☒ | 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 of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
5830 Granite Parkway, | 75024 | |||||||||||||
(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 |
Finance of America Companies Inc. and Subsidiaries Quarterly Report on Form 10-Q Table of Contents |
Page | |||||||||||
PART I - Financial Information | |||||||||||
Financial Statements | |||||||||||
Management's Discussion and Analysis of Financial Condition and Results of Operations | |||||||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | ||||||||||
Item 4. | Controls and Procedures | ||||||||||
PART II - Other Information | |||||||||||
Item 1. | Legal Proceedings | ||||||||||
Item 1A. | Risk Factors | ||||||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||||
Item 3. | Defaults Upon Senior Securities | ||||||||||
Item 4. | Mine Safety Disclosures | ||||||||||
Item 5. | Other Information | ||||||||||
Item 6. | Exhibits and Financial Statement Schedules | ||||||||||
Signatures |
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (In thousands, except share data) |
September 30, 2022 | December 31, 2021 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 169,072 | $ | 141,238 | |||||||
Restricted cash | 210,147 | 322,403 | |||||||||
Loans held for investment, subject to Home Equity Conversion Mortgage-Backed Securities ("HMBS") related obligations, at fair value | 10,916,551 | 10,556,054 | |||||||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,741,391 | 6,218,194 | |||||||||
Loans held for investment, at fair value | 1,307,413 | 1,031,328 | |||||||||
Loans held for sale, at fair value | 859,650 | 2,052,378 | |||||||||
Mortgage servicing rights ("MSRs"), at fair value, $59,800 and $142,435 subject to nonrecourse MSRs financing liability, respectively | 103,069 | 427,942 | |||||||||
Derivative assets | 89,899 | 48,870 | |||||||||
Fixed assets and leasehold improvements, net | 19,828 | 29,256 | |||||||||
Intangible assets, net | 438,300 | 602,900 | |||||||||
Other assets, net | 334,577 | 358,383 | |||||||||
TOTAL ASSETS | $ | 21,189,897 | $ | 21,788,946 | |||||||
LIABILITIES AND EQUITY | |||||||||||
HMBS related obligations, at fair value | $ | 10,784,841 | $ | 10,422,358 | |||||||
Nonrecourse debt, at fair value (includes amounts due to related parties of $0 and $142,435, respectively) | 6,745,526 | 6,111,242 | |||||||||
Other financing lines of credit | 2,305,999 | 3,347,442 | |||||||||
Payables and other liabilities | 395,635 | 471,511 | |||||||||
Notes payable, net (includes amounts due to related parties of $30,000 and $0, respectively) | 382,810 | 353,383 | |||||||||
TOTAL LIABILITIES | 20,614,811 | 20,705,936 | |||||||||
Commitments and Contingencies (Note 20) | |||||||||||
EQUITY (Note 26) | |||||||||||
Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 62,959,276 shares issued and outstanding at September 30, 2022 | 6 | 6 | |||||||||
Class B Common Stock, $0.0001 par value; 1,000,000 shares authorized, 15 shares issued and outstanding at September 30, 2022 | — | — | |||||||||
Additional paid-in capital | 876,140 | 831,620 | |||||||||
Accumulated deficit | (577,272) | (443,613) | |||||||||
Accumulated other comprehensive loss | (367) | (110) | |||||||||
Noncontrolling interest | 276,579 | 695,107 | |||||||||
TOTAL EQUITY | 575,086 | 1,083,010 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 21,189,897 | $ | 21,788,946 |
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 | ||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Financial Condition (In thousands) |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||
Successor | Predecessor | September 30, 2022 | December 31, 2021 | ||||||||||||||||
(unaudited) | (unaudited) | ||||||||||||||||||
ASSETS | ASSETS | ||||||||||||||||||
Restricted cash | $ | 306,615 | $ | 293,580 | Restricted cash | $ | 196,062 | $ | 311,652 | ||||||||||
Mortgage loans held for investment, subject to nonrecourse debt, at fair value | 5,939,651 | 5,396,167 | |||||||||||||||||
Other assets | 69,947 | 79,528 | |||||||||||||||||
Loans held for investment, subject to nonrecourse debt, at fair value | Loans held for investment, subject to nonrecourse debt, at fair value | 6,577,569 | 6,099,607 | ||||||||||||||||
Other assets, net | Other assets, net | 76,177 | 67,593 | ||||||||||||||||
TOTAL ASSETS | $ | 6,316,213 | $ | 5,769,275 | TOTAL ASSETS | $ | 6,849,808 | $ | 6,478,852 | ||||||||||
LIABILITIES | LIABILITIES | ||||||||||||||||||
Nonrecourse debt, at fair value | $ | 5,735,010 | $ | 5,257,754 | Nonrecourse debt, at fair value | $ | 6,525,382 | $ | 5,857,069 | ||||||||||
Payables and other liabilities | 117 | 291 | Payables and other liabilities | 778 | 428 | ||||||||||||||
TOTAL LIABILITIES | $ | 5,735,127 | $ | 5,258,045 | TOTAL LIABILITIES | $ | 6,526,160 | $ | 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 | NET CARRYING VALUE OF ASSETS SUBJECT TO NONRECOURSE DEBT | $ | 323,648 | $ | 621,355 |
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share data) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 36,179 | $ | 226,336 | $ | 210,095 | $ | 397,672 | $ | 291,334 | ||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | (6,376) | 5,672 | 122,509 | 253,660 | 76,663 | |||||||||||||||||||||||||||||||||
Fee income | 70,512 | 316,798 | 145,725 | 236,589 | 161,371 | |||||||||||||||||||||||||||||||||
Net interest expense: | ||||||||||||||||||||||||||||||||||||||
Interest income | 12,022 | 41,748 | 15,862 | 29,013 | 12,661 | |||||||||||||||||||||||||||||||||
Interest expense | (41,236) | (110,900) | (37,691) | (71,317) | (34,366) | |||||||||||||||||||||||||||||||||
Net interest expense | (29,214) | (69,152) | (21,829) | (42,304) | (21,705) | |||||||||||||||||||||||||||||||||
TOTAL REVENUES | 71,101 | 479,654 | 456,500 | 845,617 | 507,663 | |||||||||||||||||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||||||||||||||||
Salaries, benefits, and related expenses | 146,385 | 549,755 | 262,000 | 536,731 | 238,530 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 7,003 | 22,103 | 8,283 | 15,003 | 7,597 | |||||||||||||||||||||||||||||||||
General and administrative expenses | 105,533 | 361,613 | 141,595 | 260,896 | 127,187 | |||||||||||||||||||||||||||||||||
TOTAL EXPENSES | 258,921 | 933,471 | 411,878 | 812,630 | 373,314 | |||||||||||||||||||||||||||||||||
IMPAIRMENT OF INTANGIBLES AND OTHER ASSETS | (138,184) | (138,184) | — | — | — | |||||||||||||||||||||||||||||||||
OTHER, NET | 21,330 | 41,234 | 9,928 | 7,825 | (8,892) | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | (304,674) | (550,767) | 54,550 | 40,812 | 125,457 | |||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes | (2,974) | (17,249) | 4,440 | 5,526 | 1,137 | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) | (301,700) | (533,518) | 50,110 | 35,286 | 124,320 | |||||||||||||||||||||||||||||||||
Contingently Redeemable Noncontrolling Interest ("CRNCI") | — | — | — | — | 4,260 | |||||||||||||||||||||||||||||||||
Noncontrolling interest | (217,214) | (399,859) | 28,726 | 11,637 | 201 | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | (84,486) | $ | (133,659) | $ | 21,384 | $ | 23,649 | $ | 119,859 | ||||||||||||||||||||||||||||
EARNINGS PER SHARE (Note 25) | ||||||||||||||||||||||||||||||||||||||
Basic weighted average shares outstanding | 62,804,809 | 61,993,353 | 59,861,171 | 59,871,386 | N/A | |||||||||||||||||||||||||||||||||
Basic net earnings (loss) per share | $ | (1.35) | $ | (2.16) | $ | 0.36 | $ | 0.39 | N/A |
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share data) |
Diluted weighted average shares outstanding | 62,804,809 | 188,375,945 | 191,161,431 | 191,180,610 | N/A | |||||||||||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | (1.35) | $ | (2.34) | $ | 0.22 | $ | 0.17 | N/A |
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 |
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Comprehensive Income (Unaudited) (In thousands) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
NET INCOME (LOSS) | $ | (301,700) | $ | (533,518) | $ | 50,110 | $ | 35,286 | $ | 124,320 | ||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) ITEM: | ||||||||||||||||||||||||||||||||||||||
Impact of foreign currency translation adjustment | (105) | (257) | (65) | (92) | (11) | |||||||||||||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | (301,805) | (533,775) | 50,045 | 35,194 | 124,309 | |||||||||||||||||||||||||||||||||
Less: Comprehensive income (loss) attributable to the noncontrolling interest and CRNCI | (217,285) | (400,033) | 28,681 | 11,573 | 4,461 | |||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | (84,520) | $ | (133,742) | $ | 21,364 | $ | 23,621 | $ | 119,848 |
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 | ||||||||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Unaudited) (In thousands) |
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 |
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 | ||||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Unaudited) (In thousands, except share data) |
Class A Common Stock | Class B Common Stock | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Class A LLC Units | Amount | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Successor: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at April 1, 2021 | 59,881,714 | $ | 6 | 7 | $ | — | $ | 758,243 | $ | (71,813) | $ | — | 131,318,286 | $ | 1,658,545 | $ | 2,344,981 | |||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 23,649 | — | — | 11,637 | 35,286 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | — | — | — | 24 | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | — | (555) | (555) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation, net | — | — | — | — | 61,314 | — | — | — | — | 61,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | 829,222 | — | — | — | 9,290 | — | — | (829,222) | (10,543) | (1,253) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of other RSUs (Note 25 - Earnings Per Share) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (1,774,192) | — | — | — | (7,531) | — | — | — | — | (7,531) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Ownership change reclassification | — | — | (1) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (92) | — | — | (92) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 58,936,744 | $ | 6 | 6 | $ | — | $ | 821,316 | $ | (48,164) | $ | (92) | 130,489,064 | $ | 1,659,108 | $ | 2,432,174 | |||||||||||||||||||||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Unaudited) (In thousands, except share data) |
Class A Common Stock | Class B Common Stock | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Class A LLC Units | Amount | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 60,755,069 | $ | 6 | 15 | $ | — | $ | 831,620 | $ | (443,613) | $ | (110) | 128,693,867 | $ | 695,107 | $ | 1,083,010 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (133,659) | — | — | (399,859) | (533,518) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | — | — | — | 42 | 42 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | — | — | (248) | (248) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation, net | — | — | — | — | 36,618 | — | — | — | — | 36,618 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | 111,209 | — | — | — | 466 | — | — | (111,209) | (552) | (86) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | 3,749,057 | — | — | — | 13,086 | — | — | (3,749,057) | (17,911) | (4,825) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of other RSUs (Note 25 - Earnings Per Share) | 346,133 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (2,002,192) | — | — | — | (5,650) | — | — | — | — | (5,650) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (257) | — | — | (257) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 62,959,276 | $ | 6 | 15 | $ | — | $ | 876,140 | $ | (577,272) | $ | (367) | 124,833,601 | $ | 276,579 | $ | 575,086 |
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 | |||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Equity (Unaudited) (In thousands, except share data) |
Class A Common Stock | Class B Common Stock | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Class A LLC Units | Amount | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | 62,474,553 | $ | 6 | 15 | $ | — | $ | 860,232 | $ | (492,786) | $ | (262) | 125,413,507 | $ | 496,010 | $ | 863,200 | |||||||||||||||||||||||||||||||||||||||||||||
Net income loss | — | — | — | — | — | (84,486) | — | — | (217,214) | (301,700) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest contributions | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest distributions | — | — | — | — | — | — | — | — | (56) | (56) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity based compensation, net | — | — | — | — | 15,735 | — | — | — | — | 15,735 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of LLC Units for Class A Common Stock (Note 26 - Equity) | 3,096 | — | — | — | 42 | — | — | (3,096) | (12) | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of LTIP RSUs, net (Note 25 - Earnings Per Share) | 576,810 | — | — | — | 2,075 | — | — | (576,810) | (2,149) | (74) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of other RSUs (Note 25 - Earnings Per Share) | 252,678 | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of shares to fund employee tax withholdings (Note 26 - Equity) | (347,861) | — | — | — | (1,944) | — | — | — | — | (1,944) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | (105) | — | — | (105) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2022 | 62,959,276 | $ | 6 | 15 | $ | — | $ | 876,140 | $ | (577,272) | $ | (367) | 124,833,601 | $ | 276,579 | $ | 575,086 |
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 | — |
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
For the nine months ended September 30, 2022 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Operating Activities | ||||||||||||||||||||||||||||||||
Net income (loss) | $ | (533,518) | $ | 35,286 | $ | 124,320 | ||||||||||||||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | 1,594,533 | (107,899) | (6,277) | |||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | 1,061,015 | (72,613) | 118,043 | |||||||||||||||||||||||||||||
Investing Activities | ||||||||||||||||||||||||||||||||
Purchases and originations of loans held for investment | (5,259,356) | (2,658,540) | (1,151,925) | |||||||||||||||||||||||||||||
Proceeds/payments received on loans held for investment | 1,712,364 | 1,446,930 | 677,777 | |||||||||||||||||||||||||||||
Purchases and origination of loans held for investment, subject to nonrecourse debt | (89,907) | (25,081) | (12,247) | |||||||||||||||||||||||||||||
Proceeds/payments on loans held for investment, subject to nonrecourse debt | 1,551,340 | 556,466 | 217,452 | |||||||||||||||||||||||||||||
Purchases of debt securities | (9,565) | (1,449) | (557) | |||||||||||||||||||||||||||||
Proceeds/payments on debt securities | 2,249 | 3,238 | 2,096 | |||||||||||||||||||||||||||||
Purchases of MSRs | — | (2,352) | (9,014) | |||||||||||||||||||||||||||||
Proceeds on sale of MSRs | 454,106 | 2,501 | 7,765 | |||||||||||||||||||||||||||||
Acquisition of subsidiaries, net of cash acquired | — | (22,838) | (749) | |||||||||||||||||||||||||||||
Acquisition of fixed assets | (9,195) | (8,636) | (4,178) | |||||||||||||||||||||||||||||
Payments on deferred purchase price liability | (8,000) | (311) | (657) | |||||||||||||||||||||||||||||
Debtor in possession ("DIP") Financing | — | — | (35,260) | |||||||||||||||||||||||||||||
Other investing activities, net | (153) | — | (2,550) | |||||||||||||||||||||||||||||
Net cash used in investing activities | (1,656,117) | (710,072) | (312,047) | |||||||||||||||||||||||||||||
Financing Activities | ||||||||||||||||||||||||||||||||
Proceeds from issuance of HMBS related obligations | 2,481,514 | 1,587,902 | 602,172 | |||||||||||||||||||||||||||||
Payments of HMBS related obligations | (1,945,207) | (1,221,327) | (506,142) | |||||||||||||||||||||||||||||
Proceeds from issuance of nonrecourse debt | 2,678,347 | 1,270,334 | 579,518 | |||||||||||||||||||||||||||||
Payments on nonrecourse debt | (1,655,080) | (809,184) | (658,300) | |||||||||||||||||||||||||||||
Proceeds from other financing lines of credit | 18,936,854 | 18,451,706 | 10,027,696 | |||||||||||||||||||||||||||||
Payments on other financing lines of credit | (19,978,296) | (18,401,507) | (9,660,588) | |||||||||||||||||||||||||||||
Debt issuance costs | (1,338) | (1,342) | (2,467) | |||||||||||||||||||||||||||||
Payment of withholding taxes relating to equity-based compensation | (5,650) | — | — | |||||||||||||||||||||||||||||
Member distributions | — | — | (75,000) | |||||||||||||||||||||||||||||
Settlement of CRNCI | — | (203,216) | — | |||||||||||||||||||||||||||||
Other financing activities, net | (207) | (531) | 806 | |||||||||||||||||||||||||||||
Net cash provided by financing activities | 510,937 | 672,835 | 307,695 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (257) | (15) | (7) | |||||||||||||||||||||||||||||
Net increase (decrease) in cash and restricted cash | (84,422) | (109,865) | 113,684 | |||||||||||||||||||||||||||||
Cash and restricted cash, beginning of period | 463,641 | 626,827 | 539,363 | |||||||||||||||||||||||||||||
Cash and restricted cash, end of period | $ | 379,219 | $ | 516,962 | $ | 653,047 | ||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
For the nine months ended September 30, 2022 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Supplementary Cash Flows Information | ||||||||||||||||||||||||||||||||
Cash paid for interest | $ | 194,179 | $ | 124,312 | $ | 50,071 | ||||||||||||||||||||||||||
Cash paid for income taxes, net | 46 | 1,882 | 63 | |||||||||||||||||||||||||||||
Loans transferred to loans held for investment, at fair value, from loans held for investment, subject to nonrecourse debt, at fair value | 803,648 | 242,650 | 283,428 | |||||||||||||||||||||||||||||
Loans transferred to loans held for investment, subject to nonrecourse debt, at fair value, from loans held for investment, at fair value | 3,608,016 | 1,309,669 | 272,098 | |||||||||||||||||||||||||||||
Loans transferred to loans held for investment, subject to HMBS, at fair value, from loans held for investment, at fair value | 2,053,387 | 1,393,897 | 42,909 | |||||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Standard | Description | Effective Date | Effect on Condensed Consolidated Financial Statements | |||||||||||||||||
Financial Statements | ||||||||||||||||||||
Financial Statements | ||||||||||||||||||||
Financial Statements | ||||||||||||||||||||
ASU 2021-04, Earnings Per Share (Topic 260), | The amendments in this Update affect all entities that issue freestanding written call options that are classified in equity. Specifically, the amendments affect those entities when a freestanding equity-classified written call option is modified or exchanged and remains equity classified after the modification or exchange. The amendments that relate to the recognition and measurement of EPS for certain modifications or exchanges of freestanding equity-classified written call options affect entities that present EPS in accordance with the guidance in Topic 260, Earnings Per Share. | January 1, 2022 | The adoption of this standard did not have a material impact on the Company's condensed consolidated financial statements and related disclosures, as the Company does not currently issue freestanding written call options. |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 ASU 2021-01, Reference Rate Reform (Topic 848): Codification Clarification | 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. In January 2021, FASB issued an Update which refines the scope of ASU Topic 848 and clarifies the guidance issued to facilitate the effects of reference rate reform on financial reporting. The amendment permits entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates used for discounting cash flows, computing variation margin settlements and calculating price alignment interest in connection with reference rate reform activities. In April 2022, FASB released a proposed ASU that would amend the guidance on reference rate reform in ASC Topic 848 and ASC 815. Specifically, the proposal would defer the effective date of the guidance’s sunset date provision to December 31, 2024 (originally December 31, 2022), thereby extending the period over which entities can apply the guidance in ASU 2020-04,8 which provides “optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.” In addition, the proposal would amend the definition of the secured overnight financing rate ("SOFR"), as used in ASU 2018-16,9 to “include other versions of SOFR, such as SOFR term, as a benchmark interest rate under Topic 815.” | TBD | This ASU is effective from March 12, 2020 through December 31, 2022. The Company continues to monitor the impact associated with reference rate reform, and will apply the amendments in this update to account for contract modifications due to changes in reference rates once those occur. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. | |||||||||||||||||
