Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39189 | |
Entity Registrant Name | UWM HOLDINGS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2124167 | |
Entity Address, Address Line One | 585 South Boulevard E. | |
Entity Address, City or Town | Pontiac, | |
Entity Address, State or Province | MI | |
Entity Address, Postal Zip Code | 48341 | |
City Area Code | (800) | |
Local Phone Number | 981-8898 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001783398 | |
Common Class A | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | UWMC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 103,108,205 | |
Warrant | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each warrant exercisable for one share of Class A Common Stock | |
Trading Symbol | UWMCWS | |
Security Exchange Name | NYSE | |
Common Class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,502,069,787 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | $ 1,592,663 | $ 1,223,837 |
Mortgage loans at fair value | 5,503,271 | 7,916,515 |
Derivative assets | 113,168 | 61,072 |
Accounts receivable, net | 549,381 | 253,600 |
Mortgage servicing rights - fair value as of March 31, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | 2,300,434 | 1,756,864 |
Premises and equipment, net | 111,964 | 107,572 |
Operating lease right-of-use asset, net (includes $87,440 and $92,571 with related parties) | 87,896 | 93,098 |
Finance lease right-of-use asset (includes $29,192 and $0 with related parties) | 54,456 | 22,929 |
Other assets | 59,393 | 57,989 |
Total assets | 10,372,626 | 11,493,476 |
Liabilities and Equity | ||
Warehouse lines of credit | 4,823,740 | 6,941,397 |
Accounts payable and accrued expenses | 1,185,499 | 847,745 |
Accrued dividends payable | 160,517 | 0 |
Derivative liabilities | 55,479 | 66,237 |
Equipment note payable | 25,424 | 26,528 |
Operating lines of credit | 400,000 | 320,300 |
Senior notes | 789,870 | 789,323 |
Operating lease liability (includes $98,733 and $104,006 with related parties) | 99,188 | 104,534 |
Finance lease liability (includes $29,241 and $0 with related parties) | 54,873 | 23,132 |
Total liabilities | 7,594,590 | 9,119,196 |
Equity: | ||
Preferred stock, $0.0001 par value - 100,000,000 shares authorized, none issued and outstanding as of March 31, 2021 | 0 | |
Additional paid-in capital | 0 | 24,839 |
Retained earnings | 113,078 | 2,349,441 |
Non-controlling interest | 2,664,798 | |
Total equity | 2,778,036 | 2,374,280 |
Total liabilities and equity | 10,372,626 | $ 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 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Related party operating lease right-of-use asset | $ 87,440 | $ 92,571 |
Related party finance lease right-of-use asset | 29,192 | 0 |
Related party operating lease liabilities | 98,733 | 104,006 |
Related party finance lease liability | $ 29,241 | $ 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 | |
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 | 103,104,205 | |
Common stock, shares, outstanding | 103,104,205 | |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Loan production income | $ 1,074,665 | $ 404,214 |
Loan servicing income | 123,789 | 50,097 |
Change in fair value of mortgage servicing rights (see Note 5) | (59,259) | 0 |
Gain (loss) on sale of mortgage servicing rights | 4,763 | (50,222) |
Interest income | 45,912 | 51,367 |
Total revenue, net | 1,189,870 | 455,456 |
Expenses | ||
Salaries, commissions and benefits | 213,061 | 121,784 |
Direct loan production costs | 13,162 | 12,554 |
Marketing, travel, and entertainment | 10,495 | 7,434 |
Depreciation and amortization | 7,289 | 2,645 |
Servicing costs | 20,508 | 13,322 |
Amortization, impairment and pay-offs of mortgage servicing rights (see Note 5) | 0 | 218,754 |
General and administrative | 16,778 | 15,576 |
Interest expense | 52,990 | 43,038 |
Other (income)/expense | (17,304) | 0 |
Total expenses | 316,979 | 435,107 |
Earnings before income taxes | 872,891 | 20,349 |
Provision for income taxes | 12,886 | 0 |
Net income | 860,005 | $ 20,349 |
Net income attributable to non-controlling interests | 812,020 | |
Net income attributable to UWM Holdings Corporation | $ 47,985 | |
Earnings per share of Class A common stock (see Note 17): | ||
Basic (in usd per share) | $ 0.47 | |
Diluted (in usd per share) | $ 0.33 | |
Weighted average shares outstanding: | ||
Basic (in shares) | 103,104,205 | |
Diluted (in shares) | 1,605,173,992 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Class A | Common Class D | Member's Equity | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Common StockCommon Class A | Common StockCommon Class D | Non-controlling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 661,323 | $ 0 | $ 24,839 | $ 636,484 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 20,349 | 0 | 0 | 20,349 | |||||||
Member distributions | (177) | 0 | 0 | (177) | |||||||
Balance at end of period at Mar. 31, 2020 | 681,495 | $ 0 | 24,839 | 656,656 | |||||||
Balance at beginning of period at Dec. 31, 2020 | 2,374,280 | $ 3,440 | 24,839 | 2,349,441 | $ 3,440 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 860,005 | ||||||||||
Balance at beginning of period at Dec. 31, 2020 | 2,374,280 | ||||||||||
Balance at end of period at Mar. 31, 2021 | 2,778,036 | 0 | 113,078 | $ 10 | $ 150 | $ 2,664,798 | |||||
Balance at end of period (in shares) at Mar. 31, 2021 | 103,104,205 | 1,502,069,787 | 103,104,205,000 | 1,502,069,787,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 676,249 | 47,985 | 628,264 | ||||||||
Balance at beginning of period (in shares) at Jan. 21, 2021 | 103,104,205 | 1,502,069,787 | 103,104,205,000 | 1,502,069,787,000 | |||||||
Balance at beginning of period at Jan. 21, 2021 | 0 | (24,839) | (2,164,975) | $ 10 | $ 150 | 2,189,654 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Opening net assets of Gores Holdings IV, Inc. acquired | (75,381) | (75,381) | |||||||||
Dividend declared February 3, 2021 and payable April 6, 2021 | (160,517) | (10,310) | (150,207) | ||||||||
Member distributions to SFS Corp. post business combination transaction | (2,913) | (2,913) | |||||||||
Balance at end of period at Mar. 31, 2021 | $ 2,778,036 | $ 0 | $ 113,078 | $ 10 | $ 150 | $ 2,664,798 | |||||
Balance at end of period (in shares) at Mar. 31, 2021 | 103,104,205 | 1,502,069,787 | 103,104,205,000 | 1,502,069,787,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 860,005 | $ 20,349 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
(Gain)/loss on sale of mortgage servicing rights | (4,763) | 50,222 |
Reserve for representations and warranties | 9,818 | 7,390 |
Capitalization of mortgage servicing rights | (599,389) | (463,831) |
Amortization and pay-offs of mortgage servicing rights | 0 | 76,376 |
Impairment on mortgage servicing rights, net | 0 | 142,377 |
Change in fair value of mortgage servicing rights (see Note 5) | 59,259 | 0 |
Depreciation and amortization of premises and equipment | 4,447 | 2,645 |
Senior notes issuance cost amortization | 549 | 0 |
Amortization of finance lease right-of-use assets | 2,985 | 689 |
(Decrease)/increase in fair value of warrants liability | (17,304) | 0 |
(Increase) decrease in: | ||
Mortgage loans at fair value | 2,413,244 | (126,594) |
Accounts receivable, net | (303,876) | (648,736) |
Derivative assets | (52,096) | (286,518) |
Other assets | (394) | (6,051) |
Increase (decrease) in: | ||
Accounts payable and accrued expenses | 275,290 | 296,247 |
Derivative liabilities | (10,758) | 299,346 |
Net cash provided by (used in) operating activities | 2,637,017 | (636,089) |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Purchases of premises and equipment | (9,815) | (13,790) |
Proceeds from sale of mortgage servicing rights | 2,582 | 246,246 |
Net cash (used in) provided by investing activities | (7,233) | 232,456 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net borrowings under warehouse lines of credit | (2,117,657) | 233,096 |
Repayments of finance lease liabilities | (2,857) | (640) |
Proceeds from business combination transaction | 895,134 | 0 |
Costs incurred related to business combination transaction | (11,260) | 0 |
Borrowings under equipment notes payable | 453 | 0 |
Repayments under equipment notes payable | (1,557) | (1,443) |
Borrowings under operating lines of credit | 79,700 | 366,895 |
Repayments under operating lines of credit | 0 | (271,174) |
Member distributions | (1,102,914) | (177) |
Net cash (used in) provided by financing activities | (2,260,958) | 326,557 |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 368,826 | (77,076) |
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 1,223,837 | 133,283 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 1,592,663 | 56,207 |
SUPPLEMENTAL INFORMATION | ||
Cash paid for interest | $ 36,077 | $ 41,762 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Summary of Significant Accounting Policies | 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 direct endorsement mortgagee with the United States Department of Housing and Urban Development (or âHUDâ). In addition, the Company is an approved issuer with the Government National Mortgage Association (or âGinnie Maeâ), as well as an approved seller and servicer with the Federal National Mortgage Association (or âFannie Maeâ) and Federal Home Loan Mortgage Corporation (or âFreddie Macâ) 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 (âSFS Corp.â), United Wholesale Mortgage, LLC, a Michigan limited liability company (âUWMâ), and UWM Holdings, LLC, a newly formed Delaware limited liability company (âHoldings LLCâ and, together with SFS Corp. and UWM, the âUWM Entities.â). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination transaction with the UWM Entities, SFS Corp. was the sole member of UWM, which had one unit authorized, issued and outstanding. On January 21, 2021, 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 6% of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximate 94% of the units (Class B Common Units) in Holdings LLC and SFS Corp. retained approximately 94% 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 12 - Non-Controlling Interests ). Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an âUp-Câ structure in which UWM (the operating subsidiary) is held directly by Holdings LLC and the Companyâs only direct asset consists of Class A Common Units in Holdings LLC. The Company's current capital structure authorizes Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock. Immediately following the business combination transaction, there were 103,104,205 shares of Class A common stock outstanding, and 1,502,069,787 shares of non-economic Class D common stock outstanding (all of which were held by SFS Corp.), and no shares of Class B or Class C common stock outstanding. Each Holdings LLC Class B Common Unit held by SFS Corp. may be exchanged, along with Class D common stock, for either, at the option of the Company, (a) cash or (b) one share of the Companyâs Class B common stock (See Note 12 - Non-controlling Interests) . Each share of Class B Stock is convertible into one share of Class A Stock upon the transfer or assignment of such share from SFS Corp. to a non-affiliated third-party. Pursuant to the Business Combination Agreement, SFS Corp. is entitled to receive an aggregate of up to 90,761,687 earn-out shares in the form of Class B Common Units in Holdings LLC and Class D common shares upon attainment of certain price targets. There are four different triggering events that affect the number of earn-out shares that will be issued based upon the per share price of Class A common stock ranging from $13.00 to $19.00 per share. The Company accounts for the potential earn-out shares as a component of stockholdersâ equity in accordance with the applicable guidance in U.S. GAAP. See Note 17 - Earnings Per Share. 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 shareholders' 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 March 31, 2021, the fair value of the Public and Private Warrants decreased to $28.3 million, resulting in other income of $17.3 million for the three-month period ended March 31, 2021. The Companyâs 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 (âSECâ) 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 elected to adopt 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 is more meaningful for users of the financial statements as it 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 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 interest rate. 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 managementâs best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the U.S. 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 ordinary income. At the end of each interim period, we estimate the effective tax rate expected to be applicable for the full fiscal year. Tax-effects of significant, unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. 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 or franchise 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. Related Party Transactions The Company enters into various transactions with related parties. See Note 15 â Related Party Transactions for additional information. Public and Private Warrants As part of Gores Holdings IV, Inc.'s initial public offering 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-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the âPublic Warrantsâ). Simultaneously with the closing of the IPO, Gores Holdings IV, Inc. completed the private sale of 5.25 million warrants to Gores Holdings IV, Inc.'s sponsor at a purchase price of $2.00 per warrant (the âPrivate Warrantsâ). Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Subsequent to the business combination transaction, the Company had 10,624,987 Public Warrants and 5,250,000 Private Warrants outstanding. 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 holderâs option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. 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 stockholdersâ 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 March 31, 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 March 31, 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 on the consolidated balance sheets. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs. At March 31, 2021 and December 31, 2020, the Company had recorded the Ginnie Mae pool loans as part of "mortgage loans at fair value" totaling $452.3 million and $451.1 million, respectively, with related purchase liabilities equal to the gross amount of the loan recorded in "accounts payable and accrued expenses." At March 31, 2021 and December 31, 2020, the fair values of the Ginnie Mae pool loans were $448.7 million and $448.5 million, reflecting fair value adjustments of $3.5 million and $2.6 million, respectively. Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (âFASBâ) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope , which was issued in January 2021. This guidance provides practical expedients to address existing guidance on contract modifications due to the expected market transition from the London Inter-bank Offered Rate (âLIBORâ) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The ASU was effective upon issuance on a prospective basis beginning January 1, 2020 and the Company may elect certain practical expedients as reference rate activities occur. The Company will evaluate its debt and other applicable contracts that are modified in the future to ensure they are eligible for modification relief and apply the practical expedients as needed. The Company does not anticipate this will have a material impact on our condensed consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements , which is intended to clarify or correct the unintended application of the Codification of accounting guidance for a wide variety of topics. The Company adopted this ASU on January 1, 2021, with no material effect on the Company's condensed consolidated financial statements and related disclosures. |
Mortgage Loans at Fair Value
Mortgage Loans at Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Mortgage Loans at Fair Value | MORTGAGE LOANS AT FAIR VALUE The table below includes the estimated fair value and unpaid principal balance (âUPBâ) 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 Companyâs 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 âLoan production incomeâ line item of the consolidated statement of operations. (In thousands) March 31, December 31, Mortgage loans, unpaid principal balance $ 5,446,652 $ 7,620,014 Premiums paid on mortgage loans 56,235 101,949 Fair value adjustment 384 194,552 Mortgage loans at fair value $ 5,503,271 $ 7,916,515 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 âpullthroughâ). 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 90% and 92%, as of March 31, 2021 and December 31, 2020, respectively. The Company primarily uses forward mortgage backed security contracts, which are known as forward loan sale commitments ("FLSCs"), to economically hedge the IRLCs. The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands): March 31, 2021 December 31, 2020 Fair value Fair value Derivative Derivative Notional Derivative Derivative Notional IRLCs $ 11,905 $ 48,878 $ 18,294,346 (a) $ 60,248 $ 670 $ 10,594,329 (a) FLSCs 101,263 6,601 21,466,344 824 65,567 16,602,739 Total $ 113,168 $ 55,479 $ 61,072 $ 66,237 (a) Adjusted for pullthrough rates of 90% and 92%, respectively. |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Accounts Receivable, Net | ACCOUNTS RECEIVABLE, NET The following summarizes accounts receivable, net (in thousands): March 31, December 31, Pair-offs receivable $ 165,853 $ 438 Warehouse bank receivable 151,536 3,642 Servicing fees 72,598 55,838 Investor receivables 69,061 100,478 Servicing advances 67,742 60,053 Due from title companies 21,026 33,663 Other receivables 2,242 28 Allowance for doubtful accounts (677) (540) Total Accounts Receivable, Net $ 549,381 $ 253,600 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Mortgage Servicing Rights | MORTGAGE SERVICING RIGHTS Mortgage servicing rights are recognized as assets on the condensed consolidated balance sheets when loans are sold and the associated servicing rights are retained. The Company maintains three classes of MSRs and has elected the fair value option as of January 1, 2021 for all classes. The Company determined its classes of MSRs based on how the Company manages risk. As of March 31, 2021, 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 basis, whereby credit losses are generally the responsibility of Fannie Mae and Freddie Mac, and not the Company. Loans serviced for Ginnie Mae are insured by the FHA, guaranteed by the VA, or insured by other applicable government programs. While the above guarantees and insurance are the responsibility of those parties, the Company is still subject to potential losses related to its servicing of these loans. Those estimated losses are incorporated into the valuation of MSRs. The following table summarizes changes in the MSR assets for the three months ended March 31, 2021: For the three months ended March 31, 2021 Balance, at December 31, 2020 under amortization method $ 1,756,864 Cumulative effect of adopting fair value method 3,440 Fair value, at January 1, 2021 1,760,304 Capitalization of mortgage servicing rights 599,389 Changes in fair value: Due to changes in valuation inputs or assumptions 197,802 Due to collection/ realization of cash flows/ other (257,061) Total changes in fair value (59,259) Fair value, end of period $ 2,300,434 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 months ended March 31, 2020 under the amortization method: For the three months ended March 31, 2020 Balance, beginning of period $ 731,353 Capitalization of mortgage servicing rights 463,831 Amortization (39,210) Loans paid in full (37,166) Sales (255,229) Impairment (142,377) Balance, end of period $ 721,202 The following table summarizes the loan servicing income recognized during the three months ended March 31, 2021 and 2020, respectively (in thousands): Three months ended March 31, 2021 2020 Contractual servicing fees $ 122,306 $ 49,120 Late, ancillary and other fees 1,483 977 Loan servicing income $ 123,789 $ 50,097 The key unobservable inputs used in determining the fair value of the Companyâs MSRs were as follows at March 31, 2021 and December 31, 2020, respectively: March 31, December 31, Discount rates 9.0 % â 14.5 % 9.0 % â 14.5 % Annual prepayment speeds 8.3 % â 40.5 % 8.8 % â 42.2 % Cost of servicing $75 â $121 $75 â $126 The hypothetical effect of an adverse change in these key assumptions would result in a decrease in fair values as follows at March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, Discount rate: + 10% adverse change â effect on value $ (77,423) $ (56,889) + 20% adverse change â effect on value (149,634) (110,040) Prepayment speeds: + 10% adverse change â effect on value $ (99,119) $ (87,752) + 20% adverse change â effect on value (191,558) (169,230) Cost of servicing: + 10% adverse change â effect on value $ (27,761) $ (21,643) + 20% adverse change â effect on value (55,522) (43,285) These sensitivities are hypothetical and should be used with caution. As the table demonstrates, the Companyâs 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 borrowerâs 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. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | OTHER ASSETS The following summarizes other assets (in thousands): March 31, December 31, Prepaid insurance $ 30,893 $ 35,230 Prepaid IT service and maintenance 22,041 19,827 Commitment fees 739 641 Deposits 475 31 Other 5,245 2,260 Total other assets $ 59,393 $ 57,989 |
