, December 31, 2020 | $ | (9,788,668 | ) | $ | (1,084 | ) | $ | (3,842 | ) | $ | (5,257,754 | ) | $ | (14,088 | ) | |||||
Predecessor | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
March 31, 2021 | HMBS related obligations | Derivative liabilities | Deferred purchase price liability | Nonrecourse debt in consolidated VIE trusts | Nonrecourse MSR financing liability | |||||||||||||||
Beginning balance, January 1, 2021 | $ | (9,788,668 | ) | $ | (1,084 | ) | $ | (3,842 | ) | $ | (5,257,754 | ) | $ | (14,088 | ) | |||||
Total gain or losses included in earnings | (41,434 | ) | — | (29 | ) | (30,770 | ) | 390 | ||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||
Purchases and additions, net | (602,172 | ) | — | — | (575,668 | ) | (8,353 | ) | ||||||||||||
Sales and settlements | 506,142 | 148 | 657 | 658,300 | — | |||||||||||||||
Ending balance, March 31, 2021 | $ | (9,926,132 | ) | $ | (936 | ) | $ | (3,214 | ) | $ | (5,205,892 | ) | $ | (22,051 | ) | |||||
Successor: | ||||||||
September 30, 2021 | Estimated Fair Value | Unpaid Principal Balance | ||||||
Assets at fair value under the fair value option | ||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 10,347,459 | $ | 9,617,079 | ||||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||
Reverse mortgage loans | 5,665,424 | 4,986,876 | ||||||
Commercial mortgage loans | 274,227 | 268,288 | ||||||
Mortgage loans held for investment: | ||||||||
Reverse mortgage loans | 842,268 | 721,012 | ||||||
Commercial mortgage loans | 235,402 | 233,101 | ||||||
Mortgage loans held for sale: | ||||||||
Residential mortgage loans | 1,904,109 | 1,859,842 | ||||||
Commercial mortgage loans | 142,906 | 138,101 | ||||||
Liabilities at fair value under the fair value option | ||||||||
HMBS related obligations | 10,216,310 | 9,617,079 | ||||||
Nonrecourse debt: | ||||||||
Nonrecourse debt in VIE trusts | 5,735,010 | 5,654,826 |
Predecessor: | ||||||||||||||||
December 31, 2020 | Estimated Fair Value | Unpaid Principal Balance | ||||||||||||||
March 31, 2022 | Estimated Fair Value | Unpaid Principal Balance | ||||||||||||||
Assets at fair value under the fair value option | ||||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 9,929,163 | $ | 9,045,104 | ||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||||
Loans held for investment, subject to HMBS related obligations | $ | 10,672,152 | $ | 10,109,820 | ||||||||||||
Loans held for investment, subject to nonrecourse debt: | ||||||||||||||||
Reverse mortgage loans | 5,057,624 | 4,457,805 | 5,830,105 | 5,481,952 | ||||||||||||
Commercial mortgage loans | 338,543 | 333,344 | 405,885 | 404,974 | ||||||||||||
Mortgage loans held for investment: | ||||||||||||||||
Loans held for investment: | ||||||||||||||||
Reverse mortgage loans | 661,790 | 589,429 | 1,103,163 | 988,321 | ||||||||||||
Commercial mortgage loans | 69,031 | 69,127 | 115,827 | 115,091 | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||||
Loans held for sale: | ||||||||||||||||
Residential mortgage loans | 2,080,585 | 2,000,795 | 1,500,785 | 1,499,525 | ||||||||||||
Commercial mortgage loans | 142,226 | 140,693 | 208,572 | 211,516 | ||||||||||||
Liabilities at fair value under the fair value option | ||||||||||||||||
HMBS related obligations | 9,788,668 | 9,045,104 | 10,548,131 | 10,109,820 | ||||||||||||
Nonrecourse debt: | ||||||||||||||||
Nonrecourse debt in VIE trusts | 5,257,754 | 5,155,017 | ||||||||||||||
Nonrecourse debt in consolidated VIE trusts | 6,032,157 | 6,152,713 | ||||||||||||||
Nonrecourse MSR financing liability | 163,981 | 163,981 | ||||||||||||||
Nonrecourse commercial loan financing liability | 127,639 | 123,900 |
December 31, 2021 | Estimated Fair Value | Unpaid Principal Balance | ||||||
Assets at fair value under the fair value option | ||||||||
Loans held for investment, subject to HMBS related obligations | $ | 10,556,054 | $ | 9,849,835 | ||||
Loans held for investment, subject to nonrecourse debt: | ||||||||
Reverse mortgage loans | 5,823,301 | 5,165,479 | ||||||
Commercial mortgage loans | 394,893 | 388,788 | ||||||
Loans held for investment: | ||||||||
Reverse mortgage loans | 940,605 | 815,426 | ||||||
Commercial mortgage loans | 90,723 | 89,267 | ||||||
Loans held for sale: | ||||||||
Residential mortgage loans | 1,902,953 | 1,859,788 | ||||||
Commercial mortgage loans | 149,425 | 145,463 | ||||||
Liabilities at fair value under the fair value option | ||||||||
HMBS related obligations | 10,422,358 | 9,849,835 | ||||||
Nonrecourse debt: | ||||||||
Nonrecourse debt in consolidated VIE trusts | 5,857,069 | 5,709,946 | ||||||
Nonrecourse MSR financing liability | 142,435 | 142,435 | ||||||
Nonrecourse commercial loan financing liability | 111,738 | 107,744 |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Net fair value gains on mortgage loans and related obligations: | ||||||||||||||||||||
Interest income on mortgage loans | $ | 160,683 | $ | 334,623 | $ | 160,568 | $ | 150,276 | $ | 492,066 | ||||||||||
Change in fair value of mortgage loans | (119,690 | ) | (34,707 | ) | (51,346 | ) | 160,480 | 302,541 | ||||||||||||
Change in fair value of mortgage-backed securities | — | — | — | 1,621 | 2,438 | |||||||||||||||
Net fair value gains on mortgage loans | 40,993 | 299,916 | 109,222 | 312,377 | 797,045 | |||||||||||||||
Interest expense on related obligations | (107,593 | ) | (221,067 | ) | (119,201 | ) | (121,777 | ) | (383,622 | ) | ||||||||||
Change in fair value of derivatives | 6,841 | (39,637 | ) | 43,972 | 149 | (5,594 | ) | |||||||||||||
Change in fair value of related obligations | 182,268 | 214,448 | 42,670 | (94,794 | ) | (186,191 | ) | |||||||||||||
Net fair value gains (losses) on related obligations | 81,516 | (46,256 | ) | (32,559 | ) | (216,422 | ) | (575,407 | ) | |||||||||||
Net fair value gains on mortgage loans and related obligations | $ | 122,509 | $ | 253,660 | $ | 76,663 | $ | 95,955 | $ | 221,638 | ||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||
Successor | Predecessor | |||||||
Net fair value gains (losses) on loans and related obligations: | ||||||||
Interest income on commercial and reverse loans | $ | 163,694 | $ | 160,568 | ||||
Change in fair value of loans | (507,327 | ) | (51,346 | ) | ||||
Change in fair value of MBS | — | — | ||||||
Net fair value gains (losses) on loans | (343,633 | ) | 109,222 | |||||
Interest expense on HMBS and nonrecourse obligations | (106,643 | ) | (119,201 | ) | ||||
Change in fair value of derivatives | 165,579 | 43,972 | ||||||
Change in fair value of related obligations | 295,132 | 42,670 | ||||||
Net fair value gains (losses) on related obligations | 354,068 | (32,559 | ) | |||||
Net fair value gains (losses) on loans and related obligations | $ | 10,435 | $ | 76,663 | ||||
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Reverse mortgage loans: | ||||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 9,617,079 | $ | 9,045,104 | $ | 10,109,820 | $ | 9,849,835 | ||||||||
Reverse mortgage loans held for investment: | ||||||||||||||||
Non-agency reverse mortgages | 346,705 | 215,688 | 601,067 | 432,144 | ||||||||||||
Loans not securitized (1) | 270,273 | 168,292 | 313,569 | 266,723 | ||||||||||||
Unpoolable loans (2) | 93,459 | 197,395 | 65,303 | 104,551 | ||||||||||||
Unpoolable tails | 10,575 | 8,054 | 8,382 | 12,008 | ||||||||||||
Total reverse mortgage loans held for investment | 721,012 | 589,429 | 988,321 | 815,426 | ||||||||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||||
Performing HECM buyouts | 276,351 | 141,691 | 304,503 | 289,089 | ||||||||||||
Nonperforming HECM buyouts | 614,824 | 538,768 | 656,608 | 590,729 | ||||||||||||
Non-agency reverse mortgages | 4,095,701 | 3,777,346 | 4,520,841 | 4,285,661 | ||||||||||||
Total reverse mortgage loans held for investment, subject to nonrecourse debt | 4,986,876 | 4,457,805 | 5,481,952 | 5,165,479 | ||||||||||||
Total owned reverse mortgage portfolio | 15,324,967 | 14,092,338 | 16,580,093 | 15,830,740 | ||||||||||||
Loans reclassified as government guaranteed receivable | 44,333 | 49,255 | 56,372 | 48,625 | ||||||||||||
Loans serviced for others | 18,281 | 123,324 | 13,959 | 17,840 | ||||||||||||
Total serviced reverse mortgage loan portfolio | $ | 15,387,581 | $ | 14,264,917 | $ | 16,650,424 | $ | 15,897,205 | ||||||||
(1) | Loans not securitized represent primarily newly originated loans. |
(2) | Unpoolable loans represent primarily loans that have reached 98% of their MCA. |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Fixed rate loans | $ | 5,266,718 | $ | 5,010,659 | $ | 6,566,169 | $ | 5,384,865 | ||||||||
Adjustable rate loans | 10,058,249 | 9,081,679 | 10,013,924 | 10,445,875 | ||||||||||||
�� | ||||||||||||||||
Total owned reverse mortgage portfolio | $ | 15,324,967 | $ | 14,092,338 | $ | 16,580,093 | $ | 15,830,740 | ||||||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations - UPB | $ | 9,617,079 | $ | 9,045,104 | ||||
Fair value adjustments | 730,380 | 884,059 | ||||||
Total reverse mortgage loans held for investment, subject to HMBS related obligations, at fair value | $ | 10,347,459 | $ | 9,929,163 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Loans held for investment, subject to HMBS related obligations - UPB | $ | 10,109,820 | $ | 9,849,835 | ||||
Fair value adjustments | 562,332 | 706,219 | ||||||
Total loans held for investment, subject to HMBS related obligations, at fair value | $ | 10,672,152 | $ | 10,556,054 | ||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Successor | Predecessor | |||||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt - UPB: | ||||||||||||||||
Loans held for investment, subject to nonrecourse debt - UPB: | ||||||||||||||||
Reverse mortgage loans | $ | 4,986,876 | $ | 4,457,805 | $ | 5,481,952 | $ | 5,165,479 | ||||||||
Commercial mortgage loans | 268,288 | 333,344 | 404,974 | 388,788 | ||||||||||||
Fair value adjustments | 684,487 | 605,018 | 349,064 | 663,927 | ||||||||||||
Total mortgage loans held for investment, subject to nonrecourse debt, at fair value | $ | 5,939,651 | $ | 5,396,167 | ||||||||||||
Total loans held for investment, subject to nonrecourse debt, at fair value | $ | 6,235,990 | $ | 6,218,194 | ||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Loans 90 days or more past due and on non-accrual status | ||||||||||||||||
Fair value: | ||||||||||||||||
Commercial mortgage loans | $ | 30,720 | $ | 32,377 | $ | 23,399 | $ | 26,081 | ||||||||
Total fair value | 30,720 | 32,377 | 23,399 | 26,081 | ||||||||||||
Aggregate UPB: | ||||||||||||||||
Commercial mortgage loans | 30,871 | 33,888 | 23,697 | 26,472 | ||||||||||||
Total aggregate UPB | 30,871 | 33,888 | 23,697 | 26,472 | ||||||||||||
Difference | $ | (151 | ) | $ | (1,511 | ) | $ | (298 | ) | $ | (391 | ) | ||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Successor | Predecessor | |||||||||||||||
Mortgage loans held for investment - UPB: | ||||||||||||||||
Loans held for investment - UPB: | ||||||||||||||||
Reverse mortgage loans | $ | 721,012 | $ | 589,429 | $ | 988,321 | $ | 815,426 | ||||||||
Commercial mortgage loans | 233,101 | 69,127 | 115,091 | 89,267 | ||||||||||||
Fair value adjustments | 123,557 | 72,265 | 115,578 | 126,635 | ||||||||||||
Total mortgage loans held for investment, at fair value | $ | 1,077,670 | $ | 730,821 | ||||||||||||
Total loans held for investment, at fair value | $ | 1,218,990 | $ | 1,031,328 | ||||||||||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Mortgage loans held for sale - UPB: | ||||||||
Residential mortgage loans | $ | 1,859,842 | $ | 2,000,795 | ||||
Commercial mortgage loans | 138,101 | 140,693 | ||||||
Fair value adjustments | 49,072 | 81,323 | ||||||
Total mortgage loans held for sale, at fair value | $ | 2,047,015 | $ | 2,222,811 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Loans held for sale - UPB: | ||||||||
Residential mortgage and home improvement loans | $ | 1,499,525 | $ | 1,859,788 | ||||
Commercial mortgage loans | 211,516 | 145,463 | ||||||
Fair value adjustments | (1,684 | ) | 47,127 | |||||
Total loans held for sale, at fair value | $ | 1,709,357 | $ | 2,052,378 | ||||
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Loans 90 days or more past due and on non-accrual status | ||||||||||||||||
Fair value: | ||||||||||||||||
Residential mortgage loans | $ | 3,256 | $ | 10,628 | ||||||||||||
Residential mortgage and home improvement loans | $ | 3,495 | $ | 3,195 | ||||||||||||
Commercial mortgage loans | 2,952 | 5,051 | 2,549 | 3,163 | ||||||||||||
Total fair value | 6,208 | 15,679 | 6,044 | 6,358 | ||||||||||||
Aggregate UPB: | ||||||||||||||||
Residential mortgage loans | 3,905 | 13,236 | 3,993 | 3,753 | ||||||||||||
Commercial mortgage loans | 3,141 | 5,317 | 2,676 | 3,323 | ||||||||||||
Total aggregate UPB | 7,046 | 18,553 | 6,669 | 7,076 | ||||||||||||
Difference | $ | (838 | ) | $ | (2,874 | ) | $ | (625 | ) | $ | (718 | ) | ||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Cash flows: | ||||||||||||||||||||
Sales proceeds | $ | 5,529,393 | $ | 10,710,950 | $ | 6,387,933 | $ | 2,464,412 | $ | 5,333,372 | ||||||||||
Fair value of retained beneficial interest (1) | 51,747 | 101,055 | 66,400 | 53,401 | 98,256 | |||||||||||||||
Gross servicing fees received | 14,878 | 29,156 | 13,877 | 5,677 | 7,501 | |||||||||||||||
Repurchases | (5,320 | ) | (12,138 | ) | (4,144 | ) | (10,169 | ) | (18,716 | ) | ||||||||||
Gain | 200,758 | 397,887 | 284,948 | 369,473 | 661,144 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||
Successor | Predecessor | |||||||
Beginning balance | $ | 2,052,378 | $ | 2,222,811 | ||||
Originations/purchases/repurchases | 5,488,887 | 8,569,575 | ||||||
Proceeds from sales | (5,872,779 | ) | (8,878,131 | ) | ||||
Loans acquired through business combinations | 0 | 35,226 | ||||||
Net transfers from loans held for investment | 2,905 | 0 | ||||||
Gain on loans held for sale, net | 44,872 | 188,564 | ||||||
Net fair value gains on loans held for sale | (6,906 | ) | 2,316 | |||||
Ending balance | $ | 1,709,357 | $ | 2,140,361 | ||||
10. Mortgage Servicing Rights, at Fair Value |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Fannie Mae/Freddie Mac | $ | 33,034,877 | $ | 20,501,504 | $ | 31,324,584 | $ | 37,079,995 | ||||||||
Ginnie Mae | 235,279 | 1,727,831 | 1,656,411 | 1,109,962 | ||||||||||||
Private investors | 820,959 | 40,027 | 1,077,563 | 1,109,459 | ||||||||||||
Total UPB | $ | 34,091,115 | $ | 22,269,362 | $ | 34,058,558 | $ | 39,299,416 | ||||||||
Weighted average interest rate | 3.0 | % | 3.1 | % | 3.12 | % | 3.03 | % |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Beginning UPB | $ | 30,592,187 | $ | 26,675,358 | $ | 22,269,362 | $ | 7,211,843 | $ | 288,057 | ||||||||||
Originated MSR | 5,380,307 | 10,520,166 | 6,312,227 | 7,308,891 | 14,295,128 | |||||||||||||||
Purchased MSR | 228,470 | 234,007 | 866,806 | — | — | |||||||||||||||
Payoffs, sales and curtailments | (2,109,849 | ) | (3,338,416 | ) | (2,773,037 | ) | (243,225 | ) | (305,676 | ) | ||||||||||
Ending UPB | $ | 34,091,115 | $ | 34,091,115 | $ | 26,675,358 | $ | 14,277,509 | $ | 14,277,509 | ||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||
Successor | Predecessor | |||||||
Beginning UPB | $ | 39,299,416 | $ | 22,269,362 | ||||
Originated MSRs | 4,257,281 | 6,312,227 | ||||||
Purchased MSRs | 0 | 866,806 | ||||||
Sold MSRs | (8,368,734 | ) | (1,090,267 | ) | ||||
Portfolio runoff | (805,668 | ) | (1,488,977 | ) | ||||
Other | (323,737 | ) | (193,793 | ) | ||||
Ending UPB | $ | 34,058,558 | $ | 26,675,358 | ||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Beginning balance | $ | 290,938 | $ | 267,364 | $ | 180,684 | $ | 42,684 | $ | 2,600 | $ | 427,942 | $ | 180,684 | ||||||||||||||||||
Originations | 52,252 | 102,301 | 65,964 | 53,401 | 98,256 | 53,444 | 65,964 | |||||||||||||||||||||||||
Purchases | 2,291 | 2,352 | 9,014 | — | — | 0 | 9,014 | |||||||||||||||||||||||||
Sales | (2,501 | ) | (2,501 | ) | (8,647 | ) | — | — | (107,652 | ) | (8,647 | ) | ||||||||||||||||||||
Changes in fair value due to: | ||||||||||||||||||||||||||||||||
Changes in market inputs or assumptions used in valuation model | 13,165 | (2,886 | ) | 35,109 | 8,170 | 4,746 | 63,890 | 35,109 | ||||||||||||||||||||||||
Changes in fair value due to portfolio runoff and other | (15,196 | ) | (25,681 | ) | (14,760 | ) | (3,716 | ) | (5,063 | ) | (11,522 | ) | (14,760 | ) | ||||||||||||||||||
Ending balance | $ | 340,949 | $ | 340,949 | $ | 267,364 | $ | 100,539 | $ | 100,539 | $ | 426,102 | $ | 267,364 | ||||||||||||||||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||
Successor | Predecessor | Number of Loans | Unpaid Balance | Number of Loans | Unpaid Balance | |||||||||||||||||||||||||||
Number of Loans | Unpaid Balance | Number of Loans | Unpaid Balance | |||||||||||||||||||||||||||||
Portfolio delinquency | ||||||||||||||||||||||||||||||||
30 days | 0.4 | % | 0.4 | % | 0.5 | % | 0.5 | % | ||||||||||||||||||||||||
Portfolio delinquency 30 days | 0.4 | % | 0.4 | % | 0.4 | % | 0.3 | % | ||||||||||||||||||||||||
60 days | 0.0 | % | 0.0 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.0 | % | ||||||||||||||||
90 or more days | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||||||||||
Total | 0.5 | % | 0.5 | % | 0.8 | % | 0.7 | % | 0.6 | % | 0.6 | % | 0.6 | % | 0.4 | % | ||||||||||||||||
Foreclosure/real estate owned | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
Derivative and Risk Management Activities |