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 related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this ASU do not affect the accounting for other assets or liabilities that may arise from revenue contracts with customers in accordance with Topic 606, such as refund liabilities, or in a business combination, such as customer-related intangible assets and contract-based intangible assets. | January 1, 2023 | This ASU is effective for all business combinations occurring after January 1, 2023. The adoption of this standard is not expected to have a material impact on our condensed consolidated financial statements and related disclosures. |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Standard | Description | Date of Planned Adoption | Effect on Condensed Consolidated Financial Statements | |||||||||||||||||
ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions | The amendments in this Update clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in this Update also require the following disclosures for equity securities subject to contractual sale restrictions: 1. The fair value of equity securities subject to contractual sale restrictions reflected in the balance sheet 2. The nature and remaining duration of the restriction(s) 3. The circumstances that could cause a lapse in the restriction(s). | January 1, 2024 | This ASU is effective for fiscal years beginning after December 15, 2023. The adoption of this standard is not expected to have |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Restricted cash | $ | 196,062 | $ | 311,652 | |||||||
Loans held for investment, subject to nonrecourse debt, at fair value | 6,577,569 | 6,099,607 | |||||||||
Other assets, net | 76,177 | 67,593 | |||||||||
TOTAL ASSETS | $ | 6,849,808 | $ | 6,478,852 | |||||||
LIABILITIES | |||||||||||
Nonrecourse debt, at fair value | $ | 6,788,437 | $ | 6,088,298 | |||||||
Payables and other liabilities | 778 | 428 | |||||||||
TOTAL VIE LIABILITIES | 6,789,215 | 6,088,726 | |||||||||
Retained bonds and beneficial interests eliminated in consolidation | (263,055) | (231,229) | |||||||||
TOTAL CONSOLIDATED LIABILITIES | $ | 6,526,160 | $ | 5,857,497 |
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 | ||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | ||||||||||
Unconsolidated securitization trusts: | |||||||||||
Total collateral balances – Unpaid Principal Balance ("UPB") | $ | 1,009,386 | $ | 1,085,340 | |||||||
Total certificate balances | $ | 1,009,386 | $ | 1,085,340 |
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 | ||
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 |
Acquisition Date Fair Value | ||||
L oans held for sale, at fairvalue (1) | $ | 35,226 | ||
Intangible assets | 1,890 | |||
Goodwill | 5,627 | |||
Other assets, net | 753 | |||
Net assets acquired | $ | 43,496 | ||
Provisional Fair Value (in thousands) | Provisional Useful Life (in years) | |||||||
Technology | $ | 1,890 | 5 |
4. Fair Value |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Conditional repayment rate | NM | 23.2 | % | NM | 20.8 | % | ||||||||||||||||||||
Loss frequency | NM | 3.9 | % | NM | 4.5 | % | ||||||||||||||||||||
Loss severity | 2.4% - 9.5% | 2.6 | % | 3.1% - 7.7% | 3.3 | % | ||||||||||||||||||||
Discount rate | NM | 5.2 | % | NM | 2.4 | % | ||||||||||||||||||||
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 | 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 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Conditional repayment rate | NM | 39.5 | % | NM | 41.2 | % | ||||||||||||||||||||
Loss frequency | 23.1% - 100.0% | 50.6 | % | 25.0% - 100% | 59.5 | % | ||||||||||||||||||||
Loss severity | 2.4% - 9.5% | 4.4 | % | 3.1% - 7.7% | 4.3 | % | ||||||||||||||||||||
Discount rate | NM | 8.6 | % | NM | 4.1 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average remaining life (in years) | NM | 8.3 | NM | 9.0 | ||||||||||||||||||||||
Conditional repayment rate | NM | 15.1 | % | NM | 13.3 | % | ||||||||||||||||||||
Loss severity | 2.4% - 9.5% | 4.9 | % | 3.1% - 7.7% | 7.7 | % | ||||||||||||||||||||
Discount rate | NM | 8.2 | % | NM | 3.7 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average remaining life (in years) | NM | 9.4 | NM | 7.5 | ||||||||||||||||||||||
Loan to value | 0.0% - 73.0% | 42.6 | % | 0.1% - 64.7% | 43.4 | % | ||||||||||||||||||||
Conditional repayment rate | NM | 15.0 | % | NM | 18.6 | % | ||||||||||||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | ||||||||||||||||||||
Home price appreciation | (6.8)% - 6.3% | 3.8 | % | (4.6)% - 14% | 4.7 | % | ||||||||||||||||||||
Discount rate | NM | 7.2 | % | NM | 3.6 | % |
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 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Prepayment rate (SMM) | NM | 10.5 | % | NM | 14.1 | % | ||||||||||||||||||||
Discount rate | NM | 10.2 | % | NM | 5.7 | % | ||||||||||||||||||||
Loss rate | NM | 0.5 | % | 0.3% - 69.0% | 0.6 | % |
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 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Prepayment rate (SMM) | NM | 14.3 | % | NM | 17.1 | % | ||||||||||
Discount rate | NM | 5.2 | % | 6.7% - 10.0% | 6.7 | % | ||||||||||
Loss frequency | 0.3% - 74.3% | 0.5 | % | 0.2% - 44.0% | 0.6 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Conditional repayment rate | NM | 44.6 | % | NM | 43.2 | % | ||||||||||||||||||||
Loss frequency | NM | 54.3 | % | NM | 59.4 | % | ||||||||||||||||||||
Loss severity | 2.4% - 9.5% | 5.9 | % | 3.1% - 7.7% | 3.8 | % | ||||||||||||||||||||
Discount rate | NM | 8.6 | % | NM | 4.1 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Conditional repayment rate | NM | 44.0 | % | NM | 44.0 | % | ||||||||||
Loss frequency | NM | 59.1 | % | NM | 46.9 | % | ||||||||||
Loss severity | NM | 5.5 | % | NM | 10.5 | % | ||||||||||
Discount rate | NM | 3.6 | % | NM | 4.1 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average remaining life (in years) | NM | 11.7 | NM | 9.2 | ||||||||||||||||||||||
Loan to value | 0.1% - 64.7% | 43.6 | % | 0.2% - 68.7% | 47.8 | % | ||||||||||||||||||||
Conditional repayment rate | NM | 13.6 | % | NM | 14.8 | % | ||||||||||||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | ||||||||||||||||||||
Home price appreciation | (6.8)% - 6.3% | 3.6 | % | (4.6)%-14.0% | 4.4 | % | ||||||||||||||||||||
Discount rate | NM | 7.1 | % | NM | 3.6 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in years) | NM | 7.8 | NM | 8.0 | ||||||||||||
Loan to value | 7.4% - 68.3% | 47.9 | % | 0.1% - 62.1% | 44.0 | % | ||||||||||
Conditional repayment rate | NM | 16.5 | % | NM | 16.8 | % | ||||||||||
Loss severity | NM | 10.0 | % | NM | 10.0 | % | ||||||||||
Home price appreciation | 3.4% - 9.6% | 4.7 | % | 1.1% - 8.9% | 5.5 | % | ||||||||||
Discount rate | NM | 3.4 | % | NM | 3.6 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Prepayment rate (SMM) | NM | 14.0 | % | NM | 11.9 | % | ||||||||||||||||||||
Discount rate | 10.2% - 14.8% | 10.3 | % | 5.7% - 10.0% | 5.9 | % | ||||||||||||||||||||
Loss rate | NM | 0.3 | % | NM | 0.4 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Discount rate | NM | 9.3 | % | NM | 4.8 | % | ||||||||||||||||||||
Prepayment rate (SMM) | NM | 17.6 | % | 9.0% - 100.0% | 22.1 | % | ||||||||||||||||||||
Default rate (CDR) | 0.0% - 1.0% | 0.9 | % | 0.0% - 0.7% | 0.9 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Discount rate | NM | 4.8 | % | NM | 6.4 | % | ||||||||||
Prepayment rate (SMM) | 9.2% - 100.0% | 26.2 | % | 0% - 1.0% | 0.7 | % | ||||||||||
Default rate (CDR) | NM | 0.9 | % | 0% - 2.0% | 0.4 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Prepayment rate (CPR) | 18.1% - 25.0% | 18.8 | % | 1.0% - 17.1% | 14.2 | % | ||||||||||||||||||||
Discount rate | NM | 7.9 | % | NM | 3.3 | % | ||||||||||||||||||||
Default rate (CDR) | 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) | 1.0% - 17.1% | 14.0 | % | 1.0% - 17.1% | 15.4 | % | ||||||||||
Discount rate | NM | 3.1 | % | NM | 5.0 | % | ||||||||||
Default rate (CDR) | 1.0% - 54.0% | 2.4 | % | 1.0% - 64.9% | 3.6 | % |
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 | % |
Finance of America Companies Inc. and Subsidiaries | |||||||||
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Prepayment rate (CPR) | 0.0% - 20.1% | 14.3 | % | 0.0% - 14.5% | 8.7 | % | ||||||||||||||||||||
Discount rate | NM | 7.9 | % | NM | 3.9 | % | ||||||||||||||||||||
Default rate (CDR) | NM | 1.0 | % | 1.0% - 54.0% | 3.2 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||
Capitalization servicing rate | 1.2 | % | 1.1 | % | ||||||||||
Capitalization servicing multiple | 4.8 | 4.4 | ||||||||||||
Weighted average servicing fee (in basis points) | 26 | 25 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Capitalization servicing rate | 1.0 | % | 0.8 | % | ||||
Capitalization servicing multiple | 4.0 | 3.2 | ||||||
Weighted average servicing fee (in basis points) | 25 | 25 |
September 30, 2021 | December 31, 2020 | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||||||||||||||||||
Unobservable Assumptions | 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 | % | Weighted average prepayment speed (CPR) | 0.9% - 7.9% | 5.8 | % | 0.0% - 12.8% | 8.3 | % | |||||||||||||||||||||||||||||
Discount rate | NM | 9.7 | % | NM | 12.1 | % | Discount rate | NM | 11.7 | % | NM | 8.5 | % | |||||||||||||||||||||||||||||
Weighted average delinquency rate | 1.2% - 8.9% | 1.2 | % | 1.2% - 9.2% | 1.3 | % |
September 30, 2022 | |||||||||||||||||
Weighted Average Prepayment Speed | Discount Rate | ||||||||||||||||
Impact on fair value of 10% adverse change | $ | (2,397) | $ | (4,402) | |||||||||||||
Impact on fair value of 20% adverse change | $ | (4,666) | $ | (8,461) |
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 | ) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Conditional repayment rate | NM | 23.2 | % | NM | 20.8 | % | ||||||||||||||||||||
Discount rate | NM | 5.2 | % | NM | 2.3 | % |
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 | % |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Performing/Nonperforming HECM securitizations | ||||||||||||||||||||||||||
Weighted average remaining life (in years) | 1.8 - 1.9 | 1.9 | 0.2 - 0.8 | 0.5 | ||||||||||||||||||||||
Conditional repayment rate | 18.7% - 22.8% | 21.0 | % | 30.8% - 54.4% | 43.5 | % | ||||||||||||||||||||
Discount rate | NM | 8.2 | % | NM | 2.3 | % | ||||||||||||||||||||
Securitized Non-Agency Reverse | ||||||||||||||||||||||||||
Weighted average remaining life (in years) | 0.5 - 11.2 | 6.7 | 1.0 - 2.3 | 1.6 | ||||||||||||||||||||||
Conditional repayment rate | 11.9% - 31.6% | 16.9 | % | 18.4% - 35.9% | 28.2 | % | ||||||||||||||||||||
Discount rate | NM | 7.1 | % | 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 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average remaining life (in months) | NM | 5.1 | NM | 4.0 | ||||||||||||||||||||||
Weighted average prepayment speed (SMM) | NM | 13.7 | % | NM | 14.0 | % | ||||||||||||||||||||
Discount rate | NM | 7.6 | % | NM | 3.1 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Inputs | Range | Weighted Average | Range | Weighted Average | ||||||||||||
Weighted average remaining life (in months) | NM | 4.0 | 1.9 - 4.1 | 3.4 | ||||||||||||
Weighted average prepayment speed (SMM) | NM | 14.0 | % | 17.7% - 32.0% | 21.4 | % | ||||||||||
Discount rate | NM | 2.6 | % | NM | 5.8 | % |
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, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average prepayment speed (CPR) | 1.3% - 6.4% | 4.7 | % | 2.0% - 11.0% | 7.7 | % | ||||||||||||||||||||
Discount rate | 12.6% | 12.6 | % | 8.1% - 10.1% | 9.1 | % | ||||||||||||||||||||
Weighted average delinquency rate | NM | 1.7 | % | NM | 1.3 | % |
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 | ) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||
Unobservable Assumptions | Range | Weighted Average | Range | Weighted Average | ||||||||||||||||||||||
Weighted average remaining life (in years) | 2.4 - 24.3 | 4.9 | 2.6 - 25.0 | 5.1 | ||||||||||||||||||||||
Discount rate | (16.6)% - 12.2% | 7.1 | % | 1.9% - 8.2% | 2.7 | % |
September 30, 2021 | ||||||||||||||||
Successor | ||||||||||||||||
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: | ||||||||||||||||
Reverse mortgage loans | 5,665,424 | 0 | 0 | 5,665,424 | ||||||||||||
Fix & flip mortgage loans | 274,227 | 0 | 0 | 274,227 | ||||||||||||
Mortgage loans held for investment: | ||||||||||||||||
Reverse mortgage loans | 842,268 | 0 | 0 | 842,268 | ||||||||||||
Fix & flip mortgage loans | 48,076 | 0 | 0 | 48,076 | ||||||||||||
Agricultural loans | 187,326 | 0 | 0 | 187,326 | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||||
Residential mortgage loans | 1,904,109 | 0 | 1,888,208 | 15,901 | ||||||||||||
SRL | 96,665 | 0 | 0 | 96,665 | ||||||||||||
Portfolio | 46,241 | 0 | 0 | 46,241 | ||||||||||||
Mortgage servicing rights | 340,949 | 0 | 0 | 340,949 | ||||||||||||
Derivative assets: | ||||||||||||||||
Forward commitments, TBAs, and Treasury Futures | 974 | 44 | 930 | 0 | ||||||||||||
IRLCs | 29,175 | 0 | 0 | 29,175 | ||||||||||||
Forward MBS | 12,237 | 0 | 12,237 | 0 | ||||||||||||
Interest rate swap futures | 12,607 | 12,607 | 0 | 0 | ||||||||||||
Other assets: | ||||||||||||||||
Investments | 6,000 | 0 | 0 | 6,000 | ||||||||||||
Retained bonds | 41,250 | 0 | 0 | 41,250 | ||||||||||||
Total assets | $ | 19,854,987 | $ | 12,651 | $ | 1,901,375 | $ | 17,940,961 | ||||||||
Liabilities | ||||||||||||||||
HMBS related obligation | $ | 10,216,310 | $ | 0 | $ | 0 | $ | 10,216,310 | ||||||||
Nonrecourse debt: | ||||||||||||||||
Nonrecourse debt in VIE trusts | 5,735,010 | 0 | 0 | 5,735,010 | ||||||||||||
Nonrecourse MSR financing liability | 96,073 | 0 | 0 | 96,073 | ||||||||||||
Deferred purchase price liabilities: | ||||||||||||||||
Deferred purchase price liabilities | 12,175 | 0 | 0 | 12,175 | ||||||||||||
TRA obligation | 35,142 | 0 | 0 | 35,142 | ||||||||||||
Derivative liabilities: | ||||||||||||||||
Forward MBS | 1,061 | 0 | 1,061 | 0 | ||||||||||||
Forward commitments, TBAs, and Treasury Futures | 105 | 44 | 61 | 0 | ||||||||||||
Interest rate swap futures | 10,617 | 10,617 | 0 | 0 | ||||||||||||
Warrants | 9,342 | 9,342 | 0 | 0 | ||||||||||||
Total liabilities | $ | 16,115,835 | $ | 20,003 | $ | 1,122 | $ | 16,094,710 | ||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | |||||||||||||||||||||||
Total Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Loans held for investment, subject to HMBS related obligations | $ | 10,916,551 | $ | — | $ | — | $ | 10,916,551 | |||||||||||||||
Loans held for investment, subject to nonrecourse debt: | |||||||||||||||||||||||
Reverse mortgage loans | 6,285,773 | — | — | 6,285,773 | |||||||||||||||||||
Fix & flip mortgage loans | 455,618 | — | — | 455,618 | |||||||||||||||||||
Loans held for investment: | |||||||||||||||||||||||
Reverse mortgage loans | 1,126,483 | — | — | 1,126,483 | |||||||||||||||||||
Fix & flip mortgage loans | 137,367 | — | — | 137,367 | |||||||||||||||||||
Agricultural loans | 43,563 | — | — | 43,563 | |||||||||||||||||||
Loans held for sale: | |||||||||||||||||||||||
Residential mortgage loans | 629,877 | — | 600,439 | 29,438 | |||||||||||||||||||
SRL | 147,872 | — | — | 147,872 | |||||||||||||||||||
Portfolio | 81,901 | — | — | 81,901 | |||||||||||||||||||
MSRs | 103,069 | — | — | 103,069 | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||
IRLCs and LPCs | 3,678 | — | 4 | 3,674 | |||||||||||||||||||
Forward MBS and TBAs | 32,254 | — | 32,254 | — | |||||||||||||||||||
Interest rate swaps and futures contracts | 53,967 | 53,967 | — | — | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Investments | 1,000 | — | — | 1,000 | |||||||||||||||||||
Retained bonds | 43,206 | — | — | 43,206 | |||||||||||||||||||
Total assets | $ | 20,062,179 | $ | 53,967 | $ | 632,697 | $ | 19,375,515 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
HMBS related obligations | $ | 10,784,841 | $ | — | $ | — | $ | 10,784,841 | |||||||||||||||
Nonrecourse debt: | |||||||||||||||||||||||
Nonrecourse debt in consolidated VIE trusts | 6,525,382 | — | — | 6,525,382 | |||||||||||||||||||
Nonrecourse commercial loan financing liability | 160,344 | — | — | 160,344 | |||||||||||||||||||
Nonrecourse MSR financing liability | 59,800 | — | — | 59,800 | |||||||||||||||||||
Deferred purchase price liabilities: | |||||||||||||||||||||||
Deferred purchase price liabilities | 4,852 | — | — | 4,852 | |||||||||||||||||||
TRA obligation | 4,855 | — | — | 4,855 | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||
IRLCs and LPCs | 13,740 | — | — | 13,740 | |||||||||||||||||||
Forward MBS and TBAs | 97 | — | 97 | — | |||||||||||||||||||
Warrant liability | 1,867 | 1,867 | — | — | |||||||||||||||||||
Total liabilities | $ | 17,555,778 | $ | 1,867 | $ | 97 | $ | 17,553,814 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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: | |||||||||||||||||||||||
IRLCs and LPCs | 24,786 | — | 1,564 | 23,222 | |||||||||||||||||||
Forward MBS and TBAs | 1,250 | — | 1,250 | — | |||||||||||||||||||
Interest rate swaps and futures contracts | 22,834 | 22,834 | — | — | |||||||||||||||||||
Other assets: | |||||||||||||||||||||||
Investments | 6,000 | — | — | 6,000 | |||||||||||||||||||
Retained bonds | 55,614 | — | — | 55,614 | |||||||||||||||||||
Total assets | $ | 20,396,380 | $ | 22,834 | $ | 1,888,441 | $ | 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 and TBAs | 1,685 | — | 1,685 | — | |||||||||||||||||||
Interest rate swaps and futures contracts | 24,993 | 24,993 | — | — | |||||||||||||||||||
Warrant liability | 5,497 | 5,497 | — | — | |||||||||||||||||||
Total liabilities | $ | 16,608,007 | $ | 30,490 | $ | 1,685 | $ | 16,575,832 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 | ||||||||
Successor | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 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 | $ | 11,940,851 | $ | 6,600,762 | $ | 270,122 | $ | 13,997 | $ | 359,006 | $ | 46,593 | $ | 1,000 | |||||||||||||||||||||||||||
Total gain or losses included in earnings | (7,558) | (265,038) | (4,158) | (10,323) | (9,455) | (2,302) | — | ||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 1,482,912 | 31,359 | 210,004 | — | 20,241 | — | — | ||||||||||||||||||||||||||||||||||
Sales and settlements | (417,114) | (376,855) | (219,663) | — | (266,723) | (1,085) | — | ||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (775,127) | 751,163 | 2,906 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 12,223,964 | $ | 6,741,391 | $ | 259,211 | $ | 3,674 | $ | 103,069 | $ | 43,206 | $ | 1,000 |
Successor | ||||||||||||||||||||||||||||
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 | ||||||||||||||
Total gain or losses included in earnings | 143,362 | 120,763 | 2,202 | (8,264 | ) | (28,567 | ) | 1,505 | (3,470 | ) | ||||||||||||||||||
Purchases, settlements and transfers: | ||||||||||||||||||||||||||||
Purchases and additions, net | 2,831,336 | 49,898 | 541,088 | — | 104,653 | 39,840 | — | |||||||||||||||||||||
Sales and settlements | (1,354,871 | ) | (888,318 | ) | (526,014 | ) | (1,135 | ) | (2,501 | ) | (095 | ) | — | |||||||||||||||
Transfers in/(out) between categories | (1,366,434 | ) | 1,365,864 | 5,850 | — | — | 0— | — | ||||||||||||||||||||
Ending balance, September 30, 2021 | $ | 11,425,129 | $ | 5,939,651 | $ | 158,807 | $ | 29,175 | $ | 340,949 | $ | 041,250 | $ | 6,000 | ||||||||||||||
Successor | |||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 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 | $ | (10,745,879) | $ | (4,852) | $ | (6,447,238) | $ | (162,464) | $ | (142,382) | $ | (13,925) | |||||||||||||||||||||||||||||
