Cover
Cover | 9 Months Ended |
Sep. 30, 2021 | |
Document Information [Line Items] | |
Document Type | S-1 |
Entity Registrant Name | UWM Holdings Corp |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001783398 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Cash and cash equivalents | $ 950,910 | $ 1,223,837 | |
Mortgage loans at fair value | 11,736,642 | 7,916,515 | |
Derivative assets | 143,807 | 61,072 | |
Investment securities at fair value, pledged | 41,809 | 0 | |
Accounts receivable, net | 340,028 | 253,600 | |
Mortgage servicing rights - fair value as of September 30, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | 2,900,310 | 1,756,864 | |
Premises and equipment, net | 145,774 | 107,572 | |
Operating lease right-of-use asset, net (includes $105,594 and $92,571 with related parties) | 105,902 | 93,098 | $ 79,500 |
Finance lease right-of-use asset (includes $29,129 and $0 with related parties) | 60,113 | 22,929 | 0 |
Other assets | 55,655 | 57,989 | |
Total assets | 16,480,950 | 11,493,476 | |
Liabilities and equity | |||
Warehouse lines of credit | 10,487,950 | 6,941,397 | |
Accounts payable and accrued expenses | 1,229,483 | 847,745 | |
Accrued dividends payable | 10,087 | 0 | |
Derivative liabilities | 61,434 | 66,237 | |
Borrowings against investment securities | 32,560 | 0 | |
Equipment note payable | 2,343 | 26,528 | |
Operating lines of credit | 0 | 320,300 | |
Senior notes | 1,484,370 | 789,323 | |
Operating lease liability (includes $117,516 and $104,006 with related parties) | 117,824 | 104,534 | 91,800 |
Finance lease liability (includes $29,462 and $0 with related parties) | 60,871 | 23,132 | 0 |
Total liabilities | 13,486,922 | 9,119,196 | |
Equity | |||
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of June 30, 2021 | 0 | ||
Additional paid-in capital | 313 | 24,839 | |
Retained earnings | 129,815 | 2,349,441 | |
Non-controlling interest | 2,863,740 | 0 | |
Total equity | 2,994,028 | 2,374,280 | |
Member's Equity: | |||
Total member's equity | 2,374,280 | 661,323 | |
Total liabilities and equity | 16,480,950 | 11,493,476 | |
Common Class A | |||
Equity | |||
Common stock, $0.0001 par value | 10 | ||
Common Class B | |||
Equity | |||
Common stock, $0.0001 par value | 0 | ||
Common Class C | |||
Equity | |||
Common stock, $0.0001 par value | 0 | ||
Common Class D | |||
Equity | |||
Common stock, $0.0001 par value | $ 150 | ||
UNITED WHOLESALE MORTGAGE, LLC | |||
Assets | |||
Cash and cash equivalents | 1,223,837 | 133,283 | |
Mortgage loans at fair value | 7,916,515 | 5,446,310 | |
Derivative assets | 61,072 | 24,689 | |
Accounts receivable, net | 253,600 | 163,473 | |
Mortgage servicing rights - fair value as of September 30, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | 1,756,864 | 731,353 | |
Premises and equipment, net | 107,572 | 61,365 | |
Operating lease right-of-use asset, net (includes $105,594 and $92,571 with related parties) | 93,098 | 79,485 | |
Finance lease right-of-use asset (includes $29,129 and $0 with related parties) | 22,929 | ||
Other assets | 57,989 | 14,136 | |
Total assets | 11,493,476 | 6,654,094 | |
Liabilities and equity | |||
Warehouse lines of credit | 6,941,397 | 5,189,587 | |
Accounts payable and accrued expenses | 847,745 | 282,995 | |
Derivative liabilities | 66,237 | 22,409 | |
Equipment note payable | 26,528 | 30,000 | |
Operating lines of credit | 320,300 | 376,000 | |
Senior notes | 789,323 | ||
Operating lease liability (includes $117,516 and $104,006 with related parties) | 104,534 | 91,780 | |
Finance lease liability (includes $29,462 and $0 with related parties) | 23,132 | ||
Total liabilities | 9,119,196 | 5,992,771 | |
Equity | |||
Additional paid-in capital | 24,839 | 24,839 | |
Retained earnings | 2,349,441 | 636,484 | |
Member's Equity: | |||
Membership units | 0 | 0 | |
Total member's equity | 2,374,280 | 661,323 | |
Total liabilities and equity | $ 11,493,476 | $ 6,654,094 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | |||
Related party operating lease right-of-use asset | $ 105,594 | $ 92,571 | $ 73,185 |
Related party finance lease right-of-use asset | 29,129 | 0 | |
Related party operating lease liabilities | 117,516 | 104,006 | $ 85,480 |
Related party finance lease liability | $ 29,462 | $ 0 | |
Preferred stock, par value (in usd per share) | $ 0.0001 | ||
Preferred stock, shares authorized | 100,000,000 | ||
Preferred stock, shares outstanding | 0 | ||
Preferred stock, shares issued | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | |||
Common unit, authorized | 1 | 1 | |
Common unit, issued | 0 | 0 | |
Common unit, outstanding | 0 | 0 | |
Common Class A | |||
Common stock, par value (in usd per share) | $ 0.0001 | ||
Common stock, shares authorized | 4,000,000,000 | ||
Common stock, shares, issued | 100,367,478 | ||
Common stock, shares, outstanding | 100,367,478 | ||
Common Class B | |||
Common stock, par value (in usd per share) | $ 0.0001 | ||
Common stock, shares authorized | 1,700,000,000 | ||
Common stock, shares, issued | 0 | ||
Common stock, shares, outstanding | 0 | ||
Common Class C | |||
Common stock, par value (in usd per share) | $ 0.0001 | ||
Common stock, shares authorized | 1,700,000,000 | ||
Common stock, shares, issued | 0 | ||
Common stock, shares, outstanding | 0 | ||
Common Class D | |||
Common stock, par value (in usd per share) | $ 0.0001 | ||
Common stock, shares authorized | 1,700,000,000 | ||
Common stock, shares, issued | 1,502,069,787 | ||
Common stock, shares, outstanding | 1,502,069,787 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | ||||||
Loan production income | $ 589,461 | $ 1,723,981 | $ 2,143,400 | $ 2,884,162 | ||
Loan servicing income | 174,695 | 70,503 | 443,762 | 182,656 | ||
Change in fair value of mortgage servicing rights (see Note 5) | (170,462) | 0 | (448,825) | 0 | ||
Gain (loss) on sale of mortgage servicing rights | (5,443) | (324) | (670) | (65,821) | ||
Interest income | 102,063 | 40,041 | 227,169 | 119,308 | ||
Total revenue, net | 690,314 | 1,834,201 | 2,364,836 | 3,120,305 | ||
Expenses | ||||||
Salaries, commissions and benefits | 164,971 | 206,174 | 550,983 | 462,706 | ||
Direct loan production costs | 18,980 | 16,685 | 47,660 | 39,864 | ||
Marketing, travel, and entertainment | 14,138 | 3,608 | 37,138 | 13,913 | ||
Depreciation and amortization | 9,034 | 2,749 | 24,676 | 8,071 | ||
Servicing costs | 29,192 | 15,320 | 72,767 | 41,286 | ||
Amortization, impairment and pay-offs of mortgage servicing rights (see Note 5) | 0 | 68,928 | 0 | 357,728 | ||
General and administrative | 39,148 | 28,484 | 96,867 | 70,835 | ||
Interest expense | 90,221 | 40,620 | 215,884 | 113,683 | ||
Other (income)/expense | (8,710) | 0 | (27,544) | 0 | ||
Total expenses | 356,974 | 382,568 | 1,018,431 | 1,108,086 | ||
Earnings before income taxes | 333,340 | 1,451,633 | 1,346,405 | 2,012,219 | ||
Provision for income taxes | 3,483 | 750 | 17,831 | 1,500 | ||
Net income | 329,857 | $ 1,450,883 | 1,328,574 | $ 2,010,719 | ||
Net income attributable to non-controlling interests | 304,611 | 1,247,079 | ||||
Net income attributable to UWM Holdings Corporation | $ 25,246 | $ 81,495 | ||||
Earnings per share of Class A common stock (see Note 17): | ||||||
Basic (in usd per share) | $ 0.25 | $ 0.80 | ||||
Diluted (in usd per share) | $ 0.16 | $ 0.55 | ||||
Weighted average shares outstanding: | ||||||
Basic (in shares) | 101,106,023 | 102,247,594 | ||||
Diluted (in shares) | 1,603,710,511 | 1,604,567,758 | ||||
UNITED WHOLESALE MORTGAGE, LLC | ||||||
Revenue | ||||||
Loan production income | $ 4,551,415 | $ 1,043,483 | ||||
Loan servicing income | 288,304 | 102,288 | ||||
Gain (loss) on sale of mortgage servicing rights | (62,285) | (22,480) | ||||
Interest income | 161,160 | 155,129 | ||||
Total revenue, net | 4,938,594 | 1,278,420 | ||||
Expenses | ||||||
Salaries, commissions and benefits | 552,143 | 372,172 | ||||
Direct loan production costs | 54,459 | 34,434 | ||||
Professional services | 12,115 | 37,785 | ||||
Occupancy and equipment | 58,890 | 40,095 | ||||
Marketing, travel, and entertainment | 20,278 | 23,433 | ||||
Depreciation and amortization | 16,820 | 9,405 | ||||
Servicing costs | 70,835 | 30,936 | ||||
Amortization, impairment and pay-offs of mortgage servicing rights (see Note 5) | 573,118 | 137,776 | ||||
General and administrative | 27,940 | 13,196 | ||||
Interest expense | 167,036 | 164,131 | ||||
Total expenses | 1,553,634 | 863,363 | ||||
Earnings before income taxes | 3,384,960 | 415,057 | ||||
Provision for income taxes | 2,450 | 0 | ||||
Net income | $ 3,382,510 | $ 415,057 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Remeasurement Due to Change in Parent Ownership | Cumulative Effect, Period of Adoption, Adjustment | Common Class A | Common Class D | Common StockCommon Class A | Common StockCommon Class ACumulative Effect, Period of Adoption, Adjustment | Common StockCommon Class D | Common StockCommon Class DCumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Remeasurement Due to Change in Parent Ownership | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Non-controlling Interest | Non-controlling InterestCumulative Effect, Remeasurement Due to Change in Parent Ownership | Non-controlling InterestCumulative Effect, Period of Adoption, Adjustment | UNITED WHOLESALE MORTGAGE, LLC | UNITED WHOLESALE MORTGAGE, LLCAdditional Paid-in Capital | UNITED WHOLESALE MORTGAGE, LLCRetained Earnings |
Balance at beginning of period at Dec. 31, 2018 | $ 319,051 | $ 24,839 | $ 294,212 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 415,057 | 415,057 | ||||||||||||||||||
Member distributions | (72,785) | (72,785) | ||||||||||||||||||
Balance at end of period at Dec. 31, 2019 | $ 661,323 | $ 24,839 | $ 636,484 | $ 3,400 | 661,323 | 24,839 | 636,484 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 20,349 | 20,349 | ||||||||||||||||||
Member distributions | (177) | (177) | ||||||||||||||||||
Balance at end of period at Mar. 31, 2020 | 681,495 | 24,839 | 656,656 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | 661,323 | 24,839 | 636,484 | 3,400 | 661,323 | 24,839 | 636,484 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 2,010,719 | |||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 2,022,361 | 24,839 | 1,997,522 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2019 | 661,323 | 24,839 | 636,484 | 3,400 | 661,323 | 24,839 | 636,484 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 3,382,510 | 3,382,510 | ||||||||||||||||||
Member distributions | (1,969,553) | (1,969,553) | ||||||||||||||||||
Balance at end of period at Dec. 31, 2020 | 2,374,280 | $ 3,440 | 24,839 | 2,349,441 | 3,440 | 2,374,280 | 24,839 | 2,349,441 | ||||||||||||
Balance at end of period (in shares) at Dec. 31, 2020 | 103,104,205 | 1,502,069,787 | ||||||||||||||||||
Balance at end of period at Dec. 31, 2020 | 2,374,280 | $ 10 | $ 150 | $ (24,839) | (2,164,975) | $ 2,189,654 | ||||||||||||||
Balance at beginning of period at Mar. 31, 2020 | 681,495 | 24,839 | 656,656 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 539,487 | 539,487 | ||||||||||||||||||
Member contributions | 247,169 | 247,169 | ||||||||||||||||||
Balance at end of period at Jun. 30, 2020 | 1,468,151 | 24,839 | 1,443,312 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 1,450,883 | 1,450,883 | ||||||||||||||||||
Member contributions | 52,831 | 52,831 | ||||||||||||||||||
Member distributions | (949,504) | (949,504) | ||||||||||||||||||
Balance at end of period at Sep. 30, 2020 | 2,022,361 | 24,839 | 1,997,522 | |||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 2,374,280 | 3,440 | 24,839 | 2,349,441 | 3,440 | 2,374,280 | 24,839 | 2,349,441 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income prior to business combination transaction | 183,756 | 183,756 | ||||||||||||||||||
Member distributions | (1,100,000) | (1,100,000) | ||||||||||||||||||
Net proceeds received from business combination transaction | 879,122 | 879,122 | ||||||||||||||||||
Opening net liabilities of Gores Holdings IV, Inc. acquired | (75,381) | (75,381) | ||||||||||||||||||
Distribution and dividend declared | (160,517) | (10,310) | $ (150,207) | |||||||||||||||||
Member distributions to SFS Corp. | (2,913) | (2,913) | ||||||||||||||||||
Net income subsequent to business combination transaction | 676,249 | 47,985 | 628,264 | |||||||||||||||||
Balance at end of period (in shares) at Mar. 31, 2021 | 103,104,205 | 1,502,069,787 | ||||||||||||||||||
Balance at end of period at Mar. 31, 2021 | 2,778,036 | $ 0 | $ 10 | $ 150 | 0 | 113,078 | $ (1,305) | 2,664,798 | $ 1,305 | |||||||||||
Balance at beginning of period at Dec. 31, 2020 | 2,374,280 | $ 3,440 | 24,839 | 2,349,441 | 3,440 | $ 2,374,280 | $ 24,839 | $ 2,349,441 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 1,328,574 | |||||||||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2020 | 103,104,205 | 1,502,069,787 | ||||||||||||||||||
Balance at beginning of period at Dec. 31, 2020 | 2,374,280 | $ 10 | $ 150 | $ (24,839) | $ (2,164,975) | $ 2,189,654 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Stock-based compensation expense (in shares) | 5,890 | |||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 100,367,478 | 1,502,069,787 | 100,367,478 | 1,502,069,787 | ||||||||||||||||
Balance at end of period at Sep. 30, 2021 | 2,994,028 | $ 10 | $ 150 | 313 | 129,815 | 2,863,740 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 138,712 | 8,265 | 130,447 | |||||||||||||||||
Balance at beginning of period (in shares) at Mar. 31, 2021 | 103,104,205 | 1,502,069,787 | ||||||||||||||||||
Balance at beginning of period at Mar. 31, 2021 | 2,778,036 | 0 | $ 10 | $ 150 | 0 | 113,078 | (1,305) | 2,664,798 | 1,305 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Distribution and dividend declared | (160,444) | (10,237) | (150,207) | |||||||||||||||||
Member distributions to SFS Corp. | (65,504) | (65,504) | ||||||||||||||||||
Stock-based compensation expense (in shares) | 5,170 | |||||||||||||||||||
Stock-based compensation expense | 2,334 | 187 | 2,147 | |||||||||||||||||
Class A common stock repurchased (in shares) | (790,599) | |||||||||||||||||||
Class A common stock repurchased | (6,148) | (403) | (5,745) | |||||||||||||||||
Balance at end of period (in shares) at Jun. 30, 2021 | 102,318,776 | 1,502,069,787 | ||||||||||||||||||
Balance at end of period at Jun. 30, 2021 | 2,686,986 | $ 0 | $ 10 | $ 150 | 187 | 109,398 | $ 6,191 | 2,577,241 | $ (6,191) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 329,857 | 25,246 | 304,611 | |||||||||||||||||
Distribution and dividend declared | (10,087) | (10,087) | ||||||||||||||||||
Stock-based compensation expense (in shares) | 720 | |||||||||||||||||||
Stock-based compensation expense | 2,119 | 126 | 1,993 | |||||||||||||||||
Class A common stock repurchased (in shares) | (1,952,018) | |||||||||||||||||||
Class A common stock repurchased | (14,847) | (933) | (13,914) | |||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2021 | 100,367,478 | 1,502,069,787 | 100,367,478 | 1,502,069,787 | ||||||||||||||||
Balance at end of period at Sep. 30, 2021 | $ 2,994,028 | $ 10 | $ 150 | $ 313 | $ 129,815 | $ 2,863,740 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ 1,328,574 | $ 2,010,719 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Loss on sale of mortgage servicing rights | 670 | 65,821 | ||
Reserve for representations and warranties | 34,262 | 25,574 | ||
Capitalization of mortgage servicing rights | (1,843,861) | (1,335,654) | ||
Retention of investment securities | (42,164) | 0 | ||
Amortization and pay-offs of mortgage servicing rights | 0 | 325,566 | ||
Impairment on mortgage servicing rights, net | 0 | 32,162 | ||
Change in fair value of mortgage servicing rights | 448,825 | 0 | ||
Depreciation and amortization of premises and equipment | 14,502 | 8,071 | ||
Senior notes issuance cost amortization | 2,085 | 0 | ||
Amortization of finance lease right-of-use assets | 10,174 | 5,779 | ||
Stock-based compensation expense | 4,453 | 0 | ||
Change in fair value of investment securities | 149 | 0 | ||
Decrease in fair value of warrants liability | (30,944) | 0 | ||
(Increase) decrease in: | ||||
Mortgage loans at fair value | (3,820,127) | 231,114 | ||
Accounts receivable, net | (69,103) | (66,203) | ||
Derivative assets | (82,735) | (26,364) | ||
Other assets | 4,161 | (162,305) | ||
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | 292,023 | 256,789 | ||
Derivative liabilities | (4,803) | 19,089 | ||
Net cash (used in) provided by operating activities | (3,753,859) | 1,390,158 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of premises and equipment | (52,271) | (3,669) | ||
Proceeds from sale of mortgage servicing rights | 241,634 | 217,786 | ||
Proceeds from principal payments on investment securities | 206 | 0 | ||
Net cash provided by investing activities | 189,569 | 214,117 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net borrowings under warehouse lines of credit | 3,546,551 | (276,382) | ||
Repayments of finance lease liabilities | (9,620) | 0 | ||
Borrowings under equipment notes payable | 1,078 | 0 | ||
Repayments under equipment notes payable | (25,365) | 0 | ||
Borrowings under operating lines of credit | 79,700 | 456,895 | ||
Repayments under operating lines of credit | (400,000) | (512,595) | ||
Proceeds from borrowings against investment securities | 32,560 | 0 | ||
Proceeds from issuance of senior notes | 700,000 | 0 | ||
Discount and direct issuance costs on senior notes | (7,036) | 0 | ||
Proceeds from business combination transaction | 895,134 | 0 | ||
Costs incurred related to business combination transaction | (11,260) | 0 | ||
Dividends paid | (20,547) | 0 | ||
Member contributions from SFS Corp. | 0 | 300,000 | ||
Member distributions to SFS Corp. | (1,468,837) | (949,681) | ||
Class A common stock repurchased | (20,995) | 0 | ||
Net cash provided by (used in) financing activities | 3,291,363 | (981,763) | ||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (272,927) | 622,512 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 1,223,837 | 133,283 | $ 133,283 | |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 950,910 | 755,795 | 1,223,837 | $ 133,283 |
SUPPLEMENTAL INFORMATION | ||||
Cash paid for interest | 176,304 | 117,432 | ||
Cash paid for taxes | 1,738 | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | 3,382,510 | 415,057 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||
Loss on sale of mortgage servicing rights | 62,285 | 22,480 | ||
Reserve for representations and warranties | 36,510 | 19,153 | ||
Capitalization of mortgage servicing rights | (1,896,638) | (1,126,965) | ||
Amortization and pay-offs of mortgage servicing rights | 553,534 | 117,217 | ||
Impairment on mortgage servicing rights, net | 19,584 | 20,559 | ||
Depreciation and amortization of premises and equipment | 11,581 | 9,405 | ||
Senior notes issuance cost amortization | 353 | |||
Amortization of finance lease right-of-use assets | 5,238 | 2,520 | ||
(Increase) decrease in: | ||||
Mortgage loans at fair value | (2,470,205) | (2,928,550) | ||
Accounts receivable, net | (138,059) | (4,907) | ||
Derivative assets | (36,384) | (7,094) | ||
Other assets | (43,853) | (9,051) | ||
Increase (decrease) in: | ||||
Accounts payable and accrued expenses | 526,128 | (19,291) | ||
Derivative liabilities | 43,828 | (6,545) | ||
Net cash (used in) provided by operating activities | 56,412 | (3,496,012) | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of premises and equipment | (57,288) | (16,775) | ||
Proceeds from sale of mortgage servicing rights | 289,170 | 594,150 | ||
Net cash provided by investing activities | 231,882 | 577,375 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Net borrowings under warehouse lines of credit | 1,751,810 | 2,836,688 | ||
Repayments of finance lease liabilities | (5,049) | 0 | ||
Payments for deferred offering costs | (4,745) | 0 | ||
Borrowings under equipment notes payable | 2,165 | 30,000 | ||
Repayments under equipment notes payable | (5,637) | 0 | ||
Borrowings under operating lines of credit | 412,295 | 798,321 | ||
Repayments under operating lines of credit | (467,995) | (582,417) | ||
Proceeds from issuance of senior notes | 800,000 | 0 | ||
Discount and direct issuance costs on senior notes | (11,030) | 0 | ||
Member contributions from SFS Corp. | 300,000 | 0 | ||
Member distributions to SFS Corp. | (1,969,554) | (72,785) | ||
Net cash provided by (used in) financing activities | 802,260 | 3,009,807 | ||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 1,090,554 | 91,170 | ||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | $ 1,223,837 | $ 133,283 | 133,283 | 42,113 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 1,223,837 | 133,283 | ||
SUPPLEMENTAL INFORMATION | ||||
Cash paid for interest | $ 161,803 | $ 157,813 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization, Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 – ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization UWM Holdings Corporation, through its consolidated subsidiaries (collectively, the “Company”), engages in the origination, sale and servicing of residential mortgage loans. The Company is based in Michigan but originates and services loans throughout the United States. The Company is approved as a Title II, non-supervised The Company (f/k/a Gores Holdings IV, Inc.) was incorporated in Delaware on June 12, 2019. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On September 22, 2020, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among the Company, SFS Holding Corp., a Michigan corporation (“SFS Corp.”), United Wholesale Mortgage, LLC, a Michigan limited liability company (“UWM”), and UWM Holdings, LLC, a newly formed Delaware limited liability company (“Holdings LLC” and, together with UWM, the “UWM Entities.”). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination with the UWM Entities, SFS Corp. was the sole member of UWM, which had unit authorized, issued and outstanding. On January , , SFS Corp. contributed its equity interest in UWM to Holdings LLC and adopted the Amended and Restated Operating Agreement to admit Holdings LLC as UWM’s sole member and its manager. Upon completion of the business combination transaction, (i) Holdings LLC issued approximately % of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximately % of the units (Class B Common Units) in Holdings LLC and accordingly retained approximately % of the economic ownership interest of the combined company and (iii) Holdings LLC became a consolidated subsidiary of the Company, as the Company is the sole managing member of Holdings LLC. The economic interest in Holdings LLC owned by SFS Corp. is presented as a non-controlling interest in these condensed consolidated financial statements (see Note 11—Non-Controlling ). Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an “Up-C” material non-economic Note 11—Non-Controlling non-affiliated aggregate of up earn-out earn-out earn-out Note 17—Earnings Per Share. Dividend Policy In connection with its decision to declare a dividend on its Class A stock, the Company’s Board of Directors (the “Board”), in its capacity as the Manager of Holdings LLC, under the Holdings LLC Second Amended and Restated Operating Agreement, can determine whether to (a) make distributions from Holdings LLC to only the Company, as the owner of the Class A Units of Holdings LLC with the proportional amount due to SFS Corp. as the owner of the Class B Units of Holdings LLC, being distributed upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of the Company or (b) make proportional and simultaneous distributions from Holdings LLC to both the Company, as the owner of the Class A Units of Holdings LLC and to SFS Corp. as the owner of the Class B Units of Holdings LLC. On August 16, 2021, the Board declared a quarterly dividend of $0.10 per share on the outstanding shares of our Class A common stock (the “Q3 Dividend”). On September 9, 2021, the Board determined that it would make distributions from Holdings LLC for the Q3 Dividend to only the Company. The Q3 Dividend was paid on October 6, 2021 to stockholders of record of the Class A common stock at the close of business on September 10, 2021. The proportional amount of the Q3 Dividend that was not yet distributed to SFS Corp. is $150.2 million. As of September 30, 2021, cumulative distributions of approximately $150.2 million are required to be distributed by Holdings LLC to SFS Corp. upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of the Company. Basis of Presentation and Consolidation The business combination transaction was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as UWM was determined to be the accounting acquirer, primarily due to the fact that SFS Corp. continues to control the Company through its ownership of the Class D common stock. Under this method of accounting, while the Company was the legal acquirer, it was treated as the acquired company for financial reporting purposes. Accordingly, the business combination transaction was treated as the equivalent of UWM issuing stock for the net assets of the Company, accompanied by a recapitalization, with the net assets of the Company stated at historical cost, with no goodwill or other intangible assets recorded. The net proceeds received from Gores Holdings IV, Inc. in the business combination transaction approximated $895.1 million, and the Company incurred approximately $16.0 million in costs related to the transaction which were charged to stockholders’ equity upon the closing of the transaction. As part of the business combination transaction, the Company assumed the liability related to the Public and Private Warrants (described below) of $45.6 million. During the period from January 21, 2021 to September nine September 30, 2021. The Company’s financial statement presentation included in these condensed consolidated financial statements include the condensed consolidated financial statements of UWM and its subsidiaries for periods prior to the completion of the business combination transaction with the UWM Entities and of the Company for periods from and after the business combination transaction . Our condensed consolidated financial statements are unaudited and presented in U.S. dollars. They have been prepared in accordance with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, these condensed consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position, and cash flows for the periods presented. However, our results of operations for any interim period are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Accounting Change—Mortgage Servicing Rights On January 1, 2021, the Company adopted the fair value method to measure its servicing assets and liabilities for all current classes of servicing assets and liabilities subsequent to initial recognition. Management believes that the fair value method more directly reports the current expected benefits and obligations of the Company’s servicing rights. The adoption of the fair value method for a particular class of servicing