Line of Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Line of Credit | LINE OF CREDIT The Company had the following amounts outstanding under a line of credit with a financial institution at March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, $400.0 million line of credit agreement expiring December 31, 2022 $ 400,000 $ 320,300 $ 400,000 $ 320,300 The line of credit was collateralized by $1.3 billion and $1.0 billion of MSRs based on carrying value as of March 31, 2021 and December 31, 2020, respectively. Interest on the the line of credit is at variable rates based on a spread to the one month LIBOR rate. The Company had the following warehouse lines of credit with financial institutions as of March 31, 2021 and December 31, 2020, respectively, (in thousands): Expiration Date March 31, December 31, Warehouse Lines of Credit Master Repurchase Agreement ("MRA") Funding: $150 Million 5/25/2021 $ 99,626 $ 140,237 $400 Million 6/23/2021 126,685 287,073 $2 Billion 7/1/2021 777,694 499,841 $200 Million 7/7/2021 170,241 198,705 $750 Million 9/7/2021 170,995 209,138 $150 Million 9/19/2021 8,897 112,429 $400 Million 9/23/2021 62,647 248,947 $925 Million 10/29/2021 324,691 1,179 $3 Billion 10/29/2021 1,580,588 1,685,138 $250 Million 11/16/2021 62,522 249,006 $250 Million 12/23/2021 100,603 86,928 $500 Million 12/28/2021 192,311 365,577 $1 Billion 1/10/2022 63,264 769,510 $2 Billion 2/23/2022 904,831 1,344,851 $500 Million 3/4/2022 79,268 666,891 Early Funding: $250 Million (ASAP + - see below) No expiration 98,877 75,947 $150 Million (gestation line - see below) No expiration â â All interest rates are variable based on a spread to the one-month LIBOR rate. $ 4,823,740 $ 6,941,397 We are an approved lender for loan early funding facilities with Fannie Mae through its As Soon As Pooled Plus (âASAP+â) program and Freddie Mac through its Early Funding (âEFâ) program. As an approved lender for these early funding programs, we enter into an agreement to deliver closed and funded one-to-four family residential mortgage loans, each secured by related mortgages and deeds of trust, and receive funding in exchange for such mortgage loans in some cases before the lender has grouped them into pools to be securitized by Fannie Mae or Freddie Mac. All such mortgage loans must adhere to a set of eligibility criteria to be acceptable. As of March 31, 2021, the amount outstanding through the ASAP+ program was approximately $98.9 million and no amounts were 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 âgestationâ) 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 that can be terminated by either party upon written notice. As of March 31, 2021, no amount was outstanding under this line. As of March 31, 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, net income, and limitations on additional debt, as defined in the agreements. The Company was in compliance with all debt covenants as of March 31, 2021. |
Warehouse Lines of Credit
Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Warehouse Lines of Credit | LINE OF CREDIT The Company had the following amounts outstanding under a line of credit with a financial institution at March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, $400.0 million line of credit agreement expiring December 31, 2022 $ 400,000 $ 320,300 $ 400,000 $ 320,300 The line of credit was collateralized by $1.3 billion and $1.0 billion of MSRs based on carrying value as of March 31, 2021 and December 31, 2020, respectively. Interest on the the line of credit is at variable rates based on a spread to the one month LIBOR rate. The Company had the following warehouse lines of credit with financial institutions as of March 31, 2021 and December 31, 2020, respectively, (in thousands): Expiration Date March 31, December 31, Warehouse Lines of Credit Master Repurchase Agreement ("MRA") Funding: $150 Million 5/25/2021 $ 99,626 $ 140,237 $400 Million 6/23/2021 126,685 287,073 $2 Billion 7/1/2021 777,694 499,841 $200 Million 7/7/2021 170,241 198,705 $750 Million 9/7/2021 170,995 209,138 $150 Million 9/19/2021 8,897 112,429 $400 Million 9/23/2021 62,647 248,947 $925 Million 10/29/2021 324,691 1,179 $3 Billion 10/29/2021 1,580,588 1,685,138 $250 Million 11/16/2021 62,522 249,006 $250 Million 12/23/2021 100,603 86,928 $500 Million 12/28/2021 192,311 365,577 $1 Billion 1/10/2022 63,264 769,510 $2 Billion 2/23/2022 904,831 1,344,851 $500 Million 3/4/2022 79,268 666,891 Early Funding: $250 Million (ASAP + - see below) No expiration 98,877 75,947 $150 Million (gestation line - see below) No expiration â â All interest rates are variable based on a spread to the one-month LIBOR rate. $ 4,823,740 $ 6,941,397 We are an approved lender for loan early funding facilities with Fannie Mae through its As Soon As Pooled Plus (âASAP+â) program and Freddie Mac through its Early Funding (âEFâ) program. As an approved lender for these early funding programs, we enter into an agreement to deliver closed and funded one-to-four family residential mortgage loans, each secured by related mortgages and deeds of trust, and receive funding in exchange for such mortgage loans in some cases before the lender has grouped them into pools to be securitized by Fannie Mae or Freddie Mac. All such mortgage loans must adhere to a set of eligibility criteria to be acceptable. As of March 31, 2021, the amount outstanding through the ASAP+ program was approximately $98.9 million and no amounts were 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 âgestationâ) 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 that can be terminated by either party upon written notice. As of March 31, 2021, no amount was outstanding under this line. As of March 31, 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, net income, and limitations on additional debt, as defined in the agreements. The Company was in compliance with all debt covenants as of March 31, 2021. |
Senior Notes
Senior Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Senior Notes | SENIOR NOTESOn 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 â2020 Senior Notesâ). 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. As of March 31, 2021 and December 31, 2020, the Senior Notes balance was $789.9 million and $789.3 million, respectively, 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 âmake-wholeâ 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 March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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 exposures in subsequent periods. The reserve is estimated based on the Companyâs assessment of its contingent and non-contingent obligations, including expected losses, expected frequency, the overall potential remaining exposure, as well as an estimate for a market participantâs potential readiness to stand by to perform on such obligations. The Company repurchase d $41.6 mil lion and $5.9 million of loans during the three months ended March 31, 2021 and 2020, respectively, related to the representations and warranties provisions. The activity of the representations and warranties reserve was as follows (in thousands): For the three months ended March 31, 2021 2020 Balance, beginning of period $ 69,542 $ 46,322 Reserve charged to operations 9,818 7,390 Losses realized, net (10,063) (4,497) Balance, end of period $ 69,297 $ 49,215 Commitments to Originate Loans As of March 31, 2021, the Company had agreed to extend credit to potential borrowers for approximately $25.6 billion |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 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. Accordingly, management concluded that Holdings LLC is a limited partnership or similar legal entity. Furthermore, management concluded that the Company is Holdings LLCâs 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 percentage. Further, the Company has no contractual requirement to provide financial support to Holdings. The Company's financial position, performance and cash flows effectively represent those of Holdings LLC and its subsidiaries as of and for the period ended March 31, 2021. |
Non-controlling Interests
Non-controlling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | NON-CONTROLLING INTERESTS The non-controlling interest balance represents the economic interest in Holdings LLC held by SFS Corp. The following table summarizes the ownership of Units in Holdings LLC as of March 31, 2021: Common Units Ownership Percentage UWM Holdings Corporation ownership of Class A Common Units 103,104,205 6.4 % SFS Corp. ownership of Class B Common Units 1,502,069,787 93.6 % Balance at end of period 1,605,173,992 100.0 % The non-controlling interest holders have the right to exchange Common Units, together with a corresponding number of shares of our Class D common stock or Class C common stock (together referred to as âStapled Interestsâ), for, at the Company's option, (i) shares of the Company's Class B common stock or Class A common stock or (ii) cash from a substantially concurrent public offering or private sale (based on the price of the Company's Class A common stock). As such, future exchanges of Stapled Interests by non-controlling interest holders will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in-capital or retained earnings when Holdings LLC has positive or negative net assets, respectively. As of March 31, 2021, SFS Corp. has not exchanged any Stapled Interests. |
Regulatory Net Worth Requiremen
Regulatory Net Worth Requirements | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Banking [Abstract] | |