Total gains or losses included in earnings | 13,421 | — | 178,700 | (2,769) | 1,736 | 9,070 | |||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | (547,762) | — | (718,656) | (24,975) | (92) | — | |||||||||||||||||||||||||||||||||||
Settlements | 495,379 | — | 461,812 | 29,864 | 80,938 | — | |||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Ending balance | $ | (10,784,841) | $ | (4,852) | $ | (6,525,382) | $ | (160,344) | $ | (59,800) | $ | (4,855) |
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 | ) | |||||||
Successor | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 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 | $ | 11,587,382 | $ | 6,218,194 | $ | 166,750 | $ | 23,222 | $ | 427,942 | $ | 55,614 | $ | 6,000 | |||||||||||||||||||||||||||
Total gain or losses included in earnings | (77,600) | (836,632) | (15,361) | (19,548) | 30,242 | (8,611) | (5,000) | ||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 5,259,357 | 89,907 | 1,001,526 | — | 114,903 | — | — | ||||||||||||||||||||||||||||||||||
Sales and settlements | (1,701,481) | (1,537,044) | (902,713) | — | (470,018) | (3,797) | — | ||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (2,843,694) | 2,806,966 | 9,009 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 12,223,964 | $ | 6,741,391 | $ | 259,211 | $ | 3,674 | $ | 103,069 | $ | 43,206 | $ | 1,000 |
Predecessor | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
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 | ) | |||||||||||||||
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 | ||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Successor | |||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 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 | $ | (10,422,358) | $ | (12,852) | $ | (5,857,069) | $ | (111,738) | $ | (142,435) | $ | (29,380) | |||||||||||||||||||||||||||||
Total gain or losses included in earnings | 192,098 | — | 400,741 | (2,581) | (14,639) | 24,525 | |||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | (2,488,497) | — | (2,523,213) | (142,790) | (6,884) | — | |||||||||||||||||||||||||||||||||||
Settlements | 1,933,916 | 8,000 | 1,454,159 | 96,765 | 104,158 | — | |||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Ending balance | $ | (10,784,841) | $ | (4,852) | $ | (6,525,382) | $ | (160,344) | $ | (59,800) | $ | (4,855) |
Successor | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Loans held for investment | Loans held for investment, subject to nonrecourse debt | Loans held for sale | Derivative assets | MSRs | Retained Bonds | Investments | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 11,541,117 | $ | 5,424,621 | $ | 160,888 | $ | 35,483 | $ | 290,938 | $ | 15,671 | $ | 9,470 | |||||||||||||||||||||||||||
Total gain or losses included in earnings | (10,328) | 40,355 | 386 | (5,198) | (2,031) | 839 | (3,470) | ||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 1,402,360 | 27,857 | 284,650 | — | 54,543 | 24,762 | — | ||||||||||||||||||||||||||||||||||
Sales and settlements | (738,913) | (366,177) | (250,058) | (1,110) | (2,501) | (22) | — | ||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (769,107) | 812,995 | (37,059) | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 11,425,129 | $ | 5,939,651 | $ | 158,807 | $ | 29,175 | $ | 340,949 | $ | 41,250 | $ | 6,000 |
Successor | |||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | HMBS related obligations | Derivative liabilities | Deferred purchase price liabilities | Nonrecourse debt in VIE trusts | Nonrecourse MSR financing liability | TRA Liability | |||||||||||||||||||||||||||||
Beginning balance | $ | (10,168,224) | $ | (1,111) | $ | (11,663) | $ | (5,360,603) | $ | (65,129) | $ | (32,810) | |||||||||||||||||||||||
Total gain or losses included in earnings | 121,048 | 275 | (237) | (45,116) | (712) | (1,036) | |||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||
Purchases and additions, net | (792,569) | — | (275) | (464,209) | (30,232) | (1,296) | |||||||||||||||||||||||||||||
Settlements | 623,435 | 836 | — | 134,918 | — | — | |||||||||||||||||||||||||||||
Transfers in/(out) between categories | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Ending balance | $ | (10,216,310) | $ | — | $ | (12,175) | $ | (5,735,010) | $ | (96,073) | $ | (35,142) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Successor | |||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||
Six months ended September 30, 2021 | Loans held for investment | Loans held for investment, subject to nonrecourse debt | Loans held for sale | Derivative assets | MSRs | Retained Bonds | Investments | ||||||||||||||||||||||||||||||||||
Beginning balance | $ | 11,171,736 | $ | 5,291,444 | $ | 135,681 | $ | 38,574 | $ | 267,364 | $ | — | $ | 9,470 | |||||||||||||||||||||||||||
Total gain or losses included in earnings | 143,362 | 120,763 | 2,202 | (8,264) | (28,567) | 1,505 | (3,470) | ||||||||||||||||||||||||||||||||||
Purchases, settlements, and transfers: | |||||||||||||||||||||||||||||||||||||||||
Purchases and additions, net | 2,831,336 | 49,898 | 541,088 | — | 104,653 | 39,840 | — | ||||||||||||||||||||||||||||||||||
Sales and settlements | (1,354,871) | (888,318) | (526,014) | (1,135) | (2,501) | (95) | — | ||||||||||||||||||||||||||||||||||
Transfers in/(out) between categories | (1,366,434) | 1,365,864 | 5,850 | — | — | — | — | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 11,425,129 | $ | 5,939,651 | $ | 158,807 | $ | 29,175 | $ | 340,949 | $ | 41,250 | $ | 6,000 |
Successor | |||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Six months ended September 30, 2021 | HMBS related obligations | Derivative liabilities | Deferred purchase price liabilities | Nonrecourse debt in VIE trusts | Nonrecourse MSR financing liability | TRA Liability | |||||||||||||||||||||||||||||
Beginning balance | $ | (9,926,132) | $ | (936) | $ | (3,214) | $ | (5,205,892) | $ | (22,051) | $ | — | |||||||||||||||||||||||
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 | — | — | |||||||||||||||||||||||||||||
Ending balance | $ | (10,216,310) | $ | — | $ | (12,175) | $ | (5,735,010) | $ | (96,073) | $ | (35,142) |
Predecessor | |||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Three months ended 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 | $ | 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 | $ | 11,171,736 | $ | 5,291,444 | $ | 135,681 | $ | 38,574 | $ | 267,364 | $ | 9,470 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 | |||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | HMBS related obligations | Derivative liabilities | Deferred purchase price liability | Nonrecourse debt in VIE trusts | Nonrecourse MSR financing liability | ||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | (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) | ||||||||||||||||||||||||||||||||||||||||||
Settlements | 506,142 | 148 | 657 | 658,300 | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | (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 | ) | |||||
Successor: | ||||||||||||||||||||||
September 30, 2021 | Estimated Fair Value | Unpaid Principal Balance | ||||||||||||||||||||
September 30, 2022 | September 30, 2022 | Estimated Fair Value | Unpaid Principal Balance | |||||||||||||||||||
Assets at fair value under the fair value option | 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: | ||||||||||||||||||||||
Loans held for investment, subject to HMBS related obligations | Loans held for investment, subject to HMBS related obligations | $ | 10,916,551 | $ | 10,609,500 | |||||||||||||||||
Loans held for investment, subject to nonrecourse debt: | Loans held for investment, subject to nonrecourse debt: | |||||||||||||||||||||
Reverse mortgage loans | 5,665,424 | 4,986,876 | Reverse mortgage loans | 6,285,773 | 6,501,202 | |||||||||||||||||
Commercial mortgage loans | 274,227 | 268,288 | Commercial mortgage loans | 455,618 | 457,525 | |||||||||||||||||
Mortgage loans held for investment: | ||||||||||||||||||||||
Loans held for investment: | Loans held for investment: | |||||||||||||||||||||
Reverse mortgage loans | 842,268 | 721,012 | Reverse mortgage loans | 1,126,483 | 1,078,048 | |||||||||||||||||
Commercial mortgage loans | 235,402 | 233,101 | Commercial mortgage loans | 180,930 | 181,001 | |||||||||||||||||
Mortgage loans held for sale: | ||||||||||||||||||||||
Loans held for sale: | Loans held for sale: | |||||||||||||||||||||
Residential mortgage loans | 1,904,109 | 1,859,842 | Residential mortgage loans | 629,877 | 648,123 | |||||||||||||||||
Commercial mortgage loans | 142,906 | 138,101 | Commercial mortgage loans | 229,773 | 235,789 | |||||||||||||||||
Liabilities at fair value under the fair value option | Liabilities at fair value under the fair value option | |||||||||||||||||||||
HMBS related obligations | 10,216,310 | 9,617,079 | HMBS related obligations | 10,784,841 | 10,587,475 | |||||||||||||||||
Nonrecourse debt: | Nonrecourse debt: | |||||||||||||||||||||
Nonrecourse debt in VIE trusts | 5,735,010 | 5,654,826 | ||||||||||||||||||||
Nonrecourse debt in consolidated VIE trusts | Nonrecourse debt in consolidated VIE trusts | 6,525,382 | 7,114,952 | |||||||||||||||||||
Nonrecourse MSR financing liability | Nonrecourse MSR financing liability | 59,800 | 59,800 | |||||||||||||||||||
Nonrecourse commercial loan financing liability | Nonrecourse commercial loan financing liability | 160,344 | 153,770 |
Predecessor: | ||||||||
December 31, 2020 | 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: | ||||||||
Reverse mortgage loans | 5,057,624 | 4,457,805 | ||||||
Commercial mortgage loans | 338,543 | 333,344 | ||||||
Mortgage loans held for investment: | ||||||||
Reverse mortgage loans | 661,790 | 589,429 | ||||||
Commercial mortgage loans | 69,031 | 69,127 | ||||||
Mortgage loans held for sale: | ||||||||
Residential mortgage loans | 2,080,585 | 2,000,795 | ||||||
Commercial mortgage loans | 142,226 | 140,693 | ||||||
Liabilities at fair value under the fair value option | ||||||||
HMBS related obligations | 9,788,668 | 9,045,104 | ||||||
Nonrecourse debt: | ||||||||
Nonrecourse debt in VIE trusts | 5,257,754 | 5,155,017 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 | 940,604 | 815,426 | ||||||||||||
Commercial mortgage loans | 90,724 | 89,267 | ||||||||||||
Loans held for sale: | ||||||||||||||
Residential mortgage loans | 1,902,952 | 1,859,788 | ||||||||||||
Commercial mortgage loans | 149,426 | 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, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||
Successor | Predecessor | ||||||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations: | |||||||||||||||||||||||||||||||||||||||||
Interest income on reverse and commercial loans | $ | 228,896 | $ | 582,350 | $ | 160,683 | $ | 334,623 | $ | 160,568 | |||||||||||||||||||||||||||||||
Change in fair value of loans | (486,206) | (1,463,351) | (119,690) | (34,707) | (51,346) | ||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans | (257,310) | (881,001) | 40,993 | 299,916 | 109,222 | ||||||||||||||||||||||||||||||||||||
Interest expense on HMBS and nonrecourse obligations | (149,200) | (380,446) | (107,593) | (221,067) | (119,201) | ||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives | 64,693 | 330,200 | 6,841 | (39,637) | 43,972 | ||||||||||||||||||||||||||||||||||||
Change in fair value of related obligations | 335,441 | 936,919 | 182,268 | 214,448 | 42,670 | ||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on related obligations | 250,934 | 886,673 | 81,516 | (46,256) | (32,559) | ||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | $ | (6,376) | $ | 5,672 | $ | 122,509 | $ | 253,660 | $ | 76,663 |
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 | ||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||
Reverse mortgage loans: | ||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 10,609,500 | $ | 9,849,835 | ||||||||||
Reverse mortgage loans held for investment: | ||||||||||||||
Non-agency reverse mortgages | 839,877 | 432,144 | ||||||||||||
Loans not securitized(1) | 137,477 | 266,723 | ||||||||||||
Unpoolable loans(2) | 91,286 | 104,551 | ||||||||||||
Unpoolable tails | 9,408 | 12,008 | ||||||||||||
Total reverse mortgage loans held for investment | 1,078,048 | 815,426 | ||||||||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||
Performing HECM buyouts | 320,625 | 289,089 | ||||||||||||
Nonperforming HECM buyouts | 584,206 | 590,729 | ||||||||||||
Non-agency reverse mortgages | 5,596,371 | 4,285,661 | ||||||||||||
Total reverse mortgage loans held for investment, subject to nonrecourse debt | 6,501,202 | 5,165,479 | ||||||||||||
Total owned reverse mortgage portfolio | 18,188,750 | 15,830,740 | ||||||||||||
Loans reclassified as government guaranteed receivable | 67,706 | 48,625 | ||||||||||||
Loans serviced for others | 12,991 | 17,840 | ||||||||||||
Total serviced reverse mortgage loan portfolio | $ | 18,269,447 | $ | 15,897,205 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Reverse mortgage loans: | ||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 9,617,079 | $ | 9,045,104 | ||||
Reverse mortgage loans held for investment: | ||||||||
Non-agency reverse mortgages | 346,705 | 215,688 | ||||||
Loans not securitized (1) | 270,273 | 168,292 | ||||||
Unpoolable loans (2) | 93,459 | 197,395 | ||||||
Unpoolable tails | 10,575 | 8,054 | ||||||
Total reverse mortgage loans held for investment | 721,012 | 589,429 | ||||||
Reverse mortgage loans held for investment, subject to nonrecourse debt: | ||||||||
Performing HECM buyouts | 276,351 | 141,691 | ||||||
Nonperforming HECM buyouts | 614,824 | 538,768 | ||||||
Non-agency reverse mortgages | 4,095,701 | 3,777,346 | ||||||
Total reverse mortgage loans held for investment, subject to nonrecourse debt | 4,986,876 | 4,457,805 | ||||||
Total owned reverse mortgage portfolio | 15,324,967 | 14,092,338 | ||||||
Loans reclassified as government guaranteed receivable | 44,333 | 49,255 | ||||||
Loans serviced for others | 18,281 | 123,324 | ||||||
Total serviced reverse mortgage loan portfolio | $ | 15,387,581 | $ | 14,264,917 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Fixed rate loans | $ | 5,266,718 | $ | 5,010,659 | ||||
Adjustable rate loans | 10,058,249 | 9,081,679 | ||||||
�� | ||||||||
Total owned reverse mortgage portfolio | $ | 15,324,967 | $ | 14,092,338 | ||||
September 30, 2022 | December 31, 2021 | |||||||||||||
Fixed rate loans | $ | 6,364,867 | $ | 5,384,865 | ||||||||||
Adjustable rate loans | 11,823,883 | 10,445,875 | ||||||||||||
Total owned reverse mortgage portfolio | $ | 18,188,750 | $ | 15,830,740 |
Finance of America Companies Inc. and Subsidiaries Notes to |
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans held for investment, subject to HMBS related obligations - UPB | $ | 10,609,500 | $ | 9,849,835 | ||||||||||
Fair value adjustments | 307,051 | 706,219 | ||||||||||||
Total loans held for investment, subject to HMBS related obligations, at fair value | $ | 10,916,551 | $ | 10,556,054 |
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 | ||||
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans held for investment, subject to nonrecourse debt - UPB: | ||||||||||||||
Reverse mortgage loans | $ | 6,501,202 | $ | 5,165,479 | ||||||||||
Commercial mortgage loans | 457,525 | 388,788 | ||||||||||||
Fair value adjustments | (217,336) | 663,927 | ||||||||||||
Total loans held for investment, subject to nonrecourse debt, at fair value | $ | 6,741,391 | $ | 6,218,194 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Mortgage loans held for investment, subject to nonrecourse debt - UPB: | ||||||||
Reverse mortgage loans | $ | 4,986,876 | $ | 4,457,805 | ||||
Commercial mortgage loans | 268,288 | 333,344 | ||||||
Fair value adjustments | 684,487 | 605,018 | ||||||
Total mortgage loans held for investment, subject to nonrecourse debt, at fair value | $ | 5,939,651 | $ | 5,396,167 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Loans 90 days or more past due and on non-accrual status | ||||||||
Fair value: | ||||||||
Commercial mortgage loans | $ | 30,720 | $ | 32,377 | ||||
Total fair value | 30,720 | 32,377 | ||||||
Aggregate UPB: | ||||||||
Commercial mortgage loans | 30,871 | 33,888 | ||||||
Total aggregate UPB | 30,871 | 33,888 | ||||||
Difference | $ | (151 | ) | $ | (1,511 | ) | ||
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans 90 days or more past due and on non-accrual status | ||||||||||||||
Fair value: | ||||||||||||||
Commercial mortgage loans | $ | 17,255 | $ | 26,081 | ||||||||||
Total fair value | 17,255 | 26,081 | ||||||||||||
Aggregate UPB: | ||||||||||||||
Commercial mortgage loans | 18,234 | 26,472 | ||||||||||||
Total aggregate UPB | 18,234 | 26,472 | ||||||||||||
Difference | $ | (979) | $ | (391) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans held for investment - UPB: | ||||||||||||||
Reverse mortgage loans | $ | 1,078,048 | $ | 815,426 | ||||||||||
Commercial mortgage loans | 181,001 | 89,267 | ||||||||||||
Fair value adjustments | 48,364 | 126,635 | ||||||||||||
Total loans held for investment, at fair value | $ | 1,307,413 | $ | 1,031,328 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Mortgage loans held for investment - UPB: | ||||||||
Reverse mortgage loans | $ | 721,012 | $ | 589,429 | ||||
Commercial mortgage loans | 233,101 | 69,127 | ||||||
Fair value adjustments | 123,557 | 72,265 | ||||||
Total mortgage loans held for investment, at fair value | $ | 1,077,670 | $ | 730,821 | ||||
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans held for sale - UPB: | ||||||||||||||
Residential mortgage and home improvement loans | $ | 648,123 | $ | 1,859,788 | ||||||||||
Commercial mortgage loans | 235,789 | 145,463 | ||||||||||||
Fair value adjustments | (24,262) | 47,127 | ||||||||||||
Total loans held for sale, at fair value | $ | 859,650 | $ | 2,052,378 |
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 | ||||
September 30, 2022 | December 31, 2021 | |||||||||||||
Loans 90 days or more past due and on non-accrual status | ||||||||||||||
Fair value: | ||||||||||||||
Residential mortgage and home improvement loans | $ | 5,493 | $ | 3,195 | ||||||||||
Commercial mortgage loans | 4,338 | 3,163 | ||||||||||||
Total fair value | 9,831 | 6,358 | ||||||||||||
Aggregate UPB: | ||||||||||||||
Residential mortgage loans | 6,191 | 3,753 | ||||||||||||
Commercial mortgage loans | 5,099 | 3,323 | ||||||||||||
Total aggregate UPB | 11,290 | 7,076 | ||||||||||||
Difference | $ | (1,459) | $ | (718) |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Loans 90 days or more past due and on non-accrual status | ||||||||
Fair value: | ||||||||
Residential mortgage loans | $ | 3,256 | $ | 10,628 | ||||
Commercial mortgage loans | 2,952 | 5,051 | ||||||
Total fair value | 6,208 | 15,679 | ||||||
Aggregate UPB: | ||||||||
Residential mortgage loans | 3,905 | 13,236 | ||||||
Commercial mortgage loans | 3,141 | 5,317 | ||||||
Total aggregate UPB | 7,046 | 18,553 | ||||||
Difference | $ | (838 | ) | $ | (2,874 | ) | ||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,229,594 | $ | 2,052,378 | $ | 2,057,542 | $ | 2,140,361 | $ | 2,222,811 | ||||||||||||||||||||||||||||
Originations/purchases/repurchases | 2,888,128 | 12,975,131 | 7,717,616 | 14,827,573 | 8,569,575 | |||||||||||||||||||||||||||||||||
Proceeds from sales | (3,268,201) | (14,280,522) | (7,887,849) | (15,293,145) | (8,878,131) | |||||||||||||||||||||||||||||||||
Loans acquired through business combinations | — | — | — | — | 35,226 | |||||||||||||||||||||||||||||||||
Net transfers (to) from loans held for investment | — | — | (10,460) | 7,034 | — | |||||||||||||||||||||||||||||||||
Gain on loans held for sale, net | 10,287 | 122,641 | 174,655 | 368,884 | 188,564 | |||||||||||||||||||||||||||||||||
Net fair value gain (loss) on loans held for sale | (158) | (9,978) | 158 | 955 | 2,316 | |||||||||||||||||||||||||||||||||
Ending balance | $ | 859,650 | $ | 859,650 | $ | 2,051,662 | $ | 2,051,662 | $ | 2,140,361 |
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 | ||||||||||||||||
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 |
10. Mortgage Servicing Rights, at Fair Value |
September 30, 2022 | December 31, 2021 | ||||||||||
Fannie Mae/Freddie Mac | $ | 7,207,398 | $ | 37,079,995 | |||||||