assets is irrevocable. Prior to January 1, 2021, the Company measured its servicing assets and liabilities after initial recognition using the amortized cost method. This change in accounting resulted in a $3.4 million increase to retained earnings and the mortgage servicing rights (MSR) asset as of January 1, 2021. Subsequent to the adoption of the fair value method of accounting for MSRs, changes in fair value of MSRs are reported as a component of “Total revenue, net” within the condensed consolidated statements of operations. Prior to the adoption of the fair value method, MSRs were amortized in proportion to the estimated future net servicing revenue, and periodically evaluated for impairment. For this purpose, the Company stratified its MSRs based on the interest rate of the underlying loans. The Company recorded a valuation allowance when the fair value of the mortgage servicing asset strata was less than its amortized book value. Valuation allowances were recorded as a temporary impairment to the affected strata effectively reducing recorded MSRs and incurring a charge to operations. When a mortgage prepaid, the Company permanently reduced the associated MSR in the period of prepayment with a charge to operations. Under both the fair value and amortization accounting methods, the fair value of MSRs is estimated with the assistance of a third party broker based upon a valuation model that calculates the estimated present value of future cash flows. The valuation model incorporates market estimates of prepayment speeds, discount rates, cost to service, float value, ancillary income, inflation, and delinquency and default rates. Income Taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and various state and local jurisdictions. The tax laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, the Company must make assumptions and judgements about how to interpret and apply complex tax laws to numerous transactions and business events, as well as make judgements regarding the timing of when certain items may affect taxable income . In calculating the provision for income taxes, we apply an estimated annual effective tax rate to year-to-date for the full fiscal year. Tax-effects Tax Receivable Agreement In connection with the Business Combination Agreement, the Company entered into a Tax Receivable Agreement with SFS Corp. that will obligate the Company to make payments to SFS Corp. of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of (i) certain increases in tax basis resulting from exchanges of Holdings LLC Common Units; (ii) imputed interest deemed to be paid by the Company as a result of payments it makes under the tax receivable agreement; (iii) certain increases in tax basis resulting from payments the Company makes under the tax receivable agreement; and (iv) disproportionate allocations (if any) of tax benefits to the Company which arise from, among other things, the sale of certain assets as a result of section 704(c) of the Internal Revenue Code of 1986. The Company will retain the benefit of the remaining 15% of these tax savings. The Company recognized a liability of approximately $1.9 million for estimated amounts due under the Tax Receivable Agreement in connection with the business combination transaction. Subsequently, the liability is accounted for as a loss contingency, with changes in the liability measured and recorded when estimated amounts due under the Tax Receivable Agreement are probable and can be reasonably estimated and reported as part of other (income) expense in the condensed consolidated statements of operations. During the third quarter, as a result of the sale of MSR assets that existed prior to the consummation of the business combination, the Company recorded an additional liability of $3.4 million, representing 85% of the estimated tax benefits to the Company resulting from this asset sale. As of September 30, 2021, the total liability recorded for the Tax Receivable Agreement was approximately $5.3 million. Related Party Transactions The Company enters into various transactions with related parties. See Note 14 – Related Party Transactions Public and Private Warrants As part of Gores Holdings IV, Inc.’s initial public offering (“IPO”) in January 2020, Gores Holdings IV, Inc. issued to third party investors 42.5 million units, consisting of one share of Class A common stock of Gores Holdings IV, Inc. and one The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until after the completion of the business combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable The Company evaluated the Public and Private Warrants under applicable U.S. GAAP and concluded that they do not meet the criteria to be classified in stockholders’ equity due to certain terms of the warrants. Since the Public and Private Warrants meet the definition of derivatives, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the closing of the business combination transaction and as of September 30, 2021 (recorded within “Accounts payable and accrued expenses”), with the change in their respective fair values recognized in the condensed consolidated statement of operations (recorded within “Other income/expense”) for the period ended September 30, 2021. Loans Eligible for Repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due) and the call option results in a more than trivial benefit to the Company, the previously sold assets are required to be re-recognized September September Stock-Based Compensation Effective upon the closing of the business combination transaction, the Company adopted the UWM Holdings Corporation 2020 Omnibus Incentive Plan (the “2020 Plan”) which was approved by stockholders on January 20, 2021. The 2020 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. The Company’s Compensation Committee approved, effective April 2, 2021, the issuance of 3.2 million restricted stock units to the Company’s team members. The restricted stock units had a grant date fair value of approximately $25.2 million. The restricted stock units vest over three years, 33% on each of February 1, 2022 and 2023 and 34% on February 1, 2024. In addition, the Compensation Committee approved the issuance of 1,000 RSUs to each of the Company’s four non-employee they occur. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting No. 2021-1, Reference Rate Reform (Topic 848): Scope In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Organization, Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 – ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization United Wholesale Mortgage, LLC (f/k/a United Shore Financial Services, LLC) (the “Company”) was organized under the laws of the State of Michigan. United Shore Financial Services, LLC, the Company’s predecessor, was incorporated on July 16, 1986, primarily doing business as United Wholesale Mortgage. The Company engages in the origination, sale and servicing of residential mortgage loans. The Company is based in Michigan but originates and services loans throughout the United States. The Company is approved as a Title II,non-supervised direct endorsement mortgagee with the United States Department of Housing and Urban Development (or “HUD”). In addition, the Company is an approved issuer with the Government National Mortgage Association (or “Ginnie Mae”), as well as an approved seller and servicer with the Federal National Mortgage Association (or “Fannie Mae”) and Federal Home Loan Mortgage Corporation (or “Freddie Mac”). On September 15, 2020, the Company amended and restated its operating agreement to reflect SFS Holding Corp. as the sole member of the Company with one unit authorized, issued and outstanding. Historical unit amounts have been retrospectively adjusted to give effect to this change from 80,000 units authorized, issued and outstanding to the single unit. On September 22, 2020, the Company and Gores Holdings IV, Inc., a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, entered into a definitive agreement with respect to a business combination, which was consummated on January 21, 2021. Upon completion of the proposed transaction, the Company’s current owner retained an approximate 94% economic ownership interest of the Company, and the Company became a consolidated subsidiary of UWM Holdings Corporation (f/k/a Gores Holdings IV, Inc.). Class A common stock of UWM Holdings Corporation was listed on the New York Stock Exchange (“NYSE”) under the new ticker symbol “UWMC” on January 22, 2021. Refer to the subsequent events footnote for further discussion. On January 21, 2021, SFS contributed all of its equity interest in the Company to UWM Holdings, LLC (a wholly-owned subsidiary of SFS) and adopted the Second Amended and Restated Operating Agreement to reflect that UWM Holdings, LLC as its sole member and its manager. Upon completion of the proposed transaction, (i) UWM Holdings, LLC issued approximately 6% of its units to UWM Holdings Corporation, (ii) SFS retained approximate 94% of its units in UWM Holdings LLC and SFS retained approximately 94% of the economic ownership interest of the combined company and (iii) the Company became a consolidated subsidiary of UWM Holdings Corporation (f/k/a Gores Holdings IV, Inc.). Class A common stock of UWM Holdings Corporation was listed on the New York Stock Exchange(under the new ticker symbol “UWMC”) on January 22, 2021. Refer to the subsequent events footnote for further discussion. Basis of Presentation The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (or “GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. As of December 31, 2020 and 2019, the Company had two subsidiaries both of which were special purpose entities that were formed and operate solely in connection with securitized warehouse facilities used by the Company in its operations. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most sensitive accounting estimates affecting the consolidated financial statements are the valuations of mortgage loans at fair value, mortgage servicing rights (or “MSRs”), derivative assets and liabilities, and the measurement of the representations and warranties reserve. Operating Segments The Company operates as one segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (or “CODM”), which is the Company’s chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information on a consolidated basis. Cash and Cash Equivalents The Company considers cash and temporary investments with original maturities of three months or less to be cash and cash equivalents. The Company typically maintains cash balances in financial institutions in excess of Federal Deposit Insurance Corporation limits. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these balances . Mortgage Loans at Fair Value and Revenue Recognition Mortgage loans are recorded at estimated fair value. Fair value of mortgage loans is estimated using observable market information including pricing from current cash commitments from government sponsored enterprises, recent market commitment prices, or broker quotes, as if the loa ns A majority of the revenues from mortgage loan originations are recognized when the loan is originated which is the primary revenue recognition event as the loans are recorded at fair value upon origination. Loan origination fees are recognized as income at the time the loans are originated. Interest income is accrued at the contractual rate, unless collectability is uncertain. Loan production income also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans at fair value, the realized and unrealized gains and losses from derivative assets and liabilities and the capitalization of MSRs. Loans are considered to be sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that entitles or obligates the Company to repurchase or redeem the transferred assets before their maturity. The Company typically considers the above criteria to have been met when transferring title to another party where no substantive repurchase rights or obligations exist. Derivatives Derivatives are recognized as assets or liabilities on the consolidated balance sheets and measured at fair value with changes in fair value recorded within the consolidated statements of operations in the period in which they occur. The Company enters into derivative instruments to reduce its risk exposure to fluctuations in interest rates. The Company accounts for derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting. Interest rate lock commitments (or “IRLCs”) on mortgage loans to be originated or purchased which are intended to be sold are considered to be derivatives with changes in fair value recorded in the consolidated statements of operations as part of loan production income. Fair value is estimated primarily based on relative changes in interest rates for the underlying mortgages to be originated or purchased. Fair value estimates also take into account the probability that loan commitments may not be exercised by customers. The Company uses forward mortgage backed security contracts, which are known as forward loan sale commitments (or “FLSCs”), to economically hedge the IRLCs. Refer to Note 3 – Derivatives for further details. Mortgage Servicing Rights and Revenue Recognition—Sale of MSRs MSRs are initially recorded at estimated fair value. To determine the fair value of the servicing right created, the Company uses third party estimates of fair value at the time of initial recognition. Subsequent fair value (measured for subsequent impairment purposes) is estimated with the assistance of an third party broker based upon a valuation model that calculates the estimated present value of future cash flows. The valuation model incorporates market estimates of the estimated market prepayment speeds, discount rate, cost to service, float value, ancillary income, inflation, and delinquency and default rates. MSRs are amortized in proportion to the estimated future net servicing revenue. MSRs are periodically evaluated for impairment. For this purpose, the Company stratifies its MSRs based on interest rate. Changes in the estimates used to value MSRs could materially change the estimated fair value and any valuation allowances required. Management records a valuation allowance when the fair value of the mortgage servicing asset strata is less than its amortized book value. Valuation allowances are recorded as a temporary impairment to the affected strata effectively reducing recorded MSRs and incurring a charge to operations. Valuation recoveries are recorded in subsequent periods. When a mortgage prepays, the Company permanently reduces the associated MSR in the period of prepayment with a charge to operations. Sales of MSRs are recognized when the risks and rewards of ownership have been transferred to a buyer, and a substantive non-refundable Premises and equipment, net Premises and equipment is recorded at cost and depreciated or amortized using the straight line method over the estimated useful lives of the assets. The following is a summary of premises and equipment, net at December 31 (in thousands): Useful 2020 2019 Furniture and equipment 3—10 years $ 24,325 $ 17,976 Computer software 1—3 years 3,644 1,480 Leasehold improvements (a ) 104,074 50,633 Construction in process 1,249 5,415 Accumulated depreciation and amortization (25,720 ) (14,139 ) Premises and equipment, net $ 107,572 $ 61,365 (a) Amortized over the shorter of the related lease term or the estimated useful life of the assets. Leases The Company enters into contracts to lease real estate, furniture and fixtures, and information technology equipment. Leases that meet one of the finance lease criteria are classified as finance leases, while all others are classified as operating leases. The Company determines if an arrangement is a lease at inception and has made on accounting policy election to capitalize leases with initial terms in excess of 12 months. At lease commencement, a lease liability and right-of-use right-of-use right-of-use right-of-use The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company’s lease agreements include both lease and non-lease non-lease right-of-use Representations and Warranties Reserve Loans sold to investors which the Company believes met investor and agency underwriting guidelines at the time of sale may be subject to repurchase in the event of specific default by the borrower or subsequent discovery that underwriting or documentation standards were not explicitly satisfied. The Company may, upon mutual agreement, indemnify the investor against future losses on such loans or be subject to other guaranty requirements and subject to loss. The Company initially records its exposure under such guarantees at estimated fair value upon the sale of the related loan, within accounts payable and accrued expenses, as well as within loan production income, and continues to evaluate its on-going non-contingent The activity of the representations and warranties reserve was as follows (in thousands): December 31, 2020 2019 Balance, beginning of period $ 46,322 $ 32,999 Reserve charged to operations 36,510 19,153 Losses realized, net (13,290 ) (5,830 ) Balance, end of period $ 69,542 $ 46,322 Loans Eligible for Repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due) and the call option results in a more than trivial benefit to the Company, the previously sold assets are required to be re-recognized Loan Origination Fees and Expenses Loan origination fees represent revenue earned from loan production and are included in loan production income on the consolidated statements of operations. Loan origination fees generally represent flat, per-loan fee Loan Servicing Income Loan servicing income represents revenue earned for servicing loans for various investors. The loan servicing income is based on a contractual percentage of the outstanding principal balance and is recognized into revenue as the related mortgage payments are received by the Company’s subservicer. Loan servicing expenses are charged to operations as incurred. Servicing Advances Servicing advances represent advances on behalf of customers and investors to cover delinquent balances for property taxes, insurance premiums and other out-of-pocket costs.Advances are written-off when Interest Income Interest income on mortgage loans at fair value is accrued based upon the principal amount outstanding and contractual interest rates. Income recognition is discontinued when loans become 90 days delinquent or when, in management’s opinion, the collectability of principal and interest becomes doubtful and the specific loan is put on nonaccrual status. Advertising and Marketing Advertising and marketing is expensed as incurred and amounted to $7.9 million and $5.6 million for the years ended December 31, 2020 and 2019, respectively, and is included in marketing, travel, and entertainment expenses on the consolidated statements of operations. Escrow and Fiduciary Funds The Company maintains segregated bank accounts in trust for investors and escrow balances for mortgagors. The balances of these accounts amounted to $955.2 million and $374.3 million at December 31, 2020 and 2019, respectively, and are excluded from the consolidated balance sheets. Income Taxes The Company has elected to be taxed as a partnership for income tax purposes. Accordingly, taxable income or loss of the Company is reported on the income tax returns of the member and no provision for federal income taxes has been recorded in the accompanying consolidated financial statements. The Company is subject to certain state income taxes which are included on the consolidated statements of operations. Contingencies The Company evaluates contingencies based on information currently available and establishes an accrual for those matters when a loss contingency is considered probable and the related amount is reasonably estimable. For matters where a loss is believed to be reasonably possible but not probable, no accrual is established by the nature of the loss contingency and an estimate of the reasonably possible range of loss in excess of amount accrued, when such estimate can be made, is disclosed. In deriving an estimate, the Company is required to make assumptions about matters that are, by their nature, highly uncertain. The assessment of loss contingencies involves the use of critical estimates, assumptions and judgments. It is not possible to predict or determine the outcome of all loss contingencies. Accruals are periodically reviewed and may be adjusted as circumstances change. Risks and Uncertainties The Company encounters certain economic and regulatory risks inherent in the consumer finance business. Economic risks include interest rate risk and credit risks. The Company is subject to interest rate risk to the extent that in a rising interest rate environment, the Company may experience a decrease in loan production, as well as decreases in the value of mortgage loans at fair value and in commitments to originate loans, which may negatively impact the Company’s operations. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments during the period in which mortgage loans are being held at fair value or subsequently under any representation and warranty provisions within the Company’s sale agreements. The Company is subject to substantial regulation as it directly provides financing to consumers acquiring residential real estate. The Company sells loans to investors without specific recourse. As such, the investors have assumed the risk of loss of default by the borrower. However, the Company is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that the Company does not comply with such representations, or there are early payment defaults, the Company may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay-off Reclassifications Some reclassifications have been made to prior year balances to conform to the current year financial statement presentation. Related Party Transactions The Company enters into various transactions with related parties. See “Note 15 – Related Party Transactions” for additional information. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope In March 2020, the FASB issued ASU No. 2020-3, Codification Improvements to Financial Instruments “ASU2020-3”). 2020-3 2020-3 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2018-19, 2019-4, 2019-5 2019-11, Recently Issued Accounting Pronouncements In October 2020, the FASB issued ASU No. 2020-10, |
Mortgage Loans at Fair Value
Mortgage Loans at Fair Value | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Mortgage Loans at Fair Value | NOTE 2 – MORTGAGE LOANS AT FAIR VALUE The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the condensed consolidated statements of operations. (In thousands) September December 31, Mortgage loans, unpaid principal balance $ 11,568,222 $ 7,620,014 Premiums paid on mortgage loans 153,628 101,949 Fair value adjustment 14,792 194,552 Mortgage loans at fair value $ 11,736,642 $ 7,916,515 | |
United Wholesale Mortgage L L C [Member] | ||
Mortgage Loans at Fair Value | NOTE 2 – MORTGAGE LOANS AT FAIR VALUE The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the consolidated statement of operations. (In thousands) December 31, 2020 December 31, 2019 Mortgage loans, unpaid principal balance $ 7,620,014 $ 5,309,394 Premiums paid on mortgage loans 101,949 88,913 Fair value adjustment 194,552 48,003 Mortgage loans at fair value $ 7,916,515 $ 5,446,310 |
Derivatives
Derivatives | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Derivatives | NOTE 3 – DERIVATIVES The Company enters into interest rate lock commitments (“IRLCs”) to originate residential mortgage loans at specified interest rates and terms within a specified period of time with customers who have applied for a loan and may meet certain credit and underwriting criteria. To determine the fair value of the IRLCs, each contract is evaluated based upon its stage in the application, approval and origination process for its likelihood of consummating the transaction (or “pullthrough”). Pullthrough is estimated based on changes in market conditions, loan stage, and actual borrower behavior using a historical analysis of IRLC closing rates. Generally, the further into the process the more likely that the IRLC will convert to a loan. The blended average pullthrough rate was 88% and 92%, as of September s. The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands): September 30, 2021 December 31, 2020 Fair value Fair value Derivative Derivative Notional Derivative Derivative Notional IRLCs $ 14,476 $ 50,510 $ 16,908,591 (a) $ 60,248 $ 670 $ 10,594,329 (a) FLSCs 129,331 10,924 27,265,436 824 65,567 16,602,739 Total $ 143,807 $ 61,434 $ 61,072 $ 66,237 (a) Adjusted for pullthrough rates of 88% and 92%, respectively. | |
United Wholesale Mortgage L L C [Member] | ||