September 30, 2021 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Successor | Derivative assets | Derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative liabilities | Fair value | Notional amount | Unrealized gains (losses) | Fair value | Notional amount | Unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||
Fair value | Notional amount | Unrealized gains (losses) | Fair value | Notional amount | Unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 29,175 | $ | 2,865,203 | $ | (58,401 | ) | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Forward commitments, TBAs securities and treasury futures | 974 | 2,872,378 | (832 | ) | 105 | 2,880,000 | 1,227 | |||||||||||||||||||||||||||||||||||||||||
IRLCs | $ | 2,736 | $ | 2,182,604 | $ | (20,486 | ) | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Forward commitments, TBAs and Treasury Futures | 2,172 | 81,737 | 408 | 57 | 362,000 | 129 | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swaps and futures contracts | 12,607 | 1,260,400 | 9,924 | 10,617 | 1,108,700 | (9,862 | ) | 241,430 | 7,317,500 | 218,781 | 90,124 | 4,732,700 | (65,276 | ) | ||||||||||||||||||||||||||||||||||
Forward MBS | 12,237 | 2,391,000 | 12,238 | 1,061 | 458,500 | 17,574 | 34,867 | 2,326,213 | 33,632 | 1,183 | 243,000 | 461 | ||||||||||||||||||||||||||||||||||||
Net fair value of derivative financial instruments | $ | 54,993 | $ | 9,388,981 | $ | (37,071 | ) | $ | 11,783 | $ | 4,447,200 | $ | 8,939 | $ | 281,205 | $ | 11,908,054 | $ | 232,335 | $ | 91,364 | $ | 5,337,700 | $ | (64,686 | ) | ||||||||||||||||||||||
December 31, 2020 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Predecessor | Derivative assets | Derivative liabilities | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative liabilities | Fair value | Notional amount | Unrealized gains (losses) | Fair value | Notional amount | Unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||
Fair value | Notional amount | Unrealized gains (losses) | Fair value | Notional amount | Unrealized gains (losses) | |||||||||||||||||||||||||||||||||||||||||||
Interest rate lock commitments | $ | 87,576 | $ | 2,897,479 | $ | 73,568 | $ | — | $ | 13,822 | $ | 68 | ||||||||||||||||||||||||||||||||||||
Forward commitments, TBAs securities and treasury futures | 1,806 | 399,612 | 968 | 1,332 | 389,422 | (1,248 | ) | |||||||||||||||||||||||||||||||||||||||||
IRLCs | $ | 23,222 | $ | 2,047,938 | $ | (64,354 | ) | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Forward commitments, TBAs and Treasury Futures | 1,763 | 6,171,300 | (43 | ) | 186 | 6,113,000 | 1,146 | |||||||||||||||||||||||||||||||||||||||||
Interest rate swaps and futures contracts | 2,683 | 1,386,400 | 2,324 | 755 | 744,500 | (617 | ) | 22,650 | 6,143,300 | 19,966 | 24,848 | 6,094,100 | (24,093 | ) | ||||||||||||||||||||||||||||||||||
Forward MBS | — | — | (348 | ) | 18,635 | 3,187,000 | (16,587 | ) | 1,235 | 658,000 | 1,235 | 1,644 | 1,501,000 | 16,991 | ||||||||||||||||||||||||||||||||||
Net fair value of derivative financial instruments | $ | 92,065 | $ | 4,683,491 | $ | 76,512 | $ | 20,722 | $ | 4,334,744 | $ | (18,384 | ) | $ | 48,870 | $ | 15,020,538 | $ | (43,196 | ) | $ | 26,678 | $ | 13,708,100 | $ | (5,956 | ) | |||||||||||||||||||||
12. | Goodwill |
As of March 31, 2022 | As of March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Beginning balance | $ | 0 | $ | 121,233 | ||||||||
Additions from acquisitions | 0 | 7,517 | ||||||||||
Ending balance | $ | 0 | $ | 128,750 | ||||||||
As of March 31, 2022 | As of March 31, 2021 | |||||||||
Successor | Predecessor | |||||||||
Reporting units: | ||||||||||
Mortgage Originations | $ | 0 | $ | 51,946 | ||||||
Commercial Originations | 0 | 43,113 | ||||||||
Lender Services | 0 | 25,247 | ||||||||
Portfolio Management | 0 | 8,444 | ||||||||
Total goodwill | $ | 0 | $ | 128,750 | ||||||
13. | Intangible Assets, Net |
March 31, 2022 | Amortization Period (Years) | Cost | Accumulated Amortization | Impairment | Net | |||||||||||||||
Successor: | ||||||||||||||||||||
Non-amortizing intangibles | ||||||||||||||||||||
Trade name | N/A | $ | 91,600 | $ | — | $ | — | $ | 91,600 | |||||||||||
Total non-amortizing intangibles | $ | 91,600 | $ | — | $ | — | $ | 91,600 | ||||||||||||
Amortizing intangibles | ||||||||||||||||||||
Broker/customer relationships | 8 - 15 | $ | 541,100 | $ | (52,948 | ) | $ | — | $ | 488,152 | ||||||||||
Trade names and other | 5 - 10 | 10,937 | (1,597 | ) | — | 9,340 | ||||||||||||||
Total amortizing intangibles | $ | 552,037 | $ | (54,545 | ) | $ | — | $ | 497,492 | |||||||||||
Total intangibles | $ | 643,637 | $ | (54,545 | ) | $ | — | $ | 589,092 | |||||||||||
|
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Beginning balance | $ | 1,298,324 | $ | — | $ | 121,233 | $ | 121,754 | $ | 121,137 | ||||||||||
Additions from acquisitions | 472 | 1,298,796 | 7,517 | 0 | 617 | |||||||||||||||
Ending balance | $ | 1,298,796 | $ | 1,298,796 | $ | 128,750 | $ | 121,754 | $ | 121,754 | ||||||||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Reporting units: | ||||||||
Mortgage Originations | $ | 712,524 | $ | 44,429 | ||||
Reverse Originations | 405,445 | — | ||||||
Commercial Originations | 75,768 | 43,113 | ||||||
Lender Services | 102,250 | 25,247 | ||||||
Portfolio Management | 2,809 | 8,444 | ||||||
Total goodwill | $ | 1,298,796 | $ | 121,233 | ||||
September 30, 2021 | Amortization Period (Years) | Cost | Accumulated Amortization | Net | ||||||||||||
Successor: | ||||||||||||||||
Non-amortizing intangibles | ||||||||||||||||
Trade name | N/A | $ | 178,000 | $ | — | $ | 178,000 | |||||||||
Total non-amortizing intangibles | $ | 178,000 | $ | — | $ | 178,000 | ||||||||||
Amortizing intangibles | ||||||||||||||||
Broker/customer relationships | 8 - 15 | $ | 530,900 | $ | (26,474 | ) | $ | 504,426 | ||||||||
Trade names and other | 5 - 10 | 10,690 | (440 | ) | 10,250 | |||||||||||
Total amortizing intangibles | $ | 541,590 | $ | (26,914 | ) | $ | 514,676 | |||||||||
Total intangibles | $ | 719,590 | $ | (26,914 | ) | $ | 692,676 | |||||||||
December 31, 2020 | Amortization Period (Years) | Cost | Accumulated Amortization | Net | ||||||||||||
Predecessor: | ||||||||||||||||
Non-amortizing Intangibles | ||||||||||||||||
Domain name | N/A | $ | 5,422 | $ | — | $ | 5,422 | |||||||||
Total non-amortizing intangibles | $ | 5,422 | $ | — | $ | 5,422 | ||||||||||
Amortizing Intangibles | ||||||||||||||||
Customer list | 5 - 12 | $ | 12,754 | $ | (5,100 | ) | $ | 7,654 | ||||||||
Broker relationships | 10 | 7,627 | (5,429 | ) | 2,198 | |||||||||||
Trade names | 5 - 20 | 2,495 | (1,487 | ) | 1,008 | |||||||||||
Technology assets | 5 | 805 | (156 | ) | 649 | |||||||||||
Total amortizing intangibles | $ | 23,681 | $ | (12,172 | ) | $ | 11,509 | |||||||||
Total intangibles | $ | 29,103 | $ | (12,172 | ) | $ | 16,931 | |||||||||
Year Ending December 31, | Amount | Amount | ||||||
2021 | $ | 13,552 | ||||||
2022 | 54,206 | $ | 41,645 | |||||
2023 | 54,206 | 55,233 | ||||||
2024 | 54,206 | 55,233 | ||||||
2025 | 54,206 | 55,233 | ||||||
2026 | 55,126 | |||||||
Thereafter | 284,300 | 235,022 | ||||||
Total future amortization expense | $ | 514,676 | ||||||
Total future amortization expens e | $ | 497,492 | ||||||
HMBS Related Obligations, at Fair Value |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Ginnie Mae loan pools - UPB | $ | 9,617,079 | $ | 9,045,104 | $ | 10,109,820 | $ | 9,849,835 | ||||||||
Fair value adjustments | 599,231 | 743,564 | 438,311 | 572,523 | ||||||||||||
Total HMBS related obligations, at fair value | $ | 10,216,310 | $ | 9,788,668 | $ | 10,548,131 | $ | 10,422,358 | ||||||||
Weighted average remaining life | 4.4 | 4.5 | ||||||||||||||
Weighted average remaining life (in years) | 4.4 | 4.6 | ||||||||||||||
Weighted average interest rate | 2.5 | % | 3.0 | % | 2.6 | % | 2.5 | % |
Issue Date | Class of Note | Final Maturity Date | Interest Rate | Original Issue Amount | September 30, 2021 | December 31, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||
Securitization of nonperforming HECM loans | February 2020 - February 2021 | A, M1, M2, M3, M4, M5 | February 2030 - February 2031 | 0.88 9.00 | % - % | $ | 1,539,531 | $ | 951,251 | $ | 775,030 | |||||||||||
Securitization of non-agency reverse loans | May 2018 - September 2021 | A, A1, A1A, A1B, A2 | April 2023 - November 2069 | 1.25 4.50 | % - % | 5,744,467 | 4,435,064 | 4,037,184 | ||||||||||||||
Securitization of Fix & Flip loans | September 2018 - April 2021 | A1, A2, A-VFN, M | May 2022 - May 2025 | 2.10 8.00 | % - % | 1,002,424 | 268,511 | 342,793 | ||||||||||||||
Issue Date | Class of Note | Final Maturity Date | Interest Rate | Original Issue Amount | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||
Total nonrecourse debt | 5,654,826 | 5,155,007 | ||||||||||||||||||||||||
Nonrecourse MSR financing liability, at fair value | 96,073 | 14,088 | ||||||||||||||||||||||||
Fair value adjustments | 80,184 | 102,747 | ||||||||||||||||||||||||
Total nonrecourse debt, at fair value | $ | 5,831,083 | $ | 5,271,842 | ||||||||||||||||||||||
Nonrecourse Debt, at Fair Value |
Issue Date | Final Maturity Date | Interest Rate | Original Issue Amount | March 31, 2022 | December 31, 2021 | |||||||||||||||
Securitization of performing / nonperforming HECM loans | July 2020 - February 2022 | July 2030 - February 2032 | | 0.88% - 9.32% | | $1,805,528 | $1,026,869 | $922,970 | ||||||||||||
Securitization of non-agency reverse loans | May 2018 - February 2022 | May 2023 - November 2069 | | 1.25% - 4.50% | | 6,345,967 | 4,857,333 | 4,630,203 | ||||||||||||
Securitization of Fix & Flip loans | April 2021 | November 2024 - May 2025 | | 2.10% - 5.40% | | 268,511 | 268,511 | 268,511 | ||||||||||||
Total consolidated VIE nonrecourse debt UPB | 6,152,713 | 5,821,684 | ||||||||||||||||||
Nonrecourse MSR financing liability, at fair value | 163,981 | 142,435 | ||||||||||||||||||
Nonrecourse commercial loan financing liability (1) | 123,900 | 107,744 | ||||||||||||||||||
Fair value adjustments | (116,817 | ) | 39,379 | |||||||||||||||||
Total nonrecourse debt, at fair value | $ | 6,323,777 | $ | 6,111,242 | ||||||||||||||||
Year Ending December 31, | Estimated Maturities (1) | |||
2022 | $ | 1,242,161 | ||
2023 | 2,644,434 | |||
2024 | 2,088,782 | |||
2025 | 301,236 | |||
Thereafter | 0 | |||
Total payments on nonrecourse debt | $ | 6,276,613 | ||
(1) | Nonrecourse MSR financing liability is excluded from this balance, as the timing of the payments of the nonrecourse MSR financing liability is dependent on the payments received on the underlying MSRs and no contractual maturity date is applicable. |
16. | Other Financing Lines of Credit |
Outstanding Borrowings at | ||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | Outstanding borrowings at | ||||||||||||||||||||||||||||||||||||||
Maturity Date | Interest Rate | Collateral Pledged | Total Capacity (1) | Successor | Predecessor | Interest Rate | Collateral Pledged | Total Capacity (1) | March 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||
Mortgage Lines: | ||||||||||||||||||||||||||||||||||||||||
October 2021 - June 2023 (2) | LIBOR + applicable margin | | First Lien Mortgages | | $ | 3,575,000 | $ | 1,783,544 | $ | 1,997,464 | ||||||||||||||||||||||||||||||
April 2022 - June 2023 | LIBOR/SOFR + applicable margin | | First Lien Mortgages | | $ | 3,225,000 | $ | 1,431,784 | $ | 1,802,348 | ||||||||||||||||||||||||||||||
May 2022 - November 2022 | LIBOR/ AMERIBOR + applicable margin | MSRs | 95,329 | 110,885 | 138,524 | |||||||||||||||||||||||||||||||||||
March 2026 | LIBOR + applicable margin | | MSRs | 150,000 | 117,736 | 0 | LIBOR + applicable margin | | Mortgage Related Assets | | 150,000 | 51,269 | 55,666 | |||||||||||||||||||||||||||
December 2021 - November 2022 | LIBOR + applicable margin | | Mortgage Related Assets | | 87,106 | 69,877 | 0 | |||||||||||||||||||||||||||||||||
Subtotal mortgage lines of credit | Subtotal mortgage lines of credit | $ | 3,812,106 | $ | 1,971,157 | $ | 1,997,464 | Subtotal mortgage lines of credit | $ | 3,470,329 | $ | 1,593,908 | $ | 1,996,538 | ||||||||||||||||||||||||||
Reverse Lines: | ||||||||||||||||||||||||||||||||||||||||
October 2021 - August 2022 (2) | LIBOR + applicable margin | | First Lien Mortgages | | $ | 1,200,000 | $ | 620,418 | $ | 477,637 | ||||||||||||||||||||||||||||||
April 2022 - April 2023 | LIBOR + applicable margin | | First Lien Mortgages | | $ | 1,275,000 | $ | 887,435 | $ | 714,013 | ||||||||||||||||||||||||||||||
April 2022 - September 2023 | | Bond accrual rate + applicable margin | | Mortgage Related Assets | | 398,719 | 278,924 | 252,880 | Bond accrual rate + applicable margin | | Mortgage Related Assets | | 397,500 | 300,834 | 297,893 | |||||||||||||||||||||||||
February 2024 | LIBOR + applicable margin | | MSRs | 90,000 | 88,072 | 0 | LIBOR + applicable margin | | MSRs | 90,000 | 70,365 | 78,952 | ||||||||||||||||||||||||||||
April 2022 | Prime + .50%; 6% floor | | Unsecuritized Tails | | 50,000 | 40,954 | 37,442 | |||||||||||||||||||||||||||||||||
May 2022 | Prime + .50%; 6% floor | | Unsecuritized Tails | | 50,000 | 44,257 | 38,544 | |||||||||||||||||||||||||||||||||
Subtotal reverse lines of credit | Subtotal reverse lines of credit | $ | 1,738,719 | $ | 1,028,368 | $ | 767,959 | Subtotal reverse lines of credit | $ | 1,812,500 | $ | 1,302,891 | $ | 1,129,402 | ||||||||||||||||||||||||||
Commercial Lines: | ||||||||||||||||||||||||||||||||||||||||
February 2022 - November 2023 | LIBOR + applicable margin | | First Lien Mortgages | | $ | 510,000 | $ | 149,787 | $ | 128,134 | ||||||||||||||||||||||||||||||
August 2022 - September 2022 | LIBOR + applicable margin | | | Encumbered Agricultural Loans | | 225,000 | 152,634 | 52,300 | ||||||||||||||||||||||||||||||||
June 2022 - August 2022 | LIBOR/SOFR + applicable margin | | Encumbered Agricultural Loans | | $ | 125,000 | $ | 25,036 | $ | 25,127 | ||||||||||||||||||||||||||||||
April 2022 - January 2024 | LIBOR + applicable margin | | First Lien Mortgages | | 432,500 | 237,921 | 167,159 | |||||||||||||||||||||||||||||||||
August 2022 | 10% | Second Lien Mortgages | | 25,000 | 21,701 | 21,475 | 10% | Second Lien Mortgages | | 30,000 | 30,000 | 24,175 | ||||||||||||||||||||||||||||
N/A | LIBOR + applicable margin | | Mortgage Related Assets | | 1,509 | 1,509 | 6,411 | LIBOR + applicable margin | | Mortgage Related Assets | | — | — | 5,041 | ||||||||||||||||||||||||||
Subtotal commercial lines of credit | Subtotal commercial lines of credit | $ | 761,509 | $ | 325,631 | $ | 208,320 | Subtotal commercial lines of credit | $ | 587,500 | $ | 292,957 | $ | 221,502 | ||||||||||||||||||||||||||
Total other financing lines of credit | Total other financing lines of credit | $ | 6,312,334 | $ | 3,325,156 | $ | 2,973,743 | Total other financing lines of credit | $ | 5,870,329 | $ | 3,189,756 | $ | 3,347,442 | ||||||||||||||||||||||||||
(1) | Capacity is dependent upon maintaining compliance with, or obtaining waivers of, the terms, conditions and covenants of the respective agreements, including asset-eligibility requirements. Capacity amounts presented are as of |
Financial Covenants | Requirement | March 31, 2022 | Maximum Allowable Distribution (1) | |||||||||
FAM | ||||||||||||
Adjusted Tangible Net Worth (2) | $ | 225,000 | $ | 243,900 | $ | 18,900 | ||||||
Liquidity | 55,000 | 68,451 | $ | 13,451 | ||||||||
Leverage Ratio | 15:1 | 10.2:1 | 78,327 | |||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) | $ | 161,235 | $ | 301,073 | $ | 139,838 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) (3) | 120,432 | 301,073 | $ | 180,641 | ||||||||
FAR | ||||||||||||
Adjusted Tangible Net Worth (2) | $ | 417,826 | $ | 452,613 | $ | 34,787 | ||||||
Liquidity | 20,000 | 113,656 | $ | 93,656 | ||||||||
Leverage Ratio | 6:1 | 4.3:1 | $ | 126,542 |
Successor | ||||||||||||
Financial Covenants | Requirement | September 30, 2021 | Maximum Allowable Distribution (1) | |||||||||
FAM | ||||||||||||
Adjusted Tangible Net Worth | $ | 150,000 | $ | 200,718 | $ | 50,718 | ||||||
Liquidity | 40,000 | 67,053 | $ | 27,053 | ||||||||
Leverage Ratio | 15:1 | 12.6:1 | 32,538 | |||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ | 143,538 | $ | 200,719 | $ | 57,181 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 235,832 | 200,719 | $ | (35,113 | ) | |||||||
FACo | ||||||||||||
Adjusted Tangible Net Worth | $ | 85,000 | $ | 101,942 | $ | 16,942 | ||||||
Liquidity | 20,000 | 37,294 | $ | 17,294 | ||||||||
Leverage Ratio | 6:1 | 3.7:1 | 39,855 | |||||||||
FAR | ||||||||||||
Adjusted Tangible Net Worth | $ | 450,000 | $ | 501,822 | $ | 51,822 | ||||||
Liquidity | 20,000 | 33,480 | $ | 13,480 | ||||||||
Leverage Ratio | 6:1 | 2.9:1 | $ | 242,109 | ||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ | 336,035 | $ | 476,133 | $ | 140,098 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 235,832 | 476,133 | $ | 240,301 |
(1) | The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations |
(2) | This amount is based on the most restrictive financing line of credit covenant. |
(3) | This amount is the covenant calculation specific to FNMA. |
Predecessor | ||||||||||||
Financial Covenants | Requirement | December 31, 2020 | Maximum Allowable Distribution (1) | |||||||||
FAM | ||||||||||||
Adjusted Tangible Net Worth | $ | 125,000 | $ | 289,163 | $ | 164,163 | ||||||
Liquidity | 40,000 | 56,775 | 16,775 | |||||||||