Ginnie Mae | 535,952 | 1,109,962 | |||||||||
Private investors | 1,030,666 | 1,109,459 | |||||||||
Total UPB | $ | 8,774,016 | $ | 39,299,416 | |||||||
Weighted average interest rate | 3.55 | % | 3.03 | % |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Fannie Mae/Freddie Mac | $ | 33,034,877 | $ | 20,501,504 | ||||
Ginnie Mae | 235,279 | 1,727,831 | ||||||
Private investors | 820,959 | 40,027 | ||||||
Total UPB | $ | 34,091,115 | $ | 22,269,362 | ||||
Weighted average interest rate | 3.0 | % | 3.1 | % |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||
Beginning UPB | $ | 29,494,649 | $ | 39,299,416 | $ | 30,592,187 | $ | 26,675,358 | $ | 22,269,362 | ||||||||||||||||||||||||||||||||||
Originated MSRs | 1,788,998 | 9,421,902 | 5,380,307 | 10,520,166 | 6,312,227 | |||||||||||||||||||||||||||||||||||||||
Purchased MSRs | — | — | 228,470 | 234,007 | 866,806 | |||||||||||||||||||||||||||||||||||||||
Sold MSRs | (22,037,083) | (37,529,103) | (320,028) | (320,028) | (1,090,267) | |||||||||||||||||||||||||||||||||||||||
Portfolio runoff | (281,332) | (1,611,107) | (1,506,451) | (2,493,506) | (1,488,977) | |||||||||||||||||||||||||||||||||||||||
Other | (191,216) | (807,092) | (283,370) | (524,882) | (193,793) | |||||||||||||||||||||||||||||||||||||||
Ending UPB | $ | 8,774,016 | $ | 8,774,016 | $ | 34,091,115 | $ | 34,091,115 | $ | 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 | ||||||||||||||||
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 | ||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 359,006 | $ | 427,942 | $ | 290,938 | $ | 267,364 | $ | 180,684 | ||||||||||||||||||||||||||||
Originations | 20,241 | 114,903 | 52,252 | 102,301 | 65,964 | |||||||||||||||||||||||||||||||||
Purchases | — | — | 2,291 | 2,352 | 9,014 | |||||||||||||||||||||||||||||||||
Sales | (266,723) | (470,018) | (2,501) | (2,501) | (8,647) | |||||||||||||||||||||||||||||||||
Changes in fair value due to: | ||||||||||||||||||||||||||||||||||||||
Changes in market inputs or assumptions used in valuation model | (4,382) | 56,938 | 13,165 | (2,886) | 35,109 | |||||||||||||||||||||||||||||||||
Changes in fair value due to portfolio runoff and other | (5,073) | (26,696) | (15,196) | (25,681) | (14,760) | |||||||||||||||||||||||||||||||||
Ending balance | $ | 103,069 | $ | 103,069 | $ | 340,949 | $ | 340,949 | $ | 267,364 |
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 | $ | 290,938 | $ | 267,364 | $ | 180,684 | $ | 42,684 | $ | 2,600 | ||||||||||
Originations | 52,252 | 102,301 | 65,964 | 53,401 | 98,256 | |||||||||||||||
Purchases | 2,291 | 2,352 | 9,014 | — | — | |||||||||||||||
Sales | (2,501 | ) | (2,501 | ) | (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 | ||||||||||||||
Changes in fair value due to portfolio runoff and other | (15,196 | ) | (25,681 | ) | (14,760 | ) | (3,716 | ) | (5,063 | ) | ||||||||||
Ending balance | $ | 340,949 | $ | 340,949 | $ | 267,364 | $ | 100,539 | $ | 100,539 | ||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
Number of Loans | Unpaid Principal Balance | Number of Loans | Unpaid Principal Balance | ||||||||||||||||||||
Portfolio delinquency | |||||||||||||||||||||||
30 days | 1.1 | % | 0.9 | % | 0.4 | % | 0.3 | % | |||||||||||||||
60 days | 0.2 | % | 0.2 | % | 0.1 | % | 0.0 | % | |||||||||||||||
90 or more days | 0.6 | % | 0.5 | % | 0.1 | % | 0.1 | % | |||||||||||||||
Total | 1.9 | % | 1.6 | % | 0.6 | % | 0.4 | % | |||||||||||||||
Foreclosure/real estate owned | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % |
September 30, 2021 | December 31, 2020 | |||||||||||||||
Successor | Predecessor | |||||||||||||||
Number of Loans | Unpaid Balance | Number of Loans | Unpaid Balance | |||||||||||||
Portfolio delinquency | ||||||||||||||||
30 days | 0.4 | % | 0.4 | % | 0.5 | % | 0.5 | % | ||||||||
60 days | 0.0 | % | 0.0 | % | 0.1 | % | 0.1 | % | ||||||||
90 or more days | 0.1 | % | 0.1 | % | 0.2 | % | 0.1 | % | ||||||||
Total | 0.5 | % | 0.5 | % | 0.8 | % | 0.7 | % | ||||||||
Foreclosure/real estate owned | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
11. Derivative and Risk Management Activities |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | ||||||||||||||||||||||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||||||||||||||
Fair value | Notional amount | Fair value | Notional amount | |||||||||||||||||||||||||||||
IRLCs and LPCs | $ | 3,678 | $ | 344,617 | $ | 13,740 | $ | 590,007 | ||||||||||||||||||||||||
Forward MBS and TBAs | 32,254 | 1,162,300 | 97 | 15,071 | ||||||||||||||||||||||||||||
Interest rate swaps and futures contracts | 53,967 | 1,430,600 | — | — | ||||||||||||||||||||||||||||
Total fair value and notional amount | $ | 89,899 | $ | 2,937,517 | $ | 13,837 | $ | 605,078 |
September 30, 2021 | ||||||||||||||||||||||||
Successor | ||||||||||||||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||||||
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 | |||||||||||||||||
Interest rate swaps and futures contracts | 12,607 | 1,260,400 | 9,924 | 10,617 | 1,108,700 | (9,862 | ) | |||||||||||||||||
Forward MBS | 12,237 | 2,391,000 | 12,238 | 1,061 | 458,500 | 17,574 | ||||||||||||||||||
Net fair value of derivative financial instruments | $ | 54,993 | $ | 9,388,981 | $ | (37,071 | ) | $ | 11,783 | $ | 4,447,200 | $ | 8,939 | |||||||||||
December 31, 2021 | ||||||||||||||||||||||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||||||||||||||
Fair value | Notional amount | Fair value | Notional amount | |||||||||||||||||||||||||||||
IRLCs and LPCs | $ | 24,786 | $ | 2,095,238 | $ | — | $ | — | ||||||||||||||||||||||||
Forward MBS and TBAs | 1,250 | 948,000 | 1,685 | 1,515,000 | ||||||||||||||||||||||||||||
Interest rate swaps and futures contracts | 22,834 | 11,977,300 | 24,993 | 12,193,100 | ||||||||||||||||||||||||||||
Total fair value and notional amount | $ | 48,870 | $ | 15,020,538 | $ | 26,678 | $ | 13,708,100 |
December 31, 2020 | ||||||||||||||||||||||||
Predecessor | ||||||||||||||||||||||||
Derivative assets | Derivative liabilities | |||||||||||||||||||||||
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 | ) | |||||||||||||||||
Interest rate swaps and futures contracts | 2,683 | 1,386,400 | 2,324 | 755 | 744,500 | (617 | ) | |||||||||||||||||
Forward MBS | — | — | (348 | ) | 18,635 | 3,187,000 | (16,587 | ) | ||||||||||||||||
Net fair value of derivative financial instruments | $ | 92,065 | $ | 4,683,491 | $ | 76,512 | $ | 20,722 | $ | 4,334,744 | $ | (18,384 | ) | |||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | |||||||||||||||||||||||||||||||
Derivative activity | Successor | Predecessor | |||||||||||||||||||||||||||||||||
IRLCs and LPCs | $ | (24,189) | $ | (34,848) | $ | (5,119) | $ | (8,656) | $ | (49,557) | |||||||||||||||||||||||||
Forward MBS and TBAs | 54,856 | 265,822 | (8,349) | (48,638) | 113,331 | ||||||||||||||||||||||||||||||
Interest rate swaps and futures contracts | 53,123 | 292,666 | 1,254 | (36,129) | 43,935 | ||||||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | Estimated Useful Life | |||||||||||||||
Computer hardware and software | $ | 23,482 | $ | 28,726 | 3 - 5 years | ||||||||||||
Furniture and fixtures | 3,587 | 4,450 | 5 - 7 years | ||||||||||||||
Leasehold improvements | 3,324 | 4,217 | * | ||||||||||||||
Buildings and land | 164 | 164 | 10 years | ||||||||||||||
Vehicles | 37 | 48 | 10 years | ||||||||||||||
Total fixed assets | 30,594 | 37,605 | |||||||||||||||
Less: Accumulated depreciation and amortization | (10,766) | (8,349) | |||||||||||||||
Total fixed assets and leasehold improvements, net | $ | 19,828 | $ | 29,256 |
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 | ||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | Amortization Period (Years) | Cost | Accumulated Amortization | Impairment | Net | |||||||||||||||||||||||||||
Non-amortizing intangibles | ||||||||||||||||||||||||||||||||
Trade name | N/A | $ | 91,600 | $ | — | $ | (51,200) | $ | 40,400 | |||||||||||||||||||||||
Total non-amortizing intangibles | $ | 91,600 | $ | — | $ | (51,200) | $ | 40,400 | ||||||||||||||||||||||||
Amortizing intangibles | ||||||||||||||||||||||||||||||||
Broker/customer relationships | 8 - 15 | $ | 541,100 | $ | (80,736) | $ | (70,464) | $ | 389,900 | |||||||||||||||||||||||
Trade names and other | 5 - 10 | 10,937 | (1,425) | (1,512) | 8,000 | |||||||||||||||||||||||||||
Total amortizing intangibles | $ | 552,037 | $ | (82,161) | $ | (71,976) | $ | 397,900 | ||||||||||||||||||||||||
Total intangibles | $ | 643,637 | $ | (82,161) | $ | (123,176) | $ | 438,300 |
December 31, 2021 | Amortization Period (Years) | Cost | Accumulated Amortization | Impairment | Net | |||||||||||||||||||||||||||
Non-amortizing intangibles | ||||||||||||||||||||||||||||||||
Trade name | N/A | $ | 178,000 | $ | — | $ | (86,400) | $ | 91,600 | |||||||||||||||||||||||
Total non-amortizing intangibles | $ | 178,000 | $ | — | $ | (86,400) | $ | 91,600 | ||||||||||||||||||||||||
Amortizing intangibles | ||||||||||||||||||||||||||||||||
Broker/customer relationships | 8 - 15 | $ | 541,100 | $ | (39,711) | $ | — | $ | 501,389 | |||||||||||||||||||||||
Trade names and other | 5 - 10 | 10,937 | (1,026) | — | 9,911 | |||||||||||||||||||||||||||
Total amortizing intangibles | $ | 552,037 | $ | (40,737) | $ | — | $ | 511,300 | ||||||||||||||||||||||||
Total intangibles | $ | 730,037 | $ | (40,737) | $ | (86,400) | $ | 602,900 |
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 | |||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 | |||||||
Remainder of 2022 | $ | 11,862 | ||||||
2023 | 47,446 | |||||||
2024 | 47,446 | |||||||
2025 | 47,446 | |||||||
2026 | 47,433 | |||||||
Thereafter | 196,267 | |||||||
Total future amortization expense | $ | 397,900 |
Year Ending December 31, | Amount | |||
2021 | $ | 13,552 | ||
2022 | 54,206 | |||
2023 | 54,206 | |||
2024 | 54,206 | |||
2025 | 54,206 | |||
Thereafter | 284,300 | |||
Total future amortization expense | $ | 514,676 | ||
14. HMBS Related Obligations, at Fair Value |
September 30, 2022 | December 31, 2021 | |||||||||||||
Ginnie Mae loan pools - UPB | $ | 10,587,475 | $ | 9,849,835 | ||||||||||
Fair value adjustments | 197,366 | 572,523 | ||||||||||||
Total HMBS related obligations, at fair value | $ | 10,784,841 | $ | 10,422,358 | ||||||||||
Weighted average remaining life (in years) | 3.9 | 4.6 | ||||||||||||
Weighted average interest rate | 4.1 | % | 2.5 | % |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Ginnie Mae loan pools - UPB | $ | 9,617,079 | $ | 9,045,104 | ||||
Fair value adjustments | 599,231 | 743,564 | ||||||
Total HMBS related obligations, at fair value | $ | 10,216,310 | $ | 9,788,668 | ||||
Weighted average remaining life | 4.4 | 4.5 | ||||||
Weighted average interest rate | 2.5 | % | 3.0 | % |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Issue Date | Final Maturity Date | Interest Rate | Original Issue Amount | September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||
Securitization of performing / nonperforming HECM loans | July 2020 - August 2022 | July 2030 - August 2032 | 2.69% - 9.32% | $ | 2,250,554 | $ | 994,563 | $ | 922,970 | ||||||||||||||||||||||||||
Securitization of non-agency reverse loans | May 2018 - June 2022 | March 2050 - November 2069 | 1.25% - 4.50% | 7,537,674 | 5,851,878 | 4,630,203 | |||||||||||||||||||||||||||||
Securitization of Fix & Flip loans | April 2021 | May 2025 | 2.10% - 5.40% | $ | 268,511 | 268,511 | 268,511 | ||||||||||||||||||||||||||||
Total consolidated VIE nonrecourse debt UPB | 7,114,952 | 5,821,684 | |||||||||||||||||||||||||||||||||
Nonrecourse MSR financing liability, at fair value(1) | 59,800 | 142,435 | |||||||||||||||||||||||||||||||||
Nonrecourse commercial loan financing liability(2) | 153,770 | 107,744 | |||||||||||||||||||||||||||||||||
Fair value adjustments | (582,996) | 39,379 | |||||||||||||||||||||||||||||||||
Total nonrecourse debt, at fair value | $ | 6,745,526 | $ | 6,111,242 |
Year Ending December 31, | Estimated Maturities(1) | |||||||
Remainder of 2022 | $ | 309,549 | ||||||
2023 | 1,660,548 | |||||||
2024 | 1,977,994 | |||||||
2025 | 262,030 | |||||||
2026 | 3,058,601 | |||||||
Thereafter | — | |||||||
Total payments on nonrecourse debt | $ | 7,268,722 |
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 | ||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Outstanding Borrowings at | ||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | Outstanding borrowings at | ||||||||||||||||||||||||||||||||||||||||||||||||||
Maturity Date | Interest Rate | Collateral Pledged | Total Capacity (1) | Successor | Predecessor | Maturity Date | Interest Rate | Collateral Pledged | Total Capacity(1) | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Mortgage Lines: | Mortgage Lines: | |||||||||||||||||||||||||||||||||||||||||||||||||||
October 2021 - June 2023 (2) | LIBOR + applicable margin | | First Lien Mortgages | | $ | 3,575,000 | $ | 1,783,544 | $ | 1,997,464 | ||||||||||||||||||||||||||||||||||||||||||
October 2022 -August 2023 | October 2022 -August 2023 | SOFR + applicable margin | First Lien Mortgages | $ | 2,000,000 | $ | 601,635 | $ | 1,802,348 | |||||||||||||||||||||||||||||||||||||||||||
March 2026 | LIBOR + applicable margin | | MSRs | 150,000 | 117,736 | 0 | March 2026 | Ameribor + applicable margin | MSRs | 50,000 | 10,227 | 138,524 | ||||||||||||||||||||||||||||||||||||||||
December 2021 - November 2022 | LIBOR + applicable margin | | Mortgage Related Assets | | 87,106 | 69,877 | 0 | |||||||||||||||||||||||||||||||||||||||||||||
November 2022 - December 2022 | November 2022 - December 2022 | SOFR + applicable margin | Mortgage Related Assets | 39,065 | 39,065 | 50,559 | ||||||||||||||||||||||||||||||||||||||||||||||
November 2022 | November 2022 | SOFR + applicable margin | HI Consumer Loans | 50,000 | 11,770 | 5,107 | ||||||||||||||||||||||||||||||||||||||||||||||
Subtotal mortgage lines of credit | Subtotal mortgage lines of credit | $ | 3,812,106 | $ | 1,971,157 | $ | 1,997,464 | Subtotal mortgage lines of credit | $ | 2,139,065 | $ | 662,697 | $ | 1,996,538 | ||||||||||||||||||||||||||||||||||||||
Reverse Lines: | Reverse Lines: | |||||||||||||||||||||||||||||||||||||||||||||||||||
October 2021 - August 2022 (2) | LIBOR + applicable margin | | First Lien Mortgages | | $ | 1,200,000 | $ | 620,418 | $ | 477,637 | ||||||||||||||||||||||||||||||||||||||||||
April 2022 - September 2023 | | Bond accrual rate + applicable margin | | Mortgage Related Assets | | 398,719 | 278,924 | 252,880 | ||||||||||||||||||||||||||||||||||||||||||||
February 2024 | LIBOR + applicable margin | | MSRs | 90,000 | 88,072 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||
April 2022 | Prime + .50%; 6% floor | | Unsecuritized Tails | | 50,000 | 40,954 | 37,442 | |||||||||||||||||||||||||||||||||||||||||||||
November 2022 - September 2023 | November 2022 - September 2023 | LIBOR + applicable margin | First Lien Mortgages | $ | 1,475,000 | $ | 935,434 | $ | 714,013 | |||||||||||||||||||||||||||||||||||||||||||
October 2022 | October 2022 | Bond accrual rate + applicable margin | Mortgage Related Assets | 345,000 | 292,524 | 297,893 | ||||||||||||||||||||||||||||||||||||||||||||||
N/A | N/A | LIBOR + applicable margin | MSRs | — | — | 78,952 | ||||||||||||||||||||||||||||||||||||||||||||||
May 2023 | May 2023 | Prime + .50%; 6% floor | Unsecuritized Tails | 50,000 | 40,000 | 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 | $ | 1,870,000 | $ | 1,267,958 | $ | 1,129,402 | ||||||||||||||||||||||||||||||||||||||
Commercial Lines: | 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 | ||||||||||||||||||||||||||||||||||||||||||||
August 2022 | 10% | Second Lien Mortgages | | 25,000 | 21,701 | 21,475 | ||||||||||||||||||||||||||||||||||||||||||||||
N/A | LIBOR + applicable margin | | Mortgage Related Assets | | 1,509 | 1,509 | 6,411 | |||||||||||||||||||||||||||||||||||||||||||||
August 2023 | August 2023 | 2.50% / 3.25% | Encumbered Agricultural Loans | $ | 75,000 | $ | 27,310 | $ | 25,127 | |||||||||||||||||||||||||||||||||||||||||||
April 2023 - November 2023 | April 2023 - November 2023 | Ameribor + applicable margin | First Lien Mortgages | 309,000 | 290,534 | 167,159 | ||||||||||||||||||||||||||||||||||||||||||||||
February 2023 | February 2023 | 15% | Second Lien Mortgages | 45,000 | 45,000 | 24,175 | ||||||||||||||||||||||||||||||||||||||||||||||
January 2024 | January 2024 | SOFR + applicable margin | Mortgage Related Assets | 12,500 | 12,500 | 5,041 | ||||||||||||||||||||||||||||||||||||||||||||||
Subtotal commercial lines of credit | Subtotal commercial lines of credit | $ | 761,509 | $ | 325,631 | $ | 208,320 | Subtotal commercial lines of credit | $ | 441,500 | $ | 375,344 | $ | 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 | $ | 4,450,565 | $ | 2,305,999 | $ | 3,347,442 | ||||||||||||||||||||||||||||||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Financial Covenants | Requirement | September 30, 2022 | Maximum Allowable Distribution(1) | |||||||||||||||||
FAM | ||||||||||||||||||||
Adjusted Tangible Net Worth(2) | $ | 150,000 | $ | 174,785 | $ | 24,785 | ||||||||||||||
Liquidity | 55,000 | 66,098 | 11,098 | |||||||||||||||||
Leverage Ratio | 13:1 | 8.9:1 | 55,118 | |||||||||||||||||
Material Decline in Lender Adjusted Net Worth: | ||||||||||||||||||||
Lender Adjusted Tangible Net Worth (Quarterly requirement)(3) | $ | 170,459 | $ | 174,785 | $ | 4,326 | ||||||||||||||
Lender Adjusted Tangible Net Worth (Two-Consecutive Quarterly requirement)(3) | 174,734 | 174,785 | 51 | |||||||||||||||||
FAR | ||||||||||||||||||||
Adjusted Tangible Net Worth(2) | $ | 250,000 | $ | 250,750 | $ | 750 | ||||||||||||||
Liquidity | 20,000 | 69,951 | 49,951 | |||||||||||||||||
Leverage Ratio | 7:1 | 6.2:1 | 30,765 | |||||||||||||||||
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 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 | |||||||||||||||||
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 |
17. Payables and Other Liabilities |
September 30, 2022 | December 31, 2021 | |||||||||||||
Accrued liabilities | $ | 167,140 | $ | 114,931 | ||||||||||
Lease liabilities | 63,587 | 65,518 | ||||||||||||
Accrued compensation expense | 55,952 | 129,919 | ||||||||||||
GNMA reverse mortgage buyout payable | 48,853 | 31,274 | ||||||||||||
Estimate of claim losses | 18,247 | 14,993 | ||||||||||||
Derivative liabilities | 13,837 | 26,678 | ||||||||||||
Deferred purchase price liabilities | 9,707 | 47,479 | ||||||||||||
Liability for loans eligible for repurchase from GNMA | 8,670 | 7,956 | ||||||||||||
Repurchase reserves | 6,293 | 8,685 | ||||||||||||
Warrant liability | 1,867 | 5,497 | ||||||||||||
Deferred tax liability, net | 1,482 | 18,581 | ||||||||||||
Total payables and other liabilities | $ | 395,635 | $ | 471,511 |
September 30, 2021 | December 31, 2020 | |||||||
Successor | Predecessor | |||||||
Accrued compensation expense | $ | 150,821 | $ | 150,214 | ||||
Accrued liabilities | 135,747 | 83,427 | ||||||
Lease liabilities | 61,846 | 48,250 | ||||||
Deferred purchase price liabilities | 47,317 | 3,842 | ||||||
Ginnie Mae reverse mortgage buy-out payable | 36,574 | 32,317 | ||||||
Deferred tax liability, net | 27,213 | — | ||||||
Estimate of claim losses | 14,015 | 8,609 | ||||||
Derivative liabilities | 11,783 | 20,722 | ||||||
Warrant liability | 9,342 | — | ||||||
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 | ||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
September 30, 2022 | December 31, 2021 | ||||||||||
Right-of-use assets | $ | 59,295 | $ | 62,528 | |||||||
Lease liabilities | 63,587 | 65,518 | |||||||||
Weighted average remaining lease term (in years) | 6.48 | 6.47 | |||||||||
Weighted average discount rate | 6.03 | % | 6.27 | % |
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 | ||||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease cost | $ | 5,244 | $ | 16,469 | $ | 5,894 | $ | 11,419 | $ | 5,490 | ||||||||||||||||||||||||||||||||||||||||
Short-term lease cost | 790 | 2,485 | 1,823 | 2,629 | 1,035 | |||||||||||||||||||||||||||||||||||||||||||||
Total operating and short term lease cost | 6,034 | 18,954 | 7,717 | 14,048 | 6,525 | |||||||||||||||||||||||||||||||||||||||||||||
Variable lease cost | 763 | 2,818 | 732 | 2,747 | 1,808 | |||||||||||||||||||||||||||||||||||||||||||||
Sublease income | (309) | (1,001) | (421) | (855) | (464) | |||||||||||||||||||||||||||||||||||||||||||||