Derivatives | NOTE 3 – DERIVATIVES The Company enters into interest rate lock commitments (“IRLCs”) to originate residential mortgage loans, at specified interest rates and terms within a specified period of time, with customers who have applied for a loan and may meet certain credit and underwriting criteria. To determine the fair value of the IRLCs, each contract is evaluated based upon its stage in the application, approval and origination process for its likelihood of consummating the transaction (or “pullthrough”). Pullthrough is estimated based on changes in market conditions, loan stage, and actual borrower behavior using a historical analysis of IRLC closing rates. Generally, the further into the process the more likely the IRLC is to become a loan. The blended average pullthrough rate was 92% and 81%, as of December 31, 2020 and 2019, respectively. The Company uses forward mortgage backed security contracts, which are known as forward loan sale commitments (or “FLSCs”), to economically hedge the IRLCs. The following summarizes derivative instruments (in thousands): December 31, 2020 December 31, 2019 Fair Notional Fair Notional IRLCs, net $ 59,579 $ 10,594,329 (a) $ 16,786 $ 6,727,739 (a) FLSCs, net (64,743 ) 16,602,739 (14,506 ) 10,674,680 Total $ (5,164 ) $ 2,280 (a) Adjusted for pullthrough rates of 92% and 81%, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounts Receivable, Net | NOTE 4 – ACCOUNTS RECEIVABLE, NET The following summarizes accounts receivable, net (in thousands): September December 31, Servicing fees $ 91,231 $ 55,838 Investor receivables 63,049 89,881 Servicing advances 61,602 60,053 Pair-offs receivable 40,207 438 Receivables from sale of servicing 38,879 10,597 Due from title companies 37,144 33,663 Warehouse bank receivable 17,859 3,642 Other receivables 128 28 Provision for current expected credit losses (10,071 ) (540 ) Total Accounts Receivable, Ne t $ 340,028 $ 253,600 The Company periodically evaluates the carrying value of accounts receivable balances with delinquent receivables being written-off | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Accounts Receivable, Net | NOTE 4 – ACCOUNTS RECEIVABLE, NET The following summarizes accounts receivable, net at December 31 (in thousands): December 31, 2020 2019 Investor receivables $ 100,478 $ 104,303 Servicing advances 60,053 9,004 Servicing fees 55,838 23,113 Due from title companies 33,663 16,729 Warehouse—after deadline funding 3,642 4,020 Pair-offs receivable 438 6,317 Receivable—related party 28 245 Allowance for doubtful accounts (540 ) (258 ) Total Accounts Receivable, Net $ 253,600 $ 163,473 The Company periodically evaluates the carrying value of accounts receivable balances with delinquent receivables being written-off |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Mortgage Servicing Rights | NOTE 5 – MORTGAGE SERVICING RIGHTS Mortgage servicing rights are recognized on the condensed consolidated balance sheets when loans are sold and the associated servicing rights are retained. The Company has elected the fair value option as of January 1, 2021 for all current classes of its MSRs. The Company determined its classes of MSRs based on how the Company manages risk. Subsequent to electing the fair value option, the Company’s MSRs are recorded at fair value, which is determined using a valuation model that calculates the present value of estimated future net servicing fee income. The model includes estimates of prepayment speeds, discount rate, cost to service, float earnings, contractual servicing fee income, and ancillary income and late fees, among others. These estimates are supported by market and economic data collected from various outside sources. Conforming conventional loans serviced by the Company have previously been sold to Fannie Mae and Freddie Mac on a non-recourse The following table summarizes changes in the MSR assets for the three and nine months ended September 30, 2021 (in thousands): For the three September 20 21 For the nine September 2021 Balance, at December 31, 2020 under amortization method $ 1,756,864 Cumulative effect of adopting fair value method 3,440 Fair value, beginning of period $ 2,662,556 $ 1,760,304 Capitalization of mortgage servicing rights 663,246 1,843,861 MSR sale s (269,925 ) (269,925 ) Changes in fair value: Due to changes in valuation inputs or assumptions 61,477 221,244 Due to collection/realization of cash flows/other (217,044 ) (655,174 ) Fair value, end of perio d $ 2,900,310 $ 2,900,310 The following is a summary of the components of change in fair value of servicing rights as reported in the condensed consolidated statements of operations: For the three For the nine Changes in fair value: Due to changes in valuation model or assumptions $ 61,477 $ 221,244 Due to collection/ realization of cash flows/ other (217,044 ) (655,174 ) Reserves and transaction costs on sales of servicing rights (14,895 ) (14,895 ) Changes in fair value of servicing rights, net $ (170,462 ) $ (448,825 ) During the three months ended September 30, 2021, the Company sold MSRs on loans with an aggregate unpaid principal balance of approximately $22.7 billion for proceeds of approximately $269.9 million. In connection with the sale of these MSRs, the Company recorded $14.9 million for its estimated obligation for protection provisions granted to the buyer and transaction costs, which is reflected as part of the change in fair value of MSRs in the condensed consolidated statements of operations. Prior to the election of the fair value option on January 1, 2021, the Company accounted for MSRs based on the lower cost or market using the amortization method. The following table summarizes changes to the MSR assets for the three and nine months ended September 30, 2020 under the amortization method (in thousands): For the three September 2020 For the nine September 2020 Balance, beginning of period $ 924,260 $ 731,353 Capitalization of mortgage servicing rights 567,961 1,335,654 Amortization (72,152 ) (172,440 ) Loans paid in full (81,294 ) (153,126 ) Sales (12,021 ) (298,007 ) Recovery/(Impairment) 84,518 (32,162 ) Balance, end of period $ 1,411,272 $ 1,411,272 The following table summarizes the loan servicing income recognized during the three and nine months ended September 30, 2021 and 2020, respectively (in thousands): For the three months September For the nine September 2021 2020 2021 2020 Contractual servicing fees $ 173,133 $ 69,456 $ 439,386 $ 179,969 Late, ancillary and other fees 1,562 1,047 4,376 2,687 Loan servicing income $ 174,695 $ 70,503 $ 443,762 $ 182,656 The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at September 30, 2021 and December 31, 2020, respectively: September December 31, Discount rates 9.0 % — 14.5 % 9.0% — 14.5% Annual prepayment speeds 8.2 % — 44.8 % 8.8% — 42.2% Cost of servicing $ 75 — $ 147 $ 75 — $ 126 The hypothetical effect of an adverse change in these key assumptions would result in a decrease in fair values as follows at September 30, 2021 and December 31, 2020, respectively, (in thousands): September December 31, Discount rate: + 10% adverse change – effect on value $ (94,233 ) $ (56,889 ) + 20% adverse change – effect on value (182,023 ) (110,040 ) Prepayment speeds: + 10% adverse change – effect on value $ (125,012 ) $ (87,752 ) + 20% adverse change – effect on value (241,351 ) (169,230 ) Cost of servicing: + 10% adverse change – effect on value $ (32,953 ) $ (21,643 ) + 20% adverse change – effect on value (65,905 ) (43,285 ) These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption of the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may indicate higher prepayments; however, this may be partially offset by lower prepayments due to other factors such as a borrower’s diminished opportunity to refinance), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Mortgage Servicing Rights | NOTE 5 – MORTGAGE SERVICING RIGHTS, NET The following summarizes the activity of MSRs (in thousands): For the year ended December 31, 2020 2019 Balance, beginning of period $ 731,353 $ 368,117 Additions 1,896,638 1,126,965 Amortization (252,421 ) (80,280 ) Loans paid in full (301,113 ) (36,937 ) Sales (298,009 ) (625,953 ) Impairment (19,584 ) (20,559 ) Balance, end of period $ 1,756,864 $ 731,353 The unpaid principal balance of mortgage loans serviced approximated $ 188.3 72.6 non-recourse The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at December 31, 2020 and 2019, respectively: December 31, December 31, Discount rates 9.0 14.5 9.0 14.5 Annual prepayment speeds 8.8 42.2 8.2 30.8 Cost of servicing $ 75 126 $ 90 138 The Company views these unobservable inputs as the most critical in assessing the fair value of its MSRs, which had an estimated fair value of approximately $1.76 billion and $744 million at December 31, 2020 and 2019, respectively. The hypothetical effect of an adverse change in these key assumptions would result in a decrease in fair values as follows at December 31, 2020 and 2019, respectively, (in thousands): December 31, December 31, Discount rate: + 10% adverse change – effect on value $ (56,889 ) $ (25,580 ) + 20% adverse change – effect on value $ (110,040 ) $ (49,396 ) Prepayment speeds: + 10% adverse change – effect on value $ (87,752 ) $ (34,208 ) + 20% adverse change – effect on value $ (169,230 ) $ (65,744 ) Cost of servicing: + 10% adverse change – effect on value $ (21,643 ) $ (8,879 ) + 20% adverse change – effect on value $ (43,285 ) $ (17,759 ) These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Company’s methodology for estimating the fair value of MSRs is highly sensitive to changes in assumptions. For example, actual prepayment experience may differ and any difference may have a material effect on MSR fair value. Changes in fair value resulting from changes in assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, in this table, the effect of a variation in a particular assumption of the fair value of the MSRs is calculated without changing any other assumption; in reality, changes in one factor may be associated with changes in another (for example, decreases in market interest rates may indicate higher prepayments; however, this may be partially offset by lower prepayments due to other factors such as a borrower’s diminished opportunity to refinance), which may magnify or counteract the sensitivities. Thus, any measurement of MSR fair value is limited by the conditions existing and assumptions made as of a particular point in time. Those assumptions may not be appropriate if they are applied to a different point in time. The following table summarizes the Company’s estimated future MSR amortization expense (in thousands) based upon the existing MSR asset. These estimates are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2020. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon retention or sale activities, changes in interest rates, prepayment speeds, market conditions, or circumstances that indicate the carrying amount of an asset may not be recoverable. Year ending December 31, Amounts 2021 $ 293,647 2022 249,591 2023 211,575 2024 179,066 2025 151,176 Thereafter 691,393 Total $ 1,776,448 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | NOTE 6 – OTHER ASSETS The following summarizes other assets (in thousands): September December 31, Prepaid insurance $ 20,569 $ 35,230 Prepaid IT service and maintenance 25,770 19,827 Commitment fees 401 641 Deposits 316 31 Other 8,599 2,260 Total other assets $ 55,655 $ 57,989 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Lease [Line Items] | |
Leases | NOTE 6 – LEASES Lease Right-of-Use The Company has operating and finance lease arrangements related to its facilities, furniture and fixtures, and information technology equipment. A substantial portion of the Company’s operating lease arrangements are with related party entities. See “Note 15—Related Party Transactions” for further information. Finance lease right-of-use two Operating lease right-of-use Supplemental cash flow information related to leases is as follows (in thousands): December 31, December 31, Cash paid for the amounts included in the measurement of leases liabilities – operating $ 12,551 $ 8,000 Cash paid for amounts included in the measurement of lease liabilities—financing $ 5,049 $ — Operating lease right-of-use 1 $ 27,630 $ 82,300 Financing lease right-of-use $ 20,120 $ — 1 Of the $82.3 million obtained as of December 31, 2019, $76.0 million is related to the adoption of ASU 2016-2. Additional supplemental information related to leases was as follows: December 31, December 31, Weighted average remaining lease term – operating leases 15.9 years 16 years Weighted average remaining lease term – finance leases 2.4 years — Weighted average discount rate – operating leases 7.8 % 6 % Weighted average discount rate – finance leases 6.2 % — The maturities of the Company’s operating lease liabilities are summarized below (in thousands): December 31, 2020 Amounts 2021 $ 11,493 2022 11,414 2023 11,175 2024 11,175 2025 11,246 Thereafter 124,684 Total lease payments 181,187 Less imputed interest (76,653 ) Total $ 104,534 The maturities of the Company’s financing lease liabilities are summarized below (in thousands): December 31, 2020 Amounts 2021 $ 10,322 2022 10,083 2023 4,505 Total lease payments 24,910 Less imputed interest (1,778 ) Total $ 23,132 |
Lines of Credit
Lines of Credit | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Debt Instrument [Line Items] | |
Lines of Credit | NOTE 7 – LINES OF CREDIT The Company had the following lines of credit with financial institutions at December 31, 2020 and 2019, respectively, (in thousands): December 31, December 31, $400 million line of credit agreement expiring December 31, 2022. Interest at variable rates based on a spread to the one month LIBOR rate. Line is collateralized by $989.5 million of MSRs (based on estimated fair value as of December 31, 2020). $ 320,300 $ 251,000 $125 million line of credit agreement expired on September 14, 2020. Interest at variable rates based on a spread to the one month LIBOR rate. This line was closed during 2020. — 125,000 $ 320,300 $ 376,000 |
Warehouse Lines of Credit
Warehouse Lines of Credit | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Warehouse Lines of Credit | NOTE 7 – WAREHOUSE LINES OF CREDIT The Company had the following warehouse lines of credit with financial institutions as of September 30, 2021 and December 31, 2020, respectively, (in thousands): Warehouse Lines of Credit 1 Expiration Date September December 31, Master Repurchase Agreement (“MRA”) Funding: $400 Million 2 6/23/2021 $ — $ 287,073 $2 Billion2 7/1/2021 — 499,841 $150 Million 2 9/19/2021 — 112,429 $300 Million 11/16/2021 272,308 249,006 $250 Million 12/23/2021 95,943 86,928 $1 Billion 1/10/2022 862,650 769,510 $3.5 Billion 2/23/2022 2,516,316 1,344,851 $500 Million 3/4/2022 379,161 666,891 $150 Million 5/24/2022 129,404 140,237 $200 M 7/6/2022 186,653 198,705 $400 M 10/20/2022 309,810 248,947 $1 B 4/23/2023 905,118 — $2 B 5/26/2023 987,968 1,179 $4 B 7/28/2023 2,394,222 1,685,138 $700 Million 8/30/2023 573,280 365,577 $1.5 Billion 9/18/2023 671,432 209,138 Early Funding: $250 Million (ASAP + - see below) No expiration 203,125 75,947 $150 Million ( EF No expiration 560 — All interest rates are variable based on a spread to the one-month $ 10,487,950 $ 6,941,397 1 An aggregate of $1.7 billion of these line amounts is committed as of Septembe r 2 This warehouse line of credit agreement expired pursuant to its terms prior to September 30, 2021. We are an approved lender for loan early funding facilities with Fannie Mae through its As Soon As Pooled Plus (“ASAP+”) program and Freddie Mac through its Early Funding (“EF”) program. As an approved lender for these early funding programs, we enter into an agreement to deliver closed and funded one-to-four September as million and $ million was outstanding under the EF program. In addition to the arrangements with Fannie Mae and Freddie Mac, we are also party to one early funding (or “gestation”) line with a financial institution. Through this arrangement, we enter into agreements to deliver certified pools consisting of mortgage loans securitized by Ginnie Mae, Fannie Mae, and/or Freddie Mac, as applicable, for the gestation line. As with the ASAP+ and EF programs, all mortgage loans under this gestation line must adhere to a set of eligibility criteria. The gestation line has a transaction limit of $150.0 million, and it is an evergreen agreement with no stated termination or expiration date, but can be terminated by either party upon written notice. As of September As of September 30, 2021, the Company had pledged mortgage loans at fair value as collateral under the above warehouse lines of credit. The above agreements also contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquidity, maximum debt to net worth ratio, and net income, as defined in the agreements. The Company was in compliance with all debt covenants as of September 30, 2021. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Debt Instrument [Line Items] | ||
Warehouse Lines of Credit | NOTE 8 – WAREHOUSE LINES OF CREDIT The Company had the following warehouse lines of credit with financial institutions as of December 31, 2020 and 2019, respectively, (in thousands): As of December 31, 2020 Warehouse Lines of Credit Expiration Date December 31, December 31, $1.5 Billion 2/10/2021 $ 1,344,851 $ 510,954 $800 Million 3/5/2021 666,891 314,728 $200 Million 3/24/2021 86,928 150,229 $150 Million 5/25/2021 140,237 133,196 $400 Million 6/23/2021 287,073 436,437 $2 Billion 7/1/2021 499,841 800,764 $200 Million 7/7/2021 198,705 156,632 $750 Million 9/7/2021 209,138 — $150 Million 9/19/2021 112,429 106,256 $400 Million 9/23/2021 248,947 240,620 $925 Million 10/29/2021 1,179 — $3 Billion 10/29/2021 1,685,138 1,384,903 $250 Million 11/16/2021 249,006 355,540 $500 Million 12/28/2021 365,577 — $1 Billion 1/10/2022 769,510 513,645 $250 Million (ASAP + —see below) No expiration 75,947 85,683 $150 Million (gestation line—see below) No expiration — — All interest rates are variable based on a spread to the one-month $ 6,941,397 $ 5,189,587 In addition to warehouse facilities, we are an approved lender for loan early funding facilities with Fannie Mae through its As Soon As Pooled Plus (“ASAP+”) program and Freddie Mac through its Early Funding (“EF”) program. As an approved lender for these early funding programs, we enter into an agreement to deliver closed and funded one-to-four In addition to the arrangements with Fannie Mae and Freddie Mac, we are also party to one early funding (or “gestation”) lines with a financial institution. Through this arrangement, we enter into agreements to deliver certified pools consisting of mortgage loans securitized by Ginnie Mae, Fannie Mae, and/or Freddie Mac, as applicable, for the gestation line. As with the ASAP+ and EF programs, all mortgage loans under this gestation line must adhere to a set of eligibility criteria. The gestation line has a transaction limit of $150.0 million, and it is an evergreen agreement with no stated termination or expiration date that can be terminated by either party upon written notice. As of December 31, 2020, no amount was outstanding under this line. As of December 31, 2020, the Company had pledged mortgage loans at fair value as collateral under the above warehouse lines of credit. The above agreements also contain covenants which include certain financial requirements, including maintenance of minimum tangible net worth, minimum liquidity, maximum debt to net worth ratio, net income, and limitations on additional debt, as defined in the agreements. The Company was in compliance with all debt covenants as of December 31, 2020. |
Senior Notes
Senior Notes | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Senior Notes | NOTE 8 – SENIOR NOTES The following is a summary of the senior unsecured notes issued by the Company (in thousands): Facility Type Maturity Date Interest Rate Outstanding September Outstanding 2020 2020 Senior unsecured notes(1) 11/15/2025 5.50 % $ 800,000 $ 800,000 2021 Senior unsecured notes(2) 04/15/2029 5.50 % 700,000 — Total Unsecured Senior Notes $ 1,500,000 $ 800,000 Weighted average interest rate 5.50 % 5.50 % (1) Unamortized debt issuance costs and discounts are presented net against the 2020 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $9.0 million and $10.7 million as of September (2) Unamortized debt issuance costs and discounts are presented net against the 2021 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $6.6 million as of September On November 3, 2020, the Company’s consolidated subsidiary, UWM, issued $800.0 million in aggregate principal amount of senior unsecured notes due November 15, 2025 (the “2020 Senior Notes”). The 2020 Senior Notes accrue interest at a rate of 5.500% per annum. Interest on the 2020 Senior Notes is due semi-annually on May 15 and November 15 of each year, beginning on May 15, 2021. On or after November 15, 2022, the Company may, at its option, redeem the 2020 Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: November 15, 2022 at 102.750%; November 15, 2023 at 101.375%; or November 15, 2024 until maturity at 100%, of the principal amount of the 2020 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. Prior to November 15, 2022, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the 2020 Senior Notes originally issued at a redemption price of 105.500% of the principal amount of the 2020 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. In addition, the Company may, at its option, redeem the 2020 Senior Notes prior to November 15, 2022 at a price equal to 100% of the principal amount redeemed plus a “make-whole” premium, plus accrued and unpaid interest. On April 7, 2021, the Company’s consolidated subsidiary, UWM, issued $700.0 million in aggregate principal amount of senior unsecured notes due April 15, 2029 (the “2021 Senior Notes”). The 2021 Senior Notes accrue interest at a rate of 5.500% per annum. Interest on the 2021 Senior Notes is due semi-annually on April 15 and October 15 of each year, beginning on October 15, 2021. On or after April 15, 2024, the Company may, at its option, redeem the 2021 Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: April 15, 2024 at 102.750%; April 15, 2025 at 101.375%; or April 15, 2026 until maturity at 100%, of the principal amount of the 2021 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. Prior to April 15, 2024, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the 2021 Senior Notes originally issued at a redemption price of 105.500% of the principal amount of the 2021 Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. In addition, the Company may, at its option, redeem the 2021 Senior Notes prior to April 15, 2024 at a price equal to 100% of the principal amount redeemed plus a “make-whole” premium, plus accrued and unpaid interest. The indentures governing the 2020 and 2021 Senior Notes contain customary terms and restrictions, subject to a number of exceptions and qualifications. We were in compliance with the terms of the indentures as of September 30, 2021. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Debt Instrument [Line Items] | ||
Senior Notes | NOTE 9 – SENIOR NOTES On November 3, 2020, the Company issued $800.0 million in aggregate principal amount of senior unsecured notes due November 15, 2025 (the “Senior Notes”). The Senior Notes accrue interest at a rate of 5.500% per annum. Interest on the Senior Notes is due semi-annually on May 15 and November 15 of each year, beginning on May 15, 2021. As of December 31, 2020, the Senior Notes balance was $789.3 million, net of discounts and issuance costs. On or after November 15, 2022, the Company may, at its option, redeem the Senior Notes in whole or in part during the twelve-month period beginning on the following dates at the following redemption prices: November 15, 2022 at 102.750%; November 15, 2023 at 101.375%; or November 15, 2024 until maturity at 100.000%, of the principal amount of the Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest. Prior to November 15, 2022, the Company may, at its option, redeem up to 40% of the aggregate principal amount of the Senior Notes originally issued at a redemption price of 105.500% of the principal amount of the Senior Notes to be redeemed on the redemption date plus accrued and unpaid interest with the net proceeds of certain equity offerings. In addition, the Company may, at its option, redeem the Senior Notes prior to November 15, 2022 at a price equal to 100% of the principal amount redeemed plus a “make-whole” premium, plus accrued and unpaid interest. The indenture governing the Senior Notes contains customary terms and restrictions, subject to a number of exceptions and qualifications. The Company was in compliance with the terms of the indenture as of December 31, 2020. On May 15, 2020, SFS Holding Corp., the Company’s member, issued and sold $200.0 million in aggregate principal amount of senior secured notes and on June 15, 2020 and July 15, 2020, SFS Holding Corp. issued and sold an additional aggregate $100.0 million in principal amount of senior secured notes (collectively, the “SFS Notes”) and had the ability to issue up to an additional $200.0 million in principal amount of senior secured notes on the same terms. The Company guaranteed the SFS Notes. The gross proceeds from the SFS Notes of $300.0 million were contributed to the Company by SFS Holding Corp., and the Company distributed $449.5 million to SFS Holding Corp., which was used by SFS Holdings Corp. to repay in full, including accrued interest, and terminate the SFS Notes on September 16, 2020. |
Equipment Note Payable
Equipment Note Payable | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Debt Instrument [Line Items] | |
Equipment Note Payable | NOTE 10 – EQUIPMENT NOTE PAYABLE During 2019, the Company entered into a $30.0 million note payable, secured by equipment, with a financial institution. The note required monthly payments of $0.58 million beginning January 1, 2020 and interest accruing at 5.99% per annum. The note matures December 2024. In 2020, the Company entered into two additional equipment notes payable of $2.1 million and $0.9 million, respectively. The notes require quarterly payments of $0.1 million and $80.0 thousand beginning July 1, 2020 and January 1, 2021, respectively, and interest accruing at 6.1% and 4.69% per annum, respectively. The notes mature on April 2023 and October 2023, respectively. The principal balance outstanding for the three notes payable was $26.5 million as of December 31, 2020. Annual principal maturities of the equipment notes payable are as follows as of December 31, 2020 (in thousands): Year ending December 31, Amounts 2021 $ 6,299 2022 6,673 2023 6,851 2024 6,705 2025 and thereafter — Total $ 26,528 |
Self Insurance Plan
Self Insurance Plan | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Self Insurance Reserve [Line Items] | |
Self Insurance Plan | NOTE 11 – SELF INSURANCE PLAN The Company has engaged an insurance company to provide administrative services for the Company’s self-funded insurance plan. The Company has a stop loss policy with the insurance company which limits the Company’s exposure both in the aggregate and on an individual basis. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Defined Benefit Plan Disclosure [Line Items] | |
Employee Benefit Plans | NOTE 12 – EMPLOYEE BENEFIT PLAN The Company has a 401(k) plan covering substantially all employees. Employees may contribute amounts as allowable by Internal Revenue Service and plan limitations. The Company may make discretionary matching and non-elective |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | ||
Commitments and Contingencies | NOTE 9 – COMMITMENTS AND CONTINGENCIES Representations and Warranties Reserve Loans sold to investors which the Company believes met investor and agency underwriting guidelines at the time of sale may be subject to repurchase in the event of specific default by the borrower or subsequent discovery that underwriting or documentation standards were not explicitly satisfied. The Company may, upon mutual agreement, indemnify the investor against future losses on such loans or be subject to other guaranty requirements and subject to loss. The Company initially records its exposure under such guarantees at estimated fair value upon the sale of the related loan, within accounts payable and accrued expenses, as well as within loan production income, and continues to evaluate its on-going non-contingent September ni ne September . The activity of the representations and warranties reserve was as follows (in thousands): For the three months ended September For the nine September 2021 2020 2021 2020 Balance, beginning of period $ 78,070 $ 53,296 $ 69,542 $ 46,322 Reserve charged to operations 12,601 10,859 34,262 25,574 Losses realized, net (5,985 ) (1,034 ) (19,118 ) (8,775 ) Balance, end of period $ 84,686 $ 63,121 $ 84,686 $ 63,121 Commitments to Originate Loans As of September | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Loss Contingencies [Line Items] | ||