Regulatory Net Worth Requirements | 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 agencyâs requirements can result in such agency taking various remedial actions up to and including terminating UWMâs ability to sell loans to and service loans on behalf of the respective agency. In accordance with the regulatory requirements of H UD, governing non-supervised, direct endorsement mortgagees, UWM is required to maintain a minimum net worth (as defined by HUD) of $2.5 million. At March 31, 2021, UWM exceeded the regulatory net worth requirement and had a net worth (as defined by HUD) of $2.8 billion. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 Companyâs estimates of market participantsâ assumptions. Fair value measurements are classified in the following manner: Level 1 âValuation is based on quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 âValuation is based on either observable prices for identical assets or liabilities in inactive markets, observable prices for similar assets or liabilities, or other inputs that are derived directly from, or through correlation to, observable market data at the measurement date. Level 3 âValuation is based on the Companyâs or othersâ models using assumptions at the measurement date that a market participant would use. In determining fair value measurements, the Company uses observable inputs whenever possible. The level of a fair value m easurement 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 March 31, 2021 or December 31, 2020. Mortgage loans at fair value : The Company has elected the fair value option for mortgage loans held for sale. Accordingly, the fair values of mortgage loans are based on valuation models that use the market price for similar loans sold in the secondary market. As these prices are derived from market observable inputs, they are categorized as Level 2. IRLCs : The Company's interest rate lock commitments are derivative instruments that are recorded at fair value based on valuation models that use the market price for similar loans sold in the secondary market. The interest rate lock commitments are then subject to an estimated loan funding probability, or âpullthrough rateâ. Given the significant and unobservable nature of the pullthrough rate assumption, IRLCs are classified as Level 3. MSRs : The fair value of MSRs is determined using a valuation model that calculates the present value of estimated net future cash flows. The model includes estimates of prepayment speeds, discount rate, cost to service, contractual servicing fee income, and ancillary income among others. These fair value measurements are classified as Level 3. FLSCs : The Company enters into forward loan sales commitments to sell certain mortgage loans which are recorded at fair value based on valuation models. The Companyâs expectation of the amount of its interest rate lock commitments that will ultimately close is a factor in determining the position. The valuation models utilize the fair value of related mortgage loans determined using observable market data and therefore the commitments are categorized as Level 2. Pubic and Private Warrants : The fair value of Public Warrants is based on the price of trades of these securities in active markets and therefore categorized as Level 1. The fair value of the Private Warrants is based on observable market data and therefore categorized as Level 2. 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): March 31, 2021 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ â $ 5,503,271 $ â $ 5,503,271 IRLCs â â 11,905 11,905 FLSCs â 101,263 â 101,263 Mortgage servicing rights â â 2,300,434 2,300,434 Total assets $ â $ 5,604,534 $ 2,312,339 $ 7,916,873 Liabilities: IRLCs $ â $ â $ 48,878 $ 48,878 FLSCs â 6,601 â 6,601 Public and Private Warrants 18,912 9,345 â 28,257 Total liabilities $ 18,912 $ 15,946 $ 48,878 $ 83,736 December 31, 2020 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ â $ 7,916,515 $ â $ 7,916,515 IRLCs â â 60,248 60,248 FLSCs â 824 â 824 Total assets $ â $ 7,917,339 $ 60,248 $ 7,977,587 Liabilities: IRLCs $ â $ â $ 670 $ 670 FLSCs â 65,567 â 65,567 Total liabilities $ â $ 65,567 $ 670 $ 66,237 The following tables present quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements: Unobservable Input - IRLCs March 31, 2021 December 31, 2020 Pullthrough rate (weighted avg) 90 % 92 % Unobservable Inputs - MSRs March 31, 2021 December 31, 2020 Discount rates 9.0 % â 14.5 % 9.0 % â 14.5 % Annual prepayment speeds 8.3 % â 40.5 % 8.8 % â 42.2 % Cost of servicing $75 â $121 $75 â $126 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 fair value of the 2020 Senior Notes approximated $834.0 million and $841.3 million as of March 31, 2021 and December 31, 2020, respectively . The fair value of the 2020 Senior Notes was estimated using Level 2 inputs, including observable trading information in inactive markets. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS The Company has engaged in the following significant related party transactions in the three months ended March 31, 2021 and 2020: ⢠The Companyâs corporate campus is located in buildings that are owned by entities controlled by the Companyâs 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 Companyâs founder is a partner; ⢠The Company leases two aircraft owned by entities controlled by the Companyâs 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 Companyâs 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. The CEO's interest was disposed of as of March 31, 2021 . ⢠Employee lease agreements (entered into in the first quarter of 2021), pursuant to which the Companyâs team members provide certain administrative services to entities controlled by the Companyâs 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 Companyâs team members. For the three months ended March 31, 2021 and 2020, the Company incurred approximately $4.1 million and $3.4 million, respectively, in operating expenses with various companies related through common ownership. The Company incurred expenses of approximately $3.8 million in rent and other occupancy related expenses, $0.2 million in legal fees, $0.1 million primarily related to direct origination costs and $37 thousand in other general and administrative expenses for the three months ended March 31, 2021. The Company incurred expenses of approximately $3.1 million in rent and other occupancy related expenses, $0.2 million in legal fees, $0.1 million primarily related to direct origination costs and $15 thousand in other general and administrative expenses for the three months ended March 31, 2020. Pursuant to line of credit agreements entered into, primarily in the first quarter of 2020, between the Company, its founder, its CEO, and the CEOâs brother and certain entities controlled by these individuals, the Company borrowed $297.0 million and repaid $197.0 million in the first quarter of 2020. These borrowings and repayments are reflected in the âBorrowings under operating lines of creditâ and âRepayments under operating lines of creditâ line items within the financing section of the condensed consolidated statement of cash flows for the three month period ended March 31, 2020. 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 | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Companyâs 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 interest is not subject to tax. Prior to the completion of the transaction contemplated by the Business Combination Agreement, UWM was owned by SFS Corp. which elected S corporation status for federal income tax purposes. When owned by SFS Corp, UWM was treated as a disregarded entity for federal, and most applicable state and local income tax purposes. The shareholders of SFS Corp, as shareholders of an S corporation, are responsible for the federal and most applicable state and local income tax liabilities. A provision for state income taxes is required for certain jurisdictions that tax S corporations and limited liability companies and for states where the Company is taxed as a C Corporation. Following 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 and certain state and local incomes taxes. Any taxable income or loss generated by Holdings LLC after the Companyâs 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 Companyâs 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 Companyâs annual effective tax rate are subject to variation due to several factors including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company conducts business, and tax law developments. For the three months ended March 31, 2021 the Companyâs estimated effective tax rate was 1.31%. The variations between the Companyâs estimated effective tax rate and the U.S. statutory rate are primarily due to the portion (approximately 94%) of the Companyâs earnings attributable to non-controlling interests, and the fact that the Company's interest in Holdings LLC was acquired as part of the business combination transaction on January 21, 2021. The effective tax rate calculation includes income only from January 21, 2021 to March 31, 2021, which represents the period in which the Company had outstanding Class A common stock. The Company recognizes deferred tax assets to the extent it believes these assets are more-likely-than-not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent results of operations. The Company recognizes uncertain income tax positions when it is not more-likely-than-not a tax position will be sustained upon examination. As of March 31, 2021, the Company has not recognized any uncertain tax positions. The Company accrues interest and penalties related to uncertain tax positions as a component of the income tax provision. No interest or penalties were recognized in income tax expense for the three months ended March 31, 2021. The Company may be subject to potential examination by U.S. federal or state jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amounts in various tax jurisdictions and compliance with U.S. federal or states tax laws. Both 2019 and 2020 remain open under applicable statute of limitations with relevant taxing authorities. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE As of March 31, 2021, the Company had two classes of economic shares authorized - Class A and Class B common stock. The Company applies the two-class method for calculating earnings per share for Class A common stock and Class B common stock. In applying the two-class method, the Company allocates undistributed earnings equally on a per share basis between Class A and Class B common stock. According to the Companyâs certificate of incorporation, the holders of the Class A and Class B common stock are entitled to participate in earnings equally on a per-share basis, as if all shares of common stock were of a single class, and in such dividends as may be declared by the board of directors. 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 12, Non-controlling Interests for a description of the Stapled Interests. Refer to Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - for additional information related to the Company's capital structure. 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 months ended March 31, 2020. The basic and diluted earnings per share period for the three months ended March 31, 2021, represents only the period from January 21, 2021 to March 31, 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 March 31, 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: For the three months ended March 31, 2021 Net income $ 860,005 Net income attributable to non-controlling interests 812,020 Net income attributable to UWMC 47,985 Numerator: Net income attributable to Class A common shareholders $ 47,985 Net income attributable to Class A common shareholders - diluted $ 524,151 Denominator: Weighted average shares of Class A common stock outstanding - basic 103,104,205 Weighted average shares of Class A common stock outstanding - diluted 1,605,173,992 Earnings per share of Class A common stock outstanding - basic $ 0.47 Earnings per share of Class A common stock outstanding - diluted $ 0.33 Immediately following the business combination transaction, there were 103,104,205 shares of Class A common stock outstanding, and 1,502,069,787 shares of non-economic Class D common stock outstanding (all of which were held by SFS Corp.), and no shares of Class B or Class C common stock outstanding. 