Net lease cost | $ | 6,488 | $ | 20,771 | $ | 8,028 | $ | 15,940 | $ | 7,869 |
For the nine months ended September 30, 2022 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 15,109 | $ | 10,393 | $ | 5,423 | ||||||||||||||||||||||||||||||||||||||||||||
Leased assets obtained in exchange for new operating lease liabilities | 19,312 | 23,783 | 701 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Remainder of 2022 | $ | 4,945 | ||||||
2023 | 18,202 | |||||||
2024 | 13,525 | |||||||
2025 | 8,799 | |||||||
2026 | 6,462 | |||||||
2027 | 5,294 | |||||||
Thereafter | 21,847 | |||||||
Total undiscounted lease payments | 79,074 | |||||||
Less: amounts representing interest | (15,487) | |||||||
Total lease liabilities | $ | 63,587 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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, July 1, 2021 | 10,753,414 | 4,066,069 | 14,819,483 | $ | 9.48 | $ | 140,489 | |||||||||||||
Vested | (154,788 | ) | 154,788 | — | — | — | ||||||||||||||
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 | ||||||||||||||||||||
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 | |||||||||||||||
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 | ||||||||||||||
21. Business Segment Reporting |
For the three months ended September 30, 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 | $ | 46,310 | $ | — | $ | — | $ | (142) | $ | (6,650) | $ | 39,518 | $ | — | $ | (3,339) | $ | 36,179 | ||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | — | 71,204 | 1,061 | — | (80,721) | (8,456) | — | 2,080 | (6,376) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee income | 13,885 | 936 | 11,416 | 43,743 | 7,147 | 77,127 | — | (6,615) | 70,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 9,235 | — | — | 627 | 2,051 | 11,913 | 109 | — | 12,022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (8,156) | — | — | (62) | (26,098) | (34,316) | (6,920) | — | (41,236) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | 1,079 | — | — | 565 | (24,047) | (22,403) | (6,811) | — | (29,214) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 61,274 | 72,140 | 12,477 | 44,166 | (104,271) | 85,786 | (6,811) | (7,874) | 71,101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 102,499 | 37,959 | 19,535 | 55,690 | 27,463 | 243,146 | 23,679 | (7,904) | 258,921 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | — | (5,500) | — | (3,800) | (138,184) | — | — | (138,184) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | 24 | 130 | 734 | 784 | 1,672 | 19,688 | (30) | 21,330 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) before taxes | $ | (170,109) | $ | 34,205 | $ | (12,428) | $ | (10,790) | $ | (134,750) | $ | (293,872) | $ | (10,802) | $ | — | $ | (304,674) | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 2,828 | $ | 9,667 | $ | 550 | $ | 3,278 | $ | 109 | $ | 16,432 | $ | 960 | $ | — | $ | 17,392 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 724,099 | $ | 354,007 | $ | 16,453 | $ | 203,157 | $ | 19,871,260 | $ | 21,168,976 | $ | 1,581,538 | $ | (1,560,617) | $ | 21,189,897 |
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 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the nine months ended September 30, 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 | $ | 239,430 | $ | — | $ | — | $ | (1,057) | $ | (463) | $ | 237,910 | $ | — | $ | (11,574) | $ | 226,336 | ||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | — | 254,830 | 556 | — | (255,754) | (368) | — | 6,040 | 5,672 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee income | 52,120 | 4,875 | 45,233 | 178,043 | 64,814 | 345,085 | — | (28,287) | 316,798 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 35,097 | — | — | 1,374 | 4,980 | 41,451 | 297 | — | 41,748 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (26,770) | — | — | (146) | (63,623) | (90,539) | (20,361) | — | (110,900) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | 8,327 | — | — | 1,228 | (58,643) | (49,088) | (20,064) | — | (69,152) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 299,877 | 259,705 | 45,789 | 178,214 | (250,046) | 533,539 | (20,064) | (33,821) | 479,654 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | 397,209 | 125,092 | 67,210 | 190,111 | 97,204 | 876,826 | 90,445 | (33,800) | 933,471 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | — | (5,500) | — | (3,800) | (138,184) | — | — | (138,184) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | — | 3,276 | 418 | 3,212 | 848 | 7,754 | 33,459 | 21 | 41,234 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) before taxes | $ | (226,216) | $ | 137,889 | $ | (26,503) | $ | (8,685) | $ | (350,202) | $ | (473,717) | $ | (77,050) | $ | — | $ | (550,767) | ||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 8,407 | $ | 29,063 | $ | 1,660 | $ | 9,602 | $ | 302 | $ | 49,034 | $ | 1,832 | $ | — | $ | 50,866 | ||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 724,099 | $ | 354,007 | $ | 16,453 | $ | 203,157 | $ | 19,871,260 | $ | 21,168,976 | $ | 1,581,538 | $ | (1,560,617) | $ | 21,189,897 |
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 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 200,294 | $ | — | $ | — | $ | — | $ | 13,664 | $ | 213,958 | $ | — | $ | (3,863) | $ | 210,095 | ||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | 1,145 | 109,408 | 13,604 | — | (448) | 123,709 | — | (1,200) | 122,509 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee income | 30,827 | 1,022 | 14,252 | 87,592 | 14,937 | 148,630 | — | (2,905) | 145,725 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 15,363 | — | — | 37 | 379 | 15,779 | 83 | — | 15,862 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (12,556) | — | — | (114) | (18,178) | (30,848) | (6,803) | (40) | (37,691) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | — | $ | 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 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the six months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 385,680 | $ | — | $ | — | $ | — | $ | 21,412 | $ | 407,092 | $ | — | $ | (9,420) | $ | 397,672 | ||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains on loans and related obligations | 1,145 | 203,944 | 24,425 | — | 10,776 | 240,290 | — | 13,370 | 253,660 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Fee income | 61,172 | 1,976 | 26,376 | 168,722 | 18,514 | 276,760 | — | (40,171) | 236,589 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income (expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | 28,200 | — | — | 66 | 756 | 29,022 | — | (9) | 29,013 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (23,417) | (9) | — | (158) | (34,406) | (57,990) | (13,287) | (40) | (71,317) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 12,200 | $ | — | $ | 32,954 | ||||||||||||||||||||||||||||||||||||||||||||
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 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 |
Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended 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 | $ | — | $ | — | $ | — | $ | 5,065 | $ | 291,546 | $ | — | $ | (212) | $ | 291,334 | ||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains on loans and related obligations | — | 68,449 | 5,431 | — | 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 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 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 | 5,925 | 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 | $ | — | $ | 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 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
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 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 | |||||||||||||||
Effective tax provision rate | 8.14 | % | 13.54 | % | 0.91 | % | 0.33 | % | 0.45 | % |
25. Earnings Per Share |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Basic net earnings (loss) per share: | ||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||
Net earnings (loss) | $ | (301,700) | $ | (533,518) | $ | 50,110 | $ | 35,286 | N/A | |||||||||||||||||||||||
Less: Earnings (loss) attributable to noncontrolling interest(1) | (217,214) | (399,859) | 28,726 | 11,637 | N/A | |||||||||||||||||||||||||||
Net income (loss) attributable to holders of Class A Common Stock - basic | $ | (84,486) | $ | (133,659) | $ | 21,384 | $ | 23,649 | N/A | |||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||
Weighted average shares of Class A Common Stock outstanding - basic | 62,804,809 | 61,993,353 | 59,861,171 | 59,871,386 | N/A | |||||||||||||||||||||||||||
Basic net earnings (loss) per share | $ | (1.35) | $ | (2.16) | $ | 0.36 | $ | 0.39 | N/A |
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 | ||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Diluted net loss per share: | ||||||||||||||||||||||||||||||||||||||
Numerator | ||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to holders of Class A Common Stock | $ | (84,486) | $ | (133,659) | $ | 21,384 | $ | 23,649 | N/A | |||||||||||||||||||||||||||||
Reallocation of net income (loss) assuming exchange of Class A LLC Units (1) | — | (307,401) | 21,475 | 9,476 | N/A | |||||||||||||||||||||||||||||||||
Net loss attributable to holders of Class A Common Stock - diluted | $ | (84,486) | $ | (441,060) | $ | 42,859 | $ | 33,125 | N/A | |||||||||||||||||||||||||||||
Denominator | ||||||||||||||||||||||||||||||||||||||
Weighted average shares of Class A Common Stock outstanding - basic | 62,804,809 | 61,993,353 | 59,861,171 | 59,871,386 | N/A | |||||||||||||||||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||||||||||||||||
Assumed exchange of weighted average Class A LLC Units for shares of Class A Common Stock (2) | — | 126,382,592 | 131,300,259 | 131,309,223 | N/A | |||||||||||||||||||||||||||||||||
Weighted average shares of Class A Common Stock outstanding - diluted | 62,804,809 | 188,375,945 | 191,161,430 | 191,180,609 | N/A | |||||||||||||||||||||||||||||||||
Diluted net loss per share | $ | (1.35) | $ | (2.34) | $ | 0.22 | $ | 0.17 | N/A | |||||||||||||||||||||||||||||
Weighed-average anti-dilutive securities excluded from the computation of diluted earnings per share | For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Restricted stock units | — | 951,833 | — | — | N/A | |||||||||||||||||||||||||||||||||
Class A LLC Units of FoA Equity that are convertible into Class A Common Stock | 125,073,127 | — | — | — | N/A |
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 | ||||
Finance of Notes to |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 46,310 | $ | 239,430 | $ | 200,294 | $ | 385,680 | $ | 286,481 | ||||||||||||||||||||||
Net fair value gains on loans and related obligations | — | — | 1,145 | 1,145 | — | |||||||||||||||||||||||||||
Fee income | 13,885 | 52,120 | 30,827 | 61,172 | 32,731 | |||||||||||||||||||||||||||
Net interest income | 1,079 | 8,327 | 2,807 | 4,783 | 891 | |||||||||||||||||||||||||||
Total revenues | 61,274 | 299,877 | 235,073 | 452,780 | 320,103 | |||||||||||||||||||||||||||
Total expenses | 102,499 | 397,209 | 220,331 | 444,522 | 224,246 | |||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | (128,884) | — | — | — | |||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | $ | (170,109) | $ | (226,216) | $ | 14,742 | $ | 8,258 | $ | 95,857 |
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 46,310 | $ | 239,430 | $ | 200,294 | $ | 385,680 | $ | 286,481 | ||||||||||||||||||||||
Net fair value gains on loans and related obligations | — | — | 1,145 | 1,145 | — | |||||||||||||||||||||||||||
Fee income | 13,885 | 52,120 | 30,827 | 61,172 | 32,731 | |||||||||||||||||||||||||||
Net interest income | 1,079 | 8,327 | 2,807 | 4,783 | 891 | |||||||||||||||||||||||||||
Total revenues | 61,274 | 299,877 | 235,073 | 452,780 | 320,103 | |||||||||||||||||||||||||||
Total expenses | 102,499 | 397,209 | 220,331 | 444,522 | 224,246 | |||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | (128,884) | — | — | — | |||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | $ | (170,109) | $ | (226,216) | $ | 14,742 | $ | 8,258 | $ | 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 | ||||||||||||||||
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 | |||||||||||||||
Fee income | 145,725 | 236,589 | 161,371 | 119,375 | 266,002 | |||||||||||||||
Net interest expense | (21,829 | ) | (42,304 | ) | (21,705 | ) | (15,998 | ) | (63,550 | ) | ||||||||||
Total revenue | 456,500 | 845,617 | 507,663 | 607,258 | 1,260,991 | |||||||||||||||
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 TAXES | $ | 54,550 | $ | 40,812 | $ | 125,457 | $ | 242,419 | $ | 347,064 | ||||||||||
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 | ||||||||||
Finance of America Companies Inc. and Subsidiaries Notes to Condensed Consolidated Financial Statements (Unaudited) |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 46,310 | $ | 239,430 | $ | 200,294 | $ | 385,680 | $ | 286,481 | ||||||||||||||||||||||
Net fair value gains on loans and related obligations | — | — | 1,145 | 1,145 | — | |||||||||||||||||||||||||||
Fee income | 13,885 | 52,120 | 30,827 | 61,172 | 32,731 | |||||||||||||||||||||||||||
Net interest income | 1,079 | 8,327 | 2,807 | 4,783 | 891 | |||||||||||||||||||||||||||
Total revenues | 61,274 | 299,877 | 235,073 | 452,780 | 320,103 | |||||||||||||||||||||||||||
Total expenses | 102,499 | 397,209 | 220,331 | 444,522 | 224,246 | |||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | (128,884) | — | — | — | |||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | $ | (170,109) | $ | (226,216) | $ | 14,742 | $ | 8,258 | $ | 95,857 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 36,179 | $ | 226,336 | $ | 210,095 | $ | 397,672 | $ | 291,334 | ||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | (6,376) | 5,672 | 122,509 | 253,660 | 76,663 | |||||||||||||||||||||||||||||||||
Fee income | 70,512 | 316,798 | 145,725 | 236,589 | 161,371 | |||||||||||||||||||||||||||||||||
Net interest expense | (29,214) | (69,152) | (21,829) | (42,304) | (21,705) | |||||||||||||||||||||||||||||||||
Total revenues | 71,101 | 479,654 | 456,500 | 845,617 | 507,663 | |||||||||||||||||||||||||||||||||
Total expenses | 258,921 | 933,471 | 411,878 | 812,630 | 373,314 | |||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (138,184) | (138,184) | — | — | — | |||||||||||||||||||||||||||||||||
Other, net | 21,330 | 41,234 | 9,928 | 7,825 | (8,892) | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (304,674) | $ | (550,767) | $ | 54,550 | $ | 40,812 | $ | 125,457 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Net origination gains | $ | 72,265 | $ | 255,386 | $ | 123,012 | $ | 228,369 | $ | 73,880 | ||||||||||||||||||||||||||||
Net fair value gains from portfolio activity(1) | 42,892 | 121,708 | 34,926 | 59,298 | 32,386 | |||||||||||||||||||||||||||||||||
Net fair value losses from changes in market inputs or model assumptions | (121,533) | (371,422) | (35,429) | (34,007) | (29,603) | |||||||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | $ | (6,376) | $ | 5,672 | $ | 122,509 | $ | 253,660 | $ | 76,663 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Interest income on commercial and reverse loans | $ | 228,896 | $ | 582,350 | $ | 160,683 | $ | 334,623 | $ | 160,568 | ||||||||||||||||||||||||||||
Interest expense on HMBS and nonrecourse obligations | (149,200) | (380,446) | (107,593) | (221,067) | (119,201) | |||||||||||||||||||||||||||||||||
Net interest margin included in net fair value gains on mortgage loans (1) | 79,696 | 201,904 | 53,090 | 113,556 | 41,367 | |||||||||||||||||||||||||||||||||
Interest income on mortgage loans held for sale | 10,265 | 37,222 | 15,742 | 28,766 | 12,621 | |||||||||||||||||||||||||||||||||
Interest expense on warehouse lines of credit | (34,173) | (90,221) | (30,735) | (57,643) | (26,546) | |||||||||||||||||||||||||||||||||
Non-funding debt interest expense | (6,920) | (20,361) | (6,842) | (13,486) | (7,756) | |||||||||||||||||||||||||||||||||
Other interest income | 1,757 | 4,525 | 120 | 246 | 40 | |||||||||||||||||||||||||||||||||
Other interest expense | (143) | (317) | (114) | (187) | (64) | |||||||||||||||||||||||||||||||||
Net interest expense | (29,214) | (69,152) | (21,829) | (42,304) | (21,705) | |||||||||||||||||||||||||||||||||
NET INTEREST MARGIN | $ | 50,482 | $ | 132,752 | $ | 31,261 | $ | 71,252 | $ | 19,662 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Gain on sale and other income from loans held for sale, net | $ | 46,310 | $ | 239,430 | $ | 200,294 | $ | 385,680 | $ | 286,481 | ||||||||||||||||||||||||||||
Net fair value gains on loans and related obligations | — | — | 1,145 | 1,145 | — | |||||||||||||||||||||||||||||||||
Fee income | 13,885 | 52,120 | 30,827 | 61,172 | 32,731 | |||||||||||||||||||||||||||||||||
Net interest income | 1,079 | 8,327 | 2,807 | 4,783 | 891 | |||||||||||||||||||||||||||||||||
Total revenue | 61,274 | 299,877 | 235,073 | 452,780 | 320,103 | |||||||||||||||||||||||||||||||||
Total expenses | 102,499 | 397,209 | 220,331 | 444,522 | 224,246 | |||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (128,884) | (128,884) | — | — | — | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (170,109) | $ | (226,216) | $ | 14,742 | $ | 8,258 | $ | 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 | ||||||||||||||||
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 September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Loan origination volume (dollars) | ||||||||||||||||||||||||||||||||||||||
Conforming | $ | 1,540,994 | $ | 7,332,712 | $ | 4,698,538 | $ | 9,000,708 | $ | 5,397,708 | ||||||||||||||||||||||||||||
Government | 640,366 | 2,128,010 | 987,074 | 1,982,731 | 1,068,650 | |||||||||||||||||||||||||||||||||
Non-conforming | 446,545 | 2,386,714 | 1,632,513 | 3,204,408 | 1,937,860 | |||||||||||||||||||||||||||||||||
Home improvement | 69,321 | 184,401 | 64,566 | 123,494 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume | $ | 2,697,226 | $ | 12,031,837 | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | ||||||||||||||||||||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||||||||||||||||||||
Agency | $ | 2,124,027 | $ | 9,279,390 | $ | 6,324,230 | $ | 12,398,694 | $ | 7,367,044 | ||||||||||||||||||||||||||||
Non-agency | 503,878 | 2,568,046 | 993,895 | 1,789,153 | 1,037,174 | |||||||||||||||||||||||||||||||||
Home improvement | 69,321 | 184,401 | 64,566 | 123,494 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume by type | $ | 2,697,226 | $ | 12,031,837 | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | ||||||||||||||||||||||||||||
Loan origination volume by channel (dollars) | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 1,703,174 | $ | 7,021,668 | $ | 4,838,128 | $ | 9,708,682 | $ | 5,622,487 | ||||||||||||||||||||||||||||
Wholesale/Correspondent | 874,854 | 4,052,674 | 1,786,304 | 2,987,807 | 1,706,365 | |||||||||||||||||||||||||||||||||
Consumer direct | 49,877 | 773,094 | 693,693 | 1,491,358 | 1,075,366 | |||||||||||||||||||||||||||||||||
Home improvement | 69,321 | 184,401 | 64,566 | 123,494 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume by channel | $ | 2,697,226 | $ | 12,031,837 | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | ||||||||||||||||||||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||||||||||||||||||||
Purchase | $ | 2,277,955 | $ | 8,380,030 | $ | 3,759,059 | $ | 7,253,521 | $ | 2,664,493 | ||||||||||||||||||||||||||||
Refinance | 349,950 | 3,467,406 | 3,559,066 | 6,934,326 | 5,739,725 | |||||||||||||||||||||||||||||||||
Home improvement | 69,321 | 184,401 | 64,566 | 123,494 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume by type | $ | 2,697,226 | $ | 12,031,837 | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | ||||||||||||||||||||||||||||
Loan origination volume (units) | ||||||||||||||||||||||||||||||||||||||
Conforming | 4,486 | 20,598 | 14,522 | 28,658 | 18,090 | |||||||||||||||||||||||||||||||||
Government | 1,903 | 6,331 | 3,041 | 6,182 | 3,426 | |||||||||||||||||||||||||||||||||
Non-conforming | 486 | 2,530 | 2,032 | 4,004 | 2,472 | |||||||||||||||||||||||||||||||||
Home improvement | 5,831 | 15,588 | 5,935 | 11,457 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume | 12,706 | 45,047 | 25,530 | 50,301 | 23,988 | |||||||||||||||||||||||||||||||||
Loan origination volume by type (units) | ||||||||||||||||||||||||||||||||||||||