Commitments and Contingencies | NOTE 13 – COMMITMENTS AND CONTINGENCIES Commitments to Originate Loans As of December 31, 2020, the Company had approximately $11.5 billion in notional amounts of IRLCs, whereby a potential borrower has agreed to interest rates and pricing of a potential loan. These contracts potentially expose the Company to interest rate or pricing risk and are economically hedged with forward mortgage backed security contracts. Furthermore, as of December 31, 2020, the Company had agreed to extend credit to potential borrowers for approximately $19.2 billion. These contracts represent off balance sheet credit risk where the Company may be required to extend credit to these borrowers based on the prevailing interest rates and prices at the time of execution. Regulatory Net Worth Requirements Certain secondary market agencies and state regulators require the Company to maintain minimum net worth and capital requirements in order to remain in good standing with the agencies. Noncompliance with an agency’s requirements can result in such agency taking various remedial actions up to and including terminating the Company’s ability to sell loans to and service loans on behalf of the respective agency. In accordance with the regulatory requirements of HUD, governing non-supervised, We are required to maintain a minimum net worth and liquidity by Ginnie Mae, Freddie Mac and Fannie Mae. The most restrictive of the minimum net worth and liquidity requirements, requires the Company to maintain a minimum net worth of $491.1 million and liquidity of $78.2 million as of December 31, 2020. At December 31, 2020 we exceed the net worth and liquidity requirement for all three government sponsored entities. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | NOTE 10 – VARIABLE INTEREST ENTITIES Upon completion of the business combination transaction described in Note 1, the Company became the managing member of Holdings LLC with 100% of the management and voting power in Holdings LLC. In its capacity as managing member, the Company has the sole authority to make decisions on behalf of Holdings LLC and bind Holdings LLC to signed agreements. Further, Holdings LLC maintains separate capital accounts for its investors as a mechanism for tracking earnings and subsequent distribution rights. Management concluded that the Company is Holdings LLC’s primary beneficiary. As the primary beneficiary, the Company consolidates the results and operations of Holdings LLC for financial reporting purposes under the variable interest consolidation model. The Company’s relationship with Holdings LLC results in no recourse to the general credit of the Company. Holdings LLC and its consolidated subsidiaries represents the Company’s sole investment. The Company shares in the income and losses of Holdings LLC in direct proportion to the Company’s ownership interest. Further, the Company has no contractual requirement to provide financial support to Holdings LLC. The Company’s financial position, performance and cash flows effectively represent those of Holdings LLC and its subsidiaries as of and for the three and nine months ended September 30, 2021. The Company occasionally sells mortgage loans that it originates through private label securitization transactions. In executing these transactions, the Company sells mortgage loans to a securitization trust for cash and, in some cases, retained interests in the trust. The securitization entities are funded through the issuance of beneficial interests in the securitized assets. The beneficial interests take the form of trust certificates, some of which are sold to investors and some of which may be retained by the Company due to regulatory requirements. The Company has elected the fair value option for subsequently measuring the retained beneficial interests in the securitization trusts, and these investments are presented as “investment securities at fair value, pledged” in the condensed consolidated balance sheet as of September 30, 2021. The Company also retains the servicing rights on the securitized mortgage loans. The Company has accounted for these transactions as sales of financial assets. The securitization trusts that purchase the mortgage loans from the Company and securitize those mortgage loans are variable interest entities (VIEs), and the Company holds variable interests in certain of these entities. Because the Company does not have the obligation to absorb the VIEs’ losses or the right to receive benefits from the VIEs’ that could potentially be significant to the VIEs, the Company is not the primary beneficiary of these securitization trusts and is not required to consolidate these VIEs. The Company separately entered into sale and repurchase agreements for a portion of the retained beneficial interests in the securitization trusts, which have been accounted for as borrowings against investment securities. As of September 30, 2021, $40.7 million of the $41.8 million of investment securities at fair value have been pledged as collateral for these borrowings against investment securities. |
Non-controlling Interests
Non-controlling Interests | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | NOTE 11 – NON-CONTROLLING The non-controlling September Common Units Ownership Percentage UWM Holdings Corporation ownership of Class A Common Units 100,367,478 6.26 % SFS Corp. ownership of Class B Common Units 1,502,069,787 93.74 % Balance at end of period 1,602,437,265 100.00 % The non-controlling non-controlling non-controlling paid-in-capital September During the nine months ended September 30, 2021, the Company issued 5,890 shares of Class A common stock under its stock-based compensation plan and repurchased and retired 2,742,617 shares of Class A common stock, pursuant to the Board’s authorization of the share repurchase program on May 9, 2021. This resulted in an equivalent net reduction in the number of Class A Common Units of Holdings LLC held by the Company, and a remeasurement of the non-controlling re- measurement non-controlling |
Regulatory Net Worth Requiremen
Regulatory Net Worth Requirements | 9 Months Ended |
Sep. 30, 2021 | |
Mortgage Banking [Abstract] | |
Regulatory Net Worth Requirements | NOTE 12 – REGULATORY NET WORTH REQUIREMENTS Certain secondary market agencies and state regulators require UWM to maintain minimum net worth and capital requirements to remain in good standing with the agencies. Noncompliance with an agency’s requirements can result in such agency taking various remedial actions up to and including terminating UWM’s ability to sell loans to and service loans on behalf of the respective agency. In accordance with the non-supervised, million. At September 30, 2021, UWM exceeded the regulatory net worth requirement and had a net worth (as defined by HUD) of UWM is required to maintain a minimum net worth, minimum capital ratio and minimum liquidity requirements established by Ginnie Mae, Freddie Mac and Fannie Mae. As of September 30, 2021, the most restrictive of the these requirements require UWM to maintain a minimum net worth of $714.8 million, liquidity of $94.7 million and a minimum capital ratio of 6% . At September 30, 2021, UWM exceeded all of these requirements for all three of these entities. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value Measurements | NOTE 13 – FAIR VALUE MEASUREMENTS Fair value is defined under U.S. GAAP as the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2 and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1 . Level 2 Level 3 In determining fair value measurements, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value. The following is a description of measurement techniques for items recorded at fair value on a recurring basis. There were no material items recorded at fair value on a nonrecurring basis as of September 30, 2021 or December 31, 2020. Mortgage loans at fair value IRLCs MSRs FLSCs Investment securities Public and Private Warrants Financial Instruments – Assets and Liabilities Measured at Fair Value on a Recurring Basis The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands): September Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ — $ 11,736,642 $ — $ 11,736,642 IRLCs — — 14,476 14,476 FLSCs — 129,331 — 129,331 Investment securities at fair value, pledged — 41,809 — 41,809 Mortgage servicing rights — — 2,900,310 2,900,310 Total assets $ — $ 11,907,782 $ 2,914,786 $ 14,822,568 Liabilities: IRLCs $ — $ — $ 50,510 $ 50,510 FLSCs — 10,924 — 10,924 Public and Private Warrants 10,307 4,310 — 14,617 Total liabilities $ 10,307 $ 15,234 $ 50,510 $ 76,051 December 31, 2020 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ — $ 7,916,515 $ — $ 7,916,515 IRLCs — — 60,248 60,248 FLSCs — 824 — 824 Total assets $ — $ 7,917,339 $ 60,248 $ 7,977,587 Liabilities: IRLCs $ — $ — $ 670 $ 670 FLSCs — 65,567 — 65,567 Total liabilitie s $ — $ 65,567 $ 670 $ 66,237 The following table present quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements for IRLCs: Unobservable Input - IRLCs September December 31, 2020 Pullthrough rate (weighted avg) 88 % 92 % Refer to Note 5 - Mortgage Servicing Rights Level 3 Issuances and Transfers The Company issues IRLCs which are considered derivatives. If the contract converts to a loan, the implied value, which is solely based upon interest rate changes, is incorporated in the basis of the fair value of the loan. If the IRLC does not convert to a loan, the basis is reduced to zero as the contract has no continuing value. The Company does not track the basis of the individual IRLCs that convert to a loan, as that amount has no relevance to the presented consolidated financial statements. Other Financial Instruments The following table presents the carrying amounts and estimated fair value of the Company’s financial liabilities that are not measured at fair value on a recurring or nonrecurring basis (in thousands) . September December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 2020 Senior Notes, due 11/15/25 $ 790,966 $ 810,200 $ 789,323 $ 841,300 2021 Senior Notes, due 4/15/29 693,404 682,668 — — The fair value of the 2020 and 2021 Senior Notes was estimated using Level 2 inputs, including observable trading information in inactive markets. Due to their nature and respective terms (including the variable interest rates on warehouse and operating lines of credit and borrowings against investment securities), the carrying value of cash and cash equivalents, receivables, payables, notes payable, borrowings against investment securities and warehouse and operating lines of credit approximate their fair value as of September 30, 2021 and December 31, 2020, respectively. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS Fair value is the price that would be received if an asset were sold or the price that would be paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. Required disclosures include classification of fair value measurements within a three-level hierarchy (Level 1, Level 2, and Level 3). Classification of a fair value measurement within the hierarchy is dependent on the classification and significance of the inputs used to determine the fair value measurement. Observable inputs are those that are observed, implied from, or corroborated with externally available market information. Unobservable inputs represent the Company’s estimates of market participants’ assumptions. Fair value measurements are classified in the following manner: Level 1 Level 2 Level 3 In determining fair value measurements, the Company uses observable inputs whenever possible. The level of a fair value measurement within the hierarchy is dependent on the lowest level of input that has a significant impact on the measurement as a whole. If quoted market prices are available at the measurement date or are available for similar instruments, such prices are used in the measurements. If observable market data is not available at the measurement date, judgment is required to measure fair value. Financial Instruments—Assets and Liabilities Measured at Fair Value on a Recurring Basis The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands): December 31, 2020 Description Level 1 Level 2 Level 3 Total Mortgage loans at fair value $ — $ 7,916,515 $ — $ 7,916,515 IRLCs — — 59,579 59,579 FLSCs — (64,743 ) — (64,743 ) Total $ — $ 7,851,772 $ 59,579 $ 7,911,351 December 31, 2019 Description Level 1 Level 2 Level 3 Total Mortgage loans at fair value $ — $ 5,446,310 $ — $ 5,446,310 IRLCs — — 16,786 16,786 FLSCs — (14,506 ) — (14,506 ) Total $ — $ 5,431,804 $ 16,786 $ 5,448,590 As of December 31, 2020 and 2019, mortgage loans at fair value included fair value adjustments of $194.6 million and $48.0 million, respectively. These fair value adjustments include the relative changes in the values of closed loans from the original pricing of the prospective loan (while it was an IRLC) to period end, subsequent market interest rate movements, and includes gain margin for the recorded loans based on external market indications of fair value. Derivative assets and liabilities solely represent fair value of adjustments for the contracts based upon their original contract dates relative to the period end pricing for the contracts. The derivative contracts that the Company enters into are initially recorded at zero value as they are entered into at market prices on the date of execution. Subsequent changes in market conditions, primarily interest rates, drive the value of the Company’s derivative contracts and such fair value adjustments represent the respective derivative assets and liabilities. Level 3 Issuances and Transfers The Company issues IRLCs which are considered derivatives. If the contract converts to a loan, the implied value, which is solely based upon interest rate changes, is incorporated in the basis of the fair value of the loan. If the IRLC does not convert to a loan, the basis is reduced to zero as the contract has no continuing value. The Company does not track the basis of the individual IRLCs that convert to a loan, as that amount has no relevance to the presented consolidated financial statements. Transfers into and out of Level 3 specific to the Company’s IRLC asset are equivalent to the net change in unrealized gain of approximately $42.8 million and $30 thousand for the years ended December 31, 2020 and 2019, respectively. Other Financial Instruments During the fourth quarter of 2020, the Company issued $800.0 million of Senior Notes. The fair value of the Senior Notes approximated $841.3 million as of December 31, 2021. The fair value of the Senior Notes was estimated using Level 2 inputs, including observable trading information in inactive markets. Due to their nature and respective terms (including the variable interest rates on warehouse and operating lines of credit), the carrying value of cash and cash equivalents, receivables, payables, notes payable and warehouse and operating lines of credit approximate their fair value as of December 31, 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Related Party Transactions | NOTE 14 – RELATED PARTY TRANSACTIONS The Company has engaged in the following significant related party transactions in the three and nine months ended September 30, 2021 and 2020: • The Company’s corporate campus is located in buildings and on land that are owned by entities controlled by the Company’s founder and its CEO and leased by the Company from these entities. The Company also makes leasehold improvements to these properties for the benefit of the Company, for which the Company is responsible pursuant to the terms of the lease agreements; • Legal services are provided to the Company by a law firm in which the Company’s founder is a partner; • The Company leases two aircraft owned by entities controlled by the Company’s CEO to facilitate travel of Company executives for business purposes; • Home appraisal contracting and review services are provided by home appraisal management companies partially owned by the Company’s CEO (prior to March 31, 2021) and his brother; an executive of the Company and a member of the board of directors of UWM Holdings Corporation was also on the board of directors of one of these home appraisal management companies. Each agreement with the home appraisal management companies is for an initial twelve-month term which automatically renews for successive twelve month periods unless sooner terminated by the Company upon prior notice. Additionally, each such agreement is on substantially similar terms and conditions, including with regard to pricing, as the Company’s other agreements for such services. The CEO’s interest was disposed of as of March 31, 2021. • Employee lease agreements, pursuant to which the Company’s team members provide certain administrative services to entities controlled by the Company’s founder and its CEO in exchange for fees paid by these entities to the Company. For the three months ended September 30, 2021 and 2020, the Company incurred approximately $3.6 million and $4.6 million, respectively, in operating expenses with various companies related through common ownership. The Company incurred expenses of approximately $3.3 million in re nt September million in rent and other occupancy related expenses, $0.2 million in legal fees, $0.1 million primarily related to direct origination costs and $0.5 For the nine months ended September 30, 2021 and 2020, the Company incurred approximately $12.1 million and $11.3 million, respectively, in operating expenses with various companies related through common ownership. The Company incurred expenses of approximately $11.0 million in rent and other occupancy related expenses, $0.5 million in legal fees, $0.1 million primarily related to direct origination costs and $0.5 million in other general and administrative expenses for the nine months ended September 30, 2021. The Company incurred expenses of approximately $10.0 million in rent and other occupancy related expenses, $0.5 million in legal fees, $0.3 million primarily related to direct origination costs and $0.5 million in other general and administrative expenses for the nine months ended September 30, 2020. | |
United Wholesale Mortgage L L C [Member] | ||
Related Party Transactions | NOTE 15– RELATED PARTY TRANSACTIONS The Company has engaged in the following significant related party transactions in 2020 and 2019: • The Company’s corporate campus is located in buildings that are owned by entities controlled by the Company’s founder and its CEO and leased by the Company from these entities; • Legal services are provided to the Company by a law firm in which the Company’s founder is a partner; • The Company leases an aircraft owned by an entity controlled by the Company’s CEO to facilitate travel of Company executives for business purposes; • Home appraisal contracting and review services are provided by home appraisal management companies partially owned by the Company’s CEO and his brother; an executive of the Company and a member of the board of directors of UWM Holdings Corporation is also on the board of directors of one of these home appraisal management companies. For the years ended December 31, 2020 and 2019, the Company incurred approximately $15.0 million and $11.2 million, respectively, in operating expenses with various companies related through common ownership. The Company incurred expenses of approximately $13.4 million in rent and other occupancy related expenses, $0.6 million in legal fees, $0.4 million primarily related to direct origination costs and $0.6 million in other general and administrative expenses for the year ended December 31, 2020. The Company incurred expenses of approximately $10.0 million in rent and other occupancy related expenses, $0.6 million in legal fees, $0.4 million primarily related to direct origination costs and $0.2 million in other general and administrative expenses for the year ended December 31, 2019. Pursuant to line of credit agreements entered into, primarily in 2020, between the Company, its founder, its CEO, and the CEO’s brother and certain entities controlled by these individuals, the Company borrowed and repaid $297.0 million in the first half of 2020. These borrowings and repayments are reflected in the “Borrowings under operating lines of credit” and “Repayments under operating lines of credit” line items within the financing section of the 2020 consolidated statement of cash flows. The Company also incurred approximately $1.0 million of interest expense in 2020 related to these lines of credit. As of December 31, 2020, no amount was outstanding under these line of credit agreements, as they were terminated in the second quarter of 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 15 – INCOME TAXES The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure, under which the net income attributable to the non-controlling Following the closing of the Business Combination Agreement, UWM is treated as single member LLC owned by Holdings LLC. As a single member LLC, all taxable income or loss generated by UWM will pass through and be included in the income or loss of Holdings LLC. As a partnership, Holdings LLC is not subject to U.S. federal or most state and local incomes taxes. Any taxable income or loss generated by Holdings LLC after the Company’s acquisition of its portion of Holdings LLC is passed through and included in the taxable income or loss of its members, including the Company, in accordance with the terms of the Holdings LLC Agreement. The Company is a C Corporation and is subject to U.S. federal, state and local income taxes with respect to its attributable share of any taxable income of Holdings LLC. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision and estimate of the Company’s annual effective tax rate are subject to variation due to several factors including variability in pre-tax For the three and nine months ended September 30, 2021 the Company’s effective tax rate %) of the Company’s earnings attributable to non-controlling The Company recognizes deferred tax assets to the extent it believes these assets are more-likely-than-not The Company recognizes uncertain income tax positions when it is not more-likely-than-not September nin e September . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 16 – STOCK-BASED COMPENSATION Pursuant to the 2020 Plan, the Company reserved a total of 80,000,000 shares of common stock for issuance of stock-based compensation awards. There are currently only RSUs granted under the 2020 Plan, which were granted at the beginning of second quarter 2021 to all team members that were active employees as of January 21, 2021. In addition, the Company granted shares to non-employee The following is a summary of RSU activity for the three and nine months ended September 30, 2021. For the three months ended September For the nine months ended Shares Weighted Average Grant Date Fair Shares Weighted Unvested - beginning of period 3,076,335 $ 7.75 — $ — Granted — 7.75 3,193,510 7.75 Vested 1 (720 ) 7.75 (5,890 ) 7.75 Forfeited (160,200 ) 7.75 (272,205 ) 7.75 Unvested - end of period 2,915,415 2,915,415 1 Comprised of 4,000 shares granted to non-employee members of the board of directors that immeditately vested on the date of grant, that vested in 2021 pursuant to the terms of the 2020 Plan. Stock-based compensation expense recognized for the three and nine months ended September 30, 2021 was $2.1 million and $4.4 million, respectively. As of September 30, 2021, there was $18.2 million of unrecognized compensation expense related to unvested awards which is expected to be recognized over a weighted average period of 2.4 years. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 17 – EARNINGS PER SHARE As of September 30, 2021, the Company had two classes of economic shares authorized—Class A and Class B common stock. The Company applies the two-class two-class per-share Basic earnings per share of Class A common stock and Class B common stock is computed by dividing net income by the weighted-average number of shares of Class A common stock and Class B common stock outstanding during the period. Diluted earnings per share of Class A common stock and Class B common stock is computed by dividing net income by the weighted-average number of shares of Class A common stock or Class B common stock, respectively, outstanding adjusted to give effect to potentially dilutive securities. See Note 11, Non-Controlling Note 1—Organization, Basis of Presentation and Summary of Significant Accounting Policies Prior to the business combination transaction with the Company, UWM’s ownership structure included equity interests held solely by SFS Corp. The Company analyzed the calculation of earnings per unit for periods prior to the business combination transaction and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. Therefore, earnings per share information has not been presented for the three and nine months ended September 30, 2020. The basic and diluted earnings per share period for the nine months ended September 30, 2021 represents only the period from January 21, 2021 to September 30, 2021, which represents the period in which the Company had outstanding Class A common stock. There was no Class B common stock outstanding as of September 30, 2021. The following table sets for the calculation of the basic and diluted earnings per share for the periods following the business combination transaction for the Company’s Class A common stock (in thousands, except shares and per share amounts): For the three months ended September For the nine September Net income $ 329,857 $ 1,328,574 Net income attributable to non-controlling 304,611 1,247,079 Net income attributable to UWMC 25,246 81,495 Numerator: Net income attributable to Class A common shareholders $ 25,246 $ 81,495 Net income attributable to Class A common shareholders - diluted $ 254,701 $ 887,166 Denominator: Weighted average shares of Class A common stock outstanding - basic 101,106,023 102,247,594 Weighted average shares of Class A common stock outstanding - diluted 1,603,710,511 1,604,567,758 Earnings per share of Class A common stock outstanding - basic $ 0.25 $ 0.80 Earnings per share of Class A common stock outstanding - diluted $ 0.16 $ 0.55 For purposes of calculating diluted earnings per share, it was assumed that all Class D common stock was exchanged for Class B common stock and converted to Class A common stock under the if-converted if-converted if-converted The Public and Private Warrants were not in the money and the triggering events for the issuance of earn-out |
Subsequent Events
Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Subsequent Events | NOTE 18 – SUBSEQUENT EVENTS Subsequent to September 30, 2021, the Board declared a cash dividend of $0.10 per share on the outstanding shares of Class A common stock. The dividend is payable on January 6, 2022 to stockholders of record at the close of business on December 10, 2021. Subsequent to September 30, 2021, the Company entered into an amendment to a property lease with one of the related party entities to lease additional space in this building as part of an expansion of the Company’s corporate campus. This amendment requires the Company to make lease payments of approximately $ 25.2 million (undiscounted) through the remaining initial term of the lease (through 2034), including a $3.7 million reimbursement to the landlord for termination fees and moving costs paid to a former tenant to induce this tenant to vacate the space early. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Subsequent Events | NOTE 16– SUBSEQUENT EVENTS UWM Business Combination As described in Note 1, the Company completed the business combination transaction with Gores Holdings IV, Inc. on January 21, 2021, following approval by the stockholders of Gores Holdings IV, Inc. Following this transaction, the Company became an indirect consolidated subsidiary of Gores Holdings IV, Inc., which was renamed UWM Holdings Corporation, shares of which listed for trading on the New York Stock Exchange under the symbol “UWMC” on January 22, 2021. Subsequent to December 31, 2020, the Company entered into the following additional related party transactions: • A lease for an additional building that is part of the Company’s corporate campus, which is owned by entities controlled by the Company’s CEO. The lease agreement includes undiscounted future lease payments of approximately $38.3 million through 2035. • The modification of the lease agreement for an aircraft owned by an entity controlled by the Company’s CEO as well as a lease for an additional aircraft owned by an entity controlled by the Company’s CEO, to facilitate travel of Company executives for business purposes. The Company will pay an agreed-upon hourly rate for its usage of these aircraft, with no fixed minimum commitments. • Employee lease agreements, pursuant to which the Company’s team members provide certain administrative services to entities controlled by the Company’s founder and its CEO. Under these agreements, these entities will pay the Company approximately $25 thousand per month for the administrative services provided to these entities by the Company’s team members. The Company has evaluated subsequent events through March 22, 2021, which is the date the financial statements were issued. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization | Organization UWM Holdings Corporation, through its consolidated subsidiaries (collectively, the “Company”), engages in the origination, sale and servicing of residential mortgage loans. The Company is based in Michigan but originates and services loans throughout the United States. The Company is approved as a Title II, non-supervised The Company (f/k/a Gores Holdings IV, Inc.) was incorporated in Delaware on June 12, 2019. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On September 22, 2020, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among the Company, SFS Holding Corp., a Michigan corporation (“SFS Corp.”), United Wholesale Mortgage, LLC, a Michigan limited liability company (“UWM”), and UWM Holdings, LLC, a newly formed Delaware limited liability company (“Holdings LLC” and, together with UWM, the “UWM Entities.”). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination with the UWM Entities, SFS Corp. was the sole member of UWM, which had unit authorized, issued and outstanding. On January , , SFS Corp. contributed its equity interest in UWM to Holdings LLC and adopted the Amended and Restated Operating Agreement to admit Holdings LLC as UWM’s sole member and its manager. Upon completion of the business combination transaction, (i) Holdings LLC issued approximately % of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximately % of the units (Class B Common Units) in Holdings LLC and accordingly retained approximately % of the economic ownership interest of the combined company and (iii) Holdings LLC became a consolidated subsidiary of the Company, as the Company is the sole managing member of Holdings LLC. The economic interest in Holdings LLC owned by SFS Corp. is presented as a non-controlling interest in these condensed consolidated financial statements (see Note 11—Non-Controlling ). Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an “Up-C” material non-economic Note 11—Non-Controlling non-affiliated aggregate of up earn-out earn-out earn-out Note 17—Earnings Per Share. | |
Dividend Policy | Dividend Policy In connection with its decision to declare a dividend on its Class A stock, the Company’s Board of Directors (the “Board”), in its capacity as the Manager of Holdings LLC, under the Holdings LLC Second Amended and Restated Operating Agreement, can determine whether to (a) make distributions from Holdings LLC to only the Company, as the owner of the Class A Units of Holdings LLC with the proportional amount due to SFS Corp. as the owner of the Class B Units of Holdings LLC, being distributed upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of the Company or (b) make proportional and simultaneous distributions from Holdings LLC to both the Company, as the owner of the Class A Units of Holdings LLC and to SFS Corp. as the owner of the Class B Units of Holdings LLC. On August 16, 2021, the Board declared a quarterly dividend of $0.10 per share on the outstanding shares of our Class A common stock (the “Q3 Dividend”). On September 9, 2021, the Board determined that it would make distributions from Holdings LLC for the Q3 Dividend to only the Company. The Q3 Dividend was paid on October 6, 2021 to stockholders of record of the Class A common stock at the close of business on September 10, 2021. The proportional amount of the Q3 Dividend that was not yet distributed to SFS Corp. is $150.2 million. As of September 30, 2021, cumulative distributions of approximately $150.2 million are required to be distributed by Holdings LLC to SFS Corp. upon the sooner to occur of (i) the Board making a determination to do so or (ii) the date on which Class B Units of Holdings LLC are converted into shares of Class B common stock of the Company. | |
Basis of Presentation | Basis of Presentation and Consolidation The business combination transaction was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as UWM was determined to be the accounting acquirer, primarily due to the fact that SFS Corp. continues to control the Company through its ownership of the Class D common stock. Under this method of accounting, while the Company was the legal acquirer, it was treated as the acquired company for financial reporting purposes. Accordingly, the business combination transaction was treated as the equivalent of UWM issuing stock for the net assets of the Company, accompanied by a recapitalization, with the net assets of the Company stated at historical cost, with no goodwill or other intangible assets recorded. The net proceeds received from Gores Holdings IV, Inc. in the business combination transaction approximated $895.1 million, and the Company incurred approximately $16.0 million in costs related to the transaction which were charged to stockholders’ equity upon the closing of the transaction. As part of the business combination transaction, the Company assumed the liability related to the Public and Private Warrants (described below) of $45.6 million. During the period from January 21, 2021 to September nine September 30, 2021. The Company’s financial statement presentation included in these condensed consolidated financial statements include the condensed consolidated financial statements of UWM and its subsidiaries for periods prior to the completion of the business combination transaction with the UWM Entities and of the Company for periods from and after the business combination transaction . Our condensed consolidated financial statements are unaudited and presented in U.S. dollars. They have been prepared in accordance with U.S. GAAP pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In our opinion, these condensed consolidated financial statements include all normal and recurring adjustments considered necessary for a fair statement of our results of operations, financial position, and cash flows for the periods presented. However, our results of operations for any interim period are not necessarily indicative of the results that may be expected for a full fiscal year or for any other future period. | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |
Mortgage Servicing Rights | Accounting Change—Mortgage Servicing Rights On January 1, 2021, the Company adopted the fair value method to measure its servicing assets and liabilities for all current classes of servicing assets and liabilities subsequent to initial recognition. Management believes that the fair value method more directly reports the current expected benefits and obligations of the Company’s servicing rights. The adoption of the fair value method for a particular class of servicing assets is irrevocable. Prior to January 1, 2021, the Company measured its servicing assets and liabilities after initial recognition using the amortized cost method. This change in accounting resulted in a $3.4 million increase to retained earnings and the mortgage servicing rights (MSR) asset as of January 1, 2021. Subsequent to the adoption of the fair value method of accounting for MSRs, changes in fair value of MSRs are reported as a component of “Total revenue, net” within the condensed consolidated statements of operations. Prior to the adoption of the fair value method, MSRs were amortized in proportion to the estimated future net servicing revenue, and periodically evaluated for impairment. For this purpose, the Company stratified its MSRs based on the interest rate of the underlying loans. The Company recorded a valuation allowance when the fair value of the mortgage servicing asset strata was less than its amortized book value. Valuation allowances were recorded as a temporary impairment to the affected strata effectively reducing recorded MSRs and incurring a charge to operations. When a mortgage prepaid, the Company permanently reduced the associated MSR in the period of prepayment with a charge to operations. Under both the fair value and amortization accounting methods, the fair value of MSRs is estimated with the assistance of a third party broker based upon a valuation model that calculates the estimated present value of future cash flows. The valuation model incorporates market estimates of prepayment speeds, discount rates, cost to service, float value, ancillary income, inflation, and delinquency and default rates. | |
Income Taxes and Tax Receivable Agreement | Income Taxes Our income tax expense, deferred tax assets and liabilities, and reserves for unrecognized tax benefits reflect management’s best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the United States and various state and local jurisdictions. The tax laws are often complex and may be subject to different interpretations. To determine the financial statement impact of accounting for income taxes, the Company must make assumptions and judgements about how to interpret and apply complex tax laws to numerous transactions and business events, as well as make judgements regarding the timing of when certain items may affect taxable income . In calculating the provision for income taxes, we apply an estimated annual effective tax rate to year-to-date for the full fiscal year. Tax-effects Tax Receivable Agreement In connection with the Business Combination Agreement, the Company entered into a Tax Receivable Agreement with SFS Corp. that will obligate the Company to make payments to SFS Corp. of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes as a result of (i) certain increases in tax basis resulting from exchanges of Holdings LLC Common Units; (ii) imputed interest deemed to be paid by the Company as a result of payments it makes under the tax receivable agreement; (iii) certain increases in tax basis resulting from payments the Company makes under the tax receivable agreement; and (iv) disproportionate allocations (if any) of tax benefits to the Company which arise from, among other things, the sale of certain assets as a result of section 704(c) of the Internal Revenue Code of 1986. The Company will retain the benefit of the remaining 15% of these tax savings. The Company recognized a liability of approximately $1.9 million for estimated amounts due under the Tax Receivable Agreement in connection with the business combination transaction. Subsequently, the liability is accounted for as a loss contingency, with changes in the liability measured and recorded when estimated amounts due under the Tax Receivable Agreement are probable and can be reasonably estimated and reported as part of other (income) expense in the condensed consolidated statements of operations. During the third quarter, as a result of the sale of MSR assets that existed prior to the consummation of the business combination, the Company recorded an additional liability of $3.4 million, representing 85% of the estimated tax benefits to the Company resulting from this asset sale. As of September 30, 2021, the total liability recorded for the Tax Receivable Agreement was approximately $5.3 million. | |
Related Party Transactions | Related Party Transactions The Company enters into various transactions with related parties. See Note 14 – Related Party Transactions | |
Public and Private Warrants | Public and Private Warrants As part of Gores Holdings IV, Inc.’s initial public offering (“IPO”) in January 2020, Gores Holdings IV, Inc. issued to third party investors 42.5 million units, consisting of one share of Class A common stock of Gores Holdings IV, Inc. and one The Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until after the completion of the business combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable The Company evaluated the Public and Private Warrants under applicable U.S. GAAP and concluded that they do not meet the criteria to be classified in stockholders’ equity due to certain terms of the warrants. Since the Public and Private Warrants meet the definition of derivatives, the Company recorded these warrants as liabilities on the balance sheet at fair value upon the closing of the business combination transaction and as of September 30, 2021 (recorded within “Accounts payable and accrued expenses”), with the change in their respective fair values recognized in the condensed consolidated statement of operations (recorded within “Other income/expense”) for the period ended September 30, 2021. | |
Loans Eligible for Repurchase from Ginnie Mae | Loans Eligible for Repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due) and the call option results in a more than trivial benefit to the Company, the previously sold assets are required to be re-recognized September September | |
Stock-Based Compensation | Stock-Based Compensation Effective upon the closing of the business combination transaction, the Company adopted the UWM Holdings Corporation 2020 Omnibus Incentive Plan (the “2020 Plan”) which was approved by stockholders on January 20, 2021. The 2020 Plan allows for the grant of stock options, restricted stock, restricted stock units (“RSUs”), and stock appreciation rights. The Company’s Compensation Committee approved, effective April 2, 2021, the issuance of 3.2 million restricted stock units to the Company’s team members. The restricted stock units had a grant date fair value of approximately $25.2 million. The restricted stock units vest over three years, 33% on each of February 1, 2022 and 2023 and 34% on February 1, 2024. In addition, the Compensation Committee approved the issuance of 1,000 RSUs to each of the Company’s four non-employee they occur. | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting No. 2021-1, Reference Rate Reform (Topic 848): Scope In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Organization | Organization United Wholesale Mortgage, LLC (f/k/a United Shore Financial Services, LLC) (the “Company”) was organized under the laws of the State of Michigan. United Shore Financial Services, LLC, the Company’s predecessor, was incorporated on July 16, 1986, primarily doing business as United Wholesale Mortgage. The Company engages in the origination, sale and servicing of residential mortgage loans. The Company is based in Michigan but originates and services loans throughout the United States. The Company is approved as a Title II,non-supervised direct endorsement mortgagee with the United States Department of Housing and Urban Development (or “HUD”). In addition, the Company is an approved issuer with the Government National Mortgage Association (or “Ginnie Mae”), as well as an approved seller and servicer with the Federal National Mortgage Association (or “Fannie Mae”) and Federal Home Loan Mortgage Corporation (or “Freddie Mac”). On September 15, 2020, the Company amended and restated its operating agreement to reflect SFS Holding Corp. as the sole member of the Company with one unit authorized, issued and outstanding. Historical unit amounts have been retrospectively adjusted to give effect to this change from 80,000 units authorized, issued and outstanding to the single unit. On September 22, 2020, the Company and Gores Holdings IV, Inc., a special purpose acquisition company sponsored by an affiliate of The Gores Group, LLC, entered into a definitive agreement with respect to a business combination, which was consummated on January 21, 2021. Upon completion of the proposed transaction, the Company’s current owner retained an approximate 94% economic ownership interest of the Company, and the Company became a consolidated subsidiary of UWM Holdings Corporation (f/k/a Gores Holdings IV, Inc.). Class A common stock of UWM Holdings Corporation was listed on the New York Stock Exchange (“NYSE”) under the new ticker symbol “UWMC” on January 22, 2021. Refer to the subsequent events footnote for further discussion. On January 21, 2021, SFS contributed all of its equity interest in the Company to UWM Holdings, LLC (a wholly-owned subsidiary of SFS) and adopted the Second Amended and Restated Operating Agreement to reflect that UWM Holdings, LLC as its sole member and its manager. Upon completion of the proposed transaction, (i) UWM Holdings, LLC issued approximately 6% of its units to UWM Holdings Corporation, (ii) SFS retained approximate 94% of its units in UWM Holdings LLC and SFS retained approximately 94% of the economic ownership interest of the combined company and (iii) the Company became a consolidated subsidiary of UWM Holdings Corporation (f/k/a Gores Holdings IV, Inc.). Class A common stock of UWM Holdings Corporation was listed on the New York Stock Exchange(under the new ticker symbol “UWMC”) on January 22, 2021. Refer to the subsequent events footnote for further discussion. | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America (or “GAAP”). | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The most sensitive accounting estimates affecting the consolidated financial statements are the valuations of mortgage loans at fair value, mortgage servicing rights (or “MSRs”), derivative assets and liabilities, and the measurement of the representations and warranties reserve. | |
Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. As of December 31, 2020 and 2019, the Company had two subsidiaries both of which were special purpose entities that were formed and operate solely in connection with securitized warehouse facilities used by the Company in its operations. All significant intercompany balances and transactions have been eliminated. | |
Operating Segments | Operating Segments The Company operates as one segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision maker (or “CODM”), which is the Company’s chief executive officer, in deciding how to allocate resources and assess performance. The Company’s CODM evaluates the Company’s financial information on a consolidated basis. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers cash and temporary investments with original maturities of three months or less to be cash and cash equivalents. The Company typically maintains cash balances in financial institutions in excess of Federal Deposit Insurance Corporation limits. The Company evaluates the creditworthiness of these financial institutions in determining the risk associated with these balances . | |
Mortgage Loans at Fair Value and Revenue Recognition | Mortgage Loans at Fair Value and Revenue Recognition Mortgage loans are recorded at estimated fair value. Fair value of mortgage loans is estimated using observable market information including pricing from current cash commitments from government sponsored enterprises, recent market commitment prices, or broker quotes, as if the loa ns A majority of the revenues from mortgage loan originations are recognized when the loan is originated which is the primary revenue recognition event as the loans are recorded at fair value upon origination. Loan origination fees are recognized as income at the time the loans are originated. Interest income is accrued at the contractual rate, unless collectability is uncertain. Loan production income also includes the unrealized gains and losses associated with the changes in the fair value of mortgage loans at fair value, the realized and unrealized gains and losses from derivative assets and liabilities and the capitalization of MSRs. Loans are considered to be sold when the Company surrenders control over the financial assets. Control is considered to have been surrendered when the transferred assets have been isolated from the Company, beyond the reach of the Company and its creditors; the purchaser obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets; and the Company does not maintain effective control over the transferred assets through an agreement that entitles or obligates the Company to repurchase or redeem the transferred assets before their maturity. The Company typically considers the above criteria to have been met when transferring title to another party where no substantive repurchase rights or obligations exist. | |
Derivatives | Derivatives Derivatives are recognized as assets or liabilities on the consolidated balance sheets and measured at fair value with changes in fair value recorded within the consolidated statements of operations in the period in which they occur. The Company enters into derivative instruments to reduce its risk exposure to fluctuations in interest rates. The Company accounts for derivative instruments as free-standing derivative instruments and does not designate any for hedge accounting. Interest rate lock commitments (or “IRLCs”) on mortgage loans to be originated or purchased which are intended to be sold are considered to be derivatives with changes in fair value recorded in the consolidated statements of operations as part of loan production income. Fair value is estimated primarily based on relative changes in interest rates for the underlying mortgages to be originated or purchased. Fair value estimates also take into account the probability that loan commitments may not be exercised by customers. The Company uses forward mortgage backed security contracts, which are known as forward loan sale commitments (or “FLSCs”), to economically hedge the IRLCs. Refer to Note 3 – Derivatives for further details. | |
Mortgage Servicing Rights and Revenue Recognition—Sale of MSRs | Mortgage Servicing Rights and Revenue Recognition—Sale of MSRs MSRs are initially recorded at estimated fair value. To determine the fair value of the servicing right created, the Company uses third party estimates of fair value at the time of initial recognition. Subsequent fair value (measured for subsequent impairment purposes) is estimated with the assistance of an third party broker based upon a valuation model that calculates the estimated present value of future cash flows. The valuation model incorporates market estimates of the estimated market prepayment speeds, discount rate, cost to service, float value, ancillary income, inflation, and delinquency and default rates. MSRs are amortized in proportion to the estimated future net servicing revenue. MSRs are periodically evaluated for impairment. For this purpose, the Company stratifies its MSRs based on interest rate. Changes in the estimates used to value MSRs could materially change the estimated fair value and any valuation allowances required. Management records a valuation allowance when the fair value of the mortgage servicing asset strata is less than its amortized book value. Valuation allowances are recorded as a temporary impairment to the affected strata effectively reducing recorded MSRs and incurring a charge to operations. Valuation recoveries are recorded in subsequent periods. When a mortgage prepays, the Company permanently reduces the associated MSR in the period of prepayment with a charge to operations. Sales of MSRs are recognized when the risks and rewards of ownership have been transferred to a buyer, and a substantive non-refundable | |
Premises and equipment, net | Premises and equipment, net Premises and equipment is recorded at cost and depreciated or amortized using the straight line method over the estimated useful lives of the assets. The following is a summary of premises and equipment, net at December 31 (in thousands): Useful 2020 2019 Furniture and equipment 3—10 years $ 24,325 $ 17,976 Computer software 1—3 years 3,644 1,480 Leasehold improvements (a ) 104,074 50,633 Construction in process 1,249 5,415 Accumulated depreciation and amortization (25,720 ) (14,139 ) Premises and equipment, net $ 107,572 $ 61,365 (a) Amortized over the shorter of the related lease term or the estimated useful life of the assets. | |
Leases | Leases The Company enters into contracts to lease real estate, furniture and fixtures, and information technology equipment. Leases that meet one of the finance lease criteria are classified as finance leases, while all others are classified as operating leases. The Company determines if an arrangement is a lease at inception and has made on accounting policy election to capitalize leases with initial terms in excess of 12 months. At lease commencement, a lease liability and right-of-use right-of-use right-of-use right-of-use The Company’s leases do not contain any material residual value guarantees or material restrictive covenants. The Company’s lease agreements include both lease and non-lease non-lease right-of-use | |
Representations and Warranties Reserve | Representations and Warranties Reserve Loans sold to investors which the Company believes met investor and agency underwriting guidelines at the time of sale may be subject to repurchase in the event of specific default by the borrower or subsequent discovery that underwriting or documentation standards were not explicitly satisfied. The Company may, upon mutual agreement, indemnify the investor against future losses on such loans or be subject to other guaranty requirements and subject to loss. The Company initially records its exposure under such guarantees at estimated fair value upon the sale of the related loan, within accounts payable and accrued expenses, as well as within loan production income, and continues to evaluate its on-going non-contingent The activity of the representations and warranties reserve was as follows (in thousands): December 31, 2020 2019 Balance, beginning of period $ 46,322 $ 32,999 Reserve charged to operations 36,510 19,153 Losses realized, net (13,290 ) (5,830 ) Balance, end of period $ 69,542 $ 46,322 | |