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 method, and it was determined that the conversion would be dilutive. Under the if-converted method, all of the Company's net income for the period from January 21, 2021 through March 31, 2021 is attributable to Class A common shareholders. The net income under the if-converted method is tax effected using a blended statutory rate. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS The Company's Compensat ion Committee approved the issuance of equity awards, effective April 2, 2021, of 3.2 million restricted stock units to team members pursuant to the UWM Holdings Corporation 2020 Omnibus Incentive Plan which was approved by stockholders on January 20, 2021. 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. Compensation expense will be recognized on a straight-line basis over the vesting term. 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 â2021 Senior Notesâ). The 2021 Senior Notes accrue interest at a rate of 5.5000% 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. The Company used a portion of the proceeds from the issuance of the 2021 Senior Notes to pay off and terminate the $400.0 million line of credit (described in Note 7 - Line of Cre dit ), effective April 22, 2021. On April 23, 2021, UWM and its special purpose subsidiary United Shore Repo Seller 4 LLC entered into a Master Repurchase Agreement with Goldman Sachs Bank USA (the âGoldman MRAâ). The Goldman MRA provides for the purchase by Goldman Sachs Bank USA of an aggregate amount of up to $1.0 billion of participation interests in certain residential mortgage loans and the related servicing rights. United Shore Repo Seller 4 LLCâs obligations under the Goldman MRA are guaranteed by UWM. The Goldman MRA has an initial term of two years which may be extended by the parties. On May 9, 2021, the Company's Board of Directors declared a quarterly dividend of $0.10 per share on the outstanding shares of Class A Common Stock. The dividend is payable on July 6, 2021 to stockholders of record at the close of business on June 10, 2021. On May 9, 2021, the Company's Board of Directors has authorized a share repurchase program of up to $300.0 million in aggregate value of the Companyâs Class A common stock effective May 11, 2021. The share repurchase program authorizes the Company to repurchase shares of the Companyâs Class A common stock from time to time, in the open market or through privately negotiated transactions, at management's discretion based on market and business conditions, applicable legal requirements and other factors. Shares purchased will be retired. The new plan will expire on May 11, 2023 unless otherwise modified or terminated by the Company's Board of Directors at any time in the Company's sole discretion. On May 11, 2021, the Company executed a new lease agreement with entities controlled by its founder and its CEO for land as part of the Company's corporate campus for an initial term of 15 years and total rent of approximately $0.9 million(undiscounted). |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 direct endorsement mortgagee with the United States Department of Housing and Urban Development (or âHUDâ). In addition, the Company is an approved issuer with the Government National Mortgage Association (or âGinnie Maeâ), as well as an approved seller and servicer with the Federal National Mortgage Association (or âFannie Maeâ) and Federal Home Loan Mortgage Corporation (or âFreddie Macâ) 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 (âSFS Corp.â), United Wholesale Mortgage, LLC, a Michigan limited liability company (âUWMâ), and UWM Holdings, LLC, a newly formed Delaware limited liability company (âHoldings LLCâ and, together with SFS Corp. and UWM, the âUWM Entities.â). The business combination with the UWM Entities closed on January 21, 2021. Prior to the closing of the business combination transaction with the UWM Entities, SFS Corp. was the sole member of UWM, which had one unit authorized, issued and outstanding. On January 21, 2021, 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 6% of its units (Class A Common Units) to the Company, (ii) SFS Corp. retained approximate 94% of the units (Class B Common Units) in Holdings LLC and SFS Corp. retained approximately 94% 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 12 - Non-Controlling Interests ). Following the consummation of the transactions contemplated by the Business Combination Agreement, the Company is organized in an âUp-Câ structure in which UWM (the operating subsidiary) is held directly by Holdings LLC and the Companyâs only direct asset consists of Class A Common Units in Holdings LLC. The Company's current capital structure authorizes Class A common stock, Class B common stock, Class C common stock and Class D common stock. The Class A common stock and Class C common stock each provide holders with one vote on all matters submitted to a vote of stockholders, and the Class B common stock and Class D common stock each provide holders with 10 votes on all matters submitted to a vote of stockholders. The holders of Class C common stock and Class D common stock do not have any of the economic rights (including rights to dividends and distributions upon liquidation) provided to holders of Class A common stock and Class B common stock. Immediately following the business combination transaction, there were 103,104,205 shares of Class A common stock outstanding, and 1,502,069,787 shares of non-economic Class D common stock outstanding (all of which were held by SFS Corp.), and no shares of Class B or Class C common stock outstanding. Each Holdings LLC Class B Common Unit held by SFS Corp. may be exchanged, along with Class D common stock, for either, at the option of the Company, (a) cash or (b) one share of the Companyâs Class B common stock (See Note 12 - Non-controlling Interests) . Each share of Class B Stock is convertible into one share of Class A Stock upon the transfer or assignment of such share from SFS Corp. to a non-affiliated third-party. Pursuant to the Business Combination Agreement, SFS Corp. is entitled to receive an aggregate of up to 90,761,687 earn-out shares in the form of Class B Common Units in Holdings LLC and Class D common shares upon attainment of certain price targets. There are four different triggering events that affect the number of earn-out shares that will be issued based upon the per share price of Class A common stock ranging from $13.00 to $19.00 per share. The Company accounts for the potential earn-out shares as a component of stockholdersâ equity in accordance with the applicable guidance in U.S. GAAP. See Note 17 - Earnings Per Share. |
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 shareholders' 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 March 31, 2021, the fair value of the Public and Private Warrants decreased to $28.3 million, resulting in other income of $17.3 million for the three-month period ended March 31, 2021. The Companyâs 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 (âSECâ) 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. |
Consolidation | 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 shareholders' 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 March 31, 2021, the fair value of the Public and Private Warrants decreased to $28.3 million, resulting in other income of $17.3 million for the three-month period ended March 31, 2021. The Companyâs 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 (âSECâ) 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 EstimatesThe 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 | Mortgage Servicing Rights On January 1, 2021, the Company elected to adopt 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 is more meaningful for users of the financial statements as it 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 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 interest rate. 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 managementâs best assessment of estimated current and future taxes to be paid. We are subject to income taxes in the U.S. 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 ordinary income. At the end of each interim period, we estimate the effective tax rate expected to be applicable for the full fiscal year. Tax-effects of significant, unusual or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Tax Receivable Agreement |
Related Party Transactions | Related Party Transactions The Company enters into various transactions with related parties. See Note 15 â Related Party Transactions for additional information. |
Public and Private Warrants | Public and Private Warrants As part of Gores Holdings IV, Inc.'s initial public offering 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-fourth of one warrant, at a price of $10.00 per unit. Each whole warrant entitles the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (the âPublic Warrantsâ). Simultaneously with the closing of the IPO, Gores Holdings IV, Inc. completed the private sale of 5.25 million warrants to Gores Holdings IV, Inc.'s sponsor at a purchase price of $2.00 per warrant (the âPrivate Warrantsâ). Each Private Warrant allows the sponsor to purchase one share of Class A common stock at $11.50 per share. Subsequent to the business combination transaction, the Company had 10,624,987 Public Warrants and 5,250,000 Private Warrants outstanding. 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 holderâs option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. 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 stockholdersâ 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 March 31, 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 March 31, 2021. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (âFASBâ) issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which was subsequently amended by ASU No. 2021-1, Reference Rate Reform (Topic 848): Scope , which was issued in January 2021. This guidance provides practical expedients to address existing guidance on contract modifications due to the expected market transition from the London Inter-bank Offered Rate (âLIBORâ) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate. The ASU was effective upon issuance on a prospective basis beginning January 1, 2020 and the Company may elect certain practical expedients as reference rate activities occur. The Company will evaluate its debt and other applicable contracts that are modified in the future to ensure they are eligible for modification relief and apply the practical expedients as needed. The Company does not anticipate this will have a material impact on our condensed consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements , which is intended to clarify or correct the unintended application of the Codification of accounting guidance for a wide variety of topics. The Company adopted this ASU on January 1, 2021, with no material effect on the Company's condensed consolidated financial statements and related disclosures. |