Agency | 6,131 | 26,023 | 18,400 | 36,678 | 22,763 | |||||||||||||||||||||||||||||||||
Non-agency | 744 | 3,436 | 1,195 | 2,166 | 1,225 | |||||||||||||||||||||||||||||||||
Home improvement | 5,831 | 15,588 | 5,935 | 11,457 | — |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Total loan origination volume by type | 12,706 | 45,047 | 25,530 | 50,301 | 23,988 | |||||||||||||||||||||||||||||||||
Loan origination volume by channel (units) | ||||||||||||||||||||||||||||||||||||||
Retail | 4,754 | 18,913 | 13,353 | 27,090 | 16,123 | |||||||||||||||||||||||||||||||||
Wholesale/Correspondent | 1,982 | 8,405 | 4,210 | 7,215 | 4,745 | |||||||||||||||||||||||||||||||||
Consumer direct | 139 | 2,141 | 2,032 | 4,539 | 3,120 | |||||||||||||||||||||||||||||||||
Home improvement | 5,831 | 15,588 | 5,935 | 11,457 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume by channel | 12,706 | 45,047 | 25,530 | 50,301 | 23,988 | |||||||||||||||||||||||||||||||||
Loan origination volume by type (units) | ||||||||||||||||||||||||||||||||||||||
Purchase | 5,852 | 20,426 | 9,801 | 19,129 | 7,534 | |||||||||||||||||||||||||||||||||
Refinance | 1,023 | 9,033 | 9,794 | 19,715 | 16,454 | |||||||||||||||||||||||||||||||||
Home improvement | 5,831 | 15,588 | 5,935 | 11,457 | — | |||||||||||||||||||||||||||||||||
Total loan origination volume by type | 12,706 | 45,047 | 25,530 | 50,301 | 23,988 | |||||||||||||||||||||||||||||||||
Loan sales by investor (dollars) | ||||||||||||||||||||||||||||||||||||||
Agency | $ | 2,149,549 | $ | 9,789,163 | $ | 5,733,609 | $ | 11,541,450 | $ | 7,246,418 | ||||||||||||||||||||||||||||
Private | 812,519 | 3,221,563 | 1,574,710 | 2,787,028 | 1,152,810 | |||||||||||||||||||||||||||||||||
Total loan sales by investor | $ | 2,962,068 | $ | 13,010,726 | $ | 7,308,319 | $ | 14,328,478 | $ | 8,399,228 | ||||||||||||||||||||||||||||
Loan sales by type (dollars) | ||||||||||||||||||||||||||||||||||||||
Servicing released | $ | 1,173,968 | $ | 3,932,394 | $ | 3,313,801 | $ | 5,497,385 | $ | 2,086,550 | ||||||||||||||||||||||||||||
Servicing retained | 1,788,100 | 9,078,332 | 3,994,518 | 8,831,093 | 6,312,678 | |||||||||||||||||||||||||||||||||
Total loan sales by type | $ | 2,962,068 | $ | 13,010,726 | $ | 7,308,319 | $ | 14,328,478 | $ | 8,399,228 | ||||||||||||||||||||||||||||
Net rate lock volume | $ | 2,474,329 | $ | 11,591,373 | $ | 7,679,106 | $ | 14,347,929 | $ | 8,405,313 | ||||||||||||||||||||||||||||
Mortgage originations margin (including servicing margin) (1) | 1.87% | 2.07 | % | 2.61% | 2.69% | 3.41% | ||||||||||||||||||||||||||||||||
Capitalized servicing rate (in bps) | 113.1 | 122 | 102.6 | 103.1 | 89.1 |
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 (dollars) | ||||||||||||||||||||
Conforming | $ | 4,698,538 | $ | 9,000,708 | $ | 5,397,708 | $ | 5,773,072 | $ | 13,749,364 | ||||||||||
Government | 987,074 | 1,982,731 | 1,068,650 | 1,204,360 | 3,237,231 | |||||||||||||||
Non-conforming | 1,632,513 | 3,204,408 | 1,937,860 | 1,476,952 | 3,270,125 | |||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | |||||||||||||||
Total loan origination volume | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | ||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||
Agency | $ | 6,324,230 | $ | 12,398,694 | $ | 7,367,044 | 8,160,931 | $ | 19,465,514 | |||||||||||
Non-agency | 993,895 | 1,789,153 | 1,037,174 | 293,453 | 791,206 | |||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | |||||||||||||||
Total loan origination volume by type | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | ||||||||||
Loan origination volume by channel (dollars) | ||||||||||||||||||||
Retail | $ | 4,838,128 | $ | 9,708,682 | $ | 5,622,487 | 6,207,165 | $ | 15,191,608 | |||||||||||
Wholesale/Correspondent | 1,786,304 | 2,987,807 | 1,706,365 | 1,303,448 | 2,882,650 | |||||||||||||||
Consumer direct | 693,693 | 1,491,358 | 1,075,366 | 943,771 | 2,182,462 | |||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | |||||||||||||||
Total loan origination volume by channel | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | ||||||||||
Loan origination volume by type (dollars) | ||||||||||||||||||||
Purchase | $ | 3,759,059 | $ | 7,253,521 | 2,664,493 | 3,022,815 | 6,780,670 | |||||||||||||
Refinance | 3,559,066 | 6,934,326 | 5,739,725 | 5,431,569 | 13,476,050 | |||||||||||||||
Home improvement | 64,566 | 123,494 | — | — | — | |||||||||||||||
Total loan origination volume by type | $ | 7,382,691 | $ | 14,311,341 | $ | 8,404,218 | $ | 8,454,384 | $ | 20,256,720 | ||||||||||
Loan origination volume (units) | ||||||||||||||||||||
Conforming | 14,522 | 28,658 | 18,090 | 19,294 | 46,570 | |||||||||||||||
Government | 3,041 | 6,182 | 3,426 | 4,106 | 11,120 | |||||||||||||||
Non-conforming | 2,032 | 4,004 | 2,472 | 2,170 | 4,818 | |||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | |||||||||||||||
Total loan origination volume | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 | |||||||||||||||
Loan origination volume by type (units) | ||||||||||||||||||||
Agency | 18,400 | 36,678 | 22,763 | 25,113 | 61,296 | |||||||||||||||
Non-agency | 1,195 | 2,166 | 1,225 | 457 | 1,212 | |||||||||||||||
Home improvement | 5,935 | 11,457 | — | — | — | |||||||||||||||
Total loan origination volume by type | 25,530 | 50,301 | 23,988 | 25,570 | 62,508 |
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 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 September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale, net | $ | 221,680 | $ | 390,501 | $ | 200,874 | $ | 396,346 | $ | 853,204 | Gain on sale, net | $ | 58,033 | $ | 134,155 | $ | 221,680 | $ | 390,501 | $ | 200,874 | |||||||||||||||||||||||||||||||||||||
Provision for repurchases | (1,970 | ) | (3,783 | ) | (2,258 | ) | (4,277 | ) | (16,256 | ) | Provision for repurchases | (6,708) | (13,013) | (1,970) | (3,783) | (2,258) | ||||||||||||||||||||||||||||||||||||||||||
Realized hedge gains (losses) | (22,982 | ) | (39,995 | ) | 74,823 | (33,796 | ) | (141,280 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net realized hedge gains (losses) | Net realized hedge gains (losses) | 9,821 | 177,532 | (22,982) | (39,995) | 74,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of loans held for sale | (5,561 | ) | 6,041 | (41,485 | ) | 11,538 | 44,948 | Changes in fair value of loans held for sale | (21,429) | (53,956) | (5,561) | 6,041 | (41,485) | |||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of interest rate locks | (5,472 | ) | (8,456 | ) | (49,946 | ) | 34,937 | 98,988 | Changes in fair value of interest rate locks | (24,064) | (33,289) | (5,472) | (8,456) | (49,946) | ||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value of derivatives/hedges | 14,599 | 41,372 | 104,473 | 2,500 | (6,732 | ) | Changes in fair value of derivatives/hedges | 30,657 | 28,001 | 14,599 | 41,372 | 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 | Gain on sale and other income from loans held for sale, net | 46,310 | 239,430 | 200,294 | 385,680 | 286,481 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net fair value gains on loans and related obligations | Net fair value gains on loans and related obligations | — | — | 1,145 | 1,145 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Origination related fee income | 30,827 | 61,172 | 32,731 | 36,080 | 90,402 | Origination related fee income | 13,885 | 52,120 | 30,827 | 61,172 | 32,731 | |||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | 2,807 | 4,783 | 891 | 451 | 1,715 | Net interest income | 1,079 | 8,327 | 2,807 | 4,783 | 891 | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 235,073 | $ | 452,780 | $ | 320,103 | $ | 443,779 | $ | 924,989 | Total revenue | $ | 61,274 | $ | 299,877 | $ | 235,073 | $ | 452,780 | $ | 320,103 | |||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Interest income | $ | 9,235 | $ | 35,097 | $ | 15,363 | $ | 28,200 | $ | 12,483 | ||||||||||||||||||||||||||||
Interest expense | (8,156) | (26,770) | (12,556) | (23,417) | (11,592) | |||||||||||||||||||||||||||||||||
Net interest income | $ | 1,079 | $ | 8,327 | $ | 2,807 | $ | 4,783 | $ | 891 | ||||||||||||||||||||||||||||
WAC - loans held for sale | 5.7 | % | 5.0 | % | 3.0 | % | 3.0 | % | 2.9 | % | ||||||||||||||||||||||||||||
WAC - warehouse lines of credit | 5.6 | % | 4.4 | % | 3.3 | % | 3.1 | % | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Interest income | $ | 15,363 | $ | 28,200 | $ | 12,483 | $ | 10,273 | $ | 29,351 | ||||||||||
Interest expense | (12,556 | ) | (23,417 | ) | (11,592 | ) | (9,822 | ) | (27,636 | ) | ||||||||||
Net interest income | $ | 2,807 | $ | 4,783 | $ | 891 | $ | 451 | $ | 1,715 | ||||||||||
WAC - loans held for sale | 3.0 | % | 3.0 | % | 2.9 | % | 3.0 | % | 3.0 | % | ||||||||||
WAC - warehouse lines of credit | 3.3 | % | 3.1 | % | 3.0 | % | 3.3 | % | 3.0 | % |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Commissions and bonuses | $ | 29,367 | $ | 130,203 | $ | 106,316 | $ | 209,916 | $ | 111,766 | ||||||||||||||||||||||||||||
Salaries | 33,428 | 117,263 | 48,565 | 104,121 | 46,232 | |||||||||||||||||||||||||||||||||
Other salary related expenses | 8,398 | 36,808 | 11,073 | 24,225 | 18,451 | |||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | 71,193 | 284,274 | 165,954 | 338,262 | 176,449 | |||||||||||||||||||||||||||||||||
Loan origination fees | 6,012 | 23,853 | 17,539 | 32,320 | 14,003 | |||||||||||||||||||||||||||||||||
Loan processing expenses | 2,228 | 9,341 | 5,119 | 10,544 | 5,462 | |||||||||||||||||||||||||||||||||
Other general and administrative expenses | 18,580 | 65,915 | 26,918 | 54,506 | 23,112 | |||||||||||||||||||||||||||||||||
Total general and administrative expenses | 26,820 | 99,109 | 49,576 | 97,370 | 42,577 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 4,486 | 13,826 | 4,801 | 8,890 | 5,220 | |||||||||||||||||||||||||||||||||
Total expenses | $ | 102,499 | $ | 397,209 | $ | 220,331 | $ | 444,522 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Commissions and bonus | $ | 106,316 | $ | 209,916 | $ | 111,766 | $ | 140,122 | $ | 325,366 | ||||||||||
Salaries | 48,565 | 104,121 | 46,232 | 41,896 | 108,719 | |||||||||||||||
Other salary related expenses | 11,073 | 24,225 | 18,451 | 12,052 | 37,857 | |||||||||||||||
Total salaries, benefits and related expenses | 165,954 | 338,262 | 176,449 | 194,070 | 471,942 | |||||||||||||||
Loan origination fees | 17,539 | 32,320 | 14,003 | 13,375 | 34,362 | |||||||||||||||
Loan processing expenses | 5,119 | 10,544 | 5,462 | 2,408 | 7,008 | |||||||||||||||
Other general and administrative expenses | 26,918 | 54,506 | 23,112 | 23,936 | 63,974 | |||||||||||||||
Total general and administrative expenses | 49,576 | 97,370 | 42,577 | 39,719 | 105,344 | |||||||||||||||
Occupancy, equipment rentals and other office related expenses | 4,801 | 8,890 | 5,220 | 6,058 | 16,710 | |||||||||||||||
Total expenses | $ | 220,331 | $ | 444,522 | $ | 224,246 | $ | 239,847 | $ | 593,996 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Net origination gains | $ | 71,204 | $ | 254,830 | $ | 109,408 | $ | 203,944 | $ | 68,449 | ||||||||||||||||||||||||||||
Fee income | 936 | 4,875 | 1,022 | 1,976 | 524 | |||||||||||||||||||||||||||||||||
Net interest expense | — | — | — | (9) | — | |||||||||||||||||||||||||||||||||
Total revenue | 72,140 | 259,705 | 110,430 | 205,911 | 68,973 | |||||||||||||||||||||||||||||||||
Total expenses | 37,959 | 125,092 | 41,354 | 83,600 | 23,693 | |||||||||||||||||||||||||||||||||
Other, net | 24 | 3,276 | 221 | 325 | 34 | |||||||||||||||||||||||||||||||||
NET INCOME BEFORE TAXES | $ | 34,205 | $ | 137,889 | $ | 69,297 | $ | 122,636 | $ | 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 | |||||||||||||||||||
Net origination gains | $ | 109,408 | $ | 203,944 | $ | 68,449 | $ | 48,251 | $ | 137,529 | ||||||||||
Fee income | 1,022 | 1,976 | 524 | 366 | 1,478 | |||||||||||||||
Net interest expense | — | (9 | ) | — | — | — | ||||||||||||||
Total revenue | 110,430 | 205,911 | 68,973 | 48,617 | 139,007 | |||||||||||||||
Total expenses | 41,354 | 83,600 | 23,693 | 24,634 | 65,374 | |||||||||||||||
Other, net | 221 | 325 | 34 | — | — | |||||||||||||||
NET INCOME BEFORE TAXES | $ | 69,297 | $ | 122,636 | $ | 45,314 | $ | 23,983 | $ | 73,633 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Loan origination volume | ||||||||||||||||||||||||||||||||||||||
Total loan origination volume - new originations(1) | $ | 1,135,118 | $ | 4,189,913 | $ | 1,157,212 | $ | 2,170,535 | $ | 768,795 | ||||||||||||||||||||||||||||
Total loan origination volume - tails(2) | 164,722 | 482,172 | 135,164 | 257,126 | 120,775 | |||||||||||||||||||||||||||||||||
Total loan origination volume | $ | 1,299,840 | $ | 4,672,085 | $ | 1,292,376 | $ | 2,427,661 | $ | 889,570 | ||||||||||||||||||||||||||||
Total loan origination volume - units | 3,215 | 11,761 | 3,382 | 6,640 | 2,864 | |||||||||||||||||||||||||||||||||
Loan origination volume - new originations by channel(3) | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 141,533 | $ | 588,718 | $ | 195,797 | $ | 368,769 | $ | 127,679 | ||||||||||||||||||||||||||||
TPO | 993,585 | 3,601,195 | 961,415 | 1,801,766 | 641,116 | |||||||||||||||||||||||||||||||||
Total loan origination volume - new originations by channel | $ | 1,135,118 | $ | 4,189,913 | $ | 1,157,212 | $ | 2,170,535 | $ | 768,795 |
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 September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Net origination gains: | ||||||||||||||||||||||||||||||||||||||
Retail | $ | 12,328 | $ | 45,818 | $ | 30,061 | $ | 47,281 | $ | 16,913 | ||||||||||||||||||||||||||||
TPO | 100,515 | 384,493 | 144,049 | 285,435 | 99,678 | |||||||||||||||||||||||||||||||||
Acquisition costs | (41,639) | (175,481) | (64,702) | (128,772) | (48,142) | |||||||||||||||||||||||||||||||||
Total net origination gains | 71,204 | 254,830 | 109,408 | 203,944 | 68,449 | |||||||||||||||||||||||||||||||||
Fee income | 936 | 4,875 | 1,022 | 1,976 | 524 | |||||||||||||||||||||||||||||||||
Net interest income | — | — | — | (9) | — | |||||||||||||||||||||||||||||||||
Total revenue | $ | 72,140 | $ | 259,705 | $ | 110,430 | $ | 205,911 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Net origination gains | ||||||||||||||||||||
Retail | $ | 30,061 | $ | 47,281 | $ | 16,913 | $ | 13,168 | $ | 28,887 | ||||||||||
TPO | 144,049 | 285,435 | 99,678 | 72,768 | 220,305 | |||||||||||||||
Acquisition costs | (64,702 | ) | (128,772 | ) | (48,142 | ) | (37,685 | ) | (111,663 | ) | ||||||||||
Total net origination gains | 109,408 | 203,944 | 68,449 | 48,251 | 137,529 | |||||||||||||||
Fee income | 1,022 | 1,976 | 524 | 366 | 1,478 | |||||||||||||||
Net interest income | — | (9 | ) | — | — | — | ||||||||||||||
Total revenue | $ | 110,430 | $ | 205,911 | $ | 68,973 | $ | 48,617 | $ | 139,007 | ||||||||||
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 September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and bonuses | $ | 18,761 | $ | 38,606 | $ | 11,692 | $ | 12,072 | $ | 32,368 | Salaries and bonuses | $ | 17,616 | $ | 60,016 | $ | 18,761 | $ | 38,606 | $ | 11,692 | |||||||||||||||||||||||||||||||||||||
Other salary related expenses | 1,605 | 3,613 | 1,395 | 898 | 3,240 | Other salary related expenses | 1,886 | 5,908 | 1,605 | 3,613 | 1,395 | |||||||||||||||||||||||||||||||||||||||||||||||
Total salaries, benefits and related expenses | 20,366 | 42,219 | 13,087 | 12,970 | 35,608 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | Total salaries, benefits, and related expenses | 19,502 | 65,924 | 20,366 | 42,219 | 13,087 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan origination fees | 2,120 | 4,881 | 3,258 | 3,587 | 9,323 | Loan origination fees | 2,473 | 6,983 | 2,120 | 4,881 | 3,258 | |||||||||||||||||||||||||||||||||||||||||||||||
Professional fees | 2,444 | 5,120 | 2,079 | 2,711 | 4,933 | Professional fees | 931 | 2,596 | 2,444 | 5,120 | 2,079 | |||||||||||||||||||||||||||||||||||||||||||||||
Other general and administrative expenses | 15,954 | 30,445 | 4,958 | 4,920 | 14,286 | Other general and administrative expenses | 14,710 | 48,399 | 15,954 | 30,445 | 4,958 | |||||||||||||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | 20,518 | 40,446 | 10,295 | 11,218 | 28,542 | Total general and administrative expenses | 18,114 | 57,978 | 20,518 | 40,446 | 10,295 | |||||||||||||||||||||||||||||||||||||||||||||||
Occupancy, equipment rentals and other office related expenses | 470 | 935 | 311 | 446 | 1,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | Occupancy, equipment rentals, and other office related expenses | 343 | 1,190 | 470 | 935 | 311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total expenses | $ | 41,354 | $ | 83,600 | $ | 23,693 | $ | 24,634 | $ | 65,374 | Total expenses | $ | 37,959 | $ | 125,092 | $ | 41,354 | $ | 83,600 | $ | 23,693 | |||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Net origination gains | $ | 1,061 | $ | 556 | $ | 13,604 | $ | 24,425 | $ | 5,431 | ||||||||||||||||||||||||||||
Fee income | 11,416 | 45,233 | 14,252 | 26,376 | 8,930 | |||||||||||||||||||||||||||||||||
Total revenue | 12,477 | 45,789 | 27,856 | 50,801 | 14,361 | |||||||||||||||||||||||||||||||||
Total expenses | 19,535 | 67,210 | 21,678 | 41,727 | 13,391 | |||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (5,500) | (5,500) | — | — | — | |||||||||||||||||||||||||||||||||
Other, net | 130 | 418 | 133 | 273 | 149 | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (12,428) | $ | (26,503) | $ | 6,311 | $ | 9,347 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Net origination gains | $ | 13,604 | $ | 24,425 | $ | 5,431 | $ | 1,357 | $ | 9,939 | ||||||||||
Fee income | 14,252 | 26,376 | 8,930 | 3,369 | 14,555 | |||||||||||||||
Total revenue | 27,856 | 50,801 | 14,361 | 4,726 | 24,494 | |||||||||||||||
Total expenses | 21,678 | 41,727 | 13,391 | 7,064 | 29,506 | |||||||||||||||
Other, net | 133 | 273 | 149 | — | — | |||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | 6,311 | $ | 9,347 | $ | 1,119 | $ | (2,338 | ) | $ | (5,012 | ) | ||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Loan origination volume (dollars)(1) | ||||||||||||||||||||||||||||||||||||||
Portfolio | $ | 46,861 | $ | 250,488 | $ | 78,547 | $ | 148,574 | $ | 59,458 | ||||||||||||||||||||||||||||
SRL | 144,390 | 684,239 | 197,864 | 368,306 | 104,992 | |||||||||||||||||||||||||||||||||
Fix & flip | 147,216 | 374,146 | 112,312 | 208,366 | 90,018 | |||||||||||||||||||||||||||||||||
New construction | 14,175 | 50,686 | 15,376 | 33,014 | 3,422 | |||||||||||||||||||||||||||||||||
Agricultural(2) | 2,370 | 108,270 | 43,216 | 89,525 | 83,013 | |||||||||||||||||||||||||||||||||
Total loan origination volume | $ | 355,012 | $ | 1,467,829 | $ | 447,315 | $ | 847,785 | $ | 340,903 | ||||||||||||||||||||||||||||
Loan origination volume (units)(1) | ||||||||||||||||||||||||||||||||||||||
Portfolio | 72 | 333 | 99 | 173 | 71 | |||||||||||||||||||||||||||||||||
SRL | 836 | 3,627 | 1,082 | 2,041 | 643 | |||||||||||||||||||||||||||||||||
Fix & flip | 581 | 1,607 | 472 | 917 | 430 | |||||||||||||||||||||||||||||||||
New construction | 43 | 123 | 53 | 109 | 13 | |||||||||||||||||||||||||||||||||
Agricultural(2) | 1 | 47 | 8 | 32 | 27 | |||||||||||||||||||||||||||||||||
Total loan origination volume | 1,533 | 5,737 | 1,714 | 3,272 | 1,184 |
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 (dollars) (1) | ||||||||||||||||||||
Portfolio | $ | 78,547 | $ | 148,574 | $ | 59,458 | $ | 9,244 | $ | 48,939 | ||||||||||
SRL | 197,864 | 368,306 | 104,992 | 11,144 | 100,331 | |||||||||||||||
Fix & flip | 112,312 | 208,366 | 90,018 | 68,049 | 225,765 | |||||||||||||||
New construction | 15,376 | 33,014 | 3,422 | — | 93,454 | |||||||||||||||
Agricultural | 43,216 | 89,525 | 83,013 | 1,450 | 79,947 | |||||||||||||||
Total loan origination volume | $ | 447,315 | $ | 847,785 | $ | 340,903 | $ | 89,887 | $ | 548,436 | ||||||||||
Loan origination volume (units) (1) | ||||||||||||||||||||
Portfolio | 99 | 173 | 71 | 12 | 34 | |||||||||||||||
SRL | 1,082 | 2,041 | 643 | 75 | 618 | |||||||||||||||
Fix & flip | 472 | 917 | 430 | 318 | 1,070 | |||||||||||||||
New construction | 53 | 109 | 13 | (1 | ) | 275 | ||||||||||||||
Agricultural | 8 | 32 | 27 | 1 | 39 | |||||||||||||||
Total loan origination volume | 1,714 | 3,272 | 1,184 | 405 | 2,036 | |||||||||||||||