Leverage Ratio | 15:1 | 9.3:1 | 110,267 | |||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ | 210,428 | $ | 282,062 | $ | 71,634 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 93,763 | 282,062 | 188,299 | |||||||||
FACo | ||||||||||||
Adjusted Tangible Net Worth | $ | 85,000 | $ | 126,672 | $ | 41,672 | ||||||
Liquidity | 20,000 | 46,385 | 26,385 | |||||||||
Leverage Ratio | 6:1 | 1.7:1 | 90,782 | |||||||||
FAR | ||||||||||||
Adjusted Tangible Net Worth | $ | 300,000 | $ | 474,128 | $ | 174,128 | ||||||
Liquidity | 20,000 | 36,425 | 16,425 | |||||||||
Leverage Ratio | 5.5:1 | 2.5:1 | 258,615 | |||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) | $ | 314,091 | $ | 472,458 | $ | 158,367 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement) | 205,619 | 472,458 | 266,839 |
Financial Covenants | Requirement | December 31, 2021 | Maximum Allowable Distribution (1) | |||||||||
FAM | ||||||||||||
Adjusted Tangible Net Worth (2) | $ | 150,000 | $ | 180,032 | $ | 30,032 | ||||||
Liquidity | 40,000 | 43,734 | 3,734 | |||||||||
Leverage Ratio | 15:1 | 13.9:1 | 12,154 | |||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement) (3) | $ | 150,539 | $ | 214,979 | $ | 64,440 | ||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement)(3) | 114,830 | 214,979 | 100,149 | |||||||||
FACo | ||||||||||||
Adjusted Tangible Net Worth | $ | 85,000 | $ | 87,350 | $ | 2,350 | ||||||
Liquidity | 20,000 | 32,728 | 12,728 | |||||||||
Leverage Ratio | 6:1 | 2.8:1 | 46,895 | |||||||||
FAR | ||||||||||||
Adjusted Tangible Net Worth | $ | 417,826 | $ | 527,443 | $ | 109,617 | ||||||
Liquidity | 20,000 | 23,845 | 3,845 | |||||||||
Leverage Ratio | 6:1 | 2.9:1 | 264,134 |
(1) | The Maximum Allowable Distribution for any of the originations subsidiaries is the lowest of the amounts shown for the particular originations subsidiary. |
(2) | This amount is based on the most restrictive financing line of credit covenant. |
(3) | This amount is the covenant calculation specific to FNMA. |
Payables and Other Liabilities |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Successor | Predecessor | |||||||||||||||
Accrued liabilities | $ | 259,133 | $ | 114,931 | ||||||||||||
Derivative liabilities | 91,364 | 26,678 | ||||||||||||||
Accrued compensation expense | $ | 150,821 | $ | 150,214 | 82,052 | 129,919 | ||||||||||
Accrued liabilities | 135,747 | 83,427 | ||||||||||||||
Lease liabilities | 61,846 | 48,250 | 62,933 | 65,518 | ||||||||||||
Deferred purchase price liabilities | 47,317 | 3,842 | 42,541 | 47,479 | ||||||||||||
Ginnie Mae reverse mortgage buy-out payable | 36,574 | 32,317 | ||||||||||||||
GNMA reverse mortgage buyout payable | 33,601 | 31,274 | ||||||||||||||
Deferred tax liability, net | 27,213 | — | 19,658 | 18,581 | ||||||||||||
Estimate of claim losses | 14,015 | 8,609 | 15,821 | 14,993 | ||||||||||||
Derivative liabilities | 11,783 | 20,722 | ||||||||||||||
Liability for loans eligible for repurchase from GNMA | 10,345 | 7,956 | ||||||||||||||
Repurchase reserves | 7,856 | 8,685 | ||||||||||||||
Warrant liability | 9,342 | — | 5,648 | 5,497 | ||||||||||||
Repurchase reserves | 7,879 | 10,529 | ||||||||||||||
Liability for loans eligible for repurchase from Ginnie Mae | 7,266 | 42,148 | ||||||||||||||
Total payables and other liabilities | $ | 509,803 | $ | 400,058 | $ | 630,952 | $ | 471,511 | ||||||||
Notes Payable, Net |
Description | Maturity Date | Interest Rate | September 30, 2021 | December 31, 2020 | ||||||||||||
Successor | Predecessor | |||||||||||||||
Senior Unsecured Notes | November 2025 | 7.9 | % | $ | 350,000 | $ | 350,000 | |||||||||
Financing Agreement | January 2021 | 5.5% | 0 | 9 | ||||||||||||
Total aggregate principle amount | 350,000 | 350,009 | ||||||||||||||
Fair value adjustment, net of amortization (1) | 3,567 | 0 | ||||||||||||||
Less: Debt issuance costs | 0 | (13,436 | ) | |||||||||||||
Total notes payable, net | $ | 353,567 | $ | 336,573 | ||||||||||||
Description | Maturity Date | Interest Rate | March 31, 2022 | December 31, 2021 | ||||||||
Senior Unsecured Notes | November 2025 | 7.9% | $ | 350,000 | $ | 350,000 | ||||||
Fair value adjustment, net of amortization (1) | 3,196 | 3,383 | ||||||||||
Total notes payable, net | $ | 353,196 | $ | 353,383 | ||||||||
(1) | In conjunction with the Business Combination, |
Litigation |
Commitments and Contingencies |
Grant Date Fair Value | Grant Date Fair Value | |||||||||||||||||||||||||||||||||||||||
Replacement RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value (in thousands) | ||||||||||||||||||||||||||||||
Outstanding, July 1, 2021 | 10,753,414 | 4,066,069 | 14,819,483 | $ | 9.48 | $ | 140,489 | |||||||||||||||||||||||||||||||||
Outstanding, December 31, 2021 | 10,392,226 | 20,640 | 10,412,866 | $ | 9.48 | $ | 98,714 | |||||||||||||||||||||||||||||||||
Granted | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Vested | (154,788 | ) | 154,788 | — | — | — | (722,398 | ) | 722,398 | — | — | — | ||||||||||||||||||||||||||||
Forfeited | (20,640 | ) | — | (20,640 | ) | 9.48 | (196 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Settled | — | (4,220,857 | ) | (4,220,857 | ) | 9.48 | (40,014 | ) | — | (20,640 | ) | (20,640 | ) | 9.48 | (196 | ) | ||||||||||||||||||||||||
Outstanding, September 30, 2021 | 10,577,986 | 0 | 10,577,986 | $ | 9.48 | $ | 100,279 | |||||||||||||||||||||||||||||||||
Outstanding, March 31, 2022 | 9,669,828 | 722,398 | 10,392,226 | $ | 9.48 | $ | 98,518 | |||||||||||||||||||||||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Replacement RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value | |||||||||||||||
Outstanding, April 1, 2021 | 0 | 0 | 0 | $ | 0 | $ | 0 | |||||||||||||
Granted | 14,819,483 | — | 14,819,483 | 9.48 | 140,489 | |||||||||||||||
Vested | (4,220,857 | ) | 4,220,857 | — | — | — | ||||||||||||||
Forfeited | (20,640 | ) | — | (20,640 | ) | 9.48 | (196 | ) | ||||||||||||
Settled | — | (4,220,857 | ) | (4,220,857 | ) | 9.48 | (40,014 | ) | ||||||||||||
Outstanding, September 30, 2021 | 10,577,986 | 0 | 10,577,986 | $ | 9.48 | $ | 100,279 | |||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Earnout Right RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value (in thousands) | |||||||||||||||
Outstanding, December 31, 2021 | 1,531,440 | 0 | 1,531,440 | $ | 8.91 | $ | 13,638 | |||||||||||||
Granted | — | — | — | — | — | |||||||||||||||
Forfeited | — | — | — | — | — | |||||||||||||||
Outstanding, March 31, 2022 | 1,531,440 | 0 | 1,531,440 | $ | 8.91 | $ | 13,638 | |||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Non-LTIP RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value (in thousands) | |||||||||||||||
Outstanding, December 31, 2021 | 168,221 | 0 | 168,221 | $ | 5.35 | $ | 900 | |||||||||||||
Granted | 409,835 | — | 409,835 | 3.35 | 1,373 | |||||||||||||||
Vested | — | — | — | — | — | |||||||||||||||
Settled | — | — | — | — | — | |||||||||||||||
Outstanding, March 31, 2022 | 578,056 | 0 | 578,056 | $ | 3.93 | $ | 2,273 | |||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Earnout Right RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value | |||||||||||||||
Outstanding, July 1, 2021 | 1,550,880 | 0 | 1,550,880 | $ | 8.91 | $ | 13,811 | |||||||||||||
Forfeited | (2,160 | ) | — | (2,160 | ) | 8.91 | (19 | ) | ||||||||||||
Outstanding, September 30, 2021 | 1,548,720 | 0 | 1,548,720 | $ | 8.91 | $ | 13,792 | |||||||||||||
Grant Date Fair Value | ||||||||||||||||||||
Earnout Right RSUs | Number of Units Unvested | Number of Units Vested | Total Number of Units | Weighted Average Price Per Unit | Total Fair Value | |||||||||||||||
Outstanding, April 1, 2021 | 0 | 0 | 0 | $ | 0 | $ | 0 | |||||||||||||
Granted | 1,550,880 | — | 1,550,880 | 8.91 | 13,811 | |||||||||||||||
Forfeited | (2,160 | ) | — | (2,160 | ) | 8.91 | (19 | ) | ||||||||||||
Outstanding, September 30, 2021 | 1,548,720 | — | 1,548,720 | $ | 8.91 | $ | 13,792 | |||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||
Title and closing | $ | 31,358 | $ | 56,549 | $ | 25,061 | $ | 15,835 | $ | 44,512 | ||||||||||||||
Loan origination expenses | 20,983 | 38,708 | 20,503 | 19,771 | 54,344 | |||||||||||||||||||
Depreciation and amortization | 16,492 | 32,953 | 3,484 | 3,367 | 10,324 | |||||||||||||||||||
Loan portfolio expenses | 15,297 | 30,730 | 15,200 | 10,520 | 29,123 | |||||||||||||||||||
Communications and data processing | 14,670 | 27,238 | 11,324 | 8,726 | 23,053 | |||||||||||||||||||
Securitization expenses | 13,237 | 24,068 | 6,944 | 5,243 | 13,592 | |||||||||||||||||||
Business development | 10,492 | 20,139 | 10,607 | 8,247 | 25,837 | |||||||||||||||||||
Licensing and insurance | 2,906 | 6,363 | 2,487 | 1,411 | 4,677 | |||||||||||||||||||
Fair value change in deferred purchase price liability | 237 | 1,997 | 30 | 0 | 0 | |||||||||||||||||||
Other expenses | 15,923 | 22,151 | 31,577 | 40,684 | 68,122 | |||||||||||||||||||
Total general and administrative expenses | $ | 141,595 | $ | 260,896 | $ | 127,217 | $ | 113,804 | $ | 273,584 | ||||||||||||||
Business Segment Reporting |
For the three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Managemen t | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | $ | 200,294 | $ | — | $ | — | $ | 0 | $ | 13,664 | $ | 213,958 | $ | — | $ | (3,863 | ) | $ | 210,095 | |||||||||||||||||
Net fair value gains (losses) | 1,145 | 109,408 | 13,604 | 0 | (448 | ) | 123,709 | — | (1,200 | ) | 122,509 | |||||||||||||||||||||||||
Fee income | 30,827 | 1,022 | 14,252 | 87,592 | 14,937 | 148,630 | 0 | (2,905 | ) | 145,725 | ||||||||||||||||||||||||||
Net interest income (expense) | 2,807 | — | — | (77 | ) | (17,799 | ) | (15,069 | ) | (6,720 | ) | (40 | ) | (21,829 | ) | |||||||||||||||||||||
Total revenues | 235,073 | 110,430 | 27,856 | 87,515 | 10,354 | 471,228 | (6,720 | ) | (8,008 | ) | 456,500 | |||||||||||||||||||||||||
Total expenses | 220,331 | 41,354 | 21,678 | 78,688 | 30,068 | 392,119 | 28,672 | (8,913 | ) | 411,878 | ||||||||||||||||||||||||||
Other, net | — | 221 | 133 | 22 | 252 | 628 | 10,205 | (905 | ) | 9,928 | ||||||||||||||||||||||||||
Net income (loss) before taxes | $ | 14,742 | $ | 69,297 | $ | 6,311 | $ | 8,849 | $ | (19,462 | ) | $ | 79,737 | $ | (25,187 | ) | $ | — | $ | 54,550 | ||||||||||||||||
Depreciation and amortization | $ | 2,822 | $ | 9,970 | $ | 638 | $ | 2,892 | $ | 18 | $ | 16,340 | $ | 152 | $ | 0 | $ | 16,492 | ||||||||||||||||||
Total assets | 2,978,565 | 789,351 | 120,116 | 358,684 | 18,429,429 | 22,676,145 | 964,815 | (972,867 | ) | 22,668,093 |
April 1, 2021 to September 30, 2021 | ||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | $ | 385,680 | $ | — | $ | — | $ | 0 | $ | 21,412 | $ | 407,092 | $ | — | $ | (9,420 | ) | $ | 397,672 | |||||||||||||||||
Net fair value gains | 1,145 | 203,944 | 24,425 | 0 | 10,776 | 240,290 | — | 13,370 | 253,660 | |||||||||||||||||||||||||||
Fee income | 61,172 | 1,976 | 26,376 | 168,722 | 18,514 | 276,760 | 0 | (40,171 | ) | 236,589 | ||||||||||||||||||||||||||
Net interest income (expense) | 4,783 | (9 | ) | — | (92 | ) | (33,650 | ) | (28,968 | ) | (13,287 | ) | (49 | ) | (42,304 | ) | ||||||||||||||||||||
Total revenues | 452,780 | 205,911 | 50,801 | 168,630 | 17,052 | 895,174 | (13,287 | ) | (36,270 | ) | 845,617 | |||||||||||||||||||||||||
Total expenses | 444,522 | 83,600 | 41,727 | 151,962 | 63,325 | 785,136 | 64,669 | (37,175 | ) | 812,630 | ||||||||||||||||||||||||||
Other, net | — | 325 | 273 | 105 | 8 | 711 | 8,019 | (905 | ) | 7,825 | ||||||||||||||||||||||||||
Net income (loss) before taxes | $ | 8,258 | $ | 122,636 | $ | 9,347 | $ | 16,773 | $ | (46,265 | ) | $ | 110,749 | $ | (69,937 | ) | $ | — | $ | 40,812 | ||||||||||||||||
Depreciation and amortization | $ | 4,255 | $ | 9,819 | $ | 1,059 | $ | 5,710 | $ | (89 | ) | $ | 20,754 | $ | 12,199 | $ | 0 | $ | 32,953 | |||||||||||||||||
Total assets | 2,978,565 | 789,351 | 120,116 | 358,684 | 18,429,429 | 22,676,145 | 964,815 | (972,867 | ) | 22,668,093 |
January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Management | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | $ | 286,481 | $ | — | $ | — | $ | 0 | $ | 5,065 | $ | 291,546 | $ | — | $ | (212 | ) | $ | 291,334 | |||||||||||||||||
Net fair value gains | — | 68,449 | 5,431 | 0 | 2,750 | 76,630 | — | 33 | 76,663 | |||||||||||||||||||||||||||
Fee income | 32,731 | 524 | 8,930 | 76,383 | 36,191 | 154,759 | — | 6,612 | 161,371 | |||||||||||||||||||||||||||
Net interest expense | 891 | — | — | (36 | ) | (14,816 | ) | (13,961 | ) | (7,744 | ) | — | (21,705 | ) | ||||||||||||||||||||||
Total revenues | 320,103 | 68,973 | 14,361 | 76,347 | 29,190 | 508,974 | (7,744 | ) | 6,433 | 507,663 | ||||||||||||||||||||||||||
Total expenses | 224,246 | 23,693 | 13,391 | 62,970 | 24,406 | 348,706 | 18,683 | 5,955 | 373,344 | |||||||||||||||||||||||||||
Other, net | — | 34 | 149 | 2 | 895 | 1,080 | (9,464 | ) | (478 | ) | (8,862 | ) | ||||||||||||||||||||||||
Net income (loss) before taxes | $ | 95,857 | $ | 45,314 | $ | 1,119 | $ | 13,379 | $ | 5,679 | $ | 161,348 | $ | (35,891 | ) | $ | — | $ | 125,457 | |||||||||||||||||
Depreciation and amortization | $ | 1,423 | $ | 151 | $ | 125 | $ | 1,268 | $ | 146 | $ | 3,113 | $ | 371 | $ | — | $ | 3,484 | ||||||||||||||||||
Total assets | 2,425,529 | 35,861 | 82,375 | 125,317 | 17,378,088 | 20,047,170 | 379,562 | (326,313 | ) | 20,100,419 |
For the three months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Management | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | $ | 407,248 | $ | — | $ | — | $ | 0 | $ | 706 | $ | 407,954 | $ | — | $ | (28 | ) | $ | 407,926 | |||||||||||||||||
Net fair value gains | — | 48,251 | 1,357 | 0 | 46,261 | 95,869 | — | 86 | 95,955 | |||||||||||||||||||||||||||
Fee income | 36,080 | 366 | 3,369 | 53,249 | 10,965 | 104,029 | 2,471 | 12,875 | 119,375 | |||||||||||||||||||||||||||
Net interest expense | 451 | — | — | (48 | ) | (15,999 | ) | (15,596 | ) | (385 | ) | (17 | ) | (15,998 | ) | |||||||||||||||||||||
Total revenues | 443,779 | 48,617 | 4,726 | 53,201 | 41,933 | 592,256 | 2,086 | 12,916 | 607,258 | |||||||||||||||||||||||||||
Total expenses | 239,847 | 24,634 | 7,064 | 45,304 | 22,989 | 339,838 | 9,615 | 12,916 | 362,369 | |||||||||||||||||||||||||||
Other, net | — | — | — | — | — | — | (2,470 | ) | — | (2,470 | ) | |||||||||||||||||||||||||
Net income (loss) before taxes | $ | 203,932 | $ | 23,983 | $ | (2,338 | ) | $ | 7,897 | $ | 18,944 | $ | 252,418 | $ | (9,999 | ) | $ | — | $ | 242,419 | ||||||||||||||||
Depreciation and amortization | $ | 1,440 | $ | 269 | $ | 143 | $ | 1,067 | $ | 12 | $ | 2,931 | $ | 436 | $ | — | $ | 3,367 | ||||||||||||||||||
Total assets | 2,170,342 | 15,163 | 57,432 | 103,755 | 16,639,324 | 18,986,016 | 351,841 | (315,842 | ) | 19,022,015 |
For the three months ended March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Management | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 111,921 | $ | — | $ | — | $ | 210 | $ | 10,928 | $ | 123,059 | $ | — | $ | (4,707 | ) | $ | 118,352 | |||||||||||||||||||||||||
Net fair value gains on loans and related obligations | 0 | 105,755 | 3,475 | 0 | (102,785 | ) | 6,445 | — | 3,990 | 10,435 | ||||||||||||||||||||||||||||||||||
Fee income | 20,149 | 1,816 | 17,158 | 76,152 | 54,525 | 169,800 | 0 | (12,196 | ) | 157,604 | ||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | 12,572 | — | — | 160 | 1,047 | 13,779 | 94 | — | 13,873 | |||||||||||||||||||||||||||||||||||
Interest expense | (9,371 | ) | — | — | (33 | ) | (16,723 | ) | (26,127 | ) | (6,703 | ) | — | (32,830 | ) | |||||||||||||||||||||||||||||
Net interest income (expense) | 3,201 | — | — | 127 | (15,676 | ) | (12,348 | ) | (6,609 | ) | — | (18,957 | ) | |||||||||||||||||||||||||||||||
Total revenue | 135,271 | 107,571 | 20,633 | 76,489 | (53,008 | ) | 286,956 | (6,609 | ) | (12,913 | ) | 267,434 | ||||||||||||||||||||||||||||||||
Total expenses | 156,783 | 43,179 | 23,087 | 70,756 | 34,711 | 328,516 | 34,038 | (13,018 | ) | 349,536 | ||||||||||||||||||||||||||||||||||
Other, net | — | 3,214 | 124 | 1,664 | 27 | 5,029 | (152 | ) | (105 | ) | 4,772 | |||||||||||||||||||||||||||||||||
Net (loss) income before taxes | $ | (21,512 | ) | $ | 67,606 | $ | (2,330 | ) | $ | 7,397 | $ | (87,692 | ) | $ | (36,531 | ) | $ | (40,799 | ) | $ | — | $ | (77,330 | ) | ||||||||||||||||||||
Depreciation and amortization | $ | 2,820 | $ | 9,598 | $ | 514 | $ | 3,112 | $ | 91 | $ | 16,135 | $ | 509 | $ | 0 | $ | 16,644 | ||||||||||||||||||||||||||
Total assets | 1,761,388 | 416,127 | 26,752 | 224,673 | 19,628,648 | 22,057,588 | 1,755,154 | (1,734,835 | ) | 22,077,907 |
For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Management | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | $ | 832,872 | $ | — | $ | — | $ | 0 | $ | 6,323 | 839,195 | $ | — | $ | (2,294 | ) | $ | 836,901 | ||||||||||||||||||
Net fair value gains | — | 137,529 | 9,939 | 0 | 72,142 | 219,610 | — | 2,028 | 221,638 | |||||||||||||||||||||||||||
Fee income | 90,402 | 1,478 | 14,555 | 138,819 | 13,357 | 258,611 | 2,514 | 4,877 | 266,002 | |||||||||||||||||||||||||||
Net interest expense | 1,715 | — | — | (81 | ) | (60,480 | ) | (58,846 | ) | (4,605 | ) | (99 | ) | (63,550 | ) | |||||||||||||||||||||
Total revenues | 924,989 | 139,007 | 24,494 | 138,738 | 31,342 | 1,258,570 | (2,091 | ) | 4,512 | 1,260,991 | ||||||||||||||||||||||||||
Total expenses | 593,996 | 65,374 | 29,506 | 123,453 | 61,735 | 874,064 | 32,837 | 4,512 | 911,413 | |||||||||||||||||||||||||||