Mortgage Loans at Fair Value (T
Mortgage Loans at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Summary of Reconciliation of Changes in Mortgage Loans at Fair Value | The table below includes the estimated fair value and unpaid principal balance (âUPBâ) 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 Companyâs 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 âLoan production incomeâ line item of the consolidated statement of operations. (In thousands) March 31, December 31, Mortgage loans, unpaid principal balance $ 5,446,652 $ 7,620,014 Premiums paid on mortgage loans 56,235 101,949 Fair value adjustment 384 194,552 Mortgage loans at fair value $ 5,503,271 $ 7,916,515 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts and fair values of derivative financial instruments not designated as hedging instruments were as follows (in thousands): March 31, 2021 December 31, 2020 Fair value Fair value Derivative Derivative Notional Derivative Derivative Notional IRLCs $ 11,905 $ 48,878 $ 18,294,346 (a) $ 60,248 $ 670 $ 10,594,329 (a) FLSCs 101,263 6,601 21,466,344 824 65,567 16,602,739 Total $ 113,168 $ 55,479 $ 61,072 $ 66,237 (a) Adjusted for pullthrough rates of 90% and 92%, respectively. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | The following summarizes accounts receivable, net (in thousands): March 31, December 31, Pair-offs receivable $ 165,853 $ 438 Warehouse bank receivable 151,536 3,642 Servicing fees 72,598 55,838 Investor receivables 69,061 100,478 Servicing advances 67,742 60,053 Due from title companies 21,026 33,663 Other receivables 2,242 28 Allowance for doubtful accounts (677) (540) Total Accounts Receivable, Net $ 549,381 $ 253,600 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing [Abstract] | |
Summary of Mortgage Servicing Rights | The following table summarizes changes in the MSR assets for the three months ended March 31, 2021: For the three months ended March 31, 2021 Balance, at December 31, 2020 under amortization method $ 1,756,864 Cumulative effect of adopting fair value method 3,440 Fair value, at January 1, 2021 1,760,304 Capitalization of mortgage servicing rights 599,389 Changes in fair value: Due to changes in valuation inputs or assumptions 197,802 Due to collection/ realization of cash flows/ other (257,061) Total changes in fair value (59,259) Fair value, end of period $ 2,300,434 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 months ended March 31, 2020 under the amortization method: For the three months ended March 31, 2020 Balance, beginning of period $ 731,353 Capitalization of mortgage servicing rights 463,831 Amortization (39,210) Loans paid in full (37,166) Sales (255,229) Impairment (142,377) Balance, end of period $ 721,202 |
Summary of Loan Servicing Income | The following table summarizes the loan servicing income recognized during the three months ended March 31, 2021 and 2020, respectively (in thousands): Three months ended March 31, 2021 2020 Contractual servicing fees $ 122,306 $ 49,120 Late, ancillary and other fees 1,483 977 Loan servicing income $ 123,789 $ 50,097 |
Summary of Key Assumptions Used in Determining the Fair Value | The key unobservable inputs used in determining the fair value of the Companyâs MSRs were as follows at March 31, 2021 and December 31, 2020, respectively: March 31, December 31, Discount rates 9.0 % â 14.5 % 9.0 % â 14.5 % Annual prepayment speeds 8.3 % â 40.5 % 8.8 % â 42.2 % Cost of servicing $75 â $121 $75 â $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 March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, Discount rate: + 10% adverse change â effect on value $ (77,423) $ (56,889) + 20% adverse change â effect on value (149,634) (110,040) Prepayment speeds: + 10% adverse change â effect on value $ (99,119) $ (87,752) + 20% adverse change â effect on value (191,558) (169,230) Cost of servicing: + 10% adverse change â effect on value $ (27,761) $ (21,643) + 20% adverse change â effect on value (55,522) (43,285) |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of Other Assets | The following summarizes other assets (in thousands): March 31, December 31, Prepaid insurance $ 30,893 $ 35,230 Prepaid IT service and maintenance 22,041 19,827 Commitment fees 739 641 Deposits 475 31 Other 5,245 2,260 Total other assets $ 59,393 $ 57,989 |
Line of Credit (Tables)
Line of Credit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Lines of Credit | The Company had the following amounts outstanding under a line of credit with a financial institution at March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, $400.0 million line of credit agreement expiring December 31, 2022 $ 400,000 $ 320,300 $ 400,000 $ 320,300 The Company had the following warehouse lines of credit with financial institutions as of March 31, 2021 and December 31, 2020, respectively, (in thousands): Expiration Date March 31, December 31, Warehouse Lines of Credit Master Repurchase Agreement ("MRA") Funding: $150 Million 5/25/2021 $ 99,626 $ 140,237 $400 Million 6/23/2021 126,685 287,073 $2 Billion 7/1/2021 777,694 499,841 $200 Million 7/7/2021 170,241 198,705 $750 Million 9/7/2021 170,995 209,138 $150 Million 9/19/2021 8,897 112,429 $400 Million 9/23/2021 62,647 248,947 $925 Million 10/29/2021 324,691 1,179 $3 Billion 10/29/2021 1,580,588 1,685,138 $250 Million 11/16/2021 62,522 249,006 $250 Million 12/23/2021 100,603 86,928 $500 Million 12/28/2021 192,311 365,577 $1 Billion 1/10/2022 63,264 769,510 $2 Billion 2/23/2022 904,831 1,344,851 $500 Million 3/4/2022 79,268 666,891 Early Funding: $250 Million (ASAP + - see below) No expiration 98,877 75,947 $150 Million (gestation line - see below) No expiration â â All interest rates are variable based on a spread to the one-month LIBOR rate. $ 4,823,740 $ 6,941,397 |
Warehouse Lines of Credit (Tabl
Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Lines of Credit | The Company had the following amounts outstanding under a line of credit with a financial institution at March 31, 2021 and December 31, 2020, respectively, (in thousands): March 31, December 31, $400.0 million line of credit agreement expiring December 31, 2022 $ 400,000 $ 320,300 $ 400,000 $ 320,300 The Company had the following warehouse lines of credit with financial institutions as of March 31, 2021 and December 31, 2020, respectively, (in thousands): Expiration Date March 31, December 31, Warehouse Lines of Credit Master Repurchase Agreement ("MRA") Funding: $150 Million 5/25/2021 $ 99,626 $ 140,237 $400 Million 6/23/2021 126,685 287,073 $2 Billion 7/1/2021 777,694 499,841 $200 Million 7/7/2021 170,241 198,705 $750 Million 9/7/2021 170,995 209,138 $150 Million 9/19/2021 8,897 112,429 $400 Million 9/23/2021 62,647 248,947 $925 Million 10/29/2021 324,691 1,179 $3 Billion 10/29/2021 1,580,588 1,685,138 $250 Million 11/16/2021 62,522 249,006 $250 Million 12/23/2021 100,603 86,928 $500 Million 12/28/2021 192,311 365,577 $1 Billion 1/10/2022 63,264 769,510 $2 Billion 2/23/2022 904,831 1,344,851 $500 Million 3/4/2022 79,268 666,891 Early Funding: $250 Million (ASAP + - see below) No expiration 98,877 75,947 $150 Million (gestation line - see below) No expiration â â All interest rates are variable based on a spread to the one-month LIBOR rate. $ 4,823,740 $ 6,941,397 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2021 2020 Balance, beginning of period $ 69,542 $ 46,322 Reserve charged to operations 9,818 7,390 Losses realized, net (10,063) (4,497) Balance, end of period $ 69,297 $ 49,215 |
Non-controlling Interests (Tabl
Non-controlling Interests (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Summary of Ownership of Units | The following table summarizes the ownership of Units in Holdings LLC as of March 31, 2021: Common Units Ownership Percentage UWM Holdings Corporation ownership of Class A Common Units 103,104,205 6.4 % SFS Corp. ownership of Class B Common Units 1,502,069,787 93.6 % Balance at end of period 1,605,173,992 100.0 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
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): March 31, 2021 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ â $ 5,503,271 $ â $ 5,503,271 IRLCs â â 11,905 11,905 FLSCs â 101,263 â 101,263 Mortgage servicing rights â â 2,300,434 2,300,434 Total assets $ â $ 5,604,534 $ 2,312,339 $ 7,916,873 Liabilities: IRLCs $ â $ â $ 48,878 $ 48,878 FLSCs â 6,601 â 6,601 Public and Private Warrants 18,912 9,345 â 28,257 Total liabilities $ 18,912 $ 15,946 $ 48,878 $ 83,736 December 31, 2020 Description Level 1 Level 2 Level 3 Total Assets: Mortgage loans at fair value $ â $ 7,916,515 $ â $ 7,916,515 IRLCs â â 60,248 60,248 FLSCs â 824 â 824 Total assets $ â $ 7,917,339 $ 60,248 $ 7,977,587 Liabilities: IRLCs $ â $ â $ 670 $ 670 FLSCs â 65,567 â 65,567 Total liabilities $ â $ 65,567 $ 670 $ 66,237 |
Quantitative Information on Recurring Level 3 Fair Value Financial Instruments | The following tables present quantitative information about the inputs used in recurring Level 3 fair value financial instruments and the fair value measurements: Unobservable Input - IRLCs March 31, 2021 December 31, 2020 Pullthrough rate (weighted avg) 90 % 92 % Unobservable Inputs - MSRs March 31, 2021 December 31, 2020 Discount rates 9.0 % â 14.5 % 9.0 % â 14.5 % Annual prepayment speeds 8.3 % â 40.5 % 8.8 % â 42.2 % Cost of servicing $75 â $121 $75 â $126 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 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: For the three months ended March 31, 2021 Net income $ 860,005 Net income attributable to non-controlling interests 812,020 Net income attributable to UWMC 47,985 Numerator: Net income attributable to Class A common shareholders $ 47,985 Net income attributable to Class A common shareholders - diluted $ 524,151 Denominator: Weighted average shares of Class A common stock outstanding - basic 103,104,205 Weighted average shares of Class A common stock outstanding - diluted 1,605,173,992 Earnings per share of Class A common stock outstanding - basic $ 0.47 Earnings per share of Class A common stock outstanding - diluted $ 0.33 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Organization (Details) | Jan. 21, 2021$ / sharesshares | Mar. 31, 2021voteshares | Jan. 20, 2021shares |