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 September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net origination gains | $ | 13,604 | $ | 24,425 | $ | 5,431 | $ | 1,357 | $ | 9,939 | Net origination gains | $ | 1,061 | $ | 556 | $ | 13,604 | $ | 24,425 | $ | 5,431 | |||||||||||||||||||||||||||||||||||||
Fee income | 14,252 | 26,376 | 8,930 | 3,369 | 14,555 | Fee income | 11,416 | 45,233 | 14,252 | 26,376 | 8,930 | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $ | 27,856 | $ | 50,801 | $ | 14,361 | $ | 4,726 | $ | 24,494 | Total revenue | $ | 12,477 | $ | 45,789 | $ | 27,856 | $ | 50,801 | $ | 14,361 | |||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Salaries | $ | 7,409 | $ | 24,339 | $ | 7,693 | $ | 15,336 | $ | 4,769 | ||||||||||||||||||||||||||||
Commissions and bonus | 2,964 | 11,334 | 3,577 | 6,458 | 2,092 | |||||||||||||||||||||||||||||||||
Other salary related expenses | 1,361 | 4,514 | 1,064 | 2,044 | 797 | |||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | 11,734 | 40,187 | 12,334 | 23,838 | 7,658 | |||||||||||||||||||||||||||||||||
Loan origination fees | 5,526 | 19,303 | 5,216 | 10,155 | 3,140 | |||||||||||||||||||||||||||||||||
Professional fees | 698 | 2,092 | 1,148 | 2,480 | 891 | |||||||||||||||||||||||||||||||||
Other general and administrative expenses | 1,271 | 4,597 | 2,636 | 4,607 | 1,164 | |||||||||||||||||||||||||||||||||
Total general and administrative expenses | 7,495 | 25,992 | 9,000 | 17,242 | 5,195 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 306 | 1,031 | 344 | 647 | 538 | |||||||||||||||||||||||||||||||||
Total expenses | $ | 19,535 | $ | 67,210 | $ | 21,678 | $ | 41,727 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Salaries | $ | 7,693 | $ | 15,336 | $ | 4,769 | $ | 1,914 | $ | 9,018 | ||||||||||
Commissions and bonus | 3,577 | 6,458 | 2,092 | 1,227 | 4,918 | |||||||||||||||
Other salary related expenses | 1,064 | 2,044 | 797 | 424 | 1,823 | |||||||||||||||
Total salaries, benefits and related expenses | 12,334 | 23,838 | 7,658 | 3,565 | 15,759 | |||||||||||||||
Loan origination fees | 5,216 | 10,155 | 3,140 | 2,306 | 7,618 | |||||||||||||||
Professional fees | 1,148 | 2,480 | 891 | 683 | 3,097 | |||||||||||||||
Other general and administrative expenses | 2,636 | 4,607 | 1,164 | 430 | 2,620 | |||||||||||||||
Total general and administrative expenses | 9,000 | 17,242 | 5,195 | 3,419 | 13,335 | |||||||||||||||
Occupancy, equipment rentals and other office related expenses | 344 | 647 | 538 | 80 | 412 | |||||||||||||||
Total expenses | $ | 21,678 | $ | 41,727 | $ | 13,391 | $ | 7,064 | $ | 29,506 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Loss on sale and other income from loans held for sale, net | $ | (142) | $ | (1,057) | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Fee income | 43,743 | 178,043 | 87,592 | 168,722 | 76,383 | |||||||||||||||||||||||||||||||||
Net interest income (expense) | 565 | 1,228 | (77) | (92) | (36) | |||||||||||||||||||||||||||||||||
Total revenues | 44,166 | 178,214 | 87,515 | 168,630 | 76,347 | |||||||||||||||||||||||||||||||||
Total expenses | 55,690 | 190,111 | 78,688 | 151,962 | 62,970 | |||||||||||||||||||||||||||||||||
Other, net | 734 | 3,212 | 22 | 105 | 2 | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (10,790) | $ | (8,685) | $ | 8,849 | $ | 16,773 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Fee income | $ | 87,592 | $ | 168,722 | $ | 76,383 | $ | 53,249 | $ | 138,819 | ||||||||||
Net interest expense | (77 | ) | (92 | ) | (36 | ) | (48 | ) | (81 | ) | ||||||||||
Total revenue | 87,515 | 168,630 | 76,347 | 53,201 | 138,738 | |||||||||||||||
Total expenses | 78,688 | 151,962 | 62,970 | 45,304 | 123,453 | |||||||||||||||
Other, net | 22 | 105 | 2 | — | — | |||||||||||||||
NET INCOME BEFORE TAXES | $ | 8,849 | $ | 16,773 | $ | 13,379 | $ | 7,897 | $ | 15,285 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Title insurance underwriter policies | 22,727 | 101,154 | 57,185 | 113,366 | 48,814 | |||||||||||||||||||||||||||||||||
Incenter title agent orders | 10,849 | 54,027 | 59,429 | 114,864 | 54,960 | |||||||||||||||||||||||||||||||||
Incenter title agent closings | 8,121 | 48,288 | 48,694 | 92,252 | 46,991 | |||||||||||||||||||||||||||||||||
Total appraisals | 10,063 | 32,272 | 12,600 | 22,951 | 7,427 | |||||||||||||||||||||||||||||||||
Full-time employee average count for fulfillment revenue | 769 | 873 | 986 | 986 | 858 | |||||||||||||||||||||||||||||||||
Total MSR valuations performed | 152 | 433 | 137 | 274 | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Incenter title agent orders | 59,429 | 114,864 | 54,960 | 45,102 | 122,331 | |||||||||||||||
Incenter title agent closings | 48,694 | 92,252 | 46,991 | 30,228 | 78,088 | |||||||||||||||
Total appraisals | 12,600 | 22,951 | 7,427 | 6,033 | 15,767 | |||||||||||||||
Title insurance underwriter policies | 57,185 | 113,366 | 48,814 | 24,050 | 53,509 | |||||||||||||||
FTE count for fulfillment revenue | 986 | 986 | 858 | 41 | 756 | |||||||||||||||
Total MSR valuations performed | 137 | 274 | 124 | 135 | 391 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Insurance underwriting services | $ | 16,541 | $ | 79,955 | $ | 42,717 | $ | 77,629 | $ | 33,322 | ||||||||||||||||||||||||||||
Title agent and closing services | 16,037 | 56,381 | 24,988 | 58,866 | 31,750 | |||||||||||||||||||||||||||||||||
Fulfillment services | 4,316 | 18,786 | 7,337 | 14,160 | 6,779 | |||||||||||||||||||||||||||||||||
MSR trade brokerage, valuation, and other services | 2,782 | 13,066 | 8,306 | 12,156 | 2,462 | |||||||||||||||||||||||||||||||||
Student and consumer loan origination services | 3,567 | 7,632 | 3,512 | 5,012 | 2,012 | |||||||||||||||||||||||||||||||||
Other income | 358 | 1,166 | 732 | 899 | 58 | |||||||||||||||||||||||||||||||||
Net interest income (expense) | 565 | 1,228 | (77) | (92) | (36) | |||||||||||||||||||||||||||||||||
Total revenue | $ | 44,166 | $ | 178,214 | $ | 87,515 | $ | 168,630 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Title agent and closing services | $ | 24,988 | $ | 58,866 | $ | 31,750 | $ | 24,797 | $ | 68,727 | ||||||||||
Insurance underwriting services | 42,717 | 77,629 | 33,322 | 17,768 | 40,943 | |||||||||||||||
Student and consumer loan origination services | 3,512 | 5,012 | 2,012 | 3,616 | 9,316 | |||||||||||||||
Fulfillment services | 7,337 | 14,160 | 6,779 | 4,492 | 12,030 | |||||||||||||||
MSR trade brokerage, valuation and other services | 8,306 | 12,156 | 2,462 | 2,562 | 7,747 | |||||||||||||||
Other income | 732 | 899 | 58 | 14 | 56 | |||||||||||||||
Net interest expense | (77 | ) | (92 | ) | (36 | ) | (48 | ) | (81 | ) | ||||||||||
Total revenue | $ | 87,515 | $ | 168,630 | $ | 76,347 | $ | 53,201 | $ | 138,738 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Salaries | $ | 16,203 | $ | 52,711 | $ | 18,129 | $ | 36,480 | $ | 16,715 | ||||||||||||||||||||||||||||
Commissions and bonus | 4,933 | 17,850 | 9,755 | 18,445 | 7,045 | |||||||||||||||||||||||||||||||||
Other salary related expenses | 3,211 | 12,587 | 5,183 | 11,445 | 4,001 | |||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | 24,347 | 83,148 | 33,067 | 66,370 | 27,761 | |||||||||||||||||||||||||||||||||
Title and closing | 19,339 | 68,999 | 31,358 | 56,548 | 25,062 | |||||||||||||||||||||||||||||||||
Communication and data processing | 2,772 | 8,780 | 3,760 | 6,885 | 2,960 | |||||||||||||||||||||||||||||||||
Other general and administrative expenses | 8,303 | 26,509 | 9,298 | 19,939 | 6,040 | |||||||||||||||||||||||||||||||||
Total general and administrative expenses | 30,414 | 104,288 | 44,416 | 83,372 | 34,062 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 929 | 2,675 | 1,205 | 2,220 | 1,147 | |||||||||||||||||||||||||||||||||
Total expenses | $ | 55,690 | $ | 190,111 | $ | 78,688 | $ | 151,962 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Salaries | $ | 18,129 | $ | 36,480 | $ | 16,715 | $ | 10,099 | $ | 29,830 | ||||||||||
Commissions and bonus | 9,755 | 18,445 | 7,045 | 8,017 | 18,570 | |||||||||||||||
Other salary related expenses | 5,183 | 11,445 | 4,001 | 2,805 | 8,200 | |||||||||||||||
Total salaries, benefits and related expenses | 33,067 | 66,370 | 27,761 | 20,921 | 56,600 | |||||||||||||||
Title and closing | 31,358 | 56,548 | 25,062 | 15,835 | 44,512 | |||||||||||||||
Communication and data processing | 3,760 | 6,885 | 2,960 | 2,949 | 7,361 | |||||||||||||||
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 | |||||||||||||||
Total general and administrative expenses | 44,416 | 83,372 | 34,062 | 23,363 | 64,206 | |||||||||||||||
Occupancy, equipment rentals and other office related expenses | 1,205 | 2,220 | 1,147 | 1,020 | 2,647 | |||||||||||||||
Total expenses | $ | 78,688 | $ | 151,962 | $ | 62,970 | $ | 45,304 | $ | 123,453 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Gain (loss) on sale and other income from loans held for sale, net | $ | (6,650) | $ | (463) | $ | 13,664 | $ | 21,412 | $ | 5,065 | ||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations | (80,721) | (255,754) | (448) | 10,776 | 2,750 | |||||||||||||||||||||||||||||||||
Fee income | 7,147 | 64,814 | 14,937 | 18,514 | 36,191 | |||||||||||||||||||||||||||||||||
Net interest expense | (24,047) | (58,643) | (17,799) | (33,650) | (14,816) | |||||||||||||||||||||||||||||||||
Total revenue | (104,271) | (250,046) | 10,354 | 17,052 | 29,190 | |||||||||||||||||||||||||||||||||
Total expenses | 27,463 | 97,204 | 30,068 | 63,325 | 24,406 | |||||||||||||||||||||||||||||||||
Impairment of intangibles and other assets | (3,800) | (3,800) | — | — | — | |||||||||||||||||||||||||||||||||
Other, net | 784 | 848 | 252 | 8 | 895 | |||||||||||||||||||||||||||||||||
NET INCOME (LOSS) BEFORE TAXES | $ | (134,750) | $ | (350,202) | $ | (19,462) | $ | (46,265) | $ | 5,679 |
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 | $ | 13,664 | $ | 21,412 | $ | 5,065 | $ | 706 | $ | 6,323 | ||||||||||
Net fair value (losses) gains | (448 | ) | 10,776 | 2,750 | 46,261 | 72,142 | ||||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | ||||||||||
Fee income | 14,937 | 18,514 | 36,191 | 10,965 | 13,357 | |||||||||||||||
Total revenue | 10,354 | 17,052 | 29,190 | 41,933 | 31,342 | |||||||||||||||
Total expenses | 30,068 | 63,325 | 24,406 | 22,989 | 61,735 | |||||||||||||||
Other, net | 252 | 8 | 895 | — | — | |||||||||||||||
NET (LOSS) INCOME BEFORE TAXES | $ | (19,462 | ) | $ | (46,265 | ) | $ | 5,679 | $ | 18,944 | $ | (30,393 | ) | |||||||
September 30, 2021 | December 31, 2020 | ||||||||||||||||||
Successor | Predecessor | September 30, 2022 | December 31, 2021 | ||||||||||||||||
Cash and cash equivalents | $ | 45,401 | $ | 47,024 | Cash and cash equivalents | $ | 43,484 | $ | 43,261 | ||||||||||
Restricted cash | $ | 322,887 | $ | 303,925 | Restricted cash | 207,835 | 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 | Loans held for investment, subject to HMBS liabilities, at fair value | 10,916,551 | 10,556,054 | ||||||||||||||||
Loans held for investment, subject to nonrecourse debt, at fair value | Loans held for investment, subject to nonrecourse debt, at fair value | 6,741,391 | 6,218,194 | ||||||||||||||||
Loans held for investment, at fair value | Loans held for investment, at fair value | 1,307,413 | 1,031,328 | ||||||||||||||||
MSRs, at fair value | MSRs, at fair value | 103,069 | 427,942 | ||||||||||||||||
Other assets, net | 185,898 | 165,810 | Other assets, net | 306,065 | 228,069 | ||||||||||||||
Total long-term investment assets | 18,259,915 | 16,753,594 | Total long-term investment assets | 19,625,808 | 18,824,964 | ||||||||||||||
Mortgage loans held for sale, at fair value | 142,906 | 142,226 | |||||||||||||||||
Loans held for sale, at fair value | Loans held for sale, at fair value | 245,451 | 149,425 | ||||||||||||||||
Total earning assets | 18,402,821 | 16,895,820 | Total earning assets | 19,871,259 | 18,974,389 | ||||||||||||||
HMBS related obligations, at fair value | 10,216,310 | $ | 9,788,668 | HMBS related obligations, at fair value | 10,806,867 | 10,422,358 | |||||||||||||
Nonrecourse debt, at fair value | 5,831,083 | 5,271,842 | Nonrecourse debt, at fair value | 6,745,526 | 6,111,242 | ||||||||||||||
Other financing lines of credit | 1,508,916 | 1,010,669 | Other financing lines of credit | 1,704,365 | 1,525,529 | ||||||||||||||
Payables and other liabilities | 66,698 | 96,762 | Payables and other liabilities | 148,663 | 96,080 | ||||||||||||||
Total financing of portfolio | 17,623,007 | 16,167,941 | Total financing of portfolio | 19,405,421 | 18,155,209 | ||||||||||||||
Net equity in earning assets | $ | 779,814 | $ | 727,879 | Net equity in earning assets | $ | 465,838 | $ | 819,180 | ||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2022 | December 31, 2021 | ||||||||||||||||
Successor | Predecessor | ||||||||||||||||||
Mortgage Servicing Rights Portfolio | |||||||||||||||||||
MSRs Portfolio | MSRs Portfolio | ||||||||||||||||||
Loan count | 103,422 | 69,301 | Loan count | 24,255 | 118,939 | ||||||||||||||
Ending unpaid principal balance (“UPB”) | $ | 33,301,683 | $ | 22,269,362 | |||||||||||||||
Ending unpaid principal balance | Ending unpaid principal balance | $ | 7,767,188 | $ | 38,219,162 | ||||||||||||||
Average unpaid principal balance | $ | 322 | $ | 321 | Average unpaid principal balance | $ | 320 | $ | 321 | ||||||||||
Weighted average coupon | 3.02 | % | 3.15 | % | Weighted average coupon | 3.56 | % | 3.01 | % | ||||||||||
Weighted average age (in months) | 9 | 4 | Weighted average age (in months) | 15 | 11 | ||||||||||||||
Weighted average FICO credit score | 758 | 760 | Weighted average FICO credit score | 750 | 756 | ||||||||||||||
90+ day delinquency rate | 0.1 | % | 0.1 | % | 90+ day delinquency rate | 0.6 | % | 0.1 | % | ||||||||||
Total prepayment speed | 9.5 | % | 12.1 | % | Total prepayment speed | 5.8 | % | 8.3 | % | ||||||||||
Reverse Mortgages | Reverse Mortgages | ||||||||||||||||||
Loan count | 59,556 | 58,230 | Loan count | 62,516 | 59,480 | ||||||||||||||
Active UPB | $ | 14,352,606 | $ | 13,355,570 | |||||||||||||||
Active unpaid principal balance | Active unpaid principal balance | $ | 17,303,930 | $ | 14,902,734 | ||||||||||||||
Due and payable | 279,268 | 484,233 | Due and payable | 365,525 | 322,057 | ||||||||||||||
Foreclosure | 689,749 | 348,768 | Foreclosure | 506,635 | 599,087 | ||||||||||||||
Claims pending | 65,352 | 76,346 | Claims pending | 93,357 | 73,327 | ||||||||||||||
Ending unpaid principal balance | $ | 15,386,975 | $ | 14,264,917 | Ending unpaid principal balance | $ | 18,269,447 | $ | 15,897,205 | ||||||||||
Average unpaid principal balance | $ | 258 | $ | 245 | Average unpaid principal balance | $ | 292 | $ | 267 | ||||||||||
Weighted average coupon | 3.94 | % | 4.30 | % | Weighted average coupon | 5.28 | % | 3.92 | % | ||||||||||
Weighted average age (in months) | 44 | 44 | Weighted average age (in months) | 40 | 43 | ||||||||||||||
Percentage in foreclosure | 4.5 | % | 2.4 | % | Percentage in foreclosure | 2.8 | % | 3.8 | % | ||||||||||
Commercial (SRL/Portfolio/Fix & Flip) | Commercial (SRL/Portfolio/Fix & Flip) | ||||||||||||||||||
Loan count | 2,147 | 1,993 | Loan count | 3,170 | 2,222 | ||||||||||||||
Ending unpaid principal balance | $ | 453,372 | $ | 493,817 | Ending unpaid principal balance | $ | 668,509 | $ | 479,190 | ||||||||||
Average unpaid principal balance | $ | 211 | $ | 248 | Average unpaid principal balance | $ | 216 | $ | 216 | ||||||||||
Weighted average coupon | 7.52 | % | 8.50 | % | Weighted average coupon | 8.11 | % | 7.43 | % | ||||||||||
Weighted average loan age (in months) | 9 | 12 | Weighted average loan age (in months) | 7 | 8 | ||||||||||||||
SRL conditional prepayment rate | 1.9 | % | 2.9 | % | SRL conditional prepayment rate | 0.8 | % | 1.4 | % | ||||||||||
SRL non-performing (60+ DPD) | 1.4 | % | 2.2 | % | |||||||||||||||
SRL non-performing (60+ days past due) | SRL non-performing (60+ days past due) | 1.0 | % | 1.3 | % | ||||||||||||||
F&F single month mortality | 8.5 | % | 8.8 | % | F&F single month mortality | 8.2 | % | 8.9 | % | ||||||||||
F&F non-performing (60+ DPD) | 14.9 | % | 6.5 | % | |||||||||||||||
F&F non-performing (60+ days past due) | F&F non-performing (60+ days past due) | 7.5 | % | 13.6 | % | ||||||||||||||
Agricultural Loans | Agricultural Loans | ||||||||||||||||||
Loan count | 72 | 42 | Loan count | 72 | 80 | ||||||||||||||
Ending unpaid principal balance | $ | 186,177 | $ | 69,127 | Ending unpaid principal balance | $ | 205,806 | $ | 144,328 | ||||||||||
Average unpaid principal balance | $ | 2,586 | $ | 1,646 | Average unpaid principal balance | $ | 1,804 | $ | 1,804 | ||||||||||
Weighted average coupon | 7.34 | % | 7.70 | % | Weighted average coupon | 7.08 | % | 7.14 | % | ||||||||||
Weighted average loan age (in months) | 7 | 5 | Weighted average loan age (in months) | 9 | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Investment and Capital Markets | ||||||||||||||||||||
Number of structured deals | 4 | 7 | 1 | 2 | 8 | |||||||||||||||
Structured deals (size in notes) | $ | 1,443,121 | $ | 2,575,653 | $ | 571,448 | $ | 954,884 | $ | 2,715,236 | ||||||||||
Number of whole loan trades | 11 | 21 | 8 | 1 | 3 | |||||||||||||||
UPB of whole loan trades | $ | 294,898 | $ | 512,966 | $ | 195,929 | $ | 44,704 | $ | 168,869 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Investment and Capital Markets | ||||||||||||||||||||||||||||||||||||||
Number of structured deals | 2 | 6 | 4 | 7 | 1 | |||||||||||||||||||||||||||||||||
Structured deals (size in notes) | $ | 777,157 | $ | 2,726,771 | $ | 1,443,121 | $ | 2,575,653 | $ | 571,448 | ||||||||||||||||||||||||||||
Number of whole loan trades | 3 | 27 | 11 | 21 | 8 | |||||||||||||||||||||||||||||||||
UPB of whole loan trades | $ | 192,578 | $ | 831,014 | $ | 294,898 | $ | 512,966 | $ | 195,929 |
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
REVENUE | ||||||||||||||||||||||||||||||||||||||
Gain (loss) on sale and other income from loans held for sale, net | $ | (6,650) | $ | (463) | $ | 13,664 | $ | 21,412 | $ | 5,065 | ||||||||||||||||||||||||||||
Net fair value gains (losses) on loans and related obligations: | ||||||||||||||||||||||||||||||||||||||
Net fair value gains from portfolio activity | 46,565 | 118,524 | 42,875 | 79,480 | 32,386 | |||||||||||||||||||||||||||||||||
Net fair value losses from changes in market inputs or model assumptions | (127,286) | (374,278) | (43,323) | (68,704) | (29,636) | |||||||||||||||||||||||||||||||||
Total net fair value gains (losses) on loans and related obligations | (80,721) | (255,754) | (448) | 10,776 | 2,750 | |||||||||||||||||||||||||||||||||
Net interest expense | (24,047) | (58,643) | (17,799) | (33,650) | (14,816) | |||||||||||||||||||||||||||||||||
Fee income: | ||||||||||||||||||||||||||||||||||||||
Servicing income (MSR) | 3,671 | 54,117 | 6,060 | 6,360 | 33,698 | |||||||||||||||||||||||||||||||||
Underwriting, advisory and valuation fees | 86 | 876 | 5,127 | 7,028 | 997 | |||||||||||||||||||||||||||||||||
Other fees | 3,390 | 9,821 | 3,750 | 5,126 | 1,496 | |||||||||||||||||||||||||||||||||
Total fee income | 7,147 | 64,814 | 14,937 | 18,514 | 36,191 | |||||||||||||||||||||||||||||||||
Total revenue | $ | (104,271) | $ | (250,046) | $ | 10,354 | $ | 17,052 | $ | 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 | ||||||||||||||||
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 | ||||||||||
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 | ) | |||||||||||
Total net fair value (losses) gains | (448 | ) | 10,776 | 2,750 | 46,261 | 72,142 | ||||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | ||||||||||
Fee income: | ||||||||||||||||||||
Servicing income (MSR) | 6,060 | 6,360 | 33,698 | 8,060 | 9,846 | |||||||||||||||
Underwriting, advisory and valuation fees | 5,127 | 7,028 | 997 | — | 180 | |||||||||||||||
Asset management fees | — | — | 9 | 366 | 1,319 | |||||||||||||||
Other fees | 3,750 | 5,126 | 1,487 | 2,539 | 2,012 | |||||||||||||||
Total fee income | 14,937 | 18,514 | 36,191 | 10,965 | 13,357 | |||||||||||||||
Total revenue | $ | 10,354 | $ | 17,052 | $ | 29,190 | $ | 41,933 | $ | 31,342 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Interest income on commercial and reverse loans | $ | 228,896 | $ | 582,350 | $ | 160,683 | $ | 334,623 | $ | 160,568 | ||||||||||||||||||||||||||||
Interest expense on HMBS and nonrecourse obligations | (149,200) | (380,446) | (107,593) | (221,067) | (119,201) | |||||||||||||||||||||||||||||||||