Loan Origination Fees and Expenses | Loan Origination Fees and Expenses Loan origination fees represent revenue earned from loan production and are included in loan production income on the consolidated statements of operations. Loan origination fees generally represent flat, per-loan fee | |
Loan Servicing Income | Loan Servicing Income Loan servicing income represents revenue earned for servicing loans for various investors. The loan servicing income is based on a contractual percentage of the outstanding principal balance and is recognized into revenue as the related mortgage payments are received by the Company’s subservicer. Loan servicing expenses are charged to operations as incurred. | |
Servicing Advances | Servicing Advances Servicing advances represent advances on behalf of customers and investors to cover delinquent balances for property taxes, insurance premiums and other out-of-pocket costs.Advances are written-off when | |
Interest Income | Interest Income Interest income on mortgage loans at fair value is accrued based upon the principal amount outstanding and contractual interest rates. Income recognition is discontinued when loans become 90 days delinquent or when, in management’s opinion, the collectability of principal and interest becomes doubtful and the specific loan is put on nonaccrual status. | |
Advertising and Marketing | Advertising and Marketing Advertising and marketing is expensed as incurred and amounted to $7.9 million and $5.6 million for the years ended December 31, 2020 and 2019, respectively, and is included in marketing, travel, and entertainment expenses on the consolidated statements of operations. | |
Escrow and Fiduciary Funds | Escrow and Fiduciary Funds The Company maintains segregated bank accounts in trust for investors and escrow balances for mortgagors. The balances of these accounts amounted to $955.2 million and $374.3 million at December 31, 2020 and 2019, respectively, and are excluded from the consolidated balance sheets. | |
Income Taxes and Tax Receivable Agreement | Income Taxes The Company has elected to be taxed as a partnership for income tax purposes. Accordingly, taxable income or loss of the Company is reported on the income tax returns of the member and no provision for federal income taxes has been recorded in the accompanying consolidated financial statements. The Company is subject to certain state income taxes which are included on the consolidated statements of operations. | |
Contingencies | Contingencies The Company evaluates contingencies based on information currently available and establishes an accrual for those matters when a loss contingency is considered probable and the related amount is reasonably estimable. For matters where a loss is believed to be reasonably possible but not probable, no accrual is established by the nature of the loss contingency and an estimate of the reasonably possible range of loss in excess of amount accrued, when such estimate can be made, is disclosed. In deriving an estimate, the Company is required to make assumptions about matters that are, by their nature, highly uncertain. The assessment of loss contingencies involves the use of critical estimates, assumptions and judgments. It is not possible to predict or determine the outcome of all loss contingencies. Accruals are periodically reviewed and may be adjusted as circumstances change. | |
Risks and Uncertainties | Risks and Uncertainties The Company encounters certain economic and regulatory risks inherent in the consumer finance business. Economic risks include interest rate risk and credit risks. The Company is subject to interest rate risk to the extent that in a rising interest rate environment, the Company may experience a decrease in loan production, as well as decreases in the value of mortgage loans at fair value and in commitments to originate loans, which may negatively impact the Company’s operations. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments during the period in which mortgage loans are being held at fair value or subsequently under any representation and warranty provisions within the Company’s sale agreements. The Company is subject to substantial regulation as it directly provides financing to consumers acquiring residential real estate. The Company sells loans to investors without specific recourse. As such, the investors have assumed the risk of loss of default by the borrower. However, the Company is usually required by these investors to make certain standard representations and warranties relating to credit information, loan documentation and collateral. To the extent that the Company does not comply with such representations, or there are early payment defaults, the Company may be required to repurchase the loans or indemnify these investors for any losses from borrower defaults. In addition, if loans pay-off | |
Reclassifications | Reclassifications Some reclassifications have been made to prior year balances to conform to the current year financial statement presentation. | |
Related Party Transactions | Related Party Transactions The Company enters into various transactions with related parties. See “Note 15 – Related Party Transactions” for additional information. | |
Loans Eligible for Repurchase from Ginnie Mae | Loans Eligible for Repurchase from Ginnie Mae When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due) and the call option results in a more than trivial benefit to the Company, the previously sold assets are required to be re-recognized | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope In March 2020, the FASB issued ASU No. 2020-3, Codification Improvements to Financial Instruments “ASU2020-3”). 2020-3 2020-3 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments 2018-19, 2019-4, 2019-5 2019-11, | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In October 2020, the FASB issued ASU No. 2020-10, |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Activity of Representation and Warranties Reserve | The activity of the representations and warranties reserve was as follows (in thousands): For the three months ended September For the nine September 2021 2020 2021 2020 Balance, beginning of period $ 78,070 $ 53,296 $ 69,542 $ 46,322 Reserve charged to operations 12,601 10,859 34,262 25,574 Losses realized, net (5,985 ) (1,034 ) (19,118 ) (8,775 ) Balance, end of period $ 84,686 $ 63,121 $ 84,686 $ 63,121 | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Activity of Representation and Warranties Reserve | The activity of the representations and warranties reserve was as follows (in thousands): December 31, 2020 2019 Balance, beginning of period $ 46,322 $ 32,999 Reserve charged to operations 36,510 19,153 Losses realized, net (13,290 ) (5,830 ) Balance, end of period $ 69,542 $ 46,322 | |
Summary of Premises and Equipment, Net | Premises and equipment is recorded at cost and depreciated or amortized using the straight line method over the estimated useful lives of the assets. The following is a summary of premises and equipment, net at December 31 (in thousands): Useful 2020 2019 Furniture and equipment 3—10 years $ 24,325 $ 17,976 Computer software 1—3 years 3,644 1,480 Leasehold improvements (a ) 104,074 50,633 Construction in process 1,249 5,415 Accumulated depreciation and amortization (25,720 ) (14,139 ) Premises and equipment, net $ 107,572 $ 61,365 (a) Amortized over the shorter of the related lease term or the estimated useful life of the assets. |
Mortgage Loans at Fair Value (T
Mortgage Loans at Fair Value (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Summary of Reconciliation of Changes in Mortgage Loans at Fair Value | The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the condensed consolidated statements of operations. (In thousands) September December 31, Mortgage loans, unpaid principal balance $ 11,568,222 $ 7,620,014 Premiums paid on mortgage loans 153,628 101,949 Fair value adjustment 14,792 194,552 Mortgage loans at fair value $ 11,736,642 $ 7,916,515 | |
United Wholesale Mortgage L L C [Member] | ||
Summary of Reconciliation of Changes in Mortgage Loans at Fair Value | The table below includes the estimated fair value and unpaid principal balance (“UPB”) of mortgage loans that have contractual principal amounts and for which the Company has elected the fair value option. The fair value option has been elected for mortgage loans, as this accounting treatment best reflects the economic consequences of the Company’s mortgage origination and related hedging and risk management activities. The difference between the UPB and estimated fair value is made up of the premiums paid on mortgage loans, as well as the fair value adjustment as of the balance sheet date. The change in fair value adjustment is recorded in the “Loan production income” line item of the consolidated statement of operations. (In thousands) December 31, 2020 December 31, 2019 Mortgage loans, unpaid principal balance $ 7,620,014 $ 5,309,394 Premiums paid on mortgage loans 101,949 88,913 Fair value adjustment 194,552 48,003 Mortgage loans at fair value $ 7,916,515 $ 5,446,310 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Derivative Instruments | The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands): September 30, 2021 December 31, 2020 Fair value Fair value Derivative Derivative Notional Derivative Derivative Notional IRLCs $ 14,476 $ 50,510 $ 16,908,591 (a) $ 60,248 $ 670 $ 10,594,329 (a) FLSCs 129,331 10,924 27,265,436 824 65,567 16,602,739 Total $ 143,807 $ 61,434 $ 61,072 $ 66,237 (a) Adjusted for pullthrough rates of 88% and 92%, respectively. | |
United Wholesale Mortgage L L C [Member] | ||
Schedule of Derivative Instruments | The following summarizes derivative instruments (in thousands): December 31, 2020 December 31, 2019 Fair Notional Fair Notional IRLCs, net $ 59,579 $ 10,594,329 (a) $ 16,786 $ 6,727,739 (a) FLSCs, net (64,743 ) 16,602,739 (14,506 ) 10,674,680 Total $ (5,164 ) $ 2,280 (a) Adjusted for pullthrough rates of 92% and 81%, respectively. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Accounts Receivable | The following summarizes accounts receivable, net (in thousands): September December 31, Servicing fees $ 91,231 $ 55,838 Investor receivables 63,049 89,881 Servicing advances 61,602 60,053 Pair-offs receivable 40,207 438 Receivables from sale of servicing 38,879 10,597 Due from title companies 37,144 33,663 Warehouse bank receivable 17,859 3,642 Other receivables 128 28 Provision for current expected credit losses (10,071 ) (540 ) Total Accounts Receivable, Ne t $ 340,028 $ 253,600 | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Schedule of Accounts Receivable | The following summarizes accounts receivable, net at December 31 (in thousands): December 31, 2020 2019 Investor receivables $ 100,478 $ 104,303 Servicing advances 60,053 9,004 Servicing fees 55,838 23,113 Due from title companies 33,663 16,729 Warehouse—after deadline funding 3,642 4,020 Pair-offs receivable 438 6,317 Receivable—related party 28 245 Allowance for doubtful accounts (540 ) (258 ) Total Accounts Receivable, Net $ 253,600 $ 163,473 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Summary of Mortgage Servicing Rights | The following table summarizes changes in the MSR assets for the three and nine months ended September 30, 2021 (in thousands): For the three September 20 21 For the nine September 2021 Balance, at December 31, 2020 under amortization method $ 1,756,864 Cumulative effect of adopting fair value method 3,440 Fair value, beginning of period $ 2,662,556 $ 1,760,304 Capitalization of mortgage servicing rights 663,246 1,843,861 MSR sale s (269,925 ) (269,925 ) Changes in fair value: Due to changes in valuation inputs or assumptions 61,477 221,244 Due to collection/realization of cash flows/other (217,044 ) (655,174 ) Fair value, end of perio d $ 2,900,310 $ 2,900,310 The following is a summary of the components of change in fair value of servicing rights as reported in the condensed consolidated statements of operations: For the three For the nine Changes in fair value: Due to changes in valuation model or assumptions $ 61,477 $ 221,244 Due to collection/ realization of cash flows/ other (217,044 ) (655,174 ) Reserves and transaction costs on sales of servicing rights (14,895 ) (14,895 ) Changes in fair value of servicing rights, net $ (170,462 ) $ (448,825 ) For the three September 2020 For the nine September 2020 Balance, beginning of period $ 924,260 $ 731,353 Capitalization of mortgage servicing rights 567,961 1,335,654 Amortization (72,152 ) (172,440 ) Loans paid in full (81,294 ) (153,126 ) Sales (12,021 ) (298,007 ) Recovery/(Impairment) 84,518 (32,162 ) Balance, end of period $ 1,411,272 $ 1,411,272 | |
Summary of Loan Servicing Income | The following table summarizes the loan servicing income recognized during the three and nine months ended September 30, 2021 and 2020, respectively (in thousands): For the three months September For the nine September 2021 2020 2021 2020 Contractual servicing fees $ 173,133 $ 69,456 $ 439,386 $ 179,969 Late, ancillary and other fees 1,562 1,047 4,376 2,687 Loan servicing income $ 174,695 $ 70,503 $ 443,762 $ 182,656 | |
Summary of Key Assumptions Used in Determining the Fair Value | The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at September 30, 2021 and December 31, 2020, respectively: September December 31, Discount rates 9.0 % — 14.5 % 9.0% — 14.5% Annual prepayment speeds 8.2 % — 44.8 % 8.8% — 42.2% Cost of servicing $ 75 — $ 147 $ 75 — $ 126 | |
Schedule of Analysis of Change in Fair Value | The hypothetical effect of an adverse change in these key assumptions would result in a decrease in fair values as follows at September 30, 2021 and December 31, 2020, respectively, (in thousands): September December 31, Discount rate: + 10% adverse change – effect on value $ (94,233 ) $ (56,889 ) + 20% adverse change – effect on value (182,023 ) (110,040 ) Prepayment speeds: + 10% adverse change – effect on value $ (125,012 ) $ (87,752 ) + 20% adverse change – effect on value (241,351 ) (169,230 ) Cost of servicing: + 10% adverse change – effect on value $ (32,953 ) $ (21,643 ) + 20% adverse change – effect on value (65,905 ) (43,285 ) | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Summary of Mortgage Servicing Rights | The following summarizes the activity of MSRs (in thousands): For the year ended December 31, 2020 2019 Balance, beginning of period $ 731,353 $ 368,117 Additions 1,896,638 1,126,965 Amortization (252,421 ) (80,280 ) Loans paid in full (301,113 ) (36,937 ) Sales (298,009 ) (625,953 ) Impairment (19,584 ) (20,559 ) Balance, end of period $ 1,756,864 $ 731,353 | |
Summary of Key Assumptions Used in Determining the Fair Value | The key unobservable inputs used in determining the fair value of the Company’s MSRs were as follows at December 31, 2020 and 2019, respectively: December 31, December 31, Discount rates 9.0 14.5 9.0 14.5 Annual prepayment speeds 8.8 42.2 8.2 30.8 Cost of servicing $ 75 126 $ 90 138 | |
Schedule of Analysis of Change in Fair Value | The hypothetical effect of an adverse change in these key assumptions would result in a decrease in fair values as follows at December 31, 2020 and 2019, respectively, (in thousands): December 31, December 31, Discount rate: + 10% adverse change – effect on value $ (56,889 ) $ (25,580 ) + 20% adverse change – effect on value $ (110,040 ) $ (49,396 ) Prepayment speeds: + 10% adverse change – effect on value $ (87,752 ) $ (34,208 ) + 20% adverse change – effect on value $ (169,230 ) $ (65,744 ) Cost of servicing: + 10% adverse change – effect on value $ (21,643 ) $ (8,879 ) + 20% adverse change – effect on value $ (43,285 ) $ (17,759 ) | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes the Company’s estimated future MSR amortization expense (in thousands) based upon the existing MSR asset. These estimates are based on existing asset balances, the current interest rate environment, and prepayment speeds as of December 31, 2020. The actual amortization expense the Company recognizes in any given period may be significantly different depending upon retention or sale activities, changes in interest rates, prepayment speeds, market conditions, or circumstances that indicate the carrying amount of an asset may not be recoverable. Year ending December 31, Amounts 2021 $ 293,647 2022 249,591 2023 211,575 2024 179,066 2025 151,176 Thereafter 691,393 Total $ 1,776,448 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following summarizes other assets (in thousands): September December 31, Prepaid insurance $ 20,569 $ 35,230 Prepaid IT service and maintenance 25,770 19,827 Commitment fees 401 641 Deposits 316 31 Other 8,599 2,260 Total other assets $ 55,655 $ 57,989 |
Leases (Tables)
Leases (Tables) - UNITED WHOLESALE MORTGAGE, LLC | 12 Months Ended |
Dec. 31, 2020 | |
Lease [Line Items] | |
Summary of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): December 31, December 31, Cash paid for the amounts included in the measurement of leases liabilities – operating $ 12,551 $ 8,000 Cash paid for amounts included in the measurement of lease liabilities—financing $ 5,049 $ — Operating lease right-of-use 1 $ 27,630 $ 82,300 Financing lease right-of-use $ 20,120 $ — 1 Of the $82.3 million obtained as of December 31, 2019, $76.0 million is related to the adoption of ASU 2016-2. Additional supplemental information related to leases was as follows: December 31, December 31, Weighted average remaining lease term – operating leases 15.9 years 16 years Weighted average remaining lease term – finance leases 2.4 years — Weighted average discount rate – operating leases 7.8 % 6 % Weighted average discount rate – finance leases 6.2 % — |
Summary of Maturities of the Company's Operating Lease Liabilities | The maturities of the Company’s operating lease liabilities are summarized below (in thousands): December 31, 2020 Amounts 2021 $ 11,493 2022 11,414 2023 11,175 2024 11,175 2025 11,246 Thereafter 124,684 Total lease payments 181,187 Less imputed interest (76,653 ) Total $ 104,534 |
Summary of Maturities of the Company's Financing Lease Liabilities | The maturities of the Company’s financing lease liabilities are summarized below (in thousands): December 31, 2020 Amounts 2021 $ 10,322 2022 10,083 2023 4,505 Total lease payments 24,910 Less imputed interest (1,778 ) Total $ 23,132 |
Lines of Credit (Tables)
Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Debt Instrument [Line Items] | |
Summary of Line of Credit with Financial Institutions | The Company had the following lines of credit with financial institutions at December 31, 2020 and 2019, respectively, (in thousands): December 31, December 31, $400 million line of credit agreement expiring December 31, 2022. Interest at variable rates based on a spread to the one month LIBOR rate. Line is collateralized by $989.5 million of MSRs (based on estimated fair value as of December 31, 2020). $ 320,300 $ 251,000 $125 million line of credit agreement expired on September 14, 2020. Interest at variable rates based on a spread to the one month LIBOR rate. This line was closed during 2020. — 125,000 $ 320,300 $ 376,000 |
Warehouse Lines of Credit (Tabl
Warehouse Lines of Credit (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Schedule of Lines of Credit | The Company had the following warehouse lines of credit with financial institutions as of September 30, 2021 and December 31, 2020, respectively, (in thousands): Warehouse Lines of Credit 1 Expiration Date September December 31, Master Repurchase Agreement (“MRA”) Funding: $400 Million 2 6/23/2021 $ — $ 287,073 $2 Billion2 7/1/2021 — 499,841 $150 Million 2 9/19/2021 — 112,429 $300 Million 11/16/2021 272,308 249,006 $250 Million 12/23/2021 95,943 86,928 $1 Billion 1/10/2022 862,650 769,510 $3.5 Billion 2/23/2022 2,516,316 1,344,851 $500 Million 3/4/2022 379,161 666,891 $150 Million 5/24/2022 129,404 140,237 $200 M 7/6/2022 186,653 198,705 $400 M 10/20/2022 309,810 248,947 $1 B 4/23/2023 905,118 — $2 B 5/26/2023 987,968 1,179 $4 B 7/28/2023 2,394,222 1,685,138 $700 Million 8/30/2023 573,280 365,577 $1.5 Billion 9/18/2023 671,432 209,138 Early Funding: $250 Million (ASAP + - see below) No expiration 203,125 75,947 $150 Million ( EF No expiration 560 — All interest rates are variable based on a spread to the one-month $ 10,487,950 $ 6,941,397 1 An aggregate of $1.7 billion of these line amounts is committed as of Septembe r 2 This warehouse line of credit agreement expired pursuant to its terms prior to September 30, 2021. | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Debt Instrument [Line Items] | ||
Schedule of Lines of Credit | The Company had the following warehouse lines of credit with financial institutions as of December 31, 2020 and 2019, respectively, (in thousands): As of December 31, 2020 Warehouse Lines of Credit Expiration Date December 31, December 31, $1.5 Billion 2/10/2021 $ 1,344,851 $ 510,954 $800 Million 3/5/2021 666,891 314,728 $200 Million 3/24/2021 86,928 150,229 $150 Million 5/25/2021 140,237 133,196 $400 Million 6/23/2021 287,073 436,437 $2 Billion 7/1/2021 499,841 800,764 $200 Million 7/7/2021 198,705 156,632 $750 Million 9/7/2021 209,138 — $150 Million 9/19/2021 112,429 106,256 $400 Million 9/23/2021 248,947 240,620 $925 Million 10/29/2021 1,179 — $3 Billion 10/29/2021 1,685,138 1,384,903 $250 Million 11/16/2021 249,006 355,540 $500 Million 12/28/2021 365,577 — $1 Billion 1/10/2022 769,510 513,645 $250 Million (ASAP + —see below) No expiration 75,947 85,683 $150 Million (gestation line—see below) No expiration — — All interest rates are variable based on a spread to the one-month $ 6,941,397 $ 5,189,587 |
Senior Notes (Tables)
Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Senior Unsecured Notes | The following is a summary of the senior unsecured notes issued by the Company (in thousands): Facility Type Maturity Date Interest Rate Outstanding September Outstanding 2020 2020 Senior unsecured notes(1) 11/15/2025 5.50 % $ 800,000 $ 800,000 2021 Senior unsecured notes(2) 04/15/2029 5.50 % 700,000 — Total Unsecured Senior Notes $ 1,500,000 $ 800,000 Weighted average interest rate 5.50 % 5.50 % (1) Unamortized debt issuance costs and discounts are presented net against the 2020 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $9.0 million and $10.7 million as of September (2) Unamortized debt issuance costs and discounts are presented net against the 2021 Senior Notes reducing the amount reported on the condensed consolidated balance sheets by $6.6 million as of September |
Equipment Note Payable (Tables)
Equipment Note Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
UNITED WHOLESALE MORTGAGE, LLC | |
Debt Instrument [Line Items] | |
Summary of Annual Principal Maturities of the Equipment Notes Payable | Annual principal maturities of the equipment notes payable are as follows as of December 31, 2020 (in thousands): Year ending December 31, Amounts 2021 $ 6,299 2022 6,673 2023 6,851 2024 6,705 2025 and thereafter — Total $ 26,528 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity of Representation and Warranties Reserve | The activity of the representations and warranties reserve was as follows (in thousands): For the three months ended September For the nine September 2021 2020 2021 2020 Balance, beginning of period $ 78,070 $ 53,296 $ 69,542 $ 46,322 Reserve charged to operations 12,601 10,859 34,262 25,574 Losses realized, net (5,985 ) (1,034 ) (19,118 ) (8,775 ) Balance, end of period $ 84,686 $ 63,121 $ 84,686 $ 63,121 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Noncontrolling Interest [Abstract] | |
Summary of Ownership of Units | The following table summarizes the ownership of units in Holdings LLC as of September Common Units Ownership Percentage UWM Holdings Corporation ownership of Class A Common Units 100,367,478 6.26 % SFS Corp. ownership of Class B Common Units 1,502,069,787 93.74 % Balance at end of period 1,602,437,265 100.00 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands): September Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ — $ 11,736,642 $ — $ 11,736,642 IRLCs — — 14,476 14,476 FLSCs — 129,331 — 129,331 Investment securities at fair value, pledged — 41,809 — 41,809 Mortgage servicing rights — — 2,900,310 2,900,310 Total assets $ — $ 11,907,782 $ 2,914,786 $ 14,822,568 Liabilities: IRLCs $ — $ — $ 50,510 $ 50,510 FLSCs — 10,924 — 10,924 Public and Private Warrants 10,307 4,310 — 14,617 Total liabilities $ 10,307 $ 15,234 $ 50,510 $ 76,051 December 31, 2020 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ — $ 7,916,515 $ — $ 7,916,515 IRLCs — — 60,248 60,248 FLSCs — 824 — 824 Total assets $ — $ 7,917,339 $ 60,248 $ 7,977,587 Liabilities: IRLCs $ — $ — $ 670 $ 670 FLSCs — 65,567 — 65,567 Total liabilitie s $ — $ 65,567 $ 670 $ 66,237 | |
Quantitative Information on Recurring Level 3 Fair Value Financial Instruments | The following table present quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements for IRLCs: Unobservable Input - IRLCs September December 31, 2020 Pullthrough rate (weighted avg) 88 % 92 % | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following table presents the carrying amounts and estimated fair value of the Company’s financial liabilities that are not measured at fair value on a recurring or nonrecurring basis (in thousands) . September December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 2020 Senior Notes, due 11/15/25 $ 790,966 $ 810,200 $ 789,323 $ 841,300 2021 Senior Notes, due 4/15/29 693,404 682,668 — — | |