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 | 103,104,205 | |
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 | 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 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Basis of Presentation and Consolidation (Details) - USD ($) $ in Thousands | Jan. 21, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Decrease in fair value of warrants | $ 28,300 | $ 17,304 | $ 0 | |
Other income | $ 17,300 | |||
Gore Holdings IV, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Proceeds from business combination | $ 895,100 | |||
Costs related to business combination | 16,000 | |||
Gores Holdings IV, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Liability assumed on warrants | $ 45,600 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity | $ 2,374,280 | $ 681,495 | $ 661,323 | |
Mortgage servicing rights - fair value as of March 31, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | $ 2,300,434 | 1,756,864 | ||
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Equity | 2,349,441 | $ 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 | |||
Mortgage servicing rights - fair value as of March 31, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | $ 3,400 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Tax Receivable Agreement (Details) $ in Millions | Mar. 31, 2021USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Tax receivable agreement liability | $ 1.9 |
Organization, Basis of Presen_7
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Public and Private Warrants (Details) | 1 Months Ended | ||
Jan. 31, 2020$ / shares$ / warrant$ / unitshares | Mar. 31, 2021shares | Jan. 21, 2021shares | |
Common Class A | |||
Class of Warrant or Right [Line Items] | |||
Number of common shares issued | 103,104,205 | ||
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 | ||
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. | Public Warrants | Common Class A | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called by each warrant | 1 | ||
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. | 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 Presen_8
Organization, Basis of Presentation and Summary of Significant Accounting Policies - Loans Eligible for Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans at fair value | $ 5,503,271 | $ 7,916,515 |
Gnnie Mae | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Mortgage loans at fair value | 452,300 | 451,100 |
Loans, fair value | 448,700 | 448,500 |
Loans, fair value adjustment | $ 3,500 | $ 2,600 |
Mortgage Loans at Fair Value (D
Mortgage Loans at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Mortgage loans, unpaid principal balance | $ 5,446,652 | $ 7,620,014 |
Premiums paid on mortgage loans | 56,235 | 101,949 |
Fair value adjustment | 384 | 194,552 |
Mortgage loans at fair value | $ 5,503,271 | $ 7,916,515 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative blended weighted average pullthrough rate | 90.00% | 92.00% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Fair value, Derivative assets | $ 113,168 | $ 61,072 |
Fair value, Derivative liabilities | $ 55,479 | $ 66,237 |
Derivative blended weighted average pullthrough rate | 90.00% | 92.00% |
IRLCs | ||
Derivative [Line Items] | ||
Fair value, Derivative assets | $ 11,905 | $ 60,248 |
Fair value, Derivative liabilities | 48,878 | 670 |
Notional Amount | 18,294,346 | 10,594,329 |
FLSCs | ||
Derivative [Line Items] | ||
Fair value, Derivative assets | 101,263 | 824 |
Fair value, Derivative liabilities | 6,601 | 65,567 |
Notional Amount | $ 21,466,344 | $ 16,602,739 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Pair-offs receivable | $ 165,853 | $ 438 |
Warehouse bank receivable | 151,536 | 3,642 |
Servicing fees | 72,598 | 55,838 |
Investor receivables | 69,061 | 100,478 |
Servicing advances | 67,742 | 60,053 |
Due from title companies | 21,026 | 33,663 |
Other receivables | 2,242 | 28 |
Allowance for doubtful accounts | (677) | (540) |
Total Accounts Receivable, Net | $ 549,381 | $ 253,600 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Mortgage Servicing Rights Activity (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, at December 31, 2020 under amortization method | $ 1,756,864 | $ 721,202 |
Fair value, at January 1, 2021 | 1,760,304 | |
Capitalization of mortgage servicing rights | 599,389 | |
Changes in fair value: Due to changes in valuation model inputs or assumptions | 197,802 | |
Changes in fair value: Due to collection/realization of cash flows/other | (257,061) | |
Total changes in fair value | (59,259) | |
Fair value, end of period | 2,300,434 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of period | 1,756,864 | 731,353 |
Capitalization of mortgage servicing rights | 463,831 | |
Amortization | (39,210) | |
Loans paid in full | (37,166) | |
Sales | (255,229) | |
Impairment | (142,377) | |
Balance, end of period | $ 721,202 | |
Cumulative Effect, Period of Adoption, Adjustment | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance, at December 31, 2020 under amortization method | 3,440 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of period | $ 3,440 |
Mortgage Servicing Rights - S_2
Mortgage Servicing Rights - Summary of Loan Servicing Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Transfers and Servicing [Abstract] | ||
Contractual servicing fees | $ 122,306 | $ 49,120 |
Late, ancillary and other fees | 1,483 | 977 |
Loan servicing income | $ 123,789 | $ 50,097 |
Mortgage Servicing Rights - S_3
Mortgage Servicing Rights - Summary of Key Unobservable Inputs Used in Determining the Fair Value (Details) - Mortgage Servicing Rights [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Minimum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rates | 9.00% | 9.00% |
Annual prepayment speeds | 8.30% | 8.80% |
Cost of servicing | $ 75 | $ 75 |
Maximum | ||
Servicing Assets at Fair Value [Line Items] | ||
Discount rates | 14.50% | 14.50% |
Annual prepayment speeds | 40.50% | 42.20% |
Cost of servicing | $ 121 | $ 126 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Analysis of Change in Fair Value (Details) - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
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 â effect on value, discount rate | $ (77,423) | $ (56,889) |
+ 20% adverse change â effect on value, discount rate | (149,634) | (110,040) |
+ 10% adverse change â effect on value, prepayment speed | (99,119) | (87,752) |
+ 20% adverse change â effect on value, prepayment speed | (191,558) | (169,230) |
+ 10% adverse change â effect on value, cost of servicing | (27,761) | (21,643) |
+ 20% adverse change â effect on value, cost of servicing | $ (55,522) | $ (43,285) |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 30,893 | $ 35,230 |
Prepaid IT service and maintenance | 22,041 | 19,827 |
Commitment fees | 739 | 641 |
Deposits | 475 | 31 |
Other | 5,245 | 2,260 |
Total other assets | $ 59,393 | $ 57,989 |
Line of Credit - Line of Credit
Line of Credit - Line of Credit with Financial Institutions (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Committed line amount | $ 400,000 | $ 320,300 |
$400 Million Line of Credit Agreement Expiring December 31, 2022 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 400,000 | |
Committed line amount | $ 400,000 | $ 320,300 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Mortgage servicing rights - fair value as of March 31, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | $ 2,300,434 | $ 1,756,864 |
Asset Pledged as Collateral | ||
Line of Credit Facility [Line Items] | ||
Mortgage servicing rights - fair value as of March 31, 2021; amortized cost as of December 31, 2020 (see Note 1 and Note 5) | $ 1,300,000 | $ 1,000,000 |
Warehouse Lines of Credit - Sum
Warehouse Lines of Credit - Summary of Line of Credit (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding amount | $ 400,000,000 | $ 320,300,000 |
Warehouse Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding amount | 4,823,740,000 | 6,941,397,000 |
Warehouse Line of Credit | Line of Credit Due May 25, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 150,000,000 | |
Outstanding amount | 99,626,000 | 140,237,000 |
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 | 126,685,000 | 287,073,000 |
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 | 777,694,000 | 499,841,000 |
Warehouse Line of Credit | Line of Credit Due July 7, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 200,000,000 | |
Outstanding amount | 170,241,000 | 198,705,000 |
Warehouse Line of Credit | Line of Credit Due September 7, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 750,000,000 | |
Outstanding amount | 170,995,000 | 209,138,000 |
Warehouse Line of Credit | Line of Credit Due September 19, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 150,000,000 | |
Outstanding amount | 8,897,000 | 112,429,000 |
Warehouse Line of Credit | Line of Credit Due September 23, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 400,000,000 | |
Outstanding amount | 62,647,000 | 248,947,000 |
Warehouse Line of Credit | Line of Credit Due October 29, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 925,000,000 | |
Outstanding amount | 324,691,000 | 1,179,000 |
Warehouse Line of Credit | Line of Credit Due October 29, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 3,000,000,000 | |
Outstanding amount | 1,580,588,000 | 1,685,138,000 |
Warehouse Line of Credit | Line of Credit Due November 16, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 250,000,000 | |
Outstanding amount | 62,522,000 | 249,006,000 |
Warehouse Line of Credit | Line of Credit Due December 23, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 250,000,000 | |
Outstanding amount | 100,603,000 | 86,928,000 |
Warehouse Line of Credit | Line of Credit Due December 28, 2021 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Outstanding amount | 192,311,000 | 365,577,000 |
Warehouse Line of Credit | Line of Credit Due January 10, 2022 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,000,000,000 | |
Outstanding amount | 63,264,000 | 769,510,000 |
Warehouse Line of Credit | Line of Credit Due February 23, 2022 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,000,000,000 | |
Outstanding amount | 904,831,000 | 1,344,851,000 |
Warehouse Line of Credit | Line of Credit Due March 4, 2022 | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 500,000,000 | |
Outstanding amount | 79,268,000 | 666,891,000 |
Warehouse Line of Credit | Line of Credit, ASAP program | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 250,000,000 | |
Outstanding amount | 98,877,000 | 75,947,000 |
Warehouse Line of Credit | Line of Credit, Gestation line | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 150,000,000 | |