Other, net | — | — | — | — | — | — | (2,514 | ) | — | (2,514 | ) | |||||||||||||||||||||||||
Net income (loss) before taxes | $ | 330,993 | $ | 73,633 | $ | (5,012 | ) | $ | 15,285 | $ | (30,393 | ) | $ | 384,506 | $ | (37,442 | ) | $ | — | $ | 347,064 | |||||||||||||||
Depreciation and amortization | $ | 4,527 | $ | 724 | $ | 449 | $ | 3,172 | $ | 35 | 8,907 | $ | 1,417 | $ | — | $ | 10,324 | |||||||||||||||||||
Total assets | 2,170,342 | 15,163 | 57,432 | 103,755 | 16,639,324 | 18,986,016 | 351,841 | (315,842 | ) | $ | 19,022,015 |
January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||||||||||||||||||||||
Mortgage Originations | Reverse Originations | Commercial Originations | Lender Services | Portfolio Management | Total Operating Segments | Corporate and Other | Elim | Total | ||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 286,481 | $ | — | $ | — | $ | 0 | $ | 5,065 | $ | 291,546 | $ | — | $ | (212 | ) | $ | 291,334 | |||||||||||||||||||||||||
Net fair value gains on loans and related obligations | 0 | 68,449 | 5,431 | 0 | 2,750 | 76,630 | — | 33 | 76,663 | |||||||||||||||||||||||||||||||||||
Fee income | 32,731 | 524 | 8,930 | 76,383 | 36,191 | 154,759 | 0 | 6,612 | 161,371 | |||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||
Interest income | 12,483 | — | — | 28 | 138 | 12,649 | 12 | — | 12,661 | |||||||||||||||||||||||||||||||||||
Interest expense | (11,592 | ) | — | — | (64 | ) | (14,954 | ) | (26,610 | ) | (7,756 | ) | — | (34,366 | ) | |||||||||||||||||||||||||||||
Net interest income (expense) | 891 | — | — | (36 | ) | (14,816 | ) | (13,961 | ) | (7,744 | ) | — | (21,705 | ) | ||||||||||||||||||||||||||||||
Total revenue | 320,103 | 68,973 | 14,361 | 76,347 | 29,190 | 508,974 | (7,744 | ) | 6,433 | 507,663 | ||||||||||||||||||||||||||||||||||
Total expenses | 224,246 | 23,693 | 13,391 | 62,970 | 24,406 | 348,706 | 18,683 | 5,925 | 373,314 | |||||||||||||||||||||||||||||||||||
Other, net | — | 34 | 149 | 2 | 895 | 1,080 | (9,464 | ) | (508 | ) | (8,892 | ) | ||||||||||||||||||||||||||||||||
Net income (loss) before taxes | $ | 95,857 | $ | 45,314 | $ | 1,119 | $ | 13,379 | $ | 5,679 | $ | 161,348 | $ | (35,891 | ) | $ | — | $ | 125,457 | |||||||||||||||||||||||||
Depreciation and amortization | $ | 1,423 | $ | 151 | $ | 125 | $ | 1,268 | $ | 146 | $ | 3,113 | $ | 371 | $ | 0 | $ | 3,484 | ||||||||||||||||||||||||||
Total assets | 2,425,529 | 35,861 | 82,375 | 125,317 | 17,378,088 | 20,047,170 | 379,562 | (326,313 | ) | 20,100,419 |
Liquidity and Capital Requirements |
Related Party Transactions |
Income Taxes |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Net income before income taxes | $ | 54,550 | $ | 40,812 | $ | 125,457 | $ | 242,419 | $ | 347,064 | $ | (77,330 | ) | $ | 125,457 | |||||||||||||||||
Provision for income taxes | 4,440 | 5,526 | 1,137 | 808 | 1,574 | (13,335 | ) | 1,137 | ||||||||||||||||||||||||
Effective tax provision rate | 8.14 | % | 13.54 | % | 0.91 | % | 0.33 | % | 0.45 | % | 17.24 | % | 0.91 | % |
26. Earnings Per Share |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | |||||||
Successor | ||||||||
Basic net income per share: | ||||||||
Numerator | ||||||||
Net income | $ | 50,110 | $ | 35,286 | ||||
Less: income attributable to noncontrolling interests (1) | 28,726 | 11,637 | ||||||
Net income attributable to holders of Class A Common Stock - basic | $ | 21,384 | $ | 23,649 | ||||
Denominator | ||||||||
Weighted average shares of Class A Common Stock outstanding - basic | 59,861,171 | 59,871,386 | ||||||
Basic net income per share | $ | 0.36 | $ | 0.39 | ||||
For the three months ended March 31, 2022 | ||||
Successor | ||||
Basic net loss per share: | ||||
Numerator | ||||
Net loss | $ | (63,995 | ) | |
Less: loss attributable to noncontrolling interests (1) | (55,502 | ) | ||
Net loss attributable to holders of Class A Common Stock - basic | $ | (8,493 | ) | |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding - basic | 60,773,891 | |||
Basic net loss per share | $ | (0.14 | ) | |
(1) | The Class A LLC Units of FoA Equity, held by the Continuing Unitholders, which comprise the noncontrolling interest in |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | |||||||
Successor | ||||||||
Diluted net income per share: | ||||||||
Numerator | ||||||||
Net income attributable to holders of Class A Common Stock | $ | 21,384 | $ | 23,649 | ||||
Reallocation of net income assuming exchange of Class A LLC Units (2) | 21,475 | 9,476 | ||||||
Net income attributable to holders of Class A Common Stock - diluted | $ | 42,859 | $ | 33,125 | ||||
Denominator | ||||||||
Weighted average shares of Class A Common Stock outstanding - | 59,861,171 | 59,871,386 | ||||||
Effect of dilutive securities: | ||||||||
Assumed exchange of Class A LLC Units for shares of Class A Common Stock (3) | 131,300,259 | 131,309,223 | ||||||
Weighted average shares of Class A Common Stock outstanding - diluted | 191,161,430 | 191,180,609 | ||||||
Diluted net income per share | $ | 0.22 | $ | 0.17 | ||||
For the three months ended March 31, 2022 | ||||
Successor | ||||
Diluted net loss per share: | ||||
Numerator | ||||
Net loss attributable to holders of Class A Common Stock | $ | (8,493 | ) | |
Reallocation of net loss assuming exchange of Class A LLC Units (1) | (48,753 | ) | ||
Net loss attributable to holders of Class A Common Stock - diluted | $ | (57,246 | ) | |
Denominator | ||||
Weighted average shares of Class A Common Stock outstanding - basic | 60,773,891 | |||
Effect of dilutive securities: | ||||
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) | 128,675,045 | |||
Weighted average shares of Class A Common Stock outstanding - diluted | 189,448,936 | |||
Diluted net loss per share | $ | (0.30 | ) | |
(1) | This adjustment assumes the after-tax elimination of noncontrolling interest due to the assumed exchange of all Class A LLC Units outstanding for shares of Class A Common Stock in FoA as of the beginning of the period following theif-converted method for calculating diluted net income (loss) per share. |
(2) | The diluted weighted average shares outstanding of Class A Common Stock includes the effects of the if-converted method to reflect the provisions of the Exchange Agreement and one-for-one |
27. | Equity |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | $ | 210,095 | $ | 397,672 | $ | 291,334 | $ | 407,926 | $ | 836,901 | ||||||||||||||||||||||
Net fair value gains on mortgage loans and related obligations | 122,509 | 253,660 | 76,663 | 95,955 | 221,638 | |||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 118,352 | $ | 291,334 | ||||||||||||||||||||||||||||
Net fair value gains on loans and related obligations | 10,435 | 76,663 | ||||||||||||||||||||||||||||||
Fee income | 145,725 | 236,589 | 161,371 | 119,375 | 266,002 | 157,604 | 161,371 | |||||||||||||||||||||||||
Net interest expense | (21,829 | ) | (42,304 | ) | (21,705 | ) | (15,998 | ) | (63,550 | ) | (18,957 | ) | (21,705 | ) | ||||||||||||||||||
Total revenue | 456,500 | 845,617 | 507,663 | 607,258 | 1,260,991 | 267,434 | 507,663 | |||||||||||||||||||||||||
Total expenses | 411,878 | 812,630 | 373,344 | 362,369 | 911,413 | 349,536 | 373,314 | |||||||||||||||||||||||||
Other, net | 9,928 | 7,825 | (8,862 | ) | (2,470 | ) | (2,514 | ) | 4,772 | (8,892 | ) | |||||||||||||||||||||
NET INCOME BEFORE TAXES | $ | 54,550 | $ | 40,812 | $ | 125,457 | $ | 242,419 | $ | 347,064 | ||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (77,330 | ) | $ | 125,457 | |||||||||||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Interest income on loans | $ | 160,683 | $ | 334,623 | $ | 160,568 | $ | 150,276 | $ | 492,066 | ||||||||||
Change in fair value of loans | (119,690 | ) | (34,707 | ) | (51,346 | ) | 160,480 | 302,541 | ||||||||||||
Change in fair value of mortgage-backed securities | — | — | — | 1,621 | 2,438 | |||||||||||||||
Fair value gains on mortgage loans | 40,993 | 299,916 | 109,222 | 312,377 | 797,045 | |||||||||||||||
Interest expense on related obligations | (107,593 | ) | (221,067 | ) | (119,201 | ) | (121,777 | ) | (383,622 | ) | ||||||||||
Change in fair value of derivatives | 6,841 | (39,637 | ) | 43,972 | 149 | (5,594 | ) | |||||||||||||
Change in fair value of related obligations | 182,268 | 214,448 | 42,670 | (94,794 | ) | (186,191 | ) | |||||||||||||
Fair value losses on related obligations | 81,516 | (46,256 | ) | (32,559 | ) | (216,422 | ) | (575,407 | ) | |||||||||||
Net fair value gains on mortgage loans and related obligations | $ | 122,509 | $ | 253,660 | $ | 76,663 | $ | 95,955 | $ | 221,638 | ||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Interest income on commercial and reverse loans | $ | 160,683 | $ | 334,623 | $ | 160,568 | $ | 150,276 | $ | 492,066 | ||||||||||
Interest expense on HMBS and nonrecourse obligations | (107,593 | ) | (221,067 | ) | (119,201 | ) | (121,777 | ) | (383,622 | ) | ||||||||||
Net interest margin included in net fair value gains on mortgage loans (1) | 53,090 | 113,556 | 41,367 | 28,499 | 108,444 | |||||||||||||||
Interest income on mortgage loans held for sale | 15,742 | 28,766 | 12,621 | 10,408 | 29,969 | |||||||||||||||
Interest expense on warehouse lines of credit | (30,735 | ) | (57,643 | ) | (26,546 | ) | (25,973 | ) | (88,837 | ) | ||||||||||
Non-funding debt interest expense | (6,842 | ) | (13,486 | ) | (7,756 | ) | (385 | ) | (4,605 | ) | ||||||||||
Other interest income | 120 | 246 | 40 | 27 | 144 | |||||||||||||||
Other interest expense | (114 | ) | (187 | ) | (64 | ) | (75 | ) | (221 | ) | ||||||||||
Net interest expense | (21,829 | ) | (42,304 | ) | (21,705 | ) | (15,998 | ) | (63,550 | ) | ||||||||||
NET INTEREST MARGIN | $ | 31,261 | $ | 71,252 | $ | 19,662 | $ | 12,501 | $ | 44,894 | ||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Net origination gains | $ | 109,230 | $ | 73,880 | ||||||||
Net fair value gains from portfolio activity (1) | 38,868 | 32,386 | ||||||||||
Net fair value gains (losses) from changes in market inputs or model assumptions | (137,663 | ) | (29,603 | ) | ||||||||
Net fair value gains on loans and related obligations | $ | 10,435 | $ | 76,663 | ||||||||
(1) | This line item includes realization of interest income and interest expense related to loans held for investment and securitization trusts, runoff and portfolio amortization |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Interest income on commercial and reverse loans | $ | 163,694 | $ | 160,568 | ||||||||
Interest expense on HMBS and nonrecourse obligations | (106,643 | ) | (119,201 | ) | ||||||||
Net interest margin included in net fair value gains on mortgage loans (1) | 57,051 | 41,367 | ||||||||||
Interest income on mortgage loans held for sale | 12,946 | 12,621 | ||||||||||
Interest expense on warehouse lines of credit | (26,065 | ) | (26,546 | ) | ||||||||
Non-funding debt interest expense | (6,703 | ) | (7,756 | ) | ||||||||
Other interest income | 927 | 40 | ||||||||||
Other interest expense | (62 | ) | (64 | ) | ||||||||
Net interest expense | (18,957 | ) | (21,705 | ) | ||||||||
NET INTEREST MARGIN | $ | 38,094 | $ | 19,662 | ||||||||
(1) | Net interest margin included in fair value gains on mortgage loans includes interest income and expense on all commercial and reverse loans and their related nonrecourse obligations. Interest income on mortgage loans and warehouse lines of credit are classified in net interest expense. See Note 2 - Summary of Significant Accounting Policies within the consolidated financial statements in the Company’s Annual Report on Form 10-K filed with the SEC on March 15, 2022 for additional information on the Company’s accounting related to commercial and reverse mortgage loans. |
Total expenses decreased $23.8 million or 6.4% due to lower salaries, benefits and related expenses partially offset by increased general and administrative expenses. Salaries, benefits and related expenses decreased by $29.5 or 12.3% primarily as a result of our lower loan origination volumes during the three months ended March 31, 2022, partially offset by increases related to the Business Combination. |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | $ | 200,294 | $ | 385,680 | $ | 286,481 | $ | 407,248 | $ | 832,872 | ||||||||||
Net fair value gains on mortgage loans | 1,145 | 1,145 | — | — | — | |||||||||||||||
Fee income | 30,827 | 61,172 | 32,731 | 36,080 | 90,402 | |||||||||||||||
Net interest income | 2,807 | 4,783 | 891 | 451 | 1,715 | |||||||||||||||
Total revenue | 235,073 | 452,780 | 320,103 | 443,779 | 924,989 | |||||||||||||||
Total expenses | 220,331 | 444,522 | 224,246 | 239,847 | 593,996 | |||||||||||||||
NET INCOME BEFORE TAXES | $ | 14,742 | $ | 8,258 | $ | 95,857 | $ | 203,932 | $ | 330,993 | ||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Gain on sale and other income from loans held for sale, net | $ | 111,921 | $ | 286,481 | ||||||||
Fee income | 20,149 | 32,731 | ||||||||||
Net interest income (expense) | 3,201 | 891 | ||||||||||
Total revenue | 135,271 | 320,103 | ||||||||||
Total expenses | 156,783 | 224,246 | ||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (21,512 | ) | $ | 95,857 | |||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Loan origination volume (dollars) | ||||||||||||||||||||||||||||||||
Conforming | $ | 4,698,538 | $ | 9,000,708 | $ | 5,397,708 | $ | 5,773,072 | $ | 13,749,364 | $ | 3,330,465 | $ | 5,397,708 | ||||||||||||||||||
Government | 987,074 | 1,982,731 | 1,068,650 | 1,204,360 | 3,237,231 | 705,299 | 1,068,650 | |||||||||||||||||||||||||
Non-conforming | 1,632,513 | 3,204,408 | 1,937,860 | 1,476,952 | 3,270,125 | 1,022,591 | 1,937,860 | |||||||||||||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | 47,903 | — | |||||||||||||||||||||||||
Total loan origination volume | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | $ | 5,106,258 | $ | 8,404,218 | ||||||||||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||||||||||||||
Agency | $ | 6,324,230 | $ | 12,398,694 | $ | 7,367,044 | 8,160,931 | $ | 19,465,514 | $ | 3,939,695 | $ | 7,367,044 | |||||||||||||||||||
Non-agency | 993,895 | 1,789,153 | 1,037,174 | 293,453 | 791,206 | 1,118,660 | 1,037,174 | |||||||||||||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | 47,903 | — | |||||||||||||||||||||||||
Total loan origination volume by type | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | $ | 5,106,258 | $ | 8,404,218 | ||||||||||||||||||
Loan origination volume by channel (dollars) | ||||||||||||||||||||||||||||||||
Retail | $ | 4,838,128 | $ | 9,708,682 | $ | 5,622,487 | 6,207,165 | $ | 15,191,608 | $ | 2,933,566 | $ | 5,622,487 | |||||||||||||||||||
Wholesale/Correspondent | 1,786,304 | 2,987,807 | 1,706,365 | 1,303,448 | 2,882,650 | 1,657,307 | 1,706,365 | |||||||||||||||||||||||||
Consumer direct | 693,693 | 1,491,358 | 1,075,366 | 943,771 | 2,182,462 | 467,482 | 1,075,366 | |||||||||||||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | 47,903 | — | |||||||||||||||||||||||||
Total loan origination volume by channel | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | $ | 5,106,258 | $ | 8,404,218 | ||||||||||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||||||||||||||
Purchase | $ | 3,759,059 | $ | 7,253,521 | 2,664,493 | 3,022,815 | 6,780,670 | $ | 2,766,119 | $ | 2,664,493 | |||||||||||||||||||||
Refinance | 3,559,066 | 6,934,326 | 5,739,725 | 5,431,569 | 13,476,050 | 2,292,236 | 5,739,725 | |||||||||||||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | 47,903 | — | |||||||||||||||||||||||||
Total loan origination volume by type | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | $ | 5,106,258 | $ | 8,404,218 | ||||||||||||||||||
Loan origination volume (units) | ||||||||||||||||||||||||||||||||
Conforming | 14,522 | 28,658 | 18,090 | 19,294 | 46,570 | 9,242 | 18,090 | |||||||||||||||||||||||||
Government | 3,041 | 6,182 | 3,426 | 4,106 | 11,120 | 2,117 | 3,426 | |||||||||||||||||||||||||
Non-conforming | 2,032 | 4,004 | 2,472 | 2,170 | 4,818 | 1,102 | 2,472 | |||||||||||||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | 4,007 | — | |||||||||||||||||||||||||
Total loan origination volume | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 | 16,468 | 23,988 | |||||||||||||||||||||||||
Loan origination volume by type (units) | ||||||||||||||||||||||||||||||||
Agency | 18,400 | 36,678 | 22,763 | 25,113 | 61,296 | 11,002 | 22,763 | |||||||||||||||||||||||||
Non-agency | 1,195 | 2,166 | 1,225 | 457 | 1,212 | 1,459 | 1,225 | |||||||||||||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | 4,007 | — | |||||||||||||||||||||||||
Total loan origination volume by type | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 | 16,468 | 23,988 | |||||||||||||||||||||||||
Loan origination volume by channel (units) |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Loan origination volume by channel (units) | ||||||||||||||||||||
Retail | 13,353 | 27,090 | 16,123 | 19,064 | 47,998 | |||||||||||||||
Wholesale/Correspondent | 4,210 | 7,215 | 4,745 | 3,940 | 8,396 | |||||||||||||||
Consumer direct | 2,032 | 4,539 | 3,120 | 2,566 | 6,114 | |||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | |||||||||||||||
Total loan origination volume by channel | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 | |||||||||||||||
Loan origination volume by type (units) | ||||||||||||||||||||
Purchase | 9,801 | 19,129 | 7,534 | 9,325 | 22,286 | |||||||||||||||