UNITED WHOLESALE MORTGAGE, LLC | ||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following are the major categories of financial assets and liabilities measured at fair value on a recurring basis (in thousands): December 31, 2020 Description Level 1 Level 2 Level 3 Total Mortgage loans at fair value $ — $ 7,916,515 $ — $ 7,916,515 IRLCs — — 59,579 59,579 FLSCs — (64,743 ) — (64,743 ) Total $ — $ 7,851,772 $ 59,579 $ 7,911,351 December 31, 2019 Description Level 1 Level 2 Level 3 Total Mortgage loans at fair value $ — $ 5,446,310 $ — $ 5,446,310 IRLCs — — 16,786 16,786 FLSCs — (14,506 ) — (14,506 ) Total $ — $ 5,431,804 $ 16,786 $ 5,448,590 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU Activity | The following is a summary of RSU activity for the three and nine months ended September 30, 2021. For the three months ended September For the nine months ended Shares Weighted Average Grant Date Fair Shares Weighted Unvested - beginning of period 3,076,335 $ 7.75 — $ — Granted — 7.75 3,193,510 7.75 Vested 1 (720 ) 7.75 (5,890 ) 7.75 Forfeited (160,200 ) 7.75 (272,205 ) 7.75 Unvested - end of period 2,915,415 2,915,415 1 Comprised of 4,000 shares granted to non-employee members of the board of directors that immeditately vested on the date of grant, that vested in 2021 pursuant to the terms of the 2020 Plan. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings per Share | The following table sets for the calculation of the basic and diluted earnings per share for the periods following the business combination transaction for the Company’s Class A common stock (in thousands, except shares and per share amounts): For the three months ended September For the nine September Net income $ 329,857 $ 1,328,574 Net income attributable to non-controlling 304,611 1,247,079 Net income attributable to UWMC 25,246 81,495 Numerator: Net income attributable to Class A common shareholders $ 25,246 $ 81,495 Net income attributable to Class A common shareholders - diluted $ 254,701 $ 887,166 Denominator: Weighted average shares of Class A common stock outstanding - basic 101,106,023 102,247,594 Weighted average shares of Class A common stock outstanding - diluted 1,603,710,511 1,604,567,758 Earnings per share of Class A common stock outstanding - basic $ 0.25 $ 0.80 Earnings per share of Class A common stock outstanding - diluted $ 0.16 $ 0.55 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Organization (Details) | Jan. 21, 2021$ / sharesshares | Sep. 30, 2021voteshares | Jan. 20, 2021shares | Dec. 31, 2020shares | Sep. 15, 2020shares | Dec. 31, 2019shares |
Common Class A | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of votes | vote | 1 | |||||
Common stock outstanding (in shares) | 103,104,205 | 100,367,478 | ||||
Conversion ratio | 1 | |||||
Common Class A | Minimum | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Share price (in usd per share) | $ / shares | $ 13 | |||||
Common Class A | Maximum | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Share price (in usd per share) | $ / shares | $ 19 | |||||
Common Class C | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of votes | vote | 1 | |||||
Common stock outstanding (in shares) | 0 | 0 | ||||
Common Class B | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of votes | vote | 10 | |||||
Common stock outstanding (in shares) | 0 | 0 | ||||
Exchange ratio | 1 | |||||
Common Class D | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of votes | vote | 10 | |||||
Common stock outstanding (in shares) | 1,502,069,787 | 1,502,069,787 | ||||
UWM Holdings Corporation | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Ownership percent | 94.00% | |||||
SFS Corp | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Ownership percent | 6.00% | |||||
UWM | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of units authorized | 1 | |||||
Number of units issued | 1 | |||||
Number of units outstanding | 1 | |||||
SFS Corp | UWM Holdings Corporation | Class B and Class D | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of earn-out shares to be issued | 90,761,687 | |||||
UNITED WHOLESALE MORTGAGE, LLC | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of units authorized | 1 | 1 | ||||
Number of units issued | 0 | 0 | ||||
Number of units outstanding | 0 | 0 | ||||
UNITED WHOLESALE MORTGAGE, LLC | UWM Holdings Corporation | Subsequent Event | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Ownership percent | 94.00% | |||||
UNITED WHOLESALE MORTGAGE, LLC | SFS Corp | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Number of units authorized | 80,000 | |||||
Number of units issued | 80,000 | |||||
Number of units outstanding | 80,000 | |||||
UNITED WHOLESALE MORTGAGE, LLC | SFS Corp | Subsequent Event | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Ownership percent | 6.00% |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Dividend Policy (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 06, 2021 | Sep. 09, 2021 | Aug. 16, 2021 | Sep. 30, 2021 |
Dividends Payable [Line Items] | ||||
Accumulated dividends for distribution | $ 150.2 | |||
Common Class A [Member] | ||||
Dividends Payable [Line Items] | ||||
Dividends declared (in usd per share) | $ 0.10 | $ 0.10 | ||
Dividends paid (in usd per share) | $ 0.10 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Basis of Presentation and Consolidation (Details) - USD ($) $ in Thousands | Jan. 21, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Decrease in fair value of warrants | $ 14,600 | $ 30,944 | $ 0 | |
Other income | $ 30,900 | |||
Gores Holdings IV, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Proceeds from business combination | $ 895,100 | |||
Costs related to business combination | 16,000 | |||
Liability assumed on warrants | $ 45,600 |
Organization, Basis of Presen_7
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | $ 2,374,280 | $ 2,022,361 | $ 1,468,151 | $ 681,495 | $ 661,323 | |
MSR asset | $ 2,900,310 | 1,756,864 | ||||
Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | 2,349,441 | $ 1,997,522 | $ 1,443,312 | $ 656,656 | 636,484 | |
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | 3,440 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Equity | $ 3,440 | 3,400 | ||||
MSR asset | $ 3,400 |
Organization, Basis of Presen_8
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Tax Receivable Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Tax receivable agreement liability | $ 5.3 | $ 1.9 |
Additional liability | $ 3.4 |
Organization, Basis of Presen_9
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Public and Private Warrants (Details) | 1 Months Ended | ||
Jan. 31, 2020$ / shares$ / unit$ / warrantshares | Sep. 30, 2021shares | Jan. 21, 2021shares | |
Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants outstanding (in shares) | 10,624,987 | ||
Private Warrants | |||
Class of Warrant or Right [Line Items] | |||
Number of warrants outstanding (in shares) | 5,250,000 | ||
Common Class A | |||
Class of Warrant or Right [Line Items] | |||
Number of common shares issued | 100,367,478 | ||
Gores Holdings IV, Inc. | Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in usd per share) | $ / shares | $ 11.50 | ||
Gores Holdings IV, Inc. | Private Warrants | |||
Class of Warrant or Right [Line Items] | |||
Exercise price of warrants (in usd per share) | $ / shares | $ 11.50 | ||
Number of warrants outstanding (in shares) | 5,250,000 | ||
Purchase price of warrants (in usd per warrant) | $ / warrant | 2 | ||
Gores Holdings IV, Inc. | Common Class A | Public Warrants | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called by each warrant | 1 | ||
Gores Holdings IV, Inc. | IPO | |||
Class of Warrant or Right [Line Items] | |||
Number of units issued during period (in shares) | 42,500,000 | ||
Number of warrants issued (in shares) | 0.25 | ||
Unit price (in usd per unit) | $ / unit | 10 | ||
Gores Holdings IV, Inc. | IPO | Common Class A | |||
Class of Warrant or Right [Line Items] | |||
Number of common shares issued | 1 |
Organization, Basis of Prese_10
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Loans Eligible for Repurchase (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans at fair value | $ 11,736,642 | $ 7,916,515 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans at fair value | 7,916,515 | $ 5,446,310 | |
Gnnie Mae | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans at fair value | 561,800 | 451,100 | |
Loans, fair value | 557,400 | 448,500 | |
Loans, fair value adjustment | $ 4,400 | 2,600 | |
Gnnie Mae | UNITED WHOLESALE MORTGAGE, LLC | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Mortgage loans at fair value | 451,100 | 21,700 | |
Loans, fair value | $ 448,500 | $ 18,400 |
Organization, Basis of Prese_11
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - RSU $ in Millions | Apr. 02, 2021USD ($)granteeshares | Sep. 30, 2021shares | Sep. 30, 2021shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 0 | 3,193,510 | |
the 2020 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 3,200,000 | ||
Grant date fair value | $ | $ 25.2 | ||
Award vesting period | 3 years | ||
the 2020 Plan | Non-employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares issued | 1,000 | ||
Number of grantees | grantee | 4 | ||
the 2020 Plan | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
the 2020 Plan | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
the 2020 Plan | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 34.00% |
Organization, Basis of Prese_12
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Accounts receivable, allowance for credit loss | $ 540 | $ 10,071 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Proceeds from loan originations | 53,100 | $ 31,100 | |
Accounts receivable, allowance for credit loss | $ 540 | 258 | |
Interest income maturity period | 90 days | ||
Marketing and advertising expense | $ 7,900 | 5,600 | |
Fiduciary and Trust [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Restricted investments | 955,200 | 374,300 | |
Servicing Advances [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Accounts receivable, allowance for credit loss | $ 264,000 | $ 125,000 |
Organization, Basis of Prese_13
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Activity of Representation and Warranties Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance, beginning of period | $ 78,070 | $ 53,296 | $ 69,542 | $ 46,322 | $ 46,322 | |
Reserve charged to operations | 12,601 | 10,859 | 34,262 | 25,574 | ||
Losses realized, net | (5,985) | (1,034) | (19,118) | (8,775) | ||
Balance, end of period | $ 84,686 | $ 63,121 | 84,686 | 63,121 | 69,542 | $ 46,322 |
UNITED WHOLESALE MORTGAGE, LLC | ||||||
Balance, beginning of period | $ 69,542 | $ 46,322 | 46,322 | 32,999 | ||
Reserve charged to operations | 36,510 | 19,153 | ||||
Losses realized, net | (13,290) | (5,830) | ||||
Balance, end of period | $ 69,542 | $ 46,322 |
Organization, Basis of Prese_14
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Summary of Premises and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, net | $ 107,572 | $ 145,774 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation and amortization | (25,720) | $ (14,139) | |
Premises and equipment, net | 107,572 | 61,365 | |
Furniture and equipment [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 24,325 | 17,976 | |
Furniture and equipment [Member] | Minimum [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 3 years | ||
Furniture and equipment [Member] | Maximum [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 10 years | ||
Computer software [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 3,644 | 1,480 | |
Computer software [Member] | Minimum [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 1 year | ||
Computer software [Member] | Maximum [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, useful life | 3 years | ||
Leasehold improvements [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 104,074 | 50,633 | |
Construction in process [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 1,249 | $ 5,415 |
Mortgage Loans at Fair Value (D
Mortgage Loans at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage loans, unpaid principal balance | $ 11,568,222 | $ 7,620,014 | |
Premiums paid on mortgage loans | 153,628 | 101,949 | |
Fair value adjustment | 14,792 | 194,552 | |
Mortgage loans at fair value | $ 11,736,642 | 7,916,515 | |
United Wholesale Mortgage L L C [Member] | |||
Mortgage loans, unpaid principal balance | 7,620,014 | $ 5,309,394 | |
Premiums paid on mortgage loans | 101,949 | 88,913 | |
Fair value adjustment | 194,552 | 48,003 | |
Mortgage loans at fair value | $ 7,916,515 | $ 5,446,310 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative blended weighted average pullthrough rate | 88.00% | 92.00% | |
United Wholesale Mortgage L L C [Member] | |||
Derivative blended weighted average pullthrough rate | 92.00% | 81.00% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Fair value, Derivative assets | $ 143,807 | $ 61,072 | |
Fair value, Derivative liabilities | $ 61,434 | $ 66,237 | |
Derivative blended weighted average pullthrough rate | 88.00% | 92.00% | |
United Wholesale Mortgage L L C [Member] | |||
Derivative [Line Items] | |||
Fair value, Derivative assets | $ 61,072 | $ 24,689 | |
Fair value, Derivative liabilities | 66,237 | 22,409 | |
Fair Value | $ (5,164) | $ 2,280 | |
Derivative blended weighted average pullthrough rate | 92.00% | 81.00% | |
IRLCs | |||
Derivative [Line Items] | |||
Fair value, Derivative assets | $ 14,476 | $ 60,248 | |
Fair value, Derivative liabilities | 50,510 | 670 | |
Notional Amount | 16,908,591 | 10,594,329 | |
IRLCs | United Wholesale Mortgage L L C [Member] | |||
Derivative [Line Items] | |||
Fair Value | 59,579 | $ 16,786 | |
Notional Amount | 10,594,329 | 6,727,739 | |
FLSCs | |||
Derivative [Line Items] | |||
Fair value, Derivative assets | 129,331 | 824 | |
Fair value, Derivative liabilities | 10,924 | 65,567 | |
Notional Amount | $ 27,265,436 | 16,602,739 | |
FLSCs | United Wholesale Mortgage L L C [Member] | |||
Derivative [Line Items] | |||
Fair Value | (64,743) | (14,506) | |
Notional Amount | $ 16,602,739 | $ 10,674,680 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing fees | $ 63,049 | $ 89,881 | |
Investor receivables | 91,231 | 55,838 | |
Servicing advances | 61,602 | 60,053 | |
Pair-offs receivable | 17,859 | 3,642 | |
Receivables from sale of servicing | 38,879 | 10,597 | |
Due from title companies | 40,207 | 438 | |
Warehouse bank receivable | 37,144 | 33,663 | |
Other receivables | 128 | 28 | |
Provision for current expected credit losses | (10,071) | (540) | |
Total Accounts Receivable, Net | $ 340,028 | 253,600 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Servicing fees | 55,838 | $ 23,113 | |
Investor receivables | 100,478 | 104,303 | |
Servicing advances | 60,053 | 9,004 | |
Pair-offs receivable | 438 | 6,317 | |
Due from title companies | 33,663 | 16,729 | |
Warehouse bank receivable | 3,642 | 4,020 | |
Other receivables | 28 | 245 | |
Provision for current expected credit losses | (540) | (258) | |
Total Accounts Receivable, Net | $ 253,600 | $ 163,473 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Balance, at December 31, 2020 under amortization method | $ 1,411,272 | $ 1,411,272 | $ 731,353 | |||
MSR sales | $ (269,925) | $ (269,925) | ||||
Changes in fair value: Due to changes in valuation inputs or assumptions | 61,477 | 221,244 | ||||
Changes in fair value: Due to collection/realization of cash flows/other | 217,044 | 655,174 | ||||
Changes in fair value: | ||||||
Due to changes in valuation model or assumptions | 61,477 | 221,244 | ||||
Due to collection/ realization of cash flows/ other | (217,044) | (655,174) | ||||
Reserves and transaction costs on sales of servicing rights | (14,895) | (14,895) | ||||
Changes in fair value of servicing rights, net | (170,462) | (448,825) | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||||
Balance, beginning of period | 924,260 | 731,353 | $ 731,353 | |||
Capitalization of mortgage servicing rights | 567,961 | 1,335,654 | ||||
Amortization | (72,152) | (172,440) | ||||
Loans paid in full | (81,294) | (153,126) | ||||
Sales | (12,021) | (298,007) | ||||
Recovery/(Impairment) | 84,518 | (32,162) | ||||
Balance, end of period | $ 1,411,272 | 1,411,272 | 731,353 | |||
MSR | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Balance, at December 31, 2020 under amortization method | 1,756,864 | 1,756,864 | ||||
Fair value, beginning of period | 2,662,556 | 1,760,304 | ||||
Capitalization of mortgage servicing rights | 663,246 | 1,843,861 | ||||
Changes in fair value: Due to changes in valuation inputs or assumptions | 61,477 | 221,244 | ||||
Changes in fair value: Due to collection/realization of cash flows/other | (217,044) | (655,174) | ||||
Fair value, end of period | 2,900,310 | 2,900,310 | 1,760,304 | |||
Changes in fair value: | ||||||
Due to changes in valuation model or assumptions | 61,477 | 221,244 | ||||
Due to collection/ realization of cash flows/ other | 217,044 | 655,174 | ||||
Reserves and transaction costs on sales of servicing rights | 14,900 | |||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||||
Balance, end of period | $ 1,756,864 | 1,756,864 | ||||
MSR | UNITED WHOLESALE MORTGAGE, LLC | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Balance, at December 31, 2020 under amortization method | 1,756,864 | 731,353 | ||||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||||||
Balance, beginning of period | 1,756,864 | $ 731,353 | 731,353 | 368,117 | ||
Capitalization of mortgage servicing rights | 1,896,638 | 1,126,965 | ||||
Amortization | (252,421) | (80,280) | ||||
Loans paid in full | (301,113) | (36,937) | ||||
Sales | (298,009) | (625,953) | ||||
Recovery/(Impairment) | (19,584) | (20,559) | ||||
Balance, end of period | 1,756,864 | $ 731,353 | ||||
MSR | Cumulative Effect, Period of Adoption, Adjustment | ||||||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||||
Fair value, beginning of period | $ 3,440 | |||||
Fair value, end of period | $ 3,440 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of Loan Servicing Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Transfers and Servicing [Abstract] | ||||
Contractual servicing fees | $ 173,133 | $ 69,456 | $ 439,386 | $ 179,969 |
Late, ancillary and other fees | 1,562 | 1,047 | 4,376 | 2,687 |
Loan servicing income | $ 174,695 | $ 70,503 | $ 443,762 | $ 182,656 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Summary of Key Unobservable Inputs Used in Determining the Fair Value (Details) - MSR - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Discount rates | 9.00% | 9.00% | |
Annual prepayment speeds | 8.20% | 8.80% | |
Cost of servicing | $ 75 | $ 75 | |
Minimum | UNITED WHOLESALE MORTGAGE, LLC | |||
Servicing Assets at Fair Value [Line Items] | |||
Discount rates | 9.00% | 9.00% | |
Annual prepayment speeds | 8.80% | 8.20% | |
Cost of servicing | $ 75 | $ 90 | |
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Discount rates | 14.50% | 14.50% | |
Annual prepayment speeds | 44.80% | 42.20% | |
Cost of servicing | $ 147 | $ 126 | |
Maximum | UNITED WHOLESALE MORTGAGE, LLC | |||
Servicing Assets at Fair Value [Line Items] | |||
Discount rates | 14.50% | 14.50% | |
Annual prepayment speeds | 42.20% | 30.80% | |
Cost of servicing | $ 126 | $ 138 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Analysis of Change in Fair Value (Details) - MSR - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |||
+ 10% adverse change – effect on value, discount rate | $ (94,233) | $ (56,889) | |
+ 20% adverse change – effect on value, discount rate | (182,023) | (110,040) | |
+ 10% adverse change – effect on value, prepayment speed | (125,012) | (87,752) | |
+ 20% adverse change – effect on value, prepayment speed | (241,351) | (169,230) | |
+ 10% adverse change – effect on value, cost of servicing | (32,953) | (21,643) | |
+ 20% adverse change – effect on value, cost of servicing | $ (65,905) | (43,285) | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | |||
+ 10% adverse change – effect on value, discount rate | (56,889) | $ (25,580) | |
+ 20% adverse change – effect on value, discount rate | (110,040) | (49,396) | |
+ 10% adverse change – effect on value, prepayment speed | (87,752) | (34,208) | |
+ 20% adverse change – effect on value, prepayment speed | (169,230) | (65,744) | |
+ 10% adverse change – effect on value, cost of servicing | (21,643) | (8,879) | |
+ 20% adverse change – effect on value, cost of servicing | $ (43,285) | $ (17,759) |
Mortgage Servicing Rights - S_4
Mortgage Servicing Rights - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - UNITED WHOLESALE MORTGAGE, LLC $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 293,647 |
2022 | 249,591 |
2023 | 211,575 |
2024 | 179,066 |
2025 | 151,176 |
Thereafter | 691,393 |
Total | $ 1,776,448 |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Aggregate unpaid principal balance | $ 2,900,310 | $ 2,900,310 | $ 1,756,864 | ||
Proceeds from sale of mortgage servicing rights | 241,634 | $ 217,786 | |||
Reserves and transaction costs on sales of servicing rights | (14,895) | (14,895) | |||
MSR | |||||
Aggregate unpaid principal balance | 22,700,000 | $ 22,700,000 | |||
Proceeds from sale of mortgage servicing rights | 269,900 | ||||
Reserves and transaction costs on sales of servicing rights | $ 14,900 | ||||
UNITED WHOLESALE MORTGAGE, LLC | |||||
Mortgage obligations amount | 188,300,000 | $ 72,600,000 | |||
Mortgage Servicing Rights Of fair value | 1,760,000 | 744,000 | |||
Aggregate unpaid principal balance | 1,756,864 | 731,353 | |||
Proceeds from sale of mortgage servicing rights | $ 289,170 | $ 594,150 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 20,569 | $ 35,230 |
Prepaid IT service and maintenance | 25,770 | 19,827 |
Commitment fees | 401 | 641 |
Deposits | 316 | 31 |
Other | 8,599 | 2,260 |
Total other assets | $ 55,655 | $ 57,989 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease [Line Items] | ||||
Cash paid for amounts included in the measurement of lease liabilities—financing | $ 9,620 | $ 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | ||||
Lease [Line Items] | ||||
Cash paid for the amounts included in the measurement of leases liabilities – operating | $ 12,551 | $ 8,000 | ||
Cash paid for amounts included in the measurement of lease liabilities—financing | 5,049 | 0 | ||
Operating lease right-of-use assets obtained in exchange for operating leases liabilities | 27,630 | 82,300 | ||
Financing lease right-of-use assets obtained in exchange for finance lease liabilities | $ 20,120 | $ 0 | ||
Weighted average remaining lease term – operating leases | 15 years 10 months 24 days | 16 years | ||
Weighted average remaining lease term – finance leases | 2 years 4 months 24 days | |||
Weighted average discount rate – operating leases | 7.80% | 6.00% | ||
Weighted average discount rate – finance leases | 6.20% | 0.00% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Parenthetical) (Details) - UNITED WHOLESALE MORTGAGE, LLC - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease [Line Items] | ||
Operating lease right-of-use assets obtained in exchange for operating leases liabilities | $ 27,630 | $ 82,300 |
Accounting Standards Update 2016-02 | ||
Lease [Line Items] | ||
Operating lease right-of-use assets obtained in exchange for operating leases liabilities | $ 76,000 |
Leases - Summary of Maturities
Leases - Summary of Maturities of the Company's Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
2021 | $ 11,493 | ||
2022 | 11,414 | ||
2023 | 11,175 | ||
2024 | 11,175 | ||
2025 | 11,246 | ||
Thereafter | 124,684 | ||
Total lease payments | 181,187 | ||
Less imputed interest | (76,653) | ||
Total | $ 117,824 | $ 104,534 | $ 91,800 |
Leases - Summary of Maturitie_2
Leases - Summary of Maturities of the Company's Financing Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Lease, Liability, Payment, Due [Abstract] | |||
2021 | $ 10,322 | ||
2022 | 10,083 | ||
2023 | 4,505 | ||
Total lease payments | 24,910 | ||
Less imputed interest | (1,778) | ||
Total | $ 60,871 | $ 23,132 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | |
Lease [Line Items] | |||
Finance lease right-of-use assets | $ 22,929 | $ 0 | $ 60,113 |
Finance lease liabilities | $ 23,132 | 0 | 60,871 |
Lessee, Finance Lease, Term of Contract | 2 years | ||
interest expense | $ 800 | ||
amortization expense | 5,200 | ||
Operating lease right-of-use assets | 93,098 | 79,500 | 105,902 |
Operating Lease, Liability | 104,534 | 91,800 | $ 117,824 |
Total lease expense | 10,900 | 9,500 | |
Costs and Expenses, Related Party | 10,600 | 8,600 | |
Variable Lease, Cost | 600 | 0 | |
Controller [Member] | |||
Lease [Line Items] | |||
Operating lease right-of-use assets | 92,600 | 73,200 | |
Operating Lease, Liability | $ 104,000 | $ 85,500 | |
Minimum [Member] | |||
Lease [Line Items] | |||
Lessee, Operating Lease, Remaining Lease Term | 2 years | ||
Maximum [Member] | |||
Lease [Line Items] | |||
Lessee, Finance Lease, Term of Contract | 3 years | ||
Lessee, Operating Lease, Remaining Lease Term | 17 years |
Lines of Credit - Summary of Li
Lines of Credit - Summary of Line of Credit with Financial Institutions (Details) - USD ($) $ in Thousands | May 15, 2020 | Dec. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | ||||
Committed line amount | $ 320,300 | $ 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | ||||
Line of Credit Facility [Line Items] | ||||
Committed line amount | 320,300 | $ 376,000 | ||
Line of credit facility, expiration date | Sep. 16, 2020 | |||
$400 Million Line of Credit Agreement Expiring December 31, 2022 | UNITED WHOLESALE MORTGAGE, LLC | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 400,000 | |||
Committed line amount | $ 320,300 | 251,000 | ||
Line of credit facility, expiration date | Dec. 31, 2022 | |||
Line of credit facility, collateral fees amount | $ 989,500 | |||
$125 Million Line of Credit Agreement Expired September 14, 2020 | UNITED WHOLESALE MORTGAGE, LLC | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 125,000 | |||
Committed line amount | $ 0 | $ 125,000 | ||
Line of credit facility, expiration date | Sep. 14, 2020 |
Warehouse Lines of Credit - Sum
Warehouse Lines of Credit - Summary of Line of Credit (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | |||
Outstanding amount | $ 0 | $ 320,300,000 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 320,300,000 | $ 376,000,000 | |
Warehouse Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 10,487,950,000 | 6,941,397,000 | |
Current aggregate committed amount | 1,700,000,000 | ||
Warehouse Line of Credit | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 6,941,397,000 | 5,189,587,000 | |
Warehouse Line of Credit | Line of Credit Due June 23, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | ||
Outstanding amount | 0 | 287,073,000 | |
Warehouse Line of Credit | Line of Credit Due June 23, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | ||
Outstanding amount | 287,073,000 | 436,437,000 | |
Warehouse Line of Credit | Line of Credit Due July 1, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000 | ||
Outstanding amount | 0 | 499,841,000 | |
Warehouse Line of Credit | Line of Credit Due July 1, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000 | ||
Outstanding amount | 499,841,000 | 800,764,000 | |
Warehouse Line of Credit | Line of Credit Due September 7, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 0 | 112,429,000 | |
Warehouse Line of Credit | Line of Credit Due September 7, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 750,000,000 | ||
Outstanding amount | 209,138,000 | 0 | |
Warehouse Line of Credit | Line of Credit Due September 19, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 300,000,000 | ||
Outstanding amount | 272,308,000 | 249,006,000 | |
Warehouse Line of Credit | Line of Credit Due September 19, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 112,429,000 | 106,256,000 | |
Warehouse Line of Credit | Line of Credit Due September 23, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Outstanding amount | 95,943,000 | 86,928,000 | |