Outstanding amount | $ 0 | $ 0 |
Warehouse Lines of Credit - Add
Warehouse Lines of Credit - Additional Information (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Outstanding amount | $ 400,000,000 | $ 320,300,000 |
Warehouse Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding amount | 4,823,740,000 | 6,941,397,000 |
Warehouse Line of Credit | Line of Credit, ASAP program | ||
Line of Credit Facility [Line Items] | ||
Outstanding amount | 98,877,000 | 75,947,000 |
Maximum borrowing capacity | 250,000,000 | |
Warehouse Line of Credit | Line of Credit, EF program | ||
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 | $ 0 |
Maximum borrowing capacity | $ 150,000,000 |
Senior Notes (Details)
Senior Notes (Details) - USD ($) | 24 Months Ended | 36 Months Ended | |||
Nov. 14, 2022 | Nov. 15, 2025 | Mar. 31, 2021 | Dec. 31, 2020 | Nov. 03, 2020 | |
Debt Instrument [Line Items] | |||||
Senior notes balance | $ 789,870,000 | $ 789,323,000 | |||
Senior Notes | Forecast | |||||
Debt Instrument [Line Items] | |||||
Debt redemption price percentage | 105.50% | 100.00% | |||
Senior Notes | Forecast | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt redemption price percentage | 40.00% | ||||
Senior Notes | Forecast | Debt Instrument, Redemption, Period One | |||||
Debt Instrument [Line Items] | |||||
Debt redemption price percentage | 102.75% | ||||
Senior Notes | Forecast | Debt Instrument, Redemption, Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt redemption price percentage | 101.375% | ||||
Senior Notes | 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 | |||||
Debt Instrument [Line Items] | |||||
Face amount | $ 800,000,000 | ||||
Interest rate | 5.50% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Loans repurchased | $ 41.6 | $ 5.9 |
Commitments to extend credit to potential borrowers | $ 25,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Activity of Representation and Warranties Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Representation And Warranty Reserve [Roll Forward] | ||||
Balance, beginning of period | $ 69,297 | $ 49,215 | $ 69,542 | $ 46,322 |
Reserve charged to operations | 9,818 | 7,390 | ||
Losses realized, net | (10,063) | (4,497) | ||
Balance, end of period | $ 69,297 | $ 49,215 |
Variable Interest Entities (Det
Variable Interest Entities (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Holdings, LLC | |
Variable Interest Entity [Line Items] | |
Ownership percentage | 100.00% |
Non-controlling Interests (Deta
Non-controlling Interests (Details) - Holdings, LLC | Mar. 31, 2021shares |
Noncontrolling Interest [Line Items] | |
Common Units | 1,605,173,992 |
Ownership Percentage | 100.00% |
Common Class A | |
Noncontrolling Interest [Line Items] | |
Common Units | 103,104,205 |
Ownership Percentage by Noncontrolling Owners | 6.40% |
Common Class B | SFS Corp | |
Noncontrolling Interest [Line Items] | |
Common Units | 1,502,069,787 |
Ownership Percentage by Parent | 93.60% |
Regulatory Net Worth Requirem_2
Regulatory Net Worth Requirements (Details) $ in Millions | Mar. 31, 2021USD ($) |
HUD | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum net worth requirement | $ 2.5 |
Actual net worth | 2,800 |
Ginnie Mae, Freddie Mac and Fannie Mae | |
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | |
Minimum net worth requirement | 567.4 |
Liquidity requirement | $ 76.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans at fair value | $ 5,503,271 | $ 7,916,515 |
Total assets | 7,916,873 | 7,977,587 |
Total liabilities | 83,736 | 66,237 |
IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11,905 | 60,248 |
Derivative liability | 48,878 | 670 |
FLSCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 101,263 | 824 |
Derivative liability | 6,601 | 65,567 |
Public and Private Warrants | 28,257 | |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | 2,300,434 | 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 |
Total assets | 0 | 0 |
Total liabilities | 18,912 | 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 |
Public and Private Warrants | 18,912 | |
Level 1 | Mortgage Servicing Rights [Member] | ||
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 | 5,503,271 | 7,916,515 |
Total assets | 5,604,534 | 7,917,339 |
Total liabilities | 15,946 | 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 | 101,263 | 824 |
Derivative liability | 6,601 | 65,567 |
Public and Private Warrants | 9,345 | |
Level 2 | Mortgage Servicing Rights [Member] | ||
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 |
Total assets | 2,312,339 | 60,248 |
Total liabilities | 48,878 | 670 |
Level 3 | IRLCs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 11,905 | 60,248 |
Derivative liability | 48,878 | 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 |
Public and Private Warrants | 0 | |
Level 3 | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage servicing rights | $ 2,300,434 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Details) | Mar. 31, 2021$ / shares | Dec. 31, 2020$ / shares |
Mortgage Servicing Rights [Member] | Discount rates | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.090 | 0.090 |
Mortgage Servicing Rights [Member] | Discount rates | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.145 | 0.145 |
Mortgage Servicing Rights [Member] | Annual prepayment speeds | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.083 | 0.088 |
Mortgage Servicing Rights [Member] | Annual prepayment speeds | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 0.405 | 0.422 |
Mortgage Servicing Rights [Member] | Cost of servicing | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 75 | 75 |
Mortgage Servicing Rights [Member] | Cost of servicing | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Servicing right, measurement input | 121 | 126 |
IRLCs | Pull-through rate | Weighted Average | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative, measurement input | 0.90 | 0.92 |
Fair Value Measurements - Other
Fair Value Measurements - Other Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Senior Notes | Level 2 | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Long-term debt, fair value | $ 834 | $ 841.3 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Other general and administrative expenses | $ 16,778,000 | $ 15,576,000 | |
Administrative services provided to entities by Company's team members | |||
Related Party Transaction [Line Items] | |||
Amount of related party transaction | 25,000 | ||
Line of Credit | |||
Related Party Transaction [Line Items] | |||
Proceeds from related party debt | 297,000,000 | ||
Repayments of related party debt | 197,000,000 | ||
Due to related parties | $ 0 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Expenses of various companies related through common ownership | 4,100,000 | 3,400,000 | |
Rent expenses | 3,800,000 | 3,100,000 | |
Legal fees | 200,000 | 200,000 | |
Direct origination costs | 100,000 | 100,000 | |
Other general and administrative expenses | $ 37,000 | $ 15,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent | 1.31% |
Effective tax rate attributable to non-controlling interests | 94.00% |
Unrecognized tax benefits | $ 0 |
Unrecognized tax benefits, interest on income tax expense | 0 |
Unrecognized tax benefits, penalties on income tax expense | $ 0 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | |
Jan. 20, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 183,756 | $ 676,249 | $ 860,005 | $ 20,349 |
Net income attributable to non-controlling interests | 812,020 | |||
Net income attributable to UWM Holdings Corporation | 47,985 | |||
Net income attributable to Class A common shareholders | 47,985 | |||
Net income attributable to Class A common shareholders - diluted | $ 524,151 | |||
Weighted average shares of Class A common stock outstanding - basic (in shares) | 103,104,205 | |||
Weighted average shares of Class A common stock outstanding - diluted (in shares) | 1,605,173,992 | |||
Earnings per share of Class A common stock outstanding - basic (in usd per share) | $ 0.47 | |||
Earnings per share of Class A common stock outstanding - diluted (in usd per share) | $ 0.33 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares | Mar. 31, 2021 | Jan. 21, 2021 |
Common Class A | ||
Class of Stock [Line Items] | ||
Common stock outstanding (in shares) | 103,104,205 | 103,104,205 |
Common Class D | ||
Class of Stock [Line Items] | ||
Common stock outstanding (in shares) | 1,502,069,787 | 1,502,069,787 |
Common Class B | ||
Class of Stock [Line Items] | ||
Common stock outstanding (in shares) | 0 | 0 |
Common Class C | ||
Class of Stock [Line Items] | ||
Common stock outstanding (in shares) | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, shares in Millions | May 09, 2021 | Apr. 23, 2021 | Apr. 22, 2021 | Apr. 02, 2021 | May 11, 2021 | Apr. 07, 2021 |
Subsequent Event [Line Items] | ||||||
Share repurchase program, authorized amount | $ 300,000,000 | |||||
Founder and CEO | ||||||
Subsequent Event [Line Items] | ||||||
Lease, initial term | 15 years | |||||
Operating lease, liability, to be paid | $ 900,000 | |||||
Restricted Stock Units | ||||||
Subsequent Event [Line Items] | ||||||
Number of shares granted | 3.2 | |||||
Amount of shares granted | $ 25,200,000 | |||||
Award vesting period | 3 years | |||||
Restricted Stock Units | Tranche One | ||||||
Subsequent Event [Line Items] | ||||||
Award vesting percentage | 33.00% | |||||
Restricted Stock Units | Tranche Two | ||||||
Subsequent Event [Line Items] | ||||||
Award vesting percentage | 33.00% | |||||
Restricted Stock Units | Tranche Three | ||||||
Subsequent Event [Line Items] | ||||||
Award vesting percentage | 34.00% | |||||
Line of Credit | ||||||
Subsequent Event [Line Items] | ||||||
Amount of debt terminated | $ 400,000,000 | |||||
Goldman Sachs Bank USA | Subsidiary | ||||||
Subsequent Event [Line Items] | ||||||
Contract term | 2 years | |||||
Goldman Sachs Bank USA | Subsidiary | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate amount of participation interests | $ 1,000,000,000 | |||||
Senior Notes | Senior Unsecured Notes Due April 15, 2029 | UWM | ||||||
Subsequent Event [Line Items] | ||||||
Face amount | $ 700,000,000 | |||||
Interest rate | 5.50% | |||||
Common Class A | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared (in usd per share) | $ 0.10 |
Uncategorized Items - ghivu-202
Label | Element | Value |
Partners' Capital Account, Acquisitions | us-gaap_PartnersCapitalAccountAcquisitions | $ 879,122,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 1,100,000,000 |
Retained Earnings [Member] | ||
Partners' Capital Account, Acquisitions | us-gaap_PartnersCapitalAccountAcquisitions | 879,122,000 |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 1,100,000,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ 183,756,000 |