Net interest margin included in net fair value gains and losses on mortgage loans(1) | 79,696 | 201,904 | 53,090 | 113,556 | 41,367 | |||||||||||||||||||||||||||||||||
Interest income on mortgage loans held for sale | 2,051 | 4,980 | 379 | 756 | 138 | |||||||||||||||||||||||||||||||||
Interest expense on warehouse lines of credit | (26,098) | (63,623) | (18,178) | (34,406) | (14,954) | |||||||||||||||||||||||||||||||||
Net interest expense | (24,047) | (58,643) | (17,799) | (33,650) | (14,816) | |||||||||||||||||||||||||||||||||
NET INTEREST MARGIN | $ | 55,649 | $ | 143,261 | $ | 35,291 | $ | 79,906 | $ | 26,551 |
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 | $ | 152,641 | $ | 300,585 | $ | 149,875 | $ | 171,244 | $ | 532,725 | ||||||||||
Interest expense on HMBS and nonrecourse obligations | (109,766 | ) | (221,107 | ) | (114,910 | ) | (126,426 | ) | (388,904 | ) | ||||||||||
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 | |||||||||||||||
Interest income on mortgage loans held for sale | 296 | 483 | 138 | 136 | 619 | |||||||||||||||
Interest expense on warehouse lines of credit | (18,178 | ) | (34,216 | ) | (14,954 | ) | (15,636 | ) | (60,604 | ) | ||||||||||
Other interest income (expense) | 83 | 83 | — | (499 | ) | (495 | ) | |||||||||||||
Net interest expense | (17,799 | ) | (33,650 | ) | (14,816 | ) | (15,999 | ) | (60,480 | ) | ||||||||||
NET INTEREST MARGIN | $ | 25,076 | $ | 45,828 | $ | 20,149 | $ | 28,819 | $ | 83,341 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Salaries and bonuses | $ | 9,138 | $ | 30,675 | $ | 9,080 | $ | 24,621 | $ | 5,650 | ||||||||||||||||||||||||||||
Other salary related expenses | 672 | 2,986 | 380 | 827 | 497 | |||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | 9,810 | 33,661 | 9,460 | 25,448 | 6,147 | |||||||||||||||||||||||||||||||||
Securitization expenses | 4,793 | 17,832 | 9,877 | 14,610 | 4,459 | |||||||||||||||||||||||||||||||||
Servicing related expenses | 7,488 | 25,813 | 9,093 | 17,918 | 8,651 | |||||||||||||||||||||||||||||||||
Other general and administrative expenses | 5,180 | 19,316 | 1,441 | 5,026 | 4,887 | |||||||||||||||||||||||||||||||||
Total general and administrative expenses | 17,461 | 62,961 | 20,411 | 37,554 | 17,997 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 192 | 582 | 197 | 323 | 262 | |||||||||||||||||||||||||||||||||
Total expenses | $ | 27,463 | $ | 97,204 | $ | 30,068 | $ | 63,325 | $ | 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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Salaries and bonuses | $ | 9,080 | $ | 24,621 | $ | 5,650 | $ | 6,043 | $ | 15,835 | ||||||||||
Other salary related expenses | 380 | 827 | 497 | 917 | 1,613 | |||||||||||||||
Total salaries, benefits and related expenses | 9,460 | 25,448 | 6,147 | 6,960 | 17,448 | |||||||||||||||
Securitization expenses | 9,877 | 14,610 | 4,459 | 5,242 | 13,592 | |||||||||||||||
Servicing related expenses | 9,093 | 17,918 | 8,651 | 6,723 | 19,143 | |||||||||||||||
Other general and administrative expenses | 1,441 | 5,026 | 4,887 | 3,918 | 11,092 | |||||||||||||||
Total general and administrative expenses | 20,411 | 37,554 | 17,997 | 15,883 | 43,827 | |||||||||||||||
Occupancy and equipment rentals | 197 | 323 | 262 | 146 | 460 | |||||||||||||||
Total expenses | $ | 30,068 | $ | 63,325 | $ | 24,406 | $ | 22,989 | $ | 61,735 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Net interest expense | $ | (6,811) | $ | (20,064) | $ | (6,720) | $ | (13,287) | $ | (7,744) | ||||||||||||||||||||||||||||
Total interest expense | (6,811) | (20,064) | (6,720) | (13,287) | (7,744) | |||||||||||||||||||||||||||||||||
Total expenses | 23,679 | 90,445 | 28,672 | 64,669 | 18,683 | |||||||||||||||||||||||||||||||||
Other, net | 19,688 | 33,459 | 10,205 | 8,019 | (9,464) | |||||||||||||||||||||||||||||||||
NET LOSS BEFORE TAXES | $ | (10,802) | $ | (77,050) | $ | (25,187) | $ | (69,937) | $ | (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 | ||||||||||||||||
Successor | Predecessor | |||||||||||||||||||
Fee income | $ | — | $ | — | $ | — | $ | 2,471 | $ | 2,514 | ||||||||||
Net interest expense | (6,720 | ) | (13,287 | ) | (7,744 | ) | (385 | ) | (4,605 | ) | ||||||||||
Total interest and other expense | (6,720 | ) | (13,287 | ) | (7,744 | ) | 2,086 | (2,091 | ) | |||||||||||
Total expenses | 28,672 | 64,669 | 18,683 | 9,615 | 32,837 | |||||||||||||||
Other, net | 10,205 | 8,019 | (9,464 | ) | (2,470 | ) | (2,514 | ) | ||||||||||||
NET LOSS | $ | (25,187 | ) | $ | (69,937 | ) | $ | (35,891 | ) | $ | (9,999 | ) | $ | (37,442 | ) | |||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||
Salaries and bonuses | $ | 29,174 | $ | 102,716 | $ | 35,944 | $ | 82,973 | $ | 22,779 | ||||||||||||||||||||||||||||
Other salary related expenses | 3,749 | 11,918 | 3,379 | 5,611 | 3,306 | |||||||||||||||||||||||||||||||||
Shared services - payroll allocations | (22,633) | (68,806) | (19,520) | (43,954) | (18,657) | |||||||||||||||||||||||||||||||||
Total salaries, benefits, and related expenses | 10,290 | 45,828 | 19,803 | 44,630 | 7,428 | |||||||||||||||||||||||||||||||||
Communication and data processing | 5,810 | 15,409 | 4,368 | 8,208 | 3,015 | |||||||||||||||||||||||||||||||||
Professional fees | 4,982 | 19,460 | 488 | 8,905 | 10,334 | |||||||||||||||||||||||||||||||||
Other general and administrative expenses | 4,479 | 14,843 | 8,141 | 11,621 | 1,481 | |||||||||||||||||||||||||||||||||
Shared services - general and administrative allocations | (2,629) | (7,894) | (5,404) | (10,669) | (3,694) | |||||||||||||||||||||||||||||||||
Total general and administrative expenses | 12,642 | 41,818 | 7,593 | 18,065 | 11,136 | |||||||||||||||||||||||||||||||||
Occupancy, equipment rentals, and other office related expenses | 747 | 2,799 | 1,276 | 1,974 | 119 | |||||||||||||||||||||||||||||||||
Total expenses | $ | 23,679 | $ | 90,445 | $ | 28,672 | $ | 64,669 | $ | 18,683 |
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 | |||||||||||||||||||
Salaries and bonuses | $ | 35,944 | $ | 82,973 | $ | 22,779 | $ | 16,566 | $ | 44,022 | ||||||||||
Other salary related expenses | 3,379 | 5,611 | 3,306 | 1,196 | 3,011 | |||||||||||||||
Shared services - payroll allocations | (19,520 | ) | (43,954 | ) | (18,657 | ) | (15,867 | ) | (29,356 | ) | ||||||||||
Total salaries, benefits and related expenses | 19,803 | 44,630 | 7,428 | 1,895 | 17,677 | |||||||||||||||
Communication and data processing | 4,368 | 8,208 | 3,015 | 1,300 | 4,141 | |||||||||||||||
Professional fees | 488 | 8,905 | 10,334 | 8,515 | 15,440 | |||||||||||||||
Other general and administrative expenses | 8,141 | 11,621 | 1,481 | 873 | 3,317 | |||||||||||||||
Shared services - general and administrative allocations | (5,404 | ) | (10,669 | ) | (3,694 | ) | (3,402 | ) | (9,080 | ) | ||||||||||
Total general and administrative expenses | 7,593 | 18,065 | 11,136 | 7,286 | 13,818 | |||||||||||||||
Occupancy, equipment rentals and other office related expenses | 1,276 | 1,974 | 119 | 434 | 1,342 | |||||||||||||||
Total expenses | $ | 28,672 | $ | 64,669 | $ | 18,683 | $ | 9,615 | $ | 32,837 | ||||||||||
For the three months ended September 30, 2022 | For the nine months ended September 30, 2022 | For the three months ended September 30, 2021 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) and Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (301,700) | $ | (533,518) | $ | 50,110 | $ | 35,286 | $ | 124,320 | ||||||||||||||||||||||||||||||||||
Add back: Benefit (provision) for income taxes | 2,974 | 17,249 | (4,440) | (5,526) | (1,137) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) before taxes | (304,674) | (550,767) | 54,550 | 40,812 | 125,457 | |||||||||||||||||||||||||||||||||||||||
Adjustments for: | ||||||||||||||||||||||||||||||||||||||||||||
Changes in fair value(1) | 116,359 | 322,924 | 19,713 | 43,795 | 11,536 | |||||||||||||||||||||||||||||||||||||||
Amortization and impairment of intangibles and other assets(2) | 151,992 | 179,608 | 13,457 | 26,914 | 629 | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation(3) | 6,821 | 23,440 | 10,626 | 21,268 | — | |||||||||||||||||||||||||||||||||||||||
Certain non-recurring costs(4) | 2,882 | 20,537 | 2,602 | 46,080 | 6,719 | |||||||||||||||||||||||||||||||||||||||
Adjusted Net Income (Loss) before taxes | (26,620) | (4,258) | 100,948 | 178,869 | 144,341 | |||||||||||||||||||||||||||||||||||||||
Benefit (provision) for income taxes(5) | 6,987 | 165 | (26,339) | (46,983) | (37,529) | |||||||||||||||||||||||||||||||||||||||
Adjusted Net Income (Loss) | (19,633) | (4,093) | 74,609 | 131,886 | 106,812 | |||||||||||||||||||||||||||||||||||||||
Provision (benefit) for income taxes(5) | (6,987) | (165) | 26,339 | 46,983 | 37,529 | |||||||||||||||||||||||||||||||||||||||
Depreciation | 3,165 | 8,285 | 2,519 | 4,800 | 2,163 | |||||||||||||||||||||||||||||||||||||||
Interest expense on non-funding debt | 6,876 | 20,317 | 6,842 | 13,536 | 7,706 | |||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (16,579) | $ | 24,344 | $ | 110,309 | $ | 197,205 | $ | 154,210 | ||||||||||||||||||||||||||||||||||
GAAP PER SHARE MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to controlling interest | $ | (84,486) | $ | (133,659) | $ | 21,384 | $ | 23,649 | N/A | |||||||||||||||||||||||||||||||||||
Basic weighted average shares outstanding | 62,804,809 | 61,993,353 | 59,861,171 | 59,871,386 | N/A | |||||||||||||||||||||||||||||||||||||||
Basic net earnings (loss) per share | $ | (1.35) | $ | (2.16) | $ | 0.36 | $ | 0.39 | N/A | |||||||||||||||||||||||||||||||||||
If-converted method net earnings (loss) | $ | (84,485) | $ | (441,059) | $ | 42,861 | $ | 33,125 | N/A | |||||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 62,804,809 | 188,375,945 | 191,161,431 | 191,180,610 | N/A | |||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share | $ | (1.35) | $ | (2.34) | $ | 0.22 | $ | 0.17 | N/A | |||||||||||||||||||||||||||||||||||
NON-GAAP PER SHARE MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
Adjusted Net Income (Loss) | $ | (19,633) | $ | (4,093) | $ | 74,609 | $ | 131,886 | $ | 106,812 | ||||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding | 187,877,936 | 188,375,945 | 191,161,431 | 191,180,610 | 191,200,000 | |||||||||||||||||||||||||||||||||||||||
Adjusted Diluted Earnings (Loss) per Share | $ | (0.10) | $ | (0.02) | $ | 0.39 | $ | 0.69 | $ | 0.56 | ||||||||||||||||||||||||||||||||||
Book equity | $ | 575,086 | $ | 575,086 | $ | 2,432,174 | $ | 2,432,174 | $ | 844,386 | ||||||||||||||||||||||||||||||||||
Ending diluted shares | 187,877,936 | 188,375,945 | 189,425,808 | 189,425,808 | 191,200,000 | |||||||||||||||||||||||||||||||||||||||
Book Equity per Diluted Share | $ | 3.06 | $ | 3.05 | $ | 12.84 | $ | 12.84 | $ | 4.42 |
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 nine months ended September 30, 2022 | For the six months ended September 30, 2021 | For the three months ended March 31, 2021 | ||||||||||||||||||||||||||||||
Successor | Predecessor | |||||||||||||||||||||||||||||||
Net cash provided by (used in): | ||||||||||||||||||||||||||||||||
Operating activities | $ | 1,061,015 | $ | (72,613) | $ | 118,043 | ||||||||||||||||||||||||||
Investing activities | (1,656,117) | (710,072) | (312,047) | |||||||||||||||||||||||||||||
Financing activities | 510,937 | 672,835 | 307,695 |
April 1, 2021 to September 30, 2021 | January 1, 2021 to March 31, 2021 | For the nine months ended September 30, 2020 | ||||||||||
Successor | Predecessor | |||||||||||
Net cash (used in) provided by operating activities | (72,613 | ) | 118,043 | (376,772 | ) | |||||||
Net cash used in investing activities | (710,072 | ) | (312,047 | ) | (995,201 | ) | ||||||
Net cash provided by financing activities | 672,835 | 307,695 | 1,503,052 |
Mortgage Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2022 | |||||||||||||||||
Committed | November 2022 - May 2023 | $ | 475,000 | $ | 178,036 | |||||||||||||||
Uncommitted | October 2022 - August 2023 | 1,575,000 | 435,370 | |||||||||||||||||
Total mortgage warehouse facilities | $ | 2,050,000 | $ | 613,406 |
Mortgage Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2021 | |||||||
Committed | October 2021 - August 2022 | $ | 975,000 | $ | 694,765 | |||||
Uncommitted | October 2021 - March 2022 | 2,600,000 | 1,088,778 | |||||||
Total mortgage warehouse facilities | $ | 3,575,000 | $ | 1,783,543 | ||||||
Reverse Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2022 | |||||||||||||||||
Committed | April 2023 - June 2023 | $ | 500,000 | $ | 431,364 | |||||||||||||||
Uncommitted | November 2022 - September 2023 | 975,000 | 504,071 | |||||||||||||||||
Total reverse warehouse facilities | $ | 1,475,000 | $ | 935,435 |
Reverse Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2021 | |||||||
Committed | October 2021 - June 2022 | $ | 475,000 | $ | 242,170 | |||||
Uncommitted | December 2021 - August 2022 | 725,000 | 378,247 | |||||||
Total reverse warehouse facilities | $ | 1,200,000 | $ | 620,417 | ||||||
Commercial Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2022 | |||||||||||||||||
Committed | April 2023 - November 2023 | $ | 245,000 | $ | 244,514 | |||||||||||||||
Uncommitted | February 2023 - August 2023 | 151,500 | 85,830 | |||||||||||||||||
Total commercial warehouse facilities | $ | 396,500 | $ | 330,344 |
Commercial Warehouse Facilities | Maturity Date | Total Capacity | September 30, 2021 | |||||||
Committed | February 2022 - August 2022 | $ | 360,000 | $ | 148,166 | |||||
Uncommitted | February 2022 - November 2023 | 150,000 | 1,621 | |||||||
Total commercial warehouse facilities | $ | 510,000 | $ | 149,787 | ||||||
Other Financing Lines of Credit | Maturity Date | Total Capacity | September 30, 2022 | |||||||||||||||||
Committed | February 2023 - March 2026 | $ | 490,000 | $ | 387,751 | |||||||||||||||
Uncommitted | November 2022 - December 2022 | 39,065 | 39,065 | |||||||||||||||||
Total other secured lines of credit | $ | 529,065 | $ | 426,816 |
Other Secured Lines of Credit | Maturity Date | Total Capacity | September 30, 2021 | |||||||
Committed | December 2021 - N/A | $ | 912,500 | $ | 706,069 | |||||
Uncommitted | April 2022 - N/A | 114,834 | 65,338 | |||||||
Total other secured lines of credit (2) | $ | 1,027,334 | $ | 771,407 | ||||||
Total | Less than 1 year | 1- 3 years | 3 - 5 years | More than 5 years | ||||||||||||||||||||||||||||
Warehouse lines of credit | $ | 1,879,183 | $ | 1,766,683 | $ | 112,500 | $ | — | $ | — | ||||||||||||||||||||||
MSR line of credit | 10,227 | — | — | 10,227 | — | |||||||||||||||||||||||||||
Other secured lines of credit | 416,589 | 140,322 | — | — | 276,267 | |||||||||||||||||||||||||||
Nonrecourse debt(1) | 7,268,722 | 1,587,267 | 2,558,770 | 502,490 | 2,620,195 | |||||||||||||||||||||||||||
Notes payable | 382,810 | 30,000 | — | 352,810 | — | |||||||||||||||||||||||||||
Operating leases | 79,074 | 4,945 | 40,526 | 11,756 | 21,847 | |||||||||||||||||||||||||||
Total | $ | 10,036,605 | $ | 3,529,217 | $ | 2,711,796 | $ | 877,283 | $ | 2,918,309 |
Total | Less than 1 year | 1- 3 years | 3 - 5 years | More than 5 years | ||||||||||||||||
Contractual cash obligations: | ||||||||||||||||||||
Warehouse lines of credit | $ | 2,553,749 | $ | 2,338,277 | $ | 215,472 | $ | — | $ | — | ||||||||||
MSR line of credit | 205,808 | — | 88,072 | — | 117,736 | |||||||||||||||
Other secured lines of credit | 565,599 | 309,632 | 52,500 | — | 203,467 | |||||||||||||||
Nonrecourse debt (1) | 5,654,826 | 451,941 | 5,202,885 | — | — | |||||||||||||||
Notes payable | 353,567 | — | — | 353,567 | — | |||||||||||||||
Operating leases | 79,450 | 5,014 | 39,991 | 9,710 | 24,735 | |||||||||||||||
Total | $ | 9,412,999 | $ | 3,104,864 | $ | 5,598,920 | $ | 363,277 | $ | 345,938 | ||||||||||
September 30, 2022 | ||||||||||||||
Down 25 bps | Up 25 bps | |||||||||||||
(in thousands) | ||||||||||||||
Increase (decrease) in assets | ||||||||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 22,194 | $ | (21,978) | ||||||||||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||||||||
Reverse mortgage loans | 79,902 | (78,620) | ||||||||||||
Fix & flip mortgage loans | 603 | (600) | ||||||||||||
Agricultural loans | 216 | (215) | ||||||||||||
Mortgage loans held for investment: | ||||||||||||||
Reverse mortgage loans | 15,782 | (15,360) | ||||||||||||
Fix & flip mortgage loans | 395 | (393) | ||||||||||||
Agricultural loans | 1 | (1) | ||||||||||||
Mortgage loans held for sale: | ||||||||||||||
Residential mortgage loans | 3,554 | (3,755) | ||||||||||||
SRL | 443 | (437) | ||||||||||||
Portfolio | 687 | (676) | ||||||||||||
MSRs | (2,495) | 2,562 | ||||||||||||
Other assets | 331 | (331) | ||||||||||||
Derivative assets: | ||||||||||||||
IRLCs and LPCs | 6,047 | (6,387) | ||||||||||||
Forward MBS and TBAs | (9,341) | 9,800 | ||||||||||||
Interest rate swaps and futures contracts | (12,095) | 12,095 | ||||||||||||
Total assets | $ | 106,224 | $ | (104,296) | ||||||||||
Increase (decrease) in liabilities | ||||||||||||||
HMBS related obligation | $ | 19,989 | $ | (19,764) | ||||||||||
Nonrecourse debt | 60,828 | (64,658) | ||||||||||||
Derivative liabilities: | ||||||||||||||
IRLCs and LPCs | (5,395) | 5,699 | ||||||||||||
Forward MBS and TBAs | 441 | (390) | ||||||||||||
Total liabilities | $ | 75,863 | $ | (79,113) |
September 30, 2021 | ||||||||
Down 25 bps | Up 25 bps | |||||||
(in thousands) | ||||||||
Increase (decrease) in assets | ||||||||
Reverse mortgage loans held for investment, subject to HMBS related obligations | $ | 28,291 | $ | (28,571 | ) | |||
Mortgage loans held for investment, subject to nonrecourse debt: | ||||||||
Reverse mortgage loans | 66,599 | (63,586 | ) | |||||
Fix & flip mortgage loans | 475 | (473 | ) | |||||
Mortgage loans held for investment: | ||||||||
Reverse mortgage loans | 6,645 | (6,229 | ) | |||||
Fix & flip mortgage loans | 121 | (120 | ) | |||||
Agricultural loans | 248 | (247 | ) | |||||
Mortgage loans held for sale: | ||||||||
Residential mortgage loans | 16,555 | (22,901 | ) | |||||
SRL | 1,305 | (873 | ) | |||||
Portfolio | 571 | (560 | ) | |||||
Mortgage servicing rights | (17,998 | ) | 14,916 | |||||
Other assets | 477 | (477 | ) | |||||
Derivative assets: | ||||||||
Forward commitments and TBAs | 500 | (370 | ) | |||||
Forward MBS | (28,001 | ) | 36,999 | |||||
IRLCs | 10,524 | (14,558 | ) | |||||
Total assets | $ | 86,312 | $ | (87,050 | ) | |||
Increase (decrease) in liabilities | ||||||||
HMBS related obligation | $ | 25,782 | $ | (26,039 | ) | |||
Nonrecourse debt | 18,016 | (18,613 | ) | |||||
Derivative liabilities: | ||||||||
Forward MBS | 1,974 | (2,609 | ) | |||||
Interest rate swaps and futures contracts | 18,808 | (18,808 | ) | |||||
Total liabilities | $ | 64,580 | $ | (66,069 | ) | |||
a.While we have processes to properly identify and evaluate the appropriate technical accounting |
Exhibit No. | Description | |||||||
2.1 | ||||||||
Transaction Agreement, dated as of October 12, 2020, by and among Replay; | ||||||||
2.2 | Letter Agreement, dated April 1, 2021, by and among Seller Representative and Replay | |||||||
2.3 | Letter Agreement, dated April 5, 2021, by and among Seller Representative and Replay | |||||||
2.4 | Letter Agreement, dated March 31, 2021, by and among Family Holdings; TMO; BTO Urban; BTO Urban Holdings II L.P.; and ESC (incorporated by Reference to Exhibit 2.4 to the Company’s Current Report on Form 8-K filed on April 7, | |||||||
3.1 | Amended and Restated | |||||||
3.2 | Amended and Restated Bylaws of Finance of America Companies Inc. (incorporated by Reference to Exhibit 3.3 to the Company’s Current Report on Form 8-K filed on April 7, 2021). | |||||||
10.1*† | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||
Inline XBRL Taxonomy Extension Schema Document. | ||||||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||
Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||
Inline XBRL Taxonomy Extension Label Linkbase Document. |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
Management contract or compensatory plan or arrangement. | ||||||||
* | Filed herewith. | |||||||
** | Furnished herewith. | |||||||
Finance of America Companies Inc. | ||||||||||||||||||||
Date: | November 9, 2022 | By: | /s/ Johan Gericke | |||||||||||||||||
Johan Gericke | ||||||||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||||||||
(Authorized Signatory and Principal Financial Officer) |