Warehouse Line of Credit | Line of Credit Due September 23, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | ||
Outstanding amount | 248,947,000 | 240,620,000 | |
Warehouse Line of Credit | Line of Credit Due October 29, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,000,000,000 | ||
Outstanding amount | 862,650,000 | 769,510,000 | |
Warehouse Line of Credit | Line of Credit Due October 29, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 925,000,000 | ||
Outstanding amount | 1,179,000 | 0 | |
Warehouse Line of Credit | Line of Credit Due November 16, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 3,500,000 | ||
Outstanding amount | 2,516,316,000 | 1,344,851,000 | |
Warehouse Line of Credit | Line of Credit Due November 16, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Outstanding amount | 249,006,000 | 355,540,000 | |
Warehouse Line of Credit | Line of Credit Due December 23, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Outstanding amount | 379,161,000 | 666,891,000 | |
Warehouse Line of Credit | Line of Credit Due December 28, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 129,404,000 | 140,237,000 | |
Warehouse Line of Credit | Line of Credit Due December 28, 2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Outstanding amount | 365,577,000 | 0 | |
Warehouse Line of Credit | Line of Credit Due January 10, 2022 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000,000 | ||
Outstanding amount | 186,653,000 | 198,705,000 | |
Warehouse Line of Credit | Line of Credit Due January 10, 2022 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,000,000,000 | ||
Outstanding amount | 769,510,000 | 513,645,000 | |
Warehouse Line of Credit | Line of Credit Due February 23, 2022 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000,000 | ||
Outstanding amount | 309,810,000 | 248,947,000 | |
Warehouse Line of Credit | Line of Credit Due March 4, 2022 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,000,000 | ||
Outstanding amount | 905,118,000 | 0 | |
Warehouse Line of Credit | Line Of Credit Due May 03, 2021 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000 | ||
Outstanding amount | 987,968,000 | 1,179,000 | |
Warehouse Line of Credit | Line of Credit Due July 6, 2022 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 4,000,000 | ||
Outstanding amount | 2,394,222,000 | 1,685,138,000 | |
Warehouse Line of Credit | Line of Credit Due April 23, 2023 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 700,000,000,000 | ||
Outstanding amount | 573,280,000 | 365,577,000 | |
Warehouse Line of Credit | Line of Credit Due May 26, 2023 | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,500,000,000 | ||
Outstanding amount | 671,432,000 | 209,138,000 | |
Warehouse Line of Credit | Line Of Credit Due February 10,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 1,500,000,000 | ||
Outstanding amount | 1,344,851,000 | 510,954,000 | |
Warehouse Line of Credit | Line Of Credit Due March 05,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 800,000,000 | ||
Outstanding amount | 666,891,000 | 314,728,000 | |
Warehouse Line of Credit | Line Of Credit Due March 24,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | ||
Outstanding amount | 86,928,000 | 150,229,000 | |
Warehouse Line of Credit | Line Of Credit Due May 25,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 140,237,000 | 133,196,000 | |
Warehouse Line of Credit | Line Of Credit Due July 07,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 200,000,000 | ||
Outstanding amount | 198,705,000 | 156,632,000 | |
Warehouse Line of Credit | Line Of Credit Due October 29,2021 | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 3,000,000,000 | ||
Outstanding amount | 1,685,138,000 | 1,384,903,000 | |
Warehouse Line of Credit | Line of Credit, ASAP program | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Outstanding amount | 203,125,000 | 75,947,000 | |
Warehouse Line of Credit | Line of Credit, ASAP program | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 250,000,000 | ||
Outstanding amount | 75,947,000 | 85,683,000 | |
Warehouse Line of Credit | Line of Credit, Gestation line | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 0 | ||
Warehouse Line of Credit | Line of Credit, Gestation line | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | 0 | $ 0 | |
Warehouse Line of Credit | Line of Credit, EF | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 150,000,000 | ||
Outstanding amount | $ 560,000 | $ 0 |
Warehouse Lines of Credit - Add
Warehouse Lines of Credit - Additional Information (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Line of Credit Facility [Line Items] | |||
Outstanding amount | $ 0 | $ 320,300,000 | |
UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 320,300,000 | $ 376,000,000 | |
Warehouse Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 10,487,950,000 | 6,941,397,000 | |
Warehouse Line of Credit | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 6,941,397,000 | 5,189,587,000 | |
Warehouse Line of Credit | Line of Credit, ASAP program | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 203,125,000 | 75,947,000 | |
Maximum borrowing capacity | 250,000,000 | ||
Warehouse Line of Credit | Line of Credit, ASAP program | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 75,947,000 | 85,683,000 | |
Maximum borrowing capacity | 250,000,000 | ||
Warehouse Line of Credit | Line of Credit, EF program | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 600,000 | ||
Warehouse Line of Credit | Line of Credit, EF program | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 0 | ||
Warehouse Line of Credit | Line of Credit, Gestation line | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 0 | ||
Maximum borrowing capacity | $ 150,000,000 | ||
Warehouse Line of Credit | Line of Credit, Gestation line | UNITED WHOLESALE MORTGAGE, LLC | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount | 0 | $ 0 | |
Maximum borrowing capacity | $ 150,000,000 |
Senior Notes - Summary of Senio
Senior Notes - Summary of Senior Unsecured Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Nov. 03, 2020 |
Debt Instrument [Line Items] | |||
Outstanding Balance | $ 1,500,000 | $ 800,000 | |
Weighted average interest rate | 5.50% | 5.50% | |
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.50% | 5.50% | |
Outstanding Balance | $ 800,000 | $ 800,000 | |
Unamortized debt issuance costs and discounts | $ 9,000 | 10,700 | |
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | |||
Debt Instrument [Line Items] | |||
Interest Rate | 5.50% | 5.50% | |
Outstanding Balance | $ 700,000 | $ 0 | |
Unamortized debt issuance costs and discounts | $ 6,600 |
Senior Notes - Additional Infor
Senior Notes - Additional Information (Details) - USD ($) | May 15, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 14, 2022 | Nov. 15, 2025 | Apr. 14, 2024 | Apr. 15, 2029 | Apr. 07, 2021 | Nov. 03, 2020 | Jul. 15, 2020 | Jun. 15, 2020 |
Debt Instrument [Line Items] | |||||||||||||
Senior notes balance | $ 1,484,370,000 | $ 789,323,000 | |||||||||||
Proceeds from issuance of senior notes | $ 700,000,000 | $ 0 | |||||||||||
UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes balance | 789,323,000 | ||||||||||||
Proceeds from issuance of senior notes | 800,000,000 | $ 0 | |||||||||||
Line of credit facility, expiration date | Sep. 16, 2020 | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 800,000,000 | ||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 800,000,000 | $ 800,000,000 | |||||||||||
Interest rate | 5.50% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 105.50% | 100.00% | |||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 105.50% | 100.00% | |||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 40.00% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Maximum | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 40.00% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 102.75% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period One | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 102.75% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 101.375% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period Two | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 101.375% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 100.00% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due November 15, 2025 | Forecast | Debt Instrument, Redemption, Period Three | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 100.00% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 700,000,000 | ||||||||||||
Interest rate | 5.50% | 5.50% | |||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | Forecast | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 105.50% | 100.00% | |||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | Forecast | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 40.00% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | Forecast | Debt Instrument, Redemption, Period One | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 102.75% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | Forecast | Debt Instrument, Redemption, Period Two | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 101.375% | ||||||||||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | Forecast | Debt Instrument, Redemption, Period Three | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt redemption price percentage | 100.00% | ||||||||||||
SFS Holding Corp | SFS Notes | UNITED WHOLESALE MORTGAGE, LLC | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Face amount | $ 200,000,000 | ||||||||||||
Debt instrument, repurchase amount | $ 100,000,000 | ||||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000,000 | ||||||||||||
Proceeds from issuance of senior notes | 300,000,000 | ||||||||||||
Repayments of senior debt | $ 449,500,000 |
Equipment Note Payable - Summar
Equipment Note Payable - Summary of Annual Maturities of Equipment Notes Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 1,500,000 | $ 800,000 |
Equipment Note Payable | UNITED WHOLESALE MORTGAGE, LLC | ||
Debt Instrument [Line Items] | ||
2021 | 6,299 | |
2022 | 6,673 | |
2023 | 6,851 | |
2024 | 6,705 | |
2025 and thereafter | 0 | |
Total | $ 26,528 |
Equipment Note Payable - Additi
Equipment Note Payable - Additional Information (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 |
Debt Instrument [Line Items] | |||
Secured debt outstanding | $ 0 | $ 32,560,000 | |
Secured Debt | Equipment Note Payable | UNITED WHOLESALE MORTGAGE, LLC | |||
Debt Instrument [Line Items] | |||
Secured debt outstanding | 26,500,000 | ||
Secured Debt | Equipment Note Payable | Equipment Notes 2019 | UNITED WHOLESALE MORTGAGE, LLC | |||
Debt Instrument [Line Items] | |||
Debt instrument face value | $ 30,000,000 | ||
Debt instrument instalment amount principal | $ 580,000 | ||
Debt instrument date of first required payment | Jan. 1, 2020 | ||
Long term debt stated interest rate percentage | 5.99% | ||
Long term debt month of maturity | 2024-12 | ||
Debt instrument frequency of payment of principal | monthly | ||
Secured Debt | Equipment Note Payable | 2020 Equipment Notes One | UNITED WHOLESALE MORTGAGE, LLC | |||
Debt Instrument [Line Items] | |||
Debt instrument face value | 2,100,000 | ||
Debt instrument instalment amount principal | $ 100,000 | ||
Debt instrument date of first required payment | Jul. 1, 2020 | ||
Long term debt stated interest rate percentage | 6.10% | ||
Long term debt month of maturity | 2023-04 | ||
Secured Debt | Equipment Note Payable | 2020 Equipment Notes Two | UNITED WHOLESALE MORTGAGE, LLC | |||
Debt Instrument [Line Items] | |||
Debt instrument face value | $ 900,000 | ||
Debt instrument instalment amount principal | $ 80,000 | ||
Debt instrument date of first required payment | Jan. 1, 2021 | ||
Long term debt stated interest rate percentage | 4.69% | ||
Long term debt month of maturity | 2023-10 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loss Contingencies [Line Items] | |||||
Loans repurchased | $ 35.4 | $ 12.8 | $ 102.3 | $ 37.4 | |
Commitments to extend credit to potential borrowers | 38,800 | 38,800 | |||
UNITED WHOLESALE MORTGAGE, LLC | |||||
Loss Contingencies [Line Items] | |||||
Commitments to extend credit to potential borrowers | $ 19,200 | ||||
HUD | |||||
Loss Contingencies [Line Items] | |||||
Mortgage financial services actual net worth | 3,100 | 3,100 | |||
Minimum net worth requirement | 2.5 | 2.5 | |||
HUD | UNITED WHOLESALE MORTGAGE, LLC | |||||
Loss Contingencies [Line Items] | |||||
Mortgage financial services actual net worth | 2,370 | ||||
Minimum net worth requirement | 2.5 | ||||
Ginnie Mae, Freddie Mac and Fannie Mae | |||||
Loss Contingencies [Line Items] | |||||
Minimum net worth requirement | 714.8 | 714.8 | |||
Liquidity requirement | $ 94.7 | $ 94.7 | |||
Ginnie Mae, Freddie Mac and Fannie Mae | UNITED WHOLESALE MORTGAGE, LLC | |||||
Loss Contingencies [Line Items] | |||||
Minimum net worth requirement | 491.1 | ||||
Liquidity requirement | 78.2 | ||||
IRLCs | UNITED WHOLESALE MORTGAGE, LLC | |||||
Loss Contingencies [Line Items] | |||||
Derivative liabilities notional amount | $ 11,500 |
Commitments and Contingencies_2
Commitments and Contingencies - Activity of Representation and Warranties Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Representation And Warranty Reserve [Roll Forward] | |||||
Balance, beginning of period | $ 78,070 | $ 53,296 | $ 69,542 | $ 46,322 | $ 46,322 |
Reserve charged to operations | 12,601 | 10,859 | 34,262 | 25,574 | |
Losses realized, net | (5,985) | (1,034) | (19,118) | (8,775) | |
Balance, end of period | $ 84,686 | $ 63,121 | $ 84,686 | $ 63,121 | $ 69,542 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Variable Interest Entity [Line Items] | ||
Fair value of investment securities pledged | $ 40,700 | |
Investment securities at fair value, pledged | $ 41,809 | $ 0 |
Holdings, LLC | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage | 100.00% |
Non-controlling Interests (Deta
Non-controlling Interests (Details) | 9 Months Ended |
Sep. 30, 2021shares | |
Common Class A | |
Noncontrolling Interest [Line Items] | |
Number of shares issued in stock-based compensation plan | 5,890 |
Number of shares repurchased and retired | 2,742,617 |
Holdings, LLC | |
Noncontrolling Interest [Line Items] | |
Common Units | 1,602,437,265 |
Ownership Percentage | 100.00% |
Holdings, LLC | Common Class A | |
Noncontrolling Interest [Line Items] | |
Common Units | 100,367,478 |
Ownership Percentage by Noncontrolling Owners | 6.26% |
Holdings, LLC | Common Class B | SFS Corp | |
Noncontrolling Interest [Line Items] | |
Common Units | 1,502,069,787 |
Ownership Percentage by Parent | 93.74% |
Regulatory Net Worth Requirem_2
Regulatory Net Worth Requirements (Details) $ in Millions | Sep. 30, 2021USD ($) |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum capital ratio | 6.00% |
HUD | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum net worth requirement | $ 2.5 |
Actual net worth | 3,100 |
Ginnie Mae, Freddie Mac and Fannie Mae | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum net worth requirement | 714.8 |
Liquidity requirement | $ 94.7 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | $ 11,736,642 | $ 7,916,515 | ||
Investment securities at fair value, pledged | 41,809 | |||
Total assets | 14,822,568 | 7,977,587 | ||
Public and Private Warrants | 14,617 | |||
Total liabilities | 76,051 | 66,237 | ||
IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 14,476 | 60,248 | ||
Derivative liability | 50,510 | 670 | ||
FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 129,331 | 824 | ||
Derivative liability | 10,924 | 65,567 | ||
Mortgage servicing rights | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights | 2,900,310 | $ 2,662,556 | 1,760,304 | |
Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 0 | 0 | ||
Investment securities at fair value, pledged | 0 | |||
Total assets | 0 | 0 | ||
Public and Private Warrants | 10,307 | |||
Total liabilities | 10,307 | 0 | ||
Level 1 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 0 | 0 | ||
Derivative liability | 0 | 0 | ||
Level 1 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 0 | 0 | ||
Derivative liability | 0 | 0 | ||
Level 1 | Mortgage servicing rights | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights | 0 | |||
Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 11,736,642 | 7,916,515 | ||
Investment securities at fair value, pledged | 41,809 | |||
Total assets | 11,907,782 | 7,917,339 | ||
Public and Private Warrants | 4,310 | |||
Total liabilities | 15,234 | 65,567 | ||
Level 2 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 0 | 0 | ||
Derivative liability | 0 | 0 | ||
Level 2 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 129,331 | 824 | ||
Derivative liability | 10,924 | 65,567 | ||
Level 2 | Mortgage servicing rights | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights | 0 | |||
Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 0 | 0 | ||
Investment securities at fair value, pledged | 0 | |||
Total assets | 2,914,786 | 60,248 | ||
Public and Private Warrants | 0 | |||
Total liabilities | 50,510 | 670 | ||
Level 3 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 14,476 | 60,248 | ||
Derivative liability | 50,510 | 670 | ||
Level 3 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative asset | 0 | 0 | ||
Derivative liability | 0 | 0 | ||
Level 3 | Mortgage servicing rights | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage servicing rights | $ 2,900,310 | |||
UNITED WHOLESALE MORTGAGE, LLC | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 7,916,515 | $ 5,446,310 | ||
Total | 7,911,351 | 5,448,590 | ||
UNITED WHOLESALE MORTGAGE, LLC | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 59,579 | 16,786 | ||
UNITED WHOLESALE MORTGAGE, LLC | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 64,743 | 14,506 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 0 | 0 | ||
Total | 0 | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 1 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 0 | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 1 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 0 | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 7,916,515 | 5,446,310 | ||
Total | 7,851,772 | 5,431,804 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 2 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 0 | 0 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 2 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 64,743 | 14,506 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Mortgage loans at fair value | 0 | 0 | ||
Total | 59,579 | 16,786 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 3 | IRLCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | 59,579 | 16,786 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 3 | FLSCs | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative liability | $ 0 | $ 0 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Details) | Sep. 30, 2021 | Dec. 31, 2020 |
IRLCs | Pull-through rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 88 | 92 |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Instruments (Details) - Senior Notes - Level 2 - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
2020 Senior Notes, due 11/15/25 | Carrying Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt, fair value | $ 790,966 | $ 789,323 |
2020 Senior Notes, due 11/15/25 | Estimated Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt, fair value | 810,200 | 841,300 |
2021 Senior Notes, due 4/15/29 | Carrying Amount | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt, fair value | 693,404 | 0 |
2021 Senior Notes, due 4/15/29 | Estimated Fair Value | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt, fair value | $ 682,668 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2021 | Nov. 03, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustment | $ 194,552,000 | $ 14,792,000 | ||
Senior Unsecured Notes Due November 15, 2025 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument face value | $ 800,000,000 | |||
UNITED WHOLESALE MORTGAGE, LLC | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value adjustment | 194,552,000 | $ 48,003,000 | ||
UNITED WHOLESALE MORTGAGE, LLC | Level 2 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-term debt, fair value | 841,300,000 | |||
UNITED WHOLESALE MORTGAGE, LLC | Senior Unsecured Notes Due November 15, 2025 | Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument face value | 800,000,000 | $ 800,000,000 | ||
UNITED WHOLESALE MORTGAGE, LLC | IRLCs | Net Changes In Unrealized Gain Loss [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net transfers into out of level three assets | $ 42,800,000 | $ 30,000 |
Related Party Transactions (Det
Related Party Transactions (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)aircraft | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||||
Other general and administrative expenses | $ 39,148,000 | $ 28,484,000 | $ 96,867,000 | $ 70,835,000 | |||
Proceeds from lines of credit | 79,700,000 | 456,895,000 | |||||
Repayment of lines of credit | 400,000,000 | 512,595,000 | |||||
Line of credit outstanding | 0 | 0 | $ 320,300,000 | ||||
United Wholesale Mortgage L L C [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Other general and administrative expenses | 27,940,000 | $ 13,196,000 | |||||
Proceeds from lines of credit | 412,295,000 | 798,321,000 | |||||
Repayment of lines of credit | 467,995,000 | 582,417,000 | |||||
Line of credit outstanding | 320,300,000 | 376,000,000 | |||||
Affiliated Entity | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses of various companies related through common ownership | 3,600,000 | 4,600,000 | 12,100,000 | 11,300,000 | |||
Rent expenses | 3,300,000 | 3,800,000 | 11,000,000 | 10,000,000 | |||
Legal fees | 200,000 | 200,000 | 500,000 | 500,000 | |||
Direct origination costs | 100,000 | 100,000 | 300,000 | ||||
Other general and administrative expenses | $ 100,000 | $ 500 | $ 500,000 | $ 500 | |||
Affiliated Entity | United Wholesale Mortgage L L C [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Expenses of various companies related through common ownership | 15,000,000 | 11,200,000 | |||||
Rent expenses | 13,400,000 | 10,000,000 | |||||
Legal fees | 600,000 | 600,000 | |||||
Direct origination costs | 400,000 | 400,000 | |||||
Other general and administrative expenses | 600,000 | $ 200,000 | |||||
Ceo and Certain Other Affiliates Including the Brother of Ceo [Member] | Line Of Credit Agreements [Member] | United Wholesale Mortgage L L C [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from lines of credit | $ 297,000,000 | ||||||
Repayment of lines of credit | $ 297,000,000 | ||||||
Interest expenses related party | 1,000,000 | ||||||
Line of credit outstanding | $ 0 | ||||||
CEO | |||||||
Related Party Transaction [Line Items] | |||||||
Number of units leased | aircraft | 2 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 1.04% | 1.32% |
Effective tax rate attributable to non-controlling interests | 94.00% | 94.00% |
Unrecognized tax benefits | $ 0 | $ 0 |
Unrecognized tax benefits, interest on income tax expense | 0 | 0 |
Unrecognized tax benefits, penalties on income tax expense | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)shares | Sep. 30, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 2.1 | $ 4.4 |
RSU | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation related to unvested awards | $ 18.2 | $ 18.2 |
Unvested awards, period for recognition | 2 years 4 months 24 days | |
2020 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized for issuance | shares | 80,000,000 | 80,000,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSU Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | |
Tranche One | Independent Members of the Board of Directors | |||
Shares | |||
Vested (in shares) | (4,000) | ||
Tranche Two | |||
Shares | |||
Vested (in shares) | (1,890) | ||
RSU | |||
Shares | |||
Unvested - beginning of period (in shares) | 3,076,335 | 0 | |
Granted (in shares) | 0 | 3,193,510 | |
Vested (in shares) | (720) | (5,890) | |
Forfeited (in shares) | (160,200) | (272,205) | |
Unvested - end of period (in shares) | 2,915,415 | 3,076,335 | 2,915,415 |
Weighted Average Grant Date Fair Value | |||
Unvested - beginning of period (in usd per share) | $ 7.75 | $ 0 | |
Granted (in usd per share) | 7.75 | 7.75 | |
Vested (in usd per share) | 7.75 | 7.75 | |
Forfeited (in usd per share) | $ 7.75 | $ 7.75 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |||||||
Net income | $ 329,857 | $ 138,712 | $ 1,450,883 | $ 539,487 | $ 20,349 | $ 1,328,574 | $ 2,010,719 |
Net income attributable to non-controlling interests | 304,611 | 1,247,079 | |||||
Net income attributable to UWM Holdings Corporation | 25,246 | 81,495 | |||||
Net income attributable to Class A common shareholders | 25,246 | 81,495 | |||||
Net income attributable to Class A common shareholders - diluted | $ 254,701 | $ 887,166 | |||||
Weighted average shares of Class A common stock outstanding - basic (in shares) | 101,106,023 | 102,247,594 | |||||
Weighted average shares of Class A common stock outstanding - diluted (in shares) | 1,603,710,511 | 1,604,567,758 | |||||
Earnings per share of Class A common stock outstanding - basic (in usd per share) | $ 0.25 | $ 0.80 | |||||
Earnings per share of Class A common stock outstanding - diluted (in usd per share) | $ 0.16 | $ 0.55 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | Sep. 30, 2021 | Jan. 21, 2021 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock outstanding (in shares) | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Thousands, shares in Millions | Sep. 11, 2021USD ($)$ / sharesshares | Sep. 09, 2021$ / shares | Aug. 16, 2021$ / shares | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | |||||||
Operating lease liability | $ 117,824 | $ 104,534 | $ 91,800 | ||||
Value of shares repurchased | $ 14,847 | $ 6,148 | |||||
UNITED WHOLESALE MORTGAGE, LLC | |||||||
Subsequent Event [Line Items] | |||||||
Operating lease liability | 104,534 | $ 91,780 | |||||
Common Class A | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared (in usd per share) | $ / shares | $ 0.10 | $ 0.10 | |||||
Subsequent Event | Employee Lease Agreements [Member] | UNITED WHOLESALE MORTGAGE, LLC | |||||||
Subsequent Event [Line Items] | |||||||
Related party transaction rent receivable per month | 25 | ||||||
Subsequent Event | Common Class A | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared (in usd per share) | $ / shares | $ 0.10 | ||||||
Number of shares repurchased | shares | 25.2 | ||||||
Value of shares repurchased | $ 3,700 | ||||||
Subsequent Event | Affiliated Entity | |||||||
Subsequent Event [Line Items] | |||||||
Number of related parties | 1 | ||||||
Subsequent Event | CEO | Affiliated Entity | UNITED WHOLESALE MORTGAGE, LLC | |||||||
Subsequent Event [Line Items] | |||||||
Operating lease liability | $ 38,300 |