Refinance | 9,794 | 19,715 | 16,454 | 16,245 | 40,222 | |||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | |||||||||||||||
Total loan origination volume by type | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 | |||||||||||||||
Loan sales by investor (dollars) | ||||||||||||||||||||
Agency | $ | 5,733,609 | $ | 11,541,450 | $ | 7,246,418 | $ | 7,818,882 | $ | 18,026,245 | ||||||||||
Private | 1,574,710 | 2,787,028 | 1,152,810 | 256,456 | 1,447,680 | |||||||||||||||
Total loan sales by investor | $ | 7,308,319 | $ | 14,328,478 | $ | 8,399,228 | $ | 8,075,338 | $ | 19,473,925 | ||||||||||
Loan sales by type (dollars) | ||||||||||||||||||||
Servicing released | $ | 3,313,801 | $ | 5,497,385 | $ | 2,086,550 | $ | 760,215 | $ | 5,168,265 | ||||||||||
Servicing retained | 3,994,518 | 8,831,093 | 6,312,678 | 7,315,123 | 14,305,660 | |||||||||||||||
Total loan sales by type | $ | 7,308,319 | $ | 14,328,478 | $ | 8,399,228 | $ | 8,075,338 | $ | 19,473,925 | ||||||||||
Net rate lock volume | $ | 7,679,106 | $ | 14,347,929 | $ | 8,405,313 | $ | 9,285,616 | 22,302,731 | |||||||||||
Mortgage originations margin (including servicing margin) (1) | 2.61 | % | 2.69 | % | 3.41 | % | 4.39 | % | 3.73 | % | ||||||||||
Capitalized servicing rate (in bps) | 102.6 | 103.1 | 89.1 | 73.1 | 68.7 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Retail | 7,824 | 16,123 | ||||||||||
Wholesale/Correspondent | 3,339 | 4,745 | ||||||||||
Consumer direct | 1,298 | 3,120 | ||||||||||
Home improvement | 4,007 | — | ||||||||||
Total loan origination volume by channel | 16,468 | 23,988 | ||||||||||
Loan origination volume by type (units) | ||||||||||||
Purchase | 6,725 | 7,534 | ||||||||||
Refinance | 5,736 | 16,454 | ||||||||||
Home improvement | 4,007 | — | ||||||||||
Total loan origination volume by type | 16,468 | 23,988 | ||||||||||
Loan sales by investor (dollars) | ||||||||||||
Agency | $ | 4,262,735 | $ | 7,246,418 | ||||||||
Private | 1,130,284 | 1,152,810 | ||||||||||
Total loan sales by investor | $ | 5,393,019 | $ | 8,399,228 | ||||||||
Loan sales by type (dollars) | ||||||||||||
Servicing released | $ | 1,482,935 | $ | 2,086,550 | ||||||||
Servicing retained | 3,910,084 | 6,312,678 | ||||||||||
Total loan sales by type | $ | 5,393,019 | $ | 8,399,228 | ||||||||
Net rate lock volume | $ | 5,316,742 | $ | 8,405,313 | ||||||||
Mortgage originations margin (including servicing margin) (1) | 2.11 | % | 3.41 | % | ||||||||
Capitalized servicing rate (in bps) | 125.7 | 89.1 |
(1) | Calculated for each period as Gain on sale and other income from |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Gain on sale, net | $ | 221,680 | $ | 390,501 | $ | 200,874 | $ | 396,346 | $ | 853,204 | $ | 66,160 | $ | 200,874 | ||||||||||||||||||
Provision for repurchases | (1,970 | ) | (3,783 | ) | (2,258 | ) | (4,277 | ) | (16,256 | ) | (1,631 | ) | (2,258 | ) | ||||||||||||||||||
Realized hedge gains (losses) | (22,982 | ) | (39,995 | ) | 74,823 | (33,796 | ) | (141,280 | ) | |||||||||||||||||||||||
Realized hedge gains | 81,108 | 74,823 | ||||||||||||||||||||||||||||||
Changes in fair value of loans held for sale | (5,561 | ) | 6,041 | (41,485 | ) | 11,538 | 44,948 | (41,772 | ) | (41,485 | ) | |||||||||||||||||||||
Changes in fair value of interest rate locks | (5,472 | ) | (8,456 | ) | (49,946 | ) | 34,937 | 98,988 | (20,486 | ) | (49,946 | ) | ||||||||||||||||||||
Changes in fair value of derivatives/hedges | 14,599 | 41,372 | 104,473 | 2,500 | (6,732 | ) | 28,542 | 104,473 | ||||||||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | 200,294 | 385,680 | 286,481 | 407,248 | 832,872 | |||||||||||||||||||||||||||
Net fair value gains on mortgage loans | 1,145 | 1,145 | — | — | — | |||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | 111,921 | 286,481 | ||||||||||||||||||||||||||||||
Origination related fee income | 30,827 | 61,172 | 32,731 | 36,080 | 90,402 | 20,149 | 32,731 | |||||||||||||||||||||||||
Net interest income | 2,807 | 4,783 | 891 | 451 | 1,715 | 3,201 | 891 | |||||||||||||||||||||||||
Total revenue | $ | 235,073 | $ | 452,780 | $ | 320,103 | $ | 443,779 | $ | 924,989 | $ | 135,271 | $ | 320,103 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Interest income | $ | 15,363 | $ | 28,200 | $ | 12,483 | $ | 10,273 | $ | 29,351 | $ | 12,572 | $ | 12,483 | ||||||||||||||||||
Interest expense | (12,556 | ) | (23,417 | ) | (11,592 | ) | (9,822 | ) | (27,636 | ) | (9,371 | ) | (11,592 | ) | ||||||||||||||||||
Net interest income | $ | 2,807 | $ | 4,783 | $ | 891 | $ | 451 | $ | 1,715 | ||||||||||||||||||||||
Net interest income (expense) | $ | 3,201 | $ | 891 | ||||||||||||||||||||||||||||
WAC - loans held for sale | 3.0 | % | 3.0 | % | 2.9 | % | 3.0 | % | 3.0 | % | 4.0 | % | 2.9 | % | ||||||||||||||||||
WAC - warehouse lines of credit | 3.3 | % | 3.1 | % | 3.0 | % | 3.3 | % | 3.0 | % | 3.6 | % | 3.0 | % |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Commissions and bonus | $ | 106,316 | $ | 209,916 | $ | 111,766 | $ | 140,122 | $ | 325,366 | ||||||||||||||||||||||
Commissions and bonuses | $ | 47,828 | $ | 111,766 | ||||||||||||||||||||||||||||
Salaries | 48,565 | 104,121 | 46,232 | 41,896 | 108,719 | 44,156 | 46,232 | |||||||||||||||||||||||||
Other salary related expenses | 11,073 | 24,225 | 18,451 | 12,052 | 37,857 | 20,812 | 18,451 | |||||||||||||||||||||||||
Total salaries, benefits and related expenses | 165,954 | 338,262 | 176,449 | 194,070 | 471,942 | 112,796 | 176,449 | |||||||||||||||||||||||||
Loan origination fees | 17,539 | 32,320 | 14,003 | 13,375 | 34,362 | 10,188 | 14,003 | |||||||||||||||||||||||||
Loan processing expenses | 5,119 | 10,544 | 5,462 | 2,408 | 7,008 | 4,009 | 5,462 | |||||||||||||||||||||||||
Other general and administrative expenses | 26,918 | 54,506 | 23,112 | 23,936 | 63,974 | 25,180 | 23,112 | |||||||||||||||||||||||||
Total general and administrative expenses | 49,576 | 97,370 | 42,577 | 39,719 | 105,344 | 39,377 | 42,577 | |||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 4,801 | 8,890 | 5,220 | 6,058 | 16,710 | 4,610 | 5,220 | |||||||||||||||||||||||||
Total expenses | $ | 220,331 | $ | 444,522 | $ | 224,246 | $ | 239,847 | $ | 593,996 | $ | 156,783 | $ | 224,246 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Net origination gains | $ | 109,408 | $ | 203,944 | $ | 68,449 | $ | 48,251 | $ | 137,529 | 105,755 | $ | 68,449 | |||||||||||||||||||
Fee income | 1,022 | 1,976 | 524 | 366 | 1,478 | 1,816 | 524 | |||||||||||||||||||||||||
Net interest expense | — | (9 | ) | — | — | — | ||||||||||||||||||||||||||
Total revenue | 110,430 | 205,911 | 68,973 | 48,617 | 139,007 | 107,571 | 68,973 | |||||||||||||||||||||||||
Total expenses | 41,354 | 83,600 | 23,693 | 24,634 | 65,374 | 43,179 | 23,693 | |||||||||||||||||||||||||
Other, net | 221 | 325 | 34 | — | — | $ | 3,214 | 34 | ||||||||||||||||||||||||
NET INCOME BEFORE TAXES | $ | 69,297 | $ | 122,636 | $ | 45,314 | $ | 23,983 | $ | 73,633 | ||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | 67,606 | $ | 45,314 | ||||||||||||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Loan origination volume | ||||||||||||||||||||
Total loan origination volume - New originations - dollars (1) | $ | 1,157,212 | $ | 2,170,535 | $ | 768,795 | $ | 626,706 | $ | 2,052,332 | ||||||||||
Total loan origination volume - Tails - dollars (2) | 135,164 | 257,126 | 120,775 | 116,131 | 352,295 | |||||||||||||||
Total loan origination volume - dollars | $ | 1,292,376 | $ | 2,427,661 | $ | 889,570 | $ | 742,837 | $ | 2,404,627 | ||||||||||
Total loan origination volume - units | 3,382 | 6,640 | 2,864 | 2,347 | 7,104 | |||||||||||||||
Loan origination volume by channel (dollars) (3) | ||||||||||||||||||||
Retail | $ | 195,797 | $ | 368,769 | $ | 127,679 | $ | 105,307 | $ | 278,997 | ||||||||||
TPO | 961,415 | 1,801,766 | 641,116 | 521,399 | 1,773,335 | |||||||||||||||
Total loan origination volume by channel | $ | 1,157,212 | $ | 2,170,535 | $ | 768,795 | $ | 626,706 | $ | 2,052,332 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Loan origination volume | ||||||||||||
Total loan origination volume - new originations (1) | $ | 1,474,537 | $ | 768,795 | ||||||||
Total loan origination volume - tails (2) | 157,293 | 120,775 | ||||||||||
Total loan origination volume | $ | 1,631,830 | $ | 889,570 | ||||||||
Total loan origination volume - units | 4,374 | 2,864 | ||||||||||
Loan origination volume - new originations by channel (3) | ||||||||||||
Retail | $ | 206,198 | $ | 127,679 | ||||||||
TPO | 1,268,339 | 641,116 | ||||||||||
Total loan origination volume - new originations by channel | $ | 1,474,537 | $ | 768,795 | ||||||||
(1) | New loan origination volumes consist of initial reverse mortgage loan borrowing amounts. |
(2) | Tails consist of subsequent borrower draws, mortgage insurance premiums, service fees and other advances |
(3) | Loan origination volumes by channel consist of initial reverse mortgage loan borrowing amounts, exclusive of subsequent borrower draws, mortgage insurance premiums, service fees and other advances that we are able to subsequently pool into a security. |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Net origination gains | ||||||||||||||||||||||||||||||||
Net origination gains: | ||||||||||||||||||||||||||||||||
Retail | $ | 30,061 | $ | 47,281 | $ | 16,913 | $ | 13,168 | $ | 28,887 | $ | 19,311 | $ | 16,913 | ||||||||||||||||||
TPO | 144,049 | 285,435 | 99,678 | 72,768 | 220,305 | 160,542 | 99,678 | |||||||||||||||||||||||||
Acquisition costs | (64,702 | ) | (128,772 | ) | (48,142 | ) | (37,685 | ) | (111,663 | ) | (74,098 | ) | (48,142 | ) | ||||||||||||||||||
Total net origination gains | 109,408 | 203,944 | 68,449 | 48,251 | 137,529 | 105,755 | 68,449 | |||||||||||||||||||||||||
Fee income | 1,022 | 1,976 | 524 | 366 | 1,478 | 1,816 | 524 | |||||||||||||||||||||||||
Net interest income | — | (9 | ) | — | — | — | ||||||||||||||||||||||||||
Total revenue | $ | 110,430 | $ | 205,911 | $ | 68,973 | $ | 48,617 | $ | 139,007 | $ | 107,571 | $ | 68,973 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Salaries and bonuses | $ | 18,761 | $ | 38,606 | $ | 11,692 | $ | 12,072 | $ | 32,368 | $ | 16,356 | $ | 11,692 | ||||||||||||||||||
Other salary related expenses | 1,605 | 3,613 | 1,395 | 898 | 3,240 | 6,030 | 1,395 | |||||||||||||||||||||||||
Total salaries, benefits and related expenses | 20,366 | 42,219 | 13,087 | 12,970 | 35,608 | 22,386 | 13,087 | |||||||||||||||||||||||||
Loan origination fees | 2,120 | 4,881 | 3,258 | 3,587 | 9,323 | 2,663 | 3,258 | |||||||||||||||||||||||||
Professional fees | 2,444 | 5,120 | 2,079 | 2,711 | 4,933 | 130 | 2,079 | |||||||||||||||||||||||||
Other general and administrative expenses | 15,954 | 30,445 | 4,958 | 4,920 | 14,286 | 17,543 | 4,958 | |||||||||||||||||||||||||
Total general and administrative expenses | 20,518 | 40,446 | 10,295 | 11,218 | 28,542 | 20,336 | 10,295 | |||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 470 | 935 | 311 | 446 | 1,224 | 457 | 311 | |||||||||||||||||||||||||
Total expenses | $ | 41,354 | $ | 83,600 | $ | 23,693 | $ | 24,634 | $ | 65,374 | $ | 43,179 | $ | 23,693 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Net origination gains | $ | 13,604 | $ | 24,425 | $ | 5,431 | $ | 1,357 | $ | 9,939 | $ | 3,475 | $ | 5,431 | ||||||||||||||||||
Fee income | 14,252 | 26,376 | 8,930 | 3,369 | 14,555 | 17,158 | 8,930 | |||||||||||||||||||||||||
Total revenue | 27,856 | 50,801 | 14,361 | 4,726 | 24,494 | 20,633 | 14,361 | |||||||||||||||||||||||||
Total expenses | 21,678 | 41,727 | 13,391 | 7,064 | 29,506 | 23,087 | 13,391 | |||||||||||||||||||||||||
Other, net | 133 | 273 | 149 | — | — | 124 | 149 | |||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | 6,311 | $ | 9,347 | $ | 1,119 | $ | (2,338 | ) | $ | (5,012 | ) | $ | (2,330 | ) | $ | 1,119 | |||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Loan origination volume (dollars) (1) | ||||||||||||||||||||||||||||||||
Portfolio | $ | 78,547 | $ | 148,574 | $ | 59,458 | $ | 9,244 | $ | 48,939 | $ | 114,001 | $ | 59,458 | ||||||||||||||||||
SRL | 197,864 | 368,306 | 104,992 | 11,144 | 100,331 | 268,173 | 104,992 | |||||||||||||||||||||||||
Fix & flip | 112,312 | 208,366 | 90,018 | 68,049 | 225,765 | 94,680 | 90,018 | |||||||||||||||||||||||||
New construction | 15,376 | 33,014 | 3,422 | — | 93,454 | 22,647 | 3,422 | |||||||||||||||||||||||||
Agricultural | 43,216 | 89,525 | 83,013 | 1,450 | 79,947 | |||||||||||||||||||||||||||
Agricultural (2) | 73,349 | 83,013 | ||||||||||||||||||||||||||||||
Total loan origination volume | $ | 447,315 | $ | 847,785 | $ | 340,903 | $ | 89,887 | $ | 548,436 | $ | 572,850 | $ | 340,903 | ||||||||||||||||||
Loan origination volume (units) (1) | ||||||||||||||||||||||||||||||||
Portfolio | 99 | 173 | 71 | 12 | 34 | 142 | 71 | |||||||||||||||||||||||||
SRL | 1,082 | 2,041 | 643 | 75 | 618 | 1,389 | 643 | |||||||||||||||||||||||||
Fix & flip | 472 | 917 | 430 | 318 | 1,070 | 430 | 430 | |||||||||||||||||||||||||
New construction | 53 | 109 | 13 | (1 | ) | 275 | 49 | 13 | ||||||||||||||||||||||||
Agricultural | 8 | 32 | 27 | 1 | 39 | |||||||||||||||||||||||||||
Agricultural (2) | 26 | 27 | ||||||||||||||||||||||||||||||
Total loan origination volume | 1,714 | 3,272 | 1,184 | 405 | 2,036 | 2,036 | 1,184 | |||||||||||||||||||||||||
(1) | Loan origination volume and units consist of approved total borrower commitments. These amounts include amounts available to our borrowers but have not yet been drawn upon. |
(2) | Revenue from origination and management of agricultural loans is recognized in our Portfolio Management segment. |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Net origination gains | $ | 13,604 | $ | 24,425 | $ | 5,431 | $ | 1,357 | $ | 9,939 | $ | 3,475 | $ | 5,431 | ||||||||||||||||||
Fee income | 14,252 | 26,376 | 8,930 | 3,369 | 14,555 | 17,158 | 8,930 | |||||||||||||||||||||||||
Total revenue | $ | 27,856 | $ | 50,801 | $ | 14,361 | $ | 4,726 | $ | 24,494 | $ | 20,633 | $ | 14,361 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Salaries | $ | 7,693 | $ | 15,336 | $ | 4,769 | $ | 1,914 | $ | 9,018 | $ | 6,632 | $ | 4,769 | ||||||||||||||||||
Commissions and bonus | 3,577 | 6,458 | 2,092 | 1,227 | 4,918 | 3,829 | 2,092 | |||||||||||||||||||||||||
Other salary related expenses | 1,064 | 2,044 | 797 | 424 | 1,823 | 3,029 | 797 | |||||||||||||||||||||||||
Total salaries, benefits and related expenses | 12,334 | 23,838 | 7,658 | 3,565 | 15,759 | 13,490 | 7,658 | |||||||||||||||||||||||||
Loan origination fees | 5,216 | 10,155 | 3,140 | 2,306 | 7,618 | 5,482 | 3,140 | |||||||||||||||||||||||||
Professional fees | 1,148 | 2,480 | 891 | 683 | 3,097 | 928 | 891 | |||||||||||||||||||||||||
Other general and administrative expenses | 2,636 | 4,607 | 1,164 | 430 | 2,620 | 2,818 | 1,164 | |||||||||||||||||||||||||
Total general and administrative expenses | 9,000 | 17,242 | 5,195 | 3,419 | 13,335 | 9,228 | 5,195 | |||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 344 | 647 | 538 | 80 | 412 | 369 | 538 | |||||||||||||||||||||||||
Total expenses | $ | 21,678 | $ | 41,727 | $ | 13,391 | $ | 7,064 | $ | 29,506 | $ | 23,087 | $ | 13,391 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 210 | $ | — | ||||||||||||||||||||||||||||
Fee income | $ | 87,592 | $ | 168,722 | $ | 76,383 | $ | 53,249 | $ | 138,819 | 76,152 | 76,383 | ||||||||||||||||||||
Net interest expense | (77 | ) | (92 | ) | (36 | ) | (48 | ) | (81 | ) | 127 | (36 | ) | |||||||||||||||||||
Total revenue | 87,515 | 168,630 | 76,347 | 53,201 | 138,738 | 76,489 | 76,347 | |||||||||||||||||||||||||
Total expenses | 78,688 | 151,962 | 62,970 | 45,304 | 123,453 | 70,756 | 62,970 | |||||||||||||||||||||||||
Other, net | 22 | 105 | 2 | — | — | 1,664 | 2 | |||||||||||||||||||||||||
NET INCOME BEFORE TAXES | $ | 8,849 | $ | 16,773 | $ | 13,379 | $ | 7,897 | $ | 15,285 | ||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | 7,397 | $ | 13,379 | ||||||||||||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Incenter title agent orders | 59,429 | 114,864 | 54,960 | 45,102 | 122,331 | 29,449 | 54,960 | |||||||||||||||||||||||||
Incenter title agent closings | 48,694 | 92,252 | 46,991 | 30,228 | 78,088 | 26,641 | 46,991 | |||||||||||||||||||||||||
Total appraisals | 12,600 | 22,951 | 7,427 | 6,033 | 15,767 | 10,793 | 7,427 | |||||||||||||||||||||||||
Title insurance underwriter policies | 57,185 | 113,366 | 48,814 | 24,050 | 53,509 | 46,803 | 48,814 | |||||||||||||||||||||||||
FTE count for fulfillment revenue | 986 | 986 | 858 | 41 | 756 | 991 | 858 | |||||||||||||||||||||||||
Total MSR valuations performed | 137 | 274 | 124 | 135 | 391 | 146 | 124 |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Title agent and closing services | $ | 24,988 | $ | 58,866 | $ | 31,750 | $ | 24,797 | $ | 68,727 | $ | 23,876 | $ | 31,750 | ||||||||||||||||||
Insurance underwriting services | 42,717 | 77,629 | 33,322 | 17,768 | 40,943 | 35,428 | 33,322 | |||||||||||||||||||||||||
Student and consumer loan origination services | 3,512 | 5,012 | 2,012 | 3,616 | 9,316 | 2,457 | 2,012 | |||||||||||||||||||||||||
Fulfillment services | 7,337 | 14,160 | 6,779 | 4,492 | 12,030 | 7,666 | 6,779 | |||||||||||||||||||||||||
MSR trade brokerage, valuation and other services | 8,306 | 12,156 | 2,462 | 2,562 | 7,747 | 5,700 | 2,462 | |||||||||||||||||||||||||
Other income | 732 | 899 | 58 | 14 | 56 | 1,235 | 58 | |||||||||||||||||||||||||
Net interest expense | (77 | ) | (92 | ) | (36 | ) | (48 | ) | (81 | ) | 127 | (36 | ) | |||||||||||||||||||
Total revenue | $ | 87,515 | $ | 168,630 | $ | 76,347 | $ | 53,201 | $ | 138,738 | $ | 76,489 | $ | 76,347 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Salaries | $ | 18,129 | $ | 36,480 | $ | 16,715 | $ | 10,099 | $ | 29,830 | $ | 18,499 | $ | 16,715 | ||||||||||||||||||
Commissions and bonus | 9,755 | 18,445 | 7,045 | 8,017 | 18,570 | 5,753 | 7,045 | |||||||||||||||||||||||||
Other salary related expenses | 5,183 | 11,445 | 4,001 | 2,805 | 8,200 | 5,828 | 4,001 | |||||||||||||||||||||||||
Total salaries, benefits and related expenses | 33,067 | 66,370 | 27,761 | 20,921 | 56,600 | 30,080 | 27,761 | |||||||||||||||||||||||||
Title and closing | 31,358 | 56,548 | 25,062 | 15,835 | 44,512 | 26,643 | 25,062 | |||||||||||||||||||||||||
Communication and data processing | 3,760 | 6,885 | 2,960 | 2,949 | 7,361 | 3,095 | 2,960 | |||||||||||||||||||||||||
Fair value change in deferred purchase price liability | 238 | 1,988 | — | 87 | 250 | |||||||||||||||||||||||||||
Other general and administrative expenses | 9,060 | 17,951 | 6,040 | 4,492 | 12,083 | 9,980 | 6,040 | |||||||||||||||||||||||||
Total general and administrative expenses | 44,416 | 83,372 | 34,062 | 23,363 | 64,206 | 39,718 | 34,062 | |||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 1,205 | 2,220 | 1,147 | 1,020 | 2,647 | 958 | 1,147 | |||||||||||||||||||||||||
Total expenses | $ | 78,688 | $ | 151,962 | $ | 62,970 | $ | 45,304 | $ | 123,453 | $ | 70,756 | $ | 62,970 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | $ | 13,664 | $ | 21,412 | $ | 5,065 | $ | 706 | $ | 6,323 | ||||||||||||||||||||||
Net fair value (losses) gains | (448 | ) | 10,776 | 2,750 | 46,261 | 72,142 | ||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 10,928 | $ | 5,065 | ||||||||||||||||||||||||||||
Net fair value gains (losses) | (102,785 | ) | 2,750 | |||||||||||||||||||||||||||||
Fee income | 54,525 | 36,191 | ||||||||||||||||||||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | (15,676 | ) | (14,816 | ) | ||||||||||||||||||
Fee income | 14,937 | 18,514 | 36,191 | 10,965 | 13,357 | |||||||||||||||||||||||||||
Total revenue | 10,354 | 17,052 | 29,190 | 41,933 | 31,342 | (53,008 | ) | 29,190 | ||||||||||||||||||||||||
Total expenses | 30,068 | 63,325 | 24,406 | 22,989 | 61,735 | 34,711 | 24,406 | |||||||||||||||||||||||||
Other, net | 252 | 8 | 895 | — | — | 27 | 895 | |||||||||||||||||||||||||
NET (LOSS) INCOME BEFORE TAXES | $ | (19,462 | ) | $ | (46,265 | ) | $ | 5,679 | $ | 18,944 | $ | (30,393 | ) | |||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (87,692 | ) | $ | 5,679 | |||||||||||||||||||||||||||
(1) | Net fair value gains and losses in our Portfolio Management segment for loans held for sale only include fair value adjustments related to loans originated in the Commercial Originations segment. |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | March 31, 2022 | December 31, 2021 | |||||||||||||
Cash and cash equivalents | $ | 45,401 | $ | 47,024 | $ | 45,420 | $ | 43,261 | ||||||||
Restricted cash | $ | 322,887 | $ | 303,925 | 313,699 | 320,116 | ||||||||||
Reverse mortgage loans held for investment, subject to HMBS liabilities, at fair value | 10,347,459 | 9,929,163 | ||||||||||||||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,939,651 | 5,396,167 | ||||||||||||||
Mortgage loans held for investment, at fair value | 1,077,670 | 730,821 | ||||||||||||||
Mortgage servicing rights, at fair value | 340,949 | 180,684 | ||||||||||||||
Loans held for investment, subject to HMBS liabilities, at fair value | 10,672,152 | 10,556,054 | ||||||||||||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,235,990 | 6,218,194 | ||||||||||||||
Loans held for investment, at fair value | 1,218,990 | 1,031,328 | ||||||||||||||
MSRs, at fair value | 426,102 | 427,942 | ||||||||||||||
Other assets, net | 185,898 | 165,810 | 497,827 | 228,069 | ||||||||||||
Total long-term investment assets | 18,259,915 | 16,753,594 | 19,410,180 | 18,824,964 | ||||||||||||
Mortgage loans held for sale, at fair value | 142,906 | 142,226 | ||||||||||||||
Loans held for sale, at fair value | 218,468 | 149,425 | ||||||||||||||
Total earning assets | 18,402,821 | 16,895,820 | 19,628,648 | 18,974,389 | ||||||||||||
HMBS related obligations, at fair value | 10,216,310 | $ | 9,788,668 | 10,548,131 | 10,422,358 | |||||||||||
Nonrecourse debt, at fair value | 5,831,083 | 5,271,842 | 6,323,777 | 6,111,242 | ||||||||||||
Other financing lines of credit | 1,508,916 | 1,010,669 | 1,753,417 | 1,525,529 | ||||||||||||
Payables and other liabilities | 66,698 | 96,762 | 94,454 | 96,080 | ||||||||||||
Total financing of portfolio | 17,623,007 | 16,167,941 | 18,719,779 | 18,155,209 | ||||||||||||
Net equity in earning assets | $ | 779,814 | $ | 727,879 | $ | 908,869 | $ | 819,180 | ||||||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
Successor | Predecessor | |||||||||||||||
Mortgage Servicing Rights Portfolio | ||||||||||||||||
MSRs Portfolio | ||||||||||||||||
Loan count | 103,422 | 69,301 | 103,277 | 118,939 | ||||||||||||
Ending unpaid principal balance (“UPB”) | $ | 33,301,683 | $ | 22,269,362 | ||||||||||||
Ending unpaid principal balance | $ | 33,008,009 | $ | 38,219,162 | ||||||||||||
Average unpaid principal balance | $ | 322 | $ | 321 | $ | 320 | $ | 321 | ||||||||
Weighted average coupon | 3.02 | % | 3.15 | % | 3.11 | % | 3.01 | % | ||||||||
Weighted average age (in months) | 9 | 4 | 12 | 11 | ||||||||||||
Weighted average FICO credit score | 758 | 760 | 752 | 756 | ||||||||||||
90+ day delinquency rate | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | ||||||||
Total prepayment speed | 9.5 | % | 12.1 | % | 6.7 | % | 8.3 | % | ||||||||
Reverse Mortgages | ||||||||||||||||
Loan count | 59,556 | 58,230 | 60,737 | 59,480 | ||||||||||||
Active UPB | $ | 14,352,606 | $ | 13,355,570 | ||||||||||||
Active unpaid principal balance | $ | 15,648,425 | $ | 14,902,734 | ||||||||||||
Due and payable | 279,268 | 484,233 | 320,870 | 322,057 | ||||||||||||
Foreclosure | 689,749 | 348,768 | 595,653 | 599,087 | ||||||||||||
Claims pending | 65,352 | 76,346 | 85,477 | 73,327 | ||||||||||||
Ending unpaid principal balance | $ | 15,386,975 | $ | 14,264,917 | $ | 16,650,425 | $ | 15,897,205 | ||||||||
Average unpaid principal balance | $ | 258 | $ | 245 | $ | 274 | $ | 267 | ||||||||
Weighted average coupon | 3.94 | % | 4.30 | % | 4.02 | % | 3.92 | % | ||||||||
Weighted average age (in months) | 44 | 44 | 42 | 43 | ||||||||||||
Percentage in foreclosure | 4.5 | % | 2.4 | % | 3.6 | % | 3.8 | % | ||||||||
Commercial (SRL/Portfolio/Fix & Flip) | ||||||||||||||||
Loan count | 2,147 | 1,993 | 2,490 | 2,222 | ||||||||||||
Ending unpaid principal balance | $ | 453,372 | $ | 493,817 | $ | 553,109 | $ | 479,190 | ||||||||
Average unpaid principal balance | $ | 211 | $ | 248 | $ | 216 | $ | 216 | ||||||||
Weighted average coupon | 7.52 | % | 8.50 | % | 6.40 | % | 7.43 | % | ||||||||
Weighted average loan age (in months) | 9 | 12 | 7 | 8 | ||||||||||||
SRL conditional prepayment rate | 1.9 | % | 2.9 | % | 0.1 | % | 1.4 | % | ||||||||
SRL non-performing (60+ DPD) | 1.4 | % | 2.2 | % | ||||||||||||
SRL non-performing (60+ days past due) | 1.3 | % | 1.3 | % | ||||||||||||
F&F single month mortality | 8.5 | % | 8.8 | % | 10.1 | % | 8.9 | % | ||||||||
F&F non-performing (60+ DPD) | 14.9 | % | 6.5 | % | ||||||||||||
F&F non-performing (60+ days past due) | 10.4 | % | 13.6 | % | ||||||||||||
Agricultural Loans | ||||||||||||||||
Loan count | 72 | 42 | 82 | 80 | ||||||||||||
Ending unpaid principal balance | $ | 186,177 | $ | 69,127 | $ | 178,473 | $ | 144,328 | ||||||||
Average unpaid principal balance | $ | 2,586 | $ | 1,646 | $ | 1,804 | $ | 1,804 | ||||||||
Weighted average coupon | 7.34 | % | 7.70 | % | 7.17 | % | 7.14 | % | ||||||||
Weighted average loan age (in months) | 7 | 5 | 5 | 7 | ||||||||||||
Conditional prepayment rate | 1.0 | % | 1.0 | % |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Investment and Capital Markets | ||||||||||||||||||||||||||||||||
Number of structured deals | 4 | 7 | 1 | 2 | 8 | 2 | 1 | |||||||||||||||||||||||||
Structured deals (size in notes) | $ | 1,443,121 | $ | 2,575,653 | $ | 571,448 | $ | 954,884 | $ | 2,715,236 | $ | 1,090,038 | $ | 571,448 | ||||||||||||||||||
Number of whole loan trades | 11 | 21 | 8 | 1 | 3 | 15 | 8 | |||||||||||||||||||||||||
UPB of whole loan trades | $ | 294,898 | $ | 512,966 | $ | 195,929 | $ | 44,704 | $ | 168,869 | $ | 318,724 | $ | 195,929 |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
REVENUE | ||||||||||||||||||||||||||||||||
Gain on sale and other income from mortgage loans held for sale, net | $ | 13,664 | $ | 21,412 | $ | 5,065 | $ | 706 | $ | 6,323 | ||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 10,928 | $ | 5,065 | ||||||||||||||||||||||||||||
Net fair value gains: | ||||||||||||||||||||||||||||||||
Interest income | 152,641 | 300,587 | 149,875 | 171,731 | 532,725 | |||||||||||||||||||||||||||
Interest expense (nonrecourse) | (109,766 | ) | (221,107 | ) | (114,910 | ) | (126,426 | ) | (388,904 | ) | ||||||||||||||||||||||
Net fair value (losses) gains on portfolio assets | (43,323 | ) | (68,704 | ) | (32,215 | ) | 956 | (71,679 | ) | |||||||||||||||||||||||
Net fair value gains from portfolio activity | 36,784 | 32,386 | ||||||||||||||||||||||||||||||
Net fair value gains (losses) from changes in market inputs or model assumptions | (139,569 | ) | (29,636 | ) | ||||||||||||||||||||||||||||
Total net fair value (losses) gains | (448 | ) | 10,776 | 2,750 | 46,261 | 72,142 | ||||||||||||||||||||||||||
Total net fair value gains (losses) | (102,785 | ) | 2,750 | |||||||||||||||||||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | (15,676 | ) | (14,816 | ) | ||||||||||||||||||
Fee income: | ||||||||||||||||||||||||||||||||
Servicing income (MSR) | 6,060 | 6,360 | 33,698 | 8,060 | 9,846 | 50,168 | 33,698 | |||||||||||||||||||||||||
Underwriting, advisory and valuation fees | 5,127 | 7,028 | 997 | — | 180 | 493 | 997 | |||||||||||||||||||||||||
Asset management fees | — | — | 9 | 366 | 1,319 | — | 9 | |||||||||||||||||||||||||
Other fees | 3,750 | 5,126 | 1,487 | 2,539 | 2,012 | 3,864 | 1,487 | |||||||||||||||||||||||||
Total fee income | 14,937 | 18,514 | 36,191 | 10,965 | 13,357 | 54,525 | 36,191 | |||||||||||||||||||||||||
Total revenue | $ | 10,354 | $ | 17,052 | $ | 29,190 | $ | 41,933 | $ | 31,342 | $ | (53,008 | ) | $ | 29,190 | |||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Interest income on commercial and reverse loans | $ | 152,641 | $ | 300,585 | $ | 149,875 | $ | 171,244 | $ | 532,725 | $ | 163,694 | $ | 160,568 | ||||||||||||||||||
Interest expense on HMBS and nonrecourse obligations | (109,766 | ) | (221,107 | ) | (114,910 | ) | (126,426 | ) | (388,904 | ) | (106,643 | ) | (119,201 | ) | ||||||||||||||||||
Net interest margin included in net fair value gains and losses on mortgage loans (1) | 42,875 | 79,478 | 34,965 | 44,818 | 143,821 | 57,051 | 41,367 | |||||||||||||||||||||||||
Interest income on mortgage loans held for sale | 296 | 483 | 138 | 136 | 619 | 327 | 138 | |||||||||||||||||||||||||
Interest expense on warehouse lines of credit | (18,178 | ) | (34,216 | ) | (14,954 | ) | (15,636 | ) | (60,604 | ) | (16,003 | ) | (14,954 | ) | ||||||||||||||||||
Other interest income (expense) | 83 | 83 | — | (499 | ) | (495 | ) | |||||||||||||||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | (15,676 | ) | (14,816 | ) | ||||||||||||||||||
NET INTEREST MARGIN | $ | 25,076 | $ | 45,828 | $ | 20,149 | $ | 28,819 | $ | 83,341 | $ | 41,375 | $ | 26,551 | ||||||||||||||||||
(1) | Net interest margin included in net fair value gains and losses on mortgage loans includes interest income and expense on all commercial and reverse loans and their related nonrecourse obligations. Interest income on mortgage loans and warehouse lines of credit are classified in net interest expense. See Note |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Salaries and bonuses | $ | 9,080 | $ | 24,621 | $ | 5,650 | $ | 6,043 | $ | 15,835 | $ | 10,723 | $ | 5,650 | ||||||||||||||||||
Other salary related expenses | 380 | 827 | 497 | 917 | 1,613 | 1,091 | 497 | |||||||||||||||||||||||||
Total salaries, benefits and related expenses | 9,460 | 25,448 | 6,147 | 6,960 | 17,448 | 11,814 | 6,147 | |||||||||||||||||||||||||
Securitization expenses | 9,877 | 14,610 | 4,459 | 5,242 | 13,592 | 6,794 | 4,459 | |||||||||||||||||||||||||
Servicing related expenses | 9,093 | 17,918 | 8,651 | 6,723 | 19,143 | 5,954 | 8,651 | |||||||||||||||||||||||||
Other general and administrative expenses | 1,441 | 5,026 | 4,887 | 3,918 | 11,092 | 9,951 | 4,887 | |||||||||||||||||||||||||
Total general and administrative expenses | 20,411 | 37,554 | 17,997 | 15,883 | 43,827 | 22,699 | 17,997 | |||||||||||||||||||||||||
Occupancy and equipment rentals | 197 | 323 | 262 | 146 | 460 | |||||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 198 | 262 | ||||||||||||||||||||||||||||||
Total expenses | $ | 30,068 | $ | 63,325 | $ | 24,406 | $ | 22,989 | $ | 61,735 | $ | 34,711 | $ | 24,406 | ||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Fee income | $ | — | $ | — | $ | — | $ | 2,471 | $ | 2,514 | ||||||||||||||||||||||
Net interest expense | (6,720 | ) | (13,287 | ) | (7,744 | ) | (385 | ) | (4,605 | ) | $ | (6,609 | ) | $ | (7,744 | ) | ||||||||||||||||
Total interest and other expense | (6,720 | ) | (13,287 | ) | (7,744 | ) | 2,086 | (2,091 | ) | (6,609 | ) | (7,744 | ) | |||||||||||||||||||
Total expenses | 28,672 | 64,669 | 18,683 | 9,615 | 32,837 | 34,038 | 18,683 | |||||||||||||||||||||||||
Other, net | 10,205 | 8,019 | (9,464 | ) | (2,470 | ) | (2,514 | ) | (152 | ) | (9,464 | ) | ||||||||||||||||||||
NET LOSS | $ | (25,187 | ) | $ | (69,937 | ) | $ | (35,891 | ) | $ | (9,999 | ) | $ | (37,442 | ) | |||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (40,799 | ) | $ | (35,891 | ) | ||||||||||||||||||||||||||
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | ||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||
Salaries and bonuses | $ | 35,944 | $ | 82,973 | $ | 22,779 | $ | 16,566 | $ | 44,022 | $ | 38,700 | $ | 22,779 | ||||||||||||||||||
Other salary related expenses | 3,379 | 5,611 | 3,306 | 1,196 | 3,011 | 3,259 | 3,306 | |||||||||||||||||||||||||
Shared services - payroll allocations | (19,520 | ) | (43,954 | ) | (18,657 | ) | (15,867 | ) | (29,356 | ) | (23,386 | ) | (18,657 | ) | ||||||||||||||||||
Total salaries, benefits and related expenses | 19,803 | 44,630 | 7,428 | 1,895 | 17,677 | 18,573 | 7,428 | |||||||||||||||||||||||||
Communication and data processing | 4,368 | 8,208 | 3,015 | 1,300 | 4,141 | 4,616 | 3,015 | |||||||||||||||||||||||||
Professional fees | 488 | 8,905 | 10,334 | 8,515 | 15,440 | 8,557 | 10,334 | |||||||||||||||||||||||||
Other general and administrative expenses | 8,141 | 11,621 | 1,481 | 873 | 3,317 | 4,630 | 1,481 | |||||||||||||||||||||||||
Shared services - general and administrative allocations | (5,404 | ) | (10,669 | ) | (3,694 | ) | (3,402 | ) | (9,080 | ) | (3,583 | ) | (3,694 | ) | ||||||||||||||||||
Total general and administrative expenses | 7,593 | 18,065 | 11,136 | 7,286 | 13,818 | 14,220 | 11,136 | |||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 1,276 | 1,974 | 119 | 434 | 1,342 | 1,245 | 119 | |||||||||||||||||||||||||
Total expenses | $ | 28,672 | $ | 64,669 | $ | 18,683 | $ | 9,615 | $ | 32,837 | $ | 34,038 | $ | 18,683 | ||||||||||||||||||
1. | Change in fair value of loans and securities held for investment due to assumption changes |
2. | Amortization and other |
3. |
4. | Change in fair value of deferred purchase price obligations (including earnouts and TRA obligations), warrant liability, and minority investments |
5. | Certain |
6. | Pro-forma income tax provision |
1. | Taxes |
2. | Interest on non-funding debt |
3. | Depreciation |
4. | Change in fair value of loans and securities held for investment due to assumption changes |
5. | Amortization and other |
6. | Equity based compensation |
7. | Change in fair value of deferred purchase price obligations (including earnouts and TRA obligations), warrant liability and minority investments |
8. | Certain |
For the three months ended September 30, 2021 | April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the three months ended September 30, 2020 | For the nine months ended September 30, 2020 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Reconciliation of Net income to Adjusted Net Income and Adjusted EBITDA | ||||||||||||||||||||
Net income | $ | 50,110 | $ | 35,286 | $ | 124,320 | $ | 241,611 | $ | 345,490 | ||||||||||
Adjustments for: | ||||||||||||||||||||
Change in fair value of loans and securities held for investment due to assumption changes (1) | 28,760 | 48,803 | 2,042 | (16,753 | ) | 53,908 | ||||||||||||||
Amortization and impairment of intangibles | 13,457 | 26,914 | 629 | 601 | 1,889 | |||||||||||||||
Change in fair value of deferred purchase price liabilities (2) | 1,273 | 3,893 | 30 | (258 | ) | (111 | ) | |||||||||||||
Change in fair value of warrant liability | (9,919 | ) | (8,627 | ) | — | — | — | |||||||||||||
Equity based compensation | 10,626 | 21,268 | — | — | — | |||||||||||||||
Change in fair value of minority investments (3) | (401 | ) | (274 | ) | 9,464 | — | — | |||||||||||||
Certain non-recurring costs (4) | 2,602 | 46,080 | 6,719 | 7,893 | 12,547 | |||||||||||||||
Tax effect on net income attributable to noncontrolling interest (5)(6) | (7,257 | ) | (2,984 | ) | (31,482 | ) | (62,221 | ) | (88,663 | ) | ||||||||||
Tax effect of adjustments attributable to noncontrolling interest (5) | (10,585 | ) | (29,113 | ) | (4,910 | ) | 2,214 | (17,741 | ) | |||||||||||
Tax effect of adjustments attributable to controlling interest (5) | (4,057 | ) | (9,360 | ) | N/A | N/A | N/A | |||||||||||||
Adjusted Net Income | $ | 74,609 | $ | 131,886 | $ | 106,812 | $ | 173,087 | $ | 307,319 | ||||||||||
Effective income taxes | 26,339 | 46,983 | 37,529 | 60,815 | 107,978 | |||||||||||||||
Depreciation | 2,519 | 4,800 | 2,163 | 1,776 | 5,342 | |||||||||||||||
Interest expense on non-funding debt | 6,842 | 13,536 | 7,706 | 7 | 3,515 | |||||||||||||||
Adjusted EBITDA | $ | 110,309 | $ | 197,205 | $ | 154,210 | $ | 235,685 | $ | 424,154 | ||||||||||
GAAP PER SHARE MEASURES | ||||||||||||||||||||
Net income attributable to controlling interest | $ | 21,384 | $ | 23,649 | N/A | N/A | N/A | |||||||||||||
Weighted average shares outstanding | 59,861,171 | 59,871,386 | N/A | N/A | N/A | |||||||||||||||
Basic earnings per share | 0.36 | 0.39 | N/A | N/A | N/A | |||||||||||||||
If-converted method net income | $ | 42,861 | $ | 33,125 | $ | 119,859 | $ | 246,288 | $ | 367,373 | ||||||||||
Weighted average diluted shares | 191,161,431 | 191,180,610 | 191,200,000 | 191,200,000 | 191,200,000 | |||||||||||||||
Diluted earnings per share | $ | 0.22 | $ | 0.17 | $ | 0.63 | $ | 1.29 | $ | 1.92 | ||||||||||
NON-GAAP PER SHARE MEASURES | ||||||||||||||||||||
Adjusted Net Income | $ | 74,609 | $ | 131,886 | $ | 106,812 | $ | 173,087 | $ | 307,319 | ||||||||||
Weighted average diluted shares | 191,161,431 | 191,180,610 | 191,200,000 | 191,200,000 | 191,200,000 | |||||||||||||||
Adjusted Diluted Earnings per Share | $ | 0.39 | $ | 0.69 | $ | 0.56 | $ | 0.91 | $ | 1.61 |
Book equity | $ | 2,432,174 | $ | 2,432,174 | $ | 844,386 | $ | 1,014,007 | $ | 1,014,007 | ||||||||||
Ending diluted shares | 189,425,808 | 189,425,808 | 191,200,000 | 191,200,000 | 191,200,000 | |||||||||||||||
Book Equity per Diluted Share | $ | 12.84 | $ | 12.84 | $ | 4.42 | $ | 5.30 | $ | 5.30 |
For the three months ended March 31, 2022 | January 1, 2021 to March 31, 2021 | |||||||||||
Successor | Predecessor | |||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted EBITDA | ||||||||||||
Net income (loss) | $ | (63,995 | ) | $ | 124,320 | |||||||
Addback: Provision for income taxes | (13,335 | ) | 1,137 | |||||||||
Net income (loss) before taxes | (77,330 | ) | 125,457 | |||||||||
Adjustments for: | ||||||||||||
Changes in fair value (1) | 95,773 | 11,536 | ||||||||||
Amortization and impairment of goodwill and intangibles (2) | 13,808 | 629 | ||||||||||
Equity-based compensation (3) | 9,470 | — | ||||||||||
Certain non-recurring costs (4) | 8,837 | 6,719 | ||||||||||
Adjusted Net Income before taxes | 50,558 | 144,341 | ||||||||||
Provision for income taxes (5) | (13,257 | ) | (37,529 | ) | ||||||||
Adjusted Net Income | 37,301 | 106,812 | ||||||||||
Effective Income Taxes (5) | 13,257 | 37,529 | ||||||||||
Depreciation | 2,520 | 2,163 | ||||||||||
Interest expense on non-funding debt | 6,703 | 7,706 | ||||||||||
Adjusted EBITDA | $ | 59,781 | $ | 154,210 | ||||||||
GAAP PER SHARE MEASURES | ||||||||||||
Net loss attributable to controlling interest | $ | (8,493 | ) | N/A | ||||||||
Weighted average shares outstanding | 60,773,891 | N/A | ||||||||||
Basic earnings per share | $ | (0.14 | ) | N/A | ||||||||
If-converted method net income | $ | (57,246 | ) | N/A | ||||||||
Weighted average diluted shares | 189,448,936 | N/A | ||||||||||
Diluted earnings per share | $ | (0.30 | ) | N/A | ||||||||
NON-GAAP PER SHARE MEASURES | ||||||||||||
Adjusted Net Income | $ | 37,301 | $ | 106,812 | ||||||||
Weighted average diluted shares | 189,448,936 | 191,200 | ||||||||||
Adjusted Diluted Earnings per Share | $ | 0.20 | $ | 0.56 | ||||||||
Book equity | $ | 1,032,095 | $ | 844,386 | ||||||||
Ending diluted shares | 189,448,936 | 191,200 | ||||||||||
Book Equity per Diluted Share | $ | 5.45 | $ | 4.42 |
(1) |
1. | Reverse mortgage loans held for investment, subject to HMBS related obligations, at fair value; |
2. | Mortgage loans held for investment, subject to nonrecourse debt, at fair value; |
3. | Mortgage loans held for investment, at fair value; |
4. | Debt Securities; |
5. |
6. | HMBS related obligations, at fair value; and |
7. | Nonrecourse debt, at fair value. |
Change in Fair Value of Minority Investments
Liquidity and Capital Resources Impact of the Business Combination FoA is a holding company and has no material assets other than its direct and indirect ownership of Class A LLC Units. FoA has no independent means of generating revenue. FoA Equity may make distributions to its holders of Class A LLC Units, including FoA and the Continuing Unitholders, in an amount sufficient to cover all applicable taxes at assumed tax rates, payments under the TRAs and dividends, if any, declared by it. Deterioration in the financial condition, earnings or cash flow of FoA Equity and its subsidiaries for any reason could limit or impair their ability to pay such distributions. Additionally, the terms of our financing arrangements, including financing lines of credit and senior notes, contain covenants that may restrict FoA Equity and its subsidiaries from paying such distributions, subject to certain exceptions. In addition, one of our subsidiaries, FAM, is subject to various regulatory capital and minimum net worth requirements as a result of their mortgage origination and servicing activities. Further, FoA Equity is generally prohibited under Delaware law from making a distribution to a member to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of FoA Equity (with certain exceptions) exceed the fair value of its assets. Subsidiaries of FoA Equity are generally subject to similar legal limitations on their ability to make distributions to FoA Equity. Our cash flows from operations, borrowing availability and overall liquidity are subject to risks and uncertainties. We may not be able to obtain additional liquidity on reasonable terms, or at all. Additionally, our liquidity and our ability to meet our obligations and to fund our capital requirements are dependent on our future financial performance, which is subject to general economic, financial, and other factors that are beyond our control. Accordingly, our business may not generate sufficient cash flow from operations and future borrowings may not be available from additional indebtedness or otherwise to meet our liquidity needs. Although we have no specific current plans to do so, if we decide to pursue one or more significant acquisitions, we may incur additional debt or sell additional equity to finance such acquisitions, which would result in additional expenses or dilution. TRAs In connection with the Business Combination, concurrently with the Closing, the Company entered into The payments that FoA may make under the TRAs are expected to be substantial. The payments under the TRAs are not conditioned upon continued ownership of FoA or FoA Equity by the Continuing Unitholders. The Company accounts for the effects of these increases in tax basis and associated payments under the TRAs arising from exchanges in connection with the Business Combination as follows: records an increase in deferred tax assets for the estimated income tax effects of the increases in tax basis based on enacted federal and state tax rates at the date of the exchange; to the extent we estimate that the Company will not realize the full benefit represented by the deferred tax asset, based on an analysis that will consider, among other things, our expectation of future earnings, the Company reduces the deferred tax asset with a valuation allowance; and initial measurement of the obligations is at fair value on the acquisition date. Subsequently, the liability will be remeasured at fair value each reporting period, with any changes in fair value recognized through earnings. The Company records obligations under the TRAs resulting from exchanges subsequent to the Business Combination, as they occur, at the gross undiscounted amount of the expected future payments as an increase to the liability along with the deferred tax asset and valuation allowance (if any) with an offset to additional paid-in capital.As of Sources and Uses of Cash Our primary sources of funds for liquidity include: (i) payments received from sale or securitization of loans; (ii) payments from the liquidation or securitization of our outstanding participating interests in loans; and (iii) advance and warehouse facilities, other secured borrowings and the unsecured senior notes. Our primary uses of funds for liquidity include: (i) funding of borrower advances and draws on outstanding loans; (ii) originations of loans; (iii) payment of operating expenses; (iv) repayment of borrowings and repurchases or redemptions of outstanding indebtedness, and (v) distributions to shareholders for the estimated taxes on pass-through taxable income. 99 Our cash Cash Flows The following table presents net cash provided by (used in) operating activities, investing activities and financing activities (in thousands) for three months ended March 31, 2022 (Successor), and for the period from
Our cash Operating Cash Flow Net cash Cash flows from operating activities improved Investing Cash Flow Net cash used in investing activities totaled The increase of 100 Financing Cash Flow Net cash provided by financing activities totaled The Financial Covenants Our credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage ratio requirements, and profitability requirements. These covenants are measured at our operating subsidiaries. Seller/Servicer Financial Requirements We are also subject to net worth, capital ratio and liquidity requirements established by Minimum Net Worth The minimum net worth requirement for Fannie Mae and Freddie Mac is defined as follows: Base of $2.5 million plus 25 basis points of outstanding UPB for total loans serviced. Tangible Net Worth comprises of total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. The minimum net worth requirement for Ginnie Mae is defined as follows: The sum of (i) base of $2.5 million plus 35 basis points of the issuer’s total single-family effective outstanding obligations, and (ii) base of $5 million plus 1% of the total effective HMBS outstanding obligations. Tangible Net Worth is defined as total equity less goodwill, intangible assets, affiliate receivables and certain pledged assets. Effective for fiscal year 2020, under the Ginnie Mae MBS Guide, the issuers will no longer be permitted to include deferred tax assets when computing the minimum net worth requirement. 101 Minimum Capital Ratio In addition to the minimum net worth requirement, we are also required to hold a ratio of Tangible Net Worth to Total Assets (excluding HMBS securitizations) greater than 6%. FAR received a permanent waiver for the minimum outstanding capital requirements from Ginnie Mae. Minimum Liquidity The minimum liquidity requirement for Fannie Mae and Freddie Mac is defined as follows: 3.5 basis points of total Agency Mortgage Servicing, plus Incremental 200 basis points times the sum of the following: The total UPB of nonperforming (90 or more days delinquent) Agency Mortgage Servicing that is not in forbearance, plus The total UPB of nonperforming (90 or more days delinquent) Agency Mortgage Servicing that is in forbearance and which were delinquent at the time it entered forbearance, plus 30% of the UPB of nonperforming (90 or more days delinquent) Agency Mortgage Servicing that is in forbearance and which were current at the time it entered forbearance This liquidity must only be maintained to the extent this sum exceeds 6% of the total Agency Mortgage Servicing UPB. Allowable assets for liquidity may include: cash and cash equivalents (unrestricted), available for sale or held for trading investment grade securities (e.g., Agency MBS, Obligations of GSEs, US Treasury Obligations); and unused/available portion of committed servicing advance lines. The minimum liquidity requirement for Ginnie Mae is defined as follows: Maintain liquid assets equal to the greater of $1.0 million or 10 basis points of our outstanding single-family MBS. Maintain liquid assets equal to at least 20% of our net worth requirement for HECM MBS. Summary of Certain Indebtedness The following description is a summary of certain material provisions of our outstanding indebtedness. As of Warehouse Lines of Credit Mortgage facilities As of When we draw on these facilities, we generally must transfer and pledge eligible loans to the lender, and comply with various financial and other covenants. The facilities generally have one-year terms and expire at various times during 102 The following table presents additional information about our Mortgage Originations segment’s warehouse facilities as of
Reverse mortgage facilities As of When we draw on these warehouse lines of credit, we generally must transfer and pledge eligible loans, and comply with various financial and other covenants. The facilities generally have one-year terms and expire at various times during The following table presents additional information about our Reverse Origination segment’s warehouse facilities as of
Commercial loan facilities As of 103 When we draw on these facilities, we must transfer and pledge eligible loan collateral, and comply with various financial and other covenants. The facilities generally have a spread, the prime rate plus a spread or an alternative short term index plus a spread.one-year terms and expire at various times during 2022 through 2023. Under our facilities, we generally transfer the loans at a haircut, which serves as the primary credit enhancement for the lender. One of our warehouse lines of credit is The following table presents additional information about our Commercial Origination segment’s warehouse facilities as of
General With respect to each of our warehouse facilities, we pay certain up-front and/or ongoing fees which can be based on our utilization of the facility. In some instances, loans held by a lender for a contractual period exceeding 45 to 60 calendar days after we originate such loans are subject to additional fees and interest rates.Certain of our warehouse facilities contain sub-limits for “wet” loans, which allow us to finance loans for a minimal period of time prior to delivery of the note collateral to the lender. “Wet” loans are loans for which the collateral custodian has not yet received the related loan documentation. “Dry” loans are loans for which all the sale documentation has been completed at the time of funding. Wet loans are held by a lender for a contractual period, typically between five and ten business days and are subject to a reduction in the advance amount.Interest is generally payable at the time the loan is settled off the line or monthly in arrears and principal is payable upon receipt of loan sale proceeds or transfer of a loan to another line of credit. The facilities may also require the outstanding principal to be repaid if a loan remains on the line longer than a contractual period of time, which ranges from 45 to 365 calendar days. Interest on our warehouse facilities vary by facility and may depend on the type of asset that is being financed. Loans financed under certain of our warehouse facilities are subject to changes in Our warehouse facilities require each of our borrowing subsidiaries to comply with various customary operating and financial covenants, including, without limitation, the following tests: minimum tangible or adjusted tangible net worth; maximum leverage ratio of total liabilities (which may include off-balance sheet liabilities) or indebtedness to tangible or adjusted tangible net worth;104 minimum liquidity or minimum liquid assets; and minimum net income or pre-tax net income.In the event we fail to comply with the covenants contained in any of our warehouse lines of credit, or otherwise were to default under the terms of such agreements, we may be restricted from paying dividends, reducing or retiring our equity interests, making investments or incurring more debt. Other Secured Lines of As of When we draw on these facilities, we generally must transfer and pledge eligible assets to the lender, and comply with various financial and other covenants. Under our facilities, we generally transfer the assets at a haircut which serves as the primary credit enhancement for the lender. Three of these facilities are guaranteed by our wholly-owned subsidiary, FAH, the parent holding company to the mortgage, reverse mortgage and commercial lending businesses, and one of these also benefits from a pledge of equity of our wholly-owned subsidiary, FAR. Upon expiration, management believes it will either renew these facilities or obtain sufficient additional lines of credit. The following table presents additional information about our other secured lines of credit for our Mortgage, Reverse and Commercial Originations segments
We pay certain up-front and ongoing fees based on our utilization with respect to many of these facilities. We pay commitment fees based upon the limit of the facility and unused fees are paid if utilization falls below a certain amount.Interest is payable either at the time the loan or securities are settled off the line or monthly in arrears and principal is payable upon receipt of asset sale proceeds, principal distributions on the underlying pledged securities or transfer of assets to another line of credit and upon the maturity of the facility. 105 Under these facilities, we are generally required to comply with various customary operating and financial covenants. The financial covenants are similar to those under the warehouse lines of credit. HMBS related obligations FAR is an approved issuer of HMBS securities that are guaranteed by Ginnie Mae and collateralized by participation interests in HECMs insured by the FHA. We originate HECMs insured by the FHA. Participations in the HECMs are pooled into HMBS securities which are sold into the secondary market with servicing rights retained. We have determined that loan transfers in the HMBS program do not meet the accounting definition of a participating interest because of the servicing requirements in the product that require the issuer/servicer to absorb some level of interest rate risk, cash flow timing risk and incidental credit risk due to the buyout of HECM assets as discussed below. As a result, the transfers of the HECMs do not qualify for sale accounting, and we, therefore, account for these transfers as financings. Holders of participating interests in the HMBS have no recourse against assets other than the underlying HECM loans, remittances, or collateral on those loans while they are in the securitization pools, except for standard representations and warranties and our contractual obligation to service the HECMs and the HMBS. Remittances received on the reverse loans, if any, and proceeds received from the sale of real estate owned and our funds used to repurchase reverse loans are used to reduce the HMBS related obligations by making payments to the securitization pools, which then remit the payments to the beneficial interest holders of the HMBS. The maturity of the HMBS related obligations is directly affected by the liquidation of the reverse loans or liquidation of real estate owned and events of default as stipulated in the reverse loan agreements with borrowers. As an HMBS issuer, FAR assumes certain obligations related to each security it issues. The most significant obligation is the requirement to purchase loans out of the Ginnie Mae securitization pools once they reach certain limits set at loan origination for the maximum UPB allowed. Performing repurchased loans are generally conveyed to the HUD and nonperforming repurchased loans are generally liquidated in accordance with program requirements. As of Additionally, as the servicer of reverse loans, we are obligated to fund additional borrowing capacity primarily in the form of undrawn lines of credit on floating rate reverse loans. We rely upon our operating cash flows to fund these additional borrowings on a short-term basis prior to securitization. The additional borrowings are generally securitized within 30 days after funding. The obligation to fund these additional borrowings could have a significant impact on our liquidity. Nonrecourse Debt We securitize and issue interests in pools of loans that are not eligible for the Ginnie Mae securitization program. These include reverse mortgage loans that were previously repurchased out of FHA-insured non-agency reverse mortgages(“non-agency reverse mortgages-Securitized”). The transactions provide investors with the ability to invest in these pools of assets. The transactions provide us with access to liquidity for these assets, ongoing servicing fees, and potential residual returns for the residual securities we retain at the time of securitization. The transactions are structured as secured borrowings with the loan assets and liabilities, respectively, included in the 106 Nonrecourse MSR Financing Liability, at Fair Value Debt As of Senior Unsecured Notes On November 5, 2020, Finance of America Funding LLC, a consolidated subsidiary of the Company, issued $350.0 million aggregate principal amount of senior unsecured notes due November 15, 2025. The senior unsecured notes bear interest at a rate of 7.875% per year, payable semi-annually in arrears on May 15 and November 15 beginning on May 15, 2021. The 7.875% senior unsecured notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by FoA and each of FoA’s material existing and future wholly-owned domestic subsidiaries (other than Finance of America Funding LLC and subsidiaries that cannot guarantee the notes for tax, contractual or regulatory reasons). At any time prior to November 15, 2022, Finance of America Funding LLC may redeem some or all of the 7.875% senior unsecured notes at a redemption price equal to 100% of the principal amount thereof, plus the applicable premium as of the redemption date under the terms of the indenture and accrued and unpaid interest. The redemption price during each of the twelve-month periods following November 15, 2022, November 15, 2023, and at any time after November 15, 2024 is 103.938%, 101.969% and 100.000%, respectively, of the principal amount plus accrued and unpaid interest thereon. At any time prior to November 15, 2022, Finance of America Funding LLC may also redeem up to 40% of the aggregate principal amount of the notes at a redemption price equal to 107.875% of the aggregate principal amount of the senior unsecured notes redeemed, with an amount equal to or less than the net cash proceeds from certain equity offerings, plus accrued and unpaid interest. Upon the occurrence of a change of control, the holders of the 7.875% senior unsecured notes will have the right to require Finance of America Funding LLC to make an offer to repurchase each holder’s 7.875% senior unsecured notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest. The consummation of the Business Combination did not result in a change of control for purposes of Finance of America Funding LLC’s 7.875% senior unsecured notes. The 7.875% senior unsecured notes contain covenants limiting, among other things, Finance of America Funding LLC’s and its restricted subsidiaries’ ability to incur certain types of additional debt or issue certain preferred shares, incur liens, make certain distributions, investments and other restricted payments, engage in certain transactions with affiliates, and merge or consolidate or sell, transfer, lease or otherwise dispose of all or substantially all of Finance of America Funding LLC’s assets. These incurrence based covenants are subject to important exceptions and qualifications (including any relevant exceptions for the Business Combination). Many of these covenants will cease to apply with respect to the 7.875% senior unsecured notes during any time that the 7.875% senior unsecured notes have investment grade ratings from either Moody’s Investors Service, Inc. or Fitch Ratings Inc. and no default with respect to the 7.875% senior unsecured notes has occurred and is continuing. The Company was in compliance with all required covenants related to the Notes as of March 31, 2022. FoA’s existing owners or their affiliated entities, including Blackstone and Brian L. Libman, FoA’s founder and chairman, purchased notes in the offering in an aggregate principal amount of $135.0 million. 107 Contractual Obligations and Commitments The following table provides a summary of obligations and commitments outstanding as of
In addition to the above contractual obligations, we have also been involved with several securitizations of HECM loans, which were structured as secured borrowings. These structures resulted in us carrying the securitized loans on the In addition to the above contractual obligations, we have also been involved in the sale of a portion of the excess servicing and/or an agreement to pay certain amounts based on excess servicing cashflows generated on our owned The payments that we will be required to make under the TRAs that was entered into in connection with the Business Combination may be significant and are not reflected in the contractual obligations tables set forth above. CRITICAL ACCOUNTING POLICIES For a description of our critical accounting policies, see FoA’s 10-K filed with the SEC on 108 Item 3. Quantitative and Qualitative Disclosures About Market Risk Our principal market risk is to interest rate risk, primarily to changes in long-term Treasury rates and mortgage interest rates due to their impact on mortgage-related assets and commitments. Changes in short-term interest rates will also have an impact on our warehouse financing lines of credit. Interest Rate Risk Changes in interest rates will impact our operating segments as follows: Portfolio Management an increase in interest rates could generate an increase in delinquency, default and foreclosure rates resulting in an increase in both higher servicing costs and interest expense on our outstanding debt. an increase in interest rates and market spreads may cause a reduction in the fair value of our long-term assets. a decrease in interest rates may generally increase prepayment speeds of our long-term assets which would lead a reduction in the fair value of our long-term assets. Originations (Mortgage, Reverse and Commercial) an increase in prevailing interest rates could adversely affect our loan origination volume as refinancing activity will be less attractive to existing borrowers. an increase in interest rates will lead to a higher cost of funds on our outstanding warehouse lines of credit. Lender Services an increase in interest rates will lead to lower origination volumes which would negatively impact the amount of title and insurance clients we are able to service and the number of title policies that we are able to underwrite. lower origination volumes from an increase in interest rates may lead to a reduction in our fulfillment services as we process fewer loans for our clients. an increase in interest rates may lead to fewer student loan applications that we are asked to process for our clients. We actively manage the risk profile of Interest Rate Lock Commitments (“IRLCs”) and loans held for sale on a daily basis and enter into forward sales of MBS in an amount equal to IRLCs expected to close assuming no change in mortgage interest rates. Earnings on our held for investment assets depend largely on our interest rate spread, represented by the relationship between the yield on our interest-earning assets, primarily securitized assets, and the cost of our interest-bearing liabilities, primarily securitized borrowings. Interest rate spreads are impacted by several factors, including forward interest rates, general economic factors, and the quality of the loans in our portfolio. Consumer Credit Risk We are exposed to credit risk in the event that certain of our borrowers are unable to pay their outstanding mortgage balances. We manage this credit risk by actively managing delinquencies and defaults through our servicers. We provide servicing oversight of our servicers to ensure they perform loss mitigation, foreclosure and collection functions according to standard acceptable servicing practices and in accordance with our various pooling and servicing agreements. We estimate the fair values on our outstanding mortgage loans using a combination of historical loss frequency and loss experience. We principally sell our mortgage loans on a nonrecourse basis. We provide representations and warranties to purchasers of the loans sold over the life of the loan. Whenever there is a breach of these representation and warranties we will be required to repurchase the loan or indemnify the purchaser, and any subsequent loss on the loan will be borne by us. If there is no breach of the representation and warranty provision, we have no obligation to indemnify or repurchase the investor against loss. The outstanding UPB plus any premiums on the purchased loans represent the maximum potential exposure on outstanding representation and warranties that we are exposed to. 109 We estimate a reserve for losses on repurchased loans and indemnifications for future breaches of representation and warranties on any sold loans. This estimate is based on historical data on loan repurchase and indemnity activity, actual losses on repurchase loans and other factors. Counterparty Credit Risk We are exposed to counterparty credit risk in the event of nonperformance by counterparties to various agreements. We monitor the credit ratings of counterparties and do not anticipate material losses due to counterparty nonperformance. Sensitivity Analysis We utilize a sensitivity analysis to assess our market risk associated with changes in interest rates. This sensitivity analysis attempts to assess the potential impact to earnings based on hypothetical changes in interest rates. The fair value of certain of our outstanding mortgage loans and related liabilities, MSRs, and certain investments are valued utilizing a discounted cash flow analysis. The primary assumptions we utilize in these models include prepayment speeds, market discount rates, and credit default rates. Our total market risk is impacted by a variety of other factors including market spreads and the liquidity of the markets. There are certain limitations inherent in the sensitivity analysis presented, including the necessity to conduct the analysis based on a single point in time. The sensitivities presented are hypothetical and should be evaluated with care. The effect on fair value of a 25 bps variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors, which could impact the above hypothetical effects. The table below is presented in thousands.
Item 4. Controls and Procedures Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Evaluation of Disclosure Controls and Procedures Our management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, and the information described above in this Item 4, our chief executive officer and chief financial officer concluded that, as of As previously reported, 815-40). This material weakness resulted in the failure to prevent a material error in the accounting for temporary and permanent equity warrants and the resulting restatement of Replay’s previously issued financial Management has concluded that the material weakness Notwithstanding the material weakness described above, based on the additional analysis and other post-closing procedures performed, the Company believes the interim unaudited consolidated financial statements and other financial information included in this Quarterly Report on Form 10-Q, are fairly presented, in all material respects, in conformity with GAAP.Plan of Remediation of Material Weakness in Internal Control Over Financial Reporting As previously described in Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2021, beginning in the second quarter of fiscal year 2021, we implemented the below changes to our processes to improve our internal control over financial reporting to remediate the control deficiency that gave rise to the material
Management is committed to remediating the material weakness in a timely fashion. Management believes it has The material weakness will not be considered remediated until the applicable controls Changes in Internal Control Over Financial Reporting Other than the remediation efforts described above in this Item 4, there has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and15d-15(f) under the Exchange Act) during the three months ended Part II - Other Information Item 1. Legal Proceedings The information required with respect to this Part II, Item 1 can be found under Note Item 1A. Risk Factors 10-K for the year ended December 31, 2021, originally filed with the SEC on In addition to the other information included in this Report, you should carefully consider the factors discussed in 10-K, as well as the factors identified under “Cautionary Note Regarding Forward-Looking Statements” at the beginning of Part I, Item 1 of this Quarterly Report and as may be updated in subsequent filings with the SEC, which could materially affect the Company’s business, financial condition or future results. The risks described in the Item 2. Unregistered Sales of Equity Securities and Use of Proceeds None. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures None. Item 5. Other Information None. Item 6. Exhibits
Certain agreements and other documents filed as exhibits to this Form 10-Q contain representations and warranties that the parties thereto made to each other. These representations and warranties have been made solely for the benefit of the other parties to such agreements and may have been qualified by certain information that has been disclosed to the other parties to such agreements and other documents and that may not be reflected in such agreements and other documents. In addition, these representations and warranties may be intended as a way of allocating risks among parties if the statements contained therein prove to be incorrect, rather than as actual statements of fact. Accordingly, there can be no reliance on any such representations and warranties as characterizations of the actual state of facts. Moreover, information concerning the subject matter of any such representations and warranties may have changed since the date of such agreements and other